Sagias and Partners Law Firm

The Legal Journey Behind the EO2 (Mavrovouni – Edessa, Giannitsa Bypass, Chalkidona Bypass) Road Axis Upgrade A Vision Brought to Life In the realm of infrastructure, transforming critical roadways represents a vision of progress—one that seeks to enhance safety, connectivity, and economic growth. The EO2 Road Axis construction, including the maintenance and upgrading of existing road networks, spanning vital sections from Mavrovouni to Edessa, including the Giannitsa and Chalkidona bypasses, exemplifies such a vision. This ambitious project involves the comprehensive improvement and expansion of the Thessaloniki–Edessa National Road, divided into five distinct sections. The project’s goal is to provide better access and connectivity while mitigating traffic congestion, ultimately benefiting both local and national interests. Our law firm, as the legal advisor to the contracting authority, has been deeply involved in the development of this transformative project, offering legal guidance and strategic support. We ensure the smooth progression of the project through its various stages, addressing the complex legal and regulatory challenges that arise. The Road Sections: A Complex Undertaking The EO2 upgrade is divided into five sections, each presenting its own unique legal, technical, and logistical challenges. These sections include the Halkidona Bypass, the Pellaia Greece Bypass, the Giannitsa Bypass, and the Mavrovouni–Edessa section. Our firm’s contribution spans all sections, focusing on addressing the intricate legal and technical hurdles involved in constructing a road network alongside existing infrastructure. Halkidona Bypass Section The new alignment of the Thessaloniki-Edessa National Road starts at the end of the existing technical bridging of the Axios River and its tributaries, extending to the constructed section of the Pellaia Greece Bypass. This section, approximately 6.34 km long, requires careful attention to land agreements and environmental approvals to ensure the smooth integration of the new road with the existing infrastructure. Pellaia Greece Bypass This section, part of the new National Road No. 2, has already been constructed with a cross-section width of 11 meters, including the hard shoulder (LEA), and 13 meters with the embankments. Future plans include expanding this section to the typical cross-section width of B4N*S, as will be done for new sections under the current partnership. The primary challenge involves adapting the existing infrastructure to accommodate future upgrades. Giannitsa Bypass Section The Giannitsa Bypass project involves the construction of side roads, intersections, bridges, culverts, and a retaining wall. Key features include 14 bridges and under/overpasses, totaling approximately 363.41 meters, 23 box or pipe culverts, and 25 Irish crossings. This section also includes 60 at-grade intersections, many located at the intersections of the side roads. The complex legal and technical requirements for these structures are essential to ensure both road safety and efficient traffic flow. Melissi-Mavrovouni Section This section forms part of the new National Road No. 2 and has already been constructed with a cross-section width of 11 meters, including the hard shoulder (LEA), and 13 meters with embankments. As with the Pellaia section, future modifications are planned to align this section with the standard B4N*S cross-section, in line with other new sections constructed under this partnership. The challenge here lies in managing future expansion while maintaining the integrity of the existing infrastructure. Mavrovouni-Edessa Section The proposed Mavrovouni–Edessa section involves the improvement of the Thessaloniki–Edessa National Road, specifically the road section between Mavrovouni and Edessa. This section, located in the Pella region, will feature a new road alignment with accompanying service roads to support local traffic. The key challenge is ensuring that the new design meets the traffic and environmental needs of both the local and regional areas while adhering to the necessary legal and environmental requirements.   Challenges Along the Way Integration of New and Existing Roadways One of the main challenges of the EO2 upgrade project lies in the integration of new road sections with existing networks. Particularly in the Halkidona, Giannitsa, and Mavrovouni–Edessa bypass sections, where the intersection of new and existing alignments created complex legal and technical issues. These required intricate coordination of legal agreements, design approvals, and environmental considerations. Environmental and Land Acquisition Challenges A key challenge was the acquisition of land for constructing the new road sections. The area involved multiple landowners with fragmented plots, requiring meticulous legal coordination. Our expertise ensured smooth land acquisition processes, preventing delays and the subsequent payment of any compensations that these delays may cause, thereby guaranteeing the availability of the necessary land for construction. Maintenance and Repairs A major aspect of the project involves the ongoing maintenance and repair of the road after its completion. Our firm has been instrumental in negotiating the terms of these agreements, ensuring that the contractor's obligations are clearly defined in the contract and that maintenance and repair conditions are aligned with the contracting authority's expectations. A Harmonious Partnership: The Public and Private Sectors United The EO2 upgrade project exemplifies the vital collaboration between the public and private sectors, which is essential for the successful delivery of large-scale infrastructure projects. This partnership combines the public sector's regulatory oversight