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CONTENTS A. INTRODUCTION5 Type of Project ........................................................................................................ 5 Country/Location..................................................................................................... 6 Current Status ......................................................................................................... 7 B. BACKGROUND TO PROJECT8 Principal Project Objectives ................................................................................... 8 Key Enabling Mechanisms and Decisions to proceed......................................... 8 Main Organisations Involved ............................................................................... 10 • Government ............................................................................................. 10 • The private partner/concessionaire - Attiki Odos S.A.......................... 13 • Major Advisors/consultants of main parties ......................................... 14 • Banks ....................................................................................................... 15 • Independent Engineer ............................................................................. 16 • Local Government ................................................................................... 16 • Pressure Groups ..................................................................................... 17 Planning and Environmental Regime .................................................................. 17 Environmental statements ................................................................................... 17 Public participation ............................................................................................... 19 Regeneration related impacts .............................................................................. 20 • Regeneration of quarries – Reforestations ........................................... 20 • Parks ........................................................................................................ 21 • Archaeological findings .......................................................................... 21 • Noise ........................................................................................................ 21 • Employment ............................................................................................. 22 Attiki Odos Service Areas and real estate development ................................... 22 Land Acquisition ................................................................................................... 23 C. PRINCIPAL PROJECT CHARACTERISTICS....................................................... 25 Outline of Technical Specification ....................................................................... 25 Principle Transport Nodes ................................................................................... 26 Major Associated Developments ......................................................................... 29 • New Attika Urban Highways Project ...................................................... 29 • New Motorways Programme .................................................................. 29 • Athens Metro and Suburban Railway .................................................... 31 • Athens International Airport ................................................................... 32 Project Costs ......................................................................................................... 32 • Predicted Costs ....................................................................................... 33 • Actual Costs ............................................................................................ 34 Project Programme ............................................................................................... 35 Main Contracts and contractors .......................................................................... 37 D. PROJECT TIMELINE ............................................................................................ 41 E. PROJECT FUNDING/FINANCING ........................................................................ 48 Background to Funding/Financing ...................................................................... 48 Role of Traffic forecasts ....................................................................................... 48 • Estimating Future Motorway Traffic ...................................................... 48 • Methodology of the Traffic Forecast ..................................................... 48
Funding sources ................................................................................................... 52 F. OPERATIONS ........................................................................................................ 57 G. BIBLIOGRAPHY ................................................................................................... 58 FIGURES The Interchange with Kifisias Avenue and The Metamorfosi Interchange Athens – Thessaloniki National Highway Attiki Odos Project Map Attiki Odos Location within Greece and Attika Region TEN-T Priority Axes 7 and the Breakdown of its Projects Immitos Mountains Site of Community Interest of EU Natura 2000 Sites Network 6 Noise Reduction Study at Kifisias Interchange and Noise Reduction Structures 7 Attiki Odos and its Interchanges 8 New Attika Urban Highways Project 9 Greek Motorway Programme 10 Athens Metro and Suburban Railway 11 Sections of Attiki Odos Project 12 Main Project Contracts 13 Variation of Traffic and Revenues According to Toll Level 14 Financial and Contractual Structure of Attiki Odos PPP 15 Project Schedule & Basic Inflows/Outflows of the Concessionaire 16 Real Versus Forecast Traffic Abbreviations
AIA: Athens International Airport ARR: Athens Ring Road CBA: Cost/Benefit Analysis CC: Concession Contract CFO: Chief Financial Officer CJV: Construction Joint Venture CPI: Consumer Price Index CSF: Community Support Framework DSCR: Debt Service Cover Ratio EBRD: European Bank for Reconstruction and Development EC: European Commission ECU: European Currency Unit EIA: Environmental Impact Assessment EIB: European Investment Bank
1. with 2 3 4 5
Stavros . Planning and Public Works NPV: Net Present Value PATHE: Patras-Athens-Thessaloniki-Evzoni PPP: Public Private Partnership ROE: Return on Equity SAC: Supreme Administrative Court TEN-T: Trans-European Networks/Transport VAT: Value Added Tax 4 .Spata A/P Motorway EU: European Union GRD: Greek Drachma I/C: Interchange IRR: Internal Rate of Return IWPM: Imittos Western Peripheral Motorway LSO: Lump Sum Object MEP: Member of Parliament MEPPW: Ministry of Environment.EIF: European Investment Fund EMU: Economic and Monetary Union ERDF: European Regional Development Fund ESSM: Elefsina .
extending along 65 km. extending along 13 km. Attiki Odos consists of two almost perpendicular to each other motorways: The Elefsina . Left: The Interchange with Kifisias Avenue (Ron Allen. INTRODUCTION Type of Project (source: www.Athens . in order for them to by integrated and linked with Attiki Odos.Stavros .Thessaloniki – FYROM border).4 km extensions in 3 existing highways. It constitutes the ring road of the greater metropolitan area of Athens and a backbone of the road network of the entire Attiki region connecting thirty municipalities of the metropolitan area and major road.Spata A/P Motorway (ESSM).aodos.A. MEPPW 2000) Attiki Odos is a closed toll motorway. The project also includes the construction of 9. 2007) 5 . 2007). Figure 1. air. extending along 52 km.Thessaloniki segments by-passing the centre of Athens.gr accessed on 18/05/2007. Right: The Metamorfosi interchange with Athens – Thessaloniki National Highway (Attiki Odos S. sea and rail transport infrastructures. since it links the Patras – Athens with the Athens . and The Imittos Western Peripheral Motorway (IWPM).A. The road connects the new international airport at the area of Spata (Eleftherios Venizelos Airport) with the city and is also a part of PATHE TEN-T priority axis (Patras .
accessed on 24/5/2007) Country/Location The location of Attiki Odos within Attiki Region and Greece can be seen in Fig. The region of Attiki is one of the 13 Regions of Greece. East Attiki and West Attiki.Figure 2. Piraeus. Attiki (or Attica). 3. 3 denote the borders of the region).aodos. The region of Attica is subdivided into the prefectures of Athens. The region comprises mainly of the peninsula jutting into the Aegean Sea and includes the entire metropolitan area of Athens together with other smaller towns and islands in gulf of Pagasitikos (the grey dotted lines in Fig. Attiki Odos Project Map (www.gr. 6 .
5). The first section connecting Pallini with the Airport is in operation since March 2001 while the full operation of Attiki Odos commenced in August 2004 (Attiki Odos S. Currently. the traffic is approximately 34% more than initially anticipated for the 4th year of full operation (see section 6) while an extension of the highway (see figure 2) is already planned and about to be tendered (MEPPW. Attiki Odos Location Within Greece and Attika Region (source: originally from google maps. 7 .A.Figure 3. 2001b). processed by the author) Current Status The project was broken down to six major sections with distinct delivery timetables and operation commencement times (see section 3. 2008).
as stated by the Government.e from Agia Paraskevi to Katechaki as seen in fig. 2000. 384). 2001 p. a peripheral highway would enhance the quality of life and the balanced development of the city. 8 . was not proposed before late 70s since many alternatives had been evaluated (MEPPW. (MEPPW. Trova and Koutras.B. To provide an infrastructural basis for the strategic reconfigurations of the power and communication networks of Attiki • • Key Enabling Mechanisms and Decisions to proceed The conception of Attiki Odos and particularly its section from Elefsina to Stavros (i. consists of the following (MEPPW. 2001 p. the Thriasio Plain. BACKGROUND TO PROJECT Principal Project Objectives The central objective for the development of Attiki Odos was to overcome the traffic and environmental problems that the radial road system of the city had brought. 2000): • • • • • • • To develop the inner ring for the city of Athens and integrate a full road network for fast and safe transport in the entire Attika region To drastically decrease traffic within the city To substantially decrease air and noise pollution To provide the crucial segment of PATHE TEN-T (priority axis 7) by connecting the Patras – Athens with the Athens . 2001 p. Therefore.e from Elefsina to Agia Paraskevi as seen in fig.e. Kloukinioti 1996). 2008) and included the access of the highway to a new international airport at Spata. the Athens Basin and Mesogeia. i. Bobolas. see also section 3.Thessaloniki highways. 2000): • To approach and potentially access the new port facilities that are going to be developed on the eastern coast of Attiki to relieve the congested Piraeus port. 2006. the proposed route of the Elefsina-Stavros-Spata highway of Attiki Odos became the basis for the planning of the areas that the highway would cross and Initial / preparatory studies for its development started being implemented. providing access to downgraded and isolated areas (targeting mainly Thriasio Pedio on the west and Mesogeia on the east) Other secondary objectives quoted by the Government include (MEPPW. Trova and Koutras. 2. Gradually. To provide the road connection from / to Athens International Airport To contribute to an integrated regional/urban plan for Attika To provide a basis for the balanced development of Attika. see also section 3. 384). A breakdown of key objectives.2) was initiated by plans and proposals by studies of Wilbur Smith & Associates that date back to 1960s (Trova and Koutras. 2. The Imittos Western Peripheral section of the project (i. 2000. 384. To support significantly the flood prevention system for the whole Attiki by substantial interventions in the three main hydrographical basins of Attiki.2). The project planning matured furthermore through various subsequent plans (Zekkos.
Ioannis Kinigos to Katechaki) which after some initial progress were halted by the Supreme Administrative Court (SAC) on the basis of EIA inadequacy (SAC. (Trova and Koutras. so that construction could progress significantly before the financial close and in order to satisfy requests proposed by the financial institutions (that participated in the financing of the project) that had 9 . SAC. PELLA and ATTIKI ODOS pass to the next phase (Trova and Koutras. 385). defined Attiki Odos not as a single project but by proposing its major segments that would connect the new airport with the city and would transform the road system of Athens towards a more orbital structure (Trova and Koutras.3 for the full list) and the Greek State signed the Guarantee Agreements (that would guarantee the Commercial Banks’ Loan during operation period) (Trova and Koutras. 1040/1993). Dec. 1038/1993.A signed the lending agreement (Trova and Koutras. 2001. 1991: The Ministry (MEPPW) tendered the excavation and preliminary works for a segment of Attiki Odos in Immitos Mountain (From Ag. 1995: The Ministerial Decree A/6/01/73/9752/27-8-1995 nominated the consortium of ATTIKI ODOS as the provisional concessionaire. May 1996: The concession contract was signed between the concessionaire and the Minister of Environment. 2001 p. the construction study of Attiki Odos and the Environmental Impact Assessments were conducted. 1995: The EIA for Attiki Odos based on a redesigned route (according to environmental friendliness criteria) on the Imittos mountain was ratified by the parliament as a law of the state together with the EIA of the new International Airport (Law 2338/95). 1992: Tendering of Attiki Odos as a whole on a Design – Build – Finance –Operation – Maintenance Public Private Partnership (Trova and Koutras. 386). the other 2 mega transport projects in Athens (namely the Metro and the Athens International Airport at Spata) were also in the pipeline for tendering together with the Rion – Antirion Bridge in Western Greece. Dec. 2001 p. a comprehensive traffic study for the whole Athens basin. 400) Jan. Feb. namely CONCIF. Sep. Three Consortia. SAC. At the same time. 1997: The European Investment Bank (EIB) and Attiki Odos S. The envisioning of totally four mega transport investments had come to a point where funding and construction/project management expertise were the most crucial prerequisite for their realization. 2001. p. The following timeline presents an overview of the key enabling mechanisms from the maturity of the project until the beginning of its operation: Feb. 1993: Results of the Phase A (pre-selection) of the tender. 1998: The consortium of Commercial Banks (mainly Greek. the Regulatory Plan of Athens (“Regulatory Plan and Environmental Protection Programme for the wider Athens Area”) as ratified by Law 1515/85. In the early 1990’s. 2001 p. 400). 2001 p. Feb. 1035/1993. 1999: The concession contract was amended two times in order to allow heavier inflow of state capital at the preliminary works phase. Planning and Public Works and in the end of the same year the parliament ratified the concession contract as a Law of the state (Law 2245/1996). 398). p. Apr. 1998.In 1985. see section 5. 398) Aug.
