Poland's highway plans to go ahead

In Poland, the European Investment Bank has committed itself to maintaining its loan agreement for the A1 highway, despite recent problems over the project. The e1.1 billion loan that the EIB had agreed with Autostrada Poludnie for construction of a 180km section of the A1 highway from Strykow to Pyrzowice, will now be placed at the disposal of the Polish highway authorities. To carry out the work, Poland has to raise a further e503 million, which could be obtained from an issue of road bonds. Autostrada Po
May 15, 2012 Read time: 2 mins
In Poland, the 1054 European Investment Bank has committed itself to maintaining its loan agreement for the A1 highway, despite recent problems over the project. The €1.1 billion loan that the EIB had agreed with Autostrada Poludnie for construction of a 180km section of the A1 highway from Strykow to Pyrzowice, will now be placed at the disposal of the Polish highway authorities. To carry out the work, Poland has to raise a further €503 million, which could be obtained from an issue of road bonds. Autostrada Poludnie was in charge of the A1 investment but failed to complete necessary financing as a result of the difficult financial trading conditions and lost its concession. This follows the bitter disagreement between Austrian contractor 2859 Alpine and the General Directorate for National Roads and Motorways (1361 GDDKiA) over another section of the highway, now being dealt with in a legal tussle.

Meanwhile the EIB is providing a loan to 3533 Autostrada Wielkopolska, which is building a 106km section of Poland’s A2 highway from Swiecko to Nowy Tomysl. The EIB is allowing Autostrada Wielkopolska to take €142 million from a loan worth a total of €1 billion. The EIB agreed to extend the deadline to allow environmental issues for the project to be dealt with. This will allow the project to be completed by 2012 as originally planned.

And a new deal has been struck for a 21km section of the A4 highway.

For more information on companies in this article

Related Content

  • Work on Serbia’s Corridor 10 highway is on track
    April 3, 2014
    In Serbia work on the Corridor 10 highway looks set to be completed as planned in 2016. Serbian roads company, Koridori Srbije, says that that the Corridor 10 motorway should be completed by the middle of 2016. The World Bank (WB) mission visited building sites on Corridor 10 and said that considerable progress has been made, with an additional 23% of works having been carried out in the last 18 month period. In 2014 alone, 50km of the route will be completed. Work is being carried out on 238 bridges, out o
    Read More
  • Key French highway upgrade deal for consortium
    March 5, 2012
    The French Government has agreed a highway contract with consortium Atlandes for a section of the A63 autoroute in southwest France.
    Read More
  • Kenya develops annuity road funding model
    May 8, 2015
    Kenya is introducing novel methods for funding its necessary road infrastructure development - Shem Oirere writes. Kenya has unveiled a new financing model for road construction and reviewed its design standards and construction methodologies, which forms part of a new strategy for the East African country. Under this new plan Kenya is planning to upgrade 10,000km of road, with these links featuring asphalt surfacing; the work being carried out over the next five years at a cost of US$2.8 billion. Despite t
    Read More
  • Albanian road investment
    May 15, 2012
    The European Bank for Reconstruction and Development (EBRD) is providing major funding in Albania’s road network. A loan worth €53 million will help pay for the construction of the new Fier and Vlore bypasses. This loan will aid further development of the Albanian road network and boosting economic integration in the country by co-financing the construction of the two bypass roads, located in south-western Albania. The EBRD loan is structured in two tranches and will be used by the Albanian Road Authority t
    Read More

Highlighted Content