WBJ Observer 07/08 2015

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HIRED GUNS INSIDE A POLISH PMC TRAINING CAMP >28

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SCHEDULING MADE EASY POLISH APP HAS GLOBAL ASPIRATIONS > 38

GLIŃSKI SPEAKS OUT ON LAW AND JUSTICE’S PLANS FOR POLAND >16

TTIP

TTIP Agreement Who will benefit and who will lose

JULY/AUGUST 2015

ALSO IN THIS ISSUE:

• C ra f t B e e r • B o o k o f L i st s • Tra ve l A p p s • C o m m e n t a r y • N ew s

20 lat Private Banking mBanku Zaufaj ponad 20-letniemu doświadczeniu lidera* bankowości prywatnej w Polsce. Niegdyś jako BRE Bank, dziś jako mBank – od 20 lat świadczymy usługi Private Banking na najwyższym poziomie.

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lll NEWS

3-8 In Review Latest news 10 Dateline 11 Economy

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lll COMMENTARY

16-20

INTERVIEW WITH PIOTR GLIŃSKI

22-27 TTIP

12 Law Health care 13 FMCG Prosecco 14 Coaching Trust 15 IT Virtual worlds

28

lll FEATURES

28-31 Defense PMC training camp 32-36 Craft beer Tap revolution

38

lll ENTREPRENEURS

38-43 Booksy Managing your appointments 70-71 Cityscape Białystok 72-73 Ranking Book of Lists

45-68 LOKALE IMMOBILIA

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J U LY / A U G U S T 2 0 1 5 • W B J O B S E R V E R

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lll LIFESTYLE

74 Events Private Equity Diamonds 75 Events ABSL 76-80 Events Book of Lists gala 83 Gadgets 84-85 Travel apps 86-87 Warsaw in the summer 88 Culture Japanese art exhibition

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lll INREVIEW News highlights of the past month

>> DOMESTIC

Image: LOT

LOT announces new strategy L OT Airlines unveiled its new strategy and goals for the upcoming five years during a press conference. While the confirmation of three new long haul connections (Tokyo, Seoul, Bangkok) was the most eagerly anticipated announcement, Sebastian Mikosz, the president of PLL LOT, outlined several ambitious goals for the airline. Focusing on strong growth and development, LOT hopes to double in size by 2020. It’s new tagline, “#newLOT in New Europe” emphasizes the airline’s goal of connecting “New” or East Central Europe, and targeting a regional, rather than ethnic demographic.

In January, the airline will also re-establish connections to Barcelona, Belgrade, Düsseldorf, Yerevan, Chisinau, Zagreb, Gdańsk and Kraków.

In March, LOT will launch routes to Athens, Nice, Zurich and Beirut. The national carrier also said that it may announce additional connections in au-

tumn. Expanding its list of destinations will be accompanied with an expansion of its fleet to 70-80 planes.

“We have all the qualities to become a regional leader. We already maintain a strong position when compared to other carriers in New Europe, a large market that will continue to grow rapidly. Our Warsaw hub, the largest in this part of Europe, is perfectly situated to meet these demands. We are finishing our restructurization process with great success, and we are historically the main carrier connecting New Europe with North America; 86 years of history work in our favor in terms of brand recognition. These are just a few of the ways in which LOT’s accomplishments speak for themselves” highlighted Mikosz.

To accomplish such ambitious growth, LOT plans to focus its efforts on five main strategies: 1) the expansion of long haul flights, 2) development of the Warsaw hub, 3) increasing the number

of passengers to 10 million annually, 4) streamlining relations between ground, handling, service, catering and other operations and 5) encouraging a committed corporate team.

To accompany these strategies, LOT is also conducting an overhaul of its overall image. This means introducing new graphics, design, and color schemes, not only for service kiosks at airports, but also cabins and seating for all classes.

These changes will aim to not only increase the comfort of passengers on board, but also aid in orientation during check-in and while moving throughout the airport. Departing from its navy interiors, business class will now feature light blue seating with red accents, while economy and economy premium will be outfitted in shades of grey. Improved catering services as well as entertainment options hope to ensure that every passenger travels in the utmost possible comfort.

W B J O B S E R V E R • J U LY / A U G U S T 2 0 1 5

3

NEWS

Home.pl sold for over PLN 560 mln

CVC IN EXCLUSIVE TALKS TO BUY PKP ENERGETYKA London-based private equity CVC Capital Partners was picked for exclusive talks to buy PKP Energetyka, a power unit within Polish state railways PKP, the latter said in a statement.

Managing Director Sławomir Baniak told Bloomberg in an emailed statement that PKP wants to sell its unit in the third quarter. The company is selling its assets to reduce debt.

In June, two Polish newspapers Puls Biznesu and Parkiet said that only two entities, state-controlled Energa and private equity fund CVC had made binding offers to purchase PKP Energetyka. According to Parkiet, CVC’s offer was higher than Energa’s, which amounted to PLN 1.5 billion and PLN 1.3 billion respectively.

DOMESTIC INDUSTRY TO DELIVER DRONES FOR POLISH ARMY The Polish government plans to purchase 350 unarmed drones and MALE (Medium Altitude Long Endurance) drones for the Polish army. The bid for the unarmed drones will be offered only to domestic producers, the media reported.

The entire program is estimated to be worth nearly PLN 3 billion.

“We would like to address this order to the domestic industry, because we think that there is potential to build small unarmed drones in Poland,” said Tomasz Siemoniak, the Deputy Prime Minister and the Minister of Defence. Such a procedure is legal, because it cares for the national interest, Siemoniak explained.

State-controlled Polish Arms Group (Polska Grupa Zbrojeniowa) and WB Electronics are expected to bid for the unarmed drones contract. The government will probably turn to Thales UK or Israeli Hermes to supply the MALE drones.

4

Poland pledges to resettle 2,000 asylum seekers Poland has agreed to voluntarily accept 2,000 migrants from Syria and Eritrea by 2017, Poland’s Ministry of Internal Affairs informed.

“The deputy minister declared during an informal meeting with his counterparts in Luxembourg that Poland would be ready to host 2,000 people by 2017,” the ministry’s spokeswoman Małgorzata Woźniak said.

“Our goal is to show solidarity with other EU countries, solidarity which Poland has experienced before.” Poland had earlier refused to accept the European Commission plan imposing obligatory quotas.

At the Luxembourg meeting, ministries of internal affairs agreed to resettle 40,000 asylum seekers who are already in Italy and Greece.

Another 20,000 migrants coming from their countries of origin would be relocated around the bloc.

FIGURE OF THE MONTH

52%

IS THE PERCENTAGE OF POLES WHO SUPPORT THE INTRODUCTION OF THE SINGLE MEMBER CONSTITUENCY ELECTORAL SYSTEM (CBOS)

J U LY / A U G U S T 2 0 1 5 • W B J O B S E R V E R

German internet services group United Internet has purchased Home. pl, a leader on the Polish hosting market for around €135 million (roughly PLN 567 million), the media reported recently.

United Internet will additionally acquire €20 million worth in debt.

The entire value of the transaction is over 15 times higher than the financial results of the Polish firm, Rzeczpospolita daily stressed.

Home.pl will operate as an independent entity, and the new investor is not going to implement any changes regarding the board of directors.

Home.pl recorded over PLN 100 million in revenue in 2014, while its EBITDA was more than PLN 37 million.

The transaction has to be approved by the Polish antimonopoly watchdog UOKiK.

Images: Shutterstock,

Shorts

>> EU

PLN 9.67 MLN

is how much Polish students owe universities

>> FMCG

Sugar producer KSC expands to Greece A

mid the ongoing Greek crisis, Polish stateowned sugar producer Krajowa Spółka Cukrowa (KSC) is planning to buy its Greek competitor Cristalco Hellenic Idiotiki Kefalaiouchiki Etaireia, Polish daily Puls Biznesu informed. Expansion is forced by falling sugar

prices, the newspaper asserts.

“KSC’s development strategy foresees an intensification of the company’s commercial activity in the Central and Eastern Europe region,” said Marek Spuz vel Szpos, CEO of KSC. According to the compa-

ny’s spokeswoman Magdalena Bożko, cooperation with Greece’s Hellenic Sugar Industry is part of a strategy which has been executed for a few years.

The acquisition in Greece is not the company’s first foreign endeavor. In 2011, KSC bought Moldova Zahăr in Moldova.

68%

is the percentage of Poles who are for using medical marijuana.

NEWS

>> DEFENSE

Poland to service Bulgarian fighter jets B

6

90

dependent on Russia. It worries me very much and I would not like to continue in this way.”

Bulgaria’s contract with Russia expires at the end of September. “We need to repair six of our engines and we have made serious efforts to find an alternative,” Nenchev said. “We have held very dynamic talks with the Polish side for several months and I think we could sign a contract this month.” He also

was the number of Canadian soldiers deployed to Poland in late June

J U LY / A U G U S T 2 0 1 5 • W B J O B S E R V E R

added that the price offered by Poland was cheaper than Russia’s.

The Ukrainian conflict has forced Bulgaria to forge ties with its NATO partners. “I do not hesitate to say that after seeing the Putin regime’s particularly aggressive behavior with regard to a sovereign state, we cannot feel secure,” Nenchev said.

“We are negotiating with the Polish side, who are our partners in NATO and have managed to break away from their dependence on Russia.”

5% IS THE PERCENTAGE OF POLISH BILLIONAIRES WHO LOCATE THEIR ASSETS ABROAD. (BOSTON CONSULTING GROUP)

Image: Shutterstock,

ulgaria is seeking to cut dependence on Russia and will sign a deal with Poland to service MiG-29 fighter jets, serviced in Russia until now, Bulgaria’s Defence Minister Nikolay Nenchev was quoted as saying by Reuters.

“We will do everything possible to reduce our dependence on Russia,” Nenchev told Reuters.

“Bulgaria is the only NATO member that is almost 90 percent

W B J O B S E R V E R • J U LY / A U G U S T 2 0 1 5

7

NEWS

NO EU ROAMING FEES FROM MID-2017, INTERNET TO REMAIN NEUTRAL

FIRST POLISH KIDNEY TRANSPLANT CHAIN SUCCEEDS

The first Polish kidney transplant chain recently undertaken lasted nearly 12 hours and ended up a huge success. “Everything went just as planned,” Dr. Rafał Kieszek, one of the operating doctors told the Polish Press Agency.

The three patients wanted to be kidney donors for their relatives who needed a transplant but were unable to make a direct transplant due to incompatibilities in blood groups. Eventually, six patients in total decided to do a chain transplant, which had to be, and was approved by the National Transplant Council’s Ethics Committee.

“The donors alongside with the receivers are feeling well and the transplanted kidneys are working properly,” Kieszek said.

The surgery was undertaken by specialists lead by professors Andrzej Chmura, Artur Kwiatkowski and Kieszek at the transplant clinic of the Infant Jesus Clinical Hospital in Warsaw.

8

>> DOMESTIC

Lotos to spend PLN 6 bln on 3 key projects R

efinery giant Lotos Group will spend PLN 6 billion on three key projects in the coming years, said Paweł Olechnowicz, CEO of the company.

A delayed cocking installation is among the investments. It will help the company increase refining margins by $2 per barrel of oil, Olechnowicz told Rzeczpospolita and Parkiet.The other investments concern the development of the B4 and B6 gas fields located beneath the Baltic Sea. The third project foresees the development of the B8 gas field. “In this case, we were able to achieve a significant reduction in the cost of the investment, which will positively impact its profitability,” said Olechnowicz. Lotos Group has partly completed the process of securing the funds.

“In the coming weeks, we should sign another loan agreement, ensuring the implementation of the projects,” Olechnowicz also said.

>> DEFENSE

Slovakia to buy 30 Rosomaks P

oland’s Prime Minister Ewa Kopacz and Slovakia’s Prime Minister Robert Fico have signed a letter of intent regarding cooperation in the defense industry. The countries are in talks to jointly manufacture a vehicle that would be a combination of the Polish armored modular Rosomak vehicles and a Slovakian gun turret.

The vehicle, named Scipio, was recently presented at a fair in the Czech Republic.

Both parties have not excluded the possibility of exports to third markets.

PM Ewa Kopacz said at a press conference that Slovakia would buy 30 Rosomak Scipio vehicles for PLN 120 million. She added that this is a great success for the Polish economy, as the contract would secure 450 workplaces at the manufacturing plant and additional 3,500 workplaces at the producer’s suppliers.

Rosomak is a multi-role military vehicle produced in Siemianowice Śląskie. It is a licensed variant of the Finnish Patria Armored Modular Vehicle.

J U LY / A U G U S T 2 0 1 5 • W B J O B S E R V E R

Image: Shutterstock,

Mobile roaming fees will be abolished in the European Union starting June 2017, after lawmakers reached an agreement following exhausting discussions.

In line with the new regulations, EU citizens will pay the same prices across all 28-member states.

Charges have been slowly decreasing over the years and will decline further in April 2016. EU lawmakers have been working on this project since 2007.

What is more, EU members agreed on so-called net neutrality rules, which will forbid internet providers from blocking or slowing down access to particular content, services and applications.

“Every European must be able to have access to the open internet and all content and service providers must be able to provide their services via a high-quality open Internet,” the European Commission said in a statement.

In addition, firms would not be able to pay for prioritization of their traffic on the internet.

COMMENTARY / FMCG

P

rofesjonalny Wywiad Gospodarczy Skarbiec Sp. z o. o. is a subsidiary of the Skarbiec R. Nogacki Sp. K. law firm, which in consortium with American partner Sirius & Security LLC, offers services in the field of broadly understood business intelligence and counterintelligence, including: business security and VIP security. Our offer is addressed both to business and individual clients. We cooperate with state institutions and private entrepreneurs with Polish and foreign capital. Our structure comprises interdisciplinary teams of experts with professional experience in governmental agencies and financial investigations. We collect evidence in cases concerning: recovery proceedings/debt collection proceedings, economic law, criminal law, labor law, in the fields of unfair competition, divorce, maintenance, care or succession. We undertake challenges connected with fear of economic espionage or fraud on the part of contractors, the search for assets of dishonest debtors or illegal public enforcement actions, with entrepreneurs as victims. We are involved in activities related to bankruptcies of companies, hostile takeovers or family conflicts that affect the functioning of the company. We have at our disposal advanced solutions in the field of computer forensics, effectively preventing intrusion into networks and data leakage.

Due to the profile of our services, we help our clients in situations where they may lack experience - i.e. bankruptcy, divorce, unlawful criminal charges, unlawful seizure of property by tax authorities, as well as the unique situation of selling the company to an investor, or the acquisition of a competitor’s property. Our experts are able to provide effective support in business processes such as due diligence, search of assets hidden by debtors, analyzing unclassified trade and economic interests or hostile takeover. We use technical solutions, particularly in the field of computer forensics, which allow us to provide services at the highest level regarding detection and prevention of intrusions into networks and economic counter espionage through technical infrastructure of the company. We conduct penetration testing and analysis of: infrastructure, applications, networking, security, interactive Web applications, as well as evaluation of employees’ resistance to the risks of social engineering.

We perform comprehensive audits of technical security: security systems, technical infrastructure and information systems, including servers, workstations and production systems for medium and large enterprises. We carry out training for managerial staff and employees in the field of information security policy. We provide practical information on identification and neutralization of potential risks associated with the loss of key business information. We cooperate with experts in the field of psychological testing allowing assessment of the credibility and loyalty of employees, both current and future ones.

For companies that process sensitive data or operate in vulnerable markets with a high risk of unfair competition, we offer anti- wire taping and screening of private rooms, offices and vehicles, using top-class equipment, comparable to that used by the world’s intelligence agencies. In addition, we design and supervise the implementation of personal security systems, provide comprehensive personal security audits, analyses of security personnel and third parties i.e.: buildings administration personnel, cleaning companies, security and maintenance personnel. We are also a member of the Polish Debt Collection Association, the international Information Systems Audit and Control Association (ISACA) and a partner of the ”Institute of Computer Investigation” association. In cooperation with the Foundation Vis Magna, we support educational activities on business intelligence. We have obtained the following certifications: Reliable Company, Credible Company, Certificate of Business Credibility

by Bisnode.

14

JUNE 2015 • WBJ OBSERVER

NEWS / ECONOMY

CALENDAR

JULY-SEPTEMBER ARABIAN HORSE DAYS

CHARITY BEACH VOLLEYBALL TOURNAMENT

JULY

30

AUGUST SEPTEMBER

31-4

Event: This is the 6th annual charity beach volleyball tournament organized by the commercial real estate sector. This year, the proceeds will be donated to the “Help on Time” Foundation for Children.

Location: La Playa Bar, Wybrzeże Helskie 1/5, Warsaw

EUROPEAN FEDERATION OF ANIMAL SCIENCE ANNUAL MEETING Event: The most significant forum for the exchange of information and discussion of animal production issues in Europe, and for highlighting achievements in animal science.

Location: Warsaw University of Life Sciences, Nowoursynowska 166, Warsaw Web: eaap2015.orgl

AUGUST

14-16

Event: The biggest annual auction of Arabian horses in Poland. Buyers from all over the globe come to bid on some of the best mares and stallions in the world.

Location: Janów Podlaski State Stud, Janów Podlaski Web: prideofpoland.pl

EUROPEAN ROVER CHALLENGE

SEPTEMBER

5-6

Event: The biggest family event in Central and Eastern Europe for science and technology featuring Martian rover competitions, robot exhibitions, and science workshops and presentations.

Location: Regional Science-Technology Centre, Podzamcze 45, Chęciny Web: roverchallenge.eu

ECONOMIC FORUM

SEPTEMBER

8-10

10

J U LY / A U G U S T 2 0 1 5 • W B J O B S E R V E R

Event:The 25th meeting’s theme is “Towards a Resilient Europe: Strategies for the Future.” The event includes six plenary sessions, over 100 panel discussions, and more than 3,000 guests representing 60 countries.

