Index – Economics – Elios-gate: Orban was also not interested in borrowing



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In 2014, during the reign of Zsolt Páva de Fidesz, Pécs commissioned Elios with the modernization of public lighting. Peacock explained the proposal presented to the General Assembly six years ago by saying that

IT WILL BE VERY CHEAPER FOR THE CITY IF THE STREET LIGHTS ARE REPLACED BY LED.

The proposal stated that the city would spend around 500 million guilders a year operating the system at that time, of which 420-440 million would be electricity charges and 50-60 million for maintenance.

The municipality, based on Peacock’s submission, also issued a public tender for the replacement of 900 million lamps, and also for the 1 billion loan with which the project was financed. Two financial institutions applied to grant the loan, and finally the OTP won. The interest on the 1,045 million HUF loan exceeds 420 million. The city committed HUF 235 million for the 2015 budget loan, and from 2016 to 2029 it repaid HUF 73.3 million per year. The Asociación Todos por Pécs, founded by Tamás Mellár, requested the 2015 street lighting modernization documents from the opposition-led local government in a request for public data, which was reviewed by Transparent. While they write

SPECIFICALLY FOR THE LIGHT WON Elios, 2014 July 11. PUBLISHED INVITATION TO BID THE SAME ESTABLISHED THAT “NET ONLY IN COMPANY initiates the tender IN WHICH THE PREVIOUS THREE YEARS AT LEAST 500 MILLION HUF of revenue generated LED lighting upgrades.”

Only Elios Zrt. (Formerly ES Holding Zrt. And E-OS Innovatív Zrt.) It was able to meet this condition, since as of 2009 it renewed the public lighting of several Hungarian settlements in turn, mainly with the support of the EU. In the offer, Elios entered net sales of 869 million from the renovation of the LED street lighting during the last three years, with the Siófok and Hódmezővásárhely projects as references.

In addition to Elios, Pannon Nívó Zrt. He also requested the tender, but they submitted an incomplete offer, so they withdrew and Elios won. According to Transparent, all that was needed was the approval of the government of Viktor Orbán to obtain the replacement of the lamp, which the city received. So they let the city go into debt, the point is that the right people and interests were doing well, Transparent notes.

Dark and dangerous

The lamps were supplied by GE Hungary to Elios for a net investment of 163.9 million HUF. On the delivery in 2015, the municipality of Pécs told Elios, based on a signal from the company responsible for the management of the city, that everything was not right, because pedestrians could not be noticed in the pedestrian crossings, they could being run over by vehicles.

Instead of Elios, the subcontractor (OHIM) replied:

the modernization of public lighting did not have the task of standardizing the pedestrian crossings affected by the project.

Then, on March 17, the transfer was made and the municipality confirmed that the Elios had done the job in order. Impaired pedestrian visibility was not included in the minutes.

Unlike many settlements in Hungary, Elios modernized the street lighting in Pécs from non-EU sources, so this project was not investigated by the European Union Anti-Fraud Agency (OLAF).

However, Mayor Zsolt Páva was reportedly satisfied with the project, as a year later he came up with the idea of ​​continuing to modernize Pécs’ public lighting. In its presentation to the meeting on June 23, 2016, the General Assembly proposed that project II. install 12,337 new LED fixtures (replacement of 12,190 old fixtures and 147 expansion) in a 10-year lease construction.

Elios, owned by István Tiborcz until 2015, renovated the public lighting in several Hungarian cities with EU money, such as Szolnok, Hévíz, Szekszárd, Mezőhegyes and Zalaegerszeg. The work left something to be desired in some places – in some parts of Zalaegerszeg, for example, the traffic was dangerous for both pedestrians and motorists, and eventually the lights were replaced.



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