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Route-Installation of Burgas-Alexandroupolis Oil Pipeline

01 Jul 2010 | Ministry of Environment, Energy and Climate Change of the Greek Republic | The Council of Ministers approved today the bill entitled “Route-installation of Burgas-Alexandroupolis oil pipeline and relevant issues”, this being a project of national interest for Greece.

For the pipeline to be constructed, a special legal framework should be established which should specify:

The restrictions on ownership that should be imposed on the owners or holders of the properties through which the pipeline will pass;

Land acquisition for the necessary areas;

The indemnities paid to the owners or holders of such areas.

Main provisions

Obligations of property owners: The owners or holders of areas through which the pipeline will pass are obliged to allow on their properties the execution of any work that is required for the construction, operation and maintenance of the pipeline.

Restrictions on construction: Specific zones are determined within a 5-meter corridor to the left and right of the pipeline's axis and the cathodic protection cable, where certain works cannot be carried out by the owners, such as digging wells, planting trees, as well as zones within which any construction is prohibited. The owners or holders shall receive 25% of the market (commercial) value of such areas as compensation for these restrictions. The affected owners shall be entitled to have recourse to the local competent Single-Member Court of First Instance.

Cases of damage: It is stipulated that a pecuniary compensation shall be paid to all beneficiaries in case damage is caused to properties, which shall be fixed by way of a decision of the Region’s General Secretary.

Use of municipal-community areas: The Company is allowed to use municipal or community areas which are necessary for the pipeline's construction, for which, however, they should pay indemnity.

Concession for the use of the littoral – off-shore areas: By decision of the Minister of Economy and Environment, Energy and Climate Change (YPEKA), concession of the right to use parts of the littoral area, the beach of an adjacent marine area and sea bottom is offered to the company in order to install and operate the pipeline and carry out all types of work. In contrast to the bill of the previous government, a reasonable indemnity is now stipulated in exchange for the right of use.

Use of Port: In addition, the option to concede to the company certain areas of the port which are necessary for pipeline operation and maintenance is granted. The concession will be decided by the Alexandroupolis port administration and operation body upon, however, concurrent opinion of YPEKA, the Ministry of Economy, Competitiveness and Maritime Shipping, the Ministry for the Protection of Citizens, the General Navy Staff and the General Secretary for the Region. As opposed to the bill of the previous government, this concession shall take place in exchange for a reasonable compensation and shall apply as long as the Passage Agreement between the company and the Hellenic Republic is in effect.

Land Acquisition: The bill stipulates that compulsory land acquisition of all types of areas may take place only if deemed necessary for project execution. Land acquisition is allowed only in favor of the State and the relevant expenditures shall be charged to the company. The affected owners are entitled to apply for cancellation of land acquisition to the Council of State.

The Host State Agreement will specify issues such as the terms of passage, any issues related to the route, construction of the pipeline and other necessary facilities, and its operation and maintenance in conjunction with environmental protection. A Negotiation Committee has been set up again for communicating with Trans-Balkan Pipeline B.V. - the international company which will build and operate the oil pipeline. The special legal framework that is established replicates the law on the national natural gas system (Law 1929/1991) exactly because it has been deemed by the case law of Greek Courts as compatible with Articles 17 and 18 of the Hellenic Constitution and with the additional Protocol to the European Convention on Human Rights (ECHU). The Government remains focused on the prospect of implementing the Burgas-Alexandroupolis project, which is of national importance and public utility, and makes every effort in this direction.