The European Investment Bank (EIB) has approved two separate loans totalling €305 million to support infrastructure projects in Spain and Cyprus.
A €175 million EIB loan was granted to Spanish energy company Enagás to finance the development of infrastructure under its 2007 to 2011 Strategic Plan.
The funds represent the final instalment of a loan totalling €1 billion approved by the EIB in 2008 that has been used to support projects that form part of the trans-European energy networks in the gas sector.
The aim is to increase the capacity for liquefied natural gas importation and high pressure gas transmission in various Spanish regions.
Meanwhile, the EIB also approved a separate €130 million loan to the Electricity Authority of Cyprus for a new production unit to enhance electricity supply on the island.
The funds will be used to develop the Vassilikos power plant, which could be retrofitted to natural gas once this becomes available on Cyprus.
The EIB said, "Electricity demand in Cyprus is rising and power plants of this type provide a rapid response to load changes, which makes them suitable for generation of electricity during peak demand."