No. 6 (243) / 2016 Polish Market by Polish Market

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No. 6 (243) /2016 :: www.polishmarket.com.pl

EnErgy InfrastructurE InnovatIon chEmIcal Industry ......................

Michael

Wolff

President and CeO Of Pfleiderer GrOuP

ONTENT

6. From The President’s Press Office 8. From The Government Information Centre OUR GUEST

INFRASTRUCTURE

22. ROBERT GERYŁO, PhD, deputy Director for Strategy

and Development, Instytut Techniki Budowlanej (ITB): ENERGY EFFICIENCY OF CONSTRUCTION PRODUCTS AND BUILDINGS

9. ANDRZEJ PIOTROWSKI, Undersecretary of State,

24. MICHAEL WOLFF, President and CEO of Pfleiderer Group:

10. ANDRZEJ ADAMCZYK, Minister of Infrastructure

MAREK MICHAŁOWSKI, Chairman of the Supervisory Board, Budimex S.A.: 2016 WILL BE BETTER THAN LAST YEAR

Ministry of Energy: DEVELOPMENT OF CONVENTIONAL POWER SECTOR BORDERS ON A BREAKTHROUGH

and Construction: TRANSPORT ROUTES OF EUROPEAN IMPORTANCE RUN THROUGH POLAND

11. JADWIGA EMILEWICZ, Undersecretary of State at the Ministry of Economic Development: HOW THE IMPLEMENTATION OF NEW TECHNOLOGIES TRANSFORMS THE ECONOMY FROM ONE BASED ON IMITATION TO ONE BASED ON INNOVATION

12. PROF. MICHAŁ KLEIBER, Vice-President of the European

Academy of Sciences and Arts: INNOVATION IS A SYNERGY BETWEEN KNOWLEDGE, ENTERPRISE, WELL CONCEIVED REGULATIONS AND A CULTURE OF RESPECT FOR HUMAN CREATIVITY

NEW CHAPTER IN PFLEIDERER’S HISTORY

28.

29. GALERIA METROPOLIA THE LAST STRAIGHT BEFORE THE OPENING

30.

BARTŁOMIEJ SOSNA, Head Construction Analyst, PMR: POLISH CONSTRUCTION MARKET

32.

KONRAD PŁOCHOCKI, General Director of the Polish Association of Developers (The PZFD): ABOUT THE UNNECESSARY COSTS OF HOME BUILDING

34. DARIUSZ KRAWCZYK, CEO OF POLNORD: PROJECTS IN THE TRI-CITY AND WARSAW ARE THE DRIVING FORCE FOR POLNORD

CHEMICAL INDUSTRY 14. TOMASZ ZIELIŃSKI, Ph.D., President of the Board, Polish

36. ALEKSANDER KABZIŃSKI, PRESIDENT OF THE POLISH

15. NEW PRODUCTS AND INNOVATIVE SOLUTIONS

38. ZBIGNIEW WOJCIECH OKOŃSKI, PRESIDENT OF THE

Chamber of Chemical Industry: STRONG CHEMICAL INDUSTRY IS THE BEDROCK OF MODERN ECONOMY

16.

MAREK JAGIEŁA, Head of Industrial Chemicals and Plastics Division and Team Leader of Market Development Team at BASF Polska Sp. z o.o.: POLISH CHEMICAL INDUSTRY HAS A HUGE POTENTIAL FOR DEVELOPMENT

17.

HONORARY PEARL OF POLISH MARKET, PROF. KRZYSZTOF MATYJASZEWSKI, CHEMIST RECEIVED THE OUTSTANDING POLE TITLES / Agnieszka Gutowska, PhD: FUNCTIONAL BIOPOLYMERS FROM RAW MATERIALS SUPPLIED BY THE GRAIN AND MILLING INDUSTRY

18.

INNOVATION

AGGREGATE PRODUCERS ASSOCIATION: QUALITY IS BETWEEN THE PRICE OF THE CUSTOMER AND THE LOWEST PRICE

MANAGEMENT BOARD, ROBYG S.A.: THE KEY TO SUCCESS IN REAL ESTATE IS MATCHING THE OFFERING TO THE CUSTOMER’S EXPECTATIONS

39. JANUSZ TURAKIEWICZ: 2ND CLUSTER WORLD CONGRESS POLAND 3.0 – TIME TO RESTORE THE NAVIGABILITY OF POLISH RIVERS

40. FUTURE MEANS LOW EMISSIONS 41. MAREK CYWIŃSKI, PRESIDENT OF THE BOARD, KAPSCH TELEMATIC SERVICES: ITS IS THE FUTURE OF POLISH ROADS

WOJCIECH KUŹMIERKIEWICZ, Ph.D, President of the Board Polpharma Scientific Foundation: 15 YEARS OF GOOD CO-OPERATION BETWEEN BUSINESS AND SCIENCE

42. ANDRZEJ ŻURKOWSKI, PH.D., DIRECTOR OF THE RAILWAY

19. PROF. PIOTR KUNA, President of the Scientific Council

TERAZ POLSKA EMBLEM 44. MACIEJ PROLIŃSKI: TERAZ POLSKA, OR PRIDE

of the Polpharma Scientific Foundation: THE FUTURE OF POLISH SCIENCE

21.

KRZYSZTOF KUREK, Ph.D., Director of the National Centre for Nuclear Research: WAITING FOR A GREEN LIGHT FOR A POLISH NUCLEAR POWER STATION

RESEARCH INSTITUTE: WE ARE READY FOR ACTION

AND OBLIGATION!

45. ASS. PROF. PIOTR H. SKARŻYŃSKI MD, PHD, MSC: THE FUTURE IS IN THE HANDS OF TELEMEDICINE

We Help people of

Science

46.

KAROL ZARAJCZYK, President of the Board of Ursus S.A.: WE HAVE USED THE FACT THAT THE URSUS BRAND IS WELL-LIKED

62.Cultural Monitor

48. ZABRZE WITH THE TERAZ POLSKA EMBLEM 51.

CULTURE

64.

ENERGY

MACIEJ BANDO, President of the Energy Regulatory Office (URE): ENERGY UNION AND ACTIVITIES OF THE POLISH REGULATOR IN 2015

66. PROF. MICHAŁ KLEIBER, HONORARY SPECIAL PEARL POLISH MARKET AWARDED WITH

52. POLAND’S ENERGY STRATEGY

THE ORDER OF THE WHITE EAGLE

67. MACIEJ PROLIŃSKI: GREAT SHAKESPEARE INSPIRING AS ALWAYS

53. CONCLUSIONS AFTER THE COP 21 CLIMATE SUMMIT 54.

68.

LESZEK JUCHNIEWICZ, Ph.D., adviser to the President of the Employers of Poland Organization, Chairman of the Advisory Board of the EuroPower Energy Conference: 20 YEARS OF NOSTALGIC SEARCH FOR A COMPROMISE

PRZEMYSŁAW MROZOWSKI, PhD, acting Director of the Royal Castle in Warsaw, deputy Director for Museum and Research Affairs: THE ROYAL CASTLE – GLAMOROUS BUILDING, MUSEUM AND PEOPLE...

55. 23rd EUROPOWER ENERGY CONFERENCE

70.MACIEJ PROLIŃSKI:“RESURRECTING HISTORY: WARSAW”

56. ROBERT ZASINA, President of Tauron Distribution S.A.:

71. MAGIC OF MUŻAKÓW BRINGS NATIONS TOGETHERAWARDED WITH THE ORDER

58.

72. MACIEJ PROLIŃSKI: NOT MAKING ANY NOISES...

OF THE WHITE EAGLE

WE ENABLE CONSCIOUS ENERGY CONSUMPTION

JANUSZ STEINHOFF, Deputy Prime Minister and Minister of Economy in the government of Jerzy Buzek, Adviser to the Board of PwC: WE ARE NO LONGER FORCED TO BUY GAS FROM RUSSIA

60. EUROPEAN EXECUTIVE FORUM

EVENTS

74.

FOOD INDUSTRY

BOHDAN JUCHNIEWICZ: CONQUERING THREE CONTINENTS BIOFACH - SUCCESSFUL VISITS AT THE MOST IMPORTANT FAIRS

61.

PIOTR KASAK, Engineered Systems Leader RACE Regions Russia, Africa, Central and Eastern Europe: WHAT COUNTS TODAY IS THE PRODUCT AND NOT ITS ORIGIN

75. ECONOMIC MONITOR

MAJOR EVENTS IN JUNE 2016 WITH “POLISH MARKET” AS A MEDIA PARTNER:

Cover: MICHAEL WOLFF, President and CEO of Pfleiderer Group Photos on issue: www.shutterstock.com

6/2016 Publisher: Oficyna Wydawnicza RYNEK POLSKI Sp. z o.o. (RYNEK POLSKI Publishers Co. Ltd.) President: Krystyna Woźniak-Trzosek Vice - Presidents: Błażej Grabowski, Grażyna Jaskuła Address: ul. Elektoralna 13, 00-137 Warszawa, Poland Phone (+48 22) 620 31 42, 652 95 77 Fax (+48 22) 620 31 37 E-mail: info@polishmarket.com.pl Editor-in-Chief: Krystyna Woźniak-Trzosek Deputy Editor-in-Chief: Ewelina Janczylik-Foryś redakcja@polishmarket.com.pl Marcin Haber m.haber@polishmarket.com.pl

Writers/Editors: Maciej Proliński, Jan Sosna, Sylwia Wesołowska-Betkier, Business Class, Janusz Korzeń, Jerzy Bojanowicz, Janusz Turakiewicz,

DTP: Godai Studio www.godai.pl

Contributors: Agnieszka Turakiewicz

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Editorial

Krystyna Woźniak-Trzosek Editor-in-Chief President of Rynek Polski Publishers Co. Ltd.

COULD IT BE A PREMATURE ALARM? REPORTS ON THE PERFORMANCE OF THE POLISH ECONOMY IN THE FIRST QUARTER OF THIS YEAR DO NOT SET AN OPTIMISTIC MOOD. THE SLOWING DOWN OF GDP GROWTH AND OUTPUT GROWTH IN KEY MARKET SECTORS LIKE FINANCE AND CONSTRUCTION, WHICH PREVIOUSLY WERE STRONG, AND A RELATIVE DECLINE IN RETAIL SALES, ARE REASONS FOR CONCERN ABOUT ANOTHER DROP IN POLAND’S GLOBAL RATING. APRIL ADDED ANOTHER POINT – THE WEAKENING OF THE POLISH ZLOTY AGAINST THE U.S. DOLLAR. THIS WAS RECORDED PREVIOUSLY BY ONLY TWO CURRENCIES IN THE WORLD: THE POLISH ZLOTY AND THE PHILIPPINES’ PESO. FINALLY, HOWEVER, THE TORRENT OF NEGATIVE ECONOMIC NEWS HAS TURNED ITS COURSE – OPTIMISM IS RETURNING. This invigorating breeze was ushered in by the IMF report on worsening prospects for economic growth around the world, including in the United States, Japan and the euro zone. The report also portrayed a promising momentum by Poland to maintain growth both this year and next. Better yet, there is optimismin the most recent forecast estimation by the European Commission, which apparently is very pleased with the plan presented by the Polish Government titled “Multiannual Financial Plan for 2016-2019”. Also the authoritative comment by the National Bank of Poland (NBP) with the decision to maintain current interest rates highlighted the stability of our economy’s growth, by specifying the weakness at the beginning of the year as transient. In subsequent quarters, Poland is expected to maintain the current stable economic growth pattern. The main factors for keeping current growth stability are consumer demand supported by growing employment, wage increases and increases in social benefits. This is supplemented by the mood of consumer forecasts, the financial situation of companies, the high use of their production capacity, as well as the steady growth of credit. Certainly, a source of uncertainty for the economy remains the risk of a downturn in the world and fluctuations in commodity prices. An example of such a situation can be seen in the chemical sector, considered so far to feature a large development potential. The leading industries have passed successfully through the consolidation processes, by finding stable and prospective owners/partners overseas, which allowed them to occupy key positions for being leaders on the Central and Eastern European markets, and even on a European level. This applies in particular to the petrochemical industries; the chemical and fertilizer industry and rubber tire production. Many companies in this sector have matured to a point of capital expansion phase beyond the boundaries of Poland. This, however, does not solve the main problem, as far as other European companies have to cope in the global market, namely the high costs. Their American or Asian competitors have first access to: primary raw materials such as oil, gas, potassium salts, phosphate, etc., secondly: lower labour costs, thirdly: lower costs and charges related to environmental protection, or the fulfilment of production quality standards. The only effective strategy in this situation is investing in innovative products and technologies, utilizing high levels of creativity and skills provided by the workforce. This team – just so happens – for years has been considered one of the stronger sides in the Polish chemical sector, and now here comes time to say “check.” Certainly, to win any war you need the financial means that is money, money, and more money. This is slowly starting to be understood in Poland. That is why financing of these innovations has taken off, both from public sources (e.g., a programme funded by Innochem NCBiR) and businesses (e.g. Synthos Chemical Award for the best Polish chemist -inventor). It now begins to make sense. Much more care is given to a few other sectors of our economy, standing on the threshold as ground-breaking decisions. On the fore definitely moves “the key to development” which is infrastructure. In order not to complicate things, we will restrict ourselves to transportation infrastructure, in which the current progress of modernization has been exemplary progress (thanks to the generous support of EU financing). The main beneficiary has become the road transport industry, but over the course of seven years of the EU budget period, we have been unable to build everything. The goal by 2023 is the completion of the national road network, which means the construction of yet another 3.9 thousand kilometres of motorways and express roads and around 50 urban ring roads. Underway currently is the social consultation programme, with the main question of “how to build the initial roads estimated at PLN 198 billion, whereas the budget is PLN 107 billion.” The Polish railroad workers had to deal with the opposite of the problem. It turned out that money is important, but does not solve all the problems. A modern railway line can no longer be built using methods dating back to a hundred years ago, hence another Polish paradox – we can build great fast passenger trains and freight trains, but they do not have the railway system to drive on. There are a lot of these “Polish specific problems” that we have to fix. The most important seems to be the problem of energy. We wrote it off entering the the European Union, we underestimated the entanglement in climate policy, we allowed the EU Commission to block our energy investment programme, and we personally said goodbye to ourselves from renevable energy sources. Last year we experienced our first blackout on a national scale. Will this summer be a replay? And finally, our view about the falsity of the EU emissions trading system as a method to “flip the garbage over our neighbour’s fence” was supported by Pope Francis in the encyclical “Laudato SI”. Realistically, it is not going to change anything, however, we can sweeten ourselves up with a comforting moral victory. 6/2016 polish market

President

Photo: Andrzej Hrechorowicz KPRP

MESSAGE FROM THE PRESIDENT OF THE REPUBLIC OF POLAND ON THE OCCASION OF THE 1050th ANNIVERSARY OF POLAND’S BAPTISM

he Baptism of Prince Mieszko I is the most important event in the entire history of the Polish state and nation. I do not say it was, I say it is for the decision taken by our first historical ruler had predetermined the whole future to come for our country. Our Christian legacy continues to shape the destinies of Poland and of each and every one of us, Polish people, until this very day. This is what Holy Father John Paul II had in mind when he observed: ‘Without Christ, one cannot comprehend the history of Poland’. Tradition has it that the baptism of the ruler of the Polan people most likely took place on the Holy Saturday of 14 April 966. And it was already at that point that Poland was born. From the baptismal waters it emerged for a new Christian life. It was born for the world, emerging from the prehistoric era and entering the arena of European history. It was also born for its own sake: as a national and political community, since the adoption of the Latin rite at baptism defined our Polish identity. From that time on, we started thinking and speaking of ourselves as ‘we, the Poles’. Back then, we said ‘yes’ to freedom and self-determination. We demonstrated that we were capable of building our nation and our own state solicitous about its welfare. To build it, defend it and die for it. It was not predetermined that the work would succeed, that a community would be formed. And yet, the work was crowned with success. A community was successfully built on a foundation of faith which has ever since inextricably grown into our identity, often featuring in our history as the principal and final shield of freedom and solidarity. By being baptized our forefathers defined the core around which the magnificent Polish nation would then be formed. And in the darkest moments, when our enemies tried to destroy the Church in order to bring down the groundwork of our Polish identity, the Polish people would defy the object and would crowd in churches in pursuit of their sense of community, and thus testifying to the timeless wisdom of the decision once taken by our forefathers. .… A thousand and fifty years ago, Poland joined the Christian community of that era. She did so of her own accord, aware of the

6 polish market

benefits that this act would bring, including political benefits. Thanks to Prince Mieszko’s far-sighted decision Christianisation provided a powerful stimulus for Poland’s development. The state gained a stronger basis on which to build its security and sovereignty. Over time it became increasingly modern, more efficiently governed, more internally integrated. The preachers of the Good News opened before the Polish people an enormous treasury of spiritual riches, promoting the Christian vision of man in our culture. Since the end of the 10th century, the Decalogue and the Gospel have become ever more deeply rooted in millions of hearts on the banks of the Warta and the Vistula, the Oder and the Bug, the Neman and the Dnieper rivers. They have provided a motivation to build a better, more humane world. That is why our joining the domain of Christian civilization, in its Latin rite, represented a real breakthrough for us. The three pillars of this civilization have also become the pillars of Polish identity and culture. The first of the three pillars has been and remains Greek philosophy, or the love of wisdom. And that is the primacy of objective truth. Precise instruments for investigating and analysing reality. An immovable foundation for the development of all sciences to this very day. The second pillar has been and remains Roman legal thought and government concept. The idea of the rule of law. The idea of a republic, that is a state that is a common good of the citizens that rule it. It is also the civic ethos, an ethos of privileges connected with responsibilities. These are principles improved and tested over the centuries, principles that provide the groundwork also for modernday civil, criminal, procedural and national law. The third pillar has been and remains the core of Christian thought: the Old and the New Testament, the Decalogue and the Gospel. This novel, revolutionary vision of humanity as a family, as a community of brothers and sisters equal before the Father and His moral law. It is also a call for peace, for repentance for any evil done and for forgiveness for any wrongdoing one has suffered. An imperative to give priority to the human person over objects, over mundane advantages and the desire for possession. The protection of the weaker ones, an appeal for solidarity in helping the needy and the brilliant subsidiarity principle. It is the recognition of the dignity of women and the contribution made by them to the lives of societies in various fields. The idea of government and superiority as service and the belief that rulers, too, are subject to moral judgment. Christianity is also a unique concept of the separation between the sacred and the profane, that which is divine and that which belongs to Caesar. The idea of autonomy, but at the same time of cooperation between the secular and spiritual authorities. These are also institutions such as the university and the local school, the hospital and the orphanage. It is a new vision of military, medical and economic ethics. And, last but not least, the heights of art and genius, achieved by artists inspired by Christianity: visual artists, architects, musicians and poets. Therefore, it should not come as a surprise to anyone that it is only in the circle of this particular civilization that ideas and phenomena such as the concept of inalienable human rights as every human’s birth right, constitutionalism, a democratic state of the rule of law, universal international law, workers’ and emancipation

Prime Minister

PRESIDENT DUDA MEETS WITH PRESIDENT OF THE ASIAN INFRASTRUCTURE INVESTMENT BANK

resident of Poland Andrzej Duda received President of the Asian Infrastructure Investment Bank (AIIB) Liqun Jin at the Presidential Palace. The conversation was regarding the Bank’s activities as well as opportunities created for Polish entrepreneurs committed to this initiative, especially in the context of close co-operation with partners from Asia. The President said that the Act of Ratification of the Agreement on the Establishment of an Asian Infrastructure Investment Bank entered into force that day. President Liqun Jin thanked for the decision of the Polish authorities to contribute to establishing the AIIB, stressing that Poland was the only member-founder amongst the member states of Central and Eastern Europe. In his opinion, this proves the importance that Warsaw attaches to the development of economic relations with Asian partners.

resident of Andrzej Duda paid a visit to Portugal. He met with the President and Prime Minister of Portugal. The discussions were regarding the preparations for the July NATO Summit in Warsaw. The President also opened an exhibition at the University of Lisbon about the museum in Markowa, Poland. Andrzej Duda was the first foreign guest for the President of Portugal who had been elected as President in January. Marcelo Rebelo de Sousa took the office of President at the beginning of March.

Photo: Andrzej Hrechorowicz KPRP

PRESIDENT OF POLAND VISITS PORTUGAL

PRESIDENT OF POLAND VISIT CANADA

t ren g t hen i n g the eastern flank of NATO, climate policy, economic relations, and Ukraine were the topics for the visit of President Andrzej Duda in Canada. The President met with the Canadian Prime Minister Justin Trudeau and Governor General of Canada. In a four day visit, the President was accompanied by his spouse Agata Kornhauser-Duda. The presidential couple visited places of importance to the Polish community. 6/2016 polish market

Photo: Andrzej Hrechorowicz KPRP

movements and the modern public debate ethos have appeared. All of them are deeply rooted in the Christian heritage. … Christian civilization, for the past 1050 years co-created and defended with great dedication by the Polish people, is the result of titanic work and struggle of millions of people, an effect of numerous inquiries and experiments, historical trials and errors. It is a mature, universal creation, with a powerful impact on humanity as a whole. It is not a fossil. It keeps organically evolving. It needs its young leaves and sprouts just as much as it needs its hidden roots. It also needs a trunk to mediate between them, that is a natural synthesis of the old and the new. A tree may be felled. One may poison its roots and watch it wither. This does not take a lot of effort or too much time. However, to plant a new tree and wait for it to grow and bring fruit is a long process. That is why the price for destroying the foundations of our civilization and attempts to replace them with other concepts, incoherent and loosely sketched, has always been and will always be enormous suffering and devastation. This was most clearly demonstrated by the 20th century and its two ideological projects: communism and Nazism, with their horrible consequences. The 21st century has quickly faced us with new, difficult challenges. In a global village, the natural rivalry between different civilization models has attained an unprecedented intensity. In Poland and in Europe, debates are ongoing on how to address these new challenges. I personally believe that the thing to do in this situation is to trust the strength of our identity, to draw on the rich treasury of ideas, experiences and solutions developed in a combined mainstream of the two great traditions: the Greco-Roman and the Judeo-Christian ones. They are what we should base our actions on. Indeed, the primary responsibility of the President, the Senate, the Sejm and the Government of the Republic of Poland is solicitude for our present day. Solicitude to ensure a Poland and a Europe where the dignity, rights and aspirations of all citizens are respected and protected. Solicitude to ensure a Poland and a Europe where solidarity and a sense of community should take precedence over rivalry and a play of interests. However, solicitude to ensure a good tomorrow is an equally important task for us. Solicitude to ensure that our heritage of tolerance and openness, our freedom and our material as well as spiritual strength are preserved and allowed to grow further. …. On the eve of Poland’s accession to the European Union, Pope John Paul II pointed out that this was a great opportunity for our nation to enrich the West spiritually, the same West that had once brought the Christian faith to us. Europe needs Poland, and Poland needs Europe, said the Holy Father. That is why, in paying tribute to our far-sighted predecessors of 1050 years ago, I would like to state most emphatically today that, following the guidance of our great compatriot, Poland is and will remain true to her Christian heritage. For it is in this heritage that we have a well-tested, strong foundation for the future. We are not here forever, just as Mieszko was not here forever, Polish kings, the great leaders of our people, as our Holy Father John Paul II was not amongst us forever. We are not here forever, but we have a great obligation to safeguard the foundations of our tradition and our culture, we have an obligation to build a strong country, as well as a great community of our nation, based on what we were raised on - on our great tradition of mutual respect, honesty, integrity, and as required heroism in the defence of our homeland. We were raised up in the tradition of building a strong Poland, not only for ourselves and our close relatives, but above all for generations to come. I firmly believe that we can meet this challenge.

Prime Minister

PRIME MINISTER BEATA SZYDŁO VISITS VATICAN CITY

n May 13, Prime Minister Beata Szydło met in the Vatican with Pope Francis. One of the topics of discussion was the World Youth Day to be held in Poland this year. The visit of the Prime Minister to the Vatican was part of ongoing preparations for the upcoming World Youth Day in Kraków. Another issue discussed with Pope Francis was the geopolitical situation in the East, as well as strengthening co-operation with the Vatican for the protection of human rights. The audience with the Holy Father was the first meeting of the Prime Minister with Pope Francis.

POLAND AND THE CZECH REPUBLIC HAVE COMMON VIEWS AND INTERESTS

rime Minister Beata Szydło and Prime Minister Bohuslav Sobotka officiated the Polish-Czech intergovernmental consultations in Warsaw. “It was a meeting of friends and neighbours who have a good mutual understanding,” assessed Beata Szydło. “In the discussions pertaining to security issues, the economy, mutual relations, but also challenges that stand before us in the EU – dealing with the most serious problems, regarding the migration crisis in Europe – we found a lot of common points,” said the head of the Polish Government. Poland’s Prime Minister stressed the importance of co-operation between the two countries within the Visegrad Group. “The group is becoming an increasingly important European entity, which can indicate constructive solutions,” said Beata Szydło. “The position of the Visegrad Group regarding issues of migration is immutable. We want to be creators of positive policy in dealing with the migration crisis in Europe, but we state very clearly that our consent will not be given to changes of the rules governing relocation,” added the Prime Minister. In June 2016 the Presidency of the Visegrad Group will be taken over from the Czech Republic by Poland.

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MEETING OF PRIME MINISTER SZYDŁO WITH UN SECRETARY GENERAL BAN KI-MOON

t the UN headquarters in New York City on April 23, Prime Minister Beata Szydło signed, on behalf of Poland, the global climate agreement negotiated in Paris at the end of 2015. After the ceremony, the Prime Minister met with UN Secretary General Ban Ki-moon. The subject of discussion was the situation in Ukraine and the Middle East. The meeting of the Head of the Polish Government and Secretary-General Ban Ki-moon was also an opportunity to discuss the implementation by Poland of the obligations of the Kyoto Protocol and the Doha Amendment ratification issues. The Prime Minister also addressed issues related to Poland applying as a non-permanent Security Council Member and Poland’s candidacy for the post of Executive Secretary of the United Nations Framework Convention regarding climate change.

POLISH-DANISH ALLIANCE FOR THE CREATION OF A EUROPEAN ENERGY UNION

rime Minister Beata Szydło met on April 18 with Prime Minister of Denmark Lars Løkke Rasmussen. The topic of conversation were energy issues, including the construction of the Baltic Pipe, security, and bilateral economic co-operation.

The discussion between the Prime Ministers was an opportunity to exchange opinions about the construction of the Baltic Pipe. As argued by Prime Minister Szydło, the construction of the pipeline is a strategic investment project enhancing Poland’s energy security The Polish prime minister added Poland wanted to better conditions for economic co-operation, therefore a package is being prepared with solutions that will help foreign companies invest on the Polish market.

Our Guest

DEVELOPMENT OF THE CONVENTIONAL POWER SECTOR BORDERS ON A BREAKTHROUGH ANDRZEJ PIOTROWSKI, Undersecretary of State, Ministry of Energy

e are surrounded by a world of data. These data are structured, make up information which allows us to draw conclusions. This is why we can say why something has happened. Information gives us knowledge. Speaking of a knowledge-based economy, it would appear that we have attained a rational basis for thinking about the future. However, this is not the case. Decision-making requires wisdom. Thanks to wisdom, it is possible to predict what to do in situations which will occur. If we do not want to consult a fortune teller, we should take advantage of the wisdom of people with experience and knowledge organised in the form of data and information structures. However, we should also use knowledge which has not been described, stemming from our intuition. Such conferences are the easiest way of exchanging this knowledge because various approaches are represented and confronted here. This can provide the basis for seeking answers to questions concerning the future. We are in a completely new situation for the power sector which for years has been developing according to one seemingly simple and universal principle: electricity must be produced. One has to seek different forms of production and then sell and distribute electricity and provide everybody with access to it. It could be said that not much has changed, but, truth be told, a lot has changed. Certain production elements, very interesting from the point of view of their functionality and lack of environmental pollution, which normally would not be considered professional, have acquired the status of professional energy sources. Alas, renewable energy sources (RES) are not profitable enough from the investment point of view to be able to compete against the traditional sources. Consequently, we have a market distortion which generates certain events making electricity more expensive. How can we talk of a market if a large segment of the power

sector is not a market? There are attempts at new thinking which sometimes lead us to paradoxes. If we organise an auction to distribute subsidies then we are approaching something that is called market. At the first glance this system is rather strange, but in reality it allows reducing the costs of RES. Therefore, we take into account the fact that auctions are a model worth considering, despite our initial misgivings. On the other hand, we must consider how the rest of the sector should be allowed to function and how to adjust to supplying energy from the traditional sources. Here we come to yet another issue. There are sources which require very high outlays, I am talking about nuclear energy, but are stable and considered to be the cheapest method of supplying energy. Some 40-50 years ago, one MWh of nuclear energy in the USA cost USD 600 in terms of investment. Today, despite technological progress which should bring prices down, one MWh costs USD 6,000. If we look at the components of this price, it turns out that this is not a cost generated by the industry but by environmental safeguards and nuclear energy

safety regulations which are more restrictive and move towards absolute safety. Such pressures lead us into areas which are becoming very expensive. […] The question arises whether we should look for significant changes in the circulation of costs in the industry. If we look at the history of a number of recent projects connected with building nuclear power stations outside Poland it turns out that the costs of delays account for a sizable part of the investment outlays. We are talking of figures representing 20-30% of the initial costs. So, how to make energy from the traditional sources cheap? The traditional power sector too has undergone quite a revolution. Please note that we already have a number of new units and others are under construction. Together with the current production assets this gives impressive parameters. We are talking about an increase of energy production efficiency by more than 10 percentage points. This borders on a break• through. Remarks made at the EuroPower Conference on 13 April 2016.

