GEK TERNA, AKTOR, IPTO and Digital Realty are building infrastructure in road networks, energy, irrigation, housing and technology.
The island of Crete has fundamental dimensions that provide all the elements for an ideal investment destination with high returns.
Its geographical location, which is a crossroads of three continents, its agro-food wealth and tourism with 305 days of sunshine a year are among the island’s unique advantages, according to a special study by the National Bank.
Crete, as always results from the same study, is evolving into a digital and energy hub as well as a transport hub, and the signing of the concession contract for the Heraklion – Chania road section at VOAK on May 9 is the occasion to see the major infrastructure projects that are underway on the island.
Tourist traffic with the new airport in Kastelli, Heraklion is expected to skyrocket as it can serve 15 million passengers compared to 9 million today.
Crete’s strong cards
Crete’s share in the country’s investments is expected to approach 6.5% in the next five years from 4.2% in early 2000, it has a quarter of the country’s 4 and 5 star hotels and achieves strong exports of agri-food products with prices 20% higher than the rest of Greece in international markets with 27 PDO products.
Tourist traffic with the new airport in Kastelli, Heraklion is expected to skyrocket as it is capable of serving 15 million passengers compared to 9 million today.
It is estimated that projects worth 5 billion euros are underway in Crete, transforming the island into a hub for the transport of energy, digital data, as well as passengers and products.
Research and academia
According to the National Bank of Greece study, Crete also stands out for academic innovation.Public spending on research and development in Crete is 1.3% of GDP, compared to 0.6% in Greece, according to 2022 data.
The lack of infrastructure in Crete
The aforementioned figures show enormous development prospects for the island, which, however, lacks infrastructure. Major projects in the road network, to address water scarcity, to enhance energy self-sufficiency and energy exports, as well as in ports and an airport, are currently in full swing.
On May 9, the concession agreement for the largest section of the Northern Road Axis of Crete (VOAK) was signed. The VOAK, with a total length of 300 km, is a project worth 2.5 billion euros, and the Heraklion – Chania section, which is being undertaken by GEK TERNA, is worth approximately 2 billion euros.
It is estimated that projects worth 5 billion euros are underway in Crete, transforming the island into a hub for the transport of energy, digital data, as well as passengers and products.
Large Greek and international business groups take part in the investments, ensuring high returns for shareholders.
VOAK is the largest motorway under construction in Europe
On May 9, the concession agreement for the largest section of the Northern Road Axis of Crete (VOAK) was signed. The VOAK, with a total length of 300 km, is a project worth 2.5 billion euros, and the Heraklion – Chania section, which GEK TERNA is undertaking, is worth approximately 2 billion euros. The motorway will be constructed within a five-year period and, together with the Chania – Kissamos option project, will reach 187 km.
The VOAK will connect Kissamos, Chania, with Sitia, passing through eight municipalities.
One of the sections of the motorway, Hersonissos – Neapoli, 22.4 km long, will be constructed with a PPP of 350 million euros and the project will be run by GEK TERNA – AKTOR.
The third major section of the VOAK is the Neapoli – Agios Nikolaos section, 14.5 km long and worth 190 million euros. The project is public and has been undertaken by AKTOR.
The airport in Kasteli, Heraklion
The projects for the airport in Kastelli, Heraklion, are also progressing at a rate of 55%.
The new Heraklion International Airport of Crete has a budget of 500 million euros and is being built by TERNA. Shareholders are: The Greek State (45.90%), GEK TERNA S.A. (32.46%) and GMR Airports Ltd (21.64%).
Electrical interconnection between Attica and Crete
The large 1 billion euro project for the electrical interconnection of Crete with Attica, with a capacity of 1,000 MW, will also be put into operation during the summer.
The operation of the cable implemented by IPTO will enable the development of 2,000 MW of RES projects, while the island will gain energy self-sufficiency.
The final tests and inspections of the equipment at the Damasta Converter Station in Heraklion are in the completion phase, a development that marks the start of the trial operation of the Crete-Attica electrical interconnection.
The management of IPTO and its subsidiary and implementing body of the major energy project, Ariadne Interconnection, recently inspected the completed facilities in Damasta, which are expected to be electrified next week, starting the injection of reactive power into the Crete system. At the same time, on the Attica side, a trial electrification of the 400 kV cable system is being carried out between the Koumoundouros Converter Station and the adjacent Extra High Voltage Center, which is the connection point of the electrical interconnection with the mainland system. System tests of the system as a whole will also begin within the month.
Projects to address irrigation problems and flooding in Crete also amount to close to 500 million euros.
The implementation of the Crete-Attica interconnection was carried out by world-class contractors such as Siemens Energy, Nexans, Prysmian and NKT, while the two most modern ships in the world, Aurora and Leonardo da Vinci, were used to lay the submarine cables.
Dams in Crete
Projects to address irrigation problems and flooding in Crete also amount to close to 500 million euros.
Tens of thousands of acres of agricultural land will be irrigated, while tenders for the project contractors are underway.
Recently, AKTOR undertook a complex and large infrastructure project in Lassithi, Crete, which will offer thousands of farmers a solution to the problem of water scarcity and limited water reserves, but will also shield the area from intense flooding.
On April 8, Digital Realty, a leading global provider of cloud- and carrier-neutral data center, colocation and interconnection solutions, announced the opening of its first data center in Heraklion, Crete.
This is the project, worth 53 million euros, “Complementary works of the Bramianos reservoir, flood control works of Gra Lygia and the Myrtos dam of the Regional Unit of Lassithi, Crete”, which consists of three very important and distinct parts: 1) The construction of the complementary works of the Bramianos dam, 2) the construction of flood control works in the area and 3) the construction of the Myrtos dam.
The tender process for the PPP project to exploit the water potential of the Tavronitis River is underway. Its budget amounts to 267 million euros.
Another project that is expected to be put out to tender is the construction of the dam in Platys, Rethymno. The project involves the construction of the dam, the construction of a water transport pipeline in the Messara plain and the construction of an irrigation network in areas of the Rethymno Regional Authority. The project, with a tender budget of 175 million euros, will irrigate 43,500 acres.
Student dormitories in Crete
About two months ago, the PPP contract was signed for the construction of two student dormitories with rooms and apartments totaling 4,846 beds, of which 2,710 in Rethymno and 2,136 in Heraklion, with a total building area of over 100,000 sq m. implemented by AKTOR and amounts to 255 million euros.
Data center
On April 8, Digital Realty, a leading global provider of cloud- and carrier-neutral data center, colocation and interconnection solutions, announced the opening of its first data center in Heraklion, Crete.
This strategic investment strengthens the Mediterranean’s role as a critical hub for global digital connectivity, upgrading infrastructure and interconnections to key markets.
Digital Realty’s new data center, HER1, is the first carrier-neutral facility in Crete, uniquely positioning the company as the only world-class provider on the island. HER1 strategically connects Europe with Asia, the Middle East and East Africa through a dense network of high-connectivity submarine cables.