The National Chamber of Appeal (KIO) has dismissed the appeal of the CNEEC-COVEC consortium regarding the selection of the Polimex-Hitachi consortium to build the coal-fired power unit at the Elektrownia Kozienice power station. CNEEC-COVEC will analyse the KIO verdict and may appeal it. At the end of May 2012, Enea announced Polimex and Hitachi had won the tender to build the 1,000 megawatt power unit. The consortium offered a PLN 5.105bn price. The CNEEC-COVEC consortium was ready to build the power unit for PLN 5.007bn, but the other offer was better in all other areas. In a statement Enea announced construction of the power unit will take around five years and its launch is planned for 2017.
Polimex-led consortium is closer to signing the contract. It is expected to come somewhere in August or September. Polimex is likely to receive PLN 268m in prepayments from Enea. We believe that these proceeds are going to be somehow secured by Enea (escrow account) and will be only used for executing the Kozienice deal rather than for financing other working capital needs of Polimex. This means that it is not going to solve the problems of the company with current liquidity problems.