![Attiki Odos: The new concession for Athens’ main throroughfare](https://www.ot.gr/wp-content/uploads/2021/11/attiki-768x472-1.png)
With the first half of 2023 as a milestone for the submission of binding offers, the Hellenic Republic Asset Development Fund – HRADF is proceeding with the new concession of the Attica Road. Yesterday’s announcement of Intrakat’s 30% stake in the BRISA – AUTO ESTRADAS de PORTUGAL – RUBICONE BIDCO scheme that is vying for the axis further strengthens the investment map for one of the most valuable assets of the privatization programme.
HRADF’s big bet is to complete the delivery of the infrastructure in October 2024, i.e. with the completion of the existing highway concession contract. As the Fund’s sources comment, this will strengthen its credibility towards prospective investors and deter the scenario of extending the existing contract.
Certainly in view of the following election year, all sides are aware that there may be delays in the progress of the procedures, while the schedule will also be affected by the number of comments submitted by the participants. However, the structure of the competition is such as to avoid arrhythmias. Contributing to this was the choice not to enter the tender for heavy construction, which by experience would have fueled oldd rivalries, hampering the process.
The difference of opinion on tolls
The posting on the competition’s Virtual Data Room of the draft of the 700 page concession agreement revealed the amount of tolls of the new concession. Essentially, the estimated toll revenue is a determining factor for the bids submitted by interested investors.
Setting the fee at €2.50 per crossing, compared to the current €2.80, ended a debate over the introduction of tiered tolls. This was a proposal presented by the management of HRADF in the summer, a higher charge for peak hours and a lower one for the rest of the hours are preferred. The main argument was to decongest the axis during peak hours, when there is already an increased load, thus making off-peak times more attractive.
It is noted that the outlook for traffic in Attica and the greater Athens metropolitan areain the coming years is not optimistic. As traffic has increased not only on major thoroughfares, but even in neighborhoods, and rush hours have been extended, the problem is expected to intensify. Attiki Odos is not expected to be an exception. Of course, important projects are expected that will contribute to alleviating the problem, such as the new Line 4 of the metro and the extensions of Attica Road, but these are a permanent, but long-term solution.
The disagreement of the Ministry of Infrastructure and Transport with the proposal of graduated tolls was made clear by the statement of the Minister Mr. Kostas Karamanlis, last week. After confirming that the new tolls will be set at 2.50 euros, he emphasized that “the Government’s decision to reduce the Attica Road tolls in the new contract is not only part of the broader effort to address the cost of living, but also closes a cycle of opinions about graduated tolls, without a transport study”.
What will determine pricing?
The conundrum concerning tolls has been solved for those directly concerned, but the reduction of the fee inevitably raises questions about the level of the bids that will be submitted. Since toll collections are the main and dominant revenue for the concession, the new pricing policy will be a determining factor in the amount of bids.
And the authorities may be reassuring, arguing that the reduction in the price of tolls is not expected to affect the price, but everything will have to be assessed in the light of the new macroeconomic environment. High inflation and rising interest rates are putting pressure on investment decisions internationally. Uncertainty is not a conducive environment for investment.
Of course, Attiki Odos remains the most profitable freeway in the country. It is by all accounts a success story. In fact, traffic during the first half of the year almost returned to pre-pandemic levels. Daily vehicle crossings are estimated at 230,000, very close to 2019 levels and up from 210,000 in 2021. However, it remains to be seen whether this will keep candidates’ expectations of future performance high.
However, more than a few argue that the forecasts for a price that will reach or even exceed 2.5 billion euros, will have to drop lower.
Strong interest
It is recalled that eight schemes have expressed interest in the 25-year concession of the axis. Concession and fund management companies from Italy, France, Spain, Portugal, the Netherlands and Australia, along with the large Greek groups. The initial absence from the equation of Intrakat was, as expected, “corrected” in the second phase, as was also foretold.
The company’s participation with 30% in the existing scheme BRISA – AUTO ESTRADAS de PORTUGAL – RUBICONE BIDCO was announced yesterday during the General Assembly by the vice president and managing director of Intrakat, Mr. Alexandros Exarchou.
