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The National Reconstruction Plan

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What is a National Reconstruction Plan?

The National Recovery and Resilience Plan (KPO) is a development plan for Poland designed to stimulate and develop the economy after the crisis caused by the COVID-19 pandemic. Its function is to increase the country's socio-economic resilience by creating jobs, introducing innovation, modernising infrastructure, digitalisation, promoting sustainable development, health, education, and supporting green energy.

The KPO is in line with the EU Council Recommendations for Poland (CSR) and the National Reform Programme, and consists of 55 investments and 55 reforms.

Has Poland been paid money from the KPO?

The National Reconstruction Plan (KPO) has been discussed and negotiated at various levels both in Poland and in the European Union, and its approval process has faced several obstacles.

One of the main reasons for blocking the KPO was the European Commission's reservations regarding the rule of law in Poland. The Commission expressed concerns about the judicial reforms and the independence of the courts that started in 2017. These were seen as a potential violation of the rule of law, which is fundamental to the European Union.

In Poland, there was also a debate on the KPO. Differences of opinion between Mateusz Morawiecki's second government (2019-2023) and the opposition, as well as within the parliamentary majority, the United Right, influenced the shaping of the final version of the plan. Discussions ranged from spending directions to issues related to the rule of law. This resulted, in the blocking of funds that were to be used as early as 2021.

After the elections on 15 October, when the incumbent opposition won a majority, the process of unblocking the KPO accelerated. However, it required negotiations and compromise between the Polish government and the EU institutions. Poland had to show a willingness to introduce changes and reforms that would be acceptable to the European Commission, especially in the context of the rule of law.

This led to the 'unblocking' of the KPO on 8 December 2023. Poland has until the end of the year to draw down the first €5 billion as an advance payment. It is anticipated that the process of obtaining the remaining funds will only be a matter of time and the introduction of appropriate reforms related to the implementation of the so-called 'milestones'.

In order to meet the EU's requirements, the Polish government headed by Donald Tusk has agreed to make the appropriate changes to national legislation, particularly with regard to the functioning of the judiciary and the independence of judges.

 

What is the value of the KPO and what will the funds be used for?

Poland will receive PLN 268 billion, including PLN 113.28 billion in grants and PLN 154.81 billion in preferential loans, which must be repaid by 2058.

 

For what period are KPO funds allocated?

The KPO covers economic reforms and investments from 1 February 2020, ending on 31 August 2026.

 

What are the main KPO supported areas?

  • Spatial planning and development
  • Accelerating robotization, digitization, and innovation
  • Creating conditions for a circular economy (Circular Economy)
  • Strengthening cooperation between science and industry
  • Human resources for a modern economy - improving the adjustment and adaptation of human resources to the changing labor market
  • Improving the situation of parents in the labor market by increasing access to care for children up to 3 years of age
  • More flexible forms of employment, the introduction of remote work

  • Clean air and energy efficiency
  • Improving conditions for the development of renewable energy sources
  • Improving conditions for the development of hydrogen technologies and other decarbonized gases
  • Support for sustainable water and sewage management in rural areas
  • Facilitating the implementation of the obligation to save energy by energy companies
  • Support for investments in offshore wind farms
  • Investments in increasing the potential for sustainable water management in rural areas
  • Comprehensive green transformation of cities
  • Construction of apartments intended for households with low and moderate incomes, taking into account energy efficiency

  • Providing access to very fast Internet in white space areas
  • Cybersecurity – CyberPL, infrastructure for data processing and provision of digital services, and optimization of the infrastructure of state services responsible for security
  • Equipping schools/institutions with appropriate ICT devices and infrastructure to improve the overall performance of education systems
  • Public e-services, IT solutions improving the functioning of economic sectors, and breakthrough technologies in the public sector, economy, and society
  • Equalizing the level of school equipment in portable multimedia devices

  • Increasing the efficiency, availability, and quality of health services
  • Creating appropriate conditions for increasing the number of medical staff
  • Creating favorable conditions for the development of the medicines and medical devices sector

  • Increased use of environmentally friendly transport
  • Increasing the competitiveness of the railway sector
  • Increasing transport safety

  • Actions to improve the quality of institutions and conditions for the implementation of the National Recovery and Resilience Plan

What does the process of obtaining funding and implementing EU projects look like in a nutshell?

1

Selection of relevant EU competitions

Verification of which European fund programmes will be best for obtaining funding

2

Preparation and submission of an EU application

Preparation of all documents in the application and ongoing contact with the institutions managing EU funds

3

Signing of the EU grant contract

Evaluation of the contract, and start of disbursement of funds

4

Accounting and project management

Accounting for European funding received

 

Contact us for more information and an up-to-date schedule of projects available for your company/organisation.