Description of the goods or services required
SRSS - Poland: Implementation of the Capital Market Development Strategy (CMDS)
The Ministry of Finance of Poland (“MoF”) (“the Client”) has requested support from the European Commission under Regulation (EU) 2017/825 on the establishment of the Structural Reform Programme (“SRSP Regulation”) to provide technical assistance for the implementation of the Capital Market Development Strategy (CMDS) (the “Project”). The European Commission has agreed to provide technical support to Poland, together with the European Bank for Reconstruction and Development (“EBRD” or the “Bank”). The Technical Cooperation (“TC”) project will be led by the Local Currency and Capital Markets Development (LC2) initiative of the EBRD.
The Capital Markets Development Strategy (CMDS) is a deliverable arising from the Polish Government’s Responsible Development Strategy.
The CMDS, which was approved by the Government on the 1st of October 2019, is the first detailed national capital markets plan for Poland that builds on Poland’s classification as a Developed Market, covering the period 2019-2023. Poland has lacked a comprehensive and coordinated capital market strategy until now, but the CMDS has identified 20 barriers that must be overcome in the next five years in order for Polish capital markets to develop. The CMDS will implement a vast array of initiatives so that the goals identified in the CMDS are achieved and will further align Polish capital markets with the CMU.
Currently the Polish capital market is much less developed than most developed European markets and it is expected that it will be subject to a high competitive pressure. Equity and debt markets still play a less important role in the financing of companies, which makes them less liquid and effective than the most developed markets. Furthermore, the level of Poles’ savings is significantly below the level observed in many EU countries and the existing savings are not always optimally allocated and dedicated to investment, especially long-term. This has a direct impact on the relatively low innovativeness of the Polish economy and therefore on its relatively low international competitiveness. It is also important to note the negative balance of IPOs and exits on the stock exchange and the falling share of individual and institutional investors in the stock exchange turnover.
The overall objective of the project is the implementation of measures that have been identified in the CMDS. These can be implemented through, inter alia, legal and regulatory reform, market reform, and market infrastructure projects.
The Government has put in place strong leadership for the delivery of the plan. The leadership will be enforced by an internal Project Management Office (PMO), which will have the mandate and will-power to create continuous reforms.
The specific objective of the project is to provide technical support to the PMO (i) in drafting legal acts forming part of the regulatory reform, (ii) market and quantitative analyses, (iii) implementing innovation foreseen in recommendations. Such support to the PMO will mainly be through the work of consultants preparing legal and regulatory acts, managing the reforms and making sure they are implemented.
The Bank now intends to engage a consulting company (the “Consultant”) to assist and support the MoF with the implementation of the following activities:
• Prepare a Roadmap on how to implement the measures identified in the CMDS;
• Assessment of possible solutions and proposal of solutions to be implemented;
• Draft legal and regulatory acts needed for the implementation of the CMDS;
• Capacity building workshops and Public Relations activities.
The expected outputs of the Assignment include:
1. Implementation of the recommendations set out in the CMDS, including through advisory support to the PMO on market, legal and regulatory aspects;
2. Preparation of draft legal and regulatory acts needed for the implementation of the CMDS and coordination of such work across relevant authorities and the market; and
3. Capacity building workshops for policy makers and market participants and communication to the public on the barriers addressed and successful implementation of the strategy.
Any final and official outputs should be delivered in the Polish language; and in both Polish and English when appropriate and agreed with the Operation Leader.