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Polish inflation in May approached the highest levels seen in a decade. Is growth at risk?

German ambassador to Poland Rüdiger von Fritsch applauds 20 years of a friendly relations treaty, and says the Nord Stream pipeline is no cause for conflict 8-9

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VOLUME 17, NUMBER 24 • JUNE 20-26, 2011 . z∏.12.50 (VAT 8% included) . ISSN 1233 7889 INDEX-RUCH-332-127

REAL ESTATE

Since 1994 . Poland’s only business weekly in English

Thirsty for something new

COURTESY OF HB REAVIS

Lokale Immobilia

• Warszawa Zachodnia deal inked • National Stadium fixes proposed • Immofinanz’s new investments 14-17

After years of heady growth, Poland’s beer market has hit a dry spell. Will niche and low-cost brands re-start the party?

In this issue News . . . . . . . . . . . . . . . . . . . . . . .2-3 Politics . . . . . . . . . . . . . . . . . . . . . . .4 International . . . . . . . . . . . . . . . . . .5 Industry News . . . . . . . . . . . . . . .6-7 Interview . . . . . . . . . . . . . . . . . . .8-9 Business Environment . . . . . . . . .10 Opinion & Analysis . . . . . . . . . . . .11 Cover Story . . . . . . . . . . . . . . .12-13 Lokale Immobilia . . . . . . . . . .14-17 Polish Export Promotion Program .18 Markets . . . . . . . . . . . . . . . . . . . . .19 The List . . . . . . . . . . . . . . . . . . .20-21 Arts & Culture . . . . . . . . . . . . . . . .22 Last Word . . . . . . . . . . . . . . . . . . . .23

12-13

State Tribunal for Kaczyƒski? Parliamentary investigators say former PM Jaros∏aw Kaczyƒski violated the Constitution and should be put on trial

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SHUTTERSTOCK

Air force won Warsaw and Washington have signed an agreement that will put an American air base in Poland by 2013 3


NEWS

www.wbj.pl

IN THE SPOTLIGHT

Numbers in the News

The Greek debt crisis

5% was the annual rate of inflation in Poland for the month of May - the highest in nearly a decade

The recent strengthening of the Swiss franc has raised concerns among Poles who hold mortgages denominated in the currency, but central bank governor Marek Belka said last week that low interest rates on the loans have helped stymie its rise. As Greek debt worries have risen, so too has the price of the franc against most currencies, including the z∏oty.

The Fiat plant in Tychy could start producing a new model in 2013. It will probably be a small car manufactured on a large scale, Rzeczpospolita reported. Last week, the latest Fiat produced in Tychy, the Lancia Ypsilon, went on sale. This is the fourth Fiat model to be built at the factory. The others are: the Fiat Panda, the Fiat 500 and the Ford Ka. The Panda stands at the top of that list, with almost 100,000 vehicles manufactured at the plant in the first five months of this year.

Organic food popular Poles are becoming increasingly interested in organic agricultural products, reported Rzeczpospolita. Entrepreneurs running shops that sell organic foods expect that over the next decade the market will grow at a rate of 2030% per year. ●

is the depth of a research drillhole that the Polish Oil and Gas Company (PGNiG) has started to drill near Dukla in the Podkarpackie region. The firm is searching for new sources of crude oil and natural gas

z∏.200 million is how much local government officials spent on business travel in 2010

Adam Zdrodowski

On WBJ.pl

Quote of the Week “We as a party will survive another four years of PO rule, though I am not sure if Poland will survive it.” Jaros∏aw Kaczyƒski, head of the Law and Justice (PiS) party, has made it known that he is ready for four more years in opposition.

Figures in focus A mixed production picture April industrial production, percentage change on previous month for selected EU countries 3.4 2.8 1.4

-0.3

-0.1

EU27

UK

1.0 Portugal

1.3

Spain

1.5

Poland

3.5 3.0 2.5 2.0 1.5 1.0 0.5 0.0 -0.5 -1.0 -1.5 -2.0 -2.5 -3.0 -3.5 -4.0

Latvia

Meanwhile, at a joint conference with the President of the European Parliament Jerzy Buzek last week, Polish Prime Minister Donald Tusk said Poland would take part in the Greek financial guarantee mechanism. He stressed that talk was of guarantees to the tune of €250 million (noncash) and that the move would not impact the his country’s public finances. “Right now, there are no indications that the money will have to be used,” Mr Tusk said. He stressed that the guarantees are a sign of European solidarity towards any country that is in trouble. “This is an obligation for every member state, regulated by EU laws, and not a voluntary choice of this or that country,” Mr Tusk said.

Italy

Germany previously opposed a voluntary rollover, insisting instead on making bondholders share the burden of bailing out Greece. However, the ECB, as well as France, dismissed the idea as potentially dangerous to the euro zone’s stability. The GermanFrench agreement was expected to make things easier for the euro zone’s finance ministers ahead of a meeting in Luxembourg last Sunday. According to unofficial estimates, Greece, which was last year granted an aid package of €110 billion, could need as much as €120 billion in additional aid. For a deal on rescuing Greece to come through, however, the country will need to agree to deeper budget cuts. These may prove difficult in the face of mounting public protests in Athens.

Ireland

Following a meeting between German Chancellor Angela Merkel and French President Nicolas Sarkozy in Berlin last Friday, a European Union compromise over financial help for debt-ridden Greece looked within reach. The two leaders spoke in favor of a new aid scheme for the country which would involve the private sector. At a joint press conference, both leaders said they were intent on resolving the Greek debt issue as soon as possible and stressed they were determined to retain and strengthen the euro as the common European currency. The rescue plan, in which the European Central Bank (ECB) is likely to participate, could involve a voluntary rollover of Greek bonds, the politicians said.

Greece

New model at Fiat plant

5.5 km

Germany

The World Bank has granted Poland a z∏.3 billion loan to improve energy efficiency and develop renewable energy sources. The agreement was signed last week with the Ministry of Finance. The funds will help the country reduce the costs of green energy, create more green-energyrelated jobs and reduce air pollution. According to Deputy Finance Minister Jacek Dominik, the loan will allow Poland to fulfill the EU’s stringent environmental regulations, Puls Biznesu reported.

should be invested in offshore wind power by 2030, according to Deputy Prime Minister Waldemar Pawlak, who says investment in wind farms in the Baltic Sea could create up to 8,000 new jobs

SHUTTERSTOCK

Poland gets z∏.3 billion energy loan

€7.5 billion

Denmark

Swiss franc concerns mitigated?

JUNE 20-26, 2011

Bulgaria

2

-0.2 -1.6

-3.5

-3.6 Source: Eurostat

Culture capital Competition is intensifying between Gdaƒsk, Katowice, Lublin, Warsaw and Wroc∏aw. The four cities are battling for the title of European Capital of Culture 2016. The winner will be Poland’s second city (after Kraków in 2000) to benefit from the increased visibility and the opportunity to boost tourism and jobs. Log on to WBJ.pl to see what the cities are preparing.

Company index Adgar Investments &

AP Szczepaniak

DATELINE

20

Bank Zachodni WBK ..10 Immofinanz ................15

JULY 4 POLISH-GERMAN ECONOMIC SUMMIT

Event: Deputy Prime Minister Waldemar Pawlak is among many speakers who will discuss economic ties between the two neighbors Location: Warsaw University of Technology

Heineken ....................13 Polimex-Mostostal ....18

studio..........................17 Hines Polska ..............17 Polish State Railways ..14 Apax..............................6 HSBC Polska..............18 Polkomtel ....................6 Bank Millennium ......14 Huta Stalowa Wola ......7

June/July JUNE

Farutex ......................17 New World Resource ..6

Development ..............17 Gant Development ....14 Nordea Bank ..............10 Alma Market ..............12 Goodman Group ........17 Panattoni Europe ......14 Alpine-HydrobudowaGrupa ˚ywiec ............12 PGE ..............................6 PBG ............................16 Grycan ..........................7 Amrest........................12 HB Reavis ..................14 PKN Orlen ....................6

BNP Paribas ..............16 Inpro ..........................17

PricewaterhouseCoopers ..6

Bogdanka ....................6 JSW ..............................3 Rule Financial ............17

AMERICA’S ROUTE 66

Event: 235th Anniversary of the Independence of the United States of America. Location: US ambassador’s residence, Mokotów, Warsaw (Invitation only)

14

Polpharma ................18

BASTILLE DAY

Event: Organized by CCIFP annual event to celebrate Bastille Day. Location: Endorfina Restaurant, Warsaw

Correction: An article entitled “Growth in Poland’s IT outsourcing sector” published in the June 13, 2011 issue of WBJ mentions Fujitsu-Siemens as one of the key customers in the Polish IT outsourcing market. The company has been operating as “Fujitsu” since April 1, 2009.

BRE Bank ....................3 Karimpol Group ........15 SAB Miller ..................13 Browary Polskie ........13 KGHM ..........................6 SCOT ..........................17 Carlsberg Polska ......12 Koral ............................7 Solaris Bus & Coach 18 Carte d’Or ....................7 Kredens ......................12 Telenor ........................6 China Overseas Kristensen Group ......14 TNK-BP ........................9 Engineering Group ......3 Kury∏owicz & Chopard......................23 Associates ..................15 Unilever ........................7 COVEC ..........................7 LiuGong ........................7 Vodafone ......................6 Cyfrowy Polsat ............6 Lotos ............................9 Warsaw Stock DnB NOR......................6 Makarony Polskie ......12 Exchange......................3 DnB NORD Poland ......6 Monday W´glokoks ....................6 Dom Development ....17 Development ..............16 Eko-Park ....................15 NAI Estate Fellows ....17 Zanox ............................6 Eurodruk-Kraków ......17 Nestle ..........................7 Zdrojowa Invest..........14


NEWS

JUNE 20-26, 2011

www.wbj.pl

Defense

Poland to get permanent US air base from 2013 The two countries signed an agreement last week that would see the detachment of US troops on Polish soil

Polish troops will be trained to use F-16s and C-130 transport planes craft,” Defense Minister Bogdan Klich was quoted by Reuters as saying. “From 2013 we plan the regular and periodic presence of aircraft and the training of pilots four times a year,” Mr Klich told reporters after the signing ceremony with the US Ambassador to Poland, Lee Feinstein.

Poland currently hosts rotating unarmed US Patriot missile batteries, which WikiLeaks revealed an angry Polish official had referred to as “potted plants.” When the deal for stationing the Patriot missiles in Poland was brokered in 2008, the Polish side had understood that the missiles would be armed.

Despite warming relations between Warsaw and Moscow in recent years, Poland sees a permanent US presence on its soil as important to bolster its security. Poland will also host a portion of the US’s planned missile-defense system from 2018, a program that the Czech Republic dropped out of this

week (see article, p. 5). Moscow has said the US’s involvement in the region amounts to a “new arms race” and has repeatedly threatened to station Iskander ballistic missiles in the Russian exclave of Kaliningrad, which borders Poland, if the missile-defense program were to go through. Andrew Kureth

Road construction

COVEC ditched as A2 highway contractor

COURTESY OF WIKIMEDIA COMMONS

Poland’s roads authority will apply for z∏.741 million in compensation from the Chinese firm The China Overseas Engineering Group (COVEC) will not return as contractor on Poland’s A2 highway, Poland’s General Directorate for National Roads and Motorways (GDDKiA) announced last week. Work on the two sections of the A2 that COVEC had been charged with building ground to a halt last month after sub-contractors went on strike following the Chinese firm’s failure to make payments on time. The Chinese state-owned firm countered that GDDKiA had not given it money on time – a claim the roads authority rejects. COVEC won the tender for the two A2 sections after making a remarkably low bid that amounted to less than 50 percent of the z∏.2.8 billion the government had budgeted for the project. The Chinese firm later tried to renegotiate the contract, but the Polish govern-

Treasury: JSW price appropriate

Poland’s Treasury Minister is weighing in on the debate around the maximum price of coalmining giant JSW. Aleksander Grad told Parkiet the issue share price of z∏.146 is appropriate for the coal mining group’s upcoming initial public offer. “The rest will be decided by the market. Watching its reaction, I’d say we chose an appropriate price point,” he said.

COURTESY OF US AIR FORCE

Poland and the US signed a memorandum of understanding in Warsaw last week that paves the way for a permanent US Air Force detachment on Polish soil starting in 2013. The deal, which was endorsed by US President Barack Obama during his trip to Poland in late May, means Poland has achieved a key goal of stationing US troops on its territory as it continues to cast a wary eye towards a resurgent Russia. The Americans would train Polish troops in the use of F-16 fighter jets and C-130 transport planes. “This memorandum of understanding means that by the end of 2012 we will have in Poland a detachment allowing for the permanent rotation of American military aircraft, both combat and transport air-

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Construction could begin again in July after work ground to a halt last month ment rejected the proposition, suggesting such a deal would open the door for other infrastructure contractors to initiate similar renegotiation tactics. COVEC had asked for more money than previously agreed, citing high raw materials costs.

Following GDDKiA’s decision to end the contract, the organization’s deputy head, Andrzej Maciejewski, announced that it would apply for compensation from the Chinese firm amounting to z∏.741 million. GDDKiA now has to find

a new contractor to take over construction of the highway sections. It has promised that work will start again in July, but still does not know if there will be one or two contractors. The authority has two strategies to find a new builder: through a tender or

through negotiations. Dr Micha∏ Beim, a transport expert at the Sobieski Institute think tank, says that there could be problems with finding a new contractor in such a short period of time, since Public Procurement Office procedures require adherence to time-consuming competition rules. However, Mr Beim added that if GDDKiA is indeed able to find someone before the end of June, work on the A2 could re-start as early as July. Prime Minister Donald Tusk had previously promised that work on the road would start next month. COVEC beat several European firms to the A2 contract in September 2009. It was contracted to build 50 km of the A2 motorway which, when completed, will link Warsaw with Berlin. The A2 deal was the first contract COVEC had won in the European Union, and was expected to be a flagship project that would show it could build roads successfully for European countries. Barbara Gedek

Summer rally for WSE? Investors in companies listed on the Warsaw Stock Exchange are set to see strong returns over the rest of the summer, according to a recent report by BRE Bank. The bank wrote that it sees no major disruption to financial markets over coming weeks, meaning the stage will be set for a significant upswing. The authors of the report particularly recommend that customers buy construction and property development stocks. They also said retail stocks would be a good buy.

Poland attractive to foreign investors Poland’s Center of Economic Information (COIG) reported that in the first quarter of 2011 851 companies with foreign capital (102 more than in Q1 2010 and 148 more than in Q1 2009) registered in Poland. That is almost 300 each month. Every fourth active business in Poland is foreign owned, according to COIG. With 340 companies last year, the Germans lead foreign investors in the number of businesses registered in Poland. They are followed by the British (263 companies) and the Czechs (77). ●


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POLITICS

www.wbj.pl

JUNE 20-26, 2011

National politics

Former opposition politicians swelling PO’s ranks With parliamentary elections set for this autumn, the ruling Civic Platform party is winning over new converts from its rival parties

Strategic thinking?

EAST NEWS

Last week some leading figures from both sides of the political spectrum switched their allegiance to Civic Platform (PO), declaring their intention to run on that party’s election lists in the October parliamentary elections. Perhaps the most controversial about-face was that of Joanna Kluzik-Rostkowska. The former Poland Comes First (PJN) leader turned up at PO’s June 11 party convention in Gdaƒsk, confirming previous media rumors that she was decamping to the ruling party. “I am with you today because I believed and believe that Poles want peace, not war, that Poles want love, not hate. In other words, I am with you because we think alike,” Ms Kluzik-Rostkowska told a crowd of enthusiastic PO supporters. A year ago, Ms KluzikRostkowska was a member of PO’s biggest rival, Law and

decided to join ranks with Prime Minister Donald Tusk’s party at the PO convention. In his speech, Mr Rosati said that PO was the only party in Poland capable of preventing PiS from regaining power and appealed to other politicians to join PO, “because [it] has the recipe for building a better Poland.” Józef Pinior, another wellknown leftist politician and intellectual, also announced he was becoming a PO member. The media is now awash with rumors of other leftist politicians also in talks with the ruling party.

