Defence Policy
Record-Breaking Support for the Defence Industry. Decision on the Narew System
Photo. Platoon Leader Aleksander Perz / 18th Mechanized Division/Facebook
The Council of Ministers adopted a Resolution on providing extra capital to the companies that form the PGZ NAREW consortium - submitted by the Minister of State Assets. The „Narew” Programme is to protect military units and infrastructure, in the event of an airstrike. It would also become an element of the common air defence system.
The Polish Ministry of Defence is currently working on three modernization programmes for the Polish Air Defences:
“Pilica” - VSHORAD system,
“Narew” - SHORAD system,
“Wisła” - MRAD system;
Extra capital would be provided for the companies within the PGZ Narew consortium, working on the individual stages of the “Narew” programme, and the remaining national defence modernization programmes. The investment would be divided into 7 stages, and the expected sum to be allocated to it would be PLN 3888.11 million (over 950 USD million) between 2024 and 2030. The financial means would come from the Capital Investments Fund.
The companies would use the funds for instance to expand and modernize the manufacturing facilities, or to increase the manufacturing and maintenance, and R&D potentials.
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The PGZ-Narew consortium that was brought to life on 11th December 2014 involves the following entities: PGZ S.A. (leader of the consortium), Huta Stalowa Wola S.A./HSW S.A., Jelcz sp. z o.o., MESKO S.A., OBR CTM SA, PCO S.A., PIT-RADWAR S.A., Wojskowe Zakłady Łączności Nr 1 S.A., Wojskowe Zakłady Uzbrojenia S.A., Wojskowe Zakłady Elektroniczne S.A., and Zakłady Mechaniczne „Tarnów” S.A.
The decision on providing PLN 3.8 bn. (USD 950 million) coming from the Capital Investments Fund to the consortium is a major step towards expanding the manufacturing capacity within the Polish industry, within the context of pursuing this modernization programme, the value of which significantly exceeds PLN 50 billion. This should make it possible to finance the research but also to expand the manufacturing potential for missiles, command systems, and radars. Let us recall that the Narew programme (according to the performance contract concluded in 2023) envisages the delivery of 23 anti-aircraft batteries for PLN 54 bn. (gross). These batteries include more than 130 launchers and more than 1,000 license-manufactured CAMM-ER missiles.
Comment by Jakub Palowski, Deputy Editor in Chief, Defence24.pl
Narew system would be integrated with the IBCS air defence management system, and it will also feature Polish C2 elements, radars, and vehicles. It is expected that the extra capital not only will make it possible for the Polish industry to establish capabilities to develop but also to manufacture those vehicles. The decision to allocate PLN 3.8 bn. is the biggest capital provision in the history of the Polish industry. For the sake of comparison, one should recall that CIR Defence24.pl recently announced that PLN 1.45 billion was provided by the Capital Investments Fund. Recently the Polish government was considering 7 requests for extra capital, worth PLN 4.2 bn. The total capital requirements of the PGZ were defined as PLN 13 billion, for the next few years.
@ Comment by Jakub Palowski, Deputy Editor in Chief, Defence24.pl