Hungary to review MOHU 35-year waste management concession

The Hungarian government is set to begin serious negotiations to review the 35-year waste management concession held by MOHU (MOL Hulladékgazdálkodási Zrt.). László Gajdos, the Minister responsible for the living environment, announced on social media that the government intends to be a ‘tough partner’ to ensure national interests and high-quality service for the population.

The review follows a June request for a detailed report from MOHU regarding investments, the use of public funds, and overall performance. MOHU, which is owned by Mol, currently holds a monopoly in the waste processing industry. The company has faced significant financial challenges, reporting losses of approximately 200 billion forints, with substantial losses continuing through 2024 and 2025. Current financial data suggests that increased recycling efforts have contributed to these losses, as material costs have outpaced revenue growth. The government is also examining other industrial concessions as part of this broader review.