EIB loan will help finance Olympic costs
The Economy Ministry is considering taking out a loan, worth anywhere from 1 to 1.5 billion euros, from the European Investment Bank (EIB) to finance several construction and infrastructure projects which must be completed ahead of the 2004 Olympic Games. Prime Minister Costas Simitis had said that spending on construction projects for the Olympics ought to be kept to at 4.4 billion euros. According to sources, this limit will almost certainly be exceeded, with most estimates putting the cost at close to 5.3 billion. Most of the infrastructure projects are not part of the government’s Olympic project, but many of them have to be completed by the opening of the Games, on August 13, 2004. These include the extension of Metro Line 3 to Stavros, budgeted at 410 million euros, the planned suburban railway from Acharnai to Athens airport (190 million), the two tramway lines from central Athens to Neo Faliron and Glyfada, respectively (originally budgeted at 396 million euros, now estimated at 440 million), the relocation of the air force training field from Elefsina to Tatoi, north of Athens, (111 million), the Piraeus coastal zone (176 million) and others. The fact that these projects are not strictly for use during the Olympics has enabled their financing through the European Union’s Third Community Support Framework (CSF III). About 1 billion euros’ worth of such projects have been partly financed through CSF III. Another 587 million euros will be spent on the accommodation of 50,000 police and the accommodation and catering for 80,000 volunteers. These sums are separate from the organizing committee Athens 2004’s budget of just over 2 billion euros, of which 275 million will be provided by the government. The Athens 2004 budget is certain to be balanced and may even yield a small profit. Transport and Communications Minister Christos Verelis yesterday defended the usefulness of two of the infrastructure projects – the suburban railway and the tramway – and decried the actions of those who opposed the projects, including a sit-in across railway lines that blocked both train and car traffic. Verelis promised that the suburban railway will be built in a manner that will not block traffic. As for the tramway, he emphasized its increased adoption abroad as an evironmentally friendly alternative. Greece has witnessed the unique spectacle of citizens protesting that the planned tramway will «degrade» the environment and even threaten the stability of buildings. Varsakis said the Greek market still has scope for growth despite an estimated 70-percent penetration rate. Stripping out an estimated 20 percent of inactive subscribers, the actual rate is much lower, he said.
