Poland: EIB supports construction of expressways in Poland with EUR 490m loan

The European Investment Bank (EIB) is lending EUR 490 million to Bank Gospodarstwa Krajowego (BGK) for the construction of new sections of the S8, S12 and S17 expressways in central Poland.

Thanks to the EIB loan, two separate sections of the S8 adjacent to the Warsaw ring road will be built, namely a 22 km dual two lane stretch from Radziejowice and a 15 km dual three lane stretch from Marki. This project aims to ease the flow of long-distance traffic around the Polish capital. The construction of almost 108 km of the S17 and S12 expressways from Warsaw through Kurów to Puławy is also receiving EIB financing. The design of both projects will not only improve road safety but will also be environmentally friendly due to the installation of acoustic screens, wildlife crossings, drainage and runoff treatment.

László Baranyay, EIB Vice-President responsible for lending in Poland, said: “EIB funds will help to eliminate bottlenecks and reduce travel time on these expressways to Warsaw by providing additional capacity and contributing to improved travel quality and safety. Ultimately, this will strengthen the economic competitiveness of Poland and increase the quality of life of Polish citizens.”

Dariusz Kacprzyk, BGK President, added: “EIB loans are a significant source of funding for Polish motorways, next to bond issues and EU funds. So far, BGK has, together with the EIB, managed to provide financial resources for the construction of 808 km of highways and 932 km of expressways all over Poland.” 

The Polish transport sector is the major beneficiary of EIB loans in the country. Since 1990 the EIB’s co-financing of transport projects has accounted for some 40% of its lending commitments in Poland over this period. Including this operation, the EIB has already provided in 2014 some EUR 2bn for Polish road and rail investments, with the construction of the S3 and S5 expressways receiving EUR 1bn worth of support early this year.

The bank of the European Union has a long-standing relationship with BGK, which is the borrower on behalf of the National Road Fund of the Republic of Poland, as well as with the General Directorate for National Roads and Motorways of Poland (GDDKiA), which is the promoter of the project. The EIB provides high financial value added to the National Road Fund by making available long-term financial resources at a lower funding cost.