In “building” a significant portfolio PPP projects promotes intracat, strengthening its share in a particular sector. A listed company in a joint venture with REDEX of the Kopelouzos Group recently submitted a unique proposal for a PPP project regarding the construction and management of a new building for the General Secretariat of the Ministry of Infrastructure. The project budget is 140 million euros, while interest was also shown in the context of the corresponding tender from the Mytileneos consortium – Dimand, GEK TERNA and Avax.

The new building will be built at 166 Piraeus Street, on top of the Taurus. Plot of private property 8.7 acres, not far from the station “Roof” commuter train. The building currently houses the Central Public Works Laboratory, a service of the General Secretariat for Infrastructure. The new property will house all the services of the latter, which are currently housed in 13 separate buildings, mainly in the center of Athens, which are also for rent. Thus, the annual financial benefit is estimated at about 3 million euros, although it should be noted that the state will in any case pay the amount to the private contractor, who will also take care of the maintenance of the property for 27 years. , more than three years provided as a construction period.

3000 student residences

In addition to the new building of the Ministry of Infrastructure, Intrakat is about to carry out, through PPP, an important project to build 3,000 new student residences in Chania and Heraklion, Crete on behalf of the University of Crete. This is a contract worth around 250 million euros, which concerns a very important project due to the great shortage of housing observed every year in Crete for both students and civil servants. It should be noted that in this tender, which actually dates back to early 2020, Intrakat was ultimately the only company to submit a binding financial offer.

We are talking about the construction and management of the new building of the General Secretariat of the Ministry of Infrastructure.

At the same time, Intrakat participates through joint ventures in both new infrastructure projects and public road axes to be implemented through PPPs. The reason for the section Hersonissos – Neapolis BOAK in the amount of 277 million euros, where the company participates in a joint venture with GEK TERNA and Aktor Parachoresis, as well as the road axis Kalamata – Rizomylos – Pylos – Methoni, in the amount of 239 million euros. , in a joint venture with Aktor Perachorises.

However, the fact that Intrakat was the only company to submit a binding bid for PPP construction projects from the University of Crete and the Ministry of Infrastructure is worrying as it is likely to be consolidated in the near future. future. The reason is the abundance of PPP tenders and the difficulty that interested companies now face in financing these projects.

Financing

It is recalled that after bidding for dozens of new projects in the previous three years, the PPP program is now valued at more than €5bn, with at least €3.5bn worth of mandatory bids yet to be submitted. Considering that in the period that has passed since the announcement of most projects, the cost of borrowed funds has grown many times, not even showing a tendency to de-escalate for the next period (in fact, on the contrary), construction companies are particularly selective in relation to these projects. While PPP projects provide visibility into future earnings and remarkable performance, the volume of new projects being undertaken by companies (and thus the working capital required to carry them out) is such that financing PPP projects that require the same 25% participation to be especially difficult.