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Ovit to approve Hungary-Slovakia gas pipeline interconnection project on Tuesday

A shareholders' meeting of Hungary's National Electric Transmission Line (Ovit) Zrt, a subsidiary of the state-owned Hungarian Electricity Works (MVM), is expected to adopt a provisional investment resolution for the interconnection of the gas pipeline networks of Hungary and Slovakia at Tuesday's general meeting, business daily Vilaggazdasag said on Tuesday.

The project was approved at MVM's general meeting on Friday. MVM holds 99.98% of Ovit shares. A final go-ahead for the project still requires Hungary's Parliament to pass a bill on Hungarian-Slovakian cooperation. The bill also includes plans of an oil pipeline between Szazhalombatta in Hungary and Sahy in Slovakia.

The paper said the project is expected to cost around HUF 35 billion, HUF 10 billion less than originally planned. Ovit will call a tender to select the general contractor and another tender for the financing. Ovit CEO Peter Gopcsa said implementation is scheduled to start in mid-2013, and commercial operation on January 1, 2015. The projects will be co-funded with € 26.7 million in European Union support.