PGK Koszalin Awards PLN 244.99M Waste Incineration Plant Contract

Standfirst:

Poland has awarded a PLN 244.99 million contract for the design and construction of a municipal waste thermal treatment plant in Koszalin. The contract was awarded to AB Industry S.A. with Oschatz Power GmbH identified as a subcontractor. The project combines engineering design, equipment supply, installation and construction works and is intended to support the combined production of electricity and heat from municipal waste. The contract was concluded on 4 September 2026 and the required completion date is 30 June 2029.

Introduction

A major waste management infrastructure project has moved into its delivery phase in Koszalin, Poland, following the award of a PLN 244.99 million contract for the construction of a municipal waste thermal treatment installation. The contracting authority, Przedsiębiorstwo Gospodarki Komunalnej Spółka z o.o. w Koszalinie, selected AB Industry S.A. for the single lot covering the complete investment. The procurement combines works, services and supplies and includes design, administrative approvals, construction, equipment delivery, installation, commissioning and related activities. The contract was awarded through an open procedure under Polish public procurement legislation and Directive 2014/24/EU.

The project is located at H. Cegielskiego Street in Koszalin, within the Koszalin economic area of the West Pomeranian Voivodeship. According to the notice, the facility is intended for the thermal treatment of specified municipal waste streams with the objective of combined electricity and heat production. The investment is financed through the Polish National Fund for Environmental Protection and Water Management under its priority programme for rational waste management.

Why This Contract Matters

The Koszalin project is a significant procurement in Poland's waste treatment and energy infrastructure market, with a contract value of PLN 244.99 million. Its scope extends well beyond conventional construction because the successful contractor must integrate waste treatment technology, energy generation equipment, engineering systems, buildings and supporting infrastructure. The project also incorporates environmental objectives, including the transition towards a circular economy and pollution prevention and control.

The award is particularly relevant for suppliers involved in waste incineration technology, industrial plant engineering, boilers, turbines, environmental systems and specialist construction. The tender also demonstrates the importance of lifecycle considerations in major infrastructure procurement because operating costs represented a separate award criterion alongside price and technology warranty.

Contract Timeline

The winning contractor was selected on 6 July 2026. The contract was formally concluded on 4 September 2026 under contract number UMOWA NR 251 866383/66/AP/2025. The TED award notice was dispatched on 14 September 2026 and published in OJ S 179/2026 on 16 September 2026. The project is required to be completed by 30 June 2029.

Contract Overview

The procurement covers the design and construction of a municipal waste thermal treatment plant in Koszalin. The contract includes engineering design services, obtaining necessary administrative decisions, construction works, equipment and installation delivery, commissioning, training and preparation of the facility for operation. The facility is planned for a site covering approximately 2.1771 hectares at H. Cegielskiego Street.

The main CPV classification is 45252300 for refuse incineration plant construction work. The notice contains an extensive set of additional CPV classifications covering waste incinerators, engineering design, site preparation, roads, boilers, steam turbines, architectural services, electrical installation, plumbing, insulation and mechanical installations.

Key Contract Details

Project Scope

The project is structured as a design and build investment covering the municipal waste thermal treatment plant and its associated infrastructure. The contractor is responsible for preparing the required design documentation, obtaining necessary administrative decisions, executing preparatory and construction works, delivering and installing equipment and carrying out commissioning activities.

The technical scope includes the plant technology and energy systems as well as buildings, tanks, shelters, canopies, viaducts, roads, pavements, yards and installations. The contractor must also provide project documentation covering the basic design, construction design, network relocations and protection, earthworks and excavation drainage, detailed execution designs, acoustic protection, fire safety and interdisciplinary coordination.

The facility is intended to meet Best Available Techniques requirements applicable to waste incineration. The project documentation refers to the European Commission's BAT conclusions for waste incineration and the environmental decision applicable to the investment. The contractor must also complete commissioning, training and activities required to obtain permissions for operation.

About the Contracting Authority

Przedsiębiorstwo Gospodarki Komunalnej Spółka z o.o. w Koszalinie is the contracting authority and organisation responsible for signing the contract. The organisation is based at ul. Komunalna 5 in Koszalin and is also responsible for providing additional information concerning the procurement procedure.

The notice identifies the organisation as a body governed by public law and states that its activity falls under general public services. The procurement reference used by the authority is 66/AP/2025.

About the Organisations Involved

Przedsiębiorstwo Gospodarki Komunalnej Spółka z o.o. w Koszalinie acted as the buyer, provided procurement information and signed the contract with the successful contractor. The organisation is responsible for the investment concerning the municipal waste thermal treatment installation in Koszalin.

