HELLENIC FOUNDATION FOR RESEARCH & INNOVATION 2

Along with the Hellenic Foundation for Research and Innovation (HFRI), a national independent public agency set up in 2016, the loan will co-finance basic research activities to be implemented between 2023 and 2030.

The aim is to fund the best researchers in the country to improve the national research and innovation performance as well as the competitiveness of the Greek economy, and thus reduce brain drain. The project will co-finance research activities and costs of research and development (R&D) equipment, as procured by HFRI through competitive calls.

The Project is in line with the objectives of the European Research Area (ERA) and the national Smart Specialization Strategy. It finances R&D activities performed in public higher education institutions and research centres in Greece, addressing a clearly defined market failure, as it supports early-stage R&D for which the markets fail to provide adequate funds because of the uncertainty inherent in these activities and the knowledge spillovers that prevent from fully capturing the economic returns.

The Project will provide job opportunities to young researchers and has the potential to strengthen Greece's innovation capacity, enhancing its competitiveness and economic growth, fostering the EU's

economic, social and territorial cohesion.

Both the promoter (Ministry of Development and Investments) and the beneficiary (Hellenic Foundation for Research & Innovation - "HFRI") have experience from the successful implementation of the first phase of the HFRI project in the previous years.

The EIB's financial contribution for the realisation of this project is deemed significant, as the Bank provides more advantageous terms (longer tenor, availability, grace period, etc.) vis-à-vis most lenders in the Greek market. Moreover, the Bank's support has a crowding-in effect, allowing the Greek government to complement and diversify its funding sources for the project by combining the EIB financing with the Recovery and Resilience Facility and own funds.

The project concerns public research to be carried out in existing facilities, already authorised for the same purpose and not expecting to materially change current R&D practices at these institutions. Such activities create intangible assets (new knowledge and scientific discoveries), which do not fall under the Environmental Impact Assessment (EIA) Directive 2011/92/EU as amended by Directive 2014/52/EU. The EIB will verify during the appraisal the Promoter's standards and principles in respect of environmental and social aspects, in particular the adherence to the relevant EU Directives.

The promoter has to ensure that contracts for implementation of the project will be tendered in accordance with the applicable EU procurement legislation (Directive 2014/24/EU as well as 89/665/EEC) as interpreted by the EU Court of Justice, with publication of tender notices in the EU Official Journal, as and where required.