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EIB offers $140 M for modernisation of electricity network in Hungary

Hungary, Budapest: The European Investment Bank (EIB) has agreed to provide a loan of €120m to MVM Hungarian Electricity to modernise and expand electricity supply network in south-eastern Hungary.

It will enable the company to integrate new renewable energy projects for nearly 785,000 customers in Bacs-Kiskun, Bekes, Csongrad-Csanad and Pest counties.

As a pilot project, the new electricity consumption metres will be tested initially in the cities of Kiskunmajsa and Békéscsaba. Nearly 210,000 modern metres are expected to be installed.

The project programme will include reinforcement of electric supply network, refurbishing high, medium and low-voltage substations, overhead lines and underground cables and installing 600 distribution transformers and 210 000 advanced meters.

Total EIB investment in Hungarian energy sector now reaches $1.49 B (€1.26 B). The investment marks seventh operation between the EIB and MVM since cooperation began in 1990.

EIB vice-president Teresa Czerwinska said: “A reliable and modern electricity supply network is a key precondition for sustainable economic growth. This EIB financing will ensure both people and businesses in south-eastern Hungary continue to enjoy a reliable electrical power supply for decades to come.

Source: NS Energy