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The loan agreement was signed by EIB vice president Wolfgang Roth, finance minister Janos Veres, and Budapest mayor Gabor Demszky, who also signed a guarantee contract between the capital city and the state.
The construction of the fourth metro line will be co-financed by the state and the capital city, as EUR 184 million will be made available to the city and EUR 691 million to the state from the overall EUR 875 million credit line provided by EIB. The investment, worth a total of EUR 1.167 billion, is to be implemented by 2010, with further possibilities for EU grants to be involved.
The implementation of the central wastewater treatment plant at Csepel Island (south Budapest) will cost EUR 576 million, partly financed by a EUR 194 million EIB loan to be utilized by the government and the capital city. Of the remaining amount, EUR 305 million will be granted by the European Cohesion Fund. The project will thus be financed 65% by the EU, 20% by the state and 15% by the capital city.
