WBJ #15 2011

Is the gov’t planning to consolidate coal miners into a multi-billion z∏oty entity?

WBJ looks at the past and present with Poland’s first African-born MP

Techeye’s cup overfloweth with beer, coffee and carbonated water 23

14

WWW.WBJ.PL

5

VOLUME 17, NUMBER 15 • APRIL 18-25, 2011 . z∏.12.50 (VAT 8% included) . ISSN 1233 7889 INDEX-RUCH-332-127

Since 1994 . Poland’s only business weekly in English

REAL ESTATE Lokale Immobilia

COURTESY OF THE MINT OF POLAND

The n e chap xt ter

• PKP land sale • Residential trends • The Mint’s office complex 15-18

A guide to Polish business and industry

Pola n sma d’s elec ll tr initia but gro onic pu bl w tive coul ing, and ishing m d giv e it a a govern arket is men boos t t

Przewodnik po polskim biznesie i gospodarce

Training companies 20-21

12-1 3

In this issue News . . . . . . . . . . . . . . . . . . . . . . .2-4 Industry News . . . . . . . . . . . . . . .5-6 Listed Firms . . . . . . . . . . . . . . . . . . .7 Interview . . . . . . . . . . . . . . . . . . .8-9 Business Environment . . . . . . . . .10 Opinion . . . . . . . . . . . . . . . . . . . . . .11 Cover Story . . . . . . . . . . . . . . .12-13 Politics . . . . . . . . . . . . . . . . . . . . . .14 Lokale Immobilia . . . . . . . . . .15-18 Markets . . . . . . . . . . . . . . . . . . . . .19 The List . . . . . . . . . . . . . . . . . . .20-21 Arts & Culture . . . . . . . . . . . . . . . .22 Last Word . . . . . . . . . . . . . . . . . . . .23

Nothing to fear here Central bank head Marek Belka is playing down inflation and accounting fears 3, 10

SHUTTERSTOCK

Burning questions Is shale gas dirtier than coal? A new study raises big questions, but experts aren’t concerned 5

2

NEWS

www.wbj.pl

Wa∏´sa’s Tunisia mission Poland’s Ministry of Foreign Affairs (MSZ) has announced that Lech Wa∏´sa, the Solidarity leader and former president of Poland, will head a Polish delegation to Tunisia. The group will visit the country from April 28-30. The MSZ described the delegation as a “group of the fathers of democracy, with Lech Wa∏´sa at their head.”

APRIL 18-25, 2011

IN THE SPOTLIGHT

Numbers in the News

The Warsaw Stock Exchange

z∏.225 million is what the State Treasury will earn in dividends from gas monopolist PGNiG’s 2010 profit

z∏.123 billion is the total take from privatization activities since 1990, according to the Treasury

z∏.920 million is how much Poles spent on spa services last year

z∏.1.5 billion

Tusk to meet UK’s Cameron

Most trusted professions Poles put the most faith in firefighters and pharmacists, but since last year they have gained more confidence in judges and doctors, according to the “Reader’s Digest European Trusted Brands Survey 2011.” As many as 94% of Poles declared that they trust firefighters. Second in the ranking were pharmacists, followed by pilots. In keeping with tradition, politicians did the worst – only three percent expressed trust in elected officials.

Former PM has stroke As WBJ went to press, Jan Olszewski, prime minister of Poland between 19911992, was in the hospital after suffering a stroke.

His condition is serious, his wife, Marta Olszewska, told reporters. During the communist period, Mr Olszewski was a legendary lawyer who defended members of opposition groups in several trials. He was also an advisor to the Solidarity movement and to Lech Wa∏´sa himself. ●

COURTESY OF WSE

PM Tusk is scheduled to meet with his British counterpart David Cameron in London on April 19. Originally planned for March 21, the meeting was postponed due to recent events in Libya. NATO’s military presence there is expected to be one of the main talking points at the meeting, as is the future of the EU. Poland and the UK tend to have more differences than common interests within the EU, Onet.pl reported Mr Tusk as saying. But this could change, and signals from London are very promising, he added.

is the projected value of investment in Poland’s hotel industry this year, up 50% on 2010

Quote of the Week

The Warsaw Stock Exchange last week celebrated 20 years of its existence. The anniversary was marked by a special jubilee event held at the bourse, during which state honors were given to some of the architects of the Polish capital market’s success.

Grzegorz Domaƒski, coauthor of Poland’s capital market regulations, Wies∏aw Roz∏ucki and Ludwik Sobolewski, former and present presidents of the WSE respectively, and Jacek Socha, co-founder and long-time head of the Securities and Exchange Commission, were all decorated.

The deed of foundation of the Warsaw Stock Exchange was signed on April 12, 1991.

On April 16 of that year the first session took place, with

shares of five companies traded: Tonsil, Próchnik, Krosno, Kabel and Exbud. Only men’s clothier Próchnik remains on the bourse today.

“The establishment of the bourse was a historical event which closed the first phase of the economic reforms and secured Poland’s place in the realm of economic freedom and respect for entrepreneurship,” read a statement posted on the Warsaw Stock Exchange’s website.

It continued, “The event crowned the dreams and work of a whole generation of economists, who in the most difficult years of our history had the courage to build the foundations of a free Poland. … After 20 years, we are proud of the strength of the Polish capital

market and the role which it plays in the development of Polish entrepreneurship.”

The Warsaw Stock Exchange is a joint-stock company established by the State Treasury, which today has a 35 percent stake in the firm’s share capital of z∏.41,972,000.

The bourse organizes trading in financial instruments within four markets: the WSE (main market), NewConnect (alternative market), Catalyst (debt instruments) and Poee (energy market).

As of April 14, there were 405 companies listed on the Warsaw Stock Exchange – 376 domestic and 29 foreign. The total capitalization of the companies amounted to z∏.854.61 billion.

“Can someone explain to me why Croatia [should suffer because of] Gaddafi?”

Asked about the EU’s preoccupation with North Africa and its effect on EU enlargement, PM Tusk poses a rhetorical question to Britain’s The Guardian

Figures in focus Trade on the up Annual percentage change in the value of export and import (in €) with Poland’s top five trade partners, Jan-Feb 2011 compared to same period of 2010 20

Export 15 10 5 %

Germany

Adam Zdrodowski

UK

France

Italy

Czech Republic

40

On WBJ.pl Who is the busiest of them all?

WBJ.pl looks at a new OECD study detailing the hours of paid and unpaid work done every day by citizens of 29 countries. Mexicans work longer days than anyone else, while Belgians work the least. Log on to WBJ.pl to find out how Poles fare.

Import 30 20 10 % -10

Germany

Russia

China

Italy

France

Source: Central Statistical Office

DATELINE

April/May APRIL

10-13 TRANSPORT LOGISTICS EXHIBITION

18

WAGES

Event:

Central Statistical Office releases corporate wages and employment data for March

19

BUSINESS LUNCH

Event:

Business Lunch dedicated to the construction sector in Sweden. Location: Sofitel Warsaw Victoria. www.psig.com.pl

Event:

International Exhibition for Logistics, Mobility, IT and Supply Chain Management.

Location: Messe Munchen International. www.transportlogistic.de

10-13 AUTOSTRADA-POLSKA Event:

17th International Fair of Road Construction Industry. Location: Kielce Trade Fairs. www.targikielce.pl

19

INDUSTRIAL OUTPUT

10-13 TRAFFIC-EXPO – TIL

Event:

Central Statistical Office releases industrial output and producer prices data for March

Event:

HR CONGRESS

10-13 MASZBUD

MAY 8-11 Event:

The 40th IFTDO World Conference & Exhibition international HR Congress & Expo.

Location: Hotel Marriott, Warsaw. www.iftdo2011.com

Event:

7th International Fair of Infrastructure, Airport Technologies and Infrastructure Exhibition.

Location: Kielce Trade Fairs. www.targikielce.pl 13th International Construction Equipment and Special Vehicles Fair. Location: Kielce Trade Fairs. www.targikielce.pl

Company index Alpha Industrial ......................................18 Amazon ....................................................23 Areva ..........................................................6 Aston Martin ..............................................6 Avon Holdings Group ..............................16 Bank Gospodarki ˚ywnosciowej................6 Bank Millennium......................................18 Bank Pekao ................................................7 Bank Zachdoni WBK ................................10 BDO ..........................................................20 BEAVER Doradztwo Personalne ............21 Ben Holdings............................................16 Bentley ......................................................6 Bergson ....................................................18 Berlitz ......................................................18 BMW ..........................................................6 Bouygues Immobilier Polska ..................16 BRE Securities ..........................................5 Budimex ....................................................6 CB Richard Ellis ............................4, 12, 18 CBRE ..........................................................4 Centrum Edukacji ....................................20 Certus Centrum Szkolenia i Doradztwa ............................21 Coaching Center ......................................21 Communication One Consulting ............21 Controlling Partner..................................21 Cropp ........................................................18 CT Partners..............................................20 Denique ....................................................18 DM BZ WBK ............................................19 Dor Group ................................................16 Doradca Consultants ..............................20 Douglas ....................................................18 DPTG ..........................................................7 Echo Investment ......................................15 EDF ............................................................6 Elektrobudowa ..........................................6 Energomonta˝ Pó∏noc ..............................6 Erbud ..........................................................6 Ernst & Young Academy of Business ....20 Exbis Eksperci Biznesmenom - Szopa i Szóstak ............21 Exbud..........................................................2 Ferrari ........................................................6 Fiat............................................................11 FPL ..........................................................20 Future Centre Training Corporation Krawczyk i Lipczyƒski..............................21 GB Resources Polska..............................20 Gdaƒska Fundacja Kszta∏cenia Mened˝erów ........................20

GE Hitachi ..................................................6 Getin Noble Bank ......................................4 Globe Trade Centre ................................18 GN Store Nord ..........................................7 Goodman ..................................................18 Grupa Tempo ..........................................21 Grupa TP ..................................................16 Grupa training & consulting....................21 The Protocol School of Poland ..............21 Herbalife ....................................................4 House ......................................................18 House of Skills ........................................20 INFOR Training ........................................20 Infovide-Matrix ........................................20 Instytut Rozwoju Kadr ............................21 INTEGRA Consulting Marek Ma∏kowicz 20 ITS Education ..........................................21 Jacqueline Riu ........................................18 Jura ..........................................................23 Kabel ..........................................................2 Karmar ....................................................17 Katowicki Holding W´glowy ......................5 Kompania W´glowa ..................................5 KPMG........................................................10 Krosno ........................................................2 Lauren Peso Polska ................................21 Lavard ......................................................18 Màka Sojka Architekci ............................15 Mazars Poland ..........................................4 Mazowieckie Centrum Szkoleƒ ..............20 McArthur ..................................................18 MDDP Sp. z o. o. Akademia Biznesu ......20 Megalit Instytut Szkoleƒ ..........................21 Metro group ......................................11, 18 Metro Group Asset Management..................................18 Mierzejewski Kasprzycki Czaplicki ........17 Mi´dzynarodowa Szko∏a BankowoÊci i Finansów ..................................................20 MKC Architekci ........................................16 Moderator ................................................21 MPM Productivity Management ................21 Multikino ..................................................15 Neocity Group ..........................................17 Neocity Polska ........................................17 NetPress Digital ......................................13 Nordea Bank ......................................10, 18 Nowe Motywacje ......................................20 Oriflame Poland ........................................4 Orlen ....................................................7, 14 Pekao........................................................10 Personel Profit ........................................20

PGE ............................................................6 PGE EO ....................................................12 PGNiG ............................................7, 12, 14 Philips Lighting ........................................18 PKP ..........................................................18 Polimex-Mostostal ....................................6 Polkomtel ..................................................5 Próchnik ....................................................2 PROFES Centrum Kszta∏cenia i Doradztwa ..........................20 ProFirma ..................................................21 Reas..........................................................17 RED Real Estate Development ..............16 Reserved ..................................................18 Rossmann ................................................18 Ruch ........................................................18 S+B Gruppe ..............................................18 San Leon Energy......................................18 SodaStream ............................................23 Stowarzyszenie ds. Badania Pracy i Organizacji Przedsi´biorstwa REFA Wielkopolska............................................21 Swiss ........................................................18 Sympozjum Joanna Rostek&Patrick Trompiz ..........21 SYNTEZA ..................................................21 Tarnów ..................................................ZA 7 Tel Aviv Stock Exchange..........................17 Tesco ........................................................15 The Mint of Poland ..................................15 TJX Europe ..............................................18 TK Maxx ....................................................18 Tonsil ..........................................................2 TP................................................................7 Training Partners ....................................21 Transsystem ..............................................6 UniCredit Group ........................................7 Unidevelopment ......................................15 Union Investment ....................................18 United Business Development................20 Vademecum ............................................20 Virtualo ....................................................12 Vobis ........................................................18 Volkswagen ................................................6 Weltbild ....................................................13 Westinghouse ............................................6 WilliamsWarn ..........................................23 Wirtualna Polska ....................................12 Worldwide School ....................................20 W´glokoks..................................................5 X-Trade Brokers Dom Maklerski............19

NEWS

APRIL 18-25, 2011

www.wbj.pl

3

Macroeconomics

Green fuel tax

Belka looks to calm fears

The European Commission is trying to push through a new tax on CO2 emissions from motor and heating fuels.

Brussels has just finished composing a new document to this end.

The changes would completely reshape the environmental taxation scheme on emissions in Europe. Instead of being calculated on a “volume” basis, as is currently the case, there would be put in place a tax calculated on the basis of two criteria: the energy content of the fuel and its emissivity.

Street Journal. And on TVN CNBC he added, “Decisions about interest rates are not made on the basis of statistical

COURTESY OF THE IMF

The president of the National Bank of Poland made the rounds last week, playing down concerns over inflation and “omissions and errors”

Mr Belka isn’t overly worried about higher-than-expected inflation numbers NBP president Marek Belka looked to calm market jitters last week after inflation came in at a much higher-thanexpected 4.3 percent (see story p. 10), well above the central bank’s tolerance range of 1.53.5 percent.

Just a week earlier, the NBP’s rate-setting body, the Monetary Policy Council (RPP) had hiked interest rates by 25 basis points for the sec-

ond time this year due to growing inflation fears. Now some economists are calling on the council to add another 50 basis points at its May meeting.

Mr Belka, however, played down such expectations. “I want to avoid the ... impression that monetary policy should be conducted in response to the latest figures.

This would be a misunderstanding,” he told the Wall

data from the previous month.”

Nevertheless, several other members of the council have made clear statements in recent days that the RPP should raise rates again at its next meeting.

And Mr Belka didn’t rule out that possibility, either. “I don’t want to commit, prejudge. This is after all a collective decision,” he said in the

WSJ interview.

“But it would be naïve to think – even if we consider the current spike in inflation as transitory – that we’ll just let it pass and wait until it disappears,” he conceded.

However, he noted that core inflation remained low, and that the drivers behind the spike in inflation were food and fuel prices. Part of the jump in inflation was the result of a change in the basket of goods used by the government to calculate inflation.

Overall, Mr Belka said that Poland was on track for steady, sustainable growth.

“We’re in a tightening cycle and the reason is the economy is growing, there’s no expectation that the global economy and the Polish economy as a consequence could slow down dramatically.

This said, according to most projections, growth isn’t going to get out of hand, there’s no sign of internal overheating,” he added.

‘Complete folly’ Over recent weeks concern also arose over an unusually large entry in the bank’s “omissions and errors” section of its balance sheet. The

anomaly came in at some €15 billion, about four percent of GDP, and some economists had posited that it was large enough that last year’s GDP growth figures – and its public debt – would have to be recalculated. That would risk Poland’s debt-to-GDP ratio crossing the legally set 55 percent threshold, beyond which the government would be forced to implement tough spending cuts.

Mr Belka, however, dismissed these ideas as “complete folly.” He said that the national accounts have “probably underestimated imports,” but not by a significant amount.

Nevertheless, he said that didn’t mean there was any change in the size of Poland’s GDP, just in its composition.

“We may have more consumption and less exports” than reflected in the data, he said.

And instead of demonstrating that Polish statistics are untrustworthy, Mr Belka said the discovery was actually a sign of Polish statisticians’ punctiliousness. “It’s an expression of an attempt to estimate everything precisely, even too precisely,” he said.

Andrew Kureth

IMF predicts 2012 slowdown In its latest “World Economic Outlook” report, the International Monetary Fund (IMF) says it expects Polish economic growth to ease somewhat next year. The organization predicts that the country’s GDP will expand by 3.6% in 2012, compared to 3.8% for this year. The IMF says Poland could be negatively affected by a slowdown expected in Germany. ●

Polish-US relations

Wikileaks: Poland doubted US sincerity in bilateral ties Diplomatic dispatches from the American Embassy in Warsaw highlight Polish concerns

COURTESY OF WHITEHOUSE.GOV

A little over a month before US President Barack Obama’s first visit to Poland, new Wikileaks cables confirm that a few months into Mr Obama’s presidency, top Polish politicians were worried about the status of Polish-US relations.

“There is a growing fear among Polish government elites that Poland has become an afterthought, or even a nuisance, in Washington circles,” then-Ambassador Victor Ashe wrote in a cable dated March 2009.

Previously leaked cables from the American Embassy in Warsaw revealed Polish anger at having received nonoperational Patriot missiles from the US and fear over an American-Russian rapprochement at Poland’s expense.

The latest dispatches portray Polish leaders as having gotten over initial doubts about US openings to Russia under the leadership of President Obama, although, the

Warsaw Business Journal Group, in cooperation with KPMG and the Polish Chamber of Commerce, presents Made in Poland – a guide for importers of Polish products.

Presidents Komorowski and Obama met last December ambassador noted, “Concerns over the US-Russian dialogue are by no means dead.”

Moreover, the Polish government was “beginning to doubt [American] sincerity” due to a lack of access to US leaders.

Polish Foreign Affairs officials are reported as saying that Polish PM Donald Tusk would lose credibility if he did not meet Mr Obama in Washington by April 2009. A meeting between the two in Washington never took place, but

Mr Tusk, then-President Lech Kaczyƒski and Mr Obama did meet in Prague during that month on the margins of an US-EU Summit.

