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M1/M15 and M5 motorways, Hungary

Some of the best-known examples of failed PPPs in CEE are the M1/M15 and M5 motorways in Hungary. These were among the rare cases when significant demand risk really was transferred to the private sector concessionaires, but as a result the M1/M15 ended up being fully renationalised and the M5 partially renationalised, thus showing that ultimately the public sector in any case bears the risk as it cannot afford for the service to be halted.

Croatian motorways: Bina Istra and Zagreb-Macelj

Negotiated with single bidders, the two PPP concession contracts are unlikely to offer value for money. The lack of reviews however make it difficult to confirm this.

The Palace of Arts, Budapest, Hungary

Budapest had no concert halls of international standards, and primarily due to a lack of state resources it was decided to implement this project as a PPP. Neither prior to nor after the signing of the contract was any impact study (including economic calculations) carried out. No cost analysis was carried out either. As a result, the details of the investment have been continually changing.

Arena Zagreb, Croatia

Arena Zagreb is the largest sports hall in Croatia, with a gross area of 90 500 square metres. It was opened in the beginning of 2009, and already in July 2009 the company had accumulated debt of EUR 600 000. To cover the yearly costs of loans, Arena Zagreb has to be occupied for 212 days per year, which turns out to be impossible.

Fossil fuels rebranded as low-carbon also in Cohesion Policy discussions

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Discussions in the European Parliament on the next Cohesion Policy have seemingly been taken hostage by fossil fuel friendly interests - once again with Poland taking the lead.


New EBRD mining strategy promotes unstable dependency on raw materials exports, say NGOs

Moscow, Russia -- In response to a public presentation today from the European Bank for Reconstruction and Development of its new mining strategy, NGOs CEE Bankwatch Network and Greenpeace Russia are calling on the bank to deprioritise investments in mining and mining-related infrastructure in order to avoid deepening the dependency of its countries of operation on raw materials exports.

Parliament: do not let Poland hijack green agenda

Source: Markus Trilling, EuObserver

Warsaw's latest battle against efforts to 'green' Europe's economy is being played out in the European Parliament's regional affairs committee. Polish-designed technical texts could kill the environment-friendly criteria attached to the next €1 trillion EU budget.

Letter to EBRD requesting evaluation of K2R4 safety modernisation before considering new loan to Ukraine's nuclear energy sector

Due to a number of so far unfulfilled project measures in an EBRD financed safety modernisation project in Ukraine (K2/R4 post start-up safety modernisation programme), Bankwatch has asked the EBRD's Chief Evaluator for a thorough evaluation before further loans for Ukraine's nuclear energy company Energoatom are being considered.

Polish Power-Station Free Carbon Bid Breaks Law:Greenpeace

Source: Ewa Kurowska, Bloomberg

Poland broke European Union law when unbuilt power stations were permitted to apply for free carbon allowances last year, Greenpeace and three other climate charities said.

EBRD refutes claim it will fund Ukrainian reactor life extensions

Source: Claire-Louise Isted, Platts

The European Bank for Reconstruction and Development has rejected claims by an anti-nuclear group that a loan it is considering together with Euratom for Ukraine's nuclear sector will be used to extend the operating lives of the country's Soviet-era reactors.

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