Metro needs long-term financing plan

Warsaw officials and state legislators are calling for a long-term financial solution for construction of the capital's metro system, which last week received zł. 100 million ($23.8 million) in national government subsidies after heavy pressure from senators and MPs. "City authorities should stop lobbying Parliament," said Genowefa Maria Ferenc, vice chairman of the Senate's economy and finance committee. "They should instead name specific instruments to finance the metro and agree to them with the Finance Ministry." Construction on the metro system's first and only line began 20 years ago but is far from completion, as its seven remaining stations exist only on paper. The city plans to open the Dworzec Gdański station by the end of 2003 and the Plac Wilsona station in 2004. To finance their construction, the city needs zł. 850 million ($202 million) in 2002-2004 - zł. 270 million ($64 million) this year, according to Warsaw Vice Mayor Jacek Zdrojewski, who is responsible for the project.

"I know no city in the world that could finance more than 40% of the costs to build a metro from its own funds," Zdrojewski said. "The decision to build the metro was made by the government and the state committed itself to participate in the project." But due to budget constraints, the city was to receive just zł. 55 million ($13 million) this year as part of a regional investment plan. After the Sejm last week OK'd an amendment to the state budget bill freeing up the zł. 100 million, Zdrojewski said the subsidy would allow the city to stick to its construction timetable this year, while the remaining zł. 115 million ($27 million) would have to come from loans and city funds.

According to the Civic Platform's (PO) Edward Maniura, who sits on the Sejm's transporation subcommittee, the government should cofinance the metro from the central budget because, as the capital city, Warsaw serves the entire country. "But central budget funds for the Warsaw metro shouldn't be granted in the way it was done this time and every year so far, which is via squabbles and strong lobbying by Warsaw MPs," Maniura said. A perennial hot potato, the metro could again spark fierce debate in the Sejm this fall as Warsaw needs another zł. 350 million ($83 million) in 2003 to keep to its construction schedule, according to Zdrojewski.