6/2016 polish market

Our Guest

TRANSPORT ROUTES OF EUROPEAN IMPORTANCE RUN THROUGH POLAND ANDRZEJ ADAMCZYK, Minister of Infrastructure and Construction

Recently, the 2016 Transport Research Arena (TRA) conference was held at the PGE Narodowy Stadium in Warsaw. This international event came to Poland for the first time. What was the importance of this event for Polish infrastructure? TRA2016 owes its success above all to the hard work of the Road and Bridge Research Institute, which assumed the organisational duties and was responsible for the agenda of this year’s edition of the conference. It should be stressed that the Programme Committee of TRA2016 assessed over 900 abstracts and more than 700 complete papers. This has led to the creation of a huge knowledge base so needed by the European transport sector to maintain its competitiveness. But – as stressed by Professor Leszek Rafalski with his customary modesty – it was also a success of the collaborating sectoral organisations responsible for the future of Polish infrastructure. The Ministry of Infrastructure and Construction also made a contribution to TRA2016. My department was responsible for the protocol aspects, meetings at the highest level and the presence of the most important guests, including Deputy Prime Minister Mateusz Morawiecki, EU Transport Commissioner Violeta Bulc, Czech Transport Minister Dan Ťok and former Polish Prime Minister and President of the European Parliament Jerzy Buzek. The Ministry also organised a special panel discussion entitled “Innovative Transport in EU Policies” attended by representatives of the European Commission, Czech Ministry of Transport and Wrocław municipal authorities. PM

And the benefits for Poland? The Conference was an important meeting focused on scientific research and a forum for PM

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presentations and debates regarding the results of research projects conducted in the EU. It should be noted that the Transport Research Arena is not only a regular conference attracting scientists, representatives of the industry and administration. According to the intentions of the organisers – the European Commission, Conference of European Directors of Roads and European transport platforms, it should serve as a permanent knowledge exchange and technology transfer forum. The TRA2016 Conference is a huge contribution to the promotion of Polish science and economy among influential scientific, business and administration communities in the EU countries and the Eastern Partnership. This event, attended by over 2,400 guests from 62 countries and 60 exhibitors, was a review of innovations and the best solutions in the area of transport, infrastructure and logistics from all over the world. The quality of the event was confirmed by the fact that 88% out of the 300 participants who took time to complete the survey considered its organisation to have been good or excellent. What is the current state of our infrastructure? Are the opinions of experts consistent with the analyses carried out by the Ministry? We are in the process of optimising our road investment projects and revising the railway investment programme. We have invited experts from the sector to participate in both tasks. The dialogue with road and rail sector organisations has been resumed. The trilateral railway and construction teams have also been reinstated. I have announced permanent co-operation with experts implementing road investment projects as part of the National Contract Forum which is already taking PM

place. Proposals of changes require extensive consultations and, sometimes, readiness to forego some of the postulates. At this stage we must confront the assumptions inherited from the previous government with reality. The previous government adopted a roadbuilding programme worth nearly PLN 200 billion, if I remember correctly. Meanwhile, the financial plan contains PLN 107 billion. The shortfall in financing this programme is nearly PLN 90 billion. Perhaps we should “cut” the investment plans? Thanks to numerous projects, the transport accessibility of the country is increasing and the safety and effectiveness of the transport sector is improving. Poland’s transport system belonging to the Trans-European network (TEN-T) is also becoming better integrated with the transport system of the rest of Europe. Important European transport routes run through Poland, including corridors of the TEN-T base network – Baltic Sea – Adriatic and North Sea – Baltic Sea, where the main investment priorities include eliminating “bottlenecks,” construction of the missing sections of the infrastructure, or improvement of the accessibility of sea ports from the land side. Implementation of these corridors contributes not only to increasing internal accessibility of the country but also to the cohesion of the EU itself. Transport routes, including connections with Asia, are being developed. Poland is becoming an important element of this system as exemplified by regular railway lines between Poland and China. We are seeking ways of carrying out our plans. We will find these ways thanks, among others, to the optimisation of the road projects imple• mentation process. PM

Our Guest

HOW THE IMPLEMENTATION OF NEW TECHNOLOGIES TR ANSFORMS THE ECONOMY FROM ONE BASED ON IMITATION TO ONE BASED ON

INNOVATION

JADWIGA EMILEWICZ, Undersecretary of State at the Ministry of Economic Development

e are leaving the era of imitation and entering the era of innovation in the Polish economy. This is how the plan and the objectives of the Ministry of Economic Development can be described in just a few words. We also want Poland to be perceived ten years from now as a country of start-ups, a country offering good conditions for their formation and dynamic development. The development of innovation of Polish companies is one of the pillars of the Government’s “Plan for Responsible Development” which entails, among others, the drafting of a new Innovation Bill, a reform of scientific and research institutes so that their infrastructure and resources can be put to work for the economy and the implementation of the Start in Poland programme allowing to overcome barriers hampering the commercialisation of innovative solutions created by start-ups. We want innovation to be a priority not just at the governmental level but also regionally. To this end we intend to use legal instruments, including a tax break on investment, and to simplify the functioning of enterprises. We are also adding the innovation category to the catalogue of aspects used in the process of

selecting contractors awarded public procurement contracts at the statutory level. The aim is to increase the R&D outlays from the current 0.8% to 2% of the GDP by 2020. In order to redirect the economy towards innovation, we not only invest the EU funding from the national and regional operational programmes for the years 2014-2020, but intend to significantly boost the involvement of private capital. Polish products should be attractively designed, use technological innovation, but, above all, we want them to be offered in the international market under their own brand. We identify the most promising projects and sectors. Some of them, such as the railway sector or Polish drones, feature in the Plan for Responsible Development as examples of possible development programmes. An interesting Polish idea is using pilotless aircraft for transporting blood. This is a problem in the cities due to traffic jams. Another Polish advantage is the use of 3D printers. The space industry is also an important sector. This sector is particularly absorptive when it comes to innovation which is a very important tool used in economic development, but which can also improve the effectiveness of State institutions. Poland has a scientific and industrial potential and

a constantly increasing experience in this area, for instance, in the utilisation of modern satellite technologies in everyday life. Co-ordinating the activities of institutions dealing with innovation also serves the purpose of transforming the economy into the one that is more innovative. For this reason we have established the Polish Development Fund. We are interested in the overlap areas between sectors: solutions developed in one area which may find use in many industries at the same time. The problem approach is the key here. We must not treat innovation as an abstract, as products for their own sake. We want to achieve proper integration of the activities of institutions such as PARP, ARP, PAIiIZ, KUKE or BGK which pursue important development activities. The aim is to support small and medium-sized enterprises, increase innovation, boost investments, including foreign ones, and help Polish companies expand in international markets. These institutions do this, but each one acts for itself. Consequently, the aim of the Polish Development Fund is to integrate the functions and activities of these institutions. We all have the same goal. We want to maximally concentrate capital and focus on several key objec• tives. 6/2016 polish market

Our Guest

INNOVATION IS A SYNERGY BETWEEN KNOWLEDGE, ENTERPRISE, WELL CONCEIVED REGULATIONS AND A CULTURE OF RESPECT FOR HUMAN CREATIVITY PROF. MICHAŁ KLEIBER, Vice-President of the European Academy of Sciences and Arts

t is good that innovation is a topic frequently mentioned in Poland. Politicians demonstrate this way that they care about the competitiveness of the economy, business people express the need to modernise the profile of their activity to guarantee a more stable market position, scientists want to prove the immediate usefulness of their research, potential investors and representatives of the banking sector wish to exploit the economies of scale reducing the risk of involvement in projects which may generate above-average profits by increasing the number of innovative ventures. It is good that the motivation for taking pro-innovation actions is declared so widely. It is also good that individual groups in society can see their specific interests, even if they are not always convergent. Despite the many challenges posed by today’s world, increasing the level of innovation of businesses leading to better competitiveness is undoubtedly of key importance. What do we know about Polish innovation, growing but still remaining below our development aspirations? We know that the R&D sector on its own will not improve it. Independent efforts of businesses left to their own devices will remain statistically unsatisfactory and regulatory efforts pursued separately by individual ministries – of economic development, science, education, digitisation, health and defence, to name just those which are most deeply involved in pro-innovation initiatives, will not lead us to success. Even a much

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greater than now engagement of the banking sector and other institutions offering financial support to innovative business is not going to improve the situation by any significant degree. So, what is the secret of the growing innovation of the economies in the developed countries, the group we are striving to join with ever-greater success? The answer lies in the effectiveness of wide, enlightened co-ordination of various activities leading to synergies. All weaknesses and barriers should be eliminated together – the innovation system is as good as its weakest link. The list of issues requiring such consistent actions is long. Let us name a number of conditions determining the development of innovation. This list of necessary measures is by no means complete. 1. Development of an education system emphasising creativity and the ability to co-operate, continuous education with an attractive and widely accessible offer of supplementary knowledge or even a change of profession, improved management of higher schools and greater flexibility in designing study programmes and their internationalisation. It is necessary to differentiate the mission of higher schools so that by putting special emphasis on research, it is possible to create, for some of them, real chances of competing in the global education market, with the others able to offer solid vocational education. Supporting the co-operation between universities and business through the propagation of commissioned study

Our Guest programmes, a system of work experience internship or engaging lecturers representing innovative business are also important. 2. Understanding the role of scientific research as a magnet preventing the most talented young people from seeking attractive opportunities for creative development abroad, and as a key factor in the improvement of university education and a source of innovative ideas. We must pay much more attention to the fate of our best graduates and young researchers – attractive post-doctoral work placement and incentives to return from abroad would greatly increase the attractiveness of being a scholar in Poland and would prevent many talented young people from leaving the country for good. A necessary condition of effective science development is increasing the spending on research and development in combination with measures improving research quality. This purpose would be by, among others, facilitating a significant increase of international co-operation and a consistent increase of competition in the allocation of funds towards studies. The key to the rapid application in practice of scientific findings is the creation of a whole system of incentives to invest in research by the private sector and extensive assistance in the establishment of start-ups. However, it should be remembered that the rapid applications of research results should not become the main plank of the entire science-related policy. Firstly, because scientific research is a very special area of human creativity and disrupting its rhythm dictated by passion and talent can do more harm than good. Secondly, because the usefulness of applied research is determined by many of the aforesaid factors, often completely independent from the quality of research conducted at universities and research institutes. 3. Robust political and administrative actions aimed at improving regulations and the climate around innovative business. 4. Creation of a rational industrial policy of the country allowing more effective support for innovation activities of entrepreneurs in the strategic areas of the economy. This, in turn, requires building a systematic strategic reflection supported by a developed analytical and forecasting infrastructure. 5. Proliferation in society of a new culture of supporting human creativity and business innovation. This last matter is of special and often underestimated importance. We should remember than innovation is not a goal in itself, but a key to socially satisfactory functioning of the State in a globalised reality. If innovation is gaining in importance so rapidly, then this is not due to some ordinary technocratic fashion or political correctness, but due to the development of a completely changed social mentality,

or even a “new society,” aware of the challenges which all of us must face today. This type of social awareness is characterised by the ever-increasing importance attached to specific values, such as free exchange of information, living in harmony with nature, combating all forms of social exclusion or comprehensively understood solidarity. Interpersonal relations are subject to a fundamental reconstruction in such a society, largely due to electronic communication tools which include growing numbers of citizens in the increasingly dense “network society” which facilitates co-operation, but often focuses on fleeting, momentary, short-term things. The roles of producers and consumers, authorities and citizens, experts and observers are being mixed. Polish society must face up to completely new challenges. In demographic terms, we need to maintain social and economic stability despite the shrinking and ageing population. In terms of ecology, we need to switch to a growth model allowing us to maintain the existing standards of living while minimising damage to the environment or the climate. An increasing importance is also attached to combating poverty and effective prevention of social exclusion. These goals can only be achieved as a result of innovative changes in many walks of our life. This must be assisted by the new culture of innovation which should fully co-exist with the creative and open image of the new society, manifesting itself as a key condition of meeting the

new challenges. We should have no illusions that this culture can come into being by itself. Its development requires appropriate supporting tools offered by the State. We need the tools that allow for maximum utilisation of the energy accumulated in different areas: among entrepreneurs, scientists, teachers, civil servants – in fact, among a plethora of ordinary citizens who think rationally about their future and the future of their country. This new society does not need “less State” but “more of the new, and less of the old State”. The main task of the State today is to support the aforesaid communities facilitating movement towards a structure allowing us to maximise the synergy between them, and, consequently, effective functioning of the entire society under conditions of globalisation, co-dependence, digital revolution and deep changes in the sphere of values and identities. In other words, the new culture of innovation, appearing at the “grass-roots level” must be supported from above: by a strategy, actions and strongly emphasised words. Then, a project called “society of knowledge, skills and enterprise” will become a realistic goal corresponding to our justified ambitions and aspirations! Let us conclude by stating firmly that the dynamics of development of the globalised economy have made innovation a true indicator of success. We should have no doubt that we are moving in the right direction, but are we moving fast enough? • 6/2016 polish market

Chemical Industry

STRONG CHEMICAL INDUSTRY IS THE BEDROCK OF MODERN ECONOMY

TOMASZ ZIELIŃSKI, Ph.D., President of the Board, Polish Chamber of Chemical Industry

or years Poland’s chemical sector has drawn the attention of analysts and experts thanks to its ability to overcome challenges posed by the climate policy, technological progress, globalisation and the resulting ever-stronger competition in the key export markets. Polish chemical companies are able to adjust to the changing market situation. The latest statistics and macro-economic data indicate an improvement in the balance of trade and an increase in output. This improvement is not solely due to the depreciation of the zloty, but, above all, to the constantly improving quality of our products and the tried-and-tested sales channels. In addition, the statistics not connected directly with the economic situation of the plants are also a source of satisfaction: in its report on accidents in the Polish industry the Central Statistical Office indicates a reduction of the number of people injured in accidents occurring at chemical plants by approximately 4% in 2015. If someone still has doubts as to the development potential of the Polish chemical industry after analysis of the data above, I can add that the situation of our companies is also improving in terms of environmental protection. The decrease in emissions is greater than that required under the climate policy guidelines. Representatives of other branches of the economy should welcome the reports on the improved macro-economic data and other statistics in the chemical industry. The industrial chemistry sector is one of the pillars of Poland’s development. It is worth pointing out that some 70% of the output of our plants goes to other sectors and is the basis for manufacturers of fuels, asphalt, plastics, drugs or mineral fertilisers. There can be no modern economy without the chemical industry. It was for a good reason that in his “Plan for Responsible

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Development” Deputy Prime Minister and Minister of Economic Development Mateusz Morawiecki named the chemical sector as one of drivers of economic and innovation growth in Poland. COMPETITIVE POSITION OF THE CHEMICAL SECTOR SHOULD BE PROTECTED IN THE INTEREST OF THE POLISH ECONOMY The good condition of the chemical industry is an indisputable advantage of the Polish economy. Will it be possible to protect the competitive position of the Polish chemical industry in the face of further legal changes generating unnecessary costs? We are closely monitoring proposals of changes in the climate policy and environmental regulations. We are concerned about the latest information on draft regulations pertaining to smell nuisance and protection of surface waters from pollution by chemical plants, as well as about the planned changes in the ETS, the EU Emissions Trading System. Faced with growing international competition, the European Union and national public administration cannot afford to weaken the industry, and in particular, the chemical sector. All changes generating costs for production plants or affecting their operational issues should be consulted with the industry and their impact on the functioning of the plants should be adequate to their importance and capabilities. Public administration should eliminate barriers to development so that the industry could improve its competitiveness. The actions taken by chemical companies themselves are also very important. In order to protect themselves against an economic downturn, they should strengthen their process and energy efficiency, reducing the impact of raw material prices on their operations. The road to this goal

are ever-closer ties to science and innovation. The Polish Chamber of Chemical Industry has given an impulse here by initiating the creation of the INNOCHEM Sectoral Programme. INNOCHEM is the first programme in Poland co-financing innovation projects on such a scale (approximately PLN 120 million has been allocated to the very first competition for support of innovative projects). The Programme is conducted by the National Centre for Research and Development. DEVELOPMENT PROSPECTS OF THE SECTOR DURING THE POLISH CHEMICAL INDUSTRY CONGRESS (2016) Issues relating to the development prospects of the chemical sector, connected, among others, with the existing and planned environmental regulations, will be an important topic discussed during the 3rd edition of the Polish Chemical Industry Congress scheduled for June 15-16 in Kraków. Experts from the largest Polish and foreign companies in the chemical sector, academics from the leading universities and public administration representatives will debate ways of reducing the impact of the industry on the environment without creating unnecessary barriers to economic development. Other important subjects to be broached during this year’s Congress include: aspects of functioning of the chemical industry in Europe, role of distribution, energy policy, research and innovation, investment, compliance, support functions and HR development. We invite you to participate. Registration and organisational information about the Polish Chemical Industry Congress is available at www.kongrespolskachemia.pl. •

Polish Chemical Industry Congress, June 15-16, 2016, Kraków, Best Western Premier Hotel

Chemical Industry

NEW PRODUCTS AND INNOVATIVE SOLUTIONS

he Azoty Group is a future-oriented project. But this has always been the case. When in 1927 President Ignacy Mościcki decided to build a state-owned nitrogenous compounds factory it was a vision of the future. A vision of Poland’s heavy chemical industry. And the history of all the companies making up the Group put together give us the picture of one of the key corporate groups in the European fertiliser-chemical sector. During the last five years the Azoty Group has been pursuing a strategy of consolidation of the most valuable segments of Poland’s chemical industry. As a result it has succeeded in gathering under one brand complementary companies with different traditions and areas of specialisation. They include the four most important Polish companies in the industrial synthesis sector: Grupa Azoty S.A. (with its registered office in Tarnów), Zakłady Azotowe Puławy S.A., Zakłady Chemiczne Police S.A. and Zakłady Azotowe Kędzierzyn S.A. The company has been listed on the Warsaw Stock Exchange since 2008 and in 2013 it was added to the WIG30 index. It is Europe’s second-largest manufacturer of nitrogen and multi-compound fertilisers and products such as melamine, caprolactam, polyamid, OXO alcohols or titanium white, which also occupy an equally strong position in the chemical sector and are used in many different industries. The Azoty Group has been consistently changing the image of the Polish chemical sector, launching new products and innovative solutions, making it one of the most innovative branches of industry in Europe. Integration, innovation and orientation towards the future are the leading elements of the long-term strategy of this strong group which aims at continuous development while respecting the traditions and history of its subsidiaries. One of the elementary pillars of the strategy are new investment projects, which until the end of 2020 are to cost the company approximately PLN 7 billion. Since 2009, the Azoty Group

has been included in the RESPECT Index, the first index of enterprises following the rules of responsible business in Central and Eastern Europe, and since 2015 it has also featured in the FTSE Emerging Markets index. In recent years the Azoty Group has been generating sales revenues of PLN 10 billion which earns it the honourable title of economic champion. The Company employs nearly 14,000 employees and its stable shareholding structure means that it is included in the elite group of businesses of strategic importance to the national economy. The Azoty Group was the first Central European company to be included in the ICIS TOP 40 Power Players 2015 and in the list of the 10 chemical businesses most attractive to investors published by Boston Consulting Group, finding itself in the elite and prestigious group of companies giving the highest returns to • their shareholders. 6/2016 polish market

Chemical Industry

POLISH CHEMICAL INDUSTRY

HAS A HUGE POTENTIAL FOR DEVELOPMENT

MAREK JAGIEŁA, Head of Industrial Chemicals and Plastics Division and Team Leader of Market Development Team at BASF Polska Sp. z o.o.

will start by saying that the chemical industry can be healthy. Thechemical industry does not have to poison you. It can be clean. As the largest chemical company in the world, we feel responsible for the reputation of the industry and even chemistry itself, defined as a science. Therefore, the strategy we have chosen in regards to our motto is “we create a chemical industry for a sustainable future.” Our goal is to develop new chemical products that meet the challenges of the modern world: a growing population, increasing urbanization, the provision of food and water, and the improvement of quality of life. We do not develop new products by ourselves, although expenditures at BASF for innovation exceed EUR 1.9 billion per year. We understand innovation as co-operation, the exchange of ideas and mutual inspiration. Our innovations arise together with our customers and partners from the world of science. Investing in innovation, we support the development of our clients. Their success is also our success, and we are very proud of our joint implementation. This is our method for market success. In our assessment of the difficult global chemical market, the conditions for surviving are access to cheaper basic raw materials and innovation. Focusing solely on prices is not a method for continuous success. Innovation provides security during periods of market downturn. There is no denying that BASF makes use of the opportunities offered by globalization. We have production and R&D divisions in

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Germany, where the cost of raw materials is not the lowest, but we have powerful research facilities there, in North America or Asia. This ensures benefits such as cheaper shale gas in a period of relatively expensive oil during the past couple of years. It also allows to optimize research and development: for instance the centre for development of biotechnology was located in the United States after the European Union ceased to support the development of this field. The same method is practiced in Poland. The history of BASF Polska Sp. z o.o. is more than twenty years of active presence on the market. We have become part of the Polish chemical industry, as evidenced by an award obtained in recognition of the company’s contribution to the development of the Polish chemical industry in October 2015, during the Chemical Industry Summit and Awards Gala in Warsaw. The company works with entities from many industries, including the most important chemical companies. As a result of BASF SE global transactions, in 2010 employees of CIBA Poland joined BASF, and a year later the same was the case with employees of Cognis Poland. BASF also took over part of business from the Polish chemical company TDI CIECH in 2012. In 2014, a catalytic converter factory belonging to BASF was opened in Środa Śląska – with an investment of EUR 150 million, which was for the BASF Group the second largest investment in Europe. It is the largest undertaking of this kind in Europe. When being fully operational, the factory will double

the production capacity of BASF catalytic converters in Europe. BASF supports the spread of interest in chemistry among children and adolescents, being the sole-partner of the chemical laboratory in the Copernicus Science Centre in Warsaw. A similar laboratory was opened in the Humaniatrium at the EIT+ Wrocław Research Centre. We also co-operate with universities in the country – the University of Warsaw, the University of Wrocław, and the universities of technology in those cities. What is the overall further direction? We are convinced, that the Polish chemical industry has a huge potential for development. Polish companies are becoming more innovative and are entering the global markets more boldly. We want to contribute to their success. Our ideal is to find solutions facing the Polish economy: how to get rid of smog, what to do with CO2 from coal burned in power plants, how to build energy efficiency, how to raise the quality of life in cities, how to reduce the number of waste products or packaging – there is almost an infinite scope for innovation for chemists. If we are unique in Europe in terms of energy dependency on coal, then why is Poland not the European leader in the development of chemical processing of coal or the management of CO2? BASF has chemical processes that respond to all these problems. Implementation is only possible in co-operation with our partners: customers, institutes, universities, or national administration. •

Chemical Industry

HONORARY PEARL OF “POLISH MARKET” PROF. KRZYSZTOF MATYJASZEWSKI, CHEMIST RECEIVES THE OUTSTANDING POLE TITLE In 2011, Prof. Krzysztof Matyjaszewski, an outstanding scientist considered one of the leading chemists in the world, often mentioned as a serious contender for the Nobel Prize, received the Honorary Pearl of “Polish Market” in the science category. His name is certainly worth remembering because he is among those who change our reality and map out new directions of development.

rof. Matyjaszewski is a scientist respected all over the world. He is among the most often quoted chemists. Since 1985 he has been working at Carnegie Mellon University in Pittsburgh as the J.C. Warner University Professor of Natural Sciences, at Łódź University of Technology, and the Centre for Molecular and Macromolecular Studies of the Polish Academy of Sciences. His research group at Carnegie Mellon included more than one hundred doctoral and one hundred post-doctoral students. He has published in excess of one thousand academic papers and chapters in books. His works have been quoted more than 100,000 times (Google Scholar, 2015).

Prof. Matyjaszewski is a recipient of awards for innovations in the chemistry of polymers, above all for developing the ATRP method (atom transfer radical polymerization) allowing controlled synthesis of macromolecules that have a strictly specified structure. Thanks to this method, it is possible to obtain polymers of a previously unknown structure and properties, and the polymerisation costs are greatly reduced. By changing the temperature and other ATRP reaction parameters, it is possible to precisely control the composition of polymers and their architecture using a catalyst which adds one or a few monomers at a time to the growing polymer chain. The new method is widely used in practice and has numerous industrial applications. It constitutes an excellent example of

FUNCTIONAL BIOPOLYMERS FROM RAW MATERIALS SUPPLIED BY THE GRAIN AND MILLING INDUSTRY

the impact of science on business. It allows for more optimised work on the manufacturing of polymers and copolymers used as glues, sealants or components of paints. The method will soon be used in biomedicine as well. Research continues into methods of targeted drug delivery using molecular carriers, bone regeneration and other biomedical applications as well as in areas relating to environmental protection and energy. Professor Matyjaszewski is the recipient of eight university honours and such awards as the Dreyfus Award (2015), Wolf Award (2011), Presidential Green Chemistry Award (2009), FNP Award (2004), Maria Curie-Skłodowska Medal (2012), New York edition of the “Outstanding Pole” Competition in the science catego• ry (2016).

BIOPOLYMERS manufacturing

INSTITUTE OF BIOPOLYMERS AND CHEMICAL FIBRES, LODZ, POLAND Agnieszka Gutowska, PhD

he Institute of Biopolymers and Chemical Fibres (IBCF) is a leading research institution focusing on research, development and implementation in line with national smart specialisation, specifically in three areas of 1) agri-food, forestry and timber, and environmental bio-economy. 2) innovative technologies and industrial processes and 3) natural resources and waste management. R&D profile of the Institute also forms part of the strategic research agendas of the EU, including the Bio-Based Industry Programme. In recognition of its innovative activity, the Institute was awarded the Innovation Leader title in 2012.

