The European Investment Bank (EIB) yesterday formally agreed to provide EUR 140 million to support expansion and upgrading of the Port of Piraeus, the principal port of Greece. The largest ever loan for port investment in the country by Europe’s long-term lending institution, will support the implementation of part of investments at the Port of Piraeus in a total investment plan of more than EUR 600 million.
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 Piraeus Port Authority S.A. Yu Zenggang, by Andrew McDowell, European Investment Bank Vice President and Athanasios Liagkos, Board Member of the Piraeus Port Authority S.A (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 of Greece Kyriakos Mitsotakis.
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.
Improvements to the Port of Piraeus are expected to support economic growth and job creation across the country, reduce transport costs and enable increased cruise tourism and shipping. Piraeus is the busiest in the Mediterranean and the world’s 32nd largest port in terms of container cargo traffic.
“Redevelopment of the Port of Piraeus will strengthen connections between Greece and the rest of the world and ensure that Greece benefits from a world-class maritime logistics hub. 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 EUR 100 million tranche of the EIB loan was signed on 11 November and the remainder agreed as project construction progresses. It is guaranteed by the Exports – Imports Bank of China, and a guarantee facility contract between PPA and CEXIM.
