Budapest signs new deal with Alstom for metro trains

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The Budapest city government said Thursday it has signed a new contract with French group Alstom to purchase 44 trains for two of its metro lines.

The agreement was signed by Budapest Mayor Istvan Tarlos and Alstom group chief executive Patrick Kron and marks the end of a year-long dispute between the city and the company over train deliveries.

Budapest terminated an original contract, signed in 2006, last October over non-delivery of 22 trains meant for the M2 metro line.

Alstom was due to deliver the trains by February 2010 but failed to obtain the necessary permits from the National Transport Authority (NTA) due to non-compliance with Hungarian brake standards.

The new contract is still subject to approval by the National Development Agency (NFU) but Tarlos said he expected the go-ahead "in all probability."

The new contracts are worth some 260 million euros ($370 million).

© 2011 AFP

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