EUR 22.7 million participation in a EUR 650 million share capital increase (the "Project") by Lamda Development ("Lamda" or the "Company"), the private sponsor of the Hellinikon Urban Regeneration Development (the "Hellinikon Development"). The capital increase was raised through a domestic secondary public offering with the new shares listed and traded on the Athens Stock Exchange.
The funds will support the financing of the first phase of the Hellinikon Development, which is aiming to regenerate the former Hellinikon Airport area located on the Athens coastal front, into a sustainable and fully integrated commercial, residential and tourist infrastructure.
ETI score: 64
The Project will support Lamda in certifying one asset in the Hellinikon Development under the Leadership in Energy and Environmental Design (LEED) certification scheme, thereby promoting sustainability and green investments as part of the development process. At the same time, the Project contributes to the urban regeneration of the greater Athens agglomeration, being one of the biggest regeneration projects in modern Greek history and one of the largest projects of this kind in Europe.
LAMDA DEVELOPMENT SA
Lamda is a Greek real estate developer and investor specialised in the development, investment and management of real estate assets. Listed on the Athens Stock Exchange with a EUR 1.4 billion market capitalisation as of 18 December 2019, Lamda operates mainly in Greece (94% of investment portfolio) but also in South Eastern Europe.
EBRD Finance Summary
Total Project Cost
International sustainability certification and promotion of green options for the neighbourhood infrastructure.
Environmental and Social Summary
Categorised B under the 2014 ESP. This equity transaction covers the project masterplan for which a Strategic Environmental Impact Assessment (SEIA) was conducted and site preparation and infrastructure work for which an Environmental Impact Assessment (EIA) was prepared. Both studies demonstrated E&S impacts to be site-specific, and/or readily identified and addressed through effective mitigation measures. Environmental & Social Due Diligence (ESDD) was carried out by EBRD with the support of a consultant and included a site visit, discussion with the Client, review of the completed corporate ESDD Questionnaire, the SEIA and EIA. The project will implement an Environmental and Social Action Plan (ESAP).
The SEIA for this development was prepared in accordance with Greek law and the provisions of European Directive 2001/42/EC and approved in 2017 by Presidential Decree. In addition, an EIA was developed covering demolition of existing buildings, site infrastructure and parks and approved in Q2 2019. These studies assessed impacts and included mitigation measures related to human health, flora, fauna, biodiversity, soil, water, air, climate and cultural heritage. They also covered spatial plans that define land use and recommend mitigation measures. Specific sub-projects may require additional Environmental and Social Assessment under national law. Public consultations were led by the Greek authorities as part of the EIA including a public meeting in each of the 3 municipalities and public comments period. The Client is presently preparing a number of engagement mechanisms including an online stakeholder engagement platform and have committed to developing and disclosing a Stakeholder Engagement Plan (SEP) inclusive of a grievance mechanism.
While the Client's Environmental Health, Safety & Security (EHSS) systems are sufficient to manage their current operations, further effort will be needed to manage EHSS issues on this project. As such, they are presently hiring a number of EHSS staff and developing policies and systems. These include a corporate ISO 45001 certification for health and safety management and Project-specific Environmental and Social Management System (ESMS) to comply with permitting requirements, national law and EBRD PRs. As construction works for specific sub-projects will be carried out by third parties, contractor management will therefore be essential as well as oversight of environmental, health, safety and labour issues.
Legacy contamination associated with the former airport and demolishment of the existing facilities were not identified as critical issues in the SEIA or EIA. Potential site contamination will be studied for each individual sub-project and mitigation measure implemented to address any issues identified. Construction-related noise, dust, vibration, construction waste, hazardous substances and traffic impacts need to be addressed in each sub-project's ESDD as well as in each Project-specific ESMS. On-site air, water and noise monitoring during the construction is planned in the project's ESAP. There is no ecologically sensitive area in the site and impacts on biodiversity are limited.
