Treasury postpones Rafineria Gdanska privatization

Privatization of Rafineria Gdanska (RG) oil refinery has been postponed due to lobbying by the Treasury Ministry in order to annul the tender for the sale of RG shares, thus allowing PKN Orlen, Poland's biggest refinery, to file its bid. Moreover, Nafta Polska has cancelled plans to chose its candidate today for exclusive negotiations of the RG share purchase, and a decision could be delayed for two weeks, according to unofficial sources. Thus far, the motion for the annulment has been rejected by the Treasury, but there is a strong force within the ministry to consolidate RG with PKN Orlen. If the government privatization program for RG fails, PKN Orlen might be allowed to participate in the tender, suggested Barbara Litak-Zarebska, deputy minister of State Treasury. Rotch Energy, a British consortium, and MOL, a Hungarian fuel distribution concern, submitted final bids on March 12 for the purchase of up to 75% of shares in Rafineria Gdanska. Two weeks later, Nafta Polska decided to carry out negotiations with both bidders simultaneousl. It expects to complete the privatization process before June 2001.(Puls Biznesu, p.7) M. S.-C.