The Warsaw Voice » Business » Monthly - July 30, 2012
Business & Economy
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PGE Wants Tax Privileges
Energy company Polska Grupa Energetyczna (PGE), which is tasked with building Poland’s first nuclear power plant, has called for special tax treatment in connection with the project.

PGE said changes in the law, especially tax regulations, are needed to make sure the construction of a nuclear power plant is profitable in this country.

The company insists that expenses incurred in the initial stage of the project should be tax deductible.

“Construction of a nuclear power plant is a very complex, long-lasting and extremely capital-intensive project; it therefore requires special formal and legal conditions,” said Bogusława Matuszewska, vice-president of Polska Grupa Energetyczna.

The first step in this direction was made last year when the law regulating how nuclear power plants operate and how they should be supervised was amended just a month after it took effect, Matuszewska said.

“We are now waiting for further moves, specifically changes in tax rules, to allow this project to be carried out in an absolutely professional way, matching its magnitude and complexity,” said Matuszewska.

She added that no other projects in Poland last as long as the construction and operation of a nuclear power plant. The investment process itself, from the start of the bidding procedure to the day when the plant becomes operational, takes up to 15 years. And the life of such a plant is 60 years, according to Matuszewska.

“In this situation, the whole investment process requires a big outlay,” said Matuszewska. “Any delay could result in adverse financial consequences. Therefore, it is important to have tax regulations under which funds spent on the initial phase of the project could be tax deductible.”

The nuclear power plant can cost up to zl.55 billion to build. The first of the two reactors planned in Poland, with a capacity of up to 3,000 MW, is scheduled to be completed in 2023.