Construction of Public Schools through the use of PPPs

The Ministry of Development and Competitiveness announced the signing of a Public Private Partnerships (PPPs) agreement for the construction of ten public schools in Attica. KG Law Firm acted in this transaction as the legal advisor to the group of lenders.

The project includes the study, funding, construction, maintenance and technical management of ten public schools for a period of twenty seven years in the Municipalities of Athens (five schools), Heraklion (one school), Oropos (three schools) and Megara (one school).

The contractor (J&P Avax) will fund (through own equity and loans) and construct within two years (until May 2016) all schools and shall remain responsible for their maintenance and technical management, while he shall also perform additional maintenance throughout the life of the agreement, so that the schools will remain in perfect shape during the entire life of the agreement and after its termination.

The total cost of the investment is 52 million euros and shall be repaid by the Greek State upon the completion of the construction, the operation period of the project, on the basis of a detailed control mechanism of the quality and operation of the structures, securing this way quality infrastructure for the citizens and the Greek State throughout the life of the project.

The project is jointly funded by the European Investment Bank (EIB) and the Jessica fund. Specifically, the financing scheme is: 16.7 million euros from the European Investment Bank (EIB), 16.7 million euros from the Jessica fund through the National Bank of Greece , 8.7 million euros from Alpha Bank and 9.9 million euros from the contractor.

This agreement follows the singing of the related agreement on April 9, with KG also acting for the group of lenders, for the construction of fourteen schools, also in Attica with ATESE-Domiki Kritis as contractor.

The twenty four schools will service 6.500 students, the total funding is 110 million euros and these are the first PPPs in the EU which are jointly funded by the European Investment Bank (EIB) and the Jessica fund, creating a European model for the financing of social projects.