The revival and the challenges of Greece’s major infrastructure projects

The country’s major projects are coming back to life after a period of stagnation that brought grumbling and pessimism throughout the construction industry. Yesterday’s visit of the Minister of Infrastructure and Transport, Mr. Kostas Karamanlis to the under-construction Thessaloniki Metro, was a message that the project is on track and is progressing while the commitment for its operation in 2023, was maintained.

Additionally, this message for the projects’ comeback is becoming more and more powerful considering the announcement for the implementation of projects of 13bn euros. A series of projects that are stagnating, either at their tendering or their construction stage, are taking steps forward and this summer it seems that there will be a special interest for the promotion and implementation of major projects.

The big double tender for VOAK Motorway has been unblocked after almost a year and now the environmental study is being prepared. This big step forward “gives wings” to the tendering process that until a few months ago was in doubt. The status is the same in the tender for the procurement of new urban buses. In the previous days, there has been a series of statements from the leadership of the Minitry regarding the launch of the big tender next September. It is reminded that the previous tender has been cancelled after the decision of AEPP.

In terms of projects, the extension of the Tram to Piraeus, the new double-track railway line betweeen Kiatoa and Aegio and the first half of Athens Metro Line 3 section, Aghia Marina-Nikaia- with 3 stations will be all delivered in the summer. The other half of the extension, reaching the “heart” of Piraeus, up to the city’s Municipal Theater, is probably expected in 2022.

At the same time, mobility is observed on Egnatia Motorway. The company, which in recent years has faced questions even for its very existence, in the last 5 months has auctioned a number of major road projects that stimulate the construction market.

More particularly, the connection of Thessaloniki Port (OLTH) to the country’s motorway network, the completion of Thessaloniki-Polygyros and Thessaloniki-Kassandra axes, as well as the two maintenance tenders for the main motorway, proved that the company has a future ahead of it.

EYDAP has also auctioned two large projects in Eastern Attica amounting to 140m euros with the relevant tenders being in progress. ERGOSE also estimates that two tenders concerning electrification projects will proceed in the near future.

At the same time, the Ministry of Infrastructure is preparing two major PPP tenders for the summer. The first is for the Thessaloniki Ring Road and the second for Havria Dam in Halkidiki. The road PPP project Kalamata-Pylos-Methoni in Peloponnese is also proceeding again with all participants while the tender for Salamina subsea road tunnel is progressing as the environmental study is being prepared for submission.

Of course there are plenty other PPP projects; 3 large building projects with a total budget of 450m euros for the Universities of Thrace, Crete, Thessaly, another one by the Academy of Athens, while more projects are about to come in the near future.

As far as major strategic projects by privatized bodies are concerned, the project for the expansion of the cruise pier in the port of Piraeus has started, while in the second phase of its tender is the project for the completion of OLTH’s 6th pier. Finally, Fraport’s large-scale investment in the 14 Regional Airports that are under its management, is also at an advanced stage.

“Thorny” projects

However, there are three major projects in the queue: Patras-Pyrgos Motorway, Athens Metro Line 4 and Aktio-Amvrakia sweep-contract, all of which are on hold for different reasons.

For Patras-Pyrgos Motorway, the contracts have been dissolved and the approval of the Commission is expected in order to “re-attach” the new section to Olympia Motorway.  For Athens Metro Line 4, the appeal of the two final contenders (i.e. AKTOR and AVAX) to the Council of State means a waiting time of about a year.

Regarding, Aktio-Amvrakia Motorway a decision is expected on whether the tender will continue or not (meaning that a new one will follow). Delays are observed in the biginvestments of Athens International Airport due to coronavirus pandemic.

Here, as developments are dynamic, we need to see how much they will positively or negatively affect the implentation of the investments. However, the market also anticipates the huge building project for the casino in Elliniko. Despite repeated rejections, Hard Rock seems to be determined to pursue the project through legal means.