government plans for different sectors of...

Government plans for different

sectors of infrastructure

Stefan Bekir Assanowicz

President

Polish – Spanish Chamber of Commerce

Opportunities in the Railway Sector

in Poland

Investment Program for Railway Investment Program for Railway

Construction up to 2013 with the

perspective till 2015

The Investment Program

• The Investment Program was submitted to the

approval of the Ministry of Transport

• Consisted of three groups• Consisted of three groups

A. Construction of the new railway

infrastructure

B. Modernisation of the existing railway

infrastructure

C. Revitalisation of the existing railway

infrastructure

The Investment Program

Separate preparation activities to construction,

modernisation and revitalisation processes are the

following:following:

– Feasibility studies

– Technical designs

– Obtaining of necessary administration permits

– Obtaining of construction and environment permits

– Survey documentation

Existing situation

• PLK Railway network 19 276 km in exploitation

• 11 493 km have the status of national network

• 1 409 km without exploitation

• 1 318 km in disinvestment

• 25 591 bridges and viaducts ( 725 622 m )

• 14 369 bridges in the national network (492 648 m )

• 10 952 bridges ( 232 974 m ) on secondary lines

Existing situation

Technical status of the lines under exploitation

• Good – 36%

• Medium - 35%

• Insufficient – 29%

New Projects preparation

• 21 new investment projects

• 18 to be finished before the end of 2013

• Value of the preparatory works 503 mln PLN (125 mln • Value of the preparatory works 503 mln PLN (125 mln

EUR)

• Technical effect: 2312 km

New railway infrastructure construction

• 7 new projects

• 5 to be finished before the end of 2013

• Value of the investment:• Value of the investment:

745mlnPLN ( 185 mln EUR )

• Technical effect: 21,4 km

Modernisation of existing railway lines

• 45 projects

• 28 to be finished before the end of 2013• 28 to be finished before the end of 2013

• Value of the projects

16 368 mln PLN ( 4 092 mln EUR )


Revitalisation of existing railway lines

• 37 projects


• Value of the projects

3 858 mln PLN ( 964,5 mln EUR)


PKP PLK SA Investment program

• 110 projects


• Total value:

21 474 mln PLN ( 5 368 mln EUR )

• Total technical effect : 2 284 km

Maximum speed on existing lines

Investments in the railway infrastructure 2011 - 2013

Lines with 221 KN/axis,

existing stage and realisation 2011-2013

Average 24 hour traffic of passenger trains

Average 24 hour traffic of cargo trains

Financing sources ( in 1 000 PLN )

Financing 2011 2012 2013 After 2013

EU Budget 2 682 090 4 909 983 5 800 542 4 172 482

National budget 609 954 1 154 723 1 079 707 2 290 948National budget 609 954 1 154 723 1 079 707 2 290 948

Total 3 292 044 6 064 707 6 880 249 6 463 430

European Funds 435 607 612 526 137 091

Railway Fund 328 044 209 436 200 269 1 234 880

Investment conclusions

• The Program considers 110 projects

• Total investment of 21 474 mln PLN ( 5 368 mlnEUR)

