WBJ #23 2011

Stefan Kury∏owicz, one of Poland’s most acclaimed architects, died in a tragic airplane crash over Spain last week

Pakistan’s ambassador to Poland assures WBJ that his country is a leader in the fight against terrorism

4,17

WWW.WBJ.PL

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VOLUME 17, NUMBER 23 • JUNE 13-19, 2011 . z∏.12.50 (VAT 8% included) . ISSN 1233 7889 INDEX-RUCH-332-127

REAL ESTATE

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Lokale Immobilia

Inward tourism to Poland this summer may give the 8-9 economy a boost

• A2 troubles • Kury∏owicz dies • Ghelamco’s skyscrapers 17-19

A guide to Polish business and industry

Przewodnik po polskim biznesie i gospodarce

IT consulting companies 21

In this issue

SHUTTERSTOCK

News . . . . . . . . . . . . . . . . . . . . . . .2-5 Interview . . . . . . . . . . . . . . . . . . . .6-7 Cover Story . . . . . . . . . . . . . . . . . .8-9 Opinion . . . . . . . . . . . . . . . . . . . . . .10 Hi-Tech Poland . . . . . . . . . . . . .11-14 Business Environment . . . . . . . . .15 Industry News . . . . . . . . . . . . . . . .16 Lokale Immobilia . . . . . . . . . . .17-19 Markets . . . . . . . . . . . . . . . . . . . . . .20 The List . . . . . . . . . . . . . . . . . . . . . .21 Arts & Culture . . . . . . . . . . . . . . . .22 Last Word . . . . . . . . . . . . . . . . . . . .23

Highway to hell

Hi-tech Poland

One of the most important infrastructure investments for Euro 2012 has been thrown into question 3, 10, 17

WBJ features a special pull-out supplement on Poland’s innovative companies and technologies 11-14

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NEWS

www.wbj.pl

Poland pushes for Schengen deal

JUNE 13-19, 2011

IN THE SPOTLIGHT

Numbers in the News

Joanna Kluzik-Rostkowska

25 is the number of basis points by which Poland’s Monetary Policy Council hiked Poland’s reference interest rate last week, to 4.5 percent

Polish Interior Minister Jerzy Miller has said he hoped that a partial accession of Bulgaria and Romania to the Schengen area might be completed during the Polish presidency of the EU Council, the EU Observer website reported. In the first phase, only airports would be included, leaving sea and land borders for a later stage.

5% is the amount by which some members of the European Parliament are looking to increase EU spending between 2014 and 2020, but a number of member governments oppose the idea

12.2% is the Labor Ministry’s estimate for the unemployment rate in May. Though lower than last month, the drop is mostly due to seasonal jobs, rather than a real change in the labor market

Belarus gets $3 billion from Russia

Gays can become foster parents An amendment to the law on family support and alternative care to prohibit same-sex couples from becoming foster parents was overturned by the Sejm last Thursday. Deputies argued that the amendment may be inconsistent with the Constitution and with European law.

z∏.30 million is the estimated weekly losses for Polish strawberry farmers due to the recent Russian embargo on fresh produce REPORTER POLAND/ANNA KACZMARZ

The largely Russiancontrolled Eurasian Development Bank (EDB) has signed an agreement with Belarus for a $3 billion loan. Russian Finance Minister Alexei Kudrin was quoted by the EDB as saying the loan would be conditional on privatization of state assets worth $7.5 billion over three years. Mr Kurdin also said the $3 billion might be insufficient and that Belarus “should address the International Monetary Fund.”

Quote of the Week “We need to restore the honor of the cucumber” Spanish Member of the European Parliament Francisco Sosa-Wagner, while holding up a cucumber, laments the fruit’s fall from grace after the recent E. coli scare throughout Europe

The political future of MP Joanna Kluzik-Rostkowska, one of the founders of the Poland Comes First (PJN) party, which came into existence in November last year as a breakaway group from the opposition Law and Justice (PiS), became the subject of much speculation in Poland last week after it had become clear that she could leave the formation, and possibly join the ruling Civic Platform (PO), in the near future.

For all the media attention bestowed on PJN founders and members after their defection from PiS, Ms Kluzik-Rostkowska’s party has not been faring well in opinion polls of late and it is looking increasingly likely that it will

not make it to the Sejm after the parliamentary elections scheduled to take place in Poland in autumn this year.

Some tensions between the leaders of the PJN have emerged since the establishment of the party. At a party congress on June 4, MEP Pawe∏ Kowal was elected the new head of the group; Ms Kluzik-Rostkowska had not been running for the position and has recently also announced she will give up her remaining functions in the PJN as a result of her vision of the party having been repudiated by party colleagues.

As WBJ went to press, there were some media reports saying that Ms KluzikRostkowska had already been

offered a place on a PO election list in Silesia and some were expecting her to turn up at the ruling party’s congress in Gdaƒsk last Saturday. Earlier, there had also been speculation that Ms KluzikRostkowska could be offered a job in the Chancellary of the President or in the Chancellary of the Prime Minister.

Born in 1963 in Katowice, Ms Kluzik-Rostkowska holds an MA title in journalism from the University of Warsaw. She was labor and social policy minister from August 13 to November 16, 2007, during the government of Jaros∏aw Kaczyƒski.

Last year, Ms Kluzik-Rostkowska headed Mr Kaczyƒski’s presidential campaign.

The age factor Estimated median age on January 1, 2010, selected EU countries 50 44.2

43.1

41.1

39.8

40

39.2

38.2

37.7

36.9

36.2

Slovakia

Cyprus

30

20

10

0

Germany

Italy

Austria

France

Lithuania Romania Poland

Source: Eurostat

Company index

Adam Zdrodowski

Accenture ..................................21 IDS Scheer ................................21 PL.2012 ........................................4

On WBJ.pl Balcerowicz opposes nuclear power The construction of a nuclear power plant in Poland does not make economic sense, according to Leszek Balcerowicz, one of the key architects of Poland’s free-market reforms.

W∏adys∏aw Mielczarski, energy expert at Mr Balcerowicz’s Civil Development Forum (FOR), added that the country does not have a network capable of transferring such large amounts of energy.

Poland’s first nuclear power plant is scheduled to be operational by 2020. ●

Figures in focus

Hala Mirowska As part of a series on Warsaw’s coolest spots this summer, WBJ’s international news editor takes you to her favorite market: Hala Mirowska. Log on to WBJ.pl to discover this captivating place in pictures

Adidas ..........................................6 Immoeast ..................................19 PolskiBus ....................................9 Akamai Technologies ................14 Immofinanz Group ....................19 Polskie Koleje Paƒstwowe ........18 Bank Gospodarki ˚ywnoÊciowej ..16 Information Technology Center PricewaterhouseCoopers ..........21 Bellona ......................................19 for Mining ..................................12 Puma ............................................6 Bergson ......................................18 Infovide-Matrix SA ....................21 PZU ............................................16 beyond.pl ....................................12 ING..............................................16 Rainbow Tours ............................9 Blackstone/Orthofix ..................13 Jastrz´bska Spó∏ka W´glowa....16 Reinhold Polska AB ..................17 BZ WBK ......................................15 JPMorgan Chase........................16 Selectours ....................................8 Caelum Development ................18 Jysk ............................................18 Capgemini Polska......................21 KFC ............................................18 SII................................................21 CB Richard Ellis ........................18 Kindle ........................................12 SkyLogic ....................................14 CGI Information Kohler ........................................23 Smashwords.com ......................12 Systems and Management

Komfort ......................................18 Sony ......................................11, 23 Consultants (Polska) ................21 KPMG..........................................21 Sprint Data Center ....................12 China Overseas Kury∏owicz & Associates ......4, 17 Stagecoach ..................................9 Engineering Group ....................17 LfC ..............................................13 STRATFOR ..................................10

DATELINE

June 14-17 ITM POLSKA Event: Trade fair of modern industrial technologies.

Location: Poznaƒ, Poland. www.technologie.mtp.pl

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

17-18 BIROFILIA FAIR Event: The International Beer Lovers Fair in ˚ywiec is the largest beer accessories collectors meeting in Poland.

Location: ˚ywiec www.festiwal-birofilia.pl/en/news/

Credit Suisse ..............................16 London Stock Exchange ..............9 Telekomunikacja Polska............14 Cyfrowy Polsat ..........................14 Lot Polish Airlines ..........4, 16, 17 TK ..............................................18 Deloitte ......................................21 Magna Car Triada............................................8 DGA ............................................21 Top Systems Poland ..................18 UBIK Business Consulting ........21 DiS ..............................................11 Magnus Group............................17 Doradca Consultants ................21 Maxx ..........................................18 UniCredit ....................................16 Douglas ......................................18 Metro Group ..............................18 Van Hool ......................................9 Egged ..........................................9 Microsoft ....................................23 Vienesse ATX ..............................19 MLP Group ................................18 Virtualo ......................................12 Business Advisory ....................21 Murapol ......................................17 Volkswagen ................................12 Eurasian Development Bank ......2 Nike ..............................................6 Warsaw Data Center..................12 Eureko ........................................16 Nintendo ....................................23 Warsaw Stock Exchange ....16, 19 Ernst & Young

Fujitsu Siemens ........................12 Oil and Gas Exploration Wierzbowski Eversheds ..............9 Futureal ......................................18 Company Cracow ........................7 Wood & Company ......................16 Geofizyka Krakow ........................6 Oracle ........................................11 World Bank ..................................3 Ghelamco Poland ......................19 Orange........................................14 WYG International ......................21 Goldman Sachs..........................16 Panattoni Europe ......................18 Wypoczynek.pl..............................8 gowebtrade.com ........................20 PBP Orbis ....................................8 HB Reavis ..................................18 peter nielsen & partners ............6 X-Trade Brokers HSBC Bank Polska ....................14 PGNiG ..........................................6 Dom Maklerski SA ....................20 IBM ............................................11 PKP Cargo..................................17 Zelmer ........................................18

NEWS

JUNE 13-19, 2011

www.wbj.pl

3

Road infrastructure

Government gets involved in A2 highway dispute The growing problems surrounding China Overseas Engineering Group’s (COVEC) construction of two sections of Poland’s A2 highway, which is expected to link Warsaw and ¸ódê before the Euro 2012 soccer championships next year, and the possibility that the crucial investment might not be completed on time, has forced the government to act to save the investment.

On June 3, Infrastructure Minister Cezary Grabarczyk sent letters to two Chinese ministers concerning the A2 construction delay, though the content of the letters has not been revealed.

Meanwhile, as the troubles with several Euro 2012 infra-

COURTESY OF WIKIMEDIA COMMONS

The dispute over the completion of the A2 highway has become a political football

Construction problems on the A2 are transforming into political battles. Will heads roll?

Prime Minister Donald Tusk will dismiss Mr Grabarczyk before the upcoming parlia-

structure projects remain in the spotlight, there has been much media speculation that

mentary elections.

For its part, the opposition Law and Justice (PiS) party has

E. coli outbreak

Poland confirms two E.coli cases, more likely on the way As the E. coli epidemic continued to spread without an identified source last week, discussions shifted to compensation for farmers cers had conducted extensive checks in supermarkets, markets and retail outlets. Out of 482 samples of vegetables and fruits, including from Germany and Spain, 338 samples had been tested and none presented health risks.

Also last week, Germany’s health minister said there was reason to hope that the worst might be over. Still, the origin of the infection remained unknown and scientists, including some from the World Health Organization, said there was a chance that it might never be found.

Germany, the source of the epidemic, had first – incorrectly – blamed Spanish cucumbers. Bean sprouts from a farm near Hamburg were then suspected, but tests there also came back negative.

European farmers have been hit hard as a result of the outbreak, with consumption of fresh vegetables plunging across Europe. The European farmers union, COPACOGECA, estimated that losses to farmers since the cri-

Katarzyna Piasecka, Adam Zdrodowski

Green energy

World Bank approves €750 million loan for green energy in Poland COURTESY OF WIKIMEDIA COMMONS

As of last Friday, 31 people had died and 3,082 people from 13 European countries had been infected by the Escherichia coli bacteria, according to numbers from the European Centre for Disease Prevention and Control.

Poland’s Chief Sanitary Inspectorate (GIS) had confirmed two cases: a 29-yearold woman and a seven-year old boy. The woman had been to Germany, where the majority of cases have been reported. It is suspected that the Polish boy’s infection was transmitted by his father, who had recently traveled to Germany. Several individuals were undergoing tests last Friday and GIS expects it will have to announce further confirmed cases.

Chief sanitary inspector Przemys∏aw Biliƒski, reporting to the Polish Parliament last Thursday, said that GIS was prepared for the possible spread of E. coli infections and was monitoring the situation in Poland closely.

He added that sanitary offi-

notified the Prosecutor’s Office in Warsaw of the possibility of a crime against the public interest having been committed with the selection of COVEC as a contractor for the A2.

The head of the PiS parliamentary club, Mariusz B∏aszczak, said that the firm was unreliable from the very beginning, and the crucial question is whether the relevant state institutions verified the firm.

“If they did not, we are dealing with malpractice of public officials here,” Mr B∏aszczak told TVN24.

In Mr B∏aszczak’s view, both Mr Grabarczyk and the acting acting head of the General Directorate for National Roads and Motorways (GDDKiA), Lech Widecki, should lose their jobs.

In response, Mr Tusk said, “PiS would like the Prosecutor’s Office to be a place where achievements like the construction of highways or stadiums are made, and we are trying to build them.”

He admitted that problems had occurred in the process but stressed that the government was trying to manage crisis situations the best it could.

The government acknowledged that there is a backup plan if COVEC is dismissed from the project – the investment would be completed by companies working on neighboring fragments of the A2.

With the consortium or without it, work on the highway will recommence in July, vowed Prime Minister Tusk.

(Additional coverage, p. 17, Opinion, p. 10)

The money will be used to help meet green energy targets set by the EU

Spanish cucumbers were first, wrongly, held responsible sis began have totaled €400 million a week.

Polish Agriculture Minister Marek Sawicki has estimated Polish farmers’ losses at z∏.145 million.

EU Agriculture Commissioner Dacian Ciolos announced last week that the EU would make €210 billion available to producers. This represents half of the usual seasonal takings for all the EU’s zucchini, sweet peppers, cucumbers, tomatoes and lettuce, he said.

This was up from a previous offer of 30 percent of the total amount (€150 billion),

but still a far cry from the 90 percent demanded by Mr Sawicki on behalf of Polish producers, or the 100 percent requested by France and Spain. A final decision is expected on June 14.

A crucial question for producers and farmers remained Russia’s ban on all EU exports of fresh vegetables. Last year, exports to Russia represented more than half of the total 1.6 million tons of EU fresh-vegetable exports, according to the European Fresh Produce Association.

Alice Trudelle

The World Bank has agreed to give Poland a loan of €750 million which it is to spend on reducing energy consumption and increasing the share of renewable sources in its energy mix.

Poland’s government plans to decrease actual final energy consumption by 20 percent by 2020 and to increase the share of renewable sources from 6 percent now (according to the International Energy Agency) to 15 percent by the same year.

These targets are part of the country’s plan to reduce overall greenhouse emissions by 20 percent by 2020, so that it can meet European Union green energy targets.

The World Bank says its “Transition to a Low Emission Economy in Poland” report has helped guide Poland in setting these goals. The loan it has approved will now be used to help Poland meet the targets.

“The government of Poland has launched an ambitious and comprehensive energy efficiency and renewable energy program to help lower its emissions. The new policy and legal framework paves the way for a significant increase in investments in energy efficiency and renewable energy,” Peter Harrold, country director for Poland at the World Bank, said in a statement.

“The World Bank welcomes the opportunity to work with the government in implementing this program,” Mr Harrold added.

