April macro data suggests a June interest rate hike. Or does it?
Coal miner JSW has posted strong Q1 results ahead of its IPO 5
4
WWW.WBJ.PL
11
The raid of a blogger’s home has raised questions about freedom of speech in Poland
VOLUME 17, NUMBER 21 • MAY 30 – JUNE 5, 2011 . z∏.12.50 (VAT 8% included) . ISSN 1233 7889 INDEX-RUCH-332-127
REAL ESTATE
Since 1994 . Poland’s only business weekly in English
Obama mania
COURTESY OF WIKIMEDIA COMMONS
Lokale Immobilia
Love him or leave him, the US president’s visit created quite a stir. But what about its longterm implications for the Polish-US relationship?
• National Stadium concerns • Galeria Mokotów sold • Echo’s new projects 15-19
3, 12-14
In this issue News . . . . . . . . . . . . . . . . . . . . . . .2-4 Industry News . . . . . . . . . . . . . . .5-6 Opinion . . . . . . . . . . . . . . . . . . . . . . .7 Interview . . . . . . . . . . . . . . . . . . .8-9 Health Care in Focus . . . . . . . . . .10 Business Environment . . . . . . . . .11 Cover Story . . . . . . . . . . . . . . .12-14 Lokale Immobilia . . . . . . . . . .15-19 The List . . . . . . . . . . . . . . . . . . . . . .20 Markets . . . . . . . . . . . . . . . . . . . . .21 Arts & Culture . . . . . . . . . . . . . . . .22 Last Word . . . . . . . . . . . . . . . . . . . .23
Summit boycott
COURTESY OF THE WHITE HOUSE
The presidents of Serbia and Romania took umbrage with Kosovo’s attendance at last week’s CEE summit 3
United by fission? Poland’s PGE and Russia’s Rosatom are thinking about doing business together
5
2
NEWS
www.wbj.pl
Poland backs Lagarde
Ma∏gorzata Dydek, the most famous Polish female basketball player in history, died on Friday in a hospital in Brisbane, Australia. Ms Dydek was four months pregnant and doctors were also unable to save her child. The 37year-old former WNBA player had been in a medically-induced coma for several days before her death after suffering a heart attack on May 19.
TNK-BP bids for Lotos Moscow-based oil producer TNK-BP, BP Plc’s Russian joint venture, has submitted a non-binding bid to buy a stake in Poland’s secondlargest oil refiner Grupa Lotos, Russian daily Kommersant reported. According to unnamed sources with knowledge of the sale cited by the paper, TNK-BP is the only Russian bidder for the asset. Gazprom Neft and Rosneft, which earlier were considering taking part in the tender, did not submit bids, the newspaper reported. The Polish government is offering a 53% stake in Grupa Lotos, to raise cash for financing the budget deficit and curb debt.
Secret NATO meeting Last Wednesday, commanders of special forces of all 28 NATO countries and partner states attended a special two-day meeting in Kraków. For security reasons, the summit was kept a secret until the last minute. ●
Numbers in the News
4.2% is the Economy Ministry’s latest GDP growth estimate for 2011
z∏.1 million is the estimated cost of preparing Warsaw for US President Barack Obama’s visit. The cost of the president’s full stay will be much greater
6 US presidents previously visited Poland: Nixon, Ford, Carter, George H. W. Bush, Bill Clinton and George W. Bush COURTESY OF POLITIKA NEWSPAPER
Basketball player Dydek dies
Ratko Mladiç
IN THE SPOTLIGHT
21 national leaders were in Warsaw last Friday for the 17th Meeting of Presidents of Central European States
Quote of the Week
Ratko Mladiç, chief of staff of the Bosnian Serb Army during the 1992-1995 Bosnian War, was arrested by Serbian security forces last week after almost 16 years on the run. He is accused of numerous crimes committed during the war, including commanding the force which perpetrated the Srebrenica massacre of July 1995, in which over 8,000 Muslim Bosniaks died. Mr Mladiç has been wanted by the International Criminal Tribunal for the Former Yugoslavia since 1995. A reward was offered for anyone who helped capture the alleged war criminal. Serbian authorities stressed earlier this year that reconciliation is a policy priority for the country. “That is why we will contin-
ue to fully cooperate with the Hague Tribunal, and why we will keep working on locating, arresting and extraditing the two remaining fugitive indictees, including Ratko Mladiç, as we have with 44 others over the past few years,” Serbian President Boris Tadiç said in a January address to the Council of Europe Parliamentary Assembly. The arrest of Mr Mladiç, who is now likely to be turned over for trial at the Hague, has long been regarded as a precondition for the fulfillment of Serbia’s European Union membership aspirations. The country is now expected to receive candidate status by the end of the year, during the Polish presidency of the EU. At a joint press conference held with President Tadiç after
the arrest of Mr Mladiç, EU foreign affairs chief Catherine Ashton stressed that it would be of great benefit for Serbia, but also for the European Union, to eventually see the country gain membership. “I think … the events of today will give renewed energy to the process,” Ms Ashton said. Last week, however, some policy differences between Serbia and the EU emerged, as the country boycotted a summit meeting of Central and Eastern European leaders in Warsaw over the presence of Kosovo’s President Atifete Jahjaga. Serbia has to overcome the demons of its past if it wants to join the EU, Polish Foreign Minister Rados∏aw Sikorski said on TVN24.
“My reply would be ... why not?” Polish People’s Party MP Eugeniusz K∏opotek comments on the possibility of a coalition between his party and the Law and Justice (PiS) party after the autumn’s parliamentary election
Figures in focus Hard at work in Wielkopolskie Unemployment rate (in percentage) at the end of April, by voivodship 12.8 Pomorskie
20.5
13.3
17.8 Kujawsko-Pomorskie
Podlaskie
16.9 15.8
Mazowieckie
9.4
Lubuskie
9.8
Wielkopolskie ¸ódzkie 12.7
13.2
Lubelskie
Lower Silesia Opolskie 13.2
Poland
Obama in Poland To be sure you didn’t miss anything of interest during US President Barack Obama’s first visit to Poland, log on to WBJ.pl for a follow-up of the weekend’s events in pictures and analysis.
Warmińsko-Mazurskie
Zachodniopomorskie
Adam Zdrodowski
On WBJ.pl
COURTESY OF THE WHITE HOUSE
Poland has given its support to French Finance Minister Christine Lagarde’s bid to become the new head of the IMF. “This is a very good candidacy, it’s hard to imagine a better candidacy and it has the backing of the Polish government,” Finance Minister Jacek Rostowski told reporters at the Polish parliament. The news follows the May 14 arrest of former IMF boss Dominque StraussKahn, following allegations that he sexually assaulted a maid in a New York hotel.
MAY 30 – JUNE 5, 2011
12.6
13.6
15.0 Silesia 10.4
Świętokrzyskie 10.7
Podkarpackie
Ma∏opolskie
15.9
Source: Central Statistical Office
Company index ABM Solid ..................................21 Fiege ..........................................20 PEKAES ......................................20 Abu Dhabi
FM Polska ..................................20 PGE ..............................................5
Investment Authority ................11 Fresh Logistics ..........................20 PGNiG ..................................14, 21 Alpine Bau..................................16 Getin Holding ............................21 PKO BP ......................................21 AMB ............................................15 Gfk ..............................................10 Platan Group ..............................20 Apax Partners ..............................5 Globe Trade Center....................15 PointPark Properties ................20 Asseco ........................................10 GP Investments..........................17 Polkomtel ....................................5 Bain Capital..................................5 Grupa Lotos ................................2 Polska Telefonia Cyfrowa ............6 Bank Citi Handlowy....................11 Grupa Raben ..............................20 Bank Zachodni WBK..................11 Grupo Prasa ..............................17 Port-Hotel ..................................18 bmp AG ......................................21 Hilton Worldwide........................18 ProLogis ....................................20 BP Plc ..........................................2 Hydrobudowa ............................16 PTI ..............................................21 BRE Bank ..................................21 ING OFE......................................11 Rosatom ......................................5
DATELINE
June 2
CONFERENCE PRCH RETAIL HORIZONS
Event:
The best meeting place for executives: investors, developers, administrators and retail chains. Location: Hilton Warsaw Hotel & Convention Centre, Warsaw. prch.org.pl
9
DR IRENA ERIS LADIES’ GOLF CUP
Event:
The fourth international golf tournament of Dr Irena Eris Ladies’ Golf Cup.
Location: Naterki, Poland. www.drirenaerisgolf.pl/english/
BRE Bank Capital Group ..........17 Internet Group............................21 Sanitas..........................................6 BRE Property Partner................17 Jastrz´bska Spó∏ka W´glowa......5 Sawa Apartments Wilanów ......17 CE .............................................. 21 Jelfa..............................................6 SEGRO Poland ..........................20 Chevron ......................................14 JW Construction ........................17 T-Mobile ......................................6 CN CORP....................................20 Kernel ........................................11 Talisman Energy ..........................5 ConocoPhillips ..........................14 KGHM ....................................5, 21 Cyfrowy Polsat ......................5, 21 LPP ..............................................6 Telenor..........................................5 Deutsche Telekom ......................6 LUX MED Group ........................10 TeliaSonera ..................................5 DM BZ WBK ..............................10 Luzzo Bespoke ..........................23 TIM..............................................21 DSV Solutions ............................20 Marathon Oil ..............................14 TNK-BP ........................................2
17
ANNUAL OUTSOURCING FORUM & ABSL CONFERENCE
Event:
The Annual Outsourcing Forum & ABSL Conference will examine the position of Poland on the global map of business services. Location: Westin Hotel, Warsaw. www.roadshowpolska.pl
Duffy London..............................23 Mediatel......................................21 TP................................................21 East Capital ................................11 Menard Doswell & Co. ..............20 TVN ............................................21 EC Harris....................................15 Mewa ..........................................21 Ukrnafta ....................................11 Echo Investment ........................18 Mielno Holding – Firmus Group ......15 Unibail Rodamco........................15 EDF ..............................................5 MLP Group ................................20 Valeant Pharmaceuticals ............6 Empik ..........................................5 Mostostal-Export ......................21 Vodafone ......................................5 Enel ..............................................5 NFI Krezus ................................21 Eton Park ..................................11 NFI Midas ..................................21 Waimea Holdings Limited ........16 Europolis Real Estate
Orlen ......................................5, 21 WAN............................................17
Asset Management....................20 Panattoni Europe ......................20 Wittchen ....................................10 ExxonMobil ................................14 PBG ............................................16 W´glokoks ....................................5
NEWS
MAY 30 – JUNE 5, 2011
www.wbj.pl
The US president in Warsaw
Nanghar Khel prosecution
Much ado about Obama Arriving in Warsaw for the first time, US President Barack Obama brought the city center to a standstill. Roads were closed, businesses closed early and dozens of vehicles were towed away. The cost of the American president’s visit will not be
known until after he’s departed and the dust has settled. Offering a comparison, TVN24 reported that the president’s one-hour stop in Oslo last December cost $712,000, while a three-day stay in Mumbai a month earlier had totaled $200 million. The potential benefits of the visit nevertheless outweigh the monetary cost of hosting President Obama and his entourage. The bol-
CHRISTOPHER HALLORAN/SHUTTERSTOCK
The beast
The “Beast” – the US president’s eight-ton, diesel-powered limousine – arrived in Poland last Friday morning, several hours before the arrival of President Barack Obama himself. The Beast is perhaps the most secure car in the world. Although many details concerning the vehicle are understandably kept secret, it is reportedly made from a mixture of reinforced steel, aluminum, titanium and ceramic.
The windows are made of ballistic glass and are said to be five inches thick. Experts say there’s probably a woven Kevlar mat covering the floor of the car to protect it from blasts, while the cabin is believed to feature a sealed air recirculation system, designed to protect occupants from chemical attacks. The cabin itself can be used as a command-andcontrol center in case of emergencies. Remi Adekoya
stering of military and diplomatic ties, pledges on shale gas exploration and – of utmost interest to the “average Kowalski” – a move to add Poland to the US Visa Waiver Program were all potential outcomes of last week’s negotiations. At the same time, topics less comfortable for both nations were expected to be left off the agenda, or at least not publicly discussed. Prior to his arrival the World Jewish Restitution Organization had publicly pressed the US president to address the restitution of property taken from Jews during World War II, an issue which has led to heated words on both sides of the Atlantic this year. Another matter which wasn’t on the official agenda – the alleged presence of a CIA prison near Szymany Airport in Northern Poland. Reports that al-Qaeda suspects were flown to the site, and tortured in some cases, are the subject of an ongoing investigation. Neither nation has officially discussed the prison, despite significant evidence of its existence.
Talk of the town Mr Obama’s presence in Warsaw certainly galvanized the political class. Politicians of all stripes weighed in on the visit and its implications – positive and negative – for Polish-US relations. Even Jaros∏aw Kaczyƒski was, as WBJ went to press,
Prosecutor Jakub Mytych of the Military District Court in Warsaw said that Polish troops accused of perpetrating the Nanghar Khel massacre should be given between five to 12 years in prison, Rzeczpospolita reported. In August 2007, Polish soldiers allegedly opened fire in the village of Nanghar Khel in Afghanistan, killing six Afghani civilians. This is the first trial in Polish military history which concerns the contravention of the Hague Convention and the massacre of innocent civilians. The prosecutor also called for significant financial penalties to be levied.
