Construction news

THE MOTORWAY TO ŚWIECKO ALREADY OPEN!

13.01.2012 - 10:16

THE MOTORWAY TO ŚWIECKO ALREADY OPEN!

• On 1 December 2011 Poland became connected to the European motorways network
• The section was into service almost six months prior to the deadline
• Until 21 May 2012 the trip in A2 Świecko – Nowy Tomyśl section will be untolled
• The section construction costs amounts to almost PLN 6 milliard (EUR 1.3 milliard), of which 25 per cent was earmarked for natural environment protection
• The section is performed in durable, modern concrete technology
• The project is co-financed by the European Investment Bank and the consortium of 11 Polish and European banks
• The project is the Poland’s first and the largest implemented in the scope of Public-Private Partnership
• With 255 km of the modern A2 motorway, AWSA is the concessionaire which built the longest motorway section in Poland

On 1 December just after midnight Autostrada Wielkopolska II (AWSA)  opened the A2 Motorway Nowy Tomyśl – Świecko section to public traffic. By the same act, almost six months prior to the scheduled completion date, the longest and the most modern Polish motorway connected to the European motorways network. Until 21 May 2012 the new 106 km section will remain untolled. The almost PLN 6 milliard project is the first and the largest project implemented in the scope of Public-Private Partnership in Poland, and one of the largest infrastructural projects currently under implementation in Europe.

The new A2 motorway section that was put into operation counts among the most strategic parts of the motorway construction plan in Poland. By directly connecting to the German motorways network it became the key transport route between Poland and Western Europe. The newly opened section connecting to the A12 German motorway (Berlin – Frankfurt am Main) in Świecko forms a part of the strategic European transport route in the Berlin – Warsaw – Mińsk – Moscow line.

It is a great success of the Poles, including hundreds of people, companies and institutions, who have consequently and professionally supported the realization of a dream that we had almost 20 years ago. Connecting the Wielkopolska Province and the whole country via the supermodern motorway with the rest of Europe is the final point in the important stage of the transformation process. The A2 motorway will boost the economic development of its transit regions and open the door for foreign tourists and investors. This motorway is also creating a new standard for implementation of very complex international projects, which are implemented long before their deadlines and within their budgets. We performed our task reliably for the benefit of the generations to come, says Mr Jan Kulczyk, the Chairman of the AWSA Supervisory Board.

The construction project of the section connecting Świecko and Nowy Tomyśl, which was carried out in the “PPP” system, clearly illustrates the ambitious plans of Meridiam Infrastructure, which is a long-term investor operating across the whole Europe. Our aim is to develop sustainable infrastructure, having in mind the improvement of the social living standard via a close and sustained partnership with the government sector. Poland is attractive for long-term investors because of its substantial infrastructural needs resulting from the positive dynamics in its economy, which makes it the key strategic market for Meridiam Infrastructure. The completion of the A2 motorway final section proves that the public sector is able to carry out infrastructural projects within deadlines and in a cost-efficient way, in good cooperation with such experts in that subjects like Meridiam, informs Mr Thierry Deau, Partner and CEO of Meridiam Infrastructure.

The 105.6 km long section opened to traffic by Autostrada Wielkopolska II was built in 866 days for the amount of PLN 6 milliard (EUR 1.3 milliard) It became the programme flag project performed in Public-Private Partnership system which proved efficient as evidenced by the fact of opening that unique, state-of-the-art motorway section in Poland almost six months prior to the planned completion date. The successful completion was made possible due to good management and co-operation between the public and private party to the complex project.

The project success also results from the good co-operation of the AWSA II shareholders (Kulczyk Holding, Meridiam, Strabag, KWM Investment), and also the parties co-financing the project: the European Investment Bank and the consortium of 11 commercial Polish and European banks.