Gareth Price

4

NEWS

www.wbj.pl

JUNE 13-19, 2011

Euro 2012

Spain airplane disaster

One year before Euro 2012, doubts Poland loses awardabout Poland’s readiness persist winning architect in Stadium delays and infrastructure construction, as well as ongoing issues related to hooliganism, continue to cast a shadow over next summer’s European Championships ries. First UEFA expressed concerns about the country’s hooligan problem after violence at Poland’s match in Lithuania in March and the Polish Cup final in Bydgoszcz, in May. This was followed by announcements in quick succession that the openings of both the National Stadium in

COURTESY OF WIKIMEDIA COMMONS

Less than 365 days before the start of Euro 2012, Poland finds itself under increasing pressure to successfully deliver a tournament which many hope will form the next stage of Poland’s economic renaissance.

However, in recent weeks organizers have been dogged by a number of negative news sto-

Warsaw and Gdaƒsk’s PGE Arena would be delayed.

Then just last week a report by the Supreme Audit Office (NIK) suggested Poland’s ability to effectively co-host the event was in doubt.

“Euro 2012 preparations have visibly advanced. But the scale of delays, abandoned projects and poorly implemented investments is so significant that it may threaten the smooth running of the tournament,” the report said.

Warsaw’s National Stadium, where the tournament’s first match will be played is among the infrastructure projects that have been delayed

The most significant problem highlighted by NIK’s report was delays in construction of transport infrastructure which could affect fans’ ability to travel between Poland’s host cities.

Yet those in charge of delivering the tournament say the current setbacks will not prevent Euro 2012 from being a success.

“With one year to go, we feel quite safe, though of course in the near future there’s a lot of work to do,” said Miko∏aj Piotrowski, spokesperson of organizing body PL.2012.

Martin Kallen, UEFA’s director in charge of Euro 2012, told reporters last week that Poland is doing better than Portugal was at the same stage, prior to Euro 2004.

“I’d say they were around 7 out of 10, they are a bit behind what they promised, but they are making great progress, you can see the changes month by month,” he said.

With the tournament’s first match due to take place on June 8, 2012 at the National Stadium in Warsaw, it seems there is still a lot of progress to David Ingham be made.

tragic plane crash Two airplanes carrying Poles crashed in northern Spain last week. Four people died Architect Stefan Kury∏owicz, his associate Jacek Syropolski, and businessmen Janusz Marek Zieniewicz and Jacek Olesiƒski died after the two light aircraft they were flying in crashed in the Principality of Asturias in Spain last Monday. The accident was the worst aviation disaster in Spain in five years.

Though initial reports stated the planes collided in midair, as WBJ went to press, investigators had still not confirmed whether that was the case, or if the planes crashed independently due to the inclement weather.

At the time of the incident the sky was filled with dense clouds, meaning visibility was reduced to less than one kilometer, local media in Asturias reported.

One of the planes crashed at an airport, near the control tower, and the other fell at the

base of a mountain near the same airport.

The two planes were flying from San Sebastian to Vilar da Luz near Porto, Portugal, together with a third plane, which landed safely at Asturias airport after having turned back due to the bad weather.

Stefan Kurylowicz was an award-winning architect who lectured at the Warsaw University of Technology. He had joined forces with Mr Syropolski to create the architectural firm Kurylowicz & Associates in 1983.

Following the news of the crash, Polish architect, journalist and politician Czes∏aw Bielecki described Mr Kury∏owicz as a man with great talent for business, and whose work had helped shape modern-day Warsaw.

In Warsaw, the firm’s projects include the Focus Filtrowa and the Lot Polish Airlines headquarters office buildings, as well as the Wolf Bracka department store. The company is also working on the municipal stadium in Bia∏ystok.

(Additional coverage on p. 17) Thomas Kolasa

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NEWS

JUNE 13-19, 2011

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5

Libya

US calls on Poland to join military effort

COURTESY OF NATO

Polish Defense Minister Bogdan Klich rejected the criticism

Mr Gates called for increased participation in Libya

At a meeting of NATO defense ministers in Brussels last Wednesday, US Defense Secretary Robert Gates urged NATO members to step up their military contributions to the ongoing NATO operation in Libya.

According to US government officials quoted by the US Department of Defense news service, Mr Gates “called

on countries that have the capacities and capabilities but haven’t yet contributed to join the effort.”

Mr Gates specifically called on Germany and Poland to commit military forces, according to The New York Times, which quoted an official familiar with Mr Gates’ remarks. Neither Germany nor Poland have so far gotten involved in the military campaign in Libya.

Both Germany and Poland’s defense ministers said their countries would stick

to their position and not engage militarily in Libya.

“The Americans know very well what is the Polish position on the involvment in Libya,” Defense Minister Bogdan Klich was reported as saying by the Polish Press Agency.

Mr Klich explained that the government’s priority was the NATO-led mission in Afghanistan and recalled that Poland had offered Libya humanitarian assistance, as well as support in its eventual democratic transition.

Only eight out of the 28 NATO members have participated in ground-strike missions in Libya, which started in March.

Mr Gates also urged countries already contributing to the operation to provide more military assistance. These comments were widely understood to be aimed at the Netherlands, Spain and Turkey, all of which are currently participating in the air campaign, but refusing to strike at ground targets.

Alice Trudelle

EU enlargement

The European Commission has approved the end of accession talks Croatia got a step closer to becoming the European Union’s 28th member state last week, as the European Commission approved the closing of the last four chapters left in its accession negotiations.

“Today is a historic day for Croatia and for the European Union,” said EC President

A guide to Polish business and industry

Przewodnik po polskim biznesie i gospodarce

José Manuel Barroso in a statement last Friday. “I would like to applaud the Croatian authorities, in particular the current government, for their hard work over the last years.

Even more importantly, I would like to congratulate the people of Croatia,” he added.

Mr Barroso confirmed that this new step put Croatia’s accession on track for July 1, 2013.

Member states must now also recognize the end of the

accession talks. The ensuing drafting of an accession treaty is scheduled to take around six months, meaning it should be completed during Poland’s presidency of the EU Council.

Poland intends to put an emphasis on an “open” Europe during its presidency, and has specifically targeted advancing Croatia’s accession talks.

On a visit to Zagreb in May, Polish Prime Minister Donald Tusk said that the Polish presidency would devote

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significant energy to the idea of EU enlargement and said he was confident that the other EU member states would fully accept Croatia’s accession.

The accession treaty will then have to be submitted to a referendum in Croatia and ratified by the 27 EU countries, which usually takes around 18 months, putting the final accession in July 2013.

The progress towards Croatia’s accession was seen

SHUTTERSTOCK

Croatia set to join the EU in 2013

Croatia’s accession treaty should be signed in six months as heartening news for other EU hopefuls, wary of expansion fatigue among current EU members.

“It shows that enlargement works, that the EU is serious about its commitment,” said Mr Barroso.

6

INTERVIEW

www.wbj.pl

JUNE 13-19, 2011

Polish-Pakistan relations

Bilateral trade

A need for understanding Pakistan’s ambassador to Poland, H.E. Murad Ali, talks to WBJ about relations between the two countries and Pakistan’s continued involvement in the war on terror Ewa Boniecka: How do you see bilateral relations, both political and economic, between Pakistan and Poland?

Ambassador Murad Ali: Bilateral relations between our countries date back to World War II, when over 30,000 Polish refugees migrated to the port city of Karachi in British India. Most of them became part of Pakistani society and never came back. This rela-

officers built PAF by training 21 young Pakistani pilots over a period of nine years. A memorial to acknowledge the services of Polish airmen in laying the foundations of PAF was erected at the Air Force Museum in Karachi in August 2006 .

The first Polish trade mission was established in Karachi between 1948 and 1949.

Diplomatic relations were established in 1962 and ever since, efforts have been made by both sides to explore fresh avenues for cooperation. These efforts have borne fruit, especially since 1989 when Poland joined the family of democratic countries. Poland, as an active member of the European Union and as future president of the EU Council, is important for Pakistan. The two countries enjoy a good understanding on international issues and often cooperate with each other in the United

“Pakistan is playing a leading role in the global war against extremism and terrorism” tionship was further strengthened when Quaid-e-Azam Muhammad Ali Jinnah, father of the nation, met Air Commodore W∏adys∏aw Józef Marian Turowicz in England in 1948, and invited him and 30 other Polish air force officers to Pakistan to lay the foundations of the Pakistan Air Force (PAF). These Polish Air Force

Nations. In addition, the visit of former Pakistani President General Pervez Musharraf to Poland in April 2007 was the first visit by a Pakistani head of state to Poland. This generated a lot of positive energy in relations between the two countries.

Bilateral trade between Pakistan and Poland has grown steadily since 2005.

Pakistan’s exports to Poland grew faster compared to imports. In 2002, total bilateral trade was $40.03 million before reaching around $206 million in 2008. The worldwide recession led to a decrease in trade. But in 2010 total bilateral trade was $210.56 million, an increase of around 22 percent from the previous year.

On the cultural side, we are pursuing the establishment of institutional linkages between research institutes and think tanks from the two countries, such as the Polish Institute of International Affairs and the Islamabad Policy Research Institute or the Institute of Strategic Studies in Islamabad. We are striving to set up an Urdu Chair in the Faculty of Oriental Studies at the University of Warsaw.

Legal News Contact: Lech Gniady lg@pnplaw.pl

Transformation of an entrepreneur into a company On July 1, 2011 new provisions become binding which will allow the transformation of an entrepreneur (an individual conducting business activity) into a one-person limited liability or joint-stock company.

In order to make such a transformation an entrepreneur will have to, among other things, prepare a transformation plan and have it examined by an auditor as appointed by a registration court. In addition, they will need to submit a statement on transformation before a notary public and also to establish a company which will take over all rights and obligations of the entrepreneur, including permits, licenses, and granted allowances.

The new procedure seems to be rather expensive and time-consuming. For this reason entrepreneurs will have to carefully consider whether it is not more beneficial to establish a new company and transfer the hitherto activity to it, in the form of

a contribution in-kind or through selling the enterprise.

Trade-union members better protected by the labor code On May 26 the Sejm accepted a change to the labor code. An employee who has protection under the provisions of the act now has the right to demand to be reinstated in the case of the unlawful termination of an employment contract concluded for a definite period of time or for the time of performance of the particular work. Previously, such employees could only claim compensation.

After the change becomes binding, the enhanced protection of the above-mentioned employees will be the same as protection already binding for pregnant employees, employees on maternity leave, or employee-fathers who are caring for a child during the maternity-leave period.

The act was passed on to the President and the Speaker of the Senate on May 27. ●

So in this respect we are making efforts to expand our relations in a variety of fields.

Do you think that there is an image problem in both countries that affects further strengthening of relations?

Pakistan is often in the news due to its geo-strategic location and the prevailing situation in the area. Pakistan is playing a leading role in the global war against extremism and terrorism and has suffered huge loss of life and damage to property. We have sacrificed more than 30,000 civilians and 5,000 security personnel, more than any single country in the world.

Poland can understand this as it has also suffered human losses in Afghanistan. The situation has adversely affected the inflow of foreign investment. But our strong democratic credentials, independent judiciary and open media have given the nation invaluable support and strength to face and overcome these challenges. Pakistan’s society is modern, forward thinking and democratic, with a thriving economy and huge potential for growth. As a result there is tremendous potential for cooperation between my country and Poland, which can contribute to the stability of the world in general and our region in particular.

What is your strategy for promoting Pakistani products in Poland?

Western European countries like Germany, France, Italy, Spain and the UK are Pakistan’s traditional markets. We are encouraging Pakistani exporters to use Poland as a regional hub to build trade with the whole of Europe. The strategic location of Poland makes it an ideal place to be used as a regional base. Moreover, Poland offers excellent business opportunities and the cost of doing business in

Imports to Poland in 2009*: . . . . . . . . . . . .z∏ 372 million Exports from Poland in 2009*: . . . . . . . . . .z∏ 196 million Balance: . . . . . . . . . . . . . . . . . . . . . . . . . . . .-z∏.176 million Poland’s most common imports from Pakistan are manufactured goods. Bilateral trade with Pakistan has increased by 425 percent since 2002. *Most recent data available Source: Central Statistical Office Poland is considerably less in comparison to other Western European countries.

Additionally, we are focusing on products for which Pakistan is famous throughout the world, such as textiles, surgical goods, fruits and vegetables, rice, sports goods, marble and granite and furniture. We are also encouraging Pakistani manufacturers and exporters to visit Poland to promote their products.

Similarly, we are encouraging Polish businesspeople to visit our country and meet Pakistani suppliers. From October 20-23, Expo Pakistan 2011 will be held in Karachi.

We are offering full hospitality to the members of the Polish delegation, including air tickets, lodging and local transportation during their visit.

What are the main stumbling blocks for the promotion of bilateral trade?

There are many issues that affect our bilateral trade.

Firstly there is no direct flight between Pakistan and Poland; similarly cargo coming from Pakistan to Poland normally comes through a third country, which inhibits Pakistani exporters from trading directly with Poland.

In addition, businesspeople can find it difficult to get a Polish visa. The Polish Consulate in Karachi was closed down in 2008, causing difficulties for the businesspeople in Karachi, the commercial capital of Pakistan. The Polish government can further promote trade relations by re-opening the Consulate in Karachi.

What are the main initiatives taken by the Embassy of Pakistan for the promotion of bilateral trade relations?

Promotion of trade is a continuous process requiring constant appraisal. Pakistan produces the best handstitched soccer balls in the world and we supply them to Nike, Puma, Adidas and

What investment opportunities are there for Poland in Pakistan?

Located in the heart of Asia, Pakistan is the gateway to the energy-rich Central Asian states, the financially liquid Gulf States and the economically advanced Far East. This strategic advantage alone makes Pakistan a marketplace teeming with possibilities. A large part of the workforce is hardworking, intelligent and proficient in English. Pakistan possesses a large pool of trained and experienced engineers, bankers, lawyers and other professionals, with many having substantial international experience. It also has one of the fastest growing economies in the world, with 170 million consumers and a growing middle class.

The bright prospects of Pakistan’s lucrative oil and gas sector have attracted the attention of Polish companies like PGNiG, Geofizyka

H.E. Murad Ali Ambassador of Pakistan to Poland • Has worked in Pakistan’s foreign service since 1980 • Served in Pakistan at the Ministry of Foreign Affairs headquarters as Director (1997-1999) and Director General (2005-

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other renowned sports firms.

We intend to collaborate with the Polish Football Association to support the Polish team during Euro 2012, by joining their sports promotion events. A delegation of leading football manufacturers is also expected to visit Poland this year.

At Gulfood Expo 2011 in Dubai we coordinated a meeting of Pakistani food exporters with Polish Agriculture Minister Marek Sawicki. The meeting was fruitful as both sides agreed to increase cooperation in matters related to food trade. I feel that we need to create opportunities like Gulfood for our businesses to interact and discover products that complement each other, which will have a positive impact on bilateral trade and investments.

I am happy to inform you that our efforts are bearing fruit. More than five trade delegations from Pakistan have visited Poland in the last few months.

2007)

• Before serving as ambassador to Poland, he held assignments in: Tripoli, Seoul, Abu Dhabi, Los Angeles, Baghdad, and London.

In August 2007 he was appointed ambassador to South Korea • Has served as ambassador to Poland since July 2010

INTERVIEW

Krakow and Oil and Gas Exploration Company Cracow. These three Polish companies are currently working on joint venture projects in Pakistan. PGNiG has made a gas discovery in Pakistan and is in the process of expanding its operations in Pakistan.

has also been enormous.

Unemployment has increased rapidly and the percentage of the population below the poverty line increased from 17 percent in 2007 to 30 percent in 2010. Growth in GDP also fell from 9 percent in 2005 to 2 percent in 2009.

