Gdansk Transport Company still seeks loan guarantees

Gdansk Transport Company (GTC), the concession holder for the construction of the A-1 highway which was to start work in 2003, cannot reach agreement with the government over loan guarantees. The cost of constructing the 91-kilometer section of the A-1 highway from Gdansk to Nowe Marzy is estimated at $517 million of which the concession holder's own capital will account for no more than 20%. Despite the fact that GTC prepared a provisional version of the agreement with officials in August 2002, the State has yet to accept it. Unofficial sources claim that the State is afraid of giving 100% guarantees for loans to be taken by GTC, which would be about zl. 1.5 billion. The Ministry is also skeptical of plans to introduce road tolls and to transform the National Roads and Highways Authority (GDDKiA) into a company collecting money and paying off the concession holders. This would minimize the risk for such companies as they would have a secure inflow of revenues. Even though the government would not have to start paying off the loans for the highways until as late as in 2006, the guarantees would have to be included in the 2003 budget. (Puls Biznesu, pp. 1, 5) M.M.