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EU to subsidise a section of the CPK railway line between Katowice and Ostrava. The rail link between Jastrzębie-Zdrój and the national railway network to be re-established.

The EU has agreed to grant the CPK Company nearly €2,000,000 for preliminary works on the construction of a 30-kilometre stretch of railway line near the Czech border, enabling the restoration of a railway connection to Jastrzębie-Zdrój – currently Poland’s largest town without a rail connection. The line will form part of the Katowice-Ostrava route, which is scheduled to be constructed by the CPK in collaboration with the Czech rail operator SŽDC.

The subsidy granted to the CPK (in the amount of €1,750,000) will fund preliminary works on the construction of a railway route from the Polish-Czech border to Jastrzębie-Zdrój and its connection to the existing Chybie-Żory line. The prospective 30-kilometre-long section will constitute the missing link of the TEN-T Trans-European Transport Network. Works will also include proposing a route for the new rail corridor fromJastrzębie Zdrój to Katowice.

The project will not only improve the railway connection between Poland and neighbouring countries but will also enable connecting Jastrzębie-Zdrój – a town of nearly 90,000 inhabitants andcurrently Poland’s largest town without access to rail linesto the national long-distance railway route system

underlined Mikołaj Wild, Deputy Minister of Infrastructure (and a Government Representative for the CPK).

The CPK applied for funding under the Connecting Europe Facility(CEF) in late April. Funds from the facility are used to finance infrastructural projects in EU member states.

Obtaining financial aid under the Connecting Europe Facility is excellent news given the tough competition in the form of projects submitted by other EU member states. It also serves as proof that there is demand for this project. This was the first application for funding for the CPK Railway Programme under the CEF

stated Piotr Malepszak, acting CEO of the CPK.

64 applications from various EU member states were submitted for the competition as part of the ‘Transport’ category of the CEF, of which 56 (including the application submitted by the CPK) concerned investments into transborder sections as part of the TENT-T network – their total value amounted to €227,000,000. The commission ultimately selected 31 projects from this category, with the EU allocating €117,000,000 in funding for the projects. The decision requires further approval from the European Commission.

Since April, the CPK and Czech rail operator SŽDC have been collaborating as part of preparations for the construction of new railway lines. Collaboration involves the coordination of the preparation and construction process of the new transborder Katowice – Ostrava line as well as the Wrocław – Prague line. Both parties have agreed to work together to determine the detailed route of the new lines as well as their detailed technical parameters.

Construction of a new line in the Jastrzębie-Zdrój area, partially funded under the CEF, is only part of the CPK Railway Programme in the Śląsk and Małopolska regions. The main project to be implemented in the area is the Małopolska-Śląsk Hub (Węzeł Małopolsko-Śląski – WMŚ), which will act as a new transfer hub and long-distance stop for the towns of Jaworzno, Chrzanów and Olkusz.

How will passengers benefit from WMŚ? Construction of the hub and connecting lines will reduce the fastest travelling times fromKrakówto Katowice to 35 minutes. Thanks to the hub, trips from Warsaw to Katowice will take approximately 1 hour 35 minutes and from trips from Warsaw to Kraków will take 1 hour 45 minutes. The project will also result in a significant increase in the number of trains passing through Katowice and Kraków.

The new track layout will also enable direct routes from Katowice via Sosnowiec and Dąbrowa Górnicza, WMŚ and Olkusz to Kraków to be opened, which will help redress certain past shortcomings – as a result of which Sosnowiec (over 200,000 inhabitants), Dąbrowa Górnicza (120,000 inhabitants) and Będzin (60,000 inhabitants) lack a railway connection with Kraków, which is located 65 kilometres away.

Implementation of the CPK Railway Programme will also help to reduce the duration of train trips abroad – to the Czech Republic but also to Hungary and Slovakia. Plans include the construction of the V4 transborder high-speed rail route (Budapest – Bratislava – Brno – Warsaw), which will pass through Ostrava, Jastrzębie-Zdrój (on the new section to be subsidised under the CEF), the area of Rybnik and Katowice and further on through WMŚ and the existing Central Rail Line and will terminate at the CPK.

