Customer: EE DG VII

Duration: January 1995 – January 1996

This study was assigned in 1983 by EEC, DG VII and had been concerned with the assessment of Community interest for a specific major transportation project in Greece. The project is the construction of a bridge over the Rion-Antirrion stretch near Patras in the North-Western side of the Peloponnese, and it is seen in relation to the construction of a new highway north of the Corinthean gulf, or an improved operation of the existing ferry service.
The results of the economic analysis in terms of the Internal Rate of Return (IRR) and the Net Present Value (NPV) of the alternatives are the following:
• The bridge shows an IRR value varying between 10-13% respectively to the type of the bridge.
• The road north of the gulf accumulates large disbenefits and can only be justified in terms of its regional development effects.
• The improved ferry operation which was tested as an alternative to the bridge produced an IRR similar with that of the bridge.
• The various sensitivity tests showed that there is not any significant sensitivity of the IRR in all cases.
The overall conclusion was that all projects showed strong advantages for the development of their respective area and can be considered as desirable on that respect although again the bridge because of its position in an area with high development potential is more likely to generate faster and greater growth.

Role of TREDIT:
– Traffic forecasts for the bridge and its surrounding network as well as the proposed highway.
– Economic analysis of the projects based on the traffic forecasts as well as other available data.
– Examination of the potential effects of the bridge on the economy of the area and on regional development.