Paks nuclear plant project

Hungary to be among top 5 EU countries by 2030, says Orbán

Hungarian Diaspora Council in Budapest

Hungary should be among the five best and most competitive countries of the European Union by 2030, a country in which “it is best to live and work”, Prime Minister Viktor Orbán told a plenary session of the Hungarian Diaspora Council in Budapest on Thursday.

In the shorter term, Orbán said, the “the culture of patriotism should be promoted and the culture of self-hatred suppressed”. He said that by 2022, the country’s competitiveness should be “tangibly improved”, new “demographic incentives” should be launched and an independent Hungarian army developed. In terms of the military, Hungary “lags behind” other countries in the region, he said, insisting that “a country cannot be strong without an army capable of protecting it”.

By 2030, the country should also reverse negative demographic tendencies and diversify its energy supplies,

the prime minister said. He insisted that Hungary should gradually remove its unilateral dependence on Russian energy. Hungary needs to build its internal capabilities and diversify access to foreign energy sources, Orbán said. From that aspect, the upgrade of the Paks nuclear plant is key for Hungary’s sovereignty, he added.

Concerning Hungary’s bilateral ties, Orbán said that the country had developed “relations based on trust” with Slovakia, Croatia, Slovenia, and Serbia in recent years. He insisted that it was “obvious that cooperation is always more profitable than animosity”, adding that the government’s goal was to further develop that cooperation.

On the subject of Ukraine, however, Orbán said it was a country “without a creditable timeline for accession to either NATO or the EU”. He added that he saw no chance of an agreement between his government and Ukraine’s incumbent leadership. Noting Ukraine’s upcoming presidential election, he said that “it will become clear whether the current anti-Hungarian tendency continues or the new presidential administration decides to cooperate with Hungary.” Hungary’s government, he said, is in contact with all potential winners and talks are under way to ensure that “a situtation which is bad both for Hungary and Ukraine ends and Ukraine returns to the path of friendship and a strategic alliance with Hungary.”

“This is the only path for Ukraine to join NATO and the EU,” he added.

“We have rights and opportunities. We expect Ukraine … not to persecute those Hungarians that are citizens of Ukraine,” Orbán said.

“Ukraine should make use of the opportunity provided by Hungary to contribute to the development of Transcarpathia (Kárpátalja) and areas beyond as well as Ukraine’s stabilisation and development.”

Meanwhile, the prime minister said he expected that Europe’s institutions after next year’s European Parliamentary elections would be “more strongly associated with the continent’s traditional values and roots”. After the elections in May, Europe’s politics are likely to become “more nationalist, right-wing, and more Christian,” Orbán said. He said that hopefully the European Commission, “which now considers itself a political player, will resume its role as guardian of the [EU] basic treaty”.

Regarding Hungary-US ties, Orbán said the US administration “does not consider its role is to decide what’s in the Hungarian constitution”.

“Not only are military and economic ties in order but political relations are too,” he said.

Concerning Turkey, Egypt, and Israel, Orbán said that stability in those countries was in Hungary’s key interest in light of illegal migration. Should those countries become unstable, migration pressure on Europe could grow “exponentially”, he said.

Regarding Asia, Orbán said his government’s efforts to develop relations with China, India, Vietnam and Indonesia were motivated “purely by business, without any political preconditions”.

Hungarian government to turn to EU, UN over ‘migrant cards’

Orbán cabinet

The government will ask the EU and the United Nations for clarification concerning “the rather unclear circumstances” surrounding debit cards issued to migrants, the head of the Prime Minister’s Office said at a weekly government press briefing on Thursday.

Gergely Gulyás called it “unacceptable” that migrants should be granted debit cards without personal identification and said it posed risks in terms of fighting terrorism, people smuggling or money laundering.

He welcomed the European Parliament’s recent rejection of introducing a European “humanitarian visa system”.

Gruevski case

Concerning former Macedonian Prime Minister Nikola Gruevski’s recent request for asylum in Hungary, Gulyas said it was “a legal rather than an inter-governmental matter”. He said that the Hungarian state had not provided Gruevski any help with leaving Macedonia. The former prime minister had filed a declaration of intent to apply for refugee status at a Hungarian diplomatic mission outside Macedonia, Gulyas said. He said that a decision was then made for safety reasons that Gruevski should be interviewed in Budapest rather than in the transit zone, and added that it was “general practice with former political leaders”.

