PLK E75 RAIL BALTICA SADOWNE - BIALYSTOK

The project concerns the second phase of the modernisation of the North Sea - Baltic railway core TEN-T corridor in Poland. In particular, modernisation of some 107 km of double-track railway line (section Sadowne - Bialystok) and installation of the European train control system (ETCS) on the 165 km Warsaw - Bialystok section.

The project will increase the quality of rail services provided in Poland as well as promote travel by rail and will thereby enhance sustainable transport, in line with EU objectives. Most of the project is located in a convergence region, and will improve accessibility and potentially facilitate regional development. The project is expected to generate substantial time and vehicle operating-cost savings by allowing for more efficient use of existing rail capacity as well as promoting modal shift from road to rail through facilitating better rail services. It may also present environmental and safety benefits due to modal shift.

The Project is part of a multi-phase railway modernisation between the Sadowne - Bialystok in Poland and concerns the upgrade and construction of approximately 107 km of railway line. It is located in a cohesion region along the North Sea - Baltic Core TEN-T Corridor and helps to fulfil a wide range of EU public policy goals, and has thus received EU CEF grants, which the Bank financing 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 has been subject to an environmental impact assessment (EIA). The EIA and development consents are to be reviewed during appraisal. The project's potential impact on protected areas and species, in accordance with the Habitats Directive (92/43/EEC) and Birds Directive (2009/147/EC), is to be appraised further.

The Bank will require the promoter to ensure that contracts for the implementation of the project have been/shall be tendered in accordance with the relevant applicable EU procurement legislation (Directives 2004/18/EC, or 2014/24/EU where applicable, and/or 2004/17/EC, or 2014/25/EU where applicable, and/or 2014/23/EU where applicable, as well as Directives 89/665/EEC and 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.