Piraeus, Greece (PortSEurope) November 12, 2019 – The European Investment Bank (EIB) has agreed to provide €140 million to support expansion and upgrading of the port of Piraeus.
It is the largest ever loan for port investment in the country by Europe’s long-term lending institution and will support the implementation of part of investments at the port in a total investment plan of more than €600 million.
Last month, Piraeus Port Authority SA (PPA) announces that Greece’s Committee of Planning and Development of Ports (ESAL) had approved investments amounting to €611.8 million ($675.12 million), which cover all the business units of the company and will contribute considerably to the development of the local and national economy.
Piraeus Port Authority is operated by China’s COSCO Shipping Ports Limited.
The 20-year loan was signed in Athens in the presence of Prime Minister of Greece Kyriakos Mitsotakis, Chinese President Xi Jinping, Xu Lirong, Chairman of COSCO Shipping Corporation and Chairman of PPA, Yu Zenggang, by Andrew McDowell, European Investment Bank Vice President and Athanasios Liagkos, Board Member of PPA.
“Greece welcomes the European Investment Bank’s support for transformation at the port of Piraeus. The EIB has been supporting strategic infrastructure across Greece for more than 50 years and has unique technical and financial expertise financing leading ports across Europe and worldwide” said Prime Minister Kyriakos Mitsotakis.
“Redevelopment of the port will strengthen connections between Greece and the rest of the world and ensure that Greece benefits from a world-class maritime logistics hub. The EIB is pleased to provide a 20-year long-term loan for the principal maritime hub of Greece and the leading port in the Mediterranean. EIB support reflects the economic benefits to be unlocked in the coming years and the importance of ensuring competitive transport links for Greece and South Eastern Europe”, said Andrew McDowell, European Investment Bank Vice President.
“Recent investment has shown how investment at the port of Piraeus can support economic growth and benefit Greece. Confirmation of the European Investment Bank’s support follows detailed due diligence and reflects the broad benefits to be unlocked by the largest investment programme in the history of the Port of Piraeus”, said Yu Zenggang, Chairman of Piraeus Port Authority S.A.
The first €100 million tranche of the EIB loan was signed today and the remainder agreed as project construction progresses.
The EIB loan is guaranteed by the Exports–Imports Bank of China, and the guarantee facility contract between PPA and CEXIM was also signed today in the presence of CEXIM Chairwoman Ms HU Xiaolian and Mr Thanos Liagkos from PPA.
Improving communications for millions of people across Europe
New investment at the Port of Piraeus includes development of a new port logistics centre, construction of a new cruise passenger handling facility, expansion of car shipping facilities, an improved ship repair area and the upgrade of the container terminal.
The port of Piraeus is the busiest in the Mediterranean and the world’s 32nd largest port in terms of container cargo traffic.
Source: Piraeus Port Authority
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