Budapest to pay for waterworks stake in instalments

Music

The local council of Budapest will pay the purchase price for a minority stake in the city's waterworks in three instalments, a letter of intent on the repurchase shows.

The letter, published on the local council's website, puts the purchase price for the 25% stake in the Capital Waterworks at HUF 12.1 billion. The city is to pay HUF 8.25 billion when the stake is transferred and the remaining HUF 3.84 billion in two equal installments within the following two years.

Additionally, the city is to take over HUF 2.54 billion in debt owed by the waterworks and pay the owners their last HUF 469 million quarterly management fee, for Q1.

Altogether, the acquisition will cost the local council about HUF 15.1 billion, excluding VAT.

The letter of intent on the repurchase was approved by the local council on Monday.

The local council mandated István Tarlós to cancel the city's waterworks contract with Suez and RWE at the end of February. If the repurchase is not finalised within 90 days, Budapest will terminate the contract.

ADVERTISEMENT

Századvég raises GDP forecast to 7.8% Analysis

Századvég raises GDP forecast to 7.8%

Opposition parties to begin PM candidate primaries Elections

Opposition parties to begin PM candidate primaries

New editor-in-chief at Betone Studio Appointments

New editor-in-chief at Betone Studio

Budapest leaders make public transport free for under-14s City

Budapest leaders make public transport free for under-14s

SUPPORT THE BUDAPEST BUSINESS JOURNAL

Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.