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EIB loans Budapest Airport EUR 200 mln for expansions

City

The European Investment Bank and Budapest Airport have concluded a loan agreement worth EUR 200 million for the expansion of Ferenc Liszt International Airport, according to a press release sent to the Budapest Business Journal.

Ferenc Liszt Airportʼs SkyCourt, one of its the most notable expansions in the last decade.

The EIB loan, backed by the European Fund for Strategic Investments (EFSI), which is the core of the Investment plan for Europe (also know as the Juncker plan), will allow Budapest Airport to keep on investing in large-scale infrastructural upgrades, particularly a significant expansion of the terminal facilities and related infrastructure, EIB says. 

"We are honored and proud to announce the involvement of the EIB as following nearly a year of hard work we undertake an ambitious plan to expand and further develop Budapest Airport," said Budapest Airport CEO Jost Lammers.

"With plans to invest over EUR 700 million during the next five years, Budapest Airport will implement a series of important projects that will provide a continued high quality service level for passengers while ensuring a safe and secure environment for all travelers and thus improve the aviation connectivity of Hungary."

Vice president of the EIB, Vazil Hudak described Ferenc Liszt International as "one of the fastest growing airports in Europe". He added: "Together with our partners, we will sustain and create jobs in and around the airport, support economic growth in Budapest and Hungary as a whole, and help improve the passenger experience. We are proud to contribute to the success of Budapest Airport."

The investments are aimed at increasing Ferenc Liszt International Airportʼs capacity, which will allow it to accommodate further growth, with a new terminal which is planned to provide a "world class experience traveling for passengers" the press release sent to BBJ says.

The developments are also directed at ensuring the airport can serve Budapest at a very high level, while enforcing the highest safety and security standards.

"This is great news for Hungary, the Hungarian people and the tourists who come to visit the country," said Commissioner for Education, Culture, Youth and Sport, Tibor Navracsics. "The funds freed up with this new loan backed by the Investment Plan for Europe will help boost development and economic growth in the region of Budapest and the rest of the country, while contributing to making Hungary an even more attractive destination."

Gábor Gion, State Secretary for Financing Affairs at the Ministry of Finance noted: "The European Investment Bank is once again supporting the realization of an important and forward-pointing development. The EIB has brought and continues to bring resources to Hungary with favorable conditions for programs improving competitiveness, contributing to the realization of investments in both the private and public sectors. We are particularly pleased that the airport development announced today will be supported by the European Fund for Strategic Investments. Thus the bank may play a significant role in reducing the risk of investors," Gion emphasized.

Apart from the above mentioned developments, the airport has a number of other projects, including a new cargo facility, and a multi-level car park, among others.

Last year, the Ferenc Liszt International Airport served more than 13.1 million passengers, an increase of 14.5% from 2016, with this yearʼs numbers indicating a further increase, the press release notes.

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