Poland’s booming population and economic growth have increased demand for infrastructure development in the country. In 2020, value of the Polish construction market in Poland is predicted to reach a record level of PLN250 billion (USD 64 billion) according to SPECTIS, a market research and analytics company. Poland will remain the biggest beneficiary of EU funding for period 2021 – 2027, which indicates that there will be a continued demand for engineering and construction services in the country.
Opportunities in Infrastructure
The total value of the 960 largest investment projects, both underway and planned, in Poland is estimated to be valued at PLN 420 billion (USD 107 billion), the sum of which is nearly twice as much as the annual value of the Polish construction market as a whole.
The top 5 of largest infrastructure investments in Poland for 2020 are as follows:
- EUR 47 billion (USD 51 billion) is allocated for new road infrastructure or the upgrading of existing roads. The General Directorate of National Roads and Motorways announced the construction of 116 km of roads in 2020.
- 5 billion (USD 18 billion) is allotted to the modernization and build-up of the railway infrastructure.
- 5 billion (USD 18 billion) will be invested until 2030 for the enhancement of navigation along Poland’s main rivers
- EUR128 million (USD 139 billion) is earmarked for the extension and renovation of Krakow-Balice and Szczecin-Goleniow airports.
The flagship investment project of the Polish government is the construction of a new (built-from scratch) airport approximately 40 kms southwest of Warsaw, which is intended to replace Warsaw Chopin Airport and become a strategic international hub connecting Europe with Asia. Construction is planned to begin in 2021 and will be completed within 2027 – 2028. The project is estimated to cost PLN15 billion (USD3.5 billion) for the rail network, PLN8 billion (USD 2.1 billion) for the motorways and PLN25 billion (USD 6billion) for the airport.
The Polish government has also started the construction of a waterway through the Vistula Spit, a narrow strip of land that separates a large part of the country’s eastern coastline from the Baltic Sea. The new canal will be 1 km in width as well as 5 metres depth and will be opened for ships at the end of 2022. The cost of investment is estimated at PLN1 billion (USD 1.1 billion).
The flagship investment project of the Polish government is the construction of a new (built-from scratch) airport approximately 40 kms southwest of Warsaw, which is intended to replace Warsaw Chopin Airport and become a strategic international hub connecting Europe with Asia. Construction is planned to begin in 2021 and will be completed within 2027 – 2028. The project is estimated to cost PLN15 billion (USD3.5 billion) for the rail network, PLN8 billion (USD 2.1 billion) for the motorways and PLN25 billion (USD 6billion) for the airport.
The Polish government has also started the construction of a waterway through the Vistula Spit, a narrow strip of land that separates a large part of the country’s eastern coastline from the Baltic Sea. The new canal will be 1 km in width as well as 5 metres depth and will be opened for ships at the end of 2022. The cost of investment is estimated at PLN1 billion (USD 1.1 billion).
Demand in Housing
Apart from the infrastructure investment projects, there is also high demand for housing. According to the HRE Think Tank report ‘How many apartments does Poland lack?’, there is a shortage of 2.1 million apartments in Poland, and the shortage will increase to 2.7 million at end of 2030. There are about 120,000 to 180,000 flats built per year in Poland. The units however are generally located in only four or five provinces with the largest Polish agglomerations.
Going Green in Poland
Over 1000 agglomerations in Poland do not meet the specified requirements of the EU directive on wastewater collection and treatment. Right up till 2021, over EUR6.8 billion will be spent on the modernisation of existing wastewater treatment facilities.
European Commission, as the key pillar of its Green Deal vision has made it mandatory that all EU members build net zero economies by 2050. As Poland has some of the most polluted air in the EU currently, it will require approximately EUR60 – 70 billion (USD 65 – USD 76 billion) for Perspective 2030 and approximately EUR130-175 billion (USD 141- USD 190 billion) for Perspective 2050, which goes towards energy infrastructure expenditures. In addition, the newest draft of ‘National Energy and Climate Plan for 2021-2030 allocates an investment of EUR7.8 billion (USD 8.5 billion) for wind and photovoltaic installations.
The Way Forward
In view of the aforementioned infrastructure spending plans in Poland, Malaysian companies may consider exploring opportunities by providing construction services as well as supplying building and green materials. Companies that are keen to obtain further information can reach out to the following organisations:
- Polish Chamber of Construction Industry Marii Konopnickiej, 6 Street 00-491 Warsaw, Poland [email protected] /www.pib.net.pl
- Spectis Construction Market Experts (research support services to executives from the construction industry), Mr. Bartłomiej Bartnik Sales Director, SPECTIS [email protected] /https://www.spectis.pl/en/home
- General Directorate of National Roads and Motorways, Wronia 53 Street 00-874 Warsaw, Poland [email protected].pl/ http://www.gddkia.gov.pl
- General Directorate of National Roads and Motorways, Wronia 53 Street 00-874 Warsaw, Poland. [email protected].pl http://www.gddkia.gov.pl
- Ministry of Sea Economy and Internal Waters, Nowy Swiat 6/12 Street 00-400 Warsaw, Poland. [email protected] https://www.gov.pl/web/gospodarkamorska
- Heritage Think Tank, Śniadeckich 10 00-656, Warsaw, Poland. [email protected]/www.heritagere.pl