For life and fire safety of the public buildings, the Client and each sub-project developer need to ensure that the concerned buildings meet national life and fire safety law and are in line with EU standards. In addition, road construction inside the Development must meet national law and in line with good EU practice.
The land will be transferred to the Client free of any liability for prior land acquisition. No recourse to expropriation was required. As such PR5 does not apply on this project. Special arrangements have been made specifically for certain entities to continue operating on site and the Client have committed to building alternate facilities for these entities prior to their relocation. The site was used as a temporary centre to house refugees, however these were moved to alternate facilities in coordination with the UNHCR in 2017.
Three churches, an archaeological site and several listed buildings are found within the boundaries of the Development site. Rehabilitation and protection of these is included in the development master plan. Greece's Archaeological Authority will oversee construction on site and the client and contractors will be required to develop a chance finds procedure as part of the project ESAP.
The ESAP focuses on conducting appropriate E&S assessment of sub-projects as well as developing and implementing appropriate policies, plans, systems and capacities in order to manage project EHSS aspects. The client will also be required to comply with EBRD PRs as well as submit an annual environmental & social report. The Bank will monitor the project by reviewing Annual Environmental and Social Reports prepared by the client as well as through site visits.
Technical Cooperation and Grant Financing
Company Contact Information
+30 210 74 50 683
37A Kifissias Ave. (Golden Hall), Maroussi, Athens 151 23, Greece
PSD last updated
20 Dec 2019
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Environmental and Social Policy (ESP)
The ESP and the associated Performance Requirements (PRs) set out the ways in which the EBRD implements its commitment to promoting “environmentally sound and sustainable development”. The ESP and the PRs include specific provisions for clients to comply with the applicable requirements of national laws on public information and consultation as well as to establish a grievance mechanism to receive and facilitate resolution of stakeholders’ concerns and grievances, in particular, about environmental and social performance of the client and the project. Proportionate to the nature and scale of a project’s environmental and social risks and impacts, the EBRD additionally requires its clients to disclose information, as appropriate, about the risks and impacts arising from projects or to undertake meaningful consultation with stakeholders and consider and respond to their feedback.
More information on the EBRD’s practices in this regard is set out in the ESP.
Integrity and Compliance
The EBRD's Office of the Chief Compliance Officer (OCCO) promotes good governance and ensures that the highest standards of integrity are applied to all activities of the Bank in accordance with international best practice. Integrity due diligence is conducted on all Bank clients to ensure that projects do not present unacceptable integrity or reputational risks to the Bank. The Bank believes that identifying and resolving issues at the project assessment approval stages is the most effective means of ensuring the integrity of Bank transactions. OCCO plays a key role in these protective efforts, and also helps to monitor integrity risks in projects post-investment.
OCCO is also responsible for investigating allegations of fraud, corruption and misconduct in EBRD-financed projects. Anyone, both within or outside the Bank, who suspects fraud or corruption should submit a written report to the Chief Compliance Officer by email to firstname.lastname@example.org. All matters reported will be handled by OCCO for follow-up. All reports, including anonymous ones, will be reviewed. Reports can be made in any language of the Bank or of the Bank's countries of operation. The information provided must be made in good faith.
Access to Information Policy (AIP)
The AIP sets out how the EBRD discloses information and consults with its stakeholders so as to promote better awareness and understanding of its strategies, policies and operations following its entry into force on 1 January 2020. Please visit the Access to Information Policy page to find out what information is available from the EBRD website.
Specific requests for information can be made using the EBRD Enquiries form.
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).
IPAM independently reviews Project issues that are believed to have caused (or to be likely to cause) harm. The purpose of the Mechanism is: to support dialogue between Project stakeholders to resolve environmental, social and public disclosure issues; to determine whether the Bank has complied with its Environmental and Social Policy or Project-specific provisions of its Access to Information Policy; and where applicable, to address any existing non-compliance with these policies, while preventing future non-compliance by the Bank.
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.