The World Bank has lent Poland over USD800m for transport projects and as far as the bank is concerned that is it for the moment. Robert Kietliński, the person within the bank responsible for overseeing this type of project is convinced that the way of managing these funds needs to be changed.
The reason why they are so many holes in the few roads that there are is not becuase of a lack of money but of a lack of management in modernising infrastructure. Around PLN3.6bn is raised from excise duty on fuels, loans and other sources for road construction. Two thirds of this cash is used for building new roads whilst PLN7.8bn is needed for the upkeep of existing roads whilst urgent repairs require PLN3.9bn.
Kietliński says that the road administration authorities cannot manage the funds from EU nor apply for them in sufficient time. Part of this may be due to low wages paid to civil servants which cannot attract people who know what they are doing. Money can lie in a bank account for two years. Kietliński notes the argument on whether Poland will gain or lose from EU membership and that based on current performance this country will undoubtedly be a net payer.
In order to remedy this situation he says that the roads authority GDDKiA needs to become a company working in the free market. Currently there is no way of getting it to work better. Furthermore Polskie Linie Kolejowe, the infrastructure company of the rail carrier PKP, needs to compete and not just act as a monopoly. Kietlinski says that the authorities currently treat road repairs and construction as a favour to the public and not as a necessary service.
He also says that it is not a good idea to put money into new projects such as motorways. He says that there is no point in having a motorway if once one leaves it there is no road to continue further. He is not, however arguing for discontinuing the motorway programme.
Whereas the bank is not a commercial institution, it does have to meet market conditions. All the money from it can be used only for modernisation of existing roads. It controls its lenders and seeks an internal return of around 15 percent usually although for infrastructure this rises to forty percent. It has made seven credits for Poland, the most recent being for restructuring the PKP.