1. Spending money, saving money A4 section Zgorzelec – Krzyżowa business case Monika Milwicz EU Projects Department

2. 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

3. A4 Motorway Basic information on A4 Motorway: Part of 3rd TENT corridor Part of E40; Ostenda (Brusselss_ - Aachen – Koln – Dresden – Wrocław – Kraków - Kijev

4. 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

5. 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

6. Project 2 projects implemented with EU co-financing 2002/PL/16/P/PA/007 Development of the project: Construction of A4 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

7. 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

8. 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)

9. 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

10. 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%

11. 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

12. 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

13. Thank you

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