GEK TERNA SA announces that it has signed today, as an original shareholder and member of the company “NEA EGNATIA ODOS CONCESSION STATE COMPANY”, the concession agreement regarding the right to finance, operate, maintain and exploit the Egnatia Odos highway, as well as the three (3) perpendicular to it road axes, for a period of 35 years, with the Greek State and the State Private Property Development Fund (TAIPED S.A.) as counterparties.
The company with the name “NEA EGNATIA ROAD CONCESSION COMPANY” (the Concessionaire), which was established for the purposes of the concession agreement between GEK TERNA S.A. (75%) and EGIS PROJECTS SAS (25%), through the contract undertakes:
A. the right to finance, operate, maintain and exploit:
- of the Egnatia Odos motorway, which is part of the Trans-European “core road network” has already been constructed and is in operation, 658 kilometers long, extending from Igoumenitsa to the Regional Unit of Thesprotia (northwest coast of of Greece) up to the Gardens in the Evros Regional Unit (at the border station with Turkey), in respect of which the Concessionaire additionally undertakes the obligation of Consolidation.
- of the Siatista-Ieropigi/Krystallopigi road axis leading to Albania, which is part of the Trans-European “Comprehensive Road Network” and has eight (8) uneven junctions, beyond the junction with Egnatia Odos , connects Albania with mainland Greece and the metropolitan area of Athens through the Central Greece highway (E65 – currently under construction), has a total length of 69.3 kilometers and technical characteristics similar to those of the Egnatia Odos highway.
- of the 60-kilometer Chalastra-Evzonei road axis, which is part of the Trans-European “core road network”, with three (3) uneven junctions, beyond the junction with Egnatia Odos, which connects Greece with P.G.D.M. at the Evzonon border station, in relation to which, among other things, the Concessionaire additionally undertakes the obligation to Upgrade Vertical Axles.
- of the road axis Thessaloniki – Serres – Promachona, 95.5 kilometers long, which is part of the Trans-European “core road network”, with seventeen (17) uneven junctions, beyond the junction with Egnatia Road, connects, via Egnatia Odos and the P.A.T.E. highway. western Bulgaria with mainland Greece, including the metropolitan area of Athens and has been constructed, with specifications similar to those of the Egnatia Road (with the exception of the Christos-Ambela road section, 10.176 kilometers long, in relation to which the Concessionaire additionally undertakes Vertical Axis Upgrade).
- of these adjacent lands, together with all property rights, material and immaterial, related to the Egnatia Odos highway and the above three vertical road axes,
B. the right of the Greek State to study, finance and execute in accordance with the conditions defined in the Service Concession Agreement and within the time frame defined therein, the project of upgrading to highway specifications on the one hand of the Chalastra – Polykastro section of the vertical axis Chalastra – Evzoni and on the other side of the Christos – K. Ampela section of the vertical axis Thessaloniki – Serres – Promachona, with a total length of approximately 54 km, as described in the Service Concession Agreement.
The next steps of the process include the ratification of the Concession Agreement by the Parliament, the financial closing of the transaction with the payment of the price, and after the fulfillment of all contractual delivery-receipt conditions, the start of the concession within 2024.
The signing of the Egnatia Road concession agreement marks an extremely positive and multi-important development, with numerous benefits for the Group and its shareholders. It enhances the size and value of GEK TERNA’s concession portfolio as well as the generation of significant, stable and predictable cash flows on a long-term basis, allowing for its optimal utilization within the Group’s strategy.
It is recalled that GEK TERNA Group is the largest investor in concession and PPP projects, managing more than 1,600 km of key highways (with the addition of Egnatia Road and Attica Road) and emblematic projects corresponding to billions of euro investments, such as the new Heraklion International Airport of Crete, the Integrated Tourist Complex in Elliniko, the road section Hersonissos – Neapolis of the Northern Road Axis of Crete (BOAK), the Integrated Waste Management in the Regions of Epirus and Peloponnese, etc.
Referring to the signing of the Concession Agreement, the President and CEO of GEK TERNA Group Mr. Giorgos Peristeris stated:The predominance of GEK TERNA in such an emblematic international competition demonstrates the consistency with which we have been implementing our business strategy for years, contributing not only to the development of our Group, but to the overall prosperity of Greece. By making private investments with multiplier value for the domestic economy instead of simply taking on public projects, GEK TERNA, through serious and competitive offers that ensure both the interests of the company’s shareholders, as well as particularly satisfactory conditions for the Greek State, contributes over 6 billion euros to the public coffers today (Integrated Tourist Complex in Hellinikon, Heraklion International Airport of Crete, Egnatia Odos, Attiki Odos etc.), implementing an investment plan of more than 10 billion euros that will create 20,000 new jobs».
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