Thessaloniki Metro: What went wrong – The 5 moves that “unstuck” – 2024-09-13 23:33:52

With five moves, AKTOR since last November, when it was transferred to the Intrakat group, managed to restart and be ready on November 30, 2024 to deliver a breath-taking project for Thessaloniki, the metro.

The president and managing director of AKTOR, Mr. Alexander Exarchou reveals in “Vima tis Kyriaki” the manipulations of the administration, while at the same time announcing the progress of the works towards Kalamaria.

Mr. Exarchou also recommends how to avoid similar adventures with infrastructure projects, such as those experienced by the Thessaloniki metro for years, and recommends PPP and concession models.

As a shareholder of Thrivest, he emphasizes the importance for the economy of the creation of the 5th banking pillar that will result from the merger of Attica Bank-Pakretia.

Mr. Exarchou, the Thessaloniki metro is a fact. When is it delivered and what are the last outstandings?

“From the first moment we completed the acquisition of AKTOR and took over its fortunes, we publicly stated without evasion that we would deliver the project on November 30. We have kept this commitment firmly and without deviation, working around the clock to deliver the project on time in November 2024, which has been our Group’s top priority from the very beginning. We feel justified and proud of the imminent delivery of the project, which is becoming a reality thanks to the superhuman efforts of the people of AKTOR. Now, we are on the final stretch for the completion of the project, closing the last outstanding issues connected with its taking over by the operating company”.

The project was undertaken by AKTOR before its acquisition by Intrakat. In what state did you find both the “works” and the company when it was transferred to the group? What were the moves that accelerated the work?

“When we bought AKTOR, we proceeded as a priority to restart the company’s project production mechanism. We immediately supported the project financially, channeling tens of millions of euros and thus achieving the redevelopment of the construction sites. From November until today, the people of AKTOR have worked tirelessly to meet the deadline of November 30 and have achieved very important and not at all self-evident things: Among many other things, we have installed and completed the tests of the electromechanical systems, we have proceeded with the training of the operating contractor’s personnel , we completed the construction of the train station and proceeded with the relocation, maintenance and highlighting of the antiquities at the Venizelos station, which will be the new museum of Thessaloniki and the only one of its kind in Europe”.

At what stage are the works for the extension of the line in Kalamaria?

“On the Kalamaria extension, which is also being built by AKTOR, our people are working feverishly with the goal of delivering the project in 2025, once some issues are addressed that are primarily due to the delay in the construction of the main line. The pattern in the course of project completion will be similar to that of the baseline: Completion of construction work, testing and certification of systems. The completion of the Kalamaria extension is a priority for AKTOR and we will do everything possible to complete the project, thus contributing to a more sustainable and “green” Thessaloniki. At the same time, we are also working hard on the construction of the transport hub in New Switzerland, which we recently undertook, in order to complete the city’s transport puzzle”.

We need a new framework for the commissioning of major projects, which will guarantee that they are tendered with due diligence and at the right cost, and that they are undertaken by builders who can carry them out.

The case of the Thessaloniki metro is an example to avoid for other public projects. Is there a way to avoid such incidents?

“Indeed, the project was marked by problems that had a serious impact on its schedule and on the daily life of the city. The first problem is related to the financial ability of the old contractor to support the project, while the second issue, which essentially overshadowed the construction throughout the previous decade, was the archaeological one. The first issue was resolved by AKTOR’s entry into the project. And the second with a lot of work, which largely meant a quite different project from the one that was originally auctioned. I believe we can learn useful lessons from this adventure. We need a new framework for the commissioning of major projects, which will guarantee that they are tendered with due diligence and at the right cost, and that they are undertaken by builders who can carry them out. For us, PPP or concession projects must become the main model of project production in the country, as private financing and the participation of the country’s banking sector in it discourages delays or cost overruns.”

The 5th banking pillar and small and medium enterprises

Mr. Exarchou, you are one of the shareholders of Thrivest that will participate in the share capital increase of Attica Bank. What does the new banking pillar being built signal to the economy and the market?

“The 5th pillar marks the expansion of competition in the Greek banking market, which is characterized by a particularly high concentration and lack of flexibility, due to the subjection of systemic banks to the tough rules of the SSM. In other countries, which have also experienced a crisis, there are dozens of banking institutions that contribute to the high competition in the market. This was the gap we saw and we took the risk to get involved in the creation of the 5th pillar, which was not at all self-evident in 2023. And that was because we believed that the fastest growing economy of the Eurozone could not be supported by such a small number of banks. Soon, and following the ratification of the Thrivest-THS agreement by the Parliament and the approval of the general assemblies of Attica Bank and Pankritia, the new bank will start its unified operation, targeting small and medium-sized enterprises (SMEs), which find it particularly difficult to secure access to credits from the banking sector. However, they continue to be the backbone of the Greek economy and we firmly believe that their needs represent a first-class business opportunity. Thus, the 5th pillar will strategically target SMEs to unlock the market and create value for all.”