Polish utility PGE secures $1 bln financing guarantees from PKO

WARSAW Mon Jan 20, 2014 12:43pm EST

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WARSAW Jan 20 (Reuters) - Polish utility PGE has agreed financing guarantees of up to 3.1 billion zlotys ($1 billion) with bank PKO BP for investments such as its Opole project, the company said on Monday.

PGE, which is Poland's biggest power producer, said in December that it would start work on the 11.6 billion zloty project to build a coal-fired power plant at Opole in February.

The project, which is Poland's biggest investment in the coal-based power sector, was the focus of a row between PGE's former chief executive Krzysztof Kilian and Poland's government.

Kilian, who resigned last year, opposed the plan to build two 900 megawatt units at Opole, arguing that it was unprofitable because of low power prices.

But Polish Prime Minister Donald Tusk insisted on the project going ahead to improve the country's energy security. ($1 = 3.0670 Polish zlotys)

(Reporting By Karolina Slowikowska; Editing by David Goodman)

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