Ms Kluzik-Rostkowska is now in PM Tusk’s camp Justice (PiS), and was in charge of PiS leader Jaros∏aw Kaczyƒski’s presidential campaign. Mr Kaczyƒski, who lost the presidential elections after capturing over 46 percent of the vote, later expelled Ms

Kluzik-Rostkowska from the party. She went on to form PJN with some other former PiS politicians. Two of her now-former PJN colleagues, Jan Filip Libicki and Jacek Tomczak, are also said to currently be in negotiations to

join PO. On the other side of the political spectrum, Dariusz Rosati, a leftist politician who served as foreign minister in the years 1995-1997 when the Democratic Left Alliance (SLD) was in power, also

According to Sergiusz Trzeciak, a political analyst at Collegium Civitas, this latest wave of defections to PO should be seen as part of a long-term strategy rather than a sudden move designed to attract more voters before the elections. “I think PO is engaging in a long-term strategy of building an eclectic party and this did not start today. PO has been wooing leftist politicians for a long time now. What’s new is that they are now also trying to attract rightist politicians from

other parties,” said Mr Trzeciak. PO’s recent moves will bring it gains among voters who will see it as a party that listens to many different points of view, he added. However, a recent poll indicated that Poles are not fans of political transfers. In a June survey conducted by SMG/KRC, an overwhelming 65 percent of respondents said political transfers were unacceptable in general. Moreover, 39 percent of Poles said it was “very bad” that Ms KluzikRostkowska had switched to PO. Twenty-six percent said it was “rather bad,” 21 percent thought it was rather good and only two percent said it was very good. Despite Poles’ dislike of political conversions, they might only become more common as politics worldwide is evolving towards greater pragmatism. “Everywhere parties are getting less ideological and more pragmatic,” said Mr Trzeciak. “The downside of course is that political programs are becoming more muddled and vague, which is frustrating to voters,” he added. Remi Adekoya

Barbara Blida case

Former PM Kaczyƒski could be brought before State Tribunal A parliamentary report suggests he acted unconstitutionally in relation to the death of Barbara Blida

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A preliminary parliamentary report says that Law and Justice (PiS) leader and former Prime Minister Jaros∏aw Kaczyƒski should be brought before the State Tribunal for breaching the Polish constitution in relation to the death of former Democratic Left Alliance (SLD) politician and construction minister, Barbara Blida. Ms Blida allegedly shot herself in the chest on April 25, 2007, as Internal Security Agency (ABW) agents were searching her home. She was about to be arrested on charges of bribery and corruption. The incident took place when the PiS-led government, in which Jaros∏aw Kaczyƒski was Prime Minister between July 2006 and October 2007, was in power. Prior to being elected, Law and Justice had campaigned on an anti-corruption platform. The preliminary report was furnished by the commission –

headed by SLD MP Ryszard Kalisz – established to investigate the circumstances surrounding Ms Blida’s death. According to the report, Jaros∏aw Kaczyƒski organized informal gatherings during which ABW agents disclosed to him details of the investigation in a case related to an alleged “coal mafia.” The investigations were partly focused on Ms Blida.

‘Unconstitutional power’ In the report, the commission also said that former Justice Minister Zbigniew Ziobro should be brought before the State Tribunal for providing misleading information to the Sejm concerning the investigation into Ms Blida’s death. The authors of the parliamentary commission’s report claim that the former prime minister gave Zbigniew Ziobro unconstitutional power over other ministers when it came to investigating crimes of the highest order, and that his government had pursued a policy of “eliminating” certain social groups, such as the one Barbara Blida represented. “Barbara Blida would be alive if the PiS state had not

existed, if a pathological mechanism from the top down did not exist. We were governed by people who believed that a ‘clique’ existed, and that if they could expose this clique then the nation would love them,” the report reads.

‘Packing for Siberia’ Both Mr Kaczyƒski and Mr Ziobro have rejected the report’s conclusions. “I am already packing my things for Siberia, because I believe that Tusk and Putin have chosen a place for me there,” Mr Kaczyƒski said after the report’s findings were announced. Mr Ziobro said that he had not taken the allegations seriously and that he couldn’t find anything related to the Blida incident to feel guilty about. Polish MPs have a month to suggest corrections to the report. On July 19, the committee will gather to accept or reject it. However, to bring the two PiS politicians to the State Tribunal, MPs would have to make a motion and collect 115 MPs’ signatures. Thereafter, 276 MPs would have to vote in favor of the motion. Katarzyna Piasecka


INTERNATIONAL

JUNE 20-26, 2011

www.wbj.pl

Missile defense shield

Czechs pull out of US defense program

The Czech Republic has decided not to participate in the United States’ planned missile defense program out of frustration about its reduced role in the project. Under President George W. Bush’s missile-defense system plans, 10 ground-based interceptors were due to be placed in Poland and a radar facility sited in the Czech Republic. Outraged at the plan, Russia said it would place its own missiles close to Poland if the scheme came to fruition. In September 2009 President Obama scrapped the previous administration’s plans before unveiling an updated program with an unspecified

role for the Czech Republic. Two months later, it offered the Czech Republic the possibility of hosting a separate early warning system which would help detect missile threats to NATO countries. The Czech government had invested a lot of political capital in the Bush-era project, which was unpopular with much of the country’s electorate. The Czech Defense Ministry said in a statement that the latest role envisaged for the country had become redundant because NATO had decided in 2010 to introduce an information sharing system for all alliance members. “In this context we thanked [them] for the previous ... offer and noted that in light of further developments it will not really be needed,” Czech Defense Minister Alexandr Vondra said after meeting US Deputy Defense Secretary William Lynn III last week.

COURTESY OF WIKIMEDIA COMMONS

Their role had been reduced too far, the Czech defense minister said last week

The Czech government had been a staunch defender of the previous US administration’s missile-defense plans Republic can join the alliance’s system in the future,” he said. During his visit to Poland in May, US President Barack Obama reaffirmed that Poland would host SM-3 interceptors

Nevertheless, Mr Vondra has not shut the door entirely on cooperation in the missile defense system. “We will look for other options [as to] how the Czech

from 2018 under the new US system. Russia has been invited to participate in the scheme, but Moscow wants a bigger say in deployment issues. Gareth Price

Belarus

Journalist trial further strains relations Journalist and activist Andrzej Poczobut saw his trial open last week in Grodno, Belarus, though on Friday the hearing was postponed to June 23. Mr Poczobut is a correspondent in Belarus for Polish daily Gazeta Wyborcza, as well as an activist in the Union of Poles in Belarus, which represents the Polish minority in Belarus but is not recognized by Belarusian authorities. He was arrested on April 6 and then detained for allegedly insulting and defaming Belarusian President Alexan-

der Lukashenko in articles he published in Gazeta Wyborcza, on opposition web portal Belarus Partisan and on his personal blog. If he is found guilty, he could face up to four years in prison. On his blog, Mr Poczobut wrote on June 10 that he did not expect to be acquitted but that, regardless of the verdict, he would take the news calmly. “Those who deal with the case today are ashamed: otherwise the process would be open,” he wrote. The trial in Grodno is not open to the public. The Polish consul was denied access, as was Mr Poczobut’s wife and family.

COURTESY OF AMNESTY INTERNATIONAL

Amnesty International has labeled Mr Poczobut a prisoner of conscience

“I do not believe in an acquittal. I expect [he will get] four years in prison. As Andrzej said: do not listen to

optimists, it will be four years,” his wife was quoted by TVP Info as saying. Amnesty International has recently declared Andrzej Poczobut a prisoner of conscience and called for his immediate release. Polish Foreign Minister Rados∏aw Sikorski, who has been a vocal critic of Mr Lukashenko’s regime, said in a statement that, “we cannot allow Belarus’ authorities to hold Andrzej Poczobut hostage of the Polish-Belarusian political relations.” Meanwhile, Polish Prime Minister Donald Tusk said at a press conference that Poland would use all of the tools at its disposal, including

the Eastern Partnership and the Presidency of the EU Council, in order to ensure basic human rights in Belarus are respected. Under pressure from an increasingly serious economic crisis, Mr Lukashenko has hardened his line of late. At a press conference held last Friday, he repeated that in his view, journalists share the blame for the country’s current economic crisis. “They are trying to destabilize Belarus, using different methods including through this trash bin which is called the internet,” the state-owned Belta news agency quoted him as saying on its website. Alice Trudelle

E. coli crisis

Poland unhappy with EU E. coli compensation package

COURTESY OF WIKIMEDIA COMMONS

Several EU countries feel €210 million is not enough

Lettuce was among the vegetables dumped by consumers and now covered by the EU aid package

Poland, France, Slovakia and Spain all voted against a €210 million compensation package for farmers that was passed by EU member states last week. The European Commission will pay producers for cucumbers, tomatoes, lettuce, zucchini, and sweet peppers that have been withdrawn from the market since May 26. The agreement foresees a payout of a maximum of 50 percent of the usual producer price in June, although the figures will be finalized on July 22

after member states confirm the amount to be covered. “This is an important signal for fresh vegetable growers because I was very keen to show that Europe can react quickly when it needs to,” agriculture commissioner Dacian Ciolos said in a statement. “I am optimistic that consumption will pick up very quickly,” he added Reacting to the deal, Polish Agriculture Minister Marek Sawicki said Poland, France, Spain and Slovakia had voted against the proposals because the amount of compensation offered was insufficient in relation to the

losses incurred, Polska The Times reported. “The compensation was not divided up nationally, which largely limits the possibility to use the funds in countries where agricultural producers are weaker,” Minister Sawicki said. The news comes after Russia agreed to lift its ban on EU vegetables on the condition that Brussels can guarantee the products’ origin. Russia, a major importer of European and Polish vegetables, imposed the ban three weeks ago, after the outbreak of E. coli was reported. David Ingham

5

President’s Economic Award In a ceremony presenting the President’s Economic Award, Solaris Bus & Coach, Fakro Group, Novol and solar producer Watt won in the categories of “Innovation,” “Global Market Presence,” “Corporate Governance and Corporate Social Responsibility” and “Green Economy,” respectively. President Bronis∏aw Komorowski personally handed out the awards at the Poznaƒ International Fair. The President’s Economic Award, first held in 1998, promotes the most promising Polish companies and research institutions in the sphere of market production.

PO strengthens position A recent poll suggests Donald Tusk’s Civic Platform (PO) party is enjoying a massive lead in the run-up to this fall’s parliamentary election. Its lead on the main opposition party, Law and Justice (PiS), jumped from seven to 22 percentage points over a one-month period, according to the latest survey from GfK Polonia, as quoted by daily Rzeczpospolita. According to the survey, 49% of polled respondents would vote for Prime Minister Tusk’s party. A month ago, 42% percent would have voted for PO, and two weeks ago, 45% would have. If the latest poll proves accurate and translates into votes come election time, Mr Tusk’s PO would win some 251 seats in the new Sejm, allowing it to rule with a parliamentary majority.

Kaczyƒski not optimistic about election Jaros∏aw Kaczyƒski, head of the main opposition party, Law and Justice, plans to run a “hard” campaign ahead of this year’s parliamentary elections. At the same time, however, he admits that this might not be enough to secure a victory. “We as a party will survive another four years of Civic Platform’s rule, though I am not sure if Poland will,” he was quoted by wyborcza.pl as saying. ●


INDUSTRY NEWS

www.wbj.pl

NWR eyes Bogdanka, again New World Resource’s CFO Marek Jelinek was quoted as saying that his firm is once again interested in buying Polish stock-listed coal producer Bogdanka. “We are interested in Poland of course, [because] there is the future of deep coal mining in the region,” Czech daily Hospodarske Noviny quoted Mr Jelinek as saying.

Higher dividend for KGHM The shareholders of state-owned copper miner KGHM have voted to approve the Polish Treasury’s proposal to pay a dividend of z∏.14.9 per share. Shareholders approved a motion to pay out a z∏.2.98 billion dividend, double the figure proposed by the firm’s management. ●

JUNE 20-26, 2011

Privatization

Solorz-˚ak in front in Polkomtel race The media mogul is now in pole position to acquire Poland’s second-largest telecom Polish tycoon Zygmunt Solorz-˚ak is the favorite to land Polkomtel, after he offered the highest bid for the telecommunications firm, both Bloomberg and Reuters reported last week. Private equity firm Apax and Norway’s Telenor also participated in the auction to purchase Poland’s secondlargest mobile phone operator. Polkomtel, the owner of the Plus brand, has nearly 14 million telephone and internet users. The company, which is valued at z∏.18 billion, was put up for sale by shareholders PKN Orlen, mining firm KGHM, Vodafone, utility PGE and coal miner W´glokoks. Analysts have long seen Mr Solorz-˚ak, owner of

COURTESY OF JUDYTA PAPP/WIKIMEDIA COMMONS

6

The Polish tycoon reportedly sold a stake in Cyfrowy Polsat last week to finance the purchase of Polkomtel

Contact: Lech Gniady lg@pnplaw.pl

The Government Plenipotentiary for Equal Treatment has prepared a draft project for an internal anti-mobbing policy to be used by employers. The scheme defines the rules under which employees can submit complaints about incidents of mobbing. The draft provides more detail regarding the way in which a commission assessing the complaint would work, and it also introduces the rule of confidentiality, as well as legal methods for protecting employees’ personal data. The scheme will be voluntary and it will not be included in the labor code nor any other legal act. However, it is worth remembering that pursuant to the provisions of the Labor Code, each employer is obliged to counteract mobbing. Thus, employers should consider whether it would not be beneficial for them to use the anti-mobbing policy prepared by the government.

Further changes in the responsibility of management board members? Rules were due to come into force on July 1, 2011 concerning the limitation of administrative barriers for citizens and entrepreneurs. The act in question was to amend the Commercial Companies Code in terms of penal responsibility of management board members. However, on June 9, the Sejm accepted a new act that annuls the changes in the abovementioned scope before they even come into force. The new act transfers the provisions on responsibility of man-

Thomas Kolasa

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The government prepares universal scheme for fighting mobbing

Cyfrowy Polsat and one of Poland’s richest men, as a front runner in the auction. Analysts expect that if successful, Mr Solorz-˚ak will use Polkomtel to expand cellular and television services along with creating a 4G LTE network in Poland. For the transaction to go through, all of the shareholding groups must agree on the terms of the deal. This means the sale, which would be one of the largest telecommunications transactions to take place in Europe in recent years, could face problems if one or more shareholders oppose the move. On Friday, Cyfrowy Polsat announced Mr Solorz-˚ak would sell part of his stake in the company, presumably to finance his Polkomtel bid. Polkomtel’s owners plan to complete the deal by the end of June, according to Jerzy Podsiad∏o, CEO of W´glokoks.

agement board members from the Commercial Companies Code to the Penalty Code. However, since it cannot be said for sure whether the president will sign the new act and, if he does, whether the act will be published before July 1, 2011, a question arises: What will management board members’ responsibility look like after July 1, 2011? As of today, thanks to our legislative authorities, it seems to be impossible to answer this question.

No cuts in administration – for now On June 14, 2011 the Constitutional Tribunal decided that provisions of the act on the reduction of employment in national budget units and some other units within the public finance sector for 2011-2013 were inconsistent with the Constitution in the scope in which they concerned civil servants. According to the Constitutional Tribunal “excessive freedom within the scope of establishing criteria of the planned dismissals is connected with the lack of unambiguous settlement on whether the basic problem of the government administration lies in the high number of its officials and the related need to reduce employment, or in the improper allocation of officials within the administration framework.” The Tribunal also decided that further employment cuts would require prior actions on the part of the legislative authorities. The only way to execute the aims stipulated in the act in question would be through the adoption of a new act which would not have the defects listed by the Tribunal. ●

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Online advertising boom The Polish market for online advertising is growing faster than any other Spending on online advertising in Poland is, and will remain for the foreseeable future, the engine of growth for the entire advertising market in Poland, according to PricewaterhouseCoopers’ Global Entertainment & Media Outlook 2011-2015. Recent research by IAB Europe found that in 2010 online advertising accounted for 17.5 percent of the entire advertising market in Poland and amounted to z∏.1.58 billion, up from z∏.1.37 billion a year earlier. PwC expects the trend to continue and estimates that the compound annual growth rate (CAGR) from this year

until 2015 will reach 18 percent. By then, the online advertising market in Poland will be worth $1.17 billion. The boom in the online advertising sector compares to a decline in revenue for print advertising for a fourth consecutive year in 2011, which PwC forecasts will be followed by a sluggish two percent CAGR until 2015, when it will total $198 million. Poland’s TV ad market, while remaining the largest advertising segment, is expected to grow at an average of 6.6 percent through 2015, peaking at nine percent in 2012, when Poland will host the Euro soccer championships. For Germany-based eadvertising firm Zanox, Poland is its fastest growing market in Europe. “We simply see a huge interest coming from both interna-

tional companies and website owners,” said Jakub Maj, the firm’s sales director for Central and Eastern Europe. “For some of our major clients and websites Poland has become the number-five market in Europe and they believe it is developing the fastest. I can confirm that for our firm, Poland is the fastest-developing market in Europe,” he added. According to Mr Maj, Zanox sees “a few dozen percent increase” annually in the number of transactions it achieves on the Polish market. Zanox’s business model, performance marketing (Zanox and website owners get paid only when certain results, usually sales, are achieved with a particular advertisement), is the fastest growing within the online advertising market, Mr Alice Trudelle Maj said.

DnB NOR may sell Polish arm Norwegian banking giant DnB NOR could sell its Polish branch, DnB NORD Poland, in order to concentrate on its other investments. The bank, which earns 80 percent of its revenues in Norway, sees its share of the Polish market as modest and believes any change in its current position would put too much of a demand on resources. “Our conclusion is that expansion in this country may be outside our current strategic

framework … a sale of our operations in Poland is one possible alternative,” the company said in a statement last week. The lender wants to consolidate its position in the Baltic States, and believes offloading its Polish arm will help it achieve this. The bank announced that it anticipates strong profits by 2015 on the back of Norway’s economic recovery following the financial crisis. DnB NOR became the sole

owner of DnB NORD Poland six months ago. According to the Polish bank, its assets were worth nearly z∏.10 billion at the end of last year. There are currently over 3,000 staff serving 170 branches and 900,000 customers in DnB NORD’s European network. In addition to Poland and Norway, the bank also operates in Lithuania, Latvia, and Estonia. The group’s assets total €11 billion. Thomas Kolasa


INDUSTRY NEWS

JUNE 20-26, 2011

Construction privatization

Unions at HSW could block Chinese takeover Due to events that have faint echoes of the troubles which led to the termination of Chinese road-builder COVEC’s A2 contract, Chinese excavator-maker LiuGong could be forced to pull out of a major business transaction in Poland. In a deal valued at z∏.250 million, LiuGong is in the process of purchasing the construction equipment arm of Polish state-owned construction and military equipment manufacturer Huta Stalowa Wola (HSW), to help it penetrate the European market. A preliminary agreement was signed by HSW and the Chinese investor on January 18, and a conditional sale agreement is due to be signed on June 29. Nevertheless, LiuGong will first need to reach an agreement with HSW workers’ unions, which are making strong demands. Last week the two sides reached a stalemate in negotiations, putting the deal in jeopardy. According to Dziennik Gazeta Prawna, the workers are demanding 5 percent pay raises and 5-year employment guarantees. The Chinese in-

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Will the deal go the same way as COVEC’s A2 contract?

