Bank Gospodarstwa Krajowego is the operator of the Government Polish Order Fund: Strategic Investment Programme, which is designed to support the reconstruction of the economy after the COVID-19 pandemic.
The Strategic Investment Programme is addressed to local government units and their associations, whose budgets have been significantly affected by the pandemic. BGK’s analysis* indicated that in 2020 (compared to 2019), income from PIT declined 1.9% and operating surplus fell 11.2%. The result was a 4.2% reduction of capital expenditures triggering cuts in plans for new projects. They were limited to essential projects, i.e. those that cannot be postponed any longer. The Government Polish Order Fund: Strategic Investment Programme in the next few years is intended to help local governments get back on track with their public investments. The Programme provides for non-repayable co-financing of projects, covering up to 95% of their value. The minimum own contribution required is 5% of the project value (depending on its priority area specified by the local government unit in its application for co-financing).
The Polish Order is forward looking and long term. Implementation of the planned strategic investments will raise the productivity level of the entire Polish economy.
Objectives of the Strategic Investment Programme:
- stimulating investment activity of local government units
- enhancing local entrepreneurship
- improving the living conditions of citizens
- creating new jobs
- supporting sustainable development
- effectively engaging the financial sector
* Data source: Report “Financial condition of local government units after four quarters of 2020,” Research and Analyses Bureau, BGK, April 2021.