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Budapest to pay for waterworks stake in instalments

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.