Building suspended at Pątnów II due to lack of funds

Elektrim-Megadex has suspended construction of a power block at the Elektrownia Pątnów II (EP II) power plant until a new source can be found to finance the project, Elektrim said in an official announcement. The news has been independently confirmed by Puls Biznesu, which learned the Pątnów-Adamów-Konin (PAK) group of power plants, the owners of EP II, reached the bottom of the barrel and cannot continue their investments. Moreover, the company is facing even more serious problems as it will soon be obliged to pay its subcontractors. PAK's financial difficulties will likely hit Elektrim, owner of 38.5% of PAK, which will not receive an outstanding euro 32 million which it needs to pay its own bondholders. According to Elektrim chairman Wojciech Janczyk, the company expects to find a solution to the problem by June. In the event that the project is not completed by 2005, Elektrim will have to pay compensation to the State Treasury. (Parkiet, p. 3) J.K.