Location: Krynica-Zdrój Web: forum-ekonomiczne.pl

NEWS

/ ECONOMY

FACTS AND FIGURES Latest Latest data data Latest Latest data Latest datadata

WARSAW WARSAWSTOCK STOCKEXCHANGE EXCHANGE AS ASOF OFJUNE JUNE2015 2015 WARSAWSTOCK STOCK EXCHANGE WARSAW STOCK EXCHANGE WARSAW EXCHANGE ASOF OFJUNE JUNE2015 2015 AS OF JUNE 2015 AS

474 474 474 474 474

4.7% 4.7% y/y y/yretail retail 4.7% 4.7% sales 4.7% salesgrowth growth

Number Numberofoflisted listedcompanies companies Number of listed companies

Number of listed companies Number of listed companies

y/y retail y/y retail y/y retailsales growth

Trade Trade volumes volumes TradeTrade volumes volumes

sales growth sales growth

2.8% 2.8% y/y y/yindustrial industrial 2.8% output outputgrowth growth

Trade volumes

-4.7% -4.7% -4.7% -4.7%

y/y industrial 2.8% 2.8% output growth y/y industrial

Shares Shares

PLN PLN16.2 16.2billion billion Shares Shares PLN 16.2 billion Bonds Bonds PLN 16.2 billion PLNPLN 16.2 billion billion 67 billion Bonds PLN67 PLN 67 Bonds billion Bonds Futures Futures 67 billion PLN 67 PLN billion PLN 4.01 PLN 4.01million million Futures PLN 4.01 million Futures Growth ofFutures index Growth ofmain main index(WIG), (WIG),ytd ytd 3.72 % %million 4.01 million PLN Growth3.72 of4.01 mainPLN index (WIG), ytd 3.72 % index (WIG), of main Growth of mainGrowth ytdindex (WIG), ytd Shares

-4.7%

Y/Y Y/YRETAIL RETAIL SALES SALESGROWTH GROWTH Y/Y RETAIL SALES GROWTH Y/Y RETAIL

y/y industrial output growth output growth

Y/Y RETAIL SALES GROWTH SALES GROWTH

3.2% 3.2% 3.2%

y/y y/yaverage average salary salarygrowth growth y/y average salary growth

3.2%3.2%

y/y averagey/y average salary growth salary growth

3.72 % 3.72 % “We are placing our

Promising decline

Year-on-year CPI inflation in Poland, -0.5 -0.5 April 2014 – April 2015

12.5

11.5 11.5

12

Jun '14 Jun '14 Jul. '14 Jul. '14 Aug. '14 Aug. '14 Sep. ‘14 Sep. ‘14 Oct. ‘14 Oct. ‘14 Nov. ’14 Nov. ’14 Dec. '14 Dec. '14 Jan. '15 Jan. '15 Feb. '15 Feb. '15 Mar. '15 Mar. '15 Apr. '15 Apr. '15 May. '15 May. '15 Jun. '15 Jun. '15

Jun. '15

Apr. '15

May. '15

Mar. '15

Jun. '15

Jan. '15

Feb. '15

Apr. '15

May. '15

Dec. '15 '14 Jun.

Mar. '15

Oct. '15 ‘14 Apr.

Nov. '15 ’14 May.

Jan. '15

Dec. '14

Oct. ‘14

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Oct. ‘14

Sep. ‘14

Jul. '14

Aug. '14

Jun '14

May. '15

Jun. '15

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Jan. '15

Dec. '14 Jun. '15

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Jun. '14 '14 Dec.

Oct. ‘14

Nov. ’14

10

Sep. ‘14

10

Jul. '14

10.5

-2 Aug. '14

-1.5

-2 Jun. '14

-1.5

Jul. '15 '14 Jan.

11

10.5

Jun '14 '14 Dec.

Sep. ‘14

11.5

Nov. ’14

12

10

11

-1

-1

12

1010 12.5

10.5

11.5

Jun. '15

Apr. '15

May. '15

Mar. '15

Jan. '15

Feb. '15

Nov. ’14

Jul. '14

Jun. '14

-0.5

-0.5

Dec. '14

Jun. '14 Jun. '14 Jul. '14 Jul. '14 Aug. '14 Aug. '14 Sep. ‘14 Sep. ‘14 Oct. ‘14 Oct. ‘14 Nov. ’14 Nov. ’14 Dec. '14 Dec. '14 Jan. '15 Jan. '15 Feb. '15 Feb. '15 Mar. '15 Mar. '15 Apr. '15 Apr. '15 May. '15 May. '15 Jun. '15 Jun. '15

0

-2

Oct. ‘14

0

Sep. ‘14

-1.5

11

12.5

0.5-2-2

1111

10.5 10.5

Nov. ’14

-1.5 -1.5

Aug. '14

-1

0.5

11.5

Jul. '14

-1-1

Aug. '14

0

-0.8% -0.8%

1212

00

-0.5

-0.8% -0.8% -0.8%

12.5 12.5

0.5 0.5

Deflation holding 0.5

bet on developing a hub in Warsaw. I am was wasPoland's Poland'sCPI CPIinflation inflationsure that thanks to flights to Tokyo our was Poland's CPI inflation offer will be an even Poland's CPI inflation was Poland's was CPI inflation better alternative for larger airports in Europe,” said Steadily down LOT's CEO Sebastian Poland’s registered unemployment rate, Mikosz reporting April 2014 – April 2015 about the new longdistance connection from Warsaw to Tokyo which LOT is launching in January 2016.”

Jun '14

Data source: Warsaw Stock Exchange, Central Statistical Office

Poland's unemployment rate stood at 10.8 percent at the end of May, compared with 11.2 percent a month before, the Central Statistical Office (GUS) informed. In May 2014, that unemployment amounted to 13.5 percent.

The number of registered unemployed totaled 1.70 million people and was lower by 80,000 compared with the end of April.

W B J O B S E R V E R • J U LY / A U G U S T 2 0 1 5

11

COMMENTARY / LAW

PAWEŁ HINCZ LEGAL COUNSEL, WKB WIERCIŃSKI, KWIECIŃSKI, BAEHR

JULIUSZ KRZYŻANOWSKI LAWYER, WKB WIERCIŃSKI, KWIECIŃSKI, BAEHR

On

June 25, 2015, a Polish delegation led by the Minister of Health, Marian Zembala, participated in a meeting at the European Commission to discuss the Ministry’s “Policy Paper for Health Care 2014-2020.” The policy paper is the most important document concerning the strategy for disbursement of European Structural and Investment Funds (ESIF) in the Polish health care system.

The Minister negotiated several conditions (ex-ante) that are essential for the immediate launch of investments in the Polish health care system that are to be co-financed by EU structural funds. The estimated value of indispensable investments is PLN 12 billion, constituting almost 20 percent of the annual expenses of the National Health Fund (NFZ).

The core objective of the meeting was to agree to conditions for efficient commencement of projects aimed at: the development of preventive medicine, medical personnel education, the creation and development of medical simulation centers within medical universities, care quality improvement for elderly people, the implementation of solutions for improving the Polish health care system and infrastructure development for medical service providers.

The EU structural funds are expected to help make the Polish health care system more efficient, modern and in-

12

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novative, resulting in a significant improvement in patient care quality. The Ministry of Health anticipates that the “health-needs maps” program, under which it is currently preparing geographical priorities for allocation, will enable EU funds to be distributed so as to reduce inequalities in health care availability across Poland.

The co-funding for the Polish health care system will come from both Polish central operational programs – the “Knowledge, Education and Development Operational Program” and the “Infrastructure and Environment Operational Program” and regional operational programs.

The Ministry of Health expects the first calls for proposals for the EU funds to be launched in Q3 2015, and that these will relate to day nursing homes and medical simulation centers. In terms of administration within Poland, the “Steering Committee for ESIF intervention in the health care sector” will undertake the most significant work going forward, i.e. recommendations for criteria of project selection and “green lights” to non-competitive projects. The Steering Committee, imposed on Poland by the European Commission, shall be appointed by the Minister of Infrastructure and Development soon and led by the Minister of Health.

An important role with respect to implementation of the Steering Committee’s recommendations will be played

by Polish monitoring committees for each operational program, as well as institutions managing and implementing them at a central and regional level. u

Images: Shutterstock

Billions of złotys from the EU for Polish health care

COMMENTARY / FMCG

COMMENTARY / FMCG

TOMASZ PAWLICKI BRAND MANAGER OF CIN&CIN

Prosecco Italian sparkling wine is in!

The

tive blue (DOC) like for example Cin&Cin Prosecco or brown (DOCG) label contains the original product of the highest quality. Prosecco is produced from a very late grape harvest named prosecco. The wine is fermented in large, airtight containers where its natural bubbles, so loved by connoisseurs of sparkling wine, are formed.

It is said that Italians get their all-day good mood from the prosecco bubbles.

Prosecco can be found in two varieties: frizzante (lightly sparkling) or spumante (strongly sparkling).

The sugar content is varied as well: dry (20-35 grams of sugar per liter), extra dry (12-20g / liter) and brut (up to 15 g / liter).

Prosecco is not only an excellent sparkling wine, but also the essence of Italian style and a perfect summer smash hit. Prosecco spumante from the Veneto region, is a sparkling white wine with light straw color, a delicate smell of acacia flowers, citrus fruit, peach, pear and apricot. This perfect combination of delicate sweetness with floral aromas goes well with light dishes, appetizers and desserts. The Italians say that you can drink prosecco both solo as an aperitif or with added fruit juice or liqueur in classic cocktails such as Puccini, Bellini or Veneziano. It tastes best when served at 6-8°C in a classic champagne glass – it is then light, very fruity and refreshing, perfect for fans of the Italian way of life. u

Image: Shutterstock

history of Prosecco dates back to the nineteenth century when an Italian, Antonio Carmena along with three of his friends opened a company whose aim was to produce champagne called prosecco from a local grape variety. The objective was not realized but the effect of their efforts turned out to be surprising. They obtained sparkling wine that was fully embraced by the local market and quickly became one of the most recognizable wines, not only in the Veneto region, but also throughout Italy. Prosecco - the sparkling wine - once treated as an everyday beverage, associated with Venetian streets and lively trattorias, is gaining wider recognition today in more upscale societies and is served at glamorous parties, fashion shows and exhibitions instead of champagne. The Prosecco consumption trend has thrived recently almost everywhere resulting in higher sales volume than champagne for the last year.

The Italians have ensured a proper recognition of prosecco and its constant high quality. In 2009, prosecco obtained the status of DOCG (Denominazione di Origine Controllata e Garantita) which guarantees the highest quality of wine from the Veneto, Valdobiaddene, Vittorio Veneto and Conegliano regions. With regard to this certificate we are certain that a bottle with a distinc-

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WBJ OBSERVER • APRIL 2015

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COMMENTARY / COACHING

ROBERT ZAGOŻDŻON COACH, ENTREPRENEUR SOUL OF BUSINESS

The power of trust

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any companies, manage their information in an undemocratic way. The person in charge keeps the knowledge to himself (or herself), thinking that one with the access to the information has the power.

In today’s multimedia world, such a thing should not be a surprise. Information can be a very successful and often dangerous tool of power. This can be often seen in politics and political marketing. However, managing your employees through wide access to information can be just a stepping stone to the next level – managing through trust.

Information and competencies should be passed onto the people who can make good use of them.

Entrusted with such tasks promptly, they can takeover the supervisor’s tasks. This way, the employees can do the tasks of their bosses, who in turn can switch their attention to more pressing duties. Mountain climbing is a perfect analogy for this solution. The leader selects the path and secures hooks in the rocks for him and the partner below him. But in order for both partners to ascend and reach the top, there has to be mutual trust. If it’s lacking, than the decision making process becomes far more difficult and the ability to take risks is gone.

The same can be applied to business relations. Let’s start with self-trust. If the mountain climber doesn’t trust his own abilities, he doesn’t dare try to climb another steep face, as he is afraid of failing and even dying in the process. If the person trusts himself in life and in business, he becomes authentic and happy. If you’re planning to enter into a relationship, whether personal or professional, the trust issue is the fundamental base of any connection. If you do not trust yourself, you will not be able to build trust with anyone else. With bigger trust, the results might come quicker and easier. To

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put it in layman’s terms – with more trust comes more influence. Influence on different levels – managing, processes execution, ability to manage people and motivate them to act further (excerpt from the “Bogiem a Prawdą” book). u

COMMENTARY / IT

ROBERT PASZKIEWICZ MARKETING AND BUSINESS DEVELOPMENT DIRECTOR, ATMAN

Living in the virtual world

Images: Shutterstock

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undane though frustrating events, such as train ticket reservation systems crashing and problems with even the biggest airlines’ operations, make one realize just how much everyday technology and information systems, or simply just the internet, have become completely inseparable from our daily lives.

Nowadays, it’s hard to distinguish the virtual world from the real. We’ve substituted paper boarding passes with mobile ones, check-in at the airport with online check-in, a bus ticket kiosk with a mobile app, and we are increasingly keen on shopping from the comfort of our couch and laptop than conquering the vast expanses of shopping centers. We can see a similar trend in applications. Rather than checking our emails on our home computers, we are more likely to use an app on our mobiles. We use digital maps connected to GPS systems rather than paper maps (often publishing companies aid in this transition, abandoning classic maps in favor of digital versions). More and more physical “boxed” programs and applications are being pulled from the shelves, transitioning to purchases for download online. Not only new businesses, such as increasingly popular start-ups (approximately 100,000 start-ups are formed annually worldwide, the majority of them relying on the internet) are following this model; many large, well developed tech companies from Silicon Valley are rapidly transitioning to this model as well.

The changing IT trends are also visible in the numbers themselves. In 2010, the domestic cloud computing market was worth $35 million; two years later the number had doubled. Currently, the value of the cloud market is expected to surpass $200 million1 by 2017.

Specific services and systems, such as SaaS (Software as a Service) offered via cloud computing are contrib-

uting to this exponential market growth. According to the IDC, SaaS and other cloud applications on the market were worth $39.3 billion in 2013. In 2018, it is expected to rise to $100 billion. Analysts estimate that growth in this market will reach 20 percent annually2.

Though our lives are so intertwined with technology, in many instances its presence often goes unnoticed. When your card hovers over a payment terminal, you don’t consider the number of servers, transaction systems, or the kilometers of fiber optic cables which carry your information between the shop you’re standing in and your bank. What would happen if, all of a sudden, one of these elements stopped functioning?

We should remember that, after all, a system is only as strong as its weakest link.

Data centers work to ensure that these systems continue to function properly. They are responsible for a wide variety of tasks: they store troubleshooting solutions and applications, gather vast amounts of data, perform transactions, and enable us to communicate via our mobiles and video conferences. Professional data centers must be properly secure, both physically (security, monitoring, rights of access) and from a technical standpoint (adequate power management, cooling systems, appropriate server solutions). This all ensures that the customer at the other end of the system is serviced quickly and seamlessly. If all parts of the system function correctly, the customer does not even realize the magnitude of technical power that is necessary to perform a seemingly simple task. Thus, when choosing an online application – whether it’s an invoicing system, or email – it’s important to remember how the system was created, as well as where it is physically located, even if it’s based on cloud. u 1 2

IDC, Poland Cloud Services Market 2012 and 2013-2017 Forecast.

IDC, Worldwide SaaS and Cloud Software 2014–2018 Forecast and 2013 Vendor Shares.

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INTERVIEW / PIOTR GLIŃSKI

PLANNING AHEAD

PROFESSOR PIOTR GLIŃSKI, SOCIOLOGIST AND ECONOMIST, THE CHAIRMAN OF THE PROGRAM COUNCIL OF LAW AND JUSTICE (PIS), SAT DOWN WITH WBJ OBSERVER TO TALK ABOUT THE ESSENCE OF PIS’ ELECTORAL PROPOSALS EXPRESSED IN ITS MESSAGE OF “GOOD CHANGES”

I N T E R V I E W B Y E WA B O N I E C K A

WBJ Observer: An announcement by Law and Justice (PiS) leaders of your detailed proposals was made – rejecting the present retirement bill, raising the income tax threshold, providing additional subsidies for children – but can you elaborate on the fundamental direction of PiS’ “Good Changes” proposal for Poles?

Piotr Gliński: We are discussing some other details, but we are absolutely certain about our aims and direction of the changes and proposed solutions. First, I want point to economic changes. Such changes for Poland will mean the growth of economic performance, development based on innovation, an increase in investments and just redistribution of economic benefits. The positive economic changes will result in an increase of people’s affluence, primarily the people who live in very difficult conditions or in poverty. There are three million Poles who are economically excluded and one-third of Polish children live near poverty and are socially and culturally marginalized.

Secondly, we have to prepare our country

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for coping with future economic challenges which will occur after Poland stops receiving EU funds. If we don’t build the economic, social and cultural potential for development, we will face a big crisis in the future. We see what is happening in Greece, Spain and Portugal, where European funds were easily spent by politicians and are currently ending, but steps for resolving economic and social problems were not taken.

In the European Union – and in other democratic countries – there is an ongoing debate among politicians and economists about the shape of the present capitalist system, the role of the state in economic and social domains.

Does PiS want to increase the role of the state in those fields?

Yes. We are for the bigger role of the state in shaping economic and social policy.

Strict economic liberalism is now in decline and many economic dogma are obsolete. So in my view, the economic policy of our state should be based on an elastic approach and the use of different mecha-

INTERVIEW / PIOTR GLIŃSKI

Images: Law and Justice

“THE ECONOMIC POLICY OF OUR STATE SHOULD BE BASED ON AN ELASTIC APPROACH AND THE USE OF DIFFERENT MECHANISMS FOR OBTAINING ECONOMIC GROWTH.

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We want to introduce a new tax code to give the taxpayer and the tax office equal rights and provide consistent interpretations of all tax matters. It will apply to all economic entities including foreign firms which function in our country and pay taxes here. We will not force our earlier proposal of introducing a third Personal Income Tax bracket after consideration that it would not be economically useful, as it would concern a small group of people. We will keep the present structure of the PIT, while raising the income tax threshold.

I want to underscore very strongly that our motion for increasing the role of the state will result in improved quality of life for all people, among them, young Poles.

For example, we will introduce a special program for the provision of affordable flats for rent by involving state and local authorities in providing free land plots for construction of the buildings, hence reducing the cost of these investments. That

program will also include state facilitation of cheaper credit procurement for people renting the flats.

PiS proposed a “re-polonization of the banks,” which evoked anxieties in the financial sector. What would it mean in practice?

We will introduce two sector taxes. One will apply to retail chains, the second will apply to banks. The banks operating in Poland earn a lot, the most in Europe. They have profits of PLN 16 billion each year and 70 percent of those banks are foreignowned and not interested in supporting the development of our economy. We want to change those proportions. There are three ways to do it. First, we can establish new Polish banks. Second, we can strengthen Polish capital in the existing Polish banks. And third, we can buy some foreign banks operating in Poland. This can be done by public and private entities.

Image: Shutterstock

nisms for obtaining economic growth.

There is no one universal doctrine which is best. During our meetings, many experts and economists, among them Nobel laureates, pointed out that for economic development, it is now necessary to exercise various mechanisms, while presenting the clear aim of state activity.

I am for the active role of the state in shaping Poland’s economic policy in order to achieve the fundamental aims proclaimed

by PiS: economic growth and just redistribution of its benefits. It does not mean that the state is replacing the role of entrepreneurs. In our economic strategy, the major domain of the economy is left to the private sector. We want to introduce incentives for investment and innovation by all economic entities and the private sector will be encouraged to innovate.

For instance, we will introduce the Card of Small Entrepreneurs within the framework of which the CIT tax will be lowered to 15 percent for that group.

INTERVIEW / PIOTR GLIŃSKI

I’m not using the term “re-polonization of banks,” which is in my view misleading.

Our proposal means that steps would be taken leading to the strengthening of Polish banking capital and to some changes in the present banking structure.

Nonetheless, there are members of your grouping, like Jarosław Gowin, that stress the need for “economic patriotism,” while maintaining a liberal stand on the economy, is that not a contradiction?

