Financing agreement reached for construction of new power plant in Tiszaújváros

A long-term syndicated loan agreement worth EUR 1.2 billion was signed on Friday, CCGT, to finance the Tisza Combined Cycle Gas Turbine Power Plant (MVM Tisza) investment project at the Tiszaújváros site of MVM Tisza Erőmű Kft. (MVM Tisza). , MVM announced on Friday.

According to the announcement, the aim of the investment is to build a high-efficiency, low-carbon power plant with a capacity of 1,000 megawatts, consisting of two units, some of which will be suitable for hydrogen combustion. The Tiszaújváros facility will support the growing domestic demand for electricity and the integration of additional renewable capacities into the system. The new base power plant will strengthen energy sovereignty by reducing import exposure and contribute to the energy transition.

„The development of Hungary's energy system has reached an important milestone with the agreement on the financing of the country's largest gas-fired power plant, which will be built using state-of-the-art technology.”

- says the Communication.

According to the announcement, the syndicated loan to be provided by 11 banks will secure more than €1.2 billion in financing for the construction of the power plant on favourable terms.

The loan agreement is secured by the Italian export credit agency SACE S.p.A., has a term of 16 years and, based on its size, is the largest credit facility in the history of MVM. The credit agreement was established with the participation of Citibank, N.A. London Branch and ING as lead arrangers and Intesa Sanpaolo S.p.A. and London Branch as credit facility and ECA agents. We previously wrote about the project here.

International consortium working on giant project

They reminded us that a public procurement procedure was conducted for the delivery of the power plant's main equipment, including gas and steam turbines, heat recovery boilers and generators, as well as for the design, procurement and construction (EPC) of the buildings and structures associated with the units. The international consortium formed by Calik Enerji Swiss AG and Ansaldo Energia S.p.A. was commissioned to carry out the investment in April this year, based on a contract signed in Budapest.