“Gruevski has not met Prime Minister Viktor Orbán,” Gulyás said.

Answering a question, he said Hungarian authorities would follow the relevant “security protocol” and ensure that Gruevski could not leave Hungary. Read more news about Gruevski case.

Brexit

In answer to a question related to Brexit, the Minister said Hungary would have been better pleased if Britain had opted to remain a member of the EU, but British electors adopted a decision to the contrary, and a country cannot be penalised due to a democratic decision. We need a fair Brexit, in the long run the EU and Britain will have to build the most advantageous possible relations, and Hungary therefore welcomes the increased chance of an agreement, he stated.

He took the view that while an extraordinary EU summit will be held next Sunday to address this issue, the approval of EU heads of state and government is not enough in itself. The agreement is also subject to the approval of the British Parliament, and in this regard he has major doubts. Even if no agreement is reached, the rights of the Hungarians already working there will not be curtailed in any way, he said.

The Minister said that a net contributor member is leaving the EU, and Britain’s contribution accounted for 12 to 13 per cent of the EU budget. According to Hungary, during the next seven-year financial framework either every Member State will proportionately increase their contributions, and as a result, the grand total of the budget will not decrease, or they will accept a 12 to 13 per cent fall in the budget and EU grants will be reduced accordingly, he explained.

Verhofstadt’s billboard campaign

In answer to a question, Mr Gulyás said regarding MEP Guy Verhofstadt’s billboard campaign that the European liberals are working “with a broad repertoire of political folklore”. This is about George Soros’s revenge, and the European liberals have joined this campaign, he said.

The Minister said in answer to an enquiry concerning the EP decision on the state of the rule of law in Romania that “after what happened in Hungary’s case”, the EP is no longer an authentic forum to pass judgement on issues of this nature.

He also said that they will send the results of the consultations on the future of Europe to French President Emmanuel Macron.

He said in answer to a question that the government has filed its action with the European Court of Justice against the Sargentini report.

Budapest, Metro line 3

The government will support the refurbishment of metro line three with EUR 247m (HUF 80 billion), the Minister heading the Prime Minister’s Office announced.

Mr Gulyás said the additional funds can be used at the end of 2019, in 2020 and in 2021, but the utilisation of funds could even extend to 2022. The metropolitan municipality is preparing the plans for the refurbishment of the metro line, and implementation, too, will fall within the municipality’s competence, he added. Read more news about Metro line 3 upgrade.

The Minister said that at the Wednesday cabinet meeting, which was also attended by Mayor of Budapest István Tarlós, they were in favour of the establishment of a metropolitan public development council, and the agreement thereon will be signed by István Tarlós and Prime Minister Viktor Orbán on Saturday.

The metropolitan public development council will deal with all issues concerning Budapest, and government decisions concerning Budapest will also be referred to the council, thereby ensuring permanent communication between the capital and the government at the highest level, Mr Gulyás highlighted.

Economy

The Minister informed the press that

in the third quarter Hungary’s economic growth reached 5 per cent, and as a result, it is third in Europe behind Poland and Ireland, Gulyás said.

Mr Gulyás also said that the Hungarian economy rests on stable foundations, and it is to be presumed that also in the whole of the year it will be capable of the highest economic growth rate among Member States of the European Union. At the same time, an economic growth rate above 4 per cent appears to be realistic for next year as well.

The deficit of the budget, too, is low, and in consequence it will be possible to adhere to this year’s deficit target of 2.4 per cent, he added.

He said the construction industry played the greatest role in the growth with an increase above 25 per cent, and internal consumption has also increased which justifies the pay rises of recent years as an appropriate measure.

The Hungarian economy rests on stable foundations, and an economic growth rate above 4 per cent appears to be realistic for next year, the Minister said.

He further highlighted that during the years of left-liberal governance the deficit of the budget reached almost 10 per cent; this clearly indicates the advantages of a conservative financial policy.

Health care

In answer to a question, Mr Gulyás said that at the Wednesday cabinet meeting the government discussed several proposals related to health care, and there will be further proposals in the near future.

A government decision is expected to be adopted before the end of the year which will comprehensively address the difficulties that exist in health care and the developments of the next few years. As a result, a decision may also be adopted about the priority central hospitals so that the relevant developments can start.

Regarding the new National Curriculum, the Minister said there is no official decision yet, and as things stand today, it is likely to be introduced in September 2020.

