The European Investment Bank (EIB) has confirmed that it will provide almost EUR 1bn for strategic investments in energy and science in Poland. In line with its aim of promoting competitive and secure energy, the EIB has provided EUR 250m of financing to Energa for the upgrading and extension of its electricity distribution network in northern and central Poland.
This financing, in the form of innovative hybrid bonds, is guaranteed under the European Fund for Strategic Investments (EFSI), a central element of the Juncker Commission’s Investment Plan for Europe. A further two EIB loans are providing Poland with EUR 730m for research, development and innovation activities in research institutes, universities and enterprises. The latter operations are the first to be supported by InnovFin Science, a facility with the financial backing of the European Union under Horizon 2020, its research and innovation programme.
Energa will use the funds obtained from the issue of hybrid bonds to implement its priority investment programme in 2017-2019. The company estimates its total capital expenditure in this period to be in the order of EUR 814m. The innovative nature of the hybrid bond product stems from its equity-type features and partial equity recognition by rating agencies. The main objective of Energa’s programme is to increase the security of electricity supply while limiting network losses and improving the quality of service. The project will also include investments in the connection of renewable energy sources (mainly in low and medium voltage) to increase the hosting capacity of the network. Apart from these tasks, investments in smart meters and network automatisation as well as in new connections in the distribution network are also planned.
As for the support for Polish science under the new InnovFin Science – EU Finance for Innovators facility targeting scientific projects, an EIB loan of EUR 425m will finance the statutory research tasks performed by all categories of scientific and academic staff employed by Polish public universities and research institutes in the majority of scientific disciplines. These projects will concern either basic or applied research and will be implemented in public research institutes, universities and enterprises across Poland. The main objective of this EIB financing operation is to leverage applied R&D carried out by enterprises and the innovative activities of companies, as well as to foster better links between research and industry.
Both projects will be carried out in 2017 and 2018. Together with the 16 previous loans extended since 2004 to co-finance the Polish science sector, the loans signed today underpin the EIB’s long-term commitment to supporting Polish research, development and innovation programmes at various levels in a range of disciplines.