Infrastructure projects in Greece suffer from systematic slippage both in preparation and execution, with an average of 23 months of slippage in preparation/design and 28 months of slippage in execution/construction (Source: PwC, Infrastructure in Greece, 2019). In the next years starting in 2021, Greece is expected to receive huge amounts of funds under the next Multiannual Financial Framework (Recovery and Resilience Facility and European Structural and Investment Funds) to implement large infrastructure projects of national importance in a given time-frame. To meet this challenging goal the Greek Authorities have to find a way to accelerate projects and maximize the absorption of the EU funds. Professional Infrastructure Project Preparation is required, eventually supported by experienced international institutions. In the following document, the key principles and global best practices in infrastructure project preparation are summarized. Is the Greek Public Sector able to apply them during the next years successfully?

1. INFRASTRUCTURE
PROJECTS PREPARATION
Costas Kappos, Senior Executive and Advisor, 2021

2. Costas Kappos, Senior Executive and Advisor, 2021
THE IMPORTANCE OF EFFECTIVE RISK MANAGEMENT FOR THE GLOBAL
INFRASTRUCTURE DEVELOPMENT
» Infrastructure development is a powerful force in today’s global
economy. Hundreds of billions of dollars are being spent every year
improving transportation, power, ports and terminals, and energy
capabilities.
» Handling with politics, public policy, law and regulations, finance,
engineering, construction and operations the global infrastructure
development involves a significant amount of risk.
» Risk management and effective risk mitigation is the most critical
success factor of any infrastructure project in the world.
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3. Costas Kappos, Senior Executive and Advisor, 2021
WHAT IS INFRASTRUCTURE PROJECT PREPARATION
» Project Preparation is a critical enabler of infrastructure development
and has been identified as a key pillar in the G20’s strategic roadmap to
develop infrastructure as an asset class.
» Project Preparation consists of all the work necessary to ensure that a
proposed project is feasible and appropriate and that it can be
successfully implemented.
» The process ensures the identification and elimination of key risks at
the earliest possible time and maximises development opportunities
by ensuring that projects are well conceptualised.
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4. Costas Kappos, Senior Executive and Advisor, 2021
INFRASTRUCTURE PROJECT LIFE-CYCLE
Project preparation
Consists of all the work
necessary to ensure that
the proposed project is
feasible and appropriate
and that it can be
successfully
implemented. Eliminates
key risks at the earliest
possible time.
Phase 1
Detailed Design
Prepares and provides
information on the
implementation,
including any kind of
specifications, the
completion of all tender
documents. Selects
providers. Signs
contractual agreement.
Phase 2
Implementation /
Construction
Produces final
(construction) product
that meets the
specifications, within
project timeframe, cost
constraints, and quality
standards, as agreed
upon in the contract.
Phase 3
Handover
Ensures that the final
project results confirm
with the contractual
agreement. Evaluates the
performance of all
construction project
stakeholders in regards
with their needs.
Phase 4
Operating and
maintenance
Protects (physical)
assets and ensures the
continuity of their
revenue stream.
Phase 5
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5. Costas Kappos, Senior Executive and Advisor, 2021
INFRASTRUCTURE PROJECT PREPARATION STAGES 5
Project Identification
and Prioritization
Projects assessed
against defined
selection criteria &
prioritized via an
initiation timetable.
Typically undertaken
at the programme
level to identify
Strategic Projects.
Stage 1.1
Preliminary
Assessment
Identifies key risks &
opportunities prior to
commencing with full
scale preparation.
Defines scope &
budget for detailed
preparation phases to
follow.
Stage 1.2
Pre-Feasibility
Includes - if
applicable - site
suitability (legal,
environmental etc),
stakeholder support &
funding availability.
Broad project concept
& rough capital &
operational costs are
defined.
Stage 1.3
Feasibility
Ensures project is
feasible, appropriate
& sustainable.
Defines planning,
design, institutional &
cost parameters
(capital &
operational) at a
preliminary level.
Stage 1.4
Funding
Funding approvals or
agreements with
implementation
partners as state
organizations, private
investors, institutions
etc. are concluded.
Stage 1.5
Monitoring and
Review Preparation
Process
Review Project
Preparation
effectiveness. Gives
feedback to the
project stakeholders.
Stage 1.6

