THE PICTURE OF M4

About the financing
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 353 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.
Financing is the joint task of the Hungarian State and the city of Budapest with a proportion of 79 and 21%. The Cohesion fund aid request for the project refers to this firs section costing 353 milliard Forints for now. The accountable project cost is 292 milliard Forints, regarding that the aid refers 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.

About the status of the European Union aid
Documentation submitted to Brussels by the National Development Agency was audited in autumn by the Dutch expert team, ECORYS also, who were asked by the European Committee. Since then the committee in Brussels on the one part requested actualization of the feasibility study with reference to the time passed since provision, on the other part asked for more information in connection with contracts made before the project became a European Union project, in order to be able to decide whether they also meet the requirements of the European Union competition law. Provided do not, then their amount may lessen the amount of the overall aid. However, it is a fact that these 2004 and 2005 contracts were made also in accordance with the valid Hungarian legislations with maximally abiding by the law and in compliance with the regulations of the public procurement law.

About the completion status of the project
Structurally most of the stations are approximately at 50%, some of them at 80 to 90%, but the overall project is at nearly 50% completion. A stretch of as much as 7.5 km has been completed of the tunnels (north one and south one together). In overall it can be said that both TBMs and respectively the entire project arrived to half way. North TBM broke into the Szent Gellért Square station on 19th January 2009, and the south TBM on 16th March 2009. The south TBM built in 2,115 No of rings, while the north TBM 2,039 No. By this on Buda side the tunnel building with TBM method is finished. From the north tunnel a stretch of 3,058.5 m, and from the south tunnel a stretch of 3,172.5, in total 6,231 m have been completed.

About the legal dispute arose in connection with the tunneling works
BAMCO consortium led by the French owned Vinci and comprising the Austrian Strabag and the Hungarian Hídépítő suspended tunnel building and other works done by the company on 14th April, after its claim of 35 milliard Ft was not fulfilled by DBR Metro Project Directorate within the 30 days timeline noted under its letter. The Client deemed the claim being without merit, and called upon the consortium to proceed with works immediately, otherwise envisaged termination of the 62 milliard Ft contract. BAMCO consortium finally decided to continue works, after DBR Metro Project Directorate retained its previous position at the last day of negotiations held with participation of the leaders of BKV and the city of Budapest. The parties agreed to settle the disputed issues within the legal frames provided by the contract. In course of the continuation of the negotiations that started almost a year ago in connection with claims, both parties will note their claims, on which, however, a three-member independent arbitration board will make realistic decision.

About the progress of works
In terms of the end date, now the most important factor is that when TBMs will reach Fővám Square, i.e. the Pest side. Almost all the further work phases are related to the progress of the TBMs, thus sometimes in these weeks it will become apparent, whether the end date as per the work program could be fully met. As known, BAMCO consortium is in significant delay and wanted to almost double the period of 27 weeks undertaken for the construction of the Pest side. Progress was made also during the negotiations on the tunnel building work program, and the Client is hoping that a realistic period of 35 to 40 weeks would be accepted within days. DBR is doing everything in the interest of that the tunneling works at the Pest side should be finished by the beginning of 2010, and then subsequent to the still remaining works the test run should commence, and finish in 2011. Because according to the contracts a period of three months is available for the test run, which together with the restart now still can be met in the last quarter of 2011, but of course it cannot be ruled out that it slips in to 2012.