Region of Western ‐ Investment Profile

January 2012

0 Contents

1. Profile of the Region of

2. Western Greece’s competitive advantages

3. Investment opportunities

1 1. Profile of the Region of Western Greece

2 Region of Western Greece : Quick facts

Investment incentives quick facts Operational Program‘ Western Greece 2007‐ 2013 ‘: € 1,315 b New Investment law: Subsidies of up to 50% for business plans. Jessica Holding Fund: €15m • Western Greece is one of the thirteen regions of Greece. It comprises the western part of continental Greece and the northwestern part of the .

• Main economic activities include agriculture and tourism services. Demographics and Workforce quick facts Population: 621,000 • As in many other Regions of Greece, production of wine and olive oil is significant. Dairy products are also important to the local GDP per Capita: 68.4% of the EU average economy as well as fish farming, unique to the area and a Contribution to Greek GDP: 5.12% (2008) traditional source of income. Total workforce: 316,000 • Western Greece is quickly becoming one of the top tourism destinations in Greece. The emergence of new hotel units and Unemployment rate: 16,1% new investments in the area have strengthened the local economy and are currently changing the overall profile of economic activity. Source: economics.gr, statistics.gr 3 2. Western Greece ’s competitive advantages

4 Western Greece has a breathtaking geography to offer

•The Region of Western Greece is privileged in terms of the natural environment. The region accommodates many, various and significantly sensitive ecosystems. It is characteristic, that from the eleven wetlands of international importance that exist in Greece and who have also joined in the Ramsar agreement , the three are located in Western Greece Region. These are: ‐Lagoon of Messologi ‐Amvrakikos Gulf ‐Lake Kotychi Furthermore the Region is characterized by the existence of protected aesthetic forests and monuments, and vital places of great natural beauty.

• The total area of the Region is 11.350 km2 and covers 8.6% of the total area of the country. The largest percentage of the land is mountainous (45.3%) and hilly (25.6%), while only 29.1% is flat. The Western Greece has also, an extensive coastline and its total area is bordering with the and the Gulf of Amvrakikos, and .

•The geomorphology of Western Greece has great diversity. It includes mountains with a very high altitude ( 2.335m, Erymanthos 2.222m, Panachaiko 1.926m), large natural lakes (Trichonida 95,8km2, which is the largest of the country, Amvrakia 14,4km2, Lysimachia 13m2, Kaiafa etc.) and rivers (AhlAcheloos 220 km, whic h is thesecond river in lthlength of Greece, Peneus, Alpheus, Evinos, Selinountas, , Peiros and Glaucus).

5 The Region of Western Greece boasts significant performance indicators

Welfare indicators Key performance indicators

Western Total 2001 2002 2003 2004 2005 2006 2007 2008 2009 Indicator Greece Greece Greece Population (000s)** 621,9 9.337,6 GDP (€ m) 6.642 7.026 7.735 7.992 8.485 9.140 9.850 10.351 n/a 237.494

% Agriculture 16.3% 15.1% 13.7% 12.9% 12.5% 10.0% 10,4% 9.6% n/a 3.8% €14.4 €21.3 GPD per capita * (000s) (000s) % Industry 22.9% 20,8% 21.0% 21.3% 20.8% 22.8% 20.5% 22.3% n/a 16.3% €15.4 €16.7 Income per capita * % Services 60.7% 64.1% 65.3% 65,9% 66.7% 67.1% 69.1% 68.1% n/a 79.9% (000s) (000s) New houses built 7104 8945 7619 7827 12395 6699 6265 4807 4571 61,490 €10.7 €18.8 Savings per capita (000s) (000s) Savings (€m) n/a 3,556 3,912 4,340 5,202 5,704 6,455 7,529 7,959 211.469 Population growth per ‐0,2 0.9 Cars (000s) 119 125 131 138 159 166 175 183 186 5,132.0 1,000 inhabitants* Power Primary school 55.902. consumption 2.101.860 2.204.478 2.352.057 2.422.284 2.409.610 2.579.036 2.650.789 2.742.879 n/a students per 1,000 55 56 000 (MWh) inhabitants 5* hotels 1 1 1 1 1 2 2 52 3 280 Unemployment rate** 16,1% 16,3% 4* hotels 14 14 17 20 23 25 25 29 30 1,164 Source: economics.gr, ΟΑΕΔ ; * Indicated data refer to 2008, otherwise to 2009 **Q2 2011 Source: economics.gr

