Unrealistic deadlines, lack of clearly formulated sources of financing – these are just some points from the list of objections that the Supreme Audit Office (NIK) has to the Central Communication Port (CPK). According to the auditors, at the current inflation level, some of the estimated airport construction costs may not be up to date. NIK puts a question mark over the legitimacy of the investment, taking into account the collapse of air traffic as a result of the pandemic. The report also included information on remuneration.
Central Communication Port (CPK) – NIK assessment
The Supreme Audit Office notes that the currently largest government investment in Poland, ie the construction of the Central Communication Port, “is delayed at the start”.
“NIK indicates that at this pace of work, the completion of the construction of the airport by the end of 2027 is at risk. In addition: it is still not known exactly how much the CPK will cost, or where the money for this project will come from. To make the new airport (airport component) profitable) it would have to handle in 2030 – 24.3 million passengers, and the investment outlays may not exceed PLN 46 billion “- reads the Chamber’s announcement.
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.
CPK. Delivery schedule with impossible deadlines
“The CTH implementation schedule was general and indicated impossible to meet deadlines for the implementation of individual tasks. For example, it was assumed that a special act would enter into force by the end of 2017, i.e. less than two months after the adoption of the CTH Concept, and the Multiannual Program was to be developed within five months from the adoption of the CPK Concept “- writes NIK.
“However, it did not happen. Although work on the draft of the multi-annual program was initiated in the CPK sp. Z oo immediately after its creation (the company was established in November 2018), consultations and changes to the project, caused by numerous reservations of the Ministry of Finance and the Center for Strategic Analyzes , lasted until October 2020 (the document was adopted by the Council of Ministers on October 28, 2020). As a result of unreliable planning of the preparatory stage in the CPK Concept, individual tasks were implemented with a delay – up to 2.5 years – in relation to the adopted assumptions “- describes the Chamber.
NIK points out that the protracted work on the draft of the Multiannual Program concerned only the years 2020-2023.
“The implementing document for the Program will be the Implementing Document, which is to contain, in particular, implementation schedules and budgets of individual projects. However, this document has not been adopted so far. As a result, there is no full material and financial schedule for the CPK Program” – reports the Supreme Audit Office.
CPK – costs and financing in the opinion of the Supreme Audit Office
NIK also points to the possible increase in costs in investments in railway infrastructure.
“The STH concept specifies that the total costs of expanding the national railway network with new sections related to the construction of infrastructure for the transport system based on STH, planned for the years 2020-2030, will amount to PLN 35-40 billion. Full railway expenses were not included in the STH Concept, because at this stage it was not certain whether the expansion of the railway system would be carried out in the proposed shape, and it was not indicated which entity, the CPK company or PKP PLK SA, would implement these investments. Cost estimate (based on the 2017 price level) was made on the basis of cost estimates resulting from the feasibility study of high-speed rail Y and the cost benchmark of analogous station structures. With the current inflation and rising labor costs, as well as the prices of construction materials, the estimated costs of expanding the national railway network may already be out of date, “writes the Chamber.
CPK – legitimacy of the investment in the face of the decline in air traffic
The controllers also write about the decline in air traffic during the pandemic and their relationship with the forecasts of CPK passenger traffic.
NIK reminds that initially the STH Concept defined the airport capacity at the level of 45 million passengers per year (in the optimistic scenario) and the share of the passenger transport market at the level of 40-45%. “This was justified by the fact that the market development forecasts adopted in 2010 were confirmed in almost 100% (for 2015, 30 million 395 thousand passengers were assumed, and there were 30 million 392 thousand)” – notes the Chamber.
“The forecast of the Civil Aviation Authority from 2017 assumed that in 2025 65.3 million passengers will be served (the Concept from 2010 forecast 50.8 million), and in 2035 it will be 94.5 million passengers (according to the Concept from 2010 – 78.2 million). In 2019, the actual number of passengers handled was higher than the forecasts of the Civil Aviation Authority and amounted to 49 million passengers, compared to 36.2-46.3 million forecasted by the Civil Aviation Authority, with Chopin Airport from 18.8 million passengers used (38.5% of the total passenger traffic in Poland in 2019). The works on the CPK Concept assumed that in 2027 PLL LOT will carry 19 million passengers on connections to / from Warsaw “- we read .
“Due to the COVID-19 epidemic, LOT Polish Airlines has prepared an update of the passenger forecast, based on the assumption that all activities aimed at expanding the infrastructure of the airport in Okęcie will be suspended and all operations will be transferred to STH in the fourth quarter of 2027. The national carrier has lowered the forecast for the development of passenger traffic by 34% Planned transport of PLL LOT on routes to / from Warsaw assumed the transport of: in 2027 – 12.7 million passengers, in 2028 – 14.5 million, in 2029 – 16.6 million, and in 2030 – 19.2 million passengers, which means that according to these forecasts, air traffic from Warsaw will recover for a long time after the pandemic “- emphasize the authors of the report.
NIK also presents the forecasts of the European Organization for the Safety of Air Navigation (EUROCONTROL) and the International Air Transport Association (IATA).
“The probable date of achieving the results from 2019 is 2024. It should be emphasized that all these forecasts were made before the 4th and 5th wave of the coronavirus pandemic. In the part concerning the profitability analysis of the aviation component it was indicated that passenger traffic is a critical value for the CPK project at the level of 24.3 million passengers in 2030 “- reports the Supreme Audit Office.
Salaries in the CPK company
According to the NIK report, PLN 33.4 million was allocated to remuneration in the CPK company in 2020 (15.6 million in 2019 and 550 thousand in 2018). Of which the management board earned PLN 3.4 million in 2020, PLN 2 million in 2019 and PLN 248 thousand. in 2018.
In October, in response to Konkret24 questions, the spokesman of the CPK Konrad Majszyk informed that in the last 12 months average salary in the company fell by over 1 thousand. PLN, which was “a natural consequence of the expansion of offices and teams through employment in positions other than managerial”. He also wrote that the average salary resulting from the rates of people employed in CTH is currently over 8,000. PLN net (with a full-time job it is approx. 11 thousand gross). And the current average monthly remuneration of all management board members (three people) in the CPK company is approx. PLN 29 thousand. PLN net (with a full-time job it is about 41 thousand gross).
Operating costs and employment
The total operating costs of the CPK sp. Z oo until the end of 2020 (from 2018) amounted to PLN 77.5 million. In 2020, the costs amounted to PLN 51.6 million and compared to 2019 (PLN 24.9 million) increased by approx. 52%. Payroll costs increased by almost 114%. and employment increased by 176 percent.
CPK sp. Z oo employed 255 people, of which 41 in the Airport Component, 59 in the Railway Component, 22 in the Real Estate Component, 25 in the Strategy and Development Component. The remaining 108 people were employed in the Departments of the Executive Director, Finance, Communication and PR, President of the Management Board.
CPK sp. Z oo plans to increase employment to 587 people by the end of 2021
In the report, NIK also informs that the cost of servicing the Government Plenipotentiary for CPK is PLN 4.3 million, or 68 percent. the maximum limit specified for this period in the Act. The Chamber reports that the expenditures of CPK sp. Z oo (including capital expenditures) are estimated at PLN 84.7 million. and the expenditure incurred by PPL on the analyzes related to the CPK – PLN 6.6 million.
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