Three NGOs have demanded that the government suspend financing of the Balatonring motorcycle race track at Sávoly, based on the findings of a feasibility study conducted by financial consultants KPMG.
Transparency International, K-Monitor and the Civil Liberties Union have published an open letter to Prime Minister Gordon Bajnai asking him to put on hold a Ft 15.3 billion loan from state development bank MFB, as well as a Ft 20 billion subsidy.
The NGOs based their case on a KPMG report which said that funding and risks are too high in relation to possible earnings.
The government has also agreed to take on the Ft 1.5 billion annual racing fee, which is likely to rise over the years, they add.
In October, Finance Minister Peter Oszkó refused to give his approval for a state subsidy to the construction consortium led by Spanish investor Sedesa, after experts found the project too risky, uneconomical and possibly illegal. The government nevertheless approved the investment in October.
The idea of building the track to host motorcycle races in Hungary arose when Hungary’s Gábor Talmácsi won the 125cc world championship in 2007. The track was originally planned to open in 2009, but was delayed by funding difficulties.