POLAND ROAD MODERNISATION

Upgrading investments on motorways, expressways and bypasses under the National Road Program 2005/2006.

The project will contribute to increasing efficiency of road transport in Poland at a time when the existing road network has been severely strained by high growth in vehicle ownership and traffic. It will improve travel times, vehicle operating costs and safety conditions, as well as benefit the urban environment.

In the course of appraisal, the Bank will analyse the compliance with the EU Strategic Environmental Assessment (SEA) directive no 2001/42/EC for the entire Road Investment Programme. It is expected that some of the individual schemes will require preparation of full EIA with public consultation under the requirements of either Annex I or Annex II of the EU Directive 97/11/EC on environmental impact assessment (EIA). The Bank will analyse this process during the appraisal, in particular the screening by the competent environmental authority of whether or not the EIA is required. This will include assessment of impact on potential Natura 2000 sites if relevant and compliance with the Habitats and Birds Directives (including receipt of Forms A/B).

The Polish Public Procurement Law adopted on 29 January 2004 (entered into force on 2 March 2004) is in large extent in accordance with EU Directives. Further modifications are under preparation to ensure full compliance with the provisions of two recent EU Directives (from March 31, 2004) to be introduced around mid 2005.

Procurement arrangements will be assessed during appraisal with particular attention given to recent problems with application of the new rules.