In 2012-2016, the Institute, in co-operation with Lubella Sp. z o.o. Sp.k., a leading pasta manufacturer in the Polish market and a subsidiary of the Maspex Wadowice Group, and two research institutions: the Jan Długosz University in Częstochowa and COBRO – Packaging Research Institute in Warsaw carried out a project led by Danuta Ciechańska, Director of the Institute, entitled: “Modification and Functionalisation of Biopolymer Raw Materials Supplied by Grain and Milling Processing for the Development of a New Generation Biomaterials” (SKROBIOMAT) financed under the Applied Research Programme. In the course of the project technological solutions protected under intellectual property

laws, were developed. They were used for manufacturing starch-protein granulates from milling purified wheat and maize grain. Such granulates are useful in the manufacturing of biodegradable films, spatial forms, and fibrous composite materials. The aforesaid bio raw materials were also used for developing glue biocomposition for corrugated cardboard. One of these technological solutions received a Gold Medal at the Brussels Innova World Exhibition on Invetions, Research and New Technologies 2015. • 6/2016 polish market

Innovation

15 YEARS OF GOOD CO-OPERATION BETWEEN BUSINESS AND SCIENCE

“By supporting scientists, we support the creation of a better world with no incurable diseases. This activity, just like business, gives me considerable satisfaction.” Jerzy Starak, Chairman of the Supervisory Board of Polpharma, initiator of the establishment of the Polpharma Scientific Foundation

WOJCIECH KUŹMIERKIEWICZ, Ph.D, President of the Polpharma Scientific Foundation

e want to thank Mr Jerzy Starak for these words because thanks to such perception of science the Polpharma Scientific Foundation is already 15 years old and is doing well. Polpharma’s strategy is based on the idea of sustainable development where social responsibility underpins the management and decision-making philosophy. One should seek the beginnings of the Polpharma Scientific Foundation, created in 2001, in this philosophy. The objective of the Foundation has been to support pharmaceutical and medical sciences by financing research in these areas. The first, most important and on-going programme of the Foundation which began in 2002 is a competition for financing research projects in medicine and pharmacy. In its fourteen editions we have received over 650 scientific papers for evaluation and 64 research teams have been given grants worth nearly PLN 18 million. Projects are assessed by the Scientific Council and independent experts. The best are financed by the Foundation. It should be stressed that members of the Scientific Council receive no remuneration for their work, offering the Foundation their free time, expertise and skills. Using

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the opportunity, I would like to thank all the members of the Scientific Council for their valuable, altruistic work for the Foundation. In 2006, the Foundation launched an additional scholarship programme addressed to young scientists, PhD students of medical schools and the Post-graduate Medical Education Centre. The objective of this programme is to promote and reward the most talented PhD candidates. The prize is a doctoral scholarship of PLN 10,000. For a number of years the Foundation has been supporting the National Pharmacy Master Thesis Competition organised by the Polish Pharmaceutical Society. In 2015, for the tenth time, we funded financial awards for the competition winners. Another project created by the Foundation with young scholars in mind is the “Recommended Grant” programme launched in 2012 and implemented in collaboration with Polish medical scientific societies. Until now, the beneficiaries of this programme were cardiologists (2012) and ophthalmologists (2014). The total value of the grants awarded under this scheme stands at PLN 200,000. In 2007, the Foundation decided to support scientific work and educational and promotional activities to improve

Innovation the compliance of patients suffering from chronic diseases with therapeutic recommendations. The compliance project is being consistently implemented and forms a permanent fixture in the activity of the Foundation. Under this project two research studies have been funded, as well as the publication in 30,000 copies of Poland’s first monograph concerning observance of therapeutic recommendations in the treatment of chronic diseases. The Foundation also commissioned qualitative and quantitative studies aimed at finding how Poles go about their treatment. The results were compiled and published in 2010 in the form of a report entitled “Self-Portrait of a Polish Patient”. In the opinion of experts, there are no accessible publications presenting this issue from the point of view of everyday medical, pharmaceutical and nursing practice. For this reason, the Foundation decided to publish a textbook for physicians and medical students. Thanks to the involvement of the Foundation and financial support offered by Polpharma, in 2015 a textbook entitled “Non-Compliance with Therapeutic Recommendations. From the Causes to Practical Solutions” reached students and medics. The book’s scientific editors were Professors Zbigniew Gaciong and Przemysław Kardas, who also contributed to it along with 20 other specialists and experts. Since 2010, the Foundation has been publishing a journal entitled “Postępy Polskiej Medycyny i Farmacji. Zeszyty Naukowej Fundacji Polpharmy” (“Progress of Polish

Medicine and Pharmacy. Journal of the Polpharma Scientific Foundation”). This is not just a register of research projects completed, but also a source of knowledge about medical and pharmaceutical studies conducted by Polish research centres. Can the Foundation boast of successes 15 years down the road? Absolutely. The biggest is awarding 64 grants to research projects in 14 competitions organised to-date. The prize-winning research projects are innovative and linked to studies conducted at centres of global reputation. Another success are publications of research results in important foreign journals. In the course of the studies conducted with the financial support of the Foundation, several doctoral and post-doctoral theses have been written and a number of patents registered. Successes also include assistance to young scholars. Thirty seven doctoral students received scholarships. Most of them have already received their degrees. Over the last 15 years, the Foundation has become strongly rooted in the scientific community, establishing good and permanent relations with it. Scientists see it as a partner who can be trusted and entrusted with the implementation of research plans. By setting up the Foundation, Polpharma found the best way to ensure that the development of the Polish pharmaceutical industry is accompanied by the development of Polish science. During its 15 years the Foundation has received numerous awards and distinctions. •

THE FUTURE OF POLISH SCIENCE PROF. PIOTR KUNA, President of the Scientific Council of the Polpharma Scientific Foundation, talks to Marcin Haber about the needs and problems of young scientists, and the role of the Polpharma Scientific Foundation in overcoming them. The main motto of the Polpharma Scientific Foundation is “We help people of science.” Could you explain what kind of help is needed most? It is creative minds that mostly need help. These people get lost in the bureaucratic and fossilised reality. There are certain barriers that are difficult to overcome. One of the main problems that the foundation has come across over the past 15 years is judging whether a scientific project is innovative or not. Often you will come across projects that are way ahead of the way we perceive things, and beyond our current experience. Nowadays, PM

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there is a huge demand for projects that have a potential to be introduced into the market, the ones that could be patented. The truth is that without the financing of basic research projects, there will be no future projects that could be patented. Is the financing you mentioned the main problem? In the world of science there is something we call a pyramid. The foundation is based on basic research. Sometimes you can study something your whole life and not discover anything. Take Albert Einstein for example. After being awarded a Nobel Prize for his Theory of Relativity, he spent the rest of his life working on the Grand Unification Theory which he never managed to complete. Nevertheless, you have to remember that at some point someone will come up with this theory. I mention this to show that just because something does not exist, it does not mean that you should not work on it. In order to create something original you have to be very brave, and have financial resources to perform your research. It is very difficult to receive funding from the Nation Science Centre or the National Centre for Research and Development. The Polpharma Scientific Foundation is probably the only private foundation that in the past 15 years has not focused on financing breakthrough projects and introducing innovative inventions. From the very beginning, our aim was to finance studies performed by young people. We are talking about the people whose position in the academic world is not strong enough to receive grants in Poland. On the other hand, they have a good idea how to use these funds in a wise way. PM

So you do not have a business approach. I understand this is more of a mission? Yes, our actions are purely missionary. When we look from the scientific viewpoint at the effects of the grants we have awarded, we can say that this was a penny well spent. Our scientists have published the results of their studies in many places, including the famous “Nature” magazine. The goal of our foundation is not to finance research that, in anyway, is dependent on the sponsor in terms of serving their interests or not. Our aim is to support good projects. I will repeat “Good projects.” This is the reason for creating the Scientific Council. It consists of renowned, internationally highly regarded scientists. They are known for their independent thinking, judgements and views. The Scientific Council is also supported by experts from the world of science, and from certain fields. Since our foundation is not a big organisation awarding hundreds, or thousands of grants, it makes it easier for us to make a good and honest selection of the applications that have been sent to us. PM

Apart from grants, the foundation also awards scholarships for Master’s and PhD courses. Do you follow the careers of the recipients of these scholarships? Of course we do. We follow their careers, and I can firmly state that these people are the future of Polish science in the fields of medicine and pharmaceutics. PM

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How have the Foundation’s goals changed throughout the 15 years you have operated? Have you stayed loyal to your

primary principles, or have you evolved because of the market expectations? In our first years our grants were awarded to well-known scientists. Over time the Foundation’s priorities evolved. Despite the fact that in our early phases we supported well known scientists and select areas such as cardiology or neurology, we gradually changed the way we operated. We started financing young scientists, aged 35 and less. We also made the application process open to everyone. Today we are taking a broader view on medicine and biological research. Following the discussions in the Scientific Council, we will go even further. This year’s competition is about “Diagnostic tests and methods of using biomarkers in medicine and pharmaceutics.” So we are talking about issues concerning detecting cancer... Yes, mainly this, but not only. You also have chronic diseases such as diabetes, chronic obstructive pulmonary disease (COPD), multiple sclerosis, rheumatism, and many other illnesses. This year we will focus on finding solutions to treating them. For instance in terms of COPD the only available marker is spirometry, whereas something like COPD phenotypes exist. We are looking for these phenotypes. This will make therapy more effective, as the medication will be selected in accordance with each case separately. This leads to personalised treatment. We are aware that a few million people can suffer from a particular disease, and we will not be able to admit everyone to personalised therapy. But once we discover the set markers, we will be able to inform the patients’ general practitioners that a certain type of disease can be treated at home, or that the patient has to go to hospital for specialist treatment. This has a huge influence on costs. In terms of cancer treatment there is often the case that a specific, very expensive drug is effective on only one out of hundreds of genotypes. Prescribing it to every patient would be ineffective, and in fact harmful. As a result, many of those patients would suffer from side effects after taking that drug. Thanks to the markers, we will be able to prescribe these drugs only to the patients who will actually benefit from them. “Comparative effectiveness research” (CER) was the theme of the competition that we organised two years ago. It focused on comparing the effectiveness of different diagnostic and therapeutic methods. The grant was awarded to the scientists from the Jagiellonian University who were researching the effectiveness of treating brain strokes, and the influence it has on the patients survival. It turns out that the most expensive methods are not always the most effective. This is why it is worth performing such research. It will help us in the future to recommend the most effective treatment methods both clinically, and also financially. The state does not support any CER studies. So this is where our foundation comes in. Our role is to complement limited public funds. I will always say that the public payer for health services, in this case our NFZ (National Health Fund), should only finance cost effective therapies. Everything else should be covered by private insurance. This system works in many countries. Our CER studies had an important role in preventing wasting public funds spent • on treating patients. PM

Innovation

WAITING FOR THE GREEN LIGHT FOR A POLISH NUCLEAR POWER STATION KRZYSZTOF KUREK, Ph.D., Director of the National Centre for Nuclear Research (NCBJ), talks to Marcin Haber about the traditional and new competencies of the Centre and of a new and unusual co-operation. Last year, the National Centre for Nuclear Research in Świerk, outside Warsaw, celebrated its 60th anniversary. Is the area of the Institute’s activity still similar to the tasks entrusted to it at the beginning? Has the market and technological progress forced the NCBJ to evolve? The Institute was established to conduct research in the field of physics and nuclear energy. It received its nuclear reactor very quickly, in 1958. The first reactor in Świerk was called Ewa. Research into the application of neutrons and potential use of a nuclear reactor has been conducted from the very beginning. These studies continue today. Moreover, we have a strong sector of fundamental research connected with nuclear physics, elementary particle physics, astrophysics, as well as hot plasma physics and material physics. Our current reactor, built in 1974 and thoroughly modernised in the 1990s, is called Maria. It is one of the most advanced research reactors in the world. Due to its design, it offers easy access to the core, which makes it possible to conduct material research in the core itself as well as commercial irradiation, for instance in the production of radio pharmaceuticals, and material studies using horizontal channels, which mean a set of neutron spectrometers. This research has been continued and developed for years, in line with the original concept of the Institute. In the 1950s, Andrzej, Poland’s first modern accelerator, was built at the Institute. We are also continuing this tradition. We have an experimental laboratory for testing nuclear instrumentation. It is one of just a handful of manufacturers of linear accelerators for industrial and medical use, a novelty of sorts in the production of radio pharmaceuticals. This is the result PM

of the failed nuclear power station project in Żarnowiec. After the collapse of the Polish nuclear energy project in the 1980s, we exploited the experiences gathered during work on the power plant in Żarnowiec and nuclear reactors. This research and the competencies acquired in its course led to a switch to the production of radio pharmaceuticals. POLATOM, a research and production facility making radio-isotopes, which manufactures practically 100% of radio pharmaceuticals for the Polish market (excluding PET radio pharmaceuticals) has been established. It is also a major exporter, since we deliver products to 80 countries around the world. POLATOM uses our Maria reactor for production purposes. This reactor also irradiates uranium shields for the production of molybdenum for our foreign partners. In recent years, some 18% of the global production of molybdenum comes from irradiation in Maria. You have also recently built a “supercomputer.” Is this part of the natural development of the Institute or a method of expanding your competencies? We have always had a computer centre in Świerk. Since the very beginning we have had a very powerful computing machine. At times when IT was not so strongly developed, a supercomputer meant one large machine. Here, it was Cyber, very powerful and modern for its time. Recently, it became necessary to rebuild these computing capacities in view of a large number of research projects conducted at the Institute. The main objective of the IT Centre was to create facilities for Poland’s nuclear energy sector. When the programme aimed at building a Polish nuclear power station was launched it became clear PM

that computing capacities would be required for conducting safety analyses and other calculations connected with this project. Creating a computing centre for these purposes requires political decisions. We are still awaiting the green light for a nuclear power plant in Poland. Currently, we are doing this in order to maintain our competencies rather than due to any genuine needs. Recently, a letter of intent was signed regarding co-operation between two institutions which normally are not associated with each other, the NCBJ and the Polish Film Institute (PISF). What is it all about? It is about a supercomputer. The IT Centre has been financed under a very large European project. It is very advanced, but its maintenance is rather costly. Therefore, we are seeking business partners who could use the computing power of our computer. This will lower its maintenance costs which amount to several million zlotys per year. PM

And what are the film-makers going to calculate here? Mutual promotion is the aim of this collaboration. We do not expect to make money here. Our Centre has 32,000 processor cores. Some of them will be used for rendering films. The first trials have already been held. It was here that the film “Warszawa 1935,” presenting the city shortly before World War 2, was rendered. We have the necessary software and hardware. This letter of intent is to promote the rendering service and Polish film-making. For films supported by the PISF we have prepared considerable rebates for this service. We will make practically no money on these films, but it is • going to be a great promotion for us. PM

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ENERGY EFFICIENCY OF CONSTRUCTION PRODUCTS AND BUILDINGS ROBERT GERYŁO, PhD, deputy Director for Strategy and Development, Instytut Techniki Budowlanej (ITB)

he construction and building sector along its value chain includes material and construction products manufacturers, architects and engineering services for design, on site construction and services companies, property developers and facilities managers. An important feature of the construction industry is that it has an around 40% share in the consumption of natural resources. The construction works and technical systems for heating, cooling, lighting and ventilation must be designed and built in such a way that the amount of required energy in use of buildings shall be low for the occupants and for an economically reasonable working life. Construction works must

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also be energy-efficient, using as little energy as possible during construction stage and dismantling. Buildings account for 40 % of total energy consumption in the European Union. The sector is expanding, which increase its energy consumption. Therefore, reduction of energy consumption and the use of energy from renewable sources in the buildingâ&#x20AC;&#x2122;s sector constitute important measures needed to reduce the energy dependency and greenhouse gas emissions. According to building regulations and the national plan for increasing the number of nearly zero-energy buildings by 31 December 2020 in Poland all new buildings will have to meet nearly zero energy performance requirements, set with a view to achieving costoptimal levels. The cost-optimal level means the energy performance which leads to the lowest cost during the estimated economic life cycle, where the total cost is determined taking into account energy-related investments, maintenance and operating costs, energy costs and savings as well as earnings from energy produced and disposal costs. The estimated economic life cycle refers to the remaining life cycle of a building where energy performance requirements are set for the building as a whole, or to the estimated economic life cycle of a building element where energy performance requirements are set for building elements. Moreover, the cost-optimal level shall lie within the range of performance levels where the cost benefit analysis calculated over the estimated economic life cycle is positive. The measures to improve further the energy performance of buildings should not affect other requirements concerning buildings such as accessibility, safety, protection against noise and not be a threat to the hygiene or health of users and should take into account requirements for indoor climate environment quality. Buildings have an impact on long-term energy consumption. Major renovations of existing buildings give an opportunity to take cost-effective measures to enhance their energy performance. The increased use of energy from renewable sources also have an important role to play in promoting security of energy supply, technological developments and innovations. In the multi-annual roadmap and longer term strategy of Energy Efficient Buildings

PPP (where ITB represents the largest in Poland, leading research institute dealing with the building technology) horizontal technological aspects were concerned and one of most relevant research challenges was identified as new technical solutions for buildings envelope and its components for new or existing buildings. Thermal insulation materials, and in general energy efficient construction products for the envelope of the buildings are most important contributors to the decrease of energy demand in the building. Improvements of their thermal properties could be reached by adding coatings, nanotechnologies, raw materials, other additives, etc. Furthermore, new or adapted products and techniques are needed to increase energy efficiency of transparent envelope parts. At the ITB Testing Laboratories we support creating innovative construction technology and techniques. The accreditation scope (PCA Accreditation Certificates: AB 023, AC 020, AC 072, AP 113) encompasses a wide range of testing and certifications procedures specified in the Polish standards and EN, EN-ISO, ISO standards as well as other technical specifications. Our industrial cooperators benefit from our long-standing experience in the construction sector comprising the following scope of tests: mechanical, chemical, physical, fire, acoustic, thermal, biological, electrical, electronic, electromagnetic, radiochemical and radiation, non-destructive and tests in the field of the environmental engineering, etc. The application fields of research results are: - Research and Innovation projects (novel construction materials and construction products), - development works on prototypes and initial type test (CE marking/technical approvals, certification), - technical recommendations, environment performance declarations, - conformity and quality assessments for construction products market monitoring, - expert investigations of buildings. The ITB is involved in developing a system of European technical assessment for innovative construction products (European Organization for Technical Assessment EOTA) and is one of the founders of the European EPD ECO Platform, an organization set up to ensure the harmonization of the European system for issuing and mutually recognizing

environmental declarations for construction products, especially innovative ones. The objective of the environmental declarations is providing quantitative information on the environmental impact of construction products at individual stages of their life cycle. The research activity is focused on key sustainability aspects of construction products, works and buildings e.g. in the scope of thermal and energy performance, technical building systemsâ&#x20AC;&#x2122; quality and performance, hygienic and environmental performance of products, indoor air quality. Usually carried out research works are: - material testing in the scope of thermal resistance or thermal conductivity and durability of thermal properties against ageing, moisture absorption, dimensional stability, - thermal transmittance tests of complete components (unique in Poland), - computer simulations based on 2D or 3D modelling in steady state or dynamic conditions for energy efficiency optimization. The important tested group is energy related construction products which includes: - thermal insulation products, - windows, doors, roof windows, - glass units, - masonry units, - systems of curtain walling, - sandwich panels. In that group there are many applications of new generation of materials and technical solutions with excellent thermal properties and high strength for load bearing applications. Since there are many barriers that work against energy efficient buildings we work on removing them for new and for existing buildings. Although the energy saving potentials are huge, that is why technology available today can achieve a big improvements in building sector. Polish products are characterized by thermal properties, allowing meeting current energy efficiency requirements in all European countries from our region with a dominant heating season. Moreover, research results confirm that these products have thermal quality corresponding to needs of modern energy efficient buildings such as passive houses and similar standards. Current research projects conducted in cooperation with ITB will lead to further reduce of thermal transmittance at least to level of requirements for zero-energy buildings. Regular laboratory tests confirm also high quality of construction prodâ&#x20AC;˘ ucts from Poland. 6/2016 polish market

Infrastructure

MICHAEL WOLFF, President and CEO of Pfleiderer Group, talks to Polish Market.

NEW CHAPTER IN PFLEIDERER’S HISTORY You have been present on the market for 30 years now. Sometime over this period, has the company experienced a turning point that enabled it to become a leader; or is it more of a consistent growth story? Today, with approximately EUR 1 billion in revenue, 3,300 employees and nine production plants across Poland and Germany, the Pfleiderer Group is one of top five leading wood-based materials producers in Europe. In January 2016 we successfully finalized the integration of the Polish and German companies and started a new chapter in Pfleiderer’s history – One Pfleiderer. However, the history of our company is a history of pivotal moments, made to retain a leading position in the wood-based panel industry and PM

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construction market – it started more than 120 years ago. In 1894, Gustav Adolf Pfleiderer founded a timber-rafting business in Heilbronn close to the Neckar river. However, he died just two years later and the company was inherited by his eighteen-year-old son, Adolf. Together with his younger brother, Paul-Otto, he managed Pfleiderer (GAP) for fifty years. The first pivotal moment was created by the First World War when the import and timber-rafting business became almost impossible. This is why the brothers decided to invest in the industrial production of processed wood and bought sawmills in Heilbronn and Wernberg. The business was growing, so GAP expanded its operations to Neumarkt where production of the first impregnated railway

Infrastructure

sleepers and wooden poles was started. During the Second World War the main warehouse and the family home in Heilbronn were destroyed, so the Pfleiderer family decided to move their home and the company’s headquarters to Neumarkt. Step by step, GAP was able to supply wooden construction materials and help rebuild the local community after the war. In the nineteen-fifties, in response to changing market conditions and a decreasing demand for wooden sleepers, Pfleiderer had its second pivotal movement. In 1954 GAP started production of concrete sleepers, and sometime later concrete pools and particleboard. At the beginning of the nineteen-seventies Pfleiderer was transformed from a family business into an international company, and Ernst-Herbert Pfleiderer (the fourth generation) took over management as the last of the Pfleiderer family. The products portfolio grew from wooden and concrete products to insulation materials and plastic products. GAP made a number of acquisitions and by the end of the nineteen-nineties, the Group employed more than 10 thousand employees in forty locations. On July 15, 1997, shares in Pfleiderer AG were traded on the Frankfurt Stock Exchange for the first time. This brings us to 1999, when Pfleiderer acquired a majority stake in Zakłady Płyt Wiórowych S.A. in the town of Grajewo (the name was changed to Pfleiderer Grajewo in 2002). This Polish company was established in 1974 and since 1997 had been listed on the Warsaw Stock Exchange. The Group was growing continuously thanks to cash-consuming worldwide acquisitions and greenfield investments. In 2010 the global economic crisis had an effect on Pfleiderer. Due to a decrease in demand and the insolvency of Pfleiderer AG, a restructuring process took place: this action included selling the loss-making businesses in the USA and Canada and the flooring unit in Europe as well as activities in Russia. In order to save the business, the investment group Atlantik become the only investor in Pfleiderer as the company was delisted from the Frankfurt Stock Exchange in 2012. I started at Pfleiderer in 2004 and was responsible for Western Europe. In 2011/2012 I was responsible for the operational restructuring of the Group and later appointed as CEO of Pfleiderer in January 2013. With the support of Atlantik, we developed a plan that brought about the third big pivotal moment for the company – One Pfleiderer. As the restructuring process was going forward we concentrated the most attractive markets in Europe, German and Polish parts of our business. Pfleiderer GmbH was responsible for the DACH region and Western Europe. Pfleiderer Grajewo S.A., the entity in the best financial condition, become responsible for Eastern Europe. In 2015 we were ready to merge both companies, but we decided that the Polish entity would become the leading one. In January 2016 the whole Group, was listed on the Warsaw Stock Exchange as Pfleiderer Grajewo S.A. and is currently among the mWIG40 companies. Our latest achievements were appreciated by the Standard & Poor’s agency, which – at the end of January 2016 – announced that the creation of “One Pfleiderer” had positively impacted on the entity’s credit standing, and as such, granted a corporate credit rating of “B” to Pfleiderer Grajewo S.A. Simultaneously, the agency raised Pfleiderer GmbH’s long-term corporate credit rating from “B-“ to “B”.

Today, your activity is not limited to the Polish market. What markets are you already present in? Do you have plans for further expansion? I can use the metaphor that Pfleiderer is standing with one foot in Poland and the other in Germany. At the end of 2015, as a result of the integration, we decided to move our headquarters to Wrocław – a location that is almost equidistant from our production plants in Poland and Germany. We currently have nine factories across both countries from which we are able to sell our products to the whole of Europe. However, it is important to mention that the transport of particleboards is expensive and this is why the DACH countries and Poland are our key markets and we provide our products to furniture producers there. We are also developing more complex products and unique materials, for which there is a growing demand. This is why we are selling more and more products to countries like Italy, United Kingdom, France and Benelux. We are also continuously looking into the Ukrainian and Russian markets. However, due to the political situation, the weakening economic conditions in both countries and the lack of business stability, we are not planning any investment there in the near future. We will increase the production capacities of our existing plants and, thanks to innovations we will be able to deliver new products and materials. PM

You operate in a sector that, for obvious reasons, is closely monitored by green organizations. How do you take care of the environment? Wood is probably the closest and the most natural of materials for humans, as we were surrounded by wooden things for centuries. As a producer of wood-based materials, care for the environment is encoded in the DNA of our company. First of all, we are very careful and selective in terms of our wood purchases – it needs to be from a known source and often it is certified by FSC and PEFC. The Pfleiderer Group never uses wood from exhaustive cultivation or forest destruction. Consumers are becoming more and more aware; they are willing to spend additional money for environmental and green products and we are able to deliver it. We are also very thoughtful in terms of waste management. For some time our plants in Germany – and since the end of 2015, in Poland – have used recycled wood chips to power heating boilers. In our Grajewo’s factory, the gas boiler was replaced with a biomass installation that uses wood waste from production process. We use this heat in our the production process and, apart from some financial savings, we were able to eliminate the use of gas in this plant. I can say that in this way we contribute to reducing our share of fossil energy sources to a minimum. Another resource that is becoming more and more valuable is water. That is why some of the wastewater from the production process, for example, the water remaining after cleaning plant parts or washing and shredding chippings, is used directly elsewhere in the production process – for instance, as mixing water for glue. Any quantity of wastewater that remains is then treated and flows back into the production processes. After the wastewater has been vaporized, the distillate is fed back into the production process. The factory is therefore completely free from process wastewater. PM

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further improvement is limited, this is why we put effort into research and development. Our R&D department is located in Germany, however, we plan to open a second one in Poland. In addition, once a year we have a so-called “Innovation Day”, during which our employees can present their ideas for improvements or for a new product. So far, the best proposals are from line workers and foremen, as they are thinking about how to make their work easier every day. In 2016 we hope to open a new R&D center in Wieruszów and we believe that, thanks to support of young Polish scientists, innovation will become our competitive advantage in coming years. At the end of 2016 we will also be presenting our new portfolio of products. At this point I cannot reveal further details, but apart from new designs it will be full of innovations. But quality applies to all processes. Delivery on time is also important. You offer a very wide range of products and services – from the early stages of building construction to the finishing of residential and office spaces. Why have you decided to offer such a broad product application potential? We have three different groups of clients with different needs. First, and also the biggest, are furniture producers – we deliver a wide range of surfaced particleboards with beautiful decors in different colours and surfaces like highgloss. and other semi-finished products to them. This is a market with stable growth prospects, however, it is not so receptive to innovation. The second group is the project and construction industry for hotels, shops, hospitals etc., also large volumes, but much more demanding and open to new products. For example, the Pfleiderer Group is the supplier of wooden finishing for the world’s largest cruise liners. Our solutions have been used in all the cabins and public rooms of the “Harmony of the Seas”, which flies the Royal Caribbean flag and is the world’s largest vessel: capable of accommodating as many as 6,410 passengers. Also, the interior of eight cruise liners, belonging to the AIDA Cruises fleet, have been finished with Pfleiderer’s materials. The third group is architects and designers. They are ordering small amounts, however, we are sometimes fascinated at how they are using our products. It is a growing market and we are able to get higher margins on such products. Our German production plant in Leutkirch is able to deliver small volumes of more complex products and together with the new kitchen worktop production line in Wieruszów we are able to meet the expectations of the most demanding clients. Last but not least, our products are also appreciated by design experts. This year the “Rat für Formgebung” (the Design Council) has awarded the Pfleiderer Group with two German Design Awards – for ”Duropal-HPL XTreme” and the deep and expressive surface texture ”Meandra”. The latter one combines the lively, curved impression of wood with a silky, tangible touch. It has an expressive, varied look and a perceptibly deep, comfortable feel. In other words, ”Meandra” is as close to nature as no structure has ever been. • “We are delivering design to the market!” PM

“WE ARE DELIVERING DESIGN TO THE MARKET!”

