The government will pay special compensation and bonuses for major projects under the jurisdiction of the Ministry of Infrastructure and Transport, with the aim of ensuring that funds from the Recovery Fund (TAA) are not lost. The goal is to prevent the loss of funds after August 31.
The procedures are set forth in a relevant proposed provision included in the omnibus bill drafted by the Ministry of National Economy and Finance. The provision covers major projects (with a budget exceeding 100 million euros) being carried out under the sectoral program of the Ministry of Infrastructure and Transport with funding from the Recovery Fund. The Ministry of Infrastructure is the largest recipient of Recovery Fund grants, which total more than 2.4 billion euros.
The special “fast-track” procedure described in the bill is intended to retroactively cover the… “slow track” procedures traditionally followed in Greek public works projects, but at a rather “stingy” cost to taxpayers, which cannot be precisely determined at this stage:
- For any major projects where delays—for various reasons—push completion schedules beyond the deadlines set by the Recovery Fund program, the government will provide contractors with additional compensation to complete them more quickly; this compensation will be deducted from the public investment program, meaning it will be paid for with national funds.
- Thus, the government estimates that ultimately no Recovery Fund (TAA) funds will be lost, although there will be an indirect loss, which will be covered by the state budget.
- The proposed regulation does not rule out the possibility that the projects will not be completed on time under this procedure; in that case, the TAA funds will be lost, and the contractors will be required to repay, with interest, any additional compensation they have received.
What the new regulation provides for
Specifically, under the proposed regulation:
- The Competent Authority is granted the authority to shorten or modify the approved deadlines for projects co-financed by the TAA, for the sole purpose of aligning them with the program’s strict timeframes. The relevant decision shall be issued within the necessary timeframe and immediately communicated to the contractor.
- The contractor’s right to compensation is established, provided that the contractor delivers the project on time within the new, shortened deadlines. This compensation is recorded in a Summary Table of Works (STW) in a separate section.
- A short and exclusive deadline is established for the contractor to file an objection. When filing an objection, the contractor must submit an alternative schedule. Filing an objection suspends the effects of the decision to shorten the deadlines.
- The contractor’s acceptance of the Competent Authority’s decision on the claim for compensation constitutes, at the same time, a waiver of any other judicial or administrative remedy, in order to ensure the rapid progress of the project.
- A special, expedited dispute resolution procedure through arbitration is established. This includes a three-member arbitral tribunal, strict deadlines for the appointment of arbitrators, the option of expert testimony, the issuance of an award within four months, and the immediate enforceability of the arbitral award. This procedure also applies to the resolution of any disputes that may arise until the project’s completion.
- If the project is not completed on time, any compensation that has been paid becomes due and payable with interest (at the statutory default interest rate) and is offset against the contractor’s debts or letters of guarantee.
- The compensation constitutes an eligible expense and is covered by the National Component of the Public Investment Development Program, as part of the sectoral development program of the Ministry of Infrastructure and Transport.
A 2.4 billion project portfolio with endless problems
These unorthodox procedures for implementing the Ministry of Infrastructure and Transport’s projects reflect the serious problems in the planning and implementation of major engineering projects included in the Recovery Fund.
The ministry has the largest portfolio of projects being implemented with grants from the Recovery Fund, with a total budget of 2,402,740,984 euros, according to the latest available data (November 2025).
It was clear from the outset that the systemic problems plaguing public works in Greece, combined with the Recovery Fund’s strict deadlines (which provide for “sudden death” —loss of funding in the event of delays)—would create explosive problems as the deadlines to which the government has committed itself to Brussels approached.
The package of projects being implemented by the Ministry of Infrastructure and Transport—which will now require “bonuses” for contractors to ensure they are completed on time (if they are completed at all…) includes strategic initiatives ranging from the construction of major highways and the reconstruction of disaster-stricken areas to the green transition of public transportation and organizational/digital reform.
Specifically, the projects comprising the 2.4 billion euro budget are as follows:
- Northern Road Axis of Crete (BOAK): The construction of the long-awaited highway that will transform Crete’s transportation landscape and improve road safety on the island.
- Central Greece E-65 Motorway (Northern Section): The completion of the northern section of the motorway, which will connect Central Greece with the Egnatia Motorway, thereby boosting regional development.
- Upgrades to Regional Airports: Targeted investments to modernize regional airports, with the aim of boosting tourism and local connectivity.
- Restoring Accessibility Following Storm “DANIEL”: One of the ministry’s most urgent and critical projects, involving the reconstruction of bridges, road networks, and related infrastructure in areas (primarily in Thessaly) that were devastated by the natural disaster.
- Electrification of Public Transportation: Renewal of the public transportation fleet with buses featuring low-emission technology, aiming to reduce the environmental footprint of urban transportation.
- Equipping bridges with modern sensor systems (“smart bridges”) for real-time structural monitoring, ensuring preventive maintenance and user safety.
In addition, the portfolio includes an integrated infrastructure and transportation management system and organizational reform in the railway sector.