PKE joins NP consortium in bid for Iraqi power contracts

The Southern Energy Concern (PKE) is planning to reconstruct and modernize Iraqi power plants as part of the consortium set up by Nafta Polska (NP) to bid for contracts. "We want to participate in the projects and this was the reason we signed an agreement with NP's consortium," said Andrzej Zając, PKE's investments and development deputy president. At the beginning of July, NP and American Kellog Brown & Roots signed a preliminary agreement over tenders to reconstruct Iraq. The consortium now consists of Grupa Lotos, Prochem, Ciech, Police and subsidiary of Polish Oil and Gas. According to Zając, between 50-60% of Iraq's energy sector has been devastated and needs to be totally rebuilt. It appears new power stations will need to generate around 5,000-6,000 Megawatts of energy. "We will send experts to Iraq in January who will evaluate the what exactly needs to be done and how much it will cost," said Andrzej Zając. Preliminary estimates show that between $5-6 billion will have to be spent on this sector. (Parkiet, p. 6) M.M.