EIB aids funding for Poland's A2
First publishedon www.WorldHighways.com
The European Investment Bank (EIB) will help funding of the A2 highway project in Poland, which has faced financing problems due to the economic crisis.
The EIB is making an exception to its usual policy by granting to Polish company Autostrada Wielkopolska credit that covers over 50% of the costs of the construction work for a highway section. The EIB will provide €1 billion for the A2 investment and to create an option of an additional €200 million. The total value of the investment, which is expected to be completed in early 2012, is estimated to exceed €1.3 billion. Construction works are to be carried out by Strabag.
Funding has also been secured for construction work on two sections of the ring road around the Polish capital Warsaw, with the EIB supplying a €565 million loan that will cover nearly 50% of the €1.13 billion investment costs required. The rest of the financing will be provided from the National Road Fund (KFD) and from EU structural funds.
This deal is of note as Poland's highway projects have struggled to find funding in recent months following the banking crisis. The new ring road will reduce current congestion problems in Warsaw and improve transport links between Warsaw and other parts of the country.
The country's General Directorate for National Roads and Motorways (GDDKiA) plans to invest €449 million on repairs and upgrades to dual carriageways during 2009, twice as much as was budgeted last year, but still not sufficient to significantly improve road conditions in Poland. It is estimated that to repair all roads, GDDKiA would have to spend over four times as much.
The authorities in the southern Polish city of Krakow are proposing a private public partnership (PPP) to pay for the third ring road around the city, which has an estimated cost of €892.5 million, while there are estimates that by 2013, Poland's six biggest cities will invest €3.96 billion in upgrading roads and communications networks, in order to cope with increasing traffic congestion. The largest amount allocated is in Warsaw, with a substantial portion being put towards the construction of the Northern Bridge, which is already underway.