Rafako withdraws from deal with Chinese partners on power plant

PBG SA w restrukturyzacji w likwidacji

29/10/2013 12:30

WARSAW, Oct 29 (Reuters) - Polish boiler maker Rafako RFK.WA  said it withdrew from a deal with Chinese partners to build a $5.4 billion zloty ($1.8 billion) coal-fired power generator at Tauron's  TPE.WA  Jaworzno site in southern Poland. Officials at Tauron, a state-controlled power producer, could not immediately be reached for comment on whether the decision would affect the construction of the proposed 920 megawatt unit. Rafako cited differences over the contract with North China Power Engineering and China Power China Power Engineering Consulting Group Corporation and said on Tuesday its decision to end the contract would not hurt its financial results.  Earlier this year Rafako and builder Mostostal Warszawa MSWP.WA  won the contract to build the new coal-fired unit. The company then signed a deal in May with the Chinese partners to access more funds and help the group obtain necessary banking guarantees to secure the contract. ID:nL5N0E8106  Poland needs to build new power generation to avoid electricity shortages after 2016, but utilities are facing obstacles in planned projects due to builders' woes and falling power prices. Rafako is majority owned by troubled Polish builder PBG PBGG.WA , and Mostostal Warszawa is owned by Spanish infrastructure firm Acciona  ANA.MC . ($1 = 3.0316 Polish zlotys) (Reporting by Agnieszka Barteczko,; Editing by Michael Kahn and Jane Baird) ((agnieszka.barteczko@thomsonreuters.com)(+48226539721)(Reuters Messaging: agnieszka.barteczko.reuters.com@thomsonreuters.net)) Keywords: POLAND TAURON RAFAKO/