We have increased the Security and Defence Fund under the NRP to 23 billion zlotys

– Minister K. Pełczyńska-Nałęcz announced at the committee meeting.

The SDF budget was increased as part of the fifth revision of the NRP – from PLN 22.43 billion to PLN 23.016 billion (an increase of approximately PLN 589 million).

SDF investment policy

The committee meeting was held in connection with the completion of the work on the investment policies for the SDF, prepared by BGK and Chrobry S.A. They were developed on the basis of the investment priorities adopted at our first committee meeting.

These include:

• the development of collective protection facilities and civil protection infrastructure (approx. PLN 9.9 billion) – the construction of shelters and hiding places for the civil population, securing of water intakes, sewage treatment works, etc.;  all facilities that are essential for the safety of residents and which may become targets of sabotage or military action;
• construction and modernisation of dual-use infrastructure (approx. PLN 6.4 billion) – roads and railways for military mobility;
• investment in cybersecurity (approx. PLN 2.5 billion) – securing critical infrastructure (e.g. water supply networks, electricity grids, gas pipelines, etc.) and communication between services;
• modernisation of enterprises, including the support for research and development (approx. PLN 4.1 billion) – support for modernisation (e.g. digitalisation, automation, purchase of new machinery) to boost defence production in Poland.

The next step will be the submission of the SDF investment policies to the European Commission as part of the eighth payment request under the NRP (the adoption of the SDF investment policies is a milestone in the NRP).

Over 23 billion zlotys for the SDF

Poland is the only country in the EU that has allocated funds from the NRP to defence and security – the amount of 23 billion zlotys have been channelled for this purpose. In January this year, the Act establishing the Security and Defence Fund entered into force.

In April this year, MDFRP and BGK signed an agreement establishing Chrobry S.A., to which funds from SDF will be channelled. The special purpose vehicle (SPV) is managed by BGK and will finance defence investments. These will take a form of loans and equity investments. Chrobry will be responsible for the equity component of SDF. BGK will be responsible for providing support in the form of loans.

50 per cent of the funds from the SDF for local authorities

Approximately 50 per cent of SDF funds will be allocated to supporting projects implemented by local government bodies. Local authorities will be able to spend the funds on the construction and modernisation of shelters, cybersecurity and road infrastructure. The funding will cover both protective structures located in existing buildings and those in new facilities to remain under the jurisdiction of local government units.

Loans for local government units will be interest-free and distributed for many years. They may be partially written off.

The remaining 50 per cent of the SDF will be divided into a lending arm and an equity arm, available to businesses in the defence, technology, manufacturing, transport and energy sectors. Companies will have a possibility to benefit from the maximum preferential funding conditions, in compliance with the state aid rules.

When will the calls for proposals be launched?

Calls for loans granted by BGK are scheduled to be launched in the second half of the year. They will be granted until December 2030, and their repayment period may be as long as 20 years.

In addition to Minister Pełczyńska-Nałęcz, today’s committee meeting was attended by: Jan Szyszko, the Deputy Minister of Funds, Deputy Prime Minister and Minister of National Defence, Władysław Kosiniak-Kamysz, Minister of Finance and the Economy, Andrzej Domański, and the Government Plenipotentiary for the Security Action for Europe Instrument, Magdalena Sobkowiak-Czarnecka.

Other persons present included the representatives of the Ministry of Infrastructure, the Ministry of Digital Affairs, the Ministry of State Assets, the Ministry of the Interior and Administration, and the Government Plenipotentiary for Strategic Energy Infrastructure.