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MVM pulls financing for EUR 136m power plant project

The management of the state-owned Hungarian Electricity Works (MVM) has decided to end further financing of a power plant it is building with System Consulting, a company controlled by László Kapolyi, Hungary's industry minister during the 80s, MVM CEO Csaba Baji said in an interview published in daily Magyar Nemzet on Friday.

MVM has so far spent HUF 18.5 billion on the project, Baji told the paper.

Kárpát Energo, a joint venture of MVM (51%) and System Consulting (49%), laid the cornerstone of the €136 million gas-fueled combined-cycle power plant in Vásárosnamény (NE Hungary) in April 2008.

Baji would not exclude that possibility that Kárpát Energo goes under mandatory liquidation.

MVM's management has decided to break all of its contracts with System Consulting, Baji told the paper. (MTI Econews)