We are not currently considering third party entry

The delays observed in the payments of the State in public constructions is one of the critical issues for the technical companies sector, commented o George Peristeris. The president and CEO of the group GEK TERNAspeaking yesterday on the sidelines of the inauguration of two sections of the E65 road axis, meaningfully stated that the payments are “years late, not months”.

In some cases, in fact, payment delays exceed one year, while serious issues also exist with delays in completing expropriations. Mr. Peristeris noted that the subsidiary TERNA is “putting its back” in order to deal with the issues with the expropriations and not to delay the projects. In particular, the company is the one that proceeds to lease land in the areas where it constructs sections of road axes, such as the E65, in order to speed up the completion of the works and not find the projects out of schedule. The total overdue debts of the State to GEK TERNA approach 400 million euros.

The president and managing director of the group avoided on Tuesday to comment on the information about the impending sale agreement of the subsidiary TERNA Energy. He emphasized, however, that the financial results will be excellent. Asked to comment on the delivery time of the Attica Road from the current concessionaire to the GEK TERNA group, which won the TAIPED tender for the new concession contract, he emphasized that the delivery time depends on the readiness of the Greek State to deliver it, with the company to be ready to receive it.

Regarding the Northern Road Axis of Crete (BOAK), and specifically the central section (Kissamos – Chania – Heraklion), where the GEK TERNA group has also prevailed, he emphasized that there are many appeals for the route from private individuals and local bodies and for this reason why it is difficult to determine the time of signing the concession contract. The settlement of appeals will also determine the time of expansion of the share structure, as it appears.

From yesterday’s statements by Mr. Peristeris, it appears that the Ministry of Infrastructure and the government in general are looking for mechanisms so that funds from the Recovery Fund are not lost due to delays in certain projects. It is known that Greece has already requested an extension of the Recovery Fund beyond 2025, but for now there is no agreement at the level of the European Union.

The head of the GEK TERNA group was also asked about the possibility of new investors entering the new concession contracts he undertakes, such as Attiki Odos and BOAK. Especially for Attiki Odos, he emphasized that there are proposals, but so far the group is not considering the entry of third-party investors. He clarified, however, that GEK TERNA has the possibility to request a change in the share structure, a matter that will be examined by the TAIPED. The listed company had offered the highest price (3.27 billion euros) for the Attica Road concession contract for the next 25 years. As for the expansions of the road axis, for which a model proposal has been submitted by a scheme led by GEK TERNA, Mr. Peristeris reminded that the specific plan has not even been evaluated.

In the Ministry of Infrastructure, they have been arguing for months that they are preparing legislation for change within the framework of the standard proposals. The head of the GEK TERNA group wondered, in fact, why there is no interest from those involved in the upgrading of Vouliagmeni Avenue and the Iliopoleos tunnel, when everyone is warning about the traffic confusion that will be created with the development of Hellinikon.

Mr. Peristeris also answered a question about the withdrawal of the German Hochtief from the share scheme of Olympia Odos, which manages the road axis Elefsina – Corinth – Patras – Pyrgos. As he said, GEK TERNA (owns 17% of Olympia Road) is not interested in buying the Germans’ share, which will eventually be distributed among the remaining shareholders, namely the French Vinci, AKTOR Concessions and AVAX.