For the first time, financing of the introduction of AFC system in Budapest has become realistic. In the last two decades similar systems have been launched in several big cities across the globe – now time has come for Budapest to finally join the club and get rid of the cash-leaking paper-based scheme. BKK has decided to embrace the open loop, server-centric model thereby making the future Budapest scheme one of the early adopters in the world.

At the end of January 2013, after nearly one year of negotiations, EBRD has announced its intention to invest in the project of BKK, the introduction of an AFC system in Budapest worth EUR 54.2 million.

BKK is responsible for the implementation and already started the preparation process based on the feasibility concept which was approved by the Budapest Assembly in early 2012. The bank, too, approved the concept. The loan agreement is expected to be signed in early summer pending further negotiations and due diligence to be carried out by EBRD and also the final approval of the Budapest Assembly.

The borrower of the loan will be BKK. BKK, as the PTA is responsible for fare revenue collection and sales as transport organiser and as the organisation in charge of the implementation of the AFC system. This is a great acknowledgement and trust from the side of the international financial institution towards BKK, the PTA of Budapest founded as recently as 2010.

In parallel with the announcement of the EBRD, BKK has started to prepare the procurement process. Contract awarding is expected to take place in the second half of this year while the implementation of the system begins next year. A procurement notice is expected to be published in February.

For more information please visit the homepage of BKK  and EBRD