Greek Airports Privatisation Cluster A



Project number:


Business sector:


Notice type:


Environmental category:


Approval date:

16 Nov 2016



PSD disclosed:

07 Sep 2016

Translated version of this PSD: Greek

Project Description

The EBRD is considering joining a group of lenders providing long-term financing to the concessionaire for the privatisation of 14 Greek regional airports.

The Greek government is in the process of implementing a significant privatisation programme, which includes the privatisation of 14 regional airports in Greece with a view to transferring responsibility for their modernisation, maintenance, management and operation to the private sector under longterm concession agreements. Fraport Greece, the concessionaire for the 14 Greek regional airports is owned by Fraport AG and Copelouzos Group. The concession agreements were signed with the Hellenic Republic Asset Development Fund S.A. (HRADF) and the Republic of Greece on 14 December 2015.

Project Objectives

EBRD's financing would support the expansion of private sector participation in the airport sector in  reece. The project will include the modernisation and upgrading of important airport infrastructure located throughout Greece and will support the growth of the regional economies. The project will improve the quality of the infrastructure and the service quality at the 14 regional airports and will promote development of the tourism industry in Greece, which is a key driver of the Greek economy.

Transition Impact

The proposed project is a significant large scale infrastructure project in Greece to be financed under a Public Private Partnership (PPP) arrangement. The transition impact of the project is expected to come mainly from greater private sector involvement in the airports sector through the demonstration effect of: (i) the benefits of private sector financing of infrastructure assets which may be replicated by the Greek government in other sectors and also by governments in the neighbouring countries considering infrastructure PPPs; and (ii) the development and restructuring of the sector, as the project involves upgrading of the airport facilities to increase capacity and improve the service quality offered to airlines and passengers.

The successful completion of the project is expected to demonstrate that well-structured PPPs in Greece will generate investor appetite and bring large scale external investment into the Greek economy.

Client Information


a project company owned by Fraport AG Frankfurt Airport Services Worldwide and by the Copelouzos Group.

EBRD Finance Summary

EUR 117,000,000.00

Total Project Cost

EUR 820,000,000.00

Environmental and Social Summary

Category B (ESP 2014). The potential environmental and social impacts associated with the operation and expansion of 14 existing Greek regional airports are site specific, and can be readily identified and addressed through the implementation of appropriate mitigation and management measures.  Technical and environmental and social due diligence (ESDD) has been undertaken by an independent consultant.  The scope of the ESDD included a review of: the environmental and social impacts associated with the planned expansion and modernisation programme; the client's corporate E&S policies and practice; existing E&S due diligence and current permit conditions; and the client's capacity to implement lenders' standards.  As the client has not yet taken over operations at the airports, there has been limited opportunity to undertake a detailed review of existing operations.  The project has been reviewed against EU, EBRD and other participating lenders' standards (including IFC and EIB).

ESDD revealed that the company has in place various corporate environmental and social management systems developed in line with ISO standards.  An environmental impact assessment has been undertaken for all sites as part of the Greek environmental permit process.  An update of existing environmental terms is ongoing and all associated permits (which are the responsibility of the State) will be granted prior to the transfer to the new operating company.   An assessment of E&S issues to Lender standards will be undertaken during the first six months of the client taking over operation and will identify any additional measures to be undertaken to manage impacts, though these are not expected to be significant.

ESDD has shown that the potential impacts associated with airport operations include noise, air quality, health and safety and impacts to biodiversity. All upgrade and expansion works will be undertaken within the existing airport boundaries.  During the expansion works, impacts include construction noise and traffic, worker and public health and safety.  Impacts on Natura 2000 areas located in the vicinity of some of the existing airports are also possible though these can be avoided or adequately mitigated in line with the EU Habitats Directive and PR6. Four airports are located within known archaeological sites though earthworks will be managed in line with Lender and legal requirements and a chance finds procedure has been developed.  Waste water treatment facilities in five of the airports are in poor condition and require upgrading to meet lender requirements and existing environmental permit terms.  Measures are also required to ensure solid waste management practices are improved.

The project will not result in any retrenchment as existing employees will be offered positions in the new company or will be reassigned in accordance with their existing civil service contracts.  The EPC contractor will be required to comply with the requirements of PR2.  No land acquisition will be required for imminent works, though any future land acquisition will be undertaken in line with PR5.

An ESAP has been agreed which ensures that the project is structured to comply with the ESP (2014).  Key actions to be undertaken include development of E&S procedures for the implementation of corporate policies at each site (including human resources and health and safety); appointment of personnel to manage environmental and social performance; implementation of a construction E&S management plan;  development of a waste and waste water plan for each site; biodiversity baseline and management plan implementation; assessment of possible climate adaptation risks; and development of site specific cultural heritage management plans.  Further, a technical and E&S consultant will be appointed within three months of the start of construction activities and monitoring activities will be implemented throughout the period of imminent works.

Engagement with communities living close to existing airports on the planned expansion works has been limited to-date, though will be undertaken shortly. The Company has committed to undertaking Stakeholder Engagement with local communities at each of the 14 airport sites in accordance with the Bank's and other lenders' requirements, and in line with best international practices. To ensure the stakeholder engagement will be meaningful and transparent, stakeholder engagement plans (SEPs) will be prepared and implemented both at corporate level and at each of the 14 airports. The SEPs, including a grievance mechanism, will be developed prior to disbursement and will be implemented over the life of the project.

Technical Cooperation


Company Contact Information

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