Public-private partnerships for military infrastructure: The European Investment Bank’s recommendations for Poland
The opportunities for using public-private partnerships in the Polish defence sector are attracting greater and greater attention. This is particularly evident in the context of the current challenges in implementing the Pact for the Security of Poland—Central Pomerania and the recommendations from the European Investment Bank for execution of key infrastructure projects. The Pact for the Security of Poland report was announced on 5 September 2025 in the Pomeranian city of Ustka. This strategic document calls for implementation of key infrastructure projects, including upgrading of seaports, expansion of transhipment terminals, and adapting road and rail networks for military transport.
PPP in the defence sector—why is it worthwhile?
PPP is a form of cooperation between the public and private sectors in executing projects, including services traditionally performed by the state. Like public procurement, PPP falls within the category of public contracting and is subject to the Public Procurement Law (although PPP is also regulated by the separate Public-Private Partnership Act).
The crucial difference between traditional public procurement and PPP is that while in traditional procurement the contracting authority acquires specific assets or services, which it then uses to deliver public services on its own, in PPP the state purchases a turnkey solution from a private partner, and the services are then delivered directly to the citizens.
PPP cooperation is long-term, as the private partner comprehensively designs, builds, finances and maintains the asset over the entire cooperation period, and its fee depends on the quality of the service it delivers. For example, if a hospital is built through the PPP model, the public entity obtains medical services provided in state-of-the-art buildings, along with a system for managing the healthcare facility. Similarly, a public entity may purchase a road or rail service delivered using transport infrastructure built and maintained by a private entity, the service of treatment and disposal of municipal waste, or the service of housing the country’s military personnel.
PPP projects may not be commonly associated with the military sector, but this model is capable of generating particular benefits in the field of defence and security. The EIB report “Public-private Partnership in Security and Defence” from April 2025 argues that cooperation in the PPP approach in the defence sector can contribute to:
- Cost efficiency through leveraging private-sector expertise
- A focus on core activities by security and defence authorities
- Introduction of innovations and advanced technologies
- Greater certainty of timely delivery
- Better long-term maintenance of infrastructure.
In an era of growing defence demands and limited public budgets, PPP allows private capital and specialised knowledge to be devoted to implementing dual-use projects, serving both military and civilian purposes.
European experience and the scale of the market
According to EIB data, the overall capital expenditures on PPP related to defence and security in Europe in 2000–2023 was EUR 18.9 billion, of which EUR 4.6 billion was spent in EU member states. During that period, PPP was applied in the security sector in six EU countries: Belgium, Denmark, France, Germany, Lithuania and the Netherlands.
The example of Lithuania is particularly interesting. The Lithuanian Ministry of National Defence is already pursuing three PPP projects in defence and security. Two of them involve construction and maintenance of military infrastructure in the Vilnius and Šiauliai regions (PPP contracts signed in 2021 for 15 years, with each project worth about EUR 55 million). The most recent project, which is in the phase of selection of the private partner, involves construction of a military base in the Klaipėda region, with an estimated value of EUR 520 million. Through PPP cooperation, a military complex is to be built in Kairiai, on an area of about 80 hectares, with a capacity for stationing about 1,500 soldiers. The facility will be used by the Žemaitija Motorised Infantry Brigade of the Lithuanian Land Forces and by the soldiers serving their basic duty in its ranks. The complex will include housing, administrative, sports, storage and technical facilities, as well as transport infrastructure and landing pads for helicopters. The total built area will be about 67,000 m², with c. 30,000 m² of engineering facilities and a paved surface of c. 244,000 m².
The procedure for selection of a private partner is being carried out through a competitive dialogue, and under Lithuanian law the procedure is open only to entities from the EU or NATO. The procedure includes screening of candidates for protection of national security and classified information.
The ministry has published information about the project on its website, including details of the conditions for participation in the procedure and the criteria for evaluation of offers.
The risks of EU funding speak in favour of PPP
The Polish Ministry of National Defence has prepared a plan for strategic investments called the “Pact for the Security of Poland—Central Pomerania.” The pact is one of three pillars of the Baltic Sentry concept, alongside the Baltic Declaration (an undertaking to strengthen military cooperation among NATO member states in the Baltic Sea region) and the Kaszubia Green Industrial Zone (a strategic logistics, industrial and infrastructure base which will use green energy, innovative industry and infrastructure investments based on the aforementioned pact to build up the country’s strategic resilience).
The plan was created in response to the need for heightened mobility of Polish and allied forces and to strengthen the country’s defence capabilities. It calls for implementation of key infrastructure projects, including upgrading of seaports, expansion of transhipment terminals, and adapting road and rail networks to serve military transport. The plan allows for implementation of these ventures in the PPP model (“Defence ministry plans infrastructure revolution,” Puls Biznesu, 9 September 2025).
In the context of the Polish plans for use of EUR 43.7 billion from the SAFE programme for defence purposes, it is important to note the uncertainty associated with EU funding. The European Parliament has filed suit with the Court of Justice to annul the SAFE Regulation for procedural reasons, because the European Commission bypassed the EP in adopting the regulation by invoking the emergency procedure (“Legislative defect in SAFE money,” Puls Biznesu, 9 September 2025). Although the EP is requesting that the allegedly defective regulation remain in force until it is replaced by a properly adopted regulation, the situation shows that it is worth diversifying the sources of funding.
Security does not limit PPP
The European experience shows that national security concerns in connection with projects in the defence sector do not have to limit the involvement of the private sector in executing even the most strategic military infrastructure. The examples given in the EIB report include the UK’s Government Communications Headquarters as well as a new base for the Danish intelligence service in Copenhagen, carried out under a 30-year PPP contract worth EUR 397 million.
The main reason that public entities choose the PPP approach is the element of financing of the venture by the private sector at the execution stage. But it should be borne in mind that this type of cooperation is to a large degree grounded in the knowhow of the private partner in conducting efficient operations in the given sector, which carries over to the quality of the services ultimately delivered to the users.
The EIB points out that over the past 20 years, PPP has been successfully employed to implement defence infrastructure and services in several EU member states. These experiences, the Lithuanian example, and the EIB recommendations, combined with the Polish defence plans and the uncertainty around EU financing, make this an ideal moment for broader use of PPP in the defence sector.
As the EIB states, expenditures on defence infrastructure by the 23 EU member states who are also in NATO totalled EUR 9.5 billion in 2023, 75% of which was spent by just five of those countries (France, Germany, Italy, Poland and Spain). This means that the scale of the needs and opportunities opened up by the proper use of public-private partnerships to carry out defence projects is truly impressive.
Mirella Lechna-Marchewka, attorney-at-law, Infrastructure, Transport, Public Procurement & PPP practice, Wardyński & Partners
