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EBRD supports modernisation of Hungarian telecommunications
Five regions in southern Hungary should experience better telecommunications once modernisation plans have been implemented with financial support from the European Bank for Reconstruction and Development (EBRD). A total of US$ 108.7 million, in the form of loans and equity investments, is being made to two telecommunications companies, Déltáv Rt and Emitel Rt, to install new technology and telephone lines.
Clell Harral, Director of the EBRD’s Telecommunications Team, said: “The modernisation and development of an efficient telecommunications system is a prime objective. These two projects will considerably improve the telephone network and services in five regions. State of the art technology will mean that the quality, availability and reliability of the services will be brought to high standards.” He continued, “By supporting infrastructure development in southern Hungary the EBRD is also fostering the growth of private enterprises in the region.”
A portion of both loans has been syndicated to commercial banks. The EBRD is providing Déltáv Rt with a total loan of US$ 75.0 million, of which US$ 40 million has been syndicated to Banque Nationale de Paris (BNP) and Dresdner Bank. Emitel Rt will receive an EBRD loan of US$ 30 million of which US$ 15 million is syndicated to the Hungarian Foreign Trade Bank (MKB) and Union Bank of Switzerland (UBS).
Déltáv Rt., which started operating in March 1995, will connect the two regions of Szeged and Szentes. The total project cost is US$ 210 million. The company is majority owned and controlled by the French Compagnie Générale Des Eaux.
Emitel, incorporated in 1994, operates in the three southern regions of Baja, Kiskoros and Kiskunhalas, which have a total population of approximately 305,000. The total project cost for the installation of the new lines is estimated at US$ 75.0 million. Emitel is owned by Matav, the Hungarian Telecommunications Company (50 per cent) and Aphrodite B.V. (50 per cent). Aphrodite is a holding company registered in the Netherlands and majority owned and controlled by Bezeq Ltd, the national telecommunications operator of Israel.
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