But disappointing toll revenues—exacerbated by growing public protests, which, at times, stopped the highways' normal operations—undermined the plan. As a result, Olympia Odos failed to service its loans in line with agreements, according to the European Commission. When the banks halted loans, work stopped in 2011, with under a third of the protect completed.

Following negotiations, the concession's finances had changed dramatically, including a 40% reduction in available bank loans and 2.3% to 3.7% hikes in interest rates. Also, the contractors secured only a third of the $700 million they claimed for delayed access to required land and other snags.

On the positive side, the government agreed to pay $130 million to cover inflation during the extended contracts and postponed construction of part of the highways. The construction deadline was pushed back by 16.5 months from the original August 2014 completion date.

All this still left a $337-million funding gap, which the government agreed to plug with a grant and a loan from European Union institutions. EU grants for the four contracts total over $4 billion. Agreeing with Olympia Odos, the government agreed to forego its share of toll revenues allocated under the original contract.

Similar arrangements were put in place to secure the remaining three projects. Since the new terms substantially changed the original contracts and involved increased state support, they needed European Commission approval, which they received a few months ago.

Other Projects Restarted

Under its agreement, signed in spring 2008, the Aegean Motorway consortium is handling the rehabilitation of the 210-km Kleidi-to-Maliakos Bay highway, plus 30 km of new construction near Mount Olympus. Hochtief leads the consortium with a 35% interest, while Vinci has 13.4% and Greek firms owns the balance.

The Ionian Motorway project includes a new, 196-km Antirio-to-Ioannina section, plus upgrading 172 km from Athens to Maliakos. Signed in December 2006, the concession agreement called for construction to end in December 2013—now pushed back two years. The concessionaire includes the Spanish firms Cintra and, with two of its subsidiaries, ACS Group.

The Central Motorway project covers a new, 174-km link between the existing Athens-Thessaloniki motorway, near Lamia, and Egnatia Odos, the long east-west highway crossing northern Greece. The project company includes Spain's Ferrovial and Cintra.