I don’t think so. The statement “economic patriotism” referrs in some way to the policy of Kazimierz Bartel, Prime Minister in 1926-1930, when Poland was developing its industry. Now PiS, also wants to rebuild some sectors of our industry, which were neglected during eight years of Civic Platform (PO) rule. I consider it to be a scandal that only now, during the election

“THE BANKS OPERATING IN POLAND EARN A LOT, THE MOST IN EUROPE. THEY HAVE PROFITS OF PLN 16 BILLION EACH YEAR AND 70 PERCENT OF THOSE BANKS ARE FOREIGNOWNED AND NOT INTERESTED IN SUPPORTING THE DEVELOPMENT OF OUR ECONOMY. campaign, Prime Minister Ewa Kopacz announced a plan for developing Silesia, while PO’s policy ruined the mining industry. Reviving that sector is linked with Poland’s need to have a firm stand towards the EU’s climate policy and if needed, to veto some provisions that are harmful to our mining sector.

As the second fundamental issue in PiS’s “good changes” program, you underline foreign policy. Can you elaborate on this?

Poland should have a firm presence in international and European Union policy,

with its own national identity. It means defending our political, economic and security interests, which the present government is not effectively doing. That weakness results in our voice being disrespected in important matters, like the exclusion of Poland from negotiations dealing with the Ukrainian crisis and aggressive Russian policy.

It seems that PO does not understand how strong the competition between EU countries is in defending their national interests. Poland’s policy in the EU should be clever and assertive, as Prime Minister Orbán is doing in many fields for Hungary.

We have to promote our national interests in dealing with such countries like Germany, France and other members. It requires a firm Polish stand and Andrzej Duda shows that it’s possible. As president-elect, Duda presented to the German side four conditions which must be respected in our relations with Germany. And such a

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stand was accepted. We want to develop good relations with Germany, we have close economic ties with that country, but it does not mean following it in the EU from a weaker position. While at present, the Visegrad Group alone is too weak to enforce the interests of our region, our policy in the EU has to be built on various alliances, sometimes established ad hoc, depending on our interests. And we have to present such a firm and argumentative stand also towards the USA, pressing for the establishment of permanent American bases in Poland.

You want to change the structure of the ministries in Poland and reform the justice system. In what direction?

Yes, we want to change our internal structure, because at present it’s inadequate.

We will liquidate the Ministry of the State Treasury and establish a Ministry of Development and a Ministry of Energy. Our justice system and legal policy are in total decline. Everybody can see it. We will return the responsibility of the state for the

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“POLAND SHOULD HAVE A FIRM PRESENCE IN INTERNATIONAL AND EUROPEAN UNION POLICY, WITH ITS OWN NATIONAL IDENTITY. IT MEANS DEFENDING OUR POLITICAL, ECONOMIC AND SECURITY INTERESTS. whole justice system, which will lead to an improvement in its functioning.

Very important are the necessary changes in supporting science and universities, to involve them in development of innovation. At present, only 0.39 percent of the GDP is devoted to science and it is crucial to raise state financial support for this, because economic, social and civilization progress is linked with the development of science. PO governments have not looked at those matters in a broader perspective.

Do you want to conduct the proclaimed changes instantly, in a revolutionary way?

Our intentions are clear: we want to change Poland, but we are aware that every revolution is bad, because it brings

even unintended negative effects. We will be changing Poland step-by-step. The essential thing is that those changes should be multi-directional, not only from top to bottom. Very important is the development of civil society. We have in mind different kinds of reforms in that domain, the aim is to activate citizens, to raise the level of citizens’ consciousness and responsibility. To give people the chance to use freedom for changing Poland for the better. In such conditions, people become innovative, there is only a need to help the younger and older people to use their creativity, whether in business or for educational development. We want to help all Poles, whose activity is now blocked by overwhelming bureaucracy. I want to present to president-elect Andrzej Duda, a new idea of creating the Polish Corps of Volunteers, similar to the American Peace Corps established in the USA by President Kennedy. I think that many young Poles would like to be active in such Polish corps, helping people in our country and maybe abroad. It could be a magnificent lesson, preparing our youth for life. u

Image: Law and Justice

INTERVIEW / PIOTR GLIŃSKI

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COVER STORY / TTIP

THEGAME CHANGER A LANDMARK EU-US TRADE MEGADEAL IS BEING NEGOTIATED WITH A GREAT DEAL OF CONTROVERSY SURROUNDING IT. WBJ OBSERVER GIVES THE INS AND OUTS OF THE ONGOING PROCESS

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ince 2013, the US and the EU have been negotiating a deal that would create a transatlantic market of 800 million people, encompassing one-third of global trade. Supporters of the Transatlantic Trade and Investment Partnership (TTIP) argue that it will bring economic benefits by cutting red tape and bureaucratic procedures, as well as by opening both markets to services and public procurement. Reducing trade barriers is supposed to increase exports and create jobs. From the standpoint of its opponents, the free trade accord is crafted to strengthen and protect corporate interests, it poses a threat to democratic procedures and would result in watered-down quality standards. Over the last two years, the debate on the agreement has become so polarized that the likely consequences of implementing it may seem muddled.

Economic benefits Proponents of the deal argue that TTIP will give a growth impulse to the stagnating European economy. Yet, if we take a closer look at the numbers, it turns out that they are not jaw-dropping. According to the report assessing the economic impact of the partnership compiled for the European Commission in 2013, the agreement could

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bring €119 billion for the EU as a whole per year, which translates into €10 per person a month, starting in 2027. What seems to be pocket money, will only materialize in an optimistic scenario, in the aftermath of removing 50 percent of the so called non-tariff barriers (NTBs) caused by regulations or a regulatory approach. As the EU-US trade is already virtually open with an average tariff rate below three percent, benefits are to come from eliminating discrepancies in areas like consumer safety and health matters, accounting standards or environmental management, among others. In a slightly less optimistic variant, with only 25 percent of NTBs removed, the profits diminish by half, bringing €5 a month for an average Pole.

And this would only be true if the income was spread equally across Europe, which is unlikely. In fact, the appendix to the report says that by embracing TTIP, the Polish economy is expected to grow merely by an additional 0.2 percent, compared with 0.5 percent for the EU and 0.31 percent for the US. When asked by WBJ Observer about the disappointingly modest benefits from the partnership, Wojtek Talko, a policy coordinator at the European Commission, replied that the agreement would push Polish exports, as many commodities

Image: Shutterstock

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COVER STORY / TTIP

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manufactured in the country go to Germany from where they are re-exported outside the EU. Currently, this export route creates some 200,000-300,000 workplaces in Poland. But what’s really at stake, he assured, is improved regulatory cooperation that would elaborate, for instance, which certificates or licenses would be recognized by both parties.

“Consider the embargo on apples introduced by Russia last year. If Poland was on the lookout for new export destinations and eyed the American market, there would be no chance to sell them from day to day as the US doesn’t recognize European phytosanitary tests,” Talko explained. “What we are trying to do is to sit down and see which standards could be

Diversification of energy sources may turn out to be the biggest strategic benefit coming from the deal for Poland.

accepted by both sides,” he added. Thus, the expansion of the free trade zone with the US would create opportunities for European and Polish companies by making procedures smoother and exports easier.

Nonetheless, it is up to them whether they will be able to reap benefits from the partnership.

Andrzej Dycha, a deputy minister of the economy, added that the TTIP will bolster Poland’s position in terms of attractiveness for investors. As the agreement encompasses service market liberalization, Polish companies would be allowed to win contracts in the US, in the same manner as it is happening right now within the European common market.

Since every free trade agreement creates winners and losers, the Ministry of the Economy expects that the electrical and machinery sectors will be amongst the deal beneficiaries. The chemical sector, however, may face problems due to the US’ fracking revolution which has resulted in lowering energy prices on the other side of the Atlantic, giving American companies a competitive advantage. To protect Polish firms, the government is requesting an opening of the energy market, hoping that Europe will be able to buy cheaper gas and oil.

Apart from that, it is advocating a 6 percent tariff for fertilizers for the next 10 years to fight against a flood of cheaper, American products.

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Transparency Optimism regarding the deal is not equally shared throughout Europe. The European Citizens’ Initiative (ECI), an alliance of 480 European organizations, have already raised more than two million signatures in an online petition against the TTIP. One of the reasons for discontentment is a lack of transparency, as the agreement is negotiated behind closed doors. Following civil society action and pressures from the European Ombudsman, the new European Commissioner for Trade, Cecilia Malmström, reviewed the transparency policy and decided to publish some documents, including extensive reports on the outcome of the negotiating rounds. The US’ stance remains much stricter, though, as only a few officials, who are barred from divulging information, have access to the classified documents.

Although Juncker’s Commission made a turnaround in terms of transparency, it hasn’t fully satisfied the activists. “TTIP will completely change our reality, and if something with such an impact is being negotiated, we should know much more and the scope of consultations should be much broader,” says Roland Zarzycki from Instytut Globalnej Odpowiedzialności (Institute for Global Responsibility), an NGO that operates under the umbrella of the ECI. He is referring to the fact that, albeit documents are published and the meetings of high officials have been made public, the names of those with whom they meet are lacking and information on the sittings of the lower

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orders is missing. Given that an estimated 3,000 lobbying entities target European institutions, it fuels concerns that big business will find the right way to get its way. “With 88 percent of lobbyists being corporate lobbyists, TTIP is not an agreement between European and American societies. It’s a deal between corporations,” Zarzycki said. But advocates tone down fears, convincing that it would not be reasonable to show your hands during negotiations. Once they are finished, the full text will be announced and put to a vote in the EU parliament and in member state parliaments.

Investor-State Arbitration The list of contentious matters is longer.

Perhaps the most controversial issue is the inclusion of an Investor-State Dispute Settlement (ISDS) clause, a legal mechanism that allows a foreign investor to bypass national courts and bring the matter before an international tribunal made up of corporate lawyers, if the company deems that its interests were compromised by new laws or changes in policy. Such a tribunal first appeared in a deal between Germany and Pakistan in 1959, with an intention to protect investors from expropriation. Currently, there are nearly 3,000 bilateral investment treaties (BITs) all over the world with the arbitration clause.

ISDS opponents voice their doubts whether this legal mechanism is needed at all, since TTIP is a partnership of two highlydeveloped regions with stable institutions

and judiciaries, where risks of expropriation are virtually non-existent. In fact, they argue, the arbitration clause has no impact on the level of investments in a country, with Brazil serving as a prime example of a state that withdrew from ISDS clauses, but still retained large volumes of FDIs. “It is the size of the market and its competitiveness that attracts investors and not the fact that a host country has or doesn’t have the ISDS,” Zarzycki said. Opponents go on arguing that the arbitration serves purely as a protection for corporate interests, since a country can only defend itself and has nothing to win.

According to them, the soaring number of new ISDS cases (from around 10 a year in 2000 to around 50 last year) proves that large multinationals have tapped the opportunity and are abusing the mechanism in order to increase their profits.

But what worries skeptics the most is a threat that the implementation of the arbitration in TTIP would force governments, afraid of getting sued for huge compensations to “censor” themselves and back out of introducing new regulations. They cite the Vattenfall versus Hamburg case, in which the Swedish utility launched proceedings at the World Bank’s tribunal (ICSID) in 2009, demanding €1.4 billion in compensation.

The city’s government had wanted to impose several restrictions on water usage by Vattenfall’s power plant due to environmentalist fears that the facility had a negative impact on the Elbe river. Two years later, Vatenfall dropped the case in the tribunal and settled

Image: Shutterstock

COVER STORY / TTIP

COVER STORY / TTIP

} with the country pushing the Germans to withdraw from the planned regulations. The dispute created distrust in arbitration among Germans, with Hamburg city senior officials admitting that “the tribunal increased pressure on them to settle.” Since then, Vattenfall has filed yet another claim against Germany seeking €4.7 billion compensation for phasing out nuclear power. The case is still in arbitration.

“If Vattenfall had sued Germany in a local court, would we say that German courts are not fair?” Talko asked. He admitted that the country ought to be in a stronger position in a dispute than a company, but cannot position itself above the law. He assured that TTIP will bring more transparency and will resolve unclear matters that were in the ISDS clauses

incorporated in agreements signed earlier. In the case of Poland, it will replace the country’s unfavorable arbitration agreement with a more modern one. In fact, Poland incorporated the ISDS mechanism with the US in a deal signed in 1990. ”That agreement made us look as a safe place in the eyes of investors. American investments have created up to 200,000 workplaces in the last 25 years,” Dycha said. But as Poland’s negotiating position was poor back then, the arbitration rules were not beneficial for Poland. To date, Poland is the eight most sued country by American corporations in the world. Due to this, the Ministry of the Economy doesn’t oppose the ISDS in TTIP, as it would impose time limits for investors’ claims and will introduce many exemptions

To date, Poland is the eighth most sued country

by US corporations in the world.

in areas over which the country can be sued.

In short, it should reduce the risk of aggressive claims by US companies. “Poland would not be liable for regulations legislated by the European Commission. From the point of view of the Polish taxpayer, this a good solution,” Dycha added. Opponents, however, keep on advocating withdrawal from the arbitration completely.

If the ISDS has no impact on the level of foreign investments, why should we choose “the lesser evil?” they ask not without reason. Their discontentment is starting to bear fruits. Recently, the European Parliament has adopted an amendment to the ISDS clause calling for an introduction of a mechanism where cases would be dealt with by “publicly appointed, independent, professional judges [in] public hearings.”

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COVER STORY / TTIP

[

Race to the bottom?

As the benefits from the partnership are to come mainly from removing regulatory differences, further concerns are voiced that the process will launch a race to the bottom, a kind of deregulatory spree. The US is believed to have much looser regulations in the food sector for instance, where even as much as 80 percent of processed food may contain an ingredient from a genetically engineered crop. In turn, EU has the most

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stringent regulations on GMO in the world, which may lead to the conclusion that both parties would have to compromise. In this case, Europe would be expected to partially give up its firm restrictions.

“It has little to do with reality,” Talko assured. “The truth is very simple: Anything that is forbidden on the European market will not instantly become available after the deal is signed. Every food product will have to be attested by the European Food Safety

}

“GMO and food safety issues are excluded.

The EC has no mandate to negotiate on that.”

Image: Shutterstock

The estimated economic impact: 800 mln consumers will make up the joint EU-US market. €119 bln is how much the EU economy will grow annually.

1.2% is the estimated increase of Poland’s exports.

COVER STORY / TTIP

Authority and meet the same requirements which are in place now. And we are not even negotiating the ways we regulate GMOs or other food standards, as the member states haven’t given us a mandate to do so,” Talko added. Dycha chimed in with this opinion, “GMO and food safety issues are excluded.

The EC has no mandate to negotiate on that.” He added that in many areas, a compromise would not be possible. In such cases, these matters will be left unchanged. “We are trying to remove bureaucratic barriers where it is beneficial for both parties, not to lower standards,” Dycha assured. Naysayers remain unconvinced, though. “If there’s no risk of deregulation, it is puzzling why the Commission is avoiding an open discussion and broad consultations on the subject? In fact, I presume that the process will occur gradually, through ISDS, inter alia,” Zarzycki said.

Geopolitical partnership Although the debate is focused mainly on economic and legal matters, TTIP should warrant closer attention in another field – geopolitics. Deal supporters claim that a trade alliance of two major world powers who share similar transatlantic values would strengthen the position of the West in the

world. Considering that the Americans are simultaneously negotiating the Trans-Pacific Partnership (TPP), TTIP’s counterpart with 11 Pacific states, it is in our interest to pull US companies away from Asia and entice them to stay in Europe. What’s more, the standards negotiated in the deal would serve as a model for future trade agreements. When looking at it in this respect, it becomes more understandable why both parties are trying to incorporate the controversial ISDS clause in the deal. As negotiations with China lurk in the future, Europe wants to have a bargaining chip to force the Asian giant to introduce such investor protections.

Central and Eastern Europe is expected to gain on strengthened transatlantic ties in the face of rising Russian imperialism. But the most crucial and important geopolitical issue for Poland is energy security. For now, US gas exports are subject to cumbersome licensing procedures and oil exports are banned. TTIP is likely to contain a clause which will remove these limits decreasing Poland’s and Europe’s dependence on natural resources imported from Russia. Although, it’s dubious that gas and oil imported from the US would be cheaper than Russian supplies, it would increase the country’s se-

curity. Diversification of energy sources may turn out to be the biggest strategic benefit coming from the deal for Poland.

The fate of the deal When can we expect TTIP to come into force? In an optimistic scenario, the partnership would be adopted in 5-7 years. Amid mounting tensions, public support for the deal is falling, standing at as low as 40 percent in Germany and Austria. Unity seems to be crumbling among European leaders as well, with Hungarian PM Viktor Orbán admitting that he will not back an agreement that impairs domestic courts. When it comes to Poland, the government is supportive for now. “We are endorsing the negotiations.

Once they are finished and we receive the full text, the government will decide whether it is beneficial for the country,” Dycha said.

With pressures from civil society, the final shape of the treaty is still a riddle, but it will certainly differ from original proposals. Since adversaries of the pact seem to have their momentum, further negotiations are going to be an uphill struggle. The ball is in the EC’s court and the success of the project relies on its ability to incorporate the opponents’ demands and cushion their resistance. u

fill the moment The first whisky magazine in Poland

www.whiskyquarterly.com

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Images: Shutterstock

650-700

People attend ESA’s courses each year.

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POWER FOR SALE: MEET THE NEXT GENERATION OF PRIVATE MILITARY CONTRACTORS THE WBJ OBSERVER SPENT THREE DAYS EMBEDDED WITH FUTURE PRIVATE OPERATORS AT THE EUROPEAN SECURITY ACADEMY (ESA) IN THE SMALL TOWN OF WŁOŚCIEJEWKI. THESE ARE THEIR STORIES B Y S A N T I AG O D E L A P R E S I L L A

L

bad reputation since the Nisour Square massacre in Baghdad, an incident that saw 17 civilians killed and 20 injured, as well as other famous occurrences, such as the British national and cofounder of the infamous PMC Executive Outcomes, Simon Mann, who was extradited to Equatorial Guinea after a failed coup attempt against the Equatoguinean dictator Teodoro Obiang. Unfortunately, these are not isolated incidents.

Managing director Bartosz Bryl discussed the background checks that the students have to go through before they set foot in the academy. With the current flight of foreign fighters joining the wars in Ukraine and all over the Middle East, “if we find out that somebody wants training to then join a foreign military-like force such as ISIS or the Kurdish peshmerga, we just tell them to go to another academy. We don’t deal with their kind,” said ESA’s managing director, while also emphasizing that taking sides is not good for business.

Close-Protection Training

Trainees were going through a twoweek close protection-training course.

Even though the course does not require any previous experience, the all male students were mostly former police or military.

The ambience was pretty relaxed, but at the end of the day one could see how demanding the training actually was.

Some days, it came close to 12 hours of instruction, which also involves a solid amount of theory.

