The PPP project “VOAK” (Public-Private Partnership for the Northern Road Axis of Crete) is one of the largest and most critical infrastructure projects for Crete and Greece as a whole and its construction has been undertaken by a consortium of companies TERNA-AKTOR PARACHORESIS-INTRAKAT. The Northern Road Axis of Crete, which crosses the northern side of the island, connects the major cities of Heraklion, Rethymnon and Chania, as well as many ports, airports and tourist destinations. Specifically, the VOAK PPP project connects the Heraklion – Agios Nikolaos section and includes the construction of new motorway sections, the upgrading of existing road sections, as well as the construction of bridges and tunnels to solve access problems.
The importance of the project is multidimensional and has a great impact on many sectors of the social and economic life of Crete. Firstly, it significantly improves road safety, reducing the number of road accidents that are often seen on the old, inadequate road. This is vitally important, as Crete also records higher rates of road accidents than the national average[1] , which can affect the quality of life of residents and the safety of tourists.
Secondly, the project will boost transport and connectivity, reducing travel times between the main cities and improving access to key services such as hospitals, schools and businesses. Easier and faster transport will not only benefit residents but also visitors, further contributing to the development of the tourism sector. A safe and modern road network will help attract more tourists, who are a key pillar of the Cretan economy.[2]
In addition, the development of road infrastructure is expected to facilitate the logistics chain, making the transport of goods faster and more efficient. This will enhance the competitiveness of local products, such as olive oil, wine and other agricultural products, and create new investment opportunities in the region.
The PPP VOAK project will stimulate economic activity and create new jobs, both during its construction and after its completion (during the operational period), enhancing the sustainable development of the island. The public-private partnership brings in expertise and capital, ensuring the quality and speedy execution of the project, while ensuring its long-term operation and maintenance.
Overall, this project is a cornerstone for the future development of Crete, contributing to the improvement of the lives of its residents, further economic revitalization and positioning Crete as a central hub in the eastern Mediterranean. Investing in high quality infrastructure is an important step in making the island more competitive, sustainable and accessible for both residents and visitors.
FCNC, having assumed the role of Model Auditor, offered the following services for the effective implementation of this project:
- Auditing the financial model (bid model) submitted by the Consortium in the framework of the binding offer and the revised financial model at the financial close of the project (financial close model) in order to ensure that the calculations performed do not contain computational and other errors.
- Verification that the financial model (bid & financial close model) has been prepared based on the requirements and specifications of the Tender Documents for Projects, correctly and accurately reflects the provisions of the Partnership Agreement and its Annexes, is in compliance with the tax and accounting legislation of the country and is in accordance with the Tender Documents.
- Contributing to the implementation of the financial closure process (control of refinancing benefits, adjustment of key interest rates).
[1] Detailed data per region are included in the relevant bulletin from the Hellenic Statistical Authority for 2022 available here in English.
[2] For more information on tourism in the region of Crete you can see the Action Plan 2030 available here in Greek.