New Chinese loan on the horizon? Hungary discusses three infrastructure projects in China

Miniszter Nagy AIIB China infrastructure
Photo: Facebook/Nagy Márton

National Economy Minister Márton Nagy said the Asian Infrastructure Investment Bank (AIIB) could play a significant role in key transportation development projects in Hungary after participating in the lender’s annual meeting in Beijing.

In a statement issued by his ministry on Thursday, Nagy said Hungary’s government aimed to strengthen further the country’s function as a “meeting point” for capital and technology from the East and the West. He added that required lenders from both the West, such as the European Bank for Reconstruction and Development (EBRD) and the European Investment Bank (EIB), and the East, such as the AIIB.

He noted that Hungary had joined the AIIB in 2017, a year after it started operating, in its first round of expansion.

3 huge projects discussed

He said talks with the bank’s management had addressed three big projects:

  • the expansion of border crossing capacity along the border between Hungary and Serbia;
  • the construction of a railway bypass V0 around Budapest;
  • and the upgrade of Hungary’s electric vehicle charging station infrastructure.

Nagy stressed the importance of connecting physical and digital infrastructure for boosting economic competitiveness and trade, as well as for sustainable development.

Hungary is committed to enhancing its cooperation with the AIIB, especially with regard to the launch of new infrastructure projects and support for sustainable, innovative investments, he said. Nagy acknowledged the work of outgoing AIIB President Jin Liqun and congratulated Zou Jiayi on her election as his successor.

Nagy signs strategic agreements during China visit

Nagy met with officials from the National Development and Reform Commission (NDRC), the Ministry of Industry and Information Technology (MIIT) and the Ministry of Finance on Tuesday. During the visit ,a memorandum of understanding was signed with the NDRC on cooperation concerning AI, and one with the MIIT on the establishment of a China-Hungary Automotive Industry Cooperation Working Group.

In Nagy’s meeting with NDRC executives, the parties reviewed key topics of Hungarian industry development strategy. The focus of the meeting was on AI solutions related to the development of self-driving vehicles and improving the competitiveness of the Hungarian SME sector. The agreement signed aims to promote the exchange of experiences, increase the adaptability of Hungarian SMEs to AI, support joint research and development projects, and help the further international integration of the ZalaZONE test track.

At the minister’s meeting with MIIT officials, talks focused on cooperating in automotive ecosystem developments with particular attention to the development of the charging infrastructure for electric vehicles, technology transfer in the field of self-driving cars, and expanding industrial production capacities in Hungary.

The China-Hungary automotive working group being set up aims to spread knowledge of and promote the most advanced technologies in Hungary. On the Hungarian side, members will include associations dealing with the topic, universities, domestic companies and the National Economy Ministry. The Chinese side will be comprised of the MIIT and companies from a whitelist.

Nagy also met with representatives of the Ministry of Finance to discuss cooperation between the two countries, as well as the institutional transformation resulting from the merger of the National Economy Ministry and the former Finance Ministry.

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