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Yet in 2009. Solid banking regulation and supervision and relatively moderate credit growth in the pre-crisis period (compared to the rest of Central and Eastern Europe) strengthened the resilience of the financial sector. In July 2010. Third. The unemployment rate declined from a peak of 10.2 percent in the third quarter of 2011. and automatic fiscal stabilizers were allowed to operate. At the same time. While this did not translate into weaker GDP growth in the third and fourth quarter. The EU Presidency was seen as a great success of Poland.1 percent in December 2011. despite a worsening external environment. RECENT ECONOMIC AND SECTORAL DEVELOPMENTS Growth and External Sector Poland was the only economy in the EU to avoid recession during the 2008-09 global financial crisis. fiscal policy continued to support the economy as public demand compensated for faltering private demand. Poland's economy rebounded in 2010 and 2011. GDP growth remained strong at 4. First.2 percent. improved labor market conditions. while the EU's output declined by 4.3 percent. Bronisław Komorowski (PO) was elected the President of Poland. The next presidential elections are expected to take place in 2015. The Government is led by Prime Minister Donald Tusk.6 percent. and new orders for industry slid from 16. with domestic fixed investments recovering from moderate declines in 2009 and 2010. Poland’s Presidency in the Council of the European Union ended on December 31. reduced consumer and business confidence suggest that consumption.POLITICAL DEVELOPMENTS The parliamentary elections in October 2011 resulted in the victory of the Civic Platform (PO) and the second four-year tenure of the coalition government formed by the Civic Platform (PO) and the Polish Pheasant’s Party (PSL). Poland's relatively large and diversified domestic economy mitigated the negative effect of the sharp decline in global 2 demand. but politically difficult reforms. In 2011. and credit growth. Good performance in industry and construction. In late 2011.3 percent in October 2010 to 2. Second.5 percent in the same period. and positive net exports contributing in the second half of the year. adequate macroeconomic policies both prior to and during the crisis helped to support output growth and protect the financial sector. The country's deep economic integration with Europe and other global markets made it vulnerable to the collapse in capital flows and trade. The Government was elected with a strong mandate for reform. Poland's GDP grew by 1. the unfavorable external environment started to weigh down Poland's growth. Real GDP growth accelerated to close to 4 percent in 2010 on the back of strong domestic demand. 2011. investment and exports will be impacted by weak EU and . after the death of President Lech Kaczynski – Law and Justice Party (PIS) – in a tragic plane crash near Smolensk. Growth in retail sales eased from 16. the absorption of EU funds and spending for the Euro 2012 soccer championships contributed to this outcome. financial market volatility and the launch of fiscal consolidation. particularly in the areas of public finances and business climate. This performance stems from a number of factors. the country had limited external imbalances in the years prior to the crisis. Growth also became more balanced in 2011. Monetary policy was accommodative in the context of the downturn.6 percent in the first quarter of 2010 to 9.6 percent to 5. It has also strengthened Poland’s already significantly strong position in the European Union. Prime Minister Tusk's Government is taking the beginning of his second term in office as a window of opportunity to launch necessary.
