Structure of Financing Public Infrastructure Investments – The Case of Poland

Krystyna Brzozowska
European Research Studies Journal, Volume XXVI, Issue 3, 635-645, 2023
DOI: 10.35808/ersj/3238

Abstract:

Purpose: The aim of the review study is to analyze the structure of financing of infrastructure projects in Poland, divided into individual types of local government units. Design/Approach: The research concerning the structure of financing in Poland for infrastructure investments in 2007- 2022 was conducted on the basis of secondary data from statistical data included in reports on the implementation of budgets of local government units published on the websites of the Ministry of Finance and the Ministry of Funds and Regional Policy were used. The subject of the study was the sources of financing for infrastructure investments, divided into investment subsidies, credits and loans, bonds, and private shares. Findings: The extraordinary situation in the world, triggered and exacerbated by the COVID-19 pandemic, has caused negative changes in the infrastructure sector. At the country level like Poland, there is a noticeable shift in the proportion of infrastructure investment financing. The conducted research clearly confirmed the debt nature of the structure of financing investments carried out by local government units in Poland. The situation caused by the COVID-19 pandemic resulted in a reduction in the share of budget subsidies and EU subsidies in the financing structure of public investments in Poland due to the need to reallocate funds to fight the pandemic. Practical implication: The research conducted on the financing structure of infrastructure investment in Poland may provide a rationale for expanding research in this area in another countries and regions and assessing the vulnerability of financing relationships to unexpected external difficulties. Originality/Value: The study, in the form of a scientific contribution with a high degree of applicability, takes the form of a review using literature and published statistics and was geared towards analyzing and assessing changes in the financing structure of infrastructure investment in particular forms of local governments in Poland.


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