OREANDA-NEWS. The European Investment Bank (EIB) is lending PLN 3.4bn (EUR 800 million) to Bank Gospodarstwa Krajowego (BGK) for the construction of the Warsaw bypass and an expressway in Western Poland.

Thanks to the EUR 550 million long-term loan several sections of the S5 expressway from the A1 motorway near Grudziadz via Bydgoszcz to Wroclaw will be built. The new expressway sections will have a total length of 162.5 km and run between Nowe Marzy, Bydgoszcz and Mielno, and between Wronczyn and Radomicko.

The EU bank is backing with a further EUR 250 million long-term loan the construction of the 18.6 km southern section of the Warsaw bypass between Pulawska and Lubelska streets. Within this project, the EIB will also support the construction of a new bridge across the River Vistula, which will supplement the strained capacity provided by the eight existing road bridges. These undertakings will facilitate the passage of long-distance traffic around the Polish capital.

Both projects are designed to improve road safety and respect the natural environment, so acoustic screens, wildlife crossings, drainage and runoff treatment will be installed. Due to the scale of the projects, significant temporary employment is expected during the construction period.

L?szl? Baranyay, EIB Vice-President responsible for lending in Poland, said: “EIB funds will help to eliminate bottlenecks and reduce travel time on these expressways by providing additional capacity and contributing to improved travel quality and safety. Ultimately, this will strengthen the economic competitiveness of Poland and increase the quality of life of Polish citizens.”

Dariusz Kacprzyk, BGK President, added: “BGK has provided professional services to the National Road Fund for 11 years now. To date, we have helped to provide a smooth financing for road projects worth nearly PLN 100 billion (approx. EUR 25 billion). Part of the funding comes from foreign partners, such as the EIB with which BGK concluded the total of 29 loan agreements for the National Road Fund, including the today’s ones, with a value of EUR 11.1 billion.” 

The Polish transport sector is the major beneficiary of EIB loans in the country. Since the beginning of EIB activity in Poland in 1990, the EIB’s co-financing of transport projects has accounted for some 40% of its lending commitments in the country over this period. Last year, the EIB provided more than EUR 1.8 billion for the construction of several sections of Polish expressways.

The bank of the European Union has a long-standing relationship with BGK, as well as with the Ministry of Infrastructure and Development and the General Directorate for National Roads and Motorways of Poland (GDDKiA), and partners with these institutions to improve the Polish road and motorway networks. BGK acts as the borrower on behalf of the National Road Fund of the Republic of Poland and GDDKiA is the promoter. The EIB provides high financial value added to the National Road Fund by making available long-term financial resources at a lower funding cost.