Privatization: more empty promises
The proceeds from these sales will substantially help reduce the gaping hole in the budget. That's what the State Treasury Ministry says, anyway. No one else, however, seems to be taking these empty promises seriously.
"When I look at my colleagues at the Treasury Ministry I sometimes get the impression that they actually feel like that they are the owners of the assets they should be selling," said Jacek Piechota, deputy minister of economy, labor and social policy. "It naturally limits the opportunities for privatization." As an anonymous official at the Treasury Ministry admitted, the implication is that the ministry completely fails to do its job for reasons that are an inherent part of the mentality of government officials.
State treasury minister Piotr Czyżewski expects zł.26.4 billion in privatization revenues over the next three years, with zł.8.8 billion coming in this year alone. "It is a murderous plan from the ministry's point of view, but I think it is realistic", he said. Sadly, it would appear that he is in a minority of one.
Czyżewski sees the sale of the country's largest bank in terms of assets, PKO BP, as the most important privatization deal of the year. The market is, however, tired of the on-going saga surrounding the appointment of the bank's privatization advisor. According to Dariusz Marzec, director of financial consulting at PricewaterhouseCoopers, investors "are no longer monitoring" the situation. "They have lost faith in the ministry actually wanting to sell the bank." So far, four tenders to select the adviser have been cancelled due to overly strict conditions, which ruled out practically all potential bidders.
Marzec is equally skeptical about another giant IPO planned for this year, that of the Polish Oil and Gas Company (PGNiG). He pointed out that the company will face a period of tough restructuring in the wake of EU accession, which could lead to complications in the privatization process. The timing is therefore far from ideal, he concluded.
Another problematic public offering is that of the Southern Energy Concern (PKE) which is still awaiting a decision to increase its capacity to 7,000 MW. The firm has been promised that this would precede privatization, and that several Silesian power plants will be added to the concern. Since it is difficult to imagine all these plans being completed within twelve months, experts agree that this year's privatization target is unlikely to be met.
Last year's privatization revenue forecast was downgraded several times from an initial zł.9.6 billion to zł.4.5 billion by the end of the year. As the ministry admitted last Friday, even the latter modest target was not met as revenues amounted to little more than zł.4.1 billion. Both government officials and independent experts say they "hope" that the situation will be different this year. But there seems to be little conviction backing up that hope.
"When I look at my colleagues at the Treasury Ministry I sometimes get the impression that they actually feel like that they are the owners of the assets they should be selling," said Jacek Piechota, deputy minister of economy, labor and social policy. "It naturally limits the opportunities for privatization." As an anonymous official at the Treasury Ministry admitted, the implication is that the ministry completely fails to do its job for reasons that are an inherent part of the mentality of government officials.
State treasury minister Piotr Czyżewski expects zł.26.4 billion in privatization revenues over the next three years, with zł.8.8 billion coming in this year alone. "It is a murderous plan from the ministry's point of view, but I think it is realistic", he said. Sadly, it would appear that he is in a minority of one.
Czyżewski sees the sale of the country's largest bank in terms of assets, PKO BP, as the most important privatization deal of the year. The market is, however, tired of the on-going saga surrounding the appointment of the bank's privatization advisor. According to Dariusz Marzec, director of financial consulting at PricewaterhouseCoopers, investors "are no longer monitoring" the situation. "They have lost faith in the ministry actually wanting to sell the bank." So far, four tenders to select the adviser have been cancelled due to overly strict conditions, which ruled out practically all potential bidders.
Marzec is equally skeptical about another giant IPO planned for this year, that of the Polish Oil and Gas Company (PGNiG). He pointed out that the company will face a period of tough restructuring in the wake of EU accession, which could lead to complications in the privatization process. The timing is therefore far from ideal, he concluded.
Another problematic public offering is that of the Southern Energy Concern (PKE) which is still awaiting a decision to increase its capacity to 7,000 MW. The firm has been promised that this would precede privatization, and that several Silesian power plants will be added to the concern. Since it is difficult to imagine all these plans being completed within twelve months, experts agree that this year's privatization target is unlikely to be met.
Last year's privatization revenue forecast was downgraded several times from an initial zł.9.6 billion to zł.4.5 billion by the end of the year. As the ministry admitted last Friday, even the latter modest target was not met as revenues amounted to little more than zł.4.1 billion. Both government officials and independent experts say they "hope" that the situation will be different this year. But there seems to be little conviction backing up that hope.
