Hungary's MVM, Matrai to build 400 MW power unit

BUDAPEST, Sept 30 (Reuters) - Hungarian power wholesaler MVM and the Matrai Eromu power plant unit of Germany's RWE(RWEG.DE) will build a joint 400 megawatt power-generating block for 200 billion forints ($1.18 billion), the companies said on Tuesday.

Officials told reporters after signing the agreement on the joint project that the construction of the lignite-fuelled block would be completed by 2015, the national news agency MTI said.

State-owned MVM owns 74.9 percent of the project company and Matrai which has a power-producing capacity of 836 megawatts holds a 25.1 percent stake.

(Reporting by Sandor Peto; editing by Michael Roddy)