In­vest­ment in projects drops

Kathimerini English - - Focus -

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.

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