We also care deeply about delivering our products to clients: most of our goods are transported by trucks. That is why, in 2013, our own transport company, Jura-Spedition, was one of the first businesses in Germany to change their whole truck fleet over to the new Euro 6 standard. JuraSpedition, therefore, now operates in an even more environmentally friendly way than before and uses the latest technologies to optimize the logistic process. You openly admit that your number-one goal is quality. But how can one improve a process in which one has had 30 years’ experience? Is there room for innovative solutions in this sector? There is more in it than one can imagine. During our restructuring process we were able to significantly improve the production process by reducing downtime, the consumption of materials, and energy. However, room for PM

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Infrastructure

2016 WILL BE BETTER THAN LAST YEAR

MAREK MICHAŁOWSKI, Chairman of the Supervisory Board, Budimex S.A., talks to Marcin Haber and explains the current situation in the infrastructure market, market trends and expectations regarding a new project of the Ministry of Infrastructure and Construction. Recently, a change of trends has been observed in the Polish construction market. Contractors increasingly execute projects in compliance with highly rigorous certificates. Investors often erect economical and environmentally friendly buildings. Is this due to the natural evolution of the market or maybe contractors have simply come to realise that this is the right direction? I think that this is attributable to the belief that one should build this way. It is slowly becoming obvious that environmentally friendly and energy-saving construction is the future. Currently, there are technologies available which, without radically increasing the costs, make it possible to build in compliance with restrictive certificates. This trend is visible and, in my opinion, correct. This is how buildings are constructed in the European Union and we too should move in this direction. PM

You say that this is no longer very expensive, but is it not still risky from the point of view of the contractor? I believe that this pays long-term. We have to understand that buildings are not erected for five or ten years, but usually for much longer. There is no doubt that an environmentallyfriendly and energy-efficient building will be much cheaper to operate and ultimately such an investment will pay off. PM

This trend is mostly observed in commercial construction. Can we also expect to see it in the housing sector? Yes, we can, but we have to be patient. As is usually the case with housing construction, a lot depends on the support offered by the State. If the recently announced governmental programme aimed at supporting housing takes into account these trends, then things will happen PM

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this way. The previous programme, including the “Home for the Young” scheme, is coming to an end and a new one is being prepared. I hope that it will take into account these aspects. Then, we can expect environment friendliness and energy efficiency to arrive in this sector on a larger scale.

Central Satistic Office (GUS) for the first quarter of 2016 show that despite a mild winter there was less activity there than in the rather mediocre 2015. In my opinion, we do not absorb the EU funds well enough. This is particularly visible in the railway network. I fear that there is a huge risk of losing some of the available funds.

Please explain the current dual voice heard in the construction market. On the one hand, we hear that things are improving, we are leaving the doldrums of the previous EU budget period. On the other hand, developers say that the good times are ending. What is the truth of the matter? Above all, I would distinguish between the housing and developers’ market and the rest of the construction sector. Both these markets operate to slightly different sets of rules. It is true that developers have had a good run recently. However, seeing the number of projects in the housing sector, some begin to worry that the demand barrier may be crossed and that some of the homes may not find buyers. We should go back to the government’s programme mentioned above and its capacity to boost the market. If it is effective, then these worries are slightly premature. However, if it does not resolve the basic problems such as the availability of home loans, particularly for young people who have just started working, or a high down payment, then these concerns may prove justified. This programme will be an important element of housing market stimulation. Thus, it is impossible to give an unequivocal answer to the question regarding the future of the developers’ sector. Many homes are under construction. However, will there be sufficient demand? As regards the remaining segment of the construction market, I think that the situation there is much weaker. The data released by the

But the railways are a priority for the European Union… It is clear that the railways are still completely unprepared for quick and effective absorption of these funds. When it comes to roads, the situation is slightly better. Tendering procedures are resolved faster, but I can still see a slowdown. However, we have to bear in mind that these tendering procedures are held mostly in the “design and build” system, so we will see their effects in the form of building works after the design work has been completed and the necessary permits obtained, that is in a year or a year and a half from now.

So, the statistics showing this year’s results of the sector will be slightly misleading? Yes, at least when it comes to infrastructure construction, in particular, road-building. Contrary to the appearances, a lot is happening, but these developments will not be reflected in statistics. As regards the railways, the situation is very bad. Things are not much better in industrial construction. Management has been changed at many companies partly owned by the State. As a result of this, we can clearly see a slowdown in the decision-making process and a verification of the previous strategies. Certainly, this affects the execution of many projects. Last year, many thought that 2016 would be better, but we can see that it will be yet another year of decline or at least stagnation in the construction market. • PM

Regions

GALERIA METROPOLIA

THE LAST STRAIGHT BEFORE THE OPENING Five months before the opening of the Galeria Metropolia being built at Gdańsk Wrzeszcz, the work load was transferred to inside the building. The façade, joinery, and roads are already almost done. The interior finishing work is underway including the assembly sites, balustrades, and flooring. In June, the first guests will be received be the Focus Hotel, built alongside one of projects pertaining to the metropolis.

he outside of the Galeria Metropolia building looks almost complete. To finalise the project only minor decorative elements of the façade and small architectural decorations including greenery around the investment are left. Work also is underway on the new SKM rail platform, which is adjacent to the building. The station Gdańsk Wrzeszcz, will be the only station on the tri-city SKM rail route, where cabin doors will open up on two sides. In the gallery on four levels, it is projected to provide a total of 150 companies and stands.

The previously signed agreements among the tenants for the Metropolis Gallery are the Alma deli chain, cosmetics chain Rossmann, and the multi-brand sports shop Sport Direct. The fashion offer will be enriched by debuting market brands from Gdańsk such as Piazza Di Moda, Tom&Paul, and brands known already by customers: Stokki, Textil Market, Puma, and the jewellery shop Apart. At the disposal to clientele will also be the electronics store Media Expert, and a wide range of service companies: the travel agency 24Holiday, Bliska pharmacy, hairdresser Excellent Q, Baltic Exchange, Zoo Delikatesy, or the

Świat Herbaty shop, and BEA handbags. On the food court, awaiting the customers, will be brands such as: Burger King, Pizza Hut, Subway, Smak na Tak, Grand Kebab, and the pizzeria Mąka i Kawa. In the service and entertainment department, dominating will be the 7-screening room cinema complex Helios and a gym with fitness area. Galeria Metropolia is an investment project by Przedsiębiorstwo Budowlane Górski (Building Company Górski) realised by the special-purpose company Centrum Hevelius. The commercial agent for Galeria Metropolia is Cushman & Wakefield and Re-Group. • 6/2016 polish market

Infrastructure

POLISH

CONSTRUCTION

MARKET

BARTŁOMIEJ SOSNA, Head Construction Analyst, PMR

fter an around 4% increase in 2015, in 2016 we expect the Polish construction market to speed up, but only slightly. In the residential market, a very good economic situation in 2015 was driven by a number of factors, notably including the Home for the Young scheme, which in September was expanded to include resale homes, low interest rates, a growing number of investors purchasing homes to rent, stable prices and concerns about raising the mandatory down-payment on home loans by an additional 5% as of January 2016. As for now, there are few arguments to suggest that the year 2016 will be a better year for the housing market than 2015. Notwithstanding that, demand for homes is unlikely to fall dramatically. Rather than that, it will peter out over the coming years, partly due to demographic reasons. Though the increased down-payment requirement and higher margins on mortgage loans are likely to drive down the number of home loans in 2016, the housing market situation will remain stable. The pace at which sales and developers’ investment activity slow will be largely driven by decisions regarding such matters as the bank tax, escrow accounts, Swiss franc-denominated loans, new housing support schemes and further policies regarding interest rates. As far as housing supply is concerned, it appears that it will stay constant with the previous year, given the number of housing starts. In non-residential construction, the signs are that the slump in building permits for new

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non-residential space seen in 2014 has been more than offset. After a 2.2% increase in the total non-residential space planned in H1 2015, Q1-Q3 data shows marked improvement in sentiment among non-residential investors, as evidenced by an increase of nearly 10% in this respect. The sector is largely driven by its two largest segments, i.e. industrial and warehouse buildings and buildings classified as “Other” (mostly non-residential farm buildings). Combined, these two segments represent more than two-thirds of the non-residential buildings planned. On the other hand, the retail and service construction segment has seen a steep decline. In road construction, the long-awaited acceleration of large-scale road projects finally came in Q4 2015. While road construction output rose by less than 2% in 2015 as a whole, the sector was posting a decline of almost 15% in the first three quarters of the year. The hefty improvement suggests that there was a significant increase in the number of road sections being worked on in the final quarter of the year. We expect the road construction segment to expand at a double-digit rate in 2016 – a high-case scenario suggests a 30% growth rate, which will, to a large extent, be the effect of a low comparison basis. Fastpaced growth in 2016 is also suggested by the cash-flow forecast stipulated in the National Road Construction Programme adopted by the previous government. On the other hand, a major correction is expected in the railway construction market in 2016. Last year the railway construction market

expanded by 12%, which translated into output of nearly PLN 7billion (EUR 1.8billion). However, construction activity will decline already in 2016 when most of the projects funded under the previous EU programming period will have been completed, while those which are to be financed from the new EU budget will not commence in earnest as yet. Our forecast for 2016 assumes that the railway construction market can see a decline of at least 25%. In power construction, despite the rampedup implementation of three major power engineering projects (new power generation units in Opole, Kozienice and Jaworzno), in 2015 the sector developed slower than anticipated, at a scant 2% year on year, following the growth years of 2012-2014. The result shows that for the upward trend to be maintained in the coming years it is necessary that new investments be made to make up for projects that near completion. As indicated by a study of the PMR Investments service, several high-profile power construction tenders have been released to the market at the beginning of 2016, but they generally concern the projects valued in the range of PLN 100million200million (EUR 24million-48million), which is not enough to exert a major influence on the growth of the market as a whole. Therefore, the greatest effect on how the market develops in the coming years will be made by projects at the Turów Power Plant (due to commence in the coming weeks) and projects at the Żerań CHP Plant in Warsaw and the Łagisza Power Plant in Będzin, which are currently in the tender phase. •

Our Guest

6/2016â&#x20AC;&#x201A; polish market

Infrastructure

ABOUT THE UNNECESSARY COSTS OF HOME BUILDING

KONRAD PŁOCHOCKI, General Director of the Polish Association of Developers (PZFD)

he property developers’ market in Poland is currently in a very good and stable condition. Behind us are the record breaking years of 2014-2015, and great results from the start of this year. Despite such optimistic information, it is impossible not to notice that homes could be more affordable in Poland and the housing deficit could be reduced. The construction industry could build more. The Housing Affordability Index compiled by the Polish Bank Association shows that at the end of 2015 access to home loans reached the highest level in recorded history. Moreover, according to data from the National Bank of Poland, the average citizen can currently afford to buy with an average salary around 0.8 sq.m. of residential space (the most in 10 years), which puts us in the European average. Theoretically, we have a reason to rejoice. In practice, the problem is a growing number of technical requirements for the construction of buildings. This causes an increase in construction costs. If we brought back the technical requirements for example from 10 years ago, I am convinced that home prices would drop and the affordability of housing could achieve a rate of 1 sq.m. for an average salary, putting us in the forefront in Europe! Polish technical requirements have become increasingly complicated. Our legal system has introduced the requirements from other, richer countries where those requirements were rather extravagant. The fire requirements issued for underground parking complexes, or the need to install 7 independent telecommunication cables to each home have become legendary. Excessively large elevators, additional insulation of walls between homes and heated

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stairways, or adjusting the height of the stairs, are just some examples of problems in this area. Technical conditions now require deep deregulation, so that the property development industry can provide cheaper homes. Simplification of the rules certainly would not mean giving up the construction of ultra- modern residential complexes, because there is market demand for such buildings. It would allow the rationalisation of cost-effective homes, which are popular, those which, are needed the most.

WHY ENERGY-EFFICIENT BUILDINGS ARE NOT POPULAR A lot is being written and spoken about energy-efficient building. As the Polish Association of Developers (PZFD), we have no doubt that the development of this sector continues to grow and this is a good direction. The government’s suport in this matter is necessary, since the rate of return on these types of projects, for investors, but above all for the customer, is still very low. Today, the government’s support is by far insufficient for the development of more of these types of projects. The largest current Government instrument supporting the construction of energy-efficient buildings is an aid programme implemented by the National Fund for Environmental Protection and Water Management. PZFD, already in the year 2012, had made many comments and objections when it came to the criteria of the programme. We noted that the list of requirements was not comprehensive enough and that the aid programme for the construction of housing complexes was insufficient, which resulted in the lack of an economic basis for

the construction of such buildings. To put it bluntly, to qualify for the programme you would have to spend money many times more than the aid programme actually provides. Today after two years in operation, the statistics unfortunately confirmed our prediction: during the 24 months of the programme in operation, only 146 projects received financial support across the country, while at this time close to 300,000 homes were built! If you want to kick-start this type of investment projects, it is necessary to increase the financial aid pool and to create a system of legal incentives, for instance the introduction of the 0% VAT for buildings that meet the higher than standard energy requirements. In the world you can also see a whole new trend: re-analysis of the economic viability of energy-efficient buildings. A lot of countries, on a wave of enthusiasm, have set new solutions and introduced more strict requirements for new buildings. Currently, after analysis, it turns out that some of these assumptions did not bring the intended effects. The easing of regulations has already occurred in the United Kingdom, and largescale research studies currently underway in Germany are showing overregulation. In Poland a few years ago, the assumption was accepted for the gradual lifting of requirements in energy efficiency for new buildings. The first stage came in January 2014. Another is awaiting us at the beginning of the year 2017, and the last at the beginning of 2021. Perhaps it is worth to re-examine whether all the buildings should meet these high expectations and whether it is worthwhile for their • residents.

Infrastructure

PROJECTS IN THE TRI-CITY AND WARSAW ARE THE DRIVING FORCE FOR POLNORD DARIUSZ KRAWCZYK, CEO of Polnord, in a conversation with Ewelina Janczylik-Foryś about the company’s strategy, housing investments, and a plan towards the downturn in the housing market You assumed the position of Chairman of the Board of Polnord on February 1, 2016. Is the new board targeting a new strategy? Will you continue the plan of your predecessors to reduce the company’s debt? Presented in March of this year, the strategy for the Polnord group for the period of 2016-2019 was created as a result of detailed analyses carried out by the board on the situation of the company, the group, and its surroundings. This strategy implies stepping up the implementation of projects by Polnord. Within four years we plan to lead a substantial increase in the scale of operations and the capitalisation of Polnord through the realization of the four pillars related to the strategy. We want to stabilize the profit margin in PM

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Infrastructure

the projects to at least 18%, focusing activities on selected prospective markets. We have revauated Polnord’s assets, including owned land, and we are focused on building upon our owned land bank, which is the largest among Polish companies. We want to use the bullish market and to start as many projects as possible in the current and the following year. This driving force, will propel Polnord and guarantee us with robust growth in subsequent years to come. In front of us are a lot of new investments. Debt reduction to around PLN 100 million in 2019 is one of the elements of our plan, but it is not the most important point. Is it true that the company mainly wants to build in Warsaw and Tri-City? Why did you make that decision? What about other cities like Łódź, Olsztyn, or Szczecin? In the strategy, we assumed that the bullish market situation will last for another two years. The projects currently being initiated will be put into use during those two years. I assume that during the market cooldown it will be beneficial to focus on large urban areas. In our case, presence in the Tri-City, specifically in our native city of Gdynia, and in Warsaw including Wilanów, is natural. We believe these markets to be the most absorbent and provide the best perspectives in regard to the highest amount of land ready for investment. Therefore, on those markets we will be focused durin the cooldown on the market. In Lodz, Olsztyn, or Szczecin we will finalize our current projects, but we do not anticipate the start of any new ones. PM

You assume that the years of 2018 and 2019 will no longer develop dynamically in the housing market. Where do these predictions come from? Do you have plans for the year 2019, in order to survive stagnation? The boom in the housing market cannot last forever. The current situation has been developing for the past few years, and I expect that it will last until the end of next year. In the long run, the macro-economic environment will force a cool down of the housing market. However, this does not mean that a deep drop in the market will be awaiting us, good projects will still find buyers. Within a year or two, government run programmes will start to work such as for example the “Family 500+,” which caters to our target group. Usually when a second child appears in a family, they often consider buying their own flat or to replace the present one for a bigger one. In the short term, this programme will certainly incite the sales of flats, because the money allocated to families by the Government will provide a source of additional income and will influence positively decisions regarding purchasing. The question though is how this will affect the budget in the long run. An agreement cannot be reached by market experts relating to this, on one hand, they see the market strengthening in the economy, and on the other hand, a serious burden on the national budget. We assume the conservative scenario, taking into account the negative effects of the implementation of the programme. We do not want to fall into the trap of too much optimism, but certainly, we keep our fingers crossed that a positive scenario will take place. We believe that, given the prevailing uncertainties PM

in the years to come, a more major presence is worth having in the biggest metropolitan areas. You operate differently than other developer companies. Should not you fear competition? Most developers are expanding their activities in new markets. I am not afraid of the competition. What is more, I believe that it is healthy and is an important factor in development. Polnord is concentrated on the set self-placed tasks. We do not intend to “race” on the number of units sold, it is more important for us to generate EBITDA at an appropriate level. The extension to further related areas is a natural direction of development. We are currently analysing a few locations for investment opportunities of apartment hotels. PM

Please tell us something more about your new investment. The new building estate being finalized by Polnord, Birch Corner in Wilanów, Warsaw, will be added to the implementation and sales. For 2016 we have planned the launch of 15 projects that we will gradually introduce for sale and for use by 2018. One of them is the Brzozowy Zakątek (Birch Corner), which enjoys great interest from our clients. In a four-floor building A2, which is planned for sale already on May 14, there are 124 apartments ranging from 33 to 109 sq. m, available in the Government’s MdM programme. The investment is located in the western part of Wilanów – originally, an innovative neighbourhood structure, combining residential functionality with that of retail and service units, and including offices in close vicinity of the reserve Slope of Ursynów. Residents will receive keys to the premises by the end of 2017. PM

Are apartments for rent increasingly popular? Is the Polnord Company interested in this sector of the housing market? We are working on such an offer. As I mentioned earlier, we are analysing the feasibility of investment at some locations for apartment hotels in the Tri-City where we have attractive land. However, the main area of activity is, and will continue to be the development of investment housing and apartment projects for sale built by Polnord. PM

What will happen if the fashion for apartments to rent will cause a decrease in demand of acquisitions in apartment properties? Polish society is traditionally tied to the idea of owning a flat, because it provides a sense of security. It is estimated that 80% of citizens live in their own flat or house. It is true that this attitude is slowly changing, but I do not think a flat for rent idea is a threat to sales in the primary housing market. Government ideas supporting this market are addressed to a different target group than the customer who purchases premises from the developer, and it is to provide support for people who cannot afford to buy a flat. You cannot therefore expect that the flats for rent will change the housing market dramatically. In contrast, investment buyers, buyers who purchase flats to rent them out later on, usually decide to purchase new flats and are • an important group of customers. PM

6/2016 polish market

Infrastructure

QUALITY IS BETWEEN THE PRICE OF THE CUSTOMER AND THE LOWEST PRICE ALEKSANDER KABZIŃSKI, President of the Polish Aggregate Producers’ Association The Polish Aggregate Producers’ Association has recently celebrated its 20th anniversary. At that time, following Poland’s transition to a new economic system, aggregate manufacturers considered their situation to be bad. They were left to their own devices and the demand for aggregate remained depressed. What is the situation now? How do you see the sector after 20 years of the functioning of the organisation? The formation of the Polish Aggregate Producers’ Association in 1993 was a response of the community to the catastrophic situation in the industry. Investment projects had come to a standstill and the demand for aggregate was minimal. The founders were mostly the directors of companies which prior to the transition belonged to the Road Quarries Union and the National Administration of Public Roads. Our first meetings were stimulated by the belief that together we would be able to survive the crisis in a better way. The joint activity of the management and workforce in our sector was particularly prominent in the process of ownership changes. The aggregate sector saw the largest number of continuously trading employee-owned companies which took over assets from the State and began to manage them in a period of minimal demand for aggregate followed by an upsurge in demand since 1997. Until 2000, we saw a systematic increase of the demand at a level of +5% a year. The year 2000 turned out to be a period of a clear decline, but the upward trend resumed the following year. After Poland’s accession to the European Union in 2004, the demand continued to grow by 10 and more per cent per year. While in 1992 the demand for aggregate was approximately 40 million tonnes, by 2011, after 20 years, it reached 350 million tonnes. Please show me another sector with an 8.5-fold growth in the PM

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period of 20 years after the transition. This is an extraordinary result if we take into account the fact that the production of aggregate does not in itself create the demand, but is a response to the needs of the economy. The year 2011, just before the 2012 European Football Championship, proved particularly challenging. Despite such a significant increase of the demand, 35% between 2011 and 2010, there was never any shortage of aggregate. There were temporary problems with certain types of aggregate and late deliveries, but they were not due to a lack of aggregate, but transport issues. How did the lowest price criterion in road building tendering procedures affect the current situation of the sector? How did it affect the price of semi-finished goods? The lowest price criterion continues to fuel shoddiness in Poland. Tenders offering 60-70% of the price of the contracting authority won the contracts. Since 2007, producers of aggregate, which accounts for 95% of the structural volume of roads and only 5% of their costs excluding transport, have been under constant pressure to reduce the price of this basic construction material. I mention the year 2007 because 2011 saw the largest production volume of aggregate, 2007 was the last year of its “fair price.” Can you get quality for the lowest price? I do not think so. From a certain point onwards, after other price-determining reserves have been exhausted, such a situation happens only at the expense of quality. As a road user I would like to know if it is possible to build roads with the required loadbearing capacity, durability, smoothness and roughness at the lowest price. I my opinion, this cannot be done. After all, investor prices were not plucked out of the air. For this reason, I believe that quality is between the price PM

of the customer and the lowest price. We are going to pay for the shoddiness resulting from the lowest prices sooner than we think and it will be more than the sham savings. Shoddiness usually pertains to the lowest structural layers of the road. Patching is not going to help. Such roads must simply be replaced. This is my experience from the first period of EU financing. Roads should be commissioned in the design, build and maintain system for example over 20-30 years. We should build roads using accessible materials which meet sufficient requirements and we will be satisfied with them also as their users. We should leave the construction process to engineers, not lawyers... Economic growth entails better infrastructure, meaning increased demand for building materials, including aggregate. What should the rate of economic growth be to stimulate the development of the sector? Are the latest figures mentioning 3% sufficient? Based on the analysis of the sector’s results in Poland and in the neighbouring countries, we estimate that a GDP growth of up to 3% does not cause a visible upsurge in the demand. I believe that it offers stabilisation. When it reaches 4% and above, every extra percentage point means double the demand for aggregate. I agree with these findings. I would like to point out that over 20 years we have reached average aggregate consumption in Poland of 6 tonnes per person per year. This matches the figures for countries of the “old” EU and countries with a stabilised economy. Certainly, there are countries, for example Finland, where consumption is as much as 12 tonnes, but in Spain, after the heyday fuelled by the EU subsidies, • the consumption fell to 2 tonnes in 2015. PM

International Relations

WE SPECIALISE IN: • paving work – pavements of natural stone, graniteand basalt setts, concrete slabs and setts; • trafﬁc engineering – trafﬁc system organisation design, road signs and markings; • green areas development – the development of greenery in parks and lawns; • playground construction – safety surfacing, playground equipment.

ZAKŁAD USŁUG BRUKARSKICH „ADROG” SP.J. ADAM DYBCIO, EUGENIA DYBCIO Registered ofﬁce: 00-388 Warsaw, ul. Dobra 6 m. 14 Business ofﬁce: 03-289 Warsaw, ul. Ostródzka 213 Tel. 0-22 510 70 60 Fax 0-22 510 70 70 biuro@adrog.com

4-5/2016 polish market

THE KEY TO SUCCESS IN REAL ESTATE IS MATCHING THE OFFERING TO THE CUSTOMER’S EXPECTATIONS

Science

ZBIGNIEW WOJCIECH OKOŃSKI, President of the Management Board, ROBYG SA talks to Polish Market

The net profit of ROBYG Group amounted in the first quarter of 2016 to around PLN 14 million. Do you have any information concerning the second quarter? At what level do you plan to finish the year 2016? ROBYG Group financial forecast for 2016 predicts achieving a consolidated operating profit of PLN 115 million, with 2800 residential units included in the total income account. In 2016 Group plans to have a contracted amount of around 2600 flats. Satisfactory results are expected in the upcoming quarters due to the strengthening of ROBYG Group on the property developers’ market, as a result of the growing number of units contracted. In the first quarter of 2016 it was the highest in the history of the company and amounted to 727 apartments. PM

Homes to rent are increasingly popular. Is ROBYG interested in this sector of the housing market? Will the popularity of homes for rent cause less interest in the acquisition of homes for owner occupancy? The observation of ROBYG Group shows that buying an apartment is for most clients a way to meet their own needs, including for instance the future housing security for their children. The trend of acquiring apartments for rent is not currently dominant, and ROBYG does not see an upward trend in this respect. In the face of the present market situation, Group does not expect demand for flats to diminish over the next few years, although the purchase of a real estate for rent is treated PM

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as a profitable investment. ROBYG does not exclude involvement in the construction of apartments for rent to entities dealing with their management. ROBYG has the experience and potential, which makes the company a good partner of such a venture. ROBYG Group is open to discussions on this issue. Currently, new housing estates are being built all the time. It is possible that in the near future supply will exceed demand? Do you fear such a situation? Prospects for the property developers market in the coming years are favourable in Poland because there is still a deficit of residential units. The demand for apartments is not decreasing also thanks to the persistent low interest rates, which make it easier for customers to acquire favourable financing conditions towards the purchase of real estate. For developers, it is also important that the purchase of a flat is treated by clients as a prospective investment. The key to success in the real estate development industry is matching the offering to the customer’s expectations. ROBYG Group focuses on providing housing for various development market segments, and locations with good transport links. As a result, the number of units contracted by ROBYG Group have been growing for several years. In the full year 2016, Group plans to sell 2600 flats. PM

Do you only bet on the Warsaw market or do you have other locations that have

caught your eye? What are your new investment projects in 2016? Currently ROBYG Group is focused on the markets of Warsaw and Gdańsk. The company consistently expands the land bank with attractive sites in these cities to be able to systematically carry out new investments, which will be met with – as large as before – clients’ interests. In 2016 alone, ROBYG Company purchased land in Warsaw with a total area of approximately 6.8 hectares for a total of more than PLN83 million. In 2015 and 2016, Group acquired land for more than PLN317 million. The land and flats in the offer of the company give the possibility to deliver onto the market a total of around 11 500 residential units. In 2016, the company plans to start the construction of the following housing estates in Warsaw: Green Mokotów Residence, Stacja Nowy Ursus, Młody Wilanów, Osiedle Kameralne and Villa Nobile investment. While in Gdańsk ROBYG Group will begin the successive stages of Lawendowe Wzgórza and Stacja Nowy Gdańsk, as well as settlements Mila Baltica, Słoneczna Morena, and the Morenova investment. The plans of the company foresee starting active business operations in Wrocław in 2017. ROBYG Group already has an investment plot in possession that will allow the construction of about 300 units. In order to effectively develop on the market in Wrocław, the company intends to expand the land bank in this city. •

Infrastructure

2nd CLUSTER WORLD CONGRESS Poland 3.0 – time to restore the navigability of Polish rivers Janusz Turakiewicz

lusters have become over the past several years one of the main engines of economic development in the world, combining the potential of enterprises, scientific-research centres, and the public sphere. Thanks to the synergy, they stimulate the economy of regions and industries. The most known example is Silicon Valley in the United States, which is the centre of new technologies. The Cluster World Congress is organised in Silesia, the most important Polish industrial region, which confirms the growing role of these structures in the economy. The theme of the 2nd Cluster World Congress held this year was “Triple Helix in the Implementation of International Projects. Building Local and the World’s Economy through Cross-Sectoral Cooperation.” The Congress was officially inaugurated on March 31, 2016 in the historic Guido Mine in Zabrze. The Gala was hosted by Mayor of Zabrze Małgorzata Mańka-Szulik. She presented the Manager of Innovation 2015 contest awards. The deliberations, which took place the next day in the Palace of Culture of Zagłębie in Dąbrowa Górnicza, brought together over 800 participants from the Czech Republic, Germany, Hungary, Lithuania, Poland, Russia, Slovakia and Ukraine, The Congress was centred on issues regarding transportation. The organisers focused special attention on two projects: the New Silk Road linking China with Europe, and the creation of a transnational logistics centre Gorzyczki-Vernovice. These projects are part of the “Poland 3.0 Programme” initiated by the Polish National Cluster Network and Polish National Cluster of Innovative Enterprises. It also includes the restoration of the navigability of Polish rivers, especially the Oder River, the construction of the Danube-Oder-Elbe connection, pinpointing itself in the Central European Transport Corridor and the construction of a broad-gauge tracks from Sławków to

the planned logistics centre in Gorzyczki. This centre would be the only place in Europe where the European Union railways are combined with the broad-gauge track network of the Far East, the A1 motorway and river ways. This would allow easy access through the highway to the cargo airport Pyrzowice – Katowice. As underlined by the Co-ordinator of Poland 3.0, Angelika Jarosławska, it is the largest logistics project in history accumulated in one place, which also has been referred to by the UN as the most attractive area in Europe. Certainly, other issues have been taken into consideration that involve the clusters. During the panel discussion, the topics raised included the sunken weapons problems in the Baltic Sea after both World Wars, chemical weapons and the ways to remove them, corporate social responsibility, public health, future energy, mining efficiency, ecoterrorism, drought and flooding, start-ups, environmental protection and a low-emissions economy, technological innovation, Polish-Ukrainian co-operation, sources of financing investment projects, and the internationalisation of clusters. Accompanying the congress was an exhibition, presenting the latest drones and navigational systems, investment offers of Silesian cities, and works of contemporary Polish artists. The weight of the issues and new information discussed during the congress, regarding the importance of further development of the specific region in Poland and Europe as a whole, is the fact that right after the congress on April 11, 2016 the Minister of Maritime Economy and Inland Navigation Marek Gróbarczyk introduced a new investment programme. The new investment programme is designed to bring the Oder River Waterway (E-30) up to European standards as fast as possible. He also concluded that it was a priority for the Polish Government. • 6/2016 polish market

Infrastructure

FUTURE MEANS LOW EMISSIONS

he bi-annual (TRA) Transport Research Arena is among the most important international events connected with the development of transport. This year’s edition was organised in Warsaw on April 18-21 at the PGE Narodowy Stadium.