LiuGong wants to buy the excavator-maker for a reported z∏.250 million vestor is reportedly only willing to offer 3 percent raises and 3year employment guarantees. Any agreement related to workers’ demands will not be concluded as part of the official privatization deal, but Henryk Szostak, head of the Solidarity trade union in HSW, told the newspaper that the deal would only be able to go ahead if talks with trade unions are finalized this week. He did not specify the actions the unions would take if their demands were not met. LiuGong itself will not purchase HSW if it fails to reach a deal with unions, the paper reported, citing unnamed sources. The Chinese compa-

ny reportedly does not want to have to deal with strikes and protests. The sources said the Chinese company would build its own manufacturing facility in Poland if a deal is not brokered with unions. LiuGong itself could not be reached for comment. Unions and representatives of the Chinese firm were due to meet on Tuesday to flesh out details of a new employment package. The Polish state currently controls over 80 percent of HSW, which employs about 2,000 people. The civilian construction equipment arm of the company employs 1,270 people. Gareth Price

Ice cream

Flavor of the month With summer just beginning ice cream producers in Poland are hoping for hot weather to boost sales in a sector which has continued to grow despite difficult economic times. The Polish market is currently divided up among major players Unilever (36 percent), Koral (21 percent), Nestle (8 percent) and Grycan (7.5 percent), but now American brand MiniMelts is looking to increase its share with an innovative new approach. MiniMelts plans to offer ice cream in three- to four-millimeter balls for a sales price of z∏.5 per 80 gram bag, the equivalent of three traditional scoops. The company will sell the new product at 200 stands and coffee shops across the country. In addition, later this year, it plans to introduce 150 ice cream machines to distribute MiniMelts products in cinemas and cafes.

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An American brand plans to introduce new products in an attempt to boost its market share

Poland’s ice cream sector is worth z∏.1.13 billion Poles consume 4.2 liters of ice cream annually and in a sector worth z∏.1.13 billion, competition is inevitably fierce: MiniMelts is not the only producer with big plans. Carte d’Or, part of Unilever, wants to expand its current crop of stores to 80 by 2015, while traditional Polish brand Grycan will have 100 ice cream parlors, in Poland by the end of 2011. But while firms battle to increase profits, one issue remains – a drop in sales during

the winter months. According to figures from AC Nielson, 52.3 percent of Polish consumers buy family-sized ice cream to take home. However, Poles are less likely to buy impulsively, particularly during winter. Producers hope that offering a wider variety of new products could be one solution to the problem. Globally, the market is predicted to be worth $54 billion by 2013, an increase of 20.3 percent on figures from 2008. David Ingham

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7


8

INTERVIEW

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Italy: ‘no’ to nuclear In a referendum held last week, Italy voted overwhelmingly in favor of a proposal to abandon plans to re-launch a nuclear power program. Of the 57 % who participated, 97 % voted against the proposals. In the same referendum, Italians also overturned plans to privatize Italy’s water supply and gave top government officials partial immunity from prosecution. The result is seen as a defeat for under-fire Prime Minister Silvio Berlusconi’s government, which suffered an important drop in support in recent local elections.

A healthy EU presidency? Chefs are calling on the heads of the Polish government to feed European Union guests, who will flock to Poland during its upcoming presidency of the Council of the European Union Parliament, a diet of fruit and vegetables. Politicians are usually served highcalorie sweet food during summit meetings, but a growing number of chefs are appealing to have these replaced with carrots, cucumbers, apples, strawberries and radishes, reported Rzeczpospolita. They are looking for Poland to lead by example, even as the country struggles, just like its European neighbors do, with obesity, diabetes and a number of other dietrelated problems. ●

JUNE 20-26, 2011

Polish-German relations

A vital partnership German ambassador to Poland, Rüdiger von Fritsch, talks to WBJ about relations between the two neighbors and issues related to history, immigration and the Nord Stream gas pipeline Ewa Boniecka: June 17, 2011 was the 20th anniversary of the signing of the GermanPolish Treaty on Good Neighborship and Friendly Cooperation. How do you assess the development of relations between the two countries? Rüdiger von Fritsch: Since the collapse of communism, Poland and Germany have developed closer relations than at any other time in their history. For the first time people from both countries live in unity, peace and freedom as equal members of the European Union and NATO. Our cultural and civilizational bonds have grown. Yet the difficult and painful chapters of our history remain living obligations for us both. Today, our relations are marked by friendship, common values and interests, as well as by a common responsibility towards a united Europe. The German-Polish Treaty on Good Neighborship and Friendly Cooperation created a stable foundation for our future joint endeavors and common actions. On this basis, we were able to develop good neighborly political, economic, and cultural relations of a hitherto unknown quality. And we have discovered something fascinating. As the noise and the dust of past controversies has settled, we have realized how similar we are in so many respects. This con-

cerns mentality, culture, and the way we look at things and try to solve problems. Take, for example, the economic and financial crisis: both Poland and Germany support the introduction of major structural reforms intended to keep Europe competitive. With around 26 percent of Polish exports going to the German market, it’s clear that Poland is economically dependent on trade with Germany. How can we continue to develop this trade partnership given the current economic situation affecting the EU? It is true, approximately 26 percent of Polish exports are shipped to Germany. At the same time, the importance of the Polish market for German foreign trade is growing steadily and I expect our trade to maintain its dynamic development in the years to come. What is interesting to note is that the financial crisis has not reduced trade between Poland and Germany. On the contrary, both our economies have continued to grow relatively strongly, have good framework conditions and boast highly productive and competitive industrial sectors. Poland and Germany have both made good progress in restructuring their industries. Both countries continue to produce highly competitive products and I am therefore very optimistic about the

development of bilateral trade between our two countries. How does German investment in Poland look and in which particular fields is it concentrated? More than 6,000 German companies have invested in Poland, creating more than 500,000 jobs. The combined value of their foreign direct investments exceeds €20 billion. I can hardly imagine that there is better proof of the confidence which exists in the opportunities provided by the Polish market and in Poland in general. Two-thirds of German exports to Poland are from those industries which are traditionally strong in Germany: machinery and equipment, electronic products, cars, various commodities and chemical products. How important is Poland for the German export market? Poland is our most important trading partner in Central and Eastern Europe. Our trade with Poland even exceeds our trade with Russia. On a global scale, Poland ranks 10th among Germany’s trade partners. Germany and Poland are close partners in the EU. What is your country expecting from Poland’s Presidency of the Council of the European Union, which starts on July 1? First of all, let’s not forget that the nature of the rotating EU presidency has changed since the Lisbon Treaty came into force. It is now more and more the position of an honest broker. Yet Poland is one of the

most important member states in the EU and has seen its influence increase since it joined. Therefore, we are hoping for important results from its presidency of the EU Council, and we are confident that we will see them. We share the objectives outlined by the Polish government and will do everything possible to support the Polish presidency and to make sure it is a success. Poland has published its focus points for the country’s presidency of the EU Council and these cover most of the challenges facing Europe in the coming years. The Common Foreign and Security Policy is essential in determining Europe’s role as a global actor. The internal market shapes the daily lives of European citizens and makes vital contributions to strengthening the EU’s economic performance. The questions of energy and energy security are crucial. In order to decrease its dependency on fossil fuels, Europe must diversify its energy

sources, as well as improve energy efficiency and increase investments in renewable energy technologies. Migration policy will also take on an important role because it will be needed to address Europe’s demographic challenges and to prevent the creation of a “Fortress Europe.” Despite our close relations, there are some concerns on the Polish side connected with the position of Poles in Germany. How do you view this situation? Let me first of all emphasize that the integration of the many Poles who have come to Germany over the years is a true success story. As integration doesn’t mean assimilation, it is important that they too, as with every migrant group, have the chance to maintain, wherever desired, cultural and other traditions – including the teaching of their mother tongue. Polish migrants’ needs and interests are different to those of other

Bilateral trade • Germany is Poland’s top trading partner • January to April 2011, Polish exports to Germany were worth z∏.43 million (€10.9 million), 26.0 percent of overall exports, and imports from Germany were worth z∏.38.5 million (€9.66 million), 22.8 percent of all imports • Balance of trade: -z∏.4.5 million

Poles in Germany • Germany opened its borders to Polish workers on May 1, 2011 • The second-largest Polish minority community in the world is in Germany, after the United States SOURCES: THE GERMAN EMBASSY IN WARSAW, WBJ


INTERVIEW

JUNE 20-26, 2011

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Norway to give Poland €578

“I fail to see any problems regarding the Nord Stream gas pipeline”

A possible future problem for Polish-German relations concerns the Nord Stream gas pipeline and, in particular, the question of access for larger ships to the port of ÂwinoujÊcie. What is your opinion on this issue?

I fail to see any problems. The maximum draft of liquefied natural gas [LNG] tankers is 12 meters. The Nord Stream pipeline allows access for ships with a draft of up to 13.5 meters. The natural depth of the sea beyond ÂwinoujÊcie’s harbor, over a distance of many nautical miles, is much lower than 12 meters. So [leaving the Nord Stream pipeline issue to one side], LNG tankers could only enter if very substantial and permanent digging work was to be undertaken. And still the pipeline would not be in the way. Therefore, the European Commission has confirmed that there is no indication that shipping traffic going to and from ÂwinoujÊcie would be impeded by the construction of the pipeline. Couldn’t the pipeline be dug deeper already? The answer is no, as it would be illegal. According to European environmental protection rules, supported by Poland as well as by Germany, you are only allowed to damage the sea floor if there is a concrete reason for doing so. Germany has recently opened its labor market to Polish workers. What do you think the consequences will be for both countries? It has been too short a time to present figures about migration after May 1, 2011, but there are no signs that there will be a wave of migration similar to the one to the UK after 2004. For sure the complete opening of the German labor market has the potential to create a win-win situation for both our economies and it

Norway is earmarking around €578 million for social and environmental programs in Poland. Polish Prime Minister Donald Tusk signed an agreement to this effect with his Norwegian counterpart, Jens Stoltenberg, in Gdaƒsk last week. Around half of the money will go towards environmentally oriented programs, with the rest set to go to the Polish health care and judicial systems.

PM open to nuclear referendum

EAST NEWS

Germans, but there certainly is a heritage that may serve as a bridge between our two people. The same holds true for the German minority in Poland. The huge potential of this shared heritage may not always have been used as well as it could have been, but in life there is always room for improvement. In making improvements we should focus on the real needs expressed by those concerned: for example, the need for language schools. So let’s take a pragmatic approach and not dwell on discussions about the character of two very different groups. Poles in Germany can be compared to Poles or Germans who have migrated to the US. The German minority in Poland can be compared to the Polish minority which has for a long time lived in Lithuania. I am very glad that we have now created a tool to discuss the interests of the respective groups in our countries – namely the Round Table Talks. Those involved in the talks are making good progress and presented results and recommendations on the occasion of the 20th anniversary of the German-Polish Treaty on Good Neighborship and Friendly Cooperation. This treaty was, and still is, a milestone in German-Polish relations.

Ambassador von Fritsch thinks Polish-German relations have never been better will bring people closer together. The labor ministries in Poland and Germany are working together closely to provide information for migrants, since a full awareness of rights and duties is the key to making migration a success story. How do you view our two countries’ cooperation in promoting the Eastern Partnership and the EU’s Eastern policy in general? Both Poland and Germany have the greatest interest in forging a successful eastern policy and specifically in advancing and deepening the Eastern Partnership. We have seen that both countries agree

Rüdiger Freiherr von Fritsch • Ambassador to Poland since 2010 • Born in 1953 in Siegen (North RhineWestphalia), married, with five children. • Studied history and German in Erlangen and Bonn.

Intelligence Service • Previously also worked in the German embassies in Warsaw (1986) and Nairobi, Kenya (1989).

• 2007-2010 headed the department of economy and development for the Ministry of Foreign Affairs

• In 2009 he published “Die Sache mit Tom – Eine Flucht in Deutschland” about his efforts to help his cousin and two friends to escape East Germany in 1974

• 2004-2007 Deputy Chief of the Federal

SOURCES: THE GERMAN EMBASSY IN WARSAW, WBJ

A guide to Polish business and industry

Przewodnik po polskim biznesie i gospodarce

The 2011 edition of Book of Lists is now available!

to a large extent on their analysis and assessment of the situation. The Eastern Partnership serves as proof of the special relations that bind the EU and its Eastern European partners together. It also aims at deepening and strengthening relations between the European Union and eastern states in order to accelerate association and deepen economic integration. Furthermore, it is aimed at supporting political, social and economic reforms in the region. We would also like to hold an intensified dialogue with Russia, with the purpose of developing the [EU’s] Partnership for Modernization. The first trilateral meeting of the foreign ministers of Poland, Russia and Germany in Kaliningrad on May 22 was a very promising step. A second Eastern Partnership summit will take place in Warsaw in September of this year and will further emphasize the importance of developing closer relations. Do you believe that our difficult historical past continues to have an influence on relations between our two states?

Let me quote Polish President Bronis∏aw Komorowski: “Poland and Germany have a difficult common history. It will always be with us. But today we can build on the positive common experiences of 1989 and the years since.” I am very glad that in September of this year an important exhibition will be organized in Berlin, called “Side by Side: 1,000 years of art and history.” It will bring together a unique collection of exhibits which testify to the vitality and multifaceted nature of Polish-German relations, contacts and inspirations over 10 centuries. Today, our relations are as good as they have ever been. For the 20th anniversary of the German-Polish Treaty on Good Neighborship and Friendly Cooperation, the German Embassy, together with the GoetheInstitut and numerous partners, has organized a festival called “Neighbors 2.0.” This festival will show how lively and strong the connections are among younger German and Polish people and how much more we can do to expand them. ●

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Calls by the Democratic Left Alliance (SLD) to organize a referendum on the construction of nuclear power plants in Poland have been greeted positively by Prime Minister Donald Tusk. “If investments in nuclear energy cause visible public controversy, I am open to a referendum on the construction of a nuclear power plant in Poland,” Mr Tusk said last week.

Lotos sale process moves ahead The Polish Treasury Ministry has picked four candidates out of all investors interested in purchasing a 53 percent stake in state-owned refiner, Lotos, Rzeczpospolita reported. The ministry decided not to reveal the names of the potential investors, who will now progress to a more advanced stage of negotiations. However, according to unofficial sources cited by the newspaper, one of them is TNK-BP, the thirdlargest fuel company in Russia. The deadline for submitting binding offers is November 16. ●


BUSINESS ENVIRONMENT

www.wbj.pl

Ballooning numbers Consumer price inflation, percentage y/y change 6

5

4

3

01 1 Ma

y2

11

20 11

20 ril Ap

ry rua Feb

Ma rch

11 20

11 20 Jan

ua

ry

r2 mb e De ce

No

vem be

r2

01 0

01 0

2

Source: National Bank of Poland

he would focus more on factors such as wage growth and industrial output in the coming months, than on inflation figures. Taking that into account, last week’s labor market figures for May were another

reason to doubt that the RPP will hike rates in July. Employment growth was lower than expected, at 3.6 percent yearon-year, while wage growth fell to 4.1 percent, from 5.9 percent in April. Gareth Price

Immigration

High import and export Poles moving to growth surprise analysts the Netherlands, the second quarter, BZ WBK analysts expect the European Union’s growing economic problems to impact negatively on Polish exports. “In the upcoming months we expect the momentum of exports to remain substantially below that observed in Q1, due to weakening economic activity in the EU,” the bank’s analysts wrote. At the end of June, the National Bank of Poland is due to release revised figures for historical balance of payments data. Previous data had contained a number of errors and omissions. Gareth Price

Mind the gap Polish balance of trade (millions of euro) 500

0

-500

-1,000

-1,500

2010

-2,000

2011

April

March

February

January

-2,500 December

The level of trade carried out by Poland in April surprised the market on the upside, while the country’s overall trade deficit narrowed to a level roughly in line with market expectations. The combined value of exports rose by 11.7 percent year-on-year to €11.3 billion in April, according to National Bank of Poland data. The market had expected a figure of €10.6 billion. Imports, meanwhile, grew by 16.2 percent y/y to reach €11.99 billion, versus market expectations of €11.2 billion. Bank Zachodni WBK analysts wrote in a research note that Easter holiday spending may have contributed significantly to the strong y/y growth seen in April. “It is worth noting that April’s upside surprise occurred after quite a weak performance of foreign trade turnover in March (4.7 percent y/y export growth; 7.2 percent import growth). A shift of trade transactions may have occurred between these two months, potentially due to Easter,” the note read. Poland’s current account balance narrowed, in line with expectations, to -€959 million for April, from -€1.37 billion the month before. In year-on-year

terms, the deficit widened significantly from -€385 million in April 2010. Poland’s economy is structurally geared towards imports, as these are used to create and meet domestic demand. Experts say a trade deficit can, in Poland’s case, be seen as a positive, as it is largely funded by capital inflows – such as EU structural funds and FDI – rather than outflows. The percentage of the cumulative 12-month current account deficit funded by the inflow of long-term capital improved from 70 percent to 74 percent. In terms of the outlook for

November

Meanwhile, the country’s trade deficit narrowed month-on-month

October

In the next few years, around 150 to 200 new open-air markets will be created in Poland with the help of government and EU funding, reports Dziennik Gazeta Prawna. Another 200 to 300 already-existing sites will be modernized. The Ministry of Agriculture will pitch in to create 80 new markets and modernize 200, in a project that will cost approximately z∏.200 million. Funding will come mainly from EU subsidies. For example, a new open-air market in Grodzisk Mazowiecki will cost z∏.10 million, of which only 25 percent will be paid by the gmina, Andrzej Mucha, treasurer at Grodzisk Mazowiecki’s town hall, told DGP. ●

The RPP has raised borrowing costs four times this year, by a total of 100 basis points. Mr Pawlak’s comments do not, however, necessarily put him directly at odds with the central bank, which itself has given strong signals that it will try to resist raising rates in the medium term. The head of the central bank, Marek Belka, said after the RPP’s decision to raise rates in June that the current interest rate hike cycle was coming to an end, although he did leave the door open for further hikes if the chances of inflation returning to the 2.5 percent target showed signs of deteriorating. Just last week, central banker Andrzej Bratkowski said that the RPP may resist raising rates this year in order to avoid putting the brakes on economic expansion. He said

Trade

September

Bazaar boom ahead for Poland

Polish inflation leaped upwards in May to close to its highest level in a decade, but it is still not clear if Poland’s monetary policy makers will raise interest rates when they convene in July. In month-on-month terms, inflation rose by 0.6 percent compared to expectations of 0.4 percent. On the year, inflation rose to 5 percent – higher by 0.5 percentage points than the April figure. The market had expected y/y growth of around 4.6 percent. Annika Lindblad, an economist at Nordea Bank wrote in an email that, “food and fuel prices [have continued] to put upward pressure on consumer prices, although also core inflation has been on the rise.”

