The Minister for National Development issued calls for proposals for concessions to develop hydrocarbon mining and to increase the utilisation of geothermal energy.

Potential investors can bid for exclusive mining concessions in seven regions of Hungary. Calls for proposals have been announced to research, extract and utilise geothermal energy in the regions of Jászberény, Ferencszállás and Kecskemét, as well as to research, explore and extract hydrocarbon in the south-eastern and western parts of the Szeged Basin and in the northern and southern parts of the region of Battonya-Pusztaföldvár.

The tender process is open to any Hungarian or foreign individual or any organisation specified in Act CXCVI of 2011 on national assets. Bidders can buy the calls for proposals containing the relevant legal, financial, technical and other conditions and information by filling in the tender identification sheet and upon payment of the purchase price. The calls for proposals are available until 14 November 2013 at the Customer Service Office (1145 Budapest, Columbus utca 17-23.) of the Hungarian Office for Mining and Geology (MBFH), between 8.00 am and 2.00 pm on business days.

Every bidder may only submit one valid proposal. The Hungarian language proposals must be submitted as specified in the calls for proposals, in person, on 15 November 2013 between 10.00 and 12.00 am at the MBFH Customer Service Office. To make sure proposals are successful, bidders are required to place an amount equalling 7% of the minimum concession fee specified in the calls for proposals as a tender guarantee by the end of the bidding period, along with the payment of the participation fee (3% of the concession fees + VAT).

The results will be announced within 90 days of the submission deadline. Another 60 days will be available for the conclusion of the concession contracts, which may be prolonged by the Minister for National Development once, by a maximum of 60 days. The term of geothermal concessions will be 35 years from the date of the entry into force of the contract, while hydrocarbon concessions will be granted for a period of 20 years. The term of contract may be prolonged once, by half of the original term, without further calls for proposals.

The Minister for National Development issues the calls for proposals, evaluates the proposals and concludes the concession contracts with the participation of the MBFH in accordance with the provisions of Act XVI of 1991 on concessions and Act XLVIII of 1993 on mining. The detailed criteria for evaluation, the identification of legislation on the licensing, performance and termination of concession operations as well as the draft concession contract are contained in the calls for proposals.

The calls for proposals are published in the Official Bulletin of the Hungarian Official Gazette, two nationwide dailies and on the homepage of the Hungarian Office for Mining and Geology (www.mbfh.hu) and the Government’s portal (www.kormany.hu), and are also available in the official languages of the European Union in the Official Journal of the European Union, (C224) (http://eur-lex.europa.eu/).

(Ministry of National Development, Communication Department)