Tenders for the ATHENS METRO extensions

Some construction firms- aiming at promoting their own business plans- give out on the Press some false and unfounded allegations concerning the ATTIKO METRO S.A. tenders as to the award of the Athens Metro projects. Indeed, the allegations of the construction firms, which were disqualified due to lack of required experience, are adopted by some media violating professional ethics seeking for the opinion of those who serve public benefit.

ATTIKO METRO S.A., a Company whose executives are of high vocational training, is internationally acknowledged for the execution of high quality works in the framework of the construction of the Athens Metro and ought to provide accurate information as to the tender procedures for the Metro extensions to Helliniko and Aghia Marina (Haidari):

1. The tenders for the Athens Metro extensions were carried out by ATTIKO METRO S.A. based on absolutely transparent procedures in compliance with Greek and Community legislation. The above have been also ensured by the rejection of the total of the 44 objections, appeals, petitions for interim measures and complaints submitted by the companies participating in the tender procedures. Both the Greek Courts and the European Committee have considered unfounded the allegations of those disqualified because they had not obtained sufficient experience and the call for the risk that there may be losses of funds was only auxiliary.
2. Throughout these tender procedures, public benefit was ensured since there was high competition, given that 4 consortia comprising 16 Greek and foreign companies (namely, 11 companies were foreign companies). The result of this competition was the achievement of the most beneficial to the State financial offers for such a complicated project as the Metro. For the first time, following 15 years of Metro construction works in Greece, such a low construction price was achieved (75 million euros/km as compared to the projects already executed which have cost 110 million euros/km.).
3. The financial offers achieved, rank the said projects related to the Athens Metro extensions among those whose cost estimate is one of the lowest in Europe, as indicated in the table below.

Sources: www.urbanrail.net, www.uitp.com, www.ita.com

In any case, it is pointed out that the cost for the construction of a metro project depends on its technical particularities and for this reason special attention should be paid when comparing the cost of the Athens Metro, which was constructed in a particularly seismic area, where there are various and often difficult for tunnel boring soil types and a large number of archaeological finds in the sub-soil, with the cost of projects whose technical characteristics are easier, such as the Madrid project (null seismic activity, absence of archaeological finds, soils of good quality, etc.).

An attempt was made to compare Torrino light type metro (with three cars per train and small stations, 60 m. long) with the Athens Metro (with six cars per train and large stations, 110 m. long), which is completely infeasible. In addition, it is not possible to compare the Athens Metro extensions with the Constantinople metro extensions under construction, given that they present some significant problems and the final cost of the project cannot be estimated easily and accurately.

4.  The discounts achieved for this complicated project related to the Metro extension to Helliniko and Aghia Marina (Haidari) are to the benefit of the State since:

• they are higher than other similar projects related to metro extensions already put to tender until the present day (towards Doukissis Plakentias, towards Egaleo and towards Aghios Dimitrios).
• the computation of the cost estimate for the construction of the projects by ATTIKO METRO S.A. results from a detailed and accurate study, which substantiates minutely the project cost estimate, thus oblitarating any discount margins that the bidding companies can give.
• the computation of the cost estimate for the construction of the projects was made on the basis of the unit prices of the new uniform invoices of YPEHODE, which concern prices lower than the previous prices of the detailed invoices by 40 to 50%.
• The cost estimates of the projects relate to Lump Sum Price and according to the contractual documents the candidates cannot get an extra payment for any additional works, including in the financial offer all contigencies involved in so a complicated underground project as the metro construction. Therefore, the business risk involved in similar projects is high, thus reducing the possibility to depress the cost estimate of the project (discount).

Therefore, any comparison between the said metro projects and other projects- often not so complicated ones- which have recently been put to tender in Greece is inappropriate.

5.  The European Committee Services during the official bilateral co-operation for the provision of clarifications with
regard to the denunciations for the project award, which was carried out last week, did not cause any problems
to ATTIKO METRO S.A. with regard to these tender procedures, thus, substantiating anew their official written
intention to put aside the denunciations.

Based on the above, it results that, throughout the said tender procedures,ATTIKO METRO S.A. abided by the lawfulness and the transparency of the projects and defended public benefit. It is therefore worth questioning how these construction firms, which were disqualified from the tender procedures related to the Metro extension projects due to lack of experience, have been involved in a systematic struggle for ATTIKO METRO S.A. work depreciation and damage of the character and the reputation of the Administrative officials and the executives of the Company due to the release of inaccurate allegations to the Press and the dispatch of letters via which personal attacks are made on ATTIKO METRO S.A. executives.

ATTIKO METRO S.A. will defend in the most effective way the lawfulness and the transparent procedures throughout the tenders for the projects’ award, the public benefit and the reputation of those who serve it. The recourse to the Justice is the only method of protecting both the prestige and the reliability of ATTIKO METRO S.A., as well as the personal and professional integrity of the members of ATTIKO METRO S.A. Administrative members and its executives.

For this reason, ATTIKO METRO S.A., its administrative officials and its executives have instructed attorneys-at-law to testify before the Multi-Membered First Instance Court of Athens requesting the withdrawal of the insulting statments and the payment of a compensation for moral damage due to the acts of the companies MICHANIKI S.A,, Zagope Construcoes e Engenharia S.A., Construtora do Tamega S.A., Efacec Engenharia S.A. and Sociedade de Construcoes Soares Da Costa S.A.

For further information you may contact the Public Relations Division of ATTIKO METRO S.A. over the phone 210-6792031, by fax 210-6726126, or send an e-mail to mailto:[email protected]