2005 - 2006 - Pinsent Masons Water Yearbook 2012

HUNGARY PART 2: COUNTRY ANALYSIS
Privatisation
There are now more than 400 different water or wastewater service providers in Hungary, although
80% of the market is accounted for by the 25 largest firms. Municipalities regard water provision and
sewerage as being a non-profit activity, with water supply obligatory, even to non payers. Prices have
to be confirmed with the municipality concerned before the concession is formally granted.
In 2004, the Hungarian National Water Directorate is expected to submit a draft law to parliament
regulating private sector involvement in the water and wastewater sector. Present legislation prevents
private companies from gaining a majority stake in water and wastewater utilities. This is directly
related to the need to raise funds for the EU accession programme and is likely to be used to
encourage concession contracts.
Freshwater
Total (1998, km 3 ) 6.0
Per capita (1998, m 3 ) 604
Withdrawals (1991, km 3 ) 6.3
For domestic use (1987) 9%
For industry (1987) 55%
For agriculture (1987) 36%
Privatisation of Budapest
Fovarosi Csatonazasi, Budapest’s sewerage services was privatised in 1997. A 25% stake was sold
to a joint bid by Berliner Wasser-Betriebe and Veolia. Financing of the project is via 25% equity and
75% debt. The concession involves the construction of 150km of sewerage piping and expanding the
South Pest STW by 40,000m³ per day. The operational contract for Favorsi Vizmurek Rt., Budapest’s
water provision utility, was awarded to Eurawasser AG. The concession award was delayed when the
municipality blocked proposals to raise water fees. Water provision for the city was 285million m³
(drinking) in 1996, along with 8million m³ for industry. 98% of the city is connected to mains water.
Water fees were Ft1.2 per m³ in 1990 and Ft45 per m³ in 1996. In January 1999, water fees rose by
13% and sewerage charges by 16.7%. In total, utility fees rose by Ft 230 for the average household.
Groundwater
Total recharge (1998, km 3 ) 6.8
Per capita (1998, m 3 ) 685
Withdrawals (1990, km 3 ) 1.0
For domestic use (1990) 35%
For industry (1990) 48%
For agriculture (1990) 18%
MAJOR CITIES
Population 2000 2015 Status
Budapest 1,819,000 1,819,000 Water and sewerage privatised separately
City study: Upgrading Budapest’s sewage treatment
Approximately 53% of the population of Budapest is connected to the sewerage network, 54% of
which is treated: 33% to secondary standard and 67% to primary standard. The two extant STWs are
being upgraded and four wastewater treatment works are to be built for Budapest by 2015. The
Dunaújváros and Veszprem STWs are currently under preparation. Csepel has been completed
(600,000m³ per day) and South Budapest for 2005+ (60,000m³ per day). After the two STW
upgrades, 40-45% of effluents in Budapest will be treated to at least secondary standard. The trunk
main will be connected to a further 19,000 people currently using septic tanks.
Organisational and planning delays may mean that HUF 80 billion (€319 million) from the EU will be
withdrawn. Construction work is meant to be started by the end of 2005, so the installation could be
ready for use by 2010. The HUF121 billion facility is designed to treat some 40% of the sewage in the
area, 65% of its funding coming from the EU, 15% from the budget of Budapest City Council and 20%
from the state budget.
109 Pinsent Masons Water Yearbook 2005 – 2006