Paks

He said in the context of the enlargement of the Paks nuclear power station that it is to be hoped that the final deadline for the completion of the project can be observed. The Hungarian party will do everything it can to prevent delays.

Photo: MTI

Foreign minister: Deciding country’s energy mix ‘national competence’

factory-energy sector emission caps

Speaking at the Russian Energy Week conference, Péter Szijjártó, the foreign minister, insisted that deciding the country’s energy mix was a national competence.

“Let me make it crystal clear: we consider the national energy mix to be a national competence,” the minister said on Wednesday. “We expect everyone to respect this competence in the case of all countries.”

The Hungarian government never comments on the national energy mix of other countries and it expects others to do likewise, he said, adding that “nuclear energy will play a decisive role” in Hungary’s energy mix.

Szijjártó said energy security is also a matter of national sovereignty.

Energy supply must be clean, safe and cheap, he said, adding that the diversification of energy supplies in central Europe required major infrastructure investments, mainly along the north-south axis. It is vital for Hungary to diversify its gas supply, both in terms of resources and routes, he said. The minister noted that agreement with Russia was forthcoming on the volume of next year’s gas supplies and talks on their volume in 2020 are under way.

Szijjártó said construction of the Turkish Stream gas pipeline to be hooked up to Hungary’s network by 2021, the building of a liquid gas terminal in Croatia and the outlook for gas extraction in the Black Sea were all important factors as regards the future of Hungarian energy security.

He insisted that international debates on nuclear power generation were “hypocritical” and “politically correct”.

Nuclear energy, he said, should not be discriminated against. Hungary, he added, will increase nuclear’s weight in the national energy mix.

Concerning the Paks-2 investment, he said Hungary saw the country’s biggest economic development project not only as a flagship of Russian-Hungarian cooperation but also as an opportunity to restore pragmatic cooperation between East and West.

Whereas Rosatom is the project’s chief contractor, many subcontractors are western European and American, he said.

Furthermore, according to the contract, 40 percent of the investment must be delivered by Hungarian companies, Szijjártó noted.

Russian Foreign Minister Sergey Lavrov will meet Szijjártó for talks in the afternoon.

Orbán: Hungary appreciates Russia ties

Orbán in Russia Putin

Hungary appreciates its relations with Russia and both countries “have an interest in maximising shared achievements”, Prime Minister Viktor Orbán said after talks with Russian President Vladimir Putin in Moscow on Tuesday.

It is in Hungary’s national interest that “there should be good cooperation between the two halves of Europe”, including good Hungary-Russia ties, Orbán said at a joint press conference with Putin.

Concerning energy cooperation, Orbán said that he had made an agreement with Putin on gas supplies from Russia after 2020. He noted that Hungary would like to see the Turkish Stream gas pipeline going through Hungary, and asked Putin to support those plans.

On the subject of the Paks upgrade Orbán said that the project was being implemented in a timely manner and necessary adjustments were being made.

Answering a question, Orbán said that 35-40 percent of Hungary’s electricity was produced by the Paks plant, and next to solar energy nuclear energy should retain a dominant role in the country’s electric supplies in the long run. He noted “difficulties, technical issues” in the implementation of the project, and referred to “the bureaucratic practices of the European Union so far unknown to Russia”, but voiced confidence and said that “we will make it (the upgrade project) and this will benefit not only Hungary-Russia ties but it will also modernise energy policy links between Russia and Europe”.

The importance of the project “goes far beyond Hungary” that is why “it has elicited so much curiosity, that is why there are many opponents and many supporters”, the prime minister said.

On another subject Orbán said that economic and financial ties were good in farming, energy, as well as pharmaceutical production. He noted that Hungary’s OTP bank employed some 5,000 people in Russia, and asked Putin to make efforts to broaden financial cooperation. He added that Budapest was ready to host the headquarters of the International Investment Bank, of which Hungary is the third largest shareholder.

Orbán also urged that a direct flight should be launched between Budapest and Kazan.

The prime minister said that Hungary and Russia were taking joint action to help persecuted Christians in other parts of the world. “Both of us think that preserving and strengthening Christian culture is important for the modern world,” he said.

Putin told the press conference that a future branch of the extended Turkish Stream pipeline could cross Hungary.

Russian gas transit to Europe already crosses Hungary where gas reservoirs ensure reliable and uninterrupted supply to European consumers even in peak periods, Putin said.

“We are examining the possibility of connecting our Hungarian partners with the new routes of transporting Russian gas to Europe. I do not exclude that a land extension of the Turkish Stream pipeline could be built crossing Hungary,” he added.

