Skip to content
Advertisement

Business

Mission Almost Impossible?

Transparency and full compliance in NATO's tender process may be far too demanding for most Polish companies.

By Timothy Sifert

Local companies fixed on securing military contracts from NATO's planned $1.6 billion (zł.6.4 billion) investment in the country's below-par military infrastructure will find it difficult to win major tenders, as they must contend for deals with larger and more experienced companies located in the alliance's other 18 member states.

When Poland joined NATO four years ago, the alliance's officials had expected a multi-million dollar investment in the country over a 10-year period to align its military holdings with NATO standards; a process which must be completed by all member states. Multiple tenders for the private sector are due to follow this investment.

According to NATO spokesman Robert Pszczel, companies must be internationally competitive to stay afloat in NATO military tender negotiations. "We pride ourselves on being open and honest," Pszczel said, referring to the tender process. He said that NATO gives absolutely no priority to local companies, especially with respect to the critical tenders. But he allowed that on some smaller tenders, such as "for digging holes," it might make sense to enlist Polish workers. "In some cases NATO would seek local help," he noted. He did not comment further on which other areas of local industry might also stand to be viable.

The total investment is part of the NATO security investment program, according to Dagmara Jarosławska, a press officer in the ministry of defense. She noted the targets for investment: NATO has given priority to investments in the restoration and enlargement of seven local airports, including the landing strips in Malbork; modernizing five fuel warehouses; renovating two harbors used for naval transport; improving initial computer support systems and communication between enlargement nations.

NATO is also seeking to improve the technology of the backbone of the country's air defense systems. Larger fuel tanks will be added to airports, and military harbor basins in Swinoujscie and Gdynia will be deepened. Indeed, the NATO-run tender process is already underway. A British-Italian consortium of Marconi and Selenia won the rights to construct three of the six radar stations to be built at NATO's behest.

Pszczel was quick to point out that NATO's commitment to Poland was not the equivalent of free money for the military. "We're not the European Union," he said. "We're not sitting on some large pile of money." But he allowed that there is a certain cash pile raised for member states and earmarked for security investments, because all NATO members' capabilities need to reach a certain alliance benchmark.

He explained, however, that there are several responsibilities that Polish officials must fulfill in order to make way for the benefits of the investments. For instance, the country must provide real estate and forms of tax exemption, as well as other forms of participation that add to the cost of what the country already pays NATO as a part of its membership agreement.

More from Business All