Raising privatization expectations

Poland plans on making zł.12 billion from its 2009 privatization plans when it sells offs its state assets, a figure five times the amount originally planned.

"At the moment we have 260 privatization processes started and the mechanism is now working well. If all goes well the next year's revenues will reach 12 billion zlotys, mainly thanks to sales in the energy and the chemical sectors," said Treasury Minister Aleksander Grad to Reuters.

The government originally planned it would fetch as much as zł.6 billion, but falling global markets, delays and the disappointing flotation of a chemical company Tarnów earlier this year have affected investor interest.

At the end of July, privatization revenues reached zł.379 million, but Grad said he was confident that privatization revenues this year would at least meet zł2.3 billion that was set in the 2008 budget.

Grad believes that the main revenue drivers in 2009 will be energy firm Enea, Polska Grupa Energetyczna (PGE), Patnów-Adamów-Konin (PAK), lignite miners Adamów and Konin as well as chemical firms Tarnów and Ciech

Enea will debut on the Warsaw Stock Exchange in October selling about 30 percent of its capital in new shares. The remaining shares will be sold off in 2009.

Source: Reuters