and (ii) a nominal freeze of the public sector wage bill. better public sector cash management.6 percent of GDP (2008). Poland is expected to be less affected than other economies in Central and Eastern Europe. Public Financial Management The Government has taken significant steps to improve the public financial management system. Public debt is projected to remain at sustainable levels. In 2012 and 2013. and (v) a freeze in personal income tax thresholds. Unemployment levels are expected to decline only in 2013 once growth accelerates again. The Government started fiscal consolidation in 2011. Fiscal Sector Performance Fiscal consolidation is among Poland’s main economic policy priorities. On the revenue side. In 2013.global demand and increased risk aversion in capital markets in 2012. On the expenditure side. (iv) the abolition of VAT exemptions on company cars and fuel as well as exemptions on excise duties on bio-fuels. As a result. stepped-up privatization.9 percent of GDP (2010) from 3. Prior to and during the crisis. a steady appreciation in the exchange rate.5 percent of GDP in 2011 through a combination of revenue and expenditure measures. growth is projected to slow in 2012. and health to secure the sustainability of the public finances and to protect fiscal space needed for strategic infrastructure and human capital investments. growth is expected to strengthen to around 3. The Government is set to continue medium-term fiscal consolidation and pursue reforms to entrench the sustainability of social spending.9 percent of GDP in 2010. In parallel. As uncertainty continued in early 2012. growth in global trade and industrial production has been slowing in the region. (iii) a 4 percentage point increase in excise duties on tobacco. the general government deficit more than doubled to 7. authorities plan to implement a wide range of structural reforms in the areas of pensions. With private demand subdued and public demand tightening due to fiscal consolidation. The strong economic recovery. The fiscal deficit is projected to decline to around 3 percent of GDP in 2012. the growth in government spending was contained by: (i) a temporary fiscal rule limiting increases in all newly enacted and existing discretionary expenditure items to 1 percentage point over the rate of inflation (CPI). . Poland adopted fiscal relaxation measures of about 2 percent of GDP. However. the main measures were: (i) a change in the pension system that shifted 5 percentage points of the contribution from the funded second pillar to the first pillar. The Government is expected to pursue further fiscal consolidation to gradually reduce the structural fiscal deficit to 1 percent of GDP in line with its medium-term objective. However. social assistance. there are substantial downside risks.9 percent of GDP in 2009 to 54.6 percent on the back of an improved external environment. and strengthened public debt thresholds at the local level are projected to be sufficient to maintain public debt below key national and EU thresholds. (ii) 3 a 1 percentage point increase in the VAT statutory rate. In the current external environment. Public debt according to ESA95 (Eurostat) methodology increased from 50. particularly if external demand declines further and funding pressures become more acute in capital markets due to a worsening of the situation in the Euro area. due to its large and diversified domestic economy. fiscal consolidation.5 percent in 2012. The general government deficit declined to around 5. including in Poland. consistent with Poland’s commitment under the Excessive Deficit Procedure (EDP). growth is expected to slow to 2. the largest stimulus among the EU10 countries. faster GDP growth and improved corporate income tax annual settlements aided revenue growth.
liquid. strengthened control and internal budget audit. Yet.3 percentage points was allocated for family and child allowances. . The main products include: public expenditure review on public financial management. respectively. an EU10 fiscal study on performance-based. and (iii) tight supervision. like Poland. (ii) lack of significant exposure to “toxic” assets in both the US and in the Euro area. Furthermore. This reflects: (i) solid fundamentals in the corporate sector. Out of 16. and quality of the budgetary process in Poland. and increased budget transparency through consolidation of some budgetary units and establishing separate budget for the EU funds. Large share of mortgage loans have been issued in foreign currency. public wages and social sectors. which. target family and child benefits based on income. According to the 2010 Household Budget Survey (HBS). which has prevented to date international parent banks to withdraw their support to domestic subsidiaries.In late 2009. and a technical assistance project on tax expenditures. the Polish financial sector has weathered the global financial crisis well. among others. In 2010 and 2011. and well-managed credit growth in the years prior the crisis. Poland’s spending on social assistance is low.9 percent of GDP that Poland spent on social protection in 2010. Social Assistance Relative to other branches of the social protection system. and the level of nonperforming loans (NPLs) was around 8. The Bank supported the public financial management agenda in Poland through a Development Policy Loan (DPL) series (the past and the current) as well as technical assistance projects. only two-thirds of the poor (defined as those in the poorest quintile based on pre-transfer per capita consumption) were receiving at least one social assistance benefit. The new legislation introduced. efficiency. The Czech Republic and Slovenia. which significantly strengthened transparency. and profitable. better liquidity management and enhanced public debt safety procedures.3 percent of assets. chiefly by Euro area banks. there are concerns about coverage and leakage. enhanced debt safety procedures. a public expenditure review on the Mazowieckie region. to low coverage for the minimum income programs. medium-term budgeting. which cover about half of the poorest quintile. Currently the government is finalizing legislation to introduce permanent expenditure rule to limit the growth of national government expenditure to a rate not exceeding the trend growth rate of GDP and plans to introduce controls on local government finances in the form of an annual aggregate deficit ceiling. The banking sector has not required public support and remains well capitalized. foreign ownership and close cross-border linkages with the main European 4 banking groups made the banking system vulnerable to the outbreak of the global financial crisis. and in principle could be subject to deleveraging. Coverage of benefits explicitly targeted at the poor varies between a relatively good coverage for family benefits.1 percent. Financial Sector Along with the rest of the economy. around 70 percent of the assets in Poland’s banking sector are foreign-owned. only 1. spend 1. Although Polish financial institutions were not involved in the purchase of toxic international assets. The capital adequacy ratio at the end of 2011 was 13. the Government continued to strengthen fiscal institutions through temporary fiscal rule (limiting the growth of expenditures to CPI+1).5 percent of GDP. the Parliament enacted the new Public Finance Act. mediumterm fiscal framework and performance-basedbudgeting.7 and 2.
