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Ministry proposes cancellation of some PPP-projects

The National Development Ministry has proposed cancellation of public-private partnership (PPP) development projects under preparation.

These include the renovation of the Erkel Theatre, the College of National Excellence and the underground car park of the National Museum, the daily Magyar Nemzet said, quoting state secretary overseeing such projects at the ministry Sára Nemes Hegmann.

Hegmann said problems typical of recently signed PPP contracts include a lack of control over operation, a lack of appropriate legal assurances and prices above international average.

The state secretary said the ministry is reviewing all PPP investments whether they are already completed, underway or in the preparation phase.

She cited three cases where quick intervention is required because of the problematic PPP model. These are the HUF 6 billion investment of the Gödöllő university, two buildings of the Budapest Technical University and the student hostel of the Semmelweis University.

The motorway-related PPP investments alone are costing the state HUF 100 billion per year, an amount which definitely needs to be managed, the state secretary told the paper. (MTI – Econews)