Hungary classifies details of China-backed rail project

The Hungarian parliament voted Tuesday to classify for 10 years the contract details of a China-financed Budapest-Belgrade railway track, billed as Hungary's biggest ever infrastructure investment.

The high-speed line will upgrade an existing link between the Hungarian and Serbian capitals, and was of "overriding public interest," according to the text of the bill.

It said keeping the details of the contract secret for 10 years was necessary as disclosure could "threaten Hungary's ability to pursue its foreign policy and trade interests without undue external influence".

Under the agreement signed with China's state-owned Exim Bank, Hungary will finance 85 percent of the investment costs -- estimated to be at least 2 billion euros ($2.2 billion) -- from credit and the remaining 15 percent from its own funds.

The government previously said classifying the details was necessary to secure the required credit from Exim Bank.

According to the legislation, Budapest can still decide on the disclosure of project documents "having obtained the position of the Government of the People's Republic of China".

The investment has drawn criticism for potentially giving China a say in Hungary's affairs, as well as its huge cost to the taxpayer.

Critics also point to doubts over its potential profitability and the corruption risks involved in building the Hungarian section of the 350-kilometre-long (220-mile) track.

The track will be built partly by business interests close to Prime Minister Viktor Orban, and would form part of a planned railway connection linking central Europe with the Chinese-run Piraeus port in Greece.

The project is part of China's ambitious "Belt and Road" initiative, Chinese President Xi Jinping's signature global infrastructure project to deliver Chinese goods from east to west.

Italy, Portugal and Greece, as well as several eastern European countries, have joined the trillion-dollar initiative, seen in the West as a global trade plan to boost Chinese influence.

The Budapest-Belgrade would be the first major Chinese-backed railway project within the European Union, according to analysts.

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Hungary signs China-backed Budapest-Belgrade rail project
Budapest (AFP) April 24, 2020
Hungary signed Friday a China-financed loan agreement for a high-speed railway linking Budapest and Belgrade, billed as Hungary's biggest ever infrastructure investment and one whose contract details could be kept secret for a decade. "An important agreement was reached today: the construction work can begin with the signing of the loan agreement for the Budapest-Belgrade railway line," said Finance Minister Mihaly Varga in a Facebook video. The 350-kilometre-long (220 mile) high-speed rail lin ... read more