Expressway concessions
The motorway concessions will cost taxpayers far more money than previously assumed. We are talking about 17,000 billion forints over the concession period of 35 years.
The anti-government news portal “Szabad Európa” (SZE, Free Europe) sued the state for the release of the secret documents with which the concession for the Hungarian expressway network was awarded to private companies for 35 years. In 2021, private capital funds won the operating rights, behind which the Fidesz oligarchs Lőrinc Mészáros and László Szíjj stand.
45 billion euros and more
Transparency International (TI) had previously estimated, based on its own calculations, that the winners of the concession would receive 12,600 billion forints. The concession company MKIF Zrt., which has since been founded. today already manages more than 1,650 km of expressways; Options exist for a further 380 km of the M5 and M6 motorways. In addition, the MKIF must expand existing roads to around 275 km or build a good 270 km of new ones.
SZE has now accessed the annexes to the concession agreement, which show that the state will pay MKIF a total of almost 15,100 billion forints net over 35 years. Together with the sections of the route to be handed over later and optionally, the total is 17,300 billion forints. At today’s prices, this corresponds to around 44.5 billion euros. The VAT of 27% comes on top for the taxpayer.
Given the highly inflationary environment of recent years, SZE emphasizes the fact that the “tariffs” were calculated with an annual inflation of 3%. In fact, in the last two years the inflation rate has been at least five times higher. Accordingly, the construction costs will continue to increase compared to the HUF 9,220 billion set in the contract and the management costs will continue to increase from the HUF 8,065 billion stipulated.
Brussels has objections
At the end of April, the EU Commission initiated infringement proceedings against Hungary, which apparently went back to an initiative by TI. Brussels accuses Budapest of violating Community law regarding concession contracts. Apart from the lack of transparency in the agreement between the state and the “market participants”, the unjustifiably long duration of the concession is criticized. Not to mention the management risk that the state takes completely off the shoulders of private companies. The time between the announcement of the tender and the deadline set for the bidders was also “typically” Hungarian: three weeks in the best summer holiday season, with the deadline for submitting the binding offer on July 5th.
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