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Budapest’s public transport operator BKK has confirmed that European Union funding from the Recovery and Resilience Facility (RRF) now covers 45 of the 51 new CAF trams planned for the capital. The non-repayable grant of €117 million (HUF 42.863 billion) shifts a significant portion of costs originally allocated under Hungary’s Integrated Operational Programme for Transport Development Plus (IKOP Plusz) to RRF sources, ensuring the largest single tram purchase in recent history for Budapest moves forward.
The 45 CAF Urbos trams will gradually replace vehicles that have exceeded their designed service life and are technically obsolete. According to BKK officials, the new fleet will dramatically improve accessibility, comfort, and energy efficiency across the city’s surface network. “This is a generational leap for Budapest’s tram system,” said a BKK spokesperson in a January 2025 briefing. “The RRF funding allows us to accelerate the phase-out of aging stock while meeting EU green mobility targets.”
Each tram is a full-length low-floor design, a critical feature for passengers with reduced mobility, elderly riders, and those with pushchairs. The interior is laid out as a continuous open space, and all vehicles are equipped with air-conditioning systems and onboard CCTV cameras for enhanced comfort and security. From an energy standpoint, the trams use regenerative braking technology that feeds energy back into the power grid whenever the network permits, reducing overall electricity consumption per kilometer.
CAF, the Spanish rolling stock manufacturer, has already delivered similar Urbos models to cities including Bilbao, Seville, and most recently to the U.S. market for the Maryland Transit Administration’s Purple Line light-rail project. This global experience positions the Budapest order as part of a broader production pipeline that CAF officials say remains on track for deliveries beginning in late 2025 and continuing through 2026.
The project also includes ancillary works such as depot upgrades and driver training, ensuring the new vehicles can be integrated smoothly into Budapest’s 29 tram lines, which carry over 800,000 passengers daily. “The low-floor trams will reduce boarding times and improve reliability, especially at busy stops,” noted transport analyst Gábor Hegyi of the Hungarian Institute for Transport Research. “Combined with the RRF’s built-in monitoring requirements, this purchase is likely to meet both EU climate goals and local service standards.”
Budapest’s tram fleet currently comprises around 600 vehicles, many of which date from the Soviet era or the early 1990s. The CAF order will retire some of the oldest types, including the high-floor Tatra T5C5s still found on routes 1 and 17. The new trams have a long-term maintenance agreement with CAF for spare parts and technical support, a provision that BKK says will keep the fleet operational for at least 30 years.
Environmental advocates have welcomed the move. “Replacing diesel-alternative rolling stock with electric trams that regenerate energy aligns with Budapest’s 2050 carbon neutrality pledge,” said Zsófia Kovács, campaign director at Clean Transport Hungary. “Each new tram can cut lifecycle emissions by up to 40% compared to the vehicles they replace, even when accounting for manufacturing and disposal.”
Beyond the 45 RRF-funded trams, BKK is actively seeking alternative financing for the remaining six units. The original 51-tram plan, announced in 2023, envisioned a mix of national and EU budgets. With RRF covering the bulk, the Hungarian government is expected to allocate the remainder through the 2025 supplementary budget. No timeline has been set for the purchase of the sixth tram, but BKK insists the core modernisation of the fleet will proceed as planned.
The European Commission has approved the RRF allocation for Hungary’s sustainable urban mobility component, which includes the Budapest tram project. This component is part of Hungary’s overall RRF plan, which focuses on green transition investments. As of December 2024, Hungary had received approximately 40% of its €10.4 billion RRF allocation, with the remaining funds tied to judicial and anti-corruption milestones. The tram grant falls under the “green transport” category and is considered milestone-independent, ensuring stable disbursement.
For commuters, the most visible change will begin next year when the first CAF tram enters revenue service. BKK plans to run a serial test on Route 4-6, Budapest’s busiest tram corridor, before expanding to other lines. If successful, the new trams could boost ridership by 5–10%, according to internal BKK estimates, as travelers choose the modern, comfortable vehicles over alternative modes.
Industry observers note that the Budapest order reinforces CAF’s foothold in Central and Eastern Europe, a region where the company competes with Stadler, Alstom, and Škoda. CAF’s Hungarian subsidiary, established in 2019, provides local engineering support and creates about 200 direct jobs in component sourcing. “This isn’t just a purchase; it’s a partnership that builds local capabilities,” said CAF project manager Elena Ruiz. “We are already training Hungarian technicians at our factory in Zaragoza.”
As Budapest buses and metro lines also undergo separate upgrades, the tram fleet renewal stands out as the most capital-intensive single investment. With EU backing now locked in for 45 trams, the city is on track to have one of the most modern tram networks in Europe within three years.