The CPK Railway Programme contemplates the construction of over 1,600 kilometres of new railway lines (known as rail ‘spokes’), leading to the CPK and Warsaw from 10 directions. As part of the zero stage, which is scheduled to be completed prior to the CPK Airport obtaining operational capability, a 140-kilometre-long new rail link between Warsaw – CPK – Łódź will be constructed, enabling trains to reach speeds of up to 250 km/h. The estimated travel time from Warsaw to the CPK will be 15 minutes and from Łódź to the CPK 25 minutes.

Each of the 10 ‘spokes’ leading to the CPK will comprise new sections of tracks and renovated or modernised fragments of the existing infrastructure. The CPK Company will be responsible for the construction of the former, while PKP Polish Railways will be responsible for the modernisation of the latter.

The Baranów Municipality Council adopted a resolution on cooperation with the municipalities of Wiskitki and Teresin yesterday in order to determine the rules and select the members of the Social Council for the CPK. On 28 February, a similar resolution was adopted by the Wiskitki municipality and on 4 March – by the Teresin municipality. The resolutions were adopted unanimously.

An appendix to the resolutions was the Rules of Procedure of the Social Council, the content of which was developed as part of the dialogue between the Plenipotentiary for the CPK and the Management Board of the CPK company and representatives of local governments and NGOs from the municipalities of Baranów, Teresin and Wiskitki.

The Social Council will advise Mikołaj Wild, the Government Plenipotentiary for the CPK and the CPK special purpose vehicle managed by Piotr Malepszak on matters relevant to local communities, including on how to acquire real properties for the construction of the CPK Airport. The Council will assist in holding the dialogue with local communities first at the stage of preparations and then also during the implementation of the investment.

Today’s voting is a milestone in preparation for the CPK-related investments. The establishment of the Social Council was and is a priority for me. I am grateful to the heads of municipalities for constructive participation in several months’ talks and the councils of municipalities for the responsible decision. Now has come the time for the election to the Council, followed by its inaugural meeting, which may take place still inMarch.

MIKOŁAJ WILD, THE DEPUTY MINISTER OF INFRASTRUCTURE.

The Social Council will act as an advisory and recommendation body during the preparation and implementation of the investment. It will also help, among others, to plan and conduct an information campaign for the residents of the municipalities of Baranów, Teresin and Wiskitki.

We do count on the vote of the Social Council, among others, in matters related to the acquisition of real properties. I am convinced that cooperation with the Council will enable us to plan the related activities in a responsible manner that takes into account the expectations of the residents. One of the important tasks of the Council will be to support the company at the stage of developing the corporate social responsibility programme whose beneficiaries will be residents of Baranów, Teresin and Wiskitki.

PIOTR MALEPSZAK, ACTING AS THE PRESIDENT OF THE CPK COMPANY

 Members of the 15-person Social Council will select councils of the following municipalities from their composition: Baranów, Teresin and Wiskitki at the next meetings to be held in March. According to the rules of procedure, these will include representatives of farmers, non-agricultural residents, entrepreneurs, pensioners and local governments of these municipalities.

Rafał Garpiel, an expert with experience in the field of social dialogue with the participation of investors, local authorities, local communities and NGOs, will act as the coordinator of the Social Council and has been appointed by the Government Plenipotentiary for the CPK and the management board of the special purpose vehicle. The coordinator will attend the meetings of the Council and is in charge of the exchange of information between the Council, the Government Plenipotentiary for the CPK and the company. The Chairperson, who will be elected by the Council, shall prepare a list of matters to be discussed at each meeting of the Council, taking into account the proposals of the members of the Council and the coordinator.

As the government concept of the CPK construction shows, the costs related to the implementation of the investment are estimated to be at the level of up to PLN 35 billion, including PLN 16-19 billion for the implementation of the airport part, PLN 8-9 billion for the railway part and PLN 7 billion for the road part.

According to the estimates of the Ministry of Infrastructure, the construction of the CPK will result in creation of a total of almost 150 thousand jobs, including approx. 40 thousand in the direct vicinity of the transfer hub and approx. 110 thousand in the branches of the economy related to the investment. The construction of the hub will translate into a total increase in budget revenues in the amount of PLN 2.4 billion per year and PLN 4.7 billion on account of the increase in GDP.

The purpose of an environmental survey is to identify any protected, rare or endangered components of the environment in areas earmarked for future capital works projects. The results of environmental surveys are one of the constituent parts that need to be undertaken as part of the environmental procedure, which precedes the issuance of a construction permit.

