The bill was submitted to Parliament for the assignment of the barren railway lines to TRAINOSE (now Hellenic Train) for a period of 10 + 5 years, for 50 million euros per year.
That is, it is an agreement of 750 million euros over a period of 15 years, which, if VAT is added, amounts to 930 million euros.
For its part, Hellenic Train (the company belongs to the Italian FS group) is called upon to carry out a certain number of routes, in certain geographical areas.
In particular, the provisions of the contract provide, among other things, the following:
-The Greek government assigns directly to the provider (TRAINOSE S.A.) the provision of the defined “Public Service Obligations” of passenger rail transport.
Accordingly, the provider is obliged to provide said services in specific geographical areas, according to the defined characteristics and specifications.
– It is stipulated that, the Greek public will pay the provider an amount of up to 50 million euros without VAT, as compensation for the operation of the contract, which will be deducted annually and/or every six months from the imposed penalties provided for in the contract and the part that the scheduled itineraries were not carried out at the responsibility of the provider.
– In the context of the implementation of the above, a minimum profit for the provider is set at the amount of 2 million euros per year.
– In the event of a positive financial result, the Greek government receives 20% of the net revenue, while the remaining 80% is provided as an efficiency incentive to the provider.
– The provider collects and manages the revenues resulting from the fulfillment of the obligations to provide the services.
– The annual compensation paid by the Greek government up to the amount of 50 million without VAT includes:
1. the compensation of TRAINOSE for the provision of services, up to 21 million euros without VAT,
2. the fees for the use of the infrastructure for the performance of the services, which are attributed to the manager of the infrastructure, through TRAINOSE, up to 19 million euros without VAT and
3. the rental price of the rolling stock, used to perform the services up to 10 million euros without VAT.
The duration of the contract is set at ten years (from 1.1.2022 to 31.12.2031), with the possibility of extension for another five years, subject to completion of the planned capital investment by Hellenic Train (formerly TRAINOSE).
Fotis Foteinos
Source: Capital
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