Global terrorism is a key issue for Pakistan’s national security. As Pakistan is on the frontline of the war on terror, how are the lives of ordinary Pakistani people affected?

This war [on terror] has disrupted the social fabric of Pakistan and has affected the life of normal people in more ways than one. Over the last two years, Pakistan has suffered more than 30,000 civilian casualties and 5,000 security agency casualties, compared to the 8,812 casualties sustained by NATO in Afghanistan in the last 10 years. There have been more than 4,000 terrorist attacks carried out against military and civilian targets in Pakistan since 2001, including about 200 suicide bombings.

In 2008 alone two and a half million people were forced to flee their homes in the Swat Valley in northern Pakistan, posing a huge challenge for the government to settle them temporarily in urban areas of Khyber Pakhtunkhwa.

The loss to the economy

What are the main priorities of Pakistan’s foreign policy?

The priorities for our foreign policy are safeguarding Pakistan’s sovereignty and territorial integrity, as well as vital security and geostrategic interests, the promotion of peace, stability and economic development, and to continue to fight the menace of terrorism. Realization of Pakistan’s development goals is contingent upon a peaceful regional environment. We are therefore committed to working constructively with all our neighbors, with the aim of deepening cooperation with partners in Asia and Europe.

Stabilizing Afghanistan and the adjoining region is a pressing priority for Pakistan.

To promote this goal, Pakistan is closely associated with several regional and trilateral frameworks. We have recently resumed the dialogue process with India and hope that it will lead to the peaceful resolution of all bilateral issues, including the long-festering Kashmir dispute. We have forged important links with

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7

Asia and Europe alike through mechanisms such as the Association of Southeast Asian Nations and the AsiaEurope Meeting. Other foreign policy priorities include consolidating our commercial and economic interests and promoting Pakistan as a dynamic, progressive, moderate and democratic Islamic country.

How do you view Pakistan as a nuclear power?

Pakistan did not join the nuclear club out of choice but because of security issues.

Nuclear tests carried out by India in May 1974 were followed by five more nuclear tests in 1998. This tilted the strategic balance in favor of India, leaving Pakistan with no choice but to follow suit, to ensure its own security and territorial integrity. The IndoUS nuclear deal and the introduction, by India, of a nuclear powered submarine have further raised security concerns in Pakistan.

We are a peace-loving country and are maintaining nuclear capabilities only as a deterrent. We do not believe in an arms race. So far as the safety of our nuclear assets is concerned, they are absolutely safe and secure. Our control and command system is second to none and is compatible with international best practices and is acknowledged

COURTESY OF THE EMBASSY OF PAKISTAN

JUNE 13-19, 2011

Pakistani Ambassador Murad Ali believes there is “tremendous potential” for economic cooperation between Pakistan and Poland internationally by the International Atomic Energy Agency.

Relations between Pakistan and the US may have been affected by the killing of former al-Qaeda leader Osama bin Laden in Pakistan. How do you view the situation?

We have very good relations with the US and there has been close cooperation between Pakistan and the US in our fight against terrorists

and struggle against extremism. The two countries have helped each other in this common fight. Despite this, the killing of bin Laden did increase tensions on both sides. In our view it was a unilateral action taken by the United States, which violated our sovereignty. It was also a violation of the principles of the Charter of the United Nations, and therefore our country has asked for an end

SHOWCASING POLISH EXPORT TO THE WORLD On June 15th in Warsaw the Mister and Junior of Export prizes will be awarded at a Final Gala event Warsaw Business Journal Group and the Polish Chamber of Commerce are working together to promote Polish exporters and their products abroad.

Included in this ground-breaking initiative are two core events: the publication of the Made in Poland annual guide and the Mister & Junior of Exports Competition.

to drone attacks and other such actions in Pakistan. Yet relations between our two countries are based on solid foundations. We are strategic allies and there are efforts on both sides to overcome the difficult situation arising out of the incident. We have a common enemy and various mechanisms of cooperation will help us continue this fight against the menace of terrorism. ●

COVER STORY

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Visa-free US travel closer

The latest draft of a US bill on establishing visafree entry provides additional guarantees for Poles, Rzeczpospolita reported, citing an anonymous diplomatic source in Washington DC. According to the source, Washington could be about to reward its close allies with inclusion in its visa waiver program. The newspaper writes that this could mean visa requirements for Poles will soon be abolished.

Suitcase thieves Spanish police have accused two Poles of stealing tourists’ belongings on a bus traveling from Barcelona Girona Airport to the city itself. Krzysztof Grzegorz M. and Jaroslaw K. reportedly regularly boarded the bus, but only one would buy a ticket.

The other would hide in a suitcase with a flashlight and a cell phone, waiting for a chance to steal valuables from other passengers’ baggage.

The duo had reportedly executed the same operation for several weeks until a passenger notified police about a suspicious suitcase. Upon looking, the police were astonished to find a 1.78meter-tall man squeezed into the 90-by-50centimeter suitcase.

‘Polish vodka’ definition Work is currently in progress at the Ministry of Agriculture on amending legislation on the production of spirits.

A recently-published proposal says that the right to use the name “Polska wódka” (“Polish vodka”) should be granted only to producers in Poland who use domestically grown rye, wheat, barley, oats or potatoes. ●

JUNE 13-19, 2011

Brendan Melck

Tourism

Foreign travel fears to benefit Poland Poland’s outbound tourism industry is still in recovery mode after a rocky couple of years. With more Poles and other nationals now expected to opt for a break on the country’s Baltic coast, the economy could be set for a boost Tour operators have had to reduce their prices in order to attract clients, and so both topand bottom-line results have been affected in the case of all but a select few in the industry.

The number of companies in the industry registered with the National Debt Agency (KRD) has risen 80 percent in the past two years. Most worrying for consumers is that the debt registered with the KRD is often not a clear indication

Polish outbound tour operators have had a tough time of it in recent years. In 2008, the number of Poles taking holidays abroad reached a peak of 7.6 million, before falling by over a million as a result of the global economic crisis in 2009.

Figures recovered slightly last year but were still a long way from the pre-crisis peak.

Outbound tourism in 2010 was affected by a combination of the Smolensk air tragedy, the chaos in European skies caused by the Icelandic volcanic ash cloud, and the floods which hit a number of Polish regions in May 2010. All this meant that it was not until the second half of 2010 that the market started to pick up again.

of the true level of debt that a company has, since money owed to foreign trading partners is not included. Neither Orbis Travel nor Selectours had any debts registered with the KRD. Moreover, only companies which are reported to the KRD are registered.

Poland’s chance In the midst of the recent troubles, experts predict that large number of Poles will choose not to take foreign holidays this year, and will instead opt to holiday at home.

Moreover, the recent uprisings in a number of North African countries could play

into Poland’s hands, as tourists across the world are now less likely to holiday in destinations such as Egypt and Tunisia. Experts say that as a result Poland is set to benefit from a higher inflow of tourists from abroad, particularly from Germany and Russia. Poles themselves are also expected to show increased risk aversion in their holiday choices.

“The Institute of Tourism predicts that in 2011, there will be an increase of between 2.1 percent and 2.8 percent, between 300,000 and 400,000, in the number of holidays of at least five days taken by Poles in Poland,” Krzysztof

¸opaciƒski, director of the Institute of Tourism, told WBJ. “The number of foreign tourists should grow by between 3.2 percent and 4.8 per cent, to 12.9-13.1 million,” he said.

This forecast is supported by reports of an increase in reservations made for holidays within Poland during the first quarter of this year. Online holiday agent Wypoczynek.pl, for example, reported a 10 percent year-on-year rise in bookings in Q1, according to Gazeta Prawna.

Low base effect Mr ¸opaciƒski said, however,

Consumer caution Despite the improvement, H2 brought more bad news. In September 2010, two Polish tour operators – PBP Orbis which operated under the Orbis Travel brand, and Selectours – declared bankruptcy, forcing many holidaymakers to return home early. This made Poles more wary of organizing holidays through tour operators, a factor which piled more pressure on an already vulnerable sector.

“The Smolensk tragedy and the floods had a negative effect on the consumer mood, which was intensified by the bankruptcy of Selectours and Orbis Travel,” said Ewa Zawistowska, a representative of Polish tour operator Triada’s management board.

“Even though these companies didn’t have a big share of the market, their bankruptcy meant customers started to be more cautious in their choices when it came to their holidays,” she added.

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Legal Eye

Deciphering the stars

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Judith Gliniecki is a Partner with Wierzbowski Eversheds judith.gliniecki@eversheds.pl

Sopot is one of Poland’s most popular tourist destinations that the expected growth in domestic tourism will merely mean a return to levels seen before the downturn set in.

“The growth will be rather moderate and will represent a return to the situation in 2008,” he said, adding that most of the growth will be concentrated in coastal areas of Poland.

Looking at the overall impact of the recent violent uprisings in two of Poles’ favorite tourist destinations – Egypt and Tunisia – Mr ¸opaciƒski thinks that those who provide accommodation for tourists within Poland are set to gain the most.

“Accommodation providers in Poland will benefit the most from the opportunities brought about by the upheavals – while tour operators and travel agents offering foreign holidays will lose the most: the North African crisis again forced them to reduce their margins on foreign holidays, which reduces their profitability,” he explained.

Other experts, however, say that those who would have taken holidays in North African resorts will instead simply choose to holiday in

different parts of the world.

The number of Poles who are booking foreign holidays is increasing, and operators which had suffered revenue declines in recent years are now expecting to see a return to growth in 2011.

“Opinions about the growth in the popularity of holidays in Poland are hasty in our view,” Triada’s Ms Zawistowska said.

“They certainly do not confirm our data – the results from our sales for this year enable us to predict that the 2011 summer season will be better for Triada than the previous one,” she added.

“Poland’s tourism sector is at the stage of development at which it is very unlikely that we will return to a situation in which spending a holiday at home will be more popular than holidays abroad.”

Tracking trends Ms Zawistowska believes that one of the important things for tour operators to do is to react to the changing preferences of Polish customers.

“There is very strong competition on the Polish [outbound] tour operator market,

and this means we have to have our finger on the pulse all the time,” she said.

As the popularity of Egypt and Tunisia has plummeted (interest in holidays in these countries is now only one-third of what it was a year ago, according to Ms Zawistowska), other countries have benefited as a result.

“Customers’ preferences have shifted to southern Europe – Greece, Spain and Turkey’s popularity is also rising,” she said.

New destinations As many as 90 percent of companies in the Polish outbound tourism sector responding to a survey by the InfoMonitor Economic Information Bureau stated that they wanted to expand the number of destinations offered to clients this year.

This will require significant investment in marketing.

Many tour operators are also planning to invest more generally as they seek to stay ahead of their rivals in an increasingly competitive market.

Another effect of the recent upheavals on the

tourism industry is that it has been forced to begin consolidating.

Rainbow Tours acquired smaller operator Bee & Free near the end of last year, and in February it was revealed that Triada was poised to make acquisitions.

Experts say that during the current period of uncertainty and volatility, it is possible for the bigger players to pick up some bargains.

Economic boost Nevertheless, despite evidence that outbound tour operators are finding ways to adjust to the new realities of the market, it seems that the number of people taking holidays within Poland will increase this year, providing a boost to the economy.

“The Institute of Tourism predicts a marked increase in the expenditure related to inward tourism in 2011, from $5 billion last year, to $5.8 billion in 2011,” Mr ¸opaciƒski said.

And while spending by foreign tourists in Poland is still only around half of the European average, it looks set to rise significantly in coming years. ●

Travel

Zoom for a z∏oty The owner of Britain’s Stagecoach has entered the Polish bus market with promises of low cost fares across Poland and Europe At a time when more tourists are planning to spend their holidays in Poland, bus travel around the country will be available for as little as z∏.1.

The owner of Stagecoach, Scottish transport magnate Brian Souter, is entering the Polish market under the brand name PolskiBus. His new service will offer transport between 16 Polish cities, as well as European capitals Ber-

lin, Prague, Bratislava and Vienna.

PolskiBus aims to transform the Polish bus market with low cost fares and modern, comfortable buses. For passengers who book far in advance, PolskiBus will also offer fares for z∏.1, plus an additional z∏.1 booking fee. Belgian coach manufacturer Van Hool will provide the modern fleet, with each bus offering free Wi-Fi, reclining leather seats, and air conditioning.

Stagecoach is the second-largest transport company in the UK and is listed on the London Stock Exchange. It holds 14 percent of the busing market and 25 percent of the railway market in

the UK. It also operates in the United States and Canada.

Mr Souter’s Megabus brand has made significant inroads in the transport market since 2003 thanks to its no frills inter-city bus service, often using onstreet bus stops instead of paying for access to coach terminals. The Scottish millionaire decided to enter the Polish market despite having lost bids for a number of Polish bus companies last year to Israeli transport company Egged.

According to the Central Statistical Office, profits in the coach market declined five percent in 2009.

Thomas Kolasa

When planning a trip in Poland this summer, you may want to take a longer look at practical matters. It may not be enough to glance at the long-term weather forecasts for the seacoast or the mountains.

The savvy traveler should review whether work on roads or train tracks will create delays. This, in turn, may lead to pondering that age-old question: How far can we travel before the chorus of “are there yet?” from the backseat become unbearable?

If you’ve done this much planning, you’ve likely also given thought to your accommodations. Perhaps you’ve even looked to see how many stars a hotel or bed and breakfast has. As to this last issue, the classification of accommodations and the number of stars is more than just a promotional stunt, it’s regulated by law.

Different standards apply to hotels, boardinghouses (pensjonaty) and other types of accommodations, and the stars do make a difference.

While your author can’t do anything about the noise from the backseat, I can tell you a little about what to expect at your chosen standard of hotel or boardinghouse.

Public registers Before holding the grand opening, premises offering accommodations must be classified and categorized.

A “hotel” must have at least 10 rooms, most of which must be singles or doubles, and offer a “wide range of services” connected with a guest’s stay. Unlike the literal meaning of “bed and breakfast” (that other translation of “pensjonat”), a Polish boardinghouse must offer all-day dining services.

Hotels and boardinghouses each can have up to five stars.

Once categorized and classified, the information goes into registers. The local voivodship marshal both makes the initial assessment of the premises and maintains a register of accommodations in the area. This information is then put into a central, public register maintained by the Ministry of Sport and Tourism. The Ministry also

has the right to conduct spot checks on premises to make sure that they satisfy all requirements for their classification and categorization.

Bare necessities Every room in every hotel or boardinghouse must have certain basic furniture. This includes a bed, table, bedside lamp, mirror, and hook or stand for coats. Beyond these basic furnishings, you need to look to the stars to ensure other necessities. If in-room air-conditioning is a must in summer, you will need five stars (four only guarantees air-conditioning in common areas). For an elevator from the ground floor to the first floor, again only five stars ensure that you won’t be dragging your suitcase up stairs.

Sheets and towels are a standard feature of all rooms. However, with three stars or less, they only need to be changed every three days (unless you request more frequent service).

Creature comforts Polish law does not say anything about 300-count sheets, slippers, chocolates on your pillow, or designer shampoo. The stars do indicate some amenities, though.

As examples, three stars guarantee a porter, payment by credit card, an in-room television, a mini sewing kit, shoe shine equipment, and at least 12 hours of room service. For all hotels and those boardinghouses in recreational areas or other non-urban vacation spots, some basic spa services must be offered from at least three stars. With four, you get additional comforts, such as a hair dryer, 24-hour room service, and a comfortable chair. Five stars ensure you a bathrobe. If you are in a five-star hotel, you can be certain of finding a safe and a mini-bar in your room.

Regardless of where you are staying, you can get a wake-up call and breakfast.

