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Jun 13, 2019

Budapest-Belgrade railway line contract signed

The upgrade of the Hungarian section of the Budapest-Belgrade railway line is to go ahead after the contract for planning and implementation has been signed.

The upgrade of the Hungarian section of the Budapest-Belgrade railway line is to go ahead after the contract for planning and implementation has been signed.

Opus Global revealed in a statement on Wednesday that the contract was signed by CRE consortium formed by China Tiejiuju Engineering and Construction Ltd. representing the Chinese rail company and China Railway Electrification Engineering Group (Hungary) Ltd., and RM International Ltd., each with a 50 percent share.

According to MTI, Opus has a 51 percent share in RM International and targets revenue of 295 billion forints (EUR 919m) from the investment.

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 last week 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.