ECON: One step away from the top 7th grade degree

A decisive step was taken yesterday (25.11.2024) or to obtain the 7th-class ergonomic degree, as the company’s merger with the Energy Node was approved. With this move now, Athanasios Shipsa’s company, EKTER, can claim larger public works and compete with other powerful construction companies, such as METKA, AVAX, AKTOR and TERNA. At the same time, it strengthens its position in the tourism industry, as it saw in the plans an investment of more than 50 million in Paros, while also claiming the construction of the hotels of Golman Sachs in Halkidiki. With the merger of the Energy Node company, it is estimated that by the end of 2024 the company’s own funds will reach 40m euros, fixed assets will also be formed at 40m euros, while the annual turnover is expected to reach 70m euros. With these sizes, HEPT S.A. will approach the acquisition of the required criteria for its ranking in the highest order, gaining the ability to claim large projects without restrictions. Without the merger, achieving this goal would require many years, which makes completion of the merger extremely important. At the same time, the merger with Energy Node S.A. It creates new perspectives for EKTER S.A. in the tourism sector. The Energy Node S.A. is active in the hospitality industry, holding the top 5 star unit in Paros, Summer Senses. The addition of this company to the group strengthens the position of EKTER S.A. in the tourism sector, providing know-how and support for the development of the new hotel project in Paros, a total investment amounting to around 55m euros. As part of our long-term strategy, HEKTER S.A. is systematically preparing for licensing through a Special Urban Plan (EPS) of its own property in the area of Agios Ioannis Detis in Paros, an area of 328 acres, aiming to develop a luxury 5 star hotel unit. This investment plan, a budget of EUR 53.3 million, includes securing a long-term loan of EUR 42.6 million, through loans from the Recovery and Durability Fund. At the moment, the ECJ maintains a deficit of around EUR 135 million. The company’s turnover in 2023 amounted to 79m euros, with an impressive increase compared to 23.15m euros in 2022. The company also claims the reconstruction of the three hotels of Gregoriadis Group (G Hotels) purchased by Golman Sachs in Halkidiki. The courts will lead the opposition of EKTER to ABax for cooperation in the construction of the three modern and environmentally friendly hospitals worth 442m euros that will be erected with the sponsorship of Stavros Niarchos Foundation. Athanasios Shipsas will address justice in an attempt to remove damage estimated at 120m euros. For Mr. Shipsa the acquisition of the 7th grade degree is imperative, as he stated in yesterday’s General Assembly, that “the Presidential Decree 71/2019, which determines the conditions for the classification of construction companies in grades of degrees, remained suspended for a long time, as the government avoided triggering it, in order to maintain the oligopolis of five companies holding 7th grade degrees. Over time, these companies decreased to four. However, after pressure from institutional bodies and recourse by ECTER S.A. to the European Union, the Administration was forced to put the decree into effect on 1 May 2024. Despite official activation, the ministry has not yet proceeded to issue the necessary interpretive circulars, nor has it completed the operation of the database to register project execution certificates. The lack of these tools causes delays and uncertainty in the processes of upgrading companies. According to data from the Ministry of Infrastructure, companies with a degree in force are formed as follows: 7th class 4 companies, 6th class 35 companies of which 31 with active information, 5th class 57 companies of which 55 with active information and 4th class 109 companies of which 94 with active information. The full implementation of the P.D. 71/2019 when interpretive circulars are completed and the database is expected to bring significant changes to the construction market landscape. Specifically a limited number of 7th grade degrees the strict criteria are expected to limit the degrees of the highest class to a maximum of five with the ECTER S.A. to claim one of the positions and increase of 6th grade degrees the softest criteria in the 6th grade are expected to lead to the issuance of around 55 new 6th grade degrees, which will boost competition in this category.