(AGENPARL) – mar 17 gennaio 2023 Public
https://www.eib.org/en/press/all/2023-010-poland-the-eib-supports-the-sustainable-development-of-public-transport-in-krakow
[Graphical user interface
Description automatically generated with low confidence]
PRESS RELEASE
2023-010-EN
Warsaw, 17 January 2023
Poland: The European Investment Bank supports the sustainable development of public transport in Krakow
·The European Investment Bank (EIB) has signed an agreement with PPP Solutions Polska for PLN 180 million financing for the construction of a new tram line.
·The project will be the first undertaking in the urban transport sector in Poland implemented under a public-private partnership (PPP) and may be treated as a pioneer project for other local governments.
The European Investment Bank and the City of Krakow are expanding their long-term cooperation, this time according to the PPP model. The financing agreement for PLN 180 million will support the construction of a new tram line connecting the city center with the Mistrzejowice terminus. Sustainable development of environmentally friendly public transport is of strategic importance for Krakow, that is why part of the funding will come from the European Fund for Strategic Investments.
The project is the first investment in the urban transport sector implemented under the PPP formula and thus opens up new financing opportunities for Polish local government. According to the signed PPP agreement between the city of Kraków (public entity) and the consortium of PPP Solutions Polska owned by Gulermak A?ir Sanayi In?aat Ve Taahhüt, the party is to secure financing, design and build a tram line, and then take care of its maintenance for 20 years.
The new tram line will connect residential districts in the northern part of Krakow with the city center and will allow residents to commute to the city faster and more conveniently. The total length of the route is 4.45 km and the project includes the construction of 9 new tram stops, including two underground ones, and the reconstruction of the existing Mistrzejowice terminus. The development strategy of the city of Krakow assumes a gradual reduction of car traffic in the city center by providing alternative transport options and this project fits perfectly into the implementation of this goal.
Krakow, the capital of Malopolska – one of Poland’s cohesion regions, has been developing dynamically for many years and is a very attractive city for both tourists and business. The modernization and sustainable development of public transport in order to reduce CO2 emissions is an important action for the climate, positively affecting air quality, with with a better quality of life for citizens.
Vice President of the European Investment Bank, Prof. Teresa Czerwi?ska said: “The EIB is proud to strengthen its cooperation with Krakow – we believe that it will result in further dynamic development of the city. We are pleased that with this PPP transaction, we are opening up new financing opportunities for other local governments. Investments in the sustainable development of public transport are of key importance, they facilitate moving around the city, improve the quality of life of citizens and have a positive impact on the climate. The EIB, as the EU climate bank, declares its readiness to further support the green transformation of Polish cities and regions.”
Gülermak’s Chairman, Mr. Kemal Güleryüz said: “I strongly believe that the Krakow Tramway is a landmark project that will pave the way for a new wave of PPP projects in Poland. With this project, we’ve established a benchmark for a bankable documentation that is also aligned with the procurement laws in Poland. The project is of utmost importance for the Krakow City. It will not only bridge two tram lines together, but also increase the usage of the tramway which is a great step towards a greener transportation system. We’re proud to work with EIB in this project and thank them very much for the immense value they have added at this difficult time of global financial volatility and regional instability.”
“KST IV is the largest project in Poland implemented in the Public-Private Partnership formula. Thanks to the use of the PPP formula, not only will a 4.5 km section of the new tram line be built, but also the costs of this investment will be optimized. The development of public transport has been undeniably one of the most important elements of Krakow’s policy for years. The city is constantly looking for new solutions that will allow us to carry out more and more investments. One of such solutions that we found effective and beneficial for Krakow is the Public-Private Partnership model. With the support of the government, we have prepared a project for the construction of a tram line to Mistrzejowice, KST IV, which – based on the PPP scheme – gives us both financial and qualitative benefits” – said the Mayor of Krakow, Prof. Jacek Majchrowski.
Promoting cohesion has been a priority for the European Investment Bank since its creation in 1958. In the last long-term budget of the European Union, 2014-2020, the EIB Group supported investments worth around EUR 630 billion in cohesion regions, equivalent to around 16% of the EU’s GDP. In 2021, Poland was the largest beneficiary of financing for cohesion regions by the EIB Group – this financing amounted to EUR 4.5 billion.
The European Investment Bank is one of the world’s main financiers of climate action and environmental sustainability globally. As the EU’s climate bank, the EIB is committed to support the European Green Deal, help Europe become the first carbon-neutral continent by 2050 and contribute to the achievement of the United Nations’ Sustainable Development Goals. In Poland, in 2021, EIB loans supporting the green transformation of the Polish economy reached 42% of the total lending of EUR €6.5 bn.
Background information:
The European Investment Bank (EIB), whose shareholders are the 27 Member States of the European Union, is the financial institution of the EU. It finances key investments that contribute to the achievement of the objectives of the European Union. The bank finances projects in four priority areas – infrastructure, innovation, climate and environment, small and medium-sized enterprises (SMEs). Since 2019, the EIB, as the EU Climate Bank, has committed to allocating at least 50% of its funding (by 2025) to investments that contribute to the fight against climate change.
