Greece has formally transferred the operation of its longest motorway, the Egnatia Odos, to a consortium led by GEK Terna and EGIS Projects under a 35-year concession agreement, the country’s Growthfund said on Tuesday.
Under the deal, the concessionaire, operating through NEA EGNATIA ODOS PARACHORISI S.A., will make an upfront payment of 1.275 billion euros ($1.50 billion) to the Greek state, providing a boost to public revenues and helping reduce public debt.
The concession covers more than 1,000 km (620 miles) of motorway, including three major vertical axes linking northern Greece to neighbouring countries. The operator has committed to invest more than 1.8 billion euros over the life of the contract, primarily for heavy maintenance works such as resurfacing, bridge and tunnel upgrades and safety improvements.
Around 420 million euros will be invested in the first five years, including the upgrade of the Chalastra–Evzonoi section into a fully controlled-access motorway. Plans also include the construction of 16 new service stations and 12 rest areas along the route.
The Greek government said the agreement was aimed at modernising key transport infrastructure while supporting economic growth in northern Greece.
“The high price paid strengthens public revenues while ensuring an extensive investment programme,” Finance Minister Kyriakos Pierrakakis said in a statement. “Egnatia Odos is being upgraded into a modern and safe transport corridor that supports trade and regional development.”
Infrastructure and Transport Minister Christos Dimas said the motorway would enter a long period of systematic investment, adding that the upgrades would improve road safety and cross-border connectivity.
Completed in 2009, Egnatia Odos is considered Greece’s most complex and costly infrastructure project. Stretching from the western port of Igoumenitsa to the Turkish border at Kipoi, the motorway crosses mountainous terrain and includes more than 1,650 bridges and 76 tunnels.