There is already interest in the highway concession

A posted earlier this week Several investments can be made under an EU public procurement concession

  • widening of the M1 and M7 motorways,
  • the extension of the M3 to the eastern part of the country,
  • extension of the M81 section to the M8,
  • and a completely new road section connecting the M1 with the M5 by touching Székesfehérvár and Kecskemét are also among the investments

This was discussed by high – level government figures at a background conference on Friday World economy Based on. The paper added that these were, among other things, projects for which no EU funding had been obtained from either the Recovery Fund (RRF) or the budget for the next seven years.

At the same time, the Hungarian government still considers its motorway program important, but, as indicated in the article, these goals could only be covered by the domestic central budget or loans by the depletion of EU funding. As they do not want to withdraw funds from other areas either, the Cabinet plans to use the possibility of concession.

Concession projects are widespread in Europe, with a value of almost € 600 billion over the last two decades.

Of this, road improvements amount to just over € 112 billion

noted the World Economy, on the basis of which it was stated in the background discussion that

existing and newly built highways will also remain state-owned.

They do not change the current form of toll collection, so they do not entrust the management of e-stickers and e-tolls to a private company instead of the state National Toll Service Provider (NÚSZ). Related to this is the government’s stipulation that the cost of the concession may not exceed the toll revenue.

Tolls can only increase with the rate of inflation, and the inclusion of newly handed over sections in the toll network will increase the volume from the outset. According to the VG, the toll that enters the budget in one year – on average HUF 350 billion – is therefore not automatically transferred to the concessionaire, but only a so-called availability fee is received, which is a fixed amount, but its amount is not yet known. The payment of this does not affect the development of public debt, but for the central budget it is a long-term commitment. According to the notification, the winning company or consortium will also pay an annual concession fee to the state, which will be determined at the negotiated stage of the procedure.

They also mentioned that the finding that most of the risks inherent in the concession are not run by the state but by the winner was mentioned several times during the discussion. In the first ten years, 272 kilometers of road will have to be built and a further 273 kilometers will have to be widened,

all of which is a huge cost to generate from its own resources.

In addition, the concessionaire bears the risk of availability, technical and quality suitability – they added.

Cover image source: Getty Images


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