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City to budget almost HUF 74bn for new metro line in 2011

Budapest plans to spend HUF 73.7 billion on the construction of its fourth underground line in 2011, including state and Cohesion Fund funding of HUF 66.8 billion, the city's 2011 budget plan shows.

The Budapest Council will discuss the budget plan at an extraordinary meeting on Wednesday.

A table in the budget plan puts general spending for the project at HUF 62.8 billion and related costs at almost HUF 10 billion in 2011. The budget plan does not show any spending for preparations for the second stretch of the line which has been shelved. Preparations for the second stretch cost HUF 1.3 billion in 2009 and HUF 251 million in 2010.

Projections in the budget plan put spending on the construction of the metro line at HUF 54.5 billion in 2012, HUF 17.8 billion in 2013 and HUF 13.6 billion in 2014. State support for the project is seen reaching HUF 52.4 billion in 2012, HUF 22.7 billion in 2013 and HUF 15.2 billion in 2014.

The total cost of the project, calculating with a HUF/EUR exchange rate of HUF 280, is gross HUF 378 billion.

Budapest Mayor István Tarlós said on Thursday that the city was about HUF 100 billion short of funding for the project.

The 2011 budget plan includes, however, savings on the City's operating costs and shelving some ongoing and new developments in the capital. (MTI Econews)