Central Communication Port. NIK report: Delays

In 2017, the government made a decision to build Central Communication Port. The Baranów commune was chosen as the location. The Supreme Audit Office examined whether the state of preparations for construction, managed by the government’s plenipotentiary for the CPK, Deputy Minister Marcin Horała, was in line with the assumptions.

“The concept of the CPK provided for the division of investments into three basic components: airport, road and rail. The findings of the Supreme Audit Office show that the concept did not present the full business justification, including the schedule related to the formation of costs and benefits, financial calculations of the expected benefits and estimates of lost profits “- it was noted in the report.

In addition, there were some delays at the start. The CPK implementation schedule was, in the opinion of the Chamber, too general and indicated impossible deadlines for the implementation of individual tasks. “As a result of unreliable planning of the preparatory stage in the CPK concept, individual tasks were completed with a delay – even up to 2.5 years – in relation to the adopted assumptions “- determined the auditors.

The company, which is to implement the construction of the CPK, was provided with funds in the amount of PLN 310 million, allowing for the operation and implementation of statutory tasks. The funds for financing the implementation of the statutory tasks of the CPK sp. Z oo until the end of 2023 were specified in the multi-annual program at the level of PLN 9.23 billion. They are to come from issues of treasury securities, informs the Supreme Chamber of Control.

However, as noted, so far no feasibility study has been prepared for the entire CPK program and a comprehensive financial plan for the full investment period. Until the end of the audit, it was not known what the financing sources would be for all the projects related to the construction.

The costs of the entire investment project estimated by NIK are as follows: PLN 16-19 billion – aviation component, PLN 8-9 billion – railway component, PLN 1.7 billion – road component.

“In the railway component, the amount of PLN 8-9 billion related only to the so-called ‘0’ stage, which included: the construction of the Warsaw-Łódź railway line, the construction of the CPK junction with the station, and the track system including connectors between the existing lines. It was determined that the total costs of the expansion of the national railway network with new sections related to the construction of infrastructure for the transport system based on the STH planned for the years 2020-2030 will amount to PLN 35-40 billion “- informs NIK.

So far, the expenditure on CTH (until the end of 2020) has amounted to approximately PLN 96.5 million. They were:

– costs of servicing the Government Plenipotentiary for the CPK – PLN 4.3 million, or 68 percent the maximum limit specified for this period in the Act;

– CPK sp. z oo expenses (including capital expenditure) in the amount of PLN 84.7 million;

– expenditure incurred by PPL on analyzes related to the CPK in the amount of PLN 6.6 million.

Stated irregularities in the construction of the CPK, due to the early stage of investment, So far, they have not had any negative effects. However, according to NIK auditors, there is a risk of failure to provide financing for projects planned at further stages of the investment and of an increase in costs.

NIK also warns about the high probability that construction will not be completed on time. However, he points out that more important than the timely completion of the investment is its reliable preparation and implementation that will allow to eliminate the risks identified in the NIK audit.

In the opinion of the Supreme Audit Office, it is necessary to immediately conduct a thorough analysis of costs and benefits, both economic and social, that are to be brought by the construction of the largest airport in our country. “Especially in a situation of a collapse on the passenger flights market due to the pandemic” – underlined.

As emphasized by the Supreme Audit Office, In order for the new airport to be profitable, it would have to handle 24.3 million passengers in 2030, and the capital expenditure may not exceed PLN 46 billion.

The full text of the CPK report is available here

The report generated a lot of negative comments among opposition MPs. “The report of the Supreme Audit Office crushes the CPK. No analyzes, schedule, business plan, or just a normal dialogue with the inhabitants” – wrote MP Franciszek Sterczewski on Twitter.

Weapon construction works, incl. Government Plenipotentiary for CPK Deputy Minister Marcin Horała. In social media, he publishes excerpts from the Supreme Audit Office’s report, which positively assess individual activities related to the implementation of the project.

“The overall assessment of STH after the NIK inspection is positive. The inspection did not find a single case of non-economic activities” – convinces Horała.

“I must admit that, despite the fact that I am a parliamentarian with 6 years of experience, I am shocked by the level of ignorance presented by the opposition’s deputies at the meeting of the Infrastructure Committee on the CPK. They claim that the NIK report is ‘shocking’. Horała wrote on Twitter.

About Eric Wilson

The variety offered by video games never ceases to amaze him. He loves OutRun's drifting as well as the contemplative walks of Dear Esther. Immersing himself in other worlds is an incomparable feeling for him: he understood it by playing for the first time in Shenmue.

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