The European Investment Bank (EIB) is lending 100 million euros to state energy company MVM to finance the implementation of its investment programme for the period 2013- 2018. The EIB loan will facilitate the reinforcement and extension of the Hungarian electricity transmission network and reconstruction of underground gas storage facilities. This is the second long-term financing agreement of EIB with MVM, after one has been signed in 2010 with a framework of 150 million euros.
László Baranyay, EIB Vice-President responsible for lending in Hungary, commented: “The EIB loan will help to extend, upgrade and make more reliable the vital parts of energy infrastructure, be it the high voltage lines or gas storage equipment. Ensuring the proper performance of these facilities and adapting them to the increasing demand are important for strengthening the competitiveness of the Hungarian economy and creating new job opportunities”. Csaba Baji, Chairman and CEO of MVM Ltd. said: “The MVM Group is a vertically integrated regional player with more than 50 years of energy industry experience. MVM pays keen attention to continuously developing both its power transmission and natural gas infrastructure in order to guarantee the security of energy supply to the CEE Region”.
EIB and Hungary also signed two other loan agreements on Friday worth a combined 218 million euros, to be spent on Hungary’s railway infrastructure development and a laser research project. EIB Vice-President László Baranyay said: “EIB funds will co-finance priority projects expected to have a beneficial impact on passenger demand for both commuter and long distance rail transport. These projects will increase railway capacity, comfort and safety, thereby contributing to the attractiveness of this sustainable mode of transport. The Bank’s support for the world-class laser research facility in Szeged, a flagship knowledge economy project, will increase the competitiveness of Hungary and create attractive, high quality job opportunities also in less developed areas of the country”. The EIB channeled 755 million euros to Hungary last year, and a total of 7.4 billion between 2009 and 2013.
via eib.org and hungarymatters.hu photo: public domain