WRITTEN QUESTION P-3122/01

by Christos Folias (PPE-DE) to the Commission

(6 November 2001)

Subject: Problems with management of CSF rail projects in Greece

According to Greek press reports, the Commissioner responsible has written to the Greek Government to point out that there are problems with Ergose's management of projects relating to the rail links between Thriasio, Elefsina and Corinth, Evangelismos and Leptokarya, and electrification. These problems concern failure to carry out surveys, running over schedule and budget, and running out of funds before completing the project.

What was the schedule and the original budget for the above projects?

To what extent is the work so far carried out using these appropriations at variance with the schedule and the original budget?

Are there difficulties in carrying out the above projects? If so, where do those difficulties lie and what does the Commission propose to do to overcome them?

Answer given by Mr Barnier on behalf of the Commission

(24 January 2002)

With regard to the rail network, the initial project concerned the construction of a new line of about 70 kilometres (km). It was adopted for co-financing by the Cohesion Fund in 1996 with a total cost of 280 million and a work schedule until the end of 2000. In July 1999 the decision was modified because of delays in the execution of the project. The physical object was reduced to 19,8 km principally relating to underground works and the revised budget was set at 120 million (43 % of the initial cost). The completion date was maintained at the end of 2000.

In March 2001 a new phase of the project was accepted for Community co-financing. It concerns 50,2 km of underground works and 70 km of above mentioned ground works. The new budget is fixed at 165 million and the completion date at the end of 2005.

The project also includes the Kakia Skala section which has an important cost increase because of the reinforced standards for building due to the last earthquake in Athens. The Commission intends to co-finance this additional cost.

Project Evagelismos-Leptokarya

The initial project concerned the construction of a new double track railway line of about 35 km. It was adopted for co-financing by the Cohesion Fund in 1995 with a total cost of 251,4 million and a work schedule until the end of 2000. In December 1999 the decision was modified because of delays in the execution of the project. The physical object was reduced to 24 km principally relating to underground works and the revised budget was set at 307 million (122 % of the initial cost). The completion date was maintained at the end of 2000.

In March 2001 a new phase of the project was accepted for Community co-financing. It concerns 11 km of underground works and 35 km of the above mentioned ground works. The new budget is fixed at 105 million and the completion date at the end of 2004.

Project Electrification of Pathe

The initial project concerned the electrification of the rail line Pireaus-Athens-Thessaloniki of 520 km. It was adopted for co-financing by the Cohesion Fund in 1994 with a total cost of 180 million and a work schedule until the end of 2000. In July 1999 the decision was modified because of delays in the execution of the project. The physical object was limited to the modification of the existing signalling system and to a number of studies and the revised budget was fixed at 67,5 million (37,5 % of the initial cost). The completion date was maintained at the end of 2000. The co-financing for this project is suspended.

For the two last projects, the Commission launched an expertise earlier in 2001 and sent the results to the Greek authorities, asking them also to present a detailed description up to a time horizon of 2008 (Community Support Framework and Cohesion Fund for the 2000-2006 programming period) of the whole project of the Pathe rail axis (costs, timetable, technical and standards functionality). The Greek authorities have announced that their full reply will be sent soon to the Commission. The Commission intends to follow up this issue with experts, in order to define its position concerning the financial assistance allocated to the projects and their future co-financing.