WBJ #3 2011

The national bank has raised interest rates due to inflation fears

M&A activity was way up in Q4 and there should be plenty of fusions this year

General crime and road accidents fell last year, but drug-related offenses rose

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4

WWW.WBJ.PL

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VOLUME 17, NUMBER 3 • JANUARY 24-30, 2011 . z∏.12.50 (VAT 8% included) . ISSN 1233 7889 INDEX-RUCH-332-127

Since 1994 . Poland’s only business weekly in English

Winter’s bill

REAL ESTATE

SHUTTERSTOCK

Lokale Immobilia

Every year transportation suffers in the winter months, putting a big chill on the economy. What can be done?

12-13

• Matexi in the market • General contracting alternatives • Ending “Family on its Own” 15-18

Palikot speaks The black sheep of Polish politics plots his second coming and dishes on Jaros∏aw Kaczyƒski’s “political suicide” 8-9

Five-star hotels in Poland 20-21

In this issue

SHUTTERSTOCK

News . . . . . . . . . . . . . . . . . . . . . . .2-4 Industry News . . . . . . . . . . . . . . .5-6 Business Environment . . . . . . . . . .7 Interview . . . . . . . . . . . . . . . . . . . .8-9 Opinion . . . . . . . . . . . . . . . . . . . . . .11 Cover Story . . . . . . . . . . . . . . . .12-13 Lokale Immobilia . . . . . . . . . . .15-18 Markets . . . . . . . . . . . . . . . . . . . . . .19 The List . . . . . . . . . . . . . . . . . . .20-21 Entertainment . . . . . . . . . . . . . . . .22 Last Word . . . . . . . . . . . . . . . . . . . .23

Smolensk blame game

Cranky calls

In the wake of Russia’s report on the Smolensk crash, fingers are pointing in all directions

Yet another court wants Poland’s incumbent telecom, TP, to pay off its f ormer business partner

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NEWS

www.wbj.pl

Defense minister under fire

JANUARY 24-30, 2011

IN THE SPOTLIGHT

The national board of the ruling Civic Platform (PO) has recommended that parliamentary elections scheduled for this year be held on October 23, according to TVN24. The date must still be agreed to by President Bronis∏aw Komorowski, who will formally announce the election date.

Komorowski leads Davos delegation President Bronis∏aw Komorowski will lead the Polish delegation at the World Economic Forum taking place from January 26-30 in Davos, Switzerland. Foreign Minister Rados∏aw Sikorski is expected to accompany him. In Davos Mr Komorowski is scheduled to meet with Ukrainian President Viktor Yanukovych to promote the Euro 2012 soccer championships, which the two nations will co-host in July 2012.

Sources in Russian diplomacy also told the Polish Press Agency that there could be a meeting with Russian President Dmitry Medvedev, who will open this year’s forum.

Production and profit up in Dec

is how much thieves, using stolen IDs, tried to withdraw from Polish banks in 2010

z∏.421 billion

is how much Polish households put in their bank accounts in 2010

57%

of Poles feel that the government’s plan to change the pension system will have a negative impact on future retirees, according to a TNS OBOP survey

z∏.5 billion

EAST NEWS

in revenue was generated by second-hand clothes shops last year

Grzegorz Schetyna, the speaker of the Sejm, last week publicly criticized Prime Minister Donald T usk for what he described as the government’s late reaction to the Interstate Aviation Committee’s report on the Smolensk air crash.

Poland sees the report as onesided.

The criticism has rekindled media speculation that a rift is growing between the two most powerful people in Civic Platform (PO), the majority party in the ruling coalition.

Other voices in PO have quietly said similar things, noting that PM T usk had been slow to return from his vacation in Italy when the report was published.

The party’s frontbenchers quickly denounced Mr Schetyna’s remarks, though. Government spokesperson P awe∏

GraÊ remarked that Mr Schetyna himself had not reacted to the report instantaneously and had not called Mr Tusk to suggest he return to Poland.

The two have long been considered one of the most efficient tandems in Polish politics. Their smooth working relation has even extended to the soccer field, although media wags have wryly pointed out that Mr Schetyna typically passes the ball to his boss, who then scores the goals.

The autumn 2009 gambling scandal tested the Tusk-Schetyna relationship. In the wake of the affair, Mr Schetyna lost his job as interior minister, although he was later appointed to his current position.

More recently some sources suggest that tensions between the two politicians may have

more to do with differing opinions on how the supervisory boards of state-owned companies should be filled.

