HUNGARIAN COMMERCIAL TELEVISION

Location:

Hungary

Project number:

4512

Business sector:

Information and Communication Technologies

Notice type:

Private

Environmental category:

B

Target board date:

04 Nov 1997

Status:

Complete

PSD disclosed:

07 Oct 1997

 

Project Description

The project is a US$ 28 million (ECU 24.9 million) senior debt finance facility in support of the establishment and the operation of TV2, a Hungarian national commercial private television channel.

The objectives of the project are to: (i) promote the reform, privatisation and commercialisation of the Hungarian electronic media; and (ii) strengthen the financial position of one of the first two independent national terrestrial TV companies by ensuring tailor-made long-term financing.

Transition Impact

Hungary is in the process of liberalising and privatising its electronic media market. The successful operation of a private enterprise financed from commercial funds is expected to contribute to freeing the media and to have a significant demonstration impact. Television is today the most influential advertising medium. The Bank's promotion of the advertising business in Hungary will have a major positive impact on consumer awareness and sophistication, in general.

The Client

MTM-SBS Televízió Rt., a Hungarian company which has secured a licence to operate a private commercial TV station in Hungary under the trade name of TV2.

EBRD Finance

US$ 14 million (ECU 12.5 million).

Project Cost

US$ 40 million (ECU 35.6 million).

Environmental Impact

The project was screened B/0 by the Environmental Appraisal Unit (EAU), requiring an environmental analysis of the proposed project. The analysis was performed by an engineer and it examined the environmental issues associated with TV2's assets and operations and the use and disposal of hazardous materials and obsolete equipment following an environmental questionnaire provided by the EBRD. TV2 has confirmed that the operation of the studios and the transmission station, including the disposal of potentially hazardous materials, and occupational health and safety comply with the relevant EU, national and local requirements. Noise and exhaust emissions from emergency power generators will meet international standards. No chemicals, gases, or other hazardous substances will be utilised. All electrical components meet EU legal requirements. The company is committed to complying with the requirements for the permitting procedure for all developments that will need to be submitted for approval.

Technical Cooperation

None

Company Contact

 

Business opportunities

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