Tender for another major road-related project has officially started. It concerns the uprading of Kalamata-Pylos-Methoni road axis and the relevant project will be developed as PPP. Implementing entity of the project is the Ministry of Infrastructure and Transport.
The estimated cost of the project is 312.23m euros (incl. VAT, VAT excl.:251.8m euros). The tender will proceed according to the provisions of L.4412/2016. The contract awarding procedure comprises 2 phases:
Phase A: Expression of interest and
Phase B (including 2 stages):
- Competitive dialogue and
- Binding offers
The project is expected to attract the interest of all major technical companies of the country. The deadline for the expression of interest is set for the 19th of June 2019.
The duration of the PPP contract will be 360 months (i.e. 30 years) while there is no provision for funding from the European Union. The repayment of the project will be made through availability payments or other installments during the operation period.
Under the partnership agreement, the private partner is expected to undertake the following:
a) The preparation of all the studies required for the construction of the projec (on the basis of the studies provided by the contracting authority, the final design of the project, environmental permits, etc.),
b) Execution of the entirety of the required construction works,
c) Financing the project,
d) Maintenance and operation of the road section "Kalamata - Rizomilos - Pylos - Methoni", as provided for in the final design, for the duration of the PPP,
e) Return of the project to the Greek State, at the end of the contract period.
Another PPP road project
The implementation of the project has been a surprise, as it was not prioritized in the Ministry's agenda until last year. It noted that it will be the second PPP project road project after the VOAK Motorway's "Hersonissos-Neapolis" section, in Crete island.
What could be deduced is that the solution of PPPs has expanded to road projects giving alternatives to the lack of EU funding for the realization of new projects. It is yet another another prioject that has been made possible with the collaboration of the Special Secretariat for PPPs, which provided all the necessary solutions, enabling this project to reachits tendering stage.
The new road axis between Kalamata-Pylos-Methoni will essentially be a branch of the existing Moreas Motorway, significantly reducing distances while it is estimated that safety will be upgraded substantially on a road that is currently considered to be dangerous.