6 Western Greece attracts significant domestic as well as foreign investment

Greek vs Foreign Investments per region (2004‐2010)

1400

1200

1000

800 million) (( 600

Euros 400

200

0

Region Foreign Greek

Source: Invest in Greece Agency

7 Western Greece offers an ideal environment for investment….

Western Greece’s advantages ..are enhanced by investment incentives

Western Greece boasts an number of attractive features such as: • Under the new Investment Incentives Law*, Western Greece 1. SiStrategic lilocation lin king the PlPeloponnese wihith themailinlan d enjoys attractive investment incentives varying from 40% to 50% Greece and . It is regarded as the western gateway to the of the total investment cost, according to the area and the size of and Western the company 2. The organized industrial area (VI.PE of Patras) and the industrial • The new Law focuses on supporting sustitaina ble park Glaukou of Patras (VIO.PA) are providing opportunities for investment projects with efficient tax breaks, favorable further development of manufacturing activities loans and state aids in selected business activities 3. Great existing infrastructure (New Port of Patras, Commercial port Platygiali , PATHE, Rio‐ Antirio Bridge) provides direct access to markets both domestic and overseas 4. Operation of Research Institutes with International Range 5. Rich Aquatic Resources 6. Tourism and Cultural resources (the famous Ancient Olympia, the Ancient , the host city of Olympic Games etc) 7. Environmental resources that are protected by international conventions (NATURA, RAMSAR). 8. Opportunity for further development of Wind & Hydro Energy ….with improving infrastructure

* Please refer to the full text of the new Law 3908/2011 for detailed and analytical information 8 Large Infrastructure projects through a Strong Development Program (P.EP. 2007‐2013)

Ongoing Development Projects in the Region of Western Greece ¾ Upgrade of the Road Killini ‐ National Route of Patras – Pyrgos. Budget : 7.8 million € ¾ Port The overall project aims to the development and exploitation of the tourist port Katakolo Ileias, which is the largest cruise destination in Greece and also is associated with the famous tourist destination of Ancient Olympia. ¾ Paraionia Highway This project involves the construction of anew road and tunnel in the Etoloakarnania prefecture Major Development Activities in 2011 Ongoing project with budget: 7.2 million € ¾ Construction of a new Road to the 9 110 New Projects included in the NSRF, with total budget 170 landfill Stratou, Etoloakarnania prefecture million € Budget : 11.3million € 9 19 million €, through the Investment Law for the subsidy of ¾ Completion of the Construction of new investments in tourism, manufacturing and service the ”General Hospital Agriniou “, Budget : 46 million € sectors ¾ Development of the General Hospital of Patras "Agios 9 Numerous of large and small infrastructure projects are Andreas", Budget : 22.5 million €. under implementation or tendering process (e.g. New Port of Aigion) 9 Activation of the Urban Renewal Scheme, with total budget 35 million € 9 Approval of 15 million € for the sustainable development of the Region through “Jessica Program”

Source: Western Greece Region 9 3. Investment opportunities

10 Reasons to Invest in Western Greece

1. Located in a key strategic position at the center of Greece. Tourism

2. It has highly trained, hard working and multilingual labor.

3. Investments and entrepreneurship is linked and aided with Renewable Energy Sources scientific research and technological development with the support of the local academic and research institutions.

4. It offers a plethora of advanced business services to investors (banking, financial, legal, accounting, technical, advisory etc). ICT and Life Sciences

5. A pioneer in modern telecommunications infrastructure, very important social infrastructure, such as those in health care, and continuously improving basic and transport infrastructure. Food & Beverage 6. It is a center of international interest in the energy sector, given its strategic lilocation, the huge widind and solar resources, as well as possession of local experience and expertise. This interest is expected to grow and expand in the coming years. Waste management 7. The consistent and unwavering support of the local Authorities of the Region, as well as the hospitable and business ‐ friendly people of the island.

