The funding will cover almost all of the cost of preparations, with the city of Pécs contributing HUF 100m.
The signing of the state support agreement represents a milestone in the preparations for the European Capital of Culture programme, parliamentary speaker Katalin Szili said at the signing ceremony.
The contract was signed by Minster of Education and Culture István Hiller, government commissioner for development Gordon Bajnai and deputy Mayor of Pécs Márta Kunszt.
Hiller said the project would represent the largest cultural investment in the city since 1989. There is much at stake and success depends on the cooperation between Pécs and the region, the government and the other two cities who will share the title European Capital of Culture in 2010: Essen and Istanbul, he added.
The funding contract specifies the planned schedule and costs for preparations to be carried out between September 2006 and May 2008. Preparations include organising international tenders for a Regional Knowledge Centre, the Pécs Conference and Concert Centre and the Great Expo, the purchasing of winning bids, and the preparation of licensing plans under the arrangement of public procurement with invited participants. Also included is the preparation of updates for a study of the Zsolnay Cultural Quarter and, on the basis of this, the preparation of licensing plans. Tenders will also be invited for a key project aiming at the revival of public spaces and parks. All tender documents for these main projects must be prepared by May 2008.
The programme aims to create a cultural infrastructure unique in Hungary complete with internationally competitive tourism attractions.