WBJ #13 2011

The state could sell almost 26% of leading lender PKO this year

Self-defense’s Andrzej Lepper has gotten a “get out of jail free” card

Timepieces and an electric car – this week’s Techeye is nothing to sneeze at

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WWW.WBJ.PL

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VOLUME 17, NUMBER 13 • APRIL 4-10, 2011 . z∏.12.50 (VAT 8% included) . ISSN 1233 7889 INDEX-RUCH-332-127

REAL ESTATE

Since 1994 . Poland’s only business weekly in English

A nation divided

COURTESY OF ECHO INVESTMENT

Lokale Immobilia

It’s been one year since Smolensk, and Poland’s wounds are still raw

• Mall expansions • PKP land sale • Work on Le Palais 15-19

12-13

Prescription for profit?

Polfa Warszawa’s president, Krzysztof Berndt, talks privatization in the pharma sector

A guide to Polish business and industry

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Przewodnik po polskim biznesie i gospodarce

Passenger airlines serving Poland 21

News . . . . . . . . . . . . . . . . . . . . . . .2-4 Industry News . . . . . . . . . . . . . . .5-6 Business Environment . . . . . . . . . .7 Interview . . . . . . . . . . . . . . . . . . . . .8 Listed Firms . . . . . . . . . . . . . . . . . . .9 Business Community . . . . . . . . . .10 Cover Story . . . . . . . . . . . . . . .12-13 Markets . . . . . . . . . . . . . . . . . . . . .14 Lokale Immobilia . . . . . . . . . .15-19 The List . . . . . . . . . . . . . . . . . . . . . .21 Arts & Culture . . . . . . . . . . . . . . . .22 Last Word . . . . . . . . . . . . . . . . . . . .23

¸UKASZ MAZUREK/WBJ/SHUTTERSTOCK

In this issue

Hands-off on Libya

EDF says ‘non’ to Enea

The government’s “no-guns” policy on Libya is popular with the people 3

Yet another attempt to sell Enea, the nation’s third-largest utility, has failed

A GUIDE TO POLISH EXPORT will h it sh elves in April 2 0 1 1 !

For advertising and promotion opportunities contact: Agnieszka Brejwo: abrejwo@wbj.pl; (+48) 639-85-68, ext. 226

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NEWS

www.wbj.pl

Parliament relaxes drug law Parliament has passed an amendment to the current anti-narcotics law allowing prosecutors to avoid prosecuting citizens apprehended with “insignificant” amounts of narcotics or psychotropic substances intended for personal use; previously even possession of small amounts had to be prosecuted. The amendment is intended to allow the authorities to focus on drug dealers. It passed with 258 MPs voting for it, 159 against and six abstaining.

GW reporter charged in Belarus Belarusian prosecutors have pressed charges against Andrzej Poczobut, a Gazeta Wyborcza correspondent in Grodno, Belarus. The journalist could face up to two years in jail for writing articles which, according to Belarusian prosecutors, included “groundless fabrications” against President Alexander Lukashenko.

Poles feeling pretty A recent poll by The Guardian newspaper shows that 57% of Poles believe that their compatriots are goodlooking, the highest figure among the countries (Germany, France, Poland, Spain and the UK) surveyed.

The poll revealed confidence in other areas too – about 61% of Poles believe that they can hold their liquor better than people from other nations.

APRIL 4-10, 2011

IN THE SPOTLIGHT

Numbers in the News

First anniversary of the Smolensk crash

57% of Poles rate their compatriots as more attractive than people in other countries, according to a recent poll by The Guardian

17% of Poles feel their compatriots are better drivers than people in other countries, according to the same poll

59.1% of Polish university students would leave Poland if they found an interesting job offer abroad, according to research by Deloitte

500,000 specialized workers from Poland are expected to seek employment in the German labor market after it opens on May 1 SHUTTERSTOCK

2

Quote of the Week

This week a number of commemorative services will be held to mark the first anniversary of the April 10 plane crash in Smolensk, Russia, which claimed the lives of President Lech Kaczyƒski and 95 others.

There will be extensive coverage of special events at the crash site in Smolensk, as well as in Warsaw and other Polish cities.

Much as Poland will relive the atmosphere of mourning and solemnity through the events, the way they are staged and the speeches made at the various locations will reflect the fact that the tragedy is both a highly sensitive and greatly divisive subject. Representatives of some of the country’s two biggest political parties will not commemorate the anniversary together.

Official state ceremonies are to take place on Sunday at St. John’s Cathedral and the Powàzki Wojskowe military cemetery in Warsaw, where a Smolensk air crash memorial and the graves of some of the victims are located. Participants will include President Bronis∏aw Komorowski and Prime Minister Donald Tusk.

For his part, Law and Justice party leader Jaros∏aw Kaczyƒski, twin of the late president, is expected to be in front of the Presidential Palace on April 10.

Four large demonstrations are planned to remember the victims on that day near the Palace on Krakowskie PrzedmieÊcie.

According to some estimates around 100,000 people could take part.

Meanwhile, a protest is scheduled to take place in front of the Russian Embassy in Warsaw on April 9. According to its organizers, the protest is to focus on a “cover-up” allegedly cooked-up by the Russian authorities during their investigation of the crash.

The first anniversary of the death of President Lech Kaczyƒski will also see the official launch of a new social movement named after him.

The purpose of this movement, whose leaders are to be elected this autumn, is not quite clear however. According to information revealed so far, the organization will have an agenda which “draws on the legacy” of the late president.

“Which criminal organization did you help out today?”

Law and Justice MP Beata Kempa addresses Justice Minister Krzysztof Kwiatkowski after he defended a bill to ease the penalty for possession of small quantities of drugs

Figures in focus The Russians are coming Number of asylum applicants and largest national group, 2010 Largest national group

50,000 45,000 40,000 35,000 30,000 25,000 20,000 15,000 10,000 5,000 0

Other asylum applicants

Serbia

Serbia Zimbabwe Nigeria

Germany

Sweden

Adam Zdrodowski

United Kingdom

Italy

Russia

Afghanistan

Poland

Denmark Source: Eurostat

On WBJ.pl Remembering Smolensk On April 10, 2010, Poland awoke to an unprecedented catastrophe. In the hours and days that followed, the nation came together and mourned. One year on, log on to WBJ.pl and revisit this moment in Polish history through a series of poignant pictures.

Company index Actavis Polska ....................8 Empik ................................15 Kulczyk Holding..................9 Allied Irish Banks ..............6 Enea ................................5, 9 Leroy Merlin......................15 Apsys Group......................15 Ernst & Young ....................6 Lokaty Budowlane ............19 Arterium Corporation ........8 Euro Styl............................18 Asseco ................................9 Getin Holding......................6 Banco Santander................6 Ghelamco..........................15 Bank Gospodarstwa

Mango ..............................15 Metro Group Asset Management ..........19

Goldman Sachs ..................6 Mlekovita ............................6

Krajowego ..........................5 Grupo Prasa......................17

Tusk pushes for shale gas Poland must seize every opportunity to find new energy sources, and its government is determined to provide the best environment possible for exploration and exploitation of shale gas, Prime Minister Donald Tusk told the press last week. Gas and oil have become a strategic factor in political life, and seeking its own sources of energy must be a priority for Poland, he added. ●

DATELINE

April 4

RPP MEETING

Event:

The National Bank of Poland’s Monetary Policy Council (RPP) rate-setting body begins its two-day meeting.

5

RPP MEETING

Event:

The National Bank of Poland’s Monetary Policy Council (RPP) rate-setting body ends its two-day meeting and announces its decision on interest rates.

6

MADE IN POLAND CONFERENCE

Event:

Warsaw Business Journal will officially launch its new annual publication, Made in Poland and will hold several panel discussions with representatives of government, Polish producers as well as importers of Pol-

Citi Handlowy......................6 H&M ..................................15 BRE Bank ..........................6 Harbin Gloria C&A ..................................15 Pharmaceuticals ................8 Carrefour ..........................15 Hermanowicz Rewski

8-10 Event:

Mlekpol ..............................6 Orlen ..............................7, 9 Pekao ..................................6 PGNiG ................................9

ish goods, to try and learn how to help Poland’s exporters reach their full potential.

Location: Focus Building, Warsaw.

China National Electric

TOURISM TRADE SHOW

Colliers International ......19 HSBC ................................10 Polkomtel..........................16

3rd edition of the International Tourism Trade Show – MTT Wroc∏aw. Location: Orbita Hall, 34 Wejherowska Street, Wroc∏aw. www.mttwroclaw.pl

Architekci studio ..............16 PKO BP ..........................5, 6

Equipment Corporation......5 Hochtief Polska ................18 PKP ..................................17 Citibank ..............................6 Home Broker ....................16 Polfa Warszawa ..................8

Covec ..................................5 Hublot................................23 Deichmann........................15 IBM......................................6 Deloitte................................2 IKEA ....................................6

Polnord..............................17 ProLogis............................18 PTB Nickel ........................15

Dom Development............16 Ikepod................................23

13

PRCH BUSINESS MIXER

Event:

An excellent opportunity for an exchange of business experiences and contacts among 150 companies brought together through the Polish Council of Shopping Centres (retailers, investors, developers, operators, industry consultants, and others). Location: Villa Foksal, Warsaw. www.prch.org.pl

Robyg Group ....................16 Dom Maklerski IDMSA ......5 Immofinanz ......................19 E. Wedel ..............................3 Industrial Milk Company....6 Eastbridge Group..............18 ING Property Fund Central Echo Investment ........16, 19 and Eastern Europe..........18 Ecomove............................23 Jones Lang

RWE ....................................5 Shanghai Electric Group ....5 Tauron Polska Energia ......5 Vattenfall ............................5

EDF ....................................9 LaSalle ..................15, 17, 18 VIS Investments................17 ElectroWorld ....................15 JW Construction ..............17 Warimpex ..........................15

NEWS

APRIL 4-10, 2011

www.wbj.pl

3

Libya

Polish politicians shy away from Libya intervention After Donald Tusk’s initial declaration that Poland would not participate in military intervention in Libya, Polish politicians were keen to drive home the point, as public opinion surveys showed Poles strongly against the country’s involvement.

President Bronis∏aw Komorowski, commander-in-chief of the Polish armed forces, repeated the country’s position at the beginning of last week.

He said the country would limit its involvement to providing humanitarian aid when the situation on the ground allowed it, while at the same time admitting that Poland, as a member of NATO, was prepared to take some political responsibility for the decision to enforce the no-fly zone.

“Political responsibility will be borne by all [NATO] member states, including Poland,” the Polish Press Agency quoted President Komorowski as saying. However, “this does not mean direct involvement in a military operation,” he emphasized.

“Political responsibility will be borne by all [NATO] member states, including Poland” Foreign Minister Rados∏aw Sikorski also underlined Poland’s decision not to participate in military action in the North African country while in London for a conference on the subject Tuesday. Minister Sikorski stressed that the government’s decision to keep out of Libya reflected Polish public opinion.

Surveys show Poles are strongly against military involvement in Libya. A March 25 survey by Homo Homini found that 82 percent of surveyed Poles thought that their country should not get embroiled in military action in the North African country.

President Komorowski explained that Poland’s reluctance to intervene in Libya was the result of lessons learned in Iraq and Afghanistan.

“Today we know that in Iraq there were no weapons of mass destruction, which was the basis of decisions at the time. Our stay in Afghanistan was to be short but instead has lasted many years. … The scale of our involvement [in internaitonal missions] should be the result of a sober assessment of the situation,” Mr Komorowski said in a recent interview with the weekly Wprost.

COURTESY OF MSZ/FLICKR

Both the government and public opinion are against joining the military effort in Libya

President Komorowski has said Poland won’t join in military intervention in Libya

Alice Trudelle

Euro 2012

The “Sex Affair”

Andrzej Lepper to get a retrial Could Polish hooligans

ruin Euro 2012?

COURTESY OF THE COUNCIL OF THE EU

Clashes between Polish hooligans and Lithuanian police have raised concerns about safety and Poland’s image ahead of Euro 2012

Mr Lepper was once one of the most powerful politicians in Poland

His Self-defense compatriot Stanis∏aw ¸y˝wiƒski is still heading to prison, though The Court of Appeals in ¸ódê has overturned a lower court’s verdict in the 2006 case against Self-defense politicians Andrzej Lepper and Stanis∏aw ¸y˝wiƒski. For their parts in the infamous “Sex Affair,” the men had both been given prison sentences.

Former Deputy Prime Minister Andrzej Lepper has had his sentence annulled and will

be granted a retrial. In February 2010 he was sentenced to two years and three months in jail for demanding and receiving “benefits of a sexual nature” from a subordinate.

The verdict was overturned on the basis that the original trial had involved procedural errors and had ignored a key piece of evidence.

Mr ¸y˝wiƒski, meanwhile, has had his sentence reduced from five years to three years and six months.

The “Sex Affair” hit headlines in December 2006 when former Self-defense aide Ane-

ta Krawczyk accused Andrzej Lepper and Stanis∏aw ¸y˝wiƒski of forcing her to engage in sexual relations with party politicians in order to keep her job. Both men have maintained their innocence.

“I do not hide my satisfaction about this decision. I only regret that in the case of Mr ¸y˝wiƒski the court partly maintained the sentence despite the fact that Self-defense did everything to prove that none of the alleged facts ever happened,” said Mr Lepper after the decision was announced. Katarzyna Piasecka

European soccer’s governing body, UEFA, has admitted that Poland has serious hooliganism issues to deal with before it co-hosts the Euro 2012 soccer championships with Ukraine next year.

UEFA’s director in charge of Euro 2012, Martin Kallen, said hooliganism was causing a “huge image problem” for Poland and that there were “always hooligans around every matchday in the [Polish] league.”

The comments were made at the Soccerex conference in Manchster, England and were no doubt triggered by the events surrounding a friendly game between the national teams of Poland and Lithuania in late March.

After the game in Lithuania’s second-largest city, Kaunas, Polish fans clashed with local police, hurling bottles, flares and benches at them.

Sixty people were arrested by Lithuanian police. The events led Polish Justice Minister Krzysztof Kwiatkowski to announce two measures he intends to implement to counter the threat of violence during the tournament.

The first would be to introduce electronic tags for convicted hooligans. This would ensure they stayed at home on match days during Euro 2012.

The second measure would be to introduce on-site court proceedings at the stadiums.

