The Polish government has plans to invest approximately PLN 7.5 billion in modernizing Polish rail and purchase of a rolling stock before 2020 within the takeover program of Regional Polish State Railways by local governments. PLN 3 billion from this amount shall be used by 2015, Steel Guru informed.
Cezary Grabarczyk Polish Minister of Infrastructure has informed that the financial means will be provided by the Sectoral Operational Program Transport Structural Fund, state budget and regional operational programs. He added that "One of ministry’s targets is to hand the stations over to local authorities. By donating PLN 2.16 billion to PKP PR, the ministry is lowering the company’s losses to PLN 1.188 billion."
An amendment to the law on commercialization, conversion and privatization of Polish State Railways was passed in April 2008. It does account for state subsidies.
It may be noted that the 5th Province Chairmen’s Assembly, who met at the end of September 2008, had decided that the takeover of Regional Polish State Railways by local governments would be possible if the local authorities acquire PLN 7.4 billion for modernizing Polish rail and acquiring rolling stock in 2009-2020 and would cover the PLN 1.18 losses shown on the company’s balance sheet. The next Assembly is to take place after October 20th 2008 in Kraków.
The new owners should take over PKP PR on December 1st 2008. Then the local government will be wholly responsible for the organization, performance and financing the railways in particular regions. The conveyance of shares is in line with the government strategy on railway transport till 2013 adopted over a year ago. Prior to that, reduction of the company’s liabilities of PLN 2 billion caused by the past unprofitable regional connections must take place.











