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Hungarian towns and cities are competing for 93 billion HUF – municipalities that think on the long run will be the winners 3 December 2007

The town rehabilitation programme that was published on 3 December supports the development of civilised downtown precincts, renewal of residential zones and the establishment of modern community services. The tender package supports the development of settlements by providing funding of 64 billion HUF in value.

Strengthening the economic role of cities/towns, ensuring services tailored to the status of the municipality, rehabilitation of rundown districts and connecting these to the circulation of the settlement, as well as the protection of cultural heritage are the key tasks of cities/towns. These have the potential to significantly influence the quality of life of the population, as well as the population retention capacity of the settlement. The calls for applications of the regional programmes targeting settlement development provide help in resolving tasks.

Town rehabilitation is one of the priority objectives of the developments. This is demonstrated by how funding of 270 billion HUF in value is available for the development of settlements over the course of the 2007-2013 period. Tender and priority projects are eligible to receive a share of co-financing of over 93 billion HUF in value during the 2007-2008 period, which rate of funding is nearly four times the amount spent on town rehabilitation within the framework of NDP I, which was equivalent to approximately 24.5 million HUF in value.

The objective of the tender package that has just been published relates to supporting complex projects, the implementation of which adjusts to the long-term development strategy of the city/town. Integration of local entrepreneurs must be taken into account during the course of the development of programmes.

In relation to the NDP I calls targeting town rehabilitation, the way that the opinion of the residents of the settlement must be taken into account in order to implement development concepts is a new approach.

The programmes focus on three areas of development, namely: extension of functions, town rehabilitation with a social purpose and small-scale settlement development.

Within the framework of extension of functions, it will be possible to, among others, implement developments targeting market hall modernisation, the reconstruction of museum, recreational facilities and public administration buildings and the external renovation of the retail and service units of small and medium size enterprises. In addition, events, playhouses and occupational centres, as well as local employment initiatives connecting to the developments are all eligible to receive funding as a part of the project.

Social town rehabilitation offers the opportunity to refurbish and renovate the parts of residential apartment buildings under joint ownership, build new subsidised housing compounds, renovate currently operating ones, create communal spaces and parks, and refurbish public institutions.

Small-scale settlement development supports the implementation of small-scale infrastructure developments encompassing specific communal spaces, streets or buildings in the smaller settlements of regions.

County centres and Budapest will be able to implement extension of functions and town rehabilitation with a social purpose within the framework of priority projects. The calls for applications will be published shortly.