The funds are linked to specific initiatives and business plans aimed at upgrading the country’s defensive capabilities, the Rzeczpospolita daily reported on Tuesday.
The financing will flow to three subsidiaries:
- PCO S.A. in Warsaw (PLN 261 million),
- Wojskowe Zakłady Elektroniczne S.A. in Zielonka (PLN 67.59 million),
- Wojskowe Zakłady Łączności Nr 1 S.A. in Zegrze (PLN 150.08 million).
Polish officials say these funds represent the first tranche from a previously announced PLN 4 billion program aimed at bolstering national defense industry capabilities. In earlier statements, some experts had expressed concerns about stalled or “underperforming” defense investments, including the so-called “Project 400” to reinstate domestic gunpowder production in Pionki and a second production line for Krab self-propelled howitzers.
Focus on Narew Program
A portion of the new capital is intended to support the country’s largest and most complex defense modernization project: the medium-range air defense system known as “Narew.”
With an estimated cost in the tens of billions of zlotys, Narew forms part of Poland’s integrated air and missile defense efforts, complementing the “Wisła” and “Pilica Plus” programs. Combined, these initiatives may total roughly PLN 250 billion by the early 2030s, according to Rzeczpospolita.
General Michał Marciniak, appointed by the defense minister to oversee the integrated air defense and missile defense system, welcomed the new investment. “I’m glad the process is finally moving forward, because the Narew program will soon enter a critical phase with technology transfers from our British partners,” Marciniak told Rzeczpospolita.
Defense industry insiders note that PGZ’s successful allocation of the funds could fast-track key elements of the Narew project and expedite Poland’s broader defense modernization efforts. The Ministry of State Assets, in turn, has signaled that each recipient company within PGZ will be required to account for how it deploys the newly allocated funds, reinforcing the government’s intention to ensure accountability and measurable outcomes in defense projects.
(jh)
Source: PAP, IAR