In the construction of the new A2 section the modern concrete technology was used to ensure the highest currently attainable pavement fatigue life. Moreover, the technological challenge consisted in performing the project with utmost care for natural environment, as the 85% of the section to the German border crosses forest areas, including the sites protected under Natura 2000 programme. Already in the design phase, Autostrada Wielkopolska adopted all European environmental standards, as a result the new section counts among the most pro-ecological infrastructural projects in Europe. The expenses related to the environmental protection constituted 25% of the total project costs and were earmarked, without limitation, for the construction of about 200 crossings and culverts for large and small animals.

‘In our estimation, the project has been implemented professionally, in compliance with the highest environmental standards’,  said Mr Piers Vickers, representative of the European Investment Bank.

Completing the A2 motorway section connecting Świecko and Nowy Tomyśl is the last stage of the project of constructing the concessional section of the A2 motorway, carried out by the Autostrada Wielkopolska company. Overall we have built 255 km of that modern motorway, so we are the biggest concessionaire in Poland to have built such a long section. The investment is the largest infrastructural as well as environmental project in Europe as every fourth zloty spent was allocated for environmental protection. The perfectly smooth cooperation between the concessionaire and the main contractor has enabled us to open the motorway as soon as half a year before the deadline provided in the agreement with the state authorities, says Mr Andrzej Patalas, the CEO of AWSA.

 

ADDITIONAL INFORMATION      


Motorway strengthens the region

The A2 Motorway will have a significant impact on the development of the project’s closest neighbours, including the communes and the districts in the Wielkopolska and Lubuskie voivodship.
Advantages for regions:
• Creating new workplaces: each motorway kilometer is assumed to create 88 new workplaces, as a result the new A2 section will bring over 9 thousand jobs to the regions;
• Increasing the price of land next to the motorway;
• Increasing foreign tourist traffic for business, sight seeing and entertainment purposes;
• Increasing the regions’ touristic attractiveness;
• Increasing the number of companies directly related to the motorway presence;
• Profiting from cash generated in the region due to the motorway presence;
• Reducing traffic load and improving safety in national and local roads.

„The process of building the motorway and the motorway interchanges has a material impact on the real property market. Due to the increased attractiveness of the land earmarked for business development around the motorway interchanges (including the construction of accommodation and catering facilities, entertainment parks etc.), the value of land earmarked for other, less lucrative purposes, will increase as well. The interest in real property earmarked for tourism will be reflected in investment processes, and the multifunctional nature of the projects trigger multilateral development of the area. This is because the existing tourist base is totally inadapted, quantity and quality wise, to the expected demand. The closeness of the motorway will surely attract investors, cause employment increase and trigger multiplier effects” said prof. Franciszek Gołembski, head of the Faculty of European Studies at the Warsaw University.
A2: fast and safe

The research of the Autonomous Section for Economics of the Road and Bridge Research shows that 1000 km of motorways may reduce the number of death casualties by 200, and the number of persons hurt in road accidents by 1300. At present over 30 persons die in the national road no 92 parallel to the motorway each year. Once the traffic load is reduced, the risk level will go down, meaning smaller number of road accidents and lower medical treatment expenses. According to the World Bank, as a result of road accidents the Polish economy loses about PLN 30 – 40 milliard annually. It is assumed that the limiting the accidents rate in a 100 km motorway section may bring over PLN 30 million savings to the state budget.


Environment friendly motorway

The A2 Motorway Świecko – Nowy Tomyśl belongs to the largest currently implemented ecological projects in Europe.
• 25 per cent of the budget correspond to environmental protection costs;
• 85 per cent of the motorway to the German border crosses forest areas, including the sites protected under the Natura 2000 programme;
• Along the 106 kilometres section almost 200 crossings and culverts for large and small animals were built;
• Every 2 kilometres of the motorway emergency roadside telephones and environmental protection equipment are placed;
• The protection programme includes the monitoring of plant and animal habitats, ornithological monitoring of bat breeding grounds and beaver habitats, ant-hills protection and amphibians and reptiles rescue programme.

