MAV RAIL INFRA MODERNIZATION PROGRAMME

The project includes several schemes to upgrade and rehabilitate Trans-European Transport Network (TEN-T) and suburban railway lines, investments in traffic control, signalling and power supply for railway lines, as well as the purchase of various railway maintenance vehicles and equipment.

The project is expected to improve the quality of rail services and promote rail travel in Hungary. It will help prevent a shift from rail to road, reducing negative impacts on the local environment such as greenhouse gas emissions. It will also deliver environmental and safety benefits and generate savings in vehicle operating costs. By contributing to interoperability within the EU railway system, the project is expected to strengthen the competitiveness of rail compared with other modes and thereby enhance sustainable transport in line with EU objectives. The project is mainly located in EIB Cohesion Priority Regions and, by improving access, will support regional development. Some schemes aim to increase the capacity of existing lines and remove bottlenecks, enabling traffic growth. On sections where works allow higher maximum speeds or prevent speed reductions, the project may also generate time savings for passengers.

The project consists of several schemes of upgrading, modernisation and renewal of TEN-T and suburban railway lines, investment in traffic control, signalling and power supply for railway lines, as well as acquisition and modernisation of various rail infrastructure maintenance vehicles and equipment.

The project is expected to improve the quality and capacity of rail infrastructure throughout Hungary, enhancing sustainable transport in line with EU objectives and reducing negative transport externalities, thus addressing important market failures. These externalities include pollution from the road diesel/petrol engines and the related noise and CO2 emissions. Furthermore, sustained or increased modal share of rail as the safest mode of land transport, as well as increased safety of level crossings will lead to reduction of fatalities and serious accidents and the associated human suffering.

Being mainly located in cohesion regions, the project will also contribute to increasing the competitiveness and regional development of these regions, by improving their connectivity thus contributing to sustainable growth. Finally, by means of contributing to achieving interoperability of the EU railway system, the project is expected to improve competitiveness of rail vis à vis other modes.

The EIB financing is structured to adequately address the Borrower's financing needs for the project and will accelerate its implementation. It is enhanced by JASPERS contribution to some of the key strategic documents such as relevant railway master plans and Budapest Railway NODE strategy as well as support during CEF application including CEF Military Mobility for selected schemes.

The project will consist of multiple schemes and their compliance with the requirements of the Environmental Impact Assessment (EIA) Directive 2011/92/EU (as amended by Directive 2014/52/EU) and the development consents will be reviewed during appraisal. The project's potential impacts on protected areas and species, in accordance with the Habitats Directive (92/43/EEC) and Birds Directive (2009/147/EC) will also be appraised. All else equal, the project is expected to have a positive environmental impact by helping the railways to maintain modal share. Furthermore, the project is expected to contribute to climate action and environmental sustainability objectives, in particular to climate change mitigation.

The promoter shall ensure that contracts for the implementation of the project have been tendered in accordance with the relevant applicable EU procurement legislation, Directive 2014/25/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 EU Official Journal, as and where required.