Press Release - Decision of the Inter-Ministerial PPP Committee to amend its decision (dated 30.01.2008) related to the project “Implementation of residences, nursery schools and sports facilities for the Army and the Air Force” for the Ministry of National Defense, with the inclusion of additional residences, a nursery school and sports facilities for the Hellenic Navy (in Crete and Piraeus).
This PPP project involves the design, financing, construction, maintenance and facility
management of residences, nursery schools and sports facilities for the Hellenic Navy for a total
period of 27 years. Contracting Authority of this project is the Ministry of Defence.
This project is part of the strategic plan of the Ministry of Defence, for the improvement of
the living conditions of its personnel. Additionally, through this project, the Ministry of Defence
wishes to support the personnel going through the consequences of the frequent transfers and also
to reduce the operating and energy expenses.
The inclusion of the above facilities to the already approved PPP project, improves the value
for money of the project, given that bigger economies of scale are achieved, by the grouping of
similar projects, the savings related to the tender procedures and the preparation of the Public
Sector for its implementation.
The estimated indicative cost (NPV) of the availability payments that will be made by the
Contracting Authority to the private partner that will undertake the project amounts to 20 million
euros, plus VAT. The heavy maintenance and insurance costs of the buildings are not included in
this figure and are estimated up to 20% of the total budget of the project. The final cost to be
paid by the Greek State will be determined, upon the conclusion of the contract award
procedure.
