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Poles repositioned

23 October 2010

Poland’s government, after mixed results procuring road sections, has tried a different tack for procuring rail assets. Will using real estate techniques serve state rail operator PKP any better? Graham Jarvis reports.

Poland generally has a poor reputation in the infrastructure finance market. Political and financial wrangling hampered the procurement of some of the A1 and A2 road sections. The country’s administrations have demonstrated tepid enthusiasm for PPP, and delays to procurement processes have been common.

One reason for this ambivalence is the availability of EU funding as an alternative to PPP, but this is gradually expected to become much less plentiful. Poland’s present administration hopes that a slate of rail projects, which will be procured under a different law to road assets, a resurgence in interest at the subsovereign level, and the passage of new legislation will mark a fresh start.

Market participants have complained about the complexity of applying Poland’s PPP laws, the inflexibility of the first PPP Law, the need to gain an approval from the Minister of Finance for projects of larger than Eu100 million ($140...


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