Investment in projects drops
The tender process and the implementation of major infrastructure projects are suffering from considerable delays in Greece due to the financial crisis, according to a study on the course of the construction sector by PricewaterhouseCoopers (PwC).
The study showed 69 new projects are scheduled for delivery by 2022 with a total budget of 21.4 billion euros. This includes projects adding up to 13.4 billion that are already under way.
The energy sector accounts for 42 percent of those projects, another 31 percent concerns railway, tram and metro works, while 15 percent concerns road transport projects.
According to the PwC study the majority of energy and railway projects are unfolding, the road works are close to completion and will be delivered in 2017, while tourism projects and those concerning waste management and water networks are still at an early stage.
Notably, from 2014 until last month, a total of 16 projects were delivered with a total budget of 2 billion euros, of which the Moreas highway in the Peloponnese accounts for 50 percent (1 billion euros). However, it is noted that from 2006 to 2016 investment in infrastructure shrank from 3.7 percent to 1.1 percent of gross domestic product, which translates into an average yearly loss of 3.6 billion euros and a total loss in invested capital amounting to 62 billion euros. hoteliers is the down payments they receive from the tour operators that operate like banks for the local hotel enterprises. Tourism market professionals speak of hoteliers who have ‘mortgaged’ their rooms for rates from as little as 15 euros per night for contracts lasting up to 2021.