“The judge would sit in court, and there would be a special place in the stadium where, using teleconference technology, the proceedings could take place and the hooligan could be convicted quickly, safely and in adherence with all of the proper legal procedures,” said Mr Kwiatkowski.

Meanwhile, midnight last Thursday was the last moment to register participation in the lottery for match tickets. The tickets will cost €30 to €600. Some 41 percent of the 1.4 million tickets available will be distributed through the lottery, while the rest will go to national soccer federations, sponsors, UEFA guests and corporate clients.

The tournament is due to kick off in Warsaw on June 8 next year with the final game being played in Kiev on July 1.

Remi Adekoya

Confectioner wins first Euro 2012 national sponsorship deal E. Wedel, Poland’s oldest confectionery firm, has become the nation’s first official Euro 2012 sponsor as announced in a ceremony held in Warsaw last week. As a national sponsor for the tournament, E. Wedel will benefit from a wide range of rights, including brand promotion at official premises and the ability to run ticket promotions for its customers.

There are 10 sponsors with global rights for Euro 2012 and four national spon-

sor spots each for firms in Poland and Ukraine. The national sponsors’ rights are limited to the territory of the designated host country.

“E. Wedel will co-create this great event. We will do our best to make sure that the exciting moments of Euro 2012 bring much joy and long-lasting memories to all football fans,” said Pawe∏ Szcz´Êniak, managing director of E. Wedel at the unveiling. The firm has been in the confectionery business for 160 years. ●

4

NEWS

www.wbj.pl

APRIL 4-10, 2011

Pension reform

PM Tusk pledges support for Moldova EU accession

Unconstitutional efforts?

During a two-day visit to Moldova, Prime Minister Donald Tusk last week pledged “unconditional support” for the country in its efforts to join the European Union.

“The integration of Moldova into the European Union is not only in the interests of the country, but also of Poland and of the EU,” the PM said in a statement.

Mr Tusk even declared that, if it were up to him, an association agreement to allow deeper integration with the EU would be signed by the end of the year.

He admitted, however, that it was impossible now to set a “hard” date for Moldova’s accession.

Indeed, Moldova has a long way to go to meet the economic requirements for membership.

It is one of the poorest countries in Europe and, according to IMF projections, GDP per capita for 2011 stands at $1,630 in Moldova, compared to $12,313 in Poland.

Moldova has been developing relations with the EU through the European Neigh-

Despite the fact that parliament has green-lit the government’s pension reform plan, controversy continues. Now critics of the plan claim it may be unconstitutional.

The legislation is just awaiting the president’s signature, but employers’ associations PKPP Lewiatan and Business Center Club (BCC), former central bank head Leszek Balcerowicz and even a former head of the Constitutional Tribunal, Jerzy St´pieƒ, have all questioned the constitutionality of the bill. They want the bill to be sent to the Constitutional Tribunal for a ruling on the matter.

The reform would reduce the amount of monthly salaries transferred into private pension funds (OFEs) from 7.3 to 2.3 percent. Those funds would instead be redirected to ZUS, Poland’s social security system, in order to cover a shortfall in current pension payments which weighs heavily on the national budget.

Mr St´pieƒ notes that

COURTESY OF THE CHANCELLERY OF THE PRIME MINISTER

There’s no “hard” date for EU membership though

Some think the proposed changes to the pension system could violate the nation’s constitution

Mr Tusk (left) extended a friendly hand to his Moldovan counterpart borhood Policy, and is part of the joint Polish-Swedish European Partnership initiative.

During his visit, Mr Tusk assured his Moldovan counterpart, Vlad Filat, that Poland would shine a spotlight on Eastern European countries during its presidency of the EU Council later this year. He also said Poland would try to ensure that the EU’s involvement with current events in North Africa and the Middle East would not come at the cost of support for Eastern European countries.

Concerning the breakaway region of Transnistria, where a 1,200-strong Russian military contingent is still stationed, Mr Tusk acknowledged that the situation needed to be resolved, “So that public opinion recognizes Moldova as a completely stable country.”

In the past few years, Poland has provided considerable financial assistance to Moldova, agreeing in February 2010 on a $15 million loan to finance the country’s economic stabilizaAlice Trudelle tion program.

EAST NEWS

EU enlargement

Mr St´pieƒ fears this reform could be a first step towards liquidating OFEs although the government’s official rationale for the move is to fix the pension system, it has admitted that the primary goal is to improve the public finances. This discrepancy, he says, brings up the question of whether citizens can trust the state or its laws.

“There are also a lot of indications that this is just the first step. Maybe after this someone may take it into his head to liquidate the whole [OFE] system. I am saying this on the basis of my close observation of the public

debate,” said Mr St´pieƒ.

“For me the doubts concerning this reform are so great that they make me almost sure this matter should be looked into by the Tribunal,” he added, appealing to President Bronis∏aw Komorowski to heed his arguments.

After the parliamentapproved bill lands on the president’s desk, he has 21 days to either sign it into law or refer it to the Constitutional Tribunal.

Remi Adekoya

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INDUSTRY NEWS

APRIL 4-10, 2011

www.wbj.pl

5

Public offer

It could sell more, depending on public demand Poland will sell a minimum of 10 percent in PKO BP, the country’s largest lender, via a secondary public offering in the second half of September.

State-owned Bank Gospodarstwa Krajowego will sell its holding of 10 percent, while Poland’s Treasury Ministry may sell more shares depending on public demand, Treasury Minister Aleksander

Chinese firms eye energy investments in Poland Three Chinese companies are interested in spending a combined z∏.15-16 billion on helping to build several coal-fired power plants in Poland.

Construction on a typical 1,000 MW power plant costs just over z∏.5 billion, meaning the Chinese firms would have sufficient funds to build at least three plants of this type, the Chinese companies’ representative, Marek Frydrych, told daily Rzeczpospolita.

He added that the firms are already negotiating cooperation deals in Poland.

Energy company China National Electric Equipment Corporation and Chinese construction firm Covec are interested in jointly building electric power plants with Enea, in Kozienice, and with Tauron Polska Energia, in Jaworzno, the daily wrote without citing sources.

Shanghai Electric Group, meanwhile, is reportedly in talks to co-finance a z∏.6 billion electric plant in Ostro∏´ka.

“Investments in coal energy in Poland are necessary and we cannot give them up,” Deputy Treasury Minister Jan Bury told Rzeczpospolita when discussing the Chinese companies’ interest.

“We don’t discriminate against anybody. Chinese companies are already participating in privatization processes in our country,” he added.

It is becoming increasingly difficult for companies to secure financing for coal-fired power blocks because of the European Union’s green energy policy. Partly because they fear low revenues from coalpowered plants, two European energy giants – Vattenfall and RWE – are attempting to offload a number of Polish GP assets.

Grad told a news conference last week.

The Treasury hopes the sale of BGK’s stake will allow it to hit the halfway point of its 2011 target of z∏.15 billion from asset sales. The revenues will be used to finance the budget deficit and manage debt.

“It’s in the ministry’s interest to sell as much as possible.

We see the 10 percent held by BGK as the minimum to sell plus shares held by the ministry,” Mr Grad said.

The government has stated that it eventually wants to reduce its total stake in PKO to 25 percent from the 50.1 percent it currently owns.

However, it wants to retain control, so the Treasury is trying to change the bank’s statute book to allow it to retain a majority of votes even with a 25 percent stake.

While the market had been expecting the government to announce the sale of BGK’s stake, the possibility that Poland might sell all the way

down to 25 percent this year was altogether more surprising.

“Whether the government can sell the maximum possible [in September] depends on whether there are no sudden changes in the equity market,” said Dom Maklerski IDMSA analyst Micha∏ Sobolewski.

“But I wouldn’t be surprised if it managed it … PKO operates in a strong banking environment.”

Mr Sobolewski said he believed that the target price for the stock is currently

COURTESY OF PKO BP

Gov’t selling at least 10 percent of PKO BP

PKO BP is Poland’s largest lender undervalued.

“Investors have an interest in keeping the price low so that when the government

comes to set the price they will be able to snap up PKO shares at a discount.”

Gareth Price

INDUSTRY NEWS

www.wbj.pl

Analysts at Goldman Sachs increased the target price for Getin Holding from z∏.16 to z∏.19.2 per share and indicated the bank as the best investment choice in the Polish financial sector. BRE Bank received an equally positive review – its target price increased to z∏.278.2 from z∏.253.8. On the other hand, the investment bank cut target prices for three other Polish banks: Pekao, PKO BP and Bank Handlowy.

Plastics industry in danger?

Poland’s 230 producers of disposable plastic bags and their 20,000 employees might be hit hard by the European Commission’s desire to implement an EU-wide ban on plastic bags. Although the industry’s revenue stands at an hefty z∏.7 billion annually, it is already losing ground to biodegradable or reusable bags.

According to Gazeta Prawna, in the last two years demand for plastic bags has dropped by 10%. ●

Banking takeover

Santander completes BZ WBK takeover The Spanish bank now officially owns one of Poland’s major players Spain’s Banco Santander, the largest lender in the euro zone, has finally completed its takeover of Bank Zachodni WBK. The acquisition of Poland’s third-largest bank by net profit cost the Spanish lender €98 billion.

Santander last year agreed to buy 70 percent in BZ WBK from Allied Irish Banks (AIB) after the latter was forced to sell. The Irish government had pressured AIB to generate funds to meet capital requirements in its home market.

Polish banking regulations mandate that any bidder purchasing over 66 percent of a banking asset must bid for the

remaining amount, meaning Santander was required to bid for the full 100 percent of BZ WBK. The acceptance rate for Santander’s public call for shares in BZ WBK was 95.67 percent, and this is now the size of the former’s stake in the latter. Poland’s banking regulator, the Polish Financial Supervision Authority, gave the takeover a green light back in February.

In addition, Santander purchased AIB’s 50 percent stake in financial services subsidiary BZ WBK Asset Management for €150 million in cash.

BZ WBK’s stock price rose 0.57 percent last week, finishing last Friday at z∏.227.

Gareth Price

BZ WBK is now in Spanish hands

Shared service center

Poland’s outsourcing explosion A new SSC in Wroc∏aw is just one of hundreds in Poland with more expected Scheduled to open this week, Ernst & Young’s new sharedservices center in Wroc∏aw will employ 200 people, possibly more in the future, to provide financial and accounting services. The city beat out more

than 40 others last year in a competition to host the investment.

E&Y’s investment is but the latest evidence of a longterm continuing trend.

According to Dziennik – Gazeta Prawna’s figures, there are over 300 outsourcing investments already running in Poland. Together they employ around 40,000-45,000 people,

Contact: Miros∏aw Stefanik ms@pnplaw.pl

The Economy Ministry has announced further changes to a draft act on the reduction of information obligations and limitation of administrative barriers for citizens and entrepreneurs. The ministry has proposed extending the period in which employees must use up the previous year’s holiday time until July 31; employees are currently obliged to use their outstanding vacation time by the end of the first quarter of the following year.

The economy minister believes that this minor change in the Labor Code will help increase efficiency in enterprises.

Change to employment certificate provisions On March 21, Labor Code provisions regarding employment certificates were changed. In the past, employers were obliged to issue certificates for workers who were employed for a new period with the same employer, whenever a break between contract periods occurred.

Following the amendments to the provi-

are currently in the works.

And one advantage Poland has over other economies which are attracting outsourcing investments is language – in countries such as China or India, for example, it can be difficult to find employees who speak at least three languages, experts say.

The arrival of these new consulting and service compa-

nies is offering some relief to local unemployment rates. And cities such as Lublin and Bia∏ystok, located along Poland’s FDI-poor “eastern wall,” are working hard to compete with their peers in the western part of the country, offering attractive investment terms and assistance with matters such as local infrastructure.

NK, GP

Dairy industry

Legal News

Extended period for using up vacation time

and some experts forecast that this will nearly double over the next few years.

Companies such as Citibank, IKEA, IBM and Sony already have outsourcing investments in Poland and others are weighing the idea – just counting those being prepared together with the Polish Information and Foreign Investment Agency, over 30

sions, the employer is generally obliged to issue only one certificate covering an employee's past 24 months' worth of contracts with the company, regardless of breaks during that period. However, this rule only concerns an employment contract involving a trial period, an employment contract for a specified period and an employment contract for a specific task.

More changes to VAT regulations During a March 18 session, the Sejm made its fifth change to the act on VAT in the last six months. The change can by no means be called minor since it refers, among other things, to rules of tax settlement regarding trading in scrap and rights to greenhousegas emissions. Other changes include the possibility to deduct tax calculated in the case of “mixed” business activity (in which part is taxed and part is exempted from VAT) and a change to the deadline for paying tax on imported services.

The president signed the act on March 24, which means the changes came into effect as of April 1. ●

BROUGHT TO YOU BY PETER NIELSEN & PARTNERS LAW OFFICE

Good for growth Healthy financial results and interest from abroad – that’s the order of the day in the Polish dairy market The local dairy industry is looking healthy inside and out, with the biggest domestic players reporting strong revenues and foreign players eyeing the stock exchange.

For its part, national dairy giant Mlekovita has announced record revenues of z∏.2.5 billion for 2010, a 32 percent increase over its 2009 figure. The firm plans to invest $80 million this year, mainly to expand its production and distribution facilities.

Mlekpol, meanwhile, is looking very strong as well.

According to information obtained by Rzeczpospolita, it also achieved revenues of over z∏.2.5 billion in 2010, a 10 percent y/y increase. Its revenues were approximately z∏.3 million higher than Mlekovita’s.

SHUTTERSTOCK

Goldman ups Getin target

APRIL 4-10, 2011

WBJ/ARCHIVES

6

The Polish dairy sector boasts some big cash cows Moreover, it plans to invest around z∏.100 million on development this year.

Meanwhile, Industrial Milk Company (IMC), one of the largest milk producers in Ukraine, has announced it is interested in debuting on the Warsaw Stock Exchange within the next few months. It too had a good 2010, recording revenues of around $35 million and a net profit of $15 million.

“We want to continue our

strategy of development by implementing an ambitious investment plan. In the next three years, we want to triple the acreage of our production area, double our warehouse space and develop new modern machinery,” said Ievgen Osypov, president of IMC in a statement.

“We plan to finance the investment partly from funds we will get from the public share offer,” he added.