The CPK enterprise intends to choose six contractors as a result of the ongoing procedure, with whom it will enter into five-year framework contracts this autumn. The selected companies will then compete for partial contracts awarded by the enterprise. Specific contracts for environmental surveys as part of the CPK Railway Programme will be awarded to the company who offers the best price.

Mikołaj Wild, a Government Representative for the CPK, stresses that an environmental survey will first be carried out in the area where the Warsaw – CPK – Łódź high-speed rail line is scheduled for construction. Future surveys will be conducted depending on existing needs related to capital works projects (in line with the progress in works related to preparations for the construction of additional lines).

Environmental surveys are the first call for tenders related to the railway component organised by the enterprise. Our objective as part of the so-called stage zero, scheduled to be completed prior to the opening of the CPK Airport, is to construct 140 kilometres of new railway lines, primarily the Warsaw – CPK – Łódź line. Ultimately, we plan to construct 1,600 kilometres of new lines connecting the CPK and Warsaw with 10 various directions

said Piotr Malepszak, acting CEO of the CPK.

The CPK enterprise estimates that the total maximum area subject to environmental surveys to be conducted under the contract is 220,000 hectares. Survey areas under a single separate contract will be at least 900 hectares and may be located anywhere across the country. During the first stage of the survey, contractors will carry out studies and, later, on-field surveys and environmental analyses.

The results of environmental surveys will be attached to the environmental impact report, which will be submitted to the Regional Environmental Protection Authority (to the Head of the Competent) together with an application for the issuance of an environmental permit. Preparations for the project will also involve obtaining a decision on the location of the project and, later, on a construction permit.

Each of the 10 railway ‘spokes’ leading to the CPK will comprise new sections of the rail network to be constructed by the CPK enterprise as well as repaired or modernised components of the existing infrastructure administrated by PKP PLK. On the 29th of April this year, the government adopted a regulation pursuant to which each of the new sections of rail lines that trains will travel on to the CPK and Warsaw was included in the list of railway lines of national significance.

The total length of railway lines in Poland is currently over 19,000 kilometres. Over 5,000 kilometres of railway has been ‘retired’ from service since the early 1990s. New lines are required as no large-scale projects involving the construction of railway routes have been undertaken in Poland since the 1980s, when the Wide Gauge Steel Mill Line was completed and the Central Railway Line before that. The CPK Programme is the first comprehensive programme for the construction of a new rail infrastructure since that time.

In July, the Polish Prime Minister, Mateusz Morawiecki, issued a decision to grant the CPK enterprise additional funding in the amount of 300,000,000 PLN as a result of the State Treasury’s acquisition of additional shares in the enterprise. In the government’s opinion, the CPK is not only a project of strategic importance to Poland’s development, but also a profitable investment. According to a report drawn up by PwC in April of this year, the growth potential of the Polish airline market is one of the largest in Europe and the construction of a hub near Warsaw is viable based on factors such as the projected traffic and expected rate of return. According to an analysis by Baker McKenzie and Polityka Insight from May of this year, the construction of the CPK may result in a growth of Poland’s GDP by 4% to 7%.

the Marshal of the Kujawsko-Pomorskie Voivodeship – Piotr Całbecki and the Vice-Voivode of the Kujawsko-Pomorskie Voivodeship – Józef Ramlau. In the course of the meeting, the government investor presented the progress of preparatory works for construction of railway lines in the area of the Kujawsko-Pomorskie Voivodeship, discussing the first concept as part of the started process of the so-called routing.

As part of the CPK Programme in the Kujawsko-Pomorskie Voivodeship, construction of 168 km of new lines is planned. According to the assumptions of the investor, 92% of the voivodeship residents will be able to reach high-speed train stations in lessthan onehour, which will significantly improve the communication availability of the region.

In the Kujawsko-Pomorskie Voivodeship, lines No. 5 and 242 will be constructed on the CPK – Grudziądz – Warlubieroute, constituting a fragment of spoke No. 1: Warsaw – CPK – Tricity. Moreover, in the western part of the voivodeship, line No. 400: Nakło nad NoteciąZłotów – Okonek will be constructed, which is a fragment of the branch of spoke No. 1 towards Koszalin and Kołobrzeg.

