RRF Projects Under Pressure: Mitsotakis Demands Rapid Completion by 2026

No Extensions, No Excuses

Prime Minister Kyriakos Mitsotakis has sent a clear and uncompromising message to the country’s four largest construction groups: there will be no deadline extensions for projects funded under the Recovery and Resilience Facility (RRF), with a total value of around €2.5 billion.

The final completion date for all RRF-backed projects is August 2026. Should the works fail to meet that deadline, the unspent EU funds will be forfeited, and the shortfall will be covered by the national budget.

During a high-level meeting at the Maximos Mansion, Mitsotakis and Infrastructure & Transport Minister Christos Dimas met with the heads of GEK TERNA, AKTOR, AVAX, and Metlen to assess the current pace of implementation and the barriers threatening progress.

Bureaucracy and Delays Slow Progress

A series of administrative and technical obstacles are hindering completion of several major infrastructure projects, including:

• Cumbersome bureaucracy and slow payment procedures
• Pending expropriations and court appeals
• Delays due to ongoing archaeological excavations

According to government sources, the Prime Minister requested detailed progress briefs (“cheat sheets”) from each company, outlining specific obstacles, in order to implement immediate corrective actions.

Projects at Risk of Derailment

Several flagship initiatives are already lagging behind schedule, including:

• Restoration of road and rail networks in Thessaly following the devastating floods
• Major irrigation and water supply projects across the country

Brussels has already raised concerns, warning of potential delays that could jeopardize fund absorption. To mitigate losses, the government is employing a system of “internal reallocations”, prioritizing mature projects that can be completed on time over those that are severely delayed.

The VOAK Challenge and Corporate Shifts

A special focus remains on the Northern Road Axis of Crete (VOAK) — Greece’s largest ongoing road project. The central section Chania–Heraklion, with an estimated budget of €2 billion, includes €200 million in RRF financing.

However, following AKTOR’s acquisition of Aktor Concessions, corporate balance within the consortium has shifted, raising questions about control and the allocation of the concession’s financial benefits.

Delays and Compensation Burden the State

Project delays do not only threaten EU funds — they also create direct fiscal burdens for the Greek state.

The Chersonisos–Neapoli section of VOAK, budgeted at €350 million under a PPP scheme, has seen its timeline extended by 498 days (16.3 months), pushing completion to August 2028. The government must also pay €124.5 million in compensation to contractors GEK TERNA and AKTOR for delays caused by late delivery of construction sites.

According to the Ministry of Infrastructure, the contractors bear no responsibility, as site handovers occurred months behind the original schedule.

Analysis: Political Pressure Meets Economic Reality

The push for RRF project completion is both a political and economic imperative:

• Greece cannot afford to lose billions in EU recovery funds.
• Administrative acceleration and tighter project management are urgently needed.
• Resolving corporate and concession-related frictions is critical for smooth implementation of large-scale infrastructure projects.

Mitsotakis’s message underscores a broader reality: Greece must “step on the gas” in public works if it wants to turn EU funds into tangible results. Without strategic coordination, transparent oversight, and timely execution, the risk of financial and political fallout looms large.

Source: pagenews.gr