AB Industry S.A. was selected as the winning tenderer for LOT 0001. The notice identifies the company as a medium sized economic operator. Its tender, identified as “Oferta nr 4”, was ranked first with a value of PLN 244.99 million. The company is based in Ożarów Mazowiecki in Poland.

Oschatz Power GmbH is identified as a subcontractor supporting the winning contractor. The company is based in Essen, Germany and is classified in the notice as a micro, small or medium sized economic operator. The subcontracting scope includes parts of the design work, technological project, construction and assembly works associated with the power plant, combustion and energy recovery unit, electricity and heat generation and flue gas cleaning systems.

Krajowa Izba Odwoławcza is identified as the review organisation for the procurement. The notice provides detailed information concerning appeal procedures under the Polish Public Procurement Law.

Urząd Prokuratorii Generalnej Rzeczypospolitej Polskiej, through its General Counsel of the Republic of Poland arbitration court, is identified as the mediation organisation. The notice states that parties may use mediation or another amicable dispute resolution mechanism in eligible disputes.

Publications Office of the European Union is identified in the notice as the TED eSender responsible for transmission of the procurement notice for publication.

Procurement Analysis

The procurement was conducted through an open procedure and did not permit submission of partial tenders. A total of five tenders were received, all recorded as electronic submissions. The lowest admissible tender was PLN 244.99 million while the highest admissible tender was PLN 335.047 million. The notice also records one tender as verified and inadmissible.

Price represented the dominant award criterion at 90% of the total score. The remaining 10% was divided between an extension of the quality guarantee and warranty for the technology at 3% and operating costs at 7%. This structure placed strong emphasis on the total gross tender price while still giving measurable importance to long term technology performance and operating economics.

Additional Procurement Facts

The notice states that the project was not financed with EU funds. However, the lot description identifies financing from the Polish National Fund for Environmental Protection and Water Management under its priority programme on rational waste management, specifically the component concerning the use of alternative fuels for energy purposes. These are domestic environmental financing arrangements rather than EU funding.

The contracting authority also conducted preliminary market consultations before launching the procurement. No framework agreement or dynamic purchasing system was used and the authority did not provide an option mechanism for expanding the contract under the Polish Public Procurement Law.

Market & Industry Perspective

The Koszalin award demonstrates the multidisciplinary nature of modern waste to energy procurement. The project requires the integration of waste incineration technology with steam generation, turbines, energy recovery, flue gas cleaning, electrical systems, mechanical systems and civil infrastructure. This creates opportunities across several industrial supply chains rather than limiting participation to conventional construction contractors.

The extensive CPV structure is particularly relevant for procurement intelligence. Businesses involved in waste incinerators, steam boilers, turbines, engineering design, site development, electrical installations, mechanical installations and pollution control systems can all identify relevant elements of the project through the classifications used in the notice.

Economic Significance

The PLN 244.99 million award represents a substantial infrastructure investment in Koszalin's waste management and energy systems. The project is designed to enable the combined production of electricity and heat from municipal waste, linking waste treatment infrastructure with energy recovery.

The investment can also generate downstream demand for specialist engineering services, equipment, construction materials, installation services, commissioning support and maintenance activities. The planned involvement of subcontractors further expands the potential supplier ecosystem around the project.

Future Procurement Opportunities

The project may provide a reference point for future waste treatment and energy recovery investments in Poland. Municipal and regional authorities facing waste management requirements may continue to seek integrated solutions combining waste treatment with energy recovery and environmental controls. Suppliers should therefore monitor procurement notices covering refuse incineration plants, waste treatment facilities, energy recovery systems and associated environmental technology.

Future opportunities may also arise from supporting infrastructure and specialist services. Engineering design, plant equipment, steam generation, turbines, flue gas treatment, electrical systems, mechanical installations and commissioning services can form important procurement categories around major waste infrastructure projects.

Opportunities for Suppliers

Suppliers can use this award to identify the broad range of capabilities required for major waste thermal treatment projects. Technology providers may participate directly or through specialist subcontracting arrangements, while engineering and construction companies can position themselves for integrated project delivery or supporting packages.

The award also demonstrates the value of understanding operating economics. Because operating costs accounted for 7% of the evaluation, suppliers needed to consider projected consumption of fuel, water and reagents alongside the initial tender price.

What Businesses Should Watch

Businesses targeting Polish waste infrastructure tenders should monitor both the primary CPV classification and the extensive supporting classifications used in this procurement. A narrow search limited only to refuse incineration plants could miss related opportunities involving boilers, turbines, engineering, construction, electrical systems and mechanical installations.