and long-term vision with the private sector's efficiency, expertise, and capacity for innovation. The private sector entities have been central to the project, navigating its complexities with their specialized knowledge and resources. These preselected bidders are responsible for designing, constructing, and maintaining the road infrastructure, ensuring safety, sustainability, and timely delivery. Their expertise in road construction, bridge building, and environmental considerations has been key to overcoming technical challenges and ensuring the project proceeds without delay. As the project advances, the continued collaboration between the public and private sectors will be crucial to its success. The seamless integration of strategic oversight from the public authority with the private sector’s operational capacity remains fundamental to the project's timely and efficient completion. The Competitive Dialogue: Laying the Groundwork for Success The competitive dialogue phase has been critical in shaping the success of the EO2 Road Axis Upgrade. Now nearing completion, this phase allowed the contracting authority to discuss with prequalified bidders to refine technical designs, financial structures, and project specifications. The primary goal of this phase was to ensure that, in collaboration with the technical and financial advisors, the project met the highest standards of technical feasibility, legal compliance sustainability, and cost-effectiveness. A. Legal Expertise During the Competitive Dialogue Our firm played a crucial role during this phase, providing legal advice and strategic guidance. We ensured compliance with national and EU regulations, facilitated transparent communication, and helped resolve actual and potential legal issues, ensuring that all proposals aligned with the contracting authority's long-term objectives, thereby appropriately and effectively shaping the contractual documents. B. Key Challenges in the Dialogue Phase Several challenges arose during the dialogue phase, primarily in balancing the interests of the contracting authority with the proposals from bidders. Our firm helped maintain fairness and transparency, resolving potential conflicts and ensuring that bidders' expertise was fully integrated into the project’s development. C. Transition to the Next Phase: Competition Stage With the competitive dialogue phase concluding, the project is transitioning to the competition stage, where final proposals will be submitted and evaluated. The groundwork laid during the dialogue phase ensures that the selection of the contractor will be based on refined technical and financial proposals, setting the stage for the construction and maintenance phases. Conclusion: The Road Ahead The EO2 Road Axis Upgrade is more than just a physical transformation; it is a model of legal and technical collaboration. This project not only highlights the importance of public-private partnerships but also demonstrates how innovative legal strategies can overcome complex challenges. As the project moves toward completion, our law firm remains committed to ensuring its success and delivering a project that will serve both the public and private sectors for years to come, setting a benchmark for future infrastructure development in Greece.

Our law firm has successfully handled a very difficult and complicated criminal case concerning felony embezzlement with an alleged damage of € 910.000,00 and felony infidelity of funds with an alleged damage of € 164.000,00 committed by the legal representative of a Societe Anonyme Company. The case was tried by the Kalamata Three-Member Felony Appeals Court at first instance and the Kalamata Five-Member Felony Appeals Court at second instance. The charges related to the commission of the above offences by our client against a société anonyme, which operated a local TV channel in the Peloponnese, of which he had served as CEO until 2011. Some years later, the next board of directors of the company filed a criminal complaint against our client, accusing him of allegedly committing the aforementioned felonies. They also filed 2 civil lawsuits against him claiming the aforementioned amounts (in total). Both civil lawsuits were upheld by the Multimember Civil Court of Kalamata. Both civil decisions had become final. The level of difficulty of the case lies in the fact that the charges had already been confirmed by 2 final decisions of the civil courts, which actually ordered our client to compensate the company. The accusations were also confirmed by a report prepared by SOL SA, one of the most well-known audit firms in Greece. Our law firm achieved, with strong legal and factual arguments, the dismissal of 2 of the 3 above charges by the Kalamata Three-Member Felony Court of 1st instance. In particular, despite the existence of the above irrevocable civil judgments and the report of SOL SA, the court accepted our claims that there is no legal obligation for the criminal court to adopt the previous judgment of the civil court on the same facts, even if it is irrevocable and that the penal courts have independent judgement. Therefore, the court of 1st instance acquitted our client of the crime of misappropriation, convicted him for embezzlement of 261.000,00 € and sentenced him to 4 years' imprisonment with probation. Then in the court of appeals, we managed to prove that one of the entries in the audit firm's report was fictitious, resulting in the downgrading of the charge of embezzlement from felony to misdemeanor, due to the amount. In this way our client was completely acquitted of this charge as well, due to the statute of limitations of the misdemeanor. The significance of this case lies in the fact that it highlights the independence of criminal justice from civil justice.