Of course, hotels and boardinghouses can offer more than the legal minimum. You just need to do more planning to make sure that you will get those creature comforts that are vacation necessities for you. ●

10

OPINION & ANALYSIS

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JUNE 13-19, 2011

Can the Chinese build a highway?

T

he debacle surrounding the China Overseas Engineering Company’s (COVEC) construction of two sections of the A2 highway have led the media and some politicians to decry the choice

“Chinese firms have delivered infrastructure in countries around the world” of a Chinese company as contractor for the projects. It should have been known all along, they say, that the company never could have fulfilled its pledge to build the sections for as cheap as it intended – some half the price that the government had

expected to pay. After all, the Chinese are known for their lead-laden toys and poisonous toothpaste, the argument goes.

Certainly, it is turning out that COVEC was less than prepared.

One of the reasons it cites for its sudden loss of cash flow is an unexpected rise in the price of construction materials, though that might have been foreseen with a rebound in the global economy.

It also blames the government’s reluctance to transfer payment for its inability to pay its subcontractors.

Though it may or may not be justified in claiming that the government should have paid its installments on time (the government claims it was not satisfied with the company’s progress), it certainly should have had enough money on hand to pay

its subcontractors.

But do these oversights mean that bids by any Chinese company should be dismissed out of hand? Is it impossible for a Chinese company to deliver quality, low-cost constructions? Of course not. Chinese firms have delivered infrastructure in countries around the world – surely not every single one of them was poorly constructed. Chinese firms are just as capable as any of delivering quality constructions – ever been to Shanghai?

Moreover, it is an open secret that Poland’s road builders don’t like competing with each other on price – everybody can therefore overcharge, squeezing Poland’s already overburdened taxpayers.

And they are notoriously slow.

Poles have often looked with envy to

places like China, where roads and subways are built at lightning speed.

Polish roads have always taken too long to build – one of the reasons its infrastructure is in the sorry state that it is.

It is also important to remember that Polish companies don’t exactly have a stellar record when it comes to building roads, either. Earlier this year the General Directorate for National Roads and Motorways had to terminate the contract for the construction of a 21-km section of the A4 highway, because the PolishMacedonian consortium was nine months behind schedule. In autumn last year, a Polish firm was found to have been digging out the earth from under a road it was building, and selling it back to the general contractor as filler.

So it was understandable that the government, faced with the huge costs of building tremendous amounts of infrastructure in the runup to the Euro 2012 tournament, jumped at the opportunity for a lowcost solution, and this newspaper applauds them for having done so.

We are more critical of their examination (or lack thereof) of this particular company, of its plans and its preparations. That was something the government should have done more thoroughly.

But it was the government’s duty to look for lower-cost, more efficient solutions than those it had been employing. Their efforts didn’t work out in the end, but only because the government didn’t do its homework, not because a Chinese company was doing the work. ●

Europe: A shifting battleground As

Central Europe works to counter Russia’s resurgence in the region, Russia is responding with disruptive measures by cooperating with Western Europe on security issues, a tactic that both strengthens Moscow’s ties with Western Europe (particularly Germany) and makes Central European countries look unreasonable. The growing rift between Western and Central Europe will eventually lead to a crisis as the Central European countries try to avoid serving as a buffer zone between Russia and the West.

Russia is focused on the ballistic missile defense (BMD) network set to be installed in Europe. BMD is just one of the tools Central European countries in the Intermarium Corridor — the Baltic States, Poland, the Czech Republic, Slovakia, Hungary, Romania and Bulgaria — are using to respond to geopolitical shifts in Europe that have left them searching for a bulwark against a resurgent Russia.

The chaos tactic Russia is not standing idly by as European countries respond to the evolution of the continent’s geopolitics.

Moscow is primarily concerned with the US presence in the region, which is seen as a tangible threat. It is particularly concerned with the BMD system. Thus, Moscow initially sought to counter the US military encroachment in Central Europe directly, most notably with threats of placing

Iskander short-range ballistic missiles in Kaliningrad and Belarus, an option that remains available.

However, Russia has realized that countering US BMD with military responses elsewhere could unify NATO members against it. No country, including Germany, would welcome Iskander missiles in Kaliningrad. Such a move would depict Moscow as belligerent, supporting the Intermarium’s argument that Moscow is a threat.

Therefore, Russia has shifted its tactics — while retaining the option of responding militarily — to facilitating the ongoing fragmentation of the NATO alliance. In Moscow, this strategy is called “the chaos tactic.”

In other words, the Kremlin will sow chaos within Europe by cooperating with Western Europe on security issues. The offer of a joint NATORussian BMD system is an example of this tactic; it makes Moscow appear willing to cooperate on the BMD issue while painting the Intermarium countries as belligerent and uncompromising.

The European Security Treaty is a Russian proposal for a Europe-wide security treaty that remains very vague. It is unclear what the treaty would actually achieve but its specifics are irrelevant; the important point is that Moscow is negotiating with Western European countries.

Moreover, such talks show just how shaky the NATO alliance has become. Russia is working around

the Intermarium countries by talking to their supposed allies about weakening the very alliance structure the Intermarium holds dear.

The coming crisis The current geopolitical shift in Europe will engender a crisis by the middle of the decade. The Intermarium countries do not want to take Germany’s Cold War-era role as the chessboard upon which Russia and the United States play. Instead, the Intermarium and the Nordic countries — led by Poland and Sweden — want to move the buffer between Europe and Russia to Belarus and Ukraine. If they can get those two countries to be at the very least neutral — not formally within Russia’s political, economic and military sphere of influence — then Central Europe can feel relatively safe. This explains the ongoing Polish-Swedish coordination on issues such as the EU Eastern Partnership program, which is designed to reverse Russia’s growing influence in the former Soviet sphere, and the opposition of Belarusian President Aleksander Lukashenko.

However, several issues will come to a head in a few years. The US is expected to be fully withdrawn from Afghanistan in 2013, which will allow it to focus more on Central Europe.

The US BMD presence in Romania is supposed to be formalized with an SM-3 missile battery in 2015 and in Poland by 2018. By then, the V4 Bat-

tle Group and the Nordic-Baltic alliance security components should also be more defined. All of these dates are subject to change, but that they will take place within a few years of each other (in or around 20152020) suggests the middle of the decade will be a crucial point in the shifting landscape of the European battleground.

Russia will lose some of its confidence when a collection of security pacts and installations become effective nearly simultaneously by the middle of the decade, especially if Europe’s security institutions continue their attempts to move eastward.

Traditionally, when Russia is threatened, it lashes out. Although Moscow is currently acting cooperatively — while concurrently creating chaos across the continent — it can easily resume using more aggressive tactics.

Moscow has contingency plans, including moving troops against the Baltic and Polish borders in Belarus, potentially increasing its military presence in Ukraine and the Black Sea, and placing missiles in Kaliningrad and Belarus.

But the overall balance between the US and Russia in Central Europe will depend on another country: Germany. The question at this point will be the extent to which Germany is willing to see the Intermarium draw in a US military presence. Like Russia, Germany does not want to see a US-dominated continent, especially when Berlin is strong enough to com-

mand the region politically and economically. Nor does Germany want to see a more aggressive Russia in a few years. Berlin has limited options to prevent either scenario, but it could use NATO and EU structures to stall the process. It will be important to watch how the United States

“The current geopolitical shift in Europe will engender a crisis by the middle of the decade“ and Russia use Germany against each other in the fight over Central Europe.

Many questions remain as to how all of these issues will play out in the coming years, but the foundation for a real shift in European security is already being shaped. It is unclear if the new battleground between the United States and Russia in Central Europe really is a battleground, or if the current situation will end in a stalemate, as was the case on the previous front line in the Cold War. Regardless, one difference remains: Unlike Cold War-era Germany, the Intermarium states will not quietly accept becoming the staging ground for a US-Russian contest. ● This edited version of “Europe: A Shifting Battleground” is reprinted with permission of STRATFOR

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.

PUBLISHER: VALKEA MEDIA SA

CONTRIBUTORS

ONLINE & NEWS EDITOR

GARETH PRICE (GPRICE@WBJ.PL)

REAL ESTATE EDITOR

ADAM ZDRODOWSKI (AZDRODOWSKI@WBJ.PL)

INTERNATIONAL NEWS EDITOR

ALICE TRUDELLE

JOURNALIST

(ATRUDELLE@WBJ.PL)

KATARZYNA PIASECKA

POLITICS EDITOR

INTERN

REMI ADEKOYA

THOMAS KOLASA

(RADEKOYA@WBJ.PL)

E. BLAKE BERRY EWA BONIECKA MARK ORDON RICHARD WERNICK JOANNA WÓYCICKA

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

ANDREW NAWROCKI

AGNIESZKA BREJWO

PAUL FOGO JUDITH GLINIECKI ADAM NARCZEWSKI

MAGDALENA KARPI¡SKA (MKARPINSKA@WBJ.PL)

MARKETING &SALES DIRECTOR PRODUCTION MANAGER

(ABREJWO@WBJ.PL)

PIOTR WYSKOK GRAPHIC DESIGNER

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MARKETING &SALES

MANAGING DIRECTOR MONIKA STAWICKA

¸UKASZ MAZUREK CARTOONS

PIOTR WYSKOK

JOWITA MALICH (JMALICH@WBJ.PL)

KRZYSZTOF WILI¡SKI (DYSTRYBUCJA@VALKEA.COM)

PR & MARKETING SPECIALIST

NATALIA ROGACZEWSKA (NROGACZEWSKA@WBJ.PL) KATARZYNA PINKIEWICZ (KPINKIEWICZ@WBJ.PL)

PRINT & DISTRIBUTION COORDINATOR

SUBSCRIPTIONS MANAGER

AGNIESZKA MICHALIK (AMICHALIK@VALKEA.COM)

BOOK OF LISTS SPECIALIST

JOANNA RASZKA (JRASZKA@VALKEA.COM)

WBJ looks at Poland’s hi-tech sector, featuring the technologies and companies that are setting the trends in innovation

HI-TECH POLAND W a r s a w B u s i n e s s J o u r n a l ’s s p e c i a l s u p p l e m e n t o n i n n o v a t i v e c o m p a n i e s a n d t e c h n o l o g i e s i n P o l a n d

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JUNE 13-19, 2011

Nanotechnology

Graphene – the new silicon?

Poland could be at the forefront of production of the 21st century’s first miracle material, which looks set to transform technology for both business and consumers

Mass-production?

For some time production of graphene on a mass scale remained an open question.

The original sample of the material was obtained by applying a piece of clear adhesive tape to a pencil tip and

peeling off layers of graphite, a technique which obviously could not practically be used on a large scale. In 2004, researchers at the Georgia Institute of Technology in Atlanta patented another method of obtaining graphene, but this requires specialist equipment which is difficult to use in industrial conditions.

Poland leads the way Then Dr W∏odzimierz Strupiƒski, from the Institute of Electronic Materials Technology (ITME) in Warsaw, developed a method of producing graphene in an industrial environment. The technology is a variation on the method previously designed in Atlanta.

The advantage here though is that the new technique uses conventional equipment to chemically produce epitaxial (depositing single-crystal film Continued on p. 13 ➡

COURTESY OF THE GEORGIA INSTITUTE OF TECHNOLOGY/GARY MEEK

It is stronger than steel, lightweight, flexible and most importantly it is a better conductor than silicon. Since it was discovered in 2004 by two University of Manchester (UK) scientists, professors Andre Geim and Konstantin Novoselov, graphene has often been referred to as the material of the 21st century, with scientists worldwide seeing the new material applied in supersmall transistors, super-dense data storage or even energy storage. The new material’s potential is seen as so great that in 2010 it earned its two Russian pioneers the Nobel Prize in Physics.

Polish researchers may have found a way to produce graphene on an industrial scale

Data centers

Growth in Poland’s IT outsourcing sector Major firms are putting their trust in Polish data centers to provide their IT outsourcing services Poland is making a name for itself as a center for outsourcing in Europe with numerous major firms, including Sony and IBM, having outsourcing investments in Poland. The reason for this is that while major global brands can outsource work more cheaply to China

or India, they find it difficult to find employees with the specific technical and language skills that the Polish workforce can provide.

The outsourcing of IT services in particular is a growing market within the country. In 2010, representatives from 200 Polish IT companies predicted that outsourcing would see rapid development over the next two years. Research agency DiS even forecasts that the market will double from 2010 levels by 2012.

Data centers As much as a quarter of the IT outsourcing sector in Poland is taken up by the outsourcing of data centers, facilities used to house computer systems and associated components, such as telecommunications and storage systems.

In a recent study by Oracle, German and Swiss data centers scored highest in terms of their efficiency and flexibility to dynamic demands, in a ranking of next-generation data centers. This could explain why many companies

in Poland outsource their data storage to facilities located across the border.

Despite this, plenty of Polish companies also use Polish data centers, because of the disadvantages related to having a data signal travel through numerous operator networks.

This process can lead to potential difficulties in locating defects should a problem arise.

What makes a good data center?

Aside from standard IT parameters, such as ser-

ver/disk capacity or access speed, an important factor that is often highlighted is power supply. Data centers use a significant amount of power to run equipment, particularly for climate control to assure proper air humidity and circulation in server rooms.

Most servers must also be available to customers 24/7, which means sustainable power sources are another important consideration. The safety of the data, which includes fire protection, data

backup capabilities and physical protection of server rooms against unwanted access is also a key factor when firms are deciding which data center to use.

Continued on p. 14 ➡

In this supplement Nanotechnology . . . . . . . . . . . . .11, 13 IT outsourcing . . . . . . . . . . . . . . .11, 14 High-speed Internet . . . . . . . . . . . . .12 Euro 2012 telecoms . . . . . . . . . . . . .12 Medical devices . . . . . . . . . . . . . . . .13 E-books . . . . . . . . . . . . . . . . . . . . . . . .14

12

HI-TECH POLAND

www.wbj.pl

JUNE 13-19, 2011

High-speed internet in Poland

Euro 2012 & telecommunications

Poland’s internet goes mobile and to the skies

Orange and TP tasked with connecting the tournament

Poland is way behind in stationary high-speed internet infrastructure. But when it comes to the mobile version, it’s a European leader

Poland leads in mobile On the other hand, the Akamai report indicates that Poland is one of Europe’s

leaders when it comes to mobile internet connectivity, which is often used as an alternative, rather than a supplement, to stationary connectivity across Europe.

The average speed of mobile connections at the end of 2010 was 1.93Mb/s. Still, there is a lot of room to use this capacity, as the average monthly volume of downloaded data was 104MB, compared to average monthly downloads in Germany of 607MB. Polish telecoms are therefore keen to invest in mobile infrastructure, especially in locations where mobile is the primary internet service available due to poor or lacking stationary connections.

Broadband satellite Yet another real alternative to stationary internet is appearing on the Polish horizon. The UKE recently concluded tech-

nical tests on broadband satellite internet services. The tests were initiated in December of last year with the purpose of testing the quality of satellite internet in unfavorable weather conditions. The main criteria were speed, stability, delays and overall sensitivity to changes in weather.

Experts from the UKE were satisfied with the results of the tests and confirmed that the satellite-based service was widely equivalent to stationary broadband internet.

Satellite internet is a good alternative to stationary internet in places where the development of a ground network is difficult or expensive. It therefore seems that at least for the next few years, Poles could be looking to the skies – and not to fiber-optic cables – for their internet.

Mark Ordon

LTE: the future Magda Borowik, a telecommunications market analyst at IDC Poland, sees further development in the popularity and speed of mobile internet with the introduction of LTE (Long Term Evolution), a set of enhancements to 3G, or third-generation, mobile technology. LTE is regarded as the latest standard in mobile network technology.