The first cables from the American Embassy in Warsaw were released by Wikileaks shortly before Polish President Bronis∏aw Komorowski’s visit to Washington in December, but did not seem to negatively affect the visit.

Mr Obama is scheduled to visit Poland on May 27.

Alice Trudelle

Sectors analyzed: • Automotive products • Clothes • Cosmetics • Defense • Food & Agriculture • Furniture • Pharmaceutical market • Yachts

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

4

NEWS

www.wbj.pl

APRIL 18-25, 2011

Ukraine

Belarus

Tusk steps into East-West divide Minsk blast Polish PM Donald Tusk and his Russian counterpart, Vladimir Putin, were in Kiev a day apart last week for separate highlevel talks with the Ukrainian government. The visits illustrate an uncomfortable choice facing Ukraine between East and West.

The two prime ministers flew in just as Ukraine is negotiating potentially conflicting trade agreements with the European Union, on the one hand, and with the Moscow-

led Single Economic Space (SES), on the other hand. The latter is being formed from the Customs Union of Russia, Belarus and Kazakhstan.

In Kiev, Mr Tusk stressed that the development of relations between Ukraine and the EU was a priority for Poland’s EU presidency, and that Ukraine-EU talks on an Association Agreement (AA) and Deep and Comprehensive Free Trade Area (DCFTA) were at a turning point.

The AA, which entails deep and comprehensive integration of Ukraine to European norms and standards, could be signed by the end of this year under

the Polish presidency, said S∏awomir Matuszak, a specialist on Ukraine at Warsaw’s Center for Eastern Studies.

However, EU trade officials have warned that becoming a member of the SES would stop Ukraine’s trade deal with the EU in its tracks.

According to Mr Matuszak, the Kremlin’s surprise at the speed of progress in EUUkraine negotiations was the only reason behind Mr Putin’s sudden visit to Kiev last week.

In a meeting with the Ukrainian president and prime minister, Mr Putin reportedly offered lower gas prices and suggested Ukraine’s annual

expected to fuel repression

revenues could rise by $9 billion if it joined the SES. Officially, Ukrainian President Viktor Yanukovych has said that Ukraine would not join the SES and that his goal remained firmly to sign the AA and the DCFTA. “But at the same time, if Russia comes up with a very advantageous offer, we cannot rule out Ukraine finding a pretext to obstruct negotiations with the EU,” said Mr Matuszak.

“Nobody should come to Kiev and give advice,” said Mr Tusk during his visit. “Ukrainians are a proud people and they choose their own future.”

COURTESY OF WIKIMEDIA COMMONS

Ukraine needs to choose between a trade deal with the EU or one with Moscow

Alice Trudelle

COURTESY OF KPRM

Two suspects have been arrested, but the motive is still unclear

Miles apart? Polish PM Tusk (left) and Ukrainian counterpart Mykola Azarov talked trade in Kiev

who’s news?

Fabrice Bansay has been appointed president of Apsys Polska’s management board. He has replaced Olivier Gerard-Coester, president of the parent company’s management board, who has to date been responsible for both the French and the Polish markets. Mr Bansay has been with Apsys since 2000 when he started work in Poland, handling the commecialization of projects such as Manufaktura in ¸ódê. In later years, Mr Bansay continued his career with the group in other roles, including commercial director of Apsys France and president of Apsys Russia’s management board.

and CISA with over 16 years of business, technical and operational experience gained with big four and major consulting companies in Poland and in North America. He specializes in the advisory and delivery of risk management, audit and control assessment, forensic, information security, and business continuity services. Mr Rezler holds a master’s degree in electronics engineering from the Warsaw University of Technology and a master’s in public accountancy from McGill University in Montreal (Canada).

Sean Doyle has recently been promoted to the position of associate director in the capital markets department of CB Richard Ellis Poland.

He joined CBRE in 2010 and has eight years of commercial real estate experience in the US, UK and Central Europe. Mr Doyle deals with sales and acquisitions of retail, logistics and office properties. He is a qualified member of the Royal Institution of Chartered Surveyors and speaks a number of foreign languages.

Wojciech Sury has been appointed director of Getin Noble Bank’s PR office, where he will be responsible for shaping the firm’s PR strategy. Mr Sury will continue to serve as press representative for Getin Bank and Getin Leasing, but is now also responsible for communications and PR for the Sky Tower luxury high-rise investment in Wroc∏aw.

Christian Manhusen has take over the sales director post at Oriflame Poland. He is responsible for realizing the firm’s sales development strategy for Poland. Mr Manhusen previously held the general director post at Oriflame’s Egypt branch; prior to that he held the same post in Chile.

Konrad Szałkiewicz has been made director for Poland, the Czech Republic and Slovakia at Herbalife. He has taken up the post in the firm’s Warsaw office. Mr Sza∏kiewicz began his professional career with Mars/Masterfoods Polska as a sales representative, later holding various management functions in the sales and training departments. He then joined Avon Cosmetics, moving later to Oriflame as sales director for Poland. Mr Sza∏kiewicz is a graduate of the University of Humanities and Economics in ¸ódê. ●

Krzysztof Rezler has joined Mazars Poland as director in the advisory department. He is responsible for further developing the company’s services in the CEE region. Mr Rezler is a CPA, CA

If your company has recently appointed any new senior managers, we’d like to know about it.

Please send submissions to: appointments@wbj.pl

As of Friday, Belarusian authorities had arrested five people in connection with a deadly blast at a Minsk subway station in mid-April, including the alledged perpetrator.

But both the authorities and independent experts were still uncertain about the perpetrators’ motives for the bombing, which killed 12 people and wounded around 200. Speculating about responsibility for the attack, various media outlets had suggested Islamic groups, opposition groups or the Russian authorities.

Kamil K∏ysiƒski, an expert on Belarus at Warsaw’s Center for Eastern Studies, roundly rejected the three possibilities.

It seems likely, however, that the Belarusian authorities will now take a more oppressive stance against both the political opposition and Polish minority activists.

Belarusian President Alexander Lukashenko has

hinted as much himself, ordering security services to interrogate “political actors regardless of democracy, and the cries and wailing of pathetic Westerners.”

Without going as far as saying that the attack could have been staged by Belarusian authorities themselves, Mr K∏ysiƒski said he believed that Mr Lukashenko would use the tragedy to tighten his control over the state and to mobilize society and the political elite around him.

And, as the Belarusian economy continues to struggle with severe shortages of goods and foreign currency, taking a tighter grip on power may be something of a conditioned response from the leader.

“Belarusian society and especially Mr Lukashenko, who is mostly preoccupied with politics, have been surprised by the deteriorating economic situation. They don’t have a comprehensive idea to solve the problem,” concluded Mr K∏ysiƒski.

Alice Trudelle

Poland soon to welcome Libyan war refugees?

Polish Interior Minister Jerzy Miller has said that Poland would be ready to accept “a few dozen” of the over 800 Libyan refugees that arrived in Malta over the past week.

His rationale is that they are not able to return to their homelands out of fear of being persecuted.

Tunisians, and other North Africans who continue to arrive in large numbers in Italy, however, will not benefit from Poland’s help, as the country considers them to be primarily economic migrants.

Mr Miller made these comments following a meeting of European Union interior ministers in Luxembourg last week. Several other countries pledged support to Malta,

including Germany, Belgium, Hungary, Sweden, Portugal, Spain and Norway.

Many countries also denounced Italy’s decision to grant visas to around 23,000 refugees who have flooded the small island of Lampedusa since the start of Tunisia’s “Jasmine Revolution” in January.

The visas are intended to cover the Schengen Area, which includes Poland and most of Western Europe. Germany, Austria and France, in particular, have said that they would increase control at their borders in order to prevent those immigrants who are not economically self-sufficient from crossing.

Alice Trudelle

INDUSTRY NEWS

APRIL 18-25, 2011

www.wbj.pl

Coal

Energy

Consolidation in the cards?

Study: shale gas dirtier than coal

Poland’s coal industry is in desperate need of it, say analysts

SHUTTERSTOCK

The government plans to consolidate much of the Polish coal sector before floating a new entity on the stock exchange, according to a report in daily Rzeczpospolita, which cited an unnamed source close to the deal.

The report says that the consolidation plan could see Poland’s largest coal exporter, W´glokoks, merged with coal miner Katowicki Holding W´glowy. The new entity would then be fused with Kompania W´glowa, Europe’s biggest producer of coal.

The resulting entity would be worth around z∏.10 billion and might even be in a position to debut on the Warsaw Stock Exchange by the end of 2012, the source said.

The Treasury Ministry and a spokesperson at W´glokoks both declined to comment.

Analysts say the consolidation of Poland’s coal sector would make a lot of sense, as the country’s state-owned coal mines have little cash for investments and struggle to turn in profits without financial aid from the government.

How environmentally friendly is shale gas?

Analysts agree the Polish coal sector needs to be restructured “W´glokoks has a lot of cash, and will have even more after it sells its stake in [telecoms operator] Polkomtel,” said Micha∏ Marczak, an analyst at brokerage BRE Securities.

“But it has no strategy, so it doesn’t need this amount of cash, whereas coal miners have to invest a lot of money but have limited funds,” he added, saying the reported consolidation plan was therefore a good idea.

Kompania W´glowa in particular has little spare cash to invest in its mines. The firm has to spend a significant amount of money servicing debts it took on when it was formed from 23 different mines in 2003.

Banks, meanwhile, are loath to lend to coal miners, while the government is in no position to provide a constant stream of funding.

“The coal sector needs to be restructured,” emphasized Mr Marczak. “Unprofitable mines

and mining companies should be cut,” he said, adding that after the restructuring process is over the mining assets should be privatized.

Although it plans to retain a controlling stake, the Treasury announced last week that it intends to sell about 30 percent of shares in coal group Jastrz´bska Spó∏ka W´glowa (JSW) to retail investors. JSW’s debut on the WSE is planned for June 30, 2011.

Gareth Price

Over a 20-year period, the greenhouse-gas footprint of shale gas is between 20 percent to 100 percent higher than that of coal, according to a new study from Cornell University. Over a 100-year period, levels are comparable.

The study found that shale gas production emits more methane than previously thought. Methane is a much more potent greenhouse gas than carbon dioxide (CO2), especially in the short term.

Concerns had already been raised about potential contamination of ground water through hydraulic fracturing, which involves pumping a high-pressure mix of water, sand, and chemicals to break the shale rock and release gas.

But the new findings might undermine one of the arguments for developing shale gas, namely that the power generated using gas produces just half the carbon emissions compared to burning coal.

It has been estimated that Poland could be sitting on top of some of Europe’s largest shale gas reserves. Could these

5

findings affect the development of the nascent industry?

Experts think not.

First, the development of Poland’s shale-gas industry will not simply replicate that of the US market, said Ernest Wyciszkiewicz, an economic relations and energy security expert at the Polish Institute of International Affairs (PISM).

“The circumstances are completely different, starting with the regulatory framework, population density, and membership in the European Union, which has an influence on decisions regarding the industry, especially through environmental regulation,” he said.

Secondly, in Poland’s case, the prospect of independence from Russian gas will probably trump environmental concerns, said Robert Zajdler, an energy expert at the Sobieski Institute think-tank.

Moreover, methane can be captured and used as a renewable source of energy to produce heat, for example.

Poland already has regulations and a program of subsidies to capture and use methane from coal mines, said Mr Zajdler.

Alice Trudelle

SUBSCRIBE FOR 1 YEAR AND SAVE UP TO 50% OFF THE COVER PRICE Choose one option by checking the box

❏ WBJ IS NOW AVAILABLE IN DIGITAL FORMAT. READ WBJ AS A PDF OR E-ZINE.

OPTION 1

WBJ Electronic

Warsaw Business Journal PDF version and a link to view WBJ in e-zine Wa format delivered to your e-mail address each week for 12 months. for Everywhere: zł.385

❏

OPTION 2

WBJ Print

ENQUIRIES AMI C H A L I K @ VA L K EA . C O M, O R C A L L + 4 8 ( 2 2 ) 6 78-9912

In Europe: €270

OPTION 3

Outside Europe: €340

WBJ Premium

Warsaw Business Journal print edition delivered each week to your address for 12 months, plus WBJ PDF version and a link to view WBJ in e-zine format delivered to your e-mail address each week.

Also receive Investing in Poland 2011 (zł.78 value) and Book of Lists 2011 (zł.100 value).

In Poland: zł.628

Warsaw Business Journal print edition delivered each week to your address for 12 months, plus receive Investing in Poland 2011 (zł.78 value) and Book of Lists 2011 (zł.100 value).

In Poland: zł.500

❏

In Europe: €300

Outside Europe: €370

Please fax this form to: +48 22 639 85 69 or mail it to our office: Subscriptions Warsaw Business Journal Valkea Media S.A. ul. Elblàska 15/17, 01-747 Warsaw, Poland

CLIENT DETAILS

PAYMENT OPTIONS (please check one)

Name ......................................................................................................................

Company ......................................................................................................................

Address ......................................................................................................................

Postal code ......................................................................................................................

City ......................................................................................................................

Country ......................................................................................................................

Telephone/Fax ...................................................................................................................... e-mail ......................................................................................................................

NIP (Poland)/EU VAT number (EU countries) ......................................................................................................................

❏ Pre-payment by bank transfer upon receipt of a pro-forma invoice. The pro-forma invoice will be sent to you immediately upon receipt of your order.

Your subscription will start within one week of payment. ❏ Credit card: ❏ American Express

❏ Visa

❏ Mastercard

Cardholder name ......................................................................................................................

Number ......................................................................................................................

CVV2/CVC2/CID

Expiration date

....................................................... ............................................................

Signature ......................................................................................................................

INDUSTRY NEWS

www.wbj.pl

Polish handling systems company Transsystem has signed a contract to modernize production lines and to construct new ones at Volkswagen’s production plant in Wolfsburg, Rzeczpospolita reported.

The Polish company will expand the final assembly line used to manufacture the Golf.

BG˚ reveals debut plans Bank Gospodarki ˚ywnosciowej (BG˚) last week revealed details of its IPO plans. The lender’s debut will enable the Treasury to offload its 37% holding in the bank, valued at around z∏.1 billion.

Poland will sell up to 16 million shares and transfer the rest to employees of the firm.

Prescription drug boom?

According to IMS Health, changes to Poland’s prescription drug refund structure could lead to waves of drug orders from abroad. “Parallel exports could jump twofold, maybe threefold,” Marcin Gawroƒski, an expert at IMS Health, told Puls Biznesu. Parallel exports involve foreign firms ordering high-end drugs to resell in other foreign markets. That trade is currently valued at some z∏.800 million per year, but could go as high as z∏.2.4 billion per year. ●

Luxury cars

Rolls-Royce is revving up for Poland The luxury car-maker has noticed the wealth accumulating in the CEE region’s biggest economy A growing number of high-end car brands are arriving in the market, hoping to build a presence as the ranks of Poland’s wealthy grow. Ferrari, Aston Martin and Bentley are already present, and the latest comer is legendary car-maker Rolls-Royce.

The luxury brand, since 2003 a unit of BMW, opened its first service center in Poland last December, and now it’s seeking to cultivate its first sales.

“We are very interested in the Polish market, as we see

the economy growing as well as the number of wealthy people. We are currently examining the long-term possibilities here and also keeping an eye out for the best possible dealer,” said Frank Tiemann, corporate communications manager for Rolls Royce in Europe.

In response to requests from potential Polish clients, Rolls-Royce organized testdrive sessions with its Phantom and Ghost models last weekend. But the firm doesn’t expect to achieve success overnight.

“In our market segment, the key success factor depends on whether our dealer has access to a network of wealthy people. It usually takes up to two years to build such a net-

Expect to see one of these on Warsaw’s streets soon work,” said Mr Tiemann.

Asked how many cars Rolls-Royce eventually hopes

to sell in Poland, Mr Tiemann said it would be “in the tens.”

Last year, the company

sold just over 2,700 cars worldwide.

Remi Adekoya

Nuclear energy

Firms prepare to compete for Polish nuclear contract A tender for a technology supplier will be announced in July This July, Polish utility PGE will announce a tender for a technology supplier to support the construction of Poland’s first nuclear power plant, according to daily Dziennik Gazeta Prawna. The value of the tender has been estimated at z∏.40 billion.

The Polish government has given PGE responsibility for building the nuclear plant.

Major international companies interested in participating include AmericanJapanese concern GE Hitachi, US company Westinghouse

and a French partnership comprising Areva and EDF. US company Westinghouse has said that it would seek Polish partners in construction and engineering. If the firm wins the tender, some 60-70 percent of supplies will be ordered from within Poland, Anders Jackson, deputy CEO of Westinghouse, was quoted by the daily as saying.

According to the daily, Westinghouse is already in talks with Polish company Energomonta˝ Pó∏noc, while others such as Polimex-Mostostal, Budimex, Elektrobudowa and Erbud have expressed interest in cooperating with Westinghouse on the project.

The American company said it is also considering building a factory at an undisclosed location in Poland that would produce components needed for the construction of a nuclear plant. This investment could also potentially support projects in other nearby countries, as Westinghouse is also mulling the idea of helping to build a nuclear plant in nearby Lithuania.

On a political level, choosing the American company could revitalize privatesector links between Poland and the US, which have lagged in recent years. But on the other hand, choosing a French partner could also serve Poland’s bid of becom-

ing an increasingly important political player at the Euro-

SHUTTERSTOCK

VW production lines

APRIL 18-25, 2011

COURTESY OF ROLLS-ROYCE

6

Generating a lot of interest

pean level.

Alice Trudelle

LISTED FIRMS

ary 2010. On May 1, Luigi Lovaglio, current vice president and general director of Pekao, will take her place.

Information obtained by Parkiet indicates that Ms Kornasiewicz will continue to work for subsidiaries of Bank Pekao’s majority shareholder, Italy’s UniCredit Group. She

will reportedly join the boards of banks in Hungary and Ukraine which are controlled

by UniCredit.

