Major delays in construction of the Corinth-Kalamata-Sparta motorway

There have been major delays in construction of the Corinth-Kalamata-Sparta motorway. Although 95% of works have been completed, construction has now been suspended.

According to press reports, the consortium that undertook to construct the project was asked to stop funding the project in 2013, as the Greek banks consider that the project is not generating sufficient income to repay the loans.

The final extension to the deadline for completing the project was June 2014, when the Greek Government revised the franchise contract and earmarked additional funding for the consortium responsible for renovating the motorway.

In view of the above, will the Commission say:

Source: European Parliament

Answer given by Ms Creţu on behalf of the Commission

The Korinthos — Tripoli — Kalamata motorway (Lefktro — Sparti section) is a major project co-financed by the European Regional Development Fund in the 2007‐2013 period under the Accessibility programme. The co-financing decision for the project was adopted in June 2012. Around 93% of the physical object of the project is completed, with a similar amount of funds having been disbursed. The financial crisis however has brought the project to a standstill; works are effectively frozen.

In order to resolve the issue and see the project finalised, the parties to the motorway concession negotiated and agreed on a solution to the financial issues that had been raised. This solution has not yet been presented to the Greek Parliament for adoption.

Once the negotiated solution has been adopted, the Commission will constructively assess a new application of the major project that will be based on the agreed-upon elements, in order that a modification of the existing Commission decision can be adopted.

Source: European Parliament