Posted by: Anika Verhoeven Posted on: Tuesday 21 September 2010, 10:58

There was a 19,7% year-on-year reductionin construction output in Hungary in June2010, to HUF 171.6bn (€502m), accordingto the Hungarian Statistical Office (KSH).

In terms of the main constructiongroups, a year-on-year decline of 11.2%was reported in civil engineering inMay, whereas a reduction of -28.2%was noted in building construction.The volume of new orders in June increasedby 4.2% in relation to June of theprevious year and was worth HUF 121.7bn(€436.8m). Orders for new buildings haddecreased in terms of volume by 3.1%, andorders for civil engineering work were upby 12.4% year on year.

Wing announces property development plans

Wing has announced plans to developBudapest’s most valuable vacant riverfrontareas, referred to collectively as the Vituki property, located along the waterfront of Soroksar and the banks of the Danube river, adjacent to Ferencvaros in the 9th district. The initial plans have been accepted by the 9th district administration.

The plan will extended to central Budapest and consists of two projects: the first, known as Duna Passage, and the second, Duna City. The preliminary plans stipulate that the project will involve the construction of commercial and residential structures. The former was designed by the British architect Norman Foster, and the latter by the Dutcharchitect Erick van Egeraat. The formerly industrial area of the city has been continuously developed and modernised since the end of the 20th century, beginning with the construction of the Palace of Arts and National Theatre. Construction work is expected tobegin in 2011, with the first office building tobe completed by 2013.

Market Epito to fund municipalhousing project in flooddamaged Felsozsolca

Market Epito has announced plans to financeand build municipal housing units in Felsozsolca. Felsozsolca was hit by floods in early June 2010. These damaged 80% of the homes in the small town. The constructionwork began on 4 August and is due to be completed in just 40 days.The town received two sites from the governmenton which Market Epito will build two residential buildings with four houseseach. The community is also receiving fundingfor reconstruction through an agreementestablished between Waberer Holding andthe Ministry for National Economic Affairs.This stipulates that, for Hungarian internationaltransport companies which voluntarilyjoin the pact and refuel within Hungary’sborders, the government will match and donatethe amount it collects in excise dutyfrom this, up to a limit of HUF 2bn (€7m).

NIF expected to announcenew tender for sectionof M3 motorway

The NIF has declared the results of the firsttwo tenders for the construction of the sectionof the M3 motorway between Road No.49 and Vasarosnameny invalid and is expectedto announce a new tender. The first was announcedin December 2009, and eight offerswere made: by the M3 Kraszna Consortium,the BBDA Consortium, Dobrastav, the M3 Euro-Hid Consortium, Swietelsky, the PT M3 Consortium, Nemzetkozi Vegyepszerand Sadesa Obras y Servicios. The NIF declared the PT M3 Consortium the winner and deemed four offers to be invalid: those by the BBDA Consortium, Swietelsky, Nemzetkozi Vegyepszer and Sadesa Obras y Servicios. When its offer was rejected, Nemzetkozi Vegyepszer petitioned the Public Procurement Council (the KDP). The Council fined the NIF HUF 3m (€11,000). It was forced to re-evaluate the offers andagain declared the PT M3 Consortium the winner. This time Sadesa Obras y Servicios petitioned the council. The NIF has now announced that it will not re-evaluate the offers a third time but will, instead, announcea new tender.

Siemens to build newcombined-cycle powerstation in Szeged

Siemens Project Ventures has purchaseda 50% stake in South Energia, joining Advanced Power for the construction of an environmentally-friendly, fuel and steam powered combined cycle power station in Szeged, at a cost of HUF 160bn (€573m). The power plant will have an output capacity of 880 mega watts. The plans stipulate that construction work will begin in 2012 and becompleted in 2015. The power station will be located on the 13 acre site of the Szeged Industrial and Logistics Park.

The construction of the plant is the 8th jointproject of Siemens and Advanced Power. The project will use domestic suppliers and will provide temporary employment for 1,000 people during the construction stage, along with permanent jobs for another 50 once it has been completed.

Funding of HUF 4bn forurban development in the Northern Plains region

Eight cities in three counties of the Northern Plains region, Szabolcs-Szatmar-Bereg, Hajdu-Bihar, and Jasz-Nagykun-Szolnok, will receive HUF 4bn (€14.4m) of EU funding for urban development from the National Development Agency. Infrastructure developmentand renovation constitute the primary function of the projects.

The first city to receive the funds is Nagyecsed, which will receive a new mayor’s office. Local retail facilities will be renovated, and the city centre will be rebuilt. In addition, the church will be restored. Construction work is due to begin in August 2010 and to be completed in 2011.

Audi to expand factory in Gyor

Audi Hungaria Motor, the Hungarian subsidiary of Audi, has won a public procurement tender announced by the Hungarian State Holding for the purchase of a 200-acre property adjacent to its factory in Gyor. Audi Hungaria Motor paid HUF 5.2bn (€18.6m) net for the land.

The area was originally intended to be the site of a logistics park, as part of economic development plans for the city. Development plans are currently being modified, and it will be declared open for development as a result. The modification process is lengthy, because the property is bordered by an area whichis part of the EU’s Natura 2000 programme aimed at preserving national heritage. Audi has not yet disclosed any plans or information pertaining to its intentions toward the property.

First stage of industrial and logistics park in Fenyeslitke-Komoro completed

The construction of an industrial and logistics park adjacent to Fenyeslitke and Komoro, a ta cost of HUF 3.5bn (€12.5m), is underway, under the direction of the Eszak-AlfoldiRegionalis Fejlesztesi Holding, which received HUF 1.8bn (€6.5m) of EU and domestic funding for the project. The first facility, a modern sewage treatment plant, has been completed by Ke-Viz 21 Epitoipariat a cost of HUF 107m (€383,000). Ke-Viz21 Epitoipari is also responsible for the construction of industrial park infrastructure, including the inner roadways, drinking and waste water networks, lighting and pavements. As part of the project, Tigaz will build gas pipeline networks and E.ON will develop electricity distribution networks, where asthe inner railway system will be built by Vasuttechnikai. These stages will reach completionby late August 2010.

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