kathimerini.gr
Crete's BOAK Highway: €400 Million 'Shadow Toll' Subsidy Approved
The Greek Parliament approved a €400 million, 35-year subsidy for the Crete North Road Axis (BOAK) project using a 'shadow toll' system; the concessionaire, Diktaion Concessions, will receive 64.62% of toll revenue, but this can decrease if investment return exceeds 14%.
- What is the funding mechanism for the Crete North Road Axis project and what are its immediate financial implications?
- The Crete North Road Axis (BOAK) project, from Heraklion to Chania, will receive a €400 million subsidy over 35 years from a 'shadow toll' mechanism. This mechanism will pay the concessionaire 64.62% of the tolls collected, but this percentage can decrease or become zero if the investment return exceeds 14% or 15%, respectively.
- How will the shadow toll system function, and what are the conditions under which the government's contribution might decrease or be eliminated?
- The 'shadow tolls' are based on temporary toll stations during construction. Once the project is completed, an electronic distance-based tolling system will be implemented. The public will pay for exempted trips (urban areas) via shadow tolls.
- What are the major risks and potential delays associated with the project, and what are the long-term financial implications for the Greek government?
- The project faces several risks, including potential delays due to archaeological excavations (maximum 4 months allotted) and land expropriation (1 year allotted). The reliance on a theoretical national electronic tolling system introduces uncertainty. The EU must approve the shadow toll subsidy.
Cognitive Concepts
Framing Bias
The article frames the 'shadow tolls' mechanism and potential for government overpayment negatively, emphasizing the risks and potential for financial mismanagement. The headline and introduction highlight the potential for significant public expenditure, shaping the reader's initial perception of the project as financially unsound. The repeated mention of potential overruns and the government's past mistakes in similar projects reinforces a negative framing.
Language Bias
The language used is largely neutral, although terms like 'potential pitfalls' and 'financial mismanagement' carry negative connotations. The repeated emphasis on costs and potential overruns creates an overall negative tone. More neutral terms could be used, such as 'financial challenges' or 'cost management strategies'.
Bias by Omission
The article focuses heavily on the financial aspects and potential pitfalls of the project, but omits details about the potential benefits of the improved infrastructure for the people of Crete. The lack of discussion regarding projected economic growth, improved tourism, and reduced travel times for residents represents a significant omission. Further, the article only mentions the concerns of Cretan MPs without giving the government's perspective. This omission leads to a biased representation of the political landscape.
False Dichotomy
The article presents a false dichotomy by framing the debate as either complete government funding or tolls paid by Cretan drivers. It fails to explore alternative funding models or a potential combination of approaches that could distribute the financial burden more equitably.
Sustainable Development Goals
The construction of the Northern Crete Road Axis (BOAK) is a significant infrastructure project that will improve transportation, connectivity, and potentially stimulate economic growth in the region. The project directly contributes to better infrastructure, a key aspect of SDG 9.