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

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