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Roughly HUF 38 bln earmarked by government to buy out university PPPs

Telco

The Hungarian government has earmarked HUF 2.6 bln this year to buy out public-private partnerships (PPP) at universities, as well as HUF 17.5 million for both 2016 and 2017, ministerial commissioner Árpád Gyetvai told daily Napi Gazdaság today.

Gyetvai claims that the annual costs of PPPs could increase from HUF 22 bln to HUF 30 bln in the next few years, and says that buying out the 26 PPPs will save HUF 40 bln in the long term, Napi Gazdaság reported.

The decision was made following a review of 54 PPPs. The government began reviewing and buying out PPPs in all public sectors in 2010, due to their high cost, shaky legal assurances and management restrictions, the paper said.

The commissioner also said the aim is not to sell assets, but to acquire ownership rights, after which universities can take over full management, ensuring sustainable and high quality infrastructure.

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