The routing version presented during the meeting assumes that at the operating speed of 250 km/h it will be possible to achieve the travel time of 2 hours 5 minutes from Bydgoszcz to Warsaw (today, the shortest travel on this route takes 3 hours and 30 minutes), from Bydgoszcz to the CPK: 1 hours and 50 minutes and to Kołobrzeg: 2 hours and 10 minutes (currently the shortest time is 3 hours and 50 minutes).

From Toruń, passengers will be able to reach Warsaw in 1 hour and 30 minutes, the CPK – in 1 hour and 15 minutes and Kołobrzegin 2 hoursand 45 minutes.

As emphasized by Mikołaj Wild, the Government Plenipotentiary for the CPK, the Tuesday meeting in Toruń concluded the first stage of the Regional Strategic Consultations, i.e. discussions with representatives of government authorities, voivodeship self-governments and town authorities.

We will carefully analyze the comments made during the meetings. We will take them into account when creating the route of new railway lines as part of the CPK Programme

ADDS MIKOŁAJ WILD

The consultations are an important tool for us to plan and guarantee that the route of new railway lines will be as compliant as possible with the expectations of all interested entities. Therefore, we intend to continue them as part of the 2nd stage of consultations planned in subsequent voivodeships

SAYS PIOTR MALEPSZAK, ACTING AS THE PRESIDENT OF CPK

CPK is currently planning the 2nd stage of the Regional Strategic Consultations to be held in September in the following voivodeships: Śląskie, Małopolskie, Świętokrzyskie, Podkarpackie, Lubelskie, Warmińsko-Mazurskie and Podlaskie. After their completion, the company shall carry out a location analysis for each line. The next stage will be additional local consultations on specific technical solutions proposed by the CPK. The voice of local communities will also be taken into account when issuing the environmental decision, i.e. the document ultimately determining the route of a line.

Since the beginning of July, the CPK company has organized – apart from Kujawsko-Pomorskie Voivodeship – consultations in the capital cities of four other voivodships:

POZNAŃ

As part of the CPK Programme in the Wielkopolskie Voivodeship, construction of 196 km of new lines is planned. According to the assumptions of the investor, almost two-thirds of the voivodeship residents will be able to reach high-speed train stations in less than one hour, which will significantly improve the communication availability of Wielkopolska.

In the region, first, line No. 85 Warszawa – CPK – Łódź – Kalisz – Poznań will be constructed. This is a task forming a part of High-Speed Rail construction: Warsaw – CPK – Łódź – Poznań / Wrocław, which is called “Y” based on its shape. The assumed operating speed of trains on this section is at least 250 km/h. This is a fragment of the so-called spoke No. 9 as part of the CPK  Programme. Secondly, in Wielkopolska, line No. 400: Nakło nadNotecią – Złotów – Okonek will be constructed, which is an element of spoke No. 1 leading from the CPK through Płock, Toruń and Bydgoszcz towards Koszalin.

The routing version presented during the meeting assumes that at the operating speed of 250 km/h it will be possible to achieve the travel time of 1 hour 5 minutes from Poznań to Łódź (today, the shortest travel on this route takes 3 hours and 20 minutes), to the CPK: 1 hour and 40 minutes and to Warsaw: 1 hour and 55 minutes (currently the shortest time is 2 hours and 50 minutes). From Kalisz, passengers will be able to reach Łódź in 35 minutes, the CPK – in 1 hour and 10 minutes and Warsaw – in 1 hour and 25 minutes.

WARSAW

As part of the CPK Programme in the Mazowieckie Voivodeship, construction of 344 km of new railway lines is planned. The priority investments in the region are two high-speed railway lines: line No. 85: Warsaw – CPK – Łódź – Poznań and line No. 5: CPK – Płock – Grudziądz (Gdańsk). This is a fragment of the so-called spoke No. 1 and spoke No. 9 as part of the CPK Programme. In the north-east of the voivodeship there will also be constructed a new section of line No. 29 from Ostrołęka through Łomża to Giżycko.

The routing version presented during the meeting assumes that at the operating speed of 250 km/h it will be possible to achieve the travel time of 50 minutes from Warsaw to Łódź. (now the shortest time is 1 hour and 21 minutes), to Gdańsk – 2 hours (today a travel by train takes at least 3 hours) and to Poznań – 1 hour and 55 minutes (instead of 3 hours currently). In the next phase of the Programme, the construction of the sections between the CPK, Warka and Radom and Ostrowiec Św. is planned, said sections being fragments of spoke No. 6 from Warsaw and the CPK to Podkarpacie, and the Warsaw Choszczówka – Kątne line, simplifying the route of spoke No. 2 to Warmia. Thanks to the investments, 86% of the voivodeship residents will be able to reach high-speed train stations in less than one hour.

