EU Aid

The overall budget of the first section comprising 10 stations, which relieves the downtown area and connects Kelenföld with Baross Square, i.e. south Buda with north Pest, is equivalent to 366 milliard Forints, which already includes inflation of recent years, associated surface investments, costs for the vehicle depot and trains, and the contingencies from the European Union as well.

The project’s Cohesion Fund aid application referred to this first section. The accountable project cost, from the overall budget then equivalent to 353 milliard Forints, was 292 milliard Forints, regarding that the aid may refer to payments after 20th December 2006 only. Under the aid application the beneficiary city of Budapest requested a maximum amount of 224 milliard Forints from the European Union.

Eventually the expected maximum amount was reduced by the amounts of some 2004 and 2005 contracts. These contracts were made also in accordance with the valid Hungarian legislations and in compliance with the regulations of the public procurement law, but did not fully meet the requirements of the EU competition law. Eventually the construction of the first section of metro 4 received 181 milliard Forints of European Union aid, which means that more than half of the metro line 4 being built is financed by the EU, which is - although not the expected maximum amount – an enormous milestone in the life of Budapest.

The city of Budapest would like to use the loss amount as additional aid for the second and respectively the planned third section. Otherwise, this proposal was received positively by NFÜ (National Development Agency) as well, and the city of Budapest intends to use every opportunity of tendering in the future, in other words plans to submit application for aid with reference to the other sections also.

Beneficiary: The Municipality of Budapest

Contractor: BKV Zrt. DBR Metro Project Directorate