During the early 90s. p. The Athens Ring Road was included in the list of objectives of the Operational Programme "Road Axes. Oct. the General Government Budget deficit was very high and moreover deficit targets that had to be achieved in order for the country to enter the European Monetary Union imposed a low spending policy for the subsequent years. Leistner. This had to be done because the information needed for the application for funding had to take into consideration the revenues of the project which could not be calculated and included in the application before the signing of the concession contract. All responsibilities were assigned to a unit within the Ministry called: “Special Services for Public Works: Projects Rion – Antirion Bridge and Attiki Odos”.financing from the European Regional Development Fund (ERDF) that was approved in 2001 amounted € 10 .evolved since the ratification of the concession contract (Presidential Act 3/1998. Planning and Public Works (MEPPW): Responsible for the analysis and studies. The allocation under the European Regional Development Fund (ERDF) for this project accounted for EUR 476 million for the period 2000-2006 (EC/Barnier. 2002) European Union: The European Union has subsidized the project through the Structural Funds during both the 1994-1999 and 2000-2006 programming periods. Main Organisations Involved Government The Greek Parliament: The parliament has the legislative duties of the Greek state. tendering and awarding of the project. Mar. signed and approved by the Greek state (Ministerial Decree A/6/00/0101/25283). preparation. The project had been prepared and awarded prior to the request for this part of EU funding. the National Development Plan submitted to the EU for co-financing through Structural Funds. 37). 2001: EU Grant awarded. 2002). The most significant part of EU structural aid for the project was received during the 2000-2006 programming period. Ports and Urban Development" for the period 20002006 (as a part of the PATHE segment of TEN priority axis 7) and the co . The Ministry of Environment. Attiki Odos measure is included in the Operational Program "Road Axes-Ports-Urban Development 2000-2006". Jan. (PWC 2006). 2003b. MEPPW. 1999: The appeal of the American College of Greece to the SAC was successful and accordingly the highway route has to be changed again so as to have the minimum possible impact to the property of the college (SAC. The EU grants played a catalytic role for the realization of the project since the spending capacity of the country was limited. the EC has played a crucial role in “promoting” the use of PPPs for the development of transport infrastructure and TENs (Trova and Koutras 2001. The concession contract and the EIA have been ratified by the parliament as Laws of the Greek state. 2000). Moreover. guarantee and insurance agreements were finalized. 1675/1999). 2000: Financial close. The Ministry had been working in very close collaboration with external advisors/consultants (PWC. (MEPPW. 2006) The Ministry of Economy and Finance (MEF): The Ministry allocates parts of the national budget to MEPPW and conducts. The Ministry also signed the concession contract. Presidential Act 75/1999. All loan. in collaboration with MEPPW (and other ministries).
the synthesis of the consortium had already become of 11 companies. the bidding offers submitted by the other two consortia were far more expensive compared to the offer of Attiki Odos consortium (Attiki Odos S. only one large foreign construction company had submitted a bid to the tender. Despite the late application for EU structural support. the design.A is the concession company of the project. 2003) 11 .A. operation and maintenance of the motorway. through the concession contract.A. Working in an unfamiliar urban setting and the lack of local knowledge to deal with bureaucracies.04%).A Attiki Odos S. These 14 companies are listed below: ALTE ELLINIKI TECHNODOMIKI AKTOR ETETH PANTECHNIKI AVAX TEV ΑΤΤΙΚΑΤ SARANTOPOULOS TEGK ZEUS ATTEMKE ERGAS METON By mid 1999. Almost all Greek companies from the other two consortia1 (except 2) accepted the invitation and participated in Attiki Odos consortium (Attiki Odos S. METON and ERGAS could not bear the financial demands and the construction 1 According to PWC (2006). construction.476 million.A. In the PWC report (2006) it is also mentioned that there had been appeals to the EC regarding a violation of certain EU procurement rules having to do with the addition of a small part of the road not previously included in the tendering documentation.A. There was also another international company participating in the bid which also did not join the Attiki Odos consortium (Attiki Odos S.A (the concessionaire) was formed as a Joint venture of almost all large Greek construction companies. After that Attiki Odos became a consortium of 14 construction and technical companies plus Egis Project which is a French Traffic Management Company (a major shareholder of Attikes Diadromes. the consortium invited all the companies of the other two non – winning consortia to participate in Attiki Odos consortium with the terms of the winning bid. According to an official press release by Attiki Odos S. 2003). Attiki Odos S. the EU awarding procedures had to be followed in the tendering as well as the related EU legislation for public works contracts. A final contribution of EU has to do with the structural funds rules that oblige the Ministry to prepare monitoring reports on the spending and allocation of funds for the projects but also to conduct ex-post evaluating exercises on the impacts of projects. 2003). The private partner/concessionaire . financing. According to Interviewee V this move proved crucial for the progress of the project since serious potential hurdles due to possible objections to the tender procedures and appeals to the EC by competitors were avoided.Attiki Odos S. 2006). which undertook. After the nomination of Attiki Odos as the winning consortium. ATEMKE. the Operation company of Attiki Odos) that participated in the consortium with a very small shareholding percentage (0. communities and utilities dissuaded international companies from being interested in the project (PWC.
The shares of these 3 companies were transferred proportionally to the rest shareholders. The synthesis of Consortium comprising by the remaining 11 construction companies was follows (Interviewee II): Shareholder name ALTE ELLINIKI TECHNODOMIKI AKTOR ETETH PANTECHNIKI AVAX TEV ΑΤΤΙΚΑΤ SARANTOPOULOS TEGK J&P 17% 9.9% 8.complexities of the project (Attiki Odos. mergers and acquisitions to the formation of very few large construction groups. 12 .6% 7.2% 8.5% 8.6% 4.5% 8.8% 9. Attiki Odos consortium was a catalyst for this consolidation (Attiki Odos S.5% A subsequent consolidation in the Greek construction industry has led through bankruptcies. 2003).A. 2003).5% % of shares 8.8% 8.
Figure 4. TEN-T Priority Axes 7 and the breakdown to its Projects (EC. 2005b) 13 .
holding 80% of the shares.gr): Shareholder name ELLINIKI TECHNODOMIKI TEV – AKTOR Group J&P .gr). In the technical.9% Attiki Odos Construction Joint Venture: It is the construction entity of the project that undertook the construction of Attiki Odos. The design.aodos. (Attiki Odos web site. V): 14 . supply and installation of the tolling and communications equipment has been sub-contracted to IBI (IBI Group) . 2003): 1 Technical Advisor of the commercial Banks 1 Technical Advisor of ΕΙΒ 1 Legal Advisor of the commercial banks 1 Legal Advisor of ΕΙΒ 3 Legal Advisors of Attiki Odos S. All the member companies of the Construction Joint Venture participate in the company. Attikes Diadromes S. equally back to back with the Concession Contract for the relevant sections (Bastos 1999).A has the following shareholding synthesis (www.gr.aodos. along with TRANSROUTE INTERNATIONAL (a subsidiary of Egis Projects) participating with a percentage of 20%. www. Interviewee II).aodos.A: Undertakes the operation and maintenance of the project.2% 30. TRANSROUTE INTERNATIONAL was initially participating with a percentage of 49% in Attikes Diadromes S.1% 9. Attiki Odos S.A. www. The members of "Attiki Odos Construction J/V" were from the beginning of its formation (and still) the member companies .8% 20.ΑVΑX – ETETH Group PANTECHNIKI ΑΤΤΙΚΑΤ % of shares 39.A through a Knowhow Provider Direct Agreement (Attiki Odos web site.A The following five appear to have had a relatively crucial involvement (interviewees I.A 1 Insurance Advisors of the commercial Banks 1 Insurance Advisors of Attiki Odos S. Major Advisors/consultants of main parties The consultants that had been involved in the project are totally 32 in the technical and studying services domain (Konstantopoulos 2001). legal and insurance advisory services domain the following entities were involved (Pasgianos et al.Currently.shareholders of Attiki Odos S.
A. Therefore. Leistner et al. The presence of EIB as the major lender was crucial since Greek commercial banks had limited experience in long term project financing (Interviewee V). 2006. These circumstances played a crucial role in determining the PPP deal together with the fact that EIB’s policy was not to accept construction risk. Norton Rose: Legal advisor of Attiki Odos S. and to accept remaining project risks only after a period of satisfactory operation (PWC. Halcrow Group and Metrotech S. and international banks were quite hesitant to enter into a complex deal in a country with poor PPP record and macro-economic performance. Allen & Overy and Karatzas & Perakis: Legal advisors of the commercial banks.A Banks European Investment Bank: EIB was the major lender of Attiki Odos S. ETEBA (National Investment Bank for Industrial Development): Financial Advisor of the Greek State from Concession Award until Financial Close (ETEBA is no longer existing as it is merged with National Bank of Greece). 2006).A: Technical advisor of the commercial banks syndication. (interviewee II. 2000) Consortium of Lending and Guaranteeing Commercial Banks: Table 1. Commercial banks participating in the lending of Attiki Odos S. the large loan facility provided by EIB was guaranteed by a syndication of commercial banks during the construction period and by the Greek state during operation period (PWC.A providing most of the private financing for the development of Attiki Odos. 1999) Commercial Banks Commercial Bank of Greece National Bank of Greece HypoVereinsbank BANK OF TOKYO MITSUBISHI SOCIETE GENERALE European Investment Fund HSBC BANK Plc ABN AMRO BANK NV Agricultural Bank of Greece Alpha Bank BANCA MONTE DEI PASCHI DI BANK OF SCOTLAND EIB Loan Guarantors X X X X X X X X X X X X X X X X X X X X Commercial Banks’ Loan X X Standby Loan X X X X X 15 . Bastos.Zemberis – Markezinis – Lambrou Law Office and Linklaters & Paines: Legal Advisors of the government for the development of Attiki Odos as a PPP.
