In order to complete the modernization of Budapest’s M3 metro line, the state will be required to take out a loan for HUF 60 billion (EUR 193 million), the repayment of which could be as much as HUF 74.5 billion (EUR 239.7 million) by the time the loan is fully repaid in 15 years, The Budapest Business Journal quoted online news portal vs.hu reports.
According to local media, the price is high by comparison to similar projects, and a bidder that said it gave a lower price has submitted an official complaint with the EC for being disqualified in the tender. Budapest public transport company BKV and Metrowagonmash signed a EUR 219 mln (HUF 9.006 billion) metro trains contract for the modernization of 37 trains on the capital’s M3 metro line, which according to BKV must be carried out as soon as possible given the dire condition of the line.
OTP, Erste , K&H, MKB and UniCredit have agreed to collectively guarantee the loan that would be used to renovate the metro line, the daily wrote. The government approved the financing despite an initiative by the city in May requesting the Competition Authority (GVH) to investigate why only one proposal was submitted to the tender, vs.hu noted, adding that this raised suspicion that the banks might be involved in cartel activity to increase interest rates. Since then no information has been made available on GVH’s website.
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