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Govt to decide on canceling PPP contracts in weeks

The government last week reviewed existing public private partnerships (PPPs) contracts and after talks in the coming weeks will decide on a timetable and agreements with which PPPs will be cancelled, National Development Minister Tamás Fellegi told a committee meeting on Tuesday.

The cancellation of the contracts must not add to the fiscal deficit or raise state debt, Fellegi said.

The ministry found in a review of more than 100 ongoing PPPs that not a single contract showed a distribution of risk, rather the state bore the entire risk, he said.

He told the committee that motorway contracts would be handled separately.

The government announced earlier this year that it would cancel existing PPPs and replace them with new ones.

Existing PPPs impose a burden of more than HUF 3,000 billion on the budget, Fellegi said.

He added he hoped the HUF 200 billion earmarked in the Széll Kálmán Plan to buy out PPPs this year would be used up.