On its website, Pekao announced that Ms Kornasiewicz would also be standing for a position on Bank Pekao’s supervisory board.

GP

Orlen wants Egyptian oil Investors have until May 6 to file binding offers for the purchase of shares in Polish telecoms operator Polkomtel. One player who’s eagerly waiting the conclusion of the transaction is Polish refining giant Orlen.

The company could earn as much as z∏.4 billion from the

sale of its shares in Polkomtel, newspaper Puls Biznesu wrote.

The refiner is reportedly looking to pour a sizable portion of that money into African oilfields.

“We’re planning a cycle of talks through the end of the month in Egypt,” Wies∏aw Pru-

gar, president of Orlen Upstream, told the newspaper.

He added, “We will then make a decision on partners and methods of extraction.

We’re primarily interested in the purchase of an entity that already owns known oil GP deposits.”

PGNiG to pay mammoth dividend to state Treasury Poland’s gas monopolist PGNiG will pay a dividend of z∏.255 million on its 2010 profits to the state Treasury. The decision marks a break from the past, as the state-owned firm usually pays out its dividends in kind.

The payout was also origi-

nally scheduled for October 6, but will now be realized on August 10.

The company, meanwhile, was due to sell its 10 percent stake in chemical maker Tarnów ZA last Friday, according to Reuters, which cited two “independent market sources.”

7

TP-GN dispute

Bank Pekao CEO resigns In a surprise move, Alicja Kornasiewicz, president of Poland’s second-largest lender, Bank Pekao, tendered her resignation last week. The bank announced the information on its website, but provided no reason for the resignation.

Ms Kornasiewicz had been head of the bank since Febru-

www.wbj.pl

“PGNiG will sell four million shares in Tarnów in accelerated book-building,” one source said.

PGNiG declined to comment on the report on the sale, which is estimated to be worth around z∏.150 million.

GP

GN Store Nord: TP’s legal challenges ‘dismissed’ Not so, the Polish telecoms operator fires back Two arbitration challenges by Poland’s incumbent telecoms operator, TP, have been dismissed and the Polish company should therefore pay the money it owes, Danish hearing-aid and headset maker, GN Store Nord, wrote in a statement last week.

France Telecom-controlled TP replied in its own statement, however, that the decision does not mean the longrunning legal dispute between the two companies is over.

After an Austrian court’s August 2010 decision to award the Danish firm DKK2.9 billion (z∏.1.5 billion) from a claim against TP, the Polish operator filed two challenges to have the decision revoked. TP believes that some of the Austrian arbitrators were biased. It even apparently requested that one of the arbitrators should be omitted. “[The rejection of] a motion for excluding an arbitrator has no effect on the Vienna proceedings for annulment of the decision of the

COURTESY OF TP

APRIL 18-25, 2011

TP could be forced to pay z∏.1.5 billion in compensation arbitration court of August 24, 2010,” TP wrote.

“Neither does it mean the end of the legal dispute between both companies,” the firm added.

But according to GN, the president of the Austrian Federal Economic Chamber has now decided to dismiss TP’s appeals.

“This decision indicates, once again, that it is time for [Telekomunkacja Polska] to honor the final and legally binding award,” Anders Boyer, CFO of GN, said in the statement.

The Polish telecom, howev-

er, countered that the Austrian court’s latest decision concerned only one of three motions it had submitted.

“The other two refer to the second stage of the dispute (2004–2009), in which the arbitration proceedings have not commenced yet, and the motions have not yet been investigated,” TP said.

The long-running TP-GN saga concerns a dispute over how traffic volumes along TP’s fiber optic cable network should be calculated. The infrastructure was built by DPTG, a unit of GN. Gareth Price

8

INTERVIEW

www.wbj.pl

APRIL 18-25, 2011

Polish-Ukrainian relations

The challenge of shared history Markijan Malskyj, Ukraine’s ambassador to Poland, talks to WBJ about mutual trade, his country’s EU ambitions and efforts to deal with historical issues Ewa Boniecka: How have political relations between Ukraine and Poland evolved recently?

Markijan Malskyj: PolishUkrainian political relations are strategic in character and are developing very intensively. There was recently a very successful exchange of visits at the presidential level and our two sides are in regular contact to push forward Polish-Ukrainian bilateral relations in all aspects – policy, economy, education and social areas. Progress is being achieved step by step and is based on good political relations on both sides.

How does the economic balance between Poland and Ukraine look?

Our economic relations are developing quickly. Poland is our biggest trade partner among the countries of Central and Eastern Europe and holds fourth place overall among Ukraine’s trade partners. Mutual trade rose by

35.2 percent last year and reached the value of more than $4.576 billion.

There is also growth in mutual investments. At the beginning of this year, Polish investment capital in Ukraine was valued at $935.8 million, which means that it had risen by 8.3 percent over the 2009 figure. The biggest Polish investments in Ukraine are Cersanit’s building materials factory, Berlinek’s flooring factory and Nowy Styl’s furniture factory.

Ukrainian investment in Poland stands at around $50 million. In 2010 two Ukrainian ventures entered the Warsaw Stock Exchange and now six Ukrainian holdings are listed [ed. – five on the main floor and one on NewConnect]. It shows that our businesses are developing and involvement in the Warsaw Stock Exchange is the chance for our entrepreneurs to learn the rules of the economic game.

Yet in my opinion the

present balance of trade turnover and the levels of mutual investment are far below our countries’ potentials. I am aware that entrepreneurs expanding in the Ukrainian market are sensitive to such risks as overgrown bureaucracy and other barriers, but our old economic and administrative structures are changing, so new opportunities are appearing.

We are in a transition period and many reforms are still

ship project – to help us achieve this goal. I think that preparations for the Eastern Partnership summit, which will be held in Warsaw in October, already show how important the project is for the EU’s whole eastern policy. The fact that the summit will be held during the Polish presidency of the European Council is mobilizing us to enter into close cooperation with our Polish partners in setting the main directions

“Our strategic aim is to join the European Union” ahead of us, but we are determined to enact them and to facilitate conditions for commerce.

How would you describe Ukraine’s foreign policy priorities?

Our strategic aim is to join the European Union. So we want to use all our options, one of which is an important tool of EU policy – the Polish-Swedish Eastern Partner-

for the further realization of the Eastern Partnership and to follow these with concrete steps. We are counting on Poland’s support during its presidency, for Ukraine’s aspirations to move forward with our association agreement with the EU. We hope that the road map for participants in the Eastern Partnership, approved at the summit meeting in Brussels in

November last year and relating to reforms [necessary] in those countries, will speed up the process in Ukraine. We know that we have to do a lot of “homework” to pass the first step towards membership in the EU – achieving the association agreement with the European Union.

We also hope that an agreement on liberalizing the visa regime between Ukraine and the EU will be approved at the Warsaw summit. We are very grateful to the Polish government that it has already reduced visa fees for Ukrainians coming to Poland from €35 to €20.

How would you rate the realization of the Eastern Partnership program since its beginning two years ago?

The very acceptance of the Eastern Partnership as a tool for shaping the EU’s relations with countries located to its east is in itself a great success. The program, which supports democratic political reforms and the development of the free market in six participating countries, also opens the road to those who would be ready and willing to

enter the European Union.

In Ukraine it has strengthened our determination to join the EU and the majority of our people support that goal.

Yet for the Eastern Partnership to achieve all its tasks it needs greater financial support from the EU, because the present level of funding – in practice it is about €600 million – is not enough. And as an important element of the EU’s overall eastern policy it is worth supporting financially, because it spreads stability and democracy in the European continent.

What about Ukraine’s relations with Russia?

Ukrainian-Russian relations are friendly and peaceful, with the stress on economic cooperation. Russia is our most important strategic economic partner.

We are surrounded by neighbors, not enemies, and we want to keep it that way.

We do not want to build frontier barriers. We need stability in Ukraine in order to undertake reforms, to create a middle class, to eliminate poverty in some areas and to

INTERVIEW

COURTESY OF THE UKRAINIAN EMBASSY

APRIL 18-25, 2011

Poland and Ukraine are putting historical differences behind them, according to Ambassador Malskyj upgrade the standard of living for our whole society.

How about your attitude towards NATO – where does Ukraine stand these days?

Ukraine is not going to join NATO. Such is the will of our citizens. Yet we work together with NATO and some of our soldiers are taking part in the alliance’s peaceful operations. Ukraine wants to be an important element of security in Europe without joining military pacts.

However, we are ready to continue the mutually beneficial cooperation with NATO in all areas, including work on new projects. We are counting on the support of NATO members, especially the traditionally active Poland.

One tool for practical cooperation and the implementation of internal reforms is the Ukraine-NATO Annual National Program, which we will use effectively again this year. And we look forward to continuing cooperation with Poland within NATO’s Partnership for Peace as well as in non-military areas of cooperation between Ukraine and NATO. Ukraine has quite a few minorities. There are, among others, Russians, mainly in the east and in the Crimea, with Poles in the western area. How do you view efforts to protect their rights?

We conform to European standards on this – the rights of minorities are fully respected by our laws and in relations between them and the government. We have freedom for all religions and there’s schooling with lessons in minorities’ native languages. There are various

cultural institutions cultivating and developing the art, culture and native traditions of Ukrainian citizens who are members of minority groups.

The Polish minority has at its disposal many junior and secondary schools with Polish language instruction. The Catholic Church is powerful, with active Catholic priests and bishops. During his visit to Poland in February, President Viktor Yanukovych declared Ukraine’s support for a Methodological Coordination Center for Polish Language and Culture in the Drohobych region. And one of our priorities in mutual relations is securing for the Polish minority in Ukraine and the Ukrainian minority in Poland, the proper conditions for them to study their native languages, preserve their culture and exercise their rights in all domains of public life.

How important is dealing with our difficult shared history to our present relations?

It is my deepest conviction that our two nations have crossed the bridge leading to reconciliation and forgiveness in dealing with our mutual history, so now we can concentrate on building good relations in the present and future. Nonetheless it is crucially important to remember and commemorate the victims of all Ukrainian-Polish conflicts, while leaving the evaluation of certain difficult problems to our historians.

The primary task is to expose the whole truth about past events, however painful it is, because we cannot build our relations on lies. So we remember our history and maintain locations where

tragic events took place.

During the meeting between President Bronis∏aw Komorowski and President Viktor Yanukovych in February, Ukraine’s head of state promised to make all efforts to examine the mass graves of victims of Stalinist terror in Bykivnia near Kyiv. Thousands of Ukrainians and Poles are buried there, the victims of totalitarianism in the 1937-1941 period.

After specialists from both countries exhume the victims, a process which will begin in mid-April in Bykivnia, we will build a memorial with both Polish and Ukrainian elements there. The name Bykivnia will become a symbol of tragedy and of the legacy of Stalinist crimes for both Poles and Ukrainians.

There is also a willingness to open the cemetery in Sahryƒ, a village in the Lublin area of Poland, where in 1944 the Polish Home Army killed Ukrainians in response to the murder of Poles by the Ukrainian Insurgent Army. The role of that military formation, which was fighting the Germans, Soviets and also Poles in the name of an independent Ukraine, is the subject of entirely different views in our countries and one of the difficult historical problems in our relations.

Ukraine’s history is certainly complicated, but even now victims of Stalinist terror are commemorated in your country while events from the Soviet era are celebrated. Why is that?

I think that all past events are part of our national history and people have the right to remember them differently.

Today in Ukraine a slow change in our attitudes and assessments of the past is taking place. We are learning truths about historical events which were hidden during the Soviet years. But history is sometimes the subject of political battles between various parties in Ukraine as well as in Poland.

And this can be reflected in people’s perceptions of Polish-Ukrainian history.

So it is still necessary to defeat some stereotypes present in both countries.

The crucial thing is to expose the whole truth about historical events, open new sources of information about the past, present various points of view on history and accept that [ugly moments] exist.

I believe that our welleducated Ukrainian youth, who have access to many sources of information, hold no old prejudices and will form their own judgment on our history, including the Soviet era. ●

www.wbj.pl

9

BUSINESS ENVIRONMENT

www.wbj.pl

Capital expenditure

5 Base CPI

35 30 25 20 15 10 5 Source: KPMG

0 -5 -10 d

ece Gre

ia

lan

str

Ire

ain Sp

Au

an y rm

EU

-15 Ge

Annual change in base CPI and core inflation, Feb 2010 to Mar 2011

KP, GP

Capital expenditures indicator (points), February 2011

Fra nce

Fueled by food (and energy)

index than Poland. The average score for all EU countries surveyed was 18.1 points. On the negative end of the ranking was crisis-stricken Greece, which scored -13.6 points. Its score indicates that the Greek economy can expect few capital expenditures in the coming year.

“Contrary to other countries, Poland went through the economic crisis smoothly, which is why it is coming out of it better,” said Mr Wroƒski.

Near the top

ly

Consumer prices in Poland grew by an above-forecast annual rate of 4.3 percent in March, data from the Central Statistical Office show. They rose 0.9 percent m/m.

The annual inflation rate noted by the consumer price index (CPI) was well above the central bank’s target rate range of 1.5-3.5 percent and has given ammunition to those who want further interest rate hikes.

A month earlier, inflation had stood at 3.6 percent, while the market was expecting to see a figure of 3.9 percent this time around.

Over the past two years Polish businesses have been putting money aside, but it looks like they are finally starting to put that cash into action. Over the next year investments should bloom in Poland at a higher rate than in many other countries, according to KPMG’s latest “Pulse” global business outlook survey.

The report’s capital expenditure indicator, based on a February survey of 11,000 manufacturers and service providers, indicates whether companies plan to increase or decrease expenditures over the next 12 months. A negative reading would suggest companies were, on average, planning to limit investments.

The reading for Poland stood at 27.1 points in February, up from 11.7 points last October.

“Poland’s result stems from the improvement in the Polish production sector and the sta-

UK

which excludes food and energy prices, stood at 2.1 percent.

“With this in mind and also with concern over the GDP outlook, it is not certain that the RPP will hike rates in May,” Mr Svendsen wrote.

RPP member El˝bieta Chojna-Duch has said that a rate hike in May would be “definitely premature,” as the growth in prices is traceable mainly to external sources.

Inflationary pressure within Poland, meanwhile, will be limited by relatively lackluster economic activity and high unemployment, she said.

“It is hard to be certain at this moment that there will be a majority in the RPP to vote for a braver decision than a 25bps hike,” Bank Zachdoni WBK analysts wrote. Gareth Price

Rising food and fuel prices, which grew by 7.3 and 13.9 percent y/y, respectively, were the main price drivers in March.

The greater-than-expected figures have got analysts and policy makers debating whether interest rates should be hiked in the near future.

Many expect to see the ratesetting Monetary Policy Council (RPP) raise rates, but that outcome isn’t a certainty.

“A May hike has become much more likely after today’s numbers and we are inclined to believe it will be sanctioned,” Nordea Bank analyst Anders Svendsen wrote in an e-mail, adding that a rate rise next month is nevertheless not a given.

According to Nordea Bank’s calculations, core inflation,

bilization of our major trade partners, chiefly Germany. The businesses gain confidence, expect an increase in demand and are not afraid to invest,” Leszek Wroƒski, a partner at KPMG, said in a statement on the company’s website.

Polish entrepreneurs’ optimism, moreover, looks even better when compared to that of their EU counterparts.

The latest survey, conducted among 11 EU countries, showed that only the Netherlands had a higher investment

Ita

Fears over the economy, however, mean a May rate hike isn’t a foregone conclusion

Only Dutch companies plan to spend more capital, according to a new report

rla nd s Po l a Cz ech nd Re pu blic

Inflation soars

Polish firms ready to splash out

the

Consumer prices

APRIL 18-25, 2011

Ne

10

*Nordea Bank estimated

Core inflation

4

Money supply surprises

3

*

2

1 01

11 20

r2 Ma

11

Feb

Jan

01 c2 De

20

0

0 01 v2

01

0 No

t2

10 20 pt

Oc

0 Se

01 g2 Au

y2

01

0

0 Jul

01

e2 Jun

y2

01

0

0 01 Ma

r2

0 01

Ap

r2 Ma

Feb

20

10

1

Source: National Bank of Poland * Nordea Bank estimate

Legal News Contact: Lech Gniady lg@pnplaw.pl

Changes to inheritance law On April 7, the president signed an act which amended the Civil Code. The new provisions make it possible to inherit specific things and rights as indicated by the writer of the will (testator). For a specific bequest to be enforceable, it has to be included in the last will and the testament must be drawn up in the form of a notarial act.

This has been made possible by, among other things, the institution of specific bequest (zapis windykacyjny), which has only recently been introduced to the Polish system. Currently, heirs inherit all the rights and duties of their testators and then have to distribute the inheritance among themselves.

The new provisions will come into force in October 2011.

Speedy incorporation of limited liability companies, coming soon In its session on April 1, the Sejm accepted the Senate’s amendments to

an Act which is to amend the Commercial Companies Code as well as other legislation. The new provisions will make it possible to establish and register a standard limited liability company within one to two days. At present the process takes two to four weeks on average.

The new provisions are to come into force next January.

More time to apply the 0% VAT rate Since April 1, changes to the Act on VAT have been in force. Pursuant to these changes, sellers have more time to apply the 0% VAT rate.

The changes allow sellers to make a correction on the basis of a document which confirms that the goods in question were shipped outside the territory of the Community. The tax office must receive the document not later than 10 months from the end of the month in which the delivery was made. Previously that period lasted for six months. ●

BROUGHT TO YOU BY PETER NIELSEN & PARTNERS LAW OFFICE

In March, z∏.799.3 billion was in circulation in Poland, about 3.1 percent more than in February, according to preliminary data published by the National Bank of Poland (NBP).

The numbers surprised economists, most of whom were expecting an increase of

0.9 percent, Dziennik Gazeta Prawna reported. The NBP said that the large growth was the effect of the inflow of cash for transactions in the banking sector.