Under a joint initiative with Orbán, an inter-governmental committee will be set up to coordinate bilateral regional cooperation and it will hold its founding meeting before the end of this year, he said.

Featured image: MTI

Green LMP: Warming Danube risk to nuclear plant security

Danube summer river

The rising summer temperature of the Danube river constitutes a security and economic risk to Hungary’s sole nuclear power plant in Paks, green opposition LMP told the press on Wednesday.

The party called on János Süli, the minister without portfolio responsible for the Paks nuclear plant upgrade, to lay out the government’s plans to deal with the situation, Máté Kanász-Nagy, secretary of the national board, said.

The plant announced on its website on Tuesday that the efficiency of the turbines’ condensers had fallen over the past few days because the water of the Danube river, used for their cooling, had become warmer.

As a consequence, the thermal efficiency of the blocks had deteriorated and the plant generated less electricity than earlier, it said. Although the plant did not rule out a further drop in output, it declared that the blocks’ operation is not at risk.

Kanász-Nagy said on Wednesday that as summers are likely to become hotter in the years to come, the river’s water will become a less efficient cooling material, which in turn will pose a security risk to the plant.

Tackling the problem by reducing the plant’s production will, on the other hand, risk the return on the investment into the plant, he said, especially after production starts in the two new blocks after 2026.

LMP expects the minister’s answers on how the government is prepared to adjust to climate change and resolve the situation, he said.

Featured image: MTI

Hungarian nuclear energy consistent with EU climate policy

atomic energy paks radioactive

Nuclear power generation is consistent with European climate policy, Péter Kaderják, the state secretary for energy and climate policy, told the daily Magyar Hírlap.

The innovation and technology ministry official noted in the interview published on Tuesday that European Union member states recently agreed on a 32 percent renewable energy target for 2030.

Energy efficiency is also targeted at 32 percent, he said.

Emissions trading is a vital part of attaining these aims, he said, adding that the price payable by producers for carbon dioxide emissions is expected to rise. This will help boost the return on nuclear power, Kaderják insisted.

Hungary’s expanded Paks nuclear power station will be a clean source of energy, he said, adding that nuclear energy production in the long term would be the backbone of Hungary’s energy supply.

Also, major renewable capacities will be introduced, he said, noting that the government prioritises solar investments.

The state secretary also noted government efforts in the past 6-7 years to put an end to Hungary’s dependence on imports of Russian gas. Creating a competitive gas market will help, and Russian gas will also have a part to play in this, he said.

Kaderják said the Romania-Hungary-Slovakia-Austria gas pipeline was currently the “most promising project”. At the same time, the Nord Stream 2 would bring about drawbacks for eastern Europe rather than benefits, he said, adding prices would increase in Hungary.

The cheapest gas delivery route is via Ukraine, the state secretary said, adding that Hungary prefers maintaining the latter option.

Nuclear power plant Paks upgrade will be completed on time

The construction of two new reactor blocks of Hungary’s sole nuclear power plant in Paks will be completed on time without any technical or safety compromises, the minister in charge of the upgrade project told parliament’s economic committee on Thursday.

Rosatom, the general contractor for the Paks project, is treating the upgrade as a priority project, the company managing the Paks upgrade quoted János Süli as saying in a statement.

In his briefing to a special session of the committee held in Paks, Süli said one of the most important tasks in connection with the project was compiling the request for the implementation permit.

In response to questions from MPs, the minister without portfolio emphasised the importance of nuclear safety, saying that there would be no compromises on the project’s technical aspects.

He noted that

Hungary had signed a fixed-price contract for the power plant’s expansion and that the European Commission has determined that the construction of two new blocks will be a profitable enterprise.

The Hungarian and Russian parties involved in the project are both working to ensure that the share of Hungarian suppliers involved in the upgrade reaches 40 percent.

Hungary signed an agreement with Moscow in January 2014 on the construction of two blocks at the Paks nuclear power plant by Russia’s Rosatom.

Russia has agreed to lend Hungary 10 billion euros to cover 80 percent of the project’s costs.

Photo: MTI

LMP concerned about extra EUR 310m for Paks upgrade company

paks

Opposition LMP has expressed concern over a planned additional allocation of some 100 billion forints (EUR 310m) to the company in charge of the Paks nuclear power plant upgrade in next year’s central budget.

