GEK TERNA SA (Bloomberg: GEKTERNA GA / RIC: HRMr.AT) announces that it signed today, as the sole shareholder of the company “NEA ATTICA ROAD CONCESSION M.A.E.”, the service concession agreement for the financing, operation, maintenance and exploitation of Attica Road for a period of 25 years, with the Greek State and the State Private Property Development Fund (TAIPED S.A.) as counterparties. This is the largest value concession contract ever signed in Greece with a total price of 3.270 billion euros.
The next steps of the process include, among other things, the ratification of the Concession Agreement by the Parliament, the financial closing of the transaction with the one-time payment of the price and the fulfillment of all the contractual delivery-receipt conditions.
The financing of the project is expected to come from a combination of GEK TERNA Group’s own funds and bank loans, as has been foreseen in the tender process. As the exclusive financial advisor of GEK TERNA S.A. Mediobanca SpA acted for the transaction, while financial support came from Greek banks (Piraeus Bank, National Bank, Eurobank and Alpha Bank).
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The project is already in operation, while its heavy maintenance will be completed on the date of transfer to GEK TERNA. The traffic data of the last 20 years, combined with the provisions of the concession contract, show that the specific project can effectively cope with difficult situations, ranking it among those with the lowest risk and with particular resilience, as demonstrated by its performance both in the financial crisis as well as during the recent pandemic. Notably, average daily traffic at the end of 2022 had already surpassed pre-pandemic levels, with the motorway seeing an average annual traffic increase of 4% over the past 10 years, and now averaging 270,000 daily traffic. .
It is recalled that the GEK TERNA Group is the largest investor in concession projects, PPPs and emblematic projects that correspond to investments of billions of euros, such as the new Heraklion International Airport of Crete, the Integrated Tourist Complex in Elliniko, the Northern Road Axis of Crete (BOAK), the Integrated Waste Management in the Regions of Epirus and Peloponnese, the Single Electronic Ticket in Athens and Thessaloniki, etc.
Referring to the signing of the Concession Agreement, the President and CEO of GEK TERNA Group Mr. Giorgos Peristeris stated:The inclusion of Attica Road in the concession portfolio of the GEK TERNA Group is part of an overall plan that we have been carefully and prudently implementing for years, making private investments with multiplier value for the domestic economy, contributing to the increase in employment and also contributing important funds to the public funds. Attiki Odos, with its special characteristics, is a project that inevitably stands out, among the other road concessions of the country, as due to its location in Attica, it is affected and influences the traffic reality of the capital as a whole. For this reason, Attiki Odos should not be treated as an island, but as a vital part of a wider traffic network, which must be developed and expanded further in order to make the movement of citizens and visitors of Athens efficient, improving the man-made and natural environment and the everyday life of millions of people”.
Focusing on the importance of securing the Attica Road concession for GEK TERNA, the President of the concessionaire company NEA ATTIKI ODOS PARACHORISIS M.A.E. and General Development Manager of GEK TERNA Group, Mr. Emmanuel Moustakas, pointed out during the signing of the contract: “For GEK TERNA, this is a project that expands the Group’s highway network in Greece, offering significant revenue, EBITDA and dividend yields, with a significantly lower risk profile. The performance of the project is expected within the range of returns that GEK TERNA traditionally targets and achieves in similar projects, adding additional value to the company and significant benefits to its shareholders».
Attiki Odos was built in the 1990s. It is 70 km long and is the peripheral ring of the wider metropolitan area of Athens and the backbone of the road network of the Prefecture of Attica, where more than 5 million people live. It is also the connecting link of the PATHE road axis (Patra-Athens-Thessaloniki-Evzoni), since it connects the Athens-Lamia National Road with the Athens-Corinth National Road, bypassing the center of Athens, while also connecting the Athens airport by road with the city center.
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– What are the key benefits of the €3.27 billion Attica Road concession contract for Greece?
Table of Contents
GEK TERNA SA Secures Historic Attica Road Concession Contract Worth €3.27 Billion
In a landmark agreement, GEK TERNA SA (Bloomberg: GEKTERNA GA / RIC: HRMr.AT) has signed a 25-year service concession agreement with the Greek State and the State Private Property Development Fund (TAIPED S.A.) for the financing, operation, maintenance, and exploitation of Attica Road. This monumental contract, valued at €3.27 billion, marks the largest concession agreement ever signed in Greece.
Next Steps
The agreement is subject to ratification by the Parliament, following which the financial closing of the transaction will take place with a one-time payment of the contract price. Additionally, all contractual delivery-receipt conditions must be fulfilled. The project is already operational, with GEK TERNA set to undertake heavy maintenance upon transfer.
Financing
The financing of the project will be carried out through a combination of GEK TERNA Group’s own funds and bank loans, as stipulated in the tender process. Mediobanca SpA acted as the exclusive financial advisor to GEK TERNA SA, while Greek banks, including Piraeus Bank, National Bank, Eurobank, and Alpha Bank, provided financial support.