Remi Adekoya

BUSINESS ENVIRONMENT

APRIL 4-10, 2011

Public finances

Finance Ministry sets sunny budget forecast Is the FM’s new budget forecast overly optimistic?

According to PAP, the document assumes consumption will remain the major source of growth in 2011, despite an anticipated acceleration of inflation.

Public investments, in large part EU-funded, are forecast to remain important in 2011 but to drop from 2012.

Meanwhile, the Finance Ministry forecasts that private investments’ contribution to GDP will significantly accelerate due to the stabilization of the global economy and will gradually return to precrisis levels.

“All in all, I think that the plans are optimistic, and revisions such as those which we have seen lately indicate that one needs to expect the road to be rougher,” said Mr Kwiecieƒ.

Finance Minister Rostowski has said the budget for 2012 will likely be adopted in July.

ty funds and local governments. “However, there is a chance for economic growth to be faster than the government assumes and for inflation to be weaker as well,” he added.

The new projections forecast GDP growth at four percent both in 2011 and 2012, and inflation at 3.5 percent in 2011 and 2.8 percent in 2012.

“This is not a significant reduction in the budget deficit from this year, but then again this is not a surprise: the government didn’t introduce measures to curb the deficit, so therefore there is little room for improvement,” said Mr Kwiecieƒ.

The numbers come from Poland’s new budgetary projections for the next four fiscal years. The document is to be discussed by Finance Minister Jacek Rostowski with the Council of Ministers on April 5. A copy was seen by the Polish Press Agency (PAP).

According to new Finance Ministry budget projections, Poland will significantly reduce its budget deficit by 2012. The projections set the budget deficit at z∏.75.4 billion in 2011, z∏.46.5 billion in 2012, z∏.18.5 billion in 2013 and z∏.15 billion in 2014.

Przemys∏aw Kwiecieƒ, chief economist at X-Trade Brokers Dom Maklerski, characterized the new figures as “quite upbeat.”

“That would put the deficit at about six percent of GDP this year and three percent in 2012,” he said. Previous government estimates had put this year’s deficit at 6.5 percent and 2012’s at 3.5 percent.

The projections would be difficult to meet, he explained, because they place the bulk of the tightening on the shoulders of social securi-

Alice Trudelle

Gasoline

Fuel prices set to rise higher The expiry of excise rebates could push prices at the pump even higher

that fuel prices are determined not only by government decisions, but also by numerous other factors. The most important of these is the situation in the global fuel market, which has been grave recently due to the conflicts in North Africa, she said.

Recently, OPEC announced that it did not envisage crude-oil prices dropping anytime soon, while IMF deputy managing director Naoyuki Shinohara was quoted as saying that there was nothing to indicate that crude oil would become cheaper. Mr Shinohara cited unrest in the Middle East and North Africa and the fact that the demand from China and India is not expected to decrease.

As WBJ went to press, a liter of unleaded petrol cost about Katarzyna Piasecka z∏.5.10.

Some analysts estimated the hike could equal as much as z∏.0.23 per liter.

Even without the expiry of the rebates, the price of gasoline at the pump – already above the psychologically signficant z∏.5 per liter – has been hitting Poles’ wallets hard of late. According to Mr Krawiec, high prices are the result of both the situation in the global fuel market and the weakness of the z∏oty.

Urszula CieÊlak, a fuelmarket analyst at consultancy Reflex, said that rising fuel prices may affect the country’s economic growth in 2011, although to what extent is still unknown.

“The expiry of the import rebate will directly cause the price to rise by some z∏.0.070.10,” she said.

Ms CieÊlak underlined

Fears of skyrocketing fuel prices gripped the headlines in Poland last week, as oil-industry officials went public with their displeasure that some excise-tax breaks are due to expire in May. On May 1, the import rebate on some eco-friendly components used for fuel production is due to expire. Jacek Krawiec, the president of Poland’s largest oil refiner, Orlen, implied that fuel prices would rise considerably as a result.

“If the rebate expires, then the price of fuel production will increase,” Mr Krawiec told TVN24. He suggested that the government should consider extending the rebate.

Fuel for thought Wholesale fuel prices for a liter of gas on the tenth of every month, or closest date (in z∏oty) 4.5 Orlen

Lotos

4.0

3.5

1

1

20 1

20 1

rch Ma

ry

20 11

rua Feb

Jan

ua ry

0

0

r2 01

cem De

vem No

be

be r

20 1

20 10

0

er

20 1

tob

pte Se

Oc

mb er

20 10

0

0

20 1

gu st Au

Jul y

0 01

e2 01 Jun

10 20

20 10

y2 Ma

ril Ap

rch

ry

20 10 Ma

rua Feb

Jan

ua ry

20 10

3.0

Sources: Orlen, Lotos

www.wbj.pl

7

8

INTERVIEW

www.wbj.pl

APRIL 4-10, 2011

Pharmaceuticals and privatization

Just what the doctor ordered Krzysztof Berndt, president of pharmaceuticals-maker Polfa Warszawa, talks about privatization, innovation and plans for the future

COURTESY OF POLFA WARSZAWA

now, because it would mean fewer chances for the company.

If Polfa Warszawa had been privatized some 10 years ago, it could now be one of the most important pharmaceutical companies in Central and Eastern Europe. At present it is ranked 16th among pharmaceutical companies in Poland in terms of the turnover and fourth in terms of volume. The examples offered by companies which were very far from the position of market leader and whose dynamic development started after privatization are proof that the privatization of Polfa Warszawa is necessary.

Polfa Warszawa has survived two world wars, communism and the transition back to capitalism. How has the firm coped with such major changes? What about recent challenges?

Polfa Warszawa was established from the Artificial Mineral Waters Institute, which started production in 1824.

Over all these years, the company has adapted its business to cover various areas. During socialist times, when Poland

looked bright. However, despite difficulties and fluctuations in the company or in various markets – such as the 1997 crisis in Russia, an important market for us – we have been able to maintain a stable economic position and profitability. I think the credit is due to competent people who have managed the company skilfully.

How important a market is Russia for you?

Russia is our largest importer.

It is also a country where we have a representative office.

Even after the introduction of legal changes in Russia, we have maintained a very high level of sales.

COURTESY OF POLFA WARSZAWA

E Blake Berry: The Polish Pharmaceutical Holding [owner of Polfa Warszawa] has selected five companies for advanced negotiations on privatization. Which would be the best investor in your opinion? What is being taken into consideration in the selection process?

Krzysztof Berndt: I am really pleased by the interest in Polfa Warszawa.

The offers approved for further talks were submitted by two Polish companies, Adamed and Polpharma, and three foreign companies: Iceland’s Actavis Polska, Ukrainian Arterium Corporation and Harbin Gloria Pharmaceuticals from China.

The final decision on the investor will be made by the Polish Pharmaceutical Holding. I think it will be guided by the two most important criteria – the price and the development plan for Polfa Warszawa. For us, it is most important that the investor presents a good development program for the company and, at the same time, makes it possible to continue ongoing projects which, in my opinion, are important for the company.

Mr Berndt sees only upsides to Polfa Warszawa’s imminent privatization Do you see any downside to privatization?

To be quite honest, I can’t see any, personally. I think that failure to privatize the company would be a big problem

was a strategic country providing medicines to numerous countries of the Soviet bloc, Polfa Warszawa played a leading role in the pharmaceuticals sector.

Things have not always

How about other markets?

At present, we are preparing to expand in countries such as Kazakhstan, Azerbaijan, Georgia, Armenia and Uzbekistan. We have already achieved good results in some of these countries.

In addition, we are planning on entering the Chinese and South African markets. While the former is completely “pristine” for us, we have a presence in South Africa and would like to rebuild our position there.

Having found a reliable and credible partner, we have a very good chance of success.

And the West? Are you considering expansion in that direction?

We also want to enter this market. At present, however, we are focusing on the aforementioned markets, mainly because these are generic markets, while the patented medicine market is dominant in Western countries.

How different is the Polish pharmaceutical market from

“It is a long road from molecule to medicine” Western markets?

Western countries mostly sell patented medicines, while in Poland the vast majority of medicines sold are generic. In terms of quality, they fully match the quality of drugs produced in Germany, France or Denmark. I am fully convinced that ours are even better in many cases.

This is reflected by considerable recognition among delegations of Western companies during visits to our manufacturing plants. The fact that we are conducting very advanced talks with one of the largest generics-producing companies in the world regarding a contract for the production of generic products is further evidence for this.

Did Polfa Warszawa meet its forecasts for 2010?

When we prepared the budget for 2010, it seemed very ambitious. The supervisory board approved it with some anxiety.

We assumed 16 percent and 13 percent growth for the domestic and overseas markets, respectively, and a net profit at the level of z∏.39 million. This amounted to a 15 percent increase compared to 2009, in which we achieved a profit of z∏.32.5 million net.

In the end, our net profit amounted to z∏.44 million with revenues of z∏.365 million, beating our expectations. This was closely connected with a change in strategy and very good work from our personnel.

Pharmaceuticals is a fairly R&D-heavy industry. What’s your firm working on at the moment?

We are now planning two products for which pre-clinical tests are being performed. The results have been very promising so far. We are planning to conduct these analyses until the end of the year. After selecting an investor, we intend to present a balance of these projects. At that time, the decision on starting clinical trials will be made.

sequent batches are coming not only from Poland, but from all over the world.

Therefore, we have high hopes for this product.

Another investment is connected with a new production line for products mainly intended for export markets.

What, in your opinion, is the biggest barrier to innovation?

Money, definitely money.

There are a lot of ideas for new products, but there is not enough capital to introduce them. The development of new molecules requires considerable financial outlays.

Besides, it is a long road from molecule to medicine...

Despite this fact, there are innovative companies today in Poland. And this is because there are capable people in our country. The knowledge of our technicians matches the knowledge of scientists from Western countries.

What else does your development strategy envision?

First of all we need an investor which will be able to reach an agreement with the management board regarding our development plans and the company’s strategy: an investor which will be capable of forming an alliance between the cultures of two different companies.

Our plans for the future include, among other things, expansion to new markets and the introduction of a new portfolio of medicines. We are also preparing to potentially transfer our manufacturing plant outside Warsaw.

We have commissioned the necessary financial analyses from an external company.

No specific decisions regarding the location have been made so far, but the ability of our personnel to reach the location is an important criterion here. Otherwise it would be difficult to find specialists as qualified as those we have now. And without them, the company would not be able to operate efficiently.

What investments are you currently planning or working on?

We have recently completed an investment connected with the launch of an anti-alcoholism implant. The first batch of this product was sold in December. Orders for sub-

How do you compete with other pharmaceutica companies that also focus on generics We do not use any non-standard tricks. We use the same measures as our competitors.

To put it simply, the best company is the winner. ●

LISTED FIRMS

APRIL 4-10, 2011

Outward investment

www.wbj.pl

9

Privatization

Orlen leads the way Enea sale fails again Poland’s largest oil refiner, Orlen, was also the country’s biggest overseas non-financial investor in 2009.

Gas monopolist PGNiG was in second place and IT company Asseco was in third, according to research on outward investors conducted by Poland’s Institute for Market, Consumption and Business Cycles Research (IBRKK), and the US’s Vale Columbia Center on Sustainable International Investment (VCC).

The research ranks the top 19 Polish firms – all but one of which are listed on the Warsaw Stock Exchange – by their foreign assets. The results show that Orlen held almost twothirds ($6.59 billion) of the surveyed firms’ combined foreign assets. The refiner also topped the foreign sales and foreign employment ranking.

The top two firms controlled a combined 72 percent of assets, illustrating a high concentration of assets in the gas and oil industries. Investments in chemicals, in software and IT services, and in

pharmaceuticals also featured relatively strongly.

In total, the 19 companies owned $10 billion in foreign assets, made $17 billion in foreign sales and employed over 14,000 people overseas in 2009.

The majority of Polish investment was made in Europe, with Germany, the Czech Republic, Slovakia, Lithuania and Ukraine the most popular destinations.

Most companies in the research posited that the

search for new markets was the main reason behind their decisions to invest abroad.

Raw materials companies also cited the need for greater access to natural resources.

The report noted that Poland lags behind other surveyed emerging markets across the world in terms of assets held overseas. On average, only Slovenian firms were found to have smaller assets abroad than Polish companies.

Gareth Price

Oil on top Poland's top 10 non-financial outward investors by foreign assets, 2009 ($ billions) 8 7

6.59 *Not listed

6 5 4 3 2 0.91

1

0.62

0.51

0.48

0.36

0.29

Lotos

Bioton Z∏omrex*

0.18

0.10

0.098

$ bln Orlen

PGNiG Asseco Synthos Ciech

AB Selena FM Source: IBRKK, VCC

The government has abandoned its plan to sell the company, at least for now EDF, the world’s largest utility, last week pulled out of negotiations to buy a controlling stake in state-owned Enea, Poland’s third-biggest energy producer. This is the second sale attempt to have collapsed in as many years.

The deal had been valued at z∏.5 billion.

The French power company had been in exclusive talks since December, after the Treasury broke off negotiations with Kulczyk Holding.

The Polish investor had won exclusivity rights in October 2010, but sources at the time indicated the price had been a sticking point.

This time the main source of disagreement was the government’s desire for EDF to build a pair of coal-fired power blocks in Kozienice as part of the deal, the Treasury confirmed late Friday. The French side had instead been pushing a proposal to build a nuclear facility.

The Treasury plans to begin the privatization process again, “at a moment

COURTESY OF ENEA

Polish FDI is dominated by the oil and gas sectors

The Treasury just can’t seem to offload Enea when the [Kozienice] investment becomes an integral and indisputable part of the functioning of Enea.”

Economy Minister Waldemar Pawlak had presaged the end of negotiations in a statement issued earlier in the week, saying, “If there’s no good offer, it’s better to leave Enea in the hands of the State Treasury.”

He had long opposed the sale of the Polish energy producer to EDF on the grounds that it, as a state-owned firm,

represents the interests of the French government.

“The size of the territory where Enea is active is comparable to the size of Austria.

It’s as if Austria sold all of its energy to another country,” Mr Pawlak stated, adding, “That’s hard to imagine.”

Enea’s stock took a hit on the news, falling by 3.4 percent. At the close of trade last Friday, its stock price stood at z∏.21.10, down two percent on the week.

