Olympic project bonanza boosts construction sector
Greek construction companies are already carrying out projects related to the 2004 Olympic Games with a combined budget of about 2.4 billion euros, while more contracts, expected to be signed in the coming months, are estimated at more than 800 million euros. For several companies, the event provides a much-needed boost to their finances. Overall, it seems that the Olympic-project pie has been fairly divided, judging from the lack of complaints. A cursory look at the assignment list shows that projects were almost equally divided among the large groups, with the lion’s share going to Avax-J&P-ETETH, Hellenic Technodomiki-Aktor-TEV and GEK-Terna. These three groups are carrying out, either independently or within consortiums, projects worth more than 1 billion euros. In contrast to other Olympiads, the 2004 Games are proving to be a bonanza for construction firms as they are accompanied by a host of new infrastructure projects and sports installations. «In previous Olympiads, many of the installations were built on prefabricated or other temporary solutions,» say officials of Athens 2004, the organizers. Athens 2004 and government officials say there has been a gentlemen’s agreement between firms, and that this has prevented time-consuming objections and appeals from arising. Others, however, argue that this could lead the firms to demand, en masse, an increase in fees charged, given that budgets are tight. Moreover, as schedules are also tight, contractors have received promises of rich bonuses for «delivery on time.» Athens 2004 President Gianna Angelopoulos-Daskalaki, claimed earlier this month that six projects are ahead of schedule. These include the weightlifting center at Nikaia, the rowing center at Schinias, the gymnastics arena at Galatsi, the press and the media centers, and the equestrian center at Markopoulo. Work is also under way in Faliron and Aghios Cosmas, where sailing trials will be conducted this summer; at the nearby Peace & Friendship Stadium; at the Olympic Stadium at Eirini; and at the Kaftantzogleio Stadium in Thessaloniki. The 800 million euros’ worth of additional projects expected to be approved soon include the sprucing up of the Athens Olympics complex (including the main stadium, two arenas and cycling installations), projected to cost around 220 million, and building new installations at the old Hellenikon airport, with a budget of 117 million euros. Turnover boost Olympics projects are undoubtedly contributing to an impressive boost in construction firms’ turnover, but the ultimate test is obviously an increase in their profits. Some think this is doubtful and others are upbeat. All analysts point out, however, that the Greek firms have a far longer list of future contracts than their European competitors, almost none of whom succeeded in winning projects. Only Italy’s Impregilo, in a consortium with Terna, is participating in the civil engineering works for the Athens tram line. Astaldi, another Italian firm, is to supply the rolling stock for the tram, while Siemens, on the basis of an earlier agreement, is to provide the engines for the suburban railway. The ratio of approved future contracts to annual turnover is one of the basic indicators for construction sector analysts. Greek firms should retain their favorable ratio for the next five years if they get a share of the planned multitude of private financing schemes for road construction.
