S19 EXPRESSWAY MIEDZYRZEC PODLASKI - LUBLIN

Promoter – Financial Intermediary

MINISTRY OF INFRASTRUCTURE / GDDKIA - REPUBLIC OF POLAND

Location

• Poland

Description

The loan will finance the construction of a new 2x2 lanes S19 expressway between Bialystok and Lublin on a 101 km long section between the S19 interchange with A2 motorway and Lublin. The project follows up the recently completed S19 expressway section between Lublin and Rzeszow, co-financed by the Bank. Works include new construction and extension of the existing infrastructure. The project design foresees construction of approximately 87 km of a 2x2 lane expressway, partially along the existing alignment of National road DK19 and partially along a new alignment, and a second two lane driveway (approximately 14 km) on the two existing bypass sections. The project scope also includes the construction of grade separated interchanges, animal crossings, drainage systems, noise protection screens, local and service roads and passenger service areas.

Additionality and Impact

The project concerns construction of a new 101km long 2x2 lanes S19 expressway section between the interchange with A2 motorway and Lublin. The project contributes to improved efficiency of the TEN-T road network in Poland, thereby improving accessibility and market integration. The project is expected to contribute to the reduction of safety related negative externalities, by diverting heavy and transit traffic from the agglomerations crossed by the national and local roads. The project will contribute to better accessibility in the region by adapting of the technical and operational parameters of the road to the forecast traffic level, removing bottlenecks and completing missing elements of the road infrastructure.

The EIB impacts investment activity by providing financial support that is complementary to national financing.

The terms of the EIB loan, notably in terms of long tenor (up to 30 years), appropriate disbursement conditions and advantageous financial terms will contribute substantially to increasing the financial flexibility and investment capacity of the Promoter, facilitating the completion of the project on favourable terms and in a timely manner.

Objectives

The project is located north of Lublin in Lublin voivodeship (Lubelskie) on a north - south road corridor between Bialystok and the Polish - Slovakia border via Rzeszow. The corridor is running along the eastern border of Poland with Belarus and Ukraine and therefore is strategically important in the context of the ongoing war in Ukraine. The project will contribute to improved accessibility in the eastern Poland region by adapting of the technical and operational parameters of the road to the forecast traffic level, removing bottlenecks and completing the missing segments of the entire S19 expressway. This will improve international and local traffic flow organization and driving conditions on the corridor, which is particularly important for Ukraine transit traffic. It will also contribute to improved traffic safety and living conditions for inhabitants alongside the existing National Road DK19.

Sector(s)

• Transport - Transportation and storage

Proposed EIB finance (Approximate amount)

EUR 400 million

Total cost (Approximate amount)

EUR 979 million

Environmental aspects

The project falls under Annex I of the Environmental Impact Assessment (EIA) Directive 2014/52/EU and is therefore subject to an EIA procedure. As on most of the Polish road infrastructure projects, this is a two-stage process. Five Environmental Decisions have been issued based on the initial EIA studies, while six second stage supplemental EIA (SEIA) studies, one for each works contract, were completed for different sections in order to apply for a construction permit (ZRID). According to the preliminary analysis, the project alignment does not directly intersect any NATURA 2000 sites but runs nearby some of them. Appraisal will also address the identification of potential climate change risks and the analysis of the suitability of adaptation measures for ensuring the long-term resilience of the new road. The scope and adequacy of these measures, as well as the overall impact of the project implementation on the GHG emissions will be further assessed during the appraisal.

Procurement

Procurement is completed. Tenders were launched in 2020 and 2021 and six "design and build" type of works contracts were signed in 2021 and 2022. The completion of the project is planned by the end of 2027. The EIB will verify that contracts for implementation of the project are tendered in accordance with the applicable EU procurement legislation, Directive 2014/24/EU as well as Directive 89/665/EEC as interpreted by the Court of Justice of the EU, with publication of tender notices in the EU Official Journal, as and where required.

Status

Signed - 26/11/2024