The European Investment Bank (EIB) is to lend €250 million to Hungary to finance a railway infrastructure rehabilitation and upgrade programme.
The works, to be carried out between now and 2016, will improve the safety, capacity and performance of the existing conventional railway infrastructure.
Improvement works will be carried out on tracks, signalling, telecommunications and bridges. Stations and passenger buildings will also be modernised, including increasing accessibility for people with reduced mobility.
The aim is for Hungarian railways to become more competitive and attractive in comparison will less environmentally-friendly modes of transport such as road.