Now, from the preparation of the projects, within the next 30 months we should see the completion of projects in the green and digital transition as well as in the modernization of the State, which aspire to change the entire economy.
The Ministry of National Economy and Finance admits that 2024 will be a turning point for the Greek program. This given that we will have to absorb an additional 3.4 billion euros from the installment of 3.5 billion euros that we would receive in the three years 2021-2023. Of this, €1.5 billion relates to the backlog recorded in 2023 and an additional €1.9 billion from the additional €5.7 billion secured by Greece through the attachment of the Greek REpowerEU proposal to the revised national program “Greece 2.0”.
To date, Greece has collected 14.7 billion euros of the 36 billion euros it has secured from the Recovery and Resilience Fund (RESF). Therefore, within the next 30 months it will have to absorb 21.3 billion euros.
This year, Greece has set the ambitious goal of absorbing resources totaling 6.9 billion euros from the TAA, from two tranches it will claim in April (3.3 billion euros) and in September. If he succeeds, the absorption of resources will reach 21.6 billion euros from the TAA. However, the problem from now on will not be so much the collection of installments as the utilization. So far, of the 14.7 billion euros that Greece has collected, it has allocated 5.5 billion euros (about 37%) for reforms and investments.
In a recent event co-organized by the European Commission with IOBE for the implementation of the TAA, the foreign technocrats, who were in Athens to review the implementation of the program so far, kept a low profile. They emphasized the importance of claiming the two tranches from Greece and reminded that there are now only 30 months left for the completion of the program, which will be difficult to impossible to get an extension.
The need for acceleration and the bet of numerous contracts
However, in the private contacts that the European Commission officials had with Greek officials, they showed that the fact that Greece declared for 2023 that it would allocate to its economy 3.6 billion TAA resources and finally allocated 2.1 billion euros. Also, they were not particularly satisfied with the fact that in the middle of the implementation of the program Greece has spent no more than 4.8-5 billion euros out of the total 14.7 billion euros it has collected from the advance payment and the three doses he has received since the fall of 2021, when the Greek program was activated.
Of course, Greece is still among the top six countries that have received the first three installments of the program, while many other EU countries they haven’t even started implementing it. This, even if they are proportionally entitled to much less money than Greece. Therefore, the technocrats of the Commission do not want to spoil – at least not without a very serious reason – the big picture of the implementation of the program with the countries that precede it.
The second major problem discussed is the bet of numerous contracts to come, which should be implemented in tight time frames without delays and without failures.
Assurances
From the Greek side, there were assurances that the “dangerous” projects (with a budget of 800 million euros), i.e. those that had a high risk of creating problems with delays and possible failures, have been transferred to the NSRF, during the interim review approved last December.
Nevertheless, the members of the committee, who from the beginning had doubts whether Greece can cope administratively with an undertaking such as the Recovery Fund, recalled the provisions that exist in the program in case of delays.
The alternatives in the “setbacks”
Based on the Fund’s regulation, if a country is outstanding in any of the milestones or targets associated with a tranche, it can make a timely tranche request by receiving a portion of it. If, for example, Greece has met its loan target, but has outstanding milestones associated with a grant tranche, it can claim the loan portion of the tranche. Afterwards, of course, he should cover the shortfalls within six months and make the request for the balance of the outstanding installment, together with the new one. Commission officials noted that the measure of deferring part of the installments should be used with caution.
They also hinted that individual interventions in the timeline for meeting a milestone or the physical scope of a project can be accepted if there is an issue of force majeure or there is a problem with the project’s budget. And this measure was stressed to be used sparingly.
