Luxemburg, 06/12/2006 (Agence Europe) - On 30 November, the European Investment Bank (EIB) and the Hungarian authorities signed two finance contracts. The first of these (€320 million) was for the construction of 72 KM of motorway sections and by-pass connections on the M3/M35 motorway linking Budapest and Debrecen, Hungary's second largest city. The second (€100 million) was a loan for the up-front co-financing of the Hungarian portion of the EU Cohesion Fund. The EIB also signed a €100 million operation with the Hungarian Development Bank to finance small infrastructure, energy environmental protection etc. projects.
The M3/M35 motorway, part of the Trans-European Network, links the Hungarian capital with the less developed regions in the east of the country. Its completion is extremely important for the development of the eastern parts of Hungary and their connection with the EU capitals. The project involves the construction of a bypass around the city of Nyíregyháza, and an extension of the motorway from Görbeháza to Debrecen, including a Debrecen bypass. The new motorway sections will increase transport safety and help to cope with the increased traffic flow since Hungary joined the EU.
A loan of up to €100 million will co-finance the Hungarian Development Bank's contribution to projects benefiting from EU grant support under the Cohesion Fund 2007-2013. The loan targets projects relating to transport development, energy (mainly energy efficiency and renewable energy) and protection of the environment.
Finally a €100 million long-term line of credit will be granted to the National Development Bank (MFB). The MFB will on-lend these EIB funds to Hungarian, municipalities of associations thereof, or to micro, small and medium-sized enterprises to improve their access to medium- and long-term financing and to support projects in the areas of environmental protection, energy and infrastructure (including urban transport, health, education and urban renewal), among others. The focus is on sub-projects that are supported by the MFB through the government sponsored Municipal Infrastructure Development Loan Programme or Enterprise Development Loan Programme. (ol)