«Financing the Construction of Thessaloniki's Metro»

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«Financing the construction of Thessaloniki’s Metro» Samuel Salem Transport Authority of Thessaloniki (TheTA) 17 June 2019 ,Groningen 1 Metropolitan Unit of Thessaloniki SKG ATH 2 Thessaloniki Transport Facts 1,1 mil. (Nat. Census 2011) 287 pop/ km² 400 pass. cars/ 1000 inhabitants 620 busses 70 + 6 bus lines 67% private car, 23% PT, Taxi 4%, Motorbikes 4 %, Non- Motor. 2% (Mitsakis et al., 2013) 3 Thessaloniki Metro EXPECTED OPERATION END OF 2020 EXPECTED OPERATION END OF 2021 17 June 2019 ,Groningen 4 Thessaloniki Metro Characteristics Main Line Kalamaria Extension 9,6 km 4,8 km 13 stations 5 stations 18 trains 51 m length / 450 persons 90 sec headway (180 sec during 1st phase) 18.000 users/ hr/ direction 320.000 users/ day 5 Construction Timeline Main line & Kalamaria Extension 01/2005 Main Line 12/2020 2nd Stage of Expected Operation* Procurement 09/2003 04/2006 10/2012 Procurement as Contract Sign Initial ETC public work Commence of Works 12/2021 Kalamaria Extension Expected Operation 07/2013 07/2018 Contract Sign Initial ETC Commence of Works 6 Thessaloniki Metro Timeline Main Line 2003 Decision 1917 1987 2013 Kalamaria to tender as First Reference to Metro Revival of Metro by Municipal Extension Initiative Public Work signed 1976 1999 2006 First Registry First attempt to construct by co- Commencement of to the National Budget financing construction works 7 Thessaloniki’s Metro 8 Thessaloniki’s Metro 9 Thessaloniki’s Metro 10 Thessaloniki Metro Funding Main Line 1.615 Million EURO 10% 40% EU- Subisidies Kalamaria Extension Line 50% 640 Million Euro European Investment Bank - Loans 10% Greek State Funding 31% EU- Subisidies 59% European Investment Bank - Loans Greek State Funding Total EIB credit: 850 Million EURO 11 Tender Criteria Main Line • Technical and Financial Criteria • Technical criterion accounted for 25% • Financial criterion accounted for 75% Offers were based on preliminary study Kalamaria Extension • Only Financial Criterion Offers were based on finalised study 12 Project Facts • Main line construction period extended from 6.5 years initially to 14.5 years • EIB refused to finance the project for at least 10 years due to concerns about its feasibility • The Main Line was tendered with the method of “Study – Construction” which severely underestimated the expected difficulties during the actual construction • Main cause of delays – Archeological finds. Archeological works from an initial estimation of 15 million EURO raised up to aprox. 200 million EURO 13 Lessons Learned • Delays in construction of the Kalamaria extension were significantly lower (although not entirely understandable) • Overall level of planning and study elaboration was more meticulous and detailed • EIB demanded a C-B Analysis using a transport model prior to agreeing funding • Experience gained at all levels aided decision making and meeting timescales 14 Thank You ! Samuel Salem Transport Planner TheTA [email protected] 15.

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