6. Costas Kappos, Senior Executive and Advisor, 2021
CHARACTERISTIC RISKS IN INFRASTRUCTURE PROJECT PREPARATION 6
» Objectives, experience and
sophistication of public sector
partners
» Financial Bottlenecks
» Insufficient project organization
» Jurisdiction and legal system
» Economic and political risks
» Industry (sector) risk
» Quality of technical, legal or
financial advisors
» Regulatory system and
conditions
» Environmental, social, and
governance (ESG) risks
» Technology / suppliers risks
» Contractual risks

7. Costas Kappos, Senior Executive and Advisor, 2021
SUPPORTING AND FINANCING PROJECT PREPARATION 7
PROJECT DEVELOPMENT FUNDS (PDFs)
Governments set up PDFs to provide dedicated
financing for project preparation. These funds tend
to have a relatively greater focus on developing
PPP projects.
PROJECT PREPARATION FACILITIES (PPFs)
PPFs are set by Development Banks and other
multilateral entities to address the scarcity of bankable,
investment-ready project pipelines. PPFs also provide
technical assistance and capacity building support.
GOVERNMENT BUDGETS
Mostly a dominant portion of project preparation is financed by public spending.
Project
Preparation
counts for
3%-5% of the
total project
costs *
* in developed countries

8. Costas Kappos, Senior Executive and Advisor, 2021
THE ESSENTIALS OF PROJECT PREPARATION FACILITIES (PPFs) 8
TYPES
» PPFs that pool resources and are managed
in partnership by more entities and
development banks
» Regional, sub-regional or country-focused
PPFs
» PPFs that support PPPs or public sector
projects or both
» PPFs funded with internally retained
earnings or/and external donor support
GOALS
» To provide financing support to
governments for investing in early stage
project preparation
» To help them in improving the efficacy of
project preparation practices
» To reduce the time span from project
development to financial closure
considerably

9. Costas Kappos, Senior Executive and Advisor, 2021
THE SIGNIFICANCE OF ADVISORS SELECTION AND MOBILIZATION FOR
PPFs 9
Create significant and
lasting local capacity
improvements
● This is because, as at the end of the day, the projects
are owned, managed and supervised by national and
local governments.
Consider the use of panel
or framework consultancy
contracts
● The use of well-designed panel or framework
consultancy approaches can achieve both a flexible
and timely mobilisation of consultants.
Procure for both quality
and cost
● Advisory services must be flexible and transparent to
ensure that assignments can be efficiently executed
with high standards of performance, while providing
the necessary accountability.
Seek the right mix of
international and local
advisors
● Engaging experienced and well-known government
advisors can lift investor-comfort levels in the face of
higher perceived risk profiles for (developing and
emerging) country investment markets.

10. Costas Kappos, Senior Executive and Advisor, 2021
>50 billion $
Estimated total value of projects under PPF support since 2015
>80%
Of today PPFs has been created after 2015
>600 million $
Has been committed to PPFs since 2015
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11. Costas Kappos, Senior Executive and Advisor, 2021
LINKS TO EXISTING PROJECT PREPARATION FACILITIES (EXAMPLES) 11

12. Costas Kappos, Senior Executive and Advisor, 2021
SET UP OF NEW PROJECT PREPARATION FACILITIES FOR GREECE
STRATEGIC PROJECTS
PREPARATION FACILITY
» The Greek Government will develop a
Strategic Projects Pipeline, which will
include large infrastructure projects funded
by the Multiannual Financial Framework
» To accelerate their preparation and
maturation a new Project Preparation
Facility will be established supported by an
international financial institution as a
partner
» The Facility will prepare priority investment
projects in energy, environment, transport
and digital sectors, having a budget in
excess of €20 million
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EBRD PPP PREPARATION
FACILITY
» In December 2020 EBRD and Greece
announced the establishment of a new PPP
Preparation Facility
» Greece will fund the Facility with €20 million
» The Facility will focus on education, health,
sustainable urban infrastructure, water and
waste management
» The EBRD will manage the Facility, which
will provide project preparation, training
and advisory services, policy support and
institutional strengthening activities related
to the infrastructure sector in Greece

13. Costas Kappos, Senior Executive and Advisor, 2021
LINKS TO SOURCES FOR THIS DOCUMENT
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14. Costas Kappos, Senior Executive and Advisor, 2021
DISCLAIMER
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While the information contained in this document has been obtained from sources believed to be reliable, I disclaim all warranties as to the
accuracy, completeness or adequacy of such information.