PKP expects zl. 6.5 billion windfall from privatization

Polish State Railways (PKP)'s management board estimates that privatization of most of the companies spun out of the corporation will be worth around zl. 6.5 billion, and will take place during the next three years. The first to become privatized will be Warsaw's Warszawska Kolej Dojazdowa (WKD) and Szybka Kolej Miejska (SKM) in Gdynia, as they are the companies with the lowest deficit and could seem potentially profitable for investors. PKP expects significant profits from privatization of two other companies, PKP Cargo and PKP InterCity. "The European Union is pressuring for liberalization of access to the railway infrastructure," said Krzysztof Celinski, head of PKP S.A. "Therefore, injection of capital into PKP Cargo and PKP InterCity is crucial, as is preparing these companies for competition. We think that the period through 2007 should be one of transition, during which EU carriers could use up to 20% of Polish railway capacity." In the next four years PKP plans to spend up to zl. 8.3 billion on necessary investments. (Prawo i Gospodarka, p. 4) A.K.