Poland: EIB supports upgrade of railways with EUR 186m loan

The European Investment Bank (EIB) is lending PLN 800 million (EUR 186 million) to Polish railway operator PKP Intercity for the renewal and expansion of its existing fleet by 2015. The Bank has now supported rail investments in Poland for 23 years, promoting the improvement of both infrastructure and rolling stock.

Thanks to this EIB loan, PKP Intercity will boost its investment programme which consists in particular of:

• acquisition of 20 Electrical Multiple Unit trains (EMU) running with a maximum speed of 160 km/h and to be used on routes linking major cities in Poland;
• modernisation of 218 passenger coaches for use on the north-west to south-east service between Szczecin and Przemyśl;
• purchase of 25 passenger coaches for use between Wrocław and Gdynia with a maximum operating speed of more than 160 km/h;
• acquisition of 10 diesel mainline locomotives with a maximum speed of up to 140 km/h;
• modernisation of 20 diesel shunting locomotives for use across Poland with a maximum speed of at least 90 km/h.

The new and modernised rolling stock will run at faster speeds and thereby reduce journey times. It will also ensure higher levels of passenger safety and comfort as well as easier access, particularly for people with reduced mobility.

László Baranyay, EIB Vice-President responsible for lending in Poland, said: “The EIB strongly promotes sustainable and environmentally friendly transport solutions. We therefore particularly welcome the agreement with PKP Intercity, because this investment will result in a better quality of long-distance passenger rail services in Poland. This should encourage the shift from other modes of transport to rail and thus potentially generate significant energy savings and reductions of harmful emissions”.

“The cooperation with the European Investment Bank enables PKP Intercity to implement a broad investment plan, thanks to which by the end of 2015 the company will replace or modernise 70% of its rolling stock. The loan agreement signed today is closing the process of financing investments carried out in the EU’s 2007-2013 financial framework. We are pleased that for the European institutions we are a credible and reliable partner”, said Paweł Hordyński, Member of the Management Board and Chief Financial Officer of PKP Intercity.

This is a continuation of the EIB’s successful cooperation with PKP Intercity. Including the current operation, the Bank has provided three loans totalling some 578 EUR million to finance the upgrading of the company’s fleet. The EIB’s support provides high financial value added to PKP Intercity by making available long-term funds at favourable rates.