Krakow Fast Tram (stage IV) – PPP project – contractor selected

On 24 November 2020, the Krakow Roads Authority announced that the consortium of PPP Solutions Polska sp. z o.o. and GÜLERMAK Ağır Sanayi İnşaat ve Taahhüt A.Ş. was selected as the contractor for the project involving the design, construction and operation of the final stage of constructing the new tram line called “Krakow Fast Tram (stage IV)”.

The project involves the construction of a new 4.5-kilometre-long section of the tram line (9 km of track) in Krakow from the junction of aleja Jana Pawła II / ulica J. Meissnera to Mistrzejowice, including a tunnel under Rondo Polsad, approx. 850 m long. According to the schedule, the tram line will be constructed in 2022-2024. Then, the private partner will operate the line for 20 years, i.e. until 2044. The project is carried out under the availability-based public-private partnership model. According to the most advantageous offer, the value of capital expenditures is over PLN 650 million, and the value of the project is about PLN 1.125 billion.

All of the three companies admitted by the Contracting Authority to the competitive dialogue submitted tenders. Apart from companies from the Gülermak Group, these were also Mota-Engil Central Europe PPP Road sp. z o.o. and Vardun sp. z o.o. (Comsa Group).

The uniqueness of the “Krakow Fast Tram (Stage IV)” project is evidenced by the fact that it is one of several PPP pilot projects (from various industries) selected by the government. Based on the experience gained during its implementation, guidelines for other cities will be developed, containing information on how to obtain funding in the PPP model for infrastructure projects, which is particularly important in the context of the upcoming end of EU funding for such projects in the next financial perspectives.

Since June 2017, the consortium of DZP, Mott MacDonald and Crido Taxand has had the pleasure of providing comprehensive legal, economic, financial and technical advice on this pioneering project to the Krakow Roads Authority. The project is also supported by the Ministry of Finance, Funds and Regional Policy, both by financing the assistance of the consortium of advisers, and by providing ongoing substantive and organisational support from the ministerial Department of Public-Private Partnership. In the course of the works carried out so far, the consortium of advisers has supported the Contracting Authority at every stage of the project, upon designing the project structure, preparing the necessary tender documentation, including the PPP contract, the functional and utility programme and instructions for preparing the financial model, conducting appeal proceedings before the National Appeal Chamber, and evaluating contractors’ tenders.

On behalf of DZP, the project is carried out by an interdisciplinary team led by Marcin Krakowiak, Partner and Head of the Infrastructure and Energy Practice, and Michał Przychoda, Senior Associate, expert in PPP projects, supported by Tomasz Darowski, Partner, expert in infrastructure projects, and Michał Wojciechowski, Senior Associate, expert in public procurement.