PPP flag project

The project of Autostrada Wielkopolska is the first and the largest Polish project implemented in the PPP system:
• Infrastructural projects performed in the PPP system allow for higher efficiency owing to the involvement of private sector. The Autostrada Wielkopolska project is put into operation before the planned completion date, and during the project implementation no disturbances or irregularities were observed;
• 62% of the project value was financed with the credit granted by the European Investment Bank; such EIB involvement in the infrastructural project has been the highest ever in Poland;
• About 26% of the project value was financed with credits granted by 11 foreign and Polish commercial banks (this is about EUR 400 million);
• The Concessionaire covers 12% of total performance costs (about PLN 186 million).

Best technology

The state-of-the-art concrete technology was used in building the A2 motorway Świecko – Nowy Tomyśl, to guarantee the quality meeting the highest standards for road and motorways construction in the European Union countries:

• A2 Świecko – Nowy Tomyśl is the most modern and one of the longest motorway sections in Poland built using the concrete technology;
• Specially designed concrete pavement is about 30 cm thick;
• Over 1 million cubic metres of concrete were used to build the 106 km section;
• The total area of the placed concrete amounts to over 2 mln square metres, the area of almost 300 football fields;
• Concrete production plant was built near Nowy Tomyśl especially for the project, to enable road workers working in shifts system to place 1 km of the motorway per day in favourable weather conditions;
• German machines adapted to working exclusively on motorways placed concrete on the whole width of a motorway carriageway, on both lanes simultaneously.

Motorways and express roads in Poland

• According to the Ministry of Infrastructure report of 8 November this year, 1380 km of national roads are currently under construction and modification;
• Works on the construction of new routes mainly concern the motorways (643 km), express roads (631 km)  and by-passes (86 km). The 21 km of the existing network is currently under modification;
• The total of 29 motorway sections, 43 express roads sections and 12 by-passes in national roads are under construction;
• As indicated in the National Roads Construction Plan for the years 2011-2015 (January 2011) as at 15 November 2010, 1166.5 km of national roads, including 183.5 km of motorways, 293.1 km of express roads, 199.4 km of by-passes and 490.5 km of major modifications were put into service;
• From 16 November 2007 until 5 October 2011 agreements were concluded for 1950.7 km of motorways, express roads and by-passes. Of the 36 motorway construction projects implemented (totalling 783.6 km), 615.3 km were built in the traditional system, and 168.3 km in the Public-Private Partnership system. The agreements concluded for express roads, by-passes and major road modifications concerned 97 projects covering 1167.1 km.

Project schedule


• 1993 – registerring Autostrada Wielkopolska SA company to build and operate the first Polish toll motorway from Świecko to Konin;
• 1995 – Participating in, and winning of, the two level international tender for construction and operation of the A2 toll motorway from Świecko to Stryków;
• 1997 – executing the Concession Agreement and further negotiating with the government to determine the project financial terms; execution of further 4 annexes to the Concession Agreement constituting the basis for approving and arranging the financing.
• 1998 – excluding from the scope of financing and construction of the 13.3 km section of the Poznań by-pass (financed from Phare grant, credit from the European Investment Bank, and funds from the State budget. The agreement was reached with the government to the effect that AWSA will build and operate the A2 motorway from Świecko to Konin (the 255 km project was divided into phases:
- construction of the motorway in Konin – Nowy Tomyśl section (149.4 km)
-  construction of the motorway in Nowy Tomyśl – Świecko  section (105.6 km);
• 2000 – executing the project and financing agreements (Financial Close) constituting the integral part of the Concession Agreement concluded with the government, defining the costs of performing the A2 in the Nowy Tomyśl – Poznań section, of which the total cost at the level of EUR 875 million (73 % i.e. EUR 637.5 million constitute direct costs of construction and design). This was a fixed lumpsum price for the complete “turnkey project” consisting in the fully equipped motorway prepared for operation, As the concessionaire, AWSA is not the A2 owner, but will perform its rights and obligations under the Concession Agreement during 40 years, that is until the year 2037. The land on which the motorway is built will remain the State Treasury property at all times, and the company pays a lease rent amounting to PLN 67 million each year;
• 2002 - Putting the A2 section I Konin – Września (47,7 km) into operation – by upgrading of the section;
• 2003 - Taking over the maintenance of the Poznań By-pass Komorniki – Krzesiny (13.3 km); an untolled section for drivers who do not drive the A2 motorway in transit;
• 2003 - Putting the A2 section II Września – Poznań into operation (37.5 km)
• 2004 – Putting the A2 section III Poznań – Nowy Tomyśl into operation (50.4 km)
• 2008 – Concluding with the government (MI) of the so-called business terms (MI) for the construction and operation of the A2 motorway section from Nowy Tomyśl to Świecko, which assumed executing financing agreements in March 2009 (the limit date deferred to the end of June 2009);
• 2009 -  Forming Autostrada Wielkopolska II SA, a special purpose company (related with AWSA), to build and operate the A2 motorway Świecko – Nowy Tomyśl (105.6 km) as required by the government party,;
• 2009 – Executing the project and financing agreements concerning the construction and operation of the A2 motorway Nowy Tomyśl – Świecko (Financial Close);
• 2009 – commencing the construction of A2 to Świecko;
• 2011 – 1 December – opening of the A2 Motorway Nowy Tomyśl-Świecko to traffic;


