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PPP contract signed for the rural broadband development project in Greece - lot 1

29.12.2014 - 00:00

The PPP contract was signed for the rural broadband development project in Greece - lot 1 and the Special Purpose Vehicle « OTE-RURAL NORTH » founded by the private partner «ΟΤΕ».

The projects' goal is the installation and operation of necessary infrastructure for broadband internet access, in order to achieve digital convergence of the most disadvantaged rural areas of Greece with the rest of the country. More specifically, the project will provide faster internet in 1,192 settlements with a total population of 170,961 inhabitants. The projects aim to achieving economic and social development and improving the quality of life of residents in mountainous and island regions of the country. Broadband is expected to have a positive effect on the creation of new businesses and jobs, while contributing to the improvement of services provided to the population, in areas such as health, education and tourism.

The network development and maintenance cost is approximately EUR 70 million while the investment operational cost is approximately EUR 130 million. The project will be funded by EU funds, while the private partners will cover the operational costs. The total duration of the contract is 17 years.