11 Tourism

12 Tourism sector in Western Greece: What and Why?

Tourism infrastructure Unique competitive advantages

• Western Greece is served by 2 airports ( and Aktio) •Long unexplitdloited pritiistine bhbeaches. and there are also plans for the development of • airport. A Region of unspoilt natural beauty: 11 Ramsar areas and protected areas like Mesolonghi lagoon, Amvrakikos Bay, Kotichi • Western Greece is also served by 6 Ports : Bay, Islands complex. Patras, Killin i, Kataklkolo, Amfiloc hia, Egio, Messolhilonghi. •Existing infrastructure and undergoing projects will improve There is also an Industrial Port Zone at accessibility: Rio‐ bridge, two airports, new highways Astakos, Etoloakarnania. connecting the Region with , Epirus, the rest of Peloponnese. Existing road network exceeds 895km • Ski center in Kalavrita. •Patras Port: The main (western) entrance of Greece to Europe. The port can accommodate cargo vessels of up to 25,000 tons and • According to the Hellenic Chamber of Hotels in 2010 in passenger ships up to 16,000 tons and a length of 220m. Its Western Greece there were 278 Hotels with almost 10,000 facilities also include the marina of Patras with 450 berths. The rooms and 19,556 beds. 2,972 of these beds belonged to NEW Southern Passenger Port of Patras has jagged wharfs of 5* classification. 992m and consists of 15 docks. • Greece holds in 2011 the 3rd place among 45 countries and •Unique archaeological sites and historic places of great regions across Europe, South Africa, Morocco, Tunisia, New importance: Olympia: The birthplace of the Olympic Zealand, Brazil, Canada and the Caribbean, in the European Games, Mesollonghi: The sacred town of the Greek War for Blue Flag Program with 379 bbheaches and 9 marinas Independence. •Pubic and private Investments implemented and in the pipeline • 10 Blue Flag beaches are located in Western highly upgrade the mix of the tourism product in the region Greece 13 This is THE place to explore

Indicative places of cultural importance

Museums •The Archaeological Museum of Ancient Olympia •The Archaeological Museum, the Press Museum and the new Museum of Patras •The Museum and the Art Gallery Trikoupi, at Messolonghi •The Archaeological Museum and Papastratio Public Library at •The Archaeological Museum in Egio and the Museum of Folk Art in Klitoria

Archaeological sites and monuments of the Region include:

Sites: Thermo Trichonis, Stratou Agrinio, Plevrona Messolongi, Ancient Olympia, Elis, Fygaleia Ilia. Medieval and Byzantine : , , Angelokastro, Antirion Etoloakarnania, Rio and Patras in Achaia and in Ilia: and Kyllini. Places of Historical Importance: Messolonghi Memorial, Agia Lavra Monastery. of Kyllini and Ancient Elis, the city hosting the Olympic Games. Ancient Fygaleia. The Temple of Epicurean Apollo is the first nearly complete preserved temple in which are represented for the first time all three architectural styles of antiquity: Ionic, Doric and Corinthian.

14 Tourism in Western Greece: Facts and ffgigures

¾According to the Hellenic Chamber of Hotels in 2010 in Western Greece there were 278 Hotels with almost 10,000 rooms and 19,556 beds. 2,972 of these beds belonged to 5* classification, 4,140 beds to 4* classification, 5,440 to 3* classification and 5,980 to 2* classification.

¾There are also in the Region 28 privately run camping sites.

¾In 2010 the Archaeological site of Ancient Olympia received 399,891 visitors, while the Olyypmpia Archaeological Museum was visited by 45,953 visitors.

¾Aktio airport received c. 150,000 international passengers in 2011.

¾Patras port statistics (2010): 1,304,817 passengers, 239,951 trucks, 220,450 vehicles

¾Katakolo port received 429 cruise boats in 2011, a 20% increase compared with 2010, and 820,000 passengers.

