The EIB loan supporting rehabilitation in the railway sector will co-finance projects with a total cost of EUR 1.2 billion. The individual sub-projects are located throughout Hungary. They are focused on the rehabilitation and reconstruction of various TEN-T railway lines, purchase of 42 Electric Multiple Units for commuter railway traffic around Budapest and installation of a GSM-R system on certain TEN-T corridors.
The project will contribute to improving the efficiency, comfort and safety of the railway system and will thus enhance the attractiveness of rail transport. As a result, the operation will have a beneficial impact on rail transport demand and sustainable long distance transport in Hungary.
This loan is being provided in the form of a Structural Programme Loan and it supports implementation of partly phased major projects receiving funds in both EU programming periods (2007-2013 and 2014-2020). Therefore, in addition to larger projects, the EIB loan may also be utilised to finance smaller schemes, which, due to their limited size, would otherwise not qualify for direct EIB financing.
“EIB funds will co-finance priority projects expected to have a beneficial impact on passenger demand for both commuter and long distance rail transport. These projects will increase railway capacity, comfort and safety, thereby contributing to the attractiveness of this sustainable mode of transport”, stated Mr László Baranyay, EIB Vice-President responsible for lending in Hungary.