EIB grants €۱۸۴m loan to Hungary for railway improvements

TIN news:      The European Investment Bank (EIB) has provided Hungary with €184m in funding to support the rehabilitation and reconstruction of priority facilities in the country's railway sector.
 
This funding from EIB will co-finance projects with a total cost of €1.2bn.
 
EIB vice-president responsible for lending in Hungary László Baranyay said: "EIB funds will co-finance priority projects expected to have a beneficial impact on passenger demand for both commuter and long-distance rail transport.
 
"These projects will increase railway capacity, comfort and safety, thereby contributing to the attractiveness of this sustainable mode of transport."
"EIB funds will co-finance priority projects expected to have a beneficial impact on passenger demand for both commuter and long-distance rail transport."
 
EIB said that the present loan is being delivered in the form of a structural programme loan, supporting the execution of partly phased larger projects receiving funds in both EU programming periods such as 2007-2013 and 2014-2020.
 
Under this project, Hungary is expected to carry out the rehabilitation and reconstruction of various TEN-T railway lines and procure 42 electric multiple units for commuter railway traffic around Budapest.
 
In addition, the project will see the installation of a GSM-R system on certain TEN-T corridors.
 
It will enhance the efficiency, comfort and safety of the railway system and the overall attractiveness of country's rail transport.
 
This will also make an impact on rail transport demand and sustainable long distance transport in Hungary, EIB stated.
 
Meanwhile, EIB has also granted a €33.7m loan to Hungary for the construction of a high-capacity laser research facility and the installation of advanced laser technology equipment.