The European Investment Bank (EIB) is providing a loan of EUR150m to MVM for the capacity increase and extension of a high-voltage transmission network in Hungary.

The project is expected to improve the security and the diversification of the electricity supply through the development of additional internal and cross-border transmission capacity.

The EIB loan will co-finance the reinforcement and extension of the Hungarian electricity transmission network over the period 2009-2015, particularly the upgrading of the 109km-long Martonvasar-Bicske-Gyor transmission corridor, interconnecting the greater urban area of the Hungarian capital Budapest with the North-West of the country.

The project also includes the construction or extension of six substations situated in various locations across Hungary. The promoter of the project is Mavir, a Hungarian transmission system operator and a subsidiary of MVM.

In Hungary, EIB supports investment projects designed to reduce disparities in regional development, strengthen economic competitiveness and improve living standards and the quality of life, EIB said.