Attiki Odos: Investors with “dot” tolls, increased traffic/revenue and… future extensions

Attiki Odos: Investors with “dot” tolls, increased traffic/revenue and… future extensions

With the “dot” of the 5-year toll adjustment, the clear upward trend in traffic and revenue compared to previous years and of course, in the future, possible expansions of the motorway, investors potentials are invited to “weigh” the data, among many other financial parameters (cost of money, interest rate, cost of road maintenance, etc.) and to “weigh” their participation in the final phase of the new 25-year concession of the Attica road, a call for tenders “organized” by TAIPED, and of course, the amount of their financial contribution.

Irrespective of the timing of the calls for tenders (end of May, July or later) and because of electoral contests, the 8 applicants or consortia claiming the contract, to whom the final draft of the contract has been sent, will be invited in the home stretch to give the financial prices they feel they “click” with the current economic reality, interest rates, tolls and of course the future projections they have made.

Tolls and readjustment “assets”

Of course, the issue of pricing policy remains a key issue, while it is recalled, as insider.gr pointed out since last year, that finally with a political “bullet” the price of tolls has been set at 2.5 euros per crossing, compared to 2.8 euros today, without different time zones and billing rates coming into effect. The contract provides for the review of the toll price at the end of the first 5 years (and every 5 years), depending on the evolution of car traffic on the main road. That is to say, it is expected that the investor can submit a price revision request as long as this is justified by the course of circulation. Today, Attiki Odos is a highway with serious traffic problems at certain points along the road, such as the stretch from the Kifisias Avenue junction to the Metamorfosi junction. That is to say, if the road axis shows signs of congestion, then the concessionaire will have the right to increase the price, with the aim of stopping traffic on the axis and making it operational. This is why the Concession Agreement will include specific indicators, etc.

Traffic and revenue are up

And while bids are expected to drop in the coming months, circulation and revenue are already “breaking the tabs”, as insider.gr recently revealed. During the January – March 2023 quarter, the average daily traffic would have increased by approximately 9% compared to the corresponding period of 2019, while it is increased by approximately 16% compared to the first quarter of 2022. The same information indicate that the average daily traffic during the quarter of 2023 exceeds 240 to 241,000 vehicles, compared to approximately 220 to 221,000 vehicles in the first quarter of 2019 and 207,000 vehicles during the same period of 2022. Obviously, the revenues are also rising. Over the first 3 months of 2023, total turnover (before VAT) is approaching, again according to market information, 50 million euros (+10%) compared to 2019 and +20% compared to 2022 (still at the level of the first trimester). It is recalled that in 2019 the total turnover (before VAT) exceeded 194 million euros and in 2022 196 million euros. As indicated in the financial report of ELLAKTR and AVAX (shareholders with percentages of approximately 65% ​​- 35%), on Attiki Odos, for the whole of 2022, vehicle crossings increased by 0.3% compared to 2019 and 12.5% ​​compared to 2019. 2021, with a gradual recovery in traffic towards the end of the year.

The famous extensions

However, in a broad sense, the highway may be “endowed” with new projects in the future, with further extensions, and while there has already been a tender for the L. Kymi extension to the national road, amounting to 350 million euros, with the contractors TERNA, AKTOR, Intrakat (signature of contract pending but “in question” with appeal to the Council of Ministers by the municipalities of the regions). A few weeks ago, insider.gr revealed the plans of the consortium itself to submit a proposal for the implementation of the famous extensions of Attica Road towards Vouliagmenis Street, Rafina, Lavrio (if not other areas also) via the model proposal template. Due to the great project of Elliniko, the construction of the famous tunnel of Heliopolis has “rise” to the surface, in relation to the other extensions, with studies carried out by Lamda itself. After all, shopping centers, residences, hotels, etc., even a casino will be built in this development, so traffic in an already saturated capital will be a difficult “equation” that requires “solutions”. It is a plan that obviously cannot be taken for granted and “locked in”, even if it is said to be known to political leaders. The new concessionaire will obviously want additional roads which will “clip” with the existing urban freeway. Of course, the “use” for the promotion of the project – financing model of almost 1.5 to 2 billion euros will be ensured by the government, the Ministry of Infrastructure and Transport working out the solutions and the market awaiting the final decisions. That is, if a public tender is chosen (as with the L. Kymis extension), Concessions/PPP, if other models such as standard proposals are left on the “table”, whether the projects are released individually or in “packages”, etc.

The pretenders

As we know, the main national infrastructure groups participate in the final phase (GEK TERNA, AKTOR Concessions, AVAX, MYTILINEOS, Kopelouzos, Intrakat in an international format) but also strong foreign groups or funds that had advanced to the final phase.

It is recalled that the contract is claimed by: ABERTIS INFRAESTRUCTURAS SA, Consortium AKTOR CONCESSIONS SA – AVAX SA – ARDIAN INFRASTRUCTURE, Consortium BRISA – AUTO ESTRADAS de PORTUGAL SA – RUBICONE BIDCO SA, Consortium CORE INFRASTRUCTURE FUND III SCS (VAUBAN) – DIF INFRA 6 PARTICIPATIONS BV – EGIS PROJECTS SA, Consortium of GEK TERNA SA – FS ARK HOLDCO Sarl, Consortium of MACQUARIE ASSET MANAGEMENT MOTORWAY HOLDINGS Sarl – FINCOP INFRASTRUCTURE LTD, Consortium of VINCI HIGHWAYS SAS – VINCI CONCESSIONS SAS – MYTILINEOS SA – MOBILITY PARTNER SAS, INC SpA (FININC GROUP).

In the Portuguese BRISA, INTRAKAT (with a 30% share) should “click”, like the CEO of the listed company, Al. Exarque. Also, there is no lack of scenarios for the withdrawal of foreign groups (for example the French Ardian from the joint venture AKTOR Concessions – AVAX) which are however not officially confirmed and for new ferments – collaborations between the groups. However, market sources do not rule out that we will hear from the French soon although, if their withdrawal is confirmed, there are probably other interested parties (foreign funds) to work with the Greek companies who know very well the dealership from inside. .

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