New Documents
[Other] Examples of problematic transport projects
1. Project No 14: Upgrading of road Lviv-Krakovets (Poland border), Ukraine
Cost of the project: USD 87 million
Length of the motorway: 84.4 km
The new motorway between Lviv and Krakovets on the Polish border will cut through the Zashkiv and Zavadiv villages without any mitigation measures for the local population. Only the seven houses located on the construction site will be compensated by the constructors. Hundreds of villagers will be forced to live next to daily traffic of 20 000 vehicles on the new motorway. A local referendum voted against the motorway construction and the villages’ council refuses to sign the documents for land allocation to the investor. The Ukrainian government neglected the opinion of the affected population and failed to inform them about the 45 year concession awarded to the Transmagistral consortium. Three feasible alternatives have been developed since 1998.
2. Project No 20: Motorway construction along corridor Vc Budapest – Sarajevo – Ploče, Bosnia & Herzegovina and Croatia
Cost of the project: EUR 2.5 billion for B&H and EUR 500 million for Croatia
Length of the motorway: 330 km in B&H and 141 km for Croatia
Construction of the motorway along the whole length of the corridor Vc is unjustified economically. In 2006, some of the Croatian sections of the road were used by only 6131 cars, and 331 lorries and buses per day. In Bosnia & Herzegovina, the average traffic for most of the section of the corridor is around 5500 vehicles per day. Only one section of the corridor of the route (Sarajevo-Zenica) shows an internal rate of return of 15.2 percent according to a 2003 European Commission study, but this is very controversial as all other sections show close to zero or a negative return rate. The motorway construction will also be environmentally detrimental, as the section north of Osijek in Croatia would result in the destruction of the Drava wetlands. The planned railway upgrading along the corridor will successfully cover the increasing traffic needs if combined with improved management and fair road charges.
3. Project No. 24: Road upgrading Demir Kapija-Udovo-Smokvica, Macedonia
Cost of the project: EUR 54 million (price assessment from 2002)
Road length: 42.1 km
The construction of a four lane highway between Demir Kapija and Smokvica would have a detrimental impact on the vulture population of the Demir Kapija gorge. The gorge has been a protected territory since 1960 and is the home also of many other protected birds, reptiles and amphibians. This highway project is also bad from the economical point of view, with an overall investment return rate of 4.4 percent for one scenario and 3.0 percent for a second scenario.
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