Greek Municipalities΄ projects stop due to war in Ukraine
Dimitris Papastergiou
18 Apr 2022
/ 17:43
ATHENS. Letter from the President of the Central Union of Greek Municipalities (KEDE) Dimitris Papastergiou to the Minister for Infrastructure and Transport.
The President of the Central Union of Greek Municipalities (KEDE) Dimitris Papastergiou stressed that it is necessary for the Ministry for Infrastructure and Transport to take immediate measures and decisions in order to deal with the price increases and proceed smoothly with the implementation of infrastructure projects, which are already being implemented or are to be implemented in all Municipalities of the country.
The President of KEDE sent a letter to the Minister for Infrastructure and Transport Kostas Karamanlis expressing the strong concern of the country's Mayors about the impact of the price increase of infrastructure projects on the smooth implementation of such projects that are already being implemented or are to be implemented in the next period.
He said that the problem started at the end of 2020, but has become more intense in the last few weeks, since the war started in Ukraine.
Increases of up to 200% in materials
In particular, he said that today many water supply and sewerage projects with secured funding from the 'Philodimos' programme have stopped being implemented, due to the large increase in the price of PVC pipes, which exceeds 100%.
A similar problem arises in the implementation of projects concerning new building infrastructure and metal buildings, due to the increase in steel and construction iron prices by more than 100%. As far as road surfacing projects are concerned, the problem is even greater as the cost of asphalt has risen by 200%.
As a result, he said, the projects already running have stopped, while contractors are hoping that the prices will start falling at some point in the future and the projects will continue.
In some other cases, contracting companies that have undertaken projects following tenders, do not sign the contracts, preferring the forfeiture of the guarantees they have given than to undertake a project that they cannot implement financially.
Price revision
“For the local government, it is important not to stop the projects that are necessary to enhance local development and employment, but also to improve the daily life of citizens.
Especially during this period, when there is secured funding through programmes such as Philodimos, Antonis Tritsis, the Recovery Fund and ESPA, we must find a way for these funds to be used as soon as possible and there should be no delay in the implementation of projects,” said Mr. Papastergiou.
Therefore, he said that “it is necessary for the Ministry for Infrastructure to immediately issue a decision that will provide new, realistic price revisions for all work related to the carrying out of public works.
The Municipalities should not pay the extra costs
It is also necessary to ensure that the increased cost will be covered by the programmes that fund the projects of our Municipalities. At the same time, we consider it necessary to have a legislation by your Ministry to extend the deadlines of all public works contracts.”
"As the Central Union of Greek Municipalities, we believe that emergency situations, such as the ones we are experiencing now, require urgent and immediate decisions.
It is necessary to find a realistic and effective solution through our collaboration to the problem that the Municipalities and construction companies are facing, in order not to deprive our local communities and the country of essential projects that will ensure development prospects and a better future for all," concluded Mr. Papastergiou.
Source: news-ta.gr
The President of KEDE sent a letter to the Minister for Infrastructure and Transport Kostas Karamanlis expressing the strong concern of the country's Mayors about the impact of the price increase of infrastructure projects on the smooth implementation of such projects that are already being implemented or are to be implemented in the next period.
He said that the problem started at the end of 2020, but has become more intense in the last few weeks, since the war started in Ukraine.
Increases of up to 200% in materials
In particular, he said that today many water supply and sewerage projects with secured funding from the 'Philodimos' programme have stopped being implemented, due to the large increase in the price of PVC pipes, which exceeds 100%.
A similar problem arises in the implementation of projects concerning new building infrastructure and metal buildings, due to the increase in steel and construction iron prices by more than 100%. As far as road surfacing projects are concerned, the problem is even greater as the cost of asphalt has risen by 200%.
As a result, he said, the projects already running have stopped, while contractors are hoping that the prices will start falling at some point in the future and the projects will continue.
In some other cases, contracting companies that have undertaken projects following tenders, do not sign the contracts, preferring the forfeiture of the guarantees they have given than to undertake a project that they cannot implement financially.
Price revision
“For the local government, it is important not to stop the projects that are necessary to enhance local development and employment, but also to improve the daily life of citizens.
Especially during this period, when there is secured funding through programmes such as Philodimos, Antonis Tritsis, the Recovery Fund and ESPA, we must find a way for these funds to be used as soon as possible and there should be no delay in the implementation of projects,” said Mr. Papastergiou.
Therefore, he said that “it is necessary for the Ministry for Infrastructure to immediately issue a decision that will provide new, realistic price revisions for all work related to the carrying out of public works.
The Municipalities should not pay the extra costs
It is also necessary to ensure that the increased cost will be covered by the programmes that fund the projects of our Municipalities. At the same time, we consider it necessary to have a legislation by your Ministry to extend the deadlines of all public works contracts.”
"As the Central Union of Greek Municipalities, we believe that emergency situations, such as the ones we are experiencing now, require urgent and immediate decisions.
It is necessary to find a realistic and effective solution through our collaboration to the problem that the Municipalities and construction companies are facing, in order not to deprive our local communities and the country of essential projects that will ensure development prospects and a better future for all," concluded Mr. Papastergiou.
Source: news-ta.gr
