Project number:


Business sector:

Information and Communication Technologies

Notice type:


Environmental category:


Approval date:

27 Oct 1998



PSD disclosed:

18 Nov 1998

Project Description

The Government of Poland has decided to privatise Telekomunikacja Polska S.A. (TPSA) and has mandated Schroders to advise on the sale of 15-25 per cent of TPSA by way of an initial public offering (IPO). The EBRD will act as a cornerstone investor in TPSA’s IPO, investing between US$ 75 million and US$ 100 million, depending on market demand. The Polish Government announced on 15 October 1998 an initial price range of PLN 14-18.5 per share, valuing TPSA at US$ 5.6 billion to US$ 7.4 billion. The Bank's investment would therefore represent between 1.0 per cent and 1.8 per cent of the company's market capitalisation.

Project objectives: The Government of Poland has decided to privatise TPSA and has mandated Schroders to advise on the sale of 15-25 per cent of TPSA by way of an IPO.

Transition Impact

The privatisation of TPSA will:

  • complete an essential element in the Government's liberalisation programme and impose transparent regulation on the telecommunications sector in Poland;
  • enforce private market disciplines, thereby enhancing operating performance; and
  • create liquidity and depth in Polish equity markets, improve Poland's exposure to international capital markets and attract new sources of finance from capital markets, increasing investment in telecommunications.

The Client

TPSA is the dominant telecommunications operator in Poland. It is currently 100 per cent government owned. TPSA has a monopoly over domestic long-distance telecommunications until 1999 and international long-distance telecommunications until 2003. By the end of 1998, it will be competing with one operator in each of the local districts for local telephony. TPSA owns 66 per cent of PTK Centertel, a DCS-1800 and NMT-450 cellular operator in Poland.

EBRD Finance

The EBRD will act as a cornerstone investor in TPSA’s IPO, investing between US$ 75 million and US$ 100 million, depending on market demand.

Project Cost

N/A (proceeds from the IPO will accrue to the Polish Government).

Environmental Impact

The project was screened as C/1, requiring an environmental audit. A corporate environmental review of TPSA was carried out based on the EBRD’s corporate environmental, health and safety questionnaire. In 1996, the company commissioned environmental audits of its major sites, the findings of which were later confirmed by independent environmental consultants. Based on these investigations, an environmental action plan was developed to improve environmental performance at the company’s facilities. The plan was agreed, in principle, in September 1998.

The company is aware of environmental issues associated with its operations and has the basic environmental management structure in place. However, corporate environmental management needs to be strengthened. TPSA is planning to adopt an environmental management system (EMS) based on the international standard ISO 14,001. An EMS in line with ISO 14,001 has already been developed for the TPSA’s fibre optics manufacturing plant.

In the past, there were several community complaints about the company’s operations, in particular related to the impact of electromagnetic radiation. These have and are being resolved. TPSA will be required to review and improve its public relations approach.

As a result of harmonisation with EU legislation, new environmental regulatory requirements came into force in Poland in 1998. To comply with these regulations, TPSA is applying for new permits for waste management, water use and new construction.

The Bank’s participation in TPSA will further promote improvement of environmental management and public interaction and the implementation of the environmental action plan.

Technical Cooperation


Company Contact


Business opportunities

For business opportunities or procurement, contact the client company.

For state-sector projects, visit EBRD Procurement: Tel: +44 20 7338 6794

General enquiries

EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168

Public Information Policy (PIP)

The PIP sets out how the EBRD discloses information and consults with its stakeholders so as to promote better awareness and understanding of its strategies, policies and operations. Please visit the Public Information Policy page below to find out how to request a Public Sector Board Report.
Text of the PIP

Share this page: