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Govt reviews PPPs to make savings

The government is reviewing about a hundred public private partnerships with the aim of reducing the HUF 3,000 billion all PPPs will cost the state in the long term, National Development Ministry state secretary Sára Nemes Hegman told journalists on Tuesday.

The government is reviewing about a hundred public private partnerships with the aim of reducing the HUF 3,000 billion all PPPs will cost the state in the long term, National Development Ministry state secretary Sára Nemes Hegman told journalists on Tuesday.

About HUF 120 billion is allocated for PPPs in the 2011 budget, including HUF 99.1 billion for spending on the M5 and M6 motorways, and HUF 9.8 billion for the Palace of Arts, a civic center in the capital, Hegman said. The rest of the PPPs were all allocated less than HUF 10 billion, she added.

Talks with private investors in PPPs to build sports facilities are progressing well and could produce an agreement in June, she said. Talks on changing the contracts for the two motorway projects have also started and could wind up by the end of this year, if agreements can be reached out of court, she added.

The government has earmarked HUF 200 billion for replacing the private investors in PPPs, except for the motorway PPPs, she said.