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Infrastructure Segment


building mainly for local authorities in Podlasie and Mazovia, but also, among others, for the General Directorate for National Roads and Motorways, the Podlaskie Voivodeship Roads Authority in Białystok, and in 2020 contracts were signed for the construction of roads in the Lubelskie and Warmińsko-Mazurskie Voivodeships. The Infrastructure Branch and Budrex are also subcontractors to general contractors building roads in north-eastern Poland. In recent years, the Group has built up competences and acquired several contracts for the construction of expressways (either alone as part of a consortium or as a subcontractor). The segment’s activity is also focused on projects in the area of district, voivodeship and local roads in the north-eastern region of the country. The bridge part of the business, in turn, has gained experience from working on projects throughout Poland. It is being developed as part of Budrex-Kobi Sp. z o.o. which was acquired in 2015 (currently Budrex Sp. z o.o.).

Due to the unstable situation on the border with Belarus, in December 2021, the Ministry of the Interior and Administration announced a tender to select companies that meet the government’s criteria to the highest degree, in particular have experience in the construction of linear engineering structures, possess their own equipment and staff facilities. The consortium of Unibep S.A. and Budrex Sp. z o. o. was awarded the contract for the construction of two sections of the barrier with a total length of 80.7 km. This is an important project from the perspective of national security. The investor of the whole project is the Polish Border Guard.

In planning for 2022, phenomena related to the increase in asphalt and fuel prices were taken into account. At the same time, it is difficult to accurately estimate the negative impact of the increase in the cost of materials, which has a significant impact on the profitability of contracts. The road and bridge business portfolio offers the opportunity to maintain process activity at the level of previous years. Construction of the barrier on the border with Belarus is a very promising project in terms of finances for 2022. Both the Infrastructure Branch of Unibep SA and Budrex sp. z o.o. have solid foundations to make proper use of the acquired competences and significantly influence the Group’s performance in 2022. The experience gained in the implementation of contracts in the “design and build” formula may bring benefits in future projects.

In 2021, the extension of national road “63” on the Zambrów – Wygoda section was completed. Construction of two viaducts was completed: in Łochów (Jasiorówka) and in Topór in the Stoczek commune. The contract for all bridges on the S61 expressway was completed.

There was no material impact of the Covid-19 situation on operational efficiency within the segment in 2021. An inconvenience caused by the new situation was the limitation in communication with government and local authorities, as well as representatives of the contracting entities. This had the effect of temporarily reducing efficiency in decision- making and agreement-making.

In 2022, the construction of sections 3 and 4 of the wall on the border with Belarus will be important for the business. The extension of the last section of voivodeship road No. 835 – from Biłgoraj to the border of the voivodeship will be a notable project.. Other significant works include the construction of engineering structures as part of the S61 Szczuczyn – Budzisko expressway construction project on the section between the Ełk Południe and Wysokie junctions. The planned S61 expressway will form part of the international E67 road connecting Central Europe with Scandinavia. The launch of a number of investment projects in the region of north-eastern Poland is an opportunity for Budrex to achieve further stable results. In addition, both the road and bridge segments intend to expand their business. The Infrastructure Branch of Unibep SA is strengthening its position in the Podlaskie Voivodeship and is in the process of expanding in the Warmińsko- Mazurskie Voivodeship. In 2022, a bitumen production plant is planned to be put into operation in Szczytno.

The assumptions regarding development prospects treat as neutral the events described in previous annual reports, concerning the withdrawal from the contract for the construction of the road project Dąbrowa Białostocka – Sokółka, as well as other claims which are or will be pursued in court.