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Signature(s)

Amount
€ 150,000,000
Countries
Sector(s)
Hungary : € 150,000,000
Energy : € 150,000,000
Signature date(s)
29/11/2010 : € 150,000,000
Link to source

Summary sheet

Release date
24 June 2009
Status
Reference
Signed | 29/11/2010
20090128
Project name
Promoter - financial intermediary
Hungary-Croatia Gas Interconnection

The promoter is a 100% subsidiary company of a leading integrated oil and gas group in Central and Eastern Europe.

Proposed EIB finance (Approximate amount)
Total cost (Approximate amount)
EUR 150 million.
Estimated at EUR 307 million.
Location
Sector(s)
Description
Objectives

The project concerns consists of 206 km of DN800 natural gas transmission pipeline to be constructed between Városföld and the Croatian-Hungarian border, in order to create bi-directional gas transmission between Hungary and Croatia. The project also includes the construction of two compressor stations, a metering station and a short small diameter branch line. The project will further integrate the EU gas market and provide gas transit capacity from Hungary to Croatia, Bosnia Herzegovina and Italy of up to 7.5 Bcm/year, and in reverse mode gas transit capacity from Croatia to Hungary of up to 5.5 Bcm/year.

The project is designed as a bi-directional interconnection between the Croatian and Hungarian gas grids and will contribute to the overall integration of the EU gas grids. It will provide new gas supply options to Croatia and Bosnia Herzegovina (Russian gas through Ukraine-Hungary, or Caspian gas in case Nabucco and/or Southstream materialise) but will also allow Hungary to diversify its gas supply by importing LNG imported in Croatia at the planned Krk terminal.

Environmental aspects
Procurement

The project falls under Annex II of Directive 85/337/EEC and its amendment. Following the submission of preliminary environmental studies the two regional authorities covering the route of the line both required an EIA. The draft EIS have been prepared and submitted to the regional authorities in May 2009. Public consultations are scheduled for June 2009, and the environmental permits are expected for August 2009.

The promoter is defined as a contracting entity in the sense of Article 2 of the new Utilities Directive 2004/17/EC. The project will be implemented under a turnkey EPC contract that was tendered in line with requirement of Directive 2004/17/EC. The EIA’s will be assessed in detail during appraisal including compliance with EU environmental legislation.

Link to source

Disclaimer

Before financing approval by the Board of Directors, and before loan signature, projects are under appraisal and negotiation. The information and data provided on this page are therefore indicative.
They are provided for transparency purposes only and cannot be considered to represent official EIB policy (see also the Explanatory notes).

General enquiries and comments

The EIB is committed to open communication and encourages constructive stakeholder input regarding its activities.
Enquiries and comments concerning the EIB’s involvement in a project or the financing facilities, activities, organisation and objectives of the EIB, can be sent to the EIB Infodesk.
Alternatively, the EIB can be contacted through its external offices.
Queries regarding details of a specific project, in particular when it is under appraisal by the EIB, should preferably be addressed directly to project promoters.

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Any complaint regarding alleged maladministration can be lodged via the EIB Complaints Mechanism. The European Ombudsman acts as an independent external accountability mechanism of the EIB.

Zero tolerance against fraud and corruption

The EIB has a zero tolerance policy on fraud or corruption. To report allegations of fraud and corruption relating to EIB-financed projects, please contact the Investigations Division. All reports will be treated as strictly confidential and handled in line with EIB investigation procedures and the EIB Group Anti-Fraud Policy.

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