Capital's waterworks contract canceled
The Budapest local council on Wednesday mandated mayor István Tarlós to cancel the city's waterworks' contract with foreign investors, signed in the spring of 1997.
One-fourth of the shares of the capital's waterworks is held by the Hungarian units of France's Suez and Germany's RWE.
Tarlós said in an interview on public television early Thursday that there had been a serious breach of contract by the foreign investors, and this established the possibility, in principle, of cancelling the contract.
He added that the talks with the investors were underway and that no decision would be taken without first consulting with the government. "We don't want to cause any foreign affairs complication," Tarlós said. He added that the most desirable solution would be to successfully reach an agreement on the matter.
Suez and RWE said in a joint statement sent to MTI on Thursday that they were prepared to reach an agreement with the local council but expected their legal rights and investments to be respected. The companies said they had delivered a high level of service while fulfilling the conditions of the contract "to the smallest detail".
Suez and RWE said they had proposed negotiations earlier on the amendment or the cancellation of the contract.
ADVERTISEMENT
Companies Make Net Repayments on Credit in April
BCCH Elects Board for Next 2 Years
Wizz Air Participates in USD 50 mln Investment
Tourism Nights Slightly up in April 2023
SUPPORT THE BUDAPEST BUSINESS JOURNAL
Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.
