Hungary opens tender for geothermal concession in the Southeast of the country
The Hungarian Minstry of National Development has published invitations to tender for a concession for the exploration and exploitation of geothermal energy in the area of Gádoros, 180 km southeast of Budapest, the capital of the country.
The Minister of National Development in Hungary has published invitations to tender for concessions for the exploration, development and exploitation of hydrocarbon in 9 areas, as well as the exploration and exploitation of geothermal energy in the area of Gádoros.
Details for the geothermal concession have been published via the official tender platform of the European Union.
Duration of the concession: 35 years from the entry into force of the concession contract; the original duration may be extended once without a further call for tenders for a maximum of half of its original duration if the Concession-Holder and Concession Company have complied with all their obligations in accordance with the contract and on time.
Size of area designated for concession: 419,4 km2 and is located in the Southeast of the country, about 180 km southeast of the country’s capital Budapest.
Minimum net concession fee: HUF 45 000 000 (forty-five million forint) plus VAT, but a bid for a larger fixed amount may be entered in the tendering procedure. Once the result is published, the successful bidder must pay the concession fee for the amount, in the manner and by the date specified in the concession contract.
Participation in the concession tendering procedure is subject to payment of a participation fee of HUF 1 500 000 (one million five hundred thousand forint) plus VAT; this amount is to be paid in the manner specified in the Tender Document.
In addition to paying the participation fee, for their bid to be valid bidders must lodge a tendering security of HUF 15 000 000 (fifteen million forint) by the day preceding the deadline for submitting bids as a guarantee that the bid is binding. The tendering security paid will be forfeited to the Contracting Authority if the bidder withdraws or if the bidder is successful but then fails to conclude the contract or fails to pay the concession fee offered, for the amount, in the manner and by the deadline stipulated in the contract. The tendering security is to be paid in the manner specified in the Tender Document.
The lowest rate of the mining royalty payable on the basis of the concession contract will be 2 % in accordance with the decision of the Minister; a bid for a higher mining royalty may be entered in the tendering procedure, which if agreed is recorded in the concession contract and must be paid for the duration of the concession.