The main credit expansion pillar for banks is funding PPP projects

The important contribution of the Greek authorities to the implementation of public and private partnerships projects (), with their representatives presenting their progress and strategies to support the institution, was highlighted by the relevant discussion panel, within the 5th PPP Forum, an initiative by A Energy. In particular, Antonis Koulis, Head of Concessions Finance & Advisory, Structured Financing of the National Bank, pointed out that the Greek banking system continues to support investment in Greece, despite the challenges such as increasing construction costs, geopolitical developments in Europe and the Middle East and recent high interest rates. The PPP projects have not been affected in recent years and this shows their dynamics, Mr.Koulis stressed, pointing out that a very significant number of projects, both concessions and PPPs, were completed in 2024. Currently, there are 43 PPP projects with a budget of approximately EUR 6.3 billion, which are in competition and are expected to be contracted within the next months. PPP financing, together with concession contracts and other infrastructure projects, remains a key credit extension pillar for Greek banks. Alexander Panagiotakis, Head of Project Finance of Piraeus Bank, said that an important advantage offered by Greek banks is that they give loans with a long maturity of repayment, as opposed to foreign banks that give more short term lending. He also stated that Piraeus Bank considers the PPP market to be thriving, whether it is repayable or not, and is leading in this area, organizing in this context a total budget of 1.6 billion in projects already closed and on pipeline. At the same time, the group supports investors in the bidding for the new projects. It has a leading role in financing Egnatia and all major highway projects. As early as 2022 he took over 100% of the financing of the Thessaloniki Flyover project. In addition, the partnership contract for the 17 schools in Central Macedonia was recently signed, a project that Piraeus financed by exclusiveity. Moreover, the bank participates in a fast broadband project for fiber optics with another systemic bank. At the same time there are advanced negotiations on four other PPP projects in public infrastructure. George Anomeritis, Head of Project Finance of Eurobank, said that after many years of PPP presence on the market, there has been a normalisation of contracts and risk allocation and has fully reflected what banks want to see in PPP contracts. These points are balanced risk allocation, clarity in payment mechanism terms and permit maturity. Also the protection of lenders in the ‘bad scenario’ of the complaint, reasonable business plans serving the costs of the time and giving incentives to investors, consistency in payment of monthly payments, and good cooperation between banks and the contracting authority. The Eurobank Group also supports and will continue to support PPP projects, having financed enough, while it is in a process of financing some more, with a strong willingness to support the institution in the future, exploiting the high know-how it has developed in recent years and the speed of implementation. In the financial section, Panayiotis Prozas, Partner, head of the Strategic and Investments Grant Thornton department, also took part, which referred among others to the need to widen the possibility of issuing letters of guarantee, proposing that insurance companies be involved in their publication. Leonidas Kataverakos, Head of Business Development, Concessions & PPPs, AVAX pointed out the need to review the tax framework of the special purpose companies of PPP projects, as well as the need to fully standardise PPP contracts – issues on which Roxana Todiroae, Infrastructure Advisory Practice Director, EY Greece agreed. In the first part of the same section, Panayiotis Stabulidis, appointed advisor of TAIPED, referred to the acceleration of competitions for PPP projects by TAIPED, the forthcoming announcement of the redevelopment of the area of the Thessaloniki International Exhibition (EDTH), which will take place through PPP, the exploitation of properties within the former royal Tatoio estate and other projects with TAIPEDS PPP, the new Andreas Ledakis Government Park in the former PYRL and the two major logistics in the Tribe and the former Gonos camp. The PPP Forum, as the organizers point out, was carried out with the active participation of the co-ordinating ministries, the principles of PPP projects, investors and the participation of the construction and environmental sector. In addition, in the context of the event, his thoughts on speeding up the implementation of projects by Public-Private Partnership, while respecting the budgetary objectives, the Deputy Minister of National Economy and Finance, Nikos Papathanasis, submitted, while on his own side, the Deputy Minister of Infrastructure, Nikos Tachiaos, explained the way the Ministry of Infrastructure and Transport has chosen to proceed with the Standard Proposals using the PPP method and the priorities of his Ministry in the field of PPPs and concession projects. Source: RES-AE