EAST NEWS /FOTOLINK
The Polish capital was captivated long before Air Force One touched down
President Obama’s visit brought Warsaw to a standstill expected to attend a Saturday meeting with the American president at the Presidential Palace. The Law and Justice (PiS) leader had sworn publicly that he would have nothing to do with President Komorowski and has largely absented himself from bi-partisan events since his failed 2010 presidential bid. “I will attend the meeting. What are my motives? The interests of the country, the interests of Poland, that is what is most important for me right now,” Mr Kaczyƒski told the press. Asked whether he would talk with Mr Obama about the possibility of getting an international commission to investigate last year’s plane
crash in Smolensk, Russia, Mr Kaczyƒski said it wasn’t his role as opposition leader to raise such a point. However, he added that if the Polish president or prime minister were to do so it would make him “very happy.” Not all of the country’s political elites were expected to turn out for the US president though. Former President Lech Wa∏´sa, for one, declined an invitation and even a call from current President Komorowski failed to sway him. The Solidarity legend claimed that a meeting between himself and fellow Nobel Peace Prize honoree “simply didn’t fit” under the circumstances of the visit. Remi Adekoya, E Blake Berry
CEE politics
(
sion not to attend after the high-profile arrest of fugitive Ratko Mladiç, one of the world’s most-wanted alleged war criminals, last Thursday. The arrest would likely have put Serbia in the spotlight during Mr Obama’s visit in Warsaw. Despite earlier indications that Slovakia too would boycott the summit, Slovak President Ivan Gašparovič chose to attend. Some media sources attributed the change of heart to the Polish authorities’ decision not to display Kosovo’s national symbol or any official joint declaration featuring the signature of Kosovan officials. A spokesperson for Poland’s Presidential Chancellery would not confirm those reports. The Polish authorities have
^
The Meeting of Presidents of Central European States is an annual gathering which does not usually get a whole lot of press outside of the region. This year’s summit, held in Warsaw, was notable for two reasons: the presence of US President Barack Obama and the absence some of the usual attendees. The summit was originally due be attended by some 22 regional leaders as well as President Obama, attending as an honorary guest. The guest list included the heads of Germany, Italy, the Czech Republic, Ukraine, Croatia, Austria
and Lithuania. Friday’s daylong meeting ended with a working dinner at the Presidential Palace, also attended by Mr Obama. Serbian President Boris Tadič and his Romanian counterpart, Traian Basescu, boycotted the event due to the presence of Kosovan President Atifete Jahjaga. Serbia refuses to recognize the independence of Kosovo, which unilaterally declared itself independent from Serbia in 2008. Kosovo’s independence is recognized by 75 countries, including the US, Poland and most European Union countries. Romania is one of five EU countries that do not recognize Kosovo as a country. Mr Tadič stuck to his deci-
SHUTTERSTOCK
Boycott, Obama put Warsaw summit in spotlight Kosovo’s presence at the meeting led to a boycott by Serbia and Romania
3
Serbian President Boris Tadic (right) refused to attend stated that they were not aware that the Kosovo issue would cause problems, but chose not to withdraw the nation’s invitation. “Kosovo, so far as I am aware, is currently recognized
by 75 countries, including Poland and most EU members. So there’s no reason not to invite Kosovo’s representative,” Foreign Minister Rados∏aw Sikorski told journalists. Alice Trudelle
Soccer venue switch Gdaƒsk’s PGE Arena is not in a fit state to host the upcoming soccer match between Poland and France, according to the Polish football association (PZPN). The friendly, scheduled for June 9, has now been moved to Warsaw. The decision is a blow to Poland’s Euro 2012 plans, as the game was due to be the first played at the new stadium ahead of next summer’s tournament. In a statement, PZPN said that following consultations with the police and stadium management they had no choice other than to move the match because the PGE Arena was not ready to hold spectators.
GDP growth forecast rises Deputy Prime Minister and Economy Minister Waldemar Pawlak estimates that Poland’s economy will expand by more than 4% this year, Rzeczpospolita reported. Previous Economy Ministry estimates had seen lower gross domestic product growth. This follows last week’s announcement by the European Bank for Reconstruction and Development, which predicted Polish GDP would increase by 3.8% y/y, the same as in 2010, and by 3.5% y/y in 2012. ●
4
NEWS
www.wbj.pl
MAY 30 – JUNE 5, 2011
CIA interrogations in Poland
Censorship
Prosecutor replaced in ‘black sites’ investigation
Blogger case begs questions about free speech
Refusal of legal assistance from the US continues to be a major obstacle to the investigation The deputy prosecutor in charge of investigating whether Poland allowed secret CIA prisons to operate within its borders has been replaced. Waldemar Tyl has now taken the place of Jerzy Mierzewski in the long-running criminal investigation which started back in 2008. The Prosecutor’s Office has sought to assure Poles that the change will not impact the investigation, but human rights activists are worried that it is in danger of being scrapped. “There was no objective reason for removing Mierzewski,” Adam Bodnar, a lawyer with the Helsinki Foundation in Warsaw, told the Associated Press (AP). “I am afraid that sooner or later the Polish investigation will discontinue the proceedings,” he added. Other human rights activists have criticized the handling of
the investigation. Recently the Open Society Justice Initiative filed a case against Poland in the European Court of Human Rights, arguing that the country was not conducting an effective investigation into its alleged participation in the rendition program carried out under then US President George W. Bush. Although the Prosecutor’s Office was made independent from the Ministry of Justice
“This investigation is an illusion” last year, many argue that political pressure is likely playing a role in the sluggishness of the investigation. Since 2002 representatives from all Polish governments have either denied or avoided commenting on the camp’s existence, and the United States has refused to provide legal assistance for the case on grounds of national security and state interest. “If the government were intent on resolving this, there
would be diplomatic support to request mutual legal assistance from the US. That has not happened. The prosecutor is completely on his own which, given the international status of these proceedings, means that this investigation is an illusion really,” said Miko∏aj Pietrzak of the Pietrzak & Sidor law office in Warsaw. Mr Pietrzak is the lawyer in Poland of Abd al-Rahim alNashiri, who was allegedly detained and tortured in Poland between 2002 and 2003, before being transferred to the US military base at Guantánamo. Speaking to the AP Mr Tyl, the new man at the head of the investigation, said he would keep up efforts to seek information from Washington. As WBJ went to press, is was not clear if this issue would be discussed during President Obama’s visit to Warsaw, although Zbigniew Jaskólski, spokesperson at the Prosecutor’s Office, said Mr Tyl’s appointment was not related to the US president’s visit. Alice Trudelle, Katarzyna Piasecka
The Internal Security Agency stormed the house of a blogger who made fun of President Komorowski online: they may have gone too far Robert Frycz, author of the blog AntyKomor.pl, has become Poland’s most famous blogger, and the center of a debate on free speech. According to Mr Frycz, the blog was dedicated to “political satire” aimed at Polish President Bronis∏aw Komorowski. But according to the Internal Security Agency (ABW), whose agents stormed the 25year-old student’s house at 6 am and confiscated his laptop and hard disks, the website contained “materials that insult the president of Poland, and which may incite people to commit a crime.” The website, explained the ABW spokesperson in a statement, included games in which one could throw various objects (including a hammer and feces) at an image of the face of the president. According to Article 135 of the Polish
Penal Code, insulting the president is a public offense punishable by up to three years in prison. The president and the prime minister’s offices have expressed surprise at the news. “ I believe that self-irony is absolutely necessary in politics,” said Mr Komorowski in
“Freedom of expression is a supreme value in Poland” an interview posted on his website. “Of course you can make fun of politicians.”
Flawed law Both offices said that the security agents were only following vague laws and were not to blame. “If the law in this regard is flawed, it must be corrected. Freedom of expression is a supreme value in Poland … it is the foundation of a democratic state,” S∏awomir Nowak, Secretary of State in the President’s Office, told TVN24 AntyKomor.pl, which will
not reopen and is not up for sale, was not defamatory, maintains its author. “Preventive censorship is characteristic of an authoritarian system,” said the blogger in a statement on his website. Mr Frycz explained that the main motivation behind AntyKomor.pl was to show the flipside of the president’s own methods, which he described as, “the permanent and deliberate efforts to ridicule the person of the late Lech Kaczyƒski and his brother, Jaros∏aw Kaczyƒski.” MEPs from the opposition party Law and Justice (PiS) say the ABW had overstepped its authority and have asked for an investigation. Dominika Bychawska-Siniarska, program coordinator at the Observatory of Media Freedom at the Helsinki Foundation for Human Rights, said that the case displayed a notable lack of proportionality between offense and action. “The ABW is meant to act in really important crimes like drug trafficking, terrorism and organized crime, and that obviously wasn’t the case,” she said. Alice Trudelle
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INDUSTRY NEWS
MAY 30 – JUNE 5, 2011
www.wbj.pl
Nuclear energy
Empik’s online blunder
Rosatom plans to build two one-gigawatt nuclear power units in Kaliningrad, the oblast on Poland’s northeastern border. The first unit will be completed by 2016, the second in 2018. The company says it is in talks with a number of utilities, including France’s EDF and Italy’s Enel, over the sale of a stake in the planned power block. “We are in talks with at least three potential strategic investors for this plant, including EDF and Enel,” Alexey Kalinin, head of Rosatom’s marketing and business devel-
Poland’s largest utility, PGE, is considering importing energy from Rosatom’s (Russian State Atomic Energy Corporation) planned nuclear power plant in Kaliningrad. “We are in talks about potential energy imports from Kaliningrad,” PGE CEO Tomasz Zadroga told reporters at a press conference last week. “We are not interested in partnership, this would be a pure commercial agreement.”
opment office, told Reuters. He added that Rosatom would retain a controlling stake in the plant if it entered into a partnership. The Russian company is also interested in taking part in the realization of Poland’s own nuclear energy plans, which PGE has been charged with overseeing. “The decision to bid in Poland has not been made yet, but obviously we are keeping an eye on the process. We are a regional player that wants to develop in the region,” Mr Kalinin said. Poland plans to build two
COURTESY OF ROSNEFT
PGE eyeing Russian energy Rosatom, meanwhile, has expressed interest in Poland's own nuclear program
Rosatom plans to build two nuclear plants in Kaliningrad nuclear power plants by 2030. The country is expected to launch a tender for a technolo-
gy supplier for one of the plants later this year. Gareth Price
Coal
JSW extracts big first-quarter profit
Talisman’s shale gas plans
Forecast increase in steel production (in millions of metric tons), 2010-2015 300
271
250 200 150 100
77 30
11
8 CE E
21
st
38
50
2 nia ea Oc
ica Afr
a ric
Ea Mi dd le
me hA
uro
pe No rt
nE
Ch
CIS
We ste r
ina )
ina
Source: JSW
Canadian company Talisman Energy will start drilling for shale gas in Poland this year. The company’s president, Tomasz Maj, said that the firm has finished collecting seismic data on all three concessions and it is now analyzing the information, Puls Biznesu reported. The company is scheduled to drill the Gdaƒsk West concession in September. ●
Legal News
Fight heats up for Polkomtel Speculation abounds over one of the year’s biggest M&A deals
Contact: Miros∏aw Stefanik ms@pnplaw.pl
Company files accessible online COURTESY OF TELIASONERA
The competition to acquire Polkomtel, operator of Poland’s second-largest mobile brand, Plus, is coming down to the wire. Polkomtel has been put up for sale by its shareholders, refiner Orlen, copper mining firm KGHM, utility PGE and coal miner W´glokoks (all owned by the Polish state) as well as British mobile services operator Vodafone. Final bids are reportedly due on June 10, with four bidders still vying for the company: finance and media mogul Zygmunt Solorz-˚ak; Swedish telecom TeliaSonera; private equity group Apax Partners; and a joint-venture comprising Norwegian telecom Telenor and private equity investor Bain Capital. There’s been some confusion in the media regarding the
7
0
Gareth Price
Telecommunications
Popular Polish online store Empik.com may not have any choice but to deliver a number of goods it was advertising on its website, even though it erroneously offered them at prices store managers say were too low and incorrect. Last week, Rzeczpospolita reported the firm might have trouble canceling those orders. For several hours, Empik.com clients were offered some unbelievable deals, including a games console valued at z∏.1,099 for just z∏.49.99. Empik says the whole matter was the result of a systems error. But the Office of Competition and Consumer Protection says a deal is a deal and that Empik is bound to honor the transactions.
Coal, hard cash
(ex cl.
Polish coal miner Jastrz´bska Spó∏ka W´glowa (JSW) recorded a net profit of z∏.619 million for the first quarter of 2011, a four-fold increase on what it made a year earlier. Revenues leaped 53 percent to z∏.2.27 billion as the firm capitalized on the high price of coal. The company predicts coal prices will remain elevated throughout this year due to restricted supply and strong global demand from steel producers. JSW exports about 45
least 51 percent of the miner and will give between 17-19 percent to workers. The amount to be floated has not yet been disclosed. Analysts say that although investors may take a discount due to recent troubles with trade unions, the company’s latest earnings report and investment plans could mean the government stands to make about z∏.4 billion from the sale. Daily Rzeczpospolita reported that JSW will divide its shares on a 10-for-1 basis, meaning the price-per-share would be slashed to z∏.100 from over z∏.1,000.
Ch
percent of the coal it produces. “[Long-term] contract prices for hard-type coal rose to $225 per tonne in the first quarter and $330 at the beginning of the second quarter,” the company wrote in its results presentation. “Prices should remain at high levels throughout 2011.” The company will also increase investments to z∏.1.5 billion a year by the end of 2015, CEO Jaros∏aw Zagórowski said. All this, analysts say, is good news for the government, which wants to float JSW on the Warsaw Stock Exchange on July 6. The State Treasury intends to retain at
As ia
The result puts the firm in a good light ahead of its stock market debut
5
TeliaSonera has much to gain from a takeover of Polkomtel actual list of bidders, with Rzeczpospolita reporting early last week that only two remained. Other sources, however, challenged that claim. For its part, Dow Jones Newswires cited anonymous sources claiming that two bidders would be chosen for further negotiations after the June 10 deadline. Who stands to gain the most by acquiring Polkomtel? According to Przemys∏aw Sawala-Uryasz, an analyst for CA-IB Securities, it’s the Swedish faction. “TeliaSonera is all over the
Baltic Sea [region] and Poland is piece of the puzzle they are missing, which is why they are on the short-short list,” he said. Mr Solorz-˚ak, owner of TV platform Cyfrowy Polsat, also stands to gain much. He has said he would use Polkomtel to further his goal of creating a 4G LTE nationwide network. Mr Sawala-Uryasz feels the firm is particularly appealing to Mr Solorz-˚ak because “it would get him everything at once.” Polkomtel is expected to cost z∏.16-18 billion. Thomas Kolasa
The Sejm has passed an amendment to the Law on the National Court Register. Among other things, the proposed changes provide for the possibility to access documents submitted to the files of commercial companies kept by registration courts. As a result of the new provisions anyone will be able to review and print copies of companies’ files. Print-outs will be considered official documents as long as it is possible to verify that they match the documents kept in the register. This amendment is obviously a major facilitation for entrepreneurs. Under the provisions currently in force, if a businessperson wants to get access to registry files – to scrutinize a business partner more carefully, for example – one had to request that the court make the files available, then visit the court in person and review the files in a court files’ reading room.
The amended law will now be directed to the Senate for the next stage of the legislation process.
Partnerships do not enjoy lower tax on tenancy A lump-sum tax of 8.5% on incomes from tenancy is often chosen by individuals who earn such incomes but do not conduct other business activity. But can the same rules be applied by one partner in a partnership which rents out a property? Unfortunately, the answer is no. This is the conclusion of a judgment by the Voivodship Administrative Court in Warsaw issued May 11, 2011 (court file no. III SA/Wa 2419/10). In justifying its ruling, the court concluded that when renting is the object of business activity, incomes from renting of real properties should be treated as originating from the source of incomes and, in this case, the source of income is business activity. ●
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Polish house prices fall Polish banks will lend more than z∏.50 billion this year to clients looking to purchase real estate, Rzeczpospolita reports. That’s an increase over past years, even though the average price of homes was down across all major urban centers in Q1. Those drops were not insignificant, Jacek Furga, chairman of the Real Estate Finance Committee of the Polish Bank Association, told the newspaper. He estimates the average house price dropped by between z∏.50 and z∏.100 per square meter.