Pensions In 1999. The objective of this change is to improve targeting by limiting entitlements for families of disabled individuals with relatively high income. fire-fighting services. The traditional pay-as-you-go system inherited from the socialist times was replaced with a multi-pillar pension system that included a notional defined contribution scheme (the first pillar) and a mandatory fully funded defined contribution scheme (the second pillar). through strengthening its administrative and analytic capacity and improving its management and decision-making processes. The reform will institute a minimum retirement age of 55 for these special pension groups instead of allowing them to retire after completing the required years of service. Currently. The Government plans to introduce some targeting to the child birth allowance program and marginal re-targeting of the Child Tax Credit (CTC) is planned for 2013 In addition. In addition. the Government decided to reduce the contribution rate to private Open Pension Funds from 7. The Bank supported the social protection agenda in Poland through a Development Policy Loans (past and current) series as well as technical assistance projects. respectively. men will reach the retirement age of 67 by the end 5 of 2020 and women by the end of 2040. while only one in seven go to disability beneficiaries.3 percent to 2. Poland undertook pension reform to avoid major fiscal stress to the pension system related to the rapidly aging society. . Most recently. The Government is also preparing reforms to special pensions for uniformed services (the military police. The mandatory length of service for these groups will also be increased from 15 to 25 years. Currently. and government security). an unreformed disability system with its much higher benefits than old age benefits could result in a roughly equal share of spending allocated between old age benefits and disability benefits. the Post Accession Rural Support Project has supported farmers’ social insurance reform by enhancing the efficiency of the KRUS agency. there are important medium. and use fiscal savings to finance an increase in minimum-income benefits. retirement ages for women and men are 60 and 65. The Government plans to gradually increase the statutory retirement age for men and women to 67 years old. In March 2011. Pensions’ component is also a cornerstone of the new DPL series (201213). With the sharp reduction in old age benefits.5 percent of the post-transfer consumption of the poor. accounting for just 16. the Bank built capacity of the Government staff for developing medium.which only reach 19 percent of the poor. Starting in 2013. The generosity of these benefits is limited.to long-term simulations for the Polish pension system. Following this gradual path. the statutory retirement age would increase by one month every four months (or three months per year).3 percent of gross wages. There have been also numerous technical assistance projects. regardless of age. respectively. border security. In addition. there is a plan to introduce income testing to the care givers benefit. and to shift the 5 percent of gross wages into the notional individual accounts of the state pension system. whose returns are linked to nominal GDP growth. more than twothirds of pension benefits go to old age beneficiaries. The Bank supported the pension sector in Poland recently through a series of DPLs which included the social sectors.and long-term challenges in the area of pensions: Unreformed farmers’ pension scheme KRUS Unreformed disability benefits threaten to swamp the system.7 and 27.