According to reports, Mr Tusk, at the advice of economic aide Jan Krzysztof Bielecki, would like a special committee to nominate supervisory board members in firms such as KGHM, Orlen, PGNiG, PKO BP and PGE. Currently the treasury minister appoints candidates who pass through a selection process.

Mr Schetyna is reportedly no fan of Mr Bielecki, who is not a member of PO, and is concerned that a revamped selection process could damage the party’s reputation in an election year. Other sources suggest that Mr Schetyna is simply concerned about losing influence.

Adam Zdrodowski

On WBJ.pl Poland’s media – just how free?

Media monitoring groups give conflicting accounts of progress made in Poland towards a greater freedom of the media. WB J.pl sits down with Dominika Bychawska-Siniarska, coordinator of the Observatory for Media Freedom in Poland at the Helsinki Foundation for Human Rights, to get a clearer picture of the challenges facing the Polish media.

DATELINE tainable Relationships. Location: InterContinental Warszawa. www.easteurolink.co.uk/CEEInvestment-and-PPP

FEBRUARY 3 SHOPPING CENTRE FORUM

25-26 ONLINE TRAVEL INDUSTRY CONFERENCE e-Travel Forum 2011 – an annual, international conference dedicated to the issues of online sales of travel products. www.e-travelforum.pl/en/

Event:

INVESTMENT CONFERENCE

CEE Investment and PPP. Developing Sus-

Shopping Center Forum & Awards 2011, Hilton Warsaw Hotel & Convention Centre.

Organizer: BROG Media Biznesu. www.shoppingcenter.pl

15-18 FURNITURE FAIR Event:

JAN 31 – FEB 1

Law and Justice (PiS) leader Jaros∏aw Kaczyƒski lays deaths at Civic Platform's doorstep; he counted the lives of Marek Rosiak, a PiS party aide shot in October, and the 96 killed in the Smolensk crash.

Figures in focus Poland: building a good reputation Annual change in construction output, June-November 2010 Spain 20 15 10 5 0 -5 -10 -15 -20 -25 -30 -35 -40

Romania

June

July

EU27

Aug

Germany

Sept

UK

Oct

Poland

Nov Source: Eurostat

Company index Agros Nova ..................................7 Guangxi Liugong Machinery........6 PB UniMax ................................18 Aster ............................................7 H&M ..........................................17 Pernod Ricard ..............................4 Atelier3 Girtler & Girtler............15 Hochtief Polska..........................15 PGE ..............................................7 Atrium European Real Estate

Home Broker..............................16 PGNiG ..........................................4

Limited ......................................16 Huta Stalowa Wola ......................6 Autoliv ........................................17 IK Investment Partners Limited..7 Aviva Commercial Union ..........18 Ikea ............................................17 AZO ............................................15 Industry Funds Management ......7 Azora Europe..............................15 ING Bank ......................................3 Banco Espirito Santo Polska ......6 ING Nationale Nederlanden ......18

Philip Morris ..............................18 PKO Bank Polski..........................6 PKO Inwestycje ..........................17 PKP Intercity ..............................13 PKP ......................................13, 16

Bank Gospodarki ˚ywnoÊciowej 6 Inpro ..........................................17 PM Group ..................................17 Cadbury Wedel ............................7 Inter Ikea Group Polska ............16 Polkomtel ................................5, 7 CBOS ............................................4 InterRegio ..................................13 Polnord ......................................17

Citibank ........................................6 Itaka..............................................3 PZU ..............................................3 Conject Holdings........................16 ITR Investment Partners ............7 RB Logistics ..............................18

Event:

Event:

“[Civic Platform’s] game has already cost the lives of around 100 people”

Celtic Property Developments ..15 Iron Mountain ............................18 PPL ............................................ 16

JANUARY 21-30 INTERNATIONAL FOOD AND AGRICULTURE FAIR International Green Week Berlin. The world’s biggest fair for food, agriculture and horticulture. Poland is the official partner country in 2011

Quote of the Week

CEE Property Group ............16, 17 Ipopema Securities....................18 Polska Telefonia Cyfrowa ............5

January/February Event:

Industrial production in December 2010 was 11.5% higher than a year before, according to the Central Statistical Office (GUS). Meanwhile the highest profits were recorded by companies in the computer, energy and optical industries (30.5%), metal products manufactures (27%) and electrical equipment producers (23.2%). ●

z∏.485 million

Donald Tusk and Grzegorz Schetyna

The opposition Law and Justice (PiS) party filed a motion last week to initiate a no-confidence vote against Defense Minister Bogdan Klich.

