March 15, 2018 / 12:38 PM / 2 years ago

Poland's Energa to announce result of power plant tender within days

WARSAW, March 15 (Reuters) - Poland’s state-run utility Energa said on Thursday it would announce the result of a tender for the construction of the Ostroleka 1-GW coal-fuelled power plant in the coming days.

In December Energa, which is investing along with fellow state-run firm Enea, said three offers had been submitted to build the Ostroleka plant, all of which overshot the original budget of 4.8 billion zlotys ($1.41 billion).

Polish construction firms Polimex-Mostostal and Rafako both offered to build the unit for 9.59 billion zlotys, while China Power Engineering Consulting Group proposed a cost of 4.85 billion zlotys.

Energa said at the time that the price would not be the only factor taken into account when selecting the winner.

“The process is coming to an end, this is a matter of a few days,” Energa’s acting Chief Executive Alicja Klimiuk told a news conference, declining to comment on whether the tender could be cancelled.

She added that Energa expects that the planned Ostroleka unit will participate in a power capacity auction later this year.

Ostroleka, which is expected to be ready by 2023, will be the last coal-burning plant to be built in Poland, the energy minister said last year.

Poland plans to reduce the share of coal in its energy mix to 50 percent by 2050 from around 80 percent currently.

$1 = 3.4108 zlotys Reporting by Agnieszka Barteczko; Editing by Lidia Kelly and Dasha Afanasieva

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