Clothing firms eye foreign markets Polish producers of clothes and footwear are looking to expand into foreign markets including Asia and the Middle East. Companies like LPP, (owner of the Reserved, Cropp and House brands) and Coccodrillo are getting ready to open shop in Shanghai, Dziennik Gazeta Prawna reports. ●
MAY 30 – JUNE 5, 2011
Telecoms
Pharmaceuticals
Valeant takes control of Jelfa Deutsche Telekom The purchase of Jelfa’s parent will moots fixed-line increase the firm’s reach in the CEE foray into Poland region Canadian pharmaceutical firm Valeant Pharmaceuticals has purchased Lithuania-based Sanitas in a deal worth €314 million. The purchase, which includes control of Polish firm Jelfa, increases Valeant’s foothold in Central and Eastern Europe. “The acquisition of Sanitas should provide Valeant with an exciting opportunity to expand our European branded generics product portfolio with dermatology and hospital injectable compounds that have a strong track record of growth and profitability,” J Michael Pearson, chairman and CEO of Valeant, said in a statement. “With 80 percent of the Sanitas portfolio consisting of non-reimbursed products with limited exposure to government pricing pressures, Valeant will be in a key position to continue our expansion into Central and Eastern Europe,” he added. Sanitas’ major shareholders agreed to sell 87.2 percent
The German firm wants to offer integrated telecommunications packages in order to bolster sales SHUTTERSTOCK
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Valeant’s acquisition of Sanitas will allow it to expand its generics portfolio of the company’s outstanding shares to Valeant. The new majority holders will submit a mandatory tender offer for the remaining minority share. Sanitas is a publicly traded specialty pharmaceutical producer which operates throughout Central and Eastern Europe, primarily in Poland, Lithuania and Russia. Valeant intends to use its new asset to expand in the latter market. Annual revenues for Sanitas for 2011 are expected to be €100 million. Ontario-based Valeant expects to acquire €50
million in debt as part of the deal, which should be finalized in Q4 2011. Sanitas’ Polish branch, Jelfa, produces many of the 390 products comprising Sanitas’ portfolio; its drugs are widely distributed throughout Central and Eastern Europe. The firm, which employs about 1,000 people, is located in Jelenia Góra, Lower Silesia. It mainly focuses on the therapeutic areas of dermatology, ophthalmology, metabolism, urology, and hospital injectables. Thomas Kolasa
German telecommunications giant Deutsche Telekom is considering purchasing fixedline or broadband assets in several European countries, including Poland. The firm owns Polish telecom Polska Telefonia Cyfrowa, which in turn controls mobile phone operator Era. The latter is to be rebranded as TMobile this Sunday. “Fixed-mobile convergence is a precondition to be able to leverage the market and certainly to serve the customer best by offering fixed, broadband, TV or IPTV,” Roland Mahler, head of operations in Europe outside of Germany, said in an interview with Bloomberg. “In the integrated markets we see the customers want
exactly that kind of fullfledged proposition.” Deutsche Telekom wants to increase profit margins to ensure its European markets (outside Germany) return to growth in 2013. Branching into the fixed-line market might help the company as customers are more likely to buy fully integrated packages inclusive of mobile data plans, broadband and land lines. Accomplishing this goal in Poland would require the takeover of other Polish telecoms, with potential candidates including Netia, Telefonia Dialog and Exatel. Deutsche Telekom is currently in talks to buy Slovak Telekom, a company in which it already has a 51 percent stake. The Polish, Czech, and Slovak holdings of Deutsche Telekom are leading a turnaround in Central Europe, as prices are starting to stabilize or rise in some markets, Mr Mahler said. Thomas Kolasa
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OPINION
MAY 30 – JUNE 5, 2011
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Strength is needed when dealing with the US
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thrall to foreign powers. Ronald Reagan is lionized for his role in the downfall of the “Evil Empire.” In other words, America plays a hallowed role in Poland’s historical identity. And, since its return to true sovereignty in 1989, Poland has looked to the US for direction. It has also, it must be said, done its best to be a good partner. Since the geopolitical shift catalyzed by the War on Terror, Poland has been feeling neglected. “We have done so much for America,” the complaint goes. “We sent soldiers to Iraq, to Afghanistan, we have been a stalwart ally – and for what? We cannot even get a visa to visit Disneyland.” This refrain was much heard in the Polish media in the days preceding Mr Obama’s visit. Another common theme was, “What will we get out of the visit?” This is an understandable reaction to
hat it took two-and-a-half years in office before Barack Obama made his way to Warsaw is seen by many Poles as a sign the US president isn’t interested in their region (in general) or country (in particular). They’re right about that. And wrong as well. Keeping Poland safe and healthy is in the United States’ interest, but its focus is on managing instability in areas of the world which could fall to its enemies. Poland is not one of those areas. Most Poles don’t look at it that way. They have an emotional involvement in US-Polish relations and take it personally when the relationship isn’t at its best. America is the land of dreams, where so many emigrants found new lives. President Woodrow Wilson is revered for his hand in Poland’s rebirth in 1918 after 123 years in
a visit by the US president, but one that is perhaps over-optimistic. Although he might bear a passing resemblance to a certain bearded gentleman from the North Pole, Uncle Sam need not come laden with gifts. Bilateral relations tend to be conducted on a quid-pro-quo basis, and rightly so. Poland should try to win its concessions from the US honestly (or through honest chicanery), rather than feeling entitled to them.
In search of a strong partner We know what Poland wants from the US: stronger economic ties and a token military presence on Polish soil. But what can Warsaw do for Washington? Poland is not and will not be a strategic partner for the US in the foreseeable future. It is a mediumsized, still-developing European
country and no military powerhouse. But Poland’s status in Europe is growing steadily, due largely to its economic prowess. The US has definitely taken note, and this was undoubtedly a factor in Obama’s decision to visit Warsaw, rather than, say, Budapest. Another was the fact that Poland is poised to assume the presidency of the EU Council in July at a time when relations with North Africa are extremely delicate. These are assets which Poland can use to leverage its relationship with Washington. It may be too small to play a lynchpin role in American foreign policy, but it can position itself as the leader in the CEE region. And, unsurprisingly, the Polish government seems to be angling for just that role. It will take a lot of smart diplomacy from Poland, as well as concessions to other players in the
neighborhood (a lesson the government has yet to learn), but the country is making progress. Its EU Council presidency will prove a litmus test of its leadership
“Poland can position itself as the leader in the CEE region” ability, and the US will be watching. If the presidency goes well, America will treat Poland with greater respect and willingness to parlay. But if it looks anything like the Czech Republic’s disastrous 2009 tenure at the head of the EU Council, expect Uncle Sam to look elsewhere for strong partners. And expect Poland to take it personally. ●
Instead of complaining, Europe needs to look in the mirror
H
rehashes all of the ways in which Mr Obama has disappointed – on issues like Afghanistan, Guantanamo Bay and climate change (cover story, pp. 12-14) – it ought to take a hard look in the mirror. It might understand reasons why the US has concentrated elsewhere. For starters, Henry Kissinger’s question of “Who do I call if I want to talk to Europe?” still lacks a clear answer nearly 40 years later. There are at least four European presidents: European Commission President José Manuel Barroso, EU Parliament President Jerzy Buzek, whoever is leading the country holding the rotating Council of the European Union presidency (currently Hun-
earing about Europe’s dismay that the US is less attentive than it used to be – as we did
“Europe ought to consider what it can do to strengthen the alliance” during President Obama’s visit to Europe last week – is growing old. President Obama has just completed his ninth trip to Europe, more than any other president at this point in his term. And while Europe
gary, and as of July 1, Poland) and the President of the European Council, Herman van Rompuy. There’s also EU foreign policy chief Catherine Ashton, not that anyone in the US would call her in an emergency. The fact that it takes an entire paragraph to list unsuitable “counterparts” for the America’s secretary of state speaks volumes. European nations trumpet this arrangement as a triumph of compromise between national and supranational interests. To Americans, it’s Eurocracy at its worst.
Mutual disappointments When it comes to areas where the US has “let Europe down,” European
nations ought to think hard about their role as well. On Afghanistan, stronger engagement from Europe might very well have helped make better progress; on Guantanamo, European countries’ refusal to take in detainees is a big reason it remains operational. On climate change, the US admittedly lags behind Europe, but it is not alone. Developing countries need to get involved as well, and Europe could play a key role in helping the US pressure them to do so. And there are plenty of areas in which Europe is seen as a disappointment by Americans. US-dominated NATO is responsible for the security of the continent in everything but name. The US has been
asking Europe to make significant contributions to its own defenses for years – an issue which Poland admirably wants to address on when it takes over the presidency of the EU Council. Europe could do better in free trade as well: the state support that Europe gives its businesses generally outweighs that seen by American firms, creating unfair advantages. None of this is to say that the US hasn’t made plenty of missteps in maintaining what should be the world’s most powerful alliance. But instead of whining about not getting enough attention, Europe ought to consider what it can do to strengthen the alliance. ●
Where no author is listed, the opinions 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.
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INTERVIEW
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MAY 30 – JUNE 5, 2011
Politics
The autumn elections and the day after Political analyst and sociologist Pawe∏ Âpiewak offers his perspective on the upcoming parliamentary elections and predictions for the outcome Ewa Boniecka: The antagonism between Civic Platform [PO] and Law and Justice [PiS] – also called the “Polish-Polish war” – not only rages at a political level, but has also spread to the streets. Do you think that it will continue, regardless of who wins the autumn parliamentary elections? Pawe∏ Spiewak: I think the emotions that were awoken by the [April 10, 2010] catastrophe in Smolensk, stemming from already poor relations between PO and PiS, will continue to dramatize the existing divisions among people. And the coming elections will serve as an additional cause of sharp confrontation among politicians at the top. Yet the real question concerns how Civic Platform will build its political strategy in a situation which is entirely different from that of the 2007 election. At that time Civic Platform’s victory was achieved to a great extent by negating PiS and also due to the fact that voters had had enough of PiS’s rule and wanted to push it out of power. The fear of PiS is not as intense now as it was four years ago. And even more important for PO is the fact
that it will be judged by voters on the results of its governance. There is also a new element in this campaign. In my opinion PiS leader Jaros∏aw Kaczyƒski’s motive – apart from his desire to remove PO from power – is personal vengeance against Prime Minister Donald Tusk. He would like to find information and documents which would allow him to accuse Prime Minister Tusk of culpability for the death of his brother, the former president, in the Smolensk catastrophe, eliminating him from politics forever. And this is currently a peculiar and meaningful element of the Polish-Polish war. Do you think that having such deep divisions among the electorate differentiates Poland from other European countries? That’s a relative question. I think that politics is generally linked to defining a country’s identity and there are cultural divisions in France, in Finland and in other European countries, so I do not see Poland as being exceptional. Yet if there is something particular in Poland, it is the role which the Catholic
Church plays in politics and in aligning itself with one party – PiS. I would even say that for some priests, not so much for bishops perhaps, Jaros∏aw Kaczyƒski is also a religious leader. This view appeals to people with very strong religious beliefs and to their belief that their faith is badly treated and that orthodox Catholics are living in humiliation. How do you view PiS politicians’ return to their old idea of building a Fourth Republic, an idea which is associated with a rejection of the existing state and a complete attack on its institutions? I was one of the people who introduced that idea into public life at the beginning of the first decade of this century. It was justified by the weakness of many state institutions, including the justice system, and the high level of political corruption. I will say this – nothing has changed fundamentally over the past five years. Yet the idea of the Fourth Republic and [its diagnosis of the state’s ills], which are in many parts valid, is one thing. Another thing altogether is the context which was given to that idea by PiS when the party was in power; certainly a return to the justice policy presented by then-Justice Minister Zbigniew Ziobro is unacceptable. But I think that the first
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stage of Poland’s basic transformation has ended and there is now a need to move forward to resolve new problems and introduce serious reforms in many domains of our state system and public life. We should look at more than political slogans, but also at the real political game that is going on. This political game indicates that Jaros∏aw Kaczyƒski would be ready to form an alliance with SLD [the Democratic Left Alliance] if the outcome of the election was favorable for him. And what do you think of PiS’s hints that, if it won the election, it could form a government comprising professionals backed by politicians from certain parties? PiS has suggested this might appeal to Poles dissatisfied with the political class. Regardless of what Jaros∏aw Kaczyƒski and other PiS politicians are saying, who would really believe that such a professional government would be possible when it would in fact be driven from the back seat by PiS’s leader? Moreover, PiS is a weak party at the management level, so talking about establishing a professional government is meaningless. I suppose that Kaczyƒski is calculating that he need not necessarily be prime minister, but he might see himself in the role of speaker of the Sejm if it gave him the key to power.
Rados∏aw Sikorski, chief of PO’s election campaign, has said that his party could react more strongly to PiS abuses and accusations. If PO does so, what effect do you think it would have? I am not quite sure what Sikorski means by this, just as it is unclear to me why Sikorski got involved in the issue of defining the Katyƒ massacre as
tion in Poland. If the Russians succeed in weakening Tusk by claiming that the blame for the Smolensk catastrophe lies on the side of the Polish flight’s organizers and the government administration, Kaczyƒski would be able to say that even the Russians are admitting [what he’s said all along]. Moscow wants to show that Poland is a weak
“PO should avoid sharp rhetoric against PiS and leave them to run freely with lit torches on Krakowskie PrzedmieÊcie” genocide. I believe that it was genocide, and Sikorski’s dealings with strictly legal nuances were unnecessary. In general I think that PO should avoid sharp rhetoric against PiS and leave them to run freely with lit torches on Krakowskie PrzedmieÊcie street, and allow that party to manipulate the cross politically. [This type of behavior] creates a lot of negative reactions because Poles are tired of it. For the first time in years, Polish foreign policy is also a domain of political conflict between PO and PiS. Does this worry you? I am worried about something else, namely that Russia wants to take advantage of the situa-
link in the EU so that the West will perceive it that way. And how, in your opinion, can Tusk’s government respond? Only by publishing the report on the causes of the Smolensk catastrophe, which unfortunately is still delayed. I also believe that the government should not respond verbally to PiS’s accusations that Poland is a “Russian-German condominium” and to similar PiS declarations, in order to keep our foreign policy at a matterof fact level. Public opinion polls show a drop in support for PO, and critics say the government has not introduced much-needed financial reforms and has failed to fulfill previous elec-
INTERVIEW
COURTESY OF PAWE¸ ÂPIEWAK
MAY 30 – JUNE 5, 2011
Political analyst Pawe∏ Âpiewak believes PO will win this autumn’s elections, but may have a more difficult time governing thereafter tion promises. It is obvious that PO has disappointed many of its voters. Despite negative events like the world financial crisis, huge floods in Poland and the Smolensk tragedy, the government was in a comfortable condition to govern. It is true that Poland maintained economic growth during the European crisis, but I am certain that the government could do better in modernizing Poland. I think that Donald Tusk has learned a lot during his term in government, however he has only concentrated on small steps forward, neglecting the long-term vision of development. And what do you think will dominate the upcoming election? I think that PiS will continue to exploit the Smolensk issue, but the economy will be most important. The rising prices of gasoline and food are not only a problem in Poland, but people mainly care about what is going on here and now. People are also experiencing great difficulties with the health-care system and constant obstacles to their own economic activities. They also name many other government failures and things it has neglected. Moreover, there is a widespread negative feeling about
PO’s lack of guiding principles, not so much in the ideological context, but rather in terms of political determination to take risks in practice. I am convinced that Civic Platform could have done much more than it did over the past three years. What kind of impact will Polish emigration have? Contrary to popular opinion, this is not only a job-seeking emigration. For many educated people it is also a longing for better career opportunities and a better quality of life, as well as healthier relations between people. Moreover, some Poles emigrate in the hope of creating better opportunities for their children. I think that the emigration of educated Poles should be the biggest concern for Civic Platform, and the government has not come up with a satisfactory answer to this problem. I live in the Lublin area and I have also seen the emigration of poor, unemployed people, for whom leaving Poland is the only chance to earn some money. What kind of situation do you expect to see in Poland on the day after the election? It could be difficult. The emotions surrounding the Polish report on the Smolensk catas-
trophe prepared by Jerzy Miller will not lower the social tensions and will not reduce the hostility of Jaros∏aw Kaczyƒski and his party towards Donald Tusk, President Bronis∏aw Komorowski and other PO politicians. The composition of the new parliament could be more difficult than it is now for the winning party, because it probably will not have a significant majority. Therefore a coalition government would have to be created. If Civic Platform wins – which is what I expect – it might form a coalition not only with PSL [the Polish People’s Party], but also SLD. And the leftist party, led by Grzegorz Napieralski, would demand prominent posts for its politicians, which could be a great burden for the future government and would also foster dissatisfaction in the center-right PO party. And what can Poles hope for after the e1lection? I think that they can hope for an end to the Polish-Polish war. In my opinion Poles are inclined to rely primarily on themselves to improve their own lives. In general they do not expect too much from the state – they just don’t want it to interfere in their economic activities and way of life. ●
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HEALTH CARE IN FOCUS
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Wittchen revenues rise 18% Revenues of Wittchen, a company selling luxury leather accessories whose prospectus is pending approval by Polish Financial Supervision Authority, increased in 2010 by more than 18% to reach z∏.66.5 million. The company expects even better results in the current year, driven by the growing demand for luxury goods; it has already reported increasing sales in the first months of 2011. This year, the company plans to open six new stores.
