EIB lends €825m for Polish roads

The European Union’s banking arm will extend a €500m loan toward a section of Poland’s East-West A2 Motorway and another €325m toward the rehabilitation of the country’s national road network.

The European Investment Bank is providing two loans totaling €825 million that will help Poland develop and upgrade its road infrastructure.

The European Union’s banking arm will provide a €500 million loan for the construction of a 91 kilometer section of Poland’s A2 Motorway. Situated in central Poland, the section will link the outskirts of Lodz, Poland’s second most populous city, in the east, with Warsaw, the country’s capital and most populous city.

The total cost of building the new section of the A2 is estimated to be €1.47 billion, according to the European Investment Bank website. With the latest loan, the bank has committed €2.1 billion toward the construction of the entire motorway,  which, when complete, will traverse central Poland from its German to its Belarussian borders.

The A2’s construction was initiated by the Polish authorities in 1993 as part of an ambitious 2,300 kilometer motorway building initiative for the Eastern European nation.

The EIB will also lend €325 million toward the ongoing rehabilitation of Poland’s national and local road network, including surface pavements, bridges and other structures. The goal is to help bring Poland’s road network in line with EU standards, the bank said in a statement.

The loan brings the bank’s total lending toward rehabilitation of Polish roads to €1.5 billion.

The borrowers for the loan in each case were agencies of the Polish government, the bank said.

Overall, since 1990, the bank has lent €9.5 billion toward transport projects in the EU.