Won tender for construction of a gas and steam unit in Żerań

PGNiG Termika chose the winner of the tender for construction of a gas and steam unit in the CHP plant in Żagań. It was the consortium of Mitshubishi Hitachi and Polimeks-Mostostal. Tender bids opened on 16 February. The winners priced the work at 1,102 billion PLN and 111,93 million euro. The amount of the second bid, which was declined, submitted by GE Power and General Electric International consortium, amounted to 1,369 billion PLN and 114,85 million EUR. PGNiG Termika commented on the declined General Electric offer in a press release on tender results. The company referred to two Articles of the Public Procurement Law – one on declining a bid submitted “by a contracting party excluded from participating in tender proceedings or not invited to submit bids” and another one stating that the wording of the bid was not in line with the terms of reference.

At the end of 2016, PGNiG Termika announced that three consortia will be invited to submit bids: MHSPE and Polimeks-Mostostal, General Electric group companies and Siemens with Budimeks. The latter decided not to put in their bid.

The criterium taken into consideration when making the choice was technical and financial. Building the gas and steam unit is to take 36 months and the agreement will be effective for 108 months.

One should remember about the previous tender, cancelled by PGNiG Termika in July 2016. The decision was due to the fact that the offer went over the requester’s budget.

The planned investment is to contribute to the improvement in the energy security of the Warsaw agglomeration and ensure a noticeable improvement in air quality. It was also revealed that thanks to the construction of the new energy unit, the oldest coal boilers will be retired from service. The power plant in Żerań was opened in 1954 and is the second- largest source of heat for Warsaw.

Business Implications for Poland

Economic and regulatory developments in Poland have broad implications for businesses operating in the country. Poland’s economy, the largest in Central and Eastern Europe, continues to attract international investors and entrepreneurs seeking EU market access, competitive costs, and a skilled workforce of over 17 million workers.

For foreign companies and entrepreneurs doing business in Poland, staying informed about economic trends, regulatory changes, and market dynamics is essential for strategic decision-making. Whether you are considering entering the Polish market, expanding existing operations, or optimizing your corporate structure, professional advisory support can help navigate the complexities of the Polish business environment.

Poland offers a comprehensive business infrastructure including special economic zones with tax incentives, a well-developed banking system, modern office space in major cities, and a legal framework aligned with EU standards. These factors, combined with Poland’s strategic geographic position between Western and Eastern Europe, make it an attractive hub for businesses targeting the broader European market.

If you are doing business in Poland or considering entering the Polish market, Zalewski Consulting can help. Learn more about our company formation in Poland, or contact us for a free consultation.