S19 EXPRESSWAY BIALYSTOK CHLEBCZYN

The project concerns the construction of two non-continuous sections of the S19 expressway in the Podlaskie Voivodeship, namely the 32.0 km northern Bialystok bypass and the 68.7 km section between Deniski and Chlebczyn, for a total length of 100.7 km.

The project design foresees construction of a "greenfield", primarily 2x2 lane expressway, mostly along a new alignment. The project scope also includes constructing 10 grade separated interchanges, advanced drainage systems, noise protection screens, large animal crossings, connections to local and service roads, four expressway service areas and two expressway maintenance centres. The project must comply with the requirements of the Directive 2008/96/EC on road safety as amended by Directive (EU) 2019/1936 on road infrastructure safety management. The Bank's services will verify during the project's due diligence the availability of the Road Safety Impact Assessment and of Road Safety Audits.

The project concerns the construction of two non-continuous sections of the S19 expressway in the Podlaskie Voivodeship: the 32.0 km northern Bia?ystok bypass and the 68.7 km section between Bia?ystok and Chlebczyn, for a total length of 100.7 km. The S19 expressway is part of the Extended Core Network in eastern Poland and forms a key link in the Baltic Sea ? Black Sea ? Aegean Sea European Transport Corridor.

The project contributes to improved efficiency of the TEN-T road network in Poland, enhancing accessibility and market integration. It is expected to reduce safety-related negative externalities by diverting heavy and transit traffic from agglomerations crossed by national and local roads, thereby ensuring safer conditions for drivers, pedestrians, and cyclists, and contributing to better living conditions in the cities.

Additionally, the project will improve regional accessibility by adapting technical and operational parameters to forecast traffic levels, removing bottlenecks, and completing missing elements of an efficient road infrastructure. The project will include preparatory works for the future installation of electric vehicle (EV) charging stations, thereby supporting the transition to sustainable mobility.

The EIB impacts investment activity by providing financial support complementary to national financing. The terms of the EIB loan?particularly its long tenor (up to 30 years), flexible disbursement conditions, and advantageous financial terms?will substantially increase the Promoter's financial flexibility and investment capacity, facilitating timely completion of the project on favourable terms.

The project falls under Annex I of the Environmental Impact Assessment (EIA) Directive 2011/92/EU as amended by Directive 2014/52/EU and is therefore subject to an EIA procedure. Based on the conclusions from the EIA studies, the Competent Authorities have issued four Environmental Decisions for the project sections. Following the design stage, nine second stage supplemental EIA (SEIA) studies were undertaken to apply for a construction permit (ZRID). To date six construction permits have been granted, and three are expected in 2026. According to a preliminary analysis, the project alignment directly intersects with five Natura 2000 sites: PLH200006 Ostoja Knyszynska, PLB200003 Puszcza Knyszynska, PLH200015 Murawy w Hackach, PLB140001 Dolina Dolnego Bugu and PLH140011 Ostoja Nadbuzanska. It also runs nearby several other Natura 2000 sites within a 5 km radius. The alignment with the requirements of the Birds Directive 2009/147/EC and Habitats Directive 92/43/EEC will be verified in more detail during the appraisal. The project is expected to contribute to climate action and environmental sustainability (CA&ES) objectives, in particular to climate adaptation. Potential climate risks, the scope and adequacy of the applied adaptation measures for ensuring long-term resilience of the new road, and impact of the project implementation on the greenhouse gas (GHG) emissions will be further assessed during the appraisal.

The project was procured through eight works contracts: four were awarded to Polish firms, three to Austrian firms (two of which via a Polish subsidiary), and one to a Turkish firm. The Bank during the appraisal will review if the Promoter has procured contracts for implementation of the project in accordance with the applicable EU procurement legislation, Directive 2014/24/EU as well as Directive 89/665/EEC as interpreted by the Court of Justice of the EU, with publication of tender notices in the EU Official Journal, as and where required.