On the occasion of the European Investment Bank's 10th annual Forum in Warsaw, the EIB has signed or agreed on loans for investment projects in Poland totalling EUR 760 million.
The loans provide funds for co-financing priority projects with EU funds in the areas of science and innovation (EUR 250 million); municipal infrastructure projects in Katowice (EUR 50 million;) and Bydgoszcz (EUR 35 million) as well as two global loans to Bank BPH (EUR 100 million) and Dexia KK Polska (EUR 25 million). With the Polish Railways (PKP), the EIB will sign a Memorandum of Understanding on a new loan of EUR 300 million in 2004.
This new lending brings the total amount of EIB loans granted in Poland so far to EUR 8.2 billion. EIB loans in Poland account for one third of loans provided by the Bank in Central and Eastern Europe to date.
These loans will help to boost investment in research and development, extend and upgrade transport and municipal infrastructure and contribute to the achievement of EU environmental standards. EIB co-financing will assist the implementation of priority projects backed by EU funds and support the realisation of the Polish National Development Plan.
Science and Innovation Framework Loan of EUR 250 million
This will serve to support R&D projects in line with the strategic objectives of the Polish National Development Plan. (See press release nr. 2004 - 97 dated 14/10/2004 )
Municipal infrastructure projects in Katowice (EUR 50 million loan) and Bydgoszcz (EUR 35 million loan)
The loans will be used to fund municipal infrastructure projects in the fields of environmental protection, transport, health and education, and urban renewal. The projects fit with the two Cities' development plans that focus on improving the citizens' quality of life and increasing the attractiveness for inventors. The loans provide the cities with funds required to co-finance projects implemented with the help of Structural Funds.
Projects in Katowice include the renewal of the city centre. The current loan is the second to the City of Katowice following a EUR 20million project signed in 1997, which supported municipal investment in environmental and transport infrastructure.
Projects in Bydgoszcz include the improvement of the transport network and sport facilities for primary school pupils.
Global Loans: Bank BPH (EUR 100 million loan) and Kommunalkredit (EUR 25 million loan)
These two global loans serve to finance small and medium-scale projects promoted by SMEs as well as local governments in Poland. The loans will finance projects in the fields of environmental protection, rational use of energy, infrastructure, industry, development of education and health care facilities services and tourism.
Global Loans are credit lines to selected partner-banks that on-lend the funds for financing small and medium-size projects with a total investment higher than EUR 40 000 and less than EUR 25 million. The EIB partner-banks assess each project, assume the credit risk and set the loan conditions for the final beneficiary.
Since 1990, the EIB has provided global loan facilities for a combined amount exceeding EUR 1.1 billion million to 12 partner banks in Poland. The present Global Loan is the forth one granted to Bank BPH and the first one signed with Kommunalkredit for financing of projects in Poland .
Memorandum of Understanding on lending of EUR 300 million to co-finance upgrading of main railway lines in Poland
On 15 October, the EIB and Polish Railways PKP will sign a Memorandum of Understanding on the granting of a EUR 300 million loan. This will serve to co-finance a number of priority sub-projects selected for EU grant financing in the period 2004 - 2008. The majority of railway lines to be up-graded are located on the Trans-European Corridors: E20 (transport corridor II connecting Berlin-Warsaw-Brest), E30 (transport corridor III linking Wroclaw-Katowice-Krakow with the German border in the West and Ukraine border in the East), E65 (transport corridor VI connecting the Czech/Slovak border with Gdansk via Katowice and Warsaw) and E65 (Warsaw-Lodz).
The upgrading of these corridors will contribute to ensuring the better integration of Poland into the EU Single Market, greater transport safety and enhanced transport capacity. The EIB funds will help to modernise over 700 km of railway lines and increase the line speed to 160 km/h. The investment projects include the upgrading of the signalling system and rehabilitation of level crossings, with the consequent improvement of transport safety.