EU to subsidize construction of Odessa-Brody-Płock oil pipeline

Poland, Ukraine and the European Union have signed a joint declaration concerning construction of the Odessa-Brody-Płock oil pipeline. Following the signing, Deputy Chairman of the European Commission Loyola de Palacio said the EU would support the project with euro 2 million in subsidies with the money to be spent on preparatory works. According to the business plan, prepared by PricewaterhouseCoopers, the transportation of the Caspian oil to Poland would commence once the Brody to Płock section is completed. This means the first delivery might be expected in three to five years. The value of construction work on the Polish section of the pipeline is estimated at euro 500 million. According to Deputy Economy Minister Marek Kossowski, should the investment be completed, the operator of the Polish section of the pipeline should be Przędsiębiorstwo Eksploatacji Rurociągów Naftowych (PERN). (Rzeczpospolita, p. B3; Gazeta Wyborcza, p. 17) J.K.