Spending money saving money A 4 section Zgorzelec

Spending money, saving money A 4 section Zgorzelec – Krzyżowa business case Monika Milwicz EU Projects Department

Goals of motorway construction: • Cohesion of European TENT network (all motorways in Poland are part of TENT) • Shorter travel times • Improved road safty

A 4 Motorway Basic information on A 4 Motorway: Part of 3 rd TENT corridor Part of E 40; Ostenda (Brusselss_ Aachen – Koln – Dresden – Wrocław – Kraków - Kijev

A 4 Motorway; section Zgorzelec - Krzyżowa Basic information on A 4 Motorway; section Zgorzelec – Krzyżowa: • Length – 51, 4 km • Number of motorway junctions – 4 • Designed speed – 120 km/h • Cement concrete pavement • Number of carriageways – 2 • Number of traffic lanes – 2 x 2 (target 2 x 3) • Maximum axle load – 115 k. N

Short history of construction section Zgorzelec - Krzyżowa The history of A 4 section Zgorzelec - Krzyżowa construction: 1930 s – Preliminary design and preparation work. (earth works for German Wrocław – Dresden motorway still exist) 1997 – Preliminary design completed 1998 – Administrative decisions on the motorway route 2005 – Final administrative decision on the motorway route 2007 – Environmental impact study approval 2007 – Construction permit 2007 – 2009 Construction 14/08/2009 Grand opening

Project 2 projects implemented with EU co-financing 2002/PL/16/P/PA/007 Development of the project: Construction of A 4 motorway; section Zgorzelec – Krzyżowa Project budget according to the Financing Memorandum: 6 625 000 EURO Cohesion Fund contribution: 4 968 750 EURO 2004/PL/16/P/PT/004 Construction of Ar motorway; section Zgorzelec – Krzyżowa Project budget according to the Financing Memorandum: 317 567 000 Euro Cohesion Fund contribution: 252 040 940 EURO

Costs Project costs • Study and analyses - 8 000 EURO • Land acquisition – 6 500 000 EURO • Works – 334 000 EURO • Management and supervision – 6 000 EURO TOTAL: 354 000 EURO

Costs Economical costs • Traffic jam on the existing national road number 4 (DK 4) • Accidents (only in 2006 – 2008 there were 100 accidents with 27 killed and 124 injured)

Benefits Project benefits according to the feasibility study: • Savings in vehicle operating costs • Savings of time • Savings due to lower accident frequency • Management and supervision

Benefits Results of economic analyse: Pessimistic scenario: NPV – 452. 000, 00 EURO (8%) IRR- 22, 4% Optimistic scenario: NPV – 1. 196. 000, 00 EURO (8%) IRR – 39, 3%

Verified Benefits of the new motorway construction 17 500 000 EURO per year The economic benefits include: • savings on fuel and vehicle maintenance – 5 700 000 EURO • savings on time of freeway users – 9 100 000 EURO • savings on traffic accidents costs – 400 000 EURO • cost on emissions + 100 000 EURO

Spending money – Saving money Spending money: Bad menagement argument by the Cmmision: - cost over-runs on the PA/007 project preparation around 800 000 EURO - cost over-runs on the PT/004 (construction of motorwa) around 30 000 EURO Saving money: (and time) -17 500 000 EURO per year – total economical savings - shorten time of journey – to 30 minute-drive

Thank you

Thank you Monika Milwicz mmilwicz@gddkia. gov. pl +48 22 375 88 12