ŁÓDŹ

As part of the CPK Programme in the Łódzkie Voivodeship, 219 km of new lines will be constructed. Two high-speed railway lines will be constructed in the region: line No. 85: Warsaw – CPK – Łódź – Sieradz – Poznań and line No. 87: Sieradz – Wieruszów, forming a part of the Warsaw – Wrocław route, the construction of which was already planned in the 1970s. The communication availability of the region will be significantly improved because, according to the investor’s assumptions, 60% of the voivodeship residents will be able to reach high-speed train stations in less than one hour.

Construction of new lines will enable connection of Łódź to the Polish-wide high-speed rail connection network and will significantly reduce the travel time, e.g. we will reach Poznań in 1 hour and 5 minutes (instead of 3 hours and 20 minutes currently), Warsaw – in 50 minutes (now the shortest time is 1 hour and 21 minutes), Wrocław – in 1 hour (instead 3 hours and 20 minutes currently) and the CPK– in 35 minutes.

WROCŁAW

Within the framework of the CPK Programme, 119 km of new sections will be constructed in the Dolnośląskie Voivodeship, comprising the high-speed railway line Warsaw – Wrocław – Wałbrzych – Polish-Czech border (with a connection to Prague). The routing version presented during the consultations assumes that at the operating speed of 250 km/h it will be possible to achieve the travel time of 45 minutes from Wrocław to Wałbrzych (currently the shortest time is 60 minutes), to Warsaw – 1 hour and 50 minutes (currently, the shortest travel along this route takes 3 hours and 55 minutes), to Prague – 2 hour and 30 minutes (instead of 5 hours currently).

Moreover, thanks to CPK’s investments in this region, up to 82% of the voivodeship residents will be able to reach high-speed train stations in less than one hour, which will significantly improve the communication availability of the Dolnośląskie Voivodeship.

In total, as part of the railway part of the CPK Programme, the construction of over 1,600 km of new lines leading from 10 directions to the CPK and Warsaw is planned. The so-called zero stage, which should be ready before the CPK Airport achieves operational capacity, assumes the construction of 140 km of new lines on the Warsaw – CPK – Łódź route. The completion of the remaining railway investments fits the time horizon until 2040.

Each of the 10 railway “spokes” leading to the CPK will consist of new sections of the network and repaired or modernised parts of the existing infrastructure. For the purpose of construction of this railway system, investment tasks were divided between the following companies: CPK and PKP Polskie Linie Kolejowe. On 29 April this year, the Council of Ministers adopted a Regulation under which each of the new sections of tracks through which trains will get to the CPK and Warsaw was included in the list of railway lines of national importance.

The total length of railway lines in Poland is now over19 thousand km. Since the early 1990s, more than 5 thousand km of the lines have been dismantled. New investments are needed because since the 1980s, when the construction of the Broad-Gauge Metallurgical Railway and previously the Central Trunk Line were completed, no railway tracks have been constructed in Poland on a large scale. The CPK Programme is the first plan for the construction of the new railway infrastructure since then.

The CPK enterprise applied to the Chancellery of the Prime Minister for recapitalisation on the 24th of June of this year. As a result, the relevant contracts for investment and acquisition of shares by the State Treasury were made. Prior to this, the application received a positive assessment from institutions such as the Office of Competition and Consumer Protection and the Office of the Attorney General of the Treasury. “All of these efforts were necessary to ensure that the transaction was made on market terms and to guarantee the utmost protection of the interests of the State Treasury,” explained Mikołaj Wild, a Government Representative for the Construction of the CPK.

A relevant government regulation was required in order to enable the enterprise to apply for recapitalisation. The Minister of Finance signed the regulation on the 18th of June of this year, pursuant to provisions of the State-Owned Property Management Act. According to provisions of this act, shares or rights based on shares in the CPK enterprise owned by the State Treasury cannot be disposed of.

Recapitalisation of the CPK is excellent news for this project that is so important to Poland. The amount of 300,000,000 PLN will enable the CPK enterprise to continue its operations; including by obtaining the arrangements, analyses and documents required to design and construct both the airport and associated railway lines

said Michał Wrona, a member of the Board of Directors of the CPK responsible for financial matters.

