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Govt declares sport facility PPPs of

Hungary\'s government has declared of \"elevated strategic importance\" 21 companies established to build sport facilities in public-private partnerships, the National Development Ministry told MTI.

The precautionary measure was necessary because of the companies\' financing problems and liabilities, the ministry said. The 21 companies have contracts to build and operate 31 facilities, including 16 swimming pools, 14 gymnasiums and a sport center, it added.

Companies declared of \"elevated strategic importance\" are subject to different liquidation procedures than conventional companies.

The ministry said the process of winding up such companies \"can be faster and more transparent\".

The government decided in June to cancel PPP contracts for the construction and operation of sport facilities in cities around Hungary and return them to local residents. It allocated HUF 15 billion for the purpose from this year\'s budget.

The ministry said it had reviewed the legal and technical circumstances of 34 sport facilities and negotiations on their future were in an \"advanced stage\".

\"It is the government\'s firm intention to close PPP contracts unfavorable to the state with existing funds. An instrument for this purpose may primarily be the purchase of overdue loans from financial institutions. If there is no manner with which to undertake this, the cancellation of the contracts and the acquisition of the facility by the state could be a solution,\" the ministry said.