The day of arrival, the students went through a class introducing them to the weapons close protection operators use, apart from pistols, they were instructed on submachine guns such as the Germanmade MP5 and MP5K, and the Swiss B&T APC. All deemed “personal defense weapons” or PDWs. After two hours of technicalities, the students were taken into a tiny close-quarter underground shooting range, where each student got to fire 10 bullets from each weapon in a very disciplined manner.

Then followed a two-hour close combat training session that included lessons on how to protect yourself from an attacker with a knife, “don’t be afraid to get cut.

It is better to lose a finger than have your lung punctured,” repeated continu-

Images: Santiago de la Presilla/WBJ

ocated roughly 45 km from Poznań and founded in 1992 by notorious military expert Andrzej Bryl (also founder of Wrocław-based Delta Security), the ESA is a private 5 sqkm complex that consists of several wooden-and-stone made small buildings.

The complex as it is: the main office at its entrance, the dining hall for instructors and trainees serving traditional Polish food, a windmill turned into a dorm and another small building that has the capacity of hosting 12 trainees. Roughly 600 meters down a road inside of the complex there is ‘Mogadishu.’ The ‘Mog,’ as some of the students call it, is a set of wooden buildings with signs in Arabic and roads full of rocks, designed to look exactly like the war-torn Somali capital.

The staff appeared very comfortable in front of cameras, yet all students but one requested their names to be changed and their faces blurred. The reason being “I don’t want my name popping up on Google if I’m being vetted for a job, PMCs don’t like it when their operators talk too much,” said Belgian bodyguard Sif. It is no secret that private military companies (PMCs) have suffered from a

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ously the German instructor, Arik. The course tries to turn ex-soldiers from the combat mindset into more of a defensive stance even though the academy also offers courses that seem to be a lot more combat-orientated, such as the Private Military Contractor course, where the use of assault rifles is commonplace.

The final test of the Close Protection training was reported to look like this. It consisted of a simulation where the students were in Poznań for 48 hours. This test had the students dressed in suits and ride in armored cars with radios so they could communicate between each squad within the convoy. An instructor roleplayed a VIP whom they were to protect.

The test was to be as complicated as possible for the students, i.e. the VIP wanting to go to the movies or meeting friends on short-notice.

Maritime security, a perfect example of PMCs volatility

During the height of the Somali piracy years, a private operator “could get between €5,000-€6,000 per month” stated Konsta, an ex-Greek Special Forces soldier who was deployed to Kosovo and did security for the 2004 Summer Olympics in Athens. “Now it’s under a €1,000,” he stated angrily. He blamed the lack of large-scale piracy, as well as the

fact that the maritime sector has been “bombarded” by non-Westerners that will settle for a lot less money than their Western counterparts. The drop of his salary happened in less than six months.

“When I started doing maritime security it was all Brits, ex-forces guys, then the Greeks came in, then the Indians, the Sri Lankans, the Nepalese, the Indonesians and now it’s got to the point where the Chinese will do the same job as us, and they’ll make nothing. They just settle for less,” said 28-year-old Jay, a South African national who served five years in the British Royal Marines and served seven months in Afghanistan, “the maritime threat is just not there anymore,” stated the ex-Marine.

“Money’s no good when you’re dead”

Demand rules this private military industry like any other, the more dangerous a job is, the more you’ll get paid.

This is where the toughest decisionmaking takes place.

Alberto, a very friendly and bearded 37-year-old ex-Spanish soldier, said he served in Afghanistan and he had been doing private security for the past nine years in Spain, as well as being a bodyguard in Mexico and Honduras.

When asked about the money, he said, “the problem’s not the money. If

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you are in Spain as a soldier, you can make €1,000 a month. Once you are abroad, you can start making up to €4,000. The government can always help you; nobody is going to leave you behind. As a contractor however, you’re alone,” he continued, “Spain’s not taking care of a Spanish contractor captured by a Mexican cartel. You always have to ask yourself, ‘is it worth the money this time?’ ” Alberto spent most of his time in Latin America due to his lack of English.

When asked if he ever wanted to go back to Afghanistan as a private operator, he answered, “As a Spaniard, I wouldn’t go to Afghanistan for less than €5,000 per month, but you can find a Bulgarian that will do it for €1,500, so companies are hiring less qualified people. Which makes it extremely dangerous. Of course €1,500 in Bulgaria is a great wage, but in Spain it is not even enough for my mortgage.”

On why he would only go back to Afghanistan if the pay were substantial, “companies are competitive, they do not cooperate. It’s not like in Afghanistan with NATO soldiers where we used to get medevacs [medical evacuations] from French and American helicopters.

There’s no cohesion amongst the private industry.”

FEATURE / PRIVATE MILITARY CONTRACTORS

Poland: a must for European PMCs

There were only three Poles out of 22 students in the Close Protection Training course. The rest mostly came from European countries, as well as Africa and Asia. Poland seems to be “cheaper and better” according to Polish Londonbased security guard, Tomasz. “You cannot get the type of weapon training we get here in France or in the UK,” the bodyguard said.

On the last day, the academy received around 12 French students who had done a two-week course in France, but since gun regulation in France is “draconian,” as some students called it, the bulk of their course is done in cooperation with the ESA in Poland.

The students kept mentioning that the ESA was one of the few institutions that are accredited in order for them to get the Security Industry Authority (SIA) license; once they complete the course they are able to apply for this license. Even though there seems to be no American equivalent for the SIA, “European PMCs will not hire you without this license.”

Images: Santiago de la Presilla/WBJ

Who fits the profile of a PMC?

Most of the current private operators I met during the course were guys who looked at their country’s armies as too ideological and just wanted to continue their lives related to the military without politics in the mix. Especially the Ukrainians: Sergei, a former Ukrainian army soldier who served for ten years, said he was

PLN 4,500 “disappointed” by his country’s armed forces. His superiors ordered him to cut his soldiers’ wages to fix parts of the almost destroyed base his battalion was stationed at, when he refused he was swiftly forced to resign. He then told me that in less than a year his commander had found him a job in the private sector and he went to work in northern Iraq with a British company he didn’t want to disclose. The company helped him “improve” his English, and paid him more than a high-ranking officer in Ukraine “could make in his lifetime,” he said laughing.

Holding hands

The rumors of governments cutting their defense budgets at the expense of PMCs turned out to be untrue. A soldier in the Polish army, who chose not to disclose his name, said he had served for 18 years and planned to retire in two years, so he could get a good pension. When asked how he could pay for this course on a soldier’s paycheck, he answered “I’m sponsored by the army, they pay for most of the course.”

Jay also mentioned that the UK government has some sort of “resettle-

Is the cost of a oneweek training course.

ment package” that is supposed to help soldiers transitioning to civilian life, these credits can be used for private security training if the academy is accredited and even though Jay paid for the course out of his own pocket, the ESA is an accredited institution. That means that the tuition can be fully paid for by any government program around the world.

As the British Army plans to cut more than 42,000 jobs in the next four years, according to a report by the Royal United Services Institute, how will it protect its interests abroad?

How does it maintain a noticeable presence in Afghanistan or Iraq? Leaving it to the private sector is the way governments stay out of the radar.

The question remains, is this what war will look like in the future?

In many ways, it is almost as if warfare was going back to the Middle Ages, where mercenaries dictate the aftermath of armed conflict. If you take a close look at modern warfare, the image of a uniformed soldier with a flag patch on their arm is fading by the day. u

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FEATURE / CRAFT BEER

3.82 bln liters

Image: Shutterstock

of beer was bought by Poles in 2013, according to a KPMG report.

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THE CRAFT REVOLUTION IS HERE TO STAY POLES, KNOWN BEER DRINKERS, ARE STARTING TO DEVELOP A TASTE FOR SMALL, CRAFT BREWS AND WHILE THESE WON’T PUSH OUT LAGERS FROM THE MARKET, THEY ARE ENJOYING THEIR SMALL, ALBEIT GROWING SHARE IN THE SECTOR

B Y JA C E K C I E S N OW S K I

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On

a weekend in late April, despite the Polish football league having a break, Legia’s stadium in the heart of Warsaw is packed with people. They didn’t came there, however, to see a game. They’ve come to drink beer. Ale aficionados from all over Poland are strolling through the arena’s most exclusive VIP stand. Yet, they’re not falling down the stairs or mumbling incoherently, they’re discussing a beer’s palate, the nuances in tastes or IBUs (International Bittering Units, which describes the bitterness of the beer).

Images like this could be seen at the Warsaw Beer Festival, held twice a year (the next edition will be held in October).

Similar events are held all over the country and are attended by thousands. Pubs and shops serving and selling only craft beer are popping up left and right and so are the breweries.

Growing by numbers

“Currently, there are some 150 companies that brew their own beers in Poland and there’s still plenty of room on the market.

In comparison, Germany and the Czech Republic each have 800 such breweries and Italy has 700,” said Tomasz Kopyra, Polish beer pioneer and one of the founders of the Polish Homebrewers Association. He added

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that in the next decade there could be 300500 local breweries in Poland.

It needs to be pointed out, that the term “brewery” rarely means an actual brick and mortar facility. Most craft brewers in Poland don’t have their own infrastructure and they make their beers in so-called “contract breweries.” They lease space and equipment to make the beer with their own ingredients and recipes. “Building your own brewery is not an easy job. You need tons of paperwork, tons of hassle, financing, etc.,” said Kopyra, adding that many new breweries will be established in the coming years, with only some of them owned by craft brewers. The rest will be strictly contract breweries, making products for others.

The beer revolution in Poland started at the same time as the one in the US, which kickstarted the movement all over the world with IPA (see p.36). In 1975, Anchor Liberty Ale was introduced, inspiring thousands of beer geeks to start their own microbreweries.

Forty years later, such companies have 11 percent of the market share in the US. In Poland, it all started with Pinta and its Atak Chmielu AIPA beer. “We knew we hit the jackpot after the first ten minutes of sales. It remains a passion for us though. It’s never a chore,” said Ziemowit Fałat, co-founder of Pinta.

In less than five years, the movement reached 4.7 percent of the market accord-

ing to KPMG’s latest report on the alcohol market in Poland (that figure includes craft breweries as well as smaller and independent breweries, like Ciechan and Amber) and that number should increase between 10-15 percent in the next five years, although projections vary depending on who you ask. “Craft beers have irrevocably changed the Polish beer market and have set many new trends.

The future should bring a gradual growth of such breweries on the Polish market, when it comes to sales figures. Such companies are improving their distribution and brand recognition,” said Kopyra.

Perfect consumers

Beer enthusiasts are young, trendsetting and can afford to spend more on a product than the average beer guzzler. They’re the perfect customer and the biggest breweries in Poland are seeing that. Kompania Piwowarska (owned by SABMiller) sells the Książęce brand, which in the past included a rice lager. Grupa Żywiec (owned by Heineken) is also targeting beer geeks. “Even though lager is still the most popular beer style in Poland, craft is gaining a foothold.

All the major players have seen this trend and are expanding their portfolios to include such styles,” said Magdalena Brzezińska, communcations director at Grupa Żywiec.

Poland’s second biggest beer producer has

FEATURE / CRAFT BEER

“EVEN THOUGH LAGER IS STILL THE MOST POPULAR BEER STYLE IN POLAND, CRAFT IS GAINING A FOOTHOLD. its own line of craft-styled beers (sold under the Żywiec brand) and has switched production in one of its breweries to produce only craft beers (sold under the Cieszyńskie brand).

Images: Shutterstock

Perfect cohabitation

Even though craft-like beers made by huge companies are rated lower than their craft peers (on the ratebeer.com site, only one, Żywiec Porter cracked the top 50 Polish beers list), they have much better distribution and lower prices. Still, craft producers are not worried that the biggest players will push them out of the market. “Promoting less-known styles helps us, as it increases customer awareness and turns more people on to real craft beer,” said Łukasz Lis from Doctor Brew. “Big breweries are late to the game, they’re only copying the smaller ones.

There’s no newness factor to it,” said Kopyra.

He added that such companies have to attract normal consumers, not beer fans, making their products “bland.” Craft beer enthusiasts invest in a business, but also in a story: beer as a local product, produced by passionate local entrepreneurs. The customers are also enthusiastic, love to share their opinion online and can even influence trends.

But even when you make the best beer, you still need clients which will keep you afloat.

“Beer geeks are a very important part of

our consumer base. But making, even the smallest business profitable, you have to find customers outside that niche,” said Fałat. And they hope that by mimicking their products, the biggest companies will help them reach such customers. “Making other, less-known styles popular, by introducing their own versions of them, big players, will increase consumer awareness and more people will seek out new tastes and styles,” said Lis. While not directly threatened by the biggest multinationals, small breweries have limited potential and realize that they will face barriers which they cannot overcome. “The biggest companies on the market have unmatchable budgets when it comes to marketing and reaching the mass clientele,” said Tomasz Wiśniewski, partner at KPMG and added that despite being a relatively fresh market, with many companies being established every month, there is a place for everyone. “Companies that are already entering the mass market with their products based on craft heritage will continue to grow organically. Potential takeovers of smaller craft breweries won’t help them with expansion. Merging smaller craft companies into bigger conglomerates won’t work either, as such companies are relatively small and merging would not give the scale effect needed to increase their size.”

International recognition

Even though the craft beer phenomenon is a relative novelty in Poland, its products are gaining recognition in other countries as well. Doctor Brew, which was founded last year, was named the second best new brewery in the world by Ratebeer (another Polish one, Birbant, was sixth). In another ranking, of the best lager beers, Steve made

by Wąsosz was named the Best Lager in the World. Polish brewers have also started cooperating with other European breweries. In the last months, Polish brewers have produced beer in cooperation with: Norwegian Nøgne Ø, French Brasserie du Pays Flamand, Danish To Øl and many others.

They’re also working on new products.

Poland is another European country that has joined the so-called “craft revolution.”

While the market is still dominated by PLN 3-4 lagers, more and more people are willing to splash out at least twice as much for the latest IPAs. Craft brewers are releasing new brands left and right in astonishing numbers (Doctor Brew in the first year of its existence released 17 new beers). Yet, it’s often hard to find them in stores a couple of days after delivery. With great sales dynamics (15-20 percent growth in sales each year) and optimistic forecasts regarding the future of the sector, craft breweries’ future looks brighter than a good Witbiers’ tint. u

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Craft beer styles Sour beer – it’s this year’s hit when it comes to craft beer, with many breweries releasing their own sours. It’s brewed using wild yeasts and bacteria which give the beverage a distinct sour taste. Very often, it’s fermented with various fruits like cherries, raspberries or peaches.

IPA (India Pale Ale) – It’s origin dates back to the 19th century when beers exported to India and other British colonies had to be strongly-hopped to survive the long transport to other continents. The style was resurrected in the US in the 1970s, where they are brewed with strong American hops. Nowadays US-style IPAs are a staple of craft beers all over the world in many different varieties (rye IPAs, black IPAs, IIPAs, APAs, etc.)

Grodziskie – the only style that originated in Poland. It’s a light beer made from malted wheat. It has a smoky taste and is highly carbonated. It has been called “the Polish champagne” in the past. It was first made in the town of Grodzisk Wielkopolski, hence the name and has been produced since the 14th century. After World War II, the brewery was nationalized and the beer’s quality declined. After years of neglect, production ended in 1993. Since 2011, homebrewers started to revive this style, which has been defined by the Brewers Association style guidelines in 2013 and is now recognized as an official style.

Witbier – A German-style beer made with wheat malt. Traditionally, it has low hop bitterness and high carbonation. It should have distinct banana and clove notes. Can be made with various flavorings such as coriander and orange peel.

Images: Shutterstock

Stout (porter)

Witbier

Grodziskie

IPA (India Pale Ale)

Sour beer

Stout (porter) – a dark beer, made using roasted malt or roasted barley, very often sweet in taste. It dates back to the early 17th century and has many different variations which include – milk, oatmeal or chocolate stouts, imperial stouts [also known as Russian Imperial Stouts (RIS)] and Baltic porters.

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TERESA KAMIŃSKA President Pomeranian Special Economic Zone

EUROPE, REVISED EUROPEAN FORUM FOR NEW IDEAS. SOPOT 30 September - 2 October 2015 When will Europeans regain their sense of security? Will we overcome growing inequalities, radicalism and geopolitical threats? How can Europe regain its position as the leader of the global economy?

www.efni.pl

This autumn, Sopot will be the place of a unique international debate for the fifth time. Entrepreneurs and managers, politicians, local government activists and outstanding experts from all over the world will meet to propose a new vision of a competitive Europe and to suggest what each and every one of us can do to help.

ORGANISER:

IN COOPERATION WITH:

STRATEGIC PARTNERS:

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COMMENTARY / ON INFORMATION TECHNOLOGY

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ENTREPRENEURS / BOOKSY

Necessity might be the mother of success B Y A L I CJA C I S Z E W S K A

THEY ARE CREATIVE AND CHARISMATIC, MOST IMPORTANTLY THEY ARE DETERMINED. THEIR APPS ARE QUITE SIMPLE IN USAGE, HOWEVER THERE IS ALWAYS ROOM FOR IMPROVEMENT. BOOKING.COM HAS REVOLUTIONIZED THE HOTEL INDUSTRY, BUT WILL A NEW SYSTEM OF BOOKING APPOINTMENTS CALLED BOOKSY. NET SHAKE UP THE WORLD’S HEALTH AND BEAUTY MARKET? WELL, APPARENTLY ITS INVENTORS WILL NOT GIVE UP UNTIL THEY DO

Images: Shutterstock,Booksy

F

Four co-founders of Booksy International and Booksy Poland, including Agnieszka Zembrzycka and Stefan Batory, who sat down to speak with WBJ Observer, combined their efforts to create a system of two apps alongside a website to make small service providers’ and their clients’ lives easier.

Zembrzycka was a founder and a longtime editor-in-chief at wizaz.pl, one of Poland’s largest e-platforms in the health and beauty sector. Batory is a mathematician and author of the iTaxi mobile app. They met roughly a year and a half ago and it was clear to them, they would launch the Booksy project together.

The Warsaw-based company entered the American market nearly a year ago and is launching offices in Kraków, Poznań, the Tri-City and in Silesia.

Apart from domestic development, the project is being introduced to new foreign markets. The enterprise is expanding in different geographical locations, but that is not to be their last word.

The booking system is constantly being upgraded, it’s to become a comprehensive app dedicated to all needs that a business might have. “Our mission is to give small businesses tools which have not been available to them till now. We want them to be updated with all the global trends and to compete with bigger players,” Batory revealed.

Stage one: spot a problem and find the solution Booksy has two apps, Booksy Biz for businesses and Booksy for clients.

Booksy Biz allows the business owner to create a business profile and help manage their appointment schedule.

Booksy enables a client to view the business’ profile, see their availability, and book an appointment directly from the app. Both of them work in real time.

The key factor in developing the platform was a constant rescheduling of appointments at the businesses in question. “Everything began in a pretty prosaic way. I could not make an appointment at my physiotherapist due to the tight schedule. I decided to do something about it,” Batory recalled. He consulted with his business partner Konrad Howard and decided to create an app that’s useful for managing the client’s and the service provider’s time. In their opinion, the American smartphone market was more developed than the Polish one.

