PFR to accelerate the development of mid-sized cities

PFR to accelerate the development of mid-sized cities


The Polish Development Fund will actively contribute to the implementation of the Ministry of Economic Development’s Package of Actions for Mid-sized Cities by investing resources of the Local Government Investment Fund managed by PFR and providing consultancy to address investment needs. PFR’s participation will help to activate the economic potential of mid-sized cities, contributing to sustainable development of the regions of Poland.

Mid-sized cities, as opposed to large cities, face problems in attracting investors whose presence is key to city growth. New investors bring new opportunities. They create new jobs and help to develop human capital, products and services.

The Package of Actions for Mid-sized Cities covers a range of diverse and complementary initiatives. The first phase of implementation has just started. It will align the existing tools and instruments, including the policy of investing and attracting investors, preferential access to European funds under national programmes, and raising funds from other sources, including mainly the Local Government Investment Fund (FIS) managed by PFR.

“The co-operation between the Ministry of Economic Development and the Polish Development Fund in the implementation of the Package of Actions for Mid-sized Cities includes an assessment of findings and the financing of investments in modern infrastructure of smaller cities. In view of the current disparities between the growth rate of large cities and mid-sized cities, the programme is a key contributor to an equal playing field across the regions and ensures cohesion in Poland’s regional development,” said Paweł Borys, President of the Polish Development Fund.

The Polish Development Fund invests in sustainable social and economic development of Poland. According to its strategy, PFR operates programmes which bolster the long-term investment and economic potential of Poland, promotes equal opportunities and protects the environment. Infrastructure investments are a priority of PFR Group.

Local Government Investment Fund (FIS)

The instruments offered by FIS provide mid-sized cities with an attractive alternative to debt and subsidies, which may come in short supply. FIS offers support in investments using national funding and capital raised as own contribution to projects financed by EU funds. Potential areas of support include roads, water supply and sewage infrastructure, waste management, electricity and gas supply, social infrastructure, revitalisation, mass transport, and health care.

The Fund offers two investment models of equity investment. For projects of municipal companies, the Fund takes up shares of companies, provides loans as a partner, and offers subordinated debt (loans, bonds). For projects where the local government raises funds to invest in its statutory activity, the Fund acquires the right to shares in municipal companies or takes up shares of existing municipal companies from the local government. The budget of the Local Government Investment Fund is PLN 400 million. Some of this money will be used to support the development of mid-sized cities.

As a part of the Package of Actions for Mid-sized Cities, PFR provides cities with consultancy in addressing investment needs. In the first phase, the pilot will cover several dozen cities selected by the Fund because they cope with problems in continued provision of social and economic functions. The Fund’s experts and the cities will review the development needs in view of potential sources of funding depending on the risk profile of each project. In the second phase of the pilot, the Fund will select more than a dozen projects to invest in under a tailor-made financing model.

Copy as a Plain Text


Related Stories
The Polish Development Fund starts new local government investments under the Package for Medium Sized Cities Program


On January 11, 2018, PFR Fundusz Inwestycji Samorządowych, whose mission is to provide Capital for the Development of Local Governments, signed investment agreements. The first agreement was concluded with the municipalities of Nowy Sącz, Nawojowa, Stary Sącz, Kamionka Wielka, and Korzenna, by means of which the Polish Development Fund will invest in the Sądeckie Wodociągi company. The second investment also covers the extension of the water and sewage infrastructure in Limanowa, where the fund will become a shareholder of the Department of Public Utilities and Housing. The total value of both investments amounts to PLN 50 million.
FAMUR S.A. and the Polish Development Fund have started to cooperate for modernization of the Polish mining industry


FAMUR S.A. and the Polish Development Fund have signed today an agreement of joint investing in Mining Equipment Finance Sp. z o.o. The main business area of the FAMUR Group company is financing strategic investments in terms of modernization of the mining and power energy sectors. These investments are implemented by domestic mining companies.  Indirectly, the project will contribute to accelerate the growth rate of  efficiency and safety of raw materials extraction in Poland.
PFR Ventures launches a call for the PFR OPEN INNOVATION FIZ Program


PFR Open Innovation FIZ is a fund of funds that will provide financing through VC funds to SME companies implementing technological projects in the formula of open innovations. The formula of open innovations is based on the development of technological innovation (including new products/processes) using knowledge, resources and technologies from external sources, i.e. from the science sector and/or in cooperation with organization's stakeholders.
WSE, the Polish Development Fund and BIK, with the participation of IAiR, signed a co-operation agreement for a joint rating agency


On November 28, 2017, the Warsaw Stock Exchange, the Polish Development Fund and BIK signed a cooperation agreement for a joint rating agency based on Instytut Analiz i Ratingu. The objective of the agreement is to bridge a gap in the rating offer, targeting mainly the SME sector. The development of the Agency is a part of the Plan for Responsible Development. The Agency will launch operations in the second half of 2018.

PFR signs an agreement to develop the electromobility industry in Poland

The agreement signed by the Polish Development Fund, the Ministry of Economic Development, the Ministry of Energy, the National Centre of Research and Development, the National Fund of Environmental Protection and Water Management, and 41 Polish cities and municipalities