specialized. Education Poland’s education system has undergone profound changes during the last two decades. Poland’s education system is remarkably efficient and equitable. While the achievements are impressive. On average. (ii) adjust the pupil/teacher ratio to demographic trends. They improved the integration of general secondary and vocational education and delayed the vocational training track in order to expand students’ exposure to general secondary curricula. The previous series of DPLs supported government reforms in the area of pre-school. The bulk of public funding for personal care is channeled through national health fund (NFZ) which contracts with predominantly private providers for outpatient care and a vast loosely-defined network of hospitals. Poland spends relatively less on health than most European peers. the Government should undertake reforms to (i) further increase the coverage of preschool education by providing legal framework for more flexible and effective early child care. and hospital-based care . The Bank is currently exploring options to support a few voivodships on a fee-base. mandatory pre-school education of 5 year-olds and mandatory school education of 6 year-olds. Overall. the World Bank has been active in supporting the education sector in Poland. the Semashko-style system was replaced with universal health insurance in the late 1990s. mechanisms need to be developed to protect the most vulnerable from high out-of-pocket expenditures and the impact of rationing through waiting list. Recently. Education decentralization reform in the 1990s transferred the tasks of maintaining and managing preschools. and (iii) create more equitable and fiscally sustainable model of tertiary education financing. and made comprehensive amendments to the higher education legislation with the goal to further modernize higher education and connect it more closely to the labor 6 . and finally secondary schools to local self-governments in gminas and poviats. with a view to align the education system to the needs of a successful market economy. In terms of resources used. The most recent TA project (2010) aimed at strengthening the analytical basis of expenditure policies (through studies carried out by local experts projecting future health expenditure and analyzing hospital payments). and tertiary education.need to improve to adapt to the new epidemiological and ageing context.Health Development Poland’s health outcomes improved considerably in the nineties. but the performance in controlling non-communicable diseases and related risk factors needs to improve dramatically. In 1999. among others. through DPL and technical assistance (TA). the quality and continuity of care .in particular through coordination across primary. In addition. health outcomes in Poland are comparable to those of countries with similar level of development. the Bank’s program has consistently supported incentives for better economic and medical performance of health providers. the Government of Poland stepped up reforms of secondary education. These reforms helped to provide young people with flexible skills and improved their ability to absorb and generate new knowledge and technology. primary. On the health system side. increased the access to student loan programs. The Government introduced. and the public health budgets are tightly controlled The system however faces a number of challenges: the hospital sector needs further reorganizing. In the past few years. both in terms of financing and management. They also led to a remarkable leap forward in Poland’s position in international assessments. there remain important challenges. Specifically. primary schools.
and preparing policy notes on enhancing teacher performance. Apart from lending.market. as well as North-South and East-West transit needs require modern infrastructure and well-organized transport and logistics services. providing policy advice on linkages between science curricular practices and the development of human capital for research. science and technology. A continuously growing economy. including ecological. and a 20 percent improvement in energy efficiency. It focuses on concerns about economic growth and jobs. drawing upon good international practice. Energy Efficiency. The Bank has provided extensive comments of different sections of the draft Human Capital Development Strategy and provided input for the work on the strategy through a workshop on Lifelong Learning. Improving energy efficiency is a priority of the Polish energy policy. The Bank also supports regional and local level partners in strengthening transport infrastructure institutions and regional. Energy The role of energy security in supporting sustained economic growth remains a high priority in the Government’s energy strategy. The Government remains committed to meeting its 2020 targets for Renewable Energy. metropolitan. primarily the EU and the European Investment Bank (EIB). World Bank funding was until 2011 supplementing activities supported by other external funds providers. The Government has been completing an ambitious motorway and expressway development program. by 2020. Priority for modernizing the transport sector is additionally magnified in the context of hosting. The EU climate change and energy package. Transport Poland implements one of the largest transport infrastructure investment programs in the EU. The new transport strategy developed as part of the National Development Strategy is expected to address several important policy challenges related to the sustainability of funding for increasing maintenance and rehabilitation cost. These needs are emphasized by the fact that underdeveloped domestic and international transport infrastructure was. The Government is also concerned about "carbon leakage" (the loss of jobs in energy intensive industries to higher polluting countries) and the costs associated with accelerating their decarbonization program. and GHG emissions reduction. the Bank has also provided technical support through organizing regional conferences on higher education reform. while ongoing policy dialogue led to preparation of the Transport Policy Note: Towards Sustainable Land Transport in Poland in 2010. 20 percent of EU energy consumption to come from renewable resources. as well as creating a favorable regulatory framework 7 policy that will stimulate fair and sustainable intermodal competition and optimization of external costs of transport. As an EU member state. including ICT. along with Ukraine. assessing the quality of educational services at higher education institutions and the preparation of teachers for modern teaching methods. or the “20-20-20” targets. and to some degree still is. a 20 percent reduction of greenhouse gas emissions below 1990 levels. Poland is subject to EU policies on climate change mitigation. the EURO 2012 Football Championship. requires comprehensive action by EU members to achieve. perceived by local and global investors as one of the key obstacles hampering competitiveness of the Polish economy. and municipal level transport strategic planning by providing targeted technical assistance to regional and municipal partners. The 20-20-20 package requires Poland’s energy-intensive sectors to contribute to the EU-wide target while allowing Poland’s other . increasing foreign trade with neighboring EU partners. the role of railways in the transport system.