– 10 334 mln PLN (2 583 mln EUR) will be covered

from EU sourcesfrom EU sources

– 7 816 mln PLN (1 954 mln PLN) will be covered from

the budget

– 3 314 mln PLN will be covered by PLK from the own

sources and other private sources

• Realisation Final effect: 89 Projects, 2284 km, 20 971

mln PLN (5 493 mln EUR) budget for realisation

Main targets

• E 65/ C-E 65 line from Warsaw to Gdansk-Sopot-Gdynia

• Pilot project for implementation of ERTMS/ETCS and

ERTMS/GSM-R in Poland at the E 30 corridor Legnica-

Wegliniec –Bielawa DolnaWegliniec –Bielawa Dolna

• CMK line modernisation , 335 km, Warsaw- Krakow,

Katowice with 200 km/h speed

• Link to the Warsaw Airport

• Koscierzyna-Gdynia ( 201) , Krzyz- Kostrzyn ( 203 ),

Torun-Bydgoszcz ( 18 ) modernisation

• Railway exits from the Silesia Region

Tenders

• The majority of the projects in the market belong to

PKP PLK SA

• Public tender procedures

• Unlimited international tenders• Unlimited international tenders

• Requirements of Tender Specification

• FIDIC rules

• Staff with approval of Regional Chamber of Civil

Engineers – permits and proved expertise

• Communication on the job site

Tenders

• Till now Tender Criteria: the majority with only one

criteria: Minimum price

• The average price approx. 63-65% of the budget

• From 9 to 18 participants• From 9 to 18 participants

• Change of the criteria: PLK started to prepare two

stage tenders with prequalification

• Possibility of protests and blockings related to a high

registration fee in the court

Tenders

• High competition on the market

• 51 – 55% of the budget ( last two tenders )

• New participants from abroad

• Local partners• Local partners

• Local staff

• Local subcontractors

• Investor ‘s Stability

• Necessity of the EU/ National funds absorption

Oportunities in the road construction

sector in Poland

National Program for the roads construction

2011-2015

Resolution of Council of Ministers

January 25th 2011

National roads network

• 383 300 km roads network in Poland

• 19 000 km of the network (5%) - National Roads under

GDDKiA administration, taking 60% of the transport GDDKiA administration, taking 60% of the transport

capacity

• 4816 km in the Transeuropean Road Transport

Network TEN-T in European Corridors II,III,VI

National roads network

• Motorway A-1 : 582 km, Corridor VI, Gdansk-Lodz –

Czech Republic borderCzech Republic border

• Motorway A-2 : 651 km, Corridor II, German Border –

Poznan – Lodz – Warsaw – Bielorussian Border

• Motorway A-4 : German Border – Wroclaw – Katowice _

Krakow – Rzeszow – Ukrainian Border

• A-6 : 29 km; A-8 : 27 km; A-18 : 75 km

Target Motorway and Expressway network in Poland

Technical standard of the network

Evaluation of the technical standard of the network done

by GDDKiA shows that

• 60% good• 60% good

• 22% medium

• 18% insufficient

There is a necessity to reconstruct and upgrade 40% of

the network up to 11,5KN

Target for 2013: 66% good, 34% medium

Financing sources ( PLN )

Source of

financing

2011 2012 2013 Investment

2011-2013financing 2011-2013

National

budget

19 376 088 12 149 218 5 273 523 36 798 830

EU funds 14 581 739 14 039 575 7 010 235 35 631 549

TOTAL 33 957 827 26 188 793 12 283 758 72 430 379

Financing sources

• KFD – National Road Development Fund

• BGK Bank – 100% State Treasury ownership

- follows KFD payments- follows KFD payments

- State Treasury bonds for investment

- loans

• State: funds from national budget

• EU Funds

PPP and concessions

• Today sections with concessions :

A-1 Gdansk – Torun

A-2 Swiecko – KoninA-2 Swiecko – Konin

A-4 Krakow - Katowice

Viatoll system of payment spread all over Poland for

lorries on motorways and expressways, for passenger

cars on motorways only

• Tuszyn- Pyrzowice A-1 section system analysis

• Warszawa – Minsk Mazowiecki A-2 system analysis

• Concessions for maintenance for GDDKiA sections

Motorway and Expressway network - January 2012

Tenders and contracts

• After a boom in 2009 and a very strong investment, the

Ministry of Transport is revising its new investment

plan nowplan now

• Delays in the execution of targets 2011/2012

• Failure of contractors

• New tenders for replacements

• Design and build system for new contracts

• The lowest price criteria = problems with execution for

both parties


• Due to its opening and capacity the market is very

competitive, competitors use a very risky policy of

low priceslow prices

• Changes in the technical documentation and

technology impossible, no value engineering

• Very sensitive and severe control of the execution

• FIDIC rules with some major modifications

implemented every day


• Very strong position of the Engineer and Resident

Engineer

• Strong control of the quality, additional investors

checking in min 10-15% of testschecking in min 10-15% of tests

• Milestones policy as a tool of control and penalties

• Strong environment protection demand

• Despite difficult conditions growing number of players


• Do first and later claim in time, not the opposite, you

can have big problems with delays and penaltiescan have big problems with delays and penalties

