The European Investment Bank (EIB) has approved a loan of €255m for a Greek electricity distribution network upgrade.

As part of the new initiative, EIB will support Hellenic Distribution Network Operator (HEDNO) investment programme. HEDNO is the subsidiary of the Public Power Corporation (PPC), a Greece-based electricity generator and supplier.

For the investment programme, EIB has signed a second 20-year loan agreement with PPC with a €100m guarantee from the Hellenic Republic out of €255m total approved facility.

The Minister of Finance and EIB Governor Christos Staikouras said: “The contract signed with PPC reaffirms the strategic support of EIB to projects that promote the security of supply and energy efficiency.

“The reinforcement and modernisation of energy networks in Greece are crucial in order to achieve the growth targets of the country.

“EIB, Europe’s lending arm for the implementation of its new growth strategy, proves once again that it actively supports the Greek economy by providing financing and know-how.”

The loan will be used to strengthen and upgrade the electricity distribution network across the mainland and islands in Greece.

As part of the electricity distribution network upgrade, more than 7,000km of electricity distribution lines will be installed.

Modernisation of Greece electricity transmission infrastructure is said to be key for integrating renewable energy sources to the electricity network of the country.

PPC chairman and CEO Georgios Stassis said: “The electricity distribution network has traditionally been a valuable asset of the group and its development is a strategic priority for PPC.

“We are very pleased with EIB being a steady strategic financing partner supporting our investment plan in projects of great importance not only for PPC Group but for the economy, Greek consumers, the security of supply and the environment as well.

“The digital transformation of the group, which is a strategic priority, involves to a large extent the distribution network as well, the digitalisation and automation, which require significant investments.”