NDA is Stepping up for Buda Weaving Tram Transportation and Initiates Expert Investigation17 February 2011
National Development Agency fully supports the community transportation development goals of the project “Buda Weaving Tram Transportation, Phase I”, which that is eligible for EU funding. Unsuccessful negotiations have been going on since the beginning of this year between the Municipality and the self-government of the II. District. The Municipality has yet failed to reach consensus regarding the II. District's comments and objections about the technical contents of the project.
Considering the length of the unsuccessful negotiations, it is evident that the problems in question are either fundamental and question the project's overall necessity or very technical, but were not investigated properly in the project preparation phase. As a result the concerned parties draw different conclusions and expect different effects from the investment. One of the parties hopes for a significant efficiency improvement for Budapest's public transport, while the other one is worried about traffic chaos, the increase of already serious traffic congestion in the Margit Bridge area and an undesired increase of traffic in those parts of the city that provide liveable conditions today. Both opinions need to be investigated and the solution can be different.
Arguments about the planned investments were given great publicity. In NDA's experience it means that the European Commission will closely monitor the project candidate during its entire life-cycle. In such cases it is hard to give a subsequent explanation, which makes it crucial to pay attention to every detail and comply with all rules of procedure. Besides the investigation of the technical and economic conditions, it is a basic requirement to involve and inform the affected residents and organize a public hearing.
Even a minor error or mistake, or apossible failure of the project can lead to the obligation to (partially or totally) reimburse the EU funds awarded for the project.
In order to ensure the success of the investment NDA has initiated a two-level investigation to supplement the preparatory activities of the concerned parties, focusing on the problematic issues. The first independent expert opinion supports the merits of the issues raised by II. District, and indicates that further investigation is inevitable. With respect to these NDA will extend the term of the the grant agreement until 31 May 2011.