Brussel decides on funding for Budapest metro line 4
A decision was made in Brussels about the subsidy provided to the construction of the Budapest metro line 4.
EU support may go up to Ft 200 billion ($1,11 billion), which is 50% of total subsidy dedicated to infrastructural development. However, obtaining the full extent of allocation may not be that easy, as the project was not included in the transportation operative program, and decision-makers in Brussels need to be persuaded that the new metro line will in fact improve efficiency of city transportation in the claimed extent.
The investment was planned to use funds from European Development Bank, but then shifted to apply for a non repayable grant in the framework of New Hungary development plan. 79% cost of the construction is covered by the budget, and the rest by the local government of Budapest. The €1.2 billion credit provided by the European Development Bank could still be used, €500-600 million ($680-820 million) could be allocated for the construction of line 4.
The national plan for 2007 to 2013 allocates a total Ft 630 billion ($3,5 billion) for development of city and suburban public transportation. (Magyar Hirlap)
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