EU Loan Supports Hungary’s Railway Modernisation Plan
Hungary Seeks European Investment Bank Loan for Railway Renovation Efforts
The Hungarian government has officially requested a loan from the European Investment Bank (EIB) to support its ambitious railway renovation project. Minister of Construction and Transport, János Lázár, made the announcement on Facebook, stating that the funds will cover half of the HUF 800 billion (EUR 2 billion) infrastructure development program. The government will finance the other half, as part of a comprehensive 10-year plan to modernise Hungary’s rail transport system, totaling HUF 1.2 trillion (EUR 3 billion).
According to Telex, Lázár outlined that the initial phase of the project will involve clearing 119 kilometres of railway tracks of speed restrictions and upgrading another 490 kilometres with state-of-the-art central traffic control systems. These enhancements are aimed at improving the safety and reliability of rail travel throughout Hungary, reducing travel times and minimizing delays.
Recent railway accidents, like the derailment of the Claudiopolis InterCity near Budapest’s Keleti Station, have highlighted the urgency of infrastructure improvements. Although no injuries were reported, the incident underscored the need for upgrades. Initial investigations revealed that broken bolts caused the derailment.
Lázár acknowledged the longstanding challenges faced by Hungary’s railways and unveiled a five-point action plan in August to address these issues. This plan includes securing a EUR 1 billion loan for railway construction, refurbishing stations, and replacing the leadership of MÁV, while also considering purchasing decommissioned Western trains.
The minister also pointed out the financial strain caused by the EU’s delay in releasing funds designated for Hungary. Lázár emphasized the importance of securing alternative funding sources until the EU fulfills its obligations. With national funds in place and pending approval from the EIB for the loan, work on the railway renovation project is expected to commence promptly.
