Spending money, saving money

A4 section Zgorzelec – Krzyżowa business case

Monika Milwicz

EU Projects Department

Goals of motorway construction

Goals of motorway construction:

•Cohesion of European TENT network (all motorways in Poland are part of TENT)

•Shorter travel times

•Improved road safty

A4 Motorway

Basic information on A4 Motorway:

Part of 3rd TENT corridor

Part of E40; Ostenda (Brusselss_ -

Aachen – Koln – Dresden – Wrocław – Kraków - Kijev

A4 Motorway; section Zgorzelec - Krzyżowa

Basic information on A4 Motorway; section Zgorzelec – Krzyżowa:

•Length – 51,4 km

•Number of motorway junctions – 4

•Designed speed – 120km/h

•Cement concrete pavement

•Number of carriageways – 2

•Number of traffic lanes – 2x2 (target 2x3)

•Maximum axle load – 115kN

Short history of construction section Zgorzelec - Krzyżowa

The history of A4 section Zgorzelec - Krzyżowa construction:

1930s – 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/007Development of the project: Construction of A4 motorway; section Zgorzelec – KrzyżowaProject budget according to the Financing Memorandum: 6 625 000 EUROCohesion Fund contribution: 4 968 750 EURO

2004/PL/16/P/PT/004Construction of Ar motorway; section Zgorzelec – KrzyżowaProject budget according to the Financing Memorandum:317 567 000 EuroCohesion Fund contribution: 252 040 940 EURO

Costs

Project costs

•Study and analyses - 8 000 000 EURO

•Land acquisition – 6 500 000 EURO

•Works – 334 000 000 EURO

•Management and supervision – 6 000 000 EURO

TOTAL: 354 000 000 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 – 452.000.000,00 EURO (8%)

IRR- 22,4%

Optimistic scenario:

NPV – 1.196.000.000,00 EURO (8%)

IRR – 39,3%

Verified Benefits

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 30 000 000 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 Milwiczmmilwicz@gddkia.gov.pl+48 22 375 88 12