Railways to get euro 250m of EU development money for privatization

In 2002 the European Union (EU) is to grant euro 250 million to assist the privatization of Poland's international railway tracks, while the state budget subsidy is to reach zl. 156 million. It is estimated that PKP needs about zl. 2 billion in total to restructure. This year PKP's major investments will be further modernization of international lines: E20 - Berlin-Warsaw-Moscow and E30 - Wroclaw-Katowice-Lvov, which include a euro 93 million modernization of the Minsk-Mazowiecki-Siedlce line and euro 17 million for Rzepin-Kunowice. By 2007, the EU is to provide subsidies (from ISPA and PHARE funds) to PKP as well as granting loans totalling euro 820 million for the projects. In addition to the zl. 156 million subsidy, the state budget is to spend zl. 6 million on rebuilding railway points. The state of the Polish railways meets EU standards in some respects, however their quality and technical parameters are far below EU norms. (Prawo i Gospodarka, June 1-2, p. 3) K.S.