Lack of steam in privatization of Kozienice power station

In a few days the Treasury Ministry is to announce a tender for EI Kozienice, Poland's largest coal-powered power plant, but there are serious concerns about a shortage of bidders. Initially, Kozienice was supposed to have been privatized this year, but this now seems very unlikely. It is uncertain whether the tender will be announced as planned because potential investors are not showing much interest. However, El Kozienice president Jan Wrona insists that this is not due to the problems of the company itself. "The power plant is in a good technical state, so is our financial condition. We shall close this year with a decent profit," he declared. Foreign investors are not denying this, but point to several major discouraging factors, such as the general economic slowdown, the energy excise tax and regulatory risks. "Investors cannot anticipate what rate of return they can get on their capital. The President of the Energy Regulation Office (URE) can dramatically reduce the value of a company by just one decision," commented an anonymous source from the energy sector. (Puls Biznesu, p. 4) T.J.