European Investment Bank to finance USD1.19 billion Interconnection project in Greece

The Independent Power Transmission Operator announces the participation of the European Investment Bank (EIB) in the financing of Crete-Attica interconnection, a project with a total budget of EUR1 billion (USD1.197 billion), being implemented by IPTO’s fully owned subsidiary “Ariadne Interconnection”.

“Ariadne Interconnection” and EIB signed a EUR 200 million (USD239 million) loan agreement, with the option of extending the funding by EUR 100 million (USD119 million). The funding is guaranteed by the Greek State and has a duration of 20 years, including a 5-year grace period. 

Crete-Attica interconnection is the largest energy infrastructure project currently under construction in Greece. Its financing comes from three sources: bank lending, equity and EU funding. The equity amounts to EUR 200 million (USD239 million). As to the bank lending, the project is now co-financed equally by Eurobank and EIB (with 200 million euros each). For the remaining amount of EUR 400 million (USD478 million), the co-financing tools of Greece and the European Union will be deployed.

Minister of Environment and Energy, Kostas Skrekas, commented: “The electrical interconnection of Crete with the mainland is pivotal in achieving our goal to overhaul the electricity system in the next few years. Connecting the largest Greek island with the national electricity transmission network is a decisive step in this direction, as well as in the transition of the country to a low carbon footprint economy”.