Moody's: Update of Poland's road building programme is credit positive

By bne IntelliNews June 12, 2013

Moody's Investors Service has commented on the Polish government's last week decision to approve a number of road building projects and said that the move is credit positive for the sovereign rating (A2 stable).

The agency expects that around 50 projects will be opened to a tender process worth a government-estimated PLN35.7bn (2.2% of GDP) and will be financed from European Union (EU, Aaa negative) funds and the National Road Fund (KFD). The progress on allocating these infrastructure projects will hasten their construction and will provide a boost to the slowing economy, which is a credit positive.

Quick progress towards implementing infrastructure investment programmes will have a positive effect on the economy as the multiplier effect of this type of expenditure tends to be strong. Therefore, we believe that over the life of the program, and if completed on a timely basis, these road projects are likely to boost real GDP growth by 0.1-0.2pps on an annual average, Moody's stressed.

The government updated its 2011-2015 road construction programme, so that total outlays on fast-track road construction will amount to PLN 35.73bn (EUR 8.4bn) by 2015.

In 2007-2012, a total of nearly 2,500 km of fast-track roads (express roads and motorways) was delivered, with another 775km now under construction. Until this year, a total of PLN 83.8bn was spent on these projects.

 

Related Articles

Poland's real interest rates turn negative as inflation surges in January

Poland's consumer price index grew 1.8% y/y in January, more than doubling its rate compared to December, statistics office GUS announced on February 13. With Polish interest rates sitting at ... more

Poland and Hungary reversing transition to democracy, warns Freedom House

The rise of populism in Poland and Hungary is startling in suggesting that electorates are ready to back leaders that promise to reverse some of the most remarkable recent transitions from ... more

Poland preparing new financing plan for nuclear power plant

Poland will table a new financing plan for the country’s first nuclear power plant in the first half of 2017, Warsaw's energy minister said on January 30. The nuclear plant project – planned ... more

Register here to continue reading this article and 2 more for free or purchase 12 months full website access including the bne Magazine for just $119/year.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

To continue viewing our content you need to complete the registration process.

Please look for an email that was sent to with the subject line "Confirmation bne IntelliNews access". This email will have instructions on how to complete registration process. Please check in your "Junk" folder in case this communication was misdirected in your email system.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

If you have any questions please contact us at sales@intellinews.com

Subscribe to bne IntelliNews website and magazine

Subscribe to bne IntelliNews website and monthly magazine, the leading source of business, economic and financial news and commentary in emerging markets.

Your subscription includes:
  • Full access to the bne content daily news and features on the website
  • Newsletters direct to your mailbox
  • Print and digital subscription to the monthly bne magazine
  • Digital subscription to the weekly bne newspaper

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

bne IntelliNews
$119 per year

All prices are in US dollars net of applicable taxes.

If you have any questions please contact us at sales@intellinews.com

Register for free to read bne IntelliNews Magazine. You'll receive a free digital subscription.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

IntelliNews Pro offers daily news updates delivered to your inbox and in-depth data reports.
Get the emerging markets newswire that financial professionals trust.

"No day starts for my team without IntelliNews Pro" — UBS

Thank-you for requesting an IntelliNews Pro trial. Our team will be in contact with you shortly.

Dismiss