AWSA
AWSA II is a special purpose company related to AWSA and founded to build and operate the A2 Motorway Świecko – Nowy Tomyśl. The company shareholders comprise: Kulczyk Holding S.A.(40%), Meridiam A2 West S.a.r.l. (40%), Strabag AG (10%) and KWM Investment GmbH (10%). Mr Andrzej Patalas holds the position of the President of the Management Board.

Shareholders:

• Kulczyk Holding S.A. (40%), registered and seated in Warsaw, was founded by dr Jan Kulczyk in 1991. In 1993 as a result of Kulczyk Holding S.A development, Autostrada Wielkopolska was formed and became the first private company in Poland to be granted a concession for construction and operation of toll motorways. In 2007 in the reorganisation of the dynamically developing group, Kulczyk Investments seated in Luxemburg was formed. At present the major Kulczyk Investments projects are related to raw materials, power and infrastructural sectors. The Company holds offices in London, Kiev and Dubai, and the Kulczyk Holding headquarters in Warsaw.

• Meridiam A2 West S.a.r.l. (40%), also holding 93% of the subordinated loans value. Meridiam Infrastructure is the leading investor in the crucial PPP projects, holding thorough experience both in Europe and in the North America. Meridiam manages three funds in the European and North American territory, of the total pool value of EUR 2 miliard. Meridiam suceeded in attracting long term investors such as the European Bank for Reconstruction and Development, the European Investment Bank and worldwide insurance companies and pension funds. The company participates both in capital investments, and the mezzanine-type investments in the field of transport, public infrastructure and ecological projects in the PPP system. Meridiam achieved financial close of fourteen projects in the transport and public infrastructure sector in Ireland, Austria, Poland, Great Britain, France, Slovakia, Germany, Finland, USA and Canada. Considerable funds were earmarked for investment in Poland and Central – Eastern Europe, as a result Meridiam became the largest investor in the Polish PPP projects, with the capital outlays totalling almost EUR 300 million.

• KWM Investment GmbH (10%)

• Strabag AG (10%) - Strabag SE corporation runs business activity almost all over the world, as it has been active in the construction market for over 17 years. It counts among the largest construction companies in Europe and is a leader in the German and Austrian market and in Central and Eastern Europe. In Poland the company has been in business since 1985. Strabag currently employs about 6600 persons, and has been systematically increasing the number of field branches. The company major scope of business includes general construction, civil engineering and infrastructural construction (such as roads, railway infrastructure etc). In Poland Strabag consists in brand names such as Zublin, Dywidag, Polski Asfalt and Pl-Bitunova.

Interesting figures
• EUR 12.2 mln – is a cost of building 1 kilometre of a fully equipped motorway;
• Over 1 mln m3 of concrete was used to build a new A2 section;
• Over 2 mln m2 is the area of placed concrete (area of 300 football fields);
• 88 new workplaces generated by each motorway kilometre


To see photos from the ceremony, please go to our gallery.