Hungary’s previous government committed the state to at least HUF 5 trillion in additional motorway concession costs, citing the economic consequences of the war in Ukraine, according to Transport and Investment Minister Dávid Vitézy. In a statement published on Sunday, he questioned why taxpayers were made to bear these risks under a contract signed months after the Russian invasion had begun.
“The money the Hungarian state intended to pay to Lőrinc Mészáros and László Szíjj’s company under the overpriced and unlawful concession agreement could have filled 46 lorries with HUF 20,000 banknotes,” – Vitézy wrote.
The minister detailed the controversial arrangement in a Facebook post on Sunday, following the government’s announcement that it would seek to terminate the 35-year motorway concession agreement.
At the centre of the dispute is a December 2023 amendment signed by former cabinet minister Antal Rogán. Vitézy said, the Orbán government agreed to cover a substantial share of the private motorway operator’s rising construction and financing costs, citing the economic consequences of the war in Ukraine.
The minister questioned the justification for the decision, pointing out that the original contract had been signed on 17 May 2022 — almost three months after Russia invaded Ukraine.
According to Vitézy, the compensation mechanism alone increased the state’s projected payments by at least HUF 5 trillion over the contract’s lifetime.
As we previously reported, the 35-year agreement covers the operation, maintenance and development of a substantial part of Hungary’s motorway network until 2057. The contract was awarded to MKIF, a company linked to businessmen Lőrinc Mészáros and László Szíjj. According to the government’s calculations, total payments under the concession could reach HUF 23.2 trillion.
The HUF 5 trillion figure refers to additional projected contractual costs, not money already paid out by the state.
Why did the Orbán government assume the extra war-related costs?
The December 2023 amendment introduced a mechanism known as war-related investment cost compensation, intended to address higher construction prices and interest rates resulting from the economic consequences of Russia’s invasion of Ukraine.
It was made possible by an emergency government decree, which treated the prolonged economic effects of the war as circumstances that could not reasonably have been foreseen when certain contracts were signed.
Vitézy questioned this justification, pointing out that Russia invaded Ukraine on 24 February 2022, almost three months before the original concession agreement was signed. He argued that a long-term concession should normally require the private operator to assume substantial commercial risks rather than passing them on to taxpayers.
Government questions motorway operator’s profits
The minister also criticised the financial structure of the arrangement, arguing that it allowed MKIF’s owners to retain profits while transferring a significant share of cost increases to the state.
He noted that the amendment was introduced approximately 18 months after the original agreement, at a time when, according to him, the operator had not yet built any new motorway sections.
Vitézy described the arrangement as one that protected the profits of Mészáros and Szíjj while leaving taxpayers exposed to rising costs. The government has argued that the contract is overpriced and contains provisions that violate procurement rules. Following its review, it announced on 18 September that it would initiate steps to end the arrangement.
The European Commission has also initiated infringement proceedings against Hungary over concerns about the concession’s compliance with EU procurement rules, including its duration and the allocation of operating risk.
What happens to the motorway contract now?
The government’s decision has already prompted a response from MKIF. As we wrote on Saturday , the company warned that statements questioning the agreement’s validity could affect its financing arrangements. MKIF also reserved its contractual rights and potential legal claims, although it has not announced that it has filed a lawsuit.
The motorway operator has disputed the government’s interpretation of the contract. Its chief executive, Tamás Németh, has maintained that the company bears significant risks under the concession.
The Tisza government is seeking a negotiated termination of the agreement, although Vitézy has indicated that a legal dispute could follow if the parties fail to reach a settlement.
For now, the concession remains in force, and neither the terms of its termination nor its potential financial consequences have been settled. Vitézy also announced that he would discuss the motorway concession in more detail in an interview on the Kontroll YouTube channel at 6 pm on Sunday.