Data supports their view, as in 2013, 44 percent of Poles owned a smartphone (TNS, 2014), while in the US, smartphone penetration amounted to 66 percent (Nielsen, 2014). Moreover, American consumers spend around 30 hours a month using mobile applications, which accounts for

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ENTREPRENEURS / BOOKSY

Opinions:

Stage two: urge others to apply it The software interface is userfriendly and the app itself is quite smart. It found an outlet right around

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the corner during a test run. The date and time and a particular employee could be chosen. The outlet is notified about the reservation. Everything works just as planned.

The apps were launched at the beginning of 2014 in the United States.

For the first several months, the firm was struggling on the market. At that time, Booksy’s approach focused on lead generation, i.e. its job was to attract new clients, earning a commission for services rendered. It turned out to be a failure. “It was hard to create demand and supply at the same time. Our selling model was faulty,” Batory admitted. As a consequence, a few months later, they changed the model to a monthly subscription fee.

“This model is more client-friendly, it is predictable,” he said. Currently, the fee totals PLN 99 in Poland and in the US, it ranges from USD 24 to 120 US dollars, depending on the size of the business.

Globally, the company is trying to communicate with potential clients via social media, but in Poland, it is engaging in co-organizing such events as the Bearded Men Jamboree in Byd-

We are very pleased with the Booksy application, it is a fast and convenient way to book appointments. Our customers are able to set the calendar according to their needs. They are glad that in every place and at any time they can book an appointment. It also improves our work. Until now, we have not noticed any errors in the application – one of the hairdresser outlets cooperating with Booksy Poland.

Image: Shutterstock

89 percent of time they spent using the device (Nielsen, 2014).

Batory and Howard made several trips to the US to find out if barbers, hairdressers and other service providers were facing the same problems as they were. “We listened to their remarks and complaints. They did not even know what to expect, because there was no such product on the market at that time,” Batory recalled.

Zembrzycka and her husband were just starting with the roll out of Golden Salon, a website where the best health and beauty firms would be listed. Unfortunately, the project faltered, so she decided to dust off one of her previous ideas, a smart solution for scheduling appointments online.

When Batory and Zembrzycka came across each other, their congruent plans became one. “It was a coincidence, our visions matched,” Zembrzycka said.

Booksy is a relatively good and convenient way to contact the customer. In our case, it is not perfect and processing capacity of Booksy upon introduction of even small customization is low (when 17:15 throws the schedule off, there is no possibility to change the settings, so that appointments could be limited to starting at the full hour, or 30 minutes after). We estimate usefulness of the app at 65 percent of its possible capacity.

The main advantage is multichannel access to services and the relatively easy reservation process for customers.What is more, it is not possible to pay for services via the internet – one of the personal trainers who has been using BooksyBiz app.

ENTREPRENEURS / BOOKSY

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“WE DREAM OF BOOKSY BEING THE ONLY TOOL THAT IS NEEDED TO RUN A BUSINESS.

Global market stats goszcz and sponsoring fashion shows nationwide. Zembrzycka, who is the chief marketing officer at Booksy, said that the firm wants to be present in the health and beauty business as much as possible. Booksy intends to be inside partnering outlets through branded posters, chocolates and aprons. However, most importantly, Booksy is focused on seeking their potential clients by hiring sales reps.

“We have to do lots of work, by educating people (about the app). We are the only such service on the market,” Zembrzycka stressed.

Zembrzycka and Batory claim that its users have changed their habits and, consequently, their expectations, since the system was launched. Both sides are constantly learning more about the apps and are aware of the need for some improvements. As various businesses are willing to cooperate with Booksy, the firm is trying to fit them to the right category or,

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S T E FA N B ATO R Y in due time, create another one. The users of BooksyBiz have complained of low processing capacity of the app in terms of implementing detailed customization settings. Another issue is that online payments, which would streamline the whole service have not been applied yet. On the other hand, they said the system has improved consulting with their customers and has made their job easier, according to some opinions. When it comes to the Booksy app dedicated to the customers, majority of the opinions are positive. “It had to be easy, otherwise nobody would use it,” Zembrzycka admitted. The users are glad it has helped them save time, however some of them face problems with booking appointments outside Warsaw.

Stage three: expand The firm is currently working on introducing the apps in Spain and other Spanish-speaking countries in

Images: Shutterstock,Booksy

AG N I E S Z K A Z E M B R Z Y C K A

The global smartphone penetration forecast shows that almost 50 percent of mobile users worldwide are projected to own a smart device by 2017 (Statista.com).

According to a recent report compiled by Ericsson Mobility Report (June 2015), up to 70 percent of the world’s population will use smartphones by 2020. As for new owners of smartphones, it is estimated that 80 percent of them will come from emerging markets such as Africa, the Middle East and Asia Pacific. When it comes to the mobile app market, it is considered to be one of the fastest growing sectors in the world. The European Commission reported that in the EU, its value will reach €63 billion in 2018.

KPMG pointed out that mobile app downloads will triple globally and mobile commerce is likely to overtake e-commerce next year.

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South America, as well as in Germany. The offer has already entered the Swedish and the Finnish market, although, according to Booksy.net the amount of subscribers is very low.

Furthermore, Booksy has already launched its project in India, which is one of the world’s fastest growing wellness and beauty markets. The Polish founders are supported by local partners who will be in charge of sales operations in there. “We are providing the know-how and the whole philosophy of the system. We knew we could not do it ourselves, this is a completely different culture,” Zembrzycka said.

The long-term plan assumes similar models of expansion in China, South Korea and Japan. Additionally, when the system achieves a wider range, the firm will compliment its marketing communication with suggestions to clients regarding the best health and beauty service providers. Currently, they are focused on selling the app directly to service providers.

When Zembrzycka and Batory were asked what they wanted to achieve by the end of this year, they said they would like their system to make its mark in every country it is launched in. With regard to Poland, the firm aims to obtain 1,000 business clients nationwide and 100 cooperating outlets in Warsaw alone. They aim to strengthen their usage in the cities and are now opening their offices, whilst trying to maintain a leading role in the domestic market. The future of the

ENTREPRENEURS / BOOKSY

BOOKSY STATS: THE APPS ARE AVAILABLE IN NEW YORK, NEW

JERSEY, ARIZONA, CONNECTICUT, FLORIDA AND TEXAS. WHEN IT COMES TO OTHER COUNTRIES, THE SWEDISH, FINNISH AND SPANISH VERSIONS OF THE WEBSITE DISPLAY ONLY SINGLE OUTLETS, AND A COUPLE ARE REGISTERED ON THE MEXICAN SUB-WEBSITE. IN TOTAL, AROUND 2,000 SMALL BUSINESSES (OF UP TO FIVE EMPLOYEES) WERE REGISTERED AT AN AVERAGE OF 500 PER MONTH. IN THE LAST SIX MONTHS, AROUND 100,000 VISITS HAVE BEEN RECORDED, ACCORDING TO DRAFT ESTIMATES BY THE FIRM. THE SITE SPORTS NEARLY 6,000 LIKES ON ITS FACEBOOK PROFILE, 250 FOLLOWERS ON TWITTER.

project is challenging, but nothing indicates that Booksy cannot become a worldwide success.

Ultimately, Booksy’s authors want to create a comprehensive system which would enable entrepreneurs to manage their firm’s finances, loyalty programs and others. “We dream of Booksy being the only tool that is needed to run a business,” Zembrzyc-

ka explained and said that the product would be developed for tablets.

According to a survey carried out by Salesforce (2014), 65 percent of users who download business-specific apps are owners of both tablets and smartphones (The remainder owns only the latter). This indicates, that Booksy may have chosen the right device for its new offer. u

The average monthly growth of registered businesses amounts to nearly 500

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TO ADVERTISE: TOMASZ PAWLAK, TPAWLAK@VALKEA.COM, +48 501 791 461 SUBSCRIPTION: MONIKA BRYSIAK, MBRYSIAK@VALKEA.COM

July/August 2015

FROM SLUMS TO RICHES WARSAW’S PRAGA DISTRICT TO FINALLY GET MAKEOVER 58

25 pages of real estate content

APARTHOTELS APLENTY POLAND’S TOURIST RESORTS ARE GETTING MORE COZY 54 GRIDLOCKED NO MORE? HOW WARSAW PLANS TO FIX PUBLIC TRANSPORTATION 66

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>LOKALE IMMOBILIA

NEWS

GBC will encompass 99,000 sqm.

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Aviva leases 12,900 sqm in Gdański Business Center

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In summer of next year, the company will move into Gdański Business Center II, which is currently under construction.

GBC is a complex of four A-class office buildings with a total of 99,000 sqm. u

WILL BE THE STAKE OF GRIFFIN AT ECHO INVESTMENT

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Unibep loses deal in Russia worth over PLN 120 mln Polish construction group Unibep and Russia-based Tyumen OOO MPF Złote Klucze has terminated a contract in line with which, Unibep was to develop an office and housing building complex in the Russian city. The deal was valued at €33.9 million.

The cause of the termination of the contract was a lack of funds necessary to complete the scheme.

Unibep and the receiver signed the deal last year. u

Image:HB Reavis

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nternational insurer Aviva has signed a lease for 12,900 sqm in the Gdański Business Center (GBC) in Warsaw. Aviva plans to relocate its headquarters and open a branch of its customer service center in the new space.

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NEW LANDMARK OF WARSAW Location – Corner of the Prosta and Żelazna streets.

Gross rentable area Gross rentable area of the TOWER Gross rentable area of the WEST building Number of floors in the TOWER Number of floors in the WEST building Typical rentable office floor size of the TOWER Typical rentable office floor size of the WEST building Parking spaces

63 800 m 49 600 m 14 200 m 32 9 1640-1750 m 1860 m 620 2

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LEAD. MOVE. LEAVE A MARK. LET YOUR STORY BECOME THE GREATEST LEGACY. www.mennicalegacytower.pl

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ADVERTORIAL

Hotel Sobienie Królewskie Hotel Sobienie Królewskie, located 30km from Warsaw, is a palace that has been reconstructed and renovated based on the Jezierski family residence erected in the mid-19th century. The interiors have been designed with great attention to detail. The palace compound comprises six buildings located on a single estate around a beautiful park with an area of nine hectares. The Sobienie Królewskie Hotel offers stylish, comfortably furnished rooms and suites affording beautiful views across a park which makes it perfect for the holiday of your dreams. Near the Hotel, there is a links-type eighteen hole golf course designed by the English studio Jeremy Ford Golf Design Group. www.sobieniekrolewskie.pl Total area: 9 hectares Total number of rooms: 64 - 77 in the palace compound, including 8 suites, and 13 rooms on the golf course.

Max number of hotel guests: 150 Max number of business/ conference guests: 300

FM LOGISTICS owns over 500,000 sqm of warehouse space

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FM Logistic plans to expand fresh product operations into Poland

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M Logistic announced plans in June to expand the company’s fresh produce operations in Poland this year. FM Fresh focuses on operations with fresh fruits, vegetables, meat and dairy products. The company will also be investing in new robot packaging technology, e-commerce operations, and expanding its fleet of trucks by several thousand.

The company has been present in Poland since 1995 and is currently the third-biggest logistics firm in the country.

Over the next several years, the company plans on continuing development

across all sectors as well as investing in more innovative processes, and adding new sectors to its operations. FM Logistic saw an eight percent increase in profits in 2014, with earnings of PLN 855 million. The company expects a 15-20 percent rise in profits this year, as a result of heavy development of the FM Fresh, e-commerce and DIY sectors. FM Logistics currently employs 3,000 workers in Poland, and owns over 500,000 sqm of warehouse space. It currently focuses on logistical operations in the retail, non-perishable food, industrial, pharmaceutical and cosmetic sectors. u

PLN 450 MLN Rafał Sonik wants to invest in Kraków

Rafał Sonik, Polish entrepreneur and the 2015 Dakar Rally winner, intends to develop a scheme in Kraków's city center including a shopping center, a hotel and an underground car park, the media reported.

The project would be built in the area of the former Elefant shopping mall, encompassing 0.5 ha, at ul. Krupnicza and ul. Podwale. In total, a building of 13,000 sqm is to be constructed. Sonik has submitted a motion for environmental approval. u

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Images: FM Logistics, Sobienie Królewskie, Prologis

– IS THE VALUE OF POLISH LUXURY SUITE MARKET, ACCORDING TO KPMG AND REAS

LOKALE IMMOBILIA / NEWS

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Prologis purchases Westgate Park Rudna in Czech Republic

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ndustrial property investor Prologis has acquired Westgate Park Rudna, a logistics center located in the Czech Republic owned by Europa Capital, propertynews.pl reported. The warehouse space amounts to 28,000 sqm and the construction plot totals 14 ha. The newly bought

Westgate Park Rudna was incorporated into Prologis Park Prague-Rudna, a distribution center located nearby and renamed to DC18.

As a result of the transaction, Prologis Park Prague-Rudna includes 18 buildings and offers 191,000 sqm of space. u

6th edition of the

Charity Real Estate Beach Volleyball Tournament Followed by: ‘After-Sports-Party’ Thursday, 30 July 2015, La Playa Music Bar, Warsaw Honorary Patronage:

The money raised will be used to finance the purchase of a rehabilitation walking machine and other rehabilitation equipment for the Foundation for children ‘Help on Time’ - AMICUS and BIOMICUS rehabilitation centers.

Contact us if you want to learn more about the event. Weronika Kurnatowska tel: (+48) 22 318 0000, weronika.kurnatowska@eu.jll.com

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Investment activity on property market at €365 mln in Q2 – C&W

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nvestment activity in the Central European markets of Poland, Czech Republic, Slovakia, Hungary and Romania maintained momentum with €881 million invested in Q2. A total of €2.21 billion has been invested year-to-date in the region, according to global property adviser Cushman & Wakefield.

Poland saw the highest volume of transactions over the second quarter (€365 million). Furthermore, the half year results show that the Czech Republic and Poland continue to attract the strongest interest from investors. However, Hungary was the only country that saw higher activity in Q2 than in Q1. It was also the only country that saw recent activity volumes above the fiveyear quarterly average.

The largest portfolio deal in Q2 was Aviva’s sale of their mixed use CE portfolio of ten assets for a reported €185 million, whereas Lone Star acquired assets across the Visegrad countries. The largest single asset deal was concluded in Prague with the sale of the Arkády Pankrác shopping center for €162 million, which was advised

by Cushman & Wakefield’s capital markets team. u

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BBI Development to launch Koneser scheme in September

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he Polish WSE-listed property developer BBI Development is planning to start its PLN 520 million worth scheme in Warsaw’s Praga district in September, Parkiet daily reported.

Koneser Kwartał Centralny on ul.

Ząbkowska will encompass 50,500 sqm of office and retail space. The investment will be financed partially by the developer's partner, Liebrecht & wooD and with loans. BBI Development has not chosen

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the general contractor yet.

Koneser will also include a Vodka Museum by the Chicago-based Goettsch Partners architectural studio. The complex will feature a 4,750-sqm public square as well as 4,500 sqm of retail space on the buildings’ ground levels, including a fitness center and conference facilities. It will also offer four levels of underground parking with room for 620 cars and 300 bicycles. u

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Goodyear with huge lease in Tarnów

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oodyear Dunlop Tires Operations has renewed a lease for 56,000 sqm of warehouse space in Centrum Logistyczne T.C. Dębica located in Tarnów, ISBnews reported. The value of the contract was not revealed.

Currently, the warehouse encompasses 46,000 sqm, but the space will be expanded by 10,000 sqm of newly constructed storage, which is to be completed still this year. u

Images: BBI Developmnent, Satoria

THE COMPLEX will feature a Vodka Museum

LOKALE IMMOBILIA / NEWS

l INVESTMENTS

Union Investment Real Estate acquires Riviera shopping center Fonciere Euris and its subsidiary Rallye have signed a deal with Union Investment Real Estate to sell the Riviera shopping center located in Gdynia, Reuters reported.

“The transaction will be concluded for a value of €291 million, to be potentially increased to a maximum amount of €300 million over three years through earn-outs based on performance,”

Reuters informed.

Riviera was opened to the public in October 2013 and comprises 231 units on 70,470 sqm GLA of retail and entertainment space. u

l OFFICE

Satoria to develop new office building in Wola

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Real estate developer Satoria will construct another office building at ul. Ciołka in the Wola district of Warsaw, a press release read.

The entire GLA will encompass 9,000 sqm. The six-storey building will be developed near eight other existing buildings belonging to Satoria. The scheme is located near Park Moczydło and the M2 metro line.

Satoria operates mainly in the hotel sector, but is working on expanding its portfolio in the office space sector. u

Strona 1

PRIDE OF POLAND August 14–18th, 2015

37th POLISH NATIONAL SHOW August 14/15/16th, 2015 Janów Podlaski Stud

46th PRIDE OF POLAND & SUMMER SALES August 16/17th, 2015 Janów Podlaski Stud

OPEN DAYS AT THE STATE STUDS: JANÓW PODLASKI, BIAŁKA, MICHAŁÓW August 17/18th, 2015

fot. Stuart Vesty

www.prideofpoland.pl

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Griffin to call on Echo Investment shares

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isla, a subsidiary controlled by Griffin and PIMCO equity fund, will call on Polish real estate developer Echo Investment's shares in July in order to increase its stake from 41.55 percent to 66 percent.

Subscriptions are being held from July 14 until July 29. The price per share stands at PLN 6.75, there are 100.9 million shares offered, therefore the call is valued at nearly PLN 680 million.

The transaction day is scheduled

for August 6. Lisla said the subscription time may be exceeded by 70 days, in case it is needed for achieving the goal.

The over 40 percent stake was owned by Polish billionaire Michał Sołowow. u l OFFICE

New office park in Lublin in 2017

THE SELLING PRICE of the site was valued at PLN 35 million

l INVESTMENTS

Real estate developer Kemea Invest plans to build the office park Soul in Lublin. The total office space is to encompass 47,500 square meters.

Edward Kostrubiec, the CEO at Kemea Invest announced recently that construction is going to start this September, and is likely to be completed in two years' time. The project consists of two buildings in the Czechów district, with seven overground and three underground tiers each. Designed by JEMS Architekci, the compound is supposed to reach the highest standard of offices (class A+).

Several thousand people are estimated to work in the complex. The investor would also like to attract artistic events to the new location. u

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Skanska to develop Brama Miasta in Łódź

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2,7 mln sqm – is the space that retail chains in Poland

currently encompass, according to Market Side

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Images: Skanska, Kamea Invest

kanska Property Poland won a tender to purchase a building site to develop Brama Miasta, a 17-storey real estate project located in the city center of Łódź, the regional media reported recently. The selling price was valued at PLN 35 million.

The area around the 74 meter-high building is to be available to the public. Skanska is planning to construct an office building for 3,500 people. The deal was signed on July 1.

