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Unformatted text preview: Electronic copy available at: http://ssrn.com/abstract=1124423 Electronic copy available at: http://ssrn.com/abstract=1124423 Electronic copy available at: http://ssrn.com/abstract=1124423 30 No 3 2007 Marian Moszoro 1 Public-Private Partnerships in Toll Motorways in Poland: A Comparision of Financing Exploitation and Fiscal Risk Received 20 July 2007; accepted 30 August 2007 Wyższa Szkoła Biznesu – National-Louis University in Nowy Sącz 1. Introduction There are different forms of involving private capital in infrastructure development. Poland has only three toll motorways and as many as three different development and operating public-private partnership (PPP) models. The aim of this paper is to compare them focusing on the financ- ing, exploitation and fiscal risks expected at the moment of contracting. In section 2, we give an insight into the three different models implement- ed in Poland, attempting to qualify and quantify the financial exposure of the State. The national road policy and a summary of the financial mecha- nisms and fiscal risks related to toll motorways are presented in section 3. Conclusions are given in section 4. Two major circumstances have to be taken into account while comparing toll motorways in Poland. Firstly, when contracted each of the existing motorways had its own peculiarities regarding geographic conditions, constructed stretches and adjacent infrastrucutre, and long-term traffic forecasts. Secondly, construction costs –both materials and labor– went sharply up during the years 2005–2007. Both circumstances make it very difficult to compare costs of development of roads at different moments in time and place, and limit the scope of the analysis. 2. PPP road projects developed or on track at the national level in Poland PPP projects concluded at the national level in Poland are limited to toll motorways. At present, there are two toll motorways (A2 and A4 2 ) and one Electronic copy available at: http://ssrn.com/abstract=1124423 Electronic copy available at: http://ssrn.com/abstract=1124423 Electronic copy available at: http://ssrn.com/abstract=1124423 31 contracted for development in the near future (A1). The national plan foresees the development of 700 km of new motorways and 1,990 km of express roads by 2011 3 . A1 Motorway Despite the fact that the first tender was made public far in December 1995, the contract with Gdansk Transport Company (GTC) for the development and exploita- tion of A1 Motorway was signed on August 31 st , 2004. The concessionaire –GTC– finances and develops one stretch of the A1 Motorway (Gdańsk–Nowe Marzy). Tolls will be also collected by the GTC. The National Road Fund covers the difference between tolls collected and the sum of debt service, return on capi- tal and maintenance costs, whereas the rate of return is 8%–20% (14% on average) and is subject to the traffic volume (incentive for GTC). Maintenance costs are fixed in real terms and are corrected according to the inflation rate. Therefore, the government is committed and are corrected according to the inflation rate....
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