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Reference ID	Created	Released	Classification	Origin
05WARSAW4065	2005-12-16 15:31	2011-08-24 00:00	UNCLASSIFIED	Embassy Warsaw

This record is a partial extract of the original cable. The full text of the original cable is not available.

UNCLAS WARSAW 004065 
 
SIPDIS 
 
STATE FOR EUR/NCE FOR DKOSTELANCIK AND MSESSUMS, STATE FOR 
EUR/ERA, COMMERCE FOR 4232/ITA/MAC/EUR/OECA/MROGERS, 
TREASURY FOR MGAERTNER 
 
E.O. 12958: N/A 
TAGS: ECON EFIN EAIR ECPS ELTN PREL PL
SUBJECT: POLAND:  AMBASSADOR'S COURTESY CALL ON NEW 
MINISTER OF TRANSPORT AND CONSTRUCTION POLACZEK 
 
SENSITIVE BUT UNCLASSIFIED -- NOT FOR INTERNET DISTRIBUTION 
 
 ¶1.  (U)  Ambassador called on new Minister of Transport and 
Construction, Jerzy Polaczek, on December 9 to discuss the 
new government's plans for speeding up infrastructure 
development.  Minister Polaczek commenting that his first 
priority was to ensure that he spent the government's 
resources wisely. In discussing his plans to improve Poland's 
road infrastructure, Polaczek explained that he plans to 
change the financial model used to build and rehabilitate 
roads and develop a priority list for road development that 
will include completing a North-South and East-West highway 
by 2010.  He hopes that both American and EU investors will 
be interested in investing in Polish roads. 
 
---------------------------- 
Roads are a top priority,... 
---------------------------- 
 
¶2.  (U)  Ambassador noted that developing the road 
infrastructure is critical to Poland's further economic 
development.  Some U.S. companies decided not to invest in 
Poland because of the difficulties in transporting goods out 
of the country.  Polaczek replied that he had requested a 
debate in the Sejm to discuss infrastructure. Responding to 
the Ambassador's inquiry about the major obstacles to 
building 4 lane highways, Polaczek stated that the law must 
be corrected to use budgeted funds more speedily.  Citing 
2005 as a bad example, he also said that more EU funds should 
be used.  The new government believes that the existing 
concession system for road building is not working, it's too 
expensive and too time consuming and that new commercial 
solutions should be found.  He wants to increase Polish 
budget resources as well as EU funds allocated to roadway 
construction.  He is considering new financial tools as well 
as special purpose companies and task forces to speed 
development. 
 
--------------------------------------------- ------------ 
But so are telecom, air transport, housing, urban renewal 
--------------------------------------------- ------------ 
 
¶3.  (U)  Polaczek noted that his other priorities as minister 
are to work on changes in the telecommunications law, 
continue participation in the EU-US air transport agreements, 
and increase the number of housing units available throughout 
Poland.  Poland will not give up its public housing system 
but he hopes to encourage commercial developers by proposing 
a new construction law that will eradicate obstacles to 
investment.  He is also working on a program to work with 
municipalities to invigorate community spaces, using an EU 
program as a model.  He added that 2006 will be a good year 
for railroads in Poland, as investment in the system will 
increase five-fold using resources from road taxes, fuel 
taxes, loans from the European Investment Bank (EIB) and 
bonds. 
 
 
¶4.  (U)  Polaczek concluded by noting that he is interested 
in more cooperation with U.S. Secretary of Transportation 
Mineta.  He added that he was in a meeting with Secretary 
Mineta in 2004. He hopes to visit the U.S. in 2006 and would 
like to meet with Secretary Mineta during his visit. 
 
¶5.  (SBU)  Comment:  Minister of Transport and Construction 
Polaczek is faced with an enormous challenge that his 
predecessors were unable to overcome - rebuilding Poland's 
crumbling infrastructure with limited resources.  To be 
successful he will have to change existing laws that require 
environmental impact studies for the entire voivoid when 
undertaking any construction, change bureaucratic procedures 
hindering usage of EU funds, convince local government 
officials to work together, and develop new commercial and 
financial vehicles that will attract investors.  Polaczek is 
a young PiS insider with a legal background and strong civil 
service experience.  We will watch his actions closely to 
determine whether his new plans create opportunities for U.S. 
companies or investors. 
HILLAS

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Viewing cable 05WARSAW4065, POLAND: AMBASSADOR'S COURTESY CALL ON NEW