Offer for local governments
PFR S.A. addresses its offer to local government units, municipal companies and private partners implementing Public-Private Partnership (PPP) projects with local governments, as well.
The Department of Local Government Investments (DIS) of PFR S.A. is an analytical and financial partner. It manages the Local Government Investment Fund (FIS) that invests in projects together with its partners.
Every year, the Department of Local Government Investments implements development programs such as the Medium City Package and the 'PPP Package' Project.
As part of the Support Package, the Department of Local Government Investments has held 120 pre-investment meetings with local governments regarding the identification and activation of the financial potential of medium-sized cities. Over 50% of medium-sized Polish cities were involved in the initiative, presenting their investment plans for analysis and seeking funding for development. The scale of the Package helped the implementation of new products and solutions. One of them is the initiative to package PPP projects and a subordinated loan for private partners implementing PPP projects.
The main benefits of investments of the Local Government Investment Fund:
- the capital products of the Local Government Investment Fund finance the development of local governments. Acquisition of shares by the Local Government Investment Fund in a municipal company is accompanied by the provision of capital to the company or local government for the development of public services;
- the investment models of the Local Government Investment Fund are tailored to the specifics of the local government sector, and the investments are subject to time limits (the local government regains full power after the fund's investment period);
- cooperation between Local government and Local Government Investment Fund is based on the best practices applied by the private sector in creating value for companies - companies get access modern tools for performance forecasting and monitoring.
The maximum horizon of a single investment of the Local Government Investment Fund is 20 years, and the level of involvement in a single investment ranges from PLN 10 to 120 million.
As part of its activities, the Department of Local Government Investments is taking comprehensive steps to increase the use of PPPs as a financing instrument for public tasks in the future:
- through cooperation with Local Government Units interested in PPP, offering financing to companies implementing PPP projects;
- by offering loans subordinated to bank debt to private partners implementing PPP, which replace their capital contribution;
- by constantly conducting market research regarding the needs of local governments that may be financed through PPP;
- by initiating development programs such as PPP Packages.