Like many analysts, Ms Lindblad thinks the latest inflation data has increased pressure on the rate-setting Monetary Policy Council (RPP) of the National Bank of Poland to raise interest rates at its next meeting. “The significant upward push in inflation in May thus increases the risk of further rate hikes by the central bank, with the July meeting next in focus,” Ms Lindblad said. Nevertheless, the issue of fighting inflation has become increasingly politicized of late, with Economy Minister Waldemar Pawlak publicly accusing the central bank of over-reacting against the threat of inflation and putting economic growth at risk. In an interview with the Financial Times, he said further hikes could endanger growth, which itself is forecast at around 4 percent for 2011.

July

In a survey conducted by Millward Brown SMG/KRC for ING Bank Âlàski, 75% of surveyed Poles declared that they have savings in various forms. That is a significant improvement from early 2008, when less than half of those surveyed said the same thing. Some 18% said that their savings grow regularly, month by month, while only 8% said they never save anything. Most of the respondents said they felt financially secure when they had an amount roughly equal to triple their average monthly income set aside. Nowadays, Poles usually save money in bank accounts, bank deposits and savings accounts.

There is a fine line between curbing inflation and strangling economic growth

August

Poles save more

Polish inflation gets political

June

The Ministry of Finance may post a budget surplus this month due to the z∏.6.2 billion it will receive from the Polish central bank’s (NBP) 2010 profit. The government expects to get the funds within two weeks after approving the NBP’s annual report. Last year the bank posted a z∏.6.5 billion profit and must now transfer 95% of this to the government. As a result, the 2011 H1 budget deficit would account for 47% of the annual plan, Marcin Mrowiec, chief economist at Bank Pekao SA said.

JUNE 20-26, 2011

The economy

May

June budget surplus

April

10

Source: National Bank of Poland

not to Germany Despite Germany opening its borders, better wages and fewer restrictions are attracting more Polish workers to the Netherlands Contrary to expectations, the opening of Germany’s border to Polish workers on May 1 has not led to mass migration. At the same time, Polish migration to the Netherlands is surging. According to the Polish Confederation of Private Employers Lewiatan (PKPP Lewiatan) and the Polish HR Forum, since mid-May only half the expected number of Poles have gone to Germany for work. The government had previously predicted an estimated 100,000 would leave by the end of the year. The Polish embassy in the Hague now estimates that there may be as many as 170,000 Polish citizens working in the Netherlands, compared to barely 20,000 in 2007. This year the numbers might exceed 200,000. “The most important factor is that Poles can earn more in the Netherlands than in Germany,” Agnieszka Zieliƒska, head of the Polish HR Forum, said. This rise in migration is

also due to the fact that the Netherlands has fewer formal requirements, particularly with regard to language. “In Germany you have to speak German, but in the Netherlands it is enough if you can just communicate in English,” Ms Zieliƒska said. “One in six Poles in the Netherlands is thinking of staying and most of those already speak the language,” she added. About 80 percent of the Netherlands’ foreign workers are from Poland, the Polish HR Forum calculates, with signs and information in many workplaces now produced in Polish to help facilitate communication with the country’s foreign employees. The group predicts that by 2014 the Netherlands will need 800,000 foreign workers to keep the economy growing at its current rate, suggesting migration from Poland could continue. According to Central Statistical Office (GUS) data, the number of jobs in Polish companies shrunk by 400 in May, a month when employment usually grows rapidly due to increases in seasonal jobs. The average real wage in Poland also fell 0.9 percent from a year ago. Thomas Kolasa, David Ingham


OPINION & ANALYSIS

JUNE 20-26, 2011

www.wbj.pl

11

Moscow gets ahead on missile defense Marko Papic geographically it is behind the Tatra and Carpathian Mountains and has

first time that Beijing has really publicly weighed in on the issue. As a member of the SCO, the statement does have China’s signature on it, which means that Russia did manage to get China to publicly comment on an issue that thus far has pitted Moscow and Washington against one another over an issue of European security. A far more important statement came from Prague, where the Czech government decided to back out of supporting and hosting part of the US ballistic missile defense (BMD) system in Europe. Prague has always had a little more room to maneuver when it came to the BMD system. It is not positioned on the border of a resurgent Russia, nor with any of its buffer states such as Ukraine and Belarus. Furthermore,

tem had for the Czech Republic. Unlike Poland and Romania, which had missile components of the new BMD system, Prague was left with an early warning system, which really constituted nothing more than a room full of computers. Therefore, the Czech government didn’t really see any reason to put political capital behind a project that was A, unpopular and B, didn’t really have any large significance. The BMD system from the perspective of the central Europeans is really about bringing the United States into the region, to offer greater security against Russian resurgence. The fact that Czech Republic said it doesn’t really need any such reassurance will be fuel for Moscow when it negotiates both with Western COURTESY OF STRATFOR

T

wo events that took place last Wednesday will please the Kremlin very much. Both had to do with the United States ballistic missile defense plans for central Europe. And both give Moscow more diplomatic fuel in its competition with the United States over the future of ballistic missile defense in Europe. First, the Shanghai Corporation Organization, the SCO, issued a joint statement during its meeting in Kazakhstan regarding the Western plans for a missile defense system. The statement said that any system that would threaten international security is opposed by the organization. Second, the Czech government also announced that it would oppose any sort of a US plan that was of minimal nature, essentially pulling Prague out of the US plans for a ballistic missile defense system in central Europe. The negative statement about the ballistic missile defense from the SCO is not surprising. Since it is essentially led by Russia, and Russia has in the past attempted to portray the SCO as some sort of a counter weight to NATO, although it is nothing of the sort at this moment. But what is somewhat interesting about the statement is that it is the

historically been able to play different empires off of one another. As such, there was never unity within the Czech population behind the BMD efforts. What really irked Prague was the minimal role that the revamped BMD sys-

Europe and with other central European countries. It will also be able to use the Czech decision as a sign that there are Central European coun-

“Prague was left with an early warning system, which really constituted nothing more than a room full of computers” tries that feel little or no threat from either some sort of Middle East intercontinental ballistic strike or, more importantly, from a resurgent Russia. Furthermore, Moscow will be able to use the SCO statement to show that it’s not just Russia that has problems with the US plans for BMD in Europe – it will be able to demonstrate that China does too. ● Marko Papic is senior Eurasia analyst at STRATFOR This edited version of “Moscow Gets Ahead on Missile Defense” is reprinted with permission of STRATFOR

Civic Platform mixes political ideologies for Europe Joanna Wóycicka

N

ext week sees the start of Poland’s EU presidency. I managed to see a computer simulation of the light show and fireworks which will light up Warsaw’s sky

“Mr Tusk has sought the support of the two most influential left-wing politicians in Poland” on July 1. It should be an impressive spectacle, although the right-wing opposition is turning its nose up and criticizing: “Why will lights surround a symbol of communist enslavement that real patriots hate?”

Stalin’s wedding cake in Polish and EU colors That symbol is Warsaw’s Palace of Culture and Science, which has been made the backdrop for the light show. This is a monumental Stalinist building, a “gift” from Joseph Stalin in the

1950s to the “heroic Polish nation.” Arguments still rage in Poland as to whether this controversial edifice in the very heart of the capital should be pulled down or left standing. As if to provoke the far right, it is Stalin’s “wedding cake” (as it is often referred to) which will be surrounded by fantastic fireworks, which in the EU and Polish national colors will seem to raise the building, itself resembling a rocket on its launchpad, straight into the sky. The several-minute-long illuminations will be accompanied by monumental music by the avant-garde Polish composer Wojciech Kilar, who draws inspiration from both folk music and church music. Add to all this the fact that the light show will be put on by a German company, and it seems the start of the Polish presidency has become a cultural and ideological mix. The conservative government has taken a deep bow towards the left.

Has the prime minister turned left? Some Polish commentators ask whether Prime Minister Tusk has

indeed turned to the left, when discussing a series of recent nods the ruling conservative Civic Platform (PO) has made towards their erstwhile opponents. The commentators usually add that the accession to PO of two popular left-wing politicians – Bartosz Arlukowicz and Dariusz Rosati – is more than anything an attempt to win over part of the left-leaning electorate before this fall’s parliamentary elections. Moreover, for the first time, Prime Minister Tusk categorically stated “I don’t have the slightest tolerance for homophobes, especially in my party,” and made it clear that he will support the drafting of legislation which will allow civil partnerships to be registered. Just two months ago nobody would have thought that such an unambiguous statement would ever pass Mr Tusk’s lips. But the prime minister has also reached out simultaneously to moderate, although less popular, right-wing politicians who are ready to become Civic Platform candidates in the upcoming elections. This is also a unique ideological mix.

A political shake-up It is worth looking at Mr Tusk’s decision in a broader perspective. The recent reshuffles have great significance for the Polish presidency and also for Poland’s future international policy. The Polish government has prepared very thoroughly for the EU presidency, for many months ministries worked on detailed programs, which by the beginning of June were complete to the last detail. In the salons of Europe, Mr Tusk has always been a master of negotiation, of making alliances and compromises. He will work admirably to both increase the effectiveness of the Polish presidency and to look after Poland’s national interests, but he will have to seek allies, above all from the socialists, who are the second-strongest grouping (behind the conservatives to which PO belongs) in the European Parliament. Therefore, Mr Tusk has sought the support of the two most influential left-wing politicians in Poland – W∏odzimierz Cimoszewicz and former Foreign Minister Dariusz Rosati.

It is a simple calculation: Mr Rosati will run for parliament in the first position on a PO list. If he ends up in the Sejm (the lower house of parliament), he will become head of the foreign affairs committee. He will play an important role after Jerzy Buzek, who comes from the PO camp, ends his tenure as President of the European Parliament. The presidency will then be assumed by a left-wing deputy (recently it has been said that this would be Martin Schulz, a German) and Mr Rosati, who comes from the ranks of the left, will be the partner for discussions with the social democrats. If this scenario plays out, then certainly it will not be a chance mix, but a carefully prepared and balanced political play. ● Joanna Wóycicka is the former head of the foreign sections of the ˚ycie Warszawy and ˚ycie newspapers and the former head of the foreign department at the Polish Press Agency (PAP). j.woycicka@hotmail.com

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COVER STORY

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Makarony Polskie sales up The revenues of pasta producer Makarony Polskie amounted to z∏.28.5 million in May, up 130% from the corresponding period in 2010. The company’s sales in the pasta segment increased by 2%, while sales of ready meals, jams, sauces and canned food rocketed by some 44%. After the first five months of 2011, Makarony Polskie’s revenues have reached z∏.98 million, compared to z∏.62 million a year earlier.

Carlsberg cooperates with AmRest Carlsberg Polska has begun cooperation with AmRest, which means Carlsberg and Okocim beer brands will now be served at Pizza Hut, Burger King and KFC restaurants in Poland. With a 15.5% market share, Carlsberg Polska is currently the thirdlargest player on the Polish beer market. The company’s development plans involve strengthening this position and increasing market share.

Kredens eyes foreign markets This summer, Alma Market, a company which owns Kredens, a Kraków-based manufacturer of food, is expected to sign a contract to open its first stores abroad – most likely in London and Brussels. “ The Chinese are also interested in introducing our brand on their market, but we are only at the beginning of talks with them,” said Ewa Lewek, CEO of Kredens. The company’s financial results for Q1, 2011 are 222 percent better than for the same period of last year, as the firm recorded revenues of z∏.15.5 million. ●

JUNE 20-26, 2011

Beer industry

Beating the hangover

Brendan Melck

While Poland’s beer market is currently experiencing a post-boom hangover, the growing strength of niche and economy brands is starting to bring it some relief Throughout most of the postcommunist period, Poland has experienced a boom in the sale of beer, making the brewing industry one of its biggest success stories. Per capita consumption of beer in Poland has now risen to well above the European Union average, and major investment has been put into increasing production capacity. Three multinational companies have established themselves as the top beer producers in Poland: SAB Miller, which controls Kompania Piwowarska; Heineken, which controls Grupa ˚ywiec, and Carlsberg, which controls Okocim. Nevertheless, since the start of 2009 beer sales have been affected by a combination of factors that have led to stagnation and even decline on the market. An increase in excise tax in 2009, and decreased consumer demand in the wake of the economic slowdown, have combined with saturation after years of strong growth to squeeze the market. The volume of beer sold in 2009 amounted to 32.20 million hectolitres, compared to 35.80 million the year before, according to data from the Brewing Industry Employers in Poland (ZPPP).

Bucking the trend The crisis on the market has forced producers to go looking for new avenues of growth. One area that has seen expansion during the period is the niche beer segment. Niche beers are most commonly produced by small breweries, which provide a variety of

alternatives to mass-market brands. Popular varieties include wheat beer and unpasteurised beer – the latter of which is known for its distinctive natural flavour. Among the most recognised small breweries are Browar Amber, from Bielkówko, near Gdaƒsk, Per∏a – Browary Lubelskie, from Lublin, and Browar Ciechan, from Ciechanów. At present revenues made by these types of breweries only account for around 4 percent of the total value of the beer market in Poland, according to Handel-net.pl, an FMCG information portal. Nevertheless, the Polish beer market was worth z∏.13.2 billion in the period February 2010 – January 2011 according to market research group Nielsen, meaning niche brewers still turn over a considerable amount of money. Moreover, the niche market segment has seen double-digit growth in the past two to three years, while the market as a whole has been in decline.

Beer giants react It is hardly surprising then that the big three beer companies have introduced their own niche products on to the market. Carlsberg Polska launched a number of these products in 2009, including wheat beer and several unpasteurised beers. In May of this year, Grupa ˚ywiec launched unpasteurised versions of three of its local beer brands – Specjal, Królewskie and Le˝ajsk. “The niche and unpasteurised beer market is grow-

SHUTTERSTOCK

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Premium beers have recently made a big splash on the Polish market ing very dynamically,” Marek Skr´tny, marketing director of Browar Amber, told WBJ. “The reaction of large producers to this market trend does not surprise me.” Nevertheless, traditional, local beers brewed in small volumes are not the only ones to see growth on the Polish market. Dawid Piekarz, communications manager at ZPPP, said that sales of premium beers have also risen in recent years. “Apart from the growth in the popularity of niche beers, there has been a massive increase in the sale of beers in the premium and super-premium segments of the market,” “We can assume that an important motivating factor for consumers today is seeking out new tastes, and the styles

associated with these brands. In general, the beer market is becoming richer and more varied in terms of choice, and people are becoming more keen to find their particular niche and taste among the

range of products available,” he added. Sales of Desperados, a beer flavoured with tequila, which retails at a high price relative to conventional beer, grew 40 percent year-on-year in the first

The morning after Sold volume of beer in Poland, in millions of hectolitres 40 35 35.02 30

35.80

32.34

32.20

30.30 25 20 15 10 5 0

2005

2006

2007

2008

Investing in Poland 2011 is available now!

presents

We have also launched a new website for investors! For investment news and analysis, visit: www.investinginpoland.wbj.pl

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

2009 Source: ZPPP


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JUNE 20-26, 2011

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Legal Eye

A cold, legal one

COURTESY OF WIKIMEDIA COMMONS

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

Per∏a – Browary Lubelskie, producer of the Per∏a brand beer, is one of the best-recognized small breweries in Poland quarter of 2011. Moreover, total flavoured beer sales have grown much faster than the market average in the past few years. The big three Polish beer companies are now hoping that an increased focus on more expensive beer will help the industry return to growth. In addition, these main players hope to profit by selling their big-named, internationally renowned brands – such as SAB Miller’s Grolsch and Heineken’s own-label brand – as premium beers in Poland.