Negotiations are currently underway between the UKE and the Ministry of Defense as to a suitable schedule of the handover of radio frequencies by the military for the LTE network. After an agreement is reached, the UKE will

SHUTTERSTOCK

Poland doesn’t score well when it comes to high-speed internet to stationary computers. According to Akamai Technologies’ most recent quarterly State of the Internet report, which provides insight into key global internet statistics such connection speeds, origins of attack traffic, trends in mobile connectivity and other factors, Poland has one of the slowest networks among developed countries.

Data collected by the European Commission supports Akamai’s findings. According to the EC, some 83 percent of all broadband customers in Poland have a line speed of under 2Mb/s available.

To remedy this, Poland needs a wave of investment in fiber-optic networks. Investments in fiber-optics are underway in Poland, but are being hindered by regulatory issues. At the Innovative Technologies conference in Warsaw at the end of May, Telekomunikacja Polska CEO Maciej Witucki and Anna Stre˝yƒska, president of the Office of Electronic Communications (UKE) both acknowledged that the EU regulations which force owners of fiber-optic networks to make their lines available to the competition discourage further investment.

announce a tender for the LTE frequencies.

Cyfrowy Polsat, a satellite television and internet services provider, has been conducting consumer tests on some LTE frequencies since March. The company announced that it switched the LTE 1800 network from a 10 MHz to a 20 MHz band at the beginning of June, and has extended the testing period through August to receive feedback on the now-increased download speeds of up to 100Mb/s. This allows a user to, for example, download a full HD movie in just a few minutes, as compared to nearly two hours using the current technology.

Satellite internet might be in the cards for Poland

Surprisingly, preparations are well on track With less than a year to go before the start of the Euro 2012 soccer championship, work is in full swing to ensure the tournament’s telecommunications system is fully integrated and in working order.

Polish telecom Telecomunikacja Polska has been charged, along with the Orange mobile phone network, with providing and establishing the necessary fixed and wireless IT and communications infrastructure within Poland. As official technology suppliers, TP/Orange will create a communications system linking the host cities, stadiums, and media points.

The infrastructure will support TV camera transmissions to the tournament’s official broadcast partners at the International Broadcasting Center in Warsaw.

Orange/TP will provide UEFA employees, journalists and commentators with datatransmission services, internet access and voice-communication services. The companies will also help meet UEFA’s hardware requirements.

Orange/TP saw the qualifying draw held in Warsaw in February 2010 as a test of their ability to provide communications and data-transmission

services for UEFA and for the media. The event was broadcast by over 100 TV stations around the world, according to TP, which considered it a success.

Unlike with a number of other infrastructure projects related to Euro 2012, the telecoms system preparations have so far gone without a hitch, TP said.

“Generally, we are progressing with all preparations and closely cooperate with UEFA and the Ukrainian partner. There are no major issues,” the firm’s press office said in an email.

TP/Orange are due to provide 7,000 internet and corporate-network access ports, 2,500 km of optical cabling in all facilities and a bitrate of 70 Gbps, which will enable simultaneous transmission (including in HD) from 32 cameras.

TP/Orange will employ 800 people to provide tech support during the tournament.

The firms said in a joint press release that they guarantee “hundred-percent (99.999 percent) reliability of the systems and hardware, with the maximal permitted transmission downtime of 26 seconds a day.”

TP’s press office said the firm will test its systems for Euro 2012 in a special laboratory this autumn in conjunction with UEFA’s Ukrainian technology partners.

Gareth Price

Brought to you by HSBC

A good partner is essential in business Polish enterprises involved in international trade are optimistic about the future – this conclusion results from research among exporters and importers, commissioned by HSBC. A positive attitude is important but, unfortunately, it is not enough to successfully lead and develop international business. Even the biggest optimism is no substitute for the necessary resources and knowledge of the relevant market rules and customs. However, exporters who lack any of these success factors can count on a bank that offers various types of trade finance instruments and provides entrepreneurs with its knowledge and experience.

Bank trade finance instruments allow exporters to deal with such problems as pressure from customers to extend payment deadlines, political risk of the recip-

ient country and currency risk. The solutions also allow exporters to take care of business areas such as the maintenance of liquidity and control of the timeliness of debt collection.

One of the most popular solutions is the confirmation of export letters of credit. An export letter of credit is a kind of guarantee of payment to the exporter, allowing a firm to acquire funds earlier (discount letters of credit by the bank). A confirmation of an export letter of credit constitutes an additional guarantee – apart from the obligation of the bank which is issuing the letter of credit – of payment to the exporter, after completing the terms specified in the letter of credit.

Another popular solution which makes it easier for exporters to cooperate with foreign partners is to finance pay-

ments under the guarantee, which allows for the freeing of the deferred future export earnings from the regular trade.

While thinking of how to finance trade it is also worth considering the choice of the settlement currency. The most popular currencies in which Polish exporters settle accounts with their foreign contractors are the US dollar and the euro.

For those who cooperate with China/Hong Kong, HSBC has recently opened an opportunity to settle in yuan.

The choice of the currency enables the Polish exporter to receive a higher price for his goods, and helps the Chinese contractor get rid of the currency risk arising from the need to exchange the yuan for the currency in which he pays his vendors. It should be noted that settlement

in yuan may be useful for Polish exporters also in trade with other countries in Asia, where the position of the yuan as settlement currency is growing.

Support from the bank, however, should not be limited to providing funding instruments in the existing commercial relations. The bank can also help an exporter to enter new markets, for example by issuing tender guarantees or performance guarantees related to the execution of a given contract, which is particularly important in the case of government contracts (local laws).

However, it requires experience and knowledge of the rules prevailing in the new market. HSBC is one of the few, if not the only, bank in Poland, which has 146 years of experience in supporting international trade. The bank provides

Andrzej Puta, dyrektor Departamentu Finansowania Handlu, HSBC Bank Polska S.A.

services to exporters in over 60 different markets in the world, acting as their guide and sharing its knowledge of the local conditions with them. ●

HI-TECH POLAND

JUNE 13-19, 2011

www.wbj.pl

13

Technology

LfC technology leads the way Polish firm LfC is making a name for itself on the world stage with its innovative spinal treatment products

Worldwide success

SHUTTERSTOCK

LfC is a small life-science company from Zielona Góra that has made quite a name for itself internationally. Founded in 1989, the firm specializes in the development and production of surgical devices used in orthopedics and neurosurgery for spinal treatment.

LfC has been very active in its field globally, cooperating with leading research centers and associations, including the prestigious EuroSpine association. The important role LfC has played in EuroSpine led to the organization of EuroSpine 2009 congress in Warsaw.

Given its size, LfC decided to focus on research and development, and only sells its products within Poland.

Lechos∏aw Ciupik, the firm’s CEO and owner says LfC cannot afford a sales network abroad, and finds it more convenient to sell intellectual property (IP) and focus on new research. The business

lumbar spinal stenosis. The device is less invasive than others, allowing a patient to be discharged from the hospital as early as three days after spinal surgery. The fact that a company from the US (a leader in spinal implantology), purchased rights to a Polish invention added extra prestige to the transaction.

In addition, Mr Ciupik says that according to available data, the deal was the first sale of Polish intellectual property to the US in post1945 Poland. LfC is now working on a new project, but has not disclosed any details yet.

Surgical devices developed by LfC are used in operating rooms around the world model seems to work well for the firm, which is staffed primarily by scientists.

The company’s technology, primarily the DERO Spinal System, is comprised of a set

of inventions spanning the entire scope of spinal surgery.

Specifically, the DERO system includes spinal implants, special surgical instruments and surgical procedures that

ensure the safety of both the patient and surgeon.

Sale of IP to US firms LfC’s most current success was the sale of intellectual

property for its inSWing device to US medical company Blackstone/Orthofix.

InSWing is designed to alleviate leg and back pain suffered by individuals with

The success of LfC shows that technical innovation is alive and well in Poland. As impressive as the inventions themselves is the company’s ability to market its products and make a name for itself in the competitive international medical community. DERO and inSWing have become commonplace names in operation rooms across North and South America, Australia and Japan.

Mark Ordon

Graphene – the new silicon?

COURTESY OF THE UNIVERSITY OF MANCHESTER

➡ Continued from p. 11 on single-crystal substrate) semiconductor structures.

As a result, the process is more flexible and can be used to produce composite materials and transparent electrodes in solar cells, super capacitors or hydrogen cells.

The ITME team, along with researchers at the University of Warsaw and other centers in Poland and abroad (including the two professors from the University of Manchester) are still developing the technology, although the method is already under patent protection. In May 2010, it was submitted to the Polish patent office along with an application to the Ministry of Higher Education to fund the extension of patent protection to other countries.

In addition, an article describing the achievements of Dr Strupiƒski’s team appeared in the prestigious Nano-Letters scientific journal.

This broad patent protection gives Polish scientists, as exclusive owners of the technology, the ability to legally manufacture graphene for commercial applications and going further, develop techno-

Researchers from the University of Mancherster are working with those from Warsaw’s ITME on graphene logical processes for the manufacture of devices using graphene in Poland.

Financial incentives Dr Strupiƒski is also aiming to qualify for a grant under the EU’s Flagship Program which looks to reward ambitious, large-scale, science-driven, research initiatives that aim to achieve a visionary goal. If research on graphene is approved, Polish research centers have a chance at funding of up to €100 million per year

for 10 years, opening numerous possibilities for Polish science and business.

In addition to EU funding, the ITME already has the support of the Ministry of Economy, which will open the door to commercial investment by Polish companies. This means that despite reservations regarding a lack of technological infrastructure, there is definitely potential for the country to become a global leader in graphene research and production.

Mark Ordon WBJ_125x170_CMB_EL.indd 1

6/3/11 11:59 AM

HI-TECH POLAND

www.wbj.pl

Growth in IT outsourcing sector ➡ Continued from p. 11

How does Poland measure up?

An overview of Polish companies offering collocation (outsourcing data and application to external hardware) and hosting services paints an interesting picture. The Warsaw Data Center, located in the center of the capital, has an uninterrupted power supply guaranteed with a UPS device capable of maintaining the facility for 150 minutes during a power outage. Data moving to and from the servers is transferred via a 1Gb/s fiber-optic network, which can be hooked up to all the leading operators.

The Information Technology Center for Mining, located in Katowice, uses IBM’s Tivoli Storage Manager to centralize backup and archiving, to assure the safety of stored resources, including the possibility to store data on external media in fire-proof safes.

Poznaƒ-based beyond.pl points to its uninterrupted power supply, with electricity flowing from two independent

JUNE 13-19, 2011

E-media

E-book market set for takeoff in Poland

power plants in the city. If both of these should fail, two independent UPS systems can kick in to maintain power.

Finally, a heavy-duty gasoline power generator with 1.85MW of capacity can provide around-the-clock electricity supply, if necessary.

In contrast, the Sprint Data Center located in Olsztyn attempts to attract customers with its secure location, as the facility is located in a non-flood zone, far away from industrial areas, airports or refineries.

Despite these data centers’ differences, they all are living up to the demands of the market, while also being ready to offer customers a personalized outsourcing service.

Future growth As a result, international firms such as German car giant Volkswagen and Japan’s Fujitsu Siemens are now moving their IT outsourcing needs to data centers in Poland. With more major companies expected to follow suit, the future looks bright for Poland’s IT outsourcing sector.

Mark Ordon

First, however, the industry will need to get some formatting issues straightened out The popularity of e-books is growing steadily in Poland and although they comprise no more than 1 percent of all books sold in the country, the sector’s potential is enormous, if Western countries’ experiences are anything to go by.

But in order to make e-books more user-friendly and therefore marketable on a mass scale, the industry still needs to resolve some tricky formatting issues.

Technical aspects Unlike paper books, electronic books don’t have a universal interface. Two aspects need to be considered. One is the technology on which the book is read. In the most straightforward case, readers can use a regular PC or a laptop, but specialized e-readers, smart phones and e-papers can also be used. The second aspect is the format in which the e-book is stored. As is often the case with new technology, producers of readers and e-books alike each have their own ideas of what represents the ideal format, leading to a

COURTESY OF AMAZON.COM

14

Expect to see more e-readers on Polish beaches this summer confusing array of options for the consumers.

The most common formats used on the Polish market include txt, html, PDF, Fiction Book version two, electronic publication (EPUB) and the Kindle’s .azw format. PC users will most likely recognize the first three formats, commonly used for documents and web pages. The other formats have been created specifically for e-books.

Emerging trends As of April 15, 2011, Polish e-book distributor Virtualo’s e-book catalog comprised

7,573 titles in total. Some 3,000 of these were in PDF and 4,525 in EPUB format.

Virtualo noted that EPUB format titles are actually increasing in popularity compared to those in PDF. There is a technical reason for this trend. As much as the PDF is, and likely will long remain, the format of choice in many cases due to its compatibility with PCs, it is beginning to lose ground because it is not ideal for use with smart phones and e-readers.

A book saved in PDF format takes up precious space of sometimes restricted capacity.

For example, an average-sized novel can weigh in at a hefty 16MB. This means the number of books which can be stored in PDF is greatly limited and that the reaction time of the smart phones and e-readers on which they are saved is relatively slow. Moreover, the PDF format is not scalable. This means that while reading an e-book on a 15-inch screen is relatively comfortable, reading the same page on an iPhone screen may require the use of a magnifying glass.

This is where the advantages offered by EPUB come in. EPUB is not as universal as PDF, but the benefits for smaller devices weigh against the disadvantages.

An average-sized novel will take up only 138kB of space on an e-reader. Since the file essentially contains content only, formatting is done by the device itself, often according to the preference of the user – the size of characters can thus often be adjusted to the reader’s liking.

Will EPUB become the MP3 of e-books? It certainly seems as if the industry is heading in that direction, but as with all things technological, there are many chapters yet to be Mark Ordon written.

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BUSINESS ENVIRONMENT

JUNE 13-19, 2011

Inflation

RPP hikes rates again Tightening will likely now take a pause, central bank head Marek Belka said after the decision Poland’s rate-setting Monetary Policy Council (RPP) has hiked the country’s main interest rate for the fourth time this year due to continued inflation fears. The decision was in line with market expectations and likely signals the beginning of the end of the latest round of monetary policy tightening.

The headline seven-day interest rate was raised by 0.25 percentage points to 4.5 percent, while three other interest rates (Lombard, deposit and rediscount) were also hiked by a quarter of a percentage point.

In a document explaining its decision, the RPP wrote that “the elevated level of current inflation and inflation expectations, as well as the risk of rising wage pressure amidst a considerable growth in employment, justify increasing the RPP interest rates.”

Inflation rose by 0.3 percentage points month-onmonth to stand at 4.5 percent in April, well above the central bank’s target rate of 2.5 percent. The economy also continued to expand strongly in the first quarter, growing 4.4 percent.

The RPP said that although the growth in prices

was mainly the result of rising global food and energy prices, core inflation (which excludes food and energy prices) was also an important driver.

The RPP and analysts alike expect inflation to continue rising this year as a result of increasing global commodities prices.

Nevertheless, central bank head Marek Belka signaled last week that the current period of monetary tightening was coming to an end.

“We’re planning to wait at this point, but of course … we’re not ruling out further adjustment if the chances of consumer price inflation returning to the target worsen,” he told a press conference.

Analysts said Mr Belka was hedging his bets, as the RPP could raise rates one more time in July if inflation worsened or if the ECB raised interest rates.

Mr Belka added that the bank would now assess the impact the tightening has had so far on inflation and the economy. Poland is due to release a consumer price index reading for May on Wednesday of this week.

The central bank is in a precarious position, as insufficient tightening could lead to damaging inflation, while too much could put the breaks on economic growth.

Poland’s Economy Minister and head of the agrarian People’s Party, Waldemar Pawlak, said the latest rate hike may be “very harmful” for Polish economic growth, adding that because Russia’s ban on European Union vegetables will likely drive down food prices, the hike wasn’t needed.