Skanska developed the Green Horizon scheme, among others, in the city. u

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Organizer:

Gold sponsor:

Partners:

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CONDO HOTELS HAVE ALREADY FILLED NICHES IN THE HOSPITALITY MARKETS ACROSS MAJOR POLISH CITIES. NOW THEY ARE POPPING UP IN HOLIDAY RESORTS AND INCREASINGLY OFTEN IN MOUNTAINOUS AREAS. RECORD-LOW INTEREST RATES ARE FUELING INVESTOR INTEREST IN THESE SCHEMES, BUT ARE THEY AS FOOLPROOF AN INVESTMENT AS INVESTORS WOULD LIKE TO BELIEVE?

B Y B E ATA S O C H A

New frontiers Nowy Świat 2.0

A Aparthotels, or condo hotels, as they are often interchangeably referred to, have been gaining in popularity in Poland over the past few years.

First, they took hold in the country’s major cities, where the guest pool is not limited to tourists but also includes businesspeople. “In large cities, the tourist market is better developed. Additionally, these units can be rented

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to people traveling on business, which decreases the seasonality of the market,” said Roksana Pachałko-Ciołkowska, property valuer at Emmerson, a residential real estate advisory.

However, due to a better developed hotel market, large cities are becoming somewhat crowded and thus new investments in the hospitality segment have to be carefully considered, especially given the steep land prices. “If such investments do occur in large cities, they are usually of very high quality. They are also carried out by the largest developers and managed by experienced operators, which can ensure their success,” Pachałko-Ciołkowska explained.

One recent example in Warsaw is a mixeduse scheme dubbed the Tides, located on the western bank of the Vistula River in Warsaw’s Powiśle district. Designed by architects from APA Kuryłowicz & Associates, the scheme is currently nearing its target height. It is scheduled to be completed at the

end of 2015. The project will contain only 12 condo apartments in addition to 12,500 sqm of office space, which is rather scarce in the neighborhood.

Where to next?

Since large cities have become somewhat too hot for comfort, some developers have turned to other tourist destinations. Condo hotels have been popping up at the Polish seaside each year for the past few years.

“When you analyze only tourist resorts at the seaside and in the mountains, you will come to a conclusion that the seaside has a far greater number of hotel schemes and guesthouses. The leaders in the category are Sopot and Kołobrzeg, which also offer the highest number of four and five-star hotels,” said Pachałko-Ciołkowska. This is natural given that tourists are more interested in that part of the country, as evidenced by the number of hotel stays. Only a handful of mountain resorts can match seaside towns in

All images: Skanska Property Poland, EY, CBRE, Shutterstock, Xplan

LOKALE IMMOBILIA / HOSPITALITY

terms of hotel base. These are Zakopane, Krynica-Zdrój, Wisła and Karpacz. There is clearly a need for more hospitality facilities in the mountain areas, a void that developers are more than happy to fill.

“Currently, developers are increasingly locating their investments in the mountains, where the tourist base is less developed,” Pachałko-Ciołkowska confirmed.

A few recent examples include the Czarny Kamień Resort & Spa in Szklarska Poręba (west of Wrocław), slated to be completed next year, which is currently being developed by Art-Dom. The complex will feature 52 four-star apartments between 28 sqm and 47 sqm each. Meanwhile, Zdrojowa Invest, a top player on the hotel and spa business, has sold almost all of its apartments in the Cristal Resort, also located in Szklarska Poręba.

Another investor, Horcus, has just started selling the apartments in its new condo hotel project called Szum Gór in Kar-

pacz, only 20 kilometers east of Szklarska Poręba. The property offers a wide range of apartment sizes, from below 30 sqm to over 60 sqm. A company called Invest Nosalowy Dwór is selling similarly sized apartments in the second phase of its condo hotel in Zakopane, the most frequented mountain resort in Poland.

Is it safe?

Some analysts, however, are a bit cautious about calling mountain locations a foolproof plan for investors. Apparently, unlike major cities and seaside resorts, condo hotels in the mountains need a little more than a high-quality building to prove successful.

“In case of less obvious locations (such as

mountain resorts), you need to be aware that the success of the investment requires the operator to create a unique product, with a number of additional services, unusual history or special entertainment,” said Agnieszka Mikulska, senior consultant at REAS, a residential real estate research firm.

Pachałko-Ciołkowska agrees. She claims that tourist locations have attracted developers with far lower land prices than they could find in major cities. In fact, a number of them are new to the game and often decide to operate the schemes on their own as well. “Investing in such schemes may incur risk and ultimately lead to lower returns than anticipated,” she said and added that the average returns from aparthotels

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in tourist destinations are lower than in large cities. “There are of course aparthotels in the mountains and at the seaside that, due to their exceptional location or management by a well-qualified firm, reach returns even higher than in urban agglomerations,” she also admitted.

How much can you make?

So how much is such an investment really worth? According to Emmerson, aparthotel investments can bring a return of some six percent or more, which is considerably more than the returns offered in the residential segment (estimated to be at approximately four percent). “In the case of the best investments and when returns are tied to the revenue the operator makes, the profit can reach even 10 percent,” said Pachałko-Ciołkowska.

According to research carried out by REAS in June 2015, operators usually base the return on investment on the revenue each unit brings. “Often, they guarantee stable income during the first few years as a percentage of the apartment price. It is usually no less than 5 percent of the net purchase price,” Mikulska explained and added that, “the difference in prospective returns between various investments is rather small and is usually related to the nature of the scheme and the operator’s strategy, rather than a location in a specific region.”

Who’s interested?

The aparthotel market is still something of a niche for individual investors, who view the

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residential market as the safest bet. “Recently, interest rate cuts have prompted investors to look towards less obvious investment strategies, including the condo hotel market. They have also contributed to the boom in the residential market,” said Mikulska.

According to Pachałko-Ciołkowska, Poles are looking for alternatives to renting apartments, which can sometimes be risky, as it isn’t always easy to evict tenants even when they are months behind with rent payments. “Aparthotels are a great alternative – on the one hand they are a foretaste of investing in the commercial market, but on the other – they carry far lower risk and usually also require lower capital,” she explained.

Since you don’t have to manage the apartment by yourself, you can easily venture outside your own place of residence. Also, an apartment in a nice tourist resort can be a great place where you can spend your own holiday. “That is why apartments in tourist destinations are usually the first choice. When investors are looking for another property, they usually choose one in a major agglomeration, in order to diversify their portfolio. In this case, they can also use the apartment for their own purposes if they decide to dissolve the contract with the operator,” Pachałko-Ciołkowska explained. Some investors, however, are so happy with the profit from their apartment that they acquire more apartments in the same place, she added. u

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“When you analyze only tourist resorts at the seaside and in the mountains, “The areas we’ve you will come to a designed support that the conclusion variousseaside types ofhas a far activity.greater Those who number of need tohotel concentrate, schemes and can useguesthouses. the quiet work area.”

Arkadiusz Rudzki, Skanska

A SPA is a must Polish tourists are becoming more demanding. Their expectations as to the standard and amenities of a holiday facility are beginning to match those of their Western counterparts. It is easy to see when we want to make a last-minute booking of a hotel room at a seaside resort. Usually, five-star hotels (the most expensive ones) are fully booked by then.

The number of wealthy people, who customarily or occasionally stay in four- or five-star hotels is increasing. The number of foreigners making use of such facilities in Poland is also rising. A stay in a luxury hotel or aparthotel with a swimming pool and a spa guarantees a successful holiday, regardless of the weather.

High-class hotels and aparthotels with spas are one of the fastest growing segments of the luxury goods market in Poland. The supply of such schemes in tourist resorts is far lower than in major agglomerations. That’s why developer interest in these regions is not waning.

Roksana Pachałko-Ciołkowska, property valuer at Emmerson W B J O B S E R V E R • J U LY / A U G U S T 2 0 1 5

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the

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Image: Port Praski

Spurred by the recent development of the new M2 metro line, Warsaw’s Praga district is undergoing a renaissance

Images: OVO Wrocław

The Praga spring

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raga has probably always been one of Warsaw’s more neglected districts, but this has not always proven to be a disadvantage, as Praga remained intact when the Nazis systematically destroyed the majority of the buildings on the left bank of Warsaw towards the end of the Second World War. Now, Praga is one of the few districts to retain its original architecture. However, further neglect by the city authorities has left the district to decay, resulting in an area with a grim reputation where none but the most foolhardy dared tread. Now, at last, the district is being pampered by the city authorities, with improved transport links

to the center, including the opening of the new M2 metro line and the promise of PLN 1.5 billion in new investments from the city supported by EU funds. Praga may well become one of the more trendy districts of the capital.

On March 8, 2015, the long-awaited M2 metro line was finally officially opened after numerous delays. The new subway link currently stretches from Rondo Daszyńskiego in Warsaw’s Wola district to Praga’s Dworzec Wileński railway station. The line should eventually be extended and will split into two on the Vistula River’s eastern bank and run to both Gocław and Bródno, while

PRAGA IS ONE OF THE FEW DISTRICTS TO RETAIN ITS ORIGINAL ARCHITECTURE. HOWEVER, FURTHER NEGLECT BY THE CITY AUTHORITIES HAS LEFT THE DISTRICT TO DECAY.

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on the other side it will be extended to ul.

Połczyńska.

Developers have had access to these plans since 2007, but according to Karol Dzięcioł, a partner at REAS consultancy, apartment developers have been slow to react having waited for palpable progress to be made on building the new metro before committing their resources. “The construction work started some five or six years ago and this was the moment which gave new impetus for the redevelopment of Praga as well,” he explained.

Moreover the actual opening of the metro line has clearly given a fillip to residential developers. “Over five years, nothing special happened there and suddenly, after the development of the metro line, some projects were moved forward.

Developers were waiting for the right moment to introduce new projects to the

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market.” Despite this seemingly sluggish reaction to changes on the market, the developers had already purchased the investment land well in advance.

However, they appear to have expected the subsequent delays to the development of the metro (the original opening of which was posited for 2012) and then showed no willingness to risk introducing new product to the market before the improvements to the transportation infrastructure were underway.

The ugly duckling This lack of transportation infrastructure should not have been so much of a hindrance to the district’s development.

After all, if one thinks about the old developer’s saying of the three most important factors in any new investment being “location, location, location,” Praga is not

that badly situated. It lies directly across the river opposite the city’s old town and it takes ten to fifteen minutes by bus to reach the city center.

But years of neglect have led to a situation where many of the residential buildings in the area, many of which were built before the war and are often owned by the city, are not connected to the city’s heating system. “Five years ago,” explained Dzięcioł, “only around five to ten percent of social housing had access to the central heating pipeline. There was a huge lack of infrastructure there.”

Indeed the record of underinvestment in this district, he claims, stretches back around 150 years. However, the area is clearly improving now with bars and clubs that have opened up in old industrial buildings, and the early stages of gentrification can clearly be seen with

Images: Port Praski

LOKALE IMMOBILIA / URBAN PLANNING

LOKALE IMMOBILIA / URBAN PLANNING

Images: Port Praski

people visiting the area partly because of it being off the beaten track. “It started with different sorts of cultural activities.

This brought people searching for fun and leisure opportunities. Hipsters also liked this district, being a non-mainstream location and later, it became more and more attractive for other buyers,” explained Dzięcioł.

Now, despite the district having a reputation of being a bit rough, police statistics show that the area has lower crime rates than other districts, such as downtown and Wola, and they are even below the average for the city taken as a whole.

Meanwhile, despite the large amounts of social housing, unemployment in the area is only marginally higher than in the rest of the city.

And now at last, the city authorities are proposing to spend some serious money to revitalize the buildings in the area. They have designated what they call a “crisis area” in the Praga Południe, Praga Północ and Targówek areas. In Praga Południe, there are 358 residential buildings owned either wholly or partly by the city; in Praga Północ, the city has 676 such buildings and in Targówek there are 143. This represents almost half of all the city-owned housing in the capital. Prior to a heating utility connection project in 2010-2014, around 14 percent of the council homes in the crisis area were connected to central heating, 97 percent were connected to the sewage system and just 22 percent had proper bathrooms.

To remedy the situation, the city will put up around PLN 1.35 billion, with a further PLN 150 million coming from EU subsidies, for revitalization. The city plans to connect 267 council-owned buildings (4,800 apartments) to the heating network, as well as renovate 164 city-owned tenements with PLN 360 million in financing from BGK bank. The authorities will also build 860 new social housing units, 160 apartments designated for lease as well as modernize 670 apartments in older buildings. The revitalization program also aims to support local business and improve tourism to the area.

This program is clearly going to improve the desirability of Praga.

Two can play that game But it’s not that the revitalization of Praga’s historic buildings is being carried out by the city authorities alone. Private investors are also looking at what can be done with the district’s older buildings.

One such example is the Koneser project that is being carried out by Liebrecht & wooD and BBI Development. This mixed-use project is being developed on the former grounds of the Koneser Vodka distillery and involves the modernization, conversion and revitalization of a number of 19th century factory buildings. The project will entail the creation of 300 apartments, as well as 22,000 sqm of retail and service space with a further 22,000 sqm of office space. The project even includes a vodka museum. All of this

“FIVE YEARS AGO ONLY AROUND FIVE TO TEN PERCENT OF SOCIAL HOUSING HAD ACCESS TO THE CENTRAL HEATING PIPELINE.

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1,177 IS THE NUMBER OF HOUSES IN THE PRAGA DISTRICT OWNED

BY THE CITY, WHICH REPRESENTS HALF OF ALL THE CITY-OWNED HOUSING IN THE CAPITAL.

Strategic subway line However, the development of the underground, though important, is not an essential factor for the success of the project for Lebbe. “I would say that even without the metro station nearby, Koneser would still be a great place to live, work and relax.” This project is scheduled for completion in 2017.

It would be too much to state that the development of the metro line is completely without meaning for the region.

Bogumił Rutkowski the vice president of PPI Investments was far from blasé when talking about the meaning of the metro in relation to the company’s Blisko Praga project comprising 84 apartments, stating, “We had sold around 75 percent of the apartments two months before the completion of the metro. Such an investment could have been begun without an

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improvement in public transportation, but certainly at lower prices and a slower rate of apartment sales.”

Further industrial revitalization Koneser is not the only former factory site in the Praga district and Liebrecht & wooD and BBI Development are not the only developers in on the trend. Okam Capital is also developing its Bohema project around the former Pollena cosmetics factory, a building which dates back to 1899. This project should deliver 900 apartments to the area. The developer has stated that, “We want to give this place back to Varsovians, to create a new, vibrant center in the Praga District.”

Again the developer underplayed the importance of the development of the metro line: “Our interest in this place dates back to the period before the opening of the second metro line. Praga is becoming a trendy place in Warsaw and its bad image is retreating into the past.”

The developer plans to place cafés, restaurants and boutiques around the factory’s central chimney. Of course, the project also includes office space. It should be delivered in 2018.

It’s not just small industrial sites that are being invested in. In fact, there seems to be no shortage of large revitalization projects in the district, such as Port Praski, which comprises a 38-hectare site directly situated next to Poland’s National Stadium and served by both a railway and the M2 metro station. Eventually, the project will offer 160,000 sqm of

Images: Port Praski, Metro Warszawskie

is being created on a 5-hectare site in the historic North Praga quarter.

Marc Lebbe, the managing director of Leibrecht & wooD describes the site as magical. “When I saw Koneser for the first time some years ago, the very first thing that came into my mind was: ‘Wow, this is a place of enormous potential,’” he explained. The district’s surly reputation was of no consequence to him and he stated, “Of course, I’ve heard some stories about the district’s history and how it’s been perceived, but frankly, I have never experienced any problems here,” and he went on to say that, “generally, I think that the questionable reputation of Praga results mainly from stereotypes.”

LOKALE IMMOBILIA / URBAN PLANNING

far, two buildings have been completed: Kamion Cross with 173 apartments and Rebel One with 41 apartments.

Prices inch up There seems to be a clear preponderance for industrial revitalization projects in the district and for Lebbe, this comes as no surprise. “Unlike Wola or Służewiec, Praga has its own historic urban layout designed for living or working. So I can imagine projects based on re-use and revitalization of existing buildings here, rather than

new office parks.” Neither does he fear the competition of other developers in the area because they are all working to increase the value of the district.

However, this improvement is a slow process. “Generally developers are increasing asking prices by a few percent, but when you look at sales prices – the real transaction figures – there’s only a small movement up,” claimed Dzięcioł, but then he added that over the last five or six years apartment prices have increased by an average of two to three percent each year. u

Images: Port Praski, Metro Warszawskie

apartments. Currently, one building with 30 apartments, Krowia 6, has been renovated.

There is also the Black Lion Fund’s Soho Factory project, which is not particularly close to the metro line, but it is a short walk away from the central city rail line. It will eventually offer 120,000 sqm of apartments on a 8.17-hectare industrial site, where a number of factories used to produce armaments and cameras. The project is being built over many stages and completion is scheduled for 2023. So

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Northern opportunities

THE

A R L A FO O D S O F F I C E

B Y A DA M Z D R O D OW S K I

Beyond the south According to JLL data, the combined existing office stock in the Tri-City amounted to 518,000 sqm at the end of the first quarter of this year, making the market the fourth largest in Poland – after Warsaw, Kraków and Wrocław. Gdańsk, Gdynia and Sopot respectively boasted 343,000 sqm, almost 140,000 sqm and 35,000 sqm of office area. “The size of the market has doubled since 2008,” said Magdalena Reńska, associate director, office agency and tenant representation at JLL. The volume of completions will stand at 97,000 sqm this year, compared with the fiveyear average of 46,600 sqm, said a recent report by JLL. A number of major schemes are in

Images: Xplan

THE TRI-CITY OFFICE MARKET IS BOOMING, BENEFITING DEVELOPERS, TENANTS AND FIT-OUT COMPANIES

The Tri-City is now emerging as one of the most vibrant regional office markets in Poland, with demand for new class-A office space in the agglomeration currently outstripping supply. The BPO/SSC sector is the driving force behind the dynamic growth of the market.

While there is a considerable amount of under-constructed space in the Tri-City, prospective occupiers have already leased or reserved a sizable portion of the area available in the ongoing schemes. Also fit-out companies active in the region have been very busy.

W OJ C I E C H K A C Z M A R C Z Y K , PA R T N E R AT X P L A N

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L O K A L LEO IKMAM I AO B/ I RL E AE L LO E BI IML M I AS I /D E ON F FT I C

A DA R O F F I C E the pipeline, with projects accounting for a total of 86,000 sqm already having building permits. A combined 19,800 sqm of space was leased in the Tri-City in the first three months of this year. The vacancy rate on the market stood at 10.1 percent at the end of Q1 2015, down from the peak of 14.2 percent in Q2 2014, the JLL report said.

“The situation in the Tri-City real estate market has changed a lot over the last half a year,” said Mariusz Wiśniewski, senior associate director at the office space department of CBRE, adding that recently signed lease deals have helped absorb a sizable portion of the new space. At the moment, there is approximately 90,000 sqm of office area under construction in the Tri-City, part of which has already been leased or reserved by large tenants.

