Hungary and China have signed an agreement for Budapest-Belgrade railway modernisation, representing a first major cross-border CEE investment project financed by China. The document was signed on the 5th of November during a China-CEE summit in Riga.
The total cost of Budapest-Belgrade railway modernisation project could reach up to HUF 700 billion (EUR 2.3 bn), according to a report published by Hungarian daily Magyar Nemzet.
Minister of Foreign Affairs and Trade Péter Szijjártó also stated that as part of the agreement MÁV was entrusted with the establishment of China-Hungary joint venture company that will be responsible for carrying out the modernisation of the Budapest-Belgrade railway line.
The agreement on starting financial negotiations was also signed. The terms of the credit granted for the investment will be closely related to the proportion of the Hungarian companies participation, in order for Hungarian companies to participate in the larger share of investments, maximizing the benefits to the national economy.