Hungary Awards HUF 5.62 Billion Contract for K?bánya-Kispest Railway Section Renewal Construction and Real Estate

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MÁV Pályaműködtetési Zártkörűen Működő Részvénytársaság has awarded a HUF 5.624 billion contract to Swietelsky Vasúttechnika Korlátolt Felelősségű Társaság for the renewal of the Kőbánya-Teher to Kőbánya-Kispest section of Hungary’s railway line No. 100. The approximately 4 km electrified double-track section in Budapest is a significant route for suburban, long-distance passenger and freight traffic. The procurement attracted five tenders, with the winning offer ranked first at HUF 5.624 billion against an estimated value of HUF 6.427 billion excluding VAT. The contract was concluded on 18 September 2026 following winner selection on 12 August 2026.

Introduction

Hungary’s railway infrastructure is set for a major renewal on the Kőbánya-Teher to Kőbánya-Kispest section of railway line No. 100, the Budapest-Szolnok-Debrecen-Nyírágyháza-Záhony corridor. According to the TED result notice, MÁV Pályaműködtetési Zártkörűen Működő Részvénytársaság selected Swietelsky Vasúttechnika Korlátolt Felelősségű Társaság as the winning tenderer for the works.

The project covers approximately 4 km of electrified, continuous-welded double-track railway in Budapest. The procurement includes track and substructure works, bridge rehabilitation, signalling modifications, telecommunications works and extensive overhead electrification renewal. The contract is valued at HUF 5,624,738,372 excluding VAT.

The result notice was published as TED notice 679118-2026 in OJ S 191/2026 on 2 October 2026. It records five tenders, including one from a micro tenderer, while two tenders were verified and considered inadmissible and one was identified as inadmissible because of an abnormally low price or cost.

Why This Contract Matters

The Kőbánya-Teher to Kőbánya-Kispest section is described in the procurement documents as an important route for both suburban and long-distance passenger services as well as freight traffic. Although the permitted speed is 80 km/h, the notice states that the infrastructure has become significantly outdated and that trains can currently operate at only around 40 to 60 km/h on the section.

The last comprehensive renewal of the infrastructure took place in the early 1970s. The project therefore represents a substantial intervention across several railway disciplines rather than a limited track maintenance programme.

The works are also strategically relevant because the route passes through a densely developed urban environment and includes railway embankments, stations, a major structure at Kőbányai út and multiple track connections. The procurement therefore combines civil engineering, railway systems and electrical infrastructure requirements within one contract.

Contract Timeline

• Previous notice: The result notice identifies previous TED notice 097572-2026.
• 31 July 2026: The procurement review decision D.274/2026 was recorded by the Közbeszerzési Hatóság Közbeszerzési Döntőbizottság.
• 12 August 2026: Swietelsky Vasúttechnika Korlátolt Felelősségű Társaság was selected as the winner.
• 18 September 2026: Contract 920-1/2026/SZK was concluded.
• 1 October 2026: The result notice was dispatched.
• 2 October 2026: TED publication date for notice 679118-2026 in OJ S 191/2026.

The TED notice specifies a contract implementation period of 210 calendar days from handover of the work area. The technical handover and acceptance period of up to 30 days is not included in this 210-day period.

Contract Overview

The procurement was conducted as an open procedure under Directive 2014/25/EU. The contract concerns works classified primarily under CPV 45000000, Construction work. The procurement was not financed with EU funds and was covered by the Government Procurement Agreement.

The estimated value excluding VAT was HUF 6,427,194,321. The winning tender was HUF 5,624,738,372 excluding VAT, representing approximately 12.5% below the published estimated value.

