Poland: EUR 650 million for the Polish Road Network
- Release date: 25 October 2006
- Reference: 2006-113-EN
The European Investment Bank (EIB) continues to support the upgrading of Poland's transport infrastructure: it is lending EUR 300 million for the extension of the motorway network and EUR 350 million for the modernisation of priority roads, in line with the implementation of the Polish National Road Programme.
The first loan of EUR 300 million, contracted on behalf of the National Road Fund by Bank Gospodarstwa Krajowego (BGK), will finance the extension of the Polish motorway network, focussing on the elimination of key bottlenecks, mostly on the borders with adjacent EU Member States. This will contribute to a smoother and safer traffic flow and better integration of Poland into the EU Single Market. The project covers a 57 km section of the A1 motorway (Maciejow-Sosnica-Gorzyczki), a 51.3 km section of the A4 motorway (Zgorzelec-Krzyzowa) and the rehabilitation of an 8 km section of the A6 motorway (Klucz-Kijewo). All three sections are situated on priority transport axes along trans-European corridors.
This project will be co-financed with grants provided by the EU Cohesion and Structural Funds and the Polish National Road Fund as well as other Polish public sources.
The loan of EUR 350 million will support the rehabilitation and reconstruction of the Polish national road network: upgrading road pavements, bridges and other structures located all over the country. This will enhance the structural capacity of the national road network and improve safety in relation to the increasing traffic demand.
In this case EIB funds will be combined with a loan provided by the World Bank and own resources of the General Directorate for National Roads and Motorways (GDDKiA), the project promoter.
EIB funding will lower the financing cost for the State, increase the investment capacity of the National Road Fund and help to accelerate the implementation of new motorways of prime importance for Poland.
With the signature of these new credit facilities the EIB is confirming its commitment to supporting the Polish Government in addressing key transport bottlenecks on the national road network. EIB funding will lower the financing cost for the State, increase the investment capacity of the National Road Fund and help to accelerate the implementation of new motorways of prime importance for Poland.
Financing projects contributing to the social and economic cohesion in the EU is the key activity of the EIB. As the financing institution of the EU, the EIB frequently co-finances projects supported by grants from the EU Structural and Cohesion Funds. As the whole territory of Poland consists of priority regional development areas, the average annual growth rate of activities has reached 25% in recent years.
Since 1990, the EIB has provided loans in Poland amounting to some EUR 12 billion. Approximately 40% of this amount has involved lending in the transport sector, covering projects such as the construction of the A1 and A2 motorways, the modernisation of the LOT Regional Air Transport Fleet, and the upgrading of municipal transport infrastructure in major Polish cities.