The Nordic Investment Bank (NIB) has funded a new stretch of Polish motorway.

Poland’s development bank, Bank Godspodarstwa Krajowego, has borrowed €100mn, with a tenor of 30 years. The finance will help construct a 37km dual-carriage extension to the A1 road, which is part of the trans-European north-south motorway project. The A1 runs from Gdansk to the Czech border. The loan is guaranteed by the Polish government and the pricing is confidential.

The road carries a large volume of international transport, including freight. The extension is designed to remove bottlenecks, which will improve transport links between the Baltic and Nordic regions.

Stefan Jon Fridriksson, senior manager for lending at the NIB, tells GTR: “The reason behind financing this road lies in its strategic location, facilitating transportation flow between central Europe and the Baltic sea area, which is the main operational area of the NIB.

“Outside the membership area, projects financed by NIB should be of mutual interest to the country of the borrower and the member countries. NIB has had a long standing agreement with Poland enabling the NIB to participate in the financing of projects in both the public and private sectors in the country. At the moment we cannot reveal any particular project under consideration, but we are constantly on the outlook for new opportunities in Poland, within different sectors of the economy.”

NIB President and CEO Henrik Normann says: “Modern transport links in Poland and Central Europe will secure efficient trade between the Baltic Sea region countries and the rest of Europe. Faster, safer and less expensive transportation contributes to strengthening the competitiveness of the NIB’s member countries.”

Construction work is to begin in the first quarter of 2013. The NIB has previously allocated two long-term loans for the construction of the A1 motorway, totalling €290mn.