Key Contract Details

TED notice	679118-2026
OJ S issue	191/2026
Publication date	2 October 2026
Country	Hungary
Location	Budapest, HU110
Contracting entity	MÁV Pályaműködtetési Zártkörűen Működő Részvénytársaság
Project	Kőbánya-Teher to Kőbánya-Kispest section renewal
Procedure	Open procedure
Main CPV	45000000 - Construction work
Estimated value	HUF 6,427,194,321 excluding VAT
Winning tender	HUF 5,624,738,372 excluding VAT
Winner	Swietelsky Vasúttechnika Korlátolt Felelősségű Társaság
Winner selection	12 August 2026
Contract date	18 September 2026
Contract duration	210 calendar days
Tenders received	5

Project Scope

The project involves the renewal of approximately 4 km of electrified, double-track railway between Kőbánya-Teher and Kőbánya-Kispest. The track infrastructure works include replacement of the railway superstructure, substructure improvements, ballast screening, continuous-welded track replacement, expansion-device replacement and turnout works.

The procurement specifies 3,921 track metres of superstructure replacement, 3,467 track metres of ballast screening and 3,467 track metres of continuous-welded track replacement. It also includes replacement of eight expansion devices, demolition of four turnout groups, replacement of ten turnout groups, construction of approximately 1,490 metres of drainage facilities, two road-crossing replacements and two pedestrian-crossing replacements.

The works extend beyond the track itself. Two steel railway-bearing structures and one reinforced-concrete railway-bearing structure are to be renovated. Signalling works include modifications to mechanical interlocking and circuits at Kőbánya-Teher and removal of external equipment associated with discontinued turnouts.

Telecommunications works include cable protection and cable passages through structures. Electrical works include replacement of weight tensioning systems, insulators, corrosion protection for poles, overhead contact-line chains and bypass conductors. The project also requires the electrification equipment at Kőbánya-Teher station to be equipped with electrical drives and integrated into the FET system.

About the Contracting Authority

MÁV Pályaműködtetési Zártkörűen Működő Részvénytársaság is identified in the TED notice as the buyer and as the organisation providing additional information about the procurement procedure. The organisation is based in Budapest and its contracting-entity activity is identified as railway services.

The procurement was supported administratively by MÁV Szolgáltató Központ Zártkörűen Működő Részvénytársaság, which is identified as the procurement service provider. The notice identifies MÁV Pályaműködtetési Zártkörűen Működő Részvénytársaság as the contracting entity responsible for the procurement.

About the Organisations Involved

Swietelsky Vasúttechnika Korlátolt Felelősségű Társaság was the winning tenderer. The TED notice identifies it as a large economic operator based in Celldömölk, Hungary. Its tender value was HUF 5,624,738,372 and it was ranked first. The notice also records an Austrian nationality for its beneficial owner.

Homlok Fővállalkozó Építőipari és Kereskedelmi Kft. and Vasútvill-Gép Kft. participated as tenderers, with Homlok identified as leader of the tendering party. Their submitted tender value was HUF 4,431,572,449.

Vasútépítők Pályatervező, Kivitelező és Iparvágányfenntartó Korlátolt Felelősségű Társaság, V-Híd Építő Zártkörűen Működő Részvénytársaság and Generál Mély- és Magasépítő Zártkörűen Működő Részvénytársaság were also recorded as non-winning tenderers. Their tender values were HUF 4,992,805,719, HUF 5,998,653,200 and HUF 6,394,833,377 respectively.

The Közbeszerzési Hatóság Közbeszerzési Döntőbizottság is identified as the review organisation. The Közbeszerzési Hatóság is identified as the TED eSender.

Procurement Analysis

The procurement attracted five tenders, providing a competitive field for a technically complex railway renewal contract. The winning bid of HUF 5.624 billion was below the HUF 6.427 billion estimated value. The other recorded tender values ranged from HUF 4.432 billion to HUF 6.395 billion.

The award methodology combined price with technical and professional quality factors. Price carried a 70-point weighting, while additional professional experience for specified experts accounted for 15 points each. This means that the procurement was not based exclusively on the lowest submitted price.

