Stadtwerke Leipzig to finalize GPEC privatization

Gdansk city council should finalize negotiations this month with Germany's Stadtwerke Leipzig over the acquisition of a 75% stake in local heating and power plant GPEC for zl. 184 million. The investor has promised to pump a further zl. 400 million into the company over the next 10 years. The social package has already been negotiated, but the two parties still disagree on the matter of the city's influence on energy prices and future sales of shares by the investor. If they do not reach an agreement, the whole tender procedure would have to be repeated. The city has little choice, as it has already included revenues from the sale in its 2003 budget. "Luckily, both parties declare a willingness to reach a compromise," said Wieslaw Kaminski, a member of the negotiation committee. GPEC's privatization was initiated in 2000 when it transpired that the company was heavily indebted. (Puls Biznesu, p. 9; Jan. 29) M.M.