E Blake Berry

www.wbj.pl

BUSINESS COMMUNITY

APRIL 4-10, 2011

Chambers of Commerce Corner Views UK-Polish trade surges ahead

By Martin Oxley, CEO of the British Polish Chamber of Commerce

Warsaw Business Journal Group and the Polish Chamber of Commerce, under the patronage of the Economy Ministry, have undertaken a new initiative called the Polish Export Promotion Program, aimed at promoting Polish exporters and their products abroad.

Through this project we will shine a spotlight on Poland's export market, as well as the companies and products that it comprises, and draw attention to their achievements.

The project will include: • Made in Poland – A guide to Polish export • Mister and Junior of Exports, a competition to award Poland’s best exporting companies and export products – those which distinguish themselves by a high level of quality and innovation • A gala, on June 14th 2011, at which the awards will be given out

To get more information about the project, please contact Sales Director Agnieszka Brejwo at abrejwo@wbj.pl

Well, what a year it was for British-Polish trade in 2010! The value of British exports to Poland grew by 35 percent from £2.7 billion to £3.7 billion. That’s great news, but there’s still lots of potential for further growth. In addition, Polish trade to the UK, which currently outstrips British exports, grew by 29 percent from £4.6 billion to £5.9 billion.

Considering a recent HSBC report I read which forecast economic growth of an average of 3.9 percent a year for the next 40 years, there is a huge opportunity for us to drum up lots of new business for our British partners. As the economy goes up the valueadded ladder and consumers go up-market, there will be plenty of scope for: Added-value food and drink, ambient foods, snacks and ready meals (for all those

money-rich, time-poor Polish yuppies); Posh cuts of meat, pies and grub – remember all those pubs that are going to open before Euro 2012 kicks off; Mid-price consumer goods – that “missing middle” is opening up quickly over here; Polish consumers will soon want all those things which we already have in the UK; Innovation-based products with added value – lots of scope there, whether in healthcare, automotive or DIY; But you know what? There are still many people over in the UK who need to take a better look at Poland. Let’s have a chat about what we need to do to get them to come over here and then they can see the business opportunities for themselves! ●

News Investment angels in the air at AmCham’s latest CEO Forum Angel investors (wealthy individuals who risk their own money to help get start-ups off the ground), are neither common nor especially well understood in Poland, but that is beginning to change.

There are at least eight regional or international networks present in the country, along with several independent initiatives. And several companies which are today relatively well known, such as W Biegu Cafe and e-card service 100lat.pl, might never have made it without the help of angel investors.

Contributing to this trend of growing awareness is the American Chamber of Commerce in Poland, which devoted its latest CEO Forum to the topic of “Business Angels as Catalysts of Innovation and Transformation.”

Speaking at the event, the head of the ¸ódê Regional Development Agency (¸ARR), B∏a˝ej Moder, talked about his institution’s “Business Angels Guild” initiatives, which seeks to match angel investors with entrepreneurs. ¸ARR has around 200 potential projects ready to pitch and about 20 investors ready to listen.

He noted that where business angels are concerned, trust is key. Mr Moder said that the biggest fear among people seeking an angel investor is that they will have their project stolen.

“The biggest fear among people seeking an angel investor is, ‘I will go to the angel and he will listen and steal my project.’”

It doesn’t work like that, countered Piotr Wilam, co-founder of popular news and web-

services site Onet.pl and a wellknown angel investor. “There are lots of ideas out there, but there must be a leader and there must be an execution of the idea,” he noted, stressing that the person seeking investment must be willing to take on personal risk, contributing either his or her own money or own resources.

Asked about the typical amounts sought by entrepreneurs, Mr Wilam noted wryly, “It’s typical that they ask for z∏.2 million, when they usually need z∏.100,000.” That’s all that’s necessary to get sound proof of the concept, in his experience.

According to Richard Lada, vice president of the board of fire-extinguisher producer Telesto and president of ERMEL Consulting, the “Pi Rule” is a handy way for investors to calculate how long it will take to achieve a return on the investment.

“Take however long you think it’s going to take to get a ROE and multiply it by Pi,” he said.

Perhaps the most important advice for entrepreneurs seeking investment from angel investors (or any other source, for that matter) is to expect rejection, but to be persistent and dedicated.

And what should potential angel investors keep in mind?

“Nine out of 10 businesses fail. Be prepared to lose your money and select carefully,” said Richard Lada. ●

SH UT TE RS TO CK

10

Upcoming events AmCham business mixer Date and location: April 14, 6:30 PM, sponsored by the Sofitel Warsaw Victoria Hotel e-mail: office@amcham.com.pl for more details.

1st Scandinavian-Polish Chamber of Commerce Golf Tournament Date: May 14 Golf is one of the most popular sports in Scandinavia and, for the first time, experienced golf players and novices alike will be able to meet and compete at the SPCC Golf Tournament.

Details will be available soon on www.spcc.pl

COVER STORY

www.wbj.pl

Lublin’s “Kaczyƒski Plaza” Councilmen in Lublin, in eastern Poland, have approved a motion to name one of the city’s squares after late President Lech Kaczyƒski.

The motion was submitted to the City Council by representatives of the local chapter of Law and Justice, who wanted to recognize him for “achievements in the rule of law and building an image of Poland as a united and proud country,” the politicians said about their initiative.

US-Polish policy mission Representatives of the US-Poland Business Council were in Warsaw last week to discuss barriers to two-way trade with members of the Polish government.

According to Council president Eric Stewart, resolving issues on both sides of the Atlantic is key, as is encouraging more Polish FDI in the US. One matter is already receiving attention – Poland’s exemption from the Visa Waiver program.

Legislation submitted to Congress in March would alter the criteria for the program, possibly to Poland’s benefit. And President Obama’s May visit to Poland is seen as a “major opportunity” for dialog.

Economic sentiment weakens Economic sentiment in Poland has turned increasingly pessimistic according to a new study by the European Commission. Consumers are becoming increasingly wary about the economic situation and the only sector that saw any sort of increase in positive sentiment was retail. The study also revealed that the possibility of being hired was significantly lower in March 2011 than in March 2010. ●

APRIL 4-10, 2011

Remi Adekoya

One year after Smolensk

Anniversary and controversy It’s been one year since Poland lost a plane-full of political and military leaders, but the battle over Smolensk continues T his Sunday marks the first anniversary of the plane crash in Smolensk which claimed the lives of President Lech Kaczyƒski, First Lady Maria Kaczyƒska, Poland’s top military commanders and many leading politicians. In total, 96 people perished near Smolensk Airport on April 10, 2010, casting a pall of mourning over the nation.

In the days following the event, Poles rallied together in a moving demonstration of national unity, with thousands singing songs and lighting candles in front of the Presidential Palace on Krakowskie PrzedmieÊcie. Even people who did not support Lech Kaczyƒski’s policies waited in queues for hours to sign the condolence book at the Presidential Palace. For a few days, Poland was united.

One year on, the picture is very different.

A survey conducted by the pollster CBOÂ last month revealed that 87 percent of Poles believe the Smolensk catastrophe is now mainly employed as ammunition for

political skirmishes, with 69 percent stating that it had increased conflict on the political scene.

Seventy-eight percent felt the continuing discussion of the tragedy was “boring and irritating,” and over half said

be the father of Polish independence.

Jaros∏aw KaczyƒÊki, leader of Law and Justice (PiS) and the late president’s twin, was accused of trying to capitalize on sympathy by weaving a myth around Lech Kaczyƒski

equally contentious, resulting in vitriolic confrontations between Mr Kaczyƒski’s camp and Prime Minister Donald Tusk’s government.

The PiS leader has said the PM is, at the very least, morally culpable for the catastrophe

REPORTER

12

Many Poles still believe the truth about the Smolensk tragedy hasn’t been revealed they didn’t intend to observe the one-year anniversary in any way. So how did the country get to this point? And what comes next?

A string of controversies The decision to entomb the late president and his wife in Kraków’s Wawel Cathedral, the resting place of Polish kings and historical leaders, proved an early source of divisiveness. According to a Homo Homini poll taken in April 2010, 40 percent of Poles opposed the idea.

Many argued that Lech Kaczyƒski’s achievements did not warrant a burial alongside the likes of Józef Pi∏sudski, the man generally considered to

and turning him into a national martyr.

Then there was the saga of the “Smolensk cross,” with people camping outside the Presidential Palace for months, refusing to let the city authorities move a cross which had been erected there in the days following the tragedy. An

and should resign along with the rest of his government.

In January, the Interstate Aviation Committee (MAK), which oversees aviation in the Commonwealth of Independent States, published its report, laying the blame for the catastrophe squarely on the shoulders of the Polish pilots and authorities.

Poles reacted very negatively to the report and the PM was put on the defensive. Mr Kaczyƒski and his party colleagues promptly lambasted Donald Tusk and his government, saying the report made a “mockery of Poland” and that the PM was responsible for having allowed the Russians to take

“Smolensk is now a factor which divides Polish society” attempt to relocate the cross in early August nearly ended in a riot; it was later successfully moved in November.

The Russian and Polish investigations into the causes of the tragedy have proven

full control of the investigation.

The Polish investigation’s report is not expected to be published before October.

A dividing factor The upshot of all of this is that Poland is suffering from Smolensk fatigue.

“People are tired of the constant presence of Smolensk in the public debate. After being bombarded with the issue for a year, many are simply bored with it, I’m afraid,” said Miros∏awa Grabowska, head of CBOÂ.

She also noted that national unity had been left behind months ago.

“Smolensk is now a factor which divides Polish society and these divisions seem to be getting more pronounced.

They go along political lines: Civic Platform [PO] voters are much less emotionally involved with Smolensk, while PiS voters are very much involved,” Ms Grabowska said.

“Some negative emotions and anti-Russian sentiments have been awakened in a number of Poles, but these emotions are fueled by political activities,” she added.

Krzysztof Jasiecki, a sociology professor and member of the Polish Academy of Sciences (PAN), concurred with Ms Grabowska.

“At the beginning, Smolensk was an integrating factor, but after a few weeks it became a disintegrating factor.

The approach depends on people’s political orientation.

For PiS supporters, it is an important mobilizing issue and they will definitely turn out in large numbers for the celebrations, but for others there are much more important problems, like the economy for instance,” said Mr Jasiecki.

Investing in Poland 2011 is available now!

presents

We have also launched a new website for investors!

For investment news and analysis, visit: www.investinginpoland.wbj.pl

To order a print copy or CD-ROM version of the publication, e-mail kwilinski@valkea.com or call +48 (22) 639 85 67 ext. 208

COVER STORY

APRIL 4-10, 2011

www.wbj.pl

13

Legal Eye

Compensation for loss Judith Gliniecki is a Partner with Wierzbowski Eversheds judith.gliniecki@eversheds.pl Everything about the tragic airplane crash in Smolensk, including the actions taken and decisions made as a consequence, has been rife with controversy.

Your author learned long ago not to stir up an anthill (the hard way, unfortunately). With that lesson still painfully in mind, I’ll stick closely to the relatively uncontroversial issue of compensation for the families of those who perished.

ATP/EAST NEWS

Liability

The interment of President Kaczyƒski and First Lady Maria Kaczyƒska was a point of controversy after the crash “PiS will use the Smolensk anniversary for propaganda purposes but when I speak to non-PiS supporters, I don’t really see much interest in attending any of the planned ceremonies,” he added.

Out in force PiS supporters will be out in significant numbers this Sunday. At least four separate demonstrations that are scheduled to take place on Krakowskie PrzedmieÊcie have been been linked to party supporters. The organizers have effectively guaranteed their presence in the vicinity of the Presidential Palace from 6 am till 10 pm on April 10 and thousands are expected to turn up.

Polish President Bronis∏aw Komorowski or Prime Minister Donald Tusk will be present.

Boycotting the Polish state?

Throughout last summer’s presidential campaign, held in the aftermath of the catastrophe, candidate Jaros∏aw Kaczyƒski used very diplomatic and positive rhetoric. He talked about ending the socalled “Polish-Polish” war.

However, after losing the vote to Bronis∏aw Komorowski of PO, he did an abrupt aboutface and returned to his usual confrontational language. He said Mr Komorowski had been voted in “by mistake” and boycotted the inaugura-

“PiS will use the Smolensk anniversary for propaganda purposes” Jaros∏aw Kaczyƒski is to appear on Krakowskie PrzedmieÊcie to lay a wreath in front of the Presidential Palace at 8:41 am, the time at which the Smolensk plane crash occurred. PiS’s leader is not expected to attend any of the official ceremonies at which

tion, vowing not to shake the president’s hand or cooperate with him in any way. He has kept his word.

“What Jaros∏aw Kaczyƒski is doing is very destructive for Polish politics. He refuses all contact with the president and prime minister and is consis-

tent in his rejection of Polish authorities and institutions, an attitude which delegitimizes the state,” said Ms Grabowska.

“He is helping create a situation where his supporters not only don’t trust the Russians, but they don’t trust the Polish state as well. This is very dangerous in the long-term, but how long will he keep it up? If he loses the autumn parliamentary elections, will he continue in this manner?” she wondered.

Reliving the day The public’s focus will again be on Jaros∏aw Kaczyƒski this week, with his actions dictating to a large extent the atmosphere surrounding the anniversary. This is an election year and his behavior may reflect the beginning of PiS’s election strategy.

How will he deal with the anniversary?

“In recent days, Mr Kaczyƒski seems to be focusing on bread-and-butter issues like food prices, while his supporters handle the Smolensk anniversary. It would be wise of him to continue that way,” said Sergiusz Trzeciak, a political analyst at Collegium Civitas.

“It’s not that Jaros∏aw

Kaczyƒski shouldn’t talk about Smolensk at all, but it should not be his main frame of reference. The April 10 events play a big role in mobilizing PiS voters, but if he wants to broaden his electorate, he must talk about the economy and other issues important to young voters,” he added.

In the medium term, the publication of the Polish investigation this autumn or winter will also bring Smolensk back to the fore just before scheduled parliamentary elections In Mr Trzeciak’s opinion, while much depends on the report’s contents, he doesn’t expect a furor like the one which followed the publication of the Russian MAK report.

Again, Smolensk fatigue will play a role.

“People feel this issue has already been discussed. Unless it is something really big, I don’t expect such a great impact from the report,” said Mr Trzeciak.

In the end, whatever the findings of the Polish report, it probably won’t change the minds of those who today blame the Polish government for the catastrophe. But it might spark the next round in the battle over Smolensk. ●

The law attempts to clarify who might be responsible if someone dies in a tragic accident. The relevant law in this case looks to the “intrinsic possessor.” This legalese means that whether or not you are the actual owner, you sure act like you are.

