PIR to co-finance major Kraków road

State-owned investment vehicle Polskie Inwestycje Rozwojowe (PIR) has signed an initial agreement with the authorities of Kraków on the financing of Trasa Łagiewnicka, part of the city’s ring road, the company said in a press release on Tuesday. The total cost of the road is estimated at PLN 800 million. The value of PIR’s involvement will stand at some PLN 200 million. The agreement stipulates for the establishment of an SPV that would both manage the construction and later maintain the new road. PIR may acquire a 50-percent stake in that company. The general contractor for the four-kilometer long road is scheduled to be chosen in the second half of 2015 or early 2016. The construction should be completed by end-2018, the press release said.