Although construction of two new blocks has already suffered a delay of at least six months, the sum in question has already been set aside in form of a capital increase for the company, party lawmaker Péter Ungár told a press conference on Monday.

“The Paks upgrade project is one of the worst business deals of the century,”

he said, adding that the money should instead be allocated for insulation projects in the construction sector to give Hungarian businesses opportunities. This would boost Hungarian economic growth, Ungár said.

He insisted that parts of the extra funding would end up in the pockets of the ruling Fidesz party’s media empire or the pro-government Civil Unity Forum NGO in form of state ads.

Hungary signed an agreement with Moscow in January 2014 on the construction of two blocks at the Paks nuclear power plant by Russia’s Rosatom.

Russia has agreed to lend Hungary 10 billion euros to cover 80 percent of the project’s costs.

Government to apply for permit for new Paks blocks this year

atomic energy paks radioactive

The government plans to submit the application for the construction permit for two new blocks of Paks nuclear power plant to the energy authority by the end of the year, the minister in charge of the upgrade project told an international conference on Wednesday.

The application contains some 200,000 pages of text and another 100,000-150,000 pages with charts and supplements providing technical specifics, János Süli said at the conference held in Pécs, in southern Hungary, focusing on the legal aspects of the upgrade project.

The authority will have 15 months to evaluate the documentation, Süli said, adding that international experts would be involved in the process over a 12-month period.

Hungary signed an agreement with Moscow in January 2014 on the construction of two blocks at the Paks nuclear power plant by Russia’s Rosatom. Russia is lending Hungary 10 billion euros to cover 80 percent of the project’s costs.

Paks turbine shut down, block to return to full capacity by weekend

Paks nuclear plant

The output of the number 1 block of the Paks nuclear power plant is expected to reach nominal capacity again by the weekend, Paksi Atomeromű communications director Antal Kovács has told MTI.

Just before noon on Wednesday, output of the number 1 block was halved after one of its turbines stopped.

This had no impact on nuclear safety,

MVM Paksi Atomeromű said.

Kovács noted that the plant’s number 3 block is undergoing routine maintenance and the other two blocks are functioning normally.

There are four blocks at the plant, each with a nominal capacity of 500MW.

LMP

The opposition LMP party on Thursday demanded an independent investigation into the technical malfunction of the block with the involvement of experts of either the European Atomic Energy Community (Euratom) or relevant civil groups.

Speaking at a press conference, lawmaker Péter Ungár noted that the same turbine and another one in block 1 had seen technical malfunctions already before, over the past four-year governing cycle. He said the minister in charge of Paks, responding to LMP’s inquiry at the time, cited a technical failure of “a supplementary equipment”.

Ungár said it gave cause for concern that Paks had switched to a 15-month fuel cycle from a 12-month one which “allows for less frequent inspection and maintenance” in the blocks. He added that Paks was testing a new type of fuel whose effects are difficult to know at this early stage.

As we wrote before, the upgrade of the Paks nuclear power plant has a “fixed price” of 12.5 billion euros, János Süli, the minister-elect without portfolio in charge of planning and implementing construction of two more blocks at the plant, said, read more HERE.

Photo: atomeromu.hu

Hungary reaches deal with Gazprom on 2019 gas deliveries

Lavrrov Szijjártó Hungary Russia

Hungary has reached an agreement with Russia’s Gazprom on the volume and price of next year’s gas deliveries, the foreign minister told MTI by phone on Friday, after participating in the St Petersburg International Economic Forum.

Negotiations were also started on gas deliveries for 2020, Péter Szijjártó said, noting that Hungary’s long-term contract for gas deliveries from Russia runs until 2021.

Szijjártó met Russian Foreign Minister Sergey Lavrov, Minister of Industry and Trade Denis Manturov, Gazprom CEO Alexey Miller and Rosatom deputy-CEO Kirill Komarov during his visit to St Petersburg.

Rosatom said on Friday that it would start construction of two blocks at Hungary’s Paks nuclear power plant in 2020 and that the blocks would go online in 2026 and 2027.

Rosatom is the general contractor for the Paks project.

Photo: MTI

HungaryTrends – The week in business and finance

Pécs Hungary Mecsekérc Co.

See below MTI’s main business and financial news from the previous week:

HUNGARY Q1 GDP GROWTH STEADY AT 4.4 PC

Hungary’s first-quarter GDP climbed by an annual 4.4 percent, rising at the same rate as in the previous quarter, the Central Statistical Office (KSH) said in a first reading of data. Adjusted for seasonal and calendar year effects, GDP was up 4.7 percent. KSH said market-based services, especially trade and tourism, were the main contributors to growth during the period.