Money supply data also indicates that Poles are saving more. In March, Polish households had z∏.433.6 bil-

lion saved, or 10.3 percent more than a year ago. On the other hand, companies had less money put away in their accounts, indicating a possible increase in investments, Marcin Mrowiec, chief economist at Pekao, told the paper.

GP

IMF predicts public sector deficit and debt reductions Poland’s public sector deficit will reach 5.7 percent GDP in 2011, according to an analysis by the International Monetary Fund. Then it will fall to 4.2 percent of GDP in 2012 and finally reach a level of 3.7 percent GDP in 2013.

According to IMF predictions, the main factor contributing to the decrease will

be continuing stabilization in the country’s macroeconomic situation. A negative counterbalance, however, is that the deficit will remain at levels above three percent of GDP. The scale of fiscal adjustments needed in Poland is quite large when compared to other developing economies.

PKO BP analysts commented

that the public sector deficit path presented by the IMF is quite similar to the bank’s own assessments. They posit that the IMF’s analysis confirms the bank’s opinion as to the need for additional, structural fiscal reforms to sustainably and distinctly decrease domestic public sector deficit.

AK

Poland’s army of bureaucrats grows by 40,000 in nine months Despite Polish Prime Minister Donald Tusk’s promises to reduce bureaucracy, figures from the Central Statistical Office show that between January and September of last year, the number of people employed by the state’s admin-

istrative agencies grew by 40,000.

Experts from the Business Centre Club (BCC), an employers’ association, have calculated that the new civil servants will cost taxpayers an extra z∏.1.6 billion a year. This

figure was obtained by multiplying the average monthly salary in the civil service, z∏.3,400, by 40,000.

Last year, Mr Tusk promised to reduce employment in the civil service by 10 percent.

Remi Adekoya

OPINION

APRIL 18-25, 2011

www.wbj.pl

Race relations in Poland: room for improvement

W

hen I interviewed John Godson, Poland’s first MP of African descent, he said he felt more at home in Poland than anywhere else in the world. Nowhere had he met friendlier and more hospitable people, he assured me. Mr Godson also said he had had “very few” negative experiences in Poland that could be ascribed to racism.

Mr Godson’s experience of Poland is far from representative of the Africans I’ve met in the country. I believe he spoke sincerely, although it’s also smart politics to avoid alienating your electorate.

Welcome to Poland I myself had a somewhat different experience. The son of a Nigerian father and a Polish mother, in most eyes I am all black rather than half-Polish.

I grew up in Nigeria, coming to live in Poland in 1995, and (naïvely, in retrospect) I wasn’t expecting to be treated so differently. I was used to being referred to simply by name; upon arriving in Poland, however, I was

often referred to as “the black guy.” Or worse.

And while I have never been physically attacked in Poland because of my skin color, I know many black people who have. The name-calling was (and is) unpleasant, but there’s not much to be done about it.

My experiences were not unique.

And faced with such experiences, blacks (and other non-caucasians) in Poland often retreat into safe groups of “their own.” Some decry Poles as a nation of racists. “These people just don’t like us and I don’t understand why” or “What did we ever do to them?” – these are things I have heard Africans wonder aloud.

There are consequences. When minorities retreat into closed circles, they are exponentially more likely to remain ignorant of the local culture, history and, especially, language, widening the “understanding gap” that much further.

And the only thing worse than not understanding is not wanting to understand, a feeling I am familiar with. In those initial years in Poland, I found

myself, the son of a Pole, feeling alienated, unwanted and often very angry towards Poles.

Different perspectives Time changes all things, and neither I nor Poland are exceptions. The more natives I got to know, the less aggressive and unfriendly they seemed to be.

Poland, meanwhile, has grown more accustomed to seeing minorities on its streets and this has perhaps tempered some tongues.

Basic economics have also played a big role. When I came to Poland in 1995, people were earning $200-300 a month on average. Polish capitalism was just getting off the ground, times were tough and people were frustrated. They weren’t exactly in a “We Are the World” mood.

As the years passed, the economy grew stronger and Poland joined the EU. Poles started traveling abroad, meeting peoples of different races, and their attitude has palpably improved. Nothing civilizes people quite as much as prosperity and stability.

Persistent problems Casual racism is still a problem, however. There are plenty of examples where Poles, often unconsciously, say things which someone from Africa would find exasperating or even offensive.

Even in the best-respected media outlets you can read the term “ciemnoskóry pi∏karz z Afryki” (“a darkskinned footballer from Africa”). This might seem trivial, but it is a phrase which singles Africans out. After all, no one would write about a “whiteskinned footballer from Austria” or a “yellow-skinned gymnast from China.”

Is it so difficult to afford the same respect to a Zambian or a Kenyan?

There’s also the strange tendency in Poland to treat Africa as a single country rather than a continent.

No one “speaks African.” There are 54 countries, over 1,500 languages and roughly a billion people in Africa.

A Nigerian has as much in common with a South-African as a Greek has with a Dane. Perhaps less.

There are African countries like Chad with a GDP per capita of $700 and there are countries like Equatorial

11

Remi Adekoya Guinea, which has a GDP per capita that is 30 percent higher than Poland’s ($15,400 as compared to $12,500, according to 2010 World Bank figures).

Learning tolerance Black people and other minorities still get called unpleasant names and still suffer discrimination in Poland. The perception of “Africans” is still largely negative. This is the unfortunate truth of the matter.

Overt racism is now much less common than it was 10-15 years ago, and this is laudable progress. But deepseated prejudices are slow to change.

John Godson is certainly aware of the responsibility he bears. He is now the most high-profile black person in Poland – not to mention the CEE region – and he will be observed closely. It is his job to represent the interests of his constituents, but in doing so he can serve an equally important purpose – to broaden their minds. ● Remi Adekoya is a journalist specializing in politics. Read his blog, the Business of Politics, on WBJ.pl

Poland’s prosperity on a collision course with globalization

Robert Shapiro

P

oland is poised to learn a painful lesson about globalization and its increasing role in modernizing developing countries.

The old model of development, which used protectionism to give businesses in developing nations time to mature, is largely gone. Today, countries like China, Ireland and Poland import modernization by opening themselves to large foreign direct investments (FDI). When they embrace other policies to attract major multinational companies, the result is waves of FDI transfers of advanced technologies, business methods and even entire business organizations – and often the most rapid modernization ever seen.

Multinationals also have lots of choices about where to send their FDI. They look for places where the returns will be healthy and steady; and that points them to countries where the infrastructure is decent, workers have good skills and education, taxes are low, and the currency is sound. Critically, multinationals set up shop mainly in stable countries with governments which respect the rule of law.

So, when a country’s leaders dis-

miss the norms of international finance and commerce, the transfers that produced the rapid growth and income gains of the last decade will usually slow or even stop. Consider Argentina, where FDI inflows fell by two-thirds after Buenos Aires stiffed its foreign lenders for tens of billions of dollars and ignored court orders around the world to pay up.

Telecom dispute The source of Poland’s looming problems began 20 years ago, in 1991, when the state telecommunications authorities made a deal with the Danish company GN Great Northern Telegraph to help build and operate an advanced fiber optic network that now reaches from Poland’s northern border to the one in the South. In return, the Poles agreed to share the revenues with the Danes for 15 years and to settle any disputes through international arbitration.

Ten years later, the two parties were facing off in the International Arbitral Tribunal in Austria, in accordance with their agreement, trying to settle a dispute over how much the Poles owed the Danes. But there’s

been no resolution. Instead, Telekomunikacja Polska (TP) spent the better part of the past decade attacking the arbitrators for bias and challenging the credentials of the Tribunal’s experts. The arbitrators eventually ruled that the Polish company owed the Danes some $800 million. Yet the Poles have refused to honor the legally binding decision, claiming that it violates “principles of public policy in Poland,” and have now challenged it in Polish courts.

This is more than a private contract dispute. Although the Polish government completed privatization of the fiber optic system last August – the largest shareholder today is the French government through government-owned France Telecom. Warsaw’s final divestiture came after the arbitrators’ rulings, and the ultimate outcome clearly depends on the inclination of the Polish and French governments to respect the law. That seems especially pertinent as France chairs the G20 and Poland prepares to assume the presidency of the European Council in July.

Practical economics For the Polish people, this is not a

legal issue, but one of practical economics. If TP persists in thumbing its nose at its promises and international norms, multinational investors may well exact a price much larger than the arbitrators’ judgment.

In 2009, the stock of direct investments in Poland by foreign multinationals totalled some $183 billion, equal to 42 percent of Poland’s GDP. Nearly $80 billion of that flowed into Poland from 2005 to 2009, more than any other Eastern European economy received except Hungary. And these huge investments are the most important reason why Poland’s GDP is more than twice the size of any other Eastern European economy, and why real per-capita incomes increased by more than 20 percent over those five years.

The intransigence of the Polish and French authorities could put those gains at risk. In 2008, more than 20 major foreign companies maintained operations in Poland with sales of at least $1.5 billion each. The German trading company, Metro Group, turned generated sales there of nearly $14 billion, and production by Fiat and Volkswagen

generated almost $13 billion in Polish sales.

If multinationals lose faith that Poland’s government will honor and enforce the legal commitments of their Polish partners, what rational investment officer will recommend that a company transfer its latest technologies and business organizations there? There are plenty of other welcoming countries in Eastern Europe, including the even fastergrowing economies of Estonia and Slovenia.

As Poland prepares to lead the EU, its people should gird themselves for a hard lesson from the global economy. If the Polish government doesn’t fully recognize the findings of the international arbitration tribunal, a few shareholders may gain, but the prosperity of millions of Poles could suffer for years to come. ● Robert Shapiro is the chairman of Sonecon, an economic advisory firm in Washington, D.C., and the chair of the Council for European Investment Security. He was under secretary of commerce for economic affairs in the Clinton administration

Unless otherwise noted, the opinions here are those of Warsaw Business Journal. Readers’ comments, opinions and letters should be sent to editor@wbj.pl. Please include a name and contact information and clearly indicate if they are to be considered for publication.

PUBLISHER: VALKEA MEDIA SA

EDITOR-IN-CHIEF ANDREW KURETH (AKURETH@WBJ.PL)

DEPUTY EDITOR

POLITICS EDITOR

CONTRIBUTORS

PRODUCTION MANAGER

E. BLAKE BERRY (BBERRY@WBJ.PL)

REMI ADEKOYA

PIOTR WYSKOK

ONLINE & NEWS EDITOR

INTERNATIONAL EDITOR

EWA BONIECKA ANTHONY CASEY RICHARD WERNICK JOANNA WÓYCICKA

GARETH PRICE (GPRICE@WBJ.PL)

ALICE TRUDELLE

(RADEKOYA@WBJ.PL)

(ATRUDELLE@WBJ.PL)

REAL ESTATE EDITOR

ADAM ZDRODOWSKI (AZDRODOWSKI@WBJ.PL)

INTERN

KATARZYNA PIASECKA

MARKETING &SALES

AGNIESZKA BREJWO MARKETING &SALES DIRECTOR

(ABREJWO@WBJ.PL) GRAPHIC DESIGNER

PAUL FOGO JUDITH GLINIECKI TOMASZ JERZYK ADAM NARCZEWSKI

KATARZYNA PINKIEWICZ (KPINKIEWICZ@WBJ.PL) CARTOONS

PIOTR WYSKOK

MAGDALENA KARPI¡SKA (MKARPINSKA@WBJ.PL) MA¸GORZATA ANCZEWSKA (MANCZEWSKA@WBJ.PL) PR & MARKETING MANAGER

¸UKASZ MAZUREK COLUMNISTS

MANAGING DIRECTOR MONIKA STAWICKA

JOWITA MALICH (JMALICH@WBJ.PL)

NATALIA ROGACZEWSKA (NROGACZEWSKA@WBJ.PL) SUBSCRIPTIONS MANAGER

AGNIESZKA MICHALIK (AMICHALIK@VALKEA.COM)

PRINT & DISTRIBUTION COORDINATOR

KRZYSZTOF WILI¡SKI (DYSTRYBUCJA@VALKEA.COM)

BOOK OF LISTS SPECIALIST

JOANNA RASZKA (JRASZKA@VALKEA.COM)

COVER STORY

www.wbj.pl

PGE EO's wind farms PGE Energia Odnawialna (PGE EO) wants to operate wind farms with the ability to produce a total of 1,000 MW of energy by 2015. The company, a subsidiary of utility PGE, has already submitted offers for the acquisition of 80 MW and hopes to acquire three more wind farms this year, Puls Biznesu reported.

PGNiG looks west Polish gas giant PGNiG owns a 12% stake in the Skarv oil and gas deposit in Norway. However, Norwegian gas supplies, for which extraction will begin in August, won't be sent to the Polish market. S∏awomir Hinc, PGNiG's deputy CEO, told Parkiet that the transport of gas to Poland would be too expensive. The Polish company instead plans to sell the fuel extracted in Norway to Western European countries.

Retail chains eye Poland Every third retail chain surveyed by real estate consultancy CB Richard Ellis plans to invest in the Polish market, according to an annual report cited

by Rzeczpospolita. The report analyzed the business plans of 323 retail chains in 73 different countries. Only Germany did better in the ranking, with 40% of retailers expressing their willingness to enter that market.

How Hollywood was won Poland-based Alvernia Studios can proudly say it’s among the top movie houses in the world and one that keeps increasing its Hollywood profile, Rzeczpospolita reported. The company is just finishing work on a film with Sigourney Weaver and about to start a new picture starring Richard Gere and Tim Roth. ●

APRIL 18-25, 2011

E-books

Turning a new page

Mark Ordon

The e-publishing industry is just getting off the ground in Poland, but it could get a boost from the government The government’s recent announcement of a plan to purchase laptops for every firstgrader in the country has plenty of businesses excited, laptop manufacturers and publishers not least of which. The initiative comes from the Interior and Education ministries, with the full support of Prime Minister Donald Tusk.

The idea was previously mooted back in 2008, but financing proved a problem.

This time around may not be any different, as the government is extremely cost-conscious these days, but planning is nonetheless under way. Minister without portfolio Micha∏ Boni is contemplating the launch of a pilot in September, where selected schools would receive netbooks for their first-graders. If implemented, the program would span five years and include implementing a learning program that would take advantage of the technology.

For the moment, the discussion is centered around the distribution of the technology.

But the move could eventually prove a gigantic boost for the e-publishing sector. Should laptops prove financially workable, the next step would be to cut costs on print textbooks and required reading titles.

ciation asked each of its executive members to assess their respective ebook markets. The results, gathered from publishing associations in France, Germany, Japan, South Korea, the Netherlands, South Africa, Spain, Italy, the UK and the US, were then published on industry website TheBookseller.com.

Most of the markets reported e-book sales at a maximum of 1.6 percent of their total book sales, with the UK and US being the exceptions. The Association of American Publishers, for example, reported that ebooks made up eight percent of total book sales in 2010.

Meanwhile, the representative of the British publishing industry stated that most UK publishers report e-book sales at anywhere from one to nine percent of total book-publishing revenues.

All the respondents did say that the sector was growing, without a doubt. For example, the German publishing sector expects sales of e-books to amount to five to 15 percent of total book sales by 2015, whereas its Spanish and Japanese counterparts foresee a figure of around 10 percent in that year.

A nascent market Electronic books have been around for about 40 years, but the market is still nascent.

Although Amazon and a number of other companies have made serious progress over the last few years, on the global scale e-books are still a small business, albeit one with tremendous growth potential.

In a survey conducted at the beginning of the year, the International Publishers Asso-

A Polish version of the One Laptop Per Child initiative could help e-publishers

K ERSTOC SHUTT

12

Competition developing The Polish e-book market is experiencing much of the same. Bart∏omiej Roszkowski, head of e-book distribution specialist NetPress Digital, estimates that this year sales of e-books on the domestic market will total around z∏.11-12 million. This translates to a market share of about one to 1.5 percent in terms of value.

Mr Roszkowski’s firm dis-

tributes ebooks and other electronic publications through its Nexto.pl portal, but not only. At the end of March, popular web portal Wirtualna Polska launched its first e-book store, CyfroweKsiazki.wp.pl. The platform is powered and administered using Nexto.pl solutions and offers the e-book distributor’s complete selection of e-publications.

Mr Roszkowski sees this project as an opportunity for publishers already working

with Nexto.pl, as well as for those planning to enter the electronic publications market. Through Wirtualna Polska’s marketing channels, their titles will now be seen by the hundreds of thousands of web users that visit www.wp.pl each day.

Virtualo, yet another strong player in the Polish e-

book landscape, is also developing rapidly.

Last year was especially decisive for the e-distributor, according to CEO Robert Rybski. The company started off with 1,200 e-titles at the beginning of 2010 and finished off the year with over 6,500. During that year, readers could find e-versions of products from leading Polish publishers like Âwiat Ksià˝ki, W.A.B., or Czarna Owca at the Virtualo site.

The e-store currently works

Bestsellers of the Virtualo e-distribution platform*, 2010 Rank Title

Publisher

Type

Format

1.

“Angielskie formu∏y konwersacyjne”

Z∏ote MyÊli

foreign language study

PDF

2.

“Between Summer’s Longing and Winter's Cold”

Czarna Owca

suspense

ePUB

3.

“The Girl With the Dragon Tattoo”

Czarna Owca

suspense

ePUB

4.

“Good night, D˝erzi”

Âwiat Ksià˝ki

novel

ePUB

5.

“Kodeks cywilny. Komentarz do artyku∏ów 450-1088. Tom II”

CH Beck

law

PDF

6.

“Project Management”

BC Edukacja

how-to books

PDF

7.

“The Girl Who Played with Fire”

Czarna Owca

suspense

ePUB

8.

“Krzy˝acy”

Aleksandria

school reading

MP3 (audiobook)

9.

“KapuÊciƒski non-fiction”

Âwiat Ksià˝ki

novel

ePUB

10.

“Apelacja karna”

CH Beck

law

PDF

*includes sales on Empik.com, Gandalf.com.pl, Amazonka.pl, eBook.pl, Virtualo.pl, NaKanapie.pl Source: Virtualo

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 18-25, 2011

with 70 Polish publishing houses.