Every intrinsic possessor of a motor vehicle may be held liable for the damage caused by the vehicle. This general rule of law applies as equally to my Toyota Prius as it does to a presidential Tupolev Tu-154 airplane. If that vehicle is involved in an accident, the intrinsic possessor only has a couple of statutory excuses to avoid liability, including force majeure or when someone else was the sole cause of the accident.

This rule is limited to motorized vehicles used for transport. Accidents involving tractors, bulldozers, skate boards, horse-drawn carriages, bicycles and the like, are not covered by this rule.

However, other negligence rules could apply to incidents involving these vehicles.

Compensation One of the few facts that everyone seems to agree on is that the intrinsic possessor of the presidential airplane is the State Treasury. Thus, the families of the victims of the Smolensk tragedy could consider bringing claims against it.

Earlier this year, a proposal was announced to grant compensation of z∏.250,000 to each close family member of a victim. It has been criticized both for the form in which the proposal was made and the amount offered. The basis for the compensation proposal however, is straight-forward.

In 2008, an addition was made to the Polish Civil Code’s list of claims that may be brought against the person responsible in the event of a victim’s death. The intrinsic possessor of a motor vehicle involved in an incident qualifies as a person responsible. It allows (but does not require) a court to award compensation to the close family members of a victim for their loss.

There is no amount specified in this section. It is up to the judges to decide. In this case, the Public Prosecutor General made an offer to forestall going to court.

Related claims Whether or not the families of those who perished in the Smolensk tragedy decide to accept the offer of compensation, they do have other claims. While the compensation essentially serves to recognize the pain and suffering that the loss caused those family members, other provisions suffer to address specific financial problems.

This latter group of claims is meant to redress the financial burden put on the family because of the death of the victim. If the family’s standard of living will significantly deteriorate because of the death, they may seek damages for their financial loss.

A dependent of the victim could seek maintenance payments to replace the financial support formerly supplied by the victim. Finally, the person responsible for the death may be required to reimburse the family for the victim’s medical and funeral costs. ●

14

MARKETS

www.wbj.pl

APRIL 4-10, 2011

Stocks report

world stock indices DJIA

NASDAQ

12,341.41 (March 31 close)

S&P500

2,783.62 (March 31 close)

1.45% (for the week)

FTSE100

1,327.26 (March 31 close)

1.79% (for the week)

DAX

5,908.80 (March 31 close)

1.36% (for the week)

0.40% (for the week)

Upwards and onwards

NIKKEI225 7,062.70 (March 31 close)

9,755.09 (March 31 close)

1.77% (for the week)

3.21% (for the week)

CHANGE: 6.60%

CHANGE: 4.00%

CHANGE: 5.54%

CHANGE: 0.15%

CHANGE: 1.28%

CHANGE: -5.77%

(year to March 31)

(year to March 31)

(year to March 31)

(year to March 31)

(year to March 31)

(year to March 31)

52-week high: 12,423.00

52-week high: 2,840.51

52-week high: 1,344.07

52-week high: 6,105.80

52-week high: 7,441.82

52-week high: 11,408.20

52-week low: 9,596.04

52-week low: 2,061.14

52-week low: 1,010.91

52-week low: 4,790.00

52-week low: 5,607.68

52-week low: 8,227.63

Having finished the previous week at new highs, the Warsaw Stock Exchange’s main indices demonstrated a strong desire to maintain their growth trend last week.

The bulls gained the upper hand on the bourse at the beginning of the week and although the upward movement was interrupted by a correction on Wednesday, the blue-chip WIG20 and overall WIG indices ultimately closed at 2,877.24 and 49,503.34 last Friday, up 2.14 percent and 1.54 percent on the day.

This growth was bolstered in part by strength on the European stock exchanges. And, it should be noted, the WIG20 figure marked a two-year high.

Analysts predicted that it could even be headed for the 2,890 and 2,940 point levels.

Major indices WIG

48,729.83 (March 31 closure)

WIG20

2,816.96 (March 31 closure)

31.03

30.03

29.03

28.03

25.03

24.03

23.03

22.03

21.03

18.03

17.03

16.03

04.03

31.03

30.03

29.03

28.03

25.03

24.03

23.03

22.03

21.03

2,700 18.03

47,000

17.03

2,740

16.03

47,400

15.03

2,780

14.03

47,800

11.03

2,820

10.03

48,200

09.03

2,860

08.03

48,600

07.03

2,900

04.03

49,000

15.03

52-week low: 2,270.13

14.03

Change year to March 31: 2.26%

11.03

52-week low: 39,109.37

10.03

52-week high: 2,828.42

Change year to March 31: 2.27%

09.03

Change for the week: 1.26%

08.03

52-week high: 48,787.61

07.03

Change for the week:1.16%

Top 5 ERG ONE2ONE ABMSOLID PRIMAMODA GROCLIN

Closing 0.95 5.39 13.99 9.19 25.90

% change (week) 52-week high 30.14 1.56 18.72 11.15 14.39 25.98 14.16 9.19 12.95 28.11

52-week low 0.72 4.54 12.03 4.15 10.70

Top 5 TVN GETIN CYFRPOLSAT BRE CEZ

Closing 18.14 14.20 15.83 343.60 145.60

% change (week) 7.85 6.37 5.53 3.56 3.48

52-week high 19.31 14.20 17.30 343.60 148.80

52-week low 15.95 9.35 13.36 221.10 118.70

Bottom 5 POLREST HYPERION REINHOLD HERMAN BEST

Closing 0.48 4.95 4.13 1.24 8.49

% change (week) -26.15 -15.82 -14.49 -13.29 -12.47

52-week low 0.24 4.95 4.13 0.98 8.10

Bottom 5 KGHM PGNIG BZWBK TAURONPE PZU

Closing 180.20 3.76 226.70 6.28 356.00

% change (week) -2.01 -0.27 0.31 0.96 1.14

52-week high 188.90 3.94 227.00 6.89 417.50

52-week low 88.20 3.16 179.00 5.04 326.00

52-week high 1.06 7.06 10.50 1.62 30.00

Currency report

Back to normal?

Other indices mWIG40

2,912.50 (March 31 closure)

sWIG80

NewConnect

58.27 (March 31 closure)

WIG-Banki

31.03

30.03

29.03

28.03

25.03

24.03

23.03

22.03

21.03

18.03

17.03

16.03

15.03

14.03

11.03

10.03

31.03

30.03

29.03

28.03

25.03

24.03

23.03

22.03

21.03

18.03

17.03

12,300

16.03

2,800

15.03

12,420

14.03

2,840

11.03

12,540

10.03

2,880

09.03

12,660

08.03

12,780

2,920

07.03

2,960

04.03

12,900

09.03

52-week low: 10,980.45

08.03

52-week high: 12,855.31

Change year to March 31: 3.90%

07.03

Change for the week: 0.46%

52-week low: 2,361.69

04.03

52-week high: 2,918.17

Change year to March 31: 3.73%

3,000

7,091.76 (March 31 closure)

SOURCE: WSE

31.03

30.03

29.03

28.03

25.03

24.03

23.03

22.03

21.03

18.03

17.03

16.03

04.03

31.03

30.03

29.03

28.03

25.03

24.03

23.03

22.03

21.03

18.03

17.03

6,800

16.03

57.0

15.03

6,860 14.03

57.4

11.03

6,920

10.03

6,980

57.8

09.03

58.2

08.03

7,040

07.03

58.6

04.03

7,100

15.03

52-week low: 5,751.39

14.03

Change year to March 31: 1.86%

11.03

52-week low: 54.52

10.03

52-week high: 7,262.73

Change year to March 31: -8.11%

09.03

Change for the week: 2.53%

08.03

52-week high: 64.39

07.03

Change for the week: -0.03%

59.0

Adam Narczewski, X-Trade Brokers Dom Maklerski SA

12,727.29 (March 31 closure)

Change for the week: 1.38%

The general optimism in the market was reflected in the performance of Orlen’s stock, which climbed to its highest level since 2007 even though the company announced it would not recommend paying out a dividend for 2010. The indices were also supported by PZU, Poland’s largest insurer, which announced it could spend up to 100 percent of its profit in the next few years on dividend payments.

Pekao and PKO BP did respectably among financials, while TVN (media) and Getin continued to climb towards new threeyear highs.

Although the week closed with new highs, breadth on the market made it difficult to predict whether the trend will continue. ●

After a recent period of volatility, the markets finally calmed down last week. The Libya and Japan situations are still influences, but macroeconomic news is slowly replacing international affairs in the minds of investors.

The US economy is showing stronger signs of recovery, and, because inflation is increasing, members of the Federal Reserve (including the most “hawkish,” James Bullard) are starting to make noises which seem to suggest a change of US monetary policy could be in the cards.

The US central bank may be monitoring inflation closely, but it is undoubtedly paying more attention to the labor market. If the Fed sees continued improvement in that area, it is possible it will hike interest rates this year. Friday’s nonfarm payrolls report positively surprised with

216,000 new jobs. If the jobs-growth trend remains steady in the next couple of months, the Fed might finally react and tighten monetary policy.

The EUR/USD increased steadily during the course of the week to reach a high of $1.4230, although it did experience a brief corrective movement after Friday’s employment publication. It nevertheless rebounded quickly to finish the week at $1.4135.

The z∏oty continued its appreciation trend to reach z∏.3.98 against the euro and z∏.2.82 against the dollar.

There was no surprising macroeconomic news from the Polish economy last week and an expected corrective movement pushed the z∏oty currency pairs higher. The EUR/PLN finished the week at z∏.4.02 while the USD/PLN came in at z∏.2.84. ●

currency rates 3.4001 01.04

3.4102 31.03

SOURCE: NBP

3.4040

3.4609

3.4806 28.03

29.03

3.4959 25.03

0.0994

0.1002 01.04

3.3

30.03

PLN-100JPY

3.6

31.03

0.0995

0.0991 30.03

0.08

29.03

0.1005 0.10

25.03

3.0871 01.04

3.0825

0.1002

PLN-RUB

0.12

31.03

3.0654 30.03

3.0817 29.03

3.0935 28.03

3.1073 3.0

25.03

4.5625 01.04

4.5530 31.03

4.5471 30.03

4.5257 29.03

4.5362 28.03

4

25.03

4.5699

2.8455 01.04

2.8229

PLN-CHF

3.5

28.03

PLN-GBP

5

31.03

2.8277 30.03

2.8227 29.03

28.03

2.8425 25.03

4.0119

4.0312 01.04

2.5

2.8431

PLN-USD

3.0

31.03

3.9878 30.03

4.0240

3.9930 29.03

28.03

3

25.03

4

3.9980

PLN-EUR

5

Plenty of shopping centers are being expanded – what’s driving the trend?

PKP is looking to sell land in central Warsaw, with high-rise development in mind

19

17

LOKALE IMMOBILIA

W a r s a w B u s i n e s s J o u r n a l ’s w e e k ly s u p p l e m e n t o n re a l e s t a t e , c o n s t r u c t i o n a n d d e v e l o p m e n t

Polish contractor and designer PTB Nickel has laid the cornerstone at its Eureka Technology Park in Dàbrowa, near Poznaƒ. The facility, which is expected to be delivered in about 13 months, will offer more than 5,000 sqm of leasable space and will provide tenants with advice, infrastructure and services supporting research and innovation.

BREEAM for Ghelamco’s KBP Katowice Business Point (KBP), an office building developed by Belgium’s Ghelamco, has been awarded a BREEAM ecological certificate.

The building’s score was 61.02 %, which gives it a “very good” rating. This is the third BREEAM certificate awarded in Poland. The other two recipients are Warsaw’s Trinity Park III (score 56.20 %) and Crown Square (58.68 %), both developed by Ghelamco.

KBP was completed in Q2 2010 and offers 17,000 sqm of class-A office space on 11 floors as well as three underground parking levels. ●

Warimpex launches Le Palais scheme The Austrian developer’s latest project should be ready by the end of 2012 Austrian investor and developer Warimpex has launched construction on its Le Palais office project in Warsaw. The development, involving the renovation of two historical tenement houses on ul. Pró˝na, will deliver a total of 7,360 sqm of leasable space on five floors.

The buildings date from the late 19th century.

“We can finally start the reconstruction work on the Pró˝na tenements. I’m personally happy that we are beginning the next phase of the project in the heart of the Polish capital, which is an extremely important place for all Warsaw citizens,” Christian Fojtl, a member of Warimpex’s management board, said in a state-

Le Palais was originally planned as a luxury hotel project ment.

He added that his company has ample experience as far as

A deal with City Hall should speed up development

Apsys in Poznań . . . . . . . . . . . . .15 Echo’s land purchase . . . . . . . .16 Robyg goes commercial . . . . . .16 Family on its Own limits . . . . .16

Wars-Sawa purchase . . . . . . . .18 Mall expansion . . . . . . . . . . . . . .19 Residential . . . . . . . . . . . . . . . . .19

COURTESY OF EFFECTIVE PR

PKP land sale . . . . . . . . . . . . . . .17

Opera Office work . . . . . . . . . . .18

palace in Prague into a five-star luxury hotel and in Poland it has been known for, among other

Adam Zdrodowski

Apsys to bring new retail scheme to Poznaƒ

Warimpex’s Le Palais . . . . . . . .15

Property-related stocks . . . . . .17

the renovation of historical properties is concerned.

Warimpex previously turned a

things, the conversion of a former textile mill in ¸ódê into the four-star Andel’s ¸ódê hotel.

Warimpex has owned the buildings on ul. Pó˝na since 2003. The company previously planned to convert the properties into luxury hotel space but, having further researched the market situation in Warsaw, had a change of heart in 2008 and ultimately decided to go ahead with a safer and less costly option.

The Le Palais project, which will also include the renovation of a stretch of ul. Pró˝na and construction of an underground parking lot, was designed by the OP Architekten studio. PORR was recently appointed as the general contractor of the development, while Jones Lang LaSalle is responsible for its commercialization.

The investment is scheduled for completion in 2012.

Shopping centers

In this issue

JWC’s brownfield deal . . . . . . .17

APRIL 4-10, 2011, LI 16/13

Revitalization

COURTESY OF MEDIA & DORADZTWO

Eureka cornerstone laid

•

¸acina will deliver 95,000 sqm of GLA

French investor Apsys Group has obtained a green light from Poznaƒ City Hall to build its ¸acina shoppingservice complex in the city center. Both parties have concluded an agreement concerning the land on which the facility will stand.

