Provision of an up to EUR 160 million working capital facility to support Public Power Corporation SA (PPC) operations at the time of the Covid-19 crisis in Greece.
The Project supports the PPC, the largest electricity generator and supplier in Greece. Accordingly the functioning of its operations are vital for the stability of the electricity sector as a whole. It provides critical functions along the sector chain including distribution, retail supply and collection of payments that are ultimately passed on to other generators and sector participants.
ETI score: 65
Resilience - Financial Stability: The main transition impact would be derived by creating resilience in the electricity system by making available working capital to ensure vital payment capacity and liquidity are maintained throughout the value chain during and beyond the Covid-19 crisis.
Well Governed - Prepare an action plan to implement the recommendations of the Task Force on Climate-related Financial Disclosure: The Bank is providing TC support to PPC to implement the recommendations of the Task Force on Climate-related Financial Disclosure.
PUBLIC POWER CORPORATION SA
PPC is the largest power producer and electricity supplier in Greece. It has been listed on the Athens Stock Exchange since 2001 and its main shareholder is the Greek State (51.1%), through the participation of the Hellenic Republic Asset Development Fund and the Hellenic Corporation of Assets and Participations where the Greek State holds 100% of voting rights.
EBRD Finance Summary
Total Project Cost
As part of a crisis response EBRD is providing financing that effectively bridges a financing gap due to adverse market conditions.
Environmental and Social Summary
Categorised B (2019 ESP). The Bank's use of proceeds are designated for short term working capital and will not be used for any capital investments in thermal power generation or mining.
ESD undertook a corporate level ESDD of the Company in line with the ESD's ESDD approach to CV-19 Solidarity Package projects, to gain an understanding on how EHS issues are managed and the Company's strategy to comply with current and future EU legislation. This included review of publicly available documentation, as well as remote meetings with the Company's EHS and CSR team to understand the Company's plans to comply with current and future EU legislation. Overall, based on the ESDD, it has been concluded that PPC has sufficient Environmental, Health and Safety management systems and the capacity in place to fully implement the Bank's Performance Requirements. The Company is in the process of publishing its non-financial information in line with EU requirements.
The key challenge of the Company will be associated with compliance with the new BAT Conclusions at the existing power plants, and reducing the carbon footprint at the same time increasing the share of renewable energy generation. The Company is making efforts to address this and has made strong public commitment to implementing a decarbonisation Policy. This will include decommissioning of 3.4GW of lignite assets by 2023 and the remaining 0.6GW by 2028.
Based on the ESDD, an Environmental and Social Action Plan (ESAP) has been agreed with the Company in principal and will be finalized prior to Board consideration. This will ensure PPC's future compliance with the Bank's Performance Requirements and include a commitment to a decarbonisation strategy as well as disclosure of climate related information.
The Bank's financing will explicitly exclude coal and mining assets from receiving EBRD's proceeds in order to meet various EBRD policy requirements.
Information on the Company and is Corporate Social Responsibility can be found here (https://www.dei.gr/en/i-dei/etairiki-koinwniki-euthuni)
The Bank will monitor the implementation of the ESAP.
Technical Cooperation and Grant Financing
Technical Cooperation is being provided from the EBRD's Special Shareholder Fund to support the Company in preparing an action plan to implement the recommendations of the Task Force on Climate-related Financial Disclosure.
Company Contact Information
+30 210 5292153
+30 210 523 2251
30 Chalkokondyli St., 104 32, Athens Greece
PSD last updated
07 May 2020
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Independent Project Accountability Mechanism (IPAM)
If efforts to address environmental, social or public disclosure concerns with the Client or the Bank are unsuccessful (e.g. through the Client’s Project-level grievance mechanism or through direct engagement with Bank management), individuals and organisations may seek to address their concerns through the EBRD’s Independent Project Accountability Mechanism (IPAM).
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Please visit the Independent Project Accountability Mechanism webpage to find out more about IPAM and its mandate; how to submit a Request for review; or contact IPAM via email email@example.com to get guidance and more information on IPAM and how to submit a request.