Broker report pushes Asseco shares up During last Thursday’s session on the WSE, shares of Asseco, Poland’s leading IT company, rose by as much as 3.3% to reach z∏.49.8, in response to the recent recommendation by the DM BZ WBK brokerage house. In a report, experts from DM BZ WBK valued Asseco Poland shares at z∏.58. They pointed out that at the end of March, Asseco Poland’s cash resources accounted for more than 22% of the market valuation of the company. Analysts believe that if Asseco Poland doesn’t carry out any new acquisitions in the near future, then by the end of the year it will have more than z∏.1 billion in cash available.
Poles lose confidence in financial institutions Out of all financial institutions, banks enjoy the highest level of trust amongst the general public in Poland, according to a study by market research firm Gfk. On the opposite end are financial advisories and brokerage houses. “A certain pattern can be seen here – we trust those institutions that we know really well, hence the banks got the best results,” sociologist Andrzej Rychard told Rzeczpospolita. Interestingly, confidence in all financial institutions is lower than it was in September last year. ●
MAY 30 – JUNE 5, 2011
Health care
Private practice, public concerns Anna Rulkiewicz, president of private healthcare provider LUX MED Group, talks about the factors shaping Poland’s health-care market and the state of the public-private divide Andrew Kureth: You opened your private hospital last August. Has it been generating the returns you had hoped for? Anna Rulkiewicz: The hospital has met our expectations. Since the moment the first procedures were carried out at the end of August 2010, the hospital has been systematically serving an increasing number of patients and extending the scope of services offered. During the first six months of business, an average of over 10 procedures under general or local anaesthesia, under operating or outpatient conditions, were carried out daily – that amounts to approximately 2,200 surgeries and almost 2,000 consultations in the hospital clinic. The new hospital currently offers one-day surgery care. Do you plan to expand this offer to include more surgeries that require longer hospital stays? Services requiring a long-term hospital stay will be provided in our next hospital, which is going to be opened in two years’ time. It will be a multifunction hospital with approximately 50-60 beds, located in the Mokotów district of Warsaw. Why is it that private clinics in Poland still don’t perform some of the more complicated procedures, that they still have to be done in public hospitals? The LUX MED Group, like other private medical companies that offer hospital services, aims to shape its institutions’ services in a way that allows them to complement the services offered by public hospitals. There are institutions in Poland which have the perfect infrastructure and a team of exceptional physicians at their disposal. These facilities, owing to scientific and research support from the state, are able to specialize in highly complicated and innovative surgeries. This applies to public clinical hospitals, among others. It is for this reason that private hospitals are mainly institutions with several functions, specialized in fields where the public sector needs the support of the private sector. There is strong demand for such hospitals among patients. Real competition between private and public units in terms of full-service hospitals will only become possible if a change is made to the system
which finances medical services in Poland. In your opinion, how is Poland’s private health-care market developing? How do you see it developing in the near future (12-18 months)? The market of private healthcare will not develop as dynamically as it did a few years ago. We expect that the revenue dynamics, growing since last year, will stabilize at the level of 10 percent per annum over the coming years. Changes to the Polish health-care system are appearing, but unfortunately we find some of them alarming. The bill on additional voluntary health insurance, presented by the Ministry of Health in March, is unacceptable for entities which have been operating on the private medical services market for many years. As a community, we support equal rights for entities operating on the health market in Poland. However, it is necessary that all entities, regardless of their owner, be able to compete for contracts on equal terms with publicly funded institutions. The chance to obtain such contracts should depend on what is most beneficial from the point of view of the patient. Equal treatment of both public and non-public entities would result in better availability of medical services and – owing to the competition – would trigger continuous improvement of the quality of services provided. Do you have problems finding qualified doctors and nurses, considering many have left for Western Europe since Poland joined the EU? The situation varies, depending on the region of the country, specialization, location, etc. It should be kept in mind that qualified doctors often go abroad for internships in order to gain additional experience and increase their skills. Over 5,000 doctors work with the LUX MED Group, many joining after internships abroad. What’s your view of the government’s ongoing process of “commercializing” public health-care centers, especially in view of the recent legislation which makes it easier for local governments to carry out this process? In my view, this is a step in the right direction. It could, within a relatively short period, contribute to the healing of public
COURTESY OF LUXMED
10
LUX MED Group president Anna Rulkiewicz hospitals’ finances and, in the long run, it constitutes a chance to improve the effectiveness of the entire healthcare system. However, in order for the process to succeed, the largest possible number of hospitals should be transformed into companies. The government has recently proposed a tax deduction on private health-care premiums, as well as allowing private companies to finance healthcare costs with social funds. Do you support this idea? For now it is only a bill, and the proposed provisions on the tax deduction have been criticized by the Ministry of Finance. Numerous communities representing employers, insurers, trade unions and occupational medicine services have submitted a number of remarks and objections to the proposed and quite controversial provisions. This is certainly not the final version of the document. Insurance companies are favored by it and other entities – including companies offering subscription medical packages, which have been building their business as well as investing in equipment and development for many years – are discriminated against. The pro-
posal of introducing personal income tax deduc“It is necessary that all tions for the purchase of a health insurance policy entities, regardless of their or the possibility of financing from a social owner, be able to compete for fund would apply only to contracts on equal terms with insurance policies; other publicly funded institutions” options for providing oneself with additional medical care would be omit- influenced the development of ted. our industry to a considerable We support the develop- degree. Most services offered ment of the health insurance by private medical institutions market, including hospital are VAT free. insurance directed at individuals, but we would like to see Recent surveys have shown the whole market develop by that criticism of the national making room for various kinds health-care system is stronger of entities to grow. In our in Poland than in many other opinion, such diversity would European countries. Why do bring benefits for patients. you think that is? I would need to know exactly which surveys in order to Another amendment to comment on the particular Poland’s law on medical servresults. I think that healthices will make it easier for care services are the object hospitals to hire nurses on of complaints in many Eurotemporary contracts. Nurses pean countries, not only are against the move. But Poland. would it allow your business Demographic problems to be more flexible? We do not expect that such due to the aging of societies changes would drastically or financial limitations are affect the private health-care very similar in many developed countries. At the same industry. time, people have great expectations in the field of How has this year’s increase health care because health is in VAT affected your busiequally valuable, regardless ness? The VAT changes have not of nationality. ●
BUSINESS ENVIRONMENT
MAY 30 – JUNE 5, 2011
www.wbj.pl
Poles value punctuality
Macroeconomics
Retail sales up, unemployment down But what does this mean for inflation? Positive April unemployment and retail sales data suggest consumer demand will continue to grow in Poland. Analysts say this has added to the list of arguments for a June interest rate hike, although one member of the rate-setting Monetary Policy Council (RPP) has cautioned against too much tightening. Unemployment came in at 12.6 percent for April, 0.5 percentage points lower than for the previous month, according to data from Poland’s Central Statistical Office (GUS). The number of unemployed fell by 90,000 to 2.04 million. Retail sales in Poland, meanwhile, rose by an annual 18.6 percent in April, nearly double the 9.4 percent
increase observed for March. Bank Zachodni WBK wrote in a market report that the data “confirmed strengthening consumer demand.” It should also be noted though that the catastrophe in Smolensk and period of national mourning last April suppressed consumption. Thus this April’s retail sales growth was due in part to a low base effect. Whatever the cause, BZ WBK analysts posited that the macroeconomic data supports both an optimistic GDP growth forecast for Q2 and the expectation that borrowing costs will be increased in June.
Dovish sentiment RPP member El˝bieta Chojna-Duch, however, expressed the opinion that a slew of further interest-rate increases
could stifle economic growth while still failing to get to grips with inflation. Poland has already raised rates three times this year. “The dilemma the RPP needs to face is whether to continue the tightening cycle and, if we do, when and at what level to end it, so that we don’t damage economic growth,” she told Bloomberg. Ms Chojna-Duch added that unemployment is still high, meaning wage pressures will likely remain relatively depressed and therefore have little impact on inflation growth. It is the effect of high commodity prices which has driven inflation in recent months, she said, adding that the phenomenon will soon fade. The RPP’s decision on whether it will end the “cur-
rent tightening cycle and shift to a neutral monetary policy stance” will be strongly influenced by the central bank’s next inflation projection, she
commented. April inflation stood at 4.5 percent y/y, well above the central bank’s 2.5 percent tarTK, GP get.
Turning a corner? Unemployment rate (in percentage), April 2010 to April 2011
14
12 11
Apr May June July Aug Sept Oct Nov Dec Jan Feb Mar Apr 2010 2011 Source: Central Statistical Office
Poland may cut 20,000 CEE IPO Summit The WSE talks IPOs at summit public sector jobs Polish Prime Minister Donald Tusk has reportedly implemented a policy known as “Plan B,” which will reduce public administration employment to 2007 levels. That could mean as many as 20,000 people lose their jobs, Rzeczpospolita reported, citing a leaked document. Mr Tusk would not need to introduce any special laws to allow him to carry out the plan, which would be concluded by the end of September of this year. Instead of the government dictating exactly where the cuts should be made, Mr Tusk’s latest plan gives power to the directors of individual departments to make decision
on who goes and who stays. Details for Plan B have just been obtained by reporters, but the document was prepared in February 2011, shortly after President Bronis∏aw Komorowski turned to the Constitutional Court to freeze the implementation of a law which would have seen public administration lay-offs of around 10 percent. Poland had over 430,000 public administration employees last year. Estimates vary as to exactly how many jobs would have been trimmed under the 10-percent plan, but it appears to have been roughly double the number the government GP now wants to cut.
Bourse in the spotlight at summit Opening the Central and Eastern Europe IPO Summit last week, Polish Prime Minister Donald Tusk praised the Warsaw Stock Exchange. He described the exchange as a symbol of Poland’s successful economic transition. The Warsaw bourse was the host of the summit, a two-day conference whose purpose was to bring together CEE companies considering public offerings and global investors seeking new opportunities. The event included discussion panels on the CEE region’s economic prospects and the WSE’s
More than half of workers in Poland are never late for work. Poles are not only extremely punctual, 42% of them also believe that being late is absolutely unacceptable, according to a poll conducted recently by the recruitment website Praca.pl.
An exporters’ dream?
13
10
11
role in it, as well as a number of sector-specific panels. There were also a number of forums devoted to the various mechanics of the IPO process. WSE president Ludwik Sobolewski was keen to stress that, in terms of the volume of new IPOs, his exchange lags behind only its Chinese counterpart. For her part, Warsaw Mayor Hanna GronkiewiczWaltz praised Warsaw as a financial center, emphasizing the cost of doing business and the supply of highly skilled workers as key advantages. Pension fund ING OFE, asset manager East Capital, hedge fund Eton Park,
Ukrainian agricultural firm Kernel and the Abu Dhabi Investment Authority were all honored at a Gala accompaning the event. On Friday, representatives of a number of companies gave presentations, including several from Ukraine, a country which now has seven companies listed in Warsaw. Among the firms present was Ukrnafta, Ukraine’s largest oil and natural gas extraction company. Earlier this year media reports stated that the crude fuel giant intended to go public in London, but its presence at the CEE IPO Summit suggests it might be weighing its options. David Ingham
Economists predict that the fiscal problems facing Portugal, Ireland, Italy, Greece and Spain could paradoxically help Polish exporters. The problems troubled European Union countries are facing increase Polish exporters’ competitiveness and also lower the value of the z∏oty, which is beneficial for exporters. “If it wasn’t for the PIIGS countries the z∏oty would be stronger,” Piotr Kalisz, chief economist at Bank Citi Handlowy, told Gazeta Wyborcza.
Corruption on the rise One of the effects of the financial crisis is that there is now more corruption in business. That’s the belief of one in three workers in Poland, and some 40% of Europeans, who were surveyed by Ernst and Young. Almost 75% of employees in Poland believe that corrupt practices are common in their country’s economy. ●
12
COVER STORY
www.wbj.pl
Bury reportedly violates anticorruption law
MAY 30 – JUNE 5, 2011
Polish-US relations
A tale of two allies
Deputy Treasury Minister Jan Bury violated an anticorruption law by becoming a shareholder in a company earlier this year, Rzeczpospolita reported. Last Thursday, he was interrogated by officers of the Central Anti-Corruption Bureau (CBA). In January, Mr Bury purchased 50 percent of all shares in a Rzeszów-based firm, but a 1997 anti-corruption law forbids persons performing public functions from holding more than 10 percent of a commercial company or partnership. Mr Bury admitted that he had made an “unintentional mistake.”
Alice Trudelle anniversary of Russia’s 1939 invasion of Poland as the day it announced the missile shield’s cancellation. The arrival in May 2010 of an unarmed training battery of American Patriot missiles, seen as an underwhelming symbolic gesture, did nothing to assuage Polish concern at the “deterioration” of the Polish-US relationship.
Still going strong
According to Finance Minister Jacek Rostowski, the only threats to Poland’s public finances are those from outside, particularly the situation in Greece. “The Greek situation is dangerous. We continue to watch it along with all other EU countries. Appropriate steps will be taken if necessary,” he said last Thursday. Asked about a safety cushion in next year’s budget in case the Greek crisis deepens, the minister assured that such measures had been provided for.
