UPGRADE KELENFOLD-PUSZTASZABOLCS I (FL20150006)

Stage I: Upgrading of railway line and installation of European Train Control System (ETCS) level 2 on the Kelenföld-Százhalombatta section

The project will increase the quality of rail services provided in Hungary as well as promote travel by rail, thereby enhancing sustainable transport in line with EU objectives. The economic benefits expected are time savings for existing passengers, vehicle operating cost reduction and accident reduction for travellers expected to shift from road to rail as a result of the project. The project offers furthermore some environmental benefits from modal shift of passengers.

An environmental impact assessment (EIA) was carried out as required by the EIA Directive for projects covered by Annex I. Following the EIA procedures, including public consultation, the competent authority issued an environmental permit which identifies mitigation measures for environmental impact during the construction period as well as during operation. The project is located close to a Natura 2000 site, the Danube River. The competent authority, however, declared in the environment permit that the project does not have significant impact on the Natura 2000 site.

The Bank will require the promoter to ensure tendering of contracts for the implementation of the project, in accordance with the relevant applicable EU procurement legislation, in particular Directive 2014/24/EU, as interpreted by the Court of Justice of the EU, with publication of tender notices in the Official Journal of the EU, as and where required.