Hungary to declassify details of Budapest-Belgrade railway investment

Hungary is initiating the process to declassify information surrounding the Budapest-Belgrade railway investment, a project described by the Minister of Transport and Investment, David Vitezi, as the largest infrastructure undertaking in recent years. The multi-billion dollar project has been mired in controversy, including significant cost overruns and questions about its efficiency and routing.

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We are initiating the declassification of the Budapest-Belgrade railway investment.

Vitezi acknowledged that the project has raised numerous technical and economic concerns. He noted that the chosen route was not optimal for domestic passenger traffic and that costs far exceeded industry averages. Despite contractual deadlines passing, the investment remains unfinished. The new Hungarian government faces the dual task of completing the project, which is reportedly over 90% finished, and launching passenger services as soon as possible.

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This was the largest infrastructure investment in recent years in Hungary, worth more than two billion dollars.

However, the resumption of services is contingent upon rigorous testing of all safety systems. Vitezi stressed the importance of gaining a clear, retroactive understanding of the entire investment. This includes scrutinizing the impact studies that determined the route and investigating why the government opted to pay a Hungarian contractor, linked to Lorinc Meszaros, in U.S. dollars. This decision, Vitezi suggested, allowed for currency exchange gains to benefit the firm.

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The investment must be completed, as the degree of completion is already far above 90 percent, and passenger traffic should be established as soon as possible.

The government's decision to declassify the investment details was made during a recent session. Vitezi anticipates a lengthy process, particularly concerning documentation related to the cooperation with the Chinese side. He expressed optimism that the Chinese partners are no longer interested in keeping these documents confidential. The minister also highlighted concerns about the invoicing in dollars, which he deemed unacceptable given the Forint's depreciation, leading to increased costs for Hungarian construction companies.

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It is equally important that after many years under a veil of secrecy, we finally get a clear picture, at least retroactively, of the entire investment.