Much of the demand for office space on the market is generated by BPO/SSC sector occupiers. The companies usually already have a presence in Poland, most often in Kraków and Wrocław. While those markets remain attractive, they have, in a sense, become saturated, which has created new opportunities for other locations including the Tri-City, Wiśniewski said. “The tendency to go beyond the south started at the beginning of 2014 and is going to continue for at least four more years,” he added. According to Wiśniewski, the demand for class-A office space in the Tri-City has recently exceeded the supply for the first time since 2008.

Referring to the growth dynamics in the Tri-City, Reńska described the market as a rolling snowball. She pointed out that both developers and tenants remain very active, with the latter often deciding to expand in the region as they see their businesses grow.

The agglomeration has already attracted a considerable number of stable international companies – among them Bayer, Sony Pictures Entertainment, Amazon, WNS and Wipro – and their success is now encouraging others to enter the market.

Crucially, the outsourcing firms which have chosen the Tri-City usually increase the amount of office space that they occupy as they open new business lines and employ more people, Reńska said. Wiśniewski said that developers have responded by developing larger projects. To date, most of the new office space in the Tri-City has been coming from local developers. However, according to Wiśniewski, the growing demand and stable rents will attract such companies as Skanska, Ghelamco and AIG Lincoln, which have not been active in the market.

Value for money The growing development and leasing activity in the Tri-City has already translated into a burgeoning demand for office fit-out services in the agglomeration. Warsawbased fit-out company Xplan has found itself increasingly busy in the Tri-City market in recent months. “From month to month, we have been witnessing an incredible growth of the Tri-City market,” said Wojciech Kaczmarczyk, a partner at Xplan.

He added that the market has accounted for a half of the turnover that the firm has recorded since the beginning of this year.

Xplan was responsible for the fit-out of the entire office area in the Centrum Biurowe Neptun project which developer Hines delivered in Gdańsk last year. There, the clients of the company included Arla Foods, HSBC, Comarch, City Handlowy and ADAR. The firm is now working on fitting out a total of approximately 30,000 sqm of office space in four buildings in the the Tri-City area, Kaczmarczyk said. These include Dom Zdrojowy in Sopot (for Blue Media) and the Enter scheme in Gdynia (for mBank and C. Hartwig Gdynia).

According to Wiśniewski, the Tri-City agglomeration is very specific in that the quality of the office space which it offers is relatively high for a regional market.

The price-quality ratio is still very attractive there, compared to other large regional markets in Poland, he said. In his opinion, the Tri-City market is currently very open to new workplace strategies, with tenants increasingly implementing innovative solutions including shared desks, electric desks and multi-function reception areas.

Kaczmarczyk noted that apart from high-rise developments offering tens of thousands of leasable space, the modern office investments in the Tri-City also include luxury boutique projects in prime locations, which are targeted at some of the most demanding tenants. “It is true that the Warsaw market is setting the trends as far as the design of and approach toward modern office space are concerned, but it is in Gdynia and Sopot that the real office jewels are being developed,” he said. u

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L MNMEOUBRI S L I /A B/ OPOUKBS LY I C T R A N S P O R T EO NK TA RL EE P RI E

Thoroughfares B Y M AT T H E W C Z A J A

REFLECTING ON URBAN PLANNING IN THE CITY OF WARSAW, WBJ OBSERVER DECIDED TO TACKLE THE TOPIC OF TRANSPORTATION. WHAT WORKS, WHAT DOESN’T, AND WHICH AMBITIOUS PLANS WILL TAKE SHAPE IN THE UPCOMING MONTHS IS PRESENTED WITH INCREASING CLARITY, AS FUNDING FOR ECOLOGICAL BUSES AND RAIL INFRASTRUCTURE IS READILY AVAILABLE. THE UPCOMING CHANGES COULD INFLUENCE REAL ESTATE DECISIONS DRAMATICALLY, AND HOPEFULLY FOR THE BETTER

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We’ve all had the uncomfortable experience of being cramped inside a steamy bus with sweating bodies besieging us from each side.

Nonetheless, the transportation system in Warsaw is still one of its best sides. Compared to other European cities, Warsaw fares very well with regard to transportation. About seventy percent of Varsovians walk, cycle or take public transportation to work. One asset is an integrated ticket for a network that spans the entire city, including fast urban rail, tram, underground and bus connections. According to research conducted during the Euro 2012 championships, foreigners spoke in superlatives about Warsaw’s transportation network.

They were impressed with the punctuality, the density of stops and coordination of various transportation modes. The public transit authority has a lot more on tap.

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Expanding urban rail With Polish Railways (PKP) and HB Reavis building a huge office complex at the Warsaw West station, this transportation hub is bound to grow in importance. The new station will be accompanied by an office complex dubbed West Station, totaling 67,000 sqm of office space. It’s proximity to Wola will no doubt necessitate new rail connections.

Regarding new fast urban rail lines, there are plans for new stops to be erected in Wola and Bemowo, among others. “In order to increase rail connections and stations, cooperation with the PKP PLK railway operator is key.

“The city, in cooperation with rail authorities, is responsible for the recently opened Ursus Niedźwiadek station. So it’s possible,” said Igor Krajnow, press secretary for the Warsaw Transportation Authority. Coincidentally, Ur-

ENTREPRENEURS / BOOKSY

sus is to become home to one of the biggest new housing urban development projects in Warsaw.

“Such new stations may appear in the near future at Powązki cemetery, Wola Park and Fort Wola shopping centers. The new stations serving Bemowo and Wola could facilitate the opening of new urban rail lines, among them Ożarów Mazowiecki-Rembertów, an exotic connection, which is impossible today.” With the EU’s 2014-2020 financial framework focusing on rail investments, the sector’s growth will speed up quite a bit. (For more info, see our article about the rail sector in the April 2015 issue of WBJ Observer).

{

Images: ZTM Warszawa

New connections Besides trains, there are plans for a new tram line to Gocław. The inhabitants of this part of the city led an active campaign to implement some sort of fast connection for the neighborhood: bus rapid transit, tram and metro connections were taken into consideration. Further solutions incorporating bus systems will be looked into, since the city has received the green light for funds to purchase ecological buses (electric, hybrid or gas). The city has recently been testing an electric bus variant on the Royal Route in the city center.

In addition to Gocław, the city has announced a planning project for a tram connection to Wilanów. This line will roughly follow the path from the West Train Station through Ochota, Mokotów and will end in Wilanów, with a node connecting to the first metro line in between.

Clashing interests Investors in Warsaw are starting to feel the need for proper planning of transportation.

According to the transportation authorities, development plans for new business

SŁUŻEWIEC TRAMS HAD BECOME A SORT OF URBAN LEGEND, WITH THE MORNING COMMUTERS RESEMBLING REPTILES, PRESSED HARD AGAINST THE GLASS OF AN AQUARIUM.

parks often disregard possible solutions for transportation. Once these investments are built, employees have a hard time traveling to and from work. For example, traffic in the Służewiec area is maxed out, and adding new transportation lines is simply not possible.

“This is usually followed by lament and calls for improved transportation, but such a solution is overdue by the time buildings have already been built,” said Krajnow. Adding to the pain of Służewiec this summer, is construction along the Woronicza-WołoskaMarynarska tram line, where the suspended tram connection has been replaced by bus lines. This will no doubt have a dramatic effect on the efficiency of the employers in this part of the city and may encourage tenants to seek other well-connected business districts in the future. Służewiec trams had become a sort of urban legend, with the morning commuters resembling reptiles, pressed hard against the glass of an aquarium.

A lack of solid transport has long-lasting repercussions on the value of investments and their appeal to tenants. But not all is doom and

gloom. “If investors seek out advice and plan with a longer term perspective in mind, they will find that there are fantastic places in Warsaw with lots of potential,” said Krajnow. The importance of consulting was underscored by Joanna Mroczek, director of CBRE Research & Marketing. According to Mroczek, getting to know investment opportunities through local consultants is the insurance policy that investors and tenants can utilize before making a move.

It is wise to build in places where the network is already, at least partially, in place.

The method of building offices first, and then trying to bring transportation to them is very unsound and may prove to be difficult to implement in the near future. This is the case of the newer area of Wilanów, which was built first and now the city is trying to mitigate its connection problems by building a potential tram line. On the other hand, the Wola district has an interlaced transportation network right in its center. It is crisscrossed by multiple tram lines, a metro line and is serviced by a commuter train lines.

Harmonious coexistence Cyclists and automobile drivers have long been at odds. According to the International Organization of Motor Vehicle Manufacturers, Poland has an ever-increasing motorization rate, with 600 automobiles per 1,000 inhabitants nationwide. The prevalence of road transport investments and a cultural shift to the automobile is very strong in Poland. It’s very difficult to convince people to leave the convenience and comfort of individual cars.

But drivers must consider that it’s simply not possible to provide wider thoroughfares in the inner city.

“We want to provide alternatives and many options for Varsovians. This includes

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cycling, walking, public transportation or even carsharing and bikesharing,” said Krajnow.

The entire idea is to spread out the congestion and allow drivers to use Park & Ride lots and continue their travel using the Metro.

Likewise, carsharing utilizes fewer cars providing transport for more people, consequently freeing up parking spots in the city, which are usually packed with employees’ private cars during daytime hours.

The city council is about to give the green light for a carsharing project. It will be a freeflowing system, where users will be able to park in any legal parking spot. Registration will be necessary and there will be a system of fees – the carsharing project will be self-financing, and will not require additional funds from the city. The operator of this new system will be selected through a tender.

As mentioned before, the share of public commutes in Warsaw’s modal split is high, so there should be no problem in popularizing diversification of travel. Park & Ride lots are free for people who have a public transportation ticket – with time, this incentive has attracted more and more users. It’s an efficient way to avoid parking fees in the city center.

Of course there are those people who refuse to budge from the steering wheel, even if it

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THE CITY COUNCIL IS ABOUT TO GIVE THE GREEN LIGHT FOR A CARSHARING PROJECT. IT WILL BE A FREE-FLOWING SYSTEM, WHERE USERS WILL BE ABLE TO PARK IN ANY LEGAL PARKING SPOT.

means sitting in hour-long traffic jams. But this is bound to change, as the realization sets in that driving within a congested city is no fun at all.

To be fair to drivers, the monthly “Critical Mass” bicyclists parade, which closes down a number of streets during rush hour, is a very aggressive way to try to influence biking laws in the city, to the ire of people who may not at all be against increased bike lanes. The bitterness between drivers and cyclists is quite visible at times. Nonetheless, new green office parks are equipped with bike stands and this is increasingly in demand among employees of corporate offices, according to Mroczek. “Tenants are becoming more and more demanding of a location. They want to have green space, bicycle paths and good transportation routes to and from work,” Mroczek added.

“The city must carry out a consistent transportation policy in order to prevent chaos and a paralysis of important neighborhoods. Our goal is to enable a mobile society, where any citizen, at any given place and time has alternatives and options for moving around, perhaps combining bike, walking and motor transport in one trip. That’s the essence of mobility,” summed up Krajnow. u

Images: ZTM Warszawa

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CITYSCAPE / BIAŁYSTOK

Did you know?

Białystok has traditionally been one of the leading centers of academic, cultural and artistic life in the Podlaskie region.

In the 18th century, the Branicki family, and most notably Count Jan Klemens Branicki, a Crown Hetman, built their palace in Białystok. Largely influenced by the lavish French architecture of the period, the Branicki palace became known as the “Versailles of Poland.”

Unfortunately, the palace suffered large-scale damages during WWII, with 75 percent of the structure devastated.

The palace has since been masterfully rebuilt, and is now the headquarters of the Medical University of Białystok and a main tourist attraction in the Podlasie region.

Favorite daughter

Eastern stronghold

The first written mention of the city’s existence dates from 1426. Initially, it was only a crossroads connecting several villages, but with time it was transformed into a thriving city. Buildings such as churches and taverns initiated the growth of the city, with a gothic renaissance palace of the Branicki family being the icing on the cake.

In 1939, Białystok served as the head-

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quarters of the Polish communists who later came to power in 1945. In 1941, Białystok was invaded by the Nazi army and a Jewish ghetto was established.

Three years later, the citizens’ attempt to liberate the city from the hands of the occupying forces ended in severe demolition of the city’s structures. In the aftermath of the Second World War, Białystok was rebuilt, but it never fully regained its previous appearance and character.

Białystok is the birthplace of numerous widely-known personalities, e.g. Ludwik Zamenhof – the inventor of the international language Esperanto, the actress Izabella Scorupco and football players Tomasz Frankowski and Wojciech Kowalewski.

Izabella Scorupco is a Polish-Swedish actress, singer and model. She is most famous for her role as Natalya Simonova in the 1995 James Bond film “GoldenEye.” Aside from her career as an actress, Scorupco modeled in Europe throughout the 1980s. She had a brief stint as a pop singer, and her album “IZA” was certified gold in Sweden. In 2012, Scorupco hosted Sweden’s Next Top Model.

Images: Shutterstock, Białystok City Hall

B

eing the biggest and the most populated city in the northeastern part of Poland, Białystok gathers within its gates numerous attractions and buildings of historical heritage. It lies in the picturesque region of Podlasie. Literally, the city’s name means “white slope.”

LONDON 1,588 KM PARIS 1,527 KM BERLIN 659 KM

MOSCOW 977 KM

PRAGUE 692 KM

ROME 1,485 KM

MAYOR: TADEUSZ TRUSKOLASKI AREA CODE: 85 AREA: 102 SQ KM

POPULATION (DEC. 2013) 295,282

MAJOR AIRPORT NONE MAJOR ROAD S8

WORKING-AGE POPULATION (DEC. 2012)

193,523

UNEMPLOYMENT RATE (JULY 2014)

12.7% AVERAGE PAY (DEC. 2013)

PLN 3,627.02 MODERN OFFICE SPACE 41,600 SQM

NUMBER OF UNIVERSITIES (VOIVODSHIP)

18

NUMBER OF STUDENTS (VOIVODSHIP)

34,072

NUMBER OF GRADUATES A YEAR (VOIVODSHIP)

9,991

MAJOR INDUSTRIES: Furniture, FMCG, Machinery

OFFICE VACANCY RATE 4.3% PRIME HEADLINE RENTS €8.00-€10.00

SOURCE: JLL

WBJ OBSERVER • JUNE 2015

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TOP SPOTS IN CORPORATE SERVICES Impel Business Solutions Business Process Outsourcing Companies/HR and payroll ASM Group Business Process Outsourcing Companies/Marketing and sales Sii Business Process Outsourcing Companies/IT PwC Instytut Studiów Podatkowych Modzelewski i Wspólnicy – Grupa ISP Kancelaria Ożóg i Tomczykowski

Tax Advisory Companies/ Large enterprises Tax Advisory Companies/Medium-sized enterprises Tax Advisory Companies/Small and micro enterprises

Rödl & Partner Accounting and Auditing Companies/Accounting PwC Accounting and Auditing Companies/Auditing PwC Business Consulting Companies/Large enterprises Business Consulting Companies/Medium-sized enterprises WYG International

Capital One Advisers Business Consulting Companies/Small and micro enterprises Grupa Kapitałowa Accenture

IT Consulting Companies

Faber Consulting

European Union Funds Consulting Companies

Grupa HRC HR Companies/Executive search Hays Poland HR Companies/Executive search (other) Adecco Poland

HR Companies/Recruitment & selection HR Companies/Temporary work agencies Grupa Randstad Dentons International Law Firms Sołtysiński Kawecki & Szlęzak Kancelaria Radców Prawnych i Adwokatów Polish Law Firms Millward Brown Market Research Companies Lionbridge Poland

Translation Companies

Partner of Promotion

Sodexo Polska

Public Relations Companies

Catering Companies

arvato Polska (oddział Bertelsmann Media)

Direct Marketing Companies

Międzynarodowe Targi Poznańskie

Fair Organizers in Poland

Grupa Solid

Security Companies

CONSTRUCTION AND REAL ESTATE Sodexo Polska

Real Estate Management Companies CBRE

Commercial Real Estate Agents Commercial Real Estate Developers - Office Skanska Property Poland Budimex General Contractors Aecom Construction Project Management Companies Panattoni Europe Warehouse Space Developers Prologis

Warehouse Space Operators CH2M Hill Polska Architectural Firms Robyg Residential Developers

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2015 2016 E D I T I O N

FINANCIAL SERVICES Banks in Poland Powszechna Kasa Oszczędności Bank Polski Dom Maklerski Banku Handlowego Brokerage Firms Debt Collection Companies KRUK

Factoring Companies ING Commercial Finance Polska Pension Funds ING Powszechne Towarzystwo Emerytalne Investment Fund Management Companies Towarzystwo Funduszy Inwestycyjnych PZU LeasePlan Fleet Management Polska Leasing Companies Insurance Companies Powszechny Zakład Ubezpieczeń

MOTOR INDUSTRY AND FREIGHT Grupa Raben Transport, Shipping and Logistics LeasePlan Fleet Management Polska Car Fleet Management Firms Express Car Rental Companies Express Courier and Messenger Firms GK DPD Polska

Moving and Relocation Companies Universal Express Relocations

EDUCATION Learning Systems Poland

Language Schools Wyższa Szkoła Bankowa we Wrocławiu Business Schools Akademia Leona Koźmińskiego MBA Programs MDDP Akademia Biznesu Training Companies

IT AND TELECOMS Telecom Operators and Internet Providers Grupa Orange Polska Software & Hardware Producers Asseco Poland Comarch Systems Integrators ABC Data Computer Hardware and Software Distributors

TRAVEL AND LEISURE

Sofitel Warsaw Victoria Double Tree by Hilton & Conference Centre Warsaw Carlson Wagonlit Polska

Business Hotels in Poland /5* Business Hotels in Poland /4* Travel Management Companies

BUSINESS AND INDUSTRY PKN Orlen Exporters in Poland Wrocław Technology Park Technology Parks

INSTITUTIONAL PARTNERS

EVENTS / PRIVATE EQUITY DIAMONDS

DIAMONDS ARE FOREVER The awards gala summed up the sixth edition of the “Private Equity Forum & Awards Gala” organized by the Executive Club.

In the prestigious “Private Equity Diamonds” competition under the auspices of the Polish Private Equity Association, the most outstanding players in the Polish Private Equity sector were honored in ten categories.

The conference gathered leaders focused on the dynamically developing Polish Private Equity sector in discussions on key development topics within the industry. The “Private Equity Diamonds” is an integral part of a conference organized by the Executive Club. This year’s “Private Equity Diamonds” competition was held in two stages. In the first stage, candidates reported on their own, they could also be recommended by a member or members of the jury. During the second stage of the competition, winners were chosen by a public vote of jury members in five categories: Fund of the Year, Bank of the Year, Corporate Finance Advisor of the Year, Legal Advisor of the Year and Private Equity Personality – an award for lifetime achievement. In other categories, the winners were selected by voting members of the competition panel.

