The European Investment Bank (EIB) and the Bank Gospodarstwa Krajowego (BGK), a Polish development bank have agreed to finance contracts for the construction of the Lagiewnicka Route, a part of the Kraków inner southern bypass road, as well as a new tram line.

The EIB is financing this project through the European Fund for Strategic Investments (EFSI), a central element of the Juncker’s Commission’s Investment Plan for Europe.

EIB Poland vice-president Vazil Hudák said: “Supporting sustainable transport solutions is a top priority for the EIB. The Lagiewnicka Route project fits this objective perfectly.

“Our loan will help unblock a major traffic bottleneck in the city and have a positive impact on the urban environment by decreasing the level of harmful car emissions.

"This will ultimately make a real difference in the daily lives of Kraków’s residents.”

For this project, EIB is providing PLN400m (€93m), making it the major lender for this project, while the BGK is providing additional support of PLN298m (€69.3m).

The project works on the Lagiewnicka Route include construction of a 3.7km dual carriageway ring road including tunnels and a new 1.7km tram line.

"This will ultimately make a real difference in the daily lives of Kraków’s residents."

Upon completion, the project is expected to reduce traffic congestion in the Kraków region, enhance the quality of public transport as well as minimise dependence on private cars thereby reducing the air pollution levels.

Additionally, traffic safety is expected to improve with the introduction of grade-separated junctions.

The construction work is scheduled to begin later this year and is expected to be complete by the end of 2020.

Image: EIB and BGK to provide financial assistance for the construction of Kraków bypass under Juncker Plan. Photo: courtesy of European Investment Bank.