“BGK, one of the key pillars of the ’Polish Investments’ programme, increasingly contributes  to strengthening the Polish economy and creating investments strategic for the country or its regions such as the building of the Puławy Power Plant. BGK creates a development platform for Polish companies to prepare them to financing projects with lower share of the European Union grants, which probably will happen in the next financial perspective,” said Wojciech Kowalczyk, Deputy Minister of State Treasury.

The new Puławy Power Plant is one of the key investments in the Grupa Azoty Group and the biggest energy project being implemented in Lubelszczyzna region recently. “The Puławy Power Plant will be the best plant of this type in Poland. Thanks to this investment we will join the group of the top companies investing in energy,” said Zygmunt Kwiatkowski, President of the Puławy Power Plant. “The aim of the project is to increase energy efficiency. The power plant will be low-emission, non-waste and ecological. Thanks to it, the emission of carbon dioxide will be reduced by half. This solution perfectly fits the European Union climate policy,” said Mr Kwiatkowski. The today’s agreement is a continuation of long-standing cooperation between Bank Gospodarstwa Krajowego and the Grupa Azoty Group. In April this year, BGK together with consortium of banks granted funds for implementation of investment programme which is included in the company’s strategy until 2020. The total value of the signed agreement amounted to PLN 1.5bn (in total for all consortium banks). However, in last autumn BGK granted a term credit to Zakłady Azotowe Kędzierzyn, subsidiary of Grupa Azoty S.A., which amounted to PLN 256m. These assets were allocated to co-financing the building of a new CHP plant. 

In the case of the investment in Puławy, Bank Gospodarstwa Krajowego will be responsible for organization of financing in the form of ‘project finance’ (financing for SPV). The Puławy Power Plant Sp. z o. o., in which Grupa Azoty Puławy holds 100% shares, will be the credit receiver . “We are very pleased with the trust placed in us  by Grupa Azoty, which entrusts us with the organization of financing of its investment, which is very important, as far as the economy is concerned,” said Jacek Szugajew, Vice-President of the Management Board of Bank Gospodarstwa Krajowego. “Building of the power plant in Puławy will be the 56th project of the industrial sector, financed by the bank as a part of the governmental programme entitled ‘Polish Investments’. Our financial commitment to this programme amounts to over PLN 23bn and is systematically growing,” added Mr Szugajew.

The planned investment will be low-emission and non-waste because it will be powered by natural gas, which fits the European Union climate policy. Development of gas energy allows considerable mitigation of expenses for carbon dioxide emission. Energy based on natural gas is becoming more popular in Europe, following continuous liberalization of the market of this raw material.

‘Polish Investments’ is the government initiated programme, established in order to facilitate  investments which are particularly important for the country and which allow to maintain the pace of the economic growth. The programme is intended for companies and self-governments. Bank Gospodarstwa Krajowego and Polish Development Investments have already provided financing to viable infrastructure projects with the total amount of over PLN 23bn. BGK facilitated taking investment and working capital loans worth PLN 34bn to entrepreneurs from SME sector.