The European Investment Bank (EIB) is lending $870m to Poland’s state-owned Bank Gospodarstwa Krajowego (BGK) for the construction of the Warsaw bypass and an expressway in the west of the country.
Some $600m of the loan would go on building 163km of the S5 northern expressway between Nowe Marzy in the centre of Poland to Radomicko in the west.
The EIB is backing this with a further $270m long-term loan for the construction of the 19 km southern section of the Warsaw bypass.
Within this project, the EIB will also support the construction of a bridge across the Vistula that will supplement the eight existing bridges, which are frequent sources of traffic congestion.
Both projects are designed to improve road safety and respect the natural environment, so acoustic screens, wildlife crossings, drainage and runoff treatment will be installed.
LászlÃ³ Baranyay, the EIB vice-president responsible for lending in Poland, said: "EIB funds will help to eliminate bottlenecks and reduce travel time on these expressways by providing additional capacity and contributing to improved travel quality and safety.
"Ultimately, this will strengthen the economic competitiveness of Poland and increase the quality of life of Polish citizens."
Since the beginning of EIB activity in Poland in 1990, the EIB’s co-financing of transport projects has accounted for some 40% of its lending commitments in the country.
In 2014, the EIB provided more than $2bn for the construction of several sections of Polish expressways.
In October last year, the EIB awarded Poland a $628m motorway loan.
Image: LászlÃ³ Baranyay, EIB vice-president responsible for lending in Poland, and Dariusz Kacprzyk, BGK President (EIB)