Plans of the CPK enterprise for the near future include updating the analyses that precede the stage of arrangements concerning environmental issues and the location of the project as well as the project design stage as part of the CPK Railway Programme in regards to the Warsaw – CPK – Łódź – Poznań/Wrocław high-speed railway line – preparations for the construction of this line were already underway but were suspended in 2011.

Over the past few days, the CPK enterprise has opened a tendering procedure for an environmental survey to be prepared under a framework agreement in respect of so-called spokes i.e. tasks undertaken as part of the CPK Railway Programme.

These procedures are the first of several tendering procedures for the implementation of railway capital works projects which could be funded under the EU’s current perspective. We are also planning to open tendering procedures in respect of geological surveys

said Piotr Malepszak, acting CEO of the CPK responsible for the railway component of the project.

Strategic consultations in respect of the airport component of CPK are ongoing. The Airport Consultative Committee (ACC) – set up by the International Air Transport Association (IATA) in collaboration with the CPK and comprising representatives of airlines who intend to use the prospective airport – commenced its operations yesterday.

Plans for the coming months include choosing a strategic partner – an international entity with experience in implementing projects involving the design, construction and management of transfer hubs. The consultant will be tasked with cooperating with the enterprise on an ongoing basis and providing expert support during every stage of the implementation of the project.

The enterprise is preparing to commission a general (master) plan for the CPK at the start of the coming year which will specify such matters as the projected development of the airport beyond the 10-year horizon, the estimated levels of air traffic, detailed dimensioning of the planned infrastructure, staging of the construction works and a detailed business model of the project.

The Social Council will continue its work as a platform of collaboration and communication between the CPK enterprise and a Government Representative for the CPK on one hand, and the local community (inhabitants of the municipalities of Baranów, Teresin and Wiskitki) on the other. The first meeting of the council took place on the 26th of June of this year.

Another task on the agenda is to secure replacement real properties of various types among the real properties owned by the State Treasury that will meet the needs of residents inhabiting the project area. Identification and analysis of properties managed by institutions such as the State Forest Authority, National Agricultural Support Centre, Military Property Agency and the National Property Resource is currently underway.

The CPK’s share capital previously amounted to 10,000,000 PLN. The funds were expended on items such as creating aspecial purpose vehicle and mobilising it, and on hiring employees e.g. to work on the railway and airport components. The above amount was also used to fund such undertakings as preparing a preliminary concept of the airport (specifying more than 120 components of airport infrastructure), commencing strategic consultations between the CPK and industry partners (infrastructure administrators, utility providers, etc.), dividing capital work-related tasks between the CPK and PKP PLK as part of the CPK Railway Programme (the so-called 10 spokes), commencing Regional Strategic Consultations regarding the route of the Warsaw – CPK– Łódź – Poznań/Wrocław railway line and launching the activities of the Social Council.

The airport component of the CPK project passed the Private Investor Test (PIT), which was carried out by one of the big four consulting companies. The document specified such aspects as the basic parameters of the project and verified economic arguments in favour of the project. The results of the test showed that the construction of the CPK would be profitable for a potential private investor – the expected rate of return exceeded 10%. The PIT shows that construction of the CPK is economically viable and proves its profitability from the point of view of a potential private investor.

The CPK enterprise will allow for the partial funding of the airport component of the CPK by both financial investors (such as investment funds, retirement funds, insurance companies) as well as industry investors (e.g. airport operators or infrastructural funds). The railway component will be funded from the state budget and EU funds, for example under the CEF Programme.

According to a report drawn up by PwC in April of this year, the growth potential of the Polish airline market is one of the largest in Europe and the construction of a hub near Warsaw is viable based on factors such as the projected traffic and expected rate of return. According to an analysis by Baker McKenzie and Polityka Insight from May of this year, the construction of the CPK may result in a growth of Poland’s GDP by 4% to 7%.

According to estimates from the Ministry of Infrastructure, construction of the CPK will create a total of nearly 150,000 jobs, including 40,000 in the immediate vicinity of the transport hub and approximately 110,000 in industries related to the project.

