WRITTEN QUESTION E-0773/03

by Konstantinos Hatzidakis (PPE-DE) to the Commission

(12 March 2003)

Subject: Budget overruns in the construction of the Attiki Odos motorway

In its answer to my question (P-0239/03(1)) the Commission has failed the answer the question I had put, doubtless owing to a misunderstanding. It stated that the total cost of the construction of the Attiki Odos motorway was EUR 1 713 million, which is less than the sum of EUR 3 175 million which it had mentioned in its answer to a previous question (E-2894/01(2)), presumably because the answer to the former question refers only to the period 2000-2006. It also fails to mention whether there have been any overruns and, if so, what the reasons for these overruns are.

In view of the above, the Commission is once again asked to say:

- What was the budget for the Attiki Odos motorway when construction work began?

- What overruns have been noted since construction work began and what are the reasons for these overruns?

- What is the overall construction cost for the Attiki Odos motorway as it has grown with the passage of time, including the overruns?

(1) OJ C 161 E, 10.7.2003, p. 200.

(2) OJ C 115 E, 16.5.2002, p. 189.

Answer given by Mr Barnier on behalf of the Commission

(16 April 2003)

On the basis of the concession contract signed in 1996 between the Greek Authorities and the concessionaire for the construction of the Athens ring (Attiki odos), an amount of EUR 1 248,7 million, at current prices, is provided for the lump sum price object of the contract. This object corresponds to the project to be constructed and managed under the full responsibility of the concessionaire. The amount is composed of EUR 418,2 million of public contribution and EUR 830,5 million of private contribution.

The same contract provides for parallel public works not included in the lump sum object, of EUR 146,75 million at current prices, and gives the possibility that the value of these parallel works is increased by 50 %. The contract provides also for the possibility of additional works up to an amount of 50 % of the lump sum price of EUR 1 248,7 million. Such works have been subsequently approved, in most cases after court decisions in relation to improved environmental conditions in some areas affected by the Athens ring road.

On the basis of information provided by the responsible national authorities the total amount of parallel and additional works as provided for in the concession contract is EUR 220 million and EUR 571,21 million respectively at current prices. Together with the EUR 1 248,7 million allocated to the lump sum object, this makes a grand total of around EUR 2 040 million.

Other cost elements of the project, which are not included in the concession contract, are expropriations, fees for independent engineers and consultants, archaeology and moving the network of public utilities. If these cost elements are also added to the above mentioned grand total of EUR 2 040 million corresponding to the concession contract, then the total cost of the project of Attiki odos, including the concession contract and the other cost elements not linked with it, is about EUR 3,2 billion.

Attiki odos is a measure of the Operational Programme Road Axes-Ports-Urban Development 2000-2006, and at the same time a major project under the terms of Articles 25 and 26 of Council Regulation (EC) No 1260/1999 of 21 June 1999 laying down general provisions on the structural funds(1).

The European Regional Development Fund's (ERDF) assistance requested for this project under the Community Support Framework (CSF) III is EUR 476 million, corresponding to a public expenditure of EUR 951 million and a total cost, including private contribution, of EUR 1 713 million. The assistance requested concerns a part of the lump sum object, parts of the parallel and additional works of the concession contract, as well as parts of the other cost elements of the project. There is no possibility of increasing this ERDF assistance amount in the future, with additional funds from the CSF 2000-2006 or from the Cohesion Fund.

(1) OJ L 161, 26.6.1999.