A change in consumer attitudes Despite the strategy changes made by the major beer firms, some experts say those smaller breweries which have managed to survive and prosper through the last few years will continue to do so. “In recent years, big companies pushed smaller, local breweries to the edge of the market,” said Tomasz Miziƒski of specialist beer website Piweczko.net. “The worst time for small brewers was 2004-5, when many went bankrupt and those which survived did so mainly because their products are really very good, and people valued

“There is currently a trend – I would even say a boom – for anything local or small” them. And from 2007, Poles started to move away from the conventional tastes – mass-produced beer did not satisfy them any more, and they were willing to experiment.” Changes in the attitudes of Polish consumers means there is likely to be room on the market for both niche products produced by small breweries, as well as for those now being put on the market by big-name producers. ZPPP’s Dawid Piekarz thinks that despite the fact that “Poland’s beer market has become saturated and highly competitive, and large producers and small local breweries are competing with each other,” small breweries will be able to survive in the face of competition from the big players. “There is currently a trend – I would even say a boom – for anything local or small, so I don’t think there is any need to be concerned about smaller breweries,” he added. Browar Amber’s Mr Skr´tny also stressed that small

breweries and big producers compete on somewhat different markets. “Interest in beer from small, regional breweries is growing, and this market segment will continue to grow,” Mr Skr´tny said. “Small breweries like ours do not compete with big companies, because we are dealing with a completely different category of product,” he added.

Economical growth While premium and niche beer producers are carving out new markets for themselves, producers who sell at the other end of the price spectrum are also seeing strong growth. In the first quarter of this year, the total volume of beer sold in Poland grew by 0.7 percent year-on-year, thanks in significant part to an increase in sales of low cost, “economy” beer brands, according to ZPPP. Economy beer is defined as that which does not exceed z∏.2.3 zloty for 0.5 litres, according to ZPPP. The

A brief history of alcohol in Poland When most foreigners think of Poland and alcohol, it is vodka which comes quickest to their minds. Somewhat surprisingly however, vodka has not always been Poles’ main tipple of choice. Poland’s first king, Boles∏aw I Chrobry, who ruled from 992 to 1025, was a known ‘piwosz’ or ‘beer lover,’ while High Duke of Poland Leszek I the White, who died in 1227, is famously reported to have told the Pope that he would not participate in the Crusades because there

was so little beer in the Holy Land. All this had changed by 1980. According to figures from the World Health Organization, over 80 percent of all alcohol consumed in Poland in that year was in the form of vodka. Following the fall of communism in 1989, beer, however, quickly established itself as the drink of choice for most Poles. According to market research organisation CBOS, wine is now the second favourite alcoholic drink, having pushed vodka into third place. ●

importance of economy brands to the market is also connected to strong growth in the number of discount retail outlets which have opened in Poland. Changes to Polish tax law have also had an impact. “The rise in sales of economy beer brands is the result of – among other things – the increase in excise duty in 2009, and the increase in value added tax in 2011,” Mr Piekarz said. “Many consumers are not willing to pay more for beer when prices rise, so they simply change the brand which they buy to a cheaper one, or cut down on consumption. Meanwhile, growing sales of beers from discount stores, where beer is heavily promoted, brings new customers into those stores, leading to an increase in their revenues.”

A premium future The growing strength of the economy beer sector is, however, matched by that of the premium and niche sectors, which have benefited from changed consumer attitudes. “In the past few years, there has been a big increase in Poles’ awareness, and we’re more and more likely now to search for something exceptional on the shelves of shops these days,” Mr Miziƒski said. “More and more often, we choose beers from small breweries because of their quality, even though they are more expensive than those produced by big companies,” he added. So despite the recent decline on the market, companies are starting to find growth in both the premium and economy sectors. So it seems that many Polish beer producers, and particularly the best local brewers, can toast a bright future. ●

For me, eating lunch outside says summer. Better yet, dining while enjoying a refreshing beverage (such as a nice, cold beer) on a Friday afternoon makes for a pleasant end to a work week. Before you decide to indulge, however, you should take a look at the rules on consumption of alcohol. Poland’s Law on Sobriety and Combating Alcoholism places various limitations on even moderate enjoyment of alcohol.

Public consumption If your contact with the great outdoors is confined to urban spaces, your choices of where to enjoy that cold beer are limited. The Sobriety Law enumerates places in which alcohol, even low-percentage alcohol such as beer, may not be consumed. While a glance around the streets of Warsaw may have led you to believe otherwise, the Sobriety Law makes it illegal to sell, serve and consume alcohol: • in schools and dormitories, • at the work-place or a company canteen, • during mass gatherings, and • on public transportation or related sites. Despite all those classic beer advertising images involving outdoorsy scenes, you also are not allowed to drink beer while walking along public streets, squares or parks. The exception to this rule is special areas set aside for consumption at a point of sale, such as a little café in the park. Fortunately, apartment balconies and your own back yard are not on the banned list. In addition, the Sobriety Law contains some special restrictions for larger events. When it comes to outdoor concerts and other similar events, lighter beers (of less than 4.5 percent alcohol content), may be sold, served and consumed, as long as an appropriate permit has been obtained, and then only in special areas. Also, the local gmina council can decide that other places or sites will be dry, either temporarily or permanently. Fortunately, this rule is used sparingly in Warsaw, but tends to be dusted off for papal visits.

Consequences In addition to the possible health consequences from drinking too much beer, public consumption can have other costs. Drinking beer in those forbidden public places may be punished by a fine of up to z∏.5,000. Bringing your own bottle to a special area in which drinking is allowed in a public place could also subject you to the same fine. This fine is just for drinking in the wrong place. Public intoxication is another matter. People who are drunk can be escorted by the police to the local drunk tank. The privilege of admittance could cost you up to z∏.250. Of course, you also shouldn’t get behind the wheel after indulging. Poland’s threshold on legal intoxication is a blood alcohol content of 0.5 per mile. Depending on your weight and a number of other factors, it is possible to reach this threshold after only one glass of beer. As with other places in the world, the punishment for drunk driving can be harsh in Poland. Finally, you have to be 18 to buy or consume alcoholic beverages.

Workplace rules As much as I may be tempted to enjoy a cold beer with lunch, it’s better to wait until happy hour. The Sobriety Law requires that workplace supervisors refuse to allow employees to work if there is a justifiable suspicion that they have been drinking, in general, or have consumed alcohol during work hours. Additionally, under the Labor Code, one of the grounds for immediate termination with cause is showing up to work drunk. While you may not drink at work, the Sobriety Law permits alcohol to be served at official government functions, within limits. A separate regulation addresses the circumstances under which the consumption of a small amount of alcoholic beverages at official functions is allowed. The two main conditions are that a foreigner must be present and that it is either an international custom to drink on such occasions or diplomatic courtesy requires it. ●


Immofinanz Group and Karimpol Group have traded stakes in three office buildings

The National Stadium’s contractor has presented its plan to fix the facility’s defectszx

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LOKALE IMMOBILIA

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

JUNE 20-26, 2011, LI 16/24

Commercial investment

Warszawa Zachodnia agreement signed

New Panattoni built-to-suit Developer Panattoni Europe is working on a built-to-suit project for automotive sector company Faurecia. The facility will be located in Gorzów Wielkopolski, Lubuskie voivodship, within the KostrzynS∏ubice Special Economic Zone, and will comprise 17,600 sqm of production, office and technical space. Completion is scheduled for the end of this year. ●

In this issue Warszawa Zachodnia deal . . . .14 Baltic Park project . . . . . . . . . . .14 Immofinanz buys and sells . . .15 Last Eko-Park phase . . . . . . . . .15 Property-related stocks . . . . . .15 Piątkowska 116 offices . . . . . .16 National Stadium . . . . . . . . . . . .16 Inpro in Mikołajki . . . . . . . . . . . .17 Oaza cornerstone . . . . . . . . . . .17 Goodman opens warehouse . .17

The office complex should be completed by 2017 board of PKP, said in a statement. “The Warszawa Zachodnia railway station and the surrounding areas provide

with commercial functions,” Mr Olczyk added. The new railway station, which will comprise 1,250 sqm of space, is scheduled for com-

vast opportunities. Therefore, railway station functions guaranteeing a European standard of traveler service will be successfully combined

pletion by the end of 2014. Three years later, a complex of seven office buildings totaling 54,000 sqm should be ready. The Warszawa Zachodnia investment is to be built with particular emphasis being put on environmental protection. HB Reavis intends to apply for BREEAM certification for the development. Established in 1993 and based in Luxembourg, with regional offices located in Bratislava, Warsaw, Prague, Budapest and Zagreb, HB Reavis has to date developed 500,000 sqm of commercial space, focusing on office, retail and warehouse buildings. The Warszawa Zachodnia project marks the company’s second investment in Poland – the firm is currently also building the Konstruktorska Business Center office scheme in Warsaw’s Mokotów district. Adam Zdrodowski

Multi-functional investments

Kristensen Group and Zdrojowa Invest to join forces in ÂwinoujÊcie The two companies are planning to invest between z∏.200-250 million on projects in the city Danish holiday home builder Kristensen Group and Ko∏obrzeg-based investor and developer Zdrojowa Invest are in the process of realizing a cooperation agreement to complete the third phase of Baltic Park, a multi-functional complex located in ÂwinoujÊcie, Zachodniopomorskie voivodship. The two investors are currently dealing with administrative procedures, the completion of which will allow the construction of Baltic Park Molo, the third phase of Baltic Park, to begin. “According to a realistic scenario, the work may start in

a year’s time,” Kristensen Group spokesperson Ilona Knapik said in a statement. Baltic Park Molo will be comprised of two hotels (one of which will be an exclusive condo hotel), a shopping center, an arts center, an aqua park and a cinema. The complex is scheduled to occupy 2.5 ha out of the 4.7 ha of total space in Baltic Park. The cost of this part of the investment is estimated at z∏.200-250 million, which the two investors will pay for jointly. The remaining two parts of the investment, Baltic Park Promenada and Baltic Park

Pla˝a, are both residential estates. They comprise a total of 12 buildings and offer around 290 apartments. They were completed in Q4 2008. The complex is Kristensen Group’s concept and the firm was the sole investor for its first two phases. “The two first phases of Baltic Park were a considerable business success. During the year the apartments are occupied 55 percent of the time on average. With the completion of the third part, this number shall increase and this will enhance the attractiveness of Baltic Park Molo to tourists,” Jacek Twardowski, sales director at Kristensen Group, said. Kristensen Group belongs

COURTESY OF ZDROJOWA INVEST

Warsaw Stock Exchangelisted developer Gant Development has secured a z∏.57.5 million loan from Bank Millennium for the construction of its Odra Tower residential investment in Wroc∏aw. The 18-storey complex will be located at the intersection of ul. Podwale and ul. Sikorskiego in the city’s downtown area and is scheduled for completion in the summer of 2012. Odra Tower will comprise 243 apartments sized from 37-115 sqm and priced from over z∏.6,700 to more than z∏.16,000 per sqm.

Polish State Railways (PKP) and international real estate investor and developer HB Reavis last week signed an agreement concerning the development of the Warszawa Zachodnia (Warsaw West) railway station in Warsaw along with an accompanying office complex. So far only a preliminary architectural concept of the planned investment has been presented. The total value of the project, which will be carried out in a number of phases, is estimated at approximately €110 million. “This is another investment of PKP prepared jointly with a private investor, similarly as in Katowice and Poznaƒ,” Pawe∏ Olczyk, president of the management

COURTESY OF HB HB REAVIS

Odra Tower financing

PKP and HB Reavis will jointly develop a €110 million project in Warsaw

Construction on the scheme could launch next year to the Danish developers’ group Thorkild Kristensen Holding. It entered the Polish market in 2005. In its lifetime the company has sold around 15,000 apartments and holiday homes in Scandinavia, Germany, Spain, France and Turkey.

Zdrojowa Invest has so far completed three hotel investments: Marine Hotel, Ultra Marine and Sand Hotel in Ko∏obrzeg. The company also has two investments currently under construction. 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


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COURTESY OF IMMOFINANZ GROUP

COURTESY OF REPUTATION MANAGERS

New Warsaw investments for Immofinanz Group

The Equator project is now fully leased out Austrian property investor Immofinanz has acquired the remaining 49 percent stake in office building Equator and in planned office project Nimbus. Immofinanz is now the sole owner of the developments, both of which will be located adjacent to one another on Al. Jerozolimskie in Warsaw’s Ochota district. The seller, the Polish arm of the Luxembourg-based developer Karimpol Group, has in turn acquired a 51 percent stake in another planned office project, Cirrus, from

Immofinanz Group. The value of the transactions has not been disclosed. The Equator, Nimbus and Cirrus development projects were part of a joint venture that was founded in 2006. Equator is the only completed investment of the three. The 19,100 sqm office facility was finished in 2008 and is currently fully leased out. Nimbus is in the design stage. Construction on the building, which will offer some 20,000 sqm of space, is scheduled to commence at the begin-

ning of 2012. The Immofinzanz Group is one of the five largest listed property companies in Europe and is included in the ATX index of the Vienna Stock Exchange. The company’s portfolio now comprises more than 1,600 investment properties with a carrying amount of approximately z∏.8.5 billion. The company operates in Austria, Germany, the Czech Republic, Slovakia, Hungary, Romania, Poland and Russia. Katarzyna Piasecka

The Grazioso Apartamenty project is scheduled for completion in Q2 2013

Last phase of Eko-Park estate launched in Warsaw Developer Eko-Park has launched construction on Grazioso Apartamenty – the twelfth and final phase of the Eko-Park upscale housing estate in Warsaw’s Mokotów district. The project, which is located near the intersection of the capital’s ul. Chodkiewicza and ul. Rostafiƒskich, will comprise three apartment buildings scheduled for completion in the second quarter of 2013. Grazioso Apartamenty will offer a total of 155 units sized from 53-187 sqm. They will be priced at an average of z∏.16,000 per sqm.

Property-related stocks Security

Closing price on June 16

% change (week)

52-week low

52-week high

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Total shares

Market value (z∏.mln)

BUDIMEX

87.75

0.29

84.55

109.20

0.29

25,530,098

2,240.27

CELTIC

20.50

2.76

17.00

60.55

N/A

34,068,252

698.40

DOMDEV

49.50

0.36

38.52

50.80

4.87

24,560,222

1,215.73

ECHO

5.33

0.57

4.16

5.55

24.24

420,000,000

2,238.60

ELBUDOWA

155.30

-3.48

149.00

188.40

-6.16

4,747,608

737.30

ENERGOPLD

3.84

-3.52

3.57

4.18

-7.47

70,972,001

272.53

ERBUD

27.59

8.58

24.95

61.00

-44.49

12,602,711

347.71

GANT

12.75

0.24

11.90

23.38

-42.05

20,499,953

261.37

GTC

19.30

1.05

17.58

24.98

-18.87

219,372,990

4,233.90

HBPOLSKA

2.18

-6.44

2.02

3.90

-35.12

210,558,445

459.02

JWCONSTR

15.00

-1.96

13.50

18.69

-15.01

54,073,280

811.10

LCCORP

1.46

-1.35

1.41

1.72

-6.41

447,558,311

653.44

MARVIPOL

8.62

2.25

7.40

16.18

-44.39

36,923,400

318.28

MIRBUD

3.88

-0.51

2.85

4.75

34.72

75,000,000

291.00

MOSTALWAR

32.86

0.80

32.47

69.40

-51.96

20,000,000

657.20

MOSTALZAB

2.74

-4.86

2.54

4.03

-29.92

149,130,538

408.62

ORCOGROUP

32.74

-7.25

19.00

40.00

45.00

14,053,866

460.12

PBG

149.50

-2.61

134.70

252.00

-32.93

14,295,000

2,137.10

PLAZACNTR

4.44

3.02

3.70

5.59

-17.16

292,647,720

1,299.36

POLAQUA

18.21

0.61

16.00

20.60

5.02

27,500,100

500.78

POLIMEXMS

3.18

-1.24

2.91

4.84

-32.77

521,154,076

1,657.27

POLNORD

27.99

-0.92

27.49

39.41

-26.34

23,798,439

666.12

RANKPROGR

12.90

-1.45

9.59

13.60

N/A

37,145,050

479.17

ROBYG

1.94

-3.00

1.70

2.13

N/A

257,390,000

499.34

RONSON

1.40

-2.78

1.36

1.80

-21.35

272,360,000

381.30

TRAKCJA

2.76

-8.91

2.49

4.97

-36.11

232,105,480

640.61

ULMA

83.00

0.00

70.00

88.00

10.67

5,255,632

436.22

UNIBEP

6.79

-1.45

6.38

10.30

-15.55

33,927,184

230.37

WARIMPEX

8.95

0.11

7.64

10.89

11.18

54,000,000

483.30

ZUE

11.00

0.09

10.80

15.14

N/A

22,000,000

242.00

The design of Grazioso Apartamenty was furnished by the Warsaw-based Kury∏owicz & Associates architectural studio, a firm which earlier also prepared the concept of the Eko-Park investment. The final phase of the development is one of the last projects in which Poland’s renowned architect Stefan Kury∏owicz, who died in a tragic plane crash earlier this month, was involved. Eko-Park was founded in 1996 for the purpose of developing the eponymous project in Warsaw whose completed phases, comprising from one to

five buildings each, are called Allegretto, Bolero, Cameratta, Delicato, Etiuda, Milonga, Violino, Quattro, Serenata, Suita and Rapsodia. When completed, the whole Eko-Park complex, which sits on nearly 16 hectares of land, will comprise approximately 1,500 apartments. The development also includes some 12,500 sqm of office space. Re-Bau is serving as the general contractor on the Grazioso Apartamenty scheme. Adam Zdrodowski


www.wbj.pl

LOKALE IMMOBILIA – REAL ESTATE

Euro 2012

COURTESY OF NCS

Contractor offers its solutions to National Stadium construction woes

The National Stadium will hold Euro 2012’s opening match on June 8, 2012

A new steel construction will now be built to support the stadium’s unsafe staircases The general contractor for the National Stadium in Warsaw has presented the operator of the structure with a document that details its plans to correct defects identified in the building’s construction. Narodowe Centrum Sportu (NCS), which operates the sta-

dium, had issued an ultimatum asking the contractor, PolishAustrian consortium AlpineHydrobudowa-PBG, to find solutions to structural problems found in the stadium’s staircases. The ultimatum was also made partially because the contractor had missed a number of important deadlines. Safety tests commissioned by the NCS indicated that the stairs leading to the upperlevel stands would not be able to withstand the weight of the large number of soccer fans

the facility is expected to hold during next year’s Euro 2012 soccer championships. The contractor presented three possible solutions to the problem. Of the proposals, NCS has decided that the best is a solution that would see Alpine-Hydrobudowa-PBG add a steel structure to support the staircases. The contractor has now been asked to complete the additional work at its own expense. “The estimated cost of the work will amount to over z∏.10

million. In the framework of the corrective plan, organizational changes in the construction schedule will also be made, more workers will be employed and walls, ceilings and elements of the stands will be transformed,” an NCS spokesperson who asked not to be named told Lokale Immobilia. The deadline for completion of work on the stadium’s staircases has been set for September 15, 2011. At different points up to this date, as well as on September 30, the staircases will be tested to ensure that they meet safety standards. Polish engineering and construction company Hydrobudowa will now be the main party responsible for the completion of the rest of the investment. According to the current plan, the National Stadium will be completed and delivered to NCS on November 30. The stadium contract is worth z∏.1.5 billion. According to initial plans, the facility was expected to be completed on May 16, 2011. Euro 2012 begins on June 8, 2012, in WarKatarzyna Piasecka saw.