The Ministry of Finance would like this to support their budget and highlighted the need to ensure that it would be budget neutral. the Government adopted a new National Strategy for Regional Development 20102020: Regions. and rising differences between rural and urban regions. The Bank supports the energy and climate change agenda in Poland through knowledge activities and financial support. and in particular following EU accession. A US$ 1. regional development gained even more importance. Despite impressive economic growth over the past 20 years. There are various dimensions of territorial inequality in Poland: the gap between the western and the eastern parts of the country. Poland is the most decentralized country in Central and Eastern Europe. (2) development of Home Area Networks to enable Smart Meters to provide energy efficiency services to households and small and medium enterprises. The new model assumes a shift toward support for endogenous development and the business 8 environment. Cities. . Early indications are that the project design can be budget positive. Regional Development Regional development within Poland is high on the political agenda. After the decentralization reforms of the early 1990s. A follow-up loan for fiscal year (FY) 2013 that builds on the DPL with an Energy Efficiency Project is currently considered. Following its accession to the EU in 2004 and increased availability of EU structural funds. as well as the planned financial support to municipalities. reducing the need for the Federal and Municipal Governments to subsidize housing for low income people that is energy inefficient. and (3) a macroeconomic assessment of an acceleration of the Government’s energy efficiency program. significant disparities in the level of development and economic performance between regions still exist. and Rural Areas to tackle regional development challenges in line with the new development model proposed by the EU. The World Bank has been actively involved in the regional development agenda through working directly with the Ministry of Regional Development as well as selected local selfgovernments. This program has been followed-up with support through three technical assistance studies: (1) support for the establishment of a publicly available database of building efficiency. the privileged position of the capital city. and is aimed at fostering innovation-oriented initiatives. building on regional potentials.sectors’ emissions to increase by 14 percent compared with 2005. Recently.1 billion DPL was approved in June 2011 to primarily support the Government’s energy efficiency program and also included support for the renewable energy agenda. The modalities of the Bank’s support are defined in the Subnational Cooperation Action Plan 2010-2012 and include knowledgebased activities.