LABOUR SHORTAGE COULD LEAD TO LOST BUSINESS, JOBS IN HUNGARY

The labour shortage in the industrial sector could force multinationals to postpone capacity expansions or take some of their production elsewhere, a union leader warned. Read more HERE.

THOUSANDS OF NON-EU NATIONALS AWARDED WORK PERMITS LAST YEAR

Almost 25,000 non-EU nationals were awarded permits to work in Hungary last year, around 10,000 more than in 2016.  Read more HERE.

NEW RECOMMENDATIONS ISSUED FOR RICHTER DRUG

The Pharmacovigilance Risk Assessment Committee (PRAC) of the European Medicines Agency (EMA) concluded after a review that Gedeon Richter’s uterine fibroid drug Esmya “may have contributed to the development of some cases of serious liver injury”.

DAIMLER TURNS OUT MORE THAN 190,000 VEHICLES IN HUNGARY IN 2017

German carmaker Daimler turned out more than 190,000 vehicles at its base in Hungary last year, up 4.1 percent from 2016,

Mercedes-Benz Manufacturing Hungary managing director Christian Wolff said. Revenue of the unit, in Kecskemét (C Hungary), climbed by over 4 percent to 3.6 billion euros.

AUDI STARTS SERIAL PRODUCTION OF THREE-CYLINDER ENGINES IN HUNGARY

German-owned carmaker Audi Hungaria announced the launch of serial production of three-cylinder engines at its base in Győr, western Hungary.

The one-litre petrol engines, with power of 63kW or 85kW, will go into Audi A3, Volkswagen Golf, Seat Leon and Seat Ateca models.

FUTUREAL LAUNCHES CONSTRUCTION OF EUR 300 M SHOPPING CENTRE IN CAPITAL

Hungarian property developer Futureal announced the launch of construction of a 300 million euro shopping centre near the southern terminus of Budapest’s number four metro line. Etele Plaza will have 54,000sqm of rentable space with room for 200 businesses. It is scheduled for completion in 2020. Read more HERE.

HYDRO INAUGURATES EUR 21.8 M EXPANSION IN HUNGARY

Norwegian-owned extruded aluminium profile maker Hydro Extrusion Hungary, formerly called Sapa, inaugurated a 21.8 million euro plant at its base in Székesfehérvár, in central Hungary. The company won a 1.2 billion forint (EUR 3.7m) government grant for the investment as well as a 1.5 billion forint tax rebate.

EC STEPS UP INFRINGEMENT PROCEDURE AGAINST HUNGARY OVER SPIRITS TAXATION

The European Commission decided to send Hungary a reasoned opinion — the second step in an infringement procedure — for granting an exemption from the public health tax to fruit distillates, such as palinka, the national eau de vie, as well as to herbal liqueur which are mostly produced domestically. The EC noted that other spirits, such as vodka, whisky, gin and brandy are not exempted from the tax. Read more HERE.

HUNGARY STATE DEBT 74.2 PC OF GDP AT END-Q1

Hungary’s state debt as a percentage of GDP reached 74.2 percent at the end of the first quarter, fresh data released by the National Bank of Hungary showed. The ratio, which includes Eximbank, was up from 73.6 percent at the end of Q4 but down from 76.2 percent twelve months earlier. In absolute terms, Hungary’s state debt stood at 28,044 billion forints (EUR 88bn) at the end of Q1, up from 27,360 billion at the end of 2017.

PAKS II MINISTER NOMINEE SAYS UPGRADE PRICE “FIXED” AT EUR 12.5 BN

The upgrade of the Paks nuclear power plant has a “fixed price” of 12.5 billion forints (EUR 39.3m), János Süli, the nominee for minister without portfolio in charge of planning and implementing construction of two more blocks at the plant, said in a hearing before parliament’s economy committee. Russia is lending Hungary 10 billion euros of the cost and 2.5 billion euros is coming from domestic sources. Read more HERE.

HIGHER REVENUE LIFTS RÁBA Q1 PROFIT

Hungarian automotive industry company Rába’s first-quarter after-tax profit more than doubled to 396 million forints (EUR 1.2m) from 173 million in the base period as revenue climbed, an earnings report showed. Revenue was up 18 percent at 12.4 billion. Domestic sales rose by 28 percent to 3.9 billion forints and export sales increased by 14 percent to 8.5 billion forints.

