Source:  https://www.rynek-kolejowy.pl/wiadomosci/dlaczego-rzad-ratuje-tylko-drogi--115392.html

Why does the government only save road construction companies?

– If another increase in road financing is confirmed, in the category of program expansion we will be dealing with a 20 to 1 ratio to the detriment of the railways – this is how Marita Szustak, president of the Economic Chamber of Land Transport, comments on the announcement of an increase in the road budget by PLN 2.6 billion . - At the recent Trako fair, talks about railway financing ended briefly: there is no money - adds Adrian Furgalski, chairman of the Railway Business Forum.

As we reported on Monday on the RynekInfrastruktury.pl website , the government plans to increase the budget of the government program for the construction of national roads by 2030 by PLN 2.6 billion. An additional PLN 100 million will go to the bypass program. These funds are intended to cover additional costs related to price increases that occurred after the outbreak of the war in Ukraine. According to official government information, the financial change in the road program is to be adopted by the Council of Ministers this quarter, most likely at the next government meeting.

This is very good news for road builders, as it opens the possibility of increasing the maximum level of indexation to 20%. which the industry has been calling for for some time, pointing out that the current solutions are insufficient. But the question immediately arises: what about the railway?

– If another increase in road financing is confirmed, in the category of program expansion we will have a 20 to 1 ratio to the detriment of the railways – says Marita Szustak, president of IGTL. He reminds that PBDK has already been increased once by the amount of PLN 2.4 billion, as a result of which annexes were signed this spring increasing the indexation limit from 5 to 10 percent. – At the same time, the railway construction sector received a total of PLN 240 million in additional funds, and the annexation of contracts up to the limit of 10%. valorization is incidental and takes place with a huge delay - says Marita Szustak.

The head of the organization associating companies from the railway industry believes that this is an expression of disregard for this sector. – The Minister of Infrastructure and the entire government have clearly shown that they completely ignore the needs of the railway infrastructure, despite our appeals, speeches and direct talks. Declarations about the high priority of railways are empty words and we have another tangible proof of this - he says clearly.

– It is difficult to assume that the war in Ukraine and the associated unprecedented increase in construction costs, combined with the lack of stable financing for railway investments, independent of EU funds, did not also have a negative impact on material producers and companies implementing railway investments, and railway contracts are profitable. – says Marita Szustak.

He reminds that IGTL and RBF jointly prepared a draft act on the Railway Fund and officially submitted it in April this year to the Ministry of Infrastructure, from where it was to be sent to the ministry responsible for finance. The project included proposals that would ensure stable sources of financing for railways, on similar principles as in the case of road investments. To date, however, there has been no response from either the Ministry of Infrastructure or the Ministry of Finance.

– The railway industry is experiencing a crisis not seen on such a scale for years! Many companies are on the verge of bankruptcy. We received the information about the adoption of the new KPK with great hope. We were counting on unlocking the possibility of concluding new contracts and dynamically signing indexation annexes. Unfortunately, another month has passed and nothing has changed in the railway sector. Why does the government only save road construction companies? It's hard to even comment on it, let alone understand it, sums up Marita Szustak.

Adrian Furgalski, chairman of the Railway Business Forum and president of the TOR Economic Advisory Team, speaks in a similar tone. He describes his reaction to information about road financing plans as follows: - I felt truly sad. Especially after the just ended Trako fair, where talks on railway financing ended briefly: there is no money - says Adrian Furgalski. He adds that it is not about leveling the bottom fairly. – I absolutely do not want to take away this further indexation from road companies, because the increase in costs is not a fantasy, but is covered by specific prices and rates, and all this can be checked. And they deserve this valorization. The problem is that once again we feel like beggars asking from one ministry to another, if, of course, someone has time for a meeting at all, or the meeting is not a collection of generalities, he explains.

As he says, the industry is losing patience while waiting for funds and equal treatment of railways. – We can continue to beg for money for the railways, but entrepreneurs' patience is running out when they see this imbalance in the treatment of the industry. There is no greater national financing. There is no European money. The valorization of railway contracts has not been carried out reliably either. However, there are slogans about the railway as a priority. No joke! – says the president of ZDG TOR.