The fate of a planned energy investment in Opole that's PGE's flagship construction project might be crucial for the Polish economy, said Krzysztof Kilian, CEO of the state-controlled energy firm.

A consortium led by Rafako won a tender for the construction of two 900MW coal energy units in the southern Polish city, in what would be the largest energy investment in Poland.

However, environmentalists have appealed against the environmental approval issued for the investment and managed to win the case in court. On September 18, a court of higher instance will deal with the case again. PGE would have to re-launch its application if the court sustained the decision, delaying the investment further.

“The court’s decision means much more than just the green light for this particular investment. It might be crucial for the future of the economy as it might launch a catastrophic chain reaction,” Mr Kilian warned, reported Puls Biznesu.

Although PGE is ready to submit a new environmental application in 2-4 months, the problem is that Polimex-Mostostal – a member of the consortium – might simply not survive that long. The builder suffered large financial losses in the first half of the year and, like many other construction companies in Poland, stands at the brink of bankruptcy, Puls Biznesu wrote.

The investment in Opole might be its last chance and if the investment is delayed the company might just collapse. If that were to happen, its role will have to be taken over by the leader of the consortium. However, Mr Kilian warned that it might be just too big of a challenge for Rafako to handle.

According to PGE's CEO, if Polimex goes bankrupt and companies from the PBG group don’t manage to get back on their feet, Poland will have huge problems finding builders ready to carry out the country’s strategic investments. And suspended investments together with the economic crisis are a perfect recipe for a recession in Poland, he added.

Poland A.M.