Poland’s EU HQ opened PM Donald Tusk has opened the offices of the Polish representation to the EU in Brussels. The facility has six aboveground and two belowground floors with 7,000 sqm of usable office space and 10,000 sqm of total surface space, reported Rzeczpospolita. Around 200 people will work at the offices. ●
COURTESY OF THE CHANCELLERY OF THE PRESIDENT
Greece may pose threat to Poland’s public finances
Barack Obama was reciprocating Bronis∏aw Komorowski’s December 2010 Washington visit
Although doubts have crept into the transAtlantic friendship, President Obama’s visit to Warsaw offered a sign that the relationship remains healthy Poland, like many of its neighbors, has lamented what it perceives as the shift of American diplomacy from a Europe-centric focus to one which is more global in scope. The country, long an ardent supporter of the US, has reacted in part by aligning its interests more with those of the European Union. But President Barack Obama’s trip to Warsaw last week seems to have bolstered faith in the trans-Atlantic friendship. The US president arrived with a clear agenda that included support for
democracy in North Africa, defense in Europe and exploration of Poland’s shale gas reserves.
A troubled friendship? Mr Obama’s victory in the 2008 presidential election elicited a sense of hopefulness in Europe, as evidenced by his 2009 Nobel Peace Prize. But the Old Continent later “fell out of love with him because he couldn’t deliver on Afghanistan, on Guantanamo, and on climate change,” said Jan Techau, director of
Carnegie Europe, a think tank. Europeans were also quick to realize that Mr Obama was much less Europeminded than the other politicians in Washington, Mr Techau explained. Like others all over the world, Poles had great expectations regarding his presidency and are still waiting for great achievements, said Zbigniew Kwiecieƒ, a historian at Warsaw University’s American Studies Center. And like many others around the world, Poles have been left disappointed. As early as July 2009, 22 Central and Eastern European intellectuals and former policy makers, including Poland’s Lech Wa∏´sa, sent an
open letter to the Obama administration. They lamented, “Twenty years after the end of the Cold War … our region is one part of the world that Americans have largely stopped worrying about.” Perhaps Poland’s greatest
But has the relationship really suffered that much? Perhaps not. On the eve of Mr Obama’s visit, nearly 80 percent of Poles said they believed that his visit to Poland was important, although over half did not agree with the statement that “Poland shares a special relationship with Washington,” according to a Homo Homini poll conducted for Polish Radio. Homo Homini head Marcin Duma told Polish Radio that the results indicate Poles are not as “excited” by the United States as they used to be. Nevertheless, the US has maintained close executivelevel contact with Poland. Vice President Joe Biden was quickly dispatched to Poland and the Czech Republic after the Bush-era missile shield was canceled. And only the eruption of an Icelandic volcano prevented President Obama from attending late President Lech Kaczyƒski’s funeral last April. The American president has also made eight visits to Europe so far, more than to any other continent. Indeed, this figure is higher than for any
“For almost 20 years, we have been allies in every sense” disappointment was the cancellation of President George W. Bush’s plan for a missile shield to be stationed in Poland and the Czech Republic. The United States added insult to injury by choosing the
other US president at this point in the first term of the presidency, US Ambassador to Poland Lee Feinstein stressed recently at a conference. All experts contacted for this article also insisted that
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COVER STORY
MAY 30 – JUNE 5, 2011
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13
Polish-US business relations
“Twenty years after the
The politics of shale gas
over the world that if American troops or military installations are in a country, then it gives that country additional security guarantees,” commented Mr Kwiecieƒ. “[Confirmation of] their presence here is a message to the world that Poland is among countries whose security and defense is important to American defense policy.”
COURTESY OF THE WHITE HOUSE
New frontiers
Many Poles feel Obama has turned his back on them any strain caused by the previous American disengagement in defense (and Poland’s disappointment, as documented in the diplomatic cables published by Wikileaks) is a hiccup in a strong and deep relationship. “For almost 20 years, we have been allies in every sense,” noted Mr Kwiecieƒ.
Security concerns Poland remains deeply uneasy about Russia, maintaining
that the Kremlin’s assertiveness towards the post-Soviet space requires the counterbalance of a continuing American political and military presence in Europe, but the US has acknowledged those concerns. The projected stationing of American troops serving F-16 jets on a rotational basis in Poland from 2013, discussed during Bronis∏aw Komorowski’s visit to Washington in December, should go a long way toward improv-
ing Polish sentiment on security cooperation. “I understand that this is a priority for Polish security politicy,” said Mr Techau. “For Poland this is obviously an insurance policy within NATO.” The possible deployment of SM-3 interceptors in Poland by 2018 as part of Washington’s ballistic missile defense plans was another important point on the visit’s agenda. “It is a popular belief all
In fact, last weekend’s visit highlighted new areas for possible cooperation in security. Poland is, proportional to its GDP, one of Europe’s big spenders on defense, and has made important contributions to international military coalitions in both Iraq and Afghanistan. The country is now putting its own experience on the front line of the EU’s engagement in North Africa, particularly in Libya. Earlier this month Rados∏aw Sikorski became the first EU foreign minister to travel to Benghazi, where he met the rebel leaders fighting Muammar Gaddafi. “We know what it’s like to be prisoners in our own land. We know about dismantling dirty secret police structures … about setting up honest banks, about building the rule of law from scratch,” Mr Sikorski said in a speech given at Harvard University earlier this year. And Poland is eager to share its experience. In North Africa, with diplomatic and training missions such as the one in Tunisia last month which included Nobel Prize winner Lech Wa∏´sa, but also elsewhere, such as in neighboring Belarus.
Bronis∏aw Komorowski’s December visit to Washington, however, Barack Obama expressed a willingness to see the issue resolved during his current term. Although the issue is often portrayed as a sentimental one, it is also a very tangible problem for the business community. “Very frankly, the Visa Waiver Program is one of the challenges we face,” said Eric Stewart, president of the US-Poland Business
Council, a Washington-based business lobby. The Council has been pressing Congress to pass legislation rectifying the situation quickly, he explained. “In a business context, we continue to be disappointed by the lack of Polish investment and Polish companies doing business in the US, and we are hopeful that if Congress is able to pass at least a waiver program, this will help alleviate some of the logistical challenges for Pol-
Shale gas reserves are enticing American companies, but inexperience could cost Poland some profit Polish-American business interests span a multitude of sectors, but the one on everyone’s lips last week during the American president’s visit to Warsaw was shale gas. The topic is controversial. Environmental groups in the United States are up in arms, claiming – with compelling evidence in some cases – that extraction has long-term implications for both human health and the environment. In
ish companies who try to do business in the US,” Mr Stewart said. He is not alone in this sentiment – Polish officials and businesspeople have long complained that Poland’s exclusion from the Visa Waiver Program hinders the two nations’ commercial ties. It is thus hoped that the measures suggested by President Obama during his visit last week will be pursued and implemented quickly. Alice Trudelle
Europe, the French are in the process of deciding on an outright ban on shale-gas drilling.
Fans of shale gas Poland, meanwhile, is enthusiastic about the industry, with energy security concerns outweighing environmental worries. The US Energy Information Administration recently caused a stir with an estimate that 5.3 trillion cubic meters of shale gas lie beneath Poland. These would be the largest reserves in Europe. If proven true, that quantity of gas would put a quick end to the country’s uncomfortable dependence on Russian gas. Continued on p. 14 ➡
What do Poles think? Do you think that Polish-American relations are better or worse under US President Barack Obama than during the tenure of former President George W. Bush?
19% 2% 55%
12%
Continued on p. 14 ➡
The visa question Poland is the only member of the 25-nation Schengen Area whose citizens cannot travel to the United States without obtaining a visa beforehand, a fact which rankles. The country has petitioned successive US administrations to allow it to enter the State Department’s Visa Waiver Program, but to no avail. Poland simply hasn’t met the criterion of having a visarefusal rate of below three percent. During Polish President
COURTESY OF CHESAPEAKE ENERGY
end of the Cold War … our region is one part of the world that Americans have largely stopped worrying about”
11%
1%
Somewhat better
Difficult to say
Somewhat worse
Definitely better
Definitely worse
Unchanged
How important do you think Barack Obama’s visit will be for Poland? 3%
6% 18%
23%
50%
Very important
Somewhat unimportant
Somewhat important
Totally unimportant
Difficult to say Source: CBOS
14
COVER STORY
www.wbj.pl
A tale of two allies ➡ Continued from p. 13 The advantages of having a close ally in these areas, where Americans tend to be personae non grata, are not lost on the Obama administration. North Africa was one of the top items on the US president’s agenda last Friday. But experts warn that although Poland’s transition is indeed an inspiring example, it might not be easily exportable. “There are some general transition lessons that [former communist] countries can provide,” said Mr Techau. But in 1989 the countries of the CEE region desired democracy as well as NATO and EU membership. They wanted to become liberal societies with open markets and free economies. The situation in the Arab world today is far less clear, Mr Techau explained.
Political capital While the spotlight was firmly on international matters during President Obama’s visit, there are also domestic implications. Both countries are gearing up for elections – Poland holds parliamentary elections this fall, while Obama will stand for reelection in 2012.
MAY 30 – JUNE 5, 2011
The politics of shale gas ➡ Continued from p. 13
On the other side of the Atlantic, the 10 million-strong Polish community would have been watching the visit closely, a point stressed by Poland’s Ambassador to the US, Robert Kupiecki, at a recent conference organized by the Heritage Foundation, a think tank. And for their part, Prime Minister Tusk and his Civic Platform government are expected to take full advantage of the possibilities presented by the top-level visit. “They will present Poland’s special relations with the US as – to a great degree – their achievement, sending the message to the public that they are friends of President Obama, and by extension that their foreign policy is the right one,” said Mr Kwiecieƒ. In his opinion, Europe still hasn’t come close to replacing America in Poland’s heart. “Of course the possibility of finding jobs in the UK, Ireland and now in Germany could change the Polish perspective in the long term, meaning that the ‘land of promise’ will be seen in Western Europe and not over the Atlantic Ocean,” said Mr Kwiecieƒ. “But,” he added, “that process will take some time.” ●
Despite concerns about opposition to shale gas appearing elsewhere in Europe, Poland’s nascent industry represents a major opportunity for American firms. US-based giants ExxonMobil, Chevron, ConocoPhillips and Marathon Oil have already begun exploring for deposits and Marek Karabu∏a, vice president of Polish gas monopolist PGNiG, recently suggested that American investments could reach billions of dollars. Indeed, US companies are putting forward their own experience as solid ground for a strong partnership with Poland, with support from professional groups, lobbying firms and independent experts. In the run-up to President Obama’s visit, bodies such as the USPoland Business Council, the American Chamber of Commerce in Poland and the Polish Exploration and Production Industry Organization Employers’ Union (OPPPW) all expressed great optimism about the industry’s future.
Attractive risks According to Grzegorz Pytel, an energy expert at the Sobieski Institute, a think tank, neither environmental concerns nor technical difficulties could pose
a serious threat to big oil and gas companies looking to develop their business. “In the last few decades, these companies have lost access to many prospective areas. I think they love it when we talk about challenging questions, concerns which are valid but can be overcome, because then companies point to the higher risk they are taking, which means giving them better fiscal terms,” said the expert.
“Shale gas represents a major opportunity for American firms” And Polish fiscal terms regarding shale gas, at least its exploration, are interesting indeed, he explained. Among the main points that were likely to have been discussed behind closed doors during Mr Obama’s meeting, guessed Mr Pytel, are negotiations to maintain good fiscal conditions for production: “no taxation regime, no hydrocarbon tax, no royalties, no profit sharing.” Another is a guarantee for production rights, which don’t come automatically with exploration licenses in Poland.
The cost of inexperience Asked about the principal challenges facing the shale gas industry in Poland, OPPPW president Michael Seymour said that his organization was currently “analyzing existing Polish oil and gas regulations to ensure the stability needed for the very major investment which lies ahead.” That American companies are interested in investing in Poland is clear. The question then is, how well is Poland prepared to take advantage of their interest? According to Mr Pytel, the Polish government’s lack of experience in dealing with skilled lobbyists like those that represent American oil companies could be one obstacle. Another is that people in the government, including Poland’s chief geologist, have expressed doubts regarding the upper estimates of reserves, which is simply a bad business strategy, Mr Pytel argued. “If the Polish government is telling Western companies that they don’t have that much gas, it means in practice that [the companies] are taking a higher risk. I have no explanation as to why many government officials are undermining Poland’s negotiating position.” Alice Trudelle
Seekers of shale gas Shale-gas concession holders in Poland as of May 1 COMPANY
CONCESSIONS
Australia Strzelecki Energia
1
Canada Helland Investments
1
Joyce Investemtns
1
Maryani Investments
1
Talisman Energy
1
Hungary DPV Service
5
Ireland Liesa Energy
4
Gora Energy Resources
1
Oculis Energy
2
Vabush Energy
1
Italy Miƒsk Energy Resources
3
Poland PGNiG
13
Orlen Upstream
6
LOTOS Petrobaltic
7
Scotland Composite Energy
1
UK Lane Energy Poland
6
Lane Resources Poland
3
Cuadrilla Polska
2
US Chevron
4
ExxonMobil
6
Marathon Oil
11
Indiana Investments
3
Saponis Investments
3
*Country indicates where investor is seated Source: Polish Ministry of Environment
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JW Construction is building for GP Investments
Echo has secured building permits for projects in two cities 17
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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
Airport makeover Architecture-engineering company PM Group has prepared a master plan for the expansion and modernization of Gdaƒsk Lech Wa∏´sa Airport. The plan, which has been cofunded by the EU, calls for modifications to the airport complex to be introduced by 2035. The main goal of the expansion is to increase the capacity of the airport to allow for growth in passenger numbers. ●
In this issue Stadium troubles . . . . . . . . .15-16 Galeria Mokotów sale . . . . . . . .15 Construction growth . . . . . . . . .16 Property-related stocks . . . . . .16 JWC projects . . . . . . . . . . . . . . . .17 Sawa Wilanów sales . . . . . . . . .17 WAN builds in Kraków . . . . . . .17 Inpro's Kwartał Kamienic . . . . .17 Hilton signs for two . . . . . . . . . .18 New Echo projects . . . . . . . . . .18
National Stadium delivery date in question Construction woes have officials and contractors pointing fingers A number of problems have recently surfaced at the site of Poland’s new National Stadium, delaying construction. One of the most serious is the revelation that stairs leading to the upper-level stands have not been built to withstand the large number of soccer fans which the facility is expected to host during next summer’s Euro 2012 championship. “These stairs really do constitute a danger,” Sports Minister Adam Giersz admitted in an interview with TVN24. The worst-case scenario, in terms of impact on the stadium’s delivery deadline, would be demolition and reconstruc-
The National Stadium is unlikely to be finished before 2012 tion of the stairs. There may be other options, but the authorities are waiting on a
report by experts, expected to be ready within the next few days or weeks, before making
a final decision. Another problem concerns the National Stadium’s elec-
trical system. According to an analysis by built-asset consultancy EC Harris, published by daily Dziennik – Gazeta Prawna, the stadium’s designer underestimated its electricity consumption and failed to include two substations and six equipment rooms in the design. Complications related to the pitch itself have also arisen. The National Sport Center (NCS) recently decided to use a modular turf system instead of traditional grass, as originally expected. The former is five times more expensive than the latter and installation of the system could postpone delivery of the National Stadium. Taken together, these and other setbacks could delay the Continued on p. 16 ➡
Globe Trade Centre sells stake in Galeria Mokotów Warsaw Stock Exchange-listed developer Globe Trade Center (GTC) has signed a preliminary agreement with a subsidiary of Unibail Rodamco for the sale of a 50 percent stake in the Galeria Mokotów shopping and entertainment center in Warsaw. The deal will give Unibail Rodamco’s subsidiary, which is already co-owner and manager of Galeria Mokotów, full ownership of the mall. It will also generate approximately €110 million of free cash flow for GTC, which the
developer intends to spend on future developments. Based on the transaction price, the entire asset is worth €475 million. “The value of the transaction demonstrates the high quality of GTC’s assets and its ability to generate profits upon their disposal as outlined in its strategy,” Eli Alroy, chairman of GTC’s supervisory board, said in a statement. “The transaction is in line with GTC’s strategy of rebalancing its property portfolio, including the sale of mature
assets and reinvesting in further expansion. As the real estate investment market continues to improve, we proceed with recycling of capital and plan new investments in the commercial sector in Poland,” Mr Alroy said. Located on ul. Wo∏oska in Warsaw’s Mokotów district, the Galeria Mokotów development comprises 62,000 sqm of GLA, housing numerous retail outlets and points of service and a multi-screen movie theater. It was completed in 2000. Adam Zdrodowski
COURTESY OF ADVANCED PUBLIC RELATIONS
Real estate investor Mielno Holding – Firmus Group is finishing construction work on its Rezydencja Park apartments in Mielno, Zachodniopomorskie voivodship. The 12-unit project, which is located on the Baltic Sea shore, will be turned over to new tenants at the beginning of summer. Rezydencja Park is being built by Koszalinbased AMB. Apartments are priced at z∏.7,300 per sqm and will be delivered in turn-key standard.