Real growth, however, came in October 2010, when Virtualo came to an agreement with Empik.com to be the exclusive supplier of e-content for Poland’s most popular bookseller. In December, following three months of operation, Virtualo recorded revenue levels seven times higher than a year earlier.

As of last week the firm had over 7,500 e-books on offer and it has aggressive expansion plans. The company also intends to expand its network of agreements with publishing houses.

the e-book market in Poland, along with a larger and more affordable selection of ereaders. There are about 10,000 e-readers in the Polish market today, estimates NetPress Digital’s Bart∏omiej Roszkowski, and they are still

to Polish consumers in the next four years.

E-book file formats also need to be considered. Aside from the ever-popular PDF format for personal PCs, the ePUB format for e-readers and tablets is used by Virtualo

www.wbj.pl

Technical considerations This, indeed, will be a deciding factor in the growth of

In terms of value, the Polish ebook market remains a fraction of the country’s total book sales.

The full picture is a bit hazy as yet, with statistics still based on estimates presented by the main players in the industry.

K STOC TTER SHU

Amazon’s Kindle is one of the most popular e-readers on the market – over half of the platform’s ebooks are on ePUB, which can be loaded on e-readers.

In Q1 2011, PDF-format ebooks comprised 58 percent of sales, most of which were specialized publications not yet available in ePUB. E-books in the ePUB format accounted for 36 percent of total sales, and the firm is seeing a strong growth dynamic.

Weltbild Polska, which has recently become the new owner of Âwiat Ksià˝ki, is taking the technical issue a step further by introducing its own e-reader, the Aluratek, to the Polish market. Weltbild is already conquering the German e-book market with its offering of e-content and the Aluratek.

Academic textbooks / school reading In a recent interview for Rzeczpospolita, Gunther Other Gerlach, CEO of Weltbild Polska, Foreign language study noted the need for affordable e-readers.

He said that while Science fiction / Fantasy the iPad is an interesting device, it is Self-help still quite expensive and heavy. Therefore technology that fits Horror, thriller, crime readers’ needs and Source: Virtualo budgets is necessary.

relatively expensive.

In terms of selection and affordability, Poland is about a year to 18 months behind Western European markets. A trend can already be detected – the selection of e-readers and tablets is growing and prices are falling.

Mr Roszkowski also predicts that telecommunications operators will jump on the e-bandwagon and start to offer customers tablets and e-readers in affordable packages, much like smartphones today. With that in mind, around one to two million devices should find their way

5% 6% 7%

35%

8% 11%

Specialized publications (law, economy)

Personal use of e-books Judith Gliniecki is a Partner with Wierzbowski Eversheds judith.gliniecki@eversheds.pl

Structure of publisher Virtualo's e-book sales, Q1 2011

14%

Legal Eye

Success writ large?

What are they reading?

What kind of content do readers look for in electronic form?

According to 2010 data provided by Ma∏gorzata B∏aszczyk, head of promotion and marketing at Virtualo, most of the titles sold – about 30 percent – were specialized publications in the areas of law and economics.

Next in line were fine literature and non-fiction novels and stories, which accounted for 25 percent of sales.

E-content readers also chose foreign language study materials (nine percent) and self-help books and suspense novels (eight percent). Academic textbooks, school books and learning aides also contributed (seven percent), as did science fiction and fantasy titles (four percent).

Ms B∏aszczyk added that this year the market is expected to see growth in sales of fine literature and mainstream fiction titles, thanks mainly to the widening selection from popular Polish publishing houses.

13

14%

Fine literature / Fiction / Non-fiction

Yet a distinct trend can be observed. Several firms focusing on producing titles in a form accessible and usable by readers have appeared in the market. These companies are

Although I’m an avid reader, I resisted e-books for a long time. After all, how could an electronic file compare with the feel and smell of paper, the ease of reference back (or of peeking ahead to the end) or the fun of browsing at a book store? My adventure with e-books began when a friend lent me a Kindle. For years, I had been borrowing books from her. She decided to go electronic, and it was time for me to try it, also.

Six months later, I’m perfectly happy reading an ebook. I’ve even tested the merits of reading on an iPad versus a Kindle.

As I build up my library, though, I am wondering what to do next. For a regular book, I could give or loan the book to someone else, put it on my bookshelf or throw it away. All of this is acceptable under copyright law. Electronic files, however, do not fall so neatly into rules built for a paper world.

Author’s rights

“There are about 10,000 e-readers in the Polish market today” gaining the trust and cooperation of the large publishing houses and bookstore chains, which in turn are interested in expanding their e-content selection.

Though it remains niche, this sector may help to improve poor sales of traditional print books in Poland.

Will it bring around many gadget-oriented consumers who don’t read print titles anymore but happily devour content on their PCs, tablets and smartphones? Will the government’s plan to modernize education help push the publishing industry into the next stage of development?

It’s too early to tell yet, but one thing is clear – the word is spreading. Digitally. ●

Copyright law was developed for an age of paper and pen.

It attempts to create a balance between protection of an author’s rights in a book and allowing me, as the acquirer of a copy of a book, to make normal use of it.

Copyright grants an author certain exclusive rights over a work (such as a book). These include matters of personal pride, such as the right to claim authorship and to decide whether to publish. They also include material matters, such as the right to use the work and to receive money for that use.

In general, these monetary rights last for 70 years following the death of an author.

Fair use A number of carve-outs exist to an author’s rights to allow reasonable use by others.

These “fair use” exceptions have become the battle ground in the digital world.

Polish copyright law contains a lengthy list of various fair use exceptions. Some are extremely specific, such as the use of the original building plans to reconstruct or repair a building and use of works by scientific and educational institutions for research or teaching purposes. Some are broad, such as an exception that allows you to use a work for your own personal use, such as reading for pleasure. Polish copyright law views the term “personal” as including your nearest and dearest, such as friends and relatives.

Once I own a copy of a regular book, under the fair use exception, I am free to do essentially as I please with my copy. Having read it, I can give it away, use it as a door-stop, or do almost anything else that strikes my fancy. Additionally, I may lend it to my friends for their reading enjoyment.

One of the main things that I can’t do with my copy of the book is to make new copies, although a few limited exceptions exist. Generally speaking, only the author may print new copies.

Sharing e-books In a digital world, the lines become blurred. There are only a few places in copyright law in which distinctions have been made between the realities of the digital world and the paper world. Is an electronic file a “copy?” Can I lend my e-book to a friend?

Where the law is unclear, technology has stepped in.

The e-books that I receive from official e-book stores contain technological restrictions on my ability to transfer those files. As an example, Kindle has a specific policy on lending e-books and has put technology in place to allow it. Under this policy, if a publisher allows it, I can lend a book to someone for 14 days. During this period, I can’t access this e-book. ●

14

POLITICS

www.wbj.pl

APRIL 18-25, 2011

Profile

Godson: ‘I never thought I’d end up in politics’ Poland’s first Africanborn MP, John Godson, talks about the long road to Parliament and his plans for the future Nowhere in the world feels as good as Poland, John Godson, the country’s first African-born MP, told WBJ in a recent interview.

“The Poles are a fantastic people,” he said. “I have never met people so friendly and hospitable in any other country. Everybody has a place on Earth where he feels at home, for me that place is Poland.”

Those are strong words, but Mr Godson, a bespectacled, amiable 41 year-old, sounds genuine. And he’s been in Poland long enough – around 18 years – to have formed a solid opinion of it.

So how did a man born in Nigeria end up in Poland’s parliament?

COURTESY OF JOHN GODSON

Mr Godson says that Poland is the place where he feels most at home

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

Of course there are some who are not happy that I am in politics, but I choose not to focus on the negatives From Umuahia to ¸ódê Godson was born in Umuahia, a city in the Eastern part of Nigeria, to parents who were both teachers. “I would describe our family as middleclass. We weren’t rich, but we were respectable,” he said, adding that his parents instilled in him values such as hard work, integrity and responsibility.

He came to Poland in 1993 as a born-again Christian missionary, establishing his own church five years later. Along the way he married a Polish woman and today they have four children.

“I never ever thought I would end up in politics,” he said.

After coming to Poland, Mr Godson also worked as a university lecturer and started his own language school. After he’d been in the country for some years, people started advising him to try his luck in politics and, he said, his Christian values are one of the reasons why he is a member of the Civic Platform (PO) party today.

“I liked the Democratic Left Alliance’s social conscience, but as a Christian I found their outlook on issues like abortion and euthanasia too liberal,” said Mr Godson.

“Law and Justice tend to stress their Christian values, but I

found them too nationalistic and vengeful, while the Polish People’s Party is only very active in small towns and villages.”

PO was a better fit. “It is a party with people who have a wide range of values, from the right to the left,” he said.

Mr Godson’s career in politics started in 2005, when he ran for a seat in the District Committee (Rada Osiedla) of Olechów-Janów, a small town on the outskirts of ¸ódê. He received the highest number of votes among the 107 candidates who took part. “This result really gave me the encouragement that I had chosen the right path,” he said.

The next year he ran for a seat on ¸ódê’s City Council, but failed to get elected. Then in 2007 he vied for a place in parliament on PO’s candidate list. He got the seventh-highest number of votes among the candidates, with only the topfive making it to parliament.

However, one of the PO MPs decided to move to the European Parliament in 2009, meaning the sixth-place politician on the list took that spot.

Then MP Hanna Zdanowska became mayor of ¸ódê in 2010, so John Godson took her place in parliament.

The first ...

Since then he’s become something of a media star. He is the first MP of African descent among the post-communist countries of Central and Eastern Europe.

Asked what he would like to be remembered for apart from being “the first black MP,” he mentioned four areas he would like to focus on in parliament.

“First of all, I would like to change the perception of ¸ódê into one of a more enthusiastic city with good economic growth. Innovative technology is also an area I’m very interested in,” said Mr Godson.

Indeed Mr Godson is well known in ¸ódê for having brought free internet access to the airport, railway stations and some parts of the city center.

Other issues he mentioned included the need for young mothers to be able to return to work and the better treatment of the elderly in Poland.

“In Nigeria, elderly people are accorded a huge deal of respect by society. But in Poland I see senior citizens being marginalized and not receiving that kind of respect from younger people,” he said.

He also wants Poland to be a modern nation with “no inferiority complexes” towards Western nations.

Asked if his religious views help or hinder him in politics, Mr Godson said, “neither.” “I

don’t talk about God to people. The best way to bear witness is by the way you live your life: ‘By their fruits they shall be known,’ the Bible says.”

He added, “As a pastor I used a lot of words, but as a politician I believe evangelizing is not my role. My role is to serve people, to give them hope when there is no hope, to solve their problems when it looks like there is no solution.”

More Poland-Africa cooperation Ties between Poland and Africa are too limited, according to Mr Godson, and he wants to change the situation.

He is currently the chairman of a bilateral parliamentary group meant to encourage economic, cultural and political ties between Poland and Nigeria, and said energy is a major area for cooperation.

He cited an unnamed Polish firm which recently won a contract worth €4 billion to build a power plant in Nigeria.

“I would like to see PGNiG or Orlen have its own oil field in Nigeria or another African nation,” he added.

Education is another area with room for improvement.

“Last year 700,000 Nigerian pupils passed their schoolleaving certificate, but the universities only have room for 300,000 students, so many of the rest have to go abroad for studies,” he said. “The UK made over £7 billion from foreign students last year, why shouldn’t Poland get in on the action?”

And then there’s the construction industry. While Polish construction firms had a strong presence in Africa in the 1970s, according to Mr Godson, they are largely absent today.

“The problem is that the perception of Africa in Poland is of a place where there is poverty, conflict and disease.

But the fact of the matter is that a lot of foreign firms are operating there and making a lot of money,” he said.

And racism?

When it comes to racism, Mr Godson said he has had very few negative experiences in Poland and that being black actually helped him get a lot of media interest from the get-go.

“Of course there are some who are not happy that I am in politics, but I choose not to focus on the negatives,” he said.

Asked what he would say to other Africans who feel they cannot make it in Poland because of their skin color, Mr Godson said, “If you have come here just to take, people will not respond to you. But if you are here to give, they will always be open to you and will respond positively.”

Remi Adekoya

Lokale Immobilia looks at trends shaping the residential market

PKP is hawking land in the center of Wroc∏aw

17

18

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

New project in Bródno Warsaw-based developer Unidevelopment will build a new residential project on ul.

Goworowskiej in Warsaw’s Bródno neighborhood. Work on the Praga Square project is expected to start at the end of May, with completion scheduled for September 2012. Prices of units in Praga Square will be revealed at the end of May. The design for Praga Square calls for a four-storey residential building comprising 11 apartments of 48 to 144 sqm. Two spacious studio apartments with mezzanines will be located on the top floor.

The building will offer luxury finishing standards. ●

In this issue Mennica office plans . . . . . . . .15 Veneda construction . . . . . . . . .15 Dor’s residential project . . . . . .16 New sales in Alpha scheme . .16 Carré Arte sales . . . . . . . . . . . . .16 Property-related stocks . . . . . .16 Residential trends . . . . . . . . . . .17 Intenso project . . . . . . . . . . . . . .17 TJX Europe’s distribution plan . .18 PKP sells Wrocław land . . . . . .18 Metro Group malls expand . . .18

Mint of Poland plans office complex Delivery is not expected for at least five years though The Mint of Poland (Mennica Polska) has presented City Hall with its plans to develop two plots in Warsaw’s Wola district. Completion of the project is not expected for years, however.

The two plots, totaling 18,500 sqm, are located between ul. Prosta, ul. ˚elazna, ul. Grzybowska and ul.

Waliców. They currently host administrative and production buildings owned by the Mint of Poland.

The company wants to build an office-services complex totaling about 103,000 sqm at the site. The first phase of the work would include the construction of a 130-meter skyscraper on ul. Prosta. In the second phase, the complex would be expanded to include additional buildings of up to 50-meters in height at the intersection of ul. ˚elazna and ul. Grzybowska.

Five years away?

Mariusz Przybylski, the spokesperson of the Mint of Poland, confirmed that the project has already been presented to the Wola branch of

City Hall. “We have proven that we have a clear and coherent plan as to how to develop the plots,” he said. “However,” Mr Przybylski added, “the

project will not be realized in the near future.

“For the beginning of the first phase of the investment we will have to wait more than

five years,” he said, citing the length of the development process as the reason. “Realization of the second part is anticipated in the even more remote future,” he added.

A public pedestrian walkway running from the corner of ul. ˚elazna and ul. Grzybowska to an internal courtyard will link the buildings in the complex. Architecturally, the project is expected to be modern and yet complement its neighbors, which include a historical wall along ul. Waliców and a restaurant located in the premises of the old Junga brewery.

The Mint of Poland is the exclusive producer of all currency and collector coins issued by the National Bank of Poland and it also produces coin currencies for other countries. As a developer, its other investments include the Aurum office building in Warsaw and the Rajska Jab∏oƒ housing estate in Jab∏onna near the capital.

Katarzyna Piasecka

Construction on Galeria Veneda scheduled for this summer Warsaw Stock Exchange-listed developer Echo Investment has obtained a building permit for its Galeria Veneda shopping center project in ¸om˝a, Podlaskie voivodship. The firm has been planning the investment for over 10 years now but the development has to date been held up by various administrative and legal obstacles.

Construction on the much-delayed Galeria Veneda scheme is now finally expected to launch this summer after the project’s building permit takes effect. The

investment, which will be located at the intersection of ¸om˝a’s ul. Zawadzka and ul. Sikorskiego, is scheduled for completion in Q4 2012.

Galeria Veneda will offer about 16,000 sqm of leasable space, hosting 80 shops, including a food court and a Tesco hypermarket. The facility’s parking lot will provide space for 600 cars. It is not yet clear whether the mall will comprise a cinema: Echo Investment has already signed operator Multikino for the project, but failed to mention the cinema in its building permit application.

Galeria Veneda was designed by Warsaw-based studio Màka Sojka Architekci in partnership with architects from Echo Investment.

Kielce-based Echo Investment is one of Poland’s largest real estate investors and developers.

To date the firm has completed over 80 projects totalling some 700,000 sqm of space in 28 Polish cities.

The developer is also present in the Hungarian, Romanian and Ukrainian markets.

Katarzyna Piasecka

COURTESY OF ECHO INVESTMENT

Along with a hike in ticket prices, the Public Transport Authority of Warsaw (ZTM) has announced a new investment plan, according to which the second subway line in Warsaw is scheduled to be completed by 2022.

Previously the second line was scheduled to be completed by 2014. The new plan, however, calls for the construction of the central section of the second line, comprising seven stations, by that date.

APRIL 18-25, 2011, LI 16/15

Office space

COURTESY OF THE MINT OF POLAND

New Metro line delayed?

•

Expected in late 2012

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

16

LOKALE IMMOBILIA – REAL ESTATE

www.wbj.pl

APRIL 18-25, 2011

COURTESY OF BRANDLAB

Work starts on DOR Ochota residential project

COURTESY OF SMART MEDIA

Carré Arte will bring 137 apartments to the market

Bouygues Immobilier launches Arte investment

DOR Ochota will host a wide range of apartments Developer Dor Group has begun construction work on DOR Ochota, a new residential project located in Warsaw’s Szcz´Êliwice neighborhood.

Apartments sales have also begun.

The 13-storey residential building, comprising 244 apartments, will be located on Al. Bohaterów WrzeÊnia, near Szcz´Êliwicki Park. DOR Ochota has been designed to include a wide range of apartments, with one, two and three-room units as well as

spacious penthouses with terraces. Units will range from 37114 sqm in area.

DOR Ochota was designed by the Warsaw-based MKC Architekci and delivery is scheduled for 2013. The prices of apartments start from z∏.7,900 per sqm.

The ground floor of the building will host service space and tenants will be furnished with parking for 254 vehicles as well as storage space.