There was also another noteworthy case of appeal to the EC by the municipalities of Vrilissia and Halandri that resulted to the construction of extensive cut and cover tunnels below the level of the 16 .V. Leistner et al. that were directly affected by the project. S.A. According to Interviewees I and II. 2000). BANCO BPI. Nevertheless. This influenced significantly the progress of the project especially in the area of Imittos mountain. The project owner and the private investors wanted to keep the mayors “happy” so that they wouldn’t proceed to any action that would negatively affect the progress of the works. municipalities were negotiating (not always through established and transparent procedures) with both the state and the Attiki Odos consortium in order to obtain various types of gains such as new public space / outdoor recreation facilities over the road (the highway crosses the majority of urban areas below ground level) or in the broader area of the road. Interviewee II). Local Government The fragmented institutional regime of local government in Greece brought the project in front of the bureaucracies and diverse priorities of totally thirty three local. ING BANK N. the concessionaire and the banks with main duties to supervise and monitor the works. The Intercreditor Agent approves and checks the legitimacy of any additional works and all processes that involve the banks. approve engineering plans and approve the necessity of any additional works that have to be done outside the concessioned object (PWC. 1999). 2006. and SGI – Trademco were appointed as the Independent Engineer to act on behalf of the state. provide certifications of progress and quality control. Independent Engineer Jacobs Gibb Ltd. BANK OF CYPRUS LTD. municipal and regional authorities in Attiki region.DE NATIONALE INVESTERINGS Ergasias Bank Pireus Bank. representing them in various decisions and being responsible for the communication with the other parties in the PPP. DEPFA BANK AG ENTENIAL EXPORT DEVELOPMENT X X X X X X X X X X X X X X X Intercreditor Agent: Bank of Tokyo-Mitsubishi was the Intercreditor Agent of the banks acting on its behalf according to the intercreditor agreement. all those authorities had in many cases conflicting views and concerns (with those of project promoters). The Bank of Tokyo-Mitsubishi was also a lead arranger together with HypoVereinsbank in the commercial banks syndication (Interviewee II. These authorities had to provide certain permits. Moreover. The independent Engineer was selected from a shortlist of companies (after an open bid) determined by the banks and was subsequently approved by the Ministry that also partially pays for the Independent Engineer’s services (Bastos. such action had taken place in various instances through appeals to the Supreme Administrative Court based mostly on environmental protection rationale (for Imittos) and adverse traffic impacts on specific areas of their municipalities (see the project timeline section). authorizations and plans that were essential for the planning and the progress of the works.
A. combined with the new approach in private sector’s active involvement in a multi billion euro project. Official Gazette of the Hellenic Republic 544 D’/1978 Law 1418/84 and the Presidential Decree 609/85 covering the legislation on public works contracting Law 1515/85: Regulatory Plan and Environmental Protection Programme for the wider Athens Area Law 1650/86: On the protection of the Environment and the Environmental Impact Assessment of projects (amended in 1990 by joint ministerial acts 69269/5387/90 and 75308/5512/90 and in 2000 by Presidential Decree 334/00 to incorporate all relevant EU Directives) Law 2338/95 for the ratification of the Public Private Partnership between the Greek state and the private concessionaire “Athens International Airport S. Especially. 2005).physical terrain along the highway and the redesign of the several interchanges in order for the highway to minimize the impacts on the areas (Eleftherotypia. the case of the EIA for the other part of Attiki Odos is a story of legal disputes. 17 . Attiki Odos S. Pressure Groups The fact that the project was such a large-scale intervention in both the urban tissue and the environmentally sensitive Imittos area. amended through subsequent legal acts while the same time there is also substantial relevant EC legislation with statutory standing. in the selection and negotiation processes between the private and public parties there is no evidence of any influence by other interest groups (EC. protests and significant modifications. Planning and Environmental Regime The Greek legislation covering transport infrastructure planning and development comprises a magnitude of legal documents with often conflicting provisions (Zografos et al. 2003. in many cases. 2004). MEPPW 2002). Below a list of the most important and relevant to Attiki Odos legislation is provided (some of this legislation has been subsequently amended but we do not include the amendments that did not influence Attiki Odos): Presidential Decree “About the Regulation and Protections Zones of Imittos Mountain”. 2003. It is a complex legal framework consisting of laws and other legal acts which have been. However.pressure groups and media and an increased willingness from their side to become more involved and press on various issues in a drastic way. This is mirrored in the newspaper and magazine articles that had been criticising various aspects and characteristics of the project and also referring to substantial pressure groups action. as interviewees III and IV have stressed.A” (included the EIA of Attiki Odos) Law 2445/96 for the ratification of the Public Private Partnership between the Greek state and the private concessionaire “Attiki Odos S. brought significant turbulence and disquiet among citizens . there were considerable barriers to public involvement (analyzed in the public participation section of this report) which are quite common in major projects across all sectors in Greece.A” Environmental statements While the Environmental Terms for ESSM part of Attiki Odos did not involve any serious turbulence and protest.
neighbouring Municipalities and also by the American College of Greece which owned substantial land that had to be expropriated. but instead a redesign of the route for about 13km as well as the construction of cut and cover tunnels for alleviating the impact on the mountain.300m to 3. After that time and for a two years’ period. Trova and Koutras. Ioannis Kinigos to Katechaki).398). protected by the article 24 of the Constitution (as all forests areas in the country) and also protected by EU legislation as a Site of Community Interest in the EU’s Natura 2000 sites network (See figure 5). 2001 p. 1040/1993). The SAC cancelled the Ministry’s tendering result on the basis that works had started before the approval of an adequate EIA for this type of project but also on the basis that mountain Immitos is a sensitive forest area with exceptional flora and fauna. The new EIA was approved by parliamentary procedures and ratified as a law together with the EIA of the new International Airport in 1995 (Law 2338/95). alternative routes and methods of construction had to be studied before the approval of the new more detailed. The “don’t do the project” option was rejected on the basis of the documented necessity of the project.The EIA of the Immitos Western Peripheral Motorway The first Environmental Impact Terms for Immitos Western Peripheral Motorway were prepared in early 1990’s before the first tender for excavation and preliminary works at the part of it (from Ag. various alternative routes proposed by the different stakeholders including the municipalities. 1038/1993. Therefore. 1675/1999). The major other options that had been put on the table during the consultation exercise2 included the “don’t do the project” option and four other real tunnelling alternatives of various tunnel lengths (from 1. and protective for the mountain EIA (MEPPW. 2 Consultation exercises for EIA are run by the Prefectures that the projects belong to. started being discussed and examined. (Law 1650/86) 18 .350m). The Supreme Administrative Court halted construction and cancelled the tender on the basis of EIA inadequacy (SAC. The option selected in the EIA included no tunnelling at all. The appeals to the SAC were made by various citizens of the area. The EIA consultation for IWPM was a responsibility of the Prefecture of Athens. 2000. SAC. while the 4 tunneling options were rejected on the basis that they would negatively affect the operation of traffic (SAC. 1035/1993. with different length of tunnels and methods of construction. SAC.
Immitos Mountain Site of Community Interest (SCI) of EU Natura 2000 Sites Network . The above led the interested and affected groups and communities to appeals to the Supreme Administrative Court3 and the EC.Figure 5. in the case of Attiki Odos. key project documents as the concession contract and EIA were approved through parliamentary procedures to be ratified by laws.Attiki Odos is in red (source www. In addition. the experience from Attiki Odos and other major projects reveals the lack of adequate procedures to enable civil society to have an effective involvement in the project planning and development.gr. there were 3 This is the reason why this court has effectively become a major policy maker on environmental issues with a tradition in dealing very challenging issues with unique sensitivity. The information disclosure on the early stages of Attiki Odos development was poor and inadequate (Interviewee IV). distant from the citizen and more importantly they could take place only after the conceptualization and planning of the project. In addition to the inadequate disclosure of information and lack of transparency climate. As interviewee IV states. IV). 19 . This proved to be very time-consuming. accessed on 3/10/08) Public participation As interviewee III stresses. the time frames in which citizens would get informed about the project and study its immense documentation were too short for them to form a documented opinion and effectively get involved (Interviewees III.mpe. This didn’t allow appealing against them or modify them through public participation exercises.
IV). aimed at the completion of the works for the regeneration of The adoption of Aarhus Convention on Access to Information. Civil society was not given in time the power to effectively influence the planning of Attiki Odos under a transparent participation mechanism. the involvement of community and interest groups was not an integral part of the planning and development practice as a whole. Environment and Public Works. 5 EC. SAC. It was rather seen as a potential obstacle that would affect the progress and realization of the project. IV). 2159/98). the SAC. taking advantage of the great amount of excavation material produced by the various jobsites and in cooperation with the Organisation of Planning and Environmental Protection of Athens6 and the Attiki Forestry Services. consulting and encouraging the public to participate was not an important concern of the government. Informing. the disclosure of information became a responsibility of the Ministry from which it is still not very easy to obtain specific information due to its bureaucratic processes and lack of openness (Interviewee III). 2158/98. Definitely. Contrary to the above is. After this approval. The design made for these specific quarries. EC obliged the Greek state to issue a circular that prohibits such articles in public work contracts and cancels certain clauses of CC article 61 (Interviewees III. Zoitsa. Since then. urban planning and environmental matters of Athens and its wider area. However. in the areas of old quarries. Another issue that became a barrier to public participation was article 61 of the Concession Contact (Law 2445/96) regarding ‘confidentiality’ which prohibits the disclosure of information about the project from the period of negotiations until three years after the concession (Interviewees III. After long delays and when the project was already in the construction phase. however. proceeded to the regeneration (in terms of landscape and environment) and reforestation of a number of old quarries. Public Participation in Decisionmaking and Access to Justice in Environmental Matters led to the issuance of the improved directive 2003/4/EC which has not been yet incorporated into domestic laws (Interviewee IV). The results of this effort are demonstrated by the regeneration of the quarries in Glika Nera.aodos. IV). article 61 circumvents with the EC directive 90/313/EEC4 and Elliniki Etairia (NGO) appealed to the EC (Interviewees III. accessed on 20/11/2007) Regeneration of quarries – Reforestation Attiki Odos. It is the body which is responsible for administrative management of physical planning. Regeneration related impacts (source: www. Pendeli and others. based on the fact that EIA was already ratified. could not judge the appeal in favor of those that had appealed (SAC. in the case of Attiki Odos. a report by the Directorate General Transport and Energy5 which notes that Attiki Odos demonstrated positive signs of effective interest groups’ involvement and consultation as opposed to projects of the conventional method of procuring and this agrees with the views of Interviewee I as well. 2005 6 Legal Entity of the Public Sector supervised by the Ministry of Planning.standing appeals (that had not been discussed in the court yet) directly affecting the terms of EIA at the time when the parliament was approving the EIA as a law. This enabled the creation of leisure and sport areas and places for the organisation of cultural events. 4 20 .gr.
