PKP fails to win local gov't support
By : Magdalena Wierzchowska
Polish State Railways (PKP) and local voivodships have failed to agree on terms for operating the regional railway network, blaming the disagreement on a lack of funds.
This year each voivodship is due to share costs with PKP to operate regional railway connections, traditionally the biggest loss maker for the troubled national railway company.
The 16 voivodships should receive zl. 250 million ($62.5 million) in state subsidies and PKP will issue state-guaranteed bonds to cover a further zl. 500 million ($125 million) to keep regional connections operational.
The co-financing agreement is part of the government's attempt to liberalize and decentralize the railway network. It also results from last year's PKP law that paves the way for restructuring and privatizing the national railway company. By mid-February regional divisions of PKP were expected to sign contracts with each voivodship. However, several voivodships are refusing to sign any contracts until they are granted funding in advance.
"Voivodship offices haven't received a single zloty so far," said Zbigniew Cedro, a director at the infrastructure and geology department of Torun City Hall. "It's simply a cabaret."
The agreements have to be signed by mid-February so that PKP has enough time to set up new railway schedules by June. "If the agreements aren't signed on time, there's a danger that the trains will not be available," said Andrzej Zurkowski, a spokesman for the passenger transport division at PKP. "We're counting on local governments agreeing to sign contracts. They're practically ready."
But many voivodships are adamant there will be no agreement with PKP by mid-February. "We won't sign the contract," Cedro said. "Signing it would be against the law." At issue is the reluctance of voivodships to commit themselves to any agreement with PKP until government money arrives. Cedro said that although amounts were specified by the government at the end of last year, voivodships can get money only after the budget law is put into action now pending a presidential signature. Cedro said it's unconstitutional to assign tasks without providing funds. "We hope that the legislative process finishes by the end of February," he said. "In the best-case scenario we should get the money by mid-March."
Moreover, this year's zl. 800 million ($200 million) granted by the government will be too little, industry sources said. Transport Ministry officials have already tried to convince colleagues from the Finance Ministry that zl. 1.6 billion ($400 million) is needed. In 2000, regional railway deficits reached zl. 1.2 billion ($300 million). Each month, ticket income is about zl. 100 million ($25 million) less than (our) costs, Zurkowski said. "(This year) each month brings the same level of losses."