Ownership of Dor Group is split equally between interna-

Developer Bouygues Immobilier Polska has launched sales of apartments in a new phase of its Villa Arte residential project in Warsaw.

Located on ul. Jana Kazimierza in the capital’s Wola district, the nine-storey Carré Arte building offers 137 units sized from 24-107 sqm. The average price per sqm amounts to 7,500 sqm.

Villa Arte is a complex of six- to 11-storey buildings which will ultimately comprise a total of more than 840 apartments. Construction on the investment started in

tional investor Ben Holdings and Canadian real estate investor Avon Holdings Group.

The company operates on both the Polish and US markets.

Present in Poland since 1999, the developer has completed three projects: Szucha Residence and Nad Jeziorem – Bemowo, both located in Warsaw, and Pruszków – Park Anielin in Pruszków. Work on another four projects, including DOR Ochota, is under way or soon to start.

Katarzyna Piasecka

April 2010 and the first two phases of the project are scheduled for completion in Q4 2011 and Q4 2012, respectively. Apartments in the newly launched Carré Arte phase will be ready in Q2 2013.

“Carré Arte is another building in the investment on ul. Jana Kazimierza. Thanks to a wide range of apartment sizes, it will, like the previous Villa Arte and Bell’Arte phases, meet the expectations of both those who are buying an apartment for investment purposes and those who are look-

ing for a unit for themselves and their families,” stated Katarzyna Rauber, sales and marketing director at Bouygues Immobilier Polska.

Bouygues Immobilier has been present in the Polish market since 2001. Apart from Villa Arte, the company is also building Le Village in Józefos∏aw near Warsaw and Villa Parc in the capital’s Ochota district. The firm is also responsible for the development and leasing of a new headquarters building for Grupa TP. Adam Zdrodowski

Security

Closing price on Apr 14

% change (week)

52-week low

52-week high

% change (year)

Total shares

Market value (z∏.mln)

BUDIMEX

108.90

-0.18

84.55

109.10

9.67

25,530,098

2,780.23

CELTIC

20.00

-3.89

17.43

60.55

N/A

34,068,252

681.37

DOMDEV

46.99

-2.59

38.52

61.00

-12.98

24,560,222

1,154.08

ECHO

5.07

-2.50

3.95

5.40

10.22

420,000,000

2,129.40

ELBUDOWA

153.50

-0.26

150.00

188.40

-14.72

4,747,608

728.76

ENERGOPLD

3.96

-3.41

3.57

4.33

-6.82

70,972,001

281.05

ERBUD

38.56

-0.62

38.07

61.00

-23.11

12,602,711

485.96

GANT

13.78

-2.89

12.98

26.00

-45.96

20,499,953

282.49

GTC

21.32

-0.84

19.58

24.98

-12.98

219,372,990

4,677.03

HBPOLSKA

2.20

-8.33

2.20

3.90

-37.14

210,558,445

463.23

JWCONSTR

14.68

1.24

13.50

18.69

-13.08

54,073,280

793.80

LCCORP

1.59

-1.85

1.41

1.72

-7.56

447,558,311

711.62

MARVIPOL

8.50

1.19

8.40

19.00

-55.03

36,923,400

313.85

MIRBUD

4.25

-4.49

2.71

4.75

51.79

75,000,000

318.75

MOSTALWAR

42.92

-0.19

42.92

74.80

-42.77

20,000,000

858.40

MOSTALZAB

2.81

-0.35

2.63

4.75

-41.58

149,130,538

419.06

ORCOGROUP

36.00

-6.25

19.00

40.00

21.83

14,053,866

505.94

PBG

174.20

-1.02

174.00

252.00

-20.78

14,295,000

2,490.19

PLAZACNTR

4.30

-1.60

3.70

6.20

-29.97

292,647,720

1,258.39

POLAQUA

18.90

3.73

16.00

22.50

-4.88

27,500,100

519.75

POLIMEXMS

3.54

-2.21

3.33

5.10

-29.90

521,154,076

1,844.89

POLNORD

32.26

-3.85

30.50

44.00

-22.10

22,340,189

720.69

RANKPROGR

13.06

-1.06

9.59

13.60

N/A

37,145,050

485.11

ROBYG

2.06

0.49

1.70

2.08

N/A

257,390,000

530.22

RONSON

1.46

3.55

1.36

2.10

-20.65

272,360,000

397.65

TRAKCJA

3.70

2.21

3.32

4.97

-17.78

160,105,480

592.39

ULMA

87.00

-1.14

70.00

88.00

7.67

5,255,632

457.24

UNIBEP

7.65

3.38

7.30

10.30

-6.02

33,927,184

259.54

WARIMPEX

10.36

-1.43

7.64

10.85

7.92

54,000,000

559.44

ZUE

12.80

0.08

12.51

15.14

N/A

22,000,000

281.60

COURTESY OF PRESTIGE PUBLIC RELATIONS

Property-related stocks

The Alpha development will comprise a total of seven buildings

New Alpha estate apartments on sale Developer RED Real Estate Development has launched pre-sales of apartments in the latest phase of its Alpha residential project in Warsaw. This phase, construction of which will launch in mid-2011 and finish in mid-2013, will comprise two buildings with a total of 150 units.

The Alpha scheme is located on ul. Skoroszewska in the capital’s Ursus district. Four buildings in the development have already been completed, with a total of seven planned.

Erbud is the general contractor for the project.

Apartments in this phase of Alpha are priced at z∏.6,8007,500 per sqm. All of the units qualify for “Family on its Own,” the government’s popular mortgage-subsidy program for first-time homebuyers.

RED Real Estate Development is an international development company best known for office and hotel projects in American cities including New York, Boston, Chicago and

Houston. The firm has been present in the Polish market since 2006.

Apart from Alpha, the developer is currently planning two other residential projects in Poland. Building work on the first, the 130apartment RED Park in Poznaƒ, will launch in August. In Wroc∏aw, the company is finishing preparatory work on the second project, whose construction is due to start in Q3.

Adam Zdrodowski

LOKALE IMMOBILIA – REAL ESTATE

APRIL 18-25, 2011

www.wbj.pl

17

Poland’s residential market

Developers shifting to low-end offers Lower prices, cheaper flats Results of the most recent Reas surveys of develpers

I expect that in the next 12 months the price of apartments in developers' offers will be:

June 2010

60%

60

43%

41%

I expect that in the next 12 months the prices of apartments introduced into the market by my firm will be:

43%

June 2010

50

40 33%

December 2010

48%

December 2010

40 21%

36% 32%

30 30

20

17%

20 10

2%

8%

5%

10

4%

4%

0%

0%

3%

0%

r

r

he hig dly de De ci

me So

Wi

tho

wh

ut

at

cha

hig

ng

he

e

er at wh me So

De ci

de

dly

low

low

er

r dly de De ci

me

wh

at

hig

hig

he

he

e ng ut tho Wi

at wh me So

cha

low

er low dly de De ci

r

%

er

%

0%

Source: Reas

50

The average price per square meter of an apartment in Poland will probably drop over the course of this year, but not due to price cuts, said Pawe∏ Sztejter, a partner at residential consultancy firm Reas.

According to research released by the firm last week, the reason for the drop will be an increase of apartments aimed at price-conscious customers – 40-50-sqm, tworoom apartments that typically serve as homes for young families in Poland. These are flats that were designed during the global economic crisis, with developers anticipating tighter credit markets and lower incomes.

The firm’s figures say that 10,736 apartments were introduced for sale in the first quarter into Poland’s top six markets (Warsaw, Kraków, Poznaƒ, ¸ódê, Tri-city, Wroc∏aw).

Of those, only 109 (one per-

So

Apartment prices are set to fall on average, but not because anybody’s cutting prices

crisis, and now needed to begin regaining revenue.

“The developers are now feeling the pain level. So it’s high time to do something,” he said.

Nevertheless, Mr Sztejter said he wasn’t worried. With members of Poland’s early1980s “baby boom” generation crossing into their early 30s, there is no shortage of demand for such housing.

Reas expects developers to slow down between the middle of this year and next year, as the market becomes saturated.

A greying trend cent) were “luxury” apartments.

“The low-end segment of the market will grow, so that will make for lower prices on average. But we have no expectation of lower prices in the low-end segment,” said Mr Sztejter.

However luxury apartments – especially those built at high prices prior to the financial crisis for the wave of foreign investors that in the end didn’t close many deals – will be one

“The low-end segment of the market will grow, so that will make for lower prices on average” sector that could see prices drop, said Mr Sztejter.

Rising supply Mr Sztejter noted one unsettling trend: the number of apartments going on sale each quarter is rising dramatically,

especially in Poland’s regional capitals.

He named Wroc∏aw and Kraków as particularly dynamic. In the former, the number of apartments introduced into the market in Q1 2011 was 1,700, whereas a year earlier

only 900 were. In the latter, there were 2,500 new units introduced into the market in the first quarter, while between Q4 2010 and Q1 2011, the number of unsold apartments rose by 1,000.

“The numbers have not crossed the breaking point yet, but the trend is worrisome,” he said.

Why did developers put so many apartments on the market? Mr Sztejter explained that they had waited out the

In the longer term, Mr Sztejter sees a demand for senior housing picking up substantially.

With the post-war baby boomers continuing to gray, the popularity of assisted-living and facilities for the elderly will rise.

“People say there will be no market in this because the pensions are too low,” he said, “but, as in the West, some of this burden will be taken up by the children.”

Andrew Kureth

Neocity Polska, the Polish subsidiary of the eponymous Israeli developer, has launched construction of the group’s first residential project in Poland.

Called Intenso, the new residential complex is being built at the intersection of ul.

Ordona and ul. Wschowska in the Odolany neighborhood of Warsaw’s Wola district.

The design for Intenso,

which has been furnished by the Warsaw-based Mierzejewski Kasprzycki Czaplicki studio, calls for six residential buildings comprising a total of 303 apartments and a two-storey underground parking lot. The complex will be U-shaped, with an internal courtyard linking all the buildings.

Polish construction company Karmar is the general con-

tractor for the Intenso project, construction of which will be carried out in three stages. In the first stage, scheduled for completion in Q4 2012, the underground section and two buildings will be built, with a total of 125 apartments.

Apartments in the Intenso development are priced at z∏.7,400 per sqm, but the first 15 clients to buy a unit in the

scheme will pay a reduced price of z∏.6,500 per sqm.

Neocity Group is listed on Tel Aviv Stock Exchange (TASE). Its Polish subsidiary entered the domestic market in 2006. Apart from Intenso, Neocity Polska also plans to realize a residential project called NeoVillage in Warsaw’s Ursus district.

Katarzyna Piasecka

COURTESY OF CORE PR

Neocity launches first Polish project

The first stage of Intenso should be completed in Q4 2012

18

www.wbj.pl

LOKALE IMMOBILIA – REAL ESTATE

APRIL 18-25, 2011

Investment land

San Leon Energy (SLE), an international group of firms focused on the exploration and production of oil and gas, has leased 545 sqm of office space in the Zebra Tower building in Warsaw. King Sturge was the leasing agent in the transaction. Located on ul. Mokotowska in the capital’s central district, Zebra Tower was completed in Q4 2010. It was developed by Austrian real estate company S+B Gruppe, which recently sold the property to Union Investment.

Ruch leases with Francuska Developer Globe Trade Centre has leased over 2,400 sqm of office space at its Francuska Office Centre project in Katowice, Silesia voivodship, to press distributor Ruch. The latter company will open its accounting services center in the facility this August. The first building in the Francuska Office Centre complex, which was completed in Q2 2010, offers almost 11,000 sqm of office space. Tenants include Bank Millennium, Nordea Bank, Philips Lighting and Berlitz. ●

Central Station, which sees 14 million of passengers per year, is nearby the real estate,” a representative of PKP said in a statement.

The land, located at the intersection of ul. Sucha and ul. Borowska, is covered by a revitalization plan for Wroc∏aw Central Station and its surroundings which was enacted by the voivod of Lower Silesia in 2009. In accordance with that plan, the land has been designated for the development of retail and services facilities. The western section of the plot is expected

Polish State Railways (PKP) is selling a 1.26 ha plot located near the center of Wroc∏aw.

The asking price for the land is z∏.35.6 million.

“This investment needs to be profitable. The land in question is located in an area not far from the center of Wroc∏aw, which is attractive and has an investment boom.

It has good transport links to the city and region. Wroc∏aw

to host a hotel, with commercial space to be developed along ul. Sucha.

According to the revitalization plan, buildings developed at the location can have a maximum height of six storeys.

Miko∏aj Martynuska, director of development consultancy at CB Richard Ellis, described the land as “a very interesting investment proposition on the map of Wroc∏aw.” He noted, however, that hotel space generally doesn’t command as high a price as well-planned office or retail space.

An interesting neighborhood to invest in?

It should also be noted that there is other land available in the market at attractive prices.

“Without in any way detracting from Wroc∏aw’s investment attractiveness, it’s important to

remember that this is a very competitive market,” Mr Martynuska concluded.

PKP is planning to open a tender for the land on May 17.

Katarzyna Piasecka

Goodman and Alpha to build Metro Group warehouse for TJX Europe expanding three TJX Europe has appointed Goodman and Alpha Industrial to develop a 26,900 sqm distribution and processing center in Wroc∏aw. Construction on the facility has already started and is scheduled to finish in November. The estimated value of the investment amounts to more than z∏.80 million.

According to the lease agreement, TJX will occupy the whole project for 10 years.

It will be located in northeastern Wroc∏aw, in the vicinity of a 25,700 sqm warehouse which Goodman built in 2008 for Whirlpool.

“The warehouse for TJX Europe is our second development in Wroc∏aw,” B∏a˝ej Ciesielczak, country manager for Poland at Goodman, said in a statement. He added that, due to its rapidly expanding transport infrastructure and the increasing number of industries located there,

retail centers COURTESY OF NBS COMMUNICATIONS

SLE signs with Zebra Tower

The land is centrally located, but Wroc∏aw is a “competitive market”

COURTESY OF PKP

PKP to sell Wroc∏aw plot

The TJX center is due to be completed in November Wroc∏aw has become an excellent location for companies involved in domestic and international distribution.

“We believe Wroc∏aw is a location with exceptional potential and that is why we have acquired an additional four hectares of land suitable

for the development of a further 19,000 sqm of logistics space,” Mr Ciesielczak said.

Goodman commenced its operations in Poland in 2005 and currently owns and manages over 100,000 sqm across the country.

Adam Zdrodowski

Real estate company Metro Group Asset Management is expanding M1-branded retail centers in Zabrze, Kraków and Cz´stochowa. The firm describes the expansion of existing retail facilities as one of the key elements of its strategy for this year.

After the expansion, the M1 center in Zabrze will offer an additional 9,000 sqm of retail space, with new tenants such as TK Maxx, Reserved, Cropp, Vobis, Bergson, Douglas, House and Rossmann.

The center’s food and service offer will also expand. The new section of the center is scheduled to open on June 1.

The M1 in Kraków is growing by 8,500 sqm, with the new section to open in November. It will add a num-

ber of new brands to its tenant mix, including McArthur, Swiss, Jacqueline Riu, Lavard and Denique.

Finally, the investment in Cz´stochowa is scheduled for completion in 2013. Together with the new section, the center will offer about 34,000 sqm of retail space, hosting 74 tenants.

Metro Group Asset Management is a subsidiary of international real estate concern Metro Group. The company’s Polish portfolio comprises nine M1 centers as well as Centrum Ursynów in Warsaw, Ster in Szczecin, Pasa˝ Grodzki in Jelenia Góra, Galeria Piastów in Legnica and Magnolia Park in Wroc∏aw.

Katarzyna Piasecka

MARKETS

APRIL 18-25, 2011

www.wbj.pl

Stocks report

world stock indices DJIA

NASDAQ

12,290.92 (Apr. 14 close)

S&P500

2,760.21 (Apr. 14 close)

-0.96% (for the week)

FTSE100

1,314.98 (Apr. 14 close)

-1.28% (for the week)

DAX

5,973.12 (Apr. 14 close)

-1.39% (for the week)

-0.57% (for the week)

Blue chips extend rally

NIKKEI225 7,151.20 (Apr. 14 close)

9,653.91 (Apr. 14 close)

-0.38% (for the week)

0.66% (for the week)

CHANGE: 6.16%

CHANGE: 3.12%

CHANGE: 4.56%

CHANGE: 1.24%

CHANGE: 2.55%

CHANGE: -6.75%

(year to Apr. 14)

(year to Apr. 14)

(year to Apr. 14)

(year to Apr. 14)

(year to Apr. 14)

(year to Apr. 14)

52-week high: 12,499.00

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: 11,316.70

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

Tomasz Jerzyk, technical analyst DM BZ WBK SA Polish stocks finished mixed last week, as blue chips extended their recent rally and the WIG20 index inched up by 0.47 percent. Smalland medium-cap stocks retraced some of their recent gains.

I have mixed feelings about the condition of the stock market, because when I look at the WIG20 or WIG indices I get the impression that they are strong and reluctant to drop. Any fall is treated as an buying opportunity.

On the other hand, on most days we see negative market breadth, and more stocks fall than rise. Major WSE indices are near their multi-month highs, but more and more listed stocks are setting new 52-week lows.

