Functioning and financing of national road management

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Functioning and financing of national road management Katarzyna Prokop, Chief Expert November 6th, Sarajevo, B&H TEM Steering Committee

Objectives of the General Directorate Responsible for the development, construction, management and maintenance of the road infrastructure in Poland The largest public investor in terms of road investments in Poland 19 000 km of national roads, incl. 3 000 km of high speed roads

Polish road authorities organisational structure Minister of Infrastructure and Construction General Director for National Roads and Motorways 105 GDDKiA Subdivisions GDDKiA Central Office 16 GDDKiA Regional Divisions 105 GDDKiA Subdivisions 273 GDDKiA Road Areas

National Road Network in Poland 2007 Since 2007 Poland constructed 3281,4 km of new roads National road network in Poland is 17 540 km and includes: motorways 1627,3 km expressways 1654,1 km 2015

GDDKiA finances Base state documents Law on public roads (21.05.1985) Law on special rules of national roads preparation and realization (10.04.2003) Law on land transport financing (16.12.2005) Law on paid motorways and national road fund (27.10.1994) National Transport Policy for 2006 2025, approved by the Council of Ministers in June 2005 Programme for National Roads Construction 2011 2015, approved by the Council of Ministers January 2011 Programme for National Roads Construction 2014 2023

GDDKiA finances Planned budget for 2016 approximately 3 billions USD Sources: state budget National Roads Fund National Roads Fund financially supports the Programme for National Roads Construction. Covers expenditures for preparing, construction, reconstruction of national roads. The Fund uses the financial resources according to the yearly plan. The incomes of NRF are: Fuel fee European Union funds European Investment Bank loans Bonds Revenues from Electronic Toll Collection

GDDKiA finances European Union funds GDDKiA is one of the biggest beneficiaries of European Funds 2007-2013 Operational Programme Infrastructure and Environment 10,37 bilion euro EU contribution Operational Programme for Eastern Poland Development 0,21 bilion euro EU contribution 2014-2020 Operational Programme Infrastructure and Environment 9,94 bilion euro EU contribution Connecting Europe Facility (CEF) In this financial perspective GDDKiA plans to build more than 2500 km of national roads (motorways, expressways and ring roads).

EU Funds EU financing for road projects 2007 2013 Operational Programme Infrastructure and Environment Opereational Programme Development of Eastern Poland European Teritorial Cooperation

European Union Funds cont. EU financing for road projects 2014 2020 Operational Programme Infrastructure and Environment Connecting Europe Facility European Teritorial Cooperation

EU Funds OP Infrastructure and Environment 2007 2013 48 investment projects in total - 39 revenue generating (art. 55 Reg. 1083/2006) 1 social campaign (road safety) - 5 special awards (i.a. for the most successful social campaign 2010, innovation in media 2011) 2 projects for preparatory works ca. 10,3 bln EUR EU Contribution 2014 2020 ca. 10 bln EUR EU contribution ca.50 investment projects planned

National Road Fund National Roads Fund financially is run by Bank Gospodarstwa Krajowego (BGK) and supports the Programme for National Roads Construction Covers expenditures for construction, reconstruction and modernisation of national roads The Fund uses the financial resources according to the yearly plan The incomes of NRF are: - Fuel fee - European Union funds - Bank loans - Bonds - Revenues from Toll Collection

Bonds Bank Gospodarstwa Krajowego (BGK) handles the underwriting of government guaranteed National Road Fund (NRF) bonds. The capital obtained by issuing bonds is used to fund NRF operations. These bonds may have various tenor 5 or 10 years or more. The volume and schedule of issuance in different years are based on cash flow needs of NRF, and analysis of market conditions, supply and demand for government securities in a given time period.

National toll collection system General Director for National Roads and Motorways collects electronic toll fee that constitutes income for the National Road Fund (Law on public roads, art. 13hb., dated March 21st, 1985). Construction and operation of the Electronic Toll System was awarded in the public procurement procedure. The agreement was signed in 2010 under the project called: Design, Delivery and Service of the National Point of the Electronic Toll System and Manual Toll System.

Cont. National Road Fund collects funds and finances construction and reconstruction of the national roads, construction, implementation and operation of the Toll Systems (Law on the paid motorways and National Road Fund, art. 39a, dated October 27th, 1994). Tolls from viatoll National Road Fund Road network development managed by GDDKiA

National tolled road network Current Network: 3151 km Next extension (on 1 October 2016): 150 km

Statistics INCOME in USD ESP MSP TOTAL 2014 351 332 974 54 701 840 406 034 814 2015 387 008 224 56 550 778 443 559 002 2016 426 924 116 59 219 540 486 143 656 2017* 475 249 627 66 743 603 541 993 230 2018** 450 706 571 96 757 714 547 464 285 * Income includes prognosis for November and December 2017 ** Planned income for 2018

National toll collection system The viatoll system is obligatory for all motor vehicles and combination of vehicles with a maximum permissible weight of over 3,5 tones and for buses regardless of their maximum permissible weight. Electronic Toll Collection (ETC) applies in Poland on toll motorways, expressways and selected national roads. All viatoll system incomes will be forwarded to the National Road Fund. They will be spent on further investments in the development of the road network in Poland and the modernization of the existing road infrastructure.

Public private partnership

Public private partnership A1 Motorway, section Gdańsk Toruń Stage I Gdańsk Grudziądz Construction period: XI 2005 X 2008 Total Cost: 0,66 billion zł (cost of construction 0,5 billion euro) Length: 89 km Stage II Grudziądz - Toruń Construction period: VIII 2008 XI 2011 Total Cost: 1,1 billion zł (cost of construction 0,92 billion euro) Length: 62 km

Public private partnership A2 Motorway, section Konin - Nowy Tomyśl Construction period: 2000-2004 Total Cost: 0,87 billion zł (cost of construction 0,63 billion euro) Length: 149 km A2 Motorway, section Nowy Tomyśl German border Construction period: VII 2009 V 2012 Total Cost: 6,5 billion zł (cost of construction 1,29 billion euro) Length: 105 km

Public private partnership A4 Motorway, section Kraków - Katowice 30 year contract granted in 1997 by the Minister of Transport to STALEXPORT Length: 61 km Remuneration based on collected toll

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