“The agreement with City Hall will considerably speed up the realization of our project. We want to start the construction of ‘¸acina’ in a year’s time and finish it two years after that,” said Maciej Wróblewski, deputy chairman of Apsys Polska. ¸acina will have a GLA of 95,000 sqm and the investor has already signed over 100

lease deals with brands such as Carrefour, Leroy Merlin, ElectroWorld, Empik, H&M, C&A, Mango and Deichmann. Cinema operator Multikino will also be present with an eleven-screen multiplex. ¸acina will be equipped with under- and above-ground parking for approximately 3,200 vehicles.

Apsys Group, which is active in France, Poland and Russia, develops and manages shopping centers, and works on the strategies of their development. Its portfolio includes 15 shopping centers with a total of 700,000 sqm of shopping space in Poland and Russia. Its leading investment in the CEE region is Manufaktura, a mixed-use shopping center in ¸ódê.

Katarzyna Piasecka

Warsaw Business Journal presents Real Estate weekly newsletter • Know about the newest projects before they’re on the market • Keep up to date on the latest tenders and auctions • Learn the latest trends in Poland’s dynamic office, residential and retail sectors • Find out who’s who in Polish real estate To subscribe: e-mail subscribe@wbj.pl or call +48 22 639 85 68, ext. 201 and sign up for free two-week no-obligation trial subscription

LOKALE IMMOBILIA – REAL ESTATE

www.wbj.pl

New Osiedle Saska sales Developer Dom Development has launched sales of apartments in the latest phase of its Osiedle Saska residential project in Warsaw. On offer are 144 new units which are scheduled for completion in Q3 2012. They are sized from 45.1-98.8 sqm, with an average price of z∏.8,200 per sqm.

Located on ul.

Bora-Komorowskiego in the capital’s Praga Po∏udnie district, Osiedle Saska will ultimately comprise 11 buildings with a total of 1,539 units.

The development has been designed by the Hermanowicz Rewski Architekci studio; Unibep is serving as general contractor on the latest phase.

First tenant signs with NDJ Mobile telephony operator Polkomtel has leased 410 sqm of retail and services space in the Nowy Dom Jab∏kowskich (NDJ) office and retail project which LHI and Dom Towarowy Bracia Jab∏kowscy are realizing at the intersection of ul.

Chmielna and ul. Bracka in central Warsaw. The company is the first tenant in the under-construction development. The six-storey Nowy Dom Jab∏kowskich scheme, which is being built on a 742-sqm plot, will provide approximately 3,200 sqm of GLA. The project is scheduled to open in Q3. ●

Mortgages

New price limits for “Family on its Own” mortgage program More apartments qualify in Warsaw, fewer in Olsztyn Fifteen of Poland’s 16 voivodships have already set new price limits for apartments that qualify for “Family on its Own,” the government’s popular mortgage-subsidy program for firsttime homebuyers. The changes came into force on April 1.

Pomorskie voivodship is the odd one out, and will change its price limits at an unspecified future date.

The highest rise, amounting to 8.1 percent, will be observed in Warsaw, while for Mazowieckie voivodship as a whole the limits will drop by an average of 8.3 percent. Olsztyn is the city in which the limit will drop the most (5.3 percent).

These changes will, on the whole, allow more apartments to qualify for “Family on its Own” assistance, particularly in Warsaw. Real estate consultan-

cy Home Broker estimates that in comparison to the limits in place during Q1 2011, among 13 of Poland’s largest cities a cumulative rise of four percent will be seen in the number of apartments qualifying for the program.

The new limits could be in force until the passage of new legislation which will considerably curtail the “Family on its Own” program. Currently being debated by parliament, the bill will set an end date of December 31, 2012, for the program. It will also exclude secondary market homes and unmarried individuals will not be able to participate. Moreover, an age limit of 35 will be set and the price per square meter limit for qualifying apartments will be lowered.

According to unofficial sources, the act could come into force either on July 1 or after the autumn elections.

Warsaw Stock Exchange-listed developer Echo Investment has recently bought plots in Kraków and Szczecin from hotel company Orbis. The total value of the properties amounts to z∏.59.5 million.

In Kraków, Echo Investment purchased land on Al. Marsza∏ka Ferdinanda Focha which currently hosts the Cracovia hotel; it plans to develop a mixed-use complex at the location. The details of the investment have not yet been negoti-

ated with Kraków City Hall.

For its part, the acquisition of the Szczecin plot, which is located on the city’s ul. Jana Matejki and hosts the Neptun hotel, will allow the developer to expand the Galaxy shopping and entertainment center, which opened in 2003 and offers 42,000 sqm of GLA. Echo Investment has not yet disclosed the size or value of the planned investments.

These will be known once the company has finished market

Robyg Group, a developer best known in Poland for its residential projects in Warsaw and Gdaƒsk, is entering the commercial property market. The company has just acquired Wilanów Office Center (WOC), a firm which owns approximately three hectares of land on Al. Rzeczypospolitej in the capital’s Wilanów district.

WOC planned to build a complex of office and retail buildings on the plot which could see the development of

approximately 35,000-40,000 sqm of useable space. Robyg itself will now realize a multiphase commercial investment at the same location.

“We have made the first big step in the commercial property market. The land is exquisitely located and we see huge potential in it. We will start construction on the first building in a few months,” Oscar Kazanelson, president of Robyg’s supervisory board, said in a statement.

Warsaw Stock Exchange-

Per square meter price limits in the “Family on its own” subsidized mortgage program for first-home buyers in major Polish cities (in z∏oty) 10,000 Q2 2011

8,000

6,000

4,000

2,000

0

Warsaw

Poznań

Wrocław

Kraków

Łódź

Katowice Source: BGK

analysis and work on architectural concepts for the projects.

This is not the first time Echo Investment has invested in land occupied by hospitality properties. In June last year the developer signed a preliminary agreement with Accor Polska concerning the sale of the Mercure hotel in central Warsaw. Echo Investment hopes to erect an office building at the location.

Adam Zdrodowski

Robyg to build commercial space

Katarzyna Piasecka

Q1 2011

APRIL 4-10, 2011

Echo Investment buys hotel land

COURTESY OF TBT I WSPÓLNICY

16

City Apartments is another of Robyg’s Warsaw projects

listed Robyg has to date sold approximately 1,900 apartments in Poland and is currently involved in six residential projects in the country.

These are Nowa Rezydencja Królowej Marysieƒki, Osiedle Zdrowa, City Apartments and Osiedle Kameralne in Warsaw, and S∏oneczna Morena and Lawendowe Wzgórza in Gdaƒsk. The company is also currently considering entering the Wroc∏aw market.

Adam Zdrodowski

LOKALE IMMOBILIA – REAL ESTATE

Skyscrapers

JWC buys brownfield land for z∏.174 million

PKP to sell land in city center The deal could mean new high-rise development in the central business district Polish State Railways (PKP) plans to sell plots located at the intersection of ul. Chmielna and Al. Jana Paw∏a II in central Warsaw by the end of this year.

The properties are located just next to Warsaw’s central railway station and could potentially host skyscrapers standing around 130-140 sqm tall.

The land in question, which currently hosts several private parking lots and transport infrastructure, is not covered by a zoning plan. But, according to PKP, Warsaw City Hall will green-light the construction of two towers as well as a shorter third structure at the location.

For now, however, PKP is not willing to go into too much detail on the property.

“First of all a large stretch of land owned by us, which is located between ul. ˚elazna, ul. Chmielna, Al. Jerozolimskie and Al. Jana Paw∏a II, needs to be divided into several smaller plots,” said Andrzej

Dudziƒski, head of PKP’s real estate management office.

“Then we will be able to think about the commercial use of the plots near Chmielna and about the skyscrapers,” he added.

According to Anna Bartoszewicz-Wnuk, a real estate market analyst at Jones Lang LaSalle, the land will be of tremendous interest to developers, with prices possibly reaching as high as z∏.19,000 per sqm. “It has potential not only in terms of office projects, but the location also represents a great place to host shops, or even a shopping mall,” she said.

Meanwhile, Poland’s Infrastructure Ministry is working on new regulations which would facilitate the development of new structures in locations where transport infrastructure already exists.

There’s no word yet on when the regulations will come into effect, however.

PKP is also planning to sell land in the Odolany neighborhood of Warsaw’s Wola district and is in negotiations concerning the construction of a new Warsaw West railway station.

Katarzyna Piasecka

One of Poland’s largest residential developers, JW Construction (JWC), has signed a preliminary agreement for a brownfield investment in Warsaw’s Wola district. The gross value of the deal, signed with VIS Investments, amounts to z∏.176.9 million.

The net value amounts to almost z∏.174 million, a representative of JWC confirmed.

According to the agreement, JWC is to acquire perpetual usufruct rights for plots totaling 8.1185 ha on ul.

Kasprzaka 29/3 in Warsaw’s Wola district. The land is occupied by old factory buildings.

The agreement will come into effect once a zoning plan for the area is enacted.

According to a statement from JWC, this is expected to happen before the end of 2011.

“We have signed a preliminary conditional agreement to buy the land in Wola. A comment regarding the investments planned on this land will be released during a press conference as soon as the zoning plan for the area is presented,” JWC deputy chairman Tomasz Panaba˝ys said in a statement sent to Lokale.

The company is also work-

Property-related stocks Security

Closing price on March 31

% change (week)

52-week low

52-week high

% change (year)

Total shares

Market value (z∏.mln)

BUDIMEX

102.50

4.33

84.55

106.10

2.50

25,530,098

2,616.84

CELTIC

20.05

-2.43

17.43

60.55

N/A

34,068,252

683.07

DOMDEV

47.50

0.74

38.52

61.00

-14.18

24,560,222

1,166.61

ECHO

4.90

0.82

3.95

5.40

11.36

420,000,000

2,058.00

ELBUDOWA

154.00

-1.91

152.00

188.40

-12.00

4,747,608

731.13

ENERGOPLD

4.09

4.60

3.57

4.38

-7.05

70,972,001

290.28

ERBUD

39.62

-3.37

39.62

61.00

-25.94

12,602,711

499.32

GANT

14.08

3.38

12.98

26.00

-42.53

20,499,953

288.64

GTC

21.28

2.31

19.58

24.98

-14.19

219,372,990

4,668.26

HBPOLSKA

2.36

-7.45

2.36

3.90

-28.27

210,558,445

496.92

JWCONSTR

14.80

3.93

13.50

18.69

-4.82

54,073,280

800.28

LCCORP

1.55

-0.64

1.41

1.73

-5.49

447,558,311

693.72

MARVIPOL

9.00

0.00

8.83

19.90

-53.44

36,923,400

332.31

MIRBUD

4.55

1.11

2.71

4.75

62.50

75,000,000

341.25

MOSTALWAR

45.69

6.26

43.00

77.00

-39.08

20,000,000

913.80

MOSTALZAB

2.72

-1.45

2.63

4.84

-41.00

149,130,538

405.64

ORCOGROUP

37.80

2.16

19.00

39.50

31.71

14,053,866

531.24

PBG

188.00

2.34

181.80

252.00

-12.76

14,295,000

2,687.46

PLAZACNTR

4.00

-4.53

3.70

6.39

-34.96

292,647,720

1,170.59

POLAQUA

17.50

6.06

16.00

22.50

-7.16

27,500,100

481.25

POLIMEXMS

3.52

2.03

3.33

5.24

-30.98

521,035,327

1,834.04

POLNORD

31.00

-1.71

30.50

44.00

-16.89

22,242,031

689.50

RANKPROGR

11.92

9.96

9.59

11.92

N/A

37,145,050

442.77

ROBYG

2.06

4.57

1.70

2.08

N/A

257,390,000

530.22

RONSON

1.43

3.62

1.36

2.10

-18.29

272,360,000

389.47

TRAKCJA

3.48

-0.85

3.32

4.97

-24.51

160,105,480

557.17

ULMA

82.50

0.00

70.00

86.20

3.84

5,255,632

433.59

UNIBEP

7.78

-2.75

7.30

10.30

-8.15

33,927,184

263.95

WARIMPEX

10.10

-3.81

7.64

10.85

22.13

54,000,000

545.40

ZUE

13.25

-3.85

13.25

15.14

N/A

22,000,000

291.50

www.wbj.pl

17

Martinisation buys Magnolia Martinisation London’s Polish subsidiary has acquired Magnolia, a housing estate located in Lesznowola near Warsaw. The value of the deal has not been revealed. The complex comprises 33 houses on plots of 300-600 sqm, with some already turned over to buyers.

Finished but as-yetunsold houses cost approximately z∏.1.5 million.

PolnordGdaƒsk deal delayed COURTESY OF MARTIS CONSULTING

APRIL 4-10, 2011

JWC’s new projects will be in Warsaw’s Wola district, where its Górczewska Park (above) is also located ing on another project in Wola with Spanish developer Grupo Prasa. The firms will build the Oxygen residential project at the intersection of ul. Grzybowska and ul. Wronia.

JWC is listed on the War-

saw Stock Exchange and is active in the Warsaw, ¸ódê and Tri-city markets. Its portfolio of delivered and pipeline projects includes around 25,000 apartments and 350 single-family houses.

Katarzyna Piasecka

The signing of an agreement between developer Polnord and Gdaƒsk City Hall has been postponed until July 15. The two sides want to realize a joint project for the development of the northern part of Granary Island, which is located in central Gdaƒsk. The land, which lies in a historical area of the city, is over two hectares in size and considered one of the most valuable plots in Poland. ●

LOKALE IMMOBILIA – REAL ESTATE

www.wbj.pl

Hochtief wins airport deal

ProLogis’ new tenant Distribution space developer ProLogis has concluded a lease agreement with NTA, an American provider of freight forwarding services, for 6,000 sqm in its ProLogis Park Teresin logistics park in Mazowieckie voivodship.

ProLogis Park Teresin consists of six buildings totaling 160,000 sqm. ●

ING completes Wars-Sawa-Junior deal

COURTESY OF MELZER PR GROUP

Hochtief Polska will expand and modernize the passenger terminal of the Poznaƒ-¸awica Airport. The company is expected to start work on the scheme in spring and finish it in Q2 2013.