JUNE 20-26, 2011

Tenants moving into Piàtkowska 116 building

COURTESY OF PERCEPTION PR

16

Eleven of the scheme’s 15 office units have been sold The first tenants are moving into the Poznaƒ-based Piàtkowska 116 office building that NewConnect-listed developer Monday Development completed at the end of last year. The project offers office space for sale and is targeted at small- and medium-sized companies. Of the 15 units in the scheme 11 have already been sold. Located in Poznaƒ’s Piàtkowo district, the Piàtkowska 116 development comprises a total of 1,800 sqm of usable space with the office units sized from 60-250 sqm. Office tenants already secured include a law firm and an architectural

studio. BNP Paribas has leased a retail unit located on the building’s ground floor. “Modern office buildings with office units for sale are an answer to the needs of the market. Many small and mediumsized companies prefer to buy office space than to lease it. They assume that it pays off better to invest in the purchase of office space and pay mortgage installments rather than high rent,” Piotr Kasprowicz, sales director at Monday Development, said in a statement. He added that until recently, office space in high-standard buildings was available AZ for lease only.


LOKALE IMMOBILIA – REAL ESTATE

JUNE 20-26, 2011

www.wbj.pl

Tri-city developer Inpro has launched sales for its four-star condo-hotel development in Miko∏ajki, Warmiƒsko-Mazurskie voivodship. Construction on the luxury scheme, which will include a private yacht marina with 64 mooring places, commenced last month and is expected to finish in Q1 2013. Inpro’s Miko∏ajki investment will sit on an island located at Lake Miko∏ajki. It will comprise 77 hotel rooms and 18 turn-key standard apartments sized from 31.6-114.8

sqm and priced from z∏.25,00030,000 per sqm, as well as a number of recreational facilities. “Condo-hotel investments appeared in Poland a few years ago. Our company was a pioneer in the domestic market when it comes to these kinds of products,” Piotr Stefaniak, president of Inpro’s management board, said in a statement. Inpro has already invested in a holiday resort: in 2005 the company built the Dom Zdrojowy scheme in Jastarnia on

the Hel Peninsula. “Considerable interest in the apartment offer in that seaside investment convinced us to build another project of this kind,” Mr Stefaniak said. Active in the market since 1987, Inpro is focused mainly on the construction of upperstandard apartments and single-family houses in the Tricity area. The company also develops commercial projects, including apartment hotels and office buildings, and offers construction services. Adam Zdrodowski

COURTESY OF TAUBER PROMOTION

Inpro builds Masurian condo-hotel project

The Miko∏ajki project is expected to be finished in Q1 2013

Dom Development lays Oaza Goodman opens first warehouse in Kraków project cornerstone Airport Logistics Centre development

COURTESY OF M+G

Warsaw Stock Exchange-listed developer Dom Development last week held a cornerstone laying ceremony at the construction site of its Oaza residential project in Wroc∏aw, Lower Silesia voivodship. Located at the intersection of the city’s ul. Nyska and ul. Pi´kna, the project is the company’s first investment outside the Warsaw market. “The Oaza estate in Warsaw is our first investment outside Warsaw. We are bringing our best standards to the Wroc∏aw market which have been valued by buyers and market experts alike for 15 years, since the start of our operations,” Jaros∏aw Szanajca, president of Dom Development’s management board said in a statement. “The first few months of apartment sales in the Oaza scheme have shown that it is enjoying considerable interest on the part of customers. This is why we are currently looking

The Oaza project will offer 460 apartments for new plots for investments in Wroc∏aw,” Mr Szanajca added. The architectural design of the Oaza development, which will comprise four sixstorey buildings, has been furnished by the Wroc∏awbased AP Szczepaniak studio; Wrobis is acting as the general contractor on the invest-

ment. The whole estate will offer 460 apartments; the first phase of the project, which is scheduled for completion at the end of Q3 2012, will deliver 116 units. Apartments in the first phase of Oaza are sized from 28.9-96.3 sqm. They are priced from z∏.5,700-7,250 per sqm. Adam Zdrodowski

Goodman Group has officially opened the first warehouse at its Kraków Airport Logistics Centre complex in Ma∏opolskie voivodship. The scheme will deliver a total of 160,000 sqm of GLA when completed. Two tenants have already moved into the 14,000 sqm property, with a third expected to follow suit soon. Construction on the project started in October 2010 – it was at that time the first speculative investment made by Goodman in Central Europe in 18 months. Last month the developer began to build the second warehouse building in the complex. “Our customers sought a location with well-developed infrastructure where they could conduct operations in state-of-the-art facilities adapt-

ed to suit their needs,” B∏a˝ej Ciesielczak, country manager at Goodman Poland, said in a statement. “We are confident that Kraków Airport Logistics Centre will live up to all of their expectations and that the expansion will attract a growing number of satisfied customers,” Mr Ciesielczak added. Current tenants at the center are SCOT, EurodrukKraków and Farutex. Kraków Airport Logistics Centre will be located four kilometers from John Paul II International Airport Kraków -Balice. It will comprise nine warehouses with additional office space, as well as staff and technical areas. Up to 1,000 people are expected to work at the center when it becomes fully operational. Adam Zdrodowski

17

Adgar invests in Wola Adgar Investments & Development has purchased a 8,000-sqm plot on Al. Prymasa Tysiàclecia in Warsaw’s Wola district. The plot currently hosts a BMW Inchcape showroom and service point. “The purchase of this property in Warsaw is in line with our growth strategy according to which we will continue to invest in income-producing assets,” Eyal Litwin, vice president of Adgar Investments & Development, said in a statement.

SBC 50% leased out Developer Hines Polska has leased 1,645 sqm of office space in its Sterlinga Business Center project in ¸ódê to Rule Financial, a provider of services for the financial sector which is expanding its activities in Poland at the moment. Following the transaction, the development is now more than 50% leased out.

NAI Estate Fellows deals Real estate services provider NAI Estate Fellows increased its portfolio of managed properties by over 93,745 sqm in the first quarter of this year. The company also became the manager and leasing agent of new commercial developments in Wroc∏aw and Radomsko. ●


18

www.wbj.pl

POLISH EXPORT PROMOTION PROGRAM

JUNE 20-26, 2011

Mister & Junior of Exports Awards

Exporters honored at awards evening

The award winners and gala organizers pose for a group photograph

Polimex-Mostostal and pharmaceutical giant Polpharama were among the big winners The Polish Chamber of Commerce (KIG) and Warsaw Business Journal Group joined together to honor Polish companies, products and services in foreign markets, at the Polish Export Promotion Program Gala on June 15. Speakers at the event, which brought together key members of the business and economic communities, included Deputy Economy Minister Mieczys∏aw Kasprzak, KIG president Andrzej Arendarski and Pawe∏ Kusiak, managing director of the commercial and global banking division at HSBC Polska. In addition to promoting Polish business, the gala awarded top exporters in Poland as well as provided a comprehensive discussion on the state of trade in Poland. The award for “Mister of Export 2011” went to Polimex-Mostostal for its steel constructions. Eugeniusz Pastuszka, the company’s deputy director of steel

products, reminded the audience that Polimex-Mostostal now exports to every continent except Australia. “Vice Mister of Export 2011” was awarded to Energoinstal SA for their heatrecovery steam generators. Chairman of the supervisory board, Stanis∏aw Wi´cek, collected the award.

In addition, Solaris Bus & Coach received the title of “Junior of Export 2011” for the Solaris Urbino 15 LE CNG bus. The award was received by chairman of the board, Solange Olszewska. WBJ editor-in-chief, Andrew Kureth, presented the “Spotlight Exporter” award to Polpharma. Tomasz Lorenz, the firm’s regional

Guests enjoyed an evening meal prepared by AleGloria

director of export, accepted the award. Polpharma is Poland’s largest pharmaceutical exporter, with a presence in around 50 countries. Exports constitute as much as 24 percent of its total turnover, and it has representative offices in Ukraine, Lithuania, Belarus, Kazakhstan, Azerbaijan and Uzbekistan, with the largest volume of Polpharma’s drugs being exported to the Russian market. Speaking about Made in Poland, a guide to Polish export produced in cooperation with KIG, Mr Kureth said representatives from various embassies had emphasized how important the publication is as an informational tool, and to enhance the image of Polish firms among potential importers. The Mister & Junior of Export Competition and the Made in Poland publication comprised the core elements of the Polish Export Promotion Program, a joint initiative between Warsaw Business Journal Group and the Polish Chamber of Commerce.

Polpharma’s Tomasz Lorenz collected the “Spotlight Exporter” award on behalf of his company, Polpharma

David Ingham

Deputy Economy Minister Kasprzak (left), and KIG president Andrzej Arendarski

ALL PHOTOS BY PIOTR GAMDZYK/WBJ

Warsaw Business Journal Group and the Polish Chamber of Commerce would like to thank our partners:

Pawe∏ Kusiak of HSBC

Eugeniusz Pastuszka received the “Mister of Export” award on behalf of his company, Polimex Mostostal


MARKETS

JUNE 20-26, 2011

www.wbj.pl

Stocks report

world stock indices DJIA

NASDAQ

11,963.15 (June 16 close)

S&P500

2,624.01 (June 16 close)

-1.40% (for the week)

FTSE100

1,267.45 (June 16 close)

-2.35% (for the week)

DAX

5,698.64 (June 16 close)

-1.69% (for the week)

-2.63% (for the week)

Volatility worries investors

NIKKEI225 7,106.64 (June 16 close)

9,411.28 (June 16 close)

-0.67% (for the week)

-0.59% (for the week)

CHANGE: 3.33%

CHANGE: -1.97%

CHANGE: 0.78%

CHANGE: -3.41%

CHANGE: 1.91%

CHANGE: -9.09%

(year to June 16)

(year to June 16)

(year to June 16)

(year to June 16)

(year to June 16)

(year to June 16)

52-week high: 1,370.58

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: 1,010.92

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 Trading long on hope can only take markets so far, as was in evidence last week. In the absence of any macroeconomic data, markets opened last week with marginal increases, driven largely by hope of a successful twoday summit of European ministers on Greece beginning Tuesday. Such hope led markets higher Tuesday, with the WIG up 0.73 percent, while the DAX and CAC40 rose more than 1.50 percent. Retail sales figures were 0.10 percent better than expected (though still negative -0.20 percent), which pushed US indices higher as well. On Tuesday, the strongest day last week, the S&P and DJIA closed above one percent. Wednesday saw hope dissipate. News of strikes in Athens as well as no real news from the summit pushed

Major indices WIG

49,129.21 (June 16 close)

WIG20

2,863.81 (June 16 close)

16.06

15.06

14.06

13.06

10.06

09.06

08.06

07.06

06.06

03.06

02.06

01.06

31.05

16.06

15.06

14.06

13.06

10.06

09.06

08.06

07.06

06.06

2,500

03.06

30,000

02.06

2,600

01.06

35,000

31.05

2,700

30.05

40,000

27.05

2,800

26.05

45,000

25.05

2,900

24.05

50,000

23.05

3,000

20.05

55,000

30.05

52-week low: 2,270.52

27.05

Change year to June 16: 3.96%

26.05

52-week low: 39,366.83

25.05

52-week high: 2,932.62

Change year to June 16: 3.11%

24.05

Change for the week: -0.27%

23.05

52-week high: 50,371.74

20.05

Change for the week: -0.51%

Top 5 PTI MISPOL WIKANA ERBUD ELSTAROIL

Closing 7.87 6.29 0.12 27.59 4.58

% change (week) 52-week high 11.32 12.00 9.39 7.79 9.09 0.13 8.58 61.00 7.76 7.10

52-week low 6.51 4.16 0.10 24.95 3.57

Top 5 PZU TPSA BZWBK CEZ GTC

Closing 385.30 18.75 227.40 145.00 19.30

% change (week) 3.71 1.90 1.47 1.33 1.05

52-week high 411.00 19.01 235.30 154.10 24.98

52-week low 337.50 14.10 179.00 118.70 17.58

Bottom 5 BEST KREZUS ADVADIS SUWARY DROP

Closing 4.60 4.21 0.17 15.70 22.00

% change (week) -48.60 -23.87 -19.05 -16.49 -15.06

52-week low 4.60 1.31 0.17 15.15 22.00

Bottom 5 CYFRPOLSAT TVN KGHM PBG ASSECOPOL

Closing 16.10 16.71 187.2 149.50 51.75

% change (week) -4.28 -2.85 -2.75 -2.61 -1.62

52-week high 17.35 18.90 198.40 252.00 58.70

52-week low 13.36 15.95 88.50 134.70 46.99

52-week high 20.50 5.69 0.46 86.00 43.00

2,885.29 (June 16 close)

sWIG80

Greece and the US data in the spotlight

12,184.00 (June 16 close)

NewConnect

55.83 (June 16 close)

WIG-Banki

6,983.24 (June 16 close)

Change for the week: -1.57%

52-week high: 64.39

Change for the week: -0.49%

52-week high: 7,387.49

Change year to June 16: -11.95%

52-week low: 54.52

Change year to June 16: 0.31%

52-week low: 5,751.39

58.0

Pawe∏ Kordala, X-Trade Brokers Dom Maklerski SA

16.06

15.06

14.06

13.06

10.06

09.06

08.06

07.06

06.06

03.06

02.06

01.06

31.05

16.06

15.06

14.06

13.06

10.06

09.06

08.06

07.06

06.06

11,000

03.06

2,500

02.06

11,400

01.06

2,600

31.05

11,800

30.05

2,700

27.05

12,200

26.05

2,800

25.05

12,600

24.05

2,900

23.05

13,000

20.05

3,000

30.05

52-week low: 10,980.45

27.05

Change year to June 16: 0.53%

26.05

52-week low: 2,361.69

25.05

52-week high: 12,932.00

Change year to June 16: 2.76%

24.05

Change for the week: -2.36%

23.05

52-week high: 2,987.72

20.05

Change for the week: -0.88%

7,500

56.6

7,250

55.2 7,000 53.8

SOURCE: WSE

16.06

15.06

14.06

13.06

10.06

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

6,500

16.06

15.06

14.06

13.06

10.06

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

51.0

20.05

6,750

52.4

markets lower. Falling by more than a percent and a half were indices in London and Paris, while the WIG fell 0.45 percent. Compounding problems was the release of poor economic data from the US – namely the Empire State Manufacturing Survey figures for June which showed a much worse-than-expected figure (-7.79 points, while a positive 12.0 figure was expected). On Thursday, markets did not do much better, while on the WIG financial and construction stocks saw big falls. Such volatility is likely to continue until a deal is reached over Greece. Pushing volatility even higher was Thursday’s expiration of stock-index futures, single-stock futures, equity options and stock-index options for June. ●

