EIB loan
Image credit: EIB

The European Investment Bank (EIB) is providing MVM Hungarian Electricity Ltd. with a €120 million ($141.6 million) loan to modernise and expand its grid network in south-eastern Hungary.

Using the loan, MVM will 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 utility will reinforce its electric supply network, refurbish high, medium and low-voltage substations, overhead lines and underground cables, and install 600 distribution transformers and 210,000 advanced meters.

The smart meters will be installed in in the cities of Kiskunmajsa and Békéscsaba.

In partnership with the Hungarian Ornithological Society, MVM developed special measures to protect local birds species, which will be implemented using the loan.

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The measures include replacing above-ground power lines with underground alternatives, and the installation of special equipment for bird protection.

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. We support Hungary’s energy security, increasing the use of renewable energy sources, crucial for successful climate action in Europe. Together with our long-term partners in MVM, the EIB is looking forward to continuing to power Hungarian economic and social growth.”

János Sum, CFO of MVM, adds: “Today we arrived at a new milestone of our three decades-long partnership with the EIB. The agreement signed today demonstrates the EIB’s appreciation of MVM’s ambitious strategy, its support for achieving the group’s sustainability objectives and its confidence in MVM’s stable and competitive operation.”

This is the seventh operation between the EIB and MVM since cooperation began in 1990. With this loan, total EIB investment in the Hungarian energy sector reached €1.26 billion.