The result data also shows that two tenders were verified and deemed inadmissible, one tender was verified and considered inadmissible because of an abnormally low price or cost, while two tenders were recorded as not yet verified for admissibility. The winning tender was ranked first.

The procurement documents also imposed demanding qualification and execution requirements, including professional qualifications, construction registration, Construction All Risks insurance and compliance with Hungarian construction regulations. These requirements are particularly relevant for suppliers considering participation in comparable Hungarian railway infrastructure projects.

Additional Procurement Facts

• The procurement consisted of one lot.
• The contract identifier is 920-1/2026/SZK.
• The tender identifier of the winning offer is EKR002533322025/6450.
• The procurement reference is EKR002533322025.
• The procurement was not financed with EU funds.
• The procurement was covered by the Government Procurement Agreement.
• No framework agreement was used.
• No dynamic purchasing system was used.
• The buyer received five tenders and five were submitted electronically.
• One tender came from a micro tenderer.
• One tender came from an SME category covering micro, small or medium tenderers.
• No tenders came from operators registered in other EEA countries or outside the EEA.

The result notice records five buyer review requests and two complainants. The review record D.274/2026 was dated 31 July 2026.

Market & Industry Perspective

The project illustrates the scale and multidisciplinary nature of railway infrastructure procurement in urban environments. Track renewal must be coordinated with structures, signalling, telecommunications and electrical systems, creating opportunities for companies with specialist railway capabilities as well as construction firms capable of managing integrated delivery.

The tender field also demonstrates that several established Hungarian infrastructure companies were interested in the opportunity. The participation of specialist railway, construction and infrastructure operators indicates that large railway renewal contracts can attract competition across multiple technical disciplines.

For suppliers, the project highlights the importance of combining competitive pricing with demonstrable technical experience. The award criteria specifically assigned points to additional experience of nominated professionals, making personnel capability a measurable component of the procurement.

Economic Significance

A contract value of HUF 5.624 billion places this project among substantial infrastructure procurements in the Hungarian railway construction market. The work will require expenditure across civil works, track materials, railway systems, electrical infrastructure, structures and specialist engineering.

The 210-day implementation period also creates a concentrated delivery programme. Contractors will need to coordinate multiple work packages within a defined period while maintaining the technical and safety requirements associated with railway infrastructure.

Because the project is located in Budapest and concerns a route carrying suburban, long-distance and freight traffic, the renewal has relevance beyond the immediate construction site. The procurement documents identify the route as important for several categories of rail transport.

Future Procurement Opportunities

The project points to continuing opportunities in railway track renewal, signalling, overhead electrification, railway structures, drainage, telecommunications and station infrastructure. Suppliers with established railway references may find similar opportunities across Hungary as infrastructure owners address ageing assets.

Integrated projects may increasingly require contractors to demonstrate capabilities across several engineering disciplines or to form appropriate tendering partnerships. Companies that can combine track construction with systems engineering, electrical works and specialist railway design may be positioned to participate in broader project scopes.

Opportunities for Suppliers

Suppliers can use this procurement as a reference point for understanding the qualification profile required for major Hungarian railway works. Relevant capabilities include track construction, turnout replacement, bridge rehabilitation, signalling, telecommunications, overhead line systems and railway electrical engineering.

The procurement also shows the importance of experienced personnel. The award criteria allocated 30 points in total to additional experience beyond the required experience levels for two specified professionals. This creates a direct commercial relevance for maintaining strong pools of qualified railway specialists.

International suppliers should also examine the Hungarian electronic procurement environment and applicable national construction and procurement requirements before pursuing comparable opportunities. The notice requires electronic submission through the Hungarian EKR system and sets specific conditions concerning professional registration and construction activity.