Mateusz Morawiecki, Deputy Prime Minister and Minister of Economic Development The entire undertaking is the initiative of the European Commission, Conference of European Directors of Roads (CEDR) and the European technology platforms: European Road Transport Research Advisory Council (ERTRAC), European Rail Research Advisory Council (ERRAC) and WATERBORNE Water Transport Technology Platform. The aim of TRA is to present the most advanced research work and innovations, the latest technological and industrial achievements and implementation of innovative ideas in the field of transport in Europe and world-wide. The Ministry of Infrastructure and Construction and the Road and Bridge Research Institute were the co-organisers of TRA 2016 held under the leading theme: “Innovative Solutions for Tomorrow’s Mobility.” The opening ceremony and the inaugural session was attended by: Mateusz Morawiecki, Deputy Prime Minister and Minister of Economic Development, Kazimierz Smoliński,

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Deputy Minister of Infrastructure and Construction, Violeta Bulc, EU Commissioner for Transport, Greg Nadeau, Administrator for the Federal Highway Administration (FHWA), Professor Jerzy Buzek, Member of the European Parliament, Jean-Luc di Paola-Galloni, Co-Chairman of TRA2016 member organisation ERTRAC (the European Road Transport Research Advisory Council) and Valeo Group Corporate Vice-President, and Professor Leszek Rafalski, Director of the Road and Bridge Research Institute. One of the main topics of the conference was automation in transport. Automation is one of the main factors significantly improving the quality and safety of transport. The other sessions focused on transport models, bicycle transport, railway infrastructure, logistics and sea transport. A clear novelty was the attempt to determine why women show little interest in working in transport. This issue was debated during the “Working in Transport – Where Are the Women?” workshop. The participants argued for combating stereotypes regarding employment of women in occupations considered typically masculine, suggested wider use of remote work and better chances of promotion of women in the transport sector. Other important topics were the reduction of CO2 emissions, fuel security and prospects of safeguarding it in the future. These topics are closely connected with limiting the harmful effect of transport and infrastructure on the environment. During one of the strategy sessions, an attempt was made to diagnose the problem and methods of its long-term reduction were presented. Electric transport systems may be a way of improving air quality in towns and cities. The Conference participants agreed that research and innovation in transport and their practical application play a crucial role in the pursuit of the objectives of the European policy, in increasing the effectiveness of the European transport system, increasing the competitiveness of their economies and resolving social problems. During the conference the scientists mapped out the most important directions of activities: automation, safety, reduction of harmful emissions into the atmosphere, digitisation, logistical issues, creation of data

Professor Leszek Rafalski, Director of the Road and Bridge Research Institute

bases of goods and services movements. There was no agreement regarding sharing these data bases and making them public. Those who considered security issues to be of paramount importance were against it. Summarising, what will the transport of the future be like? Above all, it will be a low-emission transport. During the conference and at an accompanying exhibition, numerous urban transport and passenger car solutions based on vehicles powered by electric engines were presented. There was also a proposal to create a ferry powered by electricity. Hydrogen-powered cars also made an appearance. Transport is a key pillar of European competitiveness and it creates a lot of jobs. Nobody denies the need for research dedicated to this area. However, the issue of financing such research remains open. The Transport Research Arena 2016 was attended by approximately 2,400 people from 62 countries. There were 4 plenary sessions, 8 strategy sessions and 34 technical sessions. The next TRA will be held in Vienna in 2018 under the theme: “A Digital Era for Transport – New Solutions for Society, Economy and Environment.” •

ITS

Infrastructure

IS THE FUTURE OF POLISH ROADS MAREK CYWIŃSKI, President of the Board, Kapsch Telematic Services, talks to Polish Market. Your principal business is Intelligent Transport Systems (ITS). They allow for a faster, safer and more environmentally friendly approach to transport. What is your vision of ITS development? What are your goals? Intelligent Transport Systems are going to develop rapidly in the near future. This is what our international experience tells us. We are currently implementing a number of highly advanced projects or their pilot stages entailing, among others, communication between roadside infrastructure and vehicles (V2I), as well as communication between vehicles (V2V). In the latter case, the platooning project is very interesting. It is based on a column of vehicles where only the front one has a driver and the rest follow automatically. PM

The systems marketed by you, for example viaTOLL, have been functioning in Poland for years. What can you say about the development of this sector in our country? viaTOLL is an electronic toll collection system. As regards its development, I can only say that it has been developing organically. This means that on the one hand it increases its reach by adding new road sections, and on the other hand our Employer and us, as the operator, introduce solutions aimed at facilitating its use. For example, last year we launched a mobile account management application, a balance-checking service via SMS and the so-called e-note. I would like to remind you that the system also supports drivers of light vehicles through the viaAUTO devices and service. In this context, our co-operation with the city of Gliwice is very interesting. We have signed an agreement with the municipal authorities under which 10,000 devices are to be distributed among the local residents which may be used as an automatic “remote control” to operate gates on the Gliwice Ring Road Motorway. This section is toll-free for the local traffic and until now users had to collect the so-called “zero ticket.” Thanks to our co-operation, they can now open the gates electronically, reduce travel time, save fuel and contribute to reducing traffic jams at the toll gates. PM

How would you rate your co-operation with the State administration? Do the authorities understand that it is necessary to develop ITS? I can certainly say that we can see much more understanding of the importance of traffic management among the local authorities. They know perfectly well how these intelligent systems can reduce traffic jams in their metropolitan areas, support the pro-environmental policy and, last but not least, can generate additional savings. ITS is also a tool that may be used to improve the comfort of living for the residents. The introduction of the Limited Traffic Zones in Italian cities has freed the city centres of the most harmful, old cars, giving these areas back to the locals and tourists. Air pollution figures are also important in this respect, because thanks to such solutions, they have improved by 10-20%. Alas, in Poland we are facing one particular problem: our law does not allow for introducing congestion charges, which the local governments have been requesting for a long time. PM

What can we expect from you in the near future? What are your latest projects? We hope to launch further projects involving the management of access to the urban zones. We are proud of our pilot programme implemented together with the Warsaw University of Technology and the Municipal Roads Authority (ZDM). Under this scheme a system of cameras (ANPR) has been installed in a section of Nowy Świat Street in Warsaw, between Świętokrzyska Street and Smolna Street. This equipment automatically recognises number plates of the passing vehicles. Why have the cameras been installed there? This section has limited access and is open to a selected group of vehicles. A register of these cars is kept by the ZDM, but until now the city had no tools allowing it to determine the scale of violations of the “no entry” rule. We know that talks are being continued on extending this solution to include enforce• ment. PM

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Infrastructure

WE ARE READY FOR ACTION

ANDRZEJ ŻURKOWSKI, Ph.D., Director of the Railway Research Institute, talks to Ewelina Janczylik-Foryś. The Railway Research Institute was established 65 years ago. Its core activity includes research and scientific work and its implementation. However, this is not all. The Institute was founded in 1951 and in November we will celebrate its 65th anniversary. 2016 is rife with anniversaries because we are also celebrating 20 years of the Test Track Centre near Żmigród. The work carried out by the Institute includes innovation and technology development, technical, technological and organisational issues connected with rail transport, including railways. In legal terms the Institute initiates and conducts scientific research and R&D work and deals with practical implementation of the results of research and development. As regards the test track, it is a facility to test elements of the infrastructure and rolling stock under real conditions, but outside the actual traffic in the rail network. There are PM

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only eight such test tracks in the world. On the occasion of the anniversary, we are preparing a conference to be attended by speakers representing all of the centres. The topics will cover detailed research projects carried out at the individual test centres. How is the Institute financed? Commercialisation or scientific research and cooperation between science and business is mentioned with increased frequency, also in the context of innovation. Does the Institute have such experiences as well? The rules of financing science in Poland have changed considerably in recent years. This also applies to the Railway Research Institute which until the year 2000 formed a part of the Polish State Railways Company (PKP) and was financed from the budget of this enterprise. Following the restructuring and commercialisation of the company, the Institute was detached from its structures and PM

subordinated to the minister responsible for transport, which is currently the Ministry of Infrastructure and Construction. The financing of the Institute is complex. We received category A as a result of the evaluation three years ago. Thanks to this, we get a subsidy from the Ministry of Science and Higher Education which accounts for approximately 9% of our revenues. The remaining 91% of revenues is generated by our own activity, projects financed by the National Centre for Research and Development and the EU projects implemented together with foreign partners. Income from certification of systems and equipment forms a significant part of our budget. As a notified unit the Railway Research Institute is a prime partner of the Rail Transport Office which authorises the operation of rolling stock and elements of the infrastructure on the basis of our certificates. The maintenance of the Institute is very expensive, in particular in view of our modern

Infrastructure research instrumentation which we develop all the time. This also applies to the test track in Żmigród which must be kept in a perfect technical condition. As regards innovation, I believe that the industry, and not the Institutes, should be innovative since the latter are partners of the industry in this area. We currently observe an increased interest among companies in co-operation and implementation of new technologies. A good example here is the Rail Surfaces Plant in Bieżanów. We have jointly designed a self-unloading vehicle for transporting switches. Can you give other specific examples of the practical application of your research findings? We are currently working on many projects. The most important involve traffic control at railway stations and lines where we are a partner in the implementation of the European Train Control System (ETCS), as well as modern signals at railway crossings. We researched new generations of passenger vehicles delivered to the railways in the recent period. From the beginning we acted as a partner in the creation of a modern rail system in the Tricity of Gdańsk, Gdynia and Sopot – the Pomeranian Metropolitan Railway. We developed PM

an important project aimed at protecting the contact line system against theft. We are a partner of Warsaw Commuter Railway in the implementation of a 3 kV contact line power supply system. In the 2014-2020 EU budget period, Poland is going to spend approximately EUR 27 billion on the “Infrastructure and Environment” programme. A lion’s share of these funds will be invested in road and rail projects in the coming years. Investment outlays on railway infrastructure itself amount to PLN 67.5 billion. While experts have no worries regarding roads, they are filled with trepidation when it comes to the railways and the ability to utilise these funds in full. I am more optimistic than these experts. Although the “investment offensive” announced in mid-2015 has so far failed to materialise, the “National Railway Programme” is currently being amended by PKP Polskie Linie Kolejowe S.A. (PLK) and the Ministry of Infrastructure and Construction to ensure the best possible utilisation of these funds. Calculations show that companies modernising and building railway infrastructure are capable of performing work worth approximately PLN 8 billion per year. From the point PM

of view of PLK, projects matching this amount are feasible, bearing in mind the need to maintain the necessary throughput of the railway network to accommodate rail traffic. Another problem is the generation gap. I consider the liquidation of railway technical secondary schools a particular loss since they used to supply qualified personnel for the railways. The demand for technicians and engineers is growing and there is a shortage of specialists. This problem is currently faced by companies in the railway sector and beyond. Hence, apart from optimism, I can also see certain threats. Is High Speed Rail a significant challenge to the railway sector? The High Speed Railways are undoubtedly a symbol of modernity and allow rail companies to maintain an appropriate share in the passenger transport market. Financially, it is within our reach because the costs of building 1 km of motorway and 1 km of High Speed Line are comparable. As the scientific and academic community, together with universities of technology, we are capable of taking up this challenge. Such progress would facilitate the attainment of the goals of the new model of economic development of our country by creating what is called the Railway Valley. • PM

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International Relations Laureates of the 26th edition of the Teraz Polska Competition •

FOOD PRODUCTS

Bell Polska Sp. z o.o. Okręgowa Spółdzielnia Mleczarska w Kole Sokołów S.A. •

TERAZ POLSKA, OR PRIDE AND OBLIGATION!

FOOD PRODUCTS – LOCAL AND TRADITIONAL

Wyrób Wędlin Tradycyjnych Wolarek Sp. Jawna •

ELECTROTECHNOLOGY

Przetwórstwo Tworzyw Sztucznych Waś Józef i Leszek Waś Sp. Jawna •

CHEMICAL INDUSTRY PRODUCTS

Smart Nanotechnologies Sp. z o.o. •

FARMING DEVICES AND MACHINERY

BIN Sp. z o.o. Ursus S.A. Produkty Techniki Sanitarnej i Grzewczej KAN Sp. z o.o. •

AVIATION

Wytwórnia Sprzętu Komunikacyjnego

Maciej Proliński

“

The Teraz Polska Competition began twentyfive years ago. Its objective has been to select the best Polish products, services, innovative projects, and local governments of the highest quality which are a source of pride and demonstrate what Poles can do. Today, I can say with joy that this promotional project has fulfilled its tasks. We look with satisfaction as Poles deliberately select Polish products and how important our consumer patriotism has become,” stressed Krzysztof Przybył, President of the Polish Promotional Emblem Foundation. He added that this year’s edition of the competition was among the most interesting ones in terms of the diversity of the products and services. This year, the Competition Chapter awarded the Teraz Polska Emblem to 15 products, 8 services, 2 innovative projects and 3 communes. Professor Michał Kleiber, Chairman of the Competition Chapter, said that the awards had gone not only to businesses offering excellent products and services, but also to outstanding Poles promoting our country and to communes which are very well managed and are our showpieces. Prof. Kleiber stated: “Over the last 26 years, we have presented a total of 660 awards and distinctions. The Teraz Polska Emblem is not just a reason for the winners to be proud, but also an obligation to speak about our country well and show the good things that happen here.” Jarosław Gowin, Minister of Science and Higher Education, observed: “Every nation, every State that wants to build a strong economy must be based on the idea of economic patriotism, must build its own national capital which does not always have to mean a capital belonging to the State. Today, the idea of economic patriotism seems natural. This has become the case mainly owing to the Polish Promotional Emblem Foundation. I want to thank the Foundation and

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PZL Świdnik S.A. •

congratulate them on their quarter of a century! Congratulating the Foundation, I want to thank the true heroes of these 27 years of a free and democratic Poland, Polish entrepreneurs. Without their perseverance, invention and competence we would not have achieved all that now gives us the right to be truly proud of.” There is still a great need to promote the activities of outstanding personalities who, through their achievements and commitment, contribute to propagating and reinforcing a positive image of Poland and Poles in the world and are ambassadors for Brand Poland. The Outstanding Pole titles have been awarded for the seventh time to those who, through their work and numerous successes, promote the image of Poland and Poles in the world. This year, the recipients were: Dr Irena Eris, businesswoman, co-owner of Laboratorium Kosmetyczne Dr Irena Eris, icon of female entrepreneurship, Elżbieta Wysoczańska, creator of the award-winning innovative French Visoanska care products, Prof. Krzysztof Matyjaszewski, outstanding scientist, leading chemist, listed among the most serious candidates to the Nobel Prize. For the fifth time, the Competition Chapter also awarded Honorary Distinctions to unique events and initiatives promoting Poland. The Honorary Emblems went to: Stowarzyszenie Wiosna (Spring Association) for organising the Noble Parcel programme (a nation-wide project assisting families in need; two weeks before Christmas, the families in need are given parcels meeting their individual needs thanks to the work of volunteers and donors), The Warsaw Rising Museum, The Polish Volleyball Federation for organising the World League. The event finished with a concert of a popular singer Zbigniew Wodecki and the Mitch&Mitch band. •

MOTOR INDUSTRY PRODUCTS

F.H.U. Palacar Michał Pala •

PUBLISHERS

Agencja Wydawnicza Technopol Sp. z o.o. •

OTHER PRODUCTS

Fructoplant Sp. z o.o. KB Folie Polska Sp. z o.o. Rejs Sp. z o.o. •

COMMERCIAL SERVICES

ASM - Centrum Badań i Analiz Rynku Sp. z o.o. Legia Warszawa S.A. •

CONSTRUCTION SERVICES

Przedsiębiorstwo Budownictwa Przemysłowego Chemobudowa -Kraków S.A •

FREIGHT FORWARDING

ATC Cargo S.A. •

TOURISM

Biuro Podróży Szarpie Travel Sp. z o.o. Sp. k. Interferie S.A. •

MEDICAL SERVICES

Centrum Słuchu i Mowy Sp. z o.o. Medincus •

Other SERVICES

TOYA Sp. z o.o. Innovation AssisTech Sp. z o.o. Kolejowe Zakłady Nawierzchniowe Bieżanów Sp. z o.o. RURAL COMMUNES Ożarowice URBAN COMMUNES Zabrze RURAL AND URBAN COMMUNES Międzyzdroje •

HONORARY MENTION

Przywidz

THE FUTURE IS IN THE HANDS OF

TELEMEDICINE

ASS. PROF. PIOTR H. SKARŻYŃSKI MD, PHD, MSC, Director for Science and Development, Member of the Board of Centrum Słuchu i Mowy Sp. z o.o., talks to “Polish Market” about modern solution and the practical application of telemedicine.

Director, you have received an award in the Teraz Polska competition in the services category for the diagnostics, treatment and rehabilitation of hearing, speech and balance disorders with the use of modern telemedicine solutions. The distinction proves that the company’s development goes hand in hand with the delivery of top quality services and confidence from the patients. This is of key importance in our difficult medical sector because the patient always plays the central role. I am very happy that the Teraz Polska Award Committee has noticed the solutions offered by telemedicine. Given a shortage of means for healthcare and the mounting needs, it is much better if effective patient care can be taken over by smaller medical centres located closer to the patient’s place of residence. It should be stressed that the centres should meet all the strict personnel and infrastructure requirements that apply to large clinics and hospitals. We have developed this kind of solutions for many years so as to ensure that patients have access to medical care as close to their home as possible. Our centres have formed the basis for establishing the world’s first National Telemedicine Network, in which telemedicine facilities work at least four or five days a week. PM

What, then, is telemedicine? A text-book answer is that telemedicine means providing human healthcare services with the aid of remote tools. In practice, we supervise patients or diagnose, treat and rehabilitate them by means of the Internet. Technology and the Internet enable us to reach patients from rural areas and areas located very far from medical centres. PM

What kind of medical procedures are performed with the use of telemedicine? Telemedicine develops in many directions. The first dedicated procedures, developed by the Agency for Health Technology Assessment and the Ministry of Health, have recently appeared PM

Ass. Prof. Piotr H. Skarżyński MD, PhD, MSc, Director for Science and Development, Member of the Board of Centrum Słuchu i Mowy Sp. z o.o. receives Teraz Polska Award

in cardiology and geriatrics. In otolaryngology, telemedicine can be used to check the patient’s hearing and ears, decide what other diagnostic tests should be done and, if necessary, refer the patient immediately for hospital treatment. Another sphere where telemedicine is used is rehabilitation. Its progress can be observed remotely by, for example, assessing the development of the patient’s speech. Several thousand people in Poland have an opportunity to benefit from telefitting, which means they can have the speech processor of their hearing implant fitted remotely. But patients also benefit from intervention visits in the case of sudden problems with their hearing aid or implant. When and why is it worth using telemedicine services? The services are especially useful in the case of young children and the elderly and in every situation when the need to travel a long distance to have more tests or to see a doctor may be a problem. Creating a friendly atmosphere in the place where the tests are done is of key importance for the test results to be reliable. The child’s anxiety, insufficient concentration or hyperactivity may disturb the test in many ways. It is recommended that some hearing tests should be done while the patient is asleep. Problems with performing such tests are widespread in the case of infants and young children tired after a long journey to a medical centre located far from their home. Additionally, the travel costs and loss of income because of the carer’s absence from work are the main reasons why some people give up further diagnostic tests and treatment. In the case of some rehabilitation processes, weekly sessions with a speech therapist or psychologist are recommended after the hearing implant is inserted in the patient. For many patients this is absolutely not feasible. And this is exactly why the patients have been offered the opportunity to use telerehabilitation and • telefitting services. PM

PIOTR H. SKARŻYŃSKI, MD, with a post-doctoral degree in medicine and master’s degree in management, coordinates and manages diverse telemedicine procedures as part of the activity of Centrum Słuchu i Mowy Sp. z o.o. He cooperates with 10 centres in Poland and abroad (Ukraine, Belarus and Kirgizstan). He is a member of the Board of the International Society of Telemedicine and eHealth (ISfTeH) and Junior European Rhinology Society, representative for Europe of the International Society of Audiology and a member of the committee of the European Academy of Otology and Neurotology.

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WE HAVE USED THE FACT THAT THE URSUS BRAND IS WELL-LIKED KAROL ZARAJCZYK, President of the Board of Ursus S.A., talks to Marcin Haber about the tradition related to the brand, the company’s development and international expansion plans.

Until recently, Ursus used to be associated with the Polish countryside and tractors. Today, based on this tradition, you are building a dynamic business, looking with hope to foreign markets. Please tell us how you managed to move from tradition to a modern business model? Ursus is a brand with over 120 years of tradition, which for obvious reasons is mainly associated with tractors. Before World War II, apart from tractors we also manufactured motorcycles, buses, military vehicles, tanks, tankettes, pumps and internal combustion engines. Over those 120 years the range produced by Ursus was very wide. I think this is a good brand that has a huge recognition not

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Photo: Paweł Raźniewski

only in our country but also abroad. Ursus’s reputation can be translated into many areas, mostly automotive-related. We believe that the Ursus brand is a perfect match for tractors and buses, trolleybuses and other vehicles. For example, we are currently working on a vehicle for the Polish armed forces. We do not rule out future activities related to the brand. It is so interesting that it can diversify, for example towards the production of clothing, mainly for small children who love tractors. The sales of gadgets related to our products are steadily expanding. Ursus is in fact a company that has its fans. This is mainly due to positive feelings and the long presence of our products on some farms. Often three or four generations in the family grew up in the presence of the same Ursus tractor. This is the magic of the brand. Certainly, we must be very careful with brand-related activities but in our opinion, we can be a very strong and versatile automotive brand. But is such a strong brand not a trap? Do you not fear that someday you may rest on your laurels? It seems to me that every company needs to diversify its activities. This is how the global economy looks today. You have to follow and adapt to global trends. One day agricultural machinery sells well, another time public transport or equipment associated with the military does so. The automotive sector has so far been a very closed market controlled by a few large corporations worldwide. They took pains to ensure that the entry barrier into this market was high for smaller companies. The widespread use of electricity and batteries made a significant impact on the change in the automotive industry. Until that moment, by far the greatest entry barrier into this market was meeting the emissions standards. The widespread availability of electric motors resulted in facilitating the introduction of cars under their own brand. Since we do not rule out further diversification of our line, we carefully observe the automotive market. It does not necessarily have to be a Ursus car. In Poland we have many excellent makes which are slightly forgotten now, such as Syrena, Polonez, Nysa, Żuk… PM

…but new designs keep appearing, for instance Syrena, Polonez or Warszawa… Yes, but all these designs are based on internal combustion engines. Fortunately, this is not the essence of the activities of Ursus. Today, it is about building tractors, that is the reconstruction of what Ursus does best. PM

The second direction is clean public transport, and the third, which we consider a matter of the future, the production of biomass. Polish energy sector is based on coal. Recent regulations regarding restrictions pertaining to renewable energy obtained from wind farms, indicate that the only true way will be biomass co-combustion. We hope that the newly constructed biomass power plants will create a market, where our subsidiary, Bioenergia Invest, can operate with success. Let’s return to your core activity – making tractors. Today, they look differently from the Ursus you mentioned which used to work on farms for 30-40 years. They contain much more technology. Are there indications that contemporary farmers require more, or is it your natural initiative connected with development? In recently years technology and exhaust gas emissions standards have been raised. In Poland, subsidies towards agricultural machinery were launched in 2004. Farmers became fascinated with all these novelties and thanks to the subsidies they were able to buy the best and technologically most advanced tractors. Bearing in mind that the average farm in Poland is 8-10ha, buying more powerful machines filled with electronics was unnecessary. At that time tractors were attractively priced. However, buyers failed to factor in the costs of their servicing and spare parts. We can see that since the 2008 crisis there has been a move away from complex technologies towards simpler designs. Buyers started paying attention to the price and the availability of spare parts and the costs of post-sale support. We anticipated this trend very well. We launched products fitting the existing market conditions. If we take a look at the tractors registration records in Poland over the last three years it turns out that over 80% are in the 60 - 110 horse power range. These are the simplest mechanical tractors with a simple cabin. We have also exploited the fact that our brand is well-liked. We have created a new series of tractors – the “C Series” harks back to the C-330 and C-360 series. There are still some 700,000 of them to be found in the fields. It is estimated that there are currently 1.5 million tractors in Poland, so every one in two tractors is an Ursus. Our actions led to global rivals introducing simpler models of inferior quality assembled in China or Turkey and offering them under their own brands because this was what the market required. Polish farmers quickly realised that over-investing made no sense and the highest quality at a good price really pays. PM

You are talking of the Polish market, but you are already present much further afield, in Africa and in the Middle East. Which directions are of the greatest interest to you? We are now firmly focused on Africa. Macro-economic analyses of foreign markets where we could make our presence always listed African countries at the top. This is due to the dynamic increase of the GDP, rapid population growth and very low level of agriculture mechanisation. We realised that we were standing at the threshold of a huge revolution in Africa, similar to the one which began in Poland in the 1950s and lasted three decades. With the help of the government we managed to obtain financing for sales of our products in Ethiopia and Tanzania. We have been active in these markets since 2012. In Ethiopia we delivered goods worth USD 120.7 million and our current contract in Tanzania is valued at USD 55 million. We will take part in a mission to Kenya. During the European Economic Congress in Katowice we held a highly promising meeting with Kenya’s Minister of Development. Our sales model is attractive to the African markets because apart from the main product we also offer a whole package including technology transfer, construction of assembly plants and personnel training. Our business partners feel that they not only develop their agriculture, but also build added value in the form of know-how transfer or training. They see huge benefits of co-operating with us. Hence such interest at the government level. Apart from Africa we also monitor the post-Soviet States. For instance, Kazakhstan seems to be very interesting. It is a specific market governed by its own rules, but interesting nonetheless. Iran is an important market where we plan to invest. It can not only give us considerable profits, but may also be a beachhead for launching expansion in other demanding markets. I mean here the seven countries bordering on Iran, including Afghanistan and Pakistan. They offer good prospects, but are also challenging when it comes to direct expansion. PM

You have recently received the Teraz Polska Emblem in the product category. Please tell us what exactly has been noticed? The Teraz Polska Emblem has always been my dream. I have been watching this competition for 26 years and I admire all its winners. I dreamed of receiving this award as a manager. The Chapter noticed us during the 26th edition. The award went to our C-380 model which is the most often purchased tractor in Poland. • PM

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ZABRZE WITH THE TERAZ POLSKA EMBLEM The Town of Zabrze is among the winners of the 26th edition of the Teraz Polska Competition. The emblem awarded by the Award Chapter confirms that the municipality is among the best in Poland in terms of economic management and attractiveness for residents and businesses alike.

very year the contest selects the best products, services, innovation projects and communes. In this year’s 26th edition the Chapter awarded the Teraz Polska emblem to fifteen products, eight services, two innovations and

three communes. In the local governments category the winners, apart from Zabrze, included Ożarowice and Międzyzdroje. Michał Lipiński, Director of the Teraz Polska Competition, stressed that the award was rather exclusive, with only three communes

receiving it this year. “This way, we reward only the best,” explained Lipiński. “This year’s winners are a confirmation that proper management and adoption of an appropriate development strategy results in the creation of good conditions for the development of ADVERTISEMENT

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entrepreneurship and improves the quality of life of the local community. Local authorities vying for the Teraz Polska emblem undergo a multi-stage verification process. They are assessed from the point of view of all the tasks which communes are supposed to perform. Analysis covers their investment policy, access to technical infrastructure and ways of implementating of their social policy. It can be said that since the selection in May 2007 of the first communes – recipients of the Teraz Polska emblem, it has become evidence confirming modernity and advantages of specific local governments and also an original tool building the brand and prestige of communes. The award promotes communes, stressing their universal attractiveness. The Teraz Polska emblem is a magnet attracting new investment projects and inhabitants. The official presentation of the awards took place on May 30 during the Teraz Polska Gala held at Narodowy Theatre in Warsaw. Małgorzata Mańka Szulik, Mayor of Zabrze: “I am glad that once again people have noticed how Zabrze has changed and continues to do so in all walks of life.