Figure 1. The strategic objectives of the CPS are (i) Social and Spatial Inclusion. transport or energy operations. It is envisaged that the more traditional business model with lending to the central government would gradually trend toward an increased emphasis on sub-national and fee-for-service business. The recent lending program has been anchored around the programmatic DPL series in support of the Government reforms in public finance. deregulation and the enabling environment for doing business. The CPS was updated through a Progress Report (June 2011). with the third DPL fully disbursed in July 2010. Fiscal Year starts July 1. public finance and financial management reform. guided by the Bank’s main value-added relative to other partners (notably the EU and EIB). including a series of three programmatic DPL totaling up to EUR 3 billion (US$ 4 billion). proposed for DPLs. regional development. In the short-term. interventions aimed at supporting private sector credit growth and SME access to finance. Fiscal Year starts July 1.THE WORLD POLAND BANK PROGRAM IN The Country Partnership Strategy (CPS) 20092013 was presented to the Board in June 2009. distributed evenly across three loans. (iii) Growth and Competitiveness. The program amounted to EUR 3 billion (around US$ 4 billion). Specific interventions are selective. . the World Bank and the Ministry of Finance of Poland signed a new EUR 750 million (US$ 1. particular attention is given to supporting adequate social safety nets during the economic downturn. 9 Lending Program. and private sector development. The Strategy remains much the same but with an increased European lens of supporting Poland in its efforts to make the most of EU membership and to further develop the two-way knowledge partnership between Poland and the World Bank. labor market and social sectors. In June 2011. while not losing sight of the reforms needed to support strong and high-quality growth over the medium. climate change (notably focused on the energy sector).5 billion. 2012. The Bank’s FY12-13 financing program is planned for up to US$ 2 billion. This lending program was the largest since Poland joined the Bank. sub-national lending. Key policy areas identified within these broader themes include social sector reform. with new planned IBRD lending of about US$ 4. Disbursements in US$ million by Fiscal Years Notes: *As of March 15. Figure 2. and infrastructure investments. World Bank New Commitments in US$ million by Fiscal Years (*FY12 commitment in pipeline) Notes: *Commitment in pipeline as of March 12. 2012. This DPL supported the energy efficiency and renewable energy components of Poland’s implementation of the Energy Policy of Poland until 2030 program. transport infrastructure development.11 billion) Energy Efficiency and Renewable Energy Development Policy Loan.to long-term. and financial sector stability. and (iv) Regional and Global Public Goods. (ii) Public Sector Reform.
compliance with environmental regulations. The GEF energy efficiency project was successfully implemented in more than 20 schools in Krakow. further work on the piloting program will not been continued. A road maintenance and rehabilitation project (99. The total disbursement in FY12 amounts to US$ 1. out of which US$ 160.1 percent loan disbursed) and rural development project (100 percent loan disbursed) were closed in second half of 2011 and implementation completion reports (ICRs) will be prepared in FY12. knowledge and competitiveness and technical assistance on: health. including financial sector technical assistance in banking area. innovation. such as support for the Regional Development Strategy for Lubelskie – FBS cost sharing. . an innovative study on transitioning to a low emissions economy. improving the regulatory environment (Fee based service [FBS] jointly with the International Finance Corporation [IFC] within the Doing Business agenda).08 billion Energy Efficiency DPL fully disbursed in July 2011 and US$ 19 million related to investment projects). Total commitment of the active investment portfolio amounts to US$ 195 million. Sub-national work included selected Public Expenditure Reviews for the Mazowieckie region and key policy studies related to the Warsaw City transport operation. work related to the development of the sub-national business line. innovation. There are also one Global Environment Facility (GEF) project. Portfolio Performance. but the guarantee component was not successful and the project has been restructured. sub-national 10 debt.Analytical and Advisory Assistance (AAA) Program. tax expenditure report. The Bank carried out a safeguards assessment of the country systems in preparation for potential new operations. Other diagnostics included a national transport policy review. The procurement assessment concluded that due to several differences between the Polish Public Procurement System and the Bank's requirements for application of Use of Country Systems. Green Investment Scheme. core diagnostics.1 billion (including a US$ 1. lifelong learning. After reallocation the remaining funds were used for existing Thermo-modernization Fund projects. and activation strategies. and AAA on education. health. Over FY10-11. carbon fund. agriculture taxation. financial sector TA focused on diagnostic of credit unions in Poland. The Odra river project is now moving slowly forward with procurement for works to start in 2012/2013 covering about threequarters of the project volume. public pay review. reforms of courts. subnational Doing Business. and three Prototype Carbon Fund (PCF) renewable energy projects. Poland as an international partner. and TAs on public wages. human capital development. and financial reporting technical assistance (FRTAP) funded by the Swiss Confederation and managed by the World Bank Centre for Financial Reporting Reform. Further AAAs in the pipeline include potential FBSs on: shale gas. bank resolution framework. and training for Supreme Audit Institution (SAI). the application of the land acquisition and environmental safeguards will still require close monitoring. including work related to the DPL series. and pensions. ROSC Financial Sector Assessment. AAA on performance-based budgeting and revenue administration. and innovative studies that could pave the way for future business expansion. and the central government level. PPP. The FY12 ongoing AAA program covers both the sub-national level. The DPL-related work covered a Public Expenditure Review. enforcement and insolvency within Doing Business.1 million is undisbursed. the Bank delivered several AAA works. The Current Portfolio consists of one investment project on flood protection on the Odra River. and an EU regional pension policy review. e-government.