MAY 30 – JUNE 5, 2011, LI 16/21
Sports infrastructure
COURTESY OF WIKIMEDIA COMMONS
Rezydencja Park almost finished
•
Galeria Mokotów is valued at €475 million
16
LOKALE IMMOBILIA – REAL ESTATE
www.wbj.pl
MAY 30 – JUNE 5, 2011
National Stadium delivery date in question
Waimea Holdings Limited, the investor behind the Centrum Dystrybucji Korczowa Dolina wholesale-retail project, has announced the opening date for the first part of its investment. Hala Kijowska, which is currently undergoing finishing touches, will welcome its first tenants on June 30. Hala Kijowska’s tenant list includes over 100 brands. Apart from Hala Kijowska, Centrum Dystrybucji Korczowa Dolina will also comprise two other buildings: Hala Lwowska and Hala Doniecka.
➡ Continued from p. 11
ODIHR moves into palace
Most attractive sectors of the Polish construction market* in the next two years (in percentage)
Who to blame? There is a disagreement as to who is at fault for these issues: the NCS, which is in charge of the stadium investment, or the general contractor, a PolishAustrian consortium comprising Alpine Bau, PBG and Hydrobudowa. At stake are enormous penalties of up to z∏.1 million a day for the construction consortium, and the careers of top officials at the NCS. The consortium has blamed
date was subsequently pushed back to June 30. According to estimates from EC Harris, it now looks like the investment will not be completed before February or March 2012. Nor is the National Stadium the only Euro 2012 facility generating concern. Gdaƒsk’s PGE Arena is also expected to open late due to fears regarding fan safety. The stadium was scheduled to host a PolandFrance friendly on June 9, but this match has now been moved to Legia Warsaw’s newly refurbished stadium. Katarzyna Piasecka
PGE Arena will not host the Poland-France international
Construction in Poland to grow 11 percent in 2011 60
59
50 *Based on a survey of 111 respondents from large construction companies
40 40 30
23 17
20
10
10
8
10
7
6
4
2
2
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The OSCE’s Office for Democratic Institutions and Human Rights has moved into Mermaid Properties’ M∏odziejowski Palace, a historical property located in central Warsaw. The entity has taken up over 4,500 sqm of space in the 6,850 sqm building, which the developer bought in 2006 from Wydawnictwo Naukowe PWN. ●
the delays on faulty designs which were themselves, it adds, delivered after considerable delay. Thus the contractor has stated that a failure to meet the completion deadline will not be its fault. For its part, the investor has countered these allegations, noting that the contractor’s signature on the agreement means it tacitly accepted the designs. The stadium contract is worth z∏.1.5 billion. According to initial plans, the facility was expected to be completed on May 16, 2011, although this
stadium’s opening until 2012.
COURTESY OF BIEG 2012
Hala Kijowska June opening
Source: “Construction sector in Poland, H1 2011 – Development forecasts for 2011-2013” (PMR Publications)
The implementation of important civil engineering projects will help the Polish construction industry grow 11 percent in 2011, according to a report published by research company PMR. If this is borne out, the figure would mark the highest level of annual growth in the construction sector since 2008. Euro 2012 is the main catalyst behind the predicted growth, due to the realization of sports and road infrastructure-related projects ahead of next summer’s games. Solid growth will also be
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the construction market in 2011 will be followed by a downturn in the 2012-2013 period. The impetus for this, according to PMR’s analysts, will be a fall in the number of new civil engineering projects. According to PMR, optimism for the residential and railway construction sectors has grown the most over the past year, while the appeal of road construction, environmental construction and sports facility construction has declined. Katarzyna Piaseck a
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fueled by capital expenditure on water supply and sewage infrastructure projects, in both small and large urban agglomerations, and by railway construction projects. Furthermore, the power sector is expected to accelerate, with the number of investments planned in this sector having steadily grown recently. However, these will be implemented over extended periods of time and will start to yield substantial revenue only after 2013. The report’s authors also predict that prosperity for
Security
Closing price on May 26
% change (week)
52-week low
52-week high
% change (year)
Total shares
Market value (z∏.mln)
BUDIMEX
100.50
0.50
84.55
109.20
1.72
25,530,098
2,565.77
CELTIC
20.25
-3.57
17.00
60.55
N/A
34,068,252
689.88
DOMDEV
47.15
0.43
38.52
52.00
-5.70
24,560,222
1,158.01
ECHO
5.31
3.11
4.15
5.55
28.88
420,000,000
2,230.20
ELBUDOWA
157.90
0.64
149.00
188.40
-8.73
4,747,608
749.65
ENERGOPLD
3.99
0.00
3.57
4.31
-1.48
70,972,001
283.18
ERBUD
28.40
-4.38
28.20
61.00
-44.48
12,602,711
357.92
GANT
13.33
-0.37
12.98
23.38
-39.38
20,499,953
273.26
GTC
19.25
2.39
17.58
24.98
-19.79
219,372,990
4,222.93
HBPOLSKA
2.04
-5.56
2.04
3.90
-43.18
210,558,445
429.54
JWCONSTR
15.39
1.85
13.50
18.69
-3.45
54,073,280
832.19
LCCORP
1.52
1.33
1.41
1.72
4.11
447,558,311
680.29
MARVIPOL
8.40
12.15
7.40
16.50
-46.67
36,923,400
310.16
MIRBUD
3.94
-0.25
2.82
4.75
36.81
75,000,000
295.50
MOSTALWAR
32.50
-4.41
32.50
72.55
-51.49
20,000,000
650.00
MOSTALZAB
2.65
2.32
2.54
4.14
-31.70
149,130,538
395.20
ORCOGROUP
37.40
1.25
19.00
40.00
41.72
14,053,866
525.61
PBG
141.00
-0.70
135.80
252.00
-34.42
14,295,000
2,015.60
PLAZACNTR
4.75
-7.77
3.70
5.59
-4.62
292,647,720
1,390.08
POLAQUA
18.80
8.05
16.00
20.60
6.88
27,500,100
517.00
POLIMEXMS
3.10
0.32
2.91
4.84
-30.96
521,154,076
1,615.58
POLNORD
28.95
3.84
27.49
39.41
-21.76
23,798,439
688.96
RANKPROGR
12.71
-1.63
9.59
13.60
N/A
37,145,050
472.11
ROBYG
1.87
4.47
1.70
2.13
N/A
257,390,000
481.32
RONSON
1.45
0.00
1.36
1.81
-16.18
272,360,000
394.92
TRAKCJA
2.85
5.17
2.49
4.97
-33.10
232,105,480
661.50
ULMA
83.50
3.02
70.00
88.00
4.24
5,255,632
438.85
UNIBEP
6.89
5.03
6.38
10.30
-16.69
33,927,184
233.76
WARIMPEX
9.85
-1.10
7.64
10.89
22.06
54,000,000
531.90
ZUE
11.19
-3.70
10.80
15.14
N/A
22,000,000
246.18
LOKALE IMMOBILIA – REAL ESTATE
MAY 30 – JUNE 5, 2011
www.wbj.pl
17
Residential construction
Sawa Wilanów JWC builds for GP Investments apartments sales launch At the same time its parent company has been given the goahead on a project in Bia∏o∏´ka
COURTESY OF MARTIS CONSULTING
Osiedle Âwiatowida will host 166 apartments ter. The building will stand eight storeys tall in one section and nine storeys in another. It will host over 250 apartments, primarily two- and three-room units, ranging in size from 40 to 160 sqm. The investment is scheduled to be ready for tenants in Q2 2013. Meanwhile, JW Construction Holding, parent of JWC, has acquired a building permit for one of its own projects, Osiedle Âwiatowida in Warsaw’s Bia∏o∏´ka district. “Osiedle Âwiatowida is the second investment, after Zielona Dolina, which we’ve started building in Bia∏o∏´ka recently,” Tomasz Panaba˝ys,
deputy president of JW Construction Holding, said in a statement. He listed a number of advantages the district has, such as attractive land prices, green terrain and rapidly expanding municipal infrastructure. The development comprises three buildings of six to nine storeys, with a total of 166 apartments sized from 30 to 94 sqm. The average price per sqm amounts to z∏.6,200. The ground floor of each building will be devoted to retail space. Delivery of Osiedle Âwiatowida is scheduled for December 2012. E Blake Berry
The project will comprise seven buildings
COURTESY OF TAUBER PROMOTIONS
Inpro builds Kwarta∏ Kamienic Gdaƒsk-based developer Inpro is building a luxury apartment complex in the downtown area of its home city. The company’s Kwarta∏ Kamienic project, which will be styled after a tenement house in order to complement neighboring historical buildings, will comprise a total of 90 units sized from 30 to 99 sqm. Scheduled for completion in Q3 2012, the Kwarta∏ Kamienic scheme will feature the use of high-quality finishing materials characteristic of the historical architecture of central Gdaƒsk. The apartments, over 25 percent of which have already been sold, are priced from z∏.13,000 per sqm. “Kwarta∏ Kamienic belongs to the luxury apart-
Kwarta∏ Kamienic is scheduled for completion in Q3 2012
ment segment. The offer is targeted at a small group of potential buyers and its unique historic location as well as high standard and finishing quality will decide its success,” Piotr Stefaniak, president of Inpro’s management board, said in a statement. Warsaw Stock Exchangelisted Inpro came into existence in 1987 and is mainly present in the Tri-city market. The company builds high-end apartments and single-family houses; it is also present in the commercial property sector, in which it develops apart-hotels and office buildings. Inpro also offers construction services. Adam Zdrodowski
WAN enters Kraków’s residential market Warsaw-based developer WAN has launched construction on the Apartamenty Wielicka residential project in Kraków. The scheme marks the company’s first venture into the Kraków market; over the past 15 years WAN has mostly been known for its housing, office and recreation investments in Warsaw, Tri-city and the
Mazury lake district. “The former capital of Poland is a very attractive region, especially when it comes to residential investments,” Lechos∏aw Mitu∏a, president of the management board of WAN, said in a statement. He added that the developer sees huge potential in Kraków due to strong demand in the market.
Designed by the Oleksy & Polaczek studio, the Apartamenty Wielicka project will comprise five buildings with a total of 350 units. Apartments will be sized from 24 to 122 sqm and priced from z∏.5,700 per sqm. The project is to be built in a single phase which is scheduled to be completed in approximately two years’ time.
z∏.7,600 per sqm. A number of commercial units will also be included in the scheme. “The investment’s location on the Mokotów-Wilanów border and its very well-structured offer of apartments are undeniable assets of the investment,” Remigiusz Antczak, president of Sawa Apartments Wilanów’s management board, said in a statement. Designed by the Warsawbased Plus3 Architekci studio, the Sawa Wilanów project will be built in three phases, the
COURTESY OF CLEAR COMMUNICATIONS GROUP
JW Construction (JWC), one of Poland’s largest residential developers, has inked a contract to build a luxury residential project in Warsaw for investor GP Investments, a subsidiary of Spain’s Grupo Prasa. The contract is valued at z∏.80 million. A representative of JWC confirmed that the company, which usually performs general contracting services for projects developed by its own holding, has turned to outside projects as a means of diversifying its revenue streams. “This is an important, prestigious project for us, via which we want to open a door to realizing similar investments for external investors. The project already possesses a legally binding construction permit, so we are ready to launch work immediately,” Wojciech Rajchert, president of JW Construction, said in a statement. Wronia 45 will be situated on ul. Wronia, around three kilometers west of the city cen-
Sawa Apartments Wilanów has launched sales of apartments in a new residential complex in Warsaw. Called Sawa Wilanów, the development will be located south of the downtown area, close to where Al. Wilanowska, Al. Sobieskiego and Al. Rzeczpospolitej converge. The project will comprise seven buildings, each standing four storeys tall, with a total of more than 300 apartments sized from 30-150 sqm; the average price amounts to
In other news, WAN has announced the opening of its ONYX office building in Warsaw. The property is located between ul. Pu∏awska and ul. Taneczna and offers 3,150 sqm of space. The development was designed by the Baza Architekci studio and is being commercialized by Kancelaria Brochocki. Adam Zdrodowski
first of which will comprise approximately 110 units. W∏oc∏awek-based Budizol is serving as general contractor on the scheme. Sawa Apartments Wilanów’s shareholders are the (unnamed) owner of developer Sawa Apartments and BRE Property Partner, a company from the BRE Bank capital group. Sawa Apartments is known for projects such as Sadyba Park and Sawa Mokotów in Warsaw. Adam Zdrodowski
18
LOKALE IMMOBILIA – REAL ESTATE
www.wbj.pl
Commercial properties
Hampton by Hilton hotels to open in Warsaw, Gdaƒsk
Construction on Aquarius Business House is due to finish in October 2012
The company has secured permits for new projects in two cities Kilece-based developer Echo Investment has secured building permits for an investment in Wroc∏aw as well as for one in Szczecin. The former, the Aquarius Business House office project, will be located at the intersection of ul. Swobodna and ul. Borowska. It will comprise two
seven-storey buildings with a combined 25,000 sqm of leasable class-A area and 412 parking spaces. Development of Aquarius Business House will be carried out in two phases. Construction on the first has already started and is expected to finish in October 2012. Construction on the second phase of the investment is scheduled to launch in November next year and finish in February 2014. Aquarius Business House
Adam Zdrodowski
COURTESY OF HILTON
COURTESY OF ECHO INVESTMENT
Echo projects green-lit is not Echo Investment’s first venture in the Wroc∏aw market. In 2007 the company completed the Pasa˝ Grunwaldzki shopping and entertainment center in that city; Echo plans to expand the project in the near future. The firm is also involved in the development of a residential project on Wroc∏aw’s ul. JednoÊci Narodowej. In Szczecin, meanwhile, Echo Investment has obtained a building permit for its Outlet Park Szczecin retail project. The scheme, which will be developed in two phases, will offer a total GLA of approximately 24,000 sqm in which nearly 130 tenants will open shop. The first phase of the scheme is scheduled for completion in Q1 2012. Echo Investment and CB Richard Ellis are jointly commercializing Outlet Park Szczecin, which is nearly 50 percent leased out. “There are more negotiations pending, mostly with companies which are interested in outlets offering large areas,” Tomasz Domoƒ, leasing manager at Echo Investment’s shopping center department, said in a statement.