Today, the meeting with representatives of the CPK company was attended, i.a., by Voivode of Wielkopolska Zbigniew Hoffmann, Marshal of the Wielkopolskie Voivodeship Marek Woźniak and Vice President of Poznań Mariusz Wiśniewski. In the course of the meeting, the government investor presented the progress of preparatory works for construction of railway lines in the area of the Wielkopolskie Voivodeship, discussing the first concept as part of the started process of the so-called routing.

As emphasized by Government Plenipotentiary for the CPK Mikołaj Wild, this was the first of the planned meetings as part of the CPK railway investment arrangements with representatives of government authorities, voivodeship self-governments and town authorities.

The CPK concept makes an unusual impression and certainly it can be concluded that it is a civilisational leap. From the perspective of Wielkopolska, it means many changes, mainly in the area of railway infrastructure, which requires multi-level cooperation at different levels of administration. Therefore, such meetings as today are necessary and I am glad that we have successfully taken a substantive approach to the subject despite political differences

SAYS ZBIGNIEW HOFFMANN, THE VOIVODE OF THE WIELKOPOLSKIE VOIVODESHIP

For the City of Poznań, it is important to get acquainted with all analyses relating to the construction of the CPK. The issue of rail connections between the airport and other cities is important. First of all, it is necessary to adapt local and regional public transport to them. We hope that due to changes relating to the construction of the CPK, other investments in railway infrastructure in our region and other parts of Poland will not be affected.

SAYS MARIUSZ WIŚNIEWSKI, THE DEPUTY PRESIDENT OF POZNAŃ

We intend to consult the route of the planned railway lines, discuss transport needs of residents and local environmental conditions. Regional strategic consultations involving representatives of self-governments will be continued and their aim is to determine the optimum route of the lines

SAYS PIOTR MALEPSZAK, ACTING AS THE PRESIDENT OF CPK

As part of regional strategic consultations, the CPK company plans to organize meetings in other voivodeships. Once they are completed, he will carry out a location analysis as part of which the route of the railway lines will be presented. The next stage will be additional local social consultations on specific technical solutions proposed by CPK. What is important, the voice of local communities will also be taken into account when issuing the environmental decision, i.e. the document determining the route of a line.

In the Wielkopolskie Voivodeship, as part of the CPK Programme, the construction of 196 km of new lines is planned. According to the assumptions of the investor, almost two-thirds of the voivodeship residents will be able to reach high-speed train stationsin less than one hour, which will significantly improve the communication availability of Wielkopolska.

In Wielkopolska, as part of the CPK Programme, first, line No. 85Warsaw – CPK – Łódź – Kalisz – Poznań will be constructed. This is a task forming a part of High-Speed Rail construction: Warsaw – CPK – Łódź – Poznań / Wrocław, which is called “Y” based on its shape. The assumed operating speed of trains on this section is at least 250 km/h. This is a fragment of the so-called spoke No. 9 as part of the CPK Programme. Secondly, in Wielkopolska, line No. 400:Nakło nad Notecią – Złotów – Okonek will be constructed, which is an element of spoke No. 1 leading from the CPK through Płock, Toruń and Bydgoszcz towards Koszalin.

The routing version presented during the meeting assumes that at the operating speed of 250 km/h it will be possible to achieve the travel time of 1 hour 5 minutes from Poznań to Łódź (currently, the shortest travel on this route takes 3 hours and 20 minutes), to the CPK – 1 hour and 40 minutes and to Warsaw – 1 hour and 55 minutes (currently the shortest time is 2 hours 50 minutes). From Kalisz, passengers will be able to reach Łódź in 35 minutes, the CPK – in 1 hour and 10 minutes and Warsaw – in 1 hour and 25 minutes.

In total, within the railway part of the CPK Programme, the construction of over 1,600 km of new lines leading from 10 directions to the CPK and Warsaw is planned. As part of the so-called zerostage, which should be ready before the CPK Airport achieves operational capacity, 140 km of new lines will be constructed on the Warsaw – CPK – Łódź route. The completion of the remaining railway investments fits the time horizon until 2040.

Each of the 10 railway “spokes” leading to the CPK will consist of new sections of the network and repaired or modernised parts of the existing infrastructure. For the purpose of construction of this railway system, investment tasks were divided between the following companies: CPK and PKP Polskie Linie Kolejowe. On 29 April this year, the Council of Ministers adopted a Regulation under which each of the new sections of tracks through which trains will get to the CPK and Warsaw was included in the list of railway lines of national importance.

