Budapest, December 21 (MTI) – Hungary’s government on Monday signed a ten-year track operation agreement with state-owned railway companies MAV and GYSEV.
The agreement was signed by national development ministry’s state secretary for public transport Laszlo Taso, economy ministry state secretary for the budget Peter Beno Banai, MAV chairman-CEO Ilona David and GYSEV CEO Szilard Kovesdi.
The agreement, which will come into force on January 1 of next year, follows an earlier five-year agreement. It stipulates that the railway companies may recover their losses on operating the network of tracks in Hungary from the state.
The amount the state pays the companies is determined on an annual basis, but is expected to reach about 75 billion forints (EUR 239m) a year for the next ten years, level with the amount in the previous five years, Banai said.
The state subsidises passenger services of the two companies with a further annual 200 billion forints, he said.