Press contact:

Testo Allegato:
PRESS RELEASE2023-010-ENWarsaw, 17 January 2023Poland: The European Investment Bank supports the sustainable development of public transport in KrakowThe European Investment Bank (EIB) has signed an agreement with PPP Solutions Polska for PLN 180 million financing for the construction of a new tram line.The project will be the first undertaking in the urban transport sector in Poland implemented under a public-private partnership (PPP) and may be treated as a pioneer project for other local governments.The European Investment Bank and the City of Krakow are expanding their long-term cooperation, this time according to the PPP model. The financing agreement for PLN 180 million will support the construction of a new tram line connecting the city center with the Mistrzejowice terminus. Sustainable development of environmentally friendly public transport is of strategic importance for Krakow, that is why part of the funding will come from the European Fund for Strategic Investments.The project is the first investment in the urban transport sector implemented under the PPP formula and thus opens up new financing opportunities for Polish local government. According to the signed PPP agreement between the city of Kraków (public entity) and the consortium of PPP Solutions Polska owned by Gulermak A?ir Sanayi In?aat Ve Taahhüt, the party is to secure financing, design and build a tram line, and then take care of its maintenance for 20 years.The new tram line will connect residential districts in the northern part of Krakow with the city center and will allow residents to commute to the city faster and more conveniently. The total length of the route is 4.45 km and the project includes the construction of 9 new tram stops, including two underground ones, and the reconstruction of the existing Mistrzejowice terminus. The development strategy of the city of Krakow assumes a gradual reduction of car traffic in the city center by providing alternative transport options and this project fits perfectly into the implementation of this goal.Krakow, the capital of Malopolska – one of Poland’s cohesion regions, has been developing dynamically for many years and is a very attractive city for both tourists and business. The modernization and sustainable development of public transport in order to reduce CO2 emissions is an important action for the climate, positively affecting air quality, with with a better quality of life for citizens.Vice President of the European Investment Bank, Prof. Teresa Czerwi?ska said: “The EIB is proud to strengthen its cooperation with Krakow – we believe that it will result in further dynamic development of the city. We are pleased that with this PPP transaction, we are opening up new financing opportunities for other local governments. Investments in the sustainable development of public transport are of key importance, they facilitate moving around the city, improve the quality of life of citizens and have a positive impact on the climate. The EIB, as the EU climate bank, declares its readiness to further support the green transformation of Polish cities and regions.” Gülermak’s Chairman, Mr. Kemal Güleryüz said: “I strongly believe that the Krakow Tramway is a landmark project that will pave the way for a new wave of PPP projects in Poland. With this project, we’ve established a benchmark for a bankable documentation that is also aligned with the procurement laws in Poland. The project is of utmost importance for the Krakow City. It will not only bridge two tram lines together, but also increase the usage of the tramway which is a great step towards a greener transportation system. We’re proud to work with EIB in this project and thank them very much for the immense value they have added at this difficult time of global financial volatility and regional instability.”“KST IV is the largest project in Poland implemented in the Public-Private Partnership formula. Thanks to the use of the PPP formula, not only will a 4.5 km section of the new tram line be built, but also the costs of this investment will be optimized. The development of public transport has been undeniably one of the most important elements of Krakow’s policy for years. The city is constantly looking for new solutions that will allow us to carry out more and more investments. One of such solutions that we found effective and beneficial for Krakow is the Public-Private Partnership model. With the support of the government, we have prepared a project for the construction of a tram line to Mistrzejowice, KST IV, which – based on the PPP scheme – gives us both financial and qualitative benefits” – said the Mayor of Krakow, Prof. Jacek Majchrowski.Promoting cohesion has been a priority for the European Investment Bank since its creation in 1958. In the last long-term budget of the European Union, 2014-2020, the EIB Group supported investments worth around EUR 630 billion in cohesion regions, equivalent to around 16% of the EU’s GDP. In 2021, Poland was the largest beneficiary of financing for cohesion regions by the EIB Group – this financing amounted to EUR 4.5 billion.The European Investment Bank is one of the world’s main financiers of climate action and environmental sustainability globally. As the EU’s climate bank, the EIB is committed to support the European Green Deal, help Europe become the first carbon-neutral continent by 2050 and contribute to the achievement of the United Nations’ Sustainable Development Goals. In Poland, in 2021, EIB loans supporting the green transformation of the Polish economy reached 42% of the total lending of EUR €6.5 bn.Background information:The European Investment Bank (EIB), whose shareholders are the 27 Member States of the European Union, is the financial institution of the EU. It finances key investments that contribute to the achievement of the objectives of the European Union. The bank finances projects in four priority areas – infrastructure, innovation, climate and environment, small and medium-sized enterprises (SMEs). Since 2019, the EIB, as the EU Climate Bank, has committed to allocating at least 50% of its funding (by 2025) to investments that contribute to the fight against climate change.Press contact:Katarzyna Karpiuk, k.karpiuk@ext.eib.org, tel.: +48 22 3100522, tel. kom.: +48 502 355 687Website: http://www.eib.org/press – Press Office: +352 4379 21000 – press@eib.org