Mr Belka, responding to the remarks, said, “You shouldn’t force the man’s mouth shut.”

Gareth Price

Rising tide of inflation Consumer price inflation, percentage change y/y 5 4 3 2 1 %

November

December 2010

January

February 2011

March

April

Source: National Bank of Poland

The Greek economic crisis

Greek bailout, take two?

The collapse of the country’s economy is not likely, but debt restructuring is The European Union and International Monetary Fund looked set to agree on a new bailout package for Greece last week, ahead of a meeting of euro zone finance ministers, scheduled for June 20.

German Finance Minister Wolfgang Schäuble told the German parliament that Greece would need an extra €90 billion. Reuters, citing anonymous euro zone officials, said the bailout is likely to total around €120 billion.

The moves come as alarm over Greece’s finances grows. In a letter to the European Commission, the European Central Bank, the IMF and euro zone countries, Mr Schäuble wrote last week that, “We are standing

before the real risk of the first full-blown bankruptcy inside the euro zone.”

The comments came as the EU, ECB and IMF were negotiating the release of the latest tranche of Greece’s €110 billion bailout.

“It is impossible to talk seriously about the bankruptcy of Greece,” said Janusz Grobicki of the Adam Smith Center, a think tank.

“Too many banks and countries are involved in the Greek economy, they will not allow policymakers to lose this much money.”

It does however seem increasingly likely that Greece’s €340 billion debt will have to be restructured (read: defaulted upon in part), even if authorities agree to a new bailout package.

“To me, it is clear that Greece is insolvent and that Greek debt will have to be restructured sooner or

later,” said Lars Christensen, chief analyst and head of emerging markets at Danske Bank.

The issue is coming to the fore just as Poland is about to take over the rotating EU presidency. Poland wants talks about the next multiyear EU budget – including continuing generous EU funding to poorer member states – to take top priority during its term.

According to Piotr Bujak, an analyst at BZ WBK, concerns over Greek debt should not derail the Polish presidency’s ambitious economic agenda.

It is widely expected that euro zone problems will be discussed by members of the single currency themselves, and that Poland will be able to concentrate on preparing the next multi-annual budget, he said.

Alice Trudelle

www.wbj.pl

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INDUSTRY NEWS

www.wbj.pl

JUNE 13-19, 2011

Privatization

JSW IPO

Poland raises z∏.3.17 billion from sale of PZU stake

Bookbuilding for JSW’s IPO starts The coal miner’s IPO is set to be the biggest in the CEE region this year

Poland’s Treasury sold a 10 percent stake in the country’s largest insurer, PZU, for z∏.3.17 billion last week. The government sold 8.6 million shares at z∏.367 per share, according to a statement on the Treasury Ministry’s website.

The sale was oversubscribed and half of the shares went to foreign investors and half to domestic buyers, the Treasury said. The 10 percent stake was valued by a number of analysts at z∏.3.3 billion prior to the sale.

Credit Suisse, Goldman Sachs, ING, JPMorgan Chase and UniCredit were involved in an accelerated bookbuilding process, which took place throughout last week, Rzeczpospolita reported.

In March, Treasury Minister Aleksander Grad told reporters that Poland would not sell shares in the company this year. He said that in the long term the Treasury wanted to keep hold of about 25 percent of PZU.

Bookbuilding for the initial public offering of state-controlled coal miner Jastrz´bska Spó∏ka W´glowa was due to start on Monday following the financial regulator’s decision to approve the company’s issue prospectus last week.

The maximum price-per-share was also due to be announced at the same time.

Poland’s Treasury Ministry is selling 33.1 percent of JSW, the European Union’s largest coking-coal producer. Some Polish media sources have said it could fetch the state up to z∏.6.5 billion.

JSW and the government have said they will not sell shares in the company for 360 days after the debut, which is set for July 6.

Individual investors will be able to sign up for shares June 14-27, while institutional investors will be given from June 29 to July 1, the company said in its issue prospectus. Of the 39.5 million shares due to be sold, JSW said 25 percent

WBJ ARCHIVES

The Treasury’s decision to sell surprised the market

The government now owns 35 percent of Poland’s top insurer Dariusz Górski, an analyst at Wood & Company, said the Treasury’s decision to sell had caught the market flat-footed.

“It was definitely a surprise move by the Treasury,” he said. “They would have had to sit on the stock for quite a while for [PZU] to become profitable again. They must expect it would fall more in the future, so they’re cutting their losses,” he added.

The Treasury owned 45

percent in the company prior to the sale, meaning its holding will now be cut to 35 percent. Shareholders recently passed an amendment to the company’s constitution that allows only the Treasury to hold more than 10 percent of all shares in the company.

PZU debuted on the Warsaw Stock Exchange on May 12, 2010, but only after the conclusion of a protracted ownership dispute between

the Polish government and Dutch insurer Eureko.

Prior to the latest sale of PZU stock, Poland had raised about a fifth of its privatization goal of z∏.15 billion this year. It has had to endure some disappointments, such as the initial public offering of Bank Gospodarki ˚ywnoÊciowej (BG˚), which earned the Treasury only 22 percent of the z∏.1.44 billion it had hoped to raise.

Thomas Kolasa

are reserved for individual investors, although this number may rise. The company added that it will pay out a dividend of at least 30 percent of its consolidated profit, depending on its actual results.

Jaros∏aw Zagórowski, president of the board at JSW, told journalists at a press conference that prospects for JSW are rosy.

“The market in which we operate is in a very good situation, and the outlook is still promising. Our strategy, whose key elements are ... an increase in coking-coal production, and an improvement in efficiency, will determine our path in coming years,” he said.

The IPO is part of the government’s asset-sale program that it hopes will raise z∏.15 billion this year to help reduce the budget deficit and keep debt levels down.

JSW’s IPO is expected to be the biggest in central Europe this year, a deputy treasury minister said recently.

The coal miner’s net profit totaled z∏.619 million for the first quarter of 2011, a fourfold year-on-year increase.

Gareth Price

Airlines

Lot slows its descent

Daily executive digest

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The CEO of Polish national airline Lot told a convention in Singapore that although the carrier made a loss in the first four months of 2011, its earnings were higher by z∏.25 million than in the same period a year earlier.

The airline noted a 15 percent year-on-year increase in passenger traffic during the period.

Mr Piróg, speaking to an International Air Transport Association (IATA) convention, did not give a precise earnings figure. He also declined to specify whether the improvement was in net profit or operational profit.

The company itself could not be reached for comment to clarify this matter.

If the improvement was on net profit, experts say this would probably be attributable to asset-sale earnings. If the increase was on operational profit, however, this would likely mean Lot had managed

COURTESY OF WIKIMEDIA COMMONS

The airline’s earnings would have been better had oil prices not spiked this year, the company’s CEO said

Lot saw a 15 percent increase in passenger traffic to navigate, relatively successfully, the difficult situation on the global oil market.

Mr Piróg said that the result for the first four months of this year would have been better, perhaps even by z∏.65 million, if oil prices had been at last year’s levels.

“January-April is a period in European air traffic when the demand for air travel is reduced. Despite a considerable improvement, this time has brought us some losses. I expect this situation to improve in the forthcoming

period and that our core business will bring us continuous profit when the oil price returns to the level of under $100 per barrel,” said Mr Piróg.

IATA estimates that the price of oil will rise to approximately $110 a barrel this year.

In 2010, 4.5 million passengers flew with Lot – 500,000 more than in 2009. The company has a 30 percent market share in Poland and reported an operational loss of z∏.160 million for full-year 2010.

Katarzyna Piasecka

Warsaw’s Zachodia railway station will soon get a major revamp

Ghelamco plans a spate of skyscrapers in the capital 19

18

LOKALE IMMOBILIA

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

Reinhold sells office complex Developer Reinhold Polska AB has concluded a preliminary sale agreement for its Reinhold Center in Katowice with Polish railway cargo carrier PKP Cargo. The deal is estimated to be worth z∏.53 million. The final agreement is scheduled to be signed by September 30.The office complex, which is currently under construction, is located on Al. Korfantego, Katowice’s main thoroughfare. The investment will comprise two connected buildings totaling 8,635 sqm of office and service space. ●

In this issue A2 troubles . . . . . . . . . . . . . . . . .17 Kuryłowicz dies . . . . . . . . . . . . .17 Warszawa Zachodnia . . . . . . . .18 Nova Park financing . . . . . . . . .18 Office demand . . . . . . . . . . . . . .18 Ghelamco skyscrapers . . . . . . .19 Immofinanz investments . . . . .19

China’s COVEC terminates A2 contract A major project for the Euro 2012 soccer championship has come to a screeching halt China Overseas Engineering Group (COVEC) announced last week that it was ceasing construction on two sections of the A2 highway between Warsaw and ¸ódê, in a move that has put one of the country’s most important road projects in the lead-up to the Euro 2012 championships in jeopardy.

At the same time, the company says it wants to return to the negotiating table with the Polish roads authority, the General Directorate for National Roads and Motorways (GDDKiA).

Construction on the A2 came to a halt last month

You won’t likely see this between Warsaw and ¸ódê anytime soon. when subcontractors froze work in protest at not having

received payment from COVEC. GDDKiA sent a

final ultimatum to the Chinese firm, saying COVEC should

come up with a credible plan detailing how it intends to complete the work.

The roads authority wrote in a statement that if COVEC fails to offer a constructive solution, it will be forced to break the contract and initiate legal proceedings for at least z∏.741 million in damages.

On Friday, the contractor presented to GDDKiA new conditions for the continuation of the work. The directorate said it would make a final decision on Monday.

The government has said that if it decides to dismiss COVEC from the project, it will move to a back-up plan that would see the completion of the company’s two portions of the highway by the contractors that have been building the neighboring sections.

Katarzyna Piasecka

Architecture

Renowned Polish architect dies in airplane crash The exact circumstances of the accident are still unknown Stefan Kury∏owicz, president of the Kury∏owicz & Associates architectural studio, was killed in an airplane accident in the Spanish Principality of Asturias last Monday.

Mr Kury∏owicz and three of his companions were flying to Portugal in two planes when they ran into heavy rain and dense fog. The exact circumstances of the crash are as yet unknown but it is believed the two aircraft collided as a result of the adverse weather conditions Born on March 26, 1949 in Warsaw, Mr Kury∏owicz graduated from the department of architecture at the Warsaw University of Technology, where he later went on to work as a professor.

After graduating he became an award-winning architect with his Kury∏owicz & Associates architectural firm, which was founded in 1983.

Among the many designs for which he was acclaimed are those of the Focus Filtrowa and the Lot Polish Airlines headquarters office buildings in Warsaw.

More recently, he worked on projects including the Municipal Stadium in Bia∏ystok and the capital’s Wolf Bracka department store, the Prosta Tower office high-rise and the Museum of the History of Polish Jews.

Between 1994 and 1997, Mr Kury∏owicz was Architect’s Rights Ombudsman of the Warsaw Branch of the Association of Polish Architects (SARP). He served as a member of the Board of the Warsaw Branch of SARP

COURTESY OF KURY¸OWICZ & ASSOCIATES

Bielsko-Bia∏a based developer Murapol has launched its first investment in Warsaw.

The company will develop, in partnership with Magnus Group, a residential project called Cztery Pory Roku on ul.

Berensona in the capital’s Bia∏o∏´ka district, which will comprise four buildings with a total of 144 apartments. The scheme is scheduled for completion in July 2012.

The Cztery Pory Roku development will offer units sized from 40 sqm to more than 70 sqm, and priced at z∏.6,100-7,250 per sqm.

JUNE 13-19, 2011, LI 16/23

Highway construction

COURTESY OF WIKIMEDIA COMMONS

Murapol enters Warsaw market

•

Stefan Kury∏owicz was one of modern Poland’s most influential architects from 1976 to 1981 and the Board of SARP between 1981 and 1992.

He was also chosen member of a committee working on the reconstruction of the

UN headquarters in New York in 2010.

Katarzyna Piasecka

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

www.wbj.pl

M1 center expanded Investor Metro Group has completed expansion work on its M1 shopping center in Zabrze. The facility’s area has been expanded by 9,000 sqm. Among 27 new tenants to open shops in the newly added section are Bergson, Douglas, Jysk, Komfort, KFC and TK Maxx. After the expansion, the total number of shops in M1 Zabrze has increased to 103 and the total area occupied by the tenants now amounts to almost 48,000 sqm. The M1 shopping center in Zabrze opened in 1999.

LOKALE IMMOBILIA – REAL ESTATE

JUNE 13-19, 2011

Commercial investment

Warszawa Zachodnia agreement soon HB Reavis hopes to close the deal this month, and will make several more investments in Poland Slovakian real estate investor and developer HB Reavis has announced it expects its investment agreement with Polskie Koleje Paƒstwowe (PKP) for the construction of the capital’s Warszawa Zachodnia railway station to be signed by the end of June.

HB Reavis revealed that its plan for the area will comprise the construction of not only the

railway station, but also of a retail facility and several office buildings near the station.

PKP spokesperson ¸ukasz Kurpiewski confirmed that it was very likely that the agreement would be concluded by the end of this month.

“The investment agreement is currently being read by lawyers, and after that it should be signed shortly,” he said.

Regarding the start of construction of the new investment, Mr Kurpiewski said it depends on procedures for obtaining the construction permit.

HB Reavis’ Polish portfolio already comprises the office

project Konstruktorska Business Center in Warsaw’s postindustrial S∏u˝ew district.

The company’s CEO, Slavomír Jankovič, revealed that the firm is currently holding talks for the purchase of several plots in Poland.

“In Poland we are first and foremost looking for plots for retail development,” the company’s leasing manager Jaros∏aw Prawicki said, adding that HB Reavis is now negotiating an agreement for the purchase of land in Kielce from bus company PKS. According to Mr Prawicki, the talks should end this month.

COURTESY OF WIKIMEDIA COMMONS / ALINA ZIENOWICZ

18

Warszawa Zachodnia will get retail and office facilities along with its reconstruction HB Reavis plans to build a 40,000-GLA shopping center

on the plot.

Katarzyna Piasecka

Panattoni completes BTS

Nova Park shopping center gets financing

After less than seven months of construction work, industrial space developer Panattoni Europe has completed a 32,500-sqm built-to-suit facility for household appliances manufacturer Zelmer. The project is located within the Special Economic Zone EuroPark Mielec.

Futureal and Caelum Development have secured €50 million in bank financing from BZ WBK for their Nova Park shopping and entertainment center in Gorzów Wielkopolski, Lubuskie voivodship.

The investment, whose value is estimated at €120 million, will host 140 stores and points of service and will become one of the largest

MLP leases in Tychy Warehouse space developer MLP Group has leased 2,970 sqm of industrial and office space in its MLP Tychy warehouse and production park in Silesia to Magna Car Top Systems Poland. The tenant has already been present at the facility since 2008. ●

projects of its kind in the region when it is completed in the first half of 2012.

“Nova Park is the first step in Futureal’s new strategy to provide equity and development experience for regional development partners,” Gábor Futó, founder of Futureal, said in a statement.

“The fact that we have been able to secure financing

at very favorable interest rates reflects the strength of our balance sheets and the credibility of the joint venture partners,” Mr Futó added.

“The leasing of Nova Park has been progressing above expectations. Commercialization has reached 70 percent of the leasable area 10 months before the opening date with all major

anchors in place,” stated Caelum Development founder David Sharkey.

Established in 2003, Futureal Group is active in the CEE property markets and is currently developing projects worth a total of more than €1.6 billion. The company plans to spend €100 million this year on project acquisitions through

partnership agreements in CEE. Caelum Development is an Irish investment group established in Poland in 2002 and mainly active in the Polish and Romanian real estate markets. The firm is focused on the development of multifunctional shopping centers in medium-sized cities.

