MÁV, GYSEV sign 10-year pact to operate Hungaryʼs railways

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The rail companies will continue to operate trains in Hungary for roughly the same compensation they have been receiving under a ten-year agreement that Hungaryʼs government signed yesterday with state-owned railway companies MÁV and GYSEV, Hungarian news agency MTI reported.

The agreement, which will come into force on January 1 of next year, follows an earlier five-year agreement. It stipulates that the railway companies may recover losses incurred while operating the rail network in Hungary from the state.

The amount the state pays the companies is determined on an annual basis, but is expected to reach about HUF 75 bln a year for the next ten years, level with the amount in the previous five years, according to reports. The state subsidises passenger services of the two companies with a further annual HUF 200 bln, he added.

The agreement was signed by National Development Ministry state secretary for public transport László Tasó, National Economy Ministry state secretary for the budget Péter Benő Bánai, MÁV chairman-CEO Ilona Dávid and GYSEV CEO Szilárd Kövesdi.

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