What Businesses Should Watch

• Future MÁV railway track renewal programmes and associated infrastructure works.
• Procurements combining track, signalling and electrical systems.
• Large Budapest railway infrastructure projects.
• Opportunities involving ageing railway infrastructure and speed-restriction remediation.
• Qualification requirements for railway engineering and construction specialists.
• Professional experience criteria included in award methodologies.
• Insurance, registration and financial requirements for major construction contracts.
• Electronic procurement requirements under Hungary's EKR system.

TendersOnTime.com Procurement Intelligence

The Kőbánya-Teher to Kőbánya-Kispest award represents a broader procurement pattern in which ageing railway assets are being addressed through integrated infrastructure contracts rather than isolated maintenance activities. The scope combines permanent-way renewal with structures, signalling, telecommunications and overhead electrical systems, creating a procurement profile that requires coordination across several specialist disciplines.

The award is strategically important because the procurement concerns a roughly 4 km section that serves suburban, long-distance and freight traffic. For suppliers, the project demonstrates that major railway opportunities can combine a high-value construction package with detailed professional qualification requirements and quality-based evaluation criteria.

Suppliers studying comparable tenders should therefore look beyond the headline contract value. The tender documents show how professional experience, construction registration, insurance, electronic submission and technical methodology can influence participation and evaluation. Monitoring these requirements early can help companies identify whether they are directly eligible or whether a specialist partnership is required.

Future railway contracts may continue to bundle multiple technical disciplines where infrastructure systems are interdependent. Procurement intelligence that captures the buyer, CPV classification, tender values, participating companies, award criteria and historical contract outcomes can help suppliers identify recurring buyers, competitor participation patterns and upcoming areas of investment before individual tenders reach their closing stages.

Supplier Takeaways

• The winning contractor was Swietelsky Vasúttechnika Korlátolt Felelősségű Társaság.
• The awarded contract value is HUF 5,624,738,372 excluding VAT.
• The estimated procurement value was HUF 6,427,194,321 excluding VAT.
• The contract covers approximately 4 km of railway infrastructure in Budapest.
• The implementation period is 210 calendar days from work-area handover.
• Five tenders were received, all electronically.
• Price represented 70 points in the award methodology.
• Two additional professional-experience criteria each represented 15 points.
• The procurement involved track, structures, signalling, telecommunications and electrical works.
• Companies pursuing similar projects should monitor MÁV procurement activity and Hungarian railway infrastructure requirements.

Key Takeaways

• MÁV Pályaműködtetési Zártkörűen Működő Részvénytársaság awarded the Kőbánya-Teher to Kőbánya-Kispest railway renewal contract.
• Swietelsky Vasúttechnika Korlátolt Felelősségű Társaság submitted the first-ranked tender.
• The contract was concluded on 18 September 2026.
• The contract value is HUF 5.624 billion excluding VAT.
• The project includes major track, structural, signalling, telecommunications and overhead-line works.
• The procurement attracted five tenders.
• The winning price was approximately 12.5% below the estimated value.
• The project is expected to be completed within 210 calendar days, excluding the specified technical handover and acceptance period.

Conclusion

The award of the Kőbánya-Teher to Kőbánya-Kispest railway renewal contract marks a significant procurement outcome for Hungary's railway construction market. With a contract value of HUF 5.624 billion, the project brings together track renewal, structural rehabilitation, signalling, telecommunications and electrical infrastructure within a single delivery programme.

The participation of five tenderers and the use of both price and professional-experience criteria demonstrate the competitive and technically demanding nature of the procurement. For railway contractors, engineering companies and specialist suppliers, the project provides a useful indicator of the technical capabilities and qualification standards relevant to major Hungarian rail infrastructure opportunities.

As the contract moves into execution, the 210-day delivery requirement will require coordinated management of multiple railway engineering disciplines. The procurement therefore provides an important reference point for businesses tracking Hungary's future railway infrastructure investment and tender opportunities.

Source

TED Notice 679118-2026, OJ S 191/2026, published 2 October 2026. Official result notice for the procurement titled “Kőbánya teher - Kőbánya-Kispest szakasz felújítása”.