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The great battle of the construction companies – Who will take on the new public, PPP & concession projects in Greece?

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Εργοταξιακός γερανός. Πηγή: Unsplash
Πηγή: Unsplash

With many tenders running at the same time this season and the construction pie growing, the interest is focused on where the contracts that will increase the unutilized amounts of the Greek groups will end up.

In the field of public works, we have the railway projects that promise big contracts, while the waste units are also of interest, with the tenders being plenty.

In the field of PPPs more than 10 tenders have started and are either in the initial or more advanced phase. What we have not seen from this generation of PPPs is a finalization of these projects to a certain group.

As far as all the above are concerned, the first say will be from the traditional powers of the field that for the most part participate in almost everything. On the other hand, there are voices that talk about delays, especially in PPPs, with projects that are in the tender process for almost two years.

The battle for public projects – The railway projects

There are many tenders for big railway projects at the moment, with signatures for some of them to follow within the next four months. These are projects of over 320 million euros and it is estimated that there will be great participation.

ERGOSE has already held two tenders.

More specifically, the electrification in Larissa-Volos and the signs in Thessaloniki-Eidomeni have been signed with the projects having ended up in INTRACAT and AVAX-ALSTOM respectively.

The projects for the 2nd phase of the Athens station (INTRAKAT-RAILWAY PROJECTS), the project for the completion of the Aigio-Rio line (TERNA-MYTILINEOS), the electrification in the Kiato-Aalio-AIAI section -Kalampaka (AVAX) are also moving forward in the tender process.

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The projects for the extension of the railway to Lavrio, Rafina, Patras, the connection of ThPA S.A. with the railway network and the lines Thessaloniki-Xanthi and Alexandroupoli-Ormenio are also in an advanced tender. The six projects recently moved on to the second phase of the tender which is carried out with the method of competitive dialogue.

The other projects

In other major road projects, the extension of Kymi Avenue will be implemented by the association of companies TERNA-AKTOR-INTRAKAT. The bypass project of Chalkida is undertaken by Mytilineos while the project for the road section Bralos-Amfissa goes to TEKAL.

In the waste units field, several tenders are also active in: Hersonissos, Kavala, Karditsa, Central Macedonia, Corfu, Sitia, Nafpaktos, Agrinio, Heraklion and Rhodes. At the same time, the 3 big tenders of Attica in Grammatiko, Fili and Schistos are now running. As far as these are concerned, the battle is huge since the objective (due to area) is multiple of any other unit in peripheral cities, even prefectures.

Finally, a new generation of flood defenses will become a field of battle for medium and large companies. Currently, competitions are tenders in Loutraki, Thessaloniki, Kalamaria, Rafina, while the one in Nea Makri is also expected to start.

The PPPs

The gold contracts of our time are now PPPs and concessions. VOAK is considered at this time the crown jewel of the projects. With a cost of over 1.6 billion euros, is a burning desire of the country’s large groups. For the PPP department we have as a temporary contractor the scheme GEK TERNA-AKTOR CONCESSIONS-INTRACAT while AKTOR has seized the Neapoli-Agios Nikolaos section which is implemented as a public project.

Contracts for the flyover undertaken by the duo AVAX-MYTILINEOS, the submarine of Salamina and the Kalamata-Methoni undertaken by the duo AKTOR-INTRAKAT are also considered super contracts. Projects that are more or less in the same situation. In theory, these three projects could be signed in the next six months if we have no surprises. Regarding the schedule for the Havria Dam, this seems to be a little behind.

Buildings PPPs

Here things are a bit more complicated. The projects of half a billion euros for student dormitories and buildings in Crete, Thessaly and Thrace have remained in the first phase while tenders are running for PPPs that concern Politia Kainotomias, the new building of the General Secretariat of Infrastructure, 17 schools and Courts of Central Macedonia, the Research Center of the Academy of Athens, the 13 Regional Centers etc.

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The above projects create a pie of 1.2 billion euros of projects that will grow even more with the building PPPs for Court Houses in Thessaly and Crete, Police Houses that will pass through the Interministerial PPP Committee very soon. The logic of PPPs which is attractive as it involves little risk leads us to the conclusion that there will be great battles to get as many contracts as possible.

The battle of Elliniko

Here things are clearer. Agreements with LAMDA have progressed and many companies want to invest in this great venture. The infrastructure project has already started with the contractor AVAX. In addition, the project for the casino was signed with GEK TERNA, which will implement it together with HARD ROCK. New tenders will start in the next period while the duo BOUYGUES-INTRACAT shows that they will seize the materialization of Marina Tower.

What the market is talking about is that the objective has expanded significantly, but what is expected now is for the tenders to be closed and all these projects to start so that all these funds can be channeled into the real economy. The challenge is both the lack of staff and the increase of cost in materials that has been going on for about 1.5 years.

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