1. 7th International Scientific Conference on Energy and Climate Change
FUNDING PROJECTS IN GREECE
NATIONAL BANK OF GREECE S.A.
Konstantinos Venetsanos
Project Finance Division
Athens, 10 October 2014

2. The risk profile of projects has changed due to:
Decrease in project revenues due to the economic crisis,
Unable to form reliable forecasts,
Debt crisis has serious impact on government obligations (expropriations, VAT refunds, payments of compensation, etc.).

3. New terms of funding
Banks’ requirements have become more conservative,
Increased investor participation (from 20% to 40% -50% of project budget),
Shorter loan tenors (Mini Perm),
Cash Sweep mechanisms,
Increased guarantees and securities (government and / or corporate),
Increased margins as a result of the increase of funding costs for the Banks.

4. Critical factors for the banking sector
Upgrade creditworthiness Greek banks,
Positive GDP growth rates,
Reduced growth rate of non-performing loans.

5. Infrastructure projects in Greece
Significant to the economic activity are Infrastructure Projects
New technology Thermal Power Plants reducing CO2 emission
New motorways that reduce travel time and distance
Successful projects’ restart in December 2013,
Accelerated payment procedures (expropriation, VAT refunds, payments of compensation, etc..),
Multiplier effects on the economy, particularly at regional level,
Increase confidence of foreign investors and banks to participate in new projects.

6. Waste management projects Financial needs for all of them ≈ € 60 mio
NBG is involved in the financing of almost all waste managed projects in Greece,
Western Macedonia
tpa
120,000
Total cost
€ 45 mio
Serres
60,000
€ 33 mio
Ilia
63,000
€ 37 mio
Financial needs for all of them ≈ € 60 mio

7. Financing renewable energy projects
NBG Group data as at 31/12/2013
(amounts in millions. €)
Power (MW)
Cost of investment
Approved lending
Photovoltaic Parks
100
258
200
Windfarms
931
1.228
698
Small Hydro Plants 31 52 37
Biogas 23 35 18
Total
1.085
1.573
953

8. Public Private Partnership (PPP) Projects
NBG is actively financing :
Mainly in the field of waste management - schools - telematics
During the second quarter of 2014, contracts were signed for two PPP schools (22 schools in total) in Attica (participation and program JESSICA),
Telematics Project (signed 30/6/2014).
Increased participation of EIB after successful recapitalization of Greek Banks
These projects contribute to environmental sustainability

9. PPPs challenges CHALLENGES ACTIONS
Encouraging competition between the private entities,
participation of EIB,
Increase in Equity requirements,
Club Deals (syndicated loans),
Escape clauses,
Renegotiation clauses.
Increase in cost of risk for private investors,
Increase in financial cost of the project due to pricing of credit risk by banks,
Available funds need to be directed towards creditworthy projects,
Requirements for binding banking letters of support.
The relatively small size of the Greek PPPs is an advantage in the current situation

10. European programme JESSICA
Joint European Support relating to Sustainable Investment in Urban Areas,
Initiative of the European Commission (DG Regional Policy) in cooperation with the EIB in order to promote sustainable investment in urban areas,
The financing of urban development is through the "conversion of subsidies" to a funding mechanism “refundable grants”,
The initiative provides for the establishment of Urban Development Funds (UDF), which will be responsible for implementing the program through the JESSICA Holding Fund,
To Holding Fund is a fund of funds, managed by the EIB, which is established for the investment of resources in Urban Development Funds,

11. European programme JESSICA
Enhanced mobility of capital for urban development and PPP focusing on sustainability and environmental friendly solutions,
Incorporating the experience of international financial institutions such as the EIB,
NBG participates in the programme acting as Manager of Urban Development (UDF) for the regions of Attica, Western Greece, Ionian Islands, as well as projects of the Operational Programme "Environment and Sustainable Development" (EPPERAA),

12. JESSICA ‘S STRUCTURE IMPLEMENTATION
JESSICA Holding Fund (HOLDING FUND)
MANAGEMENT (EIB )
URBAN DEVELOPMENT FUND (UDF)
URBAN DEVELOPMENT PROJECTS
COMPETITION, SELECTION AND INVESTING IN UDF
LOANS, EQUITY FUNDS FOR PROJECTS
REPAYMENT OF RESOURCES TO IMPLEMENT PROJECTS UDF
OPERATIONAL
CONTRACTS
(OPERATIONAL AGREEMENT)
INVESTMENT
AGREEMENT
(INVESTMENT AGREEMENT)

13. European programme JESSICA
Indicative areas of interest :
Urban infrastructure (parking facilities and green areas),
Urban rejuvenation (refurbishment of buildings),
Public Networks (transport, water, sanitation, energy),
Health / education (hospitals, rehabilitation centers, etc.).

14. An example of project within the scope of Jessica: Municipality of Alexandroupolis’ Energy Saving Project
Regarding the contribution of Jessica for the implementation of energy saving project, Municipality of Alexandroupolis is willing to realise the following project in the context of Jessica initiative.
Project budget of € 2,33 million
Installing photovoltaic cells in 16 schools for producing electricity from RES,
Replacing 2,028 lighting street lighting system throughout the city of Alexandroupolis type LED luminaires,
7 Supply of electric vehicles for use by the municipal services,
Phase 1 for eligibility has been completed.

15. NATIONAL BANK OF GREECE SA Project Finance Division
Thank you !
NATIONAL BANK OF GREECE SA
Project Finance Division
Athinon Avenue, GR104 42
Tel. :
Fax :