Hungary: EIB supports upgrading of energy sector infrastructure in Hungary with EUR 100 million

The European Investment Bank (EIB) is lending EUR 100 million to MVM Hungarian Electricity Ltd (MVM - the Hungarian State-owned energy company) 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.

The part of the project dealing with electricity transmission covers reconstruction and development works on substations and the installation of the Hungarian sections of some 40 km of two new 400 kV overhead high voltage lines interconnecting Hungary and Slovakia. The loan will also finance the replacement of optical ground wires on high voltage lines and conversion of a 750 kV line to 400 kV.

In the area of gas infrastructure, the EIB funds will support the reconstruction of injection and measuring systems, the installation of a new gas cooler and various well reconstruction works at four existing underground gas storage facilities in order to maintain and increase their long-term technical availability.

Mr 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”. 

This loan builds on the excellent cooperation between the EIB and MVM. In 2010 the Bank provided a loan to MVM to finance the capacity increase and extension of Hungary’s high-voltage transmission grid.

Mr 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”.