EIB grants Hungary flood recovery loan

The European Investment Bank (EIB) has announced that it is lending some €63 million to finance emergency, reconstruction and preventive measures related to two major disasters that hit Hungary in 2010: river floods and the breaking of a dam holding contaminated water with aluminium production residues, Portfolio Hungary reported

"I very much welcome the fact that the EIB is financing measures that will not only restore the situation prior to the natural catastrophes that Hungary has faced in recent years, but will also help to prevent similar disasters occurring in the future by providing better protection of people and property," commented EIB Vice-President Wilhelm Molterer.

In the area of flood recovery and prevention the EIB loan will finance measures focused on restoring the previous protection level, with reconstruction and replacement of flood defence infrastructure and buildings, flood risk mitigation rehabilitation, and the repair and construction of dykes, emergency and storm water reservoirs, etc.

Regarding the damaged red sludge dam, the project will support measures limiting the impacts of the red sludge in affected areas. These measures comprise in particular the prevention of further red sludge spills, reconstruction and replacement of public infrastructure, including a bridge and railway tracks, demolition of 306 houses, reconstruction of 53 houses and construction of 111 new houses. Further activities include remediation, excavation and transport for final disposal of sludge and contaminated soil, EIB said in a statement.

Hungary, represented by the Ministry for National Economy, is the EIB loan borrower and project promoter, while local governments and eligible public and private entities, including SMEs, and individuals affected by the damage caused, are the final beneficiaries of the loan.