The first funds of the Recovery Fund are coming – Τhe projects and the benefits

The government expects the first 4 billion Euros of the Recovery Fund next Friday, as stated by the Deputy Minister of Finance in Parliament, Theodoros Skylakakis, and thus the first projects with a total budget of 1.42 billion euros are being implemented. They concern the modernization of public infrastructures and the digitization of archives, the improvement of the equipment of the Independent State Revenue Authority (AADE), the expansion and support of the National Telecommunication Network – Coupling II, the strengthening of systems for the digital service of citizens, the improvement of the investment environment through the spatial planning, the northern part of the E65 highway and the restoration and promotion of the monuments of the Acropolis of Athens.

Of the 30.5 billion euros, 12.7 billion euros are loans and are expected to mobilize double the investment resources, thus, according to the Deputy Minister of Finance in Parliament Theodoros Skylakakis, the largest leverage of investment resources in the history of the country. It is noted that a report by Oxford Economics records that Greece receives the most money from any other European country, by a large margin, 20% of GDP, compared to 15% which is the next percentage. At the same time, according to a study by the Bank of Greece, the effective implementation of the National Plan can bring GDP growth of 6.9% by 2026, which can reach 9.9% in the longer term (20 years).

The loans, which will be provided through commercial banks and financial institutions, will finance private investment and projects of more than 20 billion euros, targeting green transition, digital transformation, innovation and research, extroversion and growth through mergers and exports. The maximum funding of projects will be 50%, and the participation of banks and investors at least 30% and 20% respectively. There is a long repayment period (10 to 12 years) as well as a grace period (up to 2 years). Borrowing costs will range between 0.2% and 0.4%.

Forecasts for the Recovery Fund show that an inflow of around € 7.8 billion is expected this year, followed by an annual inflow of € 5.31 billion for the five years from 2022 to 2026. Estimates show that Community funds are expected to give a total benefit of 60 billion euros to the real economy, while 12.7 billion of loans are expected to mobilize private investment 31.8 billion euros.

It is also estimated that the smooth absorption of the Fund’s disbursements from the second half of the year will add 1.3% to real GDP in 2021, while for this year it is estimated that investments will increase by 7%, in 2022 it will increase by 30.3% and 12.3%, in 2023 and 10.8% in 2024. Exports are expected to increase by 10.4% this year, to 13.7% in 2022 and 7.5% and 6.2% for 2023 and 2024. The goal is to increase Greek GDP by 7% and the creation of 180,000-200,000 new jobs by 2026.

In detail these concern:

The following projects will contribute to the modernization of public sector infrastructure:

1. Improving the equipment of AADE in order to provide upgraded services to taxpayers. Budget: EUR 12.2 million

2. Reform of the Financial System in the Central Administration and the other General Government GOV-ERP. The project concerns the reform of the financial and financial management system of the State in order to increase its efficiency. It is the preparation, support and development of an Enterprise Resource Planning (ERP) information system for General Government and Public Administration. Budget: EUR 36.1 million. Implementing body: Information Society SA

3. Expansion and support of the National Telecommunications Network – Coupling II, which is the network of telecommunications and telematics services of the Public Sector with a presence in 4500 points throughout the country. Budget: EUR 32.1 million. Implementing body: Information Society SA

4. Fiber optic network upgrade for the GRNET network and the connected networks, ie all the Academic and Research bodies of the country, the pan-Hellenic school network, a significant number of public hospitals and other research and education bodies. Budget: EUR 30.5 million. Implementing body: National Network of Technology and Research Infrastructures

The following projects are expected to contribute to the improvement of state services to citizens and businesses:

5. Unified Digital Infrastructure for the Service of Citizens and Businesses for the creation of the technological and information mechanisms that will allow the expansion of the digital service and transactions between public, business and citizens. Budget: EUR 69.4 million. Implementing body: Information Society SA

6. Internet services to achieve interoperability between the information systems of the Public Administration concerning the provision of a package of G2G Web services in order to facilitate the transaction between G2G state bodies, between G2C state-citizens but also state-business (G2B) , finally increasing the services that will be provided by the gov.gr platform. Budget: EUR 27.9 million. Implementing body: Information Society SA

7. Upgrading the provision of open data, the data.gov.gr platform and the provision of relevant services in the public and private sector. The project aims to expand the provision of open data to citizens, businesses, academia and the research community with a view to transparency, open governance, research and business exploitation. Budget: EUR 5.5 million. Implementing body: National Documentation Center

In addition, the following projects were approved for funding:

8. Construction of the Trikala – Egnatia section of the Central Greece Motorway (E65). This is the northern part of the E65 70.5 km long that completes the highway in order to upgrade the connection of Western Macedonia and Epirus with Central Greece and abroad through the Egnatia Highway. It is perhaps the most essential action to support Western Macedonia in the critical period of de-lignification. Budget: EUR 480 million. Implementing body: Ministry of Infrastructure

9. Digitization of Mortgage File for the National Land Registry concerning the digitization of the files of the Transfer and Mortgage system from all 390 mortgage offices in the country (the volume is estimated to exceed 600 million pages) and the development of an information system through which the files will are accessible to all interested parties and other related information systems. Budget: EUR 242.4 million.

10. Local Urban Plans and Special Urban Plans that clarify and institutionalize the urban framework (land uses, building conditions, etc.) on which the location of all types of projects and public and private investments is based. Budget: EUR 345.2 million. Implementing Agency: Technical Chamber of Greece

11. Restoration – Preservation – Promotion of monuments of the Acropolis of Athens concerning restoration works on the Parthenon and the walls, preservation of monuments, configuration of the western access, photogrammetry and 3D imprints, etc. The project enables the permanent maintenance and promotion of the monument landmark for the country and the world cultural heritage and a highly symbolic attraction with a catalytic role in attracting tourism in Athens. Budget: EUR 10 million. Implementing Agency: Ministry of Culture

12. Finally, the Digital Welfare program is proceeding to join the Recovery Fund, which is already running and providing – with income and social criteria – a voucher worth 200 euros for pupils, students, for the purchase of technological equipment (tablet, laptop, desktop), actively supporting 325,000 families with 560,000 children and young people aged 4 to 24 years. Budget 129.2 million euros.