The European Investment Bank (EIB) signed on Tuesday €285 million of loans to support various energy projects in Greece, improving the electricity transmission and interconnection network across the country, while at the same time bolstering environmental-friendly energy security and efficiency.

EIB president Werner Hoyer said:

“We are determined to enhance our cooperation with the Hellenic Republic, other European development finance institutions and private investors in further assisting recovery in Greece.”

A loan of €110m, which has been granted to the Greek utility Public Power (PPC), is the second tranche of an EIB €190m loan intended to develop power projects on Greek islands.

The project is expected to install fossil fuel fired engines on 18 Greek islands, which are not interconnected to the mainland grid in the North and East Aegean, Dodecanese, Cyclades, and the Diapontia island complex. It also aims at upgrading auxiliary infrastructure for the projects.

EIB has also signed a €70m deal with Independent Power Transmission Operator (IPTO) in the country, with power transmission and the interconnection of the Cyclades islands to the mainland network are expected to be improved under it.

This deal marks the second phase of an EIB €140m loan, which was signed to support IPTO’s power transmission investment programme within the period covering 2012-17.

An additional €65m financing aid has also been allowed by EIB, as a second tranche of an EIB €130m loan intended for the interconnection of the Cyclades islands.

Another €40m loan was offered to the Hellenic National Gas System Operator (DESFA), extending EIB’s support for the natural gas system in Greece.