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Transport projects in Bratislava have been managed inefficiently, the financial burden on the city is deepening

Published: 08.11.2024
Bratislava, 8 November 2024 - Credit burden and significant management failures in managing Bratislava's capital city projects covered by European Union funds are the main risks that may threaten the financial stability of the Slovak metropolis and its ability to implement new investment projects. This was confirmed by a cross-sectional audit of the Supreme Audit Office (SAO) of the Slovak Republic, focused on the project management system in the Bratislava municipality and its transport company (DPB) in the use of European funds in the years 2020 - 2023. The auditors examined seven projects worth more than 291 million out of a package of 490 million euros, which the capital city received thanks to the involvement in the European financial assistance instruments. These funds were intended to help the Slovak capital expand its public transport system. These include, for example, the trolleybus line Autobusová stanica - Nové SND, a new tram line in Petržalka or the modernisation of the Dúbravsko-Karloveská radiála line. The project trolleybus line Hlavná stanica - Patrónka - Riviéra had to be financed by the transport company with nearly 1.1 million from its own funds, because the project was not financially or physically completed by the end of 2023 and was classified as a non-working project.

In the audited years, the capital city drew funds from the European Structural and Investment Funds (ESIF) in the amount of almost 163 million euros within 24 projects. The Bratislava Transport Company, as a municipal joint stock company, received European funds for more than EUR 327 million within 17 projects. The national auditors selected the sample among all projects based on three criteria - low absorption level, projects comparable to the ESIF projects implemented by regional cities and the contracted amount of the non-repayable financial contribution. The audit confirmed the risk of insufficient and even ineffective project and risk management.

Based on the findings, the National Authority for External Audit drew the attention of the management of the Bratislava municipality to significant risks related to the sustainability of the financing of large transport or investment projects. "If the capital city implements any investment project in the future, it will be dependent on external credit sources for its co-financing, " says Henrieta Crkoňová, the deputy chairwoman of the Slovak auditors, explaining the audit's conclusions. At the same time, she stresses that when the metropolis "draws on bank loans for other transport projects, it increases its liabilities to banks. However, this will have a negative impact on its indebtedness according to the budgetary rules of the local government and may lead to a reduction in the ability of the local government to implement new projects".

Read the full text of the press release about this issue in Slovak language.

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