The commencement of the executive works related to the new block in Bielsko-Biala heat and power plant is drawing near. Despite the fact there is no evident sign of construction operations, the activities connected with the investment are going full steam.

At preset, there is a tender procedure in progress for the selection of contractor of the fundamental part including: fluidized-bed boiler, turbine, heat accumulator and peak load boilers. The bidders submitted initial offers and there was a negotiation phase based on which the final Terms of Reference were prepared. The works on this document were concluded mid-August. Having read the Terms of Reference, the Bidders had one month to place the final bids. The final contractor will be chosen basing on the bids.

Before the Main Contractor can commence the works, he needs to have the construction site made available to him by Poludniowy Koncern Energetyczny. Prior to that, the construction site needs to be prepared for the works. Therefore, the letter of inquiry was sent concerning the aforementioned scope of preparatory works to all the Capital Group Companies in early August. In accordance with the stipulations the selection of the Contractor was carried out in September. Thanks to such a agenda the site will be made available for the Contractor at the beginning of 2010.

Alongside the contractors selection procedures there are also procedures underway aiming at the securing of financing for Bielsko-Biala investment. Two advisory companies were invited to cooperate with PKE on securing financial outlays – PwC Polska with regard to financial aspects and CMS Cameron McKenna with regard to the legal aspects. In the initial stage, their task was to select the best sources of financing. European Investment Bank was chosen as the best option on June 30, 2009. this recommendation was accepted by PKE Management Board on July 14, 2009. The meeting with PKE and EIB representatives was held on July 27, 2009 when the bank representatives showed deep interest in the company financing program, particularly in case of Bielsko-Biala investment.

(DaW)