The value of the contract amounts to more than z∏.96.3 million. Hochtief will build a new section of the terminal, whose floor area will amount to more than 17,800 sqm. It will house the check-in and arrivals halls, baggage handling area and office space.

The company will also renovate the existing terminal building.

APRIL 4-10, 2011

ING considers Poland a growing, strategic market

ING Property Fund Central and Eastern Europe (ING PFCEE), a fund managed by ING Real Estate Investment Management (ING REIM), has acquired the remaining 50 percent stake in its WarsSawa-Junior property in Warsaw’s city center.

The cost of the investment amounted to €76 million.

The seller was Centrum Development and Investment, ING PFCEE’s joint venture partner and subsidiary of the Luxembourgbased Eastbridge Group.

ING PFCEE acquired the other half of the retail and office facility in 2007 from

the same company.

“We consider Poland to be a growing, strategic market. After a period of optimizing our CEE portfolio through redevelopments and extensions of some of our properties, this transaction clearly marks our return to the investment market as an active player. We are very happy to conclude this transaction in such a vibrant place,” said Martin Sabelko, managing director of ING REIM for the CEE region.

Wars-Sawa-Junior’s tenants include H&M, Reserved, Marks & Spencer, Empik and Esprit. The prop-

erty comprises approximately 29,000 sqm of retail space and 7,000 sqm of office space.

“As the proud owner of Wars-Sawa-Junior we plan to continue a positive dialogue with all tenants of the property in order to maximize our mutual benefits. After we successfully completed a refurbishment of the retail units last year, we will continue to enhance the shopping mall experience at WarsSawa-Junior,” said Krzysztof Bocianowski, head of asset management of ING REIM Poland.

Katarzyna Piasecka

Opera Office construction starts Gdaƒsk-based developer Euro Styl announced the start of construction on its Opera Office project.

The building is scheduled for delivery in summer 2012 and the first tenants are expected to move in during the second half of 2012.

Opera Office will be located on Al. Zwyci´stwa, on the boundary of Gdaƒsk’s central and Wrzeszcz districts. It will bring approximately 7,200 sqm of office space to the market, as well as about 200 parking

spaces.

Designed by Degutis Studio Architektury, the building will be “V” shaped, with one wing standing four storeys in height and the other three storeys.

The firm has chosen Jones Lang LaSalle to serve as exclusive leasing agent for the development.

“The realization of Opera Office has been commenced in accordance with the previously accepted plans. The moderate size of the investment and

increasing tenant activity give us reason to view the process of commercialization optimistically,” said Magdalena Reƒska from Jones Lang LaSalle’s Gdaƒsk office.

Euro Styl is also engaged in a number of other projects, with its focus squarely on the northern part of the country.

The firm’s largest investment to date is Centaurus, a 32,000 sqm mixed-use investment being developed in the northern city of Olsztyn.

Katarzyna Piasecka

COURTESY OF JONES LANG LASALLE

18

Delivery is scheduled for summer 2012

LOKALE IMMOBILIA – REAL ESTATE

APRIL 4-10, 2011

Shopping centers

Adding to the mix Adam Zdrodowski

Following the slowdown that gripped the retail property market in 2009, signs of stabilization and increased optimism on the part of developers and tenants alike began to appear last year. Admittedly, activity in the market was still characterized by caution, but both supply and demand were demonstrably on the rise.

Only 460,000 sqm of new retail space was delivered in 2010, but developers started construction on new projects totaling over 670,000 sqm in the period and a growing number of projects have the chance to obtain bank financing, according to a recent report by Colliers International. Approximately 650,000 sqm could be delivered this year, a level similar to that seen in 2008.

Expanding all over This increasing development activity has manifested itself not only in the provision of new shopping centers and other retail projects, but also in the expansion of existing schemes. A number of such investments are scheduled for completion later this year, while construction on others has just launched or is expected to launch soon.

Echo Investment, for one, is now expanding its Galeria Echo shopping center in

COURTESY OF ECHO INVESTMENT

As demand for retail space grows, developers are expanding their existing retail projects

Echo Investment will almost triple the area of its Galeria Echo in 2011 Kielce – its GLA will grow from 26,000 sqm to 70,000 sqm when the new section is opened in August. Having researched the Kielce market, the developer decided to add space for furnishings and interior design providers, among others. At this stage, the mall’s expanded space is already 95 percent leased out.

The same company has just launched construction on Galeria Olimpia in Be∏chatów, a project which involves the expansion of Centrum Handlowe Echo, a retail project delivered in 2000.

For its part, Immofinanz is involved in the expansion of its Silesia City Center mall in Katowice. The shopping center will see its area expand by

almost 20,000 sqm, with the value of the investment estimated at approximately €50 million. Octava NFI’s Magnolia Park in Wroc∏aw and

“ Developers finally have the financial means to deliver consecutive phases of their projects” EPISO’s Jantar mall in S∏upsk are also expected to grow, by some 11,000 sqm and 24,000 sqm, respectively.

Impetus for growth This expansion trend is partly due to developers’ search for efficiency as well as improved access to financing.

“On the one hand, developers are obviously willing to maximize the potential of existing investments, optimize their function and offer, and [thus] gain an advantage over the competition. On the other hand, they finally have the financial means to deliver consecutive phases of their projects,” commented Anna Radecka, a senior associate in the retail space department of Colliers International Poland.

She added that the appearance of new brands in the Polish market as well as the needs of the expanding retailers have also contributed to the expansion trend.

“Tenants’ demand for new retail space has grown. Retail chains in Poland are expand-

ing again and are securing prime locations which have already been verified by the market,” Ms Radecka said.

Renata Kinde-Czy˝, a member of the board at Metro Group Asset Management, noted that expansion investments, like any other kind, are made after detailed analysis of the market. In this sense, the investment process itself is no different than for a completely new retail investment.

She acknowledged, however, that there are differences in other areas.

“The number of permissions and analyses is similar in both cases. However, as far as the technical and logistical processes are concerned, they differ considerably,” she said.

“First of all, it should be noted that an expansion is like ‘surgery on a living organism,’” she said. “A number of endeavors needs to be applied so that the facility functions without affecting the comfort of tenants and clients. For example, a part of bothersome work needs to be conducted at night. Such problems do not exist in the case of construction of a new center.”

Indeed, the logistics of performing major “surgery” on an open, functioning shopping center can be daunting.

“I might risk even saying that the construction of a new facility is easier than the expansion of an already existing one if we want to keep the facility functioning at the same time,” Ms Kinde-Czy˝ said. ●

www.wbj.pl

19

Panattoni Park Âwi´cice full Panattoni Europe has fully commercialized its Panattoni Park Âwi´cice logistics park near O˝arów Mazowiecki, approximately 19 km west of downtown Warsaw. Tech Data Polska has taken up all 17,000 sqm of the planned building, construction on which is expected to launch in April. Panattoni Park Âwi´cice will comprise two buildings delivering a total of 33,700 sqm of space. The first building in the complex, construction on which started in October last year, is a 16,700 sqm BTS facility which Panattoni Europe is developing for a food industry client.

Hotel Âwi´cice opened NewConnect-listed developer Lokaty Budowlane has opened its Hotel Âwi´cice hospitality project in Âwi´cice near Warsaw.

Located on the E30 national road, approximately 13 km from the capital’s border, the project comprises more than 4,000 sqm and houses 66 rooms as well as conference areas.

Lokaty Budowlane is currently preparing residential projects in Warsaw’s W∏ochy and Praga Po∏udnie districts.

The company is also looking for new investment possibilities and hopes to acquire schemes that already have building permits. ●

A guide to Polish business and industry

Przewodnik po polskim biznesie i gospodarce

The 2011 edition of book of lists is now available!

• Find key information about the dominant players in the market • Expand your portfolio of contacts • See who’s on top of your sector

To order:

Please contact us at +48 22 639 85 68 or kwilinski@valkea.com

THE LIST

APRIL 4-10, 2011

www.wbj.pl

21

Travel & Leisure

Passenger Airlines Serving Poland Listed alphabetically Number of countries served worldwide / Number of destinations / Number of destinations served directly from Poland

Company name Address Tel./Fax E-mail Web page

Major outbound destinations

WND WND WND WND

WND WND WND WND

WND WND

WND WND

WND 25 WND

Ljubljana; Sarajevo; Podgorica; Pristina; Tirana; Skopje

WND WND WND WND

WND WND WND WND

WND WND

WND WND

40 53 WND

Toronto; Montreal; Katowice; London; Frankfurt; Warsaw; Vancouver; Calgary; Pariz; Kraków; Poznaƒ; Zurich; Munich Gdaƒsk; Ottawa Wroc∏aw

WND 124,697 127,833 WND

54 54

54 54

98 183 1

Paris; Havana; New York; Rio de Janeiro; Chicago

Paris

Warsaw

A380; B 747-400; B 777-300; A340-300; A330-200; A321; A320; A319; A318; A747-400 ERF; Fokker100; Embraer145; BAe146/Avro RJ85; ATR72; BombardierCRJ100; CRJ700; ATR72; Embraer 190 Sky Team

41 1954

Rome; Buenos Aires; Catania; Cagliari; Cairo

WND

WND

B777/200ER; A330/200; B767/300ER; A321; A320; A319; MD80-MD82; B737/400; B737/300; E170LR; CRJ900; RJ70 Sky Team

WND 1964

Warsaw

Boeing 737-300/500; CRJ-100/200 LR WND

1 1993

Number of Number of passangers passangers departing Phone numbers arriving to from Poland for reservations Poland 1st half of 2010 / 2009 / 2008 / 2007

Adria Airways ul. Marsza∏kowska 28, 00-576 Warsaw 22 696-4520/22 696-4524 adria@globair.pl www.globairgroup.com/poland

22 696-8520

Air Canada ul. Marsza∏kowska 28, 00-576 Warsaw 22 696-4520/22 696-4524 aircanada@globair.pl www.globairgroup.com/poland

22 330-9450

www.bookoflists.pl

Number of flights per week: Summer 2010 / Summer 2009

Number of flights per week: Winter 2009/2010/ Winter 2008/2009

Number of employees / Top local executive / Year Title founded

Major hubs

Airports served in Poland

Aircraft used / Alliance

Ljubljana

Warsaw; Katowice; Kraków; Gdaƒsk

Boeing; Canadair Star Alliance

2 2006

Barbara DziadowiczTurowicz

Boeing; Airbus Star Alliance

2 2003

Barbara DziadowiczTurowicz

WND

WND

Air France SA – Oddzia∏ w Polsce ul. Nowy Âwiat 64, 00-357 Warsaw 22 556-6400/22 556-6415 mail.cto.waw@airfrance.fr www.airfrance.pl

22 556-6400

WND 127,446 132,952 WND

Alitalia Compagnia Aerea Italiana S.A. – Oddzia∏ w Polsce ul. Nowy Âwiat 64, 00-357 Warsaw 22 556-6800/22 692-8735 alitalia.warszawa@alitalia.it www.alitalia.com

801-107-700

WND WND WND WND

WND WND WND WND

WND 28

WND 14

WND WND WND

Belavia Belarusian Airlines Poland Branch Al. Ujazdowskie 6A/111, 00-461 Warsaw 22 628-3887/22 629-8219 poland@belavia.by www.belavia.by

22 628-3887

WND WND WND WND

WND WND WND WND

3 3

3 3

28 30 10

British Airways ul. Marsza∏kowska 76, 00-517 Warsaw 22 529-9000/22 628-6341 www.ba.com

22 529-9000

WND WND WND WND

WND WND WND WND

42 42

42 56

148 600 1

London

London

Warsaw

Boeing 747; Boeing 777; Boeing 767; Boeing 757; Boeing 737; Airbus A319/320/321 Oneworld

WND 1959

Brussels Airlines ul. ˚wirki i Wigury 1, 00-906 Warsaw 22 650-3999/22 650-3998 infopl@brusselsairlines.com www.brusselsairlines.com

22 650-3999

WND WND WND WND

29,693 69,203 79,515 79,494

30 32

30 30

WND 70 1

Brussels; Madrid; Lisbon; Porto; Barcelona

Brussels

Warsaw; Kraków

Airbus 330; Airbus 319; Avro 100; BAE 146; Boeing 737 IATA

6 2002

China Airlines ul. Marsza∏kowska 28, 00-576 Warsaw 22 696-4520/22 696-4524 china-airlines@globair.pl www.globairgroup.com/poland

22 696-8520

WND WND WND WND

WND WND WND WND

WND WND

WND WND

27 84 WND

Taipei; Denpasar; Bangkok; Jakarta; Frankfurt; Warsaw; Katowice; Kuala Lumpur; Hanoi; Amsterdam; Rome; Kraków; Gdansk; Hong Kong; Manila; Wienna Poznaƒ; Wroc∏aw Sydney; Brisbane

Airbus; Boeing Dynasty Flyer

2 2006

Barbara DziadowiczTurowicz

DD Air Travel-Malév Hungarian Airlines GSA Al. Jana Paw∏a II 15, 00-828 Warsaw 22 697-7171/22 697-7477 dominika.domagalska@malevgsa.pl www.malevgsa.pl

22 697-7171

WND WND WND WND

WND WND WND WND

13 13

13 13

WND WND WND

Beirut; Damascus; Tel Aviv; Amman; Salonika; Tirana

WND

WND

Boeing: 737-600, 737-800; Bombardier Dash 8 Q400 Oneworld

WND 1957

Dominika Domagalska

Finnair SA ul. Prusa 2, 00-469 Warsaw 22 650-3922/22 657-0169 www.finnair.com

22 650-3922; 22 650-4034

23,000 52,000 62,000 53,000

23,000 52,000 62,000 53,000

46 46

42 40

26 70 1

Beijing; Shanghai; Hong Kong; Bangkok; Tokyo

Helsinki

Warsaw, Kraków

A340; A330; A321; A320; A319; E170; E190 Oneworld

5 1973

Juhani Nuoramo

KLM SA Poland – Oddzia∏ w Polsce ul. Nowy Âwiat 64, 00-357 Warsaw 22 556-6444/22 556-6415 mail.cto.waw@airfrance.fr www.klm.pl

