Polish budget draft: PLN 15 bn revenues from privatization in 2011

Privatization is expected to bring PLN 15 billion in 2011, as envisaged in the next year’s budget draft. Privatization revenues planned for 2010-2013 amount to approximately PLN 55 billion, of which PLN 30 billion is to be acquired between 2011 and 2013.

Net income from privatization expected to flow into budget in 2011 are planned for PLN 7.69 billion. The remaining funds (PLN 7.31 billon) will be earmarked for target funds like the Enterprise Restructuring Fund, Reprivatisation, Treasury, Science and Polish Technology and the Demographic Reserve Fund. Profits from dividends are expected to reach PLN 3.3 billion next year.

‘Efficient implementation of the privatization process is the only chance to maintain economic growth and to improve competitiveness of Polish economy. Privatization creates the basis for accelerating development and for the modernisation of enterprises thus the entire economy’, it is written in the next year’s budget draft. Similarly as in previous years, privatization of Treasury’s companies in 2011 is to be carried out through the Warsaw Stock Exchange and in the form of public auctions.

The majority of privatization income before 2013 is expected to come from the sale of insurer PZU and PKO BP bank. The Treasury plans also to sell shares in Bank Polskiej Spółdzielczości.

The planned privatization projects in electro-energy sector are to take into account the needs of companies connected with investments in nuclear energy. The privatization process of heat-power plants is to be continued. The Ministry plans further privatization of refiner Lotos.

In case of the chemical sector, the Treasury is running work concerning the new privatization strategy of the first chemical group: Ciech, Tarnów Nitric Plant and Kędzierzyn Nitric Plant. The Treasury also wants to privatize Rudniki Chemical Pant and Mining plant and Sulphur Processing Plant Siarkopol in Grzybów