Hungarian Ministry of Finance submitted a credit request to the China Exim Bank for the construction of Budapest-Belgrade railway line, on country’s territory.
The credit contract can be signed once the application has been assessed, and with the planning and planning permission phase, the implementation of the project may begin, Finance Minister Mihály Varga announced.
In May, the contract for the modernisation of the Soroksár–Kelebia line was signed with a Chinese-Hungarian consortium, responsible for the implementation of the project. The contract for the construction of a 150-km line in Hungary was signed with the CRE Consortium, formed by RM International Zrt (owned by Opus), China Tiejiuju Engineering & Construction Kft and China Railway Electrification Engineering Group Kft.
The contract and will take effect upon the approval of the credit contract entered into with China Exim Bank.
The minister said that, according to the international agreement on the project, 85 per cent of the project will be financed from credit, while the remaining 15 per cent will be provided by the Hungarian State from own resources.
The planning and planning permission phase may begin after the conclusion of the credit contract. The goal is to complete the construction of the railway line by 2023. In the interest of meeting this deadline, the government wishes to simplify the necessary procedures, and will enable the competent authorities to issue the required licences and permissions within the framework of expedited procedures.
Belgrade-Budapest railway line will have a length of 370 km and it is estimated at USD 2.89 billion. It includes the modernisation of existing sections and the construction of new missing rail section to provide direct connection between the two capitals. Of the total length of the railway, around 335 km will need conversion and electrification works, while 166 km of railways will be upgraded in Hungary.
Minister Varga said that the modernisation of the railway line between Belgrade and Budapest will be implemented with financial and technical contributions from China.
The line is considered a logistics corridor that will offer the fastest transport route between China and Europe’s Western region. The project will connect Hungarian region to one of the most significant routes of world trade as part of the Belt and Road Initiative.