Adam Zdrodowski

Polish office market sees growing demand Demand for office space in Poland is growing, pushing down vacancy rates in a number of the country’s most popular locations, according to the Q1 2011 Poland and Warsaw MarketView report from CB Richard Ellis. The research found that Poland continued to benefit from improved

business sentiment in the period, as multinationals focused on growth markets in the CEE region.

Almost 200,000 sqm of office space was leased in Warsaw in Q1 with renewals accounting for just 24 percent of that volume. Some 405,000 sqm is currently under construction in the

city, more than 30 percent of which has already been preleased. Work on a number of large-scale projects is expected to launch this year.

The major regional markets are also performing well. Total regional take-up in the first quarter of this year amounted to 75,000 sqm, with Kraków (18,500

sqm) and ¸ódê (19,300 sqm) the most popular locations.

Combined with low construction activity, the growth in demand has translated into decreasing vacancy rates.

Prime headline rents are now increasing in Warsaw and remain stable elsewhere.

“In addition, tenants’ incentives are now being successively reduced. Decreasing vacancy rates and growing demand will exert further upward pressure on rental levels in 2011, particularly in the central and established office locations,” the report said.

Adam Zdrodowski

LOKALE IMMOBILIA – REAL ESTATE

JUNE 13-19, 2011

High-rise buildings

the plot on which Warsaw Spire will sit.

“The acquisition will allow us to optimize the Warsaw Spire project,” Mr van der Toolen said, adding that the firm’s distant plans for the land include the construction of a residential high-rise called Chopin Tower.

The scheme will launch when the situation in the housing market improves. Before that the company wants to focus on another large commercial investment located in the same neighborhood. Next year construction is expected to start on the first of a complex of three

skyscrapers called Sienna Towers, which will rise over the Daszyƒskiego Roundabout, offering office and retail space.

More distant plans envision two more office high-rises.

Across ul. Towarowa from the Sienna Towers development Ghelamco will build a project called Spinaker, which will offer some 50,000 sqm of space. And between ul. Grójecka and Al. Jerozolimskie in Warsaw’s Ochota district, Mr van der Toolen revealed, the company has bought a plot on which it is planning a 108-meter building.

Adam Zdrodowski

COURTESY OF PARTNER OF PROMOTION

Developer Ghelamco Poland has launched construction on the long-awaited Warsaw Spire office high-rise in Warsaw.

Located on the city’s ul.

Towarowa and expected to deliver, along with two lower accompanying structures, a total of 100,000 sqm of space, the 220-meter skyscraper will become one of the tallest buildings in the Polish capital when it is completed in 2014.

Even though Ghelamco has not yet signed any tenants for the scheme and talks with a number of potential anchors are still underway, the company is convinced of the project’s prospects for success. The neighborhood in which the development is situated will be one of the hottest office locations in the near future, according to Ghelamco’s managing director for CEE, Jeroen van

der Toolen.

Construction has recently started on Warsaw’s second subway line, which will go through the capital’s Wola district. The area’s ul. Towarowa, ul. Prosta and ul. Grzybowska are located just slightly west of downtown Warsaw and still feature plenty of undeveloped or post-industrial land, which is likely to attract new investments to the neighborhood and make it a new business hub in the city.

Ghelamco itself has just succeeded in acquiring a majority stake in publisher Bellona, which owns land neighboring

The Warsaw Spire project is scheduled for completion in 2014

Property-related stocks Security

Closing price on June 9

% change (week)

52-week low

52-week high

% change (year)

Total shares

Market value (z∏.mln)

BUDIMEX

87.50

-5.91

84.55

109.20

-3.63

25,530,098

2,233.88

CELTIC

19.95

2.78

17.00

60.55

N/A

34,068,252

679.66

DOMDEV

49.32

6.06

38.52

49.32

1.48

24,560,222

1,211.31

ECHO

5.30

0.00

4.16

5.55

16.23

420,000,000

2,226.00

ELBUDOWA

160.90

2.94

149.00

188.40

-5.35

4,747,608

763.89

ENERGOPLD

3.98

-0.50

3.57

4.20

-5.69

70,972,001

282.47

ERBUD

25.41

-2.46

24.95

61.00

-49.88

12,602,711

320.23

GANT

12.72

3.00

11.90

23.38

-41.89

20,499,953

260.76

GTC

19.10

-2.30

17.58

24.98

-20.25

219,372,990

4,190.02

HBPOLSKA

2.33

10.95

2.02

3.90

-31.67

210,558,445

490.60

JWCONSTR

15.30

-0.33

13.50

18.69

-8.33

54,073,280

827.32

LCCORP

1.48

-2.63

1.41

1.72

0.68

447,558,311

662.39

MARVIPOL

8.43

0.00

7.40

16.43

-48.60

36,923,400

311.26

MIRBUD

3.90

-2.50

2.82

4.75

36.84

75,000,000

292.50

MOSTALWAR

32.60

0.00

32.50

69.40

-52.62

20,000,000

652.00

MOSTALZAB

2.88

1.05

2.54

4.14

-25.77

149,130,538

429.50

ORCOGROUP

35.30

2.14

19.00

40.00

56.89

14,053,866

496.10

PBG

153.50

10.27

134.70

252.00

-28.94

14,295,000

2,194.28

PLAZACNTR

4.31

-5.27

3.70

5.59

-14.14

292,647,720

1,261.31

POLAQUA

18.10

6.47

16.00

20.60

4.68

27,500,100

497.75

POLIMEXMS

3.22

5.23

2.91

4.84

-25.81

521,154,076

1,678.12

POLNORD

28.25

1.44

27.49

39.41

-23.69

23,798,439

672.31

RANKPROGR

13.09

-1.43

9.59

13.60

N/A

37,145,050

486.23

ROBYG

2.00

-1.96

1.70

2.13

N/A

257,390,000

514.78

RONSON

1.44

0.00

1.36

1.81

-14.29

272,360,000

392.20

TRAKCJA

3.03

0.66

2.49

4.97

-28.87

232,105,480

703.28

ULMA

83.00

-0.60

70.00

88.00

6.96

5,255,632

436.22

UNIBEP

6.89

1.03

6.38

10.30

-13.33

33,927,184

233.76

WARIMPEX

8.94

-3.87

7.64

10.89

11.06

54,000,000

482.76

ZUE

10.99

-2.66

10.80

15.14

N/A

22,000,000

241.78

19

Immofinanz Group targets Poland for new investments

Ghelamco plans skyscrapers galore The company has acquired plots in the capital’s Wola and Ochota districts for large residential and commercial investments

www.wbj.pl

Austrian property investor Immofinanz Group has announced its European investment plans for the next two to three years. The firm plans to spend more than €900 million on new assets during this period, with Poland its most significant target.

The company is planning to spend some €100-150 million on office investments in Poland over the next two years, with the majority to be located in Warsaw. It will spend approximately the same sum of money on shopping centers in the country. The company currently owns some 60,000 sqm of retail space.

The largest investment will be the development of a chain of small shopping centers called STOP.SHOP, on which Immofinanz is planning to spend €600 million. Within two to three years, Immofinanz will build 45-50 small shopping centers in Europe

under the brand. The company has already bought three plots for this project in Poland.

Vienesse ATX-listed Immofinanz was created in 1990.

Since then, the company has invested in 1,600 projects with a total value amounting to €8.5 billion. At the end of January 2011, Polish assets constituted 7.7 percent of the group’s portfolio, putting it in fourth place on the list of the Immofinanz’s biggest markets.

Immofinanz CEO Eduard Zehetner told journalists recently that the company could list its shares on the Warsaw Stock Exchange if dual-listing procedures were simplified. Stocks of Austria’s Immoeast, a company with which Immofinanz merged last year, were traded on the Warsaw bourse until April 23, 2010.

Katarzyna Piasecka

20

MARKETS

www.wbj.pl

JUNE 13-19, 2011

Stocks report

world stock indices DJIA

NASDAQ

12,133.50 (June 9 close)

S&P500

2,687.13 (June 9 close)

-1.02% (for the week)

FTSE100

1,289.25 (June 9 close)

-2.02% (for the week)

DAX

5,852.41 (June 9 close)

-0.92% (for the week)

-0.15% (for the week)

Uncertainty remains

NIKKEI225 7,154.23 (June 9 close)

9,467.15 (June 9 close)

0.73% (for the week)

-0.92% (for the week)

CHANGE: 4.80%

CHANGE: 0.39%

CHANGE: 2.52%

CHANGE: -0.80%

CHANGE: 2.59%

CHANGE: -8.55%

(year to June 9)

(year to June 9)

(year to June 9)

(year to June 9)

(year to June 9)

(year to June 9)

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: 5,809.37

52-week low: 8,227.63

Andrew Nawrocki, Market analyst & trader, gowebtrade.com After June 3’s worse-thanexpected non-farm payroll figures, markets opened last week in a bearish mood. On Monday, the WIG closed down by 0.5 percent, with other European indices not far off. Not surprisingly, the US began the week worse, with the S&P500 closing over 1 percent lower.

Tuesday brought hope to the markets, and was in fact the only day the WIG and WIG20 closed in positive territory (WIG +0.71 percent, WIG20 +0.94 percent). The impetus for the rises came from strongerthan-expected retail sales figures for the euro zone (+0.9 percent, expected +0.3 percent), as well as strong factory orders in Germany (+2.8 percent, expected +2 percent).

Wednesday saw further

Major indices WIG

49,378.82 (June 9 close)

WIG20

2,871.69 (June 9 close)

Change for the week: -0.90%

52-week high: 50,371.74

Change for the week: -0.84%

52-week high: 2,932.62

Change year to June 9: 3.63%

52-week low: 39,366.83

Change year to June 9: 4.25%

52-week low: 2,270.52

51,000

3,000

50,000

2,900

49,000

2,800

48,000

09.06

08.06

07.06

06.06

03.06

02.06

01.06

31.05

30.05

27.05

26.05

25.05

24.05

23.05

20.05

19.05

18.05

17.05

16.05

09.06

08.06

07.06

06.06

03.06

02.06

01.06

31.05

30.05

27.05

26.05

25.05

24.05

23.05

20.05

19.05

18.05

17.05

2,500

16.05

2,600

45,000

13.05

46,000

13.05

2,700

47,000

Top 5 IGROUP MOSTALZAB REDAN FOTA HBPOLSKA

Closing 0.35 1.84 7.54 15.85 2.33

% change (week) 52-week high 118.75 0.95 29.58 4.14 13.04 8.77 11.46 18.89 10.95 3.90

52-week low 0.16 2.54 3.36 13.25 2.02

Top 5 PBG POLIMEXMS KGHM TAURONPE LOTOS

Closing 153.50 3.22 192.50 6.70 47.01

% change (week) 10.27 5.23 1.91 1.67 1.10

52-week high 252.00 4.84 198.40 198.40 49.42

52-week low 134.70 2.91 88.50 88.50 28.35

Bottom 5 OPTIMUS PROCAD BMPAG DGA PEKAES

Closing 7.65 1.98 5.42 2.61 7.09

% change (week) -13.07 -11.61 -11.58 -10.92 -10.59

52-week low 1.30 1.94 3.06 2.61 7.09

Bottom 5 GETIN CEZ PZU PGNIG BRE

Closing 13.08 143.10 371.50 4.24 334.10

% change (week) -6.57 -6.35 -4.99 -2.75 -2.31

52-week high 15.29 154.10 411.00 4.40 349.00

52-week low 9.35 118.70 337.50 3.29 222.50

52-week high 9.81 3.98 6.80 8.40 10.39

Currency report

RPP hikes interest rates

Other indices mWIG40

2,910.95 (June 9 close)

sWIG80

12,478.61 (June 9 close)

Change for the week: -1.13%

52-week high: 2,987.72

Change for the week: -1.56%

52-week high: 12,932.00

Change year to June 9: 3.68%

52-week low: 2,361.69

Change year to June 9: 1.87%

52-week low: 10,980.45

Adam Narczewski, X-Trade Brokers Dom Maklerski SA

13,000

3,000 2,900

12,500

2,800 12,000 2,700

NewConnect

56.72 (June 9 close)

WIG-Banki

09.06

08.06

07.06

06.06

03.06

02.06

01.06

31.05

30.05

27.05

26.05

25.05

24.05

23.05

20.05

19.05

18.05

17.05

16.05

11,000

09.06

08.06

07.06

06.06

03.06

02.06

01.06

31.05

30.05

27.05

26.05

25.05

24.05

23.05

20.05

19.05

18.05

17.05

16.05

13.05

2,500

13.05

11,500

2,600

7,017.97 (June 9 close)

Change for the week: -0.65%

52-week high: 64.39

Change for the week: -1.29%

52-week high: 7,387.49

Change year to June 9: -10.55%

52-week low: 54.52

Change year to June 9: 0.80%

52-week low: 5,751.39

58.0

7,500

56.6

7,250

55.2 7,000 53.8

SOURCE: WSE

09.06

08.06

07.06

06.06

03.06

02.06

01.06

31.05

30.05

27.05

26.05

25.05

24.05

23.05

20.05

19.05

18.05

17.05

16.05

6,500

09.06

08.06

07.06

06.06

03.06

02.06

01.06

31.05

30.05

27.05

26.05

25.05

24.05

23.05

20.05

19.05

18.05

17.05

16.05

13.05

51.0

13.05

6,750

52.4

falls, as Fed chief Ben Bernanke reminded investors late on Tuesday of the precarious state of the world’s largest economy. Markets across the board closed lower.

Thursday saw investors jump on any good news they could get, with markets climbing on news of a better-than-expected trade balance for the US and a boost in exports for the month of April.

The WIG and WIG20, though, were two of very few indices not to rise, the cause being a surprise announcement by the Treasury of its intention to sell an additional 10 percent of PZU. Both the WIG and WIG20 fell on the news, with PZU closing nearly 4 percent in the red.

As of 5 pm Friday, the WIG and WIG20 were down more than half a percent. ●

The Polish Monetary Policy Council (RPP) hiked interest rates for the fourth time this year by 25 basis points, to 4.5 percent. The move was expected, and at the press conference following the announcement, Central Bank president Marek Belka stated that the bank would wait with further hikes. At the same time, he said, the RPP will continue to observe the economic situation.

Neither the European Central Bank nor the Bank of England tightened monetary policy, keeping interest rates at 1.25 percent and 0.5 percent respectively.

The RPP’s move helped the local currency, which appreciated throughout the week.

The EUR/PLN dropped from z∏.3.96 to z∏.3.93.

Another factor that con-

tributed to the z∏oty’s appreciation was the Treasury Ministry’s sale of a 10 percent stake of insurer PZU. Half of the z∏.3.2 billion offer was bought by foreign investors, ramping up demand for the z∏oty.

The USD/PLN closed the week just below z∏.2.72, almost the same level at which it started the week. The lack of positive impulses pushed the EUR/USD into a corrective movement. Voices about the increasing American debt are strengthening and rating agencies are starting to consider a possible negative outlook (maybe even a downgrade?) of US Treasury bonds.

