Greece Signs 25-Year Concession Deal for Attiki Odos with GEK TERNA

The new 25-year concession agreement for Attiki Odos has been signed by the relevant ministers of National Economy and Finance, and Infrastructure and Transport with the contract granting the concession to the GEK TERNA Group, marking a significant step in the management and development of one of Greece’s major road networks.

The contract grants a five-month window to complete the financial closure of the agreement and for the payment of the 3.27 billion euros fee, which will activate the start of the concession by Feb. 12, 2025.

This period is deemed necessary for all contractual prerequisites to be fulfilled by the involved parties and can be extended upon mutual agreement.

Dimitris Politis, CEO of the Hellenic Republic Asset Development Fund (HRADF), speaking at the 88th Thessaloniki International Fair, had announced that the contract for Attiki Odos with GEK TERNA would be signed within the week, emphasizing that the process for Attiki Odos “moved very quickly by Greek standards.”

The new concessionaire, who will take over the financing, operation, maintenance, and exploitation of the Attiki Odos for the period of 25 years, will not only provide a one-off financial payment but will also pay an annual percentage to the Hellenic Republic Asset Development Fund. This percentage will be 7.5% of all types of revenue generated from the operation of the highway.

Additionally, the agreement includes further investments and expenditures for upgrades and modernization, totaling 380 million euros over the duration of the concession.

Under the new concession agreement, the toll fee for category 2 vehicles will be reduced from 2.80 euros to 2.50 euros.

Attiki Odos spans approximately 70 kilometers and was constructed in the 1990s through a concession model.

It serves as the peripheral road axis for the greater metropolitan area of Athens and is a key part of the road network in the Attica region. In certain sections of the road axis, the suburban railway runs along a specially designed area in the middle, which is not part of the Attiki Odos concession agreement.

Transition to Interim Operation After 25 Years

On October 5, the state will take over the road axis after 25 years of operation, proceeding to an interim stage of operation, with the existing consortium of the project, led by Aktor Concessions and Avax, being the most likely candidate for this role.

The Ministry estimates that Attiki Odos will experience a service gap of slightly more than four months, which will be covered by the interim contract.

Source: tovima.com