PiS argues that Mr Klich has done his job poorly, and that under his watch four airplane accidents have occurred, in which a total of 121 people died.

The most significant of these was the April 10 tragedy at Smolensk, in which 96 people died.

Parliamentary elections on October 23?

Numbers in the News

MEBLE POLSKA Furniture Fair. Poznan International Fair. http://meble.mtp.pl/en/

Cushman & Wakefield ........16, 18 Kardan ........................................18 Regional Transport ....................13 Cyfrowy Polsat ............................7 KBC Securities ..........................18 Sjaelso Poland ..........................17 Dalkia International ....................7 Kimberly-Clark ..........................18 Skidmore, Owings Dalkia Polska ..............................7 Knight Frank ..............................15 & Merrill ....................................15 Danske Bank................................3 Kraft Foods ..................................7 Studio Buffo ..............................22 DAP architectural studio ..........18 Kristensen Group ......................17 Tauron ..........................................3 Deutsche Telekom ......................5 LHI Leasing Polska....................15 Diageo ..........................................4 Liberty Global ..............................7 Tauron Polska Energia ................7 Dom Development ....................15 Lotte Co ........................................7 Teatr Dramatyczny ....................22 Dom Towarowy Bracia Lubelski W´giel Bogdanka ..........7 Telekomunikacja Polska..............5 Jab∏kowscy ................................15 Marks & Spencer ......................16 Telewizja Polsat ..........................7 DPTG ............................................5 Matexi ........................................15 Telewizja Polska ..........................6 DTZ ............................................16 Matexi Polska ............................15 Tiltra Group ..................................7 Dutch Rabobank ..........................6 Mergermarket..............................7 TNS OBOP ....................................2 Elektrim........................................5 Mid Europa Partners LLP ..........7 Trakcja Polska..............................7 Emperia Holding ..........................7 Morgan Stanley ..........................18 TVN ..............................................6 Energa ..........................................7 MPGA..........................................15 UBS ..............................................6 Epstein........................................15 Multikino ....................................16 UniCredit CAIB Poland ..............18 Eurocash ......................................7 National Bank of Poland ............9 Van Graaf....................................16 France Telecom............................5 NBP ..............................................3 Gant Development ....................17 Neckermann ................................3 Vivendi ..........................................5 Globe Trade Center....................18 New World Resources ................7 Vodafone ......................................5 GN Store Nord ............................5 Nordea Bank ................................3 Warsaw Stock Exchange ......3, 18 GTC Real Estate Holding ..........18 Parkridge Retail Development ..17 World Bank ..................................7

NEWS

JANUARY 24-30, 2011

www.wbj.pl

Smolensk catastrophe

Poles return from Tunisia

War of words Fateful conversations In response to the report, Poland’s investigative team, led by Interior Minister Jerzy Miller, released partial records of the communication between the Russian air-traffic controllers in Smolensk and the Polish crew of the Tu-154.

The recording illustrates that the control tower failed to react when the plane went off course and that the flight crew was given inaccurate weather reports, leaving them unsure of how poor the conditions were in Smolensk. And in one part of the recording, the Poles claim, the air-traffic controllers receive instructions from Moscow to let the plane attempt to land despite visibility being below the minimum safety threshold.

The main opposition party, Law and Justice (PiS), wasted no time in lambasting the PM for allowing the Smolensk investigation to go awry. It was he, they argued, that wasn’t strong enough in the days following the accident and he who allowed the Russians full control of the investigation.

Addressing parliament, the PM defended his govern-

Speaking before parliament last week, Prime Minister Donald Tusk defended his government’s reaction to the Smolensk catastrophe. But emotions ran high and the occasion degenerated into a war of words, with the PM being labeled everything from a traitor to a man bereft of honor.

Since the publication of the Interstate A viation Commission’s (MAK) report on the causes of last April’s plane crash, the atmosphere in P olish politics has been tense.

The report lays the blame for the tragedy squarely on pilot error – which, in principle, much of P oland seems to accept – but there is almost no mention of the influence of Russian air-traffic controllers and the squalid infrastructure of the Smolensk airport. This omission has generated much controversy in P oland, as has the report’s claim that General Andrzej B∏asik, the late chief of air staff, had been in the cockpit under the influence of alcohol at the time of the crash.

ment’s response to the Smolensk catastrophe.

