Vinci agrees resumption of work on Greek motorway concessions
Following three years of intensive work with the Greek government and its financial partners, VINCI announced yesterday the resumption of construction work on the 365 km motorway between Athens and Tsakona and the 240 km motorway section between Maliakos Bay and Kleidi.
The two concession projects underwent in-depth restructuring that made it possible to complete their refinancing in December 2013 and to resume construction work at the beginning of 2014. The two projects account for a total investment of €3.1 billion (Athens-Tsakona: €1.8 billion, Maliakos-Kleidi: €1.3 billion).
VINCI Concessions is a 30% shareholder in the Olympia Odos company, which holds the concession for the Athens-Tsakona motorway, and a 15% shareholder in the Aegean Motorway company, which holds the concession for the Maliakos-Kleidi motorway.
The announcement comes after the European Union (EU) announced in December 2013 it will provide financial support worth €2.97 billion (US$4.06 billion) to allow the building of four motorways in Greece.
The EU said concessioners, Greek construction companies and European companies from several EU member states, have recently signed the recasting of the project. Financing sources, besides the Greek state, include the European Investment Bank (EIB) and about 40 Greek and international banks.
The four projects included in the funding were the following:
- Ionian motorway concession .
- Completion of the Maliakos-Kleidi concession.
- Completion of the Elefsina - Korinthos - Patra motorway concession
- Completion of the Central Greece motorway concession
The economic crisis caused serious problems in funding for four out of five motorway concessions. The sudden drop in traffic and the expected toll income as well as withdrawal of support from a part of the banking sector, effectively stopped the projects due to lack of funds.