The Hellenic Republic Asset Development Fund (HRADF) received two new bids for the Egnatia Motorway Concession tender in Greece. The bidders are consortiums as follows: (1) GEK TERNA – EGIS Projects and (2) VINCI Highways - VINCI Concesiones – Mytilineos – AVAX. The Fund recently improved the terms of the concession offer to about € 1.5 billion over previous tender terms.
Athens, Greece: 2 April 2021
The “Egnatia Odos” is a Motorway in Greece that extends from the western Port of Igoumenitsa on the Adriatic Sea to the eastern Greek–Turkish border. It has nine vertical axes which connect Greece to Albania, Bulgaria and Northen Macedonia.
The Egnatia Motorway is a catalyst for investments in Northern Greece in the sectors of transport, manufacturing and tourism. It facilitates trade and travel within Greece, connecting Epirus and Western Macedonia to the metropolitan center of Thessaloniki, the 2nd largest Greek city.
The concession for the right to operate and maintain the Egnatia Motorway was announced in 2017 by the Hellenic Republic Asset Development Fund (HRADF). A total of 7 bidders were selected in 2018. In 2020, HRADF conducted an international public tender in two phases for the award of a service concession agreement in relation to financing, operation, maintenance and exploitation of the Egnatia Motorway.
This results in a single, sealed offer. In order to improve the tender competitiveness, the HRADF re-launched the tender with improved conditions.
The object of the concession is the main axis from Igoumenitsa to the Gardens of Evros, 658 km long, together with 225 km long three vertical axes:
Statista-leropigi-Krystallopigi
Halastra-Evzonoi
Thessaloniki-Promachonas
The concession contract concerns the financing, operation, maintenance and operation of as well as the three vertical roads for a period of up to 40 years.
Highway concession tenders are a mature sector in Greece, with major transport arteries such as Athens – Thessaloniki or Corinth-Kalamata already operating under private concessions.
Navigator Consulting offers investment due diligence, business planning, financial modelling and risk analysis for infrastructure, marina, hotel and tourism investments in Greece. We have advised on some of the largest projects related to investments and privatisations in Greece since 1997.
Sources:
Hellenic Republic Asset Development Fund: 1 April 2021
Money Review. 22 January 2021
NavInvest Greece. 10 November 2020
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