Zł.16-billion tram contract

The zł.16-billion contract will see a complete makeover of Warsaw's aging tram fleet, the refurbishment of some tramcars and replacement of track. The first tender, for 186 trams, was announced on August 22.

"The new Warsaw trams should be silent and air-conditioned with low floors, CCTV-monitored and equipped with ticket-vending machines," said Hanna Gronkiewicz-Waltz, the mayor of Warsaw, upon signing the deal with TW's management. "This is important as some of the trams are 20 and some even 40 years old," she added.

According to Leszek Ruta, the managing director of TW, Varsovians should be able to see changes in the near future, certainly before Euro 2012 soccer championship.

"This contract is not only about buying new trams. It is a multi-year agreement that the city will pay Tramwaje Warszawskie for its services," Marcin Kamola, an analyst at Transport Consultants Group TOR, told WBJ. He explained that zł.9 billion will be allocated for TW's budget, zł.5 billion for new tram lines and track work, and zł.2 billion towards buying new trams.

Having secured the zł.16-billion contract, TW will be able to apply for bank loans, as no EU funds are secured for the investment.