EIB supports upgrading of energy sector infrastructure in Hungary

Energy Trade

Photo by AB Sydney Electrical

The European Investment Bank (EIB) is lending €100 mln to state owned Hungarian electricity works MVM to finance the implementation of its investment programme for the period 2013-2018, EIB and MVM said in a statement yesterday.

The EIB loan will facilitate the reinforcement and extension of the Hungarian electricity transmission network and reconstruction of underground gas storage facilities.

The part of the project dealing with electricity transmission covers reconstruction and development works on substations and the installation of the Hungarian sections of some 40 km of two new 400 kV overhead high voltage lines interconnecting Hungary and Slovakia. The loan will also finance the replacement of optical ground wires on high voltage lines and conversion of a 750 kV line to 400 kV.

In the area of gas infrastructure, the EIB funds will support the reconstruction of injection and measuring systems, the installation of a new gas cooler and various well reconstruction works at four existing underground gas storage facilities.

This is the second long-term financing agreement of EIB with MVM, after one has been signed in 2010 with a framework of €150 mln.

EIB and Hungary also signed two other loan agreements on Friday worth a combined €218 mln, to be spent on Hungary's railway infrastructure development and a laser research project.

The EIB channeled €755 mln to Hungary last year, and a total of €7.4 bln between 2009-13.



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