But despite that uncertainty, the dollar regained some ground and the EUR/USD declined from $1.4650 all the way to $1.4450. ●

currency rates 3.3969

3.3805 09.06

10.06

3.3741 08.06

SOURCE: NBP

3.3777

3.3532 07.06

3.3913 03.06

0.0976

0.0978 10.06

3.0

06.06

PLN-100JPY

3.5

09.06

0.0972 08.06

0.0970 07.06

06.06

0.0980 03.06

3.2303

3.2336 10.06

0.09

0.0974

PLN-RUB

0.10

09.06

3.2216 08.06

3.2277 07.06

06.06

3.2449 03.06

4.4473

4.4279 10.06

3.0

3.2356

PLN-CHF

3.5

09.06

4.4098 08.06

4.4258 07.06

06.06

4.4617 03.06

2.7040

2.7216 10.06

4

4.4451

PLN-GBP

5

09.06

2.6943 08.06

2.6891 07.06

06.06

2.7315 03.06

3.9550

3.9413 10.06

2.5

2.7071

PLN-USD

3.0

09.06

3.9490 08.06

3.9476 07.06

06.06

3.9598 03.06

3.8

3.9621

PLN-EUR

4.2

THE LIST

JUNE 13-19, 2011

www.wbj.pl

21

Corporate Services

IT Consulting Companies

Rank

Ranked by total number of consultants

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

Number of consultants: Total / Polish / Foreign

Revenue from Total revenue Total revenue IT consulting from consulting in Poland (z∏. mln) (z∏. mln) (z∏. mln)

www.bookoflists.pl

Management consulting services provided

Main activities

Selected clients

Total employees / Year founded

Top local executive / Title

Jan Maciejewicz

1st half of 2010 / 2009 / 2008 / 2007

1

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

384 384 -

60.5 137.5 117.6 105.2

60.5 137.5 117.6 105.2

70.7 208.9 224.5 240.9

Project and program management; strategic transformation of companies and institutions; project portfolio management; organizational management systems development; management of enterprise architecture; innovative strategies

Consulting services and IT solutions

TP; BRE Bank; TU Allianz; Ministry of Finance; Tauron

496 1991

2

Deloitte Al. Jana Paw∏a II 19, 00-854 Warsaw 22 511-0811/22 511-0813 dpoland@deloittece.com www.deloitte.com/pl

298 298 -

WND WND WND WND

157.1 335.6 363.7 314.4

160.6 340.3 371.8 319.6

IT strategies and performance; IT systems review; design and implementation (incl. SAP); business intelligence; IT risk management

Audit; consulting; tax and financial advisory

PZU; Centrum Systemów Informacyjnych Ochrony Zdrowia; BRE Bank; Polsteam; PGNiG

1,100 1990

3

Ernst & Young Business Advisory Sp. z o.o. i Wspólnicy Sp. k.

Rondo ONZ 1, 00-124 Warsaw 22 557-7000/22 557-7001 ernst.young@pl.ey.com www.ey.com/pl

295 294 1

WND 23.0 22.0 25.3

WND 133.7 120.8 121.6

WND 406.1 444.0 389.5

The restructuring of the finance function; risk management; financial risk management; economic and financial expertise; customer relationship management; management of fraud risk

Business consulting; IT consulting

Energa; Agora; Pekao; Ministry of the Interior and Administration; BOÂ

1,309 1990

4

PricewaterhouseCoopers(1) Al. Armii Ludowej 14, 00-638 Warsaw 22 523-4000/22 523-4040 pwcpoland@pl.pwc.com www.pwc.com/pl

272 262 10

WND WND WND WND

WND 146.9 146.7 118.2

WND 389.1 399.7 388.8

Broad business; financial and strategic advisory for clients of the private and public sectors on all stages of company or project development: starting with a business plan and Industry-focused assurance; tax; consulting in investments, through management & advisory services to build public operational strategy development, transaction advisory, to trust and enhance value for crisis consulting (restructing, investigations and economic clients and their stakeholders expertise) and rethinking and reshaping business for development/recovery

PGNiG; TP; GDDKiA; PKN Orlen; PKO BP

1,496 1990

5

Capgemini Polska Sp. z o.o. ul. Pi´kna 18, 00-541 Warsaw 22 464-7000/22 464-7100 office.pl@capgemini.com www.pl.capgemini.com

250 WND WND

WND WND WND WND

WND WND WND WND

WND 392.3 333.2 258.6

Strategies and business transformation consultancy in information technology; CRM, finance, business processes and efficiency; IT projects

WND

WND

3,785 1996

Frank Wagenbauer

6

KPMG ul. Ch∏odna 51, 00-867 Warsaw 22 528-1100/22 528-1009 kpmg@kpmg.pl www.kpmg.pl

173 169 4

5.8 13.6 16.5(2) WND

30.1 70.7 72.3(2) WND

200.3 455.0 440.3(2) WND

Cost and efficiency management; IT risk management; company efficiency improvement; IT system selection, implementation and maintenance; IT system and process requirement inspection; general business advisory

WND

WND

1,290 1990

Andrzej Âcis∏owski

7

WYG International Sp. z o.o. ul. Marynarska 15, 02-674 Warsaw 22 492-7100/22 492-7113 warszawa@wyginternational.pl www.wyginternational.pl

152 152 -

WND 1.2 WND WND

WND 72.4 62.1 WND

WND 100.5 68.6 WND

WND

WND

Centrum Rozwoju Zasobów Ludzkich; Polish Agency for Entreprise Development; Philips Polska; Carrefour Polska; Bumar

247 1999

Andrzej Dziurdzik

8

CGI Information Systems and Management Consultants (Polska) Sp. z o.o. ul. Sienna 39, 00-121 Warsaw 22 526-5700/22 526-5701 info.poland@cgi.com www.cgi.com

150 150 -

WND WND WND WND

WND WND WND WND

WND WND WND WND

Consultancy, integration, implementation services; outsourcing

Development and maintenance of applications; IT consulting

TP; Polkomtel; Netia; Allianz; Bank BPH; BRE Bank; BZ WBK

31,000 1997

Dariusz Gorzeƒ

9

Accenture Sp. z o.o. ul. Sienna 39, 00-121 Warsaw 22 464-0000/22 464-0001 pl.office@accenture.com www.accenture.pl/com

145 WND WND

WND WND WND WND

WND WND WND WND

WND 308.9 367.0 386.4

WND

WND

WND

WND 1993

Jaros∏ow Kroc President

10

SII Sp. z o.o. ul. Pu∏awska 14, 02-512 Warsaw 22 486-3737/22 486-3734 informacja@pl.sii.eu www.sii.eu/pl

60 60 -

6.4 9.2 6.5 2.8

WND WND WND WND

21.4 30.5 21.8 9.3

Project management; IT infrastructure management; CRM; Business Intelligence

Creation and development of software; integration and maintenance of systems; development and maintenance of infrastructure; consulting and analysis; tests

Citi; Gemalto; Volvo; Polkomtel; Pekao

390 2006

Gregoire Nitot

11

DGA SA ul. Towarowa 35, 61-896 Poznaƒ 61 859-5900/61 859-5901 dgasa@dga.com.pl www.dga.pl

38 38 -

WND WND WND WND

22.9 49.6 25.2 41.9

23.7 52.3 27.4 42.6

Strategies for business development; business plans Project management training and consulting; project and financial models; business management outplacement; managing research projects; valuation; privatization; M&A; project management in support of enterprise and human preparation and implementation capital development of comprehensive training and consulting projects; outplacement projects

WND

52 1990

Andrzej G∏owacki

12

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

32 32 -

WND WND WND WND

3.6 5.1 5.6 11.3

3.7 5.6 6.0 11.7

Strategy and financial advisory; organizational improvement; marketing strategy; quality and environment management; project management; human resource development

Polish Agency for Entreprise Development; Energa; TP; Sopra Consulting; Treasury Ministry

45 1985

Jaros∏aw Zysnarski

13

IDS Scheer Polska Sp. z o.o. ul. Pi´kna 18, 00-549 Warsaw 22 318-1900/22 379-5344 office-pl@ids-scheer.com www.ids-scheer.pl

10 10 -

WND WND WND WND

5.1 12.9 19.5 20.3

8.4 20.6 31.6 28.2

Strategic advisory; process advisory; implamantation of SAP, CRM and Workflow

Business process; SAP system; Energa; PGNiG; VOX; Zelmer; Anion; webMethods; Adabas; ARIS; PKP CentraSite; Natural

24 1996

Grzegorz Pindur

14

UBIK Business Consulting Sp. z o.o. ul. Emili Plater 53, 00-113 Warsaw 22 423-7060/22 211-1607 info@ubikbc.pl www.ubikbc.pl

6 5 1

WND WND 0.5 WND

WND WND WND WND

WND WND 0.5 WND

Strategy development; business strategy definition and execution for TMT companies and technology start-ups; innovation management; internet/social media advisory; VC advisory

Asseco; National Capital Fund; Chancellery of the Prime Minister of Poland; RD Projekt; TVN

8 2006

Krzysztof Kowalczyk

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

Footnotes: (1) Financial year July 1-June 30; (2) Financial year July 1 2008-June 30 2009

Management consultancy

WND

President

Dariusz Kraszewski; Marek Metrycki Consulting Department Managing Partner; Managing Partner for Deloitte Poland

Duleep Aluwihare; ¸ukasz Zalicki Ernst & Young Managing Partner for Poland; Ernst & Young Business Consulting Department Managing Partner

Andrew Friars Consulting Department Managing Partner

Director; Board Member

Senior Partner

President

General Manager

President

President

President

President

President

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.

ARTS & CULTURE

The barefoot diva in Poland

A joyride with Roxette

Cesária Évora in concert June 19 Sala Kongresowa, Plac Defilad 1 7 pm

COURTESY OF WIKIMEDIA COMMONS

Roxette in concert June 19 Torwar, ul. ¸azienkowska 6a, 6 pm The Swedish pop-rock duo Roxette was one of the most

popular groups in the 1980s and 1990s. The group has sold 75 million albums. Their concert in Poland will include old hits “It Must Have Been Love” and “Listen to Your

Heart” as well as songs from this year’s album, “Charm School”. ● For tickets log on to www.eventim.pl

Body of work Bodily Choreography June 17-August 15 Zach´ta National Gallery of Art The Bodily Choreography exhibition explores the rela-

tionship between visual arts and the domains of dance and choreography. It will show works which explore the body in its mutual interactions and in relation to the sounds, surroundings and

Known as the “barefoot diva” and pracitioner of the “morna” style of singing, this Cape Verdean star has recorded 14 albums, receiving the Grammy in the World Music category in 2004. Her newest album “Cesária Évora & … ” has already reached platinum status in Poland. ● Tickets from z∏.90 at www.eventim.pl

Summer sounds Rock In Summer Festival 2011 June 21 Amfiteatr Parku Sowiƒskiego, ul. Elekcyjna 17 4:30 pm Gogol Bordello, Happysad and Heroes Get Remembered will all perform as part

spectators that accompany it.

Featured works by Wojciech Bàkowski, Tania Bruguera and Trisha Brown. ● For more information, log on to www.zacheta.art.pl

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

JUNE 13-19, 2011

of the first portion of the Rock In Summer Festival (the second and third editions will be held on July 4 and August 16, respectively).

Gogol Bordello, a Gypsy punk rock band from New York, formed in 1999. Two of their songs “Bublitschki,” and

“Start Wearing Purple” featured in the 2005 film “Everything is Illuminated.” ● Tickets from z∏.99 at www.eventim.pl and www.ticketpro.pl.

For more information, log on to www.rockinsummer.pl

‘Guitar Heaven’ in Warsaw Carlos Santana in concert June 22 Legia Stadium, ul. ¸azienkowska 3 5 pm As part of his “Santana Guitar Heaven 2011” tour, the star will promote his “Guitar Heaven: The Greatest Guitar Classics of All

Time” album which received platinum status two weeks after its release in Poland.

Playing classics from guitar greats such as Led Zeppelin and Jimi Hendrix, Santana will play one night only in Warsaw. ● Tickets from z∏. 135 from www.ticketpro.pl

COURTESY OF WIKIMEDIA COMMONS

www.wbj.pl

COURTESY OF WIKIMEDIA COMMONS

22

Museums, galleries and venues in Warsaw Centre for Contemporary Art at Ujazdowski Castle ul. Jazdów 2 www.csw.art.pl Czarna Gallery ul. Marsza∏kowska 4 www.czarnagaleria.art.pl Galeria 022, DAP, Lufcik ul. Mazowiecka 11a www.owzpap.pl Galeria 65 ul. Bema 65 www.galeria65.com Galeria Appendix 2 (Praga) ul. Bia∏ostocka 9 www.appendix2.com Galeria Asymetria ul. Nowogrodzka 18a www.asymetria.eu

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

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

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

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

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

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

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

Simonis Gallery ul. Burakowska 9 www.simonisgallery.com

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

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

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

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

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

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

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

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

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

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

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

LAST WORD

JUNE 13-19, 2011

www.wbj.pl

23

Tech Eye

“Ode to an Abnormal Spermatozoon” (an emotional piece, composed while the symbol of Mars was painted symbolically on our forehead), the grief was spent. We haven’t told our wife yet, though, fearing that she’ll leave us for a lesschallenged man.

In order to distract her for a while, we plan to pick up a pair of fancy gifts. One is the Numi Toilet by Kohler, which is designed for the poshteriors of the rich and famous.

COURTESY OF NINTENDO

“Give me another baby, or I’ll drool on your computer” – that’s the ultimatum Techeye heard from our awfully wedded wench a while back.

She had a mouth full of slobber and looked meaner than usual. The message was clear.

“But buttercup,” we nevertheless protested. “Look how the first one turned out.” We reminded her of the projectile squidge, the endless nocturnal squealing, the rashes which boldly went where no rash had gone before. We even relived the Great Peanut Butter Snortage of 2009, a practically unspeakable horror.

When reason inevitably failed, we decided to play dead, a strategy which got us through university. Alas, to no avail. The woman had made her mind up, and promptly marched us to get a medical check up.

But last week, following a whirlwind tour of doctors’ offices, we got some rather unsettling news – it looks like Techeye’s reproductive days may be over. That’s right, manopause. The doctor explained it all using precise medical jargon, but we only remember snippets like “whoa,” “mutants” and “join the circus.”

We took the news pretty well, all things considered. After consuming a half bottle of Jameson’s and writing

COURTESY OF KOHLER

A tragedy of microscopic proportions

Indeed, visit www.kohler.com/numi and you’ll be treated to photographs showing a Numi installed in front of a floor-to-ceiling window, presumably so the whole world can watch its owner answer the call of nature.

That, friends, is how you put the “filthy” in filthy rich.

What makes the toilet so special?

Well, it’s got a motion-activated lid and seat, an integrated air dryer, illuminated panels, feet-warming capability and, intriguingly, “advanced bidet function-

ality.” There are even built-in speakers, in case you want to add some bass to your bathroom experience.

Expect to plonk down around $6,400 for Kohler’s post-modern masterpiece. Not exactly cheap, but as they say, no throne is won without great cost.

If that doesn’t distract our wench for long, Techeye has one other gadget in mind to entertain her – the justannounced Wii U. Judging by what’s been revealed of the console, Ninten-

do is still pursuing its philosophies of innovative interaction and gaming for all audiences. And well it should – the original Wii was a major success, at least until it peaked back in 2009.

Since then the Nintendo has played third fiddle to both Sony and Microsoft.

Which is why the company is moving now. Neither of Nintendo’s competitors in the market are willing to talk next-gen; their current consoles still sell pretty well. Meanwhile, the original Wii had considerably weaker hardware than its competitors, the PS3 and the Xbox 360, and could use an upgrade.

What’s been revealed so far is that the Wii U has a ginormous controller with a built-in accelerometer and gyroscope for Wii-style motion games, as well as a camera, microphone, stylus and a 6.2 inch, 16:9 touchscreen. The screen doesn’t support multi-touch, but one finger is better than none. The console itself boasts an IBM CPU, the specs of which haven’t been unveiled yet.

The Wii U is due out in 2012, so it’s a bit early to get excited. But there will be plenty of news about it over the coming months, hopefully enough to keep our wench’s mind off procreation. ●

Ever bought someone a toilet in order to distract them? Let us know: techeye.wbj@gmail.com