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    Reference: 20190801
    Release date: 3 February 2023

    Promoter – Financial Intermediary




    The loan will finance the construction of a new artificial reservoir in the Platy River in Crete to secure and improve irrigated agriculture and flood protection in surrounding areas. In particular, the project will consist of: 1. Construction of the Platy artificial reservoir, with 21 million m3 capacity 2. Transfer through 18.6 km of water mains from the reservoir to current overexploited aquifer in the Messara agricultural plain 3. New irrigation scheme of up to 4 350 ha in the surroundings of the Platy reservoir 4. Other (engineering, supervision, land acquisition, contingencies)

    Additionality and Impact

    The project concerns the construction of a new reservoir and irrigation network in Crete to secure and improve irrigated agriculture and flood protection in surrounding area.  


    The project contributes to the cross-cutting objectives of Climate Action and Environmental Sustainability and cohesion.


    The project will address a number of market failures, as it will: reduce greenhouse gas emissions, mainly through an increase in the biomass and soil retention of olive trees and savings in pumping needs; generate environmental benefits from water kept in the aquifer to a sustainable level; provide flood control benefits; and help improve social cohesion by providing economic opportunities to an area with a declining population. These benefits would not be realised to the same extent without public intervention. 


    The Promoter (Ministry of Infrastructure and Transport) as well as the future Operator (OAK) are considered well experienced in similar projects in terms of E&S&C management and governance systems.


    EIB contribution is considered key, as it will provide advantageous terms (longer tenor, availability, grace period, etc) and has a crowding-in effect, allowing the Greek State to complement and diversify its funding sources.  The Bank's technical approach will assure a holistic and integrated water management of the new assets, contributing substantially to environmental sustainability and socio-economic viability.


    The aim is to protect Crete from droughts and floods in a context of climate change, as well as the groundwater resources. The project is included in the approved 1st Revision of the River Basin Management Plan for Crete, the Flood Risk Management Plan and the Regional Development Strategy. The related investments help to implement measures meeting the requirements of the Water Framework Directive 2000/60/EC and the Floods Directive 2007/60/EC. Due to the project location, the project falls under the EU Cohesion Policy.


    Proposed EIB finance (Approximate amount)

    EUR 80 million

    Total cost (Approximate amount)

    EUR 160 million

    Environmental aspects

    The project obtained the positive environmental decision from the Greek Ministry of Environment, Energy and Climate Change. It has been assessed that it will neither cause significant adverse environmental effects, nor leave residual non mitigated environmental risks.


    The promoter has to ensure that contracts for the implementation of the project will be tendered in accordance with the relevant applicable EU procurement legislation, Directive 2014/24/EU, where applicable, as well as Directive 89/665/EEC as interpreted by the Court of Justice of the EU, with publication of tender notices in the EU Official Journal, as and where required.


    Signed - 22/01/2024

    Under appraisal
    29 March 2023
    22 January 2024


    Before financing approval by the Board of Directors, and before loan signature, projects are under appraisal and negotiation. The information and data provided on this page are therefore indicative.
    They are provided for transparency purposes only and cannot be considered to represent official EIB policy (see also the Explanatory notes).

    Related tags

    Greece Water, sewerage