European loan to fund Hungary’s ambitious railway modernisation efforts
The Hungarian government has formally applied for a loan from the European Investment Bank (EIB) to support its railway renovation efforts, Minister of Construction and Transport János Lázár announced via Facebook. The requested funds will cover half of the HUF 800 billion (EUR 2 billion) infrastructure development program, with the government financing the other half. This initiative is part of a broader HUF 1.2 trillion (EUR 3 billion), 10-year plan aimed at comprehensively modernising Hungary’s rail transport system.
Another huge loan to be taken out by the Hungarian government
According to Telex, Lázár explained that in the first phase of the project, 119 kilometres of railway tracks would be cleared of speed restrictions, while another 490 kilometres would be upgraded with cutting-edge central traffic control systems. He emphasised that these improvements will enhance the safety and reliability of rail travel across the country, reducing both travel times and delays.
Recent railway accidents have added urgency to these developments. One notable incident involved the derailment of the Claudiopolis InterCity near Keleti Station in Budapest, which disrupted services for days. Though no one was injured, the derailment highlighted the pressing need for infrastructure improvements. According to initial investigations by the Ministry’s Transportation Safety Organisation, broken bolts caused the accident.
Hungarian railways in critical condition
These events have sparked renewed public debate over the condition of Hungary’s railways. Lázár acknowledged that rail transport has long been a problematic area, but the government has a concrete plan to address the issues. In August, the minister unveiled a five-point action plan that includes securing a EUR 1 billion loan for railway construction, purchasing decommissioned Western trains, overhauling several stations, and replacing MÁV’s leadership.
Lázár also commented on the financial challenges posed by the EU’s withholding of funds earmarked for Hungary. “The delay in EU payments has hit the railway sector particularly hard,” he noted. “Until the EU fulfils its obligations, we must secure alternative funding sources. National funds are already in place, and once the EIB approves the loan, we will begin work immediately.”
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