• Difficult claims and changes

• Necessity of high profile engineering staff

• Local problems with materials and its transport on

local roads – indemnities for local authorities for

reconstruction

Forecast of cumulated traffic streams

on National Roads in 2025

Forecast of cargo traffic streams

on National Roads in 2025

Target 2013

Motorway and Expressway network

Before the end of 2013 and after

• Before the end of 2013 we have 80 running and prepared new projects with total value of 38 500 mln PLN for 2012 – 2013

• After the end of 2013 the plan considers :

A-1 Tuszyn – Pyrzowice section ( 139 km )

A-2 Warsaw – Belarusian BorderA-2 Warsaw – Belarusian Border

34 sections of expressways

32 city by-passes

21 sections of renovations and upgradings

• The value of above mentioned investments is not givenyet

• GDDKiA has prepared technical documentation for thenew projects with a value of ( prices 2011 ) 62 000 mln PLN

We have a beautiful winter

• But every Company coming to the Polish market must

know that during the winter period from December

15th till March 15th the majority of works are stopped,

there are stipulations in the contracts concerning the there are stipulations in the contracts concerning the

official winter brake.

• Some of the works, as deep foundations, transport

and storage of materials, internal works are allowed

We have a beautiful summer

• The organisation of works must consider the

accumulation of works between March 15th and

December 15thDecember 15th

• In practice, technological works should be finished till

November 15th, due to the danger of low temperatures

after this date

Our Future

• We have one of the biggest construction markets

with the EU budget 2007-2013(15) of 63 500 mln

EUR

• The Projects must be continued as well as new• The Projects must be continued as well as new

Projects are waiting for their budgets

• We are waiting for the new EU budget for 2014 -

2020(22)

• Our expectation is to receive 70 000 mln EUR from

the EU budget in the new financial perspective

2013-2020


Polish-Spanish Chamber of Commerce was found in the

year 2000.year 2000.

It is a non profit, official non-government institution

that assembles Polish as well as Spanish companies

that are engaged in mutual commercial and scientific

co-operation. We associate over 100 member

companies.


We protect and represent the interests of our members. We

facilitate the search for trade partners and create information

about member-firms’ activities widely available in both Poland and

Spain. We provide market and financial-economic information to

promote export and scientific-technical-industrial cooperation. We

help to organize exhibitions, trade fairs, seminars and otherhelp to organize exhibitions, trade fairs, seminars and other

promotional events. On a day-to-day basis we inform members

about any events that have links with the economies of both

countries.

We work together with the Spanish Embassy in Poland, the Polish

Embassy in Madrid, the Polish Consulate General in Barcelona, the

trade departments of diplomatic posts, the Polish Chamber of

Commerce and regional and business lines of Industrial Chambers.


For our members we offer:

• possibility of taking part in fairs and trade mission to Spain;

• presenting the offer of Your Company among our Spanish and Polish

partners, which are also regional and business line Spanish

chambers, who have unrestricted and direct access to companieschambers, who have unrestricted and direct access to companies

from a given sector;

• possibility of obtaining professional market information;

• free placement of data and characteristic of Your Company as well

as your offer on our bilingual webpage (www.phig.pl);

• receiving publications of Chamber and brochures sent by ministries;

• placement of data of Your Company in bilingual Folder;

• receiving invitations for participation in Spanish trade missions,

which are coming to Poland.


For more information:

www.phig.pl

[email protected]

government plans for different sectors of...

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