The Beginning… Back in 2019 one of our major Clients, traditionally involved in shipping and maritime business, sought opportunities to expand in new areas of activity in Greece. In the first weeks of 2020 some days before the first COVID era of Quarantines begun, our Client was introduced to a project in the RES industry. A few months later in June 2020 our Client decided to proceed with the development of the project, a 250 MW photovoltaic park with storage located in Domokos. The project was extremely challenging and our Law firm with a team of lawyers led by our Partner Mr. Nikolas Sagias, undertook warmly the task. The Challenges… The project introduced breakthrough technologies and innovative concepts for the Greek market and RES industry. The challenge of this endeavor was only coupled by the fact that the Greek legislative framework at the time was not sufficiently developed to accommodate the intricate licensing procedures required for a project of this nature. Notably, the legal concepts surrounding behind-the-meter combined technology, integrating a photovoltaic park with a storage system, were virtually unrecognized in the existing legal context.[1] Our Law firm had also to deal with the vast land requirements of the project, navigating an immature and frequently changing legislative landscape, and guiding a client who was new to this field, all while contending with the disruptions caused by the COVID-19 pandemic. The Licensing Path… Following three canceled licensing procedures due to the COVID restrictions and after vast work on the licensing preparations and securitization of land for months, the submission for licenses was enabled on December 1st 2020. For the first time in Greece, this process was facilitated through an online platform, available for a ten-day period, as stipulated by the newly issued licensing regulation, which was published just one day before the platform went live. Despite the recognized importance of storage systems within the RES industry, the new licensing legislation, to the everybody’s surprise, did not include any reference to the storage systems, let alone of combined technologies with storage systems, as part of the RES licensing procedure. Facing the potential cancellation of the project, a swift and innovative solution was required. Our law firm proposed to the client the concept of treating, from a licensing point of view, the combined technology of p/v park and storage system, in behind-the-meter projects, as a simple P/V park with the technological advantage of storing power to provide it independently of the sunshine hours. We introduced the definition of a PV park with a non-autonomous internal storage system in our proposal, which was subsequently endorsed by the authorities. As a result, our client obtained the first license in Greece for a project utilizing combined renewable energy technology! It was not until the June of 2022 that the Greek legal framework included such projects as a distinctive licensing category which afforded our client a significant competitive advantage for a year and a half!  The Land of the Project… The first task undertaken by our Law Firm involved the comprehensive investigation of available land within the designated area and the securitization of the Land through long-term lease agreements. These agreements were meticulously structured to comply with legal requirements while also facilitating smooth collaboration between our client and the landowners. The required Land exceeded 3.200 stremmas[2] in an area characterized by fragmented ownership, with individual plots ranging between 15 and 18 stremmas per owner. Our Law Firm was tasked with identifying, locating, and verifying approximately 200 individual owners and their respective ownerships in the area. Given the competitive interest in the Domokos area from multiple investors and developers, our Law Firm recommended that the client offer final notarial lease agreements to the owners, contradicting the usual policy of preliminary contracts with down-payments that had complex terms, usually leaving the local population feeling that investors were taking advantage of their limited access to the overall data or to legal counseling. As our Client endorsed the idea, a vast endeavor led by our Law Firm was initiated, at the end of June 2020, which led to the securitization of 3.200 stremmas in the area through notarial lease agreements within six months by January 2021, three months before the issuance of the Producer’s license. This achievement was facilitated by proactively disclosing the draft lease agreements to the local community well in advance of the signing process, offering standardized financial terms to all landowners, and, most importantly, through numerous visits by our law firm’s representatives to establish personal connections with each landowner. These visits allowed us to address any inquiries or requests, fostering trust and transparency between the local community and our client. The personal engagement with the local community, despite the challenges posed by the COVID-19 pandemic, combined with the beneficial terms that were suggested by our Law Firm, was welcomed by the community. This approach not only secured the necessary land but also established a strong, ongoing relationship with the Domokos population, which has been a significant advantage at every stage of the project. Our Law Firm was present in the signing in every single one of the notarial agreements and in cooperation with more than six different Notaries simultaneously to cope with the amount of work. As a result, within just six months, our client, a relatively unknown investor in the RES sector, emerged as a major stakeholder in one of the most  sought-after areas for such projects, securing all necessary land, ahead of competition. The Expansion of Our Work… In April 2021, our client decided to join forces and align efforts, with an investor that had been developing a twin P/V park, in the same area directly adjacent to our client's southern borders. Over the following months, the two investors gradually developed a shared strategy, leading to the establishment of a Consortium in July 2021. This consortium assumed responsibility for a significant number of critical aspects