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1.
2.
3.
4.
Introduction..................................................................................................... 3
1.1
Project summary....................................................................................... 3
1.2
History....................................................................................................... 3
Asset Characteristics....................................................................................... 3
2.1
Added benefits.......................................................................................... 4
2.2
2.3
Risks.......................................................................................................... 4
Feasibility aspects........................................................................................... 4
3.1
Market feasibility....................................................................................... 4
3.2
Technical aspects...................................................................................... 4
3.3
Management............................................................................................. 5
Exhibit................................................................................................................... 7
Project timeline...................................................................................................... 8
References............................................................................................................. 9
1. Introduction
Athens Ring Road Project was a Ring road(Beltway) type project in the country of
Greece. It was one of the largest infrastructure construction project in the
country. The total financing of the project amounted to 1.73 billion Euros which
could not be financed from a single source and was sourced through methods.
The project required a long time to arrange the finances due to the legal and the
financial structures which were new to Greece.
1.2 History
In may 1996 the Ministry of environment, Physical Planning and Public works
awarded a concession to design, build, operate and maintain the road to Attiki
Odos, a consortium of 11 leading Greek construction companies. Because of
EIBs desire that a strong, internationally recognised motorway operator be
committed to the project throughout the life of the concession. Egis projects
became a 49 percent shareholder. Egis projects is a subsidiary of Groupe Egis,
formerly Transroute, One of Europes leading motorway operators.
The concession contract was ratified by the Greek legislature and carries the
force of Greek Law. EIB signed its loan agreement with the concessionaire in
December 1997, but the agreement was subject to the various conditions
precedent, including finalising the guarantee structure with the bank syndicate
and the Greek government. The financial closing, covering all the financing and
project contracts, was not achieved until March 2000, after three years of
negotiation.
2. Asset Characteristics
The ring road is intended to reduce traffic congestion and to connect the city to
its new airport at Spata, 50 km to West. It is being developed in six sections, to
be completed and opened over two years, and will have a capacity of 20,7000
vehicles per day. It is one of the largest infrastructure project in Greece.
2.1
Added benefits
The ring road will also connect to many of the facilities that were being
developed for the summer Olympic games to be held in Athens in 2004.
2.3 Risks
3. Feasibility aspects
3.1 Market feasibility
The purpose of this project was to develop the inner ring and integrate a full road
network for fast and safe transport in the entire Attika region.
The Attica Tollway was designed to:
Thus, the main market of this project would be all the users, private
vehicles(passenger cars) and freight traffic. The location of this project combines
large open spaces and quick access to ports, railway and provides links to the
Athens International Airport and to the two main National Roads. The toll road
will be connecting the 30 municipalities of the Attica basin, allowing quicker
access to areas, which, before its construction, required a great amount of travel
time. Thus the connectivity of this project site would attract many users in the
future as there were no other similar projects planned in the future. The
3.3 Management
Since, this project was a humongous task for any individual party in Greece to
take on and complete by themselves. The financial ability, technical capabilities
and risk mitigation could only be provided by consolidation of all the major
construction parties in Greece along with active involvement (concessions) of the
government. Thus, AttikiOdos S.A was formed as a joint venture of almost all
large Greek construction companies [AKTOR, AVAX, ALTE, ATTI-KAT, HELLENIC
TECHNODOMIKI, ETETH, SARANTOPOULOS, PANTECHNIKI, TEV, TEG, EGIS
PROJECTS.]. ATTIKI ODOS S.A. is the SPV, the consortium Attikiodos is the
construction consortium and AttikesDiadromes S.A. is the operator. All companies
were involved in all three formulations with slightly varying shares. The
Concession Company's shareholders' structure consists of: - AKTOR
CONCESSIONS S.A. (member ELLAKTOR S.A. Group) 59.25%, - J.&P. AVAX S.A.
21.00%, - ETETH S.A. (member J.&P. AVAX S.A.Group) 9.82%, - PIREAUS -ATE
BANK S.A. 9.88% and - Transroute International. 0.04%.
several factors (e.g. this was the first PPP in the road sector in Greece,
construction difficulties were envisaged, and help was needed in dealing with 30
local authorities), the project required strong state help. This financial help was
necessary because, at that time, sponsors considered that the road traffic levels
and the tolls the users were prepared to pay were not enough to provide an
adequate return on the investment they were required to make. Therefore the
project had to be developed as a PPP so as to :
These funds were required for 3 major cost components. These include
Exhibit
millio
Sources of Funds
n
% component
Lump Sum Object
Long term loans (mainly from
EIB)
637
51%
Revenues before end of
construction
37
3%
Private Equity
162
13%
EU Grants
225
18%
Greek state contribution
187
15%
Total
1,249
100%
Additional & Parallel works
Greek State
736
95%
EU Grants
37
5%
Total
773
100%
Expropriations, Independent Engineer &
Archaeology
Greek State
1,100
95%
EU Grants
60
5%
Total
1,160
100%
Total Costs
3,199
% of total
20%
1%
5%
7%
6%
39%
23%
1%
24%
34%
2%
36%
100%
Project timeline
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References