Archaeological findings The greatest excavation ever performed in the Athens basin. This was handed over to the community since 1999 and including 1 football field with seats. register and promote elements of cultural heritage. a playground. small theatre. playground. storage buildings and several auxiliary spaces. 2 tennis courts. The excavations. Along the highways have been constructed noise barriers of thousands of square meters together with buffer zones and special gardening. in terms of landscape and flora. revealed archaeological material dating back from all eras. circa 1300 . the motorway was smoothly and successfully incorporated to the natural and built environment. There are also 6 noise monitoring stations along the highway together with 8 air quality measurement stations.1400 Noise Attiki Odos has developed significant noise reduction measures adapted to the special terrain and characteristics of the areas in passes from. Similar facilities were created on Tatoiou Avenue in the Metamorfosi (tennis court. dated from 6. while similar areas were also formed on Pentelis Avenue in Vrilissia and on Panagouli street in Agia Paraskevi (near Doukissis Plakentias Interchange). from the Neolithic period up to the modern age.C.such areas. conservators and technicians worked in all the aspects of the project. country houses and workshops of the Roman Age • Tanks and kiln of the Roman Age • Agricultural installations of the post-Roman Period • Foundations of Christian temples and cemeteries. 21 . The most significant findings include the following: • Remains of a Neolithic settlement.) • Ancient roads. green areas) and in Zefiri. in order to achieve the aesthetic and environmental upgrading of the greater area. a snack bar. green areas.) • Burial Enclosures of the Hellenistic Period (4th century B.000 BC • Ancient roads and burial enclosures of the Classical Period (5th century B. in order to investigate. The cut and cover section in Iraklio is a typical example. detect. In this manner. with the help of the Local Authorities.C. Approximately. Parks Attiki Odos made the best of the overpasses and the cut and cover sections of the motorway. by creating leisure and sport areas. was executed within the framework of the construction of Attiki Odos and brought Attiki closer to its history. which always preceded the earthworks. 200 specialised archaeologists.
000 sq.m. accessed on 20/11/2007) Employment According to the Ministry’s (MEPPW) estimations.aodos. with a gross built area in excess of 74. which is a few km before the western end of the Attiki Odos highway. hotel and convenience stores. Paiania area (SEA Mesogeion). which is closer to the Athens International Airport and Aspropirgos (SEA Aspropirgou). namely SEA Aspropirgou and SEA Mesogeion . The company has developed a total land area of approximately 149.000 jobs/ year in the five years of construction 1000 jobs / year in 18 years of operation 2.m. responsible for the development and exploitation until the end of concession (according to the concession contract) of the 2 Motorway Service Areas.Figure 6. retail shops.000 sq.A is a company formed in 2000 by the shareholders of the concessionaire. a vehicles’ repair shop. repair shops. fast food restaurants and office buildings 22 . and the underground development is approximately 12. m. in both sides of the highway connected by an overhanging bridge for vehicles and pedestrians. SEA Mesogeion . www..500 sq. The development includes fuel stations. 2). as well as significant commercial developments with office buildings. The mixed-use developments include automobile services such as fuel stations. It occupies a site of approximately 67.gr. Noise reduction Study at Kifisias Interchange and noise reduction structures (www."Motopolis Mesogeia": “Motopolis Mesogeia” is located on the 40th km of the Attiki Odos highway in the vicinity of Paiania area (see Fig. The Motorway Service Areas are developed in two locations along the highway.000 jobs from “multiplier effect” of the Project Attiki Odos Service Areas and real estate development (Source: J&P – AVAX Construction Group.700 sq..m. The total over ground area amounts to 33.000 sq. 2000): 5. snack bars.gr accessed on 20/11/2007) SEA Attiki Stathmoi S.m.jpdevelopment. the figures on job creation have been as follows (MEPPW.
Motopolis Aspropirgos occupies an area of 82. near the area of Aspropirgos in Western Attiki (See Fig. the American College of Greece (and municipality of Ag. which were far higher than the commercial values of their properties (Kathimerini 2001). the successful. So.m.which are leased to Ericsson Hellas S. The college had appealed to the SAC at the first tender of the road in 1992 in an attempt to protect a part of its property from expropriation. 2002). A positive thing though was that property development along some parts of ESSΜ was prohibited many years ago before the PPP deal and the execution of the expropriations plan by the Ministry (Leistner et al. They appealed to courts to be reimbursed by threatening the timeline of the project and in many cases they won rates of 30-40 million drachmas (approximately 90-120 thousand euro) per 1000 sq. many property owners were taking advantage of the public sector being in a hurry to meet the deadline of AIA opening7 and the Olympics in the summer of 2004. As Interviewee I states. 2001) and a final figure of € 880 million in 2002 prices (EC/Barnier.m. penalty clauses were included in the Concession Contract of AIA of approximately € 1 million per each month of delay (Law 2338/1995). The cost figures we have for the expropriation cost are € 813 million up to 2001 in 2001 prices (EC/Barnier. Had the road not been implemented in time and according to the specified quality standards. As Hatzidakis (2003) notes. 23 . Land Acquisition Expropriations and the related risks in the PPP structure were entirely undertaken by the Ministry (MEPPW). Paraskevi with the support of two 7 The development of Attiki Odos was an obligation of the Greek Government to its German copartners in the Joint venture PPP for the construction and operation of AIA (Eleftherios Venizelos Airport). land plots in Greece are small (and many) and private property rights are very well protected while according to the compulsory purchase procedures. The project had to be built mostly in an urban area where land prices were high compared to greenfield. After the appeal of the college and some municipalities in the area of Immitos. 2000). land owners can appeal to courts in various circumstances which may lead to decisions that need long time to be finalized and entail high reimbursements by the state.700 sq. Eleytherotypia. another major reason for the expropriations cost overrun and delays was the inexistence of national cadastre which could help the Ministry to better estimate the cost of land acquisition.A."Motopolis Aspropirgos": The development is situated on the 10th km of the Attiki Odos highway. Despite that. the new PPP tender and the signing of the concession contract. 2003). as well as smaller retail shops.. SEA Aspropirgou . this obligation was imposed by the European Investment Bank which was financing both AIA and Attiki Odos. More particularly. After the approval of the new EIA. Motopolis Aspropirgos is expected to have a total above ground built area of about 40. profitable and effective operation of the airport would have been compromised.m which is not yet fully developed and commercially exploited compared to SEA Mesogeion. 2003. on both sides of the highway connected with an underground passage for vehicles and pedestrians. Also. A major legal dispute with regard to land acquisition has to do with the property of the American College of Greece on Imittos mountain.000 sq. The initially estimated amount (in 2003 prices) was € 314 million (Eleftherotypia. 2003a. Konstantopoulos. the SAC halted the works and asked for a new more protective EIA and a redesign of the route (see environmental statements section of this chapter). and Alpha TV Channel. a 197 room Holiday Inn hotel. 2). expropriations became a huge issue in this project both in terms of costs and delays (see costing section).
1675/1999). After almost two years the SAC came to the decision that the American College’s property cannot be expropriated and the road should have a minimum impact to the operation of the college8 (the other appeals based on environmental grounds were rejected). 24 . 1679/1999. SAC. 2001). 8 Media say that the ambassador of the United States had a special concern for the protection of the college’s property and took specific action towards this direction (Kathimerini. Both the delay of this decision of the SAC and its outcome had at that time a big impact on the costs and the progress of the project.other neighbouring municipalities and NGO’s/pressure groups) continued its legal appeals to the SAC since the new route was still affecting its property and a part of it had to be expropriated. This caused once again the redesign of the route (SAC.
In the centre and along major parts of its route. PRINCIPAL PROJECT CHARACTERISTICS Outline of Technical Specification Attiki Odos has 3 traffic lanes in each direction and an additional emergency lane. B. where the suburban railway operates.Check on entry only . intervention and maintenance vehicle fleet: Patrol vans.aodos. trucks. Wireless coverage for Police. Flood Protection Works: 66.: 4 Operation & Maintenance Centre: 1 Customer Service Centres: 9 Toll Stations: 38 Total Number of Toll Lanes: 193 Electronic Toll Collection (ETC) Lanes: 54 Manual Toll Collection (MTC) Lanes: 139 Closed circuit cameras (CCTV): 200 Digital signing and messaging System (MVMS and AVMS): 75 screens Emergency Roadside Telephones (ERT): 600 Traffic measurement system (VDS): 600 detectors Lane control signals (LCS) and Variable speed limit signs (VSLS): 1240 Meteorological stations: 3 Over-height vehicle detection system (OVDH): 43 detectors CO/opacity detectors and automatic tunnel ventilation system: 52 Supervision. Motorist Service Stations / M. Total length: 65. Ambulances Toll Collection System: Open system . Fire Brigade. ΤΕΤRA personnel communication.S. sweepers. multi-purpose trucks.Flat rate.20 km Service / Side Roads Network: 150 km Interchanges: 29 Motorway Overpasses: 100 Motorway Underpasses: 25 Rail Bridges: 38 River / Stream Bridges: 21 Pedestrian Overpasses: 12 Tunnel / Cut & Cover Sections: 56 Total length of Tunnel / Cut & Cover Sections: 15.C. The major technical features of the project are listed below (www. Signing trailers. mobile VMS Communications: 2 Fiber Optic Network loops along motorway.7 km. audio). Halkias.36 km. 2004).gr accessed on 18/05/2007. it has a special traffic island.S. 100% redundancy (data. video. payment by cash or transponder 25 .
PLAKENTIAS Interchange with D. Plakentias Avenue and System Interchange to Imittos Western Peripheral Motorway ANTHOUSA Interchange to Anthousa MARATHONOS Interchange to Marathonos Avenue LEONTARIO Interchange to Leontario KANTZA Interchange to Kantza PAIANIA Interchange to Paiania IMITTOS Future Interchange SPATA AIRPORT Interchange to Athens International Airport and System Interchange to Koropi-Airport Motorway AIRPORT SOUTH Motorway extremity. Paraskevi/Stavros and System Interchange with Elefsina . IOANNIS THEOLOGOS DIMOKRITOS AG. THIVA/MANDRA Interchange to Thiva MAGOULA Interchange to Magoula AGIOS LOUKAS Future Interchange ASPROPYRGOS Interchange to Aspropurgos EGALEO Interchange to Egaleo and System Interchange to Egaleo Western Peripheral Motorway (Egaleo WPM) LIOSIA Interchange with Filis Avenue ACHARNES Interchange to Acharnes METAMORFOSI Interchange with Athens-Thessaloniki Motorway IRAKLIO Interchange with Irakliou Avenue KIMIS Interchange with Kimis Avenue KIFISIAS Interchange with Kifisias Avenue PENTELIS Interchange with Pentelis avenue D. Contiguous to airport south access GATE MARKOPOULO Interchange to Markopoulo . Dimokritos Interchange to Ag. Merge with Athens – Patras Motorway.gr. Paraskevi. IOANNIS KINIGOS KLEISTHENOUS IMITTOS Eastern Peripheral Motorway Motorway extremity. Access to the industrial port town of Elefsina.Spata Airport Motorway (ESSM) Future interchange Y5 26 .aodos.Motorway Extremity ELEFSINA 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16/Y7 17 18 19 20 K1 The Imittos Western Peripheral Motorway (IWPM) Y1 Y2 Y3 Y4 KATECHAKI AG.Stavros . Holargos Interchange to Ag. Interchange to Katechaki – Alimou Avenue Interchange To Papagou. accessed on 26/12/08): Elefsina .Spata Airport Motorway (ESSM) Motorway Extremity.Stavros .Principle Transport Nodes The transport nodes of the two major parts of the highway are listed below (source: www.
gr. Attiki Odos and its Interchanges (source: www. Motorway extremity Interchange to Katechaki Avenue and Kessariani . accessed 20/11/07) 27 .aodos.Y6 GLYKA NERA KATECHAKI – KESSARIANI Interchange to Gluka Nera.Motorway Extremity Figure 7. Rafina Avenue.