“We had to, in express mode, take decisions which would give us the possibility of winning the truth about the catastrophe. The second task ... was how to deal with the situation at the same time,taking into account P olish national interests, P olish security, Poland’s international status and thus ... win the truth and win peace, which is invaluable for P oland because of the neighborhood in which P oles live,” said Mr Tusk.

He said he and his government had been aware that Russia was “a difficult partner,” but had decided “not to focus on how bad a partner it is.” Instead, rather than provoking a confrontation, the government had tried to maximize its ability to document the “full truth” of the catastrophe.

His speech in parliament was interrupted several times by cries of “shame, shame” and “traitor, traitor.”

Heads to roll?

The opposition’s response was incendiary.

“Don’t scare us with war. In

Polish-Belarusian relations

Mr Tusk was called a “traitor” in parliament last week politics it’s not the case that if you are tough and decided, especially in these kinds of cases, you lose. No, you win.

And we are not under the threat of any war,” replied Jaros∏aw Kaczyƒski, head of PiS and twin of late President Lech Kaczyƒski, who perished in the crash.

“From the point of view of European regulations, MAK is an institution whose reports can only be laughed at,” Mr Kaczyƒski said, adding that the Polish investigation had dis-

credited the MAK report “100 percent.”

Mariusz Kamiƒski, another PiS politician castigating the prime minister, said, “ A man dishonored is worse than dead.”

The full version of Poland’s report on the Smolensk catastrophe should be ready in February and there’s speculation that heads may roll after its publication, including that of Defense Minister Bogdan Klich.

Remi Adekoya

Poland decides to raise rates on inflation fears

The country has accused Poland of rabble rousing

COURTESY OF THE COUNCIL OF THE EUROPEAN UNION

Further hikes are forecast this year

Ms Ashton has declared it is “time to act” on Belarus from W estern nations, Mr Lukashenko said he intended to protect Belarus, “from intrigues both external and internal.”

Poland has led the way in reacting to post-election repression and violence in Belarus, unilaterally imposing a travel ban on Belarusian officials and announcing measures to support civil society.

“The register is already operational,” Foreign Ministry spokesperson Marcin Bosacki commented.

For its part, the European Union and its individual

Cyberattacks on emissions registers

Interest rates

Belarus cries foul

Belarus has accused P oland and Germany of organizing protests following the country’s December 19 presidential election in which Alexander Lukashenko secured a landslide victory. The election was roundly criticized in the European press.

Following the election, which international observers condemned, thousands of people took to the streets in Minsk. Over 600 people were jailed in a violent crackdown and while many have been released, as many as 30 could still face serious prison sentences.

Sovetskaya Belarus – whose editor-in-chief was appointed by the government – argued that the protests were organized by P olish and German special services, with Belarusian activists prepared at special training camps in Poland.

Both countries have denied the allegations, which the Polish F oreign Ministry called “absurd.”

Sworn in last Friday for its fourth term in a ceremony boycotted by ambassadors

The last group of Polish tourists returned from Tunisia last week, after being stranded by a violent regime change.

Approximately 300 Polish tourists were estimated to have been vacationing there when the troubles kicked off. For travel companies such as Neckermann and Itaka, travel to Tunisia will be suspended until new elections take place.

COURTESY OF KPRM

The fallout from the Russian Smolensk report has put the PM on the defensive

members have chosen to wait to decide on a common position, expected on January 31.

But last week, MEPs in the European Parliament and EU foreign policy chief Catherine Ashton seemed to align their position with Poland’s.

They appealed for a firm and prompt reaction, including many of the steps taken by Poland.

“The events which followed the elections in Belarus on December 19 have come as a shock to all of us,” declared Ms Ashton. “The time has come to act.”

Alice Trudelle

3

Poland’s Monetary P olicy Council (RPP) raised its reference interest rate by 25 basis points to 3.75 percent last week. The move was widely expected.

Despite the recent strengthening of the z∏oty, the expansion of P oland’s economy has pushed inflation figures above the central bank’s target.

“The inflation rise was accompanied by an increase in inflation expectations,” the RPP wrote in a report explaining its rate hike decision.

“The acceleration of economic growth in P oland supporting the improvement in the labor market may lead to a gradual rise in wage and inflationary pressure in the medium term,” the council explained.

The RPP also argued that surges in commodity prices, coupled with a general global recovery, were stoking inflationary pressures.