15 Major tourism attractions

Ilia Achaia Etoloakarnania ¾Olympia ¾Kalavrita ski resort ¾Cyclopes Cave Archaeological Site ¾Winelands of Achaia ¾The Great Kleisoura Ancient ¾Rio Casino Gorge ¾Temple of Aphrodite ¾The “king ” of carnilivals ¾Lakes reflecting ¾Temple of Epicurean in Greece beauty, Voulkania Apollo ¾The Archaeological Lake, Trichonis Lake ¾Ancient stadium of Museum of Patras ¾Lagoon of Messolonghi Olympia, Temple of Zeus ¾Voraikos Gorge ¾Byzantine Castles at Olympia ¾Monastery of Agia Lavra ¾Monasteries ¾The Wall of Dymaeans ‐ ¾5 Museums PhitiPrehistoric ¾Kaiafas Thermal Spa ¾Lagoon of Kotychi ¾Strofilia Forest

16 Various tourism segments make up an investment opportunity in the region

Cruises and Sea tourism Eco Tourism Cultural and religious tourism

Integrated Resorts Development of existing state & private assets

17 Tourism: Investment Opportunities

Investment opportunities in Tourism sector emerge from....

The construction of Cultural and the Race Track religious tourism in exploiting the excellent potential of the region

The development Important of Thermal tourism Spas in Kaiafa investments in and Killini Ilia to upgrade the tourism product of the The existence of Cruise subsector environmentally Region protected areas, caves, around Patra and gorges to develop Katakolo Port special forms of tourism which is the busiest cruise port in Greece

18 Tourism: Investment Opportunities

Investment opportunities in Tourism sector emerge from....

There are no 5* Hotels in the Prefectures of Achaia and Etol oak arnani a

The gap in conference centers to host big scientific events

Development of Public Tourist Real Estate Assets in the pipeline: Rio‐Antirrio, Kaiafa thermal spa

19 Indicative Investment Projects

Invest in Greece Agency maintains a portfolio of investment projects in all business sectors and Regions of Greece.

As far as Tourism in Western Greece is concerned the portfolio of Invest in Greece includes:

¾LdLand plltots tha t could be used for ttiourism ddlevelopmen t ¾Mixed use tourism projects under development ¾Tourism facilities for sale or looking for co investors

20 Land plot next to the Rio‐Antirrio bridge Region: Western Greece/Etoloakarnania

Project Introduction: The project aims at the development of around 60,000 sq.m. of new buildings on the available land plot of 223,000 sq m. The development plan included: a 600 bed five star hotel, a conference and exhibition center, a marina, a maritime industry center etc. The land plot used to be the construction site of the Rio‐Antirrio Bridge that has started operation in 2004. Project owner: Hellenic Public Real Estate Corporation Mode of cooperation: Concession through Public Tender/PPP

Area description The land plot is located in Antirrio next to the Rio‐Antirrio Photo bridge and was used as its construction site during the construction period. It is just 210 km from Athens, 40 km from Mesollogi, which is the capital of Etoloakarnania, 5 km from Rio University Hospital, 10 km from Patra 3th largestagest ctycity oof GGreece eece adand oneoe ofo thete bbiggest ggest poports ts oof tethe country, 160 km from Aktio airport, and 53 Km from Araxos airport, 90 km from the Astakos port and 125 km from Olympia, the original site of the ancient Olympic Games. The National Airports at Araxos and Aktio host scheduled and charter flights during the summer season. Additionally, the Athens International Airport is a 2,5 hour trip from the land plot.

21 Indicative private investment opportunities

Upscale tourism development next to Olympia The project entails the development of a mixed use tourist complex, comprising of two upscale Hotels and numerous luxury villas. The project will be developed by one of the most prominent Greek hotel chains on three already owned land plots in Ilia Prefecture, next to the world famous Ancient Olympia site.

Land for tourism development in Peloponnese (Killini) Land plot of 309,750sq.m. with a beachfront of 1,200 m. It is located 65 km away from Patra and 60 km away from Olympia. The property could be developed for tourism purposes, as 155,601. sq.m. of the whole area are characterised as not being a forest. The property also includes around 1,000 olive trees.

Land for tourism development in Western Greese (Astakos) Coastal land plot of 350,000 sq.m. 7 km away from Astakos town. 45,500 sq.m. are suitable for tourism development, while on the rest 290,000sq.m. tourism residences could be developed. The landscape of the land plot has smooth slopes and provides beautiful views to the sea. The beach in front of the land plot is one of the most famous in Western Greece.

22 Renewable Energy Sources & Waste Management

23 Renewable Energy Sources – Unexploited Capacity

Western Greece has unexploited capacity in Solar and Wind energy production. As shown in the attached Maps the potential is tremendous.

