Greek Road Fund Closure

Road FundThe discussion between the heads of the Ministry of Administrative Reform, e-Governance and Troika representatives went smoothly according to a senior member of the Ministry, seeing as Kyriakos Mitsotakis received the “green light” for the prerequisites that the lenders had set for the country during the evaluation period. According to sources the road fund as well as some other small civil organizations will close down.

The Road Fund (TEO) was founded in 1927, as a public entity and was under the supervision of the Ministry of Transport. Its aim was the construction and maintenance of major Greek highways through revenues derived from road user charges, around and between cities. At the time it occupies 160 employees.

During the years 1984 to 1988, the TEO was assigned other responsibilities such as the management of traffic connections and roadside land, construction and maintenance car service stations and the ability to generate subsidiaries public limited companies. So TEO founded the company “Hellenic Motorways SA” whose main goal was the cleaning of National Highways.

In 2003 TEO S.A. introduced Greece to the electronic automatic transit toll stations, called TEOPASS which can now be found throughout the national road network and has thousands of subscribers. In 2009, when the Greek government signed concession contracts with private construction companies, along with the revenue of the toll booths that were granted by the TEO S.A. the operation of this system ceased in most of the national road network.