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The basic principles of the draft law for the restructuring of OSE – ERGOSE

The basic principles of the draft law that will reorganize OSE and ERGOSE were presented during the cabinet meeting under Prime Minister Kyriakos Mitsotakis, by the Minister of Infrastructure and Transport, Mr. Kostas Karamanlis, and the Deputy Minister of Infrastructure, Mr. Giorgos Karagiannis.

In its basic principles, the bill provides for:

1. Separation of companies

With the bill, the companies OSE S.A. are separated. and ERGOSE S.A., with a clear separation of their responsibilities and all the shares of ERGOSE S.A. is transferred to the Greek State.

2. Role of the Ministry of Infrastructure & Transport

The ministry will have the supervision of the two companies and through the National Strategic Transport Planning will determine the long-term planning of the projects, while at the same time it is responsible for establishing the corporate governance framework of the companies.

3. Performance Agreements

The implementation of the plan will be monitored through annual performance contracts in terms of the achievement of the objectives between the Ministry of Infrastructure and Transport and each of the two companies, according to their new responsibilities. The annual remuneration of the presidents and managing directors will depend on the achievement of these objectives.

4. Selection of Commands

The election and composition of the administrations will be the exclusive competence of the Ministry of Infrastructure and Transport, based on the law on the Staff State. For the selection of the administrations, a Selection Committee will be set up, which will consist of at least three members: representative(s) of the ministry, a representative of the EESYP and an independent evaluator with international experience in human resources matters.

5. Competencies of Companies

OSE – as the Infrastructure Manager – will undertake the management of the railway infrastructure and all the work required for the railway network to be in operation.

ERGOSE – as the Project Manager – will focus on undertaking new railway infrastructure projects outside the operational network, such as new alignments and extensions of the existing network. ERGOSE will also undertake upgrade works on the existing network that require an interruption in the operation of the line (such as undergrounding the line), but the responsibility of the line will remain with OSE.

The Minister of Infrastructure and Transport, Kostas Karamanlis, among other things, pointed out that with this specific intervention he is part of the wider planning “with a vision, in 5 years from today, for Greece to have turned into a real hub of Southeast Europe. And we are achieving this with an investment plan 4.5 billion in very important railway projects. We are progressing to upgrade the role of our ports, connecting them with the railway, so that our country has the opportunity to play a leading role as a multiple hub for infrastructure, transport and energy in the wider region. We are giving special emphasis in the ports of Thessaloniki and Alexandroupolis. That is, we are changing the production model so that all of this has been implemented by 2028. Because now is the time to take advantage of the geopolitical and geostrategic position of Northern Greece, and the port of Alexandroupolis. Now is the time we need to create a strong and reliable freight hub to bypass the straits towards the Black Sea countries but also further afield”.

For his part, the Deputy Minister of Infrastructure, Mr. Giorgos Karagiannis, emphasized: “With the OSE and ERGOSE restructuring bill, we are attempting to improve their operation and upgrade the services provided. With this reform, we will make the medium attractive, we will eliminate the chronic delays in the development and modernization of the network. At the same time, we will increase its competitiveness by paving the way for digital transformation by exploiting new technologies. Our aim is for the railway to gain the position it deserves and for citizens to have at their disposal quality services”.

Source: AMPE

Source: Capital

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