Xanthi-Border vertical road project cancelled after four years
The long-anticipated vertical road axis connecting Xanthi to the Bulgarian border has been cancelled, as the contracting authority Egnatia Odos S.A. has decided not to proceed with the tender process for the €48.8 million project (including VAT).
Tender Cancelled by Egnatia Odos S.A.
During a recent board meeting, Egnatia Odos S.A. resolved to terminate the procurement process for the construction of the Vertical Axis 70 of Egnatia Odos: sections Echinos–Melivoia (70.2.1) and Melivoia–Greek-Bulgarian Borders (70.2.2), specifically the Melivoia Bypass–Dimario subsection. The estimated cost of this part alone was €39.4 million (excluding VAT). Notably, the project tender was originally launched nearly four years ago, in 2021.
Project Scope and Delay
According to the original tender documents, the project involved the construction of a 10.76 km expressway, including four at-grade intersections (Melivoia-East, Aimoniou/Melivoia-West, Kotyli, and Dimario), with approximately 2 km of connecting roads, as well as the rehabilitation of the existing local road network.
However, the termination decision was based on several key factors:
- Outdated cost estimates: Since over four years have passed since the project was tendered, the original cost assessments no longer reflect current market conditions. Budget revisions are needed to ensure the project's smooth execution and fiscal responsibility.
- Changed traffic conditions: Local traffic patterns have significantly evolved, rendering the current technical plans outdated and requiring a comprehensive reassessment.
- Environmental permits need renewal: The existing environmental authorization is no longer adequate and must be reevaluated and updated.
- EU funding conditions have changed: The terms for European funding must be updated to ensure continued support and avoid financial burdens on the contracting authority due to potential loss of EU funds.
A Troubled Tender History
The project’s history has been marked by multiple contractor changes and bid reversals. Initially awarded to ODOS ATE with a 21.5% discount, the tender later moved to AKTOR after ODOS ATE’s offer was rejected. Other bidders included TERNA (approx. 14% discount), Intrakat, and ETETH (AVAX Group) with lower offers. Eventually, ODOS ATE was reinstated as the selected contractor with a 21.52% discount and a contract value of €30.92 million (excluding VAT). Despite this, the final decision was to terminate the tender process entirely.
What Comes Next?
It remains to be seen whether the project will resurface under a revised plan, be tendered anew, or be abandoned altogether. The decision underscores the need for dynamic project planning in the face of evolving technical, financial, and regulatory landscapes.
Source: insider.gr
