Polish Government Disputes Costs of Pomeranian Metropolis Project

A dispute between the Ministry of Finance and the Ministry of Interior and Administration threatens the development of a planned metropolitan union in Poland’s Pomeranian Voivodeship.

Costs of the Pomeranian Metropolis Under Scrutiny

The Ministry of Finance is challenging the Ministry of Interior and Administration (MSWiA) over the estimated costs of creating the Pomeranian Metropolis, questioning both the figures presented and the methodology used to calculate them. The MSWiA estimates initial costs could reach 350 million złoty, raising concerns due to Poland’s existing excessive deficit procedure.

The proposed metropolitan union would encompass Gdańsk, Gdynia, Sopot, and surrounding municipalities. The MSWiA argues that this collaboration is crucial for addressing transport, spatial planning, climate challenges, and bridging the innovation gap with other European regions.

Financial Concerns and Deficit Procedure

The Ministry of Finance has raised critical objections to the project’s draft legislation for months, arguing that the regulatory impact assessment (RIA) fails to account for all potential financial consequences. This comes as the European Commission has placed Poland under an excessive deficit procedure.

The Ministry of Finance emphasizes that over 90% of the state budget consists of rigid expenditures, and the proposed solutions would further increase these commitments. With limited budgetary flexibility due to the deficit procedure, any increase in spending is heavily scrutinized.

Projected Costs and Funding Gaps

The RIA estimates state budget expenditures of over 19 million złoty this year, rising to nearly 500 million złoty in 2027, and increasing in subsequent years. This is largely attributed to the Pomeranian Metropolis’s share of personal income tax.

The Ministry of Finance also criticizes the lack of a comprehensive methodology for evaluating the costs of tasks the metropolitan union is intended to perform. It further alleges that the MSWiA has not presented the financial implications of new tasks added to the project after government consultations, including subsidies for rail transport and public transport funding.

Concerns Over Budgetary Commitments

The Ministry of Finance points out that the draft law lacks a provision ensuring that state subsidies will be covered within existing budgetary allocations for relevant agencies, preventing requests for additional funds.

Total Estimated Costs and Initial Funding Needs

According to the RIA, the total cost of establishing and operating the Pomeranian Metropolis for the state budget between 2026 and 2035 will exceed 5.6 billion złoty, fluctuating annually between 500 million and 720 million złoty. The MSWiA maintains that a detailed methodology for calculating these costs is included in the annex titled “Calculation of the value of tasks of the metropolitan union in the Pomeranian Voivodeship.”

The MSWiA states that 350 million złoty is needed to initiate the new tasks, including approximately 140 million złoty for integrating bus and rail systems, 130 million złoty for launching initial metropolitan connections, and 50 million złoty for additional rail services.

MSWiA Response and Funding Request

The MSWiA clarifies that a minimum of 250 million złoty is essential to demonstrate tangible results, allowing for partial implementation of a new fare system and the launch of initial feeder lines. The ministry requests that the Standing Committee of the Council of Ministers approve the project and resolve the discrepancies between the MSWiA and the Ministry of Finance.

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