I have always believed that Zabrze has a huge potential created by medicine, culture, science, sports and the economy. In recent years we have acquired over PLN 700 million from external sources to finance projects increasing the quality of life in the town and boosting its attractiveness for residents and entrepreneurs. These funds are earmarked for investments, pro-environmental measures and social coherence programmes which together create friendly conditions for the local residents, investors and tourists. In 2015, we completed one of the largest modernisation projects in Poland involving the water and waste water system, costing in excess of PLN 1 billion. This also resulted in the construction or replacement of some 700,000 m² of roads and pavements. We allocated more than PLN 50 million towards the infrastructure at the Special Economic Zone to support the local economy. These measures result in the creation of new jobs by investors such as “Kłos” Bakery, Metal Solution, Schoeller Allibert, Bud-Expert and Metal Service Centre. Thanks to thermal improvements to of public buildings, including schools and kindergartens, we make tangible savings

and improve the image of our town. We are expanding the municipal hospital and have established Kardio-Med.-Silesia, an important medical technologies transfer centre. A new building housing the Silesian Heart Diseases Centre has been erected. We have returned to the local residents 180 hectares of reclaimed urban space around Bytomka to be used for recreation and environmental education purposes. We are currently working on unblocking the Main Key Adit to allow tourists to travel in boats through underground canals used for transporting coal in the past. We are also rebuilding the municipal stadium for sport fans. I think that the Chapter of the Teraz Polska emblem has also recognised that postindustrial tourism facilities are one of the symbols of Zabrze. This is an example of urban renewal for tourist purposes. In 2015, we commissioned the ground level part of the Queen Luiza Adit and the St Barbara’s Level in Guido mine. This year, we have opened Level 355 in the same pit and are preparing the opening of a new tourist attraction: Park 12C at the Queen Luiza Adit, planned for June 20, 2016.” •

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Events

INNOVATIVE MANUFACTURING FORUM On 13-14 April 2016, the Innovative Manufacturing Forum was held at the Westin Hotel in Warsaw . This event allowed an in-depth debate with representative groups of board members from key companies, government officials, and experts on production and new technologies. Guests of honour during the event were Deputy Minister Andrzej Piotrowski and Deputy Minister Michał Kurtyka from the Ministry of Energy. Marcin Haber

he Conference started with a debate on Poland’s economic strength and new directions of economic development. Panellists also discussed issues concerning macroeconomics, business, and innovation, which are priority factors for the development of manufacturing companies. The issue regarding optimization of the production process was also undertaken. Finally, speakers debated of human capital and smart factories. The final part of the meeting allowed for the exchange of knowledge and experience by means of selected case studies presented by the Polish representatives of leading innovative companies. During the conference, a panel discussion was held to answer a series of questions pertaining to how employers can approach issues directly related to ways they attract and keep employees in the company. The panellists thought about the use of knowledge and experience of workers over the age of 50, the proper response to demographic trends, including migration, and the meaning of (corporate social responsibility) CSR in business. The participants in the discussion were: Marta Cydejko, Human Capital Expert, Marta Hofman, Member of the Extended Board, Human Resources Director, Amica Wronki, Przemysław Powalacz, President of

the Board of Directors, Geberit Poland, Jacek Santorski, Programme Director in Academy of Leadership Psychology, VALUES Advisory Group, Piotr Truszkowski, Strategy Office Director, Polimex-Mostostal, Paweł Wideł, Government Relations and Public Policy Director Poland, Czech & Slovak Republics, General Motors Manufacturing Poland. Jacek Santorski, Programme Director in Academy of Leadership Psychology, VALUES Advisory Group, with regards to the efficiency of employees, referring to the experiment carried out on employees at Sony Pictures said: “They were allowed to go on break every 90 minutes as part of their “digestive rhythm.” Whenever they felt the need to stretch-out, day-dream, or flirt, they were allowed to do so as long as they were able to concentrate on work. It turned out that the efficiency of the employees had increased by 40%.” Piotr Truszkowski, Strategy Office Director, Polimex-Mostostal, referred to issues regarding migration. “It’s hard to imagine a 60 year-old welder. Due to physical limitations, he is rather inefficient. Due to the lack of employees on the labour market, we make use of migration trends. We staff ourselves with employees from the East. This is a normal migration phenomenon. The Poles go to work to the West, the same

From left: Paweł Wideł, General Motors Poland, Piotr Truszkowski , Polimex-Mostostal, Jacek Santorski, VALUES Group, Małgorzata Hofman, Amica Wronki, Marta Cydejko, an expert, and Błażej Grabowski, Polish Market economic magazine.

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thing is done by the Ukrainians and Belarusians or other nations to the east of Poland. It is important to set clear and equal rules for all employees. We require the same from all employees, and all are rewarded in a similar way. Then it is manageable to avoid conflicts arising from cultural differences.” Paweł Wideł, Government Relations and Public Policy Director Poland, Czech & Slovak Republics, General Motors Manufacturing Poland, referring to the question of workers approaching retirement noted: “We can accept the fact of aging employees and free-up the production line, which means that within one hour we will produce 10 cars less. From a business point of view, this is not the best solution as we are trying to use our resources in a maximum sort of way. Therefore, you have to think about wider perspectives. We call this “age management.” We try to turn full circle, starting from the recruitment process, co-operating with the technicians at the University of Silesia. The next stage is the care of a physiotherapist who watches over the workers on the production line. The therapist takes care of their correct posture, suggests how to put the least amount of strain on the body, and evaluates the ergonomics of a work station. This is done out of concern for the employee, but it also has an economic importance. If an employee is works in poor conditions, or with a negative attitude, he or she is prone to injury and is less efficient. Another important element is the appropriate management of employees 50 years of age and above. The easiest way is to move such an employee from the production line to tasks related to the education of younger employees or for positions that do not require work in the regime time bars, which is the production line, for instance the warehouse.” Marta Cydejko, Human Capital Expert, said that the role of the leader is “for an employee to be able to enter the premises half-smiling, and while leaving half-smiling, but with the other side. Then everything is fine.” The moderator of the discussion was Błażej Grabowski, Vice-President of the Rynek Polski Publishing House, the publisher of "Polish Market". •

Technolog

ENERGY UNION AND ACTIVITIES OF THE POLISH REGULATOR IN 2015

Photos: Opole University of

Energy

MACIEJ BANDO, President of the Energy Regulatory Office (URE)

nternational co-operation, particularly that within Europe, is an important area of activity of the President of the Energy Regulatory Office (URE). Work on the single market in the European Union is accelerating. New grid codes come into effect, work continues on the integration of energy markets at the regional level, new cross-border connections are built. New EU proposals and initiatives aimed at creating an effective, secure and competitive energy market in Europe are being put forward. An example of such initiatives is the energy union framework strategy presented by the European Commission (EC) in February. The main assumptions of the concept are: energy security and solidarity, a fully integrated energy market, energy efficiency, low-emissions economy, innovation and competitiveness. The proposal aims, among others, at reducing Europe’s dependence on energy supplied from outside of it, especially at times where such supply may be disrupted. Energy security is to rely on the internal market based on a free movement of energy, with an appropriately developed network of international inter-system, effective regulatory framework and regional co-operation. The EC has also announced a reconstruction of the electric energy market so that it is better adjusted to the new reality. The EU’s proposals also include strengthening the competencies and independence of the Agency for the Co-operation of Energy Regulators (ACER) with regard to its regulatory functions at the European level. As part of the energy union strategy, the Commission presented in July 2015 the so-called summer package rendering more precise issues such as proposals to rebuild the European electrical energy market and a new offer for consumers. The new market model should also be adjusted to energy from renewable sources

and give consumers even greater benefits derived from the ability to actively participate in the market. The new offer for consumers is to be based on three pillars: helping consumers to save money and energy thanks to better information, wider choice of possibilities to participate in the energy markets and the highest possible level of consumer protection. Our Office actively participates in projects and work of the EU bodies by drawing up contributions to the positions of the Polish government regarding the proposals put forward by the European Commission, permanent co-operation with the ACER and participation in other regional and European energy-related initiatives. The directions and character of international co-operation of the URE stem from the main objectives of the Polish regulator in this field, meaning the performance of its statutory obligations and continuation of work aimed at creating a single energy market within the EU. In compliance with legal regulations in force, the President of the URE regularly co-operates with the European Commission by exchanging information, drawing up contributions to Poland’s positions regarding drafts of legal acts prepared by the Commission and fulfilling the reporting obligations provided under domestic legal regulations. The second element of the co-operation between the President of the URE and the European Commission are day-to-day contacts and participation of the Office’s representatives in various initiatives and groups of the Commission aimed at achieving the objectives of the European energy policy. The representatives of the URE also participate in meetings of the European Electricity Regulatory Forum (Florence Forum) and the European Gas Regulatory Forum (Madrid Forum) whose task is to evaluate the steps taken and recommend further

actions aimed at integrating European electricity and gas markets. The URE also took part in the London Forum organised by the Commission, dealing with consumer issues and in the Infrastructure Forum set up in November 2015. Simultaneously with the aforesaid work, the Office collaborates with the Commission by exchanging information on the situation in the Polish energy market and participating in various studies commissioned by the EC. Moreover, the URE actively participates in the work of working groups and task teams and attends regular meetings of the ACER Board of Regulators. The co-operation between the URE and ACER also develops as a result of performing the tasks resulting from REMIT Regulation. Besides, the Polish regulator actively participates in the work of the Regional Initiatives. According to the division adopted, Poland is a full member of two regional electricity markets: the Central and Eastern European Market and Northern Market. Within the frame of regional gas initiatives the URE is a member of the Southern/ South-Eastern Europe Market, and until October 2015 the Polish regulator co-chaired the work of this region. In this context it is also worth mentioning the co-operation within the Visigrad Group. The V4 regulators meet on a regular basis at the V4 Regulators Forum to discuss the current energy-related issues of national, regional and EU character. In November 2015 in Augustów a meeting of regulators from Lithuania, Latvia, Estonia and Poland was held. The event was organised by the President of the URE and its purpose was to strengthen the collaboration between the regulatory authorities of these States. It was the first meeting of this group and the co-operation initiated there is still continuing. • 6/2016 polish market

Energy

POLAND’S ENERGY STRATEGY The National Centre for Strategic Studies (NCSS) has begun work on a document encompassing the overall energy strategy for Poland. During a conference held on March 17 at the PAP Press Centre experts from the NCSS presented the main threats resulting from the lack of a coherent energy strategy in Poland and the framework in which such a document should be created. The draft was presented by NCSS experts – Krzysztof Księżopolski, PhD, and Tomasz Chmal.

he NCSS representatives listed the main assumptions behind the strategy, observing that Poland needed a realistic and coherent strategy for the power sector. The dynamically changing international environment- political, with the aggressive policy of Russia and ambivalent results of the COP conference in Paris, economic, with falling prices of energy raw materials and growing competitiveness of renewable energy sources, and legal, with energy market liberalisation processes in the European Union and market integration- means that a realistic and coherent vision for the development of the power sector in Poland is required. Its absence renders the situation in the industry unpredictable. Very often decisions concerning the energy sector are taken ad hoc, based on the position of the lobby, and not an in-depth analysis and strategic interests of the State. One should consider whether there is no alternative method of creating the energy policy and what its framework should be? “What prompted us to deal with this topic is the fact that strategic documents drawn up in Poland in recent years have been of rather low quality. They failed to address the basic dilemmas of the State, and even if some attempts were made, they did not indicate the direction in which we should be moving long-term, for instance, until the year 2050.

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Today we can see the effect of the lack of strategic thinking about the power sector. In our opinion, a document like this is necessary,” said Tomasz Chmal. Elsewhere in the world energy strategies stem from the geographic location, risk assessment, availability of raw materials, global development trends and capabilities of the national economy. For this reason there are significant differences between energy mixes in, for instance, individual EU Member States. Some countries have a well-developed nuclear sector (France), others rely on exports of fuels (Russia, Norway), and others compete for technological leadership in renewable energy (Germany). Some states try to adapt to the global conditions investing in renewable energy sources and nuclear power (Great Britain). Others are unable to formulate their own strategies and pursue an ad hoc policy which leads to economic and political marginalisation. Alas, Poland too is moving in this direction. Poland has no documents constituting a strategy for the fuel and energy sector. A narrow, sector-based, purely technical approach dominates, ignoring political and legal conditions. It seems that this is due to historical conditions and a power culture that produces an adaptive and reactive policy. The NCSS believes that the assumptions presented by it should be the subject of

a serious public debate and aim at agreeing the raison d’être of the Polish energy sector. This is necessary, in view of the fact that today’s investment decisions are going to create costs for consumers over a period of up to 60 years after project completion, and the scale of financial exposure of companies may pose a threat to the competitiveness of the Polish economy and lead us into the middle income trap. The strategy cannot be incogitant and imitational, and the costs of its implementation must be clear and choices transparent. Following a well-trodden path, irreflective thinking and acting, for example, by copying certain solutions and policies or giving in to strong lobbies is not going to lead us to a success and cost-optimal solutions. The energy strategy may be the starting point for: foreign expansion aimed at gaining access to deposits and technologies abroad, creating incentives for investing in the country and taking effective actions at the EU level. In our opinion, the energy strategy combined with the economic policy, and maybe with the utilisation of the offset or local content mechanism, considerable outlays on research and development in the power sector and energy efficiency can be successfully drawn up and implemented in the coming decades. • Source: NCSS

Energy

CONCLUSIONS AFTER THE COP 21 CLIMATE SUMMIT

he United Nations Climate Change Conference COP 21 ended on December 12, 2015. The 195 participating countries from around the world, including Poland, adopted an agreement to reduce global emissions. The plan is expected to maintain the global temperature increase below 2°C. The “Paris agreement” means that further reduction of global warming is going to be a global effort, taking into account economic possibilities of individual countries, including Poland. At the conference, our country presented its achievements which may serve as positive examples for other countries. We have proven that effective climate protection can be sought in a sustainable way and without damage to economic interests of the country. The agreement also included a Polish proposal to treat forests as a resource that contributes to reducing carbon dioxide concentration in the atmosphere. Further efforts are needed in the fields of increasing energy efficiency, developing competition mechanisms and innovations while maintaining the required level of energy security. A modern and smart economy requires smart power grids, improved and unified technical infrastructure, and the whole systems’ ability to adjust to constantly changing conditions. The National Programme for the Development of Low-Emissions Economy seeks to face these challenges. The programme provides a foundation for sustainable and smart development of all sectors of our economy and for environmental protection measures; it also supports the process of increasing energy efficiency in cities and

Andrzej Piotrowski, Undersecretary of State in the Ministry of Energy municipalities and in the country’s enterprises. The programme is expected to cover all sectors of the economy, starting from energy companies, through industry to households. These were the most important issues discussed on April 22 during the international Low-Emissions Economy Forum entitled “Developing a Smart Low-Emissions Economy in Poland whilst Ensuring Sustainable Development of the Country” organised by Procesy Inwestycyjne in collaboration with the Ministry of Energy. Poland’s achievements which could be used as a model for other countries were presented at the summit. It is possible to create sustainable environmental protection without harming the economic interests of the country. It is necessary to comply with global trends in environmental protection, to counteract global warming and seek new solutions of benefit to our country. For Poland, this means an evolutionary reconstruction of its

Remigiusz Nowakowski, President of the Management Board of Tauron Polska Energia, and Ryszard Biernacki, KGHM Polska Miedź

Panelists during the discussion

economy, and a modern and dynamic reindustrialization process carried out simultaneously at all levels. The Polish Government is aware of the challenges which are tackled by the “Plan for Responsible Development”, presented by Deputy Prime Minister Mateusz Morawiecki. • 6/2016 polish market

Energy

20 YEARS OF

NOSTALGIC SEARCH FOR A COMPROMISE

LESZEK JUCHNIEWICZ, Ph.D., adviser to the President of the Employers of Poland Organization, Chairman of the Advisory Board of the EuroPower Energy Conference, talks to Marcin Haber. Sustainable development is an idea which in recent years has also been present in the power industry. Today, it seems slightly forgotten, also for political reasons. Is the return to coal and the uncertainty regarding wind power a step back, or can this decision be seen as an element of this vision? The idea of sustainable development is enshrined in our Constitution. Sustainable development means a model of the economy and investments which makes it possible to maintain a balance in the use of resources, be it human, capital or natural. This byword has been with us since 1997, which is nearly 20 years, and we are still nostalgically seeking a compromise. There are strong voices of the environmentalists and the policy of the EU is based on climate policy priorities. This means that it is necessary to work out a compromise. If I were to decide whether the current measures are a breach of the vision of sustainable development in the power sector, I would have to say that this is still a search process. As a country, we are not quite predestined to meet the expectation of the climate and energy policy of the EU. One just has to mention the EU climate summit held in Brussels in October 2014 during which certain goals of the climate and energy policy until the year 2030 were set. At present, we are unable to meet them. We will not succeed in achieving a 40% improvement in energy efficiency or in meeting the greenhouse gas emission reduction requirements. Also, the PM

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presumed share of renewable energy sources in the energy mix will not be attained. Nevertheless, the planned 27% share of these sources is not obligatory, but we should say that the current energy policy makes its achievement impossible. The latest moves of the government, including signing the agreement establishing the Polish Coal Group, show that Poland’s power sector will be based on coal. Does it violate the decisions taken by the EU? In a certain sense it does, but we should remember than slightly later, also in Paris, during the COP21 summit, a certain consensus was worked out within the United Nations. According to that compromise, all countries should limit emissions by as much as they can. It is important to note that the capabilities of individual countries were mentioned in this context. We have to remember that they differ greatly. It has been concluded that not only CO2 reductions, but also greenhouse gas absorption is important. The European Union has always stressed the importance of energy security and independence from imports. However, most EU countries rely on fuel imports, some even totally, when it comes to gas. So, the assumed independence is just a pipe dream. If we consider the independence assumption to be a priority, then we should do with what we have. I am in favour of seeking a reasonable compromise adequate to our investment capabilities and the use of our natural resources,

meaning coal. We should also remember the people who have been dealing with coal for years, including research units. We cannot consign them to history overnight. But we are talking about a diverse energy mix. For many years the topic of nuclear power has been kept artificially alive. Location work is dragging on. Is this still an alternative to coal? Let’s be frank – one nuclear power station will not solve anything. The planned capacity of such a plant pegged at 3,000 megawatts is less than 10% of the current electricity production potential in Poland. We can assume that we can build one plant in 15 years, with another in 30 years from now, but we should remember the global trend towards closing down nuclear power stations. The events in Fukushima in 2011 prompted many governments to re-think their policy. One thing is certain, though. Today, there is no alternative to nuclear power. Research into other technologies is at very early stages. Coming back to the concept of sustainable development, I think that we are able to rationally shape such long-term energy policy. We should avoid any sudden moves, such as closing down mines and giving up on coal by 2030, but in my opinion this can be done by 2050. The paradox is that the latest major investment projects in Poland, such as Opole, Kozienice, Jaworzno, are all coal-powered plants. • PM

Energy

23RD EUROPOWER

ENERGY CONFERENCE On 13-14 April 2016, the 23rd EuroPOWER Energy Conference took place at the Westin Hotel in Warsaw. Present at the event, were the presidents and board members of key energy companies, government officials, regulators, representatives of the academia, and members of various Chambers of Commerce. Deputy Minister Andrzej Piotrowski and Deputy Minister Michał Kurtyka from the Ministry of Energy were the guests of honour. From left: Leszek Juchniewicz, Chairman of the Advisory Board of the EuroPower Conference, Beata Stelmach, CEO of GE Poland and the Baltics and Andrzej Piotrowski, Undersecretary of State, Ministry of Energy.

he Conference began with a discussion on the topic of energy in the Polish economy and new directions of its development. The subjects raised included innovation and the development of new technologies in the energy sector and the new business challenges that stand before them. A significant part of the meeting was the EU’s energy union and energy security. The speakers also talked about building a competitive energy market sector in Poland; facing the construction of a single European market for electricity and gas. The last thematic section was devoted to Polish energy here and now. The culmination of the first day of the 23rd EuroPOWER Energy Conference was the Grand Gala of the Power Industry Leaders, during which awards were presented in the energy sector for achievements in 2015. One of the most interesting panel discussions during the conference, opening up the second day, was the discussion on the essence of the energy union in the structures of the European Union. Leszek Juchniewicz, Phd, Chairman of the Advisory Board of the EuroPower Conference, who moderated the discussion, started by asking the question – “In general, does it make sense to talk about the energy union. Is it that obvious that there is nothing to talk about?”

Tomasz Dąbrowski, Director of the Department of Energy at the Ministry of Energy, answered the placed question: “Certainly, you should talk about it. This is a large enough topic that each Member State has quite a bit of a different approach to it. A discussion about how the energy union is part of the EU integration concept is, in my opinion, most definitely topical.” “I, unfortunately, do not have a good opinion about the energy policy of the EU,” said Janusz Steinhoff, a former Deputy Prime Minister and Minister of Economy. “Despite the fact that I agree with the majority of the entries relating to this policy, this inconsistency, national egoism, or the implementation of projects, which are in contradiction with the philosophy of building competition on the European energy market for electricity and gas, raises my essential concerns.” The concept of the Energy Union has become a much wider, multi-pillar economic programme for the development of the EU, which has far extended its reach in not just energy matters. Ireneusz Łazor, President of the Polish Power Exchange, referring to the internal energy market in the EU, said: “I think that we should not look at the European Union from the perspective of the union of states. We should look at it as a union of cities, people, federations, and also markets. Observing not only from the macro point of view, but descending into details.

We should also de-bureaucratise the EU, particularly in regards to the internal markets. A good example is the return of a transmission line between Poland and Lithuania, which has contributed to an increase in energy security of the two countries. It also has increased the competitiveness of the liquidity in the energy market. At the same time, it has become a nuisance for some of our energy producers since the price of energy has dropped.” Herbert Leopold Gabryś, Chairman of the Committee for Energy and Climate Policy, Polish Chamber of Commerce, referred to the energy efficiency and the EU’s recommendations on this issue – “Energy efficiency is not in my opinion directly dependent on the recommendations. However, it is dependent on a very simple mechanism: If something is worthwhile, it is being done. If it is not worthwhile, then it is hard to convince someone with emotions.” The EuroPOWER Conference, from the 23rd Conference edition is committed to the goal of discussing the most current issues and challenges of the energy sector. Every half year, all key industry representatives gather together to discuss the most important aspects of the energy industry. The Conference is an extremely effective and neutral platform for dialogue and a fixture in the calendar of most important economic events in our country. • 6/2016 polish market

Energy

WE ENABLE CONSCIOUS ENERGY CONSUMPTION ROBERT ZASINA, President of Tauron Dystrybucja SA, tells Marcin Haber, about the project regarding the implementation of smart meters, and investments in the energy storage market. In Wrocław you lead the programme AMIplus, involving the introduction of smart meters for electrical energy. What are the advantages of such a system? This is a project assuming the replacement of more than 330 thousand meters. The idea for this project arose at the time when the idea of universal smart metering appeared on the Polish market, and it seemed that the market would accept the project very quickly. It was stated then that the plans are for setting up coverage for 80% of customers with smart meters by 2020. We decided at that time that we needed to develop a strategy of how to implement the idea of smart meter and the replacement of meters. A very important issue was choosing the right communications technology for the meters. This is why we launched a number of smaller projects which were to determine the best solution. We wanted to check how smart metering worked in practice, how the consumers would respond to the meters installed in their homes, whether they would react by changing their energy demand on the basis of information obtained from the smart meter, and in the end in which direction changes should go for customer service. Because the amount of questions was very big and they concerned more and more relevant issues, we decided to do it on a larger scale. Hence the idea of the project AMIplus Smart City Wrocław. Management of the replacement of 330 thousand meters in the large metropolitan area of the city of Wrocław is a test for the organisational capabilities of the company. Here enter the logistic issues and the functional reading system: the selection of equipment suppliers, efficient replacement process in co-operation with clients, launching of the meter communication process with the management system that acquires the measurement data, and hosting the exchange of messages between the meters and the readout system. This is a big challenge both in terms of learning and experience. I would classify several aspects with regard to the advantages of the PM

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system. First of all, the measurement of energy consumption by the end customer in hourly intervals, enabling the invoicing only according to the actual amount of energy consumed, more frequently than in the current billing period of 6 or 12 months, and on the basis of the data collected, enabling the creation of an offer for a specific client. The measurement data is derived from the meters. We can also use this data for the analysis of load distribution in the network. No less important after applying smart meters in the distribution network is the possibility of balancing network areas and identifying the sections of the network which have indications of too large energy loss. In this way you can say that smart meters provide double the benefit. Customers get precise data on electricity consumption, and with this data you can optimise the flow of energy in the network. Yes. For the operator of a distribution system and companies selling energy it is the knowledge about what the customer’s energy consumption profile is, and on the other hand, the same client can observe, by using the application eLicznik, the consumption of energy in their household, on an hourly, monthly, or even yearly basis. The client has the ability to set alerts, by typing in the desired level of energy consumption, and if it exceeds that amount, the application will automatically notify them of that fact. This solution gives the customer the possibility of conscious energy consumption and to transfer an increased energy demand to selected consumers for hours with lower energy delivery prices. PM

You are also running a second programme, very focused on the future: “Energy for Mobility.” It consists of pilot quantities of electric vehicles, as well as charging stations for these vehicles. What is the purpose? Are you not afraid that the market is still too small?

