The PPP market in Poland - the most recent report
Update on recent developments in the Polish PPP market, including revitalisation projects.
The first half of 2017 was an active period regarding the PPP market in Poland, both in terms of regulatory measures as well as new projects entering the preparatory or implementation stage.
The current Polish government has a very postive attitute towards PPP, considering it as an effective form of public investment. On 3 March 2017 government started a legislative process to amend the present PPP law, proposing several measures to facilitate the initiation and management of PPP investments. Moreover, on 26 July 2017 the Council of Ministers adopted by Resolution No 116/2017 the official Government Policy on the Development of Public-Private Partnership. For the first time, such topics as government goals relating to PPP, rules of implementation of PPP projects and roles of particular state institutions in the management of PPP program have been clearly formulated – something that many market participants had been demanding for a long time. Inter alia, Ministry of Development was formally designated as „PPP Unit”, responsible for carrying out the government PPP policy.
During the second quarter of 2017, PPP Institute conducted an empirical analysis of the Polish PPP market on behalf of Ministry of Development, updating an earlier study as of end of 2016 (see Restaura news of 21 February 2017). Over 8 ½ years period covered by the analysis, from 1 January 2009 to 30 June 2017, 490 tenders with total value of approx. PLN 21,15 billion have been initiated for the award of PPP or concession contracts, mostly by local and regional governments. This resulted in 128 contracts concluded with total value of PLN 6,2 billion, out of which 116 contracts for PLN 5,86 billion had been effectively implemented. As of 30 June 2017, 39 tender procedures were in progress and further 118 projects were in early development but have not yet reached the formal tender stage. The analysis shows some welcome trends, including the growing importance of larger projects and appearance of a significant number of projects initiated by central government entities.
Several PPP projects currently in implementation or planning stage include renovation of historical buildings or city areas. When applying a formal, restrictive definition of revitalisation of objects of cultural heritage, we can identify 3 such PPP projects in implementation (Granary Island in Gansk – by far the largest in terms of investment value, Congress Centre in Ksiaz Castle and Hotel pod Debem in Szydlowiec), as well as 1 project in preparation (Hunting Lodge in Karolin).