Sustainable

Business Performance

A1 Highway (Phase1), Poland

Phase 1 of the A1 highway is a toll road in Northern Poland designed to improve motorist and pedestrian safety, local quality of life, stimulate the local and regional economy and minimise impact on cultural heritage and environmentally sensitive areas.

Project Introduction
The 560km long A1 toll highway is to be implemented in phases from Gdansk in Northern Poland to Cieszyn on the Southern Polish border and will supersede the current Highway 1. Phase 1 of the A1 is currently under construction between Gdansk and Nowe Marzy in northern Poland. Construction of the 90km section began in early 2005 and is planned to open in November 2008.

The investor consortium Gdansk Transport Company S.A. (GTC) was awarded the concession to finance, design, construct, operate and maintain phase 1 of the A1 highway until 2039. Skanska BOT (Build Operate Transfer) owns 30% of GTC, and is leading the US$650 million construction. Once operational the Polish authorities will pay GTC a guaranteed basic payment and supplements for traffic volumes through “shadow tolls”. The Polish government has identified the A1 as a priority project in order to establish the corridor as a main trade route and to improve safety.

The former 2-lane highway was one of Poland’s most dangerous roads, which was not designed for high-speed heavy traffic, bisecting towns and villages and had not been adequately maintained. Between January and October 2005 there were 48 fatalities along the most northerly 150km stretch of Highway 1 from Gdansk to Torun. In comparison the 4-lane phase 1 of the A1 will be highly maintained, providing emergency assistance and bypassing towns and villages, making the route safer and an estimated 30% faster. Phase 2 of the A1 concession has not yet been finalised.

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Skanska AB