Hungarian Minister of Foreign Affairs and Trade, Péter Szijjártó, announced that the documentation tender for the construction of Budapest-Belgrade railway line was requested by thirty companies, of which two consortia submitted valid applications. Both consortia are Hungarian-Chinese joint ventures.
According to the schedule, the two Hungarian-Chinese JVs must submit their technical bids by the end of July, following which technical negotiations with the two applicants will be held in September, and the contract with the wining applicant will be concluded by late November, or at the very latest by the end of this year.
Following the signing of the contract with the winning bidder, a maximum of 18 months will be available for the project’s planning and licensing phase, while a period of two-and-a-half to a maximum of three years has been determined for construction. Accordingly, the Budapest-Belgrade high-speed railway line must be completed by the end of 2023. “The Budapest-Belgrade high-speed railway line must be completed by the end of 2023 at the latest”, the minister said.
The financial budget determined by Hungarian engineering experts is HUF 525 billion forints (EUR 1.65 billion) plus a 10 percent reserve, meaning financial bids must be within this budget, the Minister said.
The negotiations on the Chinese loan to be provided for the project are still ongoing and there are still a few points that need clarification. The Hungarian Government has given China’s Export-Import Bank (Exim Bank) and Hungary’s Ministry of Finance until the middle of September to come to an agreement on the remaining negotiation part.
Hungary needs to upgrade the 166-kilometer railway line stretching between Soroksár, on the southeast outskirts of Budapest, and Kelebia, on the Serbian border.
Belgrade-Budapest railway line will have a length of 370 km and it is estimated at USD 2.89 billion. It includes the modernisation of existing sections and the construction of new missing rail section to provide direct connection between the two capitals. Of the total length of the railway, around 335 km will need conversion and electrification works, while 166 km of railways will be upgraded in Hungary.
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