Provision of a bond-loan of up to EUR 14 million to refinance the loan of Hellas Smarticket S.A., and transform sponsor guaranteed debt into non-recourse project financing. Hellas Smarticket S.A Project is an e-ticketing project that consists in building, operating, and maintaining the integrated automatic fare collection system for the companies of Athens Urban Transportation Organisation ("OASA" Group) in the city of Athens, under a PPP scheme. The EBRD will co-finance alongside a commercial lender.
The Project will result in a non-recourse project financing, demonstrating to the market that project finance is available for well-structured PPP projects that struggled to obtain financing prior to completion.
The PPP project has improved OASA revenue collection by significantly avoiding fare evasion in different urban transport systems.
Expected transition impacts are 1) demonstration of support to a well-structured project that closed in a difficult financial market, and 2) backing the spread of private support to provision of public services - success of the e-ticketing PPP is key to ensure the effectiveness and financial viability of OASA and that other municipal projects are developed with private sector involvement.
HELLAS SMARTICKET SA
Hellas SmartTicket S.A. is a Greek SPV established to finance, install, operate, support, and maintain a single automated fare collection system for public transportation in Athens, Greece.
Terna Energy S.A. (energy and construction sector, part of a leading Greek Business group), GEK Terna (a major Greek Real Estate Construction Holding) and LG CNS (Subsidiary of LG providing IT consulting, system integration, outsourcing and industry based IT infrastructure solutions, covering notably a full range of transporation systems including urban transports) are its shareholders (respectively 35 percent, 35 percent and 30 percent of stakes).
EBRD Finance Summary
Senior bond-loan of up to EUR 14,000,000
Total Project Cost
Environmental and Social Summary
Categorised C (ESP 2014). The Project's definition has evolved since the CR stage to only include debt refinancing to the SPV "HST". The installation works and the transition to the e-ticketing system have been successfully completed since August 2017. The Borrower is effectively an IT service provider and the Project is unlikely to be associated with any Environmental and Social (E&S) risks which was confirmed by the E&S Due Diligence (ESDD) undertaken. The Project's category has consequently been changed from B to C. There is no GET component associated with this project.
ESDD was carried out internally by ESD and included the review of the completed ESDD questionnaire and follow-up discussions with representatives from HST and LG CNS. Despite their small size, HST has a certified Quality and Environmental Management Systems, and is subject to the same policies and procedures of their parent company Terna Energy, an existing client of the EBRD. LGCNS is also certified to ISO 9001 and ISO 14001, and all works carried out by LGCNS are audited on a regular basis internally and/or externally by consultants.
The transition to the electronic system did not result in any collective redundancies, and all procedures related to the stations' E&S aspects are managed by the Athens Urban Transportation Organisation "OASA" and the relevant station master. All procedures related to grievance management, emergency response, health and safety, stakeholder engagement, etc., fall under the responsibility of the OASA. According to the terms of the PPA, the Borrower and LGCNS have no interaction with the public or the metro users. The IT system developed and operated by the Client is certified to ISO 27001 for information security management systems.
The ESDD did not identify any non-compliances with the EBRD PRs and hence no E&S Action Plan is required. The Project will be monitored through the review of annual E&S reports submitted by the Client.
Company Contact Information
124 Kifisia Ave Athens 11526 Greece
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