Heraklion Airport project costs rise to nearly 1.2 billion euros

The total cost for the construction of the new Heraklion International Airport in Casteli has risen to nearly 1.2 billion euros. A recent decision by the Ministry of Infrastructure and Transport has increased the projected compensation payments to 444.3 million euros, up from an initial estimate of 363.9 million euros set last November.

The increase in compensation is attributed to several factors, including the extension of the study and construction periods, a 24-month loss of revenue due to delayed operations, and delays in airport development fees caused by COVID-19 pandemic measures in 2020 and 2021. Additionally, changes in legislation regarding the construction of a 3-kilometer tunnel—necessitated by the discovery of antiquities—have significantly impacted the budget, with the tunnel alone costing over 160 million euros.

The project is managed through a concession agreement involving the International Airport of Heraklion Crete (DAIK), where the Greek state holds a 45.9% stake, GEK TERNA holds 32.46%, and GMR holds 21.64%.