THE 21+1 BIG PROJECTS WHERE THEY WILL CHANGE THE GREEK ECONOMY
Based on the structure of the Greek program, the… lion’s share is absorbed by the green transition sector. Of the 36 billion euros that are currently the resources of the Recovery Fund, the energy sector now absorbs 11.7 billion euros, i.e. about 1/3 of the total. The following projects stand out in this area:
1 The large energy storage systemsuntil 1.380 MW (pump savings-batteries), which are decisive for the “green” revolution and the development of RES and for which the Greek proposal foresees investments 450 million euros
2 The interconnection of the Cyclades, the overhead line Corinth-KYT Koumoundourou 400 KV and other accompanying projects ADMIE. The Recovery Fund provides for investments 195 million euros.
4 The creation of facilities for sequestering carbon dioxide (CO2) and for its storage, total amount 300 million euros.
5 The electrification of the transport sector with height investments 220 million euros which it also includes subsidies for the installation of approximately 8,500 chargers nationwide.
6 The subsidy for the creation of production units of clean vehicles with 200 million euros
7 Delignitization Western Macedonia and Megalopolis with investments 242 million euros for the restoration of approx 60,000 acres gray soils in its old lignite mines PPC in order to be allocated for agricultural and tourist uses, development of photovoltaic and research centers.
» Public Digitization
The digitization of the Government is one of the most pivotal changes that the Recovery Fund will finance, since according to the Bank of Greece it will be a reform that will continue to increase GDP by 0.3% on its own for many years to come. A total of 1.4 billion euros will be allocated for the digitization of the State. Particularly:
8 Digitization of all State files. It will cost around 550 million euros.
9 Interoperability of Government services, i.e. the ability for one service to be able to electronically communicate with the other and obtain information upon a citizen’s request. It will cost 80 million euros.
10 Implementation of a new Public Procurement Information System in order to complete their electronic implementation and to integrate new sophisticated interoperability services into it. The cost is estimated at 100 million euros.
11 Upgrading of KEPs. It will cost 30 million euros.
12 New fiber optic networks. In combination with the 5G networks, in addition to private individuals, it will also be the property of the state. The cost will be 450 million euros.
13 Programs for smart cities, improvements and extensions to the AADE network for upgraded tax audits.
» Road works-infrastructure
Important road axes, such as its northern part E65 and BOAK and even 10 smart projects and non-infrastructure, are part of the Recovery Fund package.
14 The list includes a total of 12 projects, road axes, such as the northern part of the E-65 highway and the Northern Road Axis of Crete, which correspond to funding of 2 billion euros.
15 The road safety improvement program which has a budget of 450 million euros. It provides for the rehabilitation of the road network and the repair of dangerous road surfaces in various regions of the country in order to improve the level of operation and safety of road transport.
16 The PPP modernization of the railway network with an emphasis on electrification, signaling, telecommunications, electromechanical systems of the line from Piraeus/Athens to Thessaloniki with a budget of 120 million euros.
17 Upgrade interventions at 13 regional airports: A package of projects with a total budget of 107 million euros.
18 Creating smart infrastructures in environment and culture, which includes development where 174 million euros are available.
19 Urban plans: Approximately 250 million euros are directed to the preparation and validation of urban planning plans (local and special) as well as to the demarcation of areas and reception zones for the transfer of the building factor. Change that is considered structural for more rational development throughout the country.
20 Health: The Health package includes modernization and digitization projects with an amount of over 800 million euros. The package includes the modernization of 80 hospitals and 165 Health Centers throughout the country with resources of 350 million euros.
Creation is also included of the patient’s electronic health file, a project that will be subsidized with 278 million euros.
21 Justice: In the critical area of justice the Recovery Fund is financing a holistic reform with resources exceeding 600 million euros. The reform includes a new judicial “charter” for the institutionalization of out-of-court dispute resolution, training of judges and court officials in digital case file management and redeployment of personnel and new judicial infrastructures.
22 Civil Protection: In the field of Civil Protection, the Recovery Fund will have a participation of 400 million euros in the “AEGIS” program. The funding concerns the placement of smart sensors in forests and the completion of logistical infrastructure for protection against extreme natural phenomena.
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