MAV RAIL INFRA MODERNIZATION PROGRAMME

Promoter – Financial Intermediary

MAV MAGYAR ALLAMVASUTAK ZRT,MINISTRY OF CONSTRUCTION AND TRANSPORT - HUNGARY

Location

• Hungary

Description

The project consists of several schemes of upgrading, modernisation and renewal of TEN-T and regional railway lines, as well as acquisition and modernisation of various rail infrastructure maintenance vehicles and equipment.

Objectives

The project is expected to increase the quality of rail services provided in Hungary, as well as promote travel by rail, reducing the use of road transport and the associated negative impacts on the local environment, road safety and GHG emissions and, thereby, contribute to the sustainable transport in line with EU objectives. The project is mostly located in EIB Cohesion Priority Regions and by facilitating access promotes regional development. Some schemes are aimed at increasing the capacity of the existing lines and removing bottlenecks, and thus allowing traffic growth. For some sections, where the works will allow to increase maximum speeds or prevent reduction of maximum speed, the project may also generate time savings for passengers. The project will also present environmental and safety benefits as well as vehicle operating cost savings, as better rail services are expected to prevent modal shift from rail to road. 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; and thereby, enhance sustainable transport.

Sector(s)

• Transport - Transportation and storage

Proposed EIB finance (Approximate amount)

HUF 404830 million (EUR 990 million)

Total cost (Approximate amount)

HUF 1250000 million (EUR 3057 million)

Environmental aspects

The project will consist of multiple schemes and their compliance with the requirements of the 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 (CA&ES) objectives, in particular to climate change mitigation.

Procurement

The Bank will require 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 2014/25/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.

Status

Under appraisal - 20/11/2024