Public private partnership options for the second generation of motorway developments in Poland

The concession and other formulae of Public-Private Partnership (PPP) make up a part of the infrastructure provision system in many EU countries. The revitalization of these formulae enriched the traditional system of infrastructure provision by the financial and managerial capacity and the entrepreneurial and innovative spirit of the private initiative. However, there are problems in some countries like Poland that impede that the concession system takes roots, even if an appropriate regulative framework exists. In this sense, The World Bank took on the assistance of INECO in its Economic and Sector Work in Poland concerning a second generation of Public-Private Partnership solutions for motorway and expressway development. The new PPP framework and particular solutions proposed in the present Study should make the infrastructure sector more attractive for the private sector and permit its larger participation and at the same time enable a maximum use of EU structural and cohesion funds. The study has been structured in two parts with different objectives: (i) to review and analyze past experience with PPP projects in Poland and previous studies on PPP projects undertaken during the past few years, and (ii) to recommend to the World Bank a PPP strategy which would be most suitable for the Polish road sector including suggestions concerning most suitable financial, legal and institutional structures for road concessions; create a limited number of PPP mechanisms for use on future concession schemes and to identify three pilot projects from the Government’s approved Substantive and Financial Program of the National Road Fund’s Road Development Plan, 2005-20061 (and the draft Program for the next planning period 2007-2013), that could be implemented using the recommended PPP strategy, as well as EU funds and the World Bank’s co-financing and technical assistance.