The Government has saved more than HUF 14 billion of EU funds29 November 2012
The risk has been averted that EU funds should be repaid by Hungary. Because of the ill-considered steps of the previous government there was a danger that Hungary must repay the HUF 14.1 billion of EU funding in relation with the port development in the Győr-Gönyű region, and the Cigánd land management and flood defence program. But as a result of the current discussions with the European Commission this risk has been averted.
Because of the irresponsible business planning of the Győr-Gönyű and Cigánd investments started during the previous government in the 2004-2006 EU period the projects did not operate adequately in the maintenance period, and this fact projected the repayment of the EU funds. In the case of the port HUF 5.9 billion, while in the case of the Cigánd program HUF 8.2 billion EU support was at stake.
Both the port development and the flood control project are large-scale developments that have significant benefits for Hungary, and which are fully operational by now, due to serious efforts.
The port, which is 12 km away from Győr and 3 km away from Gönyű, was completed in September 2008. The objective of the investment is to ensure delivery opportunities for Hungary as one of the logistics centres operating in the country, by setting up connections with the international transport systems. At the end of September a strategic program was worked out for the further development of the port, defining the principal directions for the future.
Water transportation is more advantageous environmentally and economically than road and rail transport. The port is ideally located as almost any place can be reached on waterways through the Rhine-Main-Danube Canal, besides, several national railway lines and the highway passes close to the port.
In a recent statement Mrs.Lászlóné Németh, Minister of National Development has defined that pursuant to the amendment of the support contract relating to the further development of the port the strategic directions of the feasibility study must be worked out. Better utilization of the existing capacities must be ensured with the competition of other service providers who set up business there.
A new, a sustainable landscape management concept has also been worked out for the Cigánd landscape management and flood protection program. The possibility has also been raised that the land under land management be bought by the State, and treated as a single area. This could make compensations for flood control carried out by flooding more cost-effective in the long run.
The current government and the National Development Agency sent the formal information notice to the European Commission on 3 October 2012, in which they gave a detailed report concerning the progress of the projects, their present and their planned operation. The Commission welcomed the report and accepted the Hungarian position in an official letter, so the risk of repayment is no longer present.