Paks II upgrade price “fixed” at EUR 12.5 bn

paks

The upgrade of the Paks nuclear power plant has a “fixed price” of 12.5 billion euros, János Süli, the minister-elect without portfolio in charge of planning and implementing construction of two more blocks at the plant, said in a hearing before parliament’s economic committee on Tuesday.

Russia is lending Hungary 10 billion euros of the cost and 2.5 billion euros is coming from domestic sources, Süli said.

The credit is favourable: Hungary has the right to make early repayments without penalty, if the budget allows or if there are better lending conditions on the market, he added.

Süli said his priority for 2018 would be to submit the construction permit for the two new blocks to the National Atomic Energy Office. The office will have 15 months to evaluate the documentation of some 300,000 pages and the permit is expected to be issued in late 2019 or early 2020, which will allow for meeting the project’s completion deadline of 2026-27, he said.

Answering a question, Süli said that Hungary’s loan agreement with Russia was publicly available on parliament’s website.

He added that the government wants to make the construction agreements public, too, and negotiations are under way with the Russian side.

Süli served as minister in charge of the Paks II upgrade in the previous Fidesz-KDNP government for about one year.

The committee supported Süli’s nomination with 10 votes in support, 3 against, and two abstentions.

Featured image: Daily News Hungary

Paks II minister meets with Rosatom heads in Sochi

atomic energy paks radioactive

János Süli, Hungary’s minister without portfolio in charge of the upgrade of the Paks nuclear power plant, met the heads of Russia’s Rosatom, the general contractor for the project, in Sochi on Monday.

The sides reviewed work that has been completed recently in the framework of the Paks II investment and weighed the most important tasks for this year, Süli told Hungarian journalists after the meeting. Among these tasks will be the submission of the application for the implementation permit, which will contains some 3,000 pages, including attachments, he added.

Some 80 facilities must be built to support the construction, Süli said. Plans for these are being drawn up, permits acquired and contracts signed with construction companies, he added.

Hungary must ensure lodging, a primary school, a kindergarten and health-care facilities for the workers who will build the new blocks at the plant.

The Paks project is on schedule and there is a real chance the new blocks will go online in 2026 and 2027, Süli said.

Süli is in Sochi for the international trade show Atomexpo 2018. More than 3,000 professionals from 68 countries are participating at the expo which runs from Monday until Wednesday.

State secretary for maintaining capacity at Paks Attila Aszódi, Paks II CEO István Lenkei and Paks technical director József Elter will speak at a round table talk at the fair.

Luxembourg backs Austria’s suit against Paks upgrade

Paks nuclear plant

Luxembourg supports Austria’s case against the upgrade of Hungary’s Paks nuclear power plant, Luxembourg’s Minister of Environment Carole Dieschbourg said on the sidelines of a summit of EU environment ministers in Brussels on Monday.

Speaking with her Austrian counterpart Elisabeth Kostinger, Dieschbourg said it was important to prevent a renaissance of nuclear energy and that no public money should be invested in nuclear energy.

In February, Austria‘s environment ministry said the country would lodge an appeal with the European Court of Justice over the Paks upgrade.

“The European Commission is sending the wrong message in energy policy if it approves state aid given to nuclear power plant construction without hesitation,” the ministry said.

The EC cleared the Paks project, which is being financed with Russian credit, in the spring of 2017.

The EC’s spokesman for competition said the EU’s executive body would defend its approval of the Paks upgrade in court, fielding a question from a journalist at a daily press conference in Brussels on Monday.

“Yes indeed, we of course will go to court and we will defend our decision, as we would expect,” said Ricardo Cardoso.

Photo: MTI

Election 2018 – LMP promises homes to all

PM candidate LMP Bernadett Szél

Green opposition LMP will discontinue the “accommodation crisis” and ensure that nobody is left without a home if it enters power after the April 8 parliamentary election, the party’s prime ministerial candidate said on Sunday.

LMP plans to make accommodation a basic right, set up a social housing organisation, launch a programme to subsidise natural gas and firewood, and build rented homes for those in need, Bernadett Szél told a press conference.

The government has done nothing in the past eight years to put an end to the accommodation crisis, Szél said.

“Prime Minister Viktor Orbán gave airline tickets to people but LMP will offer them homes,” she said.

