Fate of PIA Piasecki lays on Zlote Tarasy contract

One of the largest construction companies, PIA Piasecki, which is on the verge of bankruptcy, is one of four companies which submitted an offer to ING Real Estate to build the $250 million Zlote Tarasy development in Central Warsaw. The choice of a general contractor for this commercial complex will probably be taken this week, and for PIA Piasecki, is perhaps a final chance to avoid bankruptcy. Other potential contractors are: Swedish Skanska, Warbud, which is being financially supported by French Vinci Construction and German Hochtief. PIA Piasecki recorded a net loss of zl. 120.8 million in the second quarter, compared to zl. 10 million loss in the same period last year. Due to losing its financial liquidity, banks are terminating credit agreements with the company, and investors are pulling out of construction contracts. The last such project that the company lost was to build six blocks of flats on ul. Jagiellonska for a Warsaw gmina. Winning the Zlote Tarasy contract will be a difficult task for PIA Piasecki, but not an impossible one. (Puls Biznesu, p. 11) M.T.