The concession contract for the study, construction, funding, operation, maintenance and exploitation was ratified today in the House. North Road ‘Axis of Crete (BOAK) in Chania – Heraklion, totaling 157 km.

The project also includes a “Option” section, the Kissamos – Chania section of about 30 km. This option will be exercised immediately after the environmental conditions of the department is issued.

In his speech, Minister of Infrastructure and Transport Christos Dimas emphasized that the northern road Axon Crete is the main road development axis of the island, which would ensure the safety of travel, while at the same time acting as a catalyst for its economic, tourist and social progress.

Mr Dimas said that at the same time, with the commencement of the precursor works provided by the Convention, the ministry has asked the concessionaire to draw up studies for road safety interventions in sections where traffic accidents have been recorded, with the aim of some of them to start implementing this summer.

The Minister of Infrastructure and Transport reiterated that: “The strategic goal of the government remains for the North Road ‘Axon Crete to be a single, modern and safe road axis connecting Kissamos with Sitia, the west end of the island with the east.”

In this regard, he added that studies on the area have already been prepared to expand to BOAK and east to the east, while the Ministry of Infrastructure and Transport will finance the studies from thick Ammos to Sitia in the immediate future.

The Minister of Infrastructure and Transport highlighted the decisive contribution of the Greek Government, which, with perseverance, consistency and continuous negotiations, secured the financing and integration of the project into an implementation orbit for the benefit of the public interest and the local community.

Regarding the issue of tolls, Mr. Dimas stressed:

“There is no toll motorway. The non -imposition of tolls would exceptionally constitute a further burden on taxpayers across the country to depreciate the cost of constructing, operating and maintaining the project. “

In closing his position, Mr. Dimas said:

“With today’s ratification, we confirm the obvious! A project that delayed to start, but is now based on solid foundations, with secured funding and long -term perspective, under the guidance of the Prime Minister. All Kyriakos Mitsotakis governments have worked methodically and systematically since 2019 to reach today the ratification of the contract of the central part of BOAK, and in particular, all my predecessors. We are in practice with BOAK, we will vote in favor and so will the reality. So some are with the micro -political excuses and some are with the works. “

Responding to the criticism made by the opposition, Deputy Minister of Infrastructure and Transport Nikos Tahaios, among other things, pointed out:

“You accuse us of the contract, but which is the product of a competition launched under SYRIZA in 2018. The competition was related to the study, funding, construction and operation of this BOAK section with a concession contract. And I wonder: Is there any, worldwide, concession contract calling for one to finance a project and not repaid for it? So SYRIZA tells us that he will denounce the contract? Will it change it? What? The contract that is a product of a competition that he himself auctioned, which he started with exactly these features?

We said that urban commutes will not have tolls. This means that the construction of the project, which costs about € 2.1 billion- should be covered by the other travel. This money – the cost of constructing the project – must be repaid, whether they relate to the same funds or loans. So to repay, there is a need for tolls. In terms of their price, we really came up with shadow tolls since we achieved a 100%discount. The shadow tolls were therefore necessary in order for users to pay in Crete to be formed with the same mileage charges as those that apply throughout mainland Greece. That is, if the toll height required to pay for the investment was paid exclusively by users – as you might want or imply – the cost should be the one that applies throughout Greece, burdened by at least 64%.

We believe that the government of Kyriakos Mitsotakis with the concession contract called to ratify the House is carrying out a very difficult task, which we will manage with absolute unity with the local community. We will consult with all municipalities, we will consult with the Region and with those who have an opinion on the project. “

Technical details of the concession contract

Project funding:

· First, the concessionaire is obliged to invest in a total of EUR 219.3 million. In the event of an option, this investment of the concessionaire is increased to EUR 243.5 million.

· Secondly, the State’s financial contribution is EUR 693 million and if the option is exercised then the State’s financial contribution is increased by EUR 99 million, and

· Third, regarding loans to the concessionaire from commercial banks, these loans amount to EUR 971.8 million without the option of being activated (Kissamos – Chania Department). If the option is activated, these loans amount to EUR 1,079 billion.

The contract provides for a maximum amount of tolls of fees of EUR 0.053 per km before VAT (that applies to all motorways) at 2022 prices for category 2 vehicles (vehicles with or without a trailer and up to 2.20 m) while the other categories are the same as the other.

According to the announcement, as revenue from the specified toll fees are not sufficient to cover the total infrastructure costs (including operation, maintenance, loan service and equity), the State has chosen the payment of tolls to the concession. The percentage of these was an element of the competition and is 64.62% on the end of the end of the end toll.

The contract also provides that, if the concessionaire’s investment is over, the percentage of shadow tolls decreases gradually and ultimately reset.

The concession contract of the Department of Chania – Heraklion is concluded between the Greek State and the Societe Anonyme under the name “DIKOGONIA SHIPPINGS”, and, from a third party, of the “GEK TERNA” company. The concession contract lasts 35 years, 5 of which relate to the period and construction period.

Concerning the end of the concession period, according to the announcement, the procedure for returning the project to the State is established, with successive inspections of the project to ascertain its condition, in accordance with contractual requirements.