Ecological building boom in the offing
Over the next twenty years, Poland should receive up to zł.189.6 billion (€40 billion) in EU cohesion funds, a staggering amount given the Polish construction industry's output since the collapse of communism. In its strategic plan for the improvement of the environment, the Polish government negotiated a threshold period for some issues concerning the emission of fumes into the atmosphere, but agreed to spend about zł.90 billion on environmentally-friendly construction facilities over the next nine years. Barring any major ecological mishaps, and if this money is invested in line with the national strategy for ecological development, Poland will meet 80 percent of the EU's criteria.
The second stage of the program, due to commence in 2013, will cost an additional zł.90 billion. Although Poland currently spends around zł.10 billion (1.9 percent of GDP) on environmental programs, which is 25 times more than seven years ago, it is still lagging well behind EU standards. One of the country's main problems is a lack of sewage processing facilities and sewerage systems, which in most cities require large-scale investment to put right. About 300 new sewage processing facilities have been built in Poland in recent years, but they are still needed in around 130 towns across the country. Indeed, there are three major cities with populations of over 100,000 inhabitants that as yet do not have their own sewage processing facilities.
To catch up with the EU average within the next 18 years, about 6.46 million people in Poland will have to be provided with access to sewage processing facilities. If we assume that the average town has around 20,000 inhabitants, this would imply that more than 300 new facilities will have to be built, which is of course good news for any construction company specializing in this activity.
Some EU-based construction companies are aware of the potential in Poland for the development of huge sewage processing facilities, which will be built in the first instance in areas some 150-200 kilometers from Poland's western and southern borders. As far as other ecological investments are concerned, we can also expect some technical solutions that will reduce the emission of fumes from factory chimneys, but the most lucrative contracts for construction firms will be for sewage processing facilities.
The estimated cost of constructing one for a middle-sized town can be between €60-160 million, as far as projects implemented through the ISPA program are concerned. If we consider that the construction of ecologically-friendly properties can also be supported by the EcoFund, which issues non-refundable grants of up to 80 percent of the value of investments, there are indeed some justifiable hopes for a construction boom in this sector. Unfortunately in Poland, only one company, the International Advisory Search for Trade & Finance, is highly specialized in helping local authorities get EcoFund financing.
The second stage of the program, due to commence in 2013, will cost an additional zł.90 billion. Although Poland currently spends around zł.10 billion (1.9 percent of GDP) on environmental programs, which is 25 times more than seven years ago, it is still lagging well behind EU standards. One of the country's main problems is a lack of sewage processing facilities and sewerage systems, which in most cities require large-scale investment to put right. About 300 new sewage processing facilities have been built in Poland in recent years, but they are still needed in around 130 towns across the country. Indeed, there are three major cities with populations of over 100,000 inhabitants that as yet do not have their own sewage processing facilities.
To catch up with the EU average within the next 18 years, about 6.46 million people in Poland will have to be provided with access to sewage processing facilities. If we assume that the average town has around 20,000 inhabitants, this would imply that more than 300 new facilities will have to be built, which is of course good news for any construction company specializing in this activity.
Some EU-based construction companies are aware of the potential in Poland for the development of huge sewage processing facilities, which will be built in the first instance in areas some 150-200 kilometers from Poland's western and southern borders. As far as other ecological investments are concerned, we can also expect some technical solutions that will reduce the emission of fumes from factory chimneys, but the most lucrative contracts for construction firms will be for sewage processing facilities.
The estimated cost of constructing one for a middle-sized town can be between €60-160 million, as far as projects implemented through the ISPA program are concerned. If we consider that the construction of ecologically-friendly properties can also be supported by the EcoFund, which issues non-refundable grants of up to 80 percent of the value of investments, there are indeed some justifiable hopes for a construction boom in this sector. Unfortunately in Poland, only one company, the International Advisory Search for Trade & Finance, is highly specialized in helping local authorities get EcoFund financing.