The planning and studies stage is already completed and the project is going to be developed through a concession-type PPP to be tendered by the end of 2008.Major Associated Developments New Attika Urban Highways Project (source: MEPPW.2 billion and to be in full operation by the end of 2013. The highway is planned go under the entire Imittos mountain through a tunnel and also access the waterfront avenue at the Athens Metropolitan Park bypassing the southern urban areas through extensive tunnelling of more than 14 km. The project is estimated to cost € 1. This probably implies that the existing tolling system of Attiki Odos will have to be changed in order to integrate with the new highways tolling mechanism. 2008) A new 55km highways project extending Attiki Odos to the east and south and providing links with existing urban roads to Attiki Odos. those projects. Figure 8. As declared in the Ministry’s strategic declarations. unlike the existing toll system of Attiki Odos while the intention of the Ministry (MEPPW) is that the tolls of the new highways will be cheaper than the ones of Attiki Odos. together with the existing Attiki Odos and the New Attika Urban Highways Project will comprise an integrated system of inner peripheral highways of the metropolitan area of Athens. 2008) New Motorways Programme (Source: MEPPW. 2007) 29 . Some additional highway projects of an estimated budget of € 0.5 billion will be procured as public works (mainly redevelopment of existing roads). New Attika Urban Highways Project (Red dotted lines denote tunnels and the blue line is Attiki Odos) (source: MEPPW. It is worth mentioning that the New Attika Urban Highways will have an electronic toll system with a distance-based charge for the users.
4 billion • Planned end of Construction: 2013 Maliakos – Kleidi segment of PATHE Motorway (shown in dark blue) • Length: 230 km • Construction Budget: € 1.The undergoing Motorways redevelopment programme consists of projects that connect Athens with major cities and provide improved road accessibility to mainland Greece.6 billion • Planned end of Construction: 2012 30 . green.05 billion • Planned end of Construction: 2012 Central Greece Motorway (shown in red) • Length: 175 km • Construction Budget: € 1.8 billion • Planned end of Construction: 2013 East Motorway of Peloponisos: Corinth – Tripoli – Kalamata and Lefktro – Sparta (shown in purple) • Length: 205 km • Construction Budget: € 1.3 billion • Planned end of Construction: 2012 North-western Motorway of Peloponisos: Elefsina – Corinth – Patras – Pyrgos – Tsakona (shown in light blue) • Length: 365 km • Construction Budget: € 2. Antirio-Ioannina segment of Ionia Odos and Athens .Maliakos of PATHE Motorway (Shown in Green) • Length: 382 km • Construction Budget: € 1. The programme is implemented through several PPP concession schemes (co-financed by EU/ERDF. the Greek State and the Private Concessionaires) shown in light and dark blue. purple and red in Figure 8.
31 .gr. Neratziotissa. Also. Neratziotissa was also the transport hub serving the main Olympic complex at Marousi during the 2004 Olympics. The planned extension of the Metro and Suburban Railway network will add major hubs of Metro and Suburban Railway with along Attiki Odos. accessed 20/05/08) Athens Metro and Suburban Railway Several stations of the Metro and Suburban Railway are along Attiki Odos combined with interchanges of the highway (see Figure 9). D. Greek Motorway Programme (www. Plakentias and Acharnes.Figure 9. These include Halandri.minenv. Plakentias metro stations were incorporated in the Attiki Odos project as well as major infrastructure works that allow the suburban railway to go along the highway. parts of the construction of Neratziotissa and D.
the development of Attiki Odos was an obligation of the Greek Government to its German co-partners in the Joint venture PPP for the construction and operation of AIA (Eleftherios Venizelos Airport). The EIA for Attiki Odos was approved and ratified as a law by the parliament together with the EIA of the New International Airport (Law 2338/1995).gr. So. penalty clauses were included in the Concession Contract of AIA (Law 2338/1995). accessed on 18/05/2007) Athens International Airport Attiki Odos serves as the principal road access to the Athens International Airport. Moreover. the Pallini – Airport section of the road had to be implemented by 28/2/2001 so as the the operation of the airport would not be compromised. More particularly.ametro.Figure 10: Athens Metro and Suburban Railway (source: www. The two projects were formally introduced together in the Regulatory Plan of Athens in 1985. Project Costs The attempt to find absolutely accurate figures on the costs of the project entailed serious difficulties due to the diverse versions of the budget and its break down by various 32 .
This provision of the Concession Contact had generated conflicts with the domestic public works legislation. The financing and guarantees to be raised on the basis of the PPP project financing are to provide the funding for the Lump Sum Object. 9 33 . The equivalent euro figures in 2003 prices for the above amount are (EC/Barnier. archaeological works and moving of public utilities12.396 million The total project budget includes also the cost of expropriations. We have seen similar figures in other sources like a total of € 1253 billion (Attiki Odos S. an EEC directive resolved the issue by allowing the state to award up to 50% of additional works outside the Concession Contract to the concessionaire under the same pricing determined in the Concession Contract. The Additional works are directly awarded (without tendering) to the concessionaire according to the Parallel and Additional works price list that the concessionaire had included in its bidding offer. the different timing of budgeting from these sources and the currency change in Greece from Drachma to Euro (exchange rate has not been stable). 2003). Predicted Costs The budget of the project was determined (in Greek drachmas) in the Concession Contract and had two major components: The Lump Sum Price covering the basic project (Lump Sum Object) which is literally the part of the project that strictly corresponds according to the Concession Contract to the construction and operation responsibility of the concessionaire. According to the concession contact.A. The Parallel and Additional works which under the Concession Contract include works which will be needed for the realization of the project and will be paid according to the bill of quantities of the Parallel and Additional works (the discount on which was a tender criterion). The Concession Contract included a predetermined amount of Parallel works and a provision for an up to 50% increase in their cost. We have seen quite different figures in other sources such as a total of € 240 billion (Attiki Odos S. the value of Additional works could not exceed the 50% of the Lump Sum Object9. 2003).A. 12 These costs and the Parallel and Additional works are funded entirely by the Greek state (and EU subsidies). However.249 million10 € 147 million11 (the predicted amount) Which sum up to the total amount of: € 1.2001)13. 10 This amount derives from an official answer of the EC to a Greek member of parliament. The predicted cost of the above was € 440 million (EC/Barnier. Having compared and merged the data from the various sources we have the confidence that the figures presented here provide a safe and sound picture on project costs (the closest possible to reality). fees for independent engineers. 2003) Lump Sum Price: Parallel and Additional Works: € 1.sources. 11 This amount derives from an official answer of the EC to Greek member of parliament.
These are estimated as €197 million (EC/Barnier.Actual Costs The actual costs presented are in 2003 – 2004 prices so as to be comparable with the predicted costs. PWC.A. EC/Barnier. 2003). archaeological works and moving of public utilities (costs outside the concession contract) reached the amount of € 1.2002) The development of further drainage and flood protection works (Hatzidakis.A.2002. 2003. Interviewee I) The cost of works related to the construction of D. 2001. The concessionaire managed to carry out the predetermined sum of works included in the Lump Sum Object within the predetermined budget of € 1. The actual cost of the Additional works reached €571 million (EC/Barnier. PWC. the total cost of the project reached € 3. Plakentias metro and suburban railway station that were in the area of Attiki Odos and were assigned to the concessionaire (Attiki Odos S. 2006). 34 . 2004) Further Archaeological works (MEPPW. the areas of Vrilissia and Halandri and in the Airport Interchanges (MEPPW. 2006).2 billion The increase in the costs covered the following not initially anticipated costs (specific costs are not included due to mismatch of figures from various sources): • The cost of the Highway’s construction modification in order to facilitate the development of a suburban railway line along the road (EC/Barnier. 2003. Eleftherotypia. 2006) The actual cost of the Parallel works reached the maximum allowed limit of € 220 million (EC/Barnier.A. • • • • • • Another cost that can not be included in the project budget but comprise an additional expense for the public sector are the penalties paid to the concessionaire by the state due to various legal disputes and late approvals. 2001). 2003. 2003) Costs due to modifications of the design. PWC. Attiki Odos S. The cost of expropriations. 2003. study and construction works (tunnels etc) of specific routes for environmental and other reasons mainly in Imittos mountain. 2003. The grand total of the project budget within the concession contract reached €2. 2003) Increase in land acquisition costs Increase in Independent engineer costs whose scope of work became larger due to many additional works (Eleftherotypia.249 million (Attiki Odos S. fees for independent engineers. 2003.160 million which is an increase of 164% (compared to € 440 million) To sum up. Eleftherotypia. 2001.040 million. Kitsos.
In mid 1997 works within the concession contract started (Haralampidou.0 % 31/12/04 98. MEPPW. These works were funded mainly by the state and by the end of 2000 had approached 14.Kifisias D Kifisias – Pallini E Pallini – Spata Airport F IWPM Deadline 30/09/03 30/09/03 30/09/03 30/09/03 28/02/01 28/02/03 Delivery 31/01/03 03/08/04 31/01/03 31/01/03 28/2/01 30/08/03 Changes in Schedule 8 months earlier 10 months later 8 months earlier 8 months earlier on time 6 months later 14 This figure was projected on 04/8/04 to be accomplished in 20/1/05. Kimis – L. According to the yearly reviews of the operational programme "Road Axes.5 % 31/12/02 59.Metamorfosi C Metamorfosi .5% of the whole project construction. 1997) despite the fact that concession had not commenced (financial close was not achieved yet). MEPPW. 2004. Kimis Pallini – L.Project Programme The construction of the project had started long before the formal construction period commencement of the concession contract which was on 06/03/2000. 2005b): 31/12/00 14. 2005b): Gerakas – Spata Airport and Metamorfosi – L. MEPPW. 2002. By June 1997 there had already been procured and constructed pilot works (mainly on the part from Metamorfosi to Kimis) of around € 90 million outside the concession contract (Haralampidou. Pentelis and L. 35 . Ports and Urban Development" at MEPPW the progress of construction has been as follows (MEPPW. 1997).2 % The progress of works according to the Independent Engineer’s reports to the banks was as follows (Interviewee II): 31/7/00 24% 18% 31//7/01 48% 48% 30/8/03 94% 90% 04/8/04 100% 20/1/05 100%14 Lump Sum Object Parallel & Additional Works The construction end dates of the project sections are presented below (MEPPW. 2002. Pentelis Imittos Western Peripheral Motorway (without the western Western branch of IWPM March 2001 January 2003 December July 2004 The following table illustrates the deadlines of the project sections according to the concession contract and the delivery dates (issue of the Official Delivery for Operation Certificates) (source: Interviewee II): Project Section A Elefsina – Egaleo B Egaleo .
accessed 20/5/2008. processed by the author) 36 . Sections of Attiki Odos Project (www.Figure 11.aodos.gr.
