Greek State losing 7.5 Billion from Motorways

Road FundAs revealed in a report by the General Accounting Office, the Greek State loses 7.5 billion euros, according to the terms of the new contracts for motorways and road tolls.

The General Accounting Office reported that the amounts that the Greek State lost during the concession period, due to a revenue recycling mechanism, are the following: 1,1 billion euros for Malliakos-Kleidi motorway, 1,2 billion euros for the Central Greece motorway, 2,1 billion euros for the Ionian road motorway and 3,1 billion euros for Elefsis-Corinth-Patras-Pyrgos-Tsakona motorway.

Therefore the revenues from the motorways are limiting to 9 billion euros. The State’s obligations towards the contractors, regarding the cover of the project’s financing gap by the end of 2015, are reaching almost 1 billion euros.

As reported by the Deputy Minister of Transport, Michalis Papadopoulos, the procedures for the timely disbursement of EU funds have to be completed by December 10. Consequently the debate on the ratification of modification agreements of  the concession contracts has already begun as it is a matter of great priority.

Among others these contracts include increases in road toll charges that even reach 60%.