More hikes are expected to follow.

“I wouldn’t interpret today’s decision as a one-time

adjustment,” Mr Belka told reporters at a conference after the hike was announced.

ING Bank said in a report that it expects a 25-bp hike in March followed by another 25 bp in Q2 and again in Q3.

Danske Bank, however, expects cumulative hikes over the year to reach only 75 bp, while Nordea Bank forecasts 125 bp.

Prior to last week’s decision, many members of the RPP had publicly stated that the z∏oty needed to be supported with rate hikes in anticipation of further weakening of the euro later this year.

NBP head Marek Belka had said the z∏oty needed to be “helped on its way up.”

Although no mention was made of exchange rates in the RPP’s official rate-hike communique, the potential for the z∏oty to appreciate further was mentioned at the conference.

“If this potential materializes, it would constitute a monetary tightening factor. This seems to suggest a direct link between PLN appreciation and the speed of tightening,” ING wrote.

Andrew Kureth, Gareth Price

Following an order by the European Commission last Wednesday, CO2 emissions trading in Europe has been suspended until January 26. This was in response to several cyberattacks aimed at CO 2 emissions registers, among them Poland’s. Hackers managed to crack the security codes to the registers and subsequently stole and sold emission rights.

John Paul II’s beatification Over two million people are expected to attend the beatification ceremony of the late Polish pope, John Paul II, in Rome on May 1.

Preparations for the ceremony began shortly after Pope Benedict XVI formally approved a miracle attributed to his late predecessor. The Vatican credits him with the cure of French nun Marie Simon-Pierre Normand, who was said to have had Parkinson’s Disease.

Blockbuster débutantes disappoint The three most highprofile market débutantes of 2010 – PZU, Tauron and the WSE – are not making much money for investors. As Warsaw Business Journal went to press, only shares in energy giant Tauron were worth more than they were when they entered the market. According to analysts, a big discount on PZU stock – which has dropped from over z∏.400 to z∏.348 – is due to the risk that the Treasury might sell off a large stake in the insurer. ●

4

NEWS

www.wbj.pl

PGNiG to spend z∏.1 bln on research Polish gas monopolist PGNiG intends to spend z∏.600 million to z∏.650 million annually until 2015 on researching gas and oil deposits in Poland, Dziennik Gazeta Prawna reported.

Another z∏.300 million to z∏.500 million will be invested in research abroad. The company’s board also estimated its planned output for the years ahead. PGNiG plans to tap around 4.4 billion cubic meters of natural gas this year and 4.7 billion cubic meters in 2012.

Ballantine’s claims top spot The mighty Johnnie Walker Red brand is no longer the top whiskey in Poland. The market leader has been toppled by its largest rival, Pernod Ricard’s Ballantine’s, Rzeczpospolita reported.

According to the latest Nielsen ratings, Ballantine’s Finest has taken the top spot in the market, with 23.3% of market share for 2010, up from 14.2% a year earlier. Johnnie Walker Red has now dropped to the number two spot in the sector. Its parent firm, Diageo, remains the world’s largest producer of whiskey.

Cash to be phased out?

The Finance Ministry is considering introducing a three-year plan that will see the proportion of electronic payments increase from currently approximately 9% of all transactions to just over half. The government is concerned by the costs associated with physical cash. Dominika Duziak, from the Polish Bank Association, who helped the government to draw up the plan, told TVP, “The purpose of all these actions is to lower the cost of the circulation of cash in the country.” ●

JANUARY 24-30, 2011

Media freedom

Hungary makes waves, Poland bites its tongue Hungary’s controversial media law is under fire, but Poland isn’t saying much Criticism over the Hungarian government’s tightening grip on the media is casting an ever longer shadow over the country’s presidency of the EU Council. Hungarian P rime Minister Viktor Orbán’s presentation of his country’s program for the presidency last week in Strasbourg was disrupted by MEP s calling on him to rapidly amend the contentious new law.

At stake is the creation of a new media council run by the government’s allies, with the power to impose high fines on material judged “unbalanced,” or for violating ill-defined “human dignity.”

International media expert Karol Jakubowicz, in an analysis of the Hungarian legislation commissioned by the OSCE, said that it “exceeds what is justified and necessary

Mostly free?

