The financing agreement to rehabilitate and modernize the Elefsina shipyard in Greece, was signed on Monday between the U.S. International Development Finance Corporation (DFC) and the ONEX Elefsis Shipyards and Industries (ONEX), with the provision of $125 million loan to Elefsina Shipyards.
The agreement marks the passage of Greece’s largest shipyard into a new era and seals the multilevel upgrade of bilateral relations between Greece and the USA.
At the same time, it is expected to play a catalytic role in the transformation of Elefsina Shipyard into a state-of-the-art shipbuilding hub, not only for Greece, but for the wider Mediterranean region.
The financing of the Elefsina Shipyard with $125 million was approved by the U.S. Congress, in a historic decision for the restructuring plan of the shipyard.
DFC chief executive officer Scott Nathan signed the deal with ONEX and said, “DFC is proud to advance this high-quality infrastructure project that will generate more reliable access to energy and foster greater economic growth and prosperity for our partners across the region.”
The US Embassy in Athens says that DFC financing will help create a strategically critical maritime and energy supply hub for the region.
CEO Nathan joined Greek minister of development and investment Kostas Skrekas and U.S. Ambassador to Greece George Tsunis at the shipyard for the signing ceremony.
ONEX will expand the shipyard’s capacity to repair and upgrade ships, particularly ships that service the nearby Revithoussa LNG terminal.
This will promote increased access to reliable, secure energy in the Western Balkans and Eastern Europe by expanding high-quality infrastructure to support diversification of LNG supply for the region – a critical undertaking amid Russia’s attempts to destabilize regional energy access.
U.S. Ambassador to Greece George Tsunis, said: “I am thrilled to help launch the ONEX Shipyards and DFC’s $125 million partnership to reopen and rehabilitate Elefsina Shipyard. Together the U.S. and Greece are restoring Elefsina as a world-class maritime center, creating up to 1,000 jobs and shared prosperity for our countries through transparent partnerships.”
The shipyard is strategically located near several key gas trade routes.
ONEX will use DFC financing to transform the shipyard into an energy supply hub supporting LNG shipping lanes in the Mediterranean and Aegean seas and supporting Greece’s renewable energy goals.
DFC’s investment is projected to expand the shipyard’s capacity to service up to 200 ships per year.
In addition, the new facilities will include a 30MW solar farm to provide energy to the shipyard and to the local grid. The upgrades will include repurposing part of the shipbuilding infrastructure for the fabrication and assembly of wind turbines.
Watch the video from the signing ceremony of the historic financing agreement:
