"The European Commission has announced on Thursday Hungary will have a budget of EUR 7.3 billion in the Operational Programme for Transport 2007-13, the Programme under the Convergence Objective, co-funded by the European Regional Development Fund (ERDF) and the Cohesion Fund.Overview
On 1 August 2007, the European Commission approved Hungary's Operational Programme for Transport for the period 2007-13. The Operational Programme falls within the framework laid out for the Convergence Objective and has a total budget of around EUR 7.3 billion. Community assistance through the European Regional Development Fund (ERDF) and the Cohesion Fund amounts to some EUR 6.2 billion, which represents approximately 24.5% of the total EU investment earmarked for Hungary under the Cohesion Policy for 2007-13.
Purpose and aim of the programme
The Operational Programme will support the development of transport infrastructure, which is seen as essential to increase economic competitiveness and stimulate job creation - the two key objectives of the EU's Lisbon Strategy for growth and jobs.
Good quality transport links make it easier for people to commute to and from work. The better the links the greater distances people can travel efficiently, which in itself can enable more people to enter the jobs market. What's more, improving transport links can also strengthen social and territorial cohesion.
The programme has the following specific objectives:
Improving Hungary's integration into the European economy and developing transport infrastructure that can support the country's emerging markets;
Improving accessibility to Hungary's regions, both within and between individual regions;
Improving the intermodality of Hungary's transport systems in a way that supports economic competitiveness;
Contributing to the sustainable and economical development of public transport systems.
Expected impact of the investment
The Programme's impact will be seen in various infrastructure developments, which include:
- constructing about 330 km of new expressways;
-modernising about 500 km of railway track, including the upgrade of IT, safety and traffic control equipment;
-upgrading about 1100 km of roads so that they can take an 11.5 tonnes axle load capacity.
The Programme will also provide Hungary with a host of new urban transport systems including a sub-urban railway for Budapest. In addition, urban transport will be improved in Hungary's major regional centres through investment in infrastructure such as trams, trolley buses, intermodal hubs, etc. Money will also be set aside to build metro line No 4 in Budapest. "
Source: Portfolio Online Financial Journal
28.03.2008