Greece: EIB EUR 129 million for Olympics 2004 related transport

The European Investment Bank (EIB), the European Union's long-term financing institution, is providing a total of EUR 129 million (GRD 44 billion) (1) in support of transport infrastructure related to the Olympics 2004 in Athens and Peloponissos, in Greece. The Deputy Minister of National Economy Mr Ch.Pachtas acting on behalf of the Hellenic Republic signed the financing agreements today in Athens. 

EUR 100 million (GRD 34 billion) in long-term loans is for the construction of two new tramway lines of a total of 22.7 km in Athens: line T1 linking the Athens centre (Zappio) with the South coast of Athens (Neo Faliro), and line T2 connecting Neo Faliro to the southern suburb of Glyfada. The project also includes the supply of 35 tram cars. 

The two new tramway lines represent the first phase of a larger tramway system, which is planned for the Greater Athens Metropolitan Area. The tram network forms part of a coordinated transport system being implemented by the Greek Government based on the comprehensive Metro Development Study, elaborated by Attiko Metro SA in 1995-1999. This study, among others, proposed the construction of 4 new tramway lines of 46 km total length, in addition to the Metro. 

The new tramway will add to the improvements already achieved with the Athens Metro, also financed by the EIB with a total of EUR 835 million, helping to alleviate congestion and traffic-related environmental problems, improving the quality of life of some 4 million inhabitants. Upon completion, the peak one-directional demand can reach 2500 passengers, and will serve the sports and leisure facilities at the Southern coast of Athens to be used for the Athens Olympics in August 2004.

EUR 29 million (GRD 10 billion) goes for the construction of a bypass around the city of Patras. The bypass is part of the Pathe-Athens-Thessaloniki-Evzoni (PATHE) motorway, and will serve traffic between Athens and Olympia during the Olympics 2004. Being the main North-South road axis linking Greece with Italy (port of Patras) and the Balkan countries (Evzoni border crossing to FYROM), PATHE is a key project included in the priority list of Trans-European Network projects (TENs) approved by the Essen European Council. Total financing approved by the Bank todate for the PATHE road axis amounts to EUR 839 million (GRD 286 billion).

Both projects are co-financed through grants under the Community Support Frameworks (CSF) for Greece and through EIB loans. 

The European Investment Bank (EIB) was set up in 1958 under the Treaty of Rome to provide loan finance for capital investment furthering European Union objectives. It participates in the implementation of EU policies towards third countries that have co-operation or association agreements with the Union. In 2000, the EIB provided loans totalling some EUR 36 billion, of which EUR 1 712 million (GRD 583 billion) for projects in Greece. In 2001, new loans in Greece are expected to exceed 1 000 million EUR; until to date, the total EIB lending to Greece amounts to EUR 719 million (GRD 245 billion). The Bank borrows the funds for its lending on the capital markets. Its bonds have regularly been rated "AAA" by the leading rating agencies. As the EIB works on a non-profit basis it can pass on to project promoters the excellent conditions it obtains on the markets. The EIB normally finances up to 50 percent of project cost; on average it provides one third of the funding and co-finances investments with other institutions.

(1) 1 EUR : 340.750 GRD, 0.915800 USD, 0.628500 GBP.