related to both projects. Our Law Firm was entrusted with the legal support of the Consortium representing the joint interests of the two investors in several key areas, including the connection to the Grid, the establishment and construction of a shared private high voltage sub-station, the pursuit of the classification of the projects as a strategic investment by the Greek state and above all the award of an individual state aid support for the project. In parallel, following our successful securitization of the Land for our client in the area, our Law Firm was also entrusted with the same task by the second investor, whose efforts on the matters were not progressing well by that time, having secured less than 400 stremmas out of more than 3.000 required. Utilizing the same methodology and work ethic, we successfully secured an additional 2,100 stremmas within just five months. By the end of 2021, the second investor had confidently secured the necessary land. The Prioritization Process… Even though the developing aspects of the projects were progressing, the endeavor, would lack visibility, if it was not to secure a connection to the Grid. Following the publication of the new licensing procedure Law in June 2022, by which time the Greek state adopted the definition of behind-the -meter combined technology of p/v park and storage system, a ministerial decision was issued in August 2022, providing benefits of acceleration in the Grid connection for some technologies. The benefits of acquiring the Producer’s license already from April 2021, were revealed in the most significant way. By the time of the issuance of the ministerial decision, only two projects had established such a maturity stage in the category of behind-the meter combined technology of p/v park and storage system, enabling in fact for our Clients their connection to the Grid. Our Law Firm fully supported both investors in this effort and contacted the Authorities to ensure that every requirement of the legislation would be met.++ The state aid process… Following the establishment of the Consortium between the two investors a most ambitious aspect of the project initiated: the effort of the investors to convince the Greek state to suggest the projects for individual state aid support. The Greek state satisfied the request by addressing a petition to the competent Authorities of the European Committee. Our Law Firm played a pivotal role by preparing the initial draft of the scheme ensuring it contained all necessary information to comply with European legislation, upon which the official request of the Greek State was based. Consequently, our Law Firm supported the Consortium in their capacity as promoters of the projects, answering any legal question to the Ministry and the Greek State. With our legal support, the proposed scheme has been approved by the European Committee and the projects enjoy the financial support of the Greek state through individual[3] state aid. This achievement marks only the second time in the past decade that a Greek renewable energy project has received such support. The Installation license… The projects reached the stage of maturity required to submit applications for installation licenses. Our Law Firm undertook the project to gather all the supporting documents for the applications and to draft the report for the legal justification proving the securitization of the Land. The task included the dual registration of over 200 notarial lease agreements in the Lamia cadastral and registry office within a period of less than two months. Each of the 380 plots of the project had to be proven as lawfully secured by the investors, which required the process of more than one thousand documents. This milestone marks the end of the preparatory work of the licensing procedure, thereby providing the two investors and Clients with an optimal environment to proceed with the materialization of the project. The Conclusion Our Law firm is more than proud to have supported the two investors over the past four years in their effort to establish a pioneering renewable energy project in Greece, particularly during the initial stage of the licensing preparatory work. Beyond the great volume of the work we undertook, much of the scientific legal work was original. There was no precedent in the development of a similar project in Greece and also an ever-evolving legal framework during this period, to which we had to adapt in real time, walking many paths for the first time before anyone else. Having this unique experience, we are now ready more than ever to face the new challenges of the project. It is no exaggerated to assert that our contributions have been, so far, the key factor in the accomplishment of the most successful RES project in Greece, having involved in all legal work of the first stage of the preparatory work and in particular to: Secure 7.500 stremmas for the land of the Project in more than 380 land lease and purchase agreements. Prioritize the Grid Connection application of the Investors Nomination of strategic investment for the project Granting of state aid financial support scheme Establishment of local community trust Support to the SPV’s and Consortium company function and structure Drafting of agreements with third parties – engineers, consultants etc. SUMMARY OF MILESTONES 1. Securitization of land for two projects, approx. 7.400 stremmas (divided in lots of average area 10-15 stremmas) September 2020 – July 2024 2. Production license for Yperionas April 2021 3. Environmental license for Yperionas October 2021 4. Submission to Enterprise Greece for nomination of strategic investment December 2021 - November 2023 5. Request for State Aid – Support to the Promoter (Consortium ΦAETHON) January 2022 - Ongoing 6. Submission to prioritization process for both projects September 2022 7. Submission for installation license both projects July 2024 8. Suitability acceptance of land plot for private  substation July 2024 Footnotes [1] Behind-the-meter has the meaning of the projects whose batteries only charge by the source of production in the same project, meaning in the RES project that it is 100% green energy stored. [2] Stremma = 1.000 sqm [3] Differentiating to the state-aid cases as a result of tender procedures.