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Municipalities Not Only Have to Give Waterworks to State for Free, But Also Have to Pay for Transition

Water utility associations that municipalities are forced to give up their ownership of have to arrange their own nationalization, writes Népszava based on a document the news source has seen.

Through an integration program, municipalities whose waterworks are close to bankruptcy can transfer them for free to the government, thus freeing them from their obligation to continue supplying services. The entire transition process for this was created by the municipal associations, and must be financed from the budget of the Hungarian Waterworks Association (MaVíz).

The state will not forgive the debt carried by municipalities to the service providers – it will still “have to be paid from other resources” even after the town hands over its water utility.

Estimates indicate that at least 20 municipalities may be forced to hand over their waterworks.

Municipalities will have to decide on this by September 20, and have until November 1 to complete the transition. But one local municipality expert who spoke to the news outlet said the transition would be impossible, as the state does not have the appropriate apparatus to deal with it. [444]

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