Greece's government has signed an agreement with a charitable foundation to build and equip hospitals in the cash-strapped country.

Prime Minister Alexis Tsipras signed the agreement with the Stavros Niarchos Foundation Wednesday for a grant valued up to 250 million euros ($307 million.)

The funds are marked for constructing and equipping a children's hospital in the second-largest city of Thessaloniki and new buildings for existing hospitals in Athens and the northern town of Komotini. Funds will also go toward equipping the air ambulance service among others.

The foundation, a legacy of one of Greece's top shipping magnates, has provided millions for various programs in Greece. It is most widely known for building a cultural center housing the Greek National Opera and the national library.