Over $6 billion of EU development funds awarded in December 2017

January 4, 2018

https://flic.kr/p/9VwRTT
Photo: Flickr

HUF 1.6 trillion ($6.15 billion) of EU development funds, that is, one-fifth of all EU development funds earmarked for Hungary for the 2014-2020 fiscal period, were allocated in December 2017, reports portfolio.hu. This brings to 90 percent the amount of total EU funds awarded to date, although only 43 percent of the total has been disbursed so far, largely as advances.

Last month alone various Hungarian authorities announced the results of 4039 public tenders, bringing to over 55,000 the number of tenders awarded during the current seven-year fiscal period. In 2017 alone between HUF 200 billion (USD 769 million) and HUF 400 billion (USD 1.54 billion) of public tenders were awarded monthly.

The value of contracts concluded to date has reached HUF 7.345 trillion (USD 28 billion)  even though the results of a number of tenders have yet to be announced and a number of contracts have yet to be concluded, writes portfolio.hu.

The financial daily reports: “It is not by chance that the pay-out of EU funds surges mid-year and year-end as the monthly bonuses of many is based on the fulfillment of disbursement targets tied to these dates.”

As of the end of 2017, that is, Year 4 of the 2014-2020 cycle, 106 percent of the HUF 9.5 trillion framework (USD 36.5 billion) amount has been put to tender. The amount paid out to date approached HUF 4 trillion (USD 15.4 billion), that is, 43 percent of the total.  A large percentage of this is in the form of an advance on EU supports that are paid shortly after concluding the contract even though the EU-funded project in question can take months or even years to complete.