Question of Public and Private Partnership in Central and Eastern Europe: Concession Motorway Development Programme in Hungary



Question of Public and Private Partnership in Central and Eastern Europe: Concession Motorway Development Programme in Hungary

Authors

MURANYI M, Ministry of Transport, Communication and Water Management, Hungary

Description

In recent years motorway development projects are going to be financed partially by the Government again. However, the government will not return to the old central funding approach but it will make efforts to integrate the benefits of the concession syst

Abstract

In recent years motorway development projects are going to be financed partially by the Government again. However, the government will not return to the old central funding approach but it will make efforts to integrate the benefits of the concession system to add as much business finance to fiscal funds as possible. Currently a 1-kin motorway section costs between 800 million and 1 billion Forints. Therefore the subsidy defined in the amount of 312 MHUF in a recent government resolution is only a contnbution to the relieving of transportation problems but not a final answer even ff combined with venture capital.

By the early 1990s it became obvious that the government does not have enough money to finance the development of the motorway network. At that time it was proposed to implemunt toll sections on commercial basis. In 1991 the Ministry of Transport, Communication and Water Management (MTCWM) commissioned a study to evaluate the viability of the concession scheme and if yes, on what conditions. It was concluded that assuming the then existing and estimated future traffic levels such projects require substantial government commitment, except in the case of some special roads like motorway M1. However, due to its financial constraints the government selected the purely commercial alternative of implementing and operation under concession, e.g. in the case of M1 the section completed under this scheme between Gyor and the Hungarian border was opened at the end of 1995.

In 1991 and 1992 MTCWM issued international tenders for the 60 km M1/M15 section between Gyor and Hegyeshalom or Rajka, and the development of the M5 half motorway between Ujhartyan and Keeskemot and the further completion of this route fill the Hungarian border (130 kin).

Publisher

Association for European Transport