Treasury agrees $25 million Skawina sale to PSEG

The Treasury is to sign a contract with US utility Public Service Enterprise Group (PSEG) on the sale of power plant Elektrownia Skawina (ES). In the initial stage of the deal, expected to be finalized by September 15, PSEG will buy a 35% stake in the power plant, at a cost of $25 million. Under the terms of the contract the US concern will be able to raise its stake in ES to more than 50% through a capital increase. "Each investor aims at taking full control over a company," said ES president Ryszard Mlodzianowski. The investment package offered by PSEG envisages spending as much as $56 million over five years. "The money will support ecological projects," Mlodzianowski explained. Under the terms of the social package agreed by PSEG, over 700 workers at ES are not only being guaranteed their jobs, but also being promised a privatization bonus. ES supplies a fifth of the power needs of the southern conurbation of Krakow. (Puls Biznesu, p. 5; Reuters) A.Z.