The government is against PPP in road building

APA - Austria Presse Agentur
25-04-2006, 15:41

Warsaw (Puls Biznesu) – Piotr Stomma, the deputy Minister of Transport, believes that private public partnership (PPP) projects will not be successful in the construction of highways.

Warsaw (Puls Biznesu) – Piotr Stomma, the deputy Minister of Transport, believes that private public partnership (PPP) projects will not be successful in the construction of highways.

Several days ago Tadeusz Jarmuziewicz, the Citizens’ Platform (PO) MP and the deputy president of the Parliamentary Commission for Infrastructure, presented a plan to finance the construction of highways exclusively by private funds. The Ministry of Transport and Construction protested.

“The MP gives the example of A1 highway as a model project. Let’s analyze the costs for the budget in the PPP project on the 90 km long road from Gdansk to Nowe Marzy”, Piotr Stomma, the deputy minister responsible for roads, said.

He said that the previous government gave a guarantee to pay out the concessionary GTC EUR 768m till 2040. The state pledged to cover the company’s debts of EUR 1-29m annually.

“Plus the difference between road fees paid by drivers and the costs of exploitation covered by the company. We need 1,500 km of highways and 5,000 km of express ways in Poland. If we want to know the costs of PPP system, we should multiply it by 15 in case of highways and by 50 in case of express ways”, Piotr Stomma said.

This means that the state would have spent EUR 12 billion till 35 for guarantees only.


Tadeusz Jarmuziewicz sees the costs in a different way. He told “Puls Biznesu” several days ago that private investors could build roads and highways in Poland worth EUR 30 billion. In exchange, the state would have to pay them for 30-35 years EUR 1 billion annually for the right to use these roads. GTC counts the costs in yet another way. The company estimates that in the first years, the state will have to pay for the Nowe Marzy – Torun way EUR 20-40m annually but since 2034, the company will be paying to the state EUR 60-100m a year.



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Puls Biznesu

Inne / The government is against PPP in road building