20 September 2022
Promoter – Financial Intermediary
PKP POLSKIE LINIE KOLEJOWE SA
Modernisation of a key section of the railway line from Bedzin through Katowice to the border between the Czech Republic and Slovakia (E65 LOT A, A1, B and D).
Additionality and Impact
The Project is part of a multi-phase railway modernisation between the Bedzin - Katowice - Zebrzydowice - CZ state border in Poland and concerns the upgrade and construction of approximately 230 km of railway track. It is located in a cohesion region along the Baltic - Adriatic and North Sea - Baltic Core TEN-T Corridor and helps to fulfil a wide range of EU public policy goals, and is thus expected to receives EU CEF grants, which the Bank financing will complement.
The Project supports the shift of passenger and freight traffic to rail and addresses market failures by minimising a number of transport externalities, such the harm to humans in terms of accidents and loss of life, or environmental externalities like noise, pollution and CO2 emissions.
The Project generates good economic and good social benefits, e.g. by reducing travel times and by offering better access for persons with reduced mobility. The project will bring benefits to passengers and ensures sustainable transportation of freight.
The terms and conditions of the EIB loan, notably in terms of long tenor (up to 30 years), flexible terms of drawdowns adjusted to the needs of the Project and advantageous financial terms will increase the financial flexibility and investment capacity of PLK and will be complementary to EU grants. The Bank's contribution will therefore facilitate the completion of the Project on favourable terms and in a timely manner.
The project is part of a multi-phased modernisation of the railway line from Bedzin through Katowice to the Polish/Czech border. The project is expected to increase the quality of rail services provided in Poland, as well as promote travel by rail and should, thereby, enhance sustainable transport in line with EU objectives. The project is located in a convergence zone (Slaskie Region (NUTS PL22)) and promotes regional development by facilitating access.
Proposed EIB finance (Approximate amount)
EUR 600 million
Total cost (Approximate amount)
EUR 2400 million
The project has been subject to an Environmental Impact Assessment (EIA) in accordance with the Directive 2011/92/EU. The EIA and the development consents are to be reviewed during appraisal. The project's potential impacts on protected areas and species, in accordance with the Habitats Directive (92/43/EEC) and Birds Directive (2009/147/EC), are to be appraised further.
The Bank will require the promoter to ensure that contracts for the implementation of the project have been/will be tendered in accordance with the relevant applicable EU procurement legislation: Directive 2014/25/EU, as well as Directive 92/13/EEC as interpreted by the Court of Justice of the EU, with publication of tender notices in the Official Journal of the EU, as and where required.
Signed - 23/12/2022