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Jun 07, 2019

Budapest-Belgrade railway line about to begin construction

Mihály Varga, Minister of Finance, said in a statement on Thursday that the Hungarian state is financing 85 percent of the investment using a Chinese loan while the remaining 15 percent will come from its own resources.

The Budapest-Belgrade railway line is about to begin construction.

According to MTI, the finance ministry has submitted a loan application for the implementation of the Hungarian section of the Budapest-Belgrade railway line to China’s Eximbank on behalf of the Hungarian government.

The loan agreement will be ready for signing after an evaluation, paving the way for the project’s planning and licensing. The main contractors involved in the upgrade of the Soroksár-Kelebia line signed the investment agreement on May 24th, and this will enter into force when the credit agreement with China’s Eximbank is adopted.

Mihály Varga, Minister of Finance, said in a statement on Thursday that the Hungarian state is financing 85 percent of the investment using the Chinese loan while the remaining 15 percent will come from its own resources. The project’s completion date is 2023.

The Minister said the government is simplifying procedures so that the competent authorities can expedite the relevant approvals. The Budapest-Belgrade rail upgrade will be one of the most important infrastructure investments in central and eastern Europe, with Chinese financial and technical contributions.

Photo credit: napi.hu