The project has a research and development characteristic. In the field of electric vehicles, the aims are to bring together experience in their use, the checking of operating costs, and the possibility of using the vehicles in an electric energy company. We have in our company an operating fleet of a few thousand vehicles and we see the possibility of using electric vehicles, especially in the urban area, which will further reduce levels of air pollution in many cities in the south-western part of Poland, where Tauron Dyscrybucja operates. In the cases of battery exchanges and charging for electric buses, we want to know the technological performance of such devices, and examine their impact on the common distribution network. We see that every year the shares of renewable energy increase in the energy balance. Because the functioning of most renewable energy sources is dependent on the weather and even the time of day, therefore, for example, energy storage at the prosumer takes on an importance and enables flexible use of stored energy during periods of the day in which the ability to generate power is limited by weather conditions. Energy storage also gives you the opportunity to flatten the curve of daily energy demand at a single client and on a larger scale even the electric energy system, which becomes very important to optimise the use of assets of the system network sources. Hence our interest in the subject. We can see how more cities already have decided to purchase electric buses or plan to do so in the next few years. Moreover, the range of personal electric cars offered on the market is growing each year and you can expect that it will also be a competitive offer to traditional vehicles. What is important for the distributorship of electric energy, electric vehicles are potentially new customers and increased volumes of energy supply, which is why the promotion of this technology is also a business decision. •

Innovation

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Energy

WE ARE NO LONGER FORCED TO BUY GAS FROM RUSSIA JANUSZ STEINHOFF, Deputy Prime Minister and Minister of Economy in the government of Jerzy Buzek, adviser to the Board of PwC, talks to Marcin Haber. Recently you have stated that it will be hard to reconcile the assumptions made by the Energy Union with a sense of national egoism. Can you elaborate on this statement? This is regarding the problem with supplying Europe with energy carriers and consistently respecting applicable regulations. The most important dispute that has surfaced in this matter is the issue of the Nord Stream II pipeline. It does not in any way represent the interests or the will of Central and Eastern European countries. It is contrary to the whole philosophy adopted by the European Union, the so-called Third Energy Package. That package relates to the liberalisation of the gas market in the European Union. The German Office of Regulations stance towards the OPAL gas pipeline, which runs alongside the Polish-German border, is also important. Will the use of this pipeline by Gazprom be consistent with the philosophy of the EU existing regulations and will the Russian supplier utilise preferences? I hope that the EU energy policy, the Third Energy Package and the consistent building of a competitive market will be implemented on the European gas and energy markets. This requires firstly, a rational policy towards the diversification of energy supply, secondly, the expansion of crossborder electric grid lines and gas pipelines and thirdly, holding onto these rules that the European Union has adopted. The Nord Stream II pipeline is a classic example of circumvention of the law which the Union itself has created. PM

No one assumes a detachment from gas supplied by Russia. We do not intend to discriminate against any current and potential providers. Gazprom, however, must comply with all the rules that apply in the EU countries. I am thinking here about the rules relating to transmission, complying with all the laws related to the functioning on the gas market. We cannot accept – and the Polish Government has been firm on this matter for years – an attempt to circumvent those rules which seek to build a competitive European market for energy and gas. Domination of any supplier, coming from any geographical direction, is detrimental for Europe. The past experience shows that the Russian Federation often used its dominant position for projects of political nature. The price of gas which Poland was paying did not reflect the price of its transmission and current value. For a very long time we paid rent for a lack of alternatives. Five years ago, Poland had to import gas from Russia due to the lack of a cross-border transmission infrastructure coming from other directions. Currently, as a result of the investment projects that have been completed (LNG terminal; cross-border pipelines on the Southern and Western border) and the existing European regulations, we can import the necessary amounts of gas from other directions. Now we can buy Russian gas but only when the conditions for the supply of gas are in competition with other suppliers. PM

In the European Union, the discussion concerning the necessity for the EU to be independent from gas supplied by the East is growing louder.

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In the European Union, the need to reduce greenhouse gase emissions and environmental protection is constantly underline. Where is room here for Polish energy producers?

We should be aware that Poland is not the only and largest producer of electric energy generated from solid fuels. Ahead of us in this sphere is Germany. Percentage-wise, however, we have an overwhelming dominance – more than 90% of our electric energy is based on hard and brown coal. The European Union has adopted a Climate and Energy Package and consecutive Polish governments lobbied to take into account the specific situation of Poland, which is the only country in Europe that has such an energy mix. We are not able to change it in a few or even several years. We can only reduce carbon dioxide emissions by raising the efficiency of generating equipment. Currently, most of the generating capacity has a significantly less efficiency than modern units such as those recently installed in Bełchatów, Pątnów and Łagisza. We are undertaking the trouble of upgrading, but there is something else, that we as a state make note of, and that is the major factor. It is that the problem of air protection and the reduction of carbon dioxide emissions is a global problem and not a local, European problem. Europe is responsible for little more than 10% of the carbon dioxide emissions. The rest is emitted by other countries such as China, the United States, the Russian Federation, and India. If we are serious about air protection then we need to persuade the other countries to undertake of joint actions at the next climate summit. If we, Europeans fail to succeed in persuading other countries, the results of the European climate package can be a significant reduction in the competitiveness of the European economy and the relocation of carbon dioxide emissions together with a part of industry outside of Europe. •

Events

EUROPEAN EXECUTIVE FORUM

he fourth “European Executive Forum” was held in Warsaw on April 7-8.. The event was entitled “Age of Innovations”. During 6 panel discussions, outstanding representatives of business and science, from Poland and abroad, debated on the direction for Polish enterprises in the age of technological revolution. The partners of the event included such companies as Totalizator Sportowy, BMW, PayU, Synthos, and Pfizer. For the first time, the prestigious “European Leadership Awards” were granted to honour the best enterprises, distinguished managers, and business leaders who exhibit exceptional involvement in the economic development of the country and uphold ethical standards in their business activity. The Congress began with a letter to the participants from the President of the Republic of Poland Andrzej Duda read by the President’s Advisor Marek Dietl. The President emphasized the importance of the voice of business in times when Europe requires a great effort to maintain its civilizational and economic position in the world. He also emphasized the significance of the European Executive Forum’s debates for the strengthening of Poland’s competitiveness and knowledge-based economy. During panel discussions, the speakers debated on the future of the European economy,

Panelists during the discussion

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the methods of implementing innovations in enterprises, the features of a good leader, and the image of Polish companies in the decades to come. The Congress was enriched by speeches given by special guests. The conference was opened by Chris Lowney, a writer, former Jesuit, and managing director of J.P. Morgan Bank, who presented the characteristics of a leader based on the example of a player holding the record for the highest number of missed shots. “I would never be the person I am now if I was afraid of missing some shots,” said Lowney. Paddy Miller, professor at the prestigious IESE Business School, pointed out the solutions that may be effective in the implementation of innovations and dealing with management problems. He also mentioned the disconnection between top managers, who talk about innovations, and lower level managers, who are supposed to implement them. Patrick Barwise of the London Business School gave a presentation on customer marketing. The first day of the conference culminated in a formal European Leadership Awards Gala, during which awards were granted in 6 categories. For the first time in the history of the Forum, the “European Leadership Awards” were granted in six categories. The Jury included: Igor Chalupec (Icentis), Dorota Hryniewiecka-Firlej, MD, (Pfizer), Marek Michałowski (Budimex),

Chris Lowney, a writer, former Jesuit, and managing director of J.P.Morgan Bank

Prof. Witold Orłowski (Vistula Academy of Finance and Business), Prof. Piotr Płoszajski (SGH) and Beata Stelmach (GE). The statuette in the Top Industry Leader category went to Elavon for their rich portfolio of the most innovative products on the market. The award was received by Rafał Gołębiewski. Google Poland was chosen as the Innovation Leader for the implementation of an educational platform aimed at increasing the digital competences of Polish entrepreneurs. The award in the Global Success Leader category went to Karol Zarajczyk, President of the Management Board of Ursus, who received it from Prof. Witold Orłowski. PKN Orlen received the Charity Leader statuette from a special guest of the event, Prof. Patrick Barwise (London Business School). The title of CEO Visionary, for outstanding achievements in company management, was received jointly by, François Colombie, Chairman of Auchan Poland and Ukraine, and Alex Remez, President of the Board of Xerox Polska. The last statuette, Visionary Entrepreneur, was granted by the Jury to Michał Sołowow. It was collected by Tomasz Piec, Member of the Board of Synthos. •

WHAT COUNTS TODAY IS THE PRODUCT AND NOT ITS ORIGIN PIOTR KASAK, Engineered Systems Leader RACE Regions Russia, Africa, Central and Eastern Europe

Is it true that Polish companies, especially those in the IT sector, are beginning to “own up” to their Polish origin? It is often said during debates about innovation in Poland that we have very few patents, occupy a place close to the bottom of innovation rankings, and measures adopted by the authorities to increase the level of innovation bring no effect. What is the real picture of our innovation? Until recently, any innovations, large IT, HR, services and product development centres used to be located outside this part of Europe and outside Poland. However, such centres have been appearing in Poland in the past few years. Many IT companies have set up their centres in this country, employing thousands. This is not visible because these people are not present in the market in the sense that they do not deliver products and services locally. Today, newly-established IT businesses are created with the global market in mind. The Polish market is too small for them. Therefore, in view of the richness of what the American market offers, Polish companies operate via the Silicon Valley and develop their global presence from there. They do not conceal the fact that they are companies from Poland. They say: we create innovations in Poland, have our investors, customers and an entry channel to the global market there. PM

And how is this received in the world? Are people surprised that research and development is conducted in Poland? Is Poland

renowned for good IT experts who win international contests? What is the reception of the “made in Poland” products when it comes to IT? We have nothing to be ashamed of. When I talk to customers, partners from various parts of the world, or people from Oracle Corporation, nobody says that “it is impossible to make good innovative products in Poland, the Czech Republic or Slovakia.” We are appreciated as people who have a very high level of entrepreneurship, lots of good ideas and are able to put them in practice, have excellent engineers, programmers and architects. What we lack and what is repeated by many people abroad is the ability to reach with our products globally. We must learn how to do this in order to offer these products directly from Poland without having to go through the Silicon Valley. However, this praise was intended for individuals and their character. Is there no concern in the world regarding the quality of the technology from Poland? Is Poland’s technology brand already good enough? I don’t know if the brand is good in the general sense of this word. On the other hand, there are many companies which have created their solutions in areas such as the Internet of Things, social media marketing, data centres management and application optimisation. Customers all over the world buy these solutions knowing perfectly well that they come from a company in Poland. They PM

look at the value offered by a given solution and not at its place of origin. So, the country of origin is no longer important? I think that in today’s globalised world, or at least in the world of IT, this particular label is less critical than the value offered by a given product. PM

Everybody is talking about innovation. Every business and product must be innovative, we do nothing else but innovations. But, maybe, if everything is innovative, nothing really is? What is Oracle’s innovation strategy? What should innovative products be like? Products should be simple, integrated, supporting the entire process and this is what Oracle supplies. In other words, it supplies excellent products in every area, from servers through data bases, integration, applications, data management. All technological solutions and products can be used simply because they are integrated and based on the best IT market standards. What is more, all this can be used in a form installed at local data centres or in the Oracle cloud in an invisible way. We deliver to our customers a technology which is fully unified both in the cloud and in the local data centres. The simplicity of applications’ use and full integration, but also the possibility of using different layers separately mean that these products can be called in• novative. PM

6/2016 polish market

Cultural Monitor

JAZZ JAZZ

THE JUNE ISSUE OF THE CULTURAL MONITOR IS DOMINATED BY OUTSTANDING . MACIEJ PROLIŃSKI RECOMMENDS ALBUMS AND CONCERTS.

JAZZ

”Polish Jazz” - Warner - 6 CDs

olish jazz has been blossoming for the last half of the century. A veritable cornucopia of talented artists (several generations) with their diversity and ingenuity, supported by the courage of record companies, means that for many years the Polish music market has been offering an increasing choice of unique, stylistically mixed albums bearing the “Polish Jazz” logo. Polskie Nagrania, currently under the wings of Warner Music Poland, is preparing a re-issue of the iconic “Polish Jazz” series, albeit in a completely new, re-mastered, exclusive edition. The series is to include a total of 76 albums released under this logo in the years 1964-1990. Six albums are to be released every quarter, both on CDs and on vinyl. “The ‘Polish Jazz’ series contains jewels from the treasury of Polish culture. Polish jazz is a national treasure and this series includes many records already recognised as masterpieces not just of Polish, but also of European jazz,” said Paweł Brodowski, editor-in-chief of the "Jazz Forum" monthly, Poland’s oldest magazine devoted to jazz, founded in 1965. The first release, already on sale, is made up of: Andrzej Kurylewicz Quintet “Go Right”, Krzysztof Komeda Quintet “Astigmatic”, Ewa Bem with Swing Session “Be a Man”, NOVI “Bossa Nova”, Tomasz Stańko “TWET” and Extra Ball “Birthday”. “Go Right” by the quintet of Andrzej Kurylewicz is a release as important to the fans of Polish jazz as Symphony no.7 by Beethoven (conductor Witold Rowicki), which appeared under catalogue number 001, is to the aficionados of classical music, and the debut LP of Niebiesko-Czarni to the lovers of Polish big-beat. In 1963, Kurylewicz and his quintet recorded the first jazz long-play record in Poland. The success of that release initiated the legendary “Polish Jazz” series. Kurylewicz was among the most prominent, full-blooded and colourful figures on the Polish scene (not limited to jazz, he is also the composer of the beautiful score to the film “Polskie drogi” directed by Janusz Morgenstern). He also proved a successful composer and conductor of classical music, chamber and symphonic, and was the last of the first three greatest pianists – pioneers of Polish jazz, next to Andrzej Trzaskowski and Krzysztof Komeda. He was also a trombonist and trumpet player. Although his quintet often played American standards, the “Go Right” album is filled with compositions penned by the band. The line-up included Wojciech Karolak – piano, Jan “Ptaszyn” Wróblewski – tenor saxophone, Andrzej Kurylewicz – trumpet. Krzysztof Komeda Trzciński as a composer and jazz pianist made a huge contribution to the development of an original style known as the “Polish school of jazz”. The album “Astigmatic” from 1966 is considered one of his greatest works and belongs to the most important Polish jazz records of all time. Some even claim that it is the most important jazz album ever recorded in Poland. It combines the language of modern jazz with a precise form and elements of the 20th century composition techniques (aleatorism, sonorism). This is the source of the richness and monumentalism of Komeda’s pieces. They are imbued with emotions and lyricism. The album was recorded by a phenomenal quintet with the following line-up: Krzysztof Komeda – piano, Rune Carlson – drums, Gunter Lenz – bass, double bass, Zbigniew Namysłowski – alto saxophone, Tomasz Stańko – trumpet. “Be a Man” from the year 1981 is the second album of Ewa Bem, an outstanding Polish jazz vocalist. It is the best-selling vinyl record in the history of Polish vocal jazz, with a print-run of more than 130,000 copies! The first five pieces are jazz standards. The second part of the album contains six songs written especially for the singer. Ewa Bem is accompanied by the Swing Session octet led by Henryk Majewski, an icon of Polish jazz, who is also the author of all the arrangements. The line-up includes Henryk Miśkiewicz on saxophone and the pianist Andrzej Jagodziński. “Bossa Nova” is the debut album of the band NOVI – later known as NOVI Singers. It was released in 1967. NOVI (New Original Vocal Instruments) was among the musical phenomena of the 1960s and 1970s. The group’s line-up included: Bernard Kawka, leader, Ewa Wanat, Waldemar Parzyński and Janusz Mych. All singers were also instrumentalists. Together they created a new and unique style based on beautiful and refined vocal harmonies. The album contains original pieces composed especially for the record by the band members.

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CM – June 2016

Cultural Monitor

“TWET” is the fourth album in the discography of a veritable icon of Polish jazz – the composer and trumpet player Tomasz Stańko. It is his third studio album and the third where he is the leader. Recorded and released in 1974, it is an affirmation of the creative element of freedom – free jazz in its purest form. The regular trio of the band musicians- Tomasz Stańko, saxophone player Tomasz Szukalski and Finnish drummer Edward Vesala-was accompanied by the American Peter Warren on bass. All pieces were composed together by the musicians taking part in the recording session. For many fans this is Stańko’s best album. And this is how the master himself speaks about the record: “It was a pioneering album. Without it, there would not have been the famous “Balladyna,” although “Balladyna” had already been written and was completely different. A thing like “TWET” cannot be repeated. An album like this is recorded only once”. The group Extra Ball is a musical brainchild of Jarek Śmietana, an outstanding guitar player and composer. The official debut of the band took place during the Jazz upon the Oder River Festival in 1974. At this most important Polish jazz competition Extra Ball came second, only to win the first prize in the following year. The band was enthusiastically received by critics. In 1976, it recorded its first studio album “Birthday,” with the following line-up: Jarosław Śmietana – guitar, Władysław “Adzik” Sendecki – piano, Jan Cichy – bass guitar, Benedykt Radecki – drums, Andrzej Olejniczak – saxophone. The album contains eight graceful compositions written in the fusion style by Jarek Śmietana and Władysław Sendecki.

JAZZ EVENTS! DOROTA MIŚKIEWICZ AND HER NUMEROUS SPECIAL GUESTS AT THE “PIANO.PL” CONCERT – MAY 16, 2016, THE ROMA MUSICAL THEATRE IN WARSAW. This is an unprecedented musical event where the singer Dorota Miśkiewicz will share the stage with a number of outstanding Polish jazz pianists of three generations! Since jazz is Dorota’s favourite music genre, she showcases mostly the achievements of Polish jazz pianists who spectacularly follow the path set in the past by the great Krzysztof Komeda. These are the pianists making the history of Polish jazz (for instance, Włodzimierz Nahorny, Andrzej Jagodziński), younger artists (such as Leszek Możdżer, Marcin Wasilewski, Krzysztof Herdzin) and representatives of the youngest generation (Dominik Wania, Piotr Orzechowski). Invitations to the concern and the recording have also been accepted by Bartłomiej Wąsik and Emilia Sitarz (Lutosławski Piano Duo playing classical music) and Grzegorz Turnau (this time only as a pianist). Some duets with pianists will be accompanied by the excellent Atom String Quartet. The programme includes compositions from the canon of Polish songs, including pieces performed by Ewa Bem, Stanisław Soyka, Edyta Bartosiewicz and Grzegorz Turnau. There will also be compositions by Fryderyk Chopin and Krzysztof Komeda. This unique concert will be recorded and it is to be released as an album this coming autumn. The event is supported by ICON Real Estate, a developer building flats and luxury apartments in Warsaw and Zakopane. "We are proud that among many world-famous musicians Polish pianists are the leading pianists," said Bartosz Puzdrowski, member of the board of ICON Real Estate. "This makes our satisfaction with being involved in the organisation of such a unique event even greater," he stressed. THE 25TH EDITION OF THE WELL-KNOWN WARSAW SUMMER JAZZ DAYS FESTIVAL WILL BE HELD ON JULY 7-10, 2016. TRADITIONALLY, ALL CONCERTS TAKE PLACE AT SOHO FACTORY. This year, the Warsaw Summer Jazz Days will be inaugurated by conterts of such musician as an outstanding Norwegian pianist Tord Gustavsen, representing one of the largest European labels (ECM) and Piotr Wojtasik, a Polish trumpet player and composer of international renown, appearing with the band “Tribute to Akwarium”. The leader will be accompanied by such musicians as: guitarist Marek Kądziela, trumpet player Viktor Toth, saxophone players: Marcin Kaletka and Jakub Marciniak, with Dominik Wania at the piano. Day two of the Festival looks very intriguing. The stage at Soho will be taken over by: Steve Lehman’s octet and the famous Five Elements of Steve Coleman! It is going to be a meeting with a really off-beat face of American jazz. On the following day we are going to see a true legend of creative music, the guitarist James Blood Ulmer with the “Odyssey” project performing with a trio made up of Charles Burnham on the violin and drummer Warren Benbowe. His concert will be preceded by a performance by another outstanding guitarist, Marc Ribot, accompanied by The Young Philadelphians. The night will be closed by the new John Medeski trio – Mad Skillet. The pianist is partnered here with Kirk Joseph, saxophone, and Terence Higgins, drums. On the last day of the Festival there will be a concert performed by MGT, a trio of guitarists Ralph Towner, Wolfgang Muthspiel and Slava Grigoryan and a performance by the new band of another guitar giant – John McLaughlin & THE 4th DIMENSION. “The global position of the Warsaw Festival is unquestionable. Warsaw is seen as a bold market for modern jazz. Many musicians from all over the world know perfectly well what the WSJD is and that it is possible to present here brave new art going against the prevailing trends. In summary, we present jazz that is new, modern, even at the expense of popularity” – invites Mariusz Adamiak, the founder and organiser of the Festival. 6/2016 polish market

Culture

IN HARMONY WITH THE WORLD...

TADEUSZ DESZKIEWICZ, President of the Board of Polskie Radio RDC (Radio dla Ciebie), a regional radio station of Polskie Radio S.A., broadcasting in Warsaw and Mazowieckie Region, Adviser to the President of Poland Andrzej Duda, talks to Maciej Proliński. Towards the end of 2015 you were appointed an Adviser to the Polish President, in February you were made President of the Board of Polskie Radio RDC. You have returned to Polskie Radio (Polish Radio) after two decades. How do you feel about it? I know that cultural matters are very important to you... Since I can remember I have always been connected to Polish culture. These matters have been the most important to me, driving my life. As a child, I performed in theatres and films. I come from a family with cultural traditions. My uncle was an outstanding conductor. I wanted to be an actor or director. I even applied to the National Academy of Dramatic Art in Warsaw but its Rector, Tadeusz Łomnicki, looked me straight in the eyes and said: “Well, with your height...” However, my life continued to be centred around music and theatre. I read Polish at the Adam Mickiewicz University in Poznań and Theatre Studies at Warsaw University. During my time at the Batory Secondary School in Warsaw, I used to visit the premises of Polish Radio on Myśliwiecka Street in Warsaw and radio became my passion. My mother worked there as a sound engineer. Years later I met Jan Weber, a true legend of Polish Radio, outstanding expert and populariser of music, director of the Chief Music Editorial Office of Polish Radio and Television. He offered me a job, but not as a journalist, but initially as a proof-reader of texts written by others. I eventually said that this was no longer enough. I suggested combining my education with my passion and proposed making my own programmes on theatre and film music. At first, only several such programmes were planned, but I ended with several hundred PM

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in each series. Subsequently, I focused on the opera, including broadcasts from the Metropolitan Opera. This lasted for two decades, because between 1976-1996 I worked as a journalist at the Chief Music Editorial Office of Polish Radio and Television and then at Radio 2. In 1996, at the time of the allocation of broadcasting licenses, I came up with the concept of an artistic radio station, “Radio ART.” However, when an article was published in the press saying that the originator of this wellreceived concept was a Radio 2 journalist I was forced to resign from Polish Radio for allegedly creating a competing station. This was never intended as competition, but permanent co-operation. Later, together with director Jerzy Zalewski, I made films such as “Obywatel Poeta” (“Citizen Poet”) about Zbigniew Herbert and “Mysz, która ryknęła” (“The Mouse that Roared”) to commemorate the 20th anniversary of the Solidarity movement. And so my life continued until 2001 when the-then Mayor of Warsaw, Lech Kaczyński, offered me a job as Director of the City Promotion Department. In 2007 I was appointed Deputy Director of the Social Communication Department at the National Bank of Poland (NBP). Between 20102015, I worked as Head of the Culture and Promotion Department at the Town Hall in Wołomin, and subsequently as the Mayor’s Representative. Between 2015 and the appointment to the post of President of Radio Dla Ciebie, I was a member of the Programme Boards of Polish Radio and RDC. This, in short, has been my professional track record. However, wherever I worked, I organised concerts, made friends with artists of various background, mostly from the world of music. I am glad that I can now act on my passions at RDC. I want this

Culture radio station to promote Polish culture. It has a very good and professional team. I think that we have come to like each other and that our co-operation will be fruitful. I have long been insisting that culture is among the best brand-building vehicles. The sense of culture is expressed in its creative character, in something that we refer to as civilisation creation. In your opinion, what may change for the better in this respect in the coming years? What can President Andrzej Duda or the new Polish government give Polish culture? The way culture is perceived at the moment is reflected in the fact that for the first time culture has its own deputy prime minister. After all, Piotr Gliński, Minister of Culture and National Heritage, is a deputy premier. Certainly, culture is not and cannot be just an “ornament.” It is an element in which we are born, develop and live. We consider our life dignified if we have the feeling of fulfilment. We will not achieve this fulfilment without culture. Therefore, I hope that more funds from the national budget will be allocated to culture, national culture. This is most important. Apart from outlays, it is also important to be together. Thus, we must strengthen social ties and eliminate from public debate terms associated with the military: struggle, or clash… The election of Andrzej Duda as President has rekindled the hopes of Poles for a renewal of the cultural policy and for bringing together the deliberately fragmented artistic community. The policy in the area of culture and art should be better. It should facilitate creation of attitudes and thus the strength of the Polish State as a major State in the global arena. Not many politicians realise that without decisive and effective involvement of the State in culture, it simply faces regression. I also think that because of our complexes, for years we have been looking up to the world without sufficiently marking our greatness there. Polish music should have a prominent place in the world, and particularly in Europe. It should be permanently present in the world arena. We should promote it better to ensure that very good Polish bands and great Polish composers, sometimes forgotten even by us, are present in this sphere. So far, we are represented mostly by excellent operatic voices, such as Aleksandra Kurzak, Piotr Beczała, Artur Ruciński, Andrzej Dobber, or Mariusz Kwiecień. I trust that thanks to their position on the world opera stages, we will be able to bring there our great works. We have nothing to be ashamed of! PM

Do you think that democracy, and the rule of law, is under threat in Poland? Free media are one of the conditions of democracy. Let us talk about public media as institutions

with certain duties assigned by the Parliament, or by society, institutions which are to perform these duties for and on behalf of society. Are we at a watershed moment? The claims that “democracy is under threat” are absolute rubbish. This is pure propaganda which I cannot accept. And those who spread it are real masters when it comes to arguing in favour of their lies and convincing others, not just Poles, but the world, as well. Without democracy, we would not have everything that we can see around us, be it in the Parliament or in the streets of Poland. Without democracy, “my radio” would not be presenting such a wide range of views. I am in favour of a radio that provides a very broad perspective, but without indoctrination. The choice and the decision is up to the listener. The term “public media” appeared in Poland upon the arrival of private broadcasters financed from private sources and independent from social funds. I cannot imagine public media financed by the market. Therefore, I must ask you about the Media Bill. Why have we not been able to adopt it for so many years? What is the strength of the current Bill? The Media Bill is a very difficult piece of legislation. I am full of admiration for its authors and their decision to accept this task. Albeit, I am not familiar with its final version and do not know how perfect it will be. However, I consider the idea to create national media a very good idea. The Bill provides for the establishment of “national media institutions” and lists in this group: Polish Radio, Polish Television, 17 regional stations and the Polish Press Agency. The authors of the Bill have stated that the national media institutions pursue a public mission. This public mission entails, among others: “cultivating national traditions, patriotic and humanistic values, contributing to satisfying the spiritual needs of listeners and viewers, stimulating and satisfying their various interests, propagating the achievements of Polish and world science and art, popularising various forms of civic activity.” The word “national” is used to define a lot of broadcasters around the world. After all the BBC or NBC are national! This is nothing new or horrible. National media simply propagate that which is most valuable in their own culture. It has to be remembered that commercial media are a financial venture. Consequently, they select instruments which guarantee a return on investment. Public media are something else. We must be the guardians of appropriate values, shape the tastes of the viewers and, to be precise, be the mainstay of the State. PM

Polish Radio is undoubtedly among the most important Polish brands. We do not have

many of them. Both in Poland and internationally. What awaits Polish Radio before its grand 100th anniversary? Cultivating national values is a challenge awaiting it. I was raised that way. I come from a family with patriotic traditions. Therefore, I would like national media to remember about Polish history and art. Someone who does not remember their own land, its history and culture, cannot understand much about world’s history and culture. That person will not be able to understand and will be unwilling to do so. Archbishop Stanisław Gądecki spoke of this wisely in his sermon during the Holy Mass held on the occasion of the 1050th anniversary of Poland’s Baptism when he quoted Jean Vanier: “People who do not have an identity, who have not put down roots and do not have a clear set of values, cannot be really open to others. They cannot give because they do not really know who they are, what they want and what they are capable of.” What is the role of the media? Our duties include informing, explaining events, educating, supporting national culture, for example by recording it. This is the programme policy of public media with regard to society and the State. We could add to this the important obligation to act as a “conveyor belt” between society and the State. This also involves explaining certain things to ensure that the State develops in the right direction. This is a value which is necessary in every democratic society, both for society and the government. How much radio do you listen to? And is it only “your” station? I must admit that lately I have been listening to Radio Dla Ciebie both in my car and at work. I would like this radio to become less talky. However, until now most of the air time has been taken over by “talking heads” with music and other radio shows marginalised. Alas, this was due to the financial capabilities of the station. Radio must accompany us in today’s hectic life. I want this radio to be nice to listen to, even while doing something else. I want this radio to go back to its basic assumption that means localisation, promotion of regions. For years, all regions around Warsaw, where we broadcast, such as Siedlce, Pułtusk, Ciechanów or Płock, had been undervalued. Now, our broadcasting truck visits a different town in Mazowsze to promote interesting events every weekend. After all, a lot of more interesting things happen there than in the capital. We want these valuable events to become more prominent. What else? A man has been created to live in harmony with the world. And we are going to “catch” this harmony on our radio waves, record it and offer it to our listeners. • PM

6/2016 polish market

Events

PROF. MICHAŁ KLEIBER, LAUREATE OF “POLISH MARKET” SPECIAL HONORARY PEARL AWARD,

RECEIVES THE

ORDER OF THE WHITE EAGLE

n the occasion of the national public holiday, May 3, President of Poland Andrzej Duda presented state decorations to persons who have rendered services to the state and society. The ceremony took place at the Royal Castle in Warsaw. The Order of the White Eagle was also presented to Prof. Michał KLEIBER, Irena KIRSZENSTEIN-SZEWIŃSKA, Michał LORENC, Wanda PÓŁTAWSKA, Irena ROMASZEWSKA, and Bronisław WILDSTEIN. Addressing the recipients, the President said: “Thank you on behalf of the Republic of Poland for your whole life, an outstanding life, outstanding from the point of view of the Polish nation, outstanding also from the point of view of services for Polish society, services often rendered in difficult, very difficult times… Today you have received the highest possible award, intended for prominent people. I am honoured as the President of the Republic of Poland, Orders of the White Eagle. These Orders are of great importance to the Republic, especially the Order of the White Eagle, which is part of the history of Poland. It has been 311 years since the establishment of the Order of the White Eagle by Augustus II, the King of Poland. When Poland existed, it was awarded to distinguished individuals. It was and is still to this very day a great honour. But when Poland was weak, when you could say in principle it was non existent, or when it actually realistically was not, often the Order of the White Eagle disappeared or landed in unworthy hands. That is why I thank you that I can today bestow these orders upon you. Thank you, while this is a great honour, you have agreed to accept it. Although I have heard many humble words, presenting these Orders, such as “I am not worthy” or “I did not expect it.” If you did not expect it, if you believe that you do not deserve it, this goes to show size of your merit, because that is objectified, and modesty only describes a person.”

