First large PPP projects in infrastructure construction increasingly likely

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Implementation of large infrastructure investments in the form of Public-Private Partnership (PPP) is still not very popular in Poland. However, there is a chance that this will change soon. GDDKiA has announced the construction of the Tri-City Metropolitan Bypass in this formula, and PPP investments are also planned in Gdansk or Krakow.

Tri-City Metropolitan Ring Road

GDDKiA chose the construction of the Tri-City Metropolitan Bypass (OMT) along the S6 expressway as the first large project to be implemented as a PPP. It is to be a two-lane expressway with a length of almost 33 km, including the Żukowo ring road (GP class road) with a length of 6.6 km. Still in 2020 GDDKiA plans to launch a competitive dialogue tender for the selection of a private partner whose task will be to design and build an OMT within 48 months of signing the agreement and maintain it for the next 26 years. In return, the private partner will receive the so-called availability fee from the state budget.

Central Port in Gdansk

The largest planned maritime investment in Europe will be carried out in Pomerania. The Central Port in Gdansk, as it is in question, is also to be implemented in the PPP formula. Already in May 2018, the Port of Gdansk Authority signed a contract for the development of the concept of the Central Port (with the consortium of Projmors Biuro Budownictwa Morskiego and Mosty Gdansk). The investor’s plans assume that several reloading terminals (e.g. passenger, bulk, groupage) will be implemented on a huge area based on the PPP formula. They assume gradual creation of new terminals depending on the needs of partners – private operators.

This year, a selected development concept was presented: The Central Port is to cover approximately 1,400 ha of sea basin and 410 ha of landed area. The selected project provides for the construction of 6 to 8 terminals and shipyard space.

Work on their implementation is expected to start in 2019. (a contract has been signed with a consulting company to support the investment in PPP), and the first terminals may appear in 2029. The recently signed contracts for rail connections increase the chances of realisation of this investment.

Innovative investment in Krakow

In Krakow, on the other hand, a line of the fast tram may be built based on the PPP formula. The Road Administration of the City of Krakow conducts a competitive dialogue with three potential partners:

• a consortium of companies: PPP Solutions Polska Sp. z o.o. (leader), Gulermak AGir Sanayi Insaat ve Taahhu A.S. (partner);
• Mota-Engil Central Europe PPP Road Sp. z o.o.;
• VARDUN Sp. z o.o.

Planned conclusion of an agreement for the construction of a 4.5 km section of a tram line leading from Jana Pawła II Avenue, Lema Street, Meissnera Street to the tram terminus in Mistrzejowice.

Due to the large scope of arrangements, the dialogue has been scheduled for as many as 15 months, and the contract with the selected company is to be signed in Q3 2020. If it is successful, it will be an innovative investment in urban transport, which is to indicate the direction for all cities in Poland.

It is worth stressing that PPP’s application extends beyond infrastructure construction. Housing projects undertaken by local governments can be implemented in the PPP mode, too. A concrete example is Gizycko, where the local government is about to launch a competitive dialogue with private developers about jointly building 100 homes within the framework of the Mieszkanie+ programme. The task of the private partner would be to build the homes and administer the project for between 15 and 30 years. This initiative is worth keeping an eye on, because it is a step in the right direction that might help speed up the implementation of Mieszkanie+ across the country.