Road and rail links to benefit from loans

Date: 11/09/03

THE European Investment Bank (EIB) has unveiled two loans worth €360 million to boost rail and road links in Hungary.

A EUR 170-million loan will finance the modernization of key train stations and the upgrading of 100 km of track across the country, which joins the EU next year.

Another EUR 190 million loan will pay for three urban bypasses on major national roads connecting Hungary with Austria and around the north-eastern shore of Lake Balaton. Part of the cash will also go to improvements in the National Road 10, which is expected to reduce the regular grid-locks in congested northern Budapest.

Philippe Maystadt, president of the EU-owned EIB said: "Good road and rail infrastructure will help Hungary to harness the numerous new opportunities arising from EU membership."

A FREIGHT terminal in the Austrian city of Graz has also been granted a loan from the EIB, amounting to €40 million.

It is hoped the funds will promote the transfer of goods from road to rail and help close nearby freight centres in congested areas.

"The project will promote environmentally friendly transport in alignment with EU transport policy objectives," said EIB Vice-President Ewald Nowotny. "It will lead to an improvement of rail freight services running through Austria where increased road freight traffic has created special environmental and safety concerns.

"And co-financing in a public-private partnership will decrease financial needs from tense public budgets."

Via a railway infrastructure company, the Austrian government will directly fund 47% of the project and the private operator of the Cargo Center Graz terminal will generate the remaining 53% through lease payments.

The loan puts EIB financing in Austria at more than EUR 3.5 billion since 1998.