The city of Thessaloniki is occupied by a reasonable concern as regards the progress of the Metro works due to fact that the Contracting Joint Venture (J/V) has issued a Special Declaration on Work Suspension. This Declaration was rejected by ATTIKO METRO S.A., which urged the Contractor to continue –as obligated- the works for the construction of the Project. ATTIKO METRO S.A. responses are presented below dealing with the issues manifested during the public debate on the Metro Project.
PROJECT WORKS CONTINUE DESPITE THE CONTRACTOR’s DECLARATION
ATTIKO METRO S.A.’s positions on the issues raised by the Contracting J/V through the Special Declaration on Work Suspension were presented in a lawful manner and in due time. Based on its positions, ATTIKO METRO S.A. rejected the Special Declaration on Work Suspension as groundless, unlawful, undue and unacceptable, fully refuting one by one all allegations of the Contracting J/V.
ARCHAEOLOGICAL FINDS – Route Cause of Delays
The route cause of the extended delays in the progress of the Project is no other than the archaeological excavations requested by the responsible Archaeological Departments, the Central Archaeological Council (CAC) and the Ministry of Culture, and foreseen by the applicable legislation. Until the present date, eight (8) years after the commencement of the archaeological excavations, 82 million € out of the approximately 90 million € approved for archaeological investigations have been disbursed. The Minister of Culture & Sports recently issued a decision, at the request of the two responsible Archaeological Departments and following the CAC’s Expert Opinion, demanding an additional amount of 42.8 million € in order for the archaeological works to be completed, which are followed by the works for the construction of the Stations and their accesses.
ATTIKO METRO S.A. believes that every major archaeological find constitutes a valuable reserve and wealth for the city of Thessaloniki and all involved parties are bound by the responsibility to appreciate, reveal and safeguard it accordingly.
ARCHAEOLOGICAL WORKS FORMING PART OF THE CONTRACTOR’s SCOPE
All archaeological works are imposed by the legally responsible Archaeological Departments and ATTIKO METRO S.A. is obliged to adhere to this procedure. The Contractor is the sole and full responsible for the execution of these works. The Memorandum signed between ATTIKO METRO S.A. and the Ministry of Culture legally binds the Archaeological Departments to make all possible efforts so that each archaeological excavation does not exceed the associated Time Schedule and, in any event, a period of twenty (20) months.
ATTIKO METRO S.A. PAYS ALL EXPENSES
ATTIKO METRO S.A. has secured all funds that are necessary for the Project’s implementation. The Contractor has received full payment for each work so far executed, while all payments are effected within the shortest possible time period and always earlier than the deadline specified in the Law.
There is no cost overrun regarding the Project’s contractual price, which amounts to approximately 885 million €, nor is there an overrun regarding the amount of the Supplementary Contract which comes to 41.8 million € and concerns the large-scale, additional archaeological works.
PAPAFI STATION: IDEAL EXAMPLE
The area where PAPAFI Station is to be constructed was finally delivered by Papafeio Foundation approximately six (6) years after the commencement of the Project. Nevertheless, ever since the beginning of the Project, ATTIKO METRO S.A. has exhibited full grasp of its social responsibility, by constructing a brand new school to house the Children with Special Needs formerly housed in prefabricated structures in the yard of Papafeio Foundation. ATTIKO METRO S.A. instruction to the Contractor was to amend the Station’s construction method in order to contain any damage and delay in relation to the Time Schedule.
THE TRUTH ABOUT VOULGARI STATION
In the third (!) year of the Project’s construction, the Contracting J/V requested the relocation of VOULGARI Station (shifting it by 62m. to the east), thus completely “derailing” the initial schedule of expropriations, by demanding new ones. The result of this fact, of the subsequent amendment to the expropriation legislation, as well as of the numerous postponements of Court hearings for the determination of expropriation unit prices, was that these expropriations have not been completed until the present date.
THE LOCATIONS OF THE STATIONS WERE DECIDED IN THE ’80s
The Project’s main characteristics, i.e. its alignment and the locations of the stations, constitute a long-lasting choice of Thessaloniki Municipality which dates back to the ’80s and so far little change has been made to these characteristics purely for construction reasons.
CONTRACTOR’s CORPORATE PROBLEMS
During the Project, the owners of AEGEK, the J/V’s leader, have changed twice, a process that finally lead the Banks to be the owners of the company, since AEGEK was unable to fulfill its financial obligations, such as prompt payment of suppliers, personnel etc., and, thus, execute the works in the available and problem-free areas.
So far, ATTIKO METRO S.A. has fully adhered to the letter of the Law, as demonstrated by numerous audits, has exhausted all possibilities to resolve the problems of the Project and has proven in practice and in the most effective way its ability to manage Metro Projects in a manner fully acceptable and proven not only in Greece, but also on a European and international level, as far as their safety, reliability and aesthetics are concerned.
The construction of the Metro network is a complex Project and, as such, basic prerequisites are common understanding and cooperation. ATTIKO METRO S.A. is not engaged in this Project alone. This Project which involves ATTIKO METRO S.A., Thessaloniki Municipality and the Contractor will be executed successfully if the parties cooperate and assume their share of responsibilities, even when they disagree. It is needless to enumerate the well-known areas of delays which obstruct the progress of the Project; what is needed is to provide solutions.
ATTIKO METRO S.A. provides its assurances that it shall continue to operate and act as dictated by the Public Interest, always adhering to the Law in view of completing and delivering the Project to the citizens of Thessaloniki the soonest possible.
Read HERE the response to the Contracting Joint Venture in .doc format (114 KB)
