The local government of the capital will take approximately two billion zlotys from the EIB loan to complete the second metro line, as well as to refinance the expenses incurred in the construction of the existing stations. This is a necessary step due to budget losses caused by the effects of the pandemic and changes in the tax system.
As Capital Hall indicated in the press release, the completion of the construction of the second metro line is a major investment. However, the effects of the pandemic have rocked the city’s budget. Therefore, the Mayor of Warsaw, Rafai Trzaskovsky, signed a framework agreement with the European Investment Bank (EIB) to finance the extension of the second metro line in the amount of PLN 1.9 billion. Officials confirm that this is a continuation of the loan obtained from the European Investment Bank in 2019. The city is using this type of assistance for the twelfth time.
The announcement states that the funds raised “will be allocated for the completion of the second metro line west from Rondo Daszyńskiego station to the new Karolin station and northeast from the Dworzec Wileński station to the new Bródno station, along with the construction of a new technical station and parking station”.
“The European Investment Bank offers loans on very concessional terms”
As Maciej Fijałkowski, Director of the European Finance and Development Policy Office explains, in an interview with tvnwarszawa.pl, the money from the PLN 1.9 billion PLN loan will be used to complete the construction of metro stations under construction in Bródno and Bemowo, and the construction of three planned stations in the western end off the line, and in part to refinance expenses incurred in the construction of six plants that were commissioned in September 2019 and April 2020.
– The European Investment Bank grants loans on very favorable terms, which is possible thanks to Poland’s membership in the European Union – says Maciej Wijakowski. He also adds, changes in the tax system, incl. Cuts in direct investment dividends introduced in 2019 ‘hardly hit pocket local governments’
Local governments find themselves in a very difficult financial situation. For us, such a loan is a way out of this situation. Without it, we are likely to have to cut off investments, and therefore we have money that we got on very good terms, which will be repaid in the coming years, Fijałkowski sums up.
The EIB loan will be used in the years 2022-2023. The final terms will be determined upon disbursement of the loan, after the city chooses the most suitable option.
Recently, Warsaw used the help of the European Investment Bank in April last year. The local government took out a loan of 654 million PLN To secure financing for the purchase of 45 new metro trains.
Progress in the construction of the second metro line
As we reported in recent weeks on tvnwarszawa.pl, Subway section builders in Bemowo They have already built the target design for the western route of Powstańców Śląskich Street with a bus bay. A new road, sidewalks and bike path have been built. Underground, an underground railway is being laid, and stonework is being carried out on mezzanines and station platforms.
Work is progressing too In the Prague section of the second metro line. The construction of the track between Bródno and Kondratowicza stations is nearing completion, leaving only a small part of the concrete. The first escalators were installed at all stations. In the technical parts, doors were installed and tiles were laid on the walls. At Kondratowicza station “you can already see the stone floors in the passenger section, as well as parking for future ticket gates”.
If all goes as planned, the first passengers will be able to use the new terminals in the second half of 2022.
Main image source: ONE Warsaw