EIB supports modernisation of Polish railways with EUR 235m loan
The European Investment Bank (EIB) is lending EUR 235 million to PKP Polskie Linie Kolejowe S.A. (PLK) for the upgrading of 92.5 km of an existing electrified railway line from Warsaw to Radom. This is a continuation of the EIB’s successful cooperation with PLK. Including the current operation, the Bank has provided nine loans to PLK totalling EUR 1.65 billion to finance railway modernisation projects across Poland.
Thanks to the EIB loan, a number of improvements will be introduced on this section, such as the construction of a second track between Warka and Radom, upgrading of the existing power supply and replacement of the signalling and telecommunications systems. The modernised line will allow for the introduction of trains running at a maximum speed of 160 km/h for passenger trains and 120 km/h for freight trains. Furthermore, additional environmental mitigation measures will be implemented (e.g. noise barriers, better drainage, animal crossings), which will reduce existing negative impacts during operation. The safety of the line will also increase, as 50 level crossings will be improved. These modernisation works are due to begin this year and are expected to be completed by the end of 2017.
“The EIB strongly promotes sustainable transport solutions. We therefore particularly welcome this agreement with PLK, because the project will result in a better quality of rail services, as well as help to reduce vehicle operating costs and journey times. This should encourage the shift from other modes of transport in the densely populated Mazovian region”, said EIB President Werner Hoyer.
The Bank’s support provides high financial value added to PLK by making available long-term financial resources at a lower funding cost.
“The EIB loan is supporting our growing investment programme, which will raise up to PLN 5.5 billion this year and PLN 9 billion in 2014. PLK uses funds from every available source to upgrade the condition of Polish rail tracks and improve the role of railways in the country’s transportation system. Our cooperation with the EIB also emphasizes the standing of PLK as a reliable business partner” added Remigiusz Paszkiewicz, President of PLK.