22 556-6444

WND 90,352 11,1520 WND

WND 93,675 114,825 WND

42 42

42 38

WND 151 1

Warsaw

Boeing 747-400 PAX; Boeing 747-400 Combi; Boeing 747400 ER Freigter; Boeing 747-400 BC Freighter; Boeing 77300 ER wide body; Boeing 777-200; ER wide body 5.515; MD-11 wide body; MD-11 Freighter wide body; Boeing 767-300 ER wide body; Airbus A330-200wide body; Boeing 737-900; Boeing 737-800; Boeing 737-700; Boeing 737400; Boeing 737-300; Embraer 190; Fokker 100; Fokker 70 Sky Team

41 1956

Head of Representation

Polskie Linie Lotnicze LOT SA ul. 17. Stycznia 39, 00-906 Warsaw 22 606-6111/22 606-9101 media@lot.com www.lot.com

801-703-703; 22 9572; 22 1 9572

1,556 1,543

1,388 1,368

48 51 51

Warsaw; Gdaƒsk; Szczecin; Poznaƒ; Chicago; London; Frankfurt; Wroc∏aw; Frankfurt; New York; Copenhagen; Munich; Katowice; Kraków; Munich Paris; Vienna Rzeszów; Bydgoszcz

Boeing 767; Boeing 737; Embraer 170; Embraer 175; Embraer 145; ATR 72; ATR 42 IATA; Star Alliance; AEA

2,240 1929

President; General Director

Scandinavian Airlines System (SAS) – Oddzia∏ w Polsce Al. Jana Paw∏a II 29, 00-867 Warsaw 22 850-0500/22 850-0438 reservation.waw@sas.dk www.flysas.pl

22 850-0500

WND WND WND WND

WND WND WND WND

WND WND

WND WND

28 128 2

Copenhagen; Stockholm; Oslo; Goeteborg; New York

Copenhagen; Stockholm; Oslo

Swiss International Air Lines SA – Oddzia∏ w Polsce Al. Jana Paw∏a II 29, 00-867 Warsaw 022 520-3456/022 520-3486 info.poland@swiss.com www.swiss.com

801-300-962

WND WND WND WND

WND WND WND WND

24 WND

24 WND

WND WND WND

Zurich; Basel; New York; Shanghaj; Dubai

Zurich

Turk Hava Yollari SA – Oddzia∏ w Polsce (Turkish Airlines) Al. Jerozolimskie 123A, 02-017 Warsaw 22 529-7700/22 529-7710 sales@turkish.pl www.turkishairlines.com

22 529-7700

14,580 29,260 27,369 25,662

14,950 27,835 26,290 24,594

4 4

4 4

WND 160 1

China; Thailand; India; South Africa; Persian Gulf

Istanbul

710,078 70,6851 1,422,328 1,411,349 WND WND WND WND

Notes: NR = Not Ranked, WND = Would Not Disclose. Research for The List was done in December 2010. Number of employees and ownership structure are as of November 2010 unless stated otherwise. All information pertains to the companies’ activities in Poland. Companies not responding to our survey are not listed.

Amsterdam; Berlin; Frankfurt; Kiev; Amsterdam; Baku; Minsk; Moscow; Beirut; Berlin; London Paris; Prague; Rome; Vienna; Warsaw; St. Peterburg

Amsterdam; New York; Chicago; Nairobi; Lima

Amsterdam

David Garcia Head of Representation

George Athanassiou Country Manger

Yuri Sobolev Manager for Poland

Anna Ingham Director CEE

Jaros∏aw Nowicki General Director for Poland

WND

General Manager

Sales Director CEE

David Garcia

Marcin Piróg

Airbus: A340-300, A330-300, A321-200, A319-100; MDWarsaw; Gdaƒsk; 81/82/87; Boeing: 737-400/500, 737-600/700/800; Fokker 50; CRJ900 NG Poznaƒ Star Alliance

37 1956

Wanda Brociek

Warsaw

Avro RJ100; Airbus A319/320/321; Airbus A 330; Airbus A340 Star Alliance; IATA

8 2002

Maria Kowalewska

Warsaw

Airbus 340; Airbus 320; Airbus310; Boeing 737 IATA; Star Alliance

9 2000

Mete Akandere

General Manager

Director

Director

To the best of WBJ ’s knowledge, the information is accurate as of press time. While every effort is made to ensure accuracy and thoroughness, omissions and typographical errors may occur. Corrections or additions to The List should be sent, on official letterhead, to Warsaw Business Journal, attn. Joanna Raszka, ul. Elblàska 15/17, 01-747 Warsaw, via fax to (48-22) 639-8569, or via e-mail to wbjbol@wbj.pl. Copyright 2011, Valkea Media SA. The List may not be reprinted or reproduced in whole or in part without prior written permission of the publisher. Reprints are available.

22

ARTS & CULTURE

www.wbj.pl

APRIL 4-10, 2011

Flamenco extravaganza Country fiddle meets Peña Flamenco Dance Company Palace of Culture, Congress Hall, April 14, 7 pm

African folk tunes

COURTESY OF IMN

Indie in Warsaw “Belle & Sebastian” Klub Stodo∏a April 19, 8 pm Critically acclaimed Glaswegian indie band Belle &

Sebastian bring their own brand of wistful acoustic pop melodies to Warsaw this month. The Scottish group’s critical acclaim has not

Detroit-born jazz violinist Regina Carter has taken African folk tunes and infused them with her own unique talents, creating a layered, multicultural sound. Incorporating both the accordion and West African harp, her melodies energize and linger with the listener. A MacArthur Fellow, she arrives in Poland as part of an ambitious world tour to promote her new album, “Reverse Thread.” ●

Jazz transcending borders

always been accompanied by commercial success, but for fans of beautifully crafted lyrics and folk guitar this is a must-see gig. ●

COURTESY OF BELLE AND SEBASTIAN/FLICKR

“Los Tres Plus One” Jazzownia Liberalna Club April 17, 7:30 pm

Graduation dance The Roman Turczynowicz Ballet School Grand Theater in Warsaw April 16, 6 pm Students of the famous Roman Turczynowicz Ballet School will get a taste of the

Fort on film “The Fate of the Castle; the Fate of the Country” Royal Castle, Pl. Zamkowy Starting April 17

limelight at their annual graduation evening. The school, which was formed in 1920, takes its name from a 19thcentury Varsovian dancer and ballet master who performed in Parisian operas. ●

Part of the Royal Castle’s film series, this Polish historical documentary is subtitled in English. Directed by L. Perski, it plays every hour between 11:30 am and 2:30 pm in the beautiful surroundings of Warsaw’s Royal Castle. Runs through June. ●

The riddles of Turandot “Turandot” Grand Theater in Warsaw April 17, 6 pm Set in China, Giacomo Puccini’s thrilling last score sees a bloodthirsty princess challenge suitors with deadly riddles ... until one finally wins her heart. Mariusz Treliƒski directs. ●

“Bad Luck” (“Zezowate Szcz´scie”) Dir. A. Munk, Poland 1960 Kino Alchemia, April 4, 7 pm

A tale spanning 20 years in the life of a political opportunist who continually tries to please others, but con-

A collaboration consisting of Ralph Greenblatt, Rodney Rodriguez, Piotr Ruciƒski and the vocals of Magda Borkowska will bring the best of American and Polish musical talents together to provide a mix of jazz and Latin rhythms. Each member brings his or her own unique talents to the table to produce an original musical experience.

tinually fails. An amusing caricature of a villain unable to keep up with the times. ●

Puerto Rican-born Rodney Rodriguez is influenced by jazz standards, salsa and Latin jazz, while Piotr Ruciƒski has a musical background in the blues. Multiinstrumentalist and a music teacher at Warsaw’s American School, Ralph Greenblatt

adds his talents on drums and bass, with Magda Borkowska’s vocals adding the final piece to the musical puzzle that is “Los Tres Plus One.”

For more info log on to www.jazzownia.pl ●

Some content provided by the Warsaw Insider. For more information on culture and entertainment in Warsaw this month, pick up the April issue.

Museums, galleries and venues in Warsaw Centre for Contemporary Art at Ujazdowski Castle ul. Jazdów 2 www.csw.art.pl Czarna Gallery ul. Marsza∏kowska 4 www.czarnagaleria.art.pl Galeria 022, DAP, Lufcik ul. Mazowiecka 11a www.owzpap.pl Galeria 65 ul. Bema 65 www.galeria65.com Galeria Appendix 2 (Praga) ul. Bia∏ostocka 9 www.appendix2.com Galeria Asymetria ul. Nowogrodzka 18a www.asymetria.eu Galeria Foksal ul. Foksal 1-4 www.galeriafoksal.pl Galeria Milano Rondo Waszyngtona 2A (Praga) www.milano.arts.pl Galeria Schody ul. Nowy Âwiat 39 www.galeriaschody.pl

A villain’s luck

COURTESY OF REGINA CARTER

Jazz Era: Regina Carter Quintet Palladium April 14, 8 pm

Regarded as one of the world’s foremost flamenco guitarists performing today, Paco Peña has been at the forefront of popularizing traditional Spanish music since as far back as the early 1970s. He and his group of dancers and backing musicians will showcase their talents this spring as they bring their own brand of Latin energy to Warsaw. They will be performing Mr Peña’s most successful project to date, “A Compás!” ●

Green Gallery ul. Krzywe Ko∏o 2/4 www.greengallery.pl

Simonis Gallery ul. Burakowska 9 www.simonisgallery.com

Katarzyna Napiórkowska Art Gallery ul. Âwi´tokrzyska 32, ul.

Krakowskie PrzedmieÊcie 42/44 and Old Town Square 19/21 www.napiorkowska.pl

State Archaeological Museum in Warsaw ul. D∏uga 52 (Arsena∏) www.pma.pl

Królikarnia National Gallery ul. Pu∏awska 113a www.krolikarnia.mnw.art.pl Le Guern Gallery ul. Widok 8, www.leguern.pl Museum of Independence Aleja SolidarnoÊci 62 www.muzeumniepodleglosci.art.pl National Museum in Warsaw Al. Jerozolimskie 3 www.mnw.art.pl Polish National Opera at Teatr Wielki Pl. Teatralny 1 www.teatrwielki.pl Pracownia Galeria ul. Emilii Plater 14 www.pracowniagaleria.pl

State Ethnographic Museum ul. Kredytowa 1 www.ethnomuseum.website.pl Historical Museum of Warsaw Old Town Square 28-42 www.mhw.pl History Meeting House of Warsaw ul. Karowa 20 www.dsh.waw.pl Warsaw Philharmonic ul. Jasna 5 www.filharmonia.pl Warsaw Rising Museum ul. Grzybowska 79 www.1944.pl

Galeria XX1 Al. Jana Paw∏a II 36 www.galeriaxx1.pl

Rempex Art and Auction House ul. Karowa 31 www.rempex.com.pl

Wilanów Palace Museum and Wilanów Poster Museum ul. St Kostki Potockiego 10/16 www.milanow-palac.pl www.postermuseum.pl

Galeria Zoya ul. Kopernika 32 m.8 www.zoya.art.pl

Royal Castle Pl. Zamkowy 4 www.zamek-krolewski.com.pl

Zachęta National Art Gallery Pl. Ma∏achowskiego 3 www.zacheta.art.pl

LAST WORD

APRIL 4-10, 2011

www.wbj.pl

23

Tech Eye

COURTESY OF IKEPOD/MARC NEWSON

Last Wednesday, for the first (and hopefully last) time, Techeye reached into another human being’s mouth and removed a booger. The memory haunts us.

It was 7:07 pm. A dying glimmer of sunlight was reflected in the clouds, and the air in our apartment was thick with pint-sized anger. A last mournful wail from our offspring, young Fuss-bucket Techeye, had just echoed off the walls.

We wanted to wash his grimeencrusted fingers, you see, and the very notion had set off a 10-minute, 120-decibel warble of unquenchable fury. Books were swept to the floor, tissues sent flying and daddy was told to “go to the twash can!”

But hygiene prevailed after a herculean struggle, and the boy’s lamentations eventually subsided.

Seven past seven. That’s when we saw something green sliding down

towards the edge of the lip. Time slowed.

“Noooooooooo!” we screamed, leaping across the room as a tongue flicked out and up to catch it, dragging it back in. With a split-second left, we reached in, scooped it out and flung it desperately in the direction of the balcony.

Unfortunately the window was not open.

Since then Techeye has tried to forget the horror. And failed.

Every gadget we look at reminds us somehow of nose jam. Take, for example, Hublot’s Key of Time, (www.hublot.com) which boasts that it can alter time itself. Beneath the microblasted titanium case lies a mechanism which lets you change how fast the hours and minutes pass. As Hublot says it, “With Key of Time, the wearer can make happy moments last four times longer or difficult moments four times shorter.”

If you believe that, you’re probably four times dumber than the average human. And yet we’re tempted to give in to the illusion, as it might have made “the incident” less horrific.

In any case, the “three-position crown time modulator” is obviously not a practical feature. But if you’re

planning to spend upwards of $200,000 on a watch, then practicality is likely not your first concern anyway.

Then there’s designer Marc Newson’s Ikepod Hourglasses (www.ikepod.com). These avantgarde timers take a centuries-old design and add a modern flourish, substituting nanoballs for sand. The hourglasses come in 60and 10-minute versions.

What’s a nanoball, you ask? It’s nano your business, that’s what. Suffice it to say that they’re little, round and made of borosilicate glass plated with nickel, copper or even gold. The latter look a bit like fancy granules of mucus.

Mr Newson nose knows luxury, and he charges accordingly. Expect to pay from $28,500 (the 60-minute, gold version) to $13,000 (for the 10minute, non-gold versions).

Last up this week is Ecomove’s QBEAK electric car (www.ecomotive.com). It’s tiny, orange and exceedingly Danish. Pictured is a working prototype with a purported range of up to 300 km. Ecomove

COURTESY OF HUBLOT

COURTEST OF ECOMOTIVE

It’s slippery business, this parenthood

claims the three-meter-long vehicle has space for three to six seats, but the latter seems like an awfully tight squeeze unless you and your five friends are garden gnomes.

According to the company, “QBEAK equals an attractive price.”

So there you go.

Availability remains as mysterious as pricing, at least for now, but our uneducated guess is that it’ll hit the roads about a year from now. We might even take our offspring for a test drive in it – provided he’s snot being naughty, of course. ●

Ever dropped six figures on a three-position crown time modulator? Let us know: techeye@wbj.pl

To advertise in WBJ’s classifieds section, contact Ms Agnieszka Brejwo, at (+48) 222-577-526 or abrejwo@wbj.pl