MAY 30 – JUNE 5, 2011
The Hilton Gdaƒsk opened last year Hotel chain Hilton Worldwide and hotel operator Port-Hotel have signed a pair of franchise agreements concerning new Hampton by Hilton hospitality facilities in Warsaw and Gdaƒsk. The developments will be located near the cities’ airports and are scheduled to be commissioned at the beginning of 2013. “The signing with PortHotel of two agreements concerning the opening of our economy brand hotels at the Warsaw and Gdaƒsk airports is another step in the development of the chain in Poland,” Patrick Fitzgibbon, vice presi-
dent of development in Europe & Africa at Hilton Worldwide, said in a statement. He added that Poland is a strategic market for the company, which has recently signed a number of agreements concerning the opening in the country of new locations for its Hilton, DoubleTree by Hilton, Hilton Garden Inn and Hampton by Hilton brands. The Hampton by Hilton Warsaw Airport and Hampton by Hilton Gdaƒsk Airport will each offer 116 rooms. The former will be located at the intersection of the capital’s Al. ˚wirki i Wigury and ul. 17 Stycznia,
approximately 800 meters from Warsaw Chopin Airport; the latter will be built just opposite the main terminal of Gdaƒsk Lech Wal´sa Airport. Hilton Worldwide plans to build more than 90 new hotels in Europe in the near future. A number of these investments will be located in Poland. Projects already in the pipeline include a Hilton Wroc∏aw, a DoubleTree by Hilton in ¸ódê, a Hilton Garden Inn Wroc∏aw, a Hilton Garden Inn Kraków Airport, a Hilton Garden Inn Rzeszów and a Hampton by Hilton ÂwinoujÊcie. Adam Zdrodowski
20
THE LIST
www.wbj.pl
MAY 30 – JUNE 5, 2011
Construction and Real Estate
Warehouse Space Operators Ranked by total rentable warehouse space
Company name Address Tel./Fax E-mail Web page
Total rentable warehouse space (sqm)
Rentable space breakdown (sqm): Warehouses / Refrigerated space / Warehouse office
Number of warehouse centers
2,117,160
2,117,160 -
25
Panattoni Europe (Panattoni Poland Sp. z o.o.) ul. Emilii Plater 53, 00-113 Warsaw 2 22 540-7171/22 540-7170 plinfo@panattoni.com www.panattonieurope.pl
1,200,000
WND WND WND
PointPark Properties Sp. z o.o. ul. Z∏ota 59, 00-120 Warsaw 3 22 828-4289/22 222-3522 info@pointparkproperties.com www.pointparkproperties.com
500,831
SEGRO Poland Sp. z o.o. Pl. Andersa 5, 61-894 Poznaƒ 4 61 850-5300/61 850-5301 poland@SEGRO.com www.SEGRO.pl
www.bookoflists.pl
Number of employees / Year founded
Ownership: Polish / Ownership: Foreign
Gdaƒsk; Szczecin; Warsaw; Nadarzyn; B∏onie; Janki; Sochaczew; Land selection and acquisition; builtTeresin; Piotrków Trybunalski; Rawa to-suit; facility management; Mazowiecka; Poznaƒ; B´dzin; development for lease Sosnowiec; Dàbrowa Górnicza; Chorzów; Wroc∏aw
✓ ✓
57 1997
None WND - 100%
25
O˝arów; B∏onie; Teresin; Pruszków; Garwolin; Gàdki; ˚erniki; Robakowo; Class-A warehouse space for lease; Gdaƒsk; Bielany Wroc∏awskie; Nowa build-to-suit; facility management; WieÊ Wroc∏awska; Mys∏owice; 24h security; elastic conditions of Czeladê; Gliwice; Bielsko-Bia∏a; lease; project management Skawina; Stryków; ¸ódê; Gr´bocin
✓ ✓
50 2005
WND
Managing Partner Central and Eastern Europe
469,428 9,500 21,903
2
Gàdki near Poznaƒ; Mszczonów near Warsaw
Facility management and administration
WND
WND 2007
WND Arcapita Bank - WND%
John Craig Maguire
475,200
435,700 6,300 33,200
5
Stryków; Gliwice; ¸ódê; Gdaƒsk; Nadarzyn near Warsaw
Facility construction and management; sale
✓ ✓
28 2006
None Slough - 100%
Magdalena Szulc
Grupa Raben ul. Poznaƒska 71, 62-023 Gàdki/ k. Poznania 5 61 898-8000/61 898-8801 poland.info@raben-group.com www.raben-group.com
435,000
395,000 40,000 -
37
Gàdki; Grodzisk Mazowiecki; Gliwice; Stryków; Lublin; Straszyn; Wroc∏aw; Chorzów; Szczecin; Olsztyn; W∏oc∏awek; Kalisz; Legnica; Kraków; Rzeszów; Bia∏ystok; Starachowice; Pi∏a; Opole; Cz´stochowa; Sosnowiec near Stryków; B∏onie
Full logistics service; warehousing; international and domestic distribution; full logistics service for fresh products (Fresh Logistics); sea and air forwarding (Raben Sea & Air)
✓ ✓
4500 1991
None Raben Group - 100%
Ewald Raben
FM Polska Sp. z o.o. (FM Logistic) ul. ¸ugowa 30, 96-320 Mszczonów 6 46 857-0001/46 857-0005 fmlogistics@fmlogistic.pl www.fmlogistic.com
393,000
WND WND WND
8
Co-packing; co-manufacturing; Mszczonów; Tomaszów Mazowiecki; handling; whole-vehicle transport in Jarosty; Wolbórz; Chorzów; B∏onie; Poland and international; cargo Olszowa transport; cross-docking
✓ ✓
2770 1995
None FM Logistic - 100%
Europolis Real Estate Asset Management Sp. z o.o. ul. Sienna 39, 00-121 Warsaw 7 22 850-3320/22 850-3321 warsaw@europolis.com www.europolis.com
261,690
235,000 14,850 10,700
2
B∏onie; Piotrków Trybunalski
Management
WND
WND 1992
WND
Bart∏omiej Hofman
MLP Group SA ul. 3. Maja 8, 05-800 Pruszków 8 22 738-3010/22 738-3019 info@mlp.pl www.mlp.pl
250,000
WND WND WND
4
Pruszków; Tychy; Brwinów; Poznaƒ (Koninko)
Full-service warehouse parks; built-to-suit
✓
11 1999
WND
Michael Shapiro
Fiege Sp. z o.o. ul. ¸ugowa 85, 96-320 Mszczonów 9 46 857-6000/46 857-6010 info@fiege.pl www.fiege.com
131,300
126,200 1,800 3,300
6+3 (platforms)
Mszczonów; Dàbrowa Górnicza; Nowy Dwór Mazowiecki; Le˝ajsk; Poznaƒ; Wroc∏aw; Gdaƒsk
Logistics services: warehousing, packing, co-packaging, international forwarding, customs services, international distribution, complete supply chain management
✓
430 1997
None Fiege Deutschland - 100%
Piotr Kohmann
95,221
85,500 4,000
7
Warsaw; Kampinos; O∏tarzew; Sosnowiec; Poznaƒ; Gdaƒsk; ¸ódê
Warehousing; customs and pharmaceutical depot services; custom agency services; co-packing
✓ ✓
350 1995
None DSV - 100%
Krzysztof Redkowiak
Menard Doswell & Co. Sp. z o.o. ul. Pu∏awska 303, 02-785 Warsaw 11 22 854-1200/22 854-1201 biuro@doswell.com.pl www.doswell.com.pl
90,900
83,000 3,200 4,700
1
Czeladê
Logistics center management
WND
WND 1992
None WND - 100%
Andrzej Mogielnicki
Platan Group Sp. z o.o. ul. Poleczki 23, 02-822 Warsaw 12 22 545-0245/22 545-0246 platangroup@platangroup.com.pl www.platangroup.com.pl
54,861
31,288 23,573
1
Warsaw
Technical management; operational management; marketing & PR; project management; financial services
✓ ✓
49 1995
None Aartsengel Tom Holding - 100%
Karolina Kaim
CN CORP Sp. z o.o. Sp.k. (dawniej Hammilton Centrum Sp. z o.o.) ul. Skarbowców 23A, 53-025 Wroc∏aw 13 71 352-8142/71 352-8374 centrum@hammilton.com.pl www.hammilton.com.pl
47,350
43,500 3,850
1
Wroc∏aw
24h security; production and specialized warehouse space for lease (archives, pharmacy); cleaning service; flexible lease terms; strong power connection available
✓ ✓
33 1996
WND - 100% None
Wies∏aw Pyszczek
PEKAES SA ul. Spedycyjna 1, 05-870 B∏onie 14 22 460-2626/22 460-2727 kontakt@pekaes.com.pl www.pekaes.com.pl
41,253
41,253 -
8
Warehouse logistics; cargo and B∏onie; Czechowice-Dziedzice; whole-vehicle transport service; sea Gdaƒsk; ¸ódê; S∏ubice; Sosnowiec; and air freight forwarding; freight Szczecin; Wroc∏aw forwarding for fairs and sporting events; customs agency service
✓ ✓
656 1958
KH Logistyka - 57%; ING OFE 11%; Bank Gospodarstwa Krajowego - 5%; Own Shares 1%; Others - 25% None
40,000
40,000 -
Full logistics services for fresh products: warehousing, warehouse service, additional warehouse service, deliveries preparation, international and domestic distribution
✓ ✓
520 2002
None Raben Group - 100%
Rank
Contracts: Short-term / Long-term
ProLogis ul. Z∏ota 59, 00-120 Warsaw 1 22 218-3600/22 218-3601 info-pl@prologis.com www.prologis.com
DSV Solutions Sp. z o.o. ul. Miƒska 63, 03-828 Warsaw 10 22 244-7636/22 670-6802
dpr@pl.dsv.com www.dsv.com/pl
Fresh Logistics Sp. z o.o. ul. Poznaƒska 71, 62-023 Gàdki/ k. Poznania 15 61 898-8400/61 898-8450 freshlogistics@raben-group.com www.freshlogistics.com.pl
Notes: NR = Not Ranked, WND = Would Not Disclose. Research for the List was done in May 2010. Number of employees and ownership structure are as of April 2010. All information pertains to the companies’ activities in Poland. Companies not responding to our survey are not listed.
6
Locations
Gàdki; Grodzisk Mazowiecki; Gliwice; Straszyn; Wroc∏aw; ¸om˝a
Services offered
Top local executive / Title
Ben Bannatyne Managing Director for Central and Eastern Europe
Robert Dobrzycki
Managing Director
Business Unit Director Central Europe
CEO
Yann Belgy General Director
Managing Director
President
General Director
Managing Director
Proxy
President
Proxy
Jacek Machocki President
Ewald Raben CEO
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.
