Rafaco’s decision to breach the agreement with potential investors surprised the market. The management of the company specializing in energy investments wanted to find an investor. Willing people, however, have been missing for a long time. Just In October 2021, both Polimex Mostostal and PFR TFI announced their involvement in Rafaco. These are companies that are indirectly controlled by the state treasury. At stake was the completion of the overhaul of the coal-fired unit at the Jaworzno Power Plant – one of the largest power generation units in our country, which has been in failure since June 2021.
Rafako said in an official statement The reason for withdrawing from the agreement is a dead end in the investor process. The company’s president, Radosław Domagalski-Łabędzki, revealed more details in an interview with Business Insider.
The termination of the consortium agreement was necessary because We do not agree on a plan that will lead to the completion of work on the unit in Jaurzno in the process of a fictitious investor, and then to the collapse of Rfco.. If this is the plan, and unfortunately cannot be ruled out, I will not allow it, says Domagalsky-Łabędzki.
It turned out that the flashpoint was not only the impasse in talks with potential investors, but also the unsuccessful negotiations with JSW Koks, belonging to Jastrzębska Spółka Węglowa. Ravaco is building a heating and generation plant for it in Koksownia Radlin, which will also provide heating to the residents of Radlin City. The project turned out to be more expensive than Rafaco originally thought, and problems began. Meanwhile, signing an addendum to the contract with JSW Koks was one of the conditions for Polimex and PFR’s financial participation in Ravako.
political background
Rafako sees a political motive for this. – There is a political game going on about the project in Radlin that we don’t understand and we don’t want to participate in. Unfortunately, we became its victim, because signing an extension with JSW Koks on this project would allow us to shut down the entire restructuring process and get back to market. This is the last supplement that Ravaco must sign. I would add that this supplement was positively evaluated by the Prosecutor General’s Office as beneficial to both parties – argues Domagalski-Łabędzki.
We have asked all entities involved in the case to comment. Polimex Mostostal does not comment on this situation. Likewise, Torun, to which the Gauruzno power plant belongs. PFR TFI informs us that all information relating to mutual fund investments, investment decisions and the investment process is subject to a professional confidentiality obligation. In turn, JSW Koks has yet to answer our questions.
worst case scenario
Ravaco announced that his bank guarantee on the construction contract will expire at the end of January power unit in Radlin. – If we do not sign this extension, no bank will extend it. Then we finish our activity on this project, and Ravaco prepares for the worst case scenario, which will also mean the end of work on the 910MW unit in Jaurzno. – CEO of RAFCO alerts.
The board also stresses it is ready to take “decisive action to defend the company,” including further conversations with PFR and Tauron about potential scenarios. Interestingly, Polimex Mostostal is no longer in this group.
– We have already asked PFR TFI, as a minority shareholder, to step up the work to find investors, but time is running out – adds Domagalski-Łabędzki.
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