Currency report

Other indices mWIG40

19

The first two weeks of June were full of negative emotions on the financial markets. The main event last week was the still unsolved problem of the Greek debt. Investors are not sure how the ECB, IMF, Germany and France will tackle the problem and whether the Greek government will succeed in introducing a new austerity plan. The other negative signals come from the US economy. The poor data from the labor market and the manufacturing sector caused a serious decline on the equity markets. They also influenced the commodities market (Brent crude fell below $115 per barrel) and the strength of the Swiss franc (which gained against the dollar and the euro). That negative sentiment seriously affected the Polish

currency market. Despite an interest rate hike of 25bp in June and the highest rate of inflation in the last 10 years (5 percent y/y in May), the Polish currency fell against the euro, the dollar and the Swiss franc. This shows the power and the seriousness of the mentioned problems. The strength of the Swiss franc is a serious problem for many Polish families, who have mortgage loans in francs. The strength of that “safe haven” currency is also supported by good data from the Swiss economy. The short-term condition of the Polish currency will depend on the situation in Greece, new data from the US and signals from the Polish Central Bank (whether it will decide to tighten its monetary policy faster than expected or not). ●

currency rates 3.4912

3.4063 15.06

17.06

3.3920 14.06

SOURCE: NBP

3.4119 13.06

16.06

3.3969 10.06

0.0995

0.0996 17.06

3.0

3.4795

PLN-100JPY

3.6

16.06

0.0984 15.06

0.0979

0.0976 14.06

0.09

0.0978

0.10

10.06

3.3081 17.06

3.2969 16.06

3.2366 15.06

3.2420 14.06

3.2588 13.06

3.0

10.06

3.2336

4.5278 17.06

16.06

15.06

14.06

10.06

4

PLN-RUB

0.11

13.06

PLN-CHF

3.5

4.5300

4.4831

4.4600

4.4590

4.4279

2.8077 17.06

2.8069 16.06

2.7499 15.06

2.7203 14.06

2.7426 13.06

2.5

10.06

2.7216

3.9788 17.06

16.06

15.06

14.06

13.06

10.06

3.8

PLN-GBP

5

13.06

PLN-USD

3.0

3.9678

3.9433

3.9335

3.9413

3.9324

PLN-EUR

4.2


20

THE LIST

www.wbj.pl

JUNE 20-26, 2011

Corporate Services

European Union Funds Consulting Companies Ranked by funds gained (2007-2013 programs) through November 30, 2010

Sample projects

Total number of employees in Poland / Year founded in Poland

Programs and activities

Ownership: Polish / Foreign

1,129.3 88.1 248.5

39 19 15

WND

52 1990

Andrzej G∏owacki - 34%; Anna Szymaƒska - 5.8% None

Andrzej G∏owacki

4 15 36

EDF Polska; H&M; NG2; SII; GPEC

68 2005

Jaros∏aw Antosik - 25%; Rados∏aw Czarnecki - 25%; Micha∏ Gwizda - 25%; Andrzej Puncewicz - 25% None

Jaros∏aw Antosik; Rados∏aw Czarnecki; Micha∏ Gwizda; Andrzej Puncewicz

Tomasz Chmielecki - 33.3%; Tomasz K´cerski - 33.3%; Przemys∏aw Mazurek - 33.3% None

Tomasz Chmielecki; Tomasz Kecerski; Przemys∏aw Mazurek

Total amount of subsidies (z∏.mln) for: public administration / SMEs / large enterprises Number of qualified projects for: public administration / SMEs / large enterprises

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

Total amount of subsidies (z∏.mln) / Number of qualified projects*

Rank

General classification:

www.bookoflists.pl

Selected clients

1

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

1,467.8 75 (7)

The Raczyƒski Library in Poznaƒ extention; increasing POIÂ (13.1; 12.2; 11;2; 4.3; 11.3); the availability and quality of health services by POIG (2.2; 2.1; 4.4; 6.1; 8.2; 8.1; providing equipment for the Center of Cancer 1.4; 4.1); PO RPW (1.1); RPO WM Prevention at the Oncology Center in Warsaw; (1.5); WRPO (1.2; 6.2; 2.2; 2.7; 6.1; construction of a new manufacturing plant and 6.2); RPO W¸ (I.1; 5.4; 4.1); RPO purchase of innovative technology by the Curtis WK-P (4.1); RPO WÂ (1.2.2.; 1.1); Healthcare outplacement project for Wielkopolskie RPO WZ (6.2; 1.3); POKL (9.2; Voivodship; “Fascynacje zakl´te w nauce i biznesie,” a 7.2.1; 3.3.4; 5.2.1; 8.1.1; 8.1.2; 9.3; nationwide program of development of key 2.1.1) competencies in mathematics and natural sciences for high school students”

2

Accreo Taxand Sp. z o.o. ul. Grzybowska 5A, 00-132 Warsaw 22 324-5900/22 324-5901 accreo@taxand.pl www.taxand.pl

1,318.0 55 (13)

Shared service center in logistics; creation of a new tower manufacturing plant; creation of a regrind POIG (1.4-4.1; 4.2; 4.4; 4.5.1; 6.1); wind plant to produce fertilizer from municipal waste; POIÂ (1.1; 4.2; 4.6; 9.2; 9.4); POKL construction of a shared service center of finance and (8.1.1; 9.2) accounting; reduction of energy loss in the distribution of heat

51.0 172.0 1,132.0

POIG (1.4-4.1; 4.2; 4.3; 4.4; 4.5.1; Implementation of the conceptual production 8.1; 8.1); POIÂ (12.1); PROW technology in the manufacture of glass; production of (1.2.3); POKL (2.1.1; 6.1.1; 8.1.1); high-performance photovoltaic cells for the technology RPO WD (1.1); RPO W¸ (3.2; 3.3; to shape crystallographic structures with laser; 3.5; 4.3; 5.1; 5.3); MRPO (2.1); implementation of innovative technology of catalytic RPO WM (1.5); RPO WO (1.3.2; recycling of plastic waste recycling technology; 1.4.1); RPO WP (1.4.2; 3.2); RPO development and imlpementation of innovative WÂ (1.2.2; 1.2.4); RPO WiM methods of synthetic diesel production; introduction of (1.1.9); WRPO (1.2); RPO WZ an innovative non-invasive service to remove (1.1.2) cancerous tumors on a global scale

11.7 1,099.3 191.6

3 212 13

Polfa ¸ódê; Budvar Centrum; Europoles; Kolporter Info; Zak∏ady P∏ytek Ceramicznych “Przysucha”

15 2004

Development and implemantation of innovative technology of humic acids production from local raw POIÂ (4.5; 9.1; 11.2); POIG (1.4-4.1; materials; modernization of the power unit to reduce 4.4; 6.1; 8.1); RPO WM (1.5); RPO emissions by PGE Power Plant Opole; building of WK-P (5.2.2; 2.2); RPO WP (1.1.2); NOx Gdaƒsk Shakespeare Theatre headquarters; RPO WD (1.1) construction of an agricultural biogas plant with a capacity of 1.36 MW of electricity in Me∏no

760.2 316.4 183.5

93 62 20

Energa Obrót; Creaton Polska; Gdaƒsk City Hall; Nokia Siemens; Herbapol Lublin

29 1999

WND

106.1 1,151.3

2 10

PGNiG; PKP Energetyka; SPEC; GAZ-System; Ministry of the Treasury; Industrial Development Agency; Krakowski Holding Komunalny; COIG; SEC; Warsaw City Hall

21 1989

Wies∏aw Samitowski; Artur Sadowski - 100% None

3

EGC Consulting Group T. Chmielecki, T. K´cerski, P. Mazurek Sp.j. Al. Politechniki 22/24 , 93-590 ¸ódê 42 250-5358 /42 250-5371 biuro@egc.pl www.egc.pl

4

Faber Consulting Sp. z o.o. ul. Sienna 72/8, 00-833 Warsaw 56 662-4560/56 652-2582 biuro@faberconsulting.com www.faberconsulting.com

5

Polinvest Sp. z o.o. ul. Jana Bro˝ka 3, 30-347 Kraków 12 263-7002/12 263-7001 polinvest@polinvest.pl www.polinvest.pl

1,302.6 228 (1)

1,260.1 175 (2)

Board Members

Managing Partners

Robert ¸apacz President

1,257.0 12 (22)

1,010.0 59 (12)

“Ochota” Center for New Technologies for University of Warsaw; implemantation of active substance production for Docetaxel anticancer drug in IFOTAM Przedsi´biorstwo Produkcyjno-Wdro˝eniowe; development of intelligent and energy-efficent lighting systems for plant production for PolTree & Crop Technologies; “photonic materials and their advanced applications” for Military University of Technology; “innovative technologies for cancer drugs of specific therapeutic and social importance” for Pharmaceutical Research Institute in Warsaw

955.7 21.3 43.0

38 19 2

IFOTAM Przedsi´biorstwo ProdukcyjnoWdro˝eniowe; PolTree & Crop Technologies; “Wieliczka” Salt Mine; Military University of Technology; Pharmaceutical Research Institute in Warsaw; University of Warsaw

11 2004

WND

907.0 77 (5)

Design and implementation of innovative hobs and POIG (1.4-4.1; 4.2; 4.4.; 4.5; 8.1); refrigerators; development of comprehensive POIÂ (4.1-4.5; 7.4; 9.4); POKL technology for producing and assembling aircraft parts; (2.2.1; 8.1); Marco Polo; RPO construction of wind turbine units

260.0 647.0

30 47

Electrolux Poland; Unlimit; Bolsius Polska; Baumit

31 2005

None PNO - 100%

821.0 31 (18)

Masovian tourist attraction “Businessman Fun Club” and recreational center; creation of the House for RPO WM (1.5; 6.1; 6.2; 7.3); RPO hotel Senior Musicians in Kàty; “Professional and effective”WiM (1.1.7); MRPO (3.1); POIG project for telecom employees; “Akademia General (1.4-4.1; 4.4.; 8.2); POKL (2.1.1; a Motors”; strenghtening ISPL S. Zalewski’s market 6.2); PO RPW (1.3); POIÂ (1.1) position by constructing an innovative eye clinic with one-day surgery unit in Olsztyn

599.5 221.6 4.5

3 28 1

WND

16 2004

WND

Creation of a research and development center for the study of cancer genetics; “Professional Beauty” investments in comprehensive development of DR Irena Eris SPA Hotels’ employees; “The new dimension of sitting” - implementation of innovative technology for production of chairs; “SCANIA Drivers School”; implementation of new technology for manufacturing of innovative active packaging modified with nano-silver

157.6 353.9

15 17

Dr Irena Eris SPA Hotels; SCANIA Polska; Read-Gene; Polkomtel; Union Investment TFI

18 2004

Anna Misio∏ek - 54.6%; Agnieszka Dudek - 36.4% None

Anna Misio∏ek

Biogas power plant construction in Szarlej; POIG (1.4-4.1; 4.4; 8.1); POIÂ (4.2; construction of 4 wind turbines in B∏aszki municipality; 4.3; 4.5; 4.6; 9.1; 9.2; 9.4; 10.2); modernization of district heating duct and heating POKL (8.1.1; 5.2); PO RPW (3.2); central station in Toruƒ; infrastructure modernization PROW (1.2.1; 1.2.3; 3.1.2); WRPO and expansion of Targi Kielce as the International (1.1; 1.2; 1.4); RPO WZ (1.1.2; Exhibition and Congress Centre; construction of a 2.2.2) science and technology park

301.0 149.2

108 14

Toruƒska Energetyka CERGIA; Elektrociep∏ownie Wybrze˝e; Bioelektrownia Szarlej; Wielkopolska Spó∏ka Gazownictwa; BARTEX-Bartol

13 2005

Bartosz Janc - 33.2%; Wojciech Nawrocki - 33.4%; ¸ukasz Bartkiewicz - 33.4% None

Bartosz Janc; Wojciech Nawrocki; ¸ukasz Bartkiewicz

413.1 102 (4)

Construction of ul. 1 Maja - DTS N-S route section with two-level junction in Ruda Âlàska; DW 933 - A1 junction in Mszana of the Main South Road RPO WÂ (1.1.2; 2.2; 3.2.2; 3.4; 4.1; highway construction; construction of segregation line for 4.2; 4.3; 5.1; 5.2; 5.3; 5.4; 6.2.1; waste in Âwi´toch∏owice; modernization of 7.1.1; 7.1.2; 8.1; 8.3; 9.1; 9.2; 9.3); municipal the Department of Urology and Department of PORW (3.2; 3.3) Orthopedic Surgery and Trauma along with the supply of equipment in HMO Municipal Hospital in Cz´stochowa

409.0 4.1 -

91 11 -

Ruda Âlàska City Hall; Bieruƒ municipality; Pilica municipality; Âwi´toch∏owice City Hall; GórnaÊlàskie Przedsi´biorstwo Wodociàgów

4 2005

Ma∏gorzata Grabowska; Pawe∏ Syrek; Patryk Swoboda; Wojciech Olszewski - 100% None

317.7 74 (8)

POIÂ (9.4; 10.3; 4.6); WRPO (1.2); POIG (4.5.1; 8.2; 4.4); RPO W¸ (2.9); RPO WM (4.3); RPO WP (5.2); RPO WO (1.3.2); POKL

Application of innovative solutions in order to start production of light gauges - WIKA Polska; ATS development through the creation of Service Center; construction of Eureka Technology Park science and technology park; construction of 4 wind turbines in B∏aszki municipality; construction of post-consumer waste recycling system

9.0 213.6 95.1

3 67 4

WIKA Polska; Eolos Polska; Grant Thornton Fràckowiak; Krzemieƒ i Wspólnicy; University of Technology and Life Sciences in Bydgoszcz

15 2002

WND None

6

7

PNO Consultants Sp. z o.o. Al. Jerozolimskie 81, 02-001 Warsaw 22 695-0410/22 695-0411 thoffmann@pno.com.pl www.pno.com.pl

8

Europejskie Centrum Przedsi´biorczoÊci Sp. z o.o. ul. Kopernika 34, 00-336 Warsaw 22 826-3700/22 826-3533 eucp@eucp.pl www.eucp.pl

9

ABBEYS Europejskie Doradztwo Finansowe Sp. z o.o., Sp.k. ul. Grzybowska 2/35, 00-131 Warsaw 22 406-3715/22 406-3716 biuro@abbeys.com.pl www.abbeys.com.pl

511.5 32 (17)

METROPOLIS Doradztwo Gospodarcze Sp. z o.o. ul. Zakopiaƒska 197, 60-467 Poznaƒ 10 61 820-5444/61 820-1351 wojciech.nawrocki@metropolisdg.pl www.metropolisdg.pl

450.2 122 (3)

PWB Sp. z o.o. ul. Garbary 56/12, 61-758 Poznaƒ 12 61 850-1151/61 850-1151 ext. 24 biuro@pwb.com.pl www.pwb.com.pl

President

Underground gas storage in Wierzchowice; chalcedony underground gas storage Kosakowo; construction of pipeline Jeleniów - Dziwiszów; construction of a unit POIÂ (1.1; 9.1; 10.1; 10.2); MRPO for cogeneration of electricity and heat energy based (7.1) on diesel engines running on vegetable oils in EC Rzeszów; organization of water supply and wastewater systems for Jelenia Góra City

KPPM Doradztwo Sp. z o.o. Pl. Wolnica 13/14, 31-060 Kraków 12 430-0114 biuro@kppmd.pl www.kppmd.pl

Grupa Doradcza ALTIMA Sp. z o.o. ul. Ligocka 103/7, 40-568 Katowice 11 535-500-570/32 750-8684 biuroaltima@biuroaltima.pl www.biuroaltima.pl

Top local executive / Title

POIG (2.1; 2.2; 5.4.1; 1.4-4.1; 4.4.; 1.1.2; 1.3.1; 1.3.2); RPO WM (7.2; 1.1.); POIÂ (13.1; 12.1); RPO WD (6.4); MRPO (6.2; 1.1; 1.2); RPO WÂ (4.1); POKL (4.1.1; 4.1.2; 8.1.1)

POIG (4.4; 4.5.1; 4.5.2); POKL (2.1.1; 8.1.1)

Wies∏aw Samitowski; Artur Sadowski President; Vice President

Krzysztof Dadej President

Tomasz Hoffmann Managing Director

Piotr Stefaniak President

President

President; Board Members

Ma∏gorzata Grabowska President

Przemys∏aw Kowalski President


THE LIST

21

316.9 74 (8)

Improving the competitiveness of enterprises through the acquisition of innovative machines for paper manufacturing; development and implementation of RPO WZ; RPO WK-P; RPO WW; data processing and archiving for Outsourcing Services RPO WM; RPO WO; RPO WP; RPO Center; diversification of production through the W¸; RPO WSL; RPO WÂ; MRPO; implementation of innovative technologies for the POIÂ; PROW; POIG production of construction chemicals; closure and reclamation of landfill along with the installation of the seizure and disposal of landfill gas; B2B system implementation to automate business processes

26.4 4.4 22.5

4 72 2

Drukarnia Narodowa; Polcom; Polish Security Printing Works; Lakma Sat; Goliard

10 1998

Przemys∏aw Sulich - 100% None

Przemys∏aw Sulich

205.0 44 (15)

RPO WP (2.2.2; 8.2; 8.1.1; 6.3.1; E-government - the development of information society 3.1.1; 5.1.1; 9.1.4; 9.1.3; 9.1; 5.5.1; services in the district of S∏upsk; joint program to install 2.1; 5.5; 2.2); RPO WiM (6.1.2); solar panels in Tuchomie municipality; renovation of RPO WD (4.2; 6.4; 3.1); RPO WZ city hall building in Ko∏obrzeg; upgrading the regional (2.1.2; 4.3; 1.2.2; 5.2.2); WRPO transport system by rebuilding roads in Krotoszyn (5.3; 6.1; 2.2; 3.4); POIG (1.4; 4.1); county POIÂ (12.1)

