PRIVATE FORTUNE FROM PUBLIC MONEY

Two students’ hostels will be built from state loans, the loan will be repaid from public funds but the buildings will be the property of the private investor, Magyar Nemzet has been informed.

MNO
2005. 03. 21. 9:35
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The state-owned Hungarian Development Bank will give the loan for the private investor to the building of new students’ hostels belonging to Miskolc and Veszprém Universities in the programme of academic infrastructure development. So the buildings will be built from public funds and the loan will be repaid in the form of rent from public money but the real estates remain in private property. In Miskolc University the students’ hostel will be able to sleep 605 students from HUF 1,9 billion while in Veszprém University 800 people will be accomodated for HUF 2,6 billion.

The tender has been won in both cases by the consortium of Magyar Építő Company and OTP Ingatlan Company but the loan is given by the Hungarian Development Bank and not by OTP Bank. Péter Korda, managing director of OTP Ingatlan Company confirmed the information saying the offer of the Hungarian Development Bank was more advantageous. According to Mr Korda the hostel spaces will cost an average of HUF 40 500 rent per month for the universities.

According to Magyar Nemzet in this way Miskolc University will pay for the 605 spaces a monthly total of HUF 24,5 million, in twenty years this will make HUF 5,88 billion. Veszprém University will rent 800 spaces for a monthly HUF 32,4 million, so in two decades it will pay HUF 7,776 billion to the private investor – almost three times the original sum but the buildings will still remain in the property of the investor. Prime Minister Ferenc Gyurcsány said on Wednesday, signing the agreements about the academic infrastructural development programme that there was no common good without private effforts. It seems highly questionable, however, in what manner and proportion they can complement each other.

Translated by Péter Szentmihályi Szabó

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