AES to build new gas power plant in Zarnowiec this year

American energy concern AES plans to commence construction of a gas power plant near the northern town of Zarnowiec in mid-2003. The plant will cost euro 200 million and is to produce approximately 1% of the domestic energy requirement. By the end of this week, AES should sign gas delivery contract with Polish Oil and Gas (PGNiG). AES company representatives have added that they would not take part in the privatization of the energy sector, as they do not see any opportunity for growth in Poland. "AES has terminated most of its projects in Europe. The Zarnowiec plant will be one of the three or four investments they intend to continue," said Jacek Sawicki of AES. The company will also have to negotiate a long-term energy delivery contract with Polish Grid (PSE), which may be hard, as PSE is soon to terminate its long-term agreements due to energy market liberalization. (Puls Biznesu, pp. 1, 5) M.M.