2012. The area to be acquired to obtain the construction permit for the dry polder is 1. All designs are being updated and works procured through ICB. Key Partners: The main partners are the Ministries of Administration and Environment.Bank European Union Total Project Cost *As of February 29. The project is being implemented in three phases. in the third and final phase. Construction of a flood retention dry polder (reservoir) near Raciborz upstream of Wroclaw.9 130. 2014 Financing in million Euro: Financier Government of Poland World Bank Council of Europe Dev. especially for the construction of the 22km long dikes for the dry polder in Raciborz. the land is being acquired. As the final total cost is likely to be close to US$ 0. as well as widening of bridges and weirs. the works implementation will start exhausting the funds. however. These areas are heavily affected by recurrent devastating floods.4 The Odra River Flood Protection Project (ORFPP) will ensure better protection to the population in south-eastern Poland (Silesia). 2007 Closing: November 30. The project has three main components: Rehabilitation and modernization of dikes and river embankments.0 121.0 505. such as Natura 2000 sites.0 37.5 191.6 Undisbursed 24.260 ha.ODRA RIVER FLOOD PROTECTION PROJECT (ORFPP) Project No. the implementation structure was established and staff trained. Environmentally significant values. 2007 Effective: July 9. Water Management Boards. dredging of waterways and improvement of the floodwater by-passing capacity.6 13. financial partners are the European Commission (EC) and the Council of Europe Development Bank (CEB). such as the 1997 flood. and in particular the economically crucial city of Wroclaw. lately in 1997. the implementation involves several ministries (notably the Ministries of Administration and Environment) and four project implementation units (PIUs) inside the four regional Implementing Agencies. receive protection or are compensated.0 0.0 Disbursed 6. to allow better prevention of flood damage and minimize damages. this project is among the Bank’s larger engagements in Europe. In addition. the Institute of Meteorology and Water Management (IMGW). starting 2012.1 204. 086768 Key Dates: Approved : March 21.75 billion. and Improving flood forecasting and flood management capabilities. The project is co-financed by the CEB and three EU Cohesion grants. Expected Results: (i) Improved protection for about 2.9 130. The teams of experts have been recruited to assist these Agencies.0 140. eventually. (ii) Improved flood forecasting.5 million people in the Wroclaw area. is expected to have leveraged about 5-6 times more funds. This first phase was completed at the end of 2009. and Voievod and local governments. In the second. current phase. First. Land acquisition and associated resettlement necessitated by the project activities are being carried out according to the World Bank standards. Financing 30. as well as other urban centers and towns upstream of Wroclaw against severe flood episodes. The Bank’s finance. from loss of life and damage to property caused by severe flooding.0 467.0 18. The preparatory activities so far did not absorb much funds. 11 .