More specifically there have been: 23 Principal Engineering Contract 78 Lending and Guarantee Agreements 8 Special Fees & Payments Contracts 7 Other Special Agreements 22 Other Contracts A schematic overview of the main contracts is presented below. the contracts and agreements have totally been 138 and the different contracting parties 65.A B C D F E Main Contracts and contractors According to Halkias and Deighton (2006). 37 .
Figure 12. Main Project Contracts (Halkias and Deighton. 2006) 38 .
447 15 24.322 17 25.Spata 18. Egaleo Metamorfosi 17.538 2x(3L+1EL)+RW 4 METAMORFOSI IRAKLIO KIMIS KIFISIAS D. THEOLOGOS Type DIAMOND DIAMOND DIAMOND SYSTEM DIAMOND DIAMOND TRUMPET SYSTEM DIAMOND DIAMONT LIKE LOOP ROUND ABOUT DIAMOND SYSTEM SYSTEM HALF DIAMOND PARCLO SYSTEM DIAMOND LIKE DIAMOND SYSTEM (3LEGS) DIAMOND HALF DIAMOND DIAMOND (FLYOVER JUNCT. Pedestrian Bridges Units 2 Sq. 9.395 39 .630 2 420 15 10.243 Main Sector: 2x(3L+1EL)+ISL Branches: 2x(2L+1EL)+ISL 5 GLYKA NERA DIMOKRITOS AG.615 Tunnels (Β=14.155 1 200 18 22. 485 Underpasses Units 11 Sq.0 Μ) Units 2 m.299 Overpasses Units 10 Sq. Imittos Western Peripheral Motorway 10.834 35.067 2 151 4 14.143 1 270 16. Pallini . I.230 14 7. 20. tables compiled by the author) Section Section Length meters Α.gr. Elefsina – Egaleo Β.Main Engineering Facts and Figures and Civil Engineering Components (source: MEPPW www.359 2x(3L+1EL)+RW Or 2x(2L+1EL)+RW 2x(3L+1EL)+RW Width units 3 Interchanges Name ELEFSINA MAGOULA ASPROPYRGOS 4 EGALEO LIOSIA ACHARNES THRIASIO C. Accessed on 23/06/08.846 1 123 2 825 21 25.323 95 114.m. 650 CUT & COVER units m.722 26 4 1. Metamorfosi – Kifisias 6.m. PLAKENTIAS KOTNOPEFKO DRAFI Ε.minenv.200 1 385 22 14.662 Total 72.104 51.070 2x(3L+1EL)+RW ή 2x(2L+1EL)+RW 7 PALLINI RAFINA KANTZA PEANIA STATA SPATA SOUTH MARKOPOULO F.) 2 555 18 2.m.m.850 2x(3L+1EL)+RW 3 PENTELIS D.564 55 60.205 19 3.006 12.267 8 1. Sq. Kifisias Pallini 7.
784 m New Jersey Fencin g Excavation s Rock Excavation Supportive Earthwork Supportiv e Walls Noise Barriers Green Service Areas Users Servic e Centre A.869 sq.100 m3 32.188 m3 2.958 m 142.770 m 8. RW: Railway line in the Central Island) Section Pedestria n Pavement s Suppor tive safety walls 31.269 sq. Metamorfosi – Kifisias D.512 sq.500 m 16. 40 .906 m3 11.727 m3 34.732 sq. 1 1 429.320 m 36.344 m 13.600 m3 700. 21.106 m3 20.973 m3 1.761.m.m.050 m 39.984 m3 2.632.293.915 m 363.605 m3 289.m. Imittos Western Peripheral Motorway 767.300 m 1.477 sq.953 m3 492. EL: Emergency Lane. ISL: Central Island.203.516 m3 1.m. Elefsina – Egaleo B.941 m3 193.880 m 10.150 m 1.576 m 17.453 m3 22.853.776 m3 0m 690.720 sq. Kifisias – Pallini E.752. 34. 37. Egaleo – Metamorfosi C.600 m 2.118.674 m 28.004 m3 35.707 m 18.286 sq. 993.m.840 sq.778 m3 15.772 sq.465 m3 69.m.600 m 1.344 m3 1.500 m3 121.035 sq.751 sq.370. 1 623. 13. Pallini – Spata F. 70.(L: Lane.680 m3 0m 262.m.916 m3 78.300 m 2.152 m3 0 m3 275.725 m3 23.m.m.m.900 m 809.560. 415.m.490 m 6.062 m 14.605 sq. 43.m. 461.
2008) 1973 Planning. conception Key Event/Decision Athens Basin Transportation Survey and Study by Wilbur Smith & Associates provides the basis for a proposal of a peripheral road.D. Smith & Associates proposes an outer Peripheral Highway on a similar route as the ESSM part of Attiki Odos (picture source: Zekkos. conception Athens – Attiki Region Traffic and Transportation Study by W. (picture source: Zekkos. PROJECT TIMELINE Year 1963 Month Type Planning. 2008) 41 .
Spata Airport and the Metro comprise key components.Year 1979 Month Type Planning. 2008) 42 . (picture source: Zekkos. conception Key Event/Decision The Ministry (MEPPW) with the support of all major planning offices of Athens prepares a comprehensive plan and detailed masterplans (Capital 2000) where Attiki Odos.
g. not as a single project but by proposing its major segments on the premises of the transformation of the Athens road system towards a more orbital structure (picture source: Zekkos. which was not a factor of selection The Supreme Administrative Court cancels the tender and halts the works (SAC 1035/1993. Three Consortia. legal) as well as a Design study. technical. namely CONCIF. Feb. Ioannis Kinigos to Katechaki) Tendering of Attiki Odos as a whole on a Design – Build – Finance –Operation – Maintenance Public Private Partnership (Pre – Selection phase) End of Phase A (pre-selection). 2008) Year 1991 Month Type Planning Key Event/Decision ODOMICHANIKI and DROMOS start the Technical consultancy services to the Ministry (MEPPW) called Transport Mega Projects of Attiki Prefecture – Technical Consultancy which included: The detailed design and operation study of 100 km network of urban highways in Attiki (mainly Attiki Odos) and 30 Km of suburban railway. Feb. conception The Regulatory Plan of Athens (“Regulatory Plan and Environmental Protection Programme for the wider Athens Area”) the first Athens plan with statutory standing (Law 1515/85) defined Attiki Odos. PELLA and ATTIKI ODOS are preselected: The bidding consortia had submitted a series of documents related to their capabilities to fulfil the objectives of the tender (e. Tender Tender Tender 1993 May Legal . SAC 43 1991 1992 1993 Feb.1985 Planning. The traffic Analysis and forecasting and The Preparation of the tender documents The Ministry (MEPPW) tendered the excavation and preliminary works for a segment of Attiki Odos in Immitos Mountain (From Ag.
EIA. The appeals to the SAC were made by various citizens of the area.350m) were also rejected mainly for traffic operation reasons. the mean return on equity. Tender/Inv estors . the discount on the study of parallel works. The submission deadline of Nov. based on a redesigned route (according to environmental friendliness criteria) on the Imittos mountain was ratified by the Parliament as a law of the state together with the EIA of the new International Airport. At the first stage the financial offers (financial plans/projections. The auction had two stages. Tender 1038/1993. the concession period and the required loan guarantees (amount and period) from the Greek state during the Operation Period Year 1995 Month Aug. neighbouring Municipalities and also the American College of Greece which owned substantial land that had to be expropriated. nominated the Attiki Odos consortium as the provisional concessionaire and negotiations for the finalization of the terms of the concession contract between the Attiki Odos consortium and the state were initiated The EIA for the IWPM. SAC 1040/1993). that had been proposed by the different stakeholders were discussed and examined. 2. The option selected in the EIA had not tunnelling at all but a redesign of the route for about 13km and the construction of cut and cover tunnels for alleviating the impact on the mountain The Ministerial Decree A/6/01/73/10844/26-3-1996 approves the result of the tender and the expansion of Attiki Odos concessionaire to incorporate the companies of the non – winning consortia (see par. The score of the Complete offer was estimated by a mathematical formula which weighted the following criteria: the amount of state contribution. sources of funds/finance-ability) were evaluated and the scores were estimated in order to proceed to the second stage. Route Change 1996 Mar. the toll rate. the amount of the concessionaire’s equity. Type Tender Key Event/Decision The Ministerial Decree A/6/01/73/9752/27-8-1995 rejected the objections that all three consortia had submitted. risk analysis. and therefore alternative routes should be studied Initiation of Phase B of the tender: Tender documents were provided to the pre-selected consortia. The option not to construct the project at all was rejected and also four different tunnelling alternatives of various tunnel lengths (from 1. The SAC cancelled the Ministry’s tendering result on the basis that works had started before the approval of an adequate EIA for this type of project but also on the basis that mountain Immitos is a sensitive forest area. 1994 was postponed in a climate of increased insecurity due to the uncertain final design of IWPM (EIA was not finalised).300m to 3.1994 Aug. All financial offers got adequate score to pass to the second stage which was the evaluation of the Complete Offer of the 3 bidders. Various alternative routes with different length of tunnels and methods of construction. protected by the article 24 of the Constitution.3) and 44 1995 Sept.
Funding Finance 1998 Dec. Concessio n Contract Funding Concessio n Contract Finance Finance Concessio n Contract.A sign the lending agreement for a 220 Billion drachma long term loan (€645 million) The concession contract is amended by Presidential Act 3/1998 to in order to allow heavier inflow of state capital at the preliminary works phase.A is formed as the Special Purpose Vehicle The concession contract is signed between the representatives of Attiki Odos S. Dec. nominates the Attiki Odos consortium with its new synthesis as the concessionaire. Planning and Public Works Decision No 1692/96/EC of the European Commission on TEN-T development incorporates the segment of Attiki Odos from Metamorfosi to Elefsina in the priority TEN-T axis 7 The parliament ratified the concession contract together with other additional regulations related to the implementation of works A loan of ECU 145 million is made available to the Greek state in order to contribute to the financing of works carried out by the Ministry for the Attiki Odos project European Investment Bank (EIB) and Attiki Odos S.A and the Minister of Environment.synthesis 1996 1996 1996 1996 1997 1998 May July Nov. so that construction could progress significantly before the financial close The consortium of Commercial banks and the Greek State sign the Guarantee Agreements (that would guarantee the Commercial Banks’ Loan during operation period) Year Mont h Type Key Event/Decision 45 . Dec. Jan. Attiki Odos S.
