Greece: a new dynamic PPP market

Despina Tomadaki
Head of Financial Services
Special Secretariat for Public Private
Partnerships
Ministry of Economy and Finance
Greece
 4 years before …

3 major transport concession projects in

operation

Rio – Antirrio Bridge Attiki Odos Motorway Athens International Airport

0.74 bl Euros 1.24 bl Euros 2.22 bl Euros
 Common characteristics

Procured and monitored by the Ministry of

Public Works
All co-financed by EU funds
The contracts had to be ratified in Parliament
as distinct laws
Free standing projects
 The need for a new legal framework
for PPPs

Need for a legal framework that would enable

the wider implementation of PPPs
Overcome the legal gap that led each co-
financed project to the Parliament for
ratification
Overcome obstacles that delayed the
implementation of projects
Framework for the implementation of
projects that are not jurisdiction of the
Ministry of Public Works and are not repaid
by the end-users
 New legal framework – PPP Law
3389/2005

Result of extensive consultation

“Umbrella” framework
Incentives for the private sector
Establishment of Inter-Ministerial PPP
Committee
Establishment of a PPP unit within the
Ministry of Economy and Finance
Clear approval and tendering process for
PPP projects
 Currently…

Major transport concession projects fall

within the jurisdiction of the Ministry of
Public Works
All other PPP projects are procured by
other Public Sector Contracting Authorities,
controlled by the Ministry of Economy and
Finance (Law 3389/2005) and fall into all
other sectors
New transport concession projects
 New transport concession projects

The “Ionian Motorway”

Design, Build, Finance, Operation and Maintenance
of the Motorway from Antirrion to Ioannina (160 km)
and part of the PATHE Motorway from Varybobi to
Skarfeia (180 km)

The Motorway of Central Greece (“E65”

axis)
Design, Build, Finance, Operation and Maintenance
of the Motorway from Skarfeia to Panagia (170 km)
and Operation and Maintenance of a part of the
PATHE Motorway from Skarfeia to Raches (60 km)
 New transport concession projects

The section “Maliakos to Kleidi” of the

PATHE Motorway
Design, Build, Finance, Operation and Maintenance
of the Pathe Motorway from Tempi to Skotina (20
km) and Operation and Maintenance of a part of the
PATHE Motorway from Raches to Kledi (200 km)

The Motorway “Korinth – Tripolis –

Kalamata” and the branch “ Lefktro –
Sparta”
Design, Build, Finance, Operation and Maintenance
of the Motorway Korinth – Tripolis – Kalamata” and
the branch “ Lefktro – Sparta” (205 km)
 New transport concession projects

The Motorway “Elefsis – Korinth – Patras –

Pyrgos – Tsakona”
Design, Build, Finance, Operation and Maintenance
of the Motorway Elefsina - Korinth – Patra – Pyrgos -
Tsakona” (365 km)

The Thessaloniki Underwater Artery

Design, Build, Finance, Operation and Maintenance
of The Thessaloniki Underwater Artery (4 km)
 New transport concession projects

All these projects (with the exception of the

Salonica underwater tunnel) have been
tendered by the Ministry of Public Works
and are now under construction
The Ministry of Public Works has just
tendered two new concession projects:
The new urban motorways in Attica
The new airport of Heraklion in Crete
PPP projects under the new PPP Law

Law 3389/2005
 The new PPP Law - a major reform is
now in place in Greece

The Greek Government has proven to be

very consistent
52 PPP projects on track
5.7 bn Euros worth of opportunities
The first PPP contract was signed
Two more to reach financial close by the end of the
year
In process 14 tenders amounts to 1.5 bn
Euros
A new market with high potential was
created
 Actions

Clear legal framework

PPP Unit
Plan of action & prioritization
Integration of PPPs in government policies
Taking care of the funding issue
Briefing the market & educating the public
sector
Pipeline of projects
Smooth and transparent tender process
www.ppp.mnec.gr/en
 Pipeline of projects

1,8

1,6 22

1,4

1,2

0,8

0,6 8

0,4
5
4
0,2 3 3
2 2 2
1
0
Public Sector Education Health Justice Tourism and Ports Environment Defense TransportationMunicipal PPP
Accommodation sports infrastructure projects
 Common characteristics of projects

Public service PPPs

Evaluated by the PPP Unit
Approved by the IM PPP Committee
Contracting authorities: public sector
authorities that have the responsibility to
tender them
Monitored by the PPP Unit
Restricted procedure
I. Public Sector
Accommodation
22 projects (Fire stations, police stations,
buildings for Prefectures, etc)
Of a total value of 1.687 bn Euros
First contract signed and set in force in April
Two more projects to reach financial close
by the end of the year
5 more projects under tender
II. Education

8 projects (schools, university buildings,

residences)
Of a total value of 800 M Euros
4 tenders already launched
III. Justice

2 projects (prisons and courts of justice)

Of a total value of 360 M Euros
2 tenders already launched
IV. Health

4 projects (hospitals)
Of a total value of 1 bn Euros
1 tender already launched
V. Tourism and sports

4 projects (conference centre and sports

centres)
Of a total value of 340 M Euros
1 tender already launched
VI. Ports Infrastructure

Security systems in 12 ports - € 342 M

VII. Environment

3 projects (waste management systems and

sewage network)
Of a total value of 450 M Euros
VIII. Defense

5 projects (new and existing buildings, flight

simulation centre, security systems)
Of a total value of 420 M Euros
IX. Transportation

2 projects (integrated fare collection

system, integrated telematics system)
Of a total value of 140 M Euros
X. Municipal PPP projects

2 projects (parking centre – house for

elderly)
Of a total value of 50 M Euros
 Smooth and transparent tender
process

Tenders in accordance with EU legislation

Restricted procedure is used (2 phases)
Phase I - EoI : Pre selection of bidders
Phase 2 - Submission of Final offers :
Input and detailed output specifications
are provided to pre selected bidders
Pre-selection and selection based solely on
objective criteria
Minimized bidding costs for contractors
Minimized risks for legal challenges
 Conclusion

Public Private Partnerships: an established

market in Greece
New opportunities for both public and private
sector
More than 150 companies have participated in
advisory tenders
45 companies have participated in PPP tenders –
10 international
Greece: focal point on the map of PPPs across
Europe
Great potential for those seeking entry into
new, dynamic markets
Contact details

Special Secretariat for PPPs

Ministry of Economy and Finance
Greece

Tel: +30 210 3375750

www.ppp.mnec.gr
e-mail: ppp@mnec.gr