Obstacles hindering development of Public-Private Partnership in Poland

Obstacles hindering development of Public-Private Partnership in Poland

The PPP formula has been known in Poland for over a decade now. The first Act containing regulations pertaining to the new cooperation tool that may be relied upon by private partners and public institutions was introduced in 2009. The fact that the PPP formula is marginalized is well proven by the figures – the value of PPP contracts accounts for merely 1% of all investment projects in the economy.

The factors that hinder development of PPP in Poland include the following: expert knowledge is not taken advantage of by representatives of public entities who attempt to implement PPP projects. Investors also fail to organize and secure the resources required, as they often underestimate the budget needed to complete the project. The competitive dialog with private partners is lasting too long as well, which leads to long-term suspensions or even complete cancellations of procedures. It is worth noting that the lack of breakthrough and effective PPP projects in the field of construction, repair and maintenance of roads is an obstacle as well. This leads to a know-how deficit among administration bodies of various levels, and, therefore, means that the PPP formula is rejected as early as at the project planning stage.

Despite the fact that the aforementioned factors have been diagnosed during the very first PPP processes, no template documents or good industry practices have been worked out so far that could be relied upon while implementing projects in a given sector and would serve as a valuable source of information. No works describing problems encountered while pursuing PPP projects have been complied as well.

In the era of social pressure to render top-quality services, to ensure transparency when spending public money and with the reduced funding to complete investment projects, the knowledge about PPP should be promoted, and state administration authorities should attach a greater and more direct emphasis to supporting key investments pursued in this particular formula.

We, acting in the capacity of a private investor, are also open and ready to share our knowledge and experience by holding discussions and participating in debates.


Author:

Krzysztof Bernatowicz, President and CEO Egis Projects Polska

Last Updated on March 18, 2021 by Karolina Ampulska

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