2006 The concession contract is amended once again by Presidential Decree 75/1999 in order to satisfy various claims of the lenders and adapt to the circumstances that had evolved since the ratification of the concession contract 2 workers killed and 9 seriously injured from the collapse of a bridge in the part from Paiania to Markopoulo in Attiki Odos. It took almost two years for these appeals to be resolved. 8595 of 27/10/1999 on the subsidy regime of the project under the EU regulations judged that the terms of the concession contract do not comprise conflicts under the EU law and the project will be subsidized Year Month Type Key Event/Decision 46 . Financing Accident 1999 Oct. Concession Contract. Funding picture source: Halkias and Deighton. Expropriations The Supreme Administrative Court imposes a new redesign of the IWPM route so as to have the minimum possible impact to the property (a part of it had to be expropriated) and operation of the American college of Greece. Route Change. Paraskevi with the support of two other neighbouring municipalities and NGO’s/pressure groups continued their appeals to the SAC. the American College of Greece and the municipality of Ag. The families of the dead are compensated through legal appeals The European Commission in the Decision nr. The investigation reveals serious responsibility of contractors and the concessionaire. the new PPP tender and the signing of the concession contract. 1999 Nov.1999 Jan. Finally only the American College’s appeal was successful and managed to change again the highway route 1999 Apr. After the approval of the new EIA.
this obligation was imposed by the European Investment Bank which was financing both AIA and Attiki Odos. International magazines focusing on infrastructure and project finance characterize the financing of Attiki Odos as extremely complex and time consuming compared to similar deals around the world EU Grant awarded. the state had to fund all excluded costs End of Construction and full operation The latest possible end of concession. Finance 2001 Oct. C (Metamorfosi – Kifisias) and D (Kifisias – Pallini) are delivered for operation IWPM is delivered for operation Section B (Egaleo – Metamorfosi) is delivered for Operation The 2004 budget review of the CSF operational programme "Road Axes. Therefore. penalty clauses were included in the Concession Contract of AIA of approximately € 1 million per each month of delay Section A (Elefsina – Egaleo) id delivered for operation Sections A (Elefsina – Egaleo). The development of Attiki Odos was an obligation of the Greek Government to its German co-partners in the Joint venture PPP for the construction and operation of AIA (Eleftherios Venizelos Airport). So. Ports and Urban Development". It took almost 4 years from the signing of the Concession contract until the financial close. All loan.6%) 47 . Aug. Aug. The allocation under the European Regional Development Fund (ERDF) for this project was initially €476 million for the period 2000-2006. the banks and Attiki Odos S. The banks showed increasing hesitations to proceed to financial close if they wouldn’t form the financial structure so as to be covered against all risks. Delivery Delivery Delivery Delivery 2004 2023 Aug. changed the ERDF budget allocation for the project from € 476 million to € 322 million. Mar. Delivery 2003 2003 2003 2004 2004 Jan. signed and approved by the Greek state (Ministerial Decree A/6/00/0101/25283). Funding 2001 Feb.A. The parallel and Additional works that were not described in the Concession Contract or not imposed by legal decisions were excluded from the subsidized budget. Aug. The arrival of the international Banks into the deal in 1997 resulted in major changes in the structure of the project. guarantee and insurance agreements were finalized. profitable and effective operation of the airport would have been compromised. In this very long negotiation period between the Ministry.2000 Mar. Some of the costs initially submitted to the EC were not eligible for co-financing by EU structural funds. Moreover. Had this part of the road not been implemented in time and according to the specified quality standards. More particularly. the successful. there were also emerging problems and uncertainty about the outcome of events such as the legal disputes. Attiki Odos measure is included in the Operational Program "Road Axes-Ports-Urban Development 2000-2006". The concession will end when the concessionaire achieves a predetermined Return On Equity as defined in the Concession contract (11. The critical Pallini – Spata section (Section E) that connects the north of Athens to the Airport is delivered on time. Financial close and Commencement of Concession. the concession contact was already signed when the banks entered the deal and also both Attiki Odos and the Ministry had no previous experience of the requirements of international banks.
E. PROJECT FUNDING/FINANCING
Background to Funding/Financing
Attiki Odos was the first road project financed through a concession type PPP in Greece. It was procured and developed almost the same time period with Rion – Antirion Bridge and Athens International Airport at Spata. These three projects were the first to be financed by a PPP in Greece with the instrumental support of Structural funds and EIB.
Role of Traffic forecasts (source: Bastos, 1999)
The role of traffic forecasts becomes absolutely decisive in a PPP deal where the major source of revenues are real tolls. The traffic forecasts are used, in conjunction with the toll level and the time of concession, to estimate the revenues that the project can yield, revenues that are being used to pay for the Motorway operation and maintenance, to repay the loans and repay the investors equity plus a return on that equity throughout the concession period. Traffic forecasts are instrumental for the public sector in order to prepare the tender and the bid. For this reason, in the case of Attiki Odos both parties mandated traffic studies which showed significant demand and growth but did not capture the actual very high traffic that Attiki Odos has from the beginning of its operation. Prior to the tendering process for the Project, the Greek State commissioned a Traffic Study and developed a multimodal traffic model to evaluate the traffic captured by the motorway for various scenarios of economic and land use development and under various toll levels.
Estimating Future Motorway Traffic
The Attiki Odos consortium, led by Aktor, one of Greece’s largest contractors, in conjunction with six other Greek contractors, namely Alte, Atemke, Atticat, Ergas, Eteth and Pantechniki, together with Egis Projects (formerly known as Transroute International), a French motorway operator, was formed to prepare a bid for the Project. Although the results of the Government’s Traffic Studies (prepared by Halcrow Fox of UK and Dromos of Greece) were provided to the tenders, the Attiki Odos bidding consortium decided to develop their own forecasts (prepared by high experienced traffic Consultants – ISIS of France and Impetus of Greece), using in part the data from the Government’s studies but also the most recent data available on actual traffic levels, population, vehicles ownership and other demographic factors. This data evidenced the strong development of the northern and eastern suburban areas and the resulting high traffic growth. The data also demonstrated the need for the development of additional road infrastructure.
Methodology of the Traffic Forecast
Demand of Travel The most important element of the analysis is the description in sufficient detail of the existing demand of travel, which is the basis for estimating the future traffic demand over the Concession Period.
In order to take into account the differing traffic conditions that occur at different times of the year, the week and the day in Athens and the impact of congestion at peak hours, the average annual traffic was segmented into 8 different periods. The demand for travel for these periods varies from plus 10% to minus 70% around the average working day conditions, and includes significant asymmetry in traffic direction due to commuter traffic. The Attiki region was split up into 104 traffic zones and the exchanges of trips between those zones were quantified in one Origin/Destination (“O/D”) matrix for each period. The initial O/D matrices were then calibrated for the year 1990, starting from the average daily matrix included in the Government’s studies and fitting it to the actual traffic counts available for each period. Those matrices were then projected for the years 2000, 2005 and 2015 using the changes in demand of travel estimated by the Government’s studies, based on expert forecasts for long term city planning. The final element of the analysis of the demand for travel relates to the type of road user. The overall demand was first split up into different categories of vehicles (private cars, goods vehicles, buses and taxis). The largest one –private cars- was further broken down according to trip purpose (commuting, business, and other purposes). For each of the resulting 6 categories, the traffic analysts estimated the “Time Value”, that is the amount of money that a driver would be prepared to pay in order to save one hour on his trip. Taking into consideration the weight of each category in the overall demand, the average Time Value was estimated and used in the traffic computer model. Present and Future Motorway Network Based on the Government’s study work and site visits, the existing situation of the road network was precisely described in terms of geometric and physical characteristics. From this information, traffic characteristics of road network links were derived (capacity and speed/flow relationship). The anticipated configuration and characteristics of the road network for the year 2000, 2005 and 2015 were also analyzed by including several new roads or extensions/improvements of existing roads which were officially identified. Traffic Assignment The actual assignment of the traffic demand along the various routes available throughout the network was modeled using dedicated traffic software packages. Such software had been used for many years in Europe and the USA to assess the traffic and revenues on toll motorways and include advanced concepts in terms of traffic assignment calculation under toll constraints. Tolling Assumptions The traffic and revenue forecasts are based on the toll system proposed in the preliminary studies of the Project Owner. The toll collection is based on paying a flat toll when entering the motorway. This is implemented through 3 one-direction toll plazas at the extremities of the motorway and toll barriers located on access ramps at each interchange. The toll fare will be generally the same at all toll stations and will only vary according to the category of the vehicle. The traffic estimates have been based on two toll categories private cars (normal fare) and goods vehicles/buses (double fare). Obviously traffic on the motorway is depended on the toll level. Higher toll levels result in less traffic being “captured” by the motorway. Based on this assumption, the actual toll fare structure will have to be finalized in order to optimize the number of toll categories, the toll variation in
off peak periods and possibly, the toll variation at interchanges located near the ends of the Motorway. Traffic and Revenues Estimates Using the methodology and the assumptions outlined above, traffic and revenue estimates were prepared for 3 different time horizons (forecasting years), and the toll levels presented below assuming a full opening of the motorway: 2000 Toll level = GRD 450 (excluding VAT) Number of toll transactions – daily average in Passenger Car Units(PCU’s) Annual Revenues (Billion GRD 94) Annual Average Growth (%) Toll level = GRD 600 (excluding VAT) Number of toll transactions – daily average in Passenger Car Units(PCU’s) Annual Revenues (Billion GRD 94) Annual Average Growth (%) 148,091 32,432 193,475 42,371 5.5 244,927 53,639 2.4 182,977 30,054 299,510 37,697 4.6 282,635 46,423 2.1 2005 2015
In addition to the above, estimates were developed for the phase when the Motorway would be partially open. As seen in the above table, the toll level structure is fundamental in estimating traffic ,and through that, the project’s revenues. Figure 12 presents in a graphical form the variation of traffic and revenue based on different toll levels. Although the 600 GRD toll level is generating higher revenues, the Attiki Odos Bidding Consortium decided to base its financing strategy on the lower toll level structure (that of 450 GRD, excluding VAT) in a bid to offer “social” benefits and to win more evaluation points. The traffic estimates were finalized on the basis of a 450 GRD toll level for all time periods. The toll level factor was proven of paramount importance in the bid winning. Attiki Odos offered 18 years concession period with normal toll fare capped at ECU 1,56 (1994 terms), that is GRD 450 (1994 terms) excluding VAT. The ceiling is indexed contractually according to both Greek inflation and GRD/ECU exchange rate. Revenue estimates in the base case model have only been based on an increase of toll rate with Greek inflation.
The social benefits analysis of the Project has shown a very high social internal rate of return of about 18%. quarterly traffic and revenues estimates were developed for the entire operating period. This mainly relates to timesaving generated for all the vehicles in the Athens road network. the development of competing transportation infrastructure able to reduce traveling on the Motorway is firstly unlikely and secondly is covered by the Concession Contract. Sensitivity of the Revenue Estimates to Key Parameters The key parameters affecting the traffic and revenue estimates are the overall demand for travel. Finally. Variation of Traffic and Revenues According to Toll Level (source: Bastos. it is highly unlikely that there will be no growth at all. the forecasts were based on actual traffic data and the anticipated long-term trends in land development arising from the Athens City plan. The only identified project of this kind is the suburban railway to be constructed within the median of the Motorway. Demand risk sensitivity analysis Traffic lower than expected Base case 10% lower 15% lower 51 . and on the other hand that the progressive built-up of the traffic after each partial opening through the application of a reduction factor to the minimal revenues. 1999) Using the above basic results. taking into consideration on the one hand the actual contractual toll rate of GRD 531 including 18% VAT (obtained by interpolation between the results obtained at GRD 450 and GRD 600).Figure 13. With regard to the demand for travel. Reasonable variations in these factors are not believed to represent a major risk of reduction of the toll revenues generated by the motorway. the time value and the development of competing transportation infrastructure. as a result of the expected relief of the traffic congestion. In such an eventuality the Concession Contract includes compensation for the Concession Company from the Project Owner. Whilst expected development may be slower in the event of difficult economic conditions in Greece.