MARKETS
MAY 30 – JUNE 5, 2011
www.wbj.pl
Stocks report
world stock indices DJIA
NASDAQ
12,395.00 (May 26 close)
S&P500
2,786.46 (May 26 close)
-1.61% (for the week)
FTSE100
1,326.24 (May 26 close)
-1.30% (for the week)
DAX
5,877.52 (May 26 close)
-1.23% (for the week)
-0.91% (for the week)
WIG shows resilience
NIKKEI225 7,111.73 (May 26 close)
9,557.32 (May 26 close)
-3.22% (for the week)
-0.71% (for the week)
CHANGE: 7.06%
CHANGE: 4.10%
CHANGE: 5.46%
CHANGE: -0.38%
CHANGE: 1.98%
CHANGE: -7.68%
(year to May 26)
(year to May 26)
(year to May 26)
(year to May 26)
(year to May 26)
(year to May 26)
52-week high: 12,928.50
52-week high: 2,887.75
52-week high: 1,370.58
52-week high: 6,105.80
52-week high: 7,600.41
52-week high: 10,891.60
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: 5,798.39
52-week low: 8,227.63
Andrew Nawrocki, Market analyst & trader, gowebtrade.com
49,215.53 (May 26 closure)
WIG20
2,855.90 (May 26 closure)
26.05
25.05
24.05
23.05
20.05
19.05
18.05
17.05
16.05
13.05
12.05
11.05
10.05
26.05
25.05
24.05
23.05
20.05
19.05
18.05
17.05
16.05
2,000
13.05
42,000
12.05
2,200
11.05
44,000
10.05
2,400
09.05
46,000
06.05
2,600
05.05
48,000
04.05
2,800
02.05
50,000
29.04
3,000
28.04
52,000
09.05
52-week low: 2,270.13
06.05
Change year to May 26: 3.67%
05.05
52-week low: 39,109.37
04.05
52-week high: 2,932.62
Change year to May 26: 3.29%
02.05
Change for the week: 1.22%
29.04
52-week high: 50,371.74
28.04
Change for the week: 0.96%
Top 5 IGROUP MIDAS BMPAG MOSTALEXP KREZUS
Closing 0.34 1.99 6.80 1.36 5.50
% change (week) 52-week high 70.00 0.95 46.32 6.22 24.54 6.80 22.52 2.09 19.57 5.50
52-week low 0.18 1.36 3.06 1.07 1.31
Top 5 TPSA CYFRPOLSAT PGNIG KGHM PKNORLEN
Closing 18.20 17.35 4.35 186.40 52.35
% change (week) 3.94 3.89 3.08 2.98 2.75
52-week high 18.65 17.35 4.35 198.40 57.90
52-week low 14.10 13.36 3.29 88.50 35.48
Bottom 5 MEDIATEL ABMSOLID PTI TIM MEWA
Closing 5.22 8.99 7.03 10.94 0.65
% change (week) -11.53 -11.43 -10.90 -9.88 -9.72
52-week low 5.22 8.99 6.51 10.29 0.01
Bottom 5
Closing
% change (week)
52-week high
52-week low
CEZ
148.30
-3.58
154.10
118.70
PKOBP
43.00
-2.07
46.81
36.15
TVN
16.66
-2.00
18.90
15.95
BRE
336.10
-1.03
349.00
222.50
GETIN
13.95
-0.85
15.29
9.35
52-week high 10.60 25.98 12.00 15.40 0.82
Currency report
Uncertainty reigns
Other indices mWIG40
2,922.23 (May 26 closure)
sWIG80
12,405.53 (May 26 closure)
NewConnect
56.82 (May 26 closure)
2
6,983.35 (May 26 closure)
SOURCE: WSE
26.05
25.05
24.05
23.05
20.05
19.05
18.05
17.05
16.05
13.05
12.05
11.05
10.05
26.05
25.05
24.05
23.05
20.05
19.05
18.05
17.05
16.05
13.05
6,500
12.05
50
11.05
6,700
10.05
52
09.05
6,900
06.05
54
05.05
7,100
04.05
56
02.05
7,300
29.04
58
28.04
7,500
09.05
52-week low: 5,751.39
06.05
Change year to May 26: 0.31%
05.05
52-week low: 54.52
04.05
52-week high: 7,387.49
Change year to May 26: -10.39%
02.05
Change for the week: -0.33%
29.04
52-week high: 64.39
28.04
Change for the week: 0.41%
60
Adam Narczewski, X-Trade Brokers Dom Maklerski SA
26.05
2 25.05
2 24.05
2 23.05
20.05
19.05
18.05
2
WIG-Banki
17.05
16.05
13.05
12.05
11.05
10.05
09.05
06.05
05.05
04.05
02.05
29.04
28.04
26.05
25.05
24.05
23.05
20.05
19.05
18.05
17.05
16.05
13.05
11,000 12.05
2,200
11.05
11,400
10.05
2,400
09.05
11,800
06.05
2,600
05.05
12,200
04.05
2,800
02.05
12,600
29.04
3,000
28.04
13,000
0
52-week low: 10,980.45
0
Change year to May 26: 1.27% 0
52-week low: 2,361.69
0
52-week high: 12,932.00
Change year to May 26: 4.08%
0
Change for the week: 0.05%
2
52-week high: 2,987.72
2
Change for the week: 0.70%
3,200
within Poland. April retail sales were up 18 percent y/y, while unemployment fell under 13 percent for the first time in 2011. The WIG and WIG20 both closed on Wednesday approximately one percent higher, while Thursday brought modest gains of 0.14 percent and 0.08 percent, respectively. Among the biggest gainers of the week on the WIG20 were Ukrainian agricultural concern Kernel and developer GTC. The latter, despite falling five percent on Monday, rebounded after news spread that the developer had sold its remaining stake of a prized asset – shopping center Galeria Mokotów. This week’s important news will certainly come from the US, with nonfarm payroll figures due on Friday. ●
The global macroeconomic picture does not look awfully promising, as the beginning of last week amply demonstrated. Investors began the week with renewed concerns over Greece, as the country’s creditworthiness was downgraded for a second time, while Italy and Belgium were warned that their ratings might also slip. Leading global indices closed sharply lower on Monday, which Warsaw’s overall WIG fell half a percent. Despite a bleak start, the rest of the week was better. Tuesday saw higher-thanexpected IFO data from Europe’s biggest economy, Germany, as well as betterthan-forecast new US home sales. The trend continued through Thursday, this time with good news coming from
Major indices WIG
21
Volatility has returned to financial markets. Risk aversion increased this past week on news from financially challenged countries on the euro zone’s periphery. After Greece’s debt downgrade, it has been suggested that the IMF might not transfer the fifth tranche of the financial aid it had promised. At the same time, the socialists lost local elections in Spain, causing concern that higher than officially reported local government debt will soon be revealed. Macroeconomic news from both the euro zone and the US was not able to salvage the situation and uncertainty about economic recovery is back. Increased risk aversion pushed the EUR/USD below $1.40, its lowest level since midMarch. Throughout the
week, however, the euro recovered, mainly due to worse-than-expected US macro data. The EUR/USD finished the week strongly, at $1.42. As investors became increasingly concerned with the euro zone, they fled emerging markets, hurting the z∏oty in the process. The local currency steadily depreciated against the euro throughout the week, from z∏.3.91 all the way to z∏.3.97. The USD/PLN was more volatile, reaching z∏.2.82, but on Friday the z∏oty regained ground to finish at z∏.2.79. Nevertheless, the most closely watched currency this past week was the Swiss franc, which appreciated against the z∏oty to z∏.3.26. The last time the franc was at such a high level was midMarch of this year. ●
currency rates 3.4298 26.05
3.4567
3.4223 25.05
27.05
3.4246 24.05
SOURCE: NBP
3.4565 23.05
3.0
20.05
3.3576
0.0994 27.05
0.0993
0.0987
PLN-100JPY
3.5
26.05
25.05
0.0987 24.05
23.05
0.0980 20.05
3.2195
3.2612 27.05
0.09
0.0992
PLN-RUB
0.10
26.05
3.2038 25.05
3.1767 24.05
3.1929 23.05
27.05
26.05
25.05
24.05
23.05
3.0
20.05
3.1135
4.5944
4.5652
4.5412
4.5196
4.4503 20.05
4
PLN-CHF
3.5
2.8003 27.05
2.8033 26.05
2.8100 25.05
2.8024 24.05
2.8193 23.05
20.05
2.7377
3.9785 27.05
26.05
25.05
2.5
PLN-GBP
5
4.5502
PLN-USD
3.0
3.9685
3.9511
3.9481 24.05
23.05
3.9207 20.05
3.8
3.9437
PLN-EUR
4.2
22
ARTS & CULTURE
www.wbj.pl
MAY 30 – JUNE 5, 2011
Concert
Expo
Katie Melua’s “Bicycles” coming to Warsaw
A showcase of manliness
Georgia-born singer-songwriter Katie Melua comes to Warsaw this week, touring in support of her fourth studio album, “The House.” As well as songs from her latest offering, which was produced by William Orbit
(producer of Madonna’s “Ray of Light”), the charttopping artist will be performing some of her greatest hits, such as “Nine Million Bicycles” and “The Closest Thing to Crazy.” ●
For more information log on to www.kongresowa.pl
COURTESY OF WIKIMEDIA COMMONS/KIRK STAUFFER
Sala Kongresowa Pl. Defilad 1 May 31, 8 pm
Men's Day Tor wyÊcigów konnych S∏u˝ewiec ul. Pu∏awska 266 June 4-5, 10 am – 10 pm Fast cars, motorbikes, military expos and an adult-only zone are all part of the
Held in 1991 to coincide with a papal visit, the first Interna-
For more information, log on to www.mensday.pl
School of rock
Sounds of the sacred tional Sacred Music Festival aimed to bring music back to places of worship. The success of the first festival saw a oneoff event become an annual celebration. This year’s performers
and Monopol sure to warm up the crowd at this two-day event. Early sale tickets are available from the festival website for z∏.25. ●
Music festival
Church music The International Sacred Music Festival Various locations, including St. John's Cathedral June 5-12
entertainment available for this testosterone-fueled celebration of all things manly. The organizers promise a “hands on” approach to everything on show, with performances by dance acts Mafia Mike, Wet Fingers
include Italian organ player Donato Cuzzato and French soprano Fabrice di Falco. All concerts are free to attend. ●
Ursynalia 2011, Warsaw Student Festival Warsaw University of Life Sciences campus ul. Nowoursynowska 166 June 1-3 Poland’s biggest open-air student event is scheduled for the first three days of
June, with American nu metal legends Korn among the headline acts at Ursynalia 2011. Other performers at the festival include Alter Bridge (three-fourths of American post-grunge act Creed), German alt rockers Guano Apes and Canadian
pop punk band Simple Plan. As well as an eclectic range of music, this annual festival also includes numerous student-led projects that vistors can get involved in. ● For more information, log on to www.ursynalia.pl
For more information, log on to www.kapitula.org
Swing festival WASA Swing Festival Sala Kongresowa Pl. Defilad 1 June 5, 7 pm A Polish-Swedish celebration of swing music will take place on June 5 as part of a celebration for the National Day of
Sweden. Eighty-nine year-old Belgian jazzman Toots Thielemans, a legendary harmonicist, will be the star of the show. Viktoria Tolstoy, a famous Swedish singer and descendent of Russian author Leo Tolstoy, will also perform.
In addition, the concert will feature lindy hop dance demonstrations by the Harlem Hot Shots. Tickets are priced from z∏.50. ● For more information, log on to www.kongresowa.pl
COURTESY OF URSYNALIA
Swedish swingers
Medieval fair Get an Insider’s glimpse at all that Warsaw has to offer with the Warsaw Insider!
A day of knights 16th Warsaw Tournament for the Saber of King Sigismund III Vasa Dom Kultury Âwit ul. Wysockiego 11 June 5, 11 am – 7 pm Medieval jousting and sword
play are just some of the attractions at this family friendly event, which aims to capture the flavor of an era when knights in dented armor ruled the land. Apart from the tournament, the program also
includes demonstrations of dimly remembered arts, a market for olde-style handicrafts, musical performances and a children’s corner. ● For more information, log on to www.dkswit.com.pl
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 Asymetria ul. Nowogrodzka 18a www.asymetria.eu Galeria Foksal ul. Foksal 1-4 www.galeriafoksal.pl
Warsaw’s most popular Englishllanguage lifestyle lif t l magazine i ffeatures: t :
Galeria Milano Rondo Waszyngtona 2A (Praga) www.milano.arts.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 Schody ul. Nowy Âwiat 39 www.galeriaschody.pl
Subscribe to the Insider! Contact t t kwilinski@valkea.com k ili ki lk
Galeria XX1 Al. Jana Paw∏a II 36 www.galeriaxx1.pl Green Gallery ul. Krzywe Ko∏o 2/4 www.greengallery.pl Katarzyna Napiórkowska Art Gallery ul. Âwi´tokrzyska 32, ul. Krakowskie PrzedmieÊcie 42/44
and Old Town Square 19/21 www.napiorkowska.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 Rempex Art and Auction House ul. Karowa 31 www.rempex.com.pl
State Archaeological Museum in Warsaw ul. D∏uga 52 (Arsena∏) www.pma.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
Royal Castle Pl. Zamkowy 4 www.zamek-krolewski.com.pl
Wilanów Palace Museum and Wilanów Poster Museum ul. St Kostki Potockiego 10/16 www.milanow-palac.pl www.postermuseum.pl
Simonis Gallery ul. Burakowska 9 www.simonisgallery.com
Zachęta National Art Gallery Pl. Ma∏achowskiego 3 www.zacheta.art.pl
LAST WORD
MAY 30 – JUNE 5, 2011
www.wbj.pl
23
Tech Eye
Quest for a desk
puter disappears into the bowels of the desk (hopefully to reappear if you push the button again). There’s also a crank handle which regulates height and “self closing lockable drawers.” The only downer is the price tag: £150,000. On the upside, it’s not the kind of desk in which you’re likely to misplace a sandwich.
Dressers and skewers In the course of reading about desks, we came across a few other pieces of intriguing furniture as well. Take, for example, the “Training Dresser” from designer Peter Bristol (www.peterbristol.net). This is a fun
little dresser for kids (or simpleminded adults like Techeye), where the shape of each drawer depicts its contents. Or perhaps you could swap the contents of the sock and underwear drawers, confounding parents and would-be sock thieves in a single stroke. The Training Dresser is made from maple plywood, with both boys’ and girls’ versions available (the latter is pictured below). Expect to pay $1,500. We’d also like to add an honorable mention to this hodge-podge of fancy furniture: the “Magistral Cabinet” by sculptor and designer Sebastian Errazuriz (www.meetsebastian.com).
This hedgehoggy item is more of an objets d’art than a practical place to stow your vinyl chaps, so we’re tacking it on at the end. On the inside, the Magistral Cabinet comprises a pair of drawers and storage space. But that mundane interior is encased by 80,000 pointy bamboo skewers which threaten to warp your vision should you stare too long. Pricing, meanwhile, is shrouded in mystery. But consider this: with all those skewers, keeping the Magistral Cabinet clean must be a mighty annoying task. Ideal present for Mother-in-law Day? We think so. ●
COURTESY OF PETER BRISTOL
COURTESY OF LUZZO BESPOKE
One option is Duffy London’s “Transforming Coffee Table 2, Metal” (www.duffylondon.com), which we’ve affectionately dubbed “the TCT2M.” Granted, it’s probably a poor candidate to replace our desk, but it’s kind of shiny and looks cool. That’s really all that matters. As its name implies, the TCT2M is
a transforming coffee table. And what does it transform into? A little metal pterodactyl? A statue of the Buddha from the Western Land of Ultimate Bliss? No, friends, sadly not. It just transforms into a dining table, albeit a shiny, cool-looking dining table. As a coffee table the TCT2M’s dimensions are 90 x 70 x 35cm, while as a dining table it stands 160 x 70 x 75cm. In either form it costs £995 (expect eight to 10 weeks for delivery). A more likely replacement for our befouled furniture is the “Bugatti Grand Prix car inspired desk” from Luzzo Bespoke (www.luzzobespoke.com). Drawing on the designs of late 1920s, early 1930s Bugatti race cars, each of the 10 limited edition desks is the product of over 3,500 hours of computer design, machining, polishing, painting and assembly. That’s only five hours longer than it took Techeye to put together the last chair we bought at Ikea. Anyway, Luzzo’s desk has some fancy tricks up its sleeve, such as the Mac incorporated into its design. Push a button and the com-
COURTESY OF DUFFY LONDON
Reaching absent-mindedly into a desk drawer last week, Techeye made a startling discovery. We had been seeking a red pen (wonderful for making tyrannical edits to uppity journalists’ work), but it slipped behind a notebook. That’s when our questing fingers encountered something unexpected. Something soft and pleasingly fuzzy. It was our lunch from December 13, 2010. Time, it seems, is no friend to ham-and-mozzarella sandwiches. We had been convinced our boss had swiped that lunch. He reeked of cheese and meat that day, and his face was twitching suspiciously (from the sublime deliciousness of our food, we thought). But we later realized that he’s just naturally blessed with a facial tick and sandwich musk. So the mystery of the missing lunch is solved, but the tragedy of it has ravaged our once-harmonious relationship with the desk. Time to find a new one, then.
COURTESY OF SEBASTIAN ERRAZURIZ
A glimpse into the drawer of Destiny
Ever taken revenge on your boss – perhaps by rubbing his coffee mug around the rim of a toilet – only to discover he was innocent? Let us know: techeye@wbj.pl
To advertise in WBJ’s classifieds section, contact Ms Agnieszka Brejwo, at (+48) 222-577-526 or abrejwo@wbj.pl
Published on Jul 12, 2011
S S u u m m m m i i t t b b o o y y c c o o t t t t Lokale Immobilia • National Stadium concerns • Galeria Mokotów sold • Echo’s new project...
