Poland - Commercial Guide
Project Financing

Includes how major projects are financed and gives examples where relevant. Explains activities of the multilateral development banks in and other aid-funded projects where procurement is open to U.S. bidders.

Last published date: 2019-10-13
Project Financing 
The EU supports projects within its Member States, as well as EU-wide economic integration projects that cross both internal and external EU borders. 
The European Union provides project financing through grants from the European Commission and loans from the European Investment Bank. EU Structural Funds are distributed through the Member States' national and regional authorities, and are only available for projects in the 28 EU Member States.  
 
The CSEU Tenders Database 
The U.S. Commercial Service at the U.S. Mission to the European Union offers a tool on its website to help U.S.-based companies identify European public procurement opportunities. The database features all current public procurement tenders issued by European public authorities (at national and regional levels, as well as public institutions and city authorities). All contracts above established thresholds are open to U.S.-based firms under the terms of the Government Procurement Agreement (GPA) of which the U.S. and the EU are parties. The database, which is updated twice weekly, includes all tenders based on a selection of tenders published in the EU Official Journal that are open to GPA member countries. 
Readers may access the database at: 
Loans from the European Investment Bank 
Headquartered in Luxembourg, the European Investment Bank (EIB) is the financing arm of the European Union. Since its creation in 1958, the EIB has been a key player in building Europe. As the EIB's lending practices evolved over the years, it became highly competent in assessing, reviewing and monitoring projects. As a non-profit banking institution, the EIB offers cost-competitive, long-term lending in Europe. Best known for its project financial and economic analysis, the Bank makes loans to both private and public EU-based borrowers for projects in all sectors of the economy, such as telecommunications, transport, energy infrastructure and environment, with the goal of contributing towards the integration, balanced development and economic and social cohesion of the member countries. 
 
The European Bank for Reconstruction and Development (EBRD) 
The EBRD operates in Poland and aims to provide support in those areas where transition challenges remain significant, where reforms can be deepened to improve energy efficiency, strengthen Poland’s competitiveness and expand export potential.  
In Poland, the Bank is focused on promoting a low-carbon economy, enhancing the private sector’s role in the economy and assisting in development of a sustainable financial sector and capital markets. Since the beginning of its operations in 1991, the EBRD has invested almost € 9.5 billion (approx. $ 10.5 billion) in Poland in over 410 projects. 

 
Polish Development Fund 
The Polish government does not maintain a sovereign wealth fund, however, the Polish Development Fund (PFR) is an umbrella organization pooling resources of several governmental agencies and departments, including EU funds to implement programs enhancing long-term investment and support for entrepreneurs.  The strategy for the Fund was adopted in September 2016; it was registered in February 2017, at which point the Ministry of Economic Development  (this ministry was re-named the Investment and Development Ministry in 2018) assumed supervision of the Fund.  Since mid-January 2018, PFR is under the PM’s supervision. PFR supports the implementation of the PM’s Responsible Development Plan.  About a quarter of initiatives outlined as part of the Strategy are correlated with the objectives of the PFR. 

 
The PFR operates as a loose financial group of state-owned banks and insurers, investment bodies and promotion agencies, including the development bank BGK, Export Credit Insurance Corporation (KUKE), Industrial Development Agency (ARP), Polish Agency for Enterprise Development (PARP), Polish Investment and Trade Agency (PAIH) and Polish Investment and Development (PIR)The budget of PFR group initially reached PLN 14 billion, which managers estimate is sufficient to raise capital worth PLN 90-100 billion.  Various actors  within the organization can invest through acquisition of shares, through direct financing, seed funding, and co-financing venture capital.  Depending on the instruments, PFR expects different rates of return.  PFR intends to launch a new fund of funds in 2018 with the aim of financing capital investments valued at PLN 50-100 million (USD 14.7 – 29.4 million).  
EU Structural Funds, including the European Regional Development Fund, were created in 1975 to assist economically depressed regions of the European Union that required industrial restructuring.  For the period of 2014 – 2020, the EU has earmarked € 352 billion for projects under the EU’s cohesion policy.  In addition to funding economic development projects proposed by member states or local authorities, EU Structural and Investment Funds (ESIF) also support specialized projects promoting EU environmental and socioeconomic objectives.  Member states negotiate regional and “sectoral” programs with EC officials.  For information on approved programs that will result in future project proposals can be found at European Union Regional Policy web-site 
 
For projects financed through ESIF, member state regional authorities are the key decision-makers. They assess the needs of their country, investigate projects, evaluate bids, and award contracts. To become familiar with available financial support programs in the member states, it is advisable for would-be contractors to develop a sound understanding of the country’s cohesion policy indicators. 
 
Tenders issued by member states’ public contracting authorities for projects supported by EU grants are subject to EU public procurement legislation. All ESIF projects are co-financed by national authorities and many may also qualify for a loan from the European Investment Bank and EU research funds under Horizon 2020, in addition to private sector contribution. For more information on these programs, please see the market research section on the website of the U.S. Mission to the EU.  
 
The Cohesion Fund 
The Cohesion Fund is another instrument of the EU’s policy.  Its € 63 billion (2014-2020) budget will fund projects in two areas: Trans-European Network projects in transport infrastructure and environmental projects, including areas related to sustainable development, and energy for projects with environmental benefits. 
The fund will support projects in Bulgaria, Croatia, Cyprus, the Czech Republic, Estonia, Greece, Hungary, Latvia, Lithuania, Malta, Poland, Portugal, Romania, Slovakia and Slovenia. 
These projects are, in principle, co-financed by national authorities, the European Investment Bank, and the private sector: See Regional Policy: Cohesion Fund
Other EU Grants for Member States 
Another set of sector-specific grants offer assistance to EU member states in the fields of science, technology, communications, energy, security, environmental protection, education, training and research. Tenders related to these grants are posted on the various websites of the directorates-generals of the European Commission.  Conditions for participation are strict and participation is usually restricted to EU firms or tied to EU content. Information pertaining to each of these programs can be found at the EU Funding and Tenders website:  
Multilateral Development Banks: 
 
U.S. Commercial Service Liaison Offices at the Multilateral Development Banks (European Bank for Reconstruction and Development, World Bank) 
The Commercial Service maintains Commercial Liaison Offices in each of the main Multilateral Development Banks, including the European Bank for Reconstruction and Development and the World Bank. These institutions lend billions of dollars in developing countries on projects aimed at accelerating economic growth and social development by reducing poverty and inequality, improving health and education, and advancing infrastructure development. The Commercial Liaison Offices help American businesses learn how to get involved in bank-funded projects, and advocate on behalf of American bidders. Learn more by contacting the Commercial Liaison Offices to the European Bank for Reconstruction and Development (http://export.gov/ebrd) and the World Bank (http://export.gov/worldbank). 
 
Financing Web Resources 
BGK  
BPH 
PKO BP  
PEKAO  
BZW BK  
mBANK  
ING  
EIB  
Infrastructure - TEN-T - Connecting Europe 
Public contracts and funding