BaltCap Infrastructure Fund to finance modernisation of public buildings in Mielno, Poland

The Poland-based company IZIM, which is owned by BaltCap Infrastructure Fund (BInF), has won a municipal tender in the Polish coastal town of Mielno on increasing the energy efficiency of public buildings. The fund will invest more than EUR 4 million (over PLN 17 million), which will be used to renovate two schools, a social care centre and a sports facility.

IZIM will carry out project and, under a Public Private Partnership (PPP) contract with the municipality of Mielno, ensure the renovation and maintenance of the buildings. The contract was signed on 29 November 2019 and has a length of 8 years. The event is noteworthy because this is the first hybrid project in the Zachodniopomorskie voivodship.

“This is an exceptionally important day for the Municipality of Mielno. The signing of this contract is the crowning moment after four years of hard work. This is the largest contract in our municipality’s history and the largest project financing from the Marshal’s Office. We are proud to be implementing the first hybrid project in the Zachodniopomorskie voivodship. Of course, this is also a formidable challenge – we are getting signals that numerous municipalities are watching our moves and considering whether to follow in our footsteps. I think that this is an important moment for development of the PPP market not just in the region but also throughout Poland,” said Olga Roszak-Pezała, Mayor of Mielno.

The renovation works in all four locations – the primary schools at Lechitów St. in Mielno, the primary school at Nadmorska St. in Sarbinowo, the MOPS building at 6 Marca St. and the MOSiR building at Słoneczna St. in Mielno – will include, among others, insulation of walls, windows ugrade and modernization of heating installations. Energy-efficient LED lighting and photovoltaic panels will also be installed in the buildings, which will significantly reduce electricity bills. The project also includes implementation of a remote energy management system that will allow 24/7 management, control and monitoring of heat and electricity consumption in the facilities.

“This project will make it possible to not just improve the quality of public services provided by the Mielno municipality but also reduce the consumption of heat energy and electricity as well as CO2 emissions by more than 70 percent. We expect it won’t be the last energy efficiency project in our portfolio – a number of bids of a similar nature are now in preparation in public tenders being held by Polish municipalities,” said BaltCap Infrastructure Fund Partner Šarūnas Stepukonis.

BaltCap established the €100 million BInF for investments in the development and renewal of transport, renewable energy, energy efficiency and muncipal infrastructure.

The European Investment Bank has committed €20 million to the fund, with financing guaranteed under the European Fund for Strategic Investments (EFSI), a central element of the European Commission’s Investment Plan for Europe (also known as the Juncker Plan). The European Bank for Reconstruction and Development (EBRD) has also committed €20 million. The fund has a length of 20 years and its investors include all the largest pension funds in the Baltic States, a life insurance company, and other institutional investors. Combined investments by Lithuanian, Latvian and Estonian pension funds account for 60 percent of all investments in the BInF – the largest-ever commitment to a single fund by local pension funds in the Baltics.

The project – entitled “Modernisation of public utility facilities in Mielno Municipality” – is co-financed by the European Union under the Regional Operational Programme for Zachodniopomorskie Voivodship 2014-2020.

For more information please contact:

Šarūnas Stepukonis
Partner, BaltCap Infrastrcuture Fund
sarunas.stepukonis@baltcap.com
Tel: +370 6866 6201