The source said that Alstom had already accepted 11 points of the municipal council’s 12-point proposal, and the two sides had now come to an agreement on the last point concerning force majeure, which applies if the company is unable to get the relevant permit from Hungary’s transport authority.
The final go-ahead for the deal is still in the hands of the national transport authority.
No further details have been disclosed about the agreement that the Budapest Municipal Assembly is scheduled to discuss at a closed-door meeting on Thursday.
Alstom CEO Patrick Kron is expected to travel to Budapest on July 20 and sign the agreement with the city.
Budapest mayor Istvan Tarlos said late in June that that an agreement on the delivery of the underground trains was expected to be reached in two weeks.
Under a contract signed in May 2006, Alstom was to deliver 22 trains for the capital’s number two metro line for €150 million and 15+7 trains for the fourth line, under construction at present, for €114 million. BKV said in October 2010 that it cancelled the contract because Alstom “failed to do all that was expected of it in the interest of fulfilling the contract”.
Alstom’s application for permits for the vehicles it was to deliver was hampered because the brake systems used differed from those stipulated in Hungarian regulations.
Mr Tarlos said earlier that Hungary’s National Transportation Authority told Alstom four times in 2007 and 2008 that the brakes on the trains it was to deliver were unsuitable according to Hungarian safety rules.
BKV tried to call down a bank guarantee on the order, but a French court in December accepted a plea by Alstom blocking the attempt. The Budapest local council appealed the decision and another French court ruled in the capital’s favour in June.
BKV made a 50% advance payment on the trains of about HUF 30 billion. Alstom’s indemnity was worth 10% of the order.
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