Grand plans

The Infrastructure and Environment Operational Program will consume 37 percent of all funds from the EU budget granted to Poland for 2007-2013, which is almost EUR 21.3 (zł.82.7) billion. Out of this amount EUR 18.9 (zł.73.4) billion will come from the Cohesion Funds and EUR 2.34 (zł.9) billion from the European Fund for Regional Development. An additional EUR 3.75 (zł.14.5) billion will be provided from Poland's own budget.

At just under 200 pages, the document was produced for the Ministry of Regional Development by experts from the Economy, Transport, Environment and Health Ministries. Now it will be subject to social consultations and, according to the schedule, a final version should be ready in September. Then the document, after first being accepted by the Cabinet, will be sent to the European Commission. "The program was to be passed for consultancy in May. However, since April 7 none of the planned working meetings have taken place. Considering that July and August is the 'holiday season', further delays are feasible," fears Artur Bartoszewicz, an expert on EU finds with PKPP Lewiatan. "With the possible coalition changes, reshuffles might occur also in the Ministry of Regional Development. If that is the case, we can forget about the program being launched on time."

Increased attraction
The program's official aim is to "increase the investment attractiveness of Poland and its regions through the development of technical infrastructure and the simultaneous protection and improvement of the environment and society's health, the preservation of cultural entity and development of territorial cohesion." Money from it will be spent on sectors such as water, sewage and waste management, flood prevention measures, protection of nature, trans-European transport networks (TEN-T), environmentally friendly transport, energy security, culture and cultural heritage and medical rescue infrastructure.

"Initially, the environment was to be a part of a separate program but it was incorporated into the infrastructure program and now we have a mishmash," said Bartoszewicz. "The problem is that the program lacks one specific goal. We also don't know which institutions will implement the plans."

Trans-Europe express
Provided the program is implemented efficiently and on time, it could be a great chance for Poland's ailing infrastructure, especially considering the bulk of the EUR 21.3 (zł.82.7) billion is designated for transport. Out of the EUR 7.4 (zł.28.7) billion that will be injected into the TEN-T networks, 65 percent will be spent on trunk roads, 30 percent on motorways and five percent on airports. Within the TEN-T scheme, 605km of the A1, A4 and A18 motorways will be built, plus 1,300km of highways between major cities, ring roads and trunk roads.

It is expected that within the entire program some 1,900km of road will be built in the country. Another EUR 1 (zł.3.88) billion is designated for road infrastructure in the eastern part of Poland. Two trunk roads will be constructed, joining Białystok and Lublin, the two biggest towns in eastern Poland, with Warsaw. According to the schedule, 290km of road will be completed by 2013.

Among the projects that the General Directorate of National Roads and Motorways (GDDKiA) has put forward to be financed are three sections of the A1 motorway (Grudziądz-Łódź, Pyrzowice-Katowice, Rybnik-the Czech border), and a section of the A4 from Kraków to Rzeszów. According to a spokesman for GDDKiA, Andrzej Maciejewski, a number of problems with the Public Procurement Law, Environment Protection Law and spatial development are inhibiting development. "An improvement in legal regulations is necessary. We have already sent suggested amendments to the Ministry of Transport and Construction," says Maciejewski. He also points out that the funds are designated only for construction. "However, before construction starts, we have to prepare the documentation and sites and this also takes time and money."

Some R400 million (zł.1.5 billion) from the EU budget will be spent on the expansion and modernization of eight airports in Poland belonging to the TEN-T network.

"Transport does burden the program, but the needs are significant. We have to make choices. Actual needs are in fact much bigger but it does not mean that we are able to satisfy them all. A plan is being written down, but it is not known whether land will be provided or if administrative barriers will hamper investments. We don't actually know whether completing these road sections is feasible. Besides, the structure of the program is such that it might be difficult to manage and coordinate the financing mechanisms," complains Bartoszewicz.

Too few projects
The second biggest portion of money, i.e. EUR 5.9 (zł.22.8) billion, will be spent on "environmentally friendly transport." Of this some EUR 4 (zł.15.5) billion will be given to Polish Railways (PKP). More than half of this will be spent on railways on the TEN-T network. However, experts fear that PKP might not be able to prepare enough projects to use the grant. So far PKP has only used one percent of the available EU funds for rail infrastructure.

High-speed trains
"PKP Group has already prepared projects for 2007-2013 costing EUR 6.8 (zł.26.4) billion, so there is no risk that a single euro will be wasted," says the president of PKP, Andrzej Wach. "Most of this amount will be spent on rail modernization, so that the trains using them can achieve speeds of at least 160km per hour (kph). All traffic on the line from Rzepin to Terespol [west to east] will move at 200kph. The north-south line, from Gdynia to Zwardoń, will allow for speeds of 160 to 250kph. Here, we are also talking about the so-called Y line, which will join the cities of Wrocław, Poznań, Łódź, and Warsaw at speeds of 250-300kph. "EU funds will also be spent on the purchase of new carriages and wagons for the regional railways. For EUR 400 million (zł.1.5billion) we can buy about 150-200 new trains," he adds.

"I am not that sure that [PKP] have ready and well-prepared projects, these are more like slogans," says Bartoszewicz. He believes that PKP can only be financed by the EU if it is restructured. "Otherwise the money is at risk.

"The money from the EU is never spent on restructuring PKP. The money is for specific investment projects and is only paid after the investment is completed. Polish Railways has been the beneficiary of EU funds for seven years," responds Wach. However, Bartoszewicz, recalling a working meeting from April 7, in which he claims that the Ministry of Transport and Construction presented an activity whose aim was to support the restructuring of PKP companies.