EIB grants loans totalling €285m for Greek power and energy projects

3 November 2015 (Last Updated November 3rd, 2015 18:30)

European Investment Bank (EIB) has allowed loans worth €285m to support energy projects in Greece.

European Investment Bank (EIB) has allowed loans worth €285m to support energy projects in Greece.

The funding from the financial body is expected to improve power transmission and strengthen interconnection network in the country, in addition to supporting environmentally friendly energy security and efficiency.

EIB president Werner Hoyer said: "The EIB has supported the Greek economy throughout the crisis and the agreements signed today underpin our strong commitment to the country. The energy sector is a priority for the EIB.

"The projects will create jobs during construction and after, as well as having positive spillover effects in the regional and national environment, economy and living conditions.

"The funding from the financial body is expected to improve power transmission and strengthen interconnection network in the country."

"We are determined to enhance our cooperation with the Hellenic Republic, other European development finance institutions and private investors in further assisting recovery in Greece."

A loan of €110m, which has been granted to the Greek utility Public Power (PPC), is the second tranche of an EIB €190m loan intended to develop power projects on Greek islands.

The project is expected to install fossil fuel fired engines on 18 Greek islands, which are not interconnected to the mainland grid in the North and East Aegean, Dodecanese, Cyclades, and the Diapontia island complex. It also aims at upgrading auxiliary infrastructure for the projects.

EIB has also signed a €70m deal with Independent Power Transmission Operator (IPTO) in the country, with power transmission and the interconnection of the Cyclades islands to the mainland network are expected to be improved under it.

This deal marks the second phase of an EIB €140m loan, which was signed to support IPTO’s power transmission investment programme within the period covering 2012-17.

An additional €65m financing aid has also been allowed by EIB, as a second tranche of an EIB €130m loan intended for the interconnection of the Cyclades islands.

Another €40m loan was offered to the Hellenic National Gas System Operator (DESFA), extending EIB’s support for the natural gas system in Greece.