PSE investing zl.400 ml. to modernize energy transfer

Energy producer and distributor Polskie Sieci Energetyczne (PSE) plans to tidy its telecom investment portfolio, introduce a compensating fees system (SOK), and invest about zl.400 million in modernization and construction of transferring networks in 2001. "We do not plan to sell stakes in Polkomtel [a company owned by GSM operator Plus GSM]. We do not intend to quit Tel-Energo or Niezalezny Operator Miedzystrefowy [NOM], but we will bring investors to both companies and our stakes will drop to below 50%," said PSE president Krzysztof Zmijewski. According to him, Citibank in consortium with two American partnerships will probably become an investor in at least Tel-Energo. "By introducing an investor we want to make a 'small' consolidation of our group, and we are considering forming a holding or merging the two companies," Zmijewski added. PSE transfers about 70% of Polish energy, and when it introduces the SOK system in mid-2001, it will lose about 60%-70% of its revenues, which at present amount to zl.13 billion. (Puls Biznesu, pp. 1, 6) M.M.