|
Warsaw-Kunowice rail link strengthened with EBRD funds
The modernisation of Poland's main rail artery, E-20, is to be partially financed with an ECU 50 million loan from the European Bank for Reconstruction and Development (EBRD) to the Polish state railway company, Polskie Koleje Panstwowe (PKP). The Warsaw-Poznan-Kunowice section is Poland's principal link with the European Union (EU) and is part of the Trans-European Network.
"By financing the modernisation of this particular section, the EBRD is helping to ensure that Poland's principal rail artery reaches the same standard as the rest of the Trans-European network", said Guy de Selliers, Deputy Vice President at the EBRD. "Transport links with the EU are increasingly important as Polish companies seek out new markets for their products. To compete with road transport, PKP must operate an efficient and cost-effective system, which addresses its customers' changing needs."
The Deputy General Director of PKP, Jerzy Zalewski, commented: "The E-20 line is a very important international link, which urgently needs modernising if it's to compete successfully in passenger and freight transport. As the main artery in the country its efficient operation is crucial to PKP's overall success."
The loan is guaranteed by the Republic of Poland and has a 14-year term including a three-year grace period. The proceeds will fund the purchase of track maintenance equipment and detection equipment for faulty wheels plus track switches, as well as the renewal of vital signalling and power supply systems. The overall benefit will be a rail network which provides a competitive and environmentally sound alternative to road transport.
Modernising the E-20 will reduce travelling time between Warsaw and Berlin by 80 minutes and introduce important safety features such as barriers on level-crossings. The programme will also support the development of an appropriate institutional and regulatory framework for the Polish railway system, which is undergoing a restructuring programme.
The total cost of modernising the E-20, which is 478 km in length, is ECU 487 million, of which the Government of Poland and PKP are contributing ECU 207 million. Additional funds are being provided by the European Investment Bank and EC-Phare (ECU 200 million and ECU 30 million respectively). Completion of the modernisation programme is expected by December 1997.
Since its inauguration in April 1991, the EBRD has committed ECU 645 million to projects in Poland, making it the leading foreign investor in the country.
|