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“This year’s edition of the contest was exceptional. ... In the first stage of the competition, we had as many as 128 applications, which was a record result,” said President of the jury, Director of the Polish Private Equity Association, Barbara Nowakowska in the Gala’s opening speech.

The results of this year’s “Private Equity Diamonds” were: 1. Fund of the Year: tie between Innova Capital and Abris Capital Partners 2. Bank of the Year: mBank 3. Portfolio Company (small cap): Vivid Games 4. Portfolio Company (mid cap): home.pl 5. Portfolio Company (large cap): Work Service 6. Exit of the Year: Masterlease 7. The most innovative portfolio company: easyPack 8. Legal advisor of the year: tie between CMS and Weil Gotshal & Manges 9. Corporate finance advisor of the year: Rothschild 10. Private Equity Personality – award for lifetime achievement: Krzysztof Krawczyk, Managing Partner, Innova Capital

Images: Executive Club, ABSL

“PRIVATE EQUITY DIAMONDS” WERE HANDED OUT ON JUNE 8TH TO THE BEST ENTITIES IN THE PRIVATE EQUITY SECTOR DURING THE AWARDS GALA AT THE INTERCONTINENTAL HOTEL

EVENTS / ABSL

THE GROWING ROLE OF POLAND IN EUROPE ONE THOUSAND BUSINESS LEADERS AND SECTOR STAKEHOLDERS IN ATTENDANCE, OVER 80 SPEAKERS, 40 PANEL DISCUSSIONS AND PRESENTATIONS - THESE ARE THE MOST IMPORTANT FIGURES SUMMARIZING THE 6TH ABSL CONFERENCE, HELD ON JUNE 16-17TH 2015 IN KRAKÓW The highlight of the event was a keynote address from Tony Blair, Prime Minister of Great Britain and Northern Ireland from 1997–2007 and one of the world’s most acknowledged political leaders. Blair told the ABSL audience that Poland should be proud of its achievements and mentioned the rapid development of the business services sector as one of the elements of the country’s economic success.

Other speakers included influential personalities from the world of business and politics, who presented the latest megatrends within the industry and beyond: Aleksander Kwaśniewski, former President of Poland, Jan Krzysztof Bielecki, Chairman of the Partners Board at EY Poland and former Prime Minister of Poland, as well as Jan VincentRostowski former Deputy Prime Minister of Poland former and Minister of Finance.

The Annual ABSL Report presentation

On day one of the conference, “The Business Services Sector in Poland 2015” ABSL report was presented. This is the only research of its kind analyzing sector development in the country. According to the report, there are 150,000

specialists employed in foreign capital service centers operating in Poland. This means that 22,000 new jobs were created in just 12 months. By 2020, employment may hit the 250,000 mark. ABSL research indicates that Poland is well on its way to becoming one of the sector’s global leaders.

One of this year’s plenary sessions’ focal points was the changing role of Poland in the region and in Europe. Participants discussed how to boost the country’s economic potential. The closing panel revolved around Poland making its way to the G20. Another key motif of conference discussions was the rise of technology – how it influences innovation, leadership and all the other elements of the modern global environment.

Addressing top challenges for business practitioners

The plenary sessions were complemented by breakout streams, during which specific and most pressing challenges for business practitioners were discussed. Also, a new stream was added this year – Interactive Demo Labs, which gave a hands-on experience of technology solutions tailored specifically to sector needs.

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E EV VE EN NT TS S // B BO OO OK K O OF F L L II S ST TS S GGAALLAA

BOOK OF LISTS GALA The 20th anniversary Book of Lists Gala, was attended by nearly 200 guests.WBJ Group handed out three Spotlight Awards (Microsoft Polska, Metro Properties and ASM Group) and for the first time Rising Star Awards (Energia dla firm, Polenergia and KR Group). The Lifetime Achievement distinction went to KPMG, while La Perla clinic received a certificate for innovations in aestethic medicine

Images: Roxana Dawid/WBJ, J.A. Baczewski

SOME OF THE LUCKY GUESTS WENT HOME WITH SPECIAL PRIZES

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EVENTS / BOOK OF LISTS GALA

Images: Roxana Dawid/WBJ, J.A. Baczewski

THE GALA TOOK PLACE IN THE ELEGANT UFICIO PRIMO AND CONNECTED REPRESENTATIVES OF ALL BRANCHES FEATURED IN THE BOOK OF LISTS. IT WAS A FANTASTIC OPPORTUNITY FOR NETWORKING AND SOCIALIZING

(L-R) BOGUSŁAW KOWAL, DIRECTOR OF KPMG; MONIKA BRYSIAK BOOK OF LISTS PROJECT MANAGER; TADEUSZ ROBIŃSKI, MANAGING DIRECTOR OF KR GROUP

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(L-R) MARTA DIOP, SALES DIRECTOR SODEXO POLSKA; KATARZYNA SKIPOR, MARKETING DIRECTOR OF SODEXO POLSKA

(L-R) PIOTR OSTASZEWSKI, PRESIDENT OF ENERGIA DLA FIRM; MAGDALENA SAWICKA, MARKETING AND COMMUNICATIONS MANAGER ACCENTURE; TOMASZ BARAﾅイZYK, PARTNER AT PWC

ABOVE (L-R) JACEK CIESNOWSKI, EDITORIN- CHIEF WBJ GROUP; MORTEN LINDHOLM PUBLISHER WBJ GROUP; RONALD BINKOFSKI GENERAL DIRECTOR OF MICROSOFT

Images: Roxana Dawid/WBJ, J.A. Baczewski

DOWN (L-R) ADRIAN ZAWADZKI, HEAD OF MARKETING AND PR METRO PROPERTIES; ADAM STAﾅイZAK PRESIDENT OF ASM GROUP

PIOTR MACIOﾅ・K, DIRECTOR OF POLENERGIA

(L-R) TOMASZ PAWLAK, SALES DIRECTOR AT WBJ GROUP; KAROLINA SZOSTAK TV PRESENTER, TOMASZ JACYKÓW, FASHION STYLIST; KALINA BEN SIRA, CEO OF CLINICA LA PERLA

GUEST WERE TREATED TO A COMPLIMENTARY BUFFET AND BEVERAGES PROVIDED BY DOM WHISKY JASTRZĘBIA GÓRA AND CIN&CIN. JAZZY AND BLUESY TUNES CAME FROM THE PIANO OF ZBIGNIEW PISZCZEK.

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Images: Roxana Dawid/WBJ, J.A. Baczewski

E EV VE EN NT TS S // B BO OO OK K O OF F L L II S ST TS S GGAALLAA

EVENTS / BOOK OF LISTS

GALA

1

2015 2016

st

PLACE

Grupa Kapitałowa Accenture

in the Book of Lists 2015/2016 ranking

IT Consulting Companies

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Publisher of Warsaw Business Journal Group

Book of Lists Project Manager

Morten Lindholm

Monika Brysiak

J U LY / A U G U S T 2 0 1 5 • W B J O B S E R V E R

EVENTS / BOOK OF LISTS GALA

O rg a n i z a t o r zy

WBJ Group would like to thank our partners

Industry partners

Pa r t n e r z y m e r y t o r yc z n i

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Pa rtnerz y

2015 2016

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Partners

1

2015 2016

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PLACE

PLACE

Sodexo Polska

Sodexo Polska

in the Book of Lists 2015/2016 ranking

Real Estate Management Companies

in the Book of Lists 2015/2016 ranking

Catering Companies

Publisher of Warsaw Business Journal Group

Book of Lists Project Manager

Publisher of Warsaw Business Journal Group

Book of Lists Project Manager

Morten Lindholm

Monika Brysiak

Morten Lindholm

Monika Brysiak

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>>

GADGETS TECHNOLOGY TO MAKE YOUR LIFE EASIER

SleepPhones WE LIVE IN AN AGE OF GADGETS: These “headphones in a headband” will certainly some are useful, but most are just make you sleep faster surrounded by your favorite tunes. SleepPhones were designed by a family doctor a waste of time and money. We sift and provide wearable comfort that’s literally music to your ears. Ideal for sleep, travel, yoga and leisure through the latest tech available The machine-washable headband is made from to pick those that we believe will help time. recycled materials and a free iPhone app is attached. you live your life more comfortably Price: $39.99 and confidently.

Sleepphones.com Kyocera TASKalfa 2551ci

Price: €2,100

Kyocera.com

The Wireless Page To TV Magnifier

Though it looks like one, this gadget is not a computer mouse.

In fact it allows you to transmit enlarged text and images to your television. By magnifying what you wish to see by up to 70X, each detail is visible. The built-in LED ensures that the view is bright.

You can choose if you want to see the text in black on a white background, white on a black background, or in color. A perfect device, provided you are tired with reading microscopic content or simply want to share something with your family and friends.

Hammacher.com

>>

Price: $69.95

DoorFilter

If you have ever complained over the air quality in your apartment, you can now sleep peacefully. The Canadians have invented the DoorFilter – a remedy for daily predicaments. The device is fitted to the bottom face of a door and lined with a door sweep. Thanks to a removable filter inside, indoor air irritants, such as odor, dust, or cooking fumes, are not a problem anymore.

Protection against pests, allergens, noise and light from the corridors is guaranteed as well. The producer also hails DoorFilter’s impact resistant material.

Price: $49.99

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>>

Images: Kyocera, Hammacher, Sleepphones, Doorfilter

>>

This device offers you all the functions you can expect from a sophisticated multifunction printer. It prints up to 25 pages per minute. It also copies and scans A6-A3 documents and can be supplemented with a fax function. All these functions can quickly and easily be accessed via the large touch screen. Moreover, the various paper handling and finishing options allow you to increase the standard paper capacity of 1,100 sheets to 4,100 sheets. In addition, you can have your documents stapled and punched by the 1,000-sheet finisher.

HAVE APP, WILL TRAVEL

THE HOLIDAY SEASON IS UPON US. In this day and age, being a tourist can be much easier and cheaper. Forget guides, maps and dictionaries. With downloadable apps, you can visit most of the places in the world and have great fun doing so. Whether you want to see the most popular places or stay off the beaten path, we’ve chosen a few applications that should help you with your holiday experience and they’re all free!

Rome2Rio

Rome2Rio is an all-in-one app. It helps you find connections from point A to point B, whether you’re looking to get across the city or the globe. It searches airline, train, bus and ferry operator schedules to find the most convenient way to get to your destination. It can also look up hotel rooms and car rental rates.

Available for: iOS, web

Free Wi-Fi Finder

Most of the applications mentioned in this article require an internet connection. Data transfer fees can rack up a hefty bill. Free wi-fi spots are getting more common, but finding such in unknown places is not easy. This app solves the problem by showing the nearest spot on a map. It filters results by location (cafe, hotel, etc.) or provider type and it works in both offline and online mode.

Available for: iOS, Android

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City Maps 2Go

City Maps 2Go is basically an offline version of google maps. Meaning you don’t need an internet connection to navigate around a place (you need to download the map beforehand though). It also gives you directions, popular tourist attractions, shop locations, restaurant reviews, etc. The app is free, but some maps need to be purchased.

Available for: iOS, Android

Foodspotting

If you like discovering new tastes during your travels, Foodspotting is the app for you. You can search places in your vicinity by a particular type of cuisine or a dish that you are craving for. You can browse through user recommendations and pictures of dishes. You can follow your friends or experts and see what they enjoy and share your own culinary experience with others.

Available for: iOS, Android, Windows Phone, web

Images: Rome2Rio, Free Wi-Fi Finder, Google, Foodspotting, TripAdvisor, City Maps 2Go

TripAdvisor

TripAdvisor is one of the most popular websites for tourists. It’s basically a user-created database of various places worth seeing at your destinations. From museums, tourist attractions to restaurants and shopping. Each place comes with a review which helps you decide whether it’s worth going there. It also offers maps (powered

by Google maps). Since 2014, it has had an offline feature which lets you download individual cities along with maps and reviews.

Available for: iOS, Android

Google Translate

Everyone knows Google Translate. It can translate text in pretty much every language known to mankind, oftentimes, with very hilarious results. But the mobile app has very useful features for tourists. It can translate texts captured by your phone camera. Point it at the street sign or a restaurant menu, snap a picture and the app should translate it for you. This can really help out on your trips. Google has also implemented a voice recognition function, which, in theory, could translate conversations in real-time, just like Star Trek’s universal translator.

Available for: iOS, Android, Windows Phone, web

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FIVE WAYS TO ENJOY THE SUMMER IN WARSAW Warsaw is no doubt, enticing. But it is during the few summer months each year that the city transforms into something really breathtaking. The sun makes a long appearance; the trees are full and plenty and the people? Everywhere. Suddenly, endless outdoor options pop up as a means of passing time. It is almost a sin to stay cooped up indoors in front of an electronic screen and not take advantage of the weather at its peak. If, for some reason, you don’t know how to entertain yourself during the summer, here is a list of tried, tested and approved things to do GRAB A MEAL AT PLAC ZBAWICIELA Known as the hipster destination of Warsaw, Plac Zbawiciela is surrounded with artsy bistros and modern cafes. It’s animated and diverse. Thai restaurant, Tuk Tuk is located just opposite the iconic rainbow, as is Charlotte, a slightly fancier, always busy bakery (even the stairs leading up to the café can be packed, especially in the evenings) with some of the best French patisseries I’ve tried – their breakfast menu is to die for. Plac Zbawiciela offers a lively summer ambiance – a place to walk or ride your bike to, eat a meal outside and just enjoy the sun while it lasts.

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LIFESTYLE / SUMMER IN WARSAW

Images: Shutterstock, Vedika Luthra/WBJ

LISTEN TO LIVE MUSIC AT ŁAZIENKI PARK There’s a reason crowds walk through Łazienki park daily. Obviously there’s the essential natural aspect – the park is home to century-old trees embellished with shades of green and neat, freshly bloomed flowers. There’s also an architectural aspect that is well associated with this particular area. But what makes Łazienki special in the summer, is the music – Chopin concerts. Each year since 1959, skilled pianists have performed on Sundays at noon and 4 pm at Chopin concerts in Łazienki Park. Listening to Chopin’s Mazurka on a lazy Sunday after a walk through one of Warsaw’s prettiest parks is like the ice cream on top of a slice of Szarlotka. If you haven’t attended a Chopin concert, you haven’t properly experienced Warsaw.

STROLL THROUGH THE ROOFTOP GARDEN AT THE WARSAW UNIVERSITY LIBRARY An architectural masterpiece, the Warsaw University library offers far more than the average book.

Surrounded by plenty of greenery, a public garden that makes me reminisce New York City’s High Line is situated atop the structure itself.

The upper portion of the garden gives a breathtaking view of Warsaw’s skyline and the Wisła River amongst other sights. Within the garden, is a variety of flora, a display of art, small ponds and benches scattered on the pathways for visitors and students.

The library is located in close proximity to a variety of cafés and restaurants, which makes it a perfect location for a summertime stroll.

SPEND SOME TIME BY THE WISŁA The banks of the Wisła River have become one of the most happening places in Warsaw. The river is long, and so is the liveliness that flows downwards with the running water.

There’s always a ton of stuff to do here – from taking exercise classes (from July 4 to September 12) each Saturday at Pomost 511, to sunbathing at the closest local thing you’ll ever find to a beach – at the Plaża nad Wisłą in Praga. Here, you’ll find an active nightlife – the river banks teem with bars and clubs. To satisfy hungry Varsovians, Food Port, a permanent spot for food trucks has very recently opened up near the Poniatowski bridge. Take advantage of summer by the Wisła while it lasts.

it’s at Nowy Świat where you dine at the finest, experience Warsaw nightlife in full swing and discover all the latest food trends. During the summer, these places are bigger and bolder than before, bursting with energy and spirit.

You definitely do not want to miss a summer evening in one of these areas.

PASS AN EVENING AT THE OLD TOWN AND ON NOWY ŚWIAT Yes, these places are well known amongst tourists. And very common with the locals. But for good reason, obviously – because it’s at the old town square where you can buy mile-high cones piled with swirls of ice cream, warm Zapiekanka’s, vendors selling intricate, watercolor paintings and antique stores with a collection of vintage items. Not to mention the colorful buildings that turn a shade warmer under the evening sun. And

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JAPANESE ART PAYS A VISIT TO WARSAW W

ith no doubt, this is a rare opportunity to see one of the finest Japanese artifacts displayed in one place in Poland.

The National Museum in Warsaw in cooperation with the Manggha Museum Kraków, the National Museums in Wrocław and Poznań as well as the Museum of King Jan III’s Palace in Wilanów, Warsaw has prepared an exhibition of world-class masterpieces from the domestic public collections titled “Masterpieces of Japanese Art in Polish Collections,” including the famous Katsushika Hokusai’s and Andō Hiroshige’s ukiyo-e woodblock prints.

The exhibition in Warsaw is part of a series of similar displays organized in Wrocław, Toruń and Stalowa Wola.

The entire event celebrates the 20 year history of the Manggha Museum founded by director Andrzej Wajda and his spouse Ewa Zachwatowicz, who have always been impressed by Japanese culture.

“There is the sophistication and flamboyance of forms next to noble minimalism and imperfection caused by passing time, next to unequalled mastery of craft – all that united by a

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flawless sense of beauty,” this is how Anna Katarzyna Maleszko, the custodian of the exhibition in Warsaw described the nature of the Japanese art. The exhibition is a journey throughout the Edo period, when woodblock painting was born, until contemporary Japan. It encompasses, created with great care, 300 artifacts from the 17th–20th centuries representing various art genres, including: scroll painting from the Edo and Shōwa periods, wooden Buddhist sculptures from the 17th–20th centuries and miniature ivory sculptures from the 18th–20th centuries. Visitors may also marvel at mentioned ukiyo-e and shin-hanga woodblock prints, ceramics, lacquerware and cloisonné enamel objects as well as metalware from the periods of Edo (1600–1868) and Meiji (1868–1912) through the 1960s. Hokusai’s The Great Wave of Kanagawa should certainly not escape any visitor’s remark, as it is the most famous woodblock print of all time. A precious porcelain (17th– 18th centuries) and lacquerware from the Museums in Poznań and Warsaw and from Wilanów Palace are also displayed to satisfy one’s sense of aesthetics. Some

of the pieces are displayed from time to time at the National Museum in Kraków and the Manggha Museum, therefore if one has already had a chance to see them, he/she may not be impressed with this part of the exhibition. However, the exhibits at the disposal of the National Museum in Warsaw have been hidden from audiences for a long time.

Furthermore, for one who is interested in the history of Japanese arms, Samurai armor or any other elements of military equipment will not be on display there, except for swords and tsubas.

The display at the National Museum in Warsaw is available until August 9, there is also a rich program of events accompanying the exhibition, such as a series of lectures and workshops. In addition, the organizers have prepared a special publication “Masterpieces of Japanese Art in Polish Collections” and a music album titled “The collection of the National Museum in Warsaw – Japan.”

Visiting the exhibition is highly recommended not only for those who study Japanese culture and art, but for anyone who simply adores beautiful things.

Images: National Museum in Warsaw

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