AERIAL MEANS FOR DISASTER PREVENTION IN GREECE

Promoteur – Intermédiaire Financier

HELLENIC REPUBLIC

Lieu

• Grèce

Description

The project will finance the purchase and delivery of up to 20 new firefighting and operation coordination aircrafts and helicopters for the General Secretariat for Civil Protection (GSCP). In detail, the aircrafts to be purchased consist of medium-sized amphibious water carrying aircraft, light amphibious water carrying aircraft, heavy water carrying helicopters, twin-engine turboprop aircraft as aerial operation centres, and twin-engine jet aircraft for first response and operations coordination, as well as associated equipment and training. This is a large sub-operation under project 2020-0182 - COVID19 DISASTER PREVENTION & CLIMATE ADAPTATION Framework Loan.

Additionality and Impact

EIB's financing of a climate action project in Greece will support the General Secretariat for Civil Protection (GSCP) to purchase and deploy up to 20 aircraft and helicopters for forest fire extinction and emergency services, along with the associated equipment and training. The loan will significantly enhance Greece's capacity to respond to forest fires, allowing for a more rapid and efficient intervention, and preventing human and economic losses. The project concerns adding capacity and improving operational efficiency in a sector that is not open to public competition because the market would fail to provide the required services which are of overriding public interest.

Forests are environmental public goods and forest fires constitute environmental public losses. This project therefore aims to help correct a market failure that both results in environmental costs, and that is of growing incidence due to environmental reasons, namely climate change.

Availability of EIB funding will enable the GSCP to take delivery of the fleet for the fire season, potentially crowding in other lenders, facilitating implementation of the Civil Protection's investment programme in time to achieve the anticipated project results. The long tenor and flexible terms of the EIB loan brings strong additionality to a suboptimal investment situation arising from insufficient offering by commercial banks.

The EIB's financial contribution for the realisation of this project is deemed significant, as the Bank provides more advantageous terms (longer tenor, availability, grace period, competitive interest rates etc.) vis-à-vis most lenders in the Greek market and has a crowding-in effect, thus allowing the Greek State to complement and diversify its funding sources.

Objectifs

The aim is to improve firefighting capacity of the local Hellenic Fire Corps Services, in particular forest firefighting. This is complying with the EC Green Deal and EU forest strategy for 2030. The purchase of firefighting aircraft for civil protection services is contemplated in the EIB Climate Bank Roadmap and Transport Lending Policy indicating aviation assets (or components thereof) where there is an overriding public interest (environmental, safety and security) or crisis response are eligible for financing.

Secteur(s)

• Transports - Transports et entreposage

Montant BEI envisagé (montant approximatif)

EUR 326 million

Coût total (montant approximatif)

EUR 434 million

Aspects environnementaux

The acquisition of firefighting aircraft and associated equipment does not fall under Annex I or II or the Environmental Impact Assessment (EIA) Directive 2011/92/EU as amended by Directive 2014/52/EU. The project aims at improving firefighting capacity of the local Hellenic Fire Corps Services, in particular forest firefighting. Increased incidence of forest fires is understood to be a consequence of Climate Change. The project would therefore be in principle eligible under Climate Action - Adaptation. The contribution to Climate Action will be determined during appraisal. The requirements of social standards will also be verified during appraisal.

Passation des marchés

The EIB will require the promoter to ensure that contracts for implementation of the project have been and will be tendered in accordance with the applicable EU procurement legislation, Directive 2014/24/EU as well as Directive 92/13/EEC or 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.

Statut

Approuvé - 14/02/2024