an analysis of Home Area Networks within smart grids and a national Registry of Energy Performance Certificates for buildings. Although substantial success in supply-side EE programs has already been achieved nationwide.00 53. and (iii) stimulating the demand for energy efficiency services in the building sector and increasing awareness and capacity of commercial banks to originate and implement loan transactions for EE investments. Finally. and successful efforts to increase penetration rates of EE technologies and practices would yield significant long-term economic and environmental benefits for building owners and the economy at large. the building sector has been an underserved market for efficiency investments for a variety of reasons. the Project has financed key studies and technical assistance addressing barriers for energy efficiency such as a macro-economic assessment of energy efficient policies. and other public buildings have been facilitated using an Energy Service Company (ESCO) model. Key Partners: The Bank team worked closely with the Ministry of Economy. health care facilities. (ii) demonstrating the feasibility of packaged investments in higher-cost energy efficiency measures in buildings and increasing acceptance of energy performance contracting mechanisms (ESCO) in Poland. As a result.ENERGY EFFICIENCY PROJECT Project No. and POE ESCO (energy service company in the Malopolskie region). it is widely acknowledged that substantial additional improvements in enduse energy efficiency and in air quality can still be achieved.8 million that has leveraged 390 retrofits of residential buildings with a total investment value of nearly US$ 43 million. The need to improve Energy Efficiency (EE) and to safeguard the environment has been a cornerstone of Poland’s energy and environmental policy since 1990.6 43.40 9. total investments of over US$ 9 million for energy efficiency improvements in schools. 2005 Closing: June 30. 2012.14 GEF Grant Private Sector Total Project Cost * World Bank disbursement as of March 15.50 Disbursed 10. The Project has supported the national Thermo-Modernization Program the Project including through a contribution of US$ 5. The Project addressed a range of interconnected sector issues by: (i) overcoming the risk barriers in the financial markets inhibiting commercial bank participation in energy efficiency project financing. Results achieved: The Project successfully demonstrated the commercial viability of bundling high-cost measures with lower cost measures by partially financing the greater up-front costs of measures such as efficient windows and insulation through a US$ 2 million capital grant.50 64. The Project Development Objective aims to increase public and private sector investments in energy efficiency in buildings. 2012 Financing in million US Dollars*: Financier Financing 11.36 Undisbursed 0. P070246 Key Dates: Approved : October 14. Note: Disbursements may differ from financing due to exchange rate fluctuations at the time of disbursement. Bank Gospodarstwa Krajowego (BGK). 2004 Effective: March 18. 12 .80 19.70 45. Within this context.
Against the backdrop of tight fiscal constraints and the need to maintain economic growth and alleviate poverty. has initiated said implementation. and. The Energy Regulatory Office issued a draft Regulatory Statement which covers all the key areas of implementation of Smart Meters. thereby detailing its commitment of at least 15 percent of renewable energy use by 2020. Biomass and wind power are expected to be the main sources of new renewable energy through 2020. and reduce air pollution. This DPL is to support the energy efficiency and renewable energy components of Poland's implementation of the Energy Policy of Poland Until 2030 program. P115426 Key Dates: Approved : June 6. diminishing its impacts on human health. Electronic Tolling System charges for heavy vehicles on major national roads sections implemented.ENERGY EFFICIENCY AND RENEWABLE ENERGY DPL Project No. Results achieved: The Act on Energy Efficiency was approved by the Parliament on April 15. The Government submitted its National Renewable Energy Action Plan to the European Commission. 2011 Closing: March 31. and (ii) increase the share of renewable energy in final energy consumption to 15 percent by 2020. 2011 Effective: July 5. the building sector will be the primary focus of measures to reduce energy use. create "green jobs" through significant energy efficiency and renewable energy investments. The Government provided incentives to increase the share of cogeneration by allowing cogenerators to price their bulk heat up to the average price of heat produced by heat-only boilers. 2012 Financing in million Euro*: Financier IBRD Financing 750 Disbursed 750 Undisbursed 0 * World Bank disbursement as of March 15. thereby establishing the Borrower’s White Certificates Program as a mechanism to meet its energy efficiency targets. Because of its large energy savings potential. The program and the policies are expected to help to: reduce the cost of "greening" energy services. energy efficiency measures have been identified as the highest priority and least cost way to decrease airborne emissions. and promulgated by the President on April 29. 13 . The Project Development Objective is to support the Government’s program to: (i) decrease actual final energy consumption by 9 percent by 2016 and reach a 20 percent reduction target by 2020 compared to business as usual. These targets are part of Poland’s commitment towards the EU in the context of the latter’s energy and climate change package. thereby supporting sustainable economic growth. Government allocated PLN 200 million for financing the Thermo-Modernization and Renovation Fund in fiscal year 2011. through the State-owned enterprise Energa. 2011. 2011. 2012.
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