Project Overview
The Hellenic Ministry of Infrastructure and Transport has launched a significant infrastructure project for the design, construction, financing, operation, maintenance, and exploitation of the Crete Northern Road Axis (Chania–Heraklion) under a Concession Agreement. This transformative project aims to enhance regional connectivity, improve road safety, and support economic growth by developing a state-of-the-art road network. To achieve this ambitious goal, the Transport Infrastructure via Concession Agreement Directorate (D16) engaged specialized advisory services to ensure the effective structuring and tendering of the concession. PLANET was asked to provide tailored technical advisory support to facilitate every phase of the project lifecycle, from drafting technical specifications to achieving commercial close.
The Challenge
The concession project presents multiple challenges requiring a blend of technical, legal, and financial expertise. Developing comprehensive Design & Investigation Standards (DIS) and Technical Conditions of Contract (TCC) for a variety of works, including transportation, geotechnical, and hydraulic systems, was a primary hurdle. This had to be aligned with stringent safety and irrigation standards while ensuring compliance with national and EU directives. Additionally, drafting the Invitation for Binding Offers and the Concession Agreement with its annexes demanded meticulous coordination among multiple stakeholders, including financial advisors. Addressing bidders' observations during the competitive dialogue phase required a dynamic approach to accommodate recommendations without compromising project integrity. Further complexities included securing EU approval for state aid, facilitating communications with key EU Directorates, and supporting the project through critical milestones such as bid evaluation, announcement of the preferred bidder, and legislative submission. The ultimate challenge lay in structuring a balanced and bankable PPP framework to attract private sector investment and achieve a timely Concession Commencement Date.
By addressing the multifaceted challenges of structuring and tendering a major concession agreement, this initiative sets a benchmark for infrastructure development in Greece. The Crete Northern Road Axis exemplifies the potential of public-private collaboration to deliver sustainable, impactful infrastructure projects.
PLANET’ s Approach
Our team of experts adopted a strategic, phased approach to address the project’s complexities:
- Development of Standards and Conditions
- Design & Investigation Standards (DIS) covering all technical and safety aspects, from geotechnical and hydraulic works to signage and irrigation systems.
- Technical and Special Conditions of Contract (TCC and SCC) to ensure clear and enforceable agreements.
- Procurement Documentation
- Collaboration with the Ministry’s financial advisors to draft the Invitation for Binding Offers and the Concession Agreement, ensuring all documents met the project’s technical and financial requirements.
- Facilitation of iterative reviews of procurement documents to incorporate feedback from stakeholders and bidders during the competitive dialogue phase.
- Stakeholder Engagement
- Support D16 in addressing comments and recommendations from potential bidders, ensuring transparency and competitiveness in the tendering process.
- Assistance in communications with EU Directorates, including DGCOMP and DGMOVE, to secure state aid approval and alignment with EU policies.
- Evaluation and Negotiation Support
- Guidance to D16 and evaluation committees during bid review and scoring.
- Support of negotiation processes to finalize project agreements.
- Capacity Building and Project Continuity
- Training workshops for D16 personnel on PPP procurement and management practices.
- Support the project’s progression to commercial close and legislative approval, ensuring readiness for the Concession Commencement Date.
Outcomes and Impact
The project is progressing steadily toward achieving its objectives under a meticulously designed framework and key milestones are accomplished. The groundwork laid by PLANET has ensured that the concession agreement aligns with national and EU requirements, while also balancing the interests of public and private stakeholders. With the project advancing through critical phases, it holds the promise of delivering a transformative road network that will enhance connectivity, bolster regional development, and improve the quality of life in Crete.
