Investment Plan for Europe supports expansion of Budapest Liszt Ferenc International Airport
Continued expansion and upgrades of Hungary`s main international airport are at the core of the €200 million loan agreement signed today between the European Investment Bank and Budapest Airport, the company operating Liszt Ferenc International Airport.
The EIB loan, backed by the European Fund for Strategic Investments (EFSI), the heart of the Investment plan for Europe (or Juncker plan), will allow Budapest Airport to continue investing in major infrastructural upgrades, in particular a significant expansion of its terminal facilities and related infrastructure.
The investments will increase the capacity of the airport in order to accommodate expected future demand growth. The new terminal will be a state-of-the-art facility and will ensure a world-class travelling experience for passengers.
In addition to the above investments, Budapest Airport is undertaking many other significant projects, including a new cargo facility, a multi-storey car park and a range of projects aimed at ensuring a continued high service level.
These developments will ensure that Liszt Ferenc International Airport continues to be a world-class airport serving a world-class destination while also maintaining the highest airport safety and security standards.
Vice-President of the EIB, Vazil Hudak, said: “The EIB is supporting the expansion of Budapest Airport as one of the fastest growing airports in Europe. Together with our partners, we will sustain and create jobs in and around the airport, support economic growth in Budapest and Hungary as a whole, and help improve the passenger experience. We are proud to contribute to the success of Budapest Airport.”
Commissioner for Education, Culture, Youth and Sport, Tibor Navracsics, said: “This is great news for Hungary, the Hungarian people and the tourists who come to visit the country. The funds freed up with this new loan backed by the Investment Plan for Europe will help boost development and economic growth in the region of Budapest and the rest of the country, while contributing to making Hungary an even more attractive destination.”
“The European Investment Bank is once again supporting the realisation of an important and forward-pointing development” – said Gábor Gion, State Secretary for Financing Affairs at the Ministry of Finance. He underlined: “the EIB has brought and continues to bring resources to Hungary with favourable conditions for programmes improving competitiveness, contributing to the realisation of investments in both the private and public sectors. We are particularly pleased that the airport development announced today will be supported by the European Fund for Strategic Investments. Thus the Bank may play a significant role in reducing the risk of investors.”
CEO of Budapest Airport, Jost Lammers, said: “We are honoured and proud to announce the involvement of the EIB as following nearly a year of hard work we undertake an ambitious plan to expand and further develop Budapest Airport. With plans to invest over €700 million during the next five years, Budapest Airport will implement a series of important projects that will provide a continued high quality service level for passengers while ensuring a safe and secure environment for all travellers and thus improve the aviation connectivity of Hungary.”
In 2017 Budapest’s Ferenc Liszt International Airport served more than 13.1 million passengers, an increase of 14.5% from 2016. This growth trend has also continued in 2018.
The European Investment Bank (EIB) is the long-term lending institution of the European Union, owned by the EU Member States. It makes long-term finance available for sound investment in order to contribute towards EU policy goals both in Europe and beyond. The European Investment Bank is active in around 160 countries
Investment Plan for Europe
The Investment Plan for Europe, known as the Juncker Plan, is one of the European Commission’s top priorities. It focuses on boosting investment to generate jobs and growth by making smarter use of financial resources, removing obstacles to investment, and providing visibility and technical assistance to investment projects.
The European Fund for Strategic Investments (EFSI) is the main pillar of the Juncker Plan and provides first loss guarantees, enabling the EIB to invest in more projects that often come with greater risks. EFSI has already yielded tangible results. The projects and agreements approved for financing under EFSI are expected to mobilise €360 billion in investment, including €2.2 billion in Hungary, and support 850 000 SMEs in the 28 Member States.
Budapest Airport
Budapest Airport is the best airport in Eastern Europe, as recognised by Skytrax in five consecutive years from 2014 to 2018, based on passenger ratings. Budapest Airport Ltd., the operator of Budapest Ferenc Liszt International Airport, is owned by a consortium of Canadian (Caisse de dépôt et placement du Québec, 21.228%) and Singaporean (Malton Investment Pte Ltd., 23.334%) investors led by AviAlliance GmbH (55.438%). The terminals of the airport are home to 44 airlines which transported 13.1 million passengers to 125 destinations in 45 countries in 2017 (14.5% growth rate in 2017 vs. 2016). In 2017 Budapest Airport handled 127.145 tonnes of cargo (a 13.4% growth rate vs. 2016).