200.9 4.2 -

42 2 -

KoÊcierzyna municipality; Trzciƒsko Zdrój municipality; Procorol; Koszalin University of Technology; Koszalin County

5 2001

Piotr Sikora - 50% Business Mobility International 50%

Joanna Urbaƒska

197.8 76 (6)

Rebuilding and expansion of Pulmonology and Cystic Fibrosis Clinic at the Institute of Tuberculosis and Lung POKL (8.2.1; 6.3; 9.5; 9.1.2); PROW Diseases in Rabka-Zdrój; “Innovation in Business”(3.1.3; 3.2.2; 3.2.3); POIÂ (12.1; campaign for Academic Enterpreneurship 12.2); POIG (6.1); MRPO (1.1; 3.2; development; transforming a Fire Station into village 2.1; 4.1; 6.1; 6.2; 6.3; 7.1); RPO community room; Foliograf’s competitiveness W¸ (2.4; 4.3); RPO WÂ (1.2.2); improvement through purchase of innovative RPO WP (2.1; 4.4; 1.4) machinery and adapting new premises; improving emergency medical services in Che∏m by replacing six ambulances

177.0 20.5 0.4

49 27 1

Krakservis; Bielenda; PEGAS; Foliograf; Laskowa municipality

37 2007

INFOR PL - 100% None

Jolanta Adamczyk

Kancelaria Doradztwa Gospodarczego CieÊlak & Kordasiewicz Sp.j. ul. Zamiejska 1/66, 03-580 Warsaw 16 22 499-5180/22 499-5181 m.krzosek@kdg.waw.pl www.kdg.waw.pl

179.4 60 (11)

POIG (2.1; 2.3; 3.3.2; 4.4; 6.1; 6.4; 8.1); POIÂ (9.3); RPO WM (1.5; 2.1; 2.2; 4.2; 5.2; 6.1; 6.2); RPO WL (8.3); RPO WO (1.4); RPO WP (1.1; 4.4; 5.2; 5.3); RPO WÂ (9.3; 3.2)

The West Sailing Trail - a network of tourist ports of Western Pomerania; improving the quality of services concerning treatment of lung diseases and cancers in Lublin’s Autonomous Public District Hospital with new equipment; complete computerization of blood donation and blood transfusions in Poland; integrated ecological energy-efficient wood processing by creating new manufacturing plant in Bi∏goraj; creation of comprehensive waste management system in northwestern Mazovia

136.2 43.3 -

25 35 -

Institute of Physiology and Pathology of Hearing; Zabrze City Hall; Józef Pi∏sudski University of Physical Education in Warsaw; Couny Administration in ˚yrardów; Jax

15 2004

Rafa∏ Cieslak; Jan Kordasiewicz - 100% None

Rafa∏ Cieslak; Jan Kordasiewicz

RES - Projekt Sp. z o.o. ul. Kombatantów 34, 66-400 Gorzów Wielkopolski 17 95 728-2103/95 728-2104 biuro@resprojekt.pl www.resprojekt.pl

119.8 19 (20)

LRPO (1.1; 1.2; 3.1; 3.2; 4.2; 4.3; 5.1); WRPO (6.2)

Retrofitting of the Municipal Police Headquarters building in Zielona Góra; Water Treatment Plant upgrade and construction of pumping stations in Lubniewice; ul. J´drzychowska reconstruction in Zielona Góra; Kindergarten Education Center construction in Witnica; Integrated Public Transport System for City of Gorzów Wielkopolski

119.5 0.3 -

18 1 -

Gorzów WIelkopolski City Hall; Lubuskie Museum in Gorzów Wielkopolski; Firsts Piast Dynasty Museum in Lednica; Police Headquarters in Gorzów Wielkopolski; Witnica municipality

3 2007

Agnieszka Duniecka - 50%; Jaros∏aw Duniecki - 50% None

Jaros∏aw Duniecki

99.3 54 (14)

Implementation of e-platform to streamline business processes for Fabelo; design and implementation of a new utility model, industrial design and new design line RPO WL (4.3); RPO WM (2.3; 1.5); at WIMED Oznaczenia Dróg; conducting research and PROW (3.2.1); POIG (6.1; 8.1; 8.2; development of eco-innovative technologies and 1.4-4.1; 4.2) products; conducting research and development and implementation of results for Linter’s production business

80.8 18.5

52 2

Sante A. Kowalski; Drilling MS; GoldenLine; Linter; Emalia Olkusz

WND 2006

WND - 100% None

Mariusz Gajowiak

67.0 37 (16)

POIÂ ((11.3); PROW (3.1.3); RPO WO (2.2); MRPO (1.1; 4.3); RPO WÂ (1.1.2; 1.2.1; 1.2.4; 2.1; 2.2; 3.1.1; 3.3; 4.1; 5.3; 5.4; 8.1; 9.1; 9.2; 9.3; 12.1); RPO WD (9.1); POKL (8.1.1)

Comprehensive rebar installation in the Bukowno Economic Activity Zone; construction and provision of the equipment for the Nanobiotechnology and Biodiagnostics Lab for Physics and Applied Computer Science Department of AGH University of Science and Technology in Kraków; construction of a concert hall at the School of Music in Sosnowiec; rebuilding and refurbishment of part of the building to improve the availability and conditions in the Department of Dance Theatre in Bytom; construction of “LeÊna Per∏a” restaurant in Rudziniec to fill the gap in the tourist infrastructure of the region

63.6 2.7 0.7

31 5 1

AGH University of Science and Technologu in Kraków; Sosnowiec municipality; TechnoPark Gliwice; Bukowo municipality; Wojewódzkie Pogotowie Ratunkowe in Katowice

8 2004

Jacek Sztyler - 25%; Jaros∏aw Piotrowski - 25%; Rados∏aw Gumu∏ka - 50% None

HRP Czernecka, Jaszczyƒski Sp.j. Al. T. KoÊciuszki 39, 90-418 ¸ódê 20 42 637-9030/42 637-9031 biuro@hrp.com.pl www.hrp.com.pl

48.4 66 (10)

Development of staff competence for JTI Polska based on the organization’s values; development of POKL (2.1.1; 5.2.1; 6.1.1; 6.2; competitive advantage for Gealan Polska; 7.2.1; 7.2.2; 8.1.1; 8.3; 9.1.2; 9.2; “Methodology of age management as innovative 9.3; 9.4) solution to support economic activity of workers 50+”; “Kuênia Kard PGE ¸ódzkiego Zak∏adu Energetycznego”; “GURU IT - Computer Skills Academy”

2.3 40.5 5.5

2 58 6

IKEA; AB; JTI; Grupa Magneti Marelli; Ericpol Telecom

18 2006

Ma∏gorzata Czernecka - 50%; Konrad Jaszczyƒski - 50% None

Ma∏gorzata Czernecka; Konrad Jaszczyƒski

Mediator Group SA ul. Esperantystów 17, 58-100 Âwidnica 21 74 856-1120/74 856-1121 mediator@mediator.pl www.mediator.pl

45.4 26 (19)

POKL (2.1; 5.2; 6.3; 7.3; 8.1; 9.4)

Improving the skills and qualifications of the Lower Silesian Police; “innovation Technology Group - Lower Silesian showcase in ICT industry”; creation of a customer-oriented organization for IMPEL; “Urzàd na miar´ Europy”; “Healthy qualifications”

14.5 2.3 15.5

5 2 3

IMPEL Cleaning; IMPEL Security Polska; Innovation Technology Group; RWE Polska; Komenda Wojewódzka Policji in Wroc∏aw

75 1994

Krzysztof Wierz´ç - WND% None

Krzysztof Wierz´ç

Konsorcjum doradczo-szkoleniowe SA ul. Flisa 4, 02-247 Warsaw 22 22 577-4040/22 577-4047 office@weknowhow.pl www.weknowhow.pl

28.1 17 (21)

POKL (2.1.1; 2.2.2)

“Academy of skills development” - a project for employees of Bank Handlowy; “Academy of skills - HJ Heinz Polska”; “Academy of Talents” for ArcelorMittal Poland; “Innovation Development Institute”; “Professional business coach”

8.7 19.4

4 13

Bank Handlowy in Warsaw; Grupa Kapita∏owa TP; Eiffage Budownictwo Mitex; Tesco Polska; Schenker

80 2004

WND - 78.4% WND - 21.6%

Aleksander Drzewiecki

POIG (1.4-4.1; 4.3)

Studies on the inactivation of fungi and bacteria, along with implementation; development and market introduction of a ventilation system; development and implementation of innovative technology for water treatment in basins with living animals; up-flow filtration system-stage III of wastewater treatment and de-nitrification; model of process control of coagulation, using a jet stream analyzer

27.5 -

9 -

Instal; Seen technologie; Biodes; Navigo; Nowy Styl

8 1995

WND

POKL (5.2.1; 8.1.2; 8.1.1; 2.1.1)

“Competent clerk as a representative of modern local government”; support for Ma∏opolska enterprises and their employees in adapting to economic conditions in the current crisis; “Strengthening the professional capacity of Ma∏opolska tourist services staff as opportunity for people 45 +”; synergy of training and consulting to increase the competitiveness of companies from Polskie Sk∏ady Budowlane Group; organizational development based on innovative work management methods and permanent increase in technological competence

1.8 8.3

1 3

Asseco Poland; Intergraph Polska; Polskie Sk∏ady Budowlane Group; Capgemini Polska; British American Tobacco Group Polska

33 1997

Jakub S∏upiƒski - WND% None

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

A1 Europe Sp. z o.o. ul. Wadowicka 8A, 30-519 Kraków 13 12 259-8070/12 398-2188 biuro@a1europe.pl www.a1europe.pl

Business Mobility International Sp. z o.o. ul. 3-go Maja 11, 76-200 S∏upsk 14 59 845-6301/59 845-6303 office@bm-intl.2com.pl www.bmintl.com

INFOR Training Sp. z o.o. ul. Okopowa 58/72, 01-042 Warsaw 15 12 428-4820/12 422-3224 doradztwo@eurodirect.pl www.doradztwo-dotacje.pl

Sekwencja Spó∏ka z ograniczonà odpowiedzialnoÊcià Consulting Sp.k. Al. Jerozolimskie 51/9 , 00-697 Warsaw 18 22 887-2090 /22 636-0176 info@sekwencja.eu www.sekwencja.eu

Grupa Gumu∏ka - Euroedukacja Sp. z o.o. Al. Korfantego 115/4, 40-156 Katowice 19 32 203-5829/32 258-3298 renata.snios@gumulka.pl www.euroedukacja.com

MCG SA Al. Jerozolimskie 51/5, 00-697 Warsaw 23 609-308-121 mcgroup@mcgroup.eu www.mcgroup.eu

PM Doradztwo Gospodarcze Sp. z o.o. ul. Studencka 8/1, 31-116 Kraków 24 12 292-7632/12 292-7632 biuro@pmdg.pl www.pmdg.pl

Total amount of subsidies (z∏.mln) / Number of qualified projects*

Ownership: Polish / Foreign

Rank

Total number of employees in Poland / Year founded in Poland

General classification:

www.wbj.pl

Total amount of subsidies (z∏.mln) for: public administration / SMEs / large enterprises Number of qualified projects for: public administration / SMEs / large enterprises

JUNE 20-26, 2011

27.5 9 (23)

17.3 6 (24)

Programs and activities

Sample projects

Notes: Notes: NR = Not Ranked, WND = Would Not Disclose. Research for the List was done in December 2010. Number of employees and ownership structure are as of November 2010. All information pertains to the companies’ activities in Poland. Companies not responding to our survey are not listed. POKL - Operational Program Human Capital, POIG - Innovative Economy Operational Program, POIS - Operational Program Infrastructure and Enviroment, PO RPW - Operational Program Development of Polish Eastern, OP PT - Operational Program Technical Assistance, ROP - Regional Operational Programs; PROW - Program for Development of Rural Area; * The numbers in parentheses indicate the companies’ ranking position by number of qualified projects.

Selected clients

Top local executive / Title

President

President

President

Partners

President

Proxy

Jacek Sztyler President

Owners

President

President

Katarzyna Nowak President

Jakub S∏upiƒski 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.


22

ARTS & CULTURE

www.wbj.pl

JUNE 20-26, 2011

Festival

Prince takes center stage

For more information log onto www.opener.pl

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Legendary funk, R&B and rock musician Prince is the stand-out performer at this year’s Heineken Open’er Festival in Gdynia. Other headliners include British groups Coldplay and the recently reformed Pulp, as well as American garage rockers The Strokes. The event, now in its 10th year, was voted Best Major Festival at both the 2010 and 2011 European Festival Award. Tickets for one day are priced from z∏.165. ●

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10th Heineken Open’er Gdynia, Gdynia-Kosakowo Airport, June 30-July 3

Concert

Fashion event

Catwalk culture Warsaw Fashion Street 2011 ul. Nowy Âwiat, June 25 The seventh edition of Warsaw Fashion Street will take place June 25, with clothes from more than 70 young native and overseas designers set to be on show. The theme

of this year’s edition is world cultures, and along with cat-

walk shows, this free event also features concerts, stalls and competitions. ●

For more information log onto www.sophisti.pl

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

Fired up for festival season Arcade Fire – Get Ready 4 Heineken Open’er Festival Torwar, ul. ¸azienkowska 6a, June 24, 6.30 pm Canadian indie rockers Arcade Fire are the star attraction at a pre-event con-

cert ahead of this year’s Heineken Open’er Festival. The seven-piece band, which includes married couple Win Butler and Régine Chassagne, will play hits from their 2010 Grammy winning album “The

Suburbs,” as well as songs from earlier releases “Funeral” and “Neon Bible.” The concert will be accompanied by an exhibition of photos from the previous nine Open’er festivals. ●

Festival

Total eclipse Bonnie Tyler Sala Kongresowa, Plac Defilad 1, June 30 8 pm Welsh songstress Bonnie Tyler

is bringing her unique singing voice to the capital this month. The multi-award winning diva, who first found fame in 1970, will belt out classic hits including “It’s a Heartache’” “Total

Eclipse of the Heart” and “Holding Out for a Hero,” as part of her latest European tour. ● For more information log onto www.kongresowa.pl

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

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 20-26, 2011

www.wbj.pl

23

Tech Eye

home turf. We’re headed to gay Paris, followed by slightly less gay Lyon and, finally, so-desperate-tobe-gay-that-it’s-awkward Grenoble. By the time you read this you may have already read about an incident involving a fat man dressed in a beret and pantalettes, prancing through the streets of France, singing about whine-producing truffle-snufflers. Given the diatribe above, it would make sense if this week’s column mocked French technology. Unfortunately Techeye fell asleep

while making a list of ways to gall the Gauls and only had an hour to get the article done. So instead, we’re writing about gadgets from Switzerland and Estonia. From the former nation, we present the Only Watch L.U.C Engine One Tourbillon, a luxury timepiece crafted by Chopard (www.chopard.com). The word “tourbillon,” in case you didn’t know, is a French word which roughly translates to “you could feed half of India for a decade for what you’re going to spend on this watch.”

COURTESY OF CHOPARD

Everybody has things they’d like to do before getting flushed, goldfishlike, down the Great Metaphysical Toilet of Oblivion. A pilgrimage to visit the world’s largest ball of yarn, a trip to steal a used washcloth from the Dalai Lama, things like that. A “bucket list,” in the parlance of our times. We’re no exception. Our bucket list is long and exhaustive – perhaps too exhaustive. Will we see an outhouse installed on the moon during our lifetime, let alone get the chance to befoul it? Will the local Catholic girls’ school / gymnastics academy ever see it fit to install Techeye as beloved overlord? We’re not giving up hope. In the meantime, we’ve been actively fulfilling at least one item on our bucket list – “annoy the French at every opportunity.” Whether by miming the history of les années folles to the music of Alizée or by shouting “avec fromage” at every elderly French-speaker we’ve ever encountered, Techeye is living the dream. And this week, oh joy of joys, we’ve got an unparalleled opportunity to tickle the French on their

COURTESY OF FITS.ME VIRTUAL FITTING ROOM

Pardon our French

Chopard uses lots of automotive terminology to describe the Only Watch L.U.C Engine One Tourbillon, which is fine, but it kind of makes you wonder why the company’s designers aren’t making cars if they love them so bloody much. The important things to know about the watch (minus the car metaphors) are that its case is polished “diamond like carbon,” it has a 60-hour power reserve and at least one alligator died to make its strap. The timepiece will be auctioned off at Only Watch Charity Auction (hence the

name), and interested parties may have to hawk their genomes in order to afford it. Not in the mood for a watch? Perhaps the Female FitBot robotic mannequin is more your style. Created by Estonia’s Fits.me Virtual Fitting Room (http://fits.me), the Female FitBot is not the answer to every tubby comic-book collector’s dreams (although it might please some of that demographic). Instead, it’s squarely aimed at retailers as a means of demonstrating to fussy female clients how clothes might fit their body types. Shaped like an apple, pear or rambutan? Worry not ladies, the Female FitBot can mimic your body shape well enough to remind you of your every physical imperfection (real or imagined). Your clothes will fit like never before, but you’ll probably have nightmares for the rest of your life. How can you get your hands (or clothes) on a Female FitBot? We’d suggest you call up and pretend to be a retailer from France. Just practice a fancy accent and talk about hot coatier and you’ll have a FitBot in no time. ●

Ever unfairly singled out one nationality for ridicule? Let us know: techeye.wbj@gmail.com



WBJ #24 2011