FIBRE OPTIC NETWORK EXPANSION POLAND (FONEXP)

Promoter – Financial Intermediary

SWIATLOWOD INWESTYCJE SP ZOO

Location

• Poland

Description

The project relates to the deployment of a new FTTH (fibre to the home) access network in areas of Poland where very high capacity networks are not available. The new network will serve 1.1 million homes and will be operated on a non-discriminatory wholesale access basis only, selling wholesale services with equal terms and conditions to all retail operators.

Additionality and Impact

The project addresses the market failure to invest in VHCNs as a result of the historical market power of the incumbent for basic broadband and the low interest to invest in smaller networks on a scattered basis over the whole country.
The project is fully in line with the 2025 Gigabit Society targets. The improved VHCN coverage provided by the project in rural and/or underserved areas in Poland will have significant impact on the regional development, as these broadband connections are required to reap the benefits of digitalisation of economic sectors, such as agriculture, tourism and commerce. The project will produce significant energy savings comparing to existing broadband solutions thereby contributing to climate change mitigation.
The EIB's long-term loan will diversify the project sources of long-term funding in local currencies and ensures that the project does not have to be scaled back in the context of the current economic uncertainties resulting from the pandemic situation. Accordingly, EIB's participation will provide additional comfort to co-investor and co-lenders.

Objectives

The project is fully in line with the Digital Single Market Strategy, stating that by 2025 all schools, transport hubs and main providers of public services as well as digitally intensive enterprises should have access to internet connections with download/upload speeds of 1 gigabit per second to foster smart growth and develop an economy based on knowledge and innovation. A significant part of the project is located in cohesion priority regions.

Sector(s)

• Telecom - Information and communication

Proposed EIB finance (Approximate amount)

PLN 600 million (EUR 132 million)

Total cost (Approximate amount)

PLN 2448 million (EUR 537 million)

Environmental aspects

Investments in fixed telecommunications projects do not fall under Annex I or II of the EIA Directive 2014/52/EU amending the Directive 2011/92/EU. Fixed telecommunications systems have limited environmental effects, apart from disturbances during civil work constructions, which will be mitigated by appropriate measures. Moreover, the Promoter is planning to re-use existing infrastructure as much as possible to minimise the need for civil works.

Procurement

The Promoter has been assessed by the EIB as being a private company not subject to EU rules on public procurement or concessions.

Status

Signed - 14/07/2021