Low-Risk, High-Return Project
The Attica Road concession project is characterized by its low risk profile and high return potential. Traffic data from the past 20 years, combined with the provisions of the concession contract, demonstrate the project’s resilience and ability to cope with challenging situations. In fact, average daily traffic at the end of 2022 had already surpassed pre-pandemic levels, with a 4% annual increase over the past decade.
GEK TERNA Group’s Commitment to Infrastructure Development
GEK TERNA Group is the largest investor in concession projects, PPPs, and emblematic projects in Greece, with a portfolio of investments spanning billions of euros. Other notable projects include the new Heraklion International Airport of Crete, the Integrated Tourist Complex in Elliniko, the Northern Road Axis of Crete (BOAK), and the Single Electronic Ticket in Athens and Thessaloniki.
Statements from GEK TERNA Group’s Leadership
Commenting on the signing of the Concession Agreement, GEK TERNA Group’s President and CEO, Mr. Giorgos Peristeris, stated that the inclusion of Attica Road in the Group’s concession portfolio is part of a broader plan to make private investments with multiplier value for the domestic economy. He emphasized the importance of Attica Road as a vital part of a wider traffic network that must be developed and expanded to improve the everyday life of millions of people.
Mr. Emmanuel Moustakas, President of the concessionaire company NEA ATTIKI ODOS PARACHORISIS M.A.E. and General Development Manager of GEK TERNA Group, highlighted the significance of securing the Attica Road concession for GEK TERNA, citing the project’s potential to generate significant revenue, EBITDA, and dividend yields with a lower risk profile.
This historic agreement marks a major milestone in GEK TERNA Group’s commitment to investing in Greece’s infrastructure development and reaffirms the company’s position as a leader in the sector.
Keywords: GEK TERNA SA, Attica Road, concession contract, Greece, infrastructure development, PPPs, Mediobanca SpA, Greek banks, Piraeus Bank, National Bank, Eurobank, Alpha Bank, Giorgos Peristeris, Emmanuel Moustakas.
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– What are the key implications of GEK TERNA SA signing the Attica Road concession contract?
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Title: GEK TERNA SA Signs Historic 25-Year Concession Contract for Attica Road, Worth €3.27 Billion
Meta Description: GEK TERNA SA has signed a 25-year concession contract for Attica Road, worth €3.27 billion, marking the largest value concession contract ever signed in Greece.
Keywords: GEK TERNA SA, Attica Road, concession contract, Greece, infrastructure development, transportation, road maintenance
Introduction:
In a significant development for Greece’s infrastructure sector, GEK TERNA SA (Bloomberg: GEKTERNA GA / RIC: HRMr.AT) has signed a historic 25-year concession contract for the financing, operation, maintenance, and exploitation of Attica Road. This milestone agreement, worth €3.27 billion, marks the largest value concession contract ever signed in Greece. In this article, we will delve into the details of the contract, its significance, and what it means for Greece’s transportation landscape.
The Concession Contract:
The concession contract, signed between GEK TERNA SA, the Greek State, and the State Private Property Development Fund (TAIPED S.A.), will see the company take over the operation and maintenance of Attica Road for a period of 25 years. The contract is the result of a tender process that began in 2022, and its signing marks a significant step forward for Greece’s infrastructure development.
Financing and Next Steps:
The financing for the project will come from a combination of GEK TERNA Group’s own funds and bank loans. As part of the transaction, Mediobanca SpA acted as the exclusive financial advisor to GEK TERNA SA, while financial support came from Greek banks (Piraeus Bank, National Bank, Eurobank, and Alpha Bank). The next steps of the process include the ratification of the Concession Agreement by the Parliament, the financial closing of the transaction with a one-time payment of the price, and the fulfillment of all the contractual delivery-receipt conditions.
Project Background:
Attica Road is a crucial infrastructure project that has been in operation since 2001. The project’s heavy maintenance will be completed on the date of transfer to GEK TERNA. The traffic data of the last 20 years, combined with the provisions of the concession contract, demonstrate that the project can effectively cope with difficult situations, ranking it among those with the lowest risk and particular resilience.
Significance of the Project:
The signing of the concession contract is a significant milestone for Greece’s transportation sector. Attica Road is a vital artery that connects Athens to the rest of Greece, and its maintenance and operation are essential for the country’s economic growth. The project is expected to have a multiplier effect on the domestic economy, contributing to employment growth and generating important revenue for the public sector.
Quotes from Key Stakeholders:
Referring to the signing of the Concession Agreement, the President and CEO of GEK TERNA Group, Mr. Giorgos Peristeris, stated: “The inclusion of Attica Road in the concession portfolio of the GEK TERNA Group is part of an overall plan that we have been carefully and prudently implementing for years, making private investments with multiplier value for the domestic economy, contributing to the increase in employment and also contributing important funds to the public funds.”
Focusing on the importance of securing the Attica Road concession for GEK TERNA, the President of the concessionaire company NE
