Bonds emission as well as guarantee for bonds emission amount to 650 million PLN. Bonds will be emitted in the Polish market for the period of 10 years and will be secured on the Company property. Finances obtained from bonds emission – along with own resources, resources from commercial sources as well as preferential funds for ecology – will be allocated for construction of power unit block in the Łagisza Power Plant of 460 MW capacity worth approximately 500 million EUR. The investment will begin in 2006.

Construction in Łagisza is an element of the company strategy. Provisions of the Treaty of Accession and strict EU directives on ecology to become valid as of 2008 will result in the fact that in a few years’ time – as older production units will be gradually removed while demand for power will be increasing – Poland may run out of national energy. A new block in Łagisza will replace other withdrawn PKE SA units.

The investment will be realised for about 40 months. A unit in Łagisza will have capacity of 460 MW and comply with all the requirements arising from the EU ecological directives. Its efficiency will amount to 46 percent, while today blocks in the domestic power industry reach 34-36 percent on average. This block will burn approximately 1.2 million tonnes of coal a year (mainly of lower quality without harmful effect on environment and efficiency). A boiler will be supplied by Foster Weeler, and a turbine – by Alstom. (pag)