Last week the WIG20 was really strong, especially if we

Major indices WIG

49,847.57 (April 14 closure)

WIG20

2,906.85 (April 14 closure)

Closing 1.76 23.30 5.40 3.09 0.41

14.04

13.04

12.04

11.04

08.04

07.04

06.04

05.04

04.04

01.04

31.03

30.03

18.03

14.04

13.04

12.04

11.04

08.04

07.04

06.04

05.04

04.04

01.04

2,700

31.03

47,000 30.03

2,760

29.03

2,820

47,800

28.03

48,600

25.03

2,880

24.03

49,400

23.03

2,940

22.03

50,200

21.03

3,000

18.03

51,000

29.03

52-week low: 2,270.13

28.03

Change year to April 14: 5.52%

25.03

52-week low: 39,109.37

24.03

52-week high: 2,928.95

Change year to April 14: 4.61%

23.03

Change for the week: -0.75%

22.03

52-week high: 50,371.74

21.03

Change for the week: -1.04%

Top 5 ANTI WISTIL WIELTON KREZUS CALATRAVA

% change (week) 52-week high 16.56 4.63 16.50 30.90 14.89 5.40 14.44 3.09 13.89 0.43

52-week low 1.41 17.08 4.00 1.31 0.29

Top 5 CEZ PGE PKNORLEN PKOBP TAURONPE

Closing 143.50 23.22 57.00 46.15 6.31

% change (week) 1.06 1.00 0.88 0.33 0.00

52-week high 148.80 23.97 57.90 46.81 6.89

52-week low 118.70 19.70 35.48 36.15 5.04

% change (week) -47.25 -22.76 -19.26 -17.92 -14.11

52-week low 1.15 4.92 0.72 3.55 5.03

Bottom 5 TVN GETIN POLIMEXMS CYFRPOLSAT KGHM

Closing 17.29 14.75 3.54 16.38 190.20

% change (week) -4.84 -3.53 -2.21 -2.03 -2.01

52-week high 19.31 15.29 4.99 17.30 199.00

52-week low 15.95 9.35 3.33 13.36 88.20

Bottom 5 Closing BORYSZEW 1.15 MISPOL 4.92 ERG 1.09 CITYINTER 28.40 PETROLINVEST 9.01

52-week high 4.89 7.79 1.51 36.60 17.80

2,945.04 (April 14 closure)

sWIG80

More interest rate hikes?

12,703.16 (April 14 closure)

NewConnect

58.30 (April 14 closure)

WIG-Banki

7,338.90 (April 14 closure)

SOURCE: WSE

14.04

13.04

12.04

11.04

08.04

07.04

06.04

05.04

04.04

01.04

31.03

30.03

18.03

14.04

13.04

12.04

11.04

08.04

07.04

06.04

05.04

04.04

01.04

6,800 31.03

57.0 30.03

6,920

29.03

57.4

28.03

7,040

25.03

57.8

24.03

7,160

23.03

58.2

22.03

7,280

21.03

58.6

18.03

7,400

29.03

52-week low: 5,751.39

28.03

Change year to April 14: 5.41%

25.03

52-week low: 54.64

24.03

52-week high: 7,387.49

Change year to April 14: -8.06%

23.03

Change for the week: -0.66%

22.03

52-week high: 64.09

21.03

Change for the week: 0.57%

59.0

Adam Narczewski, X-Trade Brokers Dom Maklerski SA

14.04

13.04

12.04

11.04

08.04

07.04

06.04

05.04

04.04

01.04

31.03

30.03

18.03

14.04

13.04

12.04

11.04

08.04

07.04

06.04

05.04

04.04

12,500 01.04

2,800 31.03

12,600

30.03

2,840

29.03

12,700

28.03

2,880

25.03

12,800

24.03

2,920

23.03

12,900

22.03

2,960

21.03

13,000

18.03

3,000

29.03

52-week low: 10,980.45

28.03

Change year to April 14: 3.70%

25.03

52-week low: 2,361.69

24.03

52-week high: 12,907.99

Change year to April 14: 4.89%

23.03

Change for the week: -1.59%

22.03

52-week high: 2,987.72

21.03

Change for the week: -1.43%

take into account the fact that both crude oil futures and copper futures fell.

Shares in the Warsaw Stock Exchange itself (GPW) were in the spotlight, as those shares were upgraded to a much higher target price by top global investment bankers. GPW shares surged by eight percent and managed to cut most of their earlier losses.

There was also a lot of talk in the media about the WSE, since 20 years have now passed since trading was restarted after Poland’s transition to a free-market economy.

Optimus was also actively traded, as the company announced it would prepare a million copies of the “The Witcher 2” video game. The firm’s shares rose eight percent. ●

Currency report

Other indices mWIG40

19

The news of the week on the local market was Poland’s 4.3 percent inflation growth, as reported by the Central Statistical Office. Global oil and food prices are reaching record highs and this has a direct effect on prices in Poland.

Most Monetary Policy Council (RPP) members favor another interest hike in May (either by 25bp or 50bp) but some are still reluctant, including central bank president Marek Belka. He stated that the RPP cannot act based on just one publication, but has to take a longer period into consideration.

I agree with this approach since the main drivers of inflation are two factors that the central bank cannot control – energy and food. Hiking interest rates will not help if prices of oil and soft com-

modities keep increasing on global exchanges.

Nevertheless, the z∏oty appreciated after the news as investors do expect a hike.

After a short corrective upward movement, the EUR/PLN dropped below the z∏.3.94 level on the interbank market, while the USD/PLN slightly declined to z∏.2.73. Volatility dropped this past week and currency movements were stable.

The first quarter reporting season began last week in the US with disappointing figures from Alcoa. It is still too early to judge, but analysts expect earnings of S&P500 companies to increase by 11 percent compared to last year’s first quarter.

The EUR/USD, after reaching $1.45 (a 15-month high) dropped slightly to finish the week at $1.4450. ●

currency rates 3.2670

3.2822

13.04

14.04

3.2784

3.2667 12.04

15.04

3.2526 11.04

SOURCE: NBP

3.2258 3.0

08.04

0.0967 15.04

0.0966

0.0974 13.04

12.04

PLN-100JPY

3.5

14.04

0.0979 0.08

08.04

3.0596 15.04

3.0563 14.04

3.0571 13.04

3.0502 12.04

3.0284 11.04

3.0097 2.5

08.04

4.4584 15.04

4.4615 14.04

4.4607 13.04

4.4711 12.04

4.4960 11.04

4.5096 4

08.04

2.7293 15.04

2.7297 14.04

2.7421 13.04

2.7511 12.04

2.7501 11.04

2.7489 08.04

2.5

0.0977

PLN-RUB

0.10

0.0982

PLN-CHF

3.5

3.9479 15.04

14.04

13.04

12.04

11.04

08.04

3.5

PLN-GBP

5

11.04

PLN-USD

3.0

3.9498

3.9756

3.9726

3.9594

3.9758

PLN-EUR

4.5

20

THE LIST

www.wbj.pl

APRIL 18-25, 2011

Education

Training Companies Ranked by revenue from training courses in 2009

www.bookoflists.pl

Finance and accounting / Corporate management / HR management / Stress management

Marketing / Law / Advertising / Computer usage

Negotiations / Sales / Presentations / Leadership

Project management / Customer service / PR

Rank

Courses

21.3 21.0 25.1

25.1 24.5 28.4

25,000 14,800 20,600

✓ ✓ ✓

-

✓ ✓ ✓

✓ ✓ -

Ken Blanchard Companies; Strategy, coaching, communication, The Ocean Strategy multicultural and shift management Celemi; Blue Network

70 26 2004

Aleksander Drzewiecki

Gdaƒska Fundacja Kszta∏cenia Mened˝erów ul. Pomorska 68, 80-343 Gdaƒsk 58 558-5858/58 557-2733 gfkm@gfkm.pl, www.gfkm.pl

18.0 16.4 13.0

18.4 16.8 13.2

4,800 4,500 4,000

✓ ✓ ✓ ✓

✓ ✓ ✓ ✓

✓ ✓ ✓ ✓

✓ ✓ ✓

Rotterdam School of MBA studies; strategy games; Management; IAE-Aix-enleadership; development programs Provence; European Foundation for Management Development

130 35 1990

Wojciech Rybowski

Centrum Edukacji Sp. z o.o. ul. Kobyliƒskiego 25, 09-400 P∏ock 24 365-8612/24 365-8624 ce@centrumedukacji.pl, www.centrumedukacji.pl

16.9 13.4 7.0

16.9 13.4 7.0

6,335 7,283 6,110

✓ ✓ ✓ ✓

✓ ✓ ✓ ✓

✓ ✓ ✓ ✓

✓ ✓ ✓

Talent management; technical training

Warsaw School of Economics; The Leon Koêmiƒski Academy; Gdaƒsk Foundation for Management Education

138 30 1999

Tadeusz Rutkowski

15.5 15.5 15.6

15.5 15.5 15.6

WND WND WND

✓ ✓ ✓ ✓

✓ ✓ -

✓ ✓ ✓ ✓

✓ ✓ ✓

WND

ACCA; IIA Polska; CFA Institute; PMI; Warsaw School of Economics

25 35 1993

Marinos Athanassiou

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

Revenue from training Total revenue courses (z∏. mln) (z∏. mln)

Number of graduates

2009 / 2008 / 2007

House of Skills SA ul. Flisa 4, 02-247 Warsaw 1 22 577-4040/22 577-4047 office@weknowhow.pl, www.weknowhow.pl 2

3

Ernst & Young Academy of Business Sp. z o.o.(1) Al. Armii Ludowej 26, 00-609 Warsaw 4 22 579-8000/22 579-8001, academyofbusiness@pl.ey.com www.ey.com.pl/academyofbusiness

Other

Cooperation with schools, companies, institutions

Number of trainers / Full-time employees / Year founded

Top local executive / Title

President

President

President

President

5

INFOR Training Sp. z o.o. ul. Okopowa 58/72, 01-042 Warsaw 22 530-4401/22 530-4309 szkolenia@infor.pl, www.szkolenia.infor.pl

14.1 18.8 17.1

14.1 18.8 17.1

18,402 18,666 23,500

✓ ✓ ✓ ✓

✓ ✓ ✓

✓ ✓ ✓ ✓

✓ ✓

Controlling; training for coaches; coaching; training for public administration

-

123 40 1984

Jolanta Adamczyk

6

Nowe Motywacje Sp. z o.o. ul. Ehrenberga 15, 31-309 Kraków 12 626-7650/12 638-0188 biuro@nm.com.pl, www.nm.com.pl

11.2 9.6 7.7

12.9 9.9 9.0

13,344 12,560 9,809

✓ ✓ ✓

-

✓ ✓ ✓ ✓

✓ ✓ -

Interpersonal communication; coaching; training for coaches; integrational training

Schouten & Nelissen; American Society of Training and Development

64 49 1997

Grzegorz Jachna

7

MDDP Sp. z o. o. Akademia Biznesu Sp. k. ul. Domaniewska 39A, 02-672 Warsaw 22 890-2826/22 211-2090 biuro@akademiamddp.pl, www.akademiamddp.pl

10.0 WND WND

10.0 WND WND

10000 WND WND

✓ ✓ -

✓ -

✓ ✓ -

✓ ✓ -

WND

The Leon Koêminski Academy; University of ¸ódê

WND 17 2007

Adam Niedzió∏ka

8

Worldwide School Sp. z o.o. ul. Zakopiaƒska 8, 03-934 Warsaw 22 518-8950/22 518-8951 in-company@worldwideschool.pl, www.worldwideschool.pl

9.0 9.0 7.2

9.0 9.0 7.2

5,900 5,700 5,100

✓

✓ -

✓ ✓ ✓

✓ -

General, business, legal, financial, medical English; English for Specific Purposes (ESP)

LTS Training and Consulting

150 WND 1990

Magdalena Kàkolewska; Agnieszka Piechowska

WND WND WND WND

WND WND WND WND

WND WND WND

President

President

Managing Partner

Partners

Mazowieckie Centrum Szkoleƒ Sp. z o.o. ul Sobieszyƒska 30, 00-764 Warsaw 9 22 839-5599/22 839-5598 mcs@mcs.edu.pl, www.mcs.edu.pl

8.9 4.2 6.1

8.9 4.2 6.1

6,995 2,416 6,997

WND WND WND WND

PROFES Centrum Kszta∏cenia i Doradztwa S.j. ul. Koreaƒska 13, 52-121 Wroc∏aw 10 71 341-2951/71 335-2279 biuro@profes.com.pl, www.profes.com.pl

7.3 5.3 6.8

9.5 6.6 8.2

WND WND WND

✓ ✓

-

✓ ✓ ✓ ✓

✓ ✓ -

✓ ✓

✓ ✓

✓ -

Stock market

The Leon Koêmiƒski Academy; AGH University of Science and Technology

120 340 1991

Andre Helin

BDO Sp. z o.o. ul. Post´pu 12, 02-676 Warsaw 10 22 543-1600/22 543-1601 office@bdo.pl, www.szkolenia-bdo.pl 12

United Business Development Sp. z o.o. (AchieveGlobal) ul. Krasiƒskiego 41A, 01-755 Warsaw 22 379-0100/22 833-9313 ag@achieveglobal.pl, www.achieveglobal.pl

13

FPL Sp. z o.o. ul. Piramowicza 9, 90-254 ¸ódê 42 630-0900/42 630-3993 fpl@fpl.pl, www.fpl.pl

WND

WND

WND WND 1998

Marcin Ma∏ecki

WND

Kaizen Institute; Eurians; Central Connecticut State University

WND 45 1993

Ewa KarpiƒskaBryke; Artur Olszewski; Mariusz Bryke

President

Co-owners

7.3 5.7 6.7

56.4 50.2 WND

12,500 9,000 9,000

✓ ✓ ✓ ✓

5.8 7.6 7.8

5.8 7.6 7.8

2,058 4,500 5,200

-

-

✓ ✓ ✓ ✓

✓ ✓ -

Improving customer relationships; leadership in organization development system building; diagnosis of organization culture

AchieveGlobal International; Kepner-Tregoe; Human Synergistics International

18 18 1994

Peter Strupp

5.4 4.8 WND

6.5 5.8 7.4

4,812 3,178 3,976

✓ ✓ ✓ ✓

-

✓ ✓ ✓ ✓

✓ ✓ -

Emotional intelligence EQ; management coaching; quality systems; training workshop: Train the Trainer; commitment management

Com’ in; Altedia

60 17 1994

Jolanta Krokowska

4.7 3.2 3.3

4.7 3.2 3.3

WND WND WND

✓ ✓ ✓

✓ ✓ -

✓ ✓ ✓ ✓

✓ ✓ ✓

Management; valuation system; organizational advisory; coaching

Bollman & Partner; PPI Network; Advisio

WND 14 1995

Marek Ma∏kowicz

4.5 5.1 WND

4.5 5.1 4.4

2,620 3,582 3,641

✓ ✓ ✓

-

✓ ✓ ✓ ✓

✓ ✓ -

WND

WND

WND WND 1995

Marta Deptu∏a

3.8 6.0 4.1

9.4 9.7 6.9

2,968 3,082 2,341

-

-

-

✓ ✓ -

IT management according to ITIL; support center management

Fox IT; GamingWorks; G2G3 Group

12 14 2000

Bartosz Górczyƒski

3.7 3.6 WND

3.7 3.6 3.0

4,200 4,000 3,500

✓ ✓

-

✓ ✓ ✓ ✓

✓ ✓ -

WND

Landesverband der Polnishen Ingenieure und Techniker in Deutschland Baden Wurtemberg / Bayern

WND WND 1996

Monika G∏odziƒska

President

General Manager

President

14

INTEGRA Consulting Marek Ma∏kowicz ul. Âciegiennego 84A, 60-147 Poznaƒ 61 661-3080/61 661-3080 biuro@integra-consulting.pl, www.integra-consulting.pl

15

GB Resources Polska Sp. z o.o. ul. Skrzetuskiego 37A, 02-726 Warsaw 22 847-9889/22 847-9849 gbr@gbr.pl, www.gbr.pl

16

CT Partners ul. Pandy 12, 02-202 Warsaw 22 576-8080/22 576-8081 ctpartners@ctpartners.pl, www.ctpartners.pl

17

Personel Profit Sp. z o.o. ul. Obroƒców Westerplatte 37, 81-706 Sopot 58 555-3399/58 550-4511 biuro@personelprofit.com.pl, www.personelprofit.com.pl

18

Infovide-Matrix SA ul. Prosta 51, 00-838 Warsaw 22 440-2500/22 440-2501 infovidematrix@ivmx.pl, www.infovidematrix.pl

3.0 3.6 2.3

209.2 213.7 224.9

1,170 1,210 1,712

-

-

-

✓ -

Business Intelligence; software testing

APM Group; Project Management Institute; Novare Consulting

WND WND 1991

Jan Maciejewicz

19

Vademecum - Konferencje i Szkolenia Sp. z o.o. ul. Jastrz´bia 23, 53-148 Wroc∏aw 71 341-8510/71 341-8510 vade@vade.com.pl, www.vade.com.pl

2.8 3.0 2.5

2.8 3.0 2.5

1,918 2,561 2,529

✓ ✓ ✓ ✓

✓ ✓ ✓

✓ ✓ ✓ ✓

✓ ✓ -

WND

Oxford – English language training for business

WND 9 1995

Natalia Rudolf Niewójt

20

Mi´dzynarodowa Szko∏a BankowoÊci i Finansów Sp. z o.o. ul. Koszarowa 6, 40-068 Katowice 32 251-7823/32 251-7823 msbif@isbf.katowice.pl, www.isbf.katowice.pl

2.7 2.1 1.9

2.8 2.2 2.2

2,992 4,296 4,315

✓ ✓ ✓

✓ ✓ -

✓ ✓ ✓ ✓

✓ ✓ -

Banking Academy; recognition of the authenticity of monetary units; financial and credit analysys; counteracting money laundering; investment capital analysis

European Bank Training Network; HEE Association Franco-Polonaise pour les Hautes Etudes Europénes; Markets International

200 18 1991

Aleksandra Rost

21

Doradca Consultants Ltd. Sp. z o.o. ul. WolnoÊci 18A, 81-327 Gdynia 58 621-0331/58 621-9927 office@doradca.com.pl, www.doradca.com.pl

2.6 2.3 2.4

5.1 5.6 11.6

1,296 1,276 940

✓ ✓ ✓ -

✓ -

✓ ✓ ✓ -

✓ ✓ -

Quality management; environmental management; health and safety at work, food safety management

Huthwaite International; Jeff Monk Training; STS Sauter Training and Simulation

20 45 1985

Jaros∏aw Zysnarski

Owner; Managing Director

President

President

Board Member

President

President

President; General Director

President

THE LIST

APRIL 18-25, 2011

www.wbj.pl

21

Marketing / Law / Advertising / Computer usage

Negotiations / Sales / Presentations / Leadership

Project management / Customer service / PR

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

Finance and accounting / Corporate management / HR management / Stress management

