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Project summary document

Project name:M6-M60 Motorway
Country:Hungary
Project number:38376
Business sector:Transport
Public/Private:Private
Environmental category:A
Board date:4 March 2008
Status:Signed
Date PSD disclosed:
Date PSD updated:
8 January 2008
Local language translation:Magyar fordítás 
Date translation disclosed:25 February 2008
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M6-M60 Motorway [Environmental Impact Assessment]
EBRD provides €75 million for expansion of Hungarian motorway network [Press Release]

Project description
and objectives:

The proposed project is to design, build, finance, operate and maintain

(i) the 48 km long 2x2 lane section of the M6 expressway between Szekszárd and Bóly, and

(ii) the 30.2 km long section of M60 expressway between Bóly and Pécs in the Republic of Hungary under a 30 year availability fee-based concession.

This concession is pursuant to a concession contract between the Ministry of Economy and Transport of the Republic of Hungary and the concessionaire, Mecsek Autópálya Consortium, that was set up by Strabag A.G., Bouygues Travaux Publics S.A., Colas S.A., John Laing Infrastructure Limited, and Intertoll Europe Zrt.

EBRD senior loan of EUR 75 million will form part of a Term Loan Facility of EUR 784.8 million to finance the construction of M6-M60 Motorway and to cover transaction costs.

Transition impact:

This transaction will have significant transition impact derived mostly from spreading private ownership and transferring of know how.

This motorway, being only the third privately operated motorway in Hungary, will expand the private provision of capital and services in the Hungarian road sector. The Concessionaire of the M6-M60 Motorway is fully owned and controlled by the private sector and is expected to introduce new operational, managerial and commercial practices, including in this specific case innovative managerial and technical tunnelling methodology.

By increasing the number of private road operators in Hungary, the Project will contribute to greater efficiency and competition in the privately constructed and managed road network in the country as well as expansion of the technical innovation and quality and safety standards prevalent in the overall road network system in Hungary.

The client:

The Mecsek Autópálya Consortium was set up by Strabag A.G. (30%), Bouygues Travaux Publics S.A.(15%), Colas S.A. (15%), John Laing Infrastructure Limited (30%), and Intertoll Europe Zrt. (10%). These companies together represent a strong combination of local and international road construction expertise and financial standing. All are experienced in international BOT projects and have a focus on Central and Eastern Europe including Hungary, which they consider as part of their home market.

EBRD finance:

EBRD is financing EUR 75 million of Senior debt as part of the Term Loan Facility of EUR 784.8 million.

Total project cost:

EUR 1,000 million.

Environmental impact:

In accordance with EBRD Environmental Policy, the construction of a new road of four or more lanes, where such new road would be 10 km or more in a continuous length is classified in environmental category A. For this reason, the project requires an Environmental Impact Assessment (“EIA”) and public consultation in accordance with the EBRD’s Category A project requirements.

Information reviewed during the environmental appraisal

An EIA has been prepared in accordance with the relevant EU Directives, Hungarian regulations and EBRD requirements.

Consideration of alternative routes and the selection of the route

Preliminary studies on alternative routes for the M6 motorway development were prepared in 1998 and 1999. At the preliminary design phase of the project three alternatives were considered for the Szekszard-Boly section, and two alternatives for the Pecs- Boly section. In 1999, a preliminary EIA was prepared for the section of the highway between Dunaujvaros and the Hungarian border (which covers both sections in question of this assessment). As a result of public consultation and reviews by governmental authorities, a single route was selected for a detailed EIA in 2002. Separate EIA’s were prepared for the Section 4 (Szekszard - border) and for the M60 section (Boly – Pecs) of the motorway in 2003 and 2004, respectively.

Further public consultations were held on the detailed EIA’s in 2003 and 2004. The environmental permits for both sections were issued in 2004. Subsequently, the design was further modified to include the construction of four tunnels near to the town of Vemend, a bridge on the section between Boly and Pecs and some other minor modifications to the route. EIAs of these modifications were conducted and the amended EIA’s for both sections were submitted in 2004. The environmental permit for the final route was issued in 2006.

Key environmental issues and mitigation

The predicted impacts are to a large extent mitigated through technical solutions contained in the project design and also through appropriate mitigation measures. In addition, a draft Environment & Social Action Plan (ESAP) has been developed so as to mitigate the identified significant adverse impacts. A Non–Technical Executive Summary of the EIA providing a description of the identified significant impacts and the planned mitigation measures is posted on the EBRD website.

The identified significant environmental, health and safety and social issues, for which mitigation measures have been developed, are as follows:

  • Soil and groundwater
  • Surface water
  • Air quality
  • Noise and vibration
  • Ecology
  • Landscape
  • Built environment
  • Waste management
  • Archaeology and cultural heritage
  • Health and safety
  • Social and community

Disclosure of information and consultation

Under the relevant Hungarian legal regulations, public information and consultation is undertaken in the course of the planning process of motorways. Studies on several route alternatives were undertaken in 1988. In this preparative phase, the Preliminary environmental impact assessments (PEIA) for both road sections were completed in 1999. The PEIA was made publicly available through the Competent Inspectorate and no public objections were received.

The Detailed Environmental Impact Assessment (DEIA) for the M6 section between Szekszard and the national border was completed in November 2003, and the Inspectorate held public hearings in two settlements, Bataszek and Boly. In 2004, the DEIA on the M60 access road to Pecs was completed and submitted to the Inspectorate, who held public hearings on two occasions in Pecs, and organized a public forum.

A Draft Public Consultation and Disclosure Plan (“PCDP”) has been prepared and a process for the management of grievances during construction and operation has been proposed within the ESAP.

Monitoring

A draft ESAP has been developed as part of the study in order to define the environmental and social monitoring measures and procedures that will need to be adopted during construction and operation. The ESAP defines the action required, investment needs, resources and the timetable for the completion of each action. The monitoring will be focused on the potential key impacts identified during the EIA to ensure the efficiency of the planned mitigation measures. The EBRD will evaluate the project's compliance with the applicable environmental and social requirements during the lifetime of the project by monitoring visits and reviewing annual environmental reports (AERs) prepared for the project.

There is an Environmental Impact Assesment available for this project.

Technical
cooperation:

None.

For consultant opportunities for projects financed by technical cooperation funds, visit procurement of consultants.

Company contact:

MAK Mecsek Autopalya Koncesszios ZRT
6-12 Korhaz utca
1033 Budapest
Hungary
Tel: 361 436 0930

EBRD contact:

Agnieszka  Lukasik, Operation Leader: lukasika@ebrd.com

Business opportunities:

For business opportunities or procurement, contact the client company.

General enquiries:

EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168; Fax: +44 20 7338 7380
Email: projectenquiries@ebrd.com


Project Summary Documents are created before consideration by the EBRD Board of Directors. Details of a project may change following disclosure of a Project Summary Document. Project Summary Documents cannot be considered to represent official EBRD policy.
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