News
Hungary: CEB approves € 150 million to support social investments in education and sports facilities
25 March 2020
PARIS – The Council of Europe Development Bank (CEB) has approved a € 150 million loan to the Hungarian government to finance the modernisation and expansion of school infrastructure, including facilities used for physical education activities.
The CEB loan builds on previous financing provided by the Bank in support of the National Public Educational Infrastructure Development Programme (NPEIDP), an initiative launched in 2014 by the government in order to address qualitative disparities in education among various regions and areas in Hungary. Specifically, the programme aims to put in place modern classrooms and physical education facilities that would ensure equal access and development opportunities for all youth, regardless of the revenue-generating capacities of local governments.
The investments under the second phase of the NPEIDP will cover the expansion of classrooms in primary and secondary schools and the construction of physical education facilities and swimming pools for educational purposes. Most of the improvements will benefit the Central Hungarian Region, which sees its population rise continuously and is experiencing a shortage of space in primary schools, with teaching sometimes taking place in makeshift or container classrooms. In addition, these investments are not eligible for funding from other sources such as the EU.
The remaining investments under the CEB loan will provide for the construction of new sports and training facilities in several municipalities across Hungary. Part of the loan will be used for the construction or rehabilitation of primary and secondary schools that are not included in the NPEIDP and which are not eligible for funding from EU resources.
All facilities to receive financing under this loan will be child-, disability-, and gender-sensitive. Improvements will comply with high energy performance standards and thus cut down on energy costs for the existing facilities and reduce the environmental impact of new constructions. About 9 500 children living in 77 municipalities in Hungary are expected to benefit from the infrastructure improvements.
CEB Governor Rolf Wenzel said: “The CEB has a track record of financing primary and secondary education and sports infrastructure, both of which are crucial for the development and well-being of young persons. The CEB attaches great importance to these areas and is pleased to continue to support the implementation of the Hungary’s programmes in this sector.”
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Hungary joined the CEB in March 1998. To date, the Bank has provided more than € 2 billion in financing for a wide range of social investments, from education and municipal infrastructure improvements, including flood protection, to support for MSMEs. Hungary is among the ten largest recipients of grant funding (interest rate subsidies, loan guarantees, and grants proper) from the Bank’s trust accounts. It has also contributed grant resources to the CEB’s Migrant and Refugee Fund.Set up in 1956, the CEB (Council of Europe Development Bank) has 41 member states. Twenty-two Central, Eastern and South Eastern European countries, forming the Bank's target countries, are listed among the member states. As a major instrument of the policy of solidarity in Europe, the Bank finances social projects by making available resources raised in conditions reflecting the quality of its rating (AA+ with Fitch Ratings, outlook positive, AAA with Standard & Poor's, outlook stable and Aa1 with Moody's, outlook stable). It thus grants loans to its member states, and to financial institutions and local authorities in its member states for the financing of projects in the social sector, in accordance with its Articles of Agreement.