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Privatization
Government position at ZE PAK weakened by privatization deal
Polish government has little chance of wresting back control over Zespół Elektrowni PAK power plant from Elektrim group despite its 50 percent stake in the company. Five years ago Poland sold 38 percent of ZE PAK, the country's second largest power plant to Elektrim power and telecoms group. Under the terms of privatization agreement with Elektrim, officials at the Treasury are supposed to back Elektrim's choices for board members and senior executives until 2008. The government will be left with just one board member.
In return, Elektrim pledged to invest at least 1.4 billion zloty on upgrades at Pątnów I, one of ZE PAK's several power generating plants plus another 2.1 billion zloty at other facilities. Warsaw-based holding has actually spent only a fraction of that amount and is still...
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