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The European Investment Bank (EIB) and MVM Hungarian Electricity Ltd. (MVM) have signed a €120 million loan to modernise and expand the electricity supply network in south-eastern Hungary. The investment will enable MVM to

test advanced metering schemes, maintain the quality of service, meet growing demands for electricity in the region, improve the reliability of its supply network and integrate new renewable energy generators for some 785 000 customers in Bacs-Kiskun, Bekes, Csongrad-Csanad and Pest counties.

The project programme covered by the financing consists of the reinforcement of the electric supply network, refurbishment of high, medium and low-voltage substations, overhead lines and underground cables, and the installation of 600 distribution transformers and 210 000 advanced meters. The EIB loan will improve the quality of living and doing business in south-eastern Hungary and support the sustainable, long-term development of the local economy.

Special measures to protect local birds species, developed in cooperation with the Hungarian Ornithological Society, will also be implemented under the investment including the replacement of above-ground power lines with underground alternatives, and the installation of special equipment for bird protection.

EIB in Hungary:    EIB lending commitments in Hungary since the start of the Bank’s activity in the country are currently close to €21.6 billion. Between 2008 and 2018 alone the EIB signed for support worth €13.2 billion. EIB operations cover important sectors of the Hungarian economy, including transport, the environment, energy infrastructure, manufacturing and services.

Another key component of the Bank’s activity in Hungary is the promotion of small and medium-sized enterprises (SMEs) by increasing SME access to long-term financing through local financial institutions. Since 2001, the EU bank has supported 5 172 Hungarian SMEs, sustaining 263 767 jobs in the process.