Financed ProjectsHEDNO S.A

Identification Code:

OP/19/0006

Total Operation Cost:

0

Maturity:

60 months

Operation Status:

Description and Purpose of the Operation:

The operation pertains to the provision of a corporate loan to the Public Power Corporation S.A. The proceeds of the loan are expected to be used for financing PPC's S.A program of capital expenditure for the years 2019 and 2020, comprising, a large number of medium voltage and low voltage electricity distribution schemes, including 7,327 km of new medium voltage and low voltage network and automation components for the reinforcement and modernisation of the electricity distribution network through peninsular and insular Greece (including new high voltage/medium voltage substations, high voltage cables and medium voltage submarine interconnections, improvement/reconstruction/reinforcement of existing high voltage/medium voltage substations and existing medium voltage submarine interconnections).

Countries of Operation:

Greece (100,00 %)

Financial Product:

Loans

Sector:

Utilities

Domain:

Public

Borrower/Client:

PPC S.A.

Co-Financiers/Participants:

N/A

Guarantors/Sponsors:

Hellenic Republic, Greece

Developmental and Regional Cooperation Impact:

The Project will have economic benefits for the Greek economy and the energy sector in particular and will assist to the broader target of restoring economic growth through the creation of new jobs, receipt of tax revenue gains and improvement of the country’s energy mix and infrastructure.

Environmental Classification and Impact (summary):

Category B+. The Environmental and Social Due Diligence (ESDD) carried out at the corporate level concludes that PPC complies with environmental legislation under the Greek law, EU Directives, as well as international agreements, relating primarily to air emissions, water pollution and waste disposal. As the environmental legislation is constantly tightening this may lead in the near future for some operations of PPC, such as the lignite-fired power plants to be shutdown, or upgraded at significant costs, which may have a material adverse effect on its business, strategic and financial planning, and cash flows. With regard to health and safety the Corporation is committed to ensuring a safe working environment and it aims to adequately manage risks associated with health and safety matters, such as the exposure of employees, contractors and third-parties to the risk of injury, potential associated liabilities and reputational damage. PPC closely manages these risks through the promotion of a strong health and safety culture and well defined health and safety policies. Its annual health, safety and risk plans set out detailed targets for the management of safety, which is in line with other companies in the industry. The Corporation also maintains a strong focus on the audit of work sites and the reporting and reviewing of near miss incidents. Currently, PPC is implementing the project for certification of its units with the ELOT/1801 Health and Safety Management System standard (equivalent to the BS OHSAS 18001 Occupational Health and Safety standard), issued by the Hellenic Organization for Standardization. All of its steam electric power plants, three lignite mines (including Lignitiki Megalopolis S.A.) and the Supporting Sectors of Lignite Centre of West Macedonia, are already certified and PPC aims at obtaining certifications for all of its power plants as well as all the lignite mines that it operates.

Operation Leader:

Energy & Infrastructure

E-mail:

ei@bstdb.org