Rank

Courses

2.6 1.9 1.6

4.3 4.9 3.9

6,000 4,500 2,000

✓ ✓ ✓

✓ -

✓ ✓ ✓ ✓

✓ -

2.3 1.2 2.3

2.3 1.2 2.3

519 261 868

✓ ✓ ✓ ✓

✓ -

✓ ✓ ✓

✓ ✓ -

Revenue from training Total revenue courses (z∏. mln) (z∏. mln)

Number of graduates

2009 / 2008 / 2007

21

ProFirma Sp. z o.o. ul. Podolska 21, 81-321 Gdynia 22 314-7183/22 314-7184 warszawa@profirma.pl, www.profirma.pl

Stowarzyszenie ds. Badania Pracy i Organizacji Przedsi´biorstwa REFA Wielkopolska 23 ul. Rubie˝ 46 C3, 61-612 Poznaƒ, 61 827-9410/61 827-9411 biuro@refa.poznan.p, www.refa.poznan.pl

Other

of Cooperation with Number trainers / schools, Full-time companies, employees / institutions Year founded

Top local executive / Title

Leon Koêmiƒski Emotional intelligence; motivation; decision The Academy; Gdaƒsk making; influencing University of Technology

30 10 2000

Jaros∏aw Chybicki

Work process management; work timing controlling; production planning and controlling; cost calculation; quality management

REFA Bundesverband; Transferzentrum für Neurowissenschaften und Lernen; Fraunhofer IPA

57 14 1995

Beata Nowaczyk

Co-owner

President

24

Training Partners Sp. z o.o. ul. Jasnogórska 9, 44-100 Gliwice 32 332-7430/32 332-7431 trenerzy@trenerzy.pl, www.trenerzy.pl

2.2 3.5 3.0

2.2 3.5 3.0

4,010 7,300 6,330

✓ ✓

-

✓ ✓ ✓ ✓

✓ ✓ -

Transactional analysis; motivation; delegation; emotional intelligence; Train the Trainer

WND

18 11 2002

Jan Màdry

25

Moderator Sp.c. ul. Stab∏owicka 7A, 54-058 Wroc∏aw 71 354-2234/71 787-4583 moderator@moderator.wroc.pl, www.moderator.wroc.pl

1.8 2.0 2.0

1.8 2.0 2.0

1,700 1,900 2,000

✓ ✓

-

✓ ✓ ✓ ✓

✓ ✓ -

Coaches and coaching school

WND

10 2 1999

Tomasz Witkowski; S∏awomir Jarmu˝

1.7 1.3 WND

1.7 1.3 10.9

8,080 4,100 4,500

✓ ✓ ✓

✓ -

✓ ✓ ✓ ✓

✓ ✓ -

Call center training - manager and operational personnel

25 7 2001

Marzena Sawicka

WND

1.6 1.2 0.8

1.6 1.2 0.8

5,500 4,000 1,700

✓ ✓ ✓ ✓

✓ ✓ ✓ ✓

✓ ✓ ✓ ✓

✓ ✓ ✓

Manager meeting; trade negotiations; project management

WND

25 11 2006

Kamil Kita

1.5 WND WND

WND WND WND

WND WND WND

-

-

✓

-

Coaching

Accreditation of International Coach Federation

20 6 2000

Pawe∏ Sopkowski

WND

23 5 2005

Ewa Kastory; Miros∏awa Kownacka

President

Co-owners

26

Communication One Consulting Sp. z o.o. ul. Marynarska 11, 02-674 Warsaw 22 444-0433/22 444-0400 info@commone.pl, www.commone.pl

27

Lauren Peso Polska Sp. z o.o. ul. Dàbrowskiego 48, 41-500 Chorzów 801-009-517/32 445-0500 biuro@laurenpeso.pl, www.laurenpeso.pl

28

Coaching Center ul. Narbutta 5/1, 02-564 Warsaw 22 848-0551/22 646-2046 coaching@coachingcenter.pl, www.coachingcenter.pl

29

Grupa training & consulting Sp. c. ul. Rzymska 22/1, 03-976 Warsaw 22 353-0659/22 843-3365 grupa@grupatc.pl, www.grupatc.pl

1.4 1.5 1.0

1.4 1.5 1.0

585 590 662

✓ ✓ ✓

-

✓ ✓ ✓ ✓

✓ ✓ -

Negotiations School; Group Training School

30

SYNTEZA (Szkolenia-Konsulting) ul. Moniuszki 26A, 41-902 Bytom 32 281-6231/32 281-2852 szkolenia@synteza.pl, www.synteza.pl

1.2 0.9 WND

1.5 WND WND

1,027 WND WND

✓ ✓ ✓

✓ ✓ ✓ -

✓ ✓ ✓ ✓

✓ ✓ ✓

Internal control; claim service; innovation thinking

WND

37 3 1993

Adam Pilarczyk

30

ITS Education Sp. z o.o. (Midwest ITSE) ul. Zeusa 81, 01-497 Warsaw 22 638-0986/22 638-0878 midwest@midwest.pl; www.midwest.pl

1.2 1.5 2.0

1.2 1.5 WND

870 1,000 1,350

✓ ✓ ✓

✓ ✓ -

✓ ✓ ✓ ✓

✓ ✓ ✓

E-marketing; e-PR; media training; assessment/development center; recruitment and employee valuation

WND

WND 7 1996

Kamila Brzost

30

MPM Productivity Management Sp. z o.o. os. Na Murawie 13/2A , 61-655 Poznaƒ 61 820-9266/61 820-9464 biuro@mpm24.com, www.mpm24.com

1.2 2.1 1.7

1.2 2.1 1.7

720 1,500 1,350

-

0

-

-

Production and logistics; CPIM according to APICS standards (Production and Supply Management Certification); lean manufacturing; traffic management TPM; purchasing management; forecasting

APICS; IPICS

7 6 1998

Agata BuszczakM´cina

1.1 1.4 WND

1.1 1.4 0.7

1,500 1,800 2,500

✓ ✓ ✓

✓ ✓ -

✓ ✓ ✓ ✓

✓ ✓ ✓

WND

WND

15 2 1990

Marek Ska∏a

1.0 1.1 1.1

1.0 1.1 1.1

890 995 980

✓ ✓

✓ -

✓ ✓ ✓ ✓

✓ ✓ ✓

WND

WND

15 5 1999

Piotr WiÊniewski

SPW

12 3 2003

Ma∏gorzata Tobiszewska

The Protocol School of Washington

4 1 1999

Irena KamiƒskaRadomska

Managing Director

Co-owner

Managing Partner

Partners

Director

Managing Director

President; Sales Director

33

Megalit Instytut Szkoleƒ ul. U∏anów 46/20, 31-455 Kraków 12 413-7679 marek.skala@megalit.pl, www.megalit.pl

34

Certus Centrum Szkolenia i Doradztwa Sp. z o.o. ul. Dobrowoja 11, 04-003 Warsaw 22 870-7001/22 870-7002 certus@szkoleniacertus.com.pl, www.szkoleniacertus.com.pl

35

Instytut Rozwoju Kadr ul. Lendziona 16/17, 80-264 Gdaƒsk 58 346-1400/58 346-1400 biuro@irk.com.pl, www.irk.com.pl

0.5 WND WND

0.8 WND WND

521 445 321

✓ ✓ ✓

✓ -

✓ ✓ ✓

✓ ✓ ✓

WND

The Protocol School of Poland ul. Grottgera 5/8, 00-785 Warsaw 604-497-559/22 841-2371 protocol@protocol.pl, www.protocol.pl

0.5 0.6 WND

0.5 WND WND

WND WND WND

-

-

✓ ✓ -

✓ ✓

Diplomatic protocol; business etiquette; public performance in English; art of correspondence

0.2 0.5 0.5

1.0 1.7 1.8

70 WND WND

✓ ✓

✓ -

✓ ✓ ✓ ✓

✓ ✓ -

WSB-NLU Nowy Sàcz; Motivation of subordinates; change Academy in management; recruitment; competencies; Economy Katowice; employee evaluation; sales VisionConsultingGroup

20 12 2002

Agnieszka Bornus

35

Owner

President

Owner

Owner

37

Grupa Tempo Sp.c. ul. Górnych Wa∏ów 16, 44-100 Gliwice 32 335-3232/32 331-7525 biuro@grupatempo.pl, www.grupatempo.pl

NR

BEAVER Doradztwo Personalne ul. Piwna 3, 91-003 ¸ódê 42 630-2250/42 632-5634 szkolenia@beaver.com.pl, www.beaver.com.pl

WND WND WND

WND WND WND

WND WND WND

✓ ✓ ✓

✓ -

✓ ✓ ✓ ✓

✓ ✓ ✓

ABC management for supervisors of production groups; employee recruitment and selection; coaching skills development

University of ¸ódê

WND WND 1992

Anna Subczyƒska

NR

Controlling Partner Al. KEN 46/U4, 02-797 Warsaw 22 374-8002/22 845-6078 biuro@controllingpartner.pl, www.controllingpartner.pl

WND WND WND

WND WND WND

WND WND WND

✓ ✓ -

-

-

-

Budgeting; controlling; strategic planning; MS Excel in controlling

ICV; Nord Controlling; BDO

5 WND 2007

Edyta Szarska

NR

Exbis Eksperci Biznesmenom - Szopa i Szóstak Sp. j. ul. Krasiƒskiego 29, 40-019 Katowice 32 609-7109/32 255-3592 info@exbis.pl, www.exbis.pl

WND 1.1 WND

0.6 1.1 1.5

2200 2700 3600

✓ ✓ ✓

✓ -

✓ ✓ ✓ ✓

✓ -

WND

Change International; Core Commit; DC Gardner

WND WND 1992

Marek Szopa; Andrzej Szóstak

WND WND WND

WND WND WND

630 820 930

✓ ✓ ✓ ✓

✓ -

✓ ✓ ✓ ✓

✓ ✓ -

WND

WND

50 17 2000

Robert Krawczyk

WND WND WND

WND WND WND

WND WND WND

✓ ✓ ✓ ✓

✓ ✓ -

Soft Skills

WND

10 10 1995

Joanna Rostek; Patrick Trompiz

Future Centre Training Corporation Krawczyk i Lipczyƒski Sp. j.

NR ul. Mariensztat 8, 00-302 Warsaw 22 538-9111/22 538-9200 info@futurecentre.eu, www.futurecentre.eu NR

Sympozjum Joanna Rostek&Patrick Trompiz ul. Lwowska 2A/47, 00-658 Warsaw 22 875-8578/22 875-8599 office@sympozjum.edu.pl, www.sympozjum.edu.pl

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

Footnotes: (1) Financial year July 1-June 30

Partner

Training Manager

WND

Managing Partners

Managing Director

Partners

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 18-25, 2011

Shakira comes to town

Of evil and witchcarpets “The Dynamic Dead Roee Rosen” April 21 – July 3 Centre for Contemporary Art Israeli artist Roee Rosen is a painter, writer, filmmaker and theoretician. Considered one of the most important artists working in Israel today, Rosen’s big break came with “Live and Die as Eva Braun,” presented at the Israel Museum in Jerusalem in 1997. In this artistic spectacle he created a visual and literary narrative allowing the viewer to see history through the eyes of Hitler’s mistress.

Rosen’s latest exhibition, “The Dynamic Dead Roee Rosen,” comprises this seminal work as well as four others: “Justine Frank,” “Hilarious,” “The Funeral Paintings” and “The Confessions of Roee Rosen.”

The latter is a film in which Rosen “possesses” his subjects, namely three illegal immigrants working in Israel, and has them read his own confession in Hebrew. They read his controversial texts, stumbling over the words, without comprehending the meaning. “The Confessions of Roee Rosen” is interspersed

with other content, including a trailer in which the artist’s son previews the “evil” to come in halting, irregular English. The effect is at turns disturbing and amusing – like when the subtitles refer to “nasty witchcraft” as Rosen’s son warns ominously of “nasty witchcarpet.”

“The Dynamic Dead Roee Rosen” officially opens on April 21, but Roee Rosen is in town a day earlier to launch the exhibition and answer questions. The event starts at 6 pm at CSW. ● For more info, log on to www.csw.art.pl

Get an Insider’s glimpse at all that Warsaw has to offer with the Warsaw Insider!

Known for megahits such as “Whenever, Wherever” and “Hips Don’t Lie,” the barefoot diva brings her “Sun Comes Out World Tour” to Poland next month.

Britain’s The Guardian has deemed the concert “a surreal and thought provoking show,” and, judging by the success of Shakira’s last tour, fans should prepare for an audio-visual extravaganza.

The concert’s in ¸ódê, which isn’t the most convenient location for Varsovians, but expect tickets to go fast. ●

COURTESY OF WIKIMEDIA COMMONS

COURTESY OF CSW

Shakira in concert May 17, 6 pm Atlas Arena in ¸ódz

Shakira comes to Poland May 17 Tickets from z∏.154. For more info or tickets, log on to

www.atlasarena.pl or www.eventim.pl

New scene at Fotoplastikon “A London of Two Generations” and Patryk Zakrocki from SzaZa April 21 Warsaw Fotoplastikon On the Thursday, April 21, Warsaw’s Fotoplastikon opens a new exhibition of photographs titled “A London of Two Generations.” The photos, taken by Polish immigrant Marek Witkowski and his son, chronicle the changes happening in London over a 50 year span. Subjects include St Paul’s Cathedral, Trafalgar Square, the industrial bank of the Thames and the quiet streets of the city’s outskirts.

The Fotoplastikon is a cir-

COURTESY OF KASIA CHMURA-CEGIELKOWSKA /WARSAW UPRISING MUSEUM

Patryk Zakrocki cular, late 19th-century machine which displays photos in three dimensions. It’s located at Al Jerozolimskie 51, in the city center.

The opening of “A London of Two Generations” will be

accompanied by a concert from violinist and composer Patryk Zakrocki, who will play inside the Fotoplastikon machine itself. Mr Zakrocki is one of the most active figures of Warsaw’s improvisational music scene. ●

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

Warsaw’s most popular Englishllanguage lifestyle lif t l magazine i ffeatures: t :

Galeria Foksal ul. Foksal 1-4 www.galeriafoksal.pl

• top shopping reviews and listings • monthly calendar of parties, eventss and exhibitions • latest art, design, fashion and beauty trends • hotel, spa and fitness club reviews • up-to-the-minute resto, bar, cafe and club reviews

Galeria Milano Rondo Waszyngtona 2A (Praga) www.milano.arts.pl

Subscribe to the Insider! Contact t t kwilinski@valkea.com k ili ki lk

Galeria Schody ul. Nowy Âwiat 39 www.galeriaschody.pl

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 18-25, 2011

www.wbj.pl

23

Tech Eye

Some food – and beverage – for thought

tal drinks maker (www.sodastream.com), a lithe little machine which makes carbonated beverages in a svelte glass carafe. Techeye’s not

a huge fan of carbonated water, but you can mix in a number of syrups to make it more palatable. The company’s 60+ flavors include green tea, cola, raspberry and a bunch of others (no Olde English 800, sadly).

The basic unit will run you around $180 (z∏.493) on Amazon, but keep in mind that the Crystal requires carbonating refills and syrups, so we’re not talking about a one-off purchase.

The final gizmo we’re considering, the WilliamsWarn personal brewery (www.williamswarn.com), doesn’t produce the kind of beverages which the average nutritionist would approve of. But this beer is homemade, and homemade is always healthier than store-bought, right?

The makers of the WilliamsWarn are at pains to differentiate “personal brewing” from homebrewing. Their version gives you 23 liters of beer after just seven days, compared to weeks for homebrew. It also carbonates the beer during fermentation, rather than after, and you don’t have to fill your closet with tens of bottles which your

children/significant other invariably complain about and often break.

On the other hand, family members will probably complain if you try to squeeze a waist-high, shiny monolith of metal into your closet.

Thus the WilliamsWarn might be best for the unmarried or newly divorced, provided they’ve got $4,500 (z∏.12,345) to spare, plus cash for brewing supplies. Techeye’s not too worried though. We’ll just tell our family it’s what the doctor ordered. ●

COURTESY OF WILL IAMSWARN

COURTESY OF SODASTREAM

This is the kind of tech that’s going to help us live a long, happy life.

Then there’s SodaStream’s Crys-

JURA

Unfortunately, our doctor doesn’t agree. He’s been whinging lately about our diet and fluid intake, something about kidney stones, ulcers, spontaneous combustion, that sort of thing. We don’t usually listen to doctors, but the last kidney stone we had was roughly the size of Rhode Island and its passage resulted in weeks of postpartum depression. So we’ve resolved to eat carrots now and again, and to healthify our drinking regime.

Step one in our new lifestyle plan (aka “Operation: Don’t Die Yet, Fatso”) is to purchase some cutting-edge beverage technology. And the first item we’re considering is Swiss manufacturer Jura’s Impressa J9 One Touch coffee machine (www.jura.com).

Price: somewhere around $3,700.00 (z∏.10,300).

The J9 has all the necessary bells and whistles. Cappucino frother? Check. Adjustable coffee strength? Check. Active bean monitoring? Oh yeah, baby. There’s even a “monitored aroma preservation cover” so that you can, you know, monitor your aroma preservation.

COU RTES Y OF

“You are what you eat,” or so the adage goes. By that wisdom, Techeye is leftover Chinese food and frozen pizzas splashed with tabasco sauce.

That’s not the most appealing of existential states, which is probably why we’ve never been fond of the expression. In fact, we’d put forth “you are what you drink” as a superior alternative. That way on any given day Techeye can be two large cafe lattes, a Dr Pepper, a sip of water, an appletini and a six-pack of Olde English 800.

Now that is a worthy state of being.

Ever passed a kidney stone the size of a small administrative district? Let us know: techeye@wbj.pl

sare_268x81.ai

22-03-10

13:25:37