LMP wants to reduce VAT on flat renovation to 5 percent and use the money allocated for the Paks nuclear power plant upgrade to support the installation of solar panels by offering 1 million forints per family, she said.

From the money she also promised to set up a fund of 260 billion forints (EUR 0.83m) to help people that suffered damage because of their forex-denominated mortgages.

LMP candidate Gábor Vágó said the social housing organisation will make use of some 150,000 currently vacant homes around Hungary and rent these out under state guarantee.

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Ruling Fidesz said in response that LMP was making a registry of empty apartments in order to move migrants in them. The party plans to take homes away from their current owners, Fidesz said.

Photo: MTI

Minister discusses Paks upgrade with IAEA head

atomic energy Paks

The International Atomic Energy Agency (IAEA) will provide technical support for the implementation of the upgrade of Hungary’s sole nuclear power plant in Paks, János Süli, the minister in charge of the project, said after talks with IAEA chief Yukiya Amano in Vienna on Wednesday.

The Hungarian delegation briefed IAEA leaders on the current stage of the upgrade as well as the preparatory work that has been carried out over the past two years, Suli told reporters.

The minister said he and Amano had agreed that Hungary and the IAEA would continue and strengthen their decades-old professional cooperation.

As regards the scheduling of the project, Süli said construction of the modular buildings at the site of the upgrade would begin this year while construction of the two new blocks is set to start in 2020.

The minister added that the blocks could start commercial operation in 2026 and 2027, respectively.

Süli said the IAEA does not involve itself in the energy policy decisions of its member states or in the disputes surrounding them. At the same time, the agency does provide technical support in the implementation of those policies with a view to ensuring energy safety.

Gyula Fichtinger, head of the National Atomic Energy Office (OAH), said Hungary is in constant contact with the IAEA over the Paks upgrade. The Hungarian delegation and IAEA leaders agreed at the meeting that the agency will send a delegation to Hungary to inspect the project prior to the start of the upgrade, he said. That mission will focus on assessing whether the blueprints of the expansion are in line with international standards, Fichtinger added.

Hungarian government focused on building central European alliances

The Hungarian government is focused on building alliances with its central European peers, as evidenced by last week’s Visegrád Group summit in Budapest and Prime Minister Viktor Orbán’s official visit to Vienna earlier this week, the government office chief said on Thursday.

Hungary and Serbia’s joint cabinet meeting scheduled for next week is also in line with this strategy, János Lázár told a regular weekly press briefing.

Lázár called Orbán’s Tuesday meeting with Austrian Chancellor Sebastian Kurz successful, saying that the two leaders had discussed all topical issues.

The government office chief said Hungary had a fundamental interest in deepening security cooperation with Austria in order to protect the external borders of the Schengen area.

Lázár said he would ask the interior minister to authorise the release of images recorded by infra-red cameras along the fence erected on Hungary’s southern borders in response to a migrant wave.

He said that his experience during a visit paid to the region was that migrants seeking to enter Hungary illegally were cutting holes in the fence with metal cutters every 2-3 hours on a daily basis.

Without the double fence or constant patrols of the border, illegal entries would be a continuous flow instead of the current 30-50 attempts made each day, Lázár said.

Migrants taken back to the transit zones are not asylum-seekers, he said, adding that they never had any intention of submitting an asylum application.

On the topic of Austria’s appeal with the European Court of Justice over the upgrade of the Paks nuclear power plant, Lázár said Hungary respected Austria’s anti-nuclear position, but expressed hope that the two countries would cooperate on nuclear energy once Vienna’s legal challenge is dealt with.

Kurz and Orbán also discussed cooperation on infrastructure, Lázár said. Hungary aims to have three border crossings accessible by motorways to Austria, at Körmend, Szentgotthárd and Sopron, he said. Hungary asked the Austrian government to integrate the motorways into their road network, he said.

Asked about reports suggesting that during his visit Orbán met Heinrich Pecina of Vienna Capital Partners, Lázár said: “I didn’t notice anything of the sort while I was there”.

Commenting on news suggesting the Hungarian state intends to buy Telenor, one of the country’s largest mobile providers, Lázár said the issue had not been raised. A state-owned provider would be important for the country, he added, however.

He noted that Budapest will host a conference of the Visegrád Group on the EU budget on Friday, which two EU commissioners will attend. Guenther Oettinger, commissioner for budgetary affairs, will also hold talks with Viktor Orbán.

Featured image: MTI