Poland: EIB supports with EUR 800 million for extensions of motorways on priority transport corridors

The European Investment Bank (EIB) lends EUR 800 million for the construction of the following two sections of Polish motorways:

• 36 km of A1 Motorway between Pyrzowice and Maciejów, close to Katowice, and
• 135 km of A4 Motorway linking Szarów, close to Kraków, and Rzeszów, on the border with Ukraine and 5 km of S19 to access Rzeszow.

Both A1 and A4 Motorways are parts of the Priority Trans European Network (TEN T) Corridors representing crucial transport axes utilised for transport of some 80% of passengers and goods in the Union. The A1 Motorway links the Baltic Sea across Poland to the Czech Republic and Slovakia to Austria. It will provide a modern transit connection between Gdańsk and Vienna via Katowice and Brno. The A4 Motorway, is designed to traverse southern Poland from Germany to the Ukraine, by-passing from West to East the major Polish towns of Wrocław, Opole, Gliwice, Katowice and Kraków through the industrial region of Silesia.

The envisaged extension of these motorways will increase the capacity and safety of the Polish transport infrastructure with positive impacts on the environment in terms of lower fuel consumption and time savings due to a more rapid and fluid transport flow. Both motorway sections are included in the project list of the National Major Projects of the Operational Programme “Environment and Infrastructure 2007-2013” to be co-financed by the EU Cohesion Funds.

Bank Gospodarstwa Krajowego (BGK), on behalf of the National Road Fund of the Republic of Poland, is the borrower and the General Directorate for National Roads and Motorways (GDDKiA) of Poland is the promoter of the project.

The Polish transport sector is the major beneficiary of EIB loans in the country. Since 1990 the EIB co-financing of transport projects reached some EUR 12.5 billion, including the current loan, or some 40% of the EIB lending commitments in Poland over this period. The Bank has so far financially supported various projects related to the construction of new motorway sections of the A1, A2, A4 and A6 Motorways and major national roads along the Pan-European Corridors II, III and VI.

Background

The EIB is the long-term lending bank of the European Union. Its main task is to contribute towards the integration, balanced development and economic and social cohesion of the EU Member States. Besides supporting projects in the EU Member States, its lending activities also include financing investments in future Member States of the EU and EU partner countries.

The EIB raises substantial volumes of funds on the capital markets, which it lends on favourable terms to projects furthering EU policy objectives. It is the largest supranational borrower and its consistent AAA rating is underpinned by firm shareholder support, a strong capital base, excellent asset quality, conservative risk management and a sound funding strategy.