300 4.249 51% 3% 13% 18% 15% 100% 20% 1% 5% 7% 6% 39% Component total Expropriations.49 1. Independent Engineer & Archaeology Greek State EU Grants Total Total Costs 1. The Parallel and Additional works 3.03 12.32 10.61 - 5.199 95% 5% 100% 34% 2% 36% 100% 52 .12 1. MEPPW 2005b) Sources of Funds € mil.950 Funding sources The following table illustrates the sources of funds for each of the three core cost components: 1.33 9. PWC 2006.99 1.95 10. % of Cost % of costs Lump Sum Object Long term loans (mainly from EIB) Revenues before end of construction Private Equity EU Grants Greek state contribution Total Additional & Parallel works Greek State EU Grants Total 736 37 791 93% 5% 98% 23% 1% 24% 637 37 162 225 187 1. Independent Engineer. Sources of Funds (Interviewee II.100 60 1.160 3.Minimum DSCR (Debt Service Cover Ratio) Return on Enquity (%) Project IRR Drawdown under Standby (million Drahmas) 1. The expropriations.81 1. utilities moving & archaeology costs Table 5. The Lump Sum Object 2. Attiki Odos 2003.
A (EIB 1997).0 5 or 7 12. the Commercial Banks’ Loan and the other sources of funds would not be adequate to cover the entire construction. changed the ERDF budget allocation for the project to € 322 million. Some of the costs initially submitted to the EC were not eligible for co-financing by EU structural funds (MEPPW 2005b). Ports and Urban Development". In December 1996. Loans and guarantees (Interviewee II) Maturity (years) Grace period (years) EIB Loan Facility Guarantee for EIB facility Commercial Banks' Direct Loans Standby Facility 20.0 12.EU Grants and EIB loans: The Initial assistance awarded to the project was € 476 million but the 2004 budget review of the CSF operational programme "Road Axes. 53 . The loan is guaranteed during the operation period by the Greek state. The loan is guaranteed during the construction period by the consortium of commercial Banks and the European Investment Fund. Only a part of this loan was needed for the construction of he project.0 7. During the operation period the EIB loan is guaranteed by the Greek state. a first loan of ECU 145 million was made available to the Greek state in order to contribute to the financing of works carried out by the Ministry on Attiki Odos (EIB 1997).0 7. The parallel and additional works that were not described in the Concession Contract or not imposed by legal decision were excluded from the subsidized budget (MEPPW 2005b). In 18/12/1997 the EIB signed the master facility agreement for a 220 billion Greek Drachmas loan to Attiki Odos S. The stand-by facility of € 85 million was supposed to be activated at the end of the construction period in the case that the EIB loan.0 The repayment period for the EIB loan is 20 years and the credit line is 220 billion Drachmas (€645 million).0 N/A 7. The commercial Banks’ Loan of €140 million has a repayment period of 12 years.
45 Bank of Greece) National Bank of Greece S.496.793.000 17.334.500.198.599.120.06 16.800.A ING BANK N.334.11 7.349.000 4.248.880.38 6.334.000 3.500.000 12. BANK OF SCOTLAND DE NATIONALE INVESTERINGS BANK N.A (former Ergasias Bank) Pireus Bank S.500.V.06 6.000 1.225.000 17.155.000 85.891.A BANCA MONTE DEI PASCHI DI SIENA S.500.54 16.82 12.248.I.000 1.BANKS European Investment Bank Loan Guarantees Commercial Banks’ Loan 29.500.456.234.000 11.p.000 140.891. Eurobank S.38 16.000 1.891.912.82 7.000.13 21. S.679. BANK OF CYPRUS LTD.000 1.891.000 54 .500.000.A.000 11.870.A.000 17.793.875.000 17.V.500.06 6.38 6.000 11.775.66 17.000 2.000.315.36 16.000 Stand-by Facility 8.891.500.793.000 1.877.A BAYERISCHE VEREINSBANK BANK OF TOKYO MITSUBISHI SOCIETE GENERALE European Investment Fund (E.06 16.234.401.38 16.469.686.000 40.650.000 Emporiki Bank S.000.234. DEPFA BANK AG ENTENIAL EXPORT DEVELOPMENT CORPORATION Total 19.375.234.334.28 28.75 26.599.500.639.000 11.000.000 1.675.248.248.F) HSBC BANK Plc ABN AMRO BANK NV Agricultural Bank of Greece S.82 7.599.A. BANCO BPI.A (former Commercial 15. Alpha Bank S.000.599.82 480.334.000.38 7.000.793.
Banks’ Tech. Advisor 55 . Financial and Contractual Structure of Attiki Odos PPP (own elaboration) EU Grant: € 220 m Shareholders Greek State Shareholders Agreement Equity:€ 162 m Guarantee Agreement € 412 m Concession Contract O&M Company Know-How agreement Guarantee Agreement EIB Loan guarantees during operation period TRANSROUTE Intl Tech.Figure 14. Advisor O&M Contract Gidd and SGI Trademco Independent Engineers Commercial Banks’ Loan guarantees during operation period Design & Build Contract Commercial Banks’ Loan: € 140 m Standby Loan:€ 85 m Guarantee Agreement Loan Agreement Construction Joint Venture Loan Agreement Loan:€ 645 m (220 bil. GRD) Loan Agreement EIB guarantees and substitute loan: € 480 m Commercial Banks Funding Key Stages Guarantees to EIB during construction:€ 480m Guarantee Agreement HALCROW.
6) 56 .2023 (or earlier if the concessionaire achieves a ROE of 11.03.Commencement of Concession: 06. vertically aligned text boxes inserted by the author) End of Construction of Attiki Odos concessioned object and full operation: 04.08.2004 Figure 15: Project Schedule & Basic Inflows/Outflows of the Concessionaire (originally in End of Concession: 06.03.2000 Law 2245/1996: addendum 8.
The concessionaire had also the right to apply tolls before the end of the construction period. Real Versus Forecast Traffic (source: Tyrogianni 2007) 57 . Full operation started in August 2004 but crucial parts of the highway were already in operation before. OPERATIONS Traffic Volume The following diagram illustrates the predicted versus the actual daily toll transactions.F. Figure 16.
www. accessed at www. 2002 EC.A.gr Attiki Odos S.. Speech of Dimitrios Koutras. TEN-T priority projects.aodos. Directorate General Transport and Energy. ITS International. Official Journal L 228.1038/1993 of the Supreme Administrative Court [SAC]. Bullock M. Official Website.1035/1993 of the Supreme Administrative Court [SAC]. Transport Policy Implementation and Industry Characteristics.A. Papandreou K. Council of the State. Council of the State.G. TRANS-EUROPEAN TRANSPORT NETWORK. Official Press release.. Greece Decree nr.gr) Bastos P. (2001)b “Inauguration of Attiki Odos”.aodos.aodos. Thibaut M. (2002).aodos. (2001)a.A.. (1999). International Symposium on Freeway and Toll way Operations. Greece Decree nr. Greece Decree nr. 9 September 1998. 1692/96/EC of the European Parliament and of the Council of 23 July 1996 on Community guidelines for the development of the trans-European transport network.1040/1993 of the Supreme Administrative Court [SAC]. 2001b (accessed from www..1675/1999 of the Supreme Administrative Court [SAC]. Risks Associated with BOT Toll Motorways in Greece: THE CASE OF ELEFSINA . (2003). (2005). Council of the State. Athens 4-7 June 2006 Decision No. BIBLIOGRAPHY Allen R. Criteria for comparing projects. 1999 EC. September 1999 Bobolas L. Council of the State. University College London. March . (2006) The challenges of the past and the success of today are leading the way to the future. Council Regulation (EC) No 1260/1999 of 21 June 1999 European Commission. Decree nr. Greece EC. Luxembourg: Office for Official Publications of the European Communities..STAVROS . (1999).. Organized by: Transport Research Board.A.gr) Attiki Odos S.April 2007 Attiki Odos S. Official press release on 16/1/2003. Official Press release record. 2001a (accessed from www. Drive to succeed. (2007). . Deliverable 6 of the project: Transport Institutions in the Policy Process (TIPP) 58 .gr Attiki Odos S. Bartlett Graduate School MSc Thesis.SPATA AIRPORT MOTORWAY.
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the EIB and the Public Sector. 27 April 2004 People interviewed and their relevant role: I Mr. Data from related banking documents which can not be referenced in this 62 .. (2003).. Engineering School. Athens metropolitan area and Attica Region transport network. Saratsis G. (2008). Final Revised Version... Emmanuel Zozonakis Manager in Project Finance Division of Emporiki Bank. January 2006 Trova H. Conference: New Horizons in Project Management..A. Sakkoulas Publishers.gr Pasgianos G. Koutras D. May A.. negotiations with the state and construction. Athens/Volos. presentation for the OMEGA Centre Workshop.Official web site for the Operational Programme "Road Axes. 2004 Surveys of Transport Institutional Systems in Europe. Technical Chamber of Greece – Department of Eastern Macedonia and Thrace. Infrastructure and Government . 16-17 May 2003 PWC. 5th Framework Programme – DGTREN. Aristoteleion University of Thessaloniki.Hybrid PPPs: Levering EU funds and private capital. Zekkos K.epoalaa. Tegner H.The role of technical consultant in infrastructure investments. (2006).. (2007). Athens Tyrogianni H. 5th . Construction of the Single European Space and Concession of Public Works: a study on the dialectics of poles of powers..9th May 2008 Zografos K. presented at IBTTA (International Bridge. Kallioinen. Ports and Urban Development" (OP-RAPUD) of the General Secretariat for Public Works of the Hellenic Ministry for the Environment. Physical Planning and Public Works. Stelios Markianos Deputy CFO of AKTOR Group (the leader company of the concessionaire) during bidding.. (2001). current development plan and review of previous critical milestones and evolution steps. II Mr. Report prepared by PricewaterhouseCoopers LLP for the World Bank. Tunnel and Turnpike Association) 75th Annual Meeting & Exhibition 7-10 October 2007. Vienna. Marsden G.. Report for the European Commission. account manager of Attiki Odos financing and key participant in the lending negotiations with Attiki Odos S. PPPs Anticipation and Reality Generates Innovation in Financing: The Case of the Attica Tollway..Tyrogianni E.. www.
IV Mr. George Kotsoridis Head of the ETEBA team (National Investment Bank for Industrial Development) which was the financial advisor of the Greek government during the period from concession award to the financial close of the Attiki Odos project. 63 . Paraskevi (one of the areas heavily affected by Attiki Odos). legal consultant and former chairman of Elliniki Etairia (one of the most active Greek NGOs concerning environment and heritage) V Mr. Vassilis Dorovinis Lawyer of the Municipality of Ag. George Tsolakis General Secretariat of the Association of Greek Environmental Scientists and Engineers.report were also gathered at the interview. III Mr.