The authorities of Zakopane are afraid of the repeated sale of Polskie Koleje Linowe (PKL) after the company’s possible listing on the stock exchange. During Thursday’s session, the City Council adopted a position opposing ownership changes. He appeals to the Prime Minister to react and protect the public interest.
Polish Cable Railways, including the cable car to Kasprowy Wierch, previously belonging to the PKP SA Group, were sold in 2013, during the PO-PSL government, to Polskie Koleje Górskie, established by four Podhale local governments. Capital for the purchase in the amount of PLN 215 million was provided by the Mid Europa Partners fund, which then purchased 99.77 percent. shares in the Luxembourg company Altura. At that time, privatization caused numerous political, social and legal controversies. In 2018, the Polish Development Fund bought back 99.77 percent. PKL shares as part of the re-Polonization of strategic infrastructure announced by the PiS government.
At the end of October, the Polish Development Fund emphasized in a statement that it was analyzing development scenarios for Polish Cableways, but assured that it would maintain full control over the company. The fund’s statement was a reaction to reports about the possibility of selling PKL shares or introducing the company to the stock exchange.
In the position adopted on Thursday, the Zakopane Council noted that PKL has been a key element of the development of tourism in the Tatra Mountains for decades, as well as an important cultural and social symbol of the region. The resolution emphasized that all activities related to strategic infrastructure must be carried out with the utmost caution, in a transparent manner and with full respect for the public interest.
The Council also recalled the historical conditions related to the company’s operations. “Some of the land on which the PKL infrastructure operates was once expropriated from the inhabitants of Podhale, often without full compensation. The local community treats the company as a common good and an integral element of regional heritage” – it was written in the appeal.
The Chairman of the City Council, Grzegorz Jóźkiewicz, noted that the main addressee of the position is the Prime Minister.
– We are convinced that the Prime Minister does not know about this movement or these ideas of PFR, which is why we appeal to the Prime Minister to take a closer look at these movements and respond positively to our appeal – he said.
The mayor of Zakopane, Łukasz Filipowicz, added that the local government demands that the voice of local communities be taken into account.
– There are no details at the moment, but for fear of repeating the history of several years ago, we strongly appeal to the subject of the stock exchange debut or other ownership changes in PKL to be approached very carefully. We want local governments to be able to present their demands and be taken into account in discussions
– said the mayor.
The City Council and the mayor emphasize that the possible entry of the company on the stock exchange raises concerns in the local community, because in such a case, control over PKL could be taken over by a person or entity holding a majority of shares. – Every ownership change raises some controversy in Podhale. We want the common good, protection of natural and social values and concern for the sustainable development of the Tatra Mountains to remain the overarching principles when making decisions regarding PKL – we read in the resolution.
The sale of PKL in 2013 was controversial from the very beginning. The case was investigated by, among others, the prosecutor’s office and the Office of Competition and Consumer Protection. Both PiS politicians and residents of the region protested. President Andrzej Duda appealed then that the sale of the cable car to “foreign hands” should be stopped and, if necessary, the state should buy it back. Billboards criticizing privatization appeared at the entrance to Zakopane. The local community’s opposition was strengthened by the fact that part of the PKL infrastructure at Kasprowy Wierch was built on the land of private owners who were expropriated for public purposes.
After selling the cable cars, the Tatra National Park called on PKL to stop using the cable car to Kasprowy Wierch and dismantle it, raising land ownership issues. An additional source of disputes was the decision of the Ministry of the Interior to consent to the takeover of real estate for railway infrastructure by an entity with foreign capital.
In 2018, Prime Minister Mateusz Morawiecki announced the repurchase of 99.77 percent. PKL shares by the Polish Development Fund.
PKL currently owns cable cars and ski lifts to Kasprowy Wierch, Gubałówka, Butorowy Wierch, Jaworzyna Krynicka, Palenica in Szczawnica, Mosorny Groń in Zawoja and Góra Żar in Międzybrodzie Żywiecki.
The Polish Development Fund did not respond to PAP’s questions on this matter.