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The Order of the White Eagle is the highest order of the Republic, established in the year 1705 and restored in 1921. It is given for eminent civilian and military services to the Republic of Poland, both in times of peace and in times of war. Guarding the honour of this Order, stands the Chapter of the Order of the White Eagle. Its members are appointed by the President of the Republic of Poland for five years, amongst those who have been awarded this Order. We are even more pleased that our friend, a laureate of the Special Honorary Pearl of “Polish Market”, Ambassador of the highest Polish values, Prof. Michał Kleiber, also received this honourable award in recognition of his distinguished contribution to the development of Polish science, and for outstanding achievements in the work of both public and state services. President of the Republic of Poland Andrzej Duda, presenting Prof. Kleiber with the Order of the White Eagle, said: “Professor Michał Kleiber does not only represent great activities in the scientific field of high importance, which is one of the most important ways to modernize the nation, namely applying computer technology in science, medicine, and many other aspects of life in the fields of technology. I thank you also Professor for your activity towards Polish science, for the years spent as the Chairman of the Polish Academy of Sciences, for the years representing Poland in many academic and scientific international institutions, and also for your approach always boasting the Republic. Thank you also for the willingness to serve in difficult times. It is important, to always be your-self and always to remain next to your values, while retaining the class. That class should be followed by Polish elite and Polish science. Science should internally feel free. Thank you once again, Professor.” Prof. Michał Kleiber is a specialist in the field of applied modern computer technology in scientific research, general technology,

The President of the Republic of Poland Andrzej Duda, presents Prof. Michał Kleiber the Order of the White Eagle and medicine. He also deals with the issues of pro-development of the nation’s policy. He is involved, in particular, with the strategy for the development of education, science, and innovations in economy, issues with information technology administration, and international co-operation. He graduated from the Faculty of Civil Engineering at the Warsaw University of Technology (1968), and Mathematics, Computer Science and Mechanics at the University of Warsaw (1971). From 1995 to 2001 he served as Director of the Institute of Fundamental Technological Research, Polish Academy of Sciences. From 1998 to 2001, he represented Poland on the Board of Governors at the EU Research Centre, and was the Polish delegate to the Steering Committee of “Sustainable Growth” within the context of the EU’s 5th Framework Programme. From 2001 to 2005, he was appointed as Minister of Science and Information Technology, and the Chairman of the Scientific Research Committee. In 2005, Prof. Kleiber was elected as Member of the European Council on Science and President of the European Materials Forum. In 2007-2015, he was President of the Polish Academy of Sciences. In 2014 he received the Special Honorary Pearl from Krystyna Wożniak-Trzosek, President of Rynek Polski Sp. z o.o., the publisher of “Polish Market.” •

Culture

GREAT SHAKESPEARE INSPIRING AS ALWAYS Maciej Proliński

“

The Tempest” is the fruit of collaboration between the Polish National Ballet with Het Nationale Ballet in Amsterdam. The ballet is divided into four parts elicited by storms remembered by the old Prospero. This role was performed by a valued Iranian multi-instrumentalist Abbas Bakhtiari improvising on the daf drum. The creator of the performance invited Shirin Nashat and her partner Shoja Azari from Iran to provide the stage scenery. This resulted in a ballet taking place against the backdrop of huge video projections. They create a mysterious atmosphere of an island where castaways land after a storm... Critics in Poland stress how very poetic and beautiful this ballet is. Beginning with the visions created by the Iranian artists, through original choreographic ideas, ending with an excellent score including works from the period by composers such as Henry Purcell, Thomas Tallin, Robert Johnson and Matthew Lock, overlaid with contemporary music. Another great hero of the night was the Orchestra of the Teatr Wielki-Polish National Opera conducted by Matthew Rowe. Last, but not least, plaudits go to the entire team of the Polish National Ballet and the outstanding soloists – Yuka Ebihara, Vladimir Yaroshenko, Patryk Walczak and Paweł Koncewoj.

BU RZ A

Choreografia: KRZYSZTOF PASTOR Dyrygent: MATTHEW ROWE Projekcje wideo: SHIRIN NESHAT, SHOJA AZARI projekt: Adam Żebrowski | fot.: Shirin Neshat

The premiere of “The Tempest,” a ballet choreographed by Krzysztof Pastor, was held at the Teatr Wielki-Polish National Opera in Warsaw on April 9. It inaugurated the Shakespeare Festival of the Polish National Ballet, planned for the 400th anniversary of the death of the great English dramatist.

Scenografia i światła: JEAN KALMAN Kostiumy: TATYANA VAN WALSUM Dramaturg: WILLEM BRULS

BALET

ORA KRZYSZTOFA PAST WEDŁUG WILLIAMA SHAKESPEARE’A

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“‘The Tempest’ is always a challenge. Not only as a ballet, but also as a stage piece. Its many layers and meanings allow for numerous interpretations. It can be presented in a period or contemporary settings. The time of action may also be changed, if that makes sense. ‘The Tempest’ does not have a simple ending, but precisely this fact encouraged me to work on this ballet. We do not like to reveal everything in dance, in choreography. In my ‘Adagio & Scherzo’ ballet I did not tell an unequivocal story. I leave lots of room to the imagination of the audience, just like music does,” Krzysztof Pastor, head of the Polish National Ballet said before the premiere. His unquestionably great “Tempest” slightly resembles Iranian cinema. It is said that Iranian film-making combines the truth with poetry. After all, mystery is born at the junction of truth and poetry. Here and there it is the mystery of the obsessive inwardness, crystal self-reflection of the authors. This space serves perfectly both art and individual self-reckoning of all of us, allowing us to ask the pan-human questions, such as “Who are we?”, “Where are we?”. And also to ask how these “issues-oceans” reflect politics, morality, spirituality, or, finally, art... 2014 saw the 450th anniversary of William Shakespeare’s birth with 2016 bringing the 400th anniversary of his death. The Ballet Shakespeare Festival at the Teatr Wielki– Polish

National Opera in Warsaw, held on April 9-28, 2016, was the largest manifestation in our country of the memory of this great English dramatist and poet. In recent years, the Polish National Ballet has turned Shakespeare’s works into one of the main programme foundations, adding to its repertoire the most valuable works of the Bard. It has already staged “Romeo and Juliet” in the original interpretation of Krzysztof Pastor, “The Midsummer Night’s Dream” with the famous stage production of John Neumeier, “The Taming of the Shrew” in the legendary version of John Crank, “Hamlet” choreographed by Jacek Tyski, and in the spring of 2016 it prepared the premiere of “The Tempest”, brilliantly staged by Krzysztof Pastor. All these titles also feature in the programme of a review of ballet productions of Shakespeare’s masterpieces planned by the Teatr Wielki for the anniversary of his death. The British Council, the initiator of the idea behind the Shakespeare Lives programme dealing with the life and works of William Shakespeare, is a partner of the Shakespeare Festival. The programme has been created by the British Council together with its partners: the GREAT Britain campaign and Voluntary Services Overseas in connection with the 400th anniversary of the dramatist’s death falling in 2016 and it runs in over 110 countries world-wide. • 6/2016 polish market

Culture

THE ROYAL CASTLE – GLAMOROUS BUILDING, MUSEUM AND PEOPLE... PRZEMYSŁAW MROZOWSKI, PhD, acting Director of the Royal Castle in Warsaw, deputy Director for Museum and Research Affairs, talks to Maciej Proliński. We meet right after the “European Night of Museums,” clearly showing how great the interest in art there is. Yet this is a popular event. What is your view of our art and cultural institutions, interest of consumers of art and its everyday existence? The “European Night of Museums” is a unique, nice and attractive event. It offers an opportunity to enter places at night which are normally closed at this time. This is also quite an extensive scheme which has an important social dimension that brings us all together. When it comes to a wider “everyday” aspect of the matter, we should ask ourselves the question whether we are lacking a certain holistic vision of what culture should be for Poland, whether we still fail to appreciate culture as a carrier of this huge baggage which builds (and not burdens!) society. In 1990 it was possible to understand the government saying that it was not the right time for subtle mechanisms allowing financing entire culture because it was necessary to restore the Polish currency and build a solid economic foundation for growth first in order to close the gap between Poland and the West which had opened over many decades, but after PM

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the last 25 years mental and systemic changes are clearly necessary. Certainly, art needs large financial outlays and a consolidation of many communities, including the media, in order to propagate it. However, what is also needed in a visionary step forward stimulating our development. 2016 is a third year of the “Museum for One Złoty” programme, under which tickets for children and young people to every State-owned museum cost just PLN 1.00 each. What do you think about this project? It is undoubtedly one of the “wide-reaching” measures stimulating culture-related activities, especially among the young. The results are positive. People want to take advantage of the scheme. I also think that children and young people should be encourage to develop an interest in culture. And this is one of those fantastic and simple campaigns aimed at achieving this goal. Currently, the programme extends to tens of museums in Poland and their number is systematically increasing. But only time will show whether the scheme produces results, including those in the civilisation dimension. PM

Culture Today museums are becoming very active. They launch extensive programmes including musical, theatrical and film events and issue publications which offer strong support for their core activity, which is organisation of exhibitions. The same applies to the Royal Castle... I can say without false modesty that this is nothing new at the Castle because we have been operating under this very wide format nearly from the beginning. Classes held at the museum, including workshops for schools, go back to the 1980s. Every museum must also be a research institution because research work forms the basis for its activity. We have been functioning in this mode for 40 years, studying the Castle as a location, its environment and collections. Certainly, today’s museums are much more than research or collection. This is rather a search for relations, building a wide artistic environment for these places. In the past they were very elitist. Nowadays the largest museums in the world are visited by several million people every year. It should be remembered that cultural institutions, including museums, are today the surest and most attractive element of every tourist offer. Consequently, our programmes are very wide. For example, we organise numerous musical, theatrical or film events. We issue a number of publications which strongly supplement our activity. Naturally, we mostly focus on the period of King Stanisław August Poniatowski. PM

It should be mentioned that the Castle has recently opened renovated spaces. They are very useful for this glamorous place on the map of Poland and Warsaw... Yes. Pałac pod Blachą (Copper-Roof Palace) has become our university. It contains our lecture halls, classrooms and workshops. The beautifully restored Kubicki Arcades attract visitors not only by their appearance but also by their new functions. After all, this is a venue where important artistic events such as exhibitions, plays and concerts are held. Since May 2015 it has been possible to visit the renovated Upper Garden of the Royal Castle. We are now preparing to start work aimed at revitalising the Lower Garden. We are going to apply for EU-funding for of this project. We hope that our application will be successful because the costs of this project are very high. PM

However, apart from this everyday sharing of the knowledge about our history, exhibitions are the mainstay of every museum’s activity. What are the forthcoming exhibitions at the Castle to which we may invite our readers? We would like to invite them to three temporary exhibitions planned for the immediate future. They may not be too spectacular and costly but are certainly interesting. The first one, coming soon, is entitled “Sacrum Polonia Jubileum” and is connected with the beginnings of Christianity in Poland. It will be ready for July and the World Youth Day. In the autumn we invite visitors to an exhibition concerning artistic patronage of the Princes of Mazovia. Before the end of the year we will also have of Mazovia a visiting exhibition of the artistic collection of the Catholic University in Lublin (KUL). This collection goes back to 1932. In that year, Father Jan Władziński, a well-known local patriot, civic activist and one of the first supporters of conservation of historical monuments, donated to the University his collection of mementoes and period exhibits from PM

all over the country, including not only valuable works of art, but also natural curiosities. This collection is not open to the public as, in keeping with the wish of the donor, its exhibits are used in the teaching process. However, sometimes there comes an opportunity for their public display. Soon the “Knowledge Platform – scientific-educational interactive portal of the Royal Castle in Warsaw – Museum” gets underway. This is both a sign of the times, but also a great opportunity to develop educational activity aimed at various social groups. Our task is to extend access to everything that makes the Castle what it is today: as a building, museum and a community of people who look after this heritage. This is achieved at many different levels. One of the most important methods of popularising the knowledge about the Castle and its resources is our own digital knowledge platform, interactive museum portal of the Castle. As part of this project, a modern website will be created containing results of academic research into history and history of art. Its second, educational part will include the multi-media offer with museum classes and teaching materials drawn up for every level of education. Part three is a virtual guide to the museum and archives collection. These activities, commencing on July 1, 2016, will continue until June 2019. The Castle has in excess of 50,000 exhibits and nearly 100,000 items in its archives. The digitisation of its collection has been continuing for five years and is divided into a number of stages. During stage 1, in 2012–2013, the photographic laboratory was set up, followed by a facility for scanning archival collections. Collections were subjected to conservation, a digital repository of exhibits was created, the electronic inventory dictionary was systematised, the ICT infrastructure modernised, a pilot digitisation programme was carried out and collections digitisation procedures and manuals implemented. During stage 2 the digitisation of the exhibits and the development of the technical infrastructure continued in order to achieve the overriding goal of the project: facilitating access to digital resources. The next task is integrating materials from four different portals of the Castle (the main one, with educational photographs, commercial and collections-related) into a single, easy to operate platform. I would like to point out that such measures are designed to keep visitors coming to the Castle and not to replace this “live contact with art.” PM

And finally, the question which could have been the first: How does it feel to be a successor to Professor Andrzej Rottermund? Professor Rottermund, Director of the Royal Castle for nearly a quarter of a century, left his post at the end of 2015. This must be a challenge, but also part of your career at the Castle. I will not deny that this is not a very comfortable situation. The debate regarding the succession after Director Rottermund naturally put me in opposition to certain persons, but this has never been the case. There was a contest with four candidates. So far, the contest has remained unresolved. From the point of view of the tasks facing the Castle, this situation cannot last indefinitely. And I... I am doing what I have been doing at the Castle for many years and this is quite normal. Larger projects are planned for the future, but I can assure you that the Castle is functioning efficiently under my temporary management. • PM

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Culture

Following the success of Dan Cruickshank’s film “Resurrecting History: Warsaw”, shown on January 27, 2016 at the Warsaw Rising Museum, and also on February 21 on BBC Earth, the time has come for a special screening on April 22 at the Royal Castle in Warsaw. Maciej Proliński

an Cruickshank is a British art and architecture historian, author of numerous books on architecture and host of BBC programmes, where for many years he has been making documentaries on relics of history and world’s achitectural wonders. His latest work is a documentary entitled “Resurrecting History: Warsaw,” telling the story of the rebuilding of Warsaw, which had been turned into rubble during the war, achieved thanks to the impressive struggle of Poles for their identity, at the same time being a highly personal and moving journey of the author through the Warsaw of his childhood and through this modern European capital city. Warsaw is a fascinating story in itself. Built over the centuries and by many generations, it survived numerous twists of history. Razed to the ground during World War 2, especially after the Warsaw Rising, it was nonetheless rebuilt. This is a resurrected city serving as an example of the determination of its inhabitants and the entire nation to retain cultural and historical indentity. „For me Warsaw is an incredible city. I had lived here in my childhood for almost three years and I witnessed its coming back to life. It is that history, the resurrection of the city, unique quality of the Old Town reconstruction and heroic attitude and will of Varsavians who decided that they were the Poles, and not the aggressor, who were going to have the final say, was an inspiration to make this film document.

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The example of Warsaw is, in my opinion, very contemporary, because we are living in the times where history, beauty, memory, museums, architecture and identity are threatened by various kinds of hostile attacks. There are cities that had been destroyed to a comparable degree and subsequently rebuilt, but, according to my knowledge, Warsaw is an example of the largest scale, most ambitious and successful reconstruction of a historic city centre. Warsaw is also a fascinating example of the necessitiy to accommodate authentic reconstruction of the lost buildings and royal city with the requirements of a modern city life in a socialist society,”* stressed Dan Cruickshank. “During World War 2, Warsaw was removed from the map and after the Warsaw Rising in 1944, practucally razed to the ground. The fiveyear long occupation resulted in the destruction of almost half of the buildings in the city. After the collapse of the uprising, the Nazis demolished another 30% of the urban tissue. The scale of the destruction can best be seen in a film produced by the Warsaw Rising Museum under a telling title “City of Ruins,” a 3D animation showing a flight of a Liberator airplane over the destroyed Warsaw in the spring of 1945,” added Jan Ołdakowski, Director of the Warsaw Rising Museum. However, as early as January 1945, the city began to recover – people were returning and starting a new life among the rubble. Soon, the decision was taken to keep Warsaw the capital of Poland and then to rebuild the city and

reconstruct its “cultural jewel,” the Old Town. The Market Square, the Barbican, churches and town houses, and the buildings along Nowy Świat Street were reconstructed in a creative way with unique precision. During that period, in the 1950s, Cruickshank, still a boy, lived with his parents in a tenement house in Świętojańska Street in the Old Town. The war-ravaged city and its inhabitants who tirelessly rebuilt it have left an indelible mark in the memory of this boy. He returned to Warsaw after 60 years to tell the world the astounding story of the rebuilding and reconstruction, of a city condemned by the Nazis to total destruction. In his moving documentary, Cruickshank follows his memories, visiting his old flat and showing his childhood drawings of tenements as seen through the window. He takes viewers on a sightseeing trip in the painstainkingly reconstructed Old Town, the Royal Castle and the Royal Łazienki Garden, drawing attention to the restoration of even the minutest of architectual details. Using archival documents he explains the history and method of reconstruction of the Old Town complex, showing changes which have taken place in Warsaw’s • development and architecture.

*Quote from D. Cruickshank’s interview with the Polish Press Agency (PAP) during a preview screening of the film at the Polish Embassy in London on November 19, 2015.

Photo: BBC Earth

“RESURRECTING HISTORY: WARSAW”

Culture

MAGIC OF MUŻAKÓW BRINGS NATIONS TOGETHER

n the past we stood apart. Today, even the border can act as connective tissue. The Polish-German friendship has been developing for the past 25 years, also thanks to the “Treaty of Good Neighbourhood and Friendly Co-operation” signed a quarter of a century ago. The Lubuskie Region Festival planned for June will be a perfect occasion for celebrating this round anniversary. The event will be held in Mużakowski (Muskau) Park, a unique site featuring in the UNESCO list, located on the border between Lubuskie Region and Saxony. Mużakowski Park is not just a UNESCO site, but also one of the symbols of building the Polish-German “bridges”. The Lusatian Neisse River which forms the border between Lubuskie Region and Saxony runs through this breathtaking example of landscape gardening. Thanks to good administration by the local governments of both countries this masterpiece of human genius has become one of the biggest tourist attractions of the region. Today, the “Jewel of Lusatia” intrigues those who are unfamiliar with it and enchants those who have already discovered it. Visitors from all over the world number over 300,000 per

year. This is a perfect place for recreation and pursuing open-air activities. The Lubuskie Region Festival will take place on June 25 in this unique scenery. This year’s event is held under a rather lengthy slogan NATURE-SCIENCE-COSMOS “Alchemy of the Mużaków Arch,” which is a harbinger of many more attractions. The leitmotif of the event will be a Science and Technology Picnic, transferring visitors to a zone of technology, art and nature. Concerts featuring music stars, including Emir Kusturica , organised in the Park’s scenery, will contribute to the unique atmosphere. The event fits perfectly the 25th anniversary of the Treaty, signed in June 1991. Thanks to this cross-border initiative, the neighbouring regions have come closer not only in terms of the economy, but also socially and culturally. Today, joint Polish-German projects no longer come as a surprise. They are often organised by the local residents. The Treaty is a great example of how ideas coming from the governments can trickle down to the grass-root level. The Lubuskie Region Festival is yet another step towards strengthening this cross• border friendship.

ELŻBIETA ANNA POLAK, MARSHALL OF LUBUSKIE VOIVODESHIP: The 25th anniversary of the Polish-German Treaty is a very important event, especially in our border region. This is why this year’s Lubuskie Region Festival is organised in Mużakowski (Muskau) Park, on June 25, at a place which is a symbol of the Polish-German co-operation, where the border between both States is purely notional, because the Park is under joint administration of a Polish-German foundation. The beginnings of the co-operation between Lubuskie and Brandenburg can be traced to the 1990s, a time when there were still two voivodeships (regions): Gorzowskie and Zielonogórskie, and the signing of the “Joint Declaration of Cooperation Between Lubuskie Region and the Federal State of Brandenburg” on January 12, 2000 was its crowning. In November 2008 Lubuskie signed another partnership agreement with a German region – the Federal State of Saxony. The largest cross-border projects include the “Oder Partnership”. This initiative was instituted in Berlin in April 2006 and encompasses the economy, transport infrastructure and tourism. Interreg cross-border funds are also very important because thanks to them the border no longer divides, but unites our nations.

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Culture

NOT MAKING ANY NOISES...

He says that “painting is his second self.” Marek Prędota (born in 1947) is an economist, banker and a long-term director at PKO-BP Bank in Warsaw. He is a resident of Pruszków. Drawing and painting in watercolours became his interest during his primary school years. In the 1990s, he began to transfer his thoughts onto canvas using oil paints. In his works there are a lot of feelings and colours. We encourage readers of “Polish Market” to enter these colourful, yet creative worlds. Maciej Proliński

hese worlds are undoubtedly characterized by a happy holiday mood embedded in Polish tradition and the affirmation of life in harmony with the rhythms of nature. They are a trademark of Prędota, a self-taught unprofessional. The stylistical characteristics of these paintings are dynamic strokes, multicolour, composition density, and an abundance of decorative details. “I paint for my son, this is my gift offered to him confirming my timeless omnipresence in his life and our camouflaged feelings. The passing of time and the realistic paintings in his home collection will be a reference to his youth and our life together. If this theory is confirmed in time, then I am already fulfilled at this point and am sure that it is worthwhile to paint. A professional painter paints and creates his own individual direction in the history of art, just as well as he must ensure his existence through the sales of paintings. My paintings are free from fashion and market demand and preferences of the audiences, they show my passion and emotions,” says Prędota. His works went on public exhibition during the years 2011-2012 on the 13th and the 14th edition of the Regional Art Review “Talent – Passion – Intuition” at the municipal culture centre in Pruszków. Despite the strong interest in buying some of the paintings at attractive prices, they constantly remain in his private collection, because he treats them as if they were his children that are not for sale... •

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Food Industry

CONQUERING THREE CONTINENTS BIOFACH - SUCCESSFUL VISITS AT THE MOST IMPORTANT FAIRS

“Every visit at the fairs mentioned in the title is a success, particularly for exhibitors who come well prepared. I fully agree with the opinion that the most important trade events in the organic food sector act as real platforms for building a network of contacts in our industry,”– says Jolanta Lyska, Director General of the Polska Ekologia Association. “I mean here, in particular, BioFach Nuremberg and Organic Expo BioFach Japan, and also slightly smaller fairs also attended by our members. What counts is a global scale and diversity of the products offered”. Bohdan Juchniewicz

n order to appreciate the importance of events such as BioFach in Nuremberg (February 2016) it is necessary to show the rate of annual growth: 48,000 visitors (2015 – 44,000) from 132 countries, 2,299 exhibitors and 700 new products. Polish participants came well prepared, as evidenced by the considerable interest shown in their products. It would seem that the homely pierogi (dumplings), even prepared in compliance with organic standards, can only appear as a run-of-the-mill snack. However, the dumplings offered by the Ekopierożek firm from Krosno took the fair by storm with visitors crowding to collect trays with savoury and sweet types of stuffing, with cottage cheese and potatoes. All in all, the company presented 13 types of dumplings. And the effects? “Now I must work on a name that is appropriate for a given market and logistics – I have just seen the trends. The Japanese market is promising. Such trips put wind in your sails and educate you,” said Mr Robert Szelc,one of the owners of the business. The traditional Polish pierogi have already been appreciated in China, their country of origin. Maybe the time has come for Japan and Singapore? Stefan Bednarek from an organic farm in Lututowo presenting eggs with a particularly high content of omega-3 fatty acids mentioned problems with logistics. Buyers from Dubai had shown interest in them. But which form of transport would be appropriate for eggs? And how about chokeberry, a fruit discovered 300 years ago? It too has settled here, although it had arrived just 40 years ago from

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North America via St. Petersburg’s botanical gardens and plantations in the Altai region. Today, our country is a chokeberry production giant and Korab Garden is among the leading plantations. Sticking to the heraldic terminology and the original coat of arms symbol this korab (ship) has found a route to Japan. “I know how to select the right flavour of my juices for the Japanese. It must be really dry, while Croatians prefer one with a honey note,” said Piotr Nowak who stands at the helm of the garden. This is a real medicine from God’s dispensary. Suffice it to say that thanks to its richness, chokeberry combines the properties of red wine, green tea and cranberries. This has been confirmed by numerous studies.” All these trips and organisational efforts of the Polska Ekologia Association coincide with the forecasts regarding the development of the Polish organic market and exports. According to analyst Jakub Olipr from Credit Agricole Bank Polska, the coming years will see a rapid growth of this sector. This prediction is confirmed by the studies carried out by Eurobarometer showing that 80% of consumers declare complete trust in organic products. This is so encouraging. The National Association of Processors and Producers of Organic Products Polska Ekologia is an organisation of persons and companies producing food from certified (!) raw materials. The main objective of the Association is to represent the entire organic food sector whilst working towards the development of the organic market. For almost 10 years since its creation, the Association has organised numerous campaigns promoting

the best Polish food nationally and abroad. Since 2015 it has been pursuing a 3-year campaign of promotion of Polish organic food in the USA, Japan and Singapore. Poles increasingly value healthy food: natural, fresh, from a recognised source, certified and sold under a good brand – these are the results of a survey organised by the Evaluation Centre and entitled “Who is tempted by healthy food?” If 34% of Poles already pay attention to certified food, then this is partly due to the Polska Ekologia Association. Paweł Krajmas is the President of the organisation. He is an experienced charcuterie master and an authority in the production of organic food, recipient of awards and a wellknown civic activist from Podkarpacie Region. For the last 10 years the management of the Association has been in the capable hands of Jolanta Lyska, Director General and a good spirit of the organisation. Organic methods of food production contribute to public health protection and maintenance of bio-diversity in the environment in accordance with the slogan:

Euro-leaf – symbol of the highest quality of products. •

Innovation

www.bccevents.pl on-site events (The Palace of the Lubomirski Family)

off-site events

BCC Events services include: • managing and assisting at anniversary celebrations, concerts, conferences, fairs, exhibitions, auctions •presentations, business and company meetings, seminars • workshops, staff meetings • public debates

Contact: Management of off-site events: tel. 22 582 61 50 e-mail: aleksander.polanski@bcc.org.pl

Management of on-site events : tel. 22 582 61 30 e-mail: andrzej.swiderski@bcc.org.pl

6/2016 polish market

Infrastructure

6/2016 polish market