MSZP alleges illegal state aid used to acquire Mátrai Erőmű, appeals to EC
The Hungarian Socialist Party (MSZP) is turning to the European Commission over what the opposition party alleges was illegal state aid used to acquire Mátrai Erőmű, the second-largest power plant in the country, a party official said on Wednesday, according to a report by state news wire MTI.
MSZP vice president László Szakács said documents the party sued to obtain show the "cloak-and-dagger" deal cost the state HUF 75 billion, including a shareholder loan of close to HUF 5 bln, a HUF 26 bln capital raise and the takeover of HUF 26 bln of debt, on top of the HUF 17.5 bln purchase price announced by the government.
The state acquired Mátrai Erőmű from listed holding company Opus Global, controlled by business magnate and key Orbán ally Lőrinc Mészáros, in the spring. Mátrai Erőműʼs management has since outlined plans to add a 500 MW gas-fueled combined-cycle block at the plant and install solar parks with a combined capacity of 440 MW at its lignite mines which are gradually being recultivated.
Mátrai Erőmű has five coal-fueled blocks, built in the 1960ʼs and 70ʼs, and two gas turbines built in the 2000ʼs. It also has two open-pit lignite mines. The plant accounts for close to 14% of domestic electricity generation.
Hungary Gasoline Prices 3% Over Regional Avg
Gov't Considering Fuel Price Intervention
Cordia’s Marina City Project Begins
Budapest Airport Wins 'Best Airport in Eastern Europe' for 1...
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.
