Ailing state railways to be overhauled prior to sell off
Legislation has been passed in the Sejm for the overhaul of the 80-year old
state-owned State Railways (PKP) prior to privatization. The bill proposes
that PKP become a joint-stock company, with different companies responsible
for the three main components of infrastructure, stations, and passenger
services. It is also proposed that PKP's telecoms arm be sold off as a
separate entity. Currently, PKP has debts of zl. 6.2 billion. PKP is also to
have the right to issue zl. 3.9 billion in bonds guaranteed by the state.
The money raised will be used to pay off bank credits and outstanding
electricity bills. PKP has been threatened several times with the
disconnection of its power supply. (Gazeta Wyborcza, page 18, Reuters) E.B.