The total length of railway lines in Poland is now over19 thousand km. Since the early 1990s, more than 5 thousand km of the lines have been dismantled. New investment projects are needed because since the 1980s, when the construction of the Broad-Gauge Metallurgical Railway and previously the Central Trunk Line were completed, no railway tracks have been constructed in Poland on a large scale. The CPK Programme is the first plan for the construction of the new railway infrastructure since then.

The Social Council for the CPK was composed of representatives of three municipalities: Baranów, Teresin and Wiskitki, at the area of which the construction of the airport is planned. At today’s meeting in Baranów, which began at 5:00 p.m., the members of the Social Council elected the chairman: Roberta Pindor from the Baranów municipality. The following persons were indicated in the vote as the two vice-chairmen: Artur Konarski from Wiskitki and Tomasz Tonder from Teresin.

In accordance with the rules of procedure of the Social Council, the content of which was agreed between the Government Plenipotentiary for the CPK and the Management Board of CPK as well as local authorities and NGOs, today’s inaugural meeting was convened by the MunicipalityHeads of Baranów, Teresin and Wiskitki. Previously, the councilors from these municipalities selected the 15-person composition of the Social Council. The Baranów Municipality Council indicated its representatives on 28 March, Wiskitki selected its five representatives on 20 May and Teresinon 23 May.

I would like to reconcile the planned investment with the interest of the residents to the greatest possible extent. Of course, we are not able to decide about it from behind the desk in Warsaw, therefore the Social Council will play such an important role. I intend to make the best effort to ensure that the investment process is carried out in compliance with the needs of the residents.

SAYS MIKOŁAJ WILD, THE GOVERNMENT PLENIPOTENTIARY FOR THE CPK.

Today’s meeting is crucial not only because it is the first meeting of the CPK Social Council, but also because its representatives have agreed on their action priorities.

ADDS MIKOŁAJ WILD.

The Social Council shall, among others, advise the Company on issues related to the acquisition of real properties, presenting its recommendations on the manner of their buyout.

I am convinced that cooperation with the Council will enable us to plan the related activities in a manner that takes into account the expectations of the residents. We hope that the Council will also vote on the expected directions of development of the municipalities of Baranów, Teresin and Wiskitki. The result of this cooperation will be the preparation of a corporate social responsibility programme by the company, the direct beneficiaries of which will be local residents

SAYS PIOTR MALEPSZAK, ACTING AS THE PRESIDENT OF THE CPK COMPANY.

Rafał Garpiel, an expert with experience in the field of social dialogue involving investors, local governments, local communities and NGOs, acts as the coordinator of the Social Council and has been appointed by the Government Plenipotentiary for the CPK and the management board of the special purpose vehicle. The coordinator shall attend the meetings of the Council and is in charge of the exchange of information between the Council, the Government Plenipotentiary for the CPK and the company. The Chairman of the Social Council elected today is responsible, among others, for preparing a list of issues to be discussed during its meetings, taking into account the proposals of its members and the coordinator.

The Council will advise Mikołaj Wild, the Government Plenipotentiary for the CPK, and the CPK special purpose vehicle managed by Piotr Malepszak on issues of relevance to local communities. The investment requires the acquisition of land currently held by private owners for the benefit of the State Treasury. As part of the preparations for the construction, the CPK company assumes holding negotiations with the owners, which will be possible after precise determination of the investment boundaries.

For the needs of the CPK, at present works are in progress on securing, in the resources of the State Treasury, replacement real properties of various types corresponding to the needs of the residents of the investment site. More precisely, the real properties are being identified and analysed in terms of their suitability as replacement land. Parcels managed, among others, by the State Forests, the National Agricultural Support Centre, the Military Property Agency and the National Real Property Resources are taken into account.

According to the PwC report of April this year, the Polish aviation market has one of the biggest growth potential across Europe, and the construction of the hub near Warsaw is justified, among others, by traffic forecasts and the assumed rate of return. According to the study by Baker McKenzie and Polityka Insight of May this year, the creation of the CPK may bring Poland from 4 to 7% of GDP growth. According to the estimates of the Ministry of Infrastructure, the construction of the CPK will result in creation of a total of almost 150 thousand jobs, including approx. 40 thousand in the direct vicinity of the transfer hub and approx. 110 thousand in the branches of the economy related to the investment.