The remaining seven schemes are as follows: ABERTIS INFRAESTRUCTURAS, GRUPPO FININC – INC SpA, GEK TERNA – FS ARK HOLDCO, VINCI HIGHWAYS – VINCI CONCESSIONS – MYTILINEOS – MOBILITY PARTNER, AKTOR CONCESSIONS – AVAX – ADRIAN INFRASTRUCTURE, MACQUARIE ASSET MANAGEMENT MOTORWAY HOLDINGS – FINCOP INFRASTRUCTURE and VAUBAN – DIF – EGIS.
![ot.gr](/wp-content/themes/whsk_otgr/common/imgs/fav.ico/favicon-32x32.png)
![ot.gr](/wp-content/themes/whsk_otgr/common/imgs/fav.ico/favicon-32x32.png)
Latest News
![Gov’t Eyes Return of Power Subsidies Amid Spike in Rates](https://www.ot.gr/wp-content/uploads/2024/07/power-lines-2048x1365-1-600x400.jpg)
Gov’t Eyes Return of Power Subsidies Amid Spike in Rates
According to reports, the government will resume an electricity subsidization program, given that forecasts cite disruptions – i.e. higher rates
![ELSTAT: 6.3% Increase in Output Price Index for Agriculture and Livestock](https://www.ot.gr/wp-content/uploads/2024/07/ot_georg_PROIONTA_money-1-600x352.png)
ELSTAT: 6.3% Increase in Output Price Index for Agriculture and Livestock
The 6.3% rise in May 2024 is largely driven by an 8.8% increase in the crop output group, particularly due to changes in olive oil prices, and a 0.5% increase in the animal output group.
![Balkans Blackout Highlights Climate Threats to Power Grids](https://www.ot.gr/wp-content/uploads/2024/07/blackout-1-600x457.png)
Balkans Blackout Highlights Climate Threats to Power Grids
The surge in electricity demand during the heat wave and the power deficit in Balkan markets have driven up prices in the Greek wholesale electricity market.
![Greece in Top 4 Destinations Favored by European Tourists](https://www.ot.gr/wp-content/uploads/2021/06/ploio-600x400.jpg)
Greece in Top 4 Destinations Favored by European Tourists
Greece was selected by 5.9% of respondents who were asked where they would vacation this year, up from 5.4% in the same survey last year
![Scope Affirms Greece’s BBB- Ratings; Revises Outlook to Positive](https://www.ot.gr/wp-content/uploads/2024/06/euros-2048x1365-1-600x400.jpg)
Scope Affirms Greece’s BBB- Ratings; Revises Outlook to Positive
The international ratings firm raised Greece to investment grade in early August 2023
![First Seaplane Test Flights to Skopelos, Alonissos, Skyros](https://www.ot.gr/wp-content/uploads/2024/06/hellenic-seaplanes-pilotikes-ptiseis-ydatino-pedio-lavriou-600x450.jpeg)
First Seaplane Test Flights to Skopelos, Alonissos, Skyros
After decades of on-again, off-again efforts to schedule regular seaplane routes to Greece's numerous island and coastal destinations the prospect now appears within sight
![ELSTAT- Overall Import Price Index for May 2024 up 2.8% y-o-y](https://www.ot.gr/wp-content/uploads/2023/08/unnamed-41.jpg)
ELSTAT- Overall Import Price Index for May 2024 up 2.8% y-o-y
The same price index had decreased 20.8% from May 2022 to May 2023
![Over 7 in 10 Employees Feel Their Contributions Are Not Appreciated](https://www.ot.gr/wp-content/uploads/2024/06/ergasia-ergazomenos-600x300.jpg)
Over 7 in 10 Employees Feel Their Contributions Are Not Appreciated
Specifically, the option "Subjective opinions are prioritized over objective data" ranked highest in importance for young employees, with a score of 3.89 out of 4
![OECD: Job Vacancies on the Rise in Greece](https://www.ot.gr/wp-content/uploads/2024/07/ergasiabusinness-768x556-1-1-600x434.jpeg)
OECD: Job Vacancies on the Rise in Greece
By the fourth quarter of 2023, job vacancies per unemployed person had risen by more than 4, with the index reaching 446 units compared to 100 units in late 2019
![OTE Group: FTTH Program Advancing in Semi-Urban and Rural Areas of Greece](https://www.ot.gr/wp-content/uploads/2024/05/ΟΤΕ-Group_1-600x450.jpg)
OTE Group: FTTH Program Advancing in Semi-Urban and Rural Areas of Greece
This initiative will provide ultra-fast internet speeds of up to 1Gbps to over 350,000 households and businesses in semi-urban and rural areas across the country