Solar energy capacity Wind energy capacity

24 Investment opportunities: Renewable Energy Sources – National Targets

Targeted participation of RES & conventional technology in electricity generation for the year 2020 in market shares & numerical targets

• Targets set by the Committee for the National Energy Strategy • Targets are binding for the Greek government • Wind energy is expected to dominate electricity generation from RES

7.500 National Targets for the year 2020

Participation of RES & Conventional Technology in Electricity Generation for the year 2020 4.650

PV 1,44% Hydro 6,08% Biomass– 3.237 Biogas Geothermal 2.200 0,24% 0.53% 1.297,7 Wind 24,09% 350 0 120 198,3 0 250 44

Conventional Concetrated Hydro Geothermal PV Concetraded Wind Biomass 66,90% Solar 0.73% Solar Capacity 2010 Target 2020 Source: YPEKA, National Renewable Energy Action Plan

Source: Committee for the National Energy Strategy 25 Investment opportunities: Waste management

EU imposed targets …create sound investment opportunities

According to EU and national directives Greece should achieve • Creation of modern, integrated facilities for treating and the following targets: disposing municipal solid waste a) by 2020, the preparing for re‐use and the recycling of • waste materials such as at least paper, metal, plastic and Selective collection at source and further recycling of glass from households and possibly from other origins as municipal waste far as these waste streams are similar to waste from households, shall be increased to a minimum of overall 50 • Construction of suitable transfer station networks and %byweight recycling centres b) by 2020, the preparing for re‐use, recycling and other material recovery, including backfilling operations using • Environmental sound management of industrial, medical waste to substitute other materials, of non‐hazardous construction and demolition waste excluding naturally and hazardous waste occurring material defined in the list of waste shall be increased to a minimum of 70 % by weight. • Rehabilitation of the existing landfills

• Energy recovery from organic waste

• Water treatment and sea or brackish water desalination

• Wastewater and sewage treatment

26 Green IttInvestments ‐ New OtitiOpportunities

Big Waste Projects in the pipeline Highly exploited area with growing capacity Funds of 60 million Euro have been allocated to the area for the development of waste management 113 MW installed capacity generated units in the next 3‐5years. from Wind Parks The project ‘Wastewater management of the 42 MW installed capacity generated Municipality of Patras’ , was included in the from Small Hydro Operational Program "Environment and Sustainable Development" of the Ministry 48 MW installed capacity generated from PV Parks of Environment, Energy and Climate Change on January 16, 2012. Budget : 24 million €

27 Investment Opportunities : Ongoing public projects in the Region of Western Greece

¾ On going tender for non‐exclusive seismic surveys in Ionian Sea ((gRegion of Western Greece) and the sea region south of . Submission date for bids: 2/3/12

¾ International tender (“open door” procedures) for assigning three areas for gas and oil exploration (estimate of total 300 million barrels of crude): ‐ Gulf of Patra (Western Greece) Ionian Patra ‐ (Nortwestern Greece) Sea Katakolo ‐ Katakolo (Southwestern Greece) Submission date for bids: 2/7/12

Source: Ministry of Environment, Energy and Climate Change ICT and Life Sciences

29 Top notch research takes place in the Technology cluster of Patras, offering highly attractive location opportunities for high‐tech companies

Business attribute Patras

Thessaloniki Foundation for Research and Well educated labor force 9 Development Institute of Chemical Engineering and High Temperature Chemical Processes (ICE‐HT) University/ Private sector Patras SiScience PkPark (PSP) cooperation potttilential 9

University of Patras Research Academic Computer Technology Institute Language expertise 9 Industrial Systems Institute Patras Institute of Nanocrystalline and Athens Amorphous Materials Institute of Environmental and Applied Business parks / incubators 9 Biology Institute of Genetic Diseases and Biomedical Research Industrial areas 9

