KELENFOLD-PUSZTASZABOLCS STAGE II (FL20150006)

The project, which is part of the Trans-European Transport Network (TEN-T) Mediterranean Corridor, is allocated under the multi-sectoral structural programme loan (SPL) COHESION FUND FL IV (HU). It will complement other ongoing and planned EIB operations in the rail sector in Hungary. More specifically, it concerns: - the upgrade of 29.6km on the double-track railway in the Hungarian network (line n. 40, between Százhalombatta and Pusztaszabolcs); - the construction of 1.3km single-track connection between Érd station on line n. 40a and Érd alsó station on line n. 30a.

The aim is to increase the quality of rail services in the country, supporting modal shift from road to rail and preventing modal shift from the existing rail to road. Being located on the TEN-T Mediterranean Corridor, as per EU Regulation 1316/2013, the project enhances sustainable transport in line with EU objectives and also contributes towards EIB's climate action.

The project consists of upgrade of rail infrastructure of the section Százhalombatta-Pusztaszabolcs located on the Kelenfold-Pusztaszabolcs railway line and on the Mediterranean Core TEN-T Corridor. The infrastructure works will contribute to reducing journey times, promoting more efficient operations, reducing maintenance costs, lowering energy consumption and increasing level of comfort for passengers. Indirectly, by improving services, the project will help railways to compete with other transport modes, particularly private vehicles and to maintain or improve its modal share. Shifting passenger flows from other modes to rail may result in reduced vehicle operation costs as well as safety and environmental benefits.

EIB long-term financing and its flexibility regarding for example drawdown currency provides additional value for the Promoter in comparison to the terms of alternative financing options such as those typically available on the Bond market.

The promoter's environmental management capacity to apply the relevant EU Directives was verified, particularly the EU environmental impact assessment (EIA) Directive 2011/92/EU amended by 2014/52/EU, EU Strategic Environmental Assessment (SEA) Directive 2001/42/EC, EU Habitats Directive 92/43/EEC and EU Birds Directive 2009/147/EC. The project falls within the scope of Annex I of the EIA. The EIA report was submitted to the competent authority on 14/12/2012, who issued the development consent on 24/07/2014 (decision reference: 55464/2014). Following modifications to the project, the EIA report was amended and re-submitted to the competent authority on 05/10/2018 who issued the development consent for the modified project on 19/11/2018 (decision reference: FE-08/KTF/07827-65/2018). The project has no significant impacts on protected areas and species, in accordance with the Habitats Directive (92/43/EEC) and Birds Directive (2009/147/EC).

The EIB requires the promoter to ensure that contracts for the implementation of the project have been tendered in accordance with the relevant applicable EU procurement legislation: Directive 2014/24/EU, as well as Directive 92/13/EEC 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.