The final list of Greek infrastructure projects to be funded via the Recovery Fund

The projects that passed the door of the Recovery Fund for the Ministry of Infrastructure reach more than 2.5 billion euros, i.e. almost 15% of the total package that the country will receive.

According to very well-informed sources, this is a great success as the conditions set by the RRF for the financing of projects are very strict and concerns projects which are not only mature studies, but also can directly outperform the Greek economy.

What are the 3 biggest projects funded

With a wide range of projects, such as roads, floods, dams, railways and transport, the Ministry of Infrastructure and Transport, aspires to start the simultaneous implementation of many projects and to meet the strict schedules that have been set.

According to reliable sources, funding for road projects exceeds 1.15 billion euros. About 450m euros will go to the northern part of the E65, Trikala-Egnatia. The project is expected to start in the summer, after the amended concession contract is first ratified by the Parliament.

As ypodomes.com learns, an amount of 455 million euros will go to the financing of VOAK, an amount that ensures the viability of the project but also makes it “bankable”. Of this, about 200 million euros will go to the concession section (Chania-Hersonissos), 90 million euros to the PPP (Hersonissos-Neapoli) and the other 165 million to immediately start the auction of the public project-section of VΟΑΚ (Neapoli-Agios Nikolaos).

A large amount of 250 million euros was secured for the very large project concerning the intervention in 7,000 points of the country’s road network, at a total cost of 450 million euros. The project is also covered by the EIB. According to information from ypodomes.com, the relevant competitions are ready to start.

The maintenance of the railway network – buses has been included

Another very large project that secured funding from the Ministry of Infrastructure and Transport, is that of the long-awaited total maintenance of the country’s railway network, which currently has significant shortcomings. The amount from the Recovery Fund reaches 150 million euros out of the total 500 million euros required, i.e. 30% of the total funding was secured. This is a necessary project for the country to reach the same level of network as other European countries. The competition is expected to begin immediately.

In the transport projects, an amount of up to 100 million euros was also secured, which will be included in the much-praised tender for the renewal of the bus fleet in Athens and Thessaloniki. The tender for the supply of 800 buses is already under consultation and is expected to start in the summer.

Flood protection works & dams

An amount exceeding 300 million euros was locked for the implementation of a series of flood protection projects and dams. Significantly benefited is Crete where the biggest lag is presented, but also in other areas such as Corfu, Attica etc. The money here will be used to fill any funding gaps in projects that are planned and assumed to be absorbed within the current five years of the Recovery Fund.

Other works

An amount was also secured for the upgrading of airports on small islands so that they could provide better services and increase the tourist flow to them. Also, many other scattered amounts were secured for smaller actions of the ministry of YPOME related to digitization and green development.

The logic of the Recovery Fund

The Recovery Fund was set up in 2020 on the occasion of the coronavirus pandemic to help EU member states to stand up as fast as possible. This is a financial tool that is not like the NSRF. It concerns 70% of environmental and digital transition projects, which means that out of the 16 billion euros that Greece will receive, approximately 11 billion euros.

The Recovery Fund seeks to promote projects that will have a far-reaching effect on economies and will have a large multiplier. They are works that have the character of urgency. Through this money, projects are co-financed which can also receive funding from other channels such as the NSRF, the CEF or be implemented through PPPs or concessions.

For example, the project of the northern part of the E65 is financed at 100%, while the other projects cover part of the necessary funding (e.g. for the VOAK or the renewal of the bus fleet).

This combination of financial tools ensures the implementation of projects, accelerates their implementation that would otherwise be difficult to secure 100% funding for projects, or they would take much longer in time.

The tug of war of the Fund

The big tug of war of the RRF is the availability of time. The obligation of each Contracting Authority to complete the projects that receive funding from the Recovery Fund, creates a new fact, much stricter than that of the NSRF.

As sources familiar with the matter point to ypodomes, if the absorptions show that the project is “not pulling”, then the funding will be cut off and the return of the allocated funds will be required.

On the other hand, for countries like Greece that is not famous for the speed of implementation, but also for meeting the schedules in the projects, it is a new challenge that can help it to move to an improvement in the production and execution of public works.

The amended law 4412/2016, which gives directions for the acceleration of projects in various ways, such as the assistance of the private sector in the supervision of projects, can help significantly here.

Regarding road projects that will not continue through the Recovery Fund, they will continue through NSRF or PPP (Serres-Amfipoli, Bypass of Chalkida, Bypass of Chalkidona).