Investment incentives 9

Iraklio

30 R&D in Patras: The Institute of Chemical Engineering and High Temperature Chemical Processes (ICE‐HT)

Institute of Chemical Engineering and High Temperature Chemical Processes

• The Institute of Chemical Engineering and High Temperature Chemical Processes (ICE‐HT) was established and began •Currently,ICE‐HT runs ca 60 RTD projects in cooperation with operating at Rio‐Patras in 1984 as an independent academic numerous industrial enterprises, universities and research institute. institutes from Greece, as well as from other EU‐member • In 1987 ICE‐HT was incorporated into the structure of the countries, USA, Japan, etc. These projects are funded by Foundation of Research and Technology‐ (FORTH). This national and EU competitive R&D programs, and also directly comprises of a network of seven institutes that report by industrial enterprises. directly to the General Secretariat of Research and •ICE‐HT has its own 6200 sq.m. facility at Rio and is located Technology of the Ministry of Education, Lifelong Learning nearly10kmNEofthecityofPatras,atadistanceof2kmfrom and Religious Affairs. the and close to the facility of the Science • In addition to fundamental research, the Institute currently & Technology Park of Patras. The ICE‐HT laboratory and conducts applied and technological research in a great variety support fac ilities of are of hig h specifica tions and excellen t of fields and provides specialized services to industry. capability., with research units such as the integrated high • The number of staff members and research associates of ICE‐ vacuum system (XPS, UPS, AUGER, TDS, EELS, etc.), and the HT is approximately 120. micro‐RAMAN spectrophotometer.

31 R&D success story: the ecosystem of Patras Science Park (PSP)

About Patras Science Park

•Patras Science Park (PSP) is an active organization established 15 years ago. • Today, a remarkable number of new and strong enterprises are operating under the auspices of PSP, most of them are inventors, adepts and users of new technologies, and PSP deserves to look forward in the future with trust and optimism •The strategic target of PSP is to establish an IiInnovative BBiusiness Area in the RRiegion of West Greece, which will be a development and guidance tool for this Region towards the “rising innovative economic‐productive frame” by facilitating – additively and alternatively‐ new economic, productive and business activities in the region. •The Park’s building boasts all necessary facilities and has a total space of 4700 sq.m. •22 companies are currently hosted at PSP with 150 research staff •Member of the International Association of Science Parks (IASP) . 32 Alternative investment opportunities within value adding services

Depending on the advantages to be exploited, different projects can be realised

Software EllExcellent talent Areas of R&D development pool expertise in Patras Microchip and Advantage 1: MEMS design Information and Competitive wages R&D lab Communication Technology

SEE(MENA) or EU service center Pharmaceuticals Geographic SEE(MENA) or EU Advantage 2: location training center Nanotechnologies Regional support center Renewable Energy Sources

Regional Advantage 3: Strong market Chemicals headquarters

33 Food and Beverage

34 Food & Beverage: An overview

Key Area Products …and some unique characteristics

• Olive Oil: Total Production between 35 and 40 k • Fish farming: West Greece holds app. 48% of Greece’s Tones, whilst production of excellent quality olive oil lagoon and lake areas, and its unique geography has led to ranges between 12‐18k tones. extensive and highly successful fish farms. West Greece produces app. 12.5% of EU’s total production in bream and • Citrus Fruits: Production reaches 110k tones, mainly sea bass. oranges and lemons • Wine Industry: The area has a long tradition of wine • Kiwi: Impressive growth over the last 10 years. Production production, currently including 4 PDO (ΠΟΠ)and6PGI reaches 5k tones annually. (ΠΓΕ) wines. West Greece produces 232k HL of • Vegetables:Watermelon, melon, strawberry, cabbage, aspa wine, about 7% of Greece’s total production ragus, potato, peppers, carrot etc .Production of around 175k tones.

• Livestock: A total value of 312,32 Euros (2007), including various dairy and meat products. A great presence in organic/bio meat. Aetolkloakarnania hlholds the top spot in organic livestock production in Greece.

35 Investment opportunities: FdFood & Beverage

Recent Developments/New Opportunities

• A new law recently introduced liberalizes the fish farming industry, hence offering unique opportunities for new investments in an already successful sector of the local and Greek Economy.

• IttInvestments in unique and organic proddtucts such as the local production of globally famous wines, (Mavrodafni etc).

• Recent investments in the area of Patras in the dairy industry (the new Friesland Campina Unit) have boosted the local dairy production , and highlighted opportunities for potential investors.

• West Greece’s multifaceted landscape and its adaptability in new products could lead to investments in energy crops, or intensified production of relatively newly introduced products such as asparagus and pomegranate.

• Further Investments in the organic/bio livestock industry.

36 37