Suppliers should also pay close attention to tender evaluation methodology. In this procurement, the authority required bidders to provide specific operating consumption information and to identify technology warranty periods. This means suppliers need to prepare technical and commercial information that can withstand detailed evaluation rather than relying only on a headline project price.

The use of subcontracting is another important signal. The winning contractor retained responsibility for the overall project while assigning specified specialist activities to Oschatz Power GmbH. Specialist suppliers can therefore monitor successful prime contractors after award to identify potential project delivery opportunities.

PolandTenders.com Procurement Intelligence

From a procurement intelligence perspective, the Koszalin award provides a strong example of how large infrastructure opportunities can be identified through the combination of contract value, CPV data, supplier information and technical scope. The procurement is not simply a construction contract. It integrates design, equipment supply, plant technology, installation and commissioning into one major investment, creating multiple commercial touchpoints for businesses across the industrial supply chain.

The competitive data also provides useful market intelligence. Five tenders were received and the admissible tender range extended from PLN 244.99 million to PLN 335.047 million. The difference between these figures shows that suppliers approached the commercial requirements differently. One submitted tender was verified and recorded as inadmissible, highlighting the importance of strict compliance with procurement documentation in technically complex tenders.

The evaluation structure provides another strategic signal. With 90% allocated to price, suppliers needed strong cost control to remain competitive. However, the additional 10% covering technology warranty and operating costs means that technical performance and lifecycle economics were also relevant. This creates a procurement model where suppliers need to balance capital cost with technology reliability and future operating requirements.

The subcontracting structure is equally important. AB Industry S.A. is the prime winner while Oschatz Power GmbH is identified for specialist subcontracting activities. For suppliers, this demonstrates why procurement intelligence should continue after the award date. The winning contractor can become a new source of commercial opportunities for specialist businesses seeking participation in the delivery phase.

Looking ahead, future waste infrastructure procurement may increasingly connect waste management, energy recovery and environmental performance. Businesses that track these projects early can use CPV combinations, contracting authority activity and previous award information to identify relevant projects before the market becomes highly competitive. For procurement intelligence users, this makes award notices valuable not only as records of completed competitions but also as signals for future supplier relationships and adjacent market opportunities.

Supplier Takeaways

• The contract was awarded for PLN 244.99 million.
• AB Industry S.A. was selected as the winning contractor.
• Oschatz Power GmbH is identified as a subcontractor.
• The project covers the design and construction of a municipal waste thermal treatment plant.
• The facility is intended to support combined electricity and heat production.
• The required completion date is 30 June 2029.
• Five tenders were received through the procurement procedure.
• The lowest admissible tender was PLN 244.99 million.
• The highest admissible tender was PLN 335.047 million.
• Price represented 90% of the award evaluation.
• Technology warranty represented 3% of the evaluation.
• Operating costs represented 7% of the evaluation.
• The project is not financed with EU funds.
• The project description identifies financing from the Polish National Fund for Environmental Protection and Water Management.
• The procurement is covered by the Government Procurement Agreement.

Key Takeaways

• Country: Poland
• Location: Koszalin, West Pomeranian Voivodeship
• Buyer: Przedsiębiorstwo Gospodarki Komunalnej Spółka z o.o. w Koszalinie
• Project: Construction of a municipal waste thermal treatment installation in Koszalin
• Contract value: PLN 244.99 million
• Winner: AB Industry S.A.
• Subcontractor: Oschatz Power GmbH
• Main CPV: 45252300 Refuse incineration plant construction work
• Procedure: Open procedure
• Tenders received: 5
• Winner selected: 6 July 2026
• Contract concluded: 4 September 2026
• Completion deadline: 30 June 2029
• Environmental objective: Circular economy transition plus pollution prevention and control
• EU funding: No EU funds
• Framework agreement: No
• DPS: No

Conclusion

Poland has awarded a PLN 244.99 million contract to AB Industry S.A. for the design and construction of a municipal waste thermal treatment plant in Koszalin, with Oschatz Power GmbH supporting the project as a subcontractor. The integrated scope combines waste treatment technology, energy recovery, engineering, construction and environmental systems and is scheduled for completion by 30 June 2029.

The award provides an important procurement signal for companies active in waste management, waste to energy technology, industrial construction, engineering, plant equipment and environmental systems. Its evaluation model also highlights the growing relevance of price, technology warranty and operating cost considerations in complex public infrastructure procurement.

Source: TED Contract or Concession Award Notice 638424 2026, “Poland – Refuse incineration plant construction work – Budowa instalacji termicznego przekształcania odpadów komunalnych w Koszalinie”, OJ S 179/2026, published 16 September 2026.