Hitachi-led consortium wins $1 billion contract from PGE

WARSAW Tue Mar 18, 2014 2:29pm EDT

A PGE logo is seen on a cooling tower of the PGE Turow Power Station in Bogatynia, southwest Poland, March 19, 2012. REUTERS/Kacper Pempel

A PGE logo is seen on a cooling tower of the PGE Turow Power Station in Bogatynia, southwest Poland, March 19, 2012.

Credit: Reuters/Kacper Pempel

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WARSAW (Reuters) - Poland's biggest utility group PGE PGE.WA picked a Hitachi-led consortium to build a coal-fired power unit at a price of 3.25 billion zlotys ($1.07 billion), a member of the consortium said.

The consortium selected to build the 430-450 megawatt unit at PGE's Turow plant in south-eastern Poland comprises Hitachi Power Europe, MHPS Europe, Tecnicas Reunidas (TRE.MC) and Budimex BDXP.WA , a Polish unit of Spanish firm Ferrovial FERC.MC.

Budimex said in a statement on Tuesday that works on the unit are to take 56 months from the moment when construction gets underway.

The statement said that Hitachi Power Europe and MHPS Europe's combined share in the consortium was set at 55.4 percent, while Tecnicas Reunidas and Budimex have 22.3 percent each.

Poland's coal-reliant energy sector requires heavy investment, because many plants are past their prime. The new unit at PGE's Turow plant is designed to replace older ones at the plant in five years.

($1 = 3.0257 Polish Zlotys)

(Reporting by Marcin Goclowski; Editing by Christian Lowe)

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