Construction to start next year on the €800 billion railway development programme

Construction on the first projects of the 800 billion forint railway construction programme is set to begin next year, according to a statement by Indexnek the new CEO of MÁV. Zsolt Hegyi gave an extensive interview to the newspaper, in which he revealed that MÁV would need at least HUF 1,500 billion over the next five to eight years to modernise its entire rolling stock.

500 kilometres of railway projected in four years

He reminded that half of the HUF 800 billion railway construction programme, comprising 15 projects, is financed by the European Investment Bank. Accordingly, the timetable is tight: public procurement should be completed this year, and the machines should be working by next year, so that everything is finished by 2029.

The programme foresaw the construction of 500 kilometres of railways over four years with funds from the EIB and the Hungarian state. According to Zsolt Hegyi, the first step will be the conclusion of a loan agreement, which will involve state bodies. "The loan application is already done and the detailed conditions are being negotiated. We are confident that within months the process will be completed and we will be able to announce the conclusion of the loan agreement," the CEO revealed.

Turning to the details of the programme, he said that most of the 15 projects are track upgrades, but not of the "broken-down-and-replaced" type. "All of them have added value, so without exception they are interventions that fit into the broader railway development plans."

Increase own maintenance capacity by purchasing machinery

Using leading examples, he highlighted, inter alia:

• the section between Szeged and Kiskunfélegyháza will become a two-track road with a speed of 160 kilometres per hour;
• improve and increase the capacity of the line between Székesfehérvár and Lepsény, which is the only single-track point on the Balaton railway line;
• the railway line 20 through the Bakony - between Székesfehérvár and Szombathely - will be upgraded, which is also important as a TEN-T corridor to Slovenia;
• in addition, they plan to increase the maintenance capacity of their own operations by purchasing machinery.

He stressed that the EIB loan also comes with a strict timetable: the tendering process should be completed in a matter of months, the first few projects should be demolished or even built by next year, and everything should be completed by 2029.

The full text of the interview can be read here: here.