The Hellenic Republic Asset Development Fund (HRADF), a member company of GROWTHFUND – The National Fund of Greece, announces the singing of the concession agreement for the financing, operation, maintenance and exploitation of Attica Motorway for a period of 25 years, between the Greek State, the Fund, the concession company NEA ATTIKI ODOS S.A. and GEK TERNA S.A., which in September 2023 in the tender carried out by HRADF was declared Preferred Investor with an offer of 3,27 billion euros.
The signing ceremony was attended, among others, by the Minister of Economy and Finance, Kostis Hatzidakis, the Minister of Infrastructure and Transport, Christos Staikouras, the Deputy Minister of Infrastructure and Transport, Nikos Tachiaos, the CEO of HRADF, Dimitris Politis, the CEO of GROWTHFUND – The National Fund of Greece, Grigoris D. Dimitriadis, the President and CEO of GEK TERNA Group S.A., Georgios Peristeris and the Chairman of NEA ATTIKI ODOS S.A., Emmanuel Moustakas.
With the completion of the tender and the signing of the Concession Agreement, the handover of the motorway to the new concessionaire is on track. As part of the agreement, the Concessionaire, in addition to the one-off fee of 3,27 billion euros, will annually pay to the Greek State 7.5% of all gross revenues from the operation of the motorway, while additional upgrading and modernization investments and expenditures amounting to 380 million euros for the entire duration of the concession are foreseen. The new concession agreement provides for the reduction of the toll rates for category 2 vehicles to 2.50 euros per pass from the present toll of 2.80 euros from thw 6th of October.
Attica Motorway is a modern motorway with a total length of 70 km, constructed with a concession agreement during the 1990s. It constitutes the ring road of the greater Athens metropolitan area and the backbone of the road network of the whole Attica region. The urban motorway has two separate directional carriageways, each consisting of 3 lanes and an emergency lane (hard shoulder). In addition, the suburban railway of Athens has been constructed and operates in the median strip of Attica Motorway.
The Minister of Finance, Kostis Hatzidakis, stated: “The agreement signed today is particularly important for three reasons. Firstly, the State is putting a very large sum in its coffers, almost 3.3 billion euros, which is the highest fee for a single project in HRADF’s history. Second, with this amount we can reduce national debt by almost 1.5 percentage points of GDP from this transaction alone. And thirdly, the contract provides for the reduction of tolls which will benefit millions of residents of the capital who use Attica Motorway on a daily basis. The agreement has an additional special feature as it is the first concession in our country to be renewed. I would like to congratulate all those involved in this project and stress that the government will continue on the path of developing public property to ensure improvement of services, reduction of costs and increase of revenues.
The Minister of Infrastructure and Transport, Christos Staikouras, said: “The signing of the concession agreement for the financing, operation, maintenance and exploitation of the Attica Motorway confirms that the cooperation between the public and private sectors can be transparent and efficient for both sides. It can be beneficial to both parties, by serving the public interest through the financing, operation and maintenance of the motorway, while turning a reasonable profit for the concessionaire through the operation of the motorway. The Ministry of Infrastructure and Transport will make every effort to protect public infrastructure and safeguard the smooth and efficient operation of the network of motorways, setting the safety of users as our top priority”.
The Deputy Minister of Infrastructure and Transport, responsible for Infrastructure, Nikos Tachiaos, mentioned the following at the signing of the concession agreement: “Today’s signing represents a milestone in the history of major motorway concessions, in which our country has vast experience. Attica Motorway, an exemplary project for its time, marks the success of the participation of the private sector in the implementation of significant public investments. The motorway’s construction and operation has contributed decisively to the improvement of the daily life of the inhabitants in the region of Attica. GEK TERNA S.A., which through NEA ATTIKI ODOS CONCESSION S.A., succeeds the previous scheme, has, without doubt, the know-how and ability to maintain Attica Motorway at the high levels of operation demanded by citizens. Moreover, given that we are in the penultimate act of this very difficult project that HRADF is carrying out with great diligence, I believe that GEK TERNA S.A. will meet the goal and complete the financial closing before the end of the year. On October 5, the Ministry of Infrastructure and Transport, will be fully ready to initiate the procedures for the handover of the motorway to the new concessionaire“.
The CEO of HRADF, Dimitris Politis, stated: “Today marks the beginning of a new chapter in the history of Attica motorway which is an integral part of the daily life for thousands of people. The Hellenic Republic Asset Development Fund (HRADF), in collaboration with all the involved parties, has swiftly and transparently completed a complex project. This is an unprecedented project as for the first time in the history of the Greek State we had to deal with the expiry of a concession and safeguard the transition to a new concession agreement. The Fund will collect, on behalf of the Greek State, the highest amount for a single project in its history, contributing decisively to the reduction of the country’s debt. With this project, we ensure that the most important highway in Attica will continue to operate setting high standards, with safety and reliability, given that the new concessionaire has extensive experience and proven capability in operating major motorways”.
The CEO of GROWTHFUND – The National Fund of Greece, Grigoris D. Dimitriadis, stressed at the signing of the concession agreement: “Today’s agreement certifies that we have entered a new era in the way in which the State, Growthfund and HRADF can achieve ever greater revenues from the development of public property, while producing greater benefit for citizens. Securing the highest concession fee in HRADF’s history, while reducing toll prices at the largest, most modern and safe motorway in Attica, with the highest level of services, represents our vision for achieving the greatest possible value for the State and the citizens”.
Referring to the signing of the Concession Agreement, the Chairman and CEO of GEK TERNA Group, Giorgos Peristeris, stated: “The inclusion of Attica Motorway in GEK TERNA Group’s concession portfolio is part of a comprehensive plan that we have been carefully and prudently implementing for years. We are making private investments with multiplier value for the domestic economy, contributing to job creation, and providing significant capital to the public funds. Attica Motorway, with its unique characteristics, is a project that inevitably stands out among other road concessions in the country. Due to its location in Attica, it both influences and is influenced by the overall traffic reality of the capital. Therefore, Attica Motorway should not be viewed as an “island”, but rather as a critical component of a broader traffic network that needs to be developed and expanded further to make the mobility of citizens and visitors to Athens efficient, improving the man-made and natural environment and the daily lives of millions of people”.
Focusing on the significance of securing Attica Motorway concession for GEK TERNA, the Chairman of the concessionaire company NEA ATTIKI ODOS SINGLE MEMBER S.A. and General Manager of Development for GEK TERNA Group, Emmanouil Moustakas, highlighted during the signing of the agreement: “For GEK TERNA, this is a project that complements the Group’s motorway network in Greece, offering significant benefits in terms of revenues, EBITDA, and dividend returns, with a profile of significantly lower risk. The project’s performance is expected to fall within the yield range that GEK TERNA traditionally targets and achieves in similar projects, adding further value to the company and significant benefits to its shareholders”.
