Today, the Commission disbursed €140.1 million to Hungary in grants as part of pre-financing relating to the REPowerEU funds under the Recovery and Resilience Facility (RRF). This second and final tranche of REPowerEU pre-financing comes in addition to the first REPowerEU pre-financing of €779.5 million disbursed to Hungary on 28 December.
These advance payments will help to kick-start the implementation of the crucial investment and reform measures outlined in each REPowerEU chapter. This will accelerate the delivery on the REPowerEU Plan’s objectives to save energy, produce clean energy and diversify energy supplies, with a view to making Europe independent from Russian fossil fuels in light of Russia’s invasion of Ukraine.
No disbursements following a payment request to Hungary can take place as long as the 27 “super-milestones” have not been satisfactorily implemented. Any prefinancing amounts paid to a Member State will be netted from future regular payment requests. In addition, the Commission will recover any pre-financing amounts that might not have been netted against regular payment requests by the end of the RRF lifetime.
Today’s disbursement of pre-financing follows the Council’s approval of Hungary’s revised plan, which includes a REPowerEU chapter, and the signature of a financial agreement.
Pre-financing payments, paid out in either one or two steps, are equivalent to up to 20% of the additional funds requested to finance each country’s REPowerEU chapter.