Poland’s score in Freedom House’s “Independent Media Score”

Poland’s ranking in Reporters without Borders’

(1 represents the highest level of democratic progress and 7 the lowest)

“Press Freedom Index” (1 is best)

2002

1.5

2002

30

2003

1.75

2003

33

2004

1.75

2004

32

2005

1.5

2005

55

2006

1.75

2006

60

2007

2.25

2007

57

2008

2.25

2008

48

2009

2.0

2009

37

2010

2.25

2010

32 Source: Reporters without Borders

Source: Freedom House, Nations in Transit

in a democratic society” and “is cause for very serious concern.”

Poland’s strategy so far has been to wait for the European Commission’s official analysis.

In a recent interview with the EU Observer web site, Mikolaj Dowgielewicz, secretary of state for European affairs in the Ministry of F oreign Affairs, even seemed to side with Hungary against more vocal critics like F rance and the United Kingdom.

“Mr Orbán … is a very experienced politician and I

have absolutely no doubt about his commitment to the European idea,” Mr Dowgielewicz said. “Sometimes there is a bit of a condescending attitude in some of the member states,” he added.

Not much better in Poland?

Experts agree that the relationship between democracy and the media in the CEE, which both emerged in a period of rapid and often chaotic reform, is poorly understood by older European democracies.

This is exactly why Poland, which also has a lot of work to do regarding freedom of the media, should now be assisting the EU to analyze the situation in Hungary, argues the Helsinki F oundation for Human Rights (HFHR).

According to R eporters without Borders’ annual Press Freedom Index, the situation in P oland is steadily improving. But democracy and human-rights advocacy group Freedom House’s Independent Media ranking suggests the contrary.

Dominika Bychawska-Siniarska, coordinator of the Observatory for Media F reedom in Poland at HFHR, was also not optimistic.

Although its power is not as far-reaching as it is now in Hungary, the P olish broadcasting authority can also fine the media for many unclear reasons, she explained. And the P olish P ress L aw, which dates from 1984, still burdens journalists and publishers with heavy criminal responsibility.

According to her, media freedom in P oland is not significantly greater than in Hungary.

“Poland has unofficially assigned itself a leadership role in the CEE, but we need to look at ourselves and our own efforts towards democratizing our institutions,” she said.

Alice Trudelle

To read WBJ’s full interview with Dominika BychawskaSiniarska on the state of the media in Poland, log on to WBJ.pl

Crime in 2010

Police stats show safety in numbers

According to preliminary figures, crime and road accidents fell last year Poland was safer last year, both on the streets and along the sidewalks, according to figures just released by the Polish National Police. White-collar and drug-related incidents were up slightly, but crime on the whole was down.

Fewer car accidents also took place, with fewer killed or injured on Poland’s roads.

The police have hailed this as a major success. “The biggest challenge was maintaining the trend of reducing crime,” Andrzej Matejuk, head of the P olish National Police, told the press. This is, he said, because crime has already fallen significantly over the last few years.

Overall reports of crime fell by three percent y/y in 2010, to 964,614. That’s down over 25 percent since 2004, the year which saw the highest crime figures in the last decade.

Meanwhile, police efficiency in finding perpetrators amounted to 68.3 percent, up 1.2 percent y/y. That rate – which is admittedly selfreported by the police – has risen steadily since 2000, when it amounted to 47.8 percent.

A total of 702 murders were reported last year in Poland, down 7.2 percent.

Police efficiency in solving

murders amounted to 92.3 percent, although 2010 was the third consecutive year in which this measure fell slightly.

White-collar and drugrelated crimes were up by 0.9 and 2.8 percent, respectively.

The police destroyed 13 narcotics labs and 61 marijuana “plantations,” and confiscated 1.22 metric tons of narcotics.

In terms of road safety,

Poland bore witness to less tragedy than in recent years.

However, the figures quoted by the police are for the JanNov period, and may yet rise.

According to the available data, road accidents look to be down significantly with around 670 fewer fatalities and thousands fewer injured.

Happily for the police, falling crime rates and improved

road safety seem to be paying off. According to a survey conducted last September by CBOS, 71 percent of those polled thought that Poland’s law enforcement officials were doing a good job. Other organizations were less well regarded, such as the Catholic Church (54 percent approval), Senate (29 percent) and Sejm (27 percent).

E Blake Berry

Braking the good news

Bloody good progress

Motor deaths in Poland, 2001-2010

Murders reported and percentage of cases solved, 2000-2010

6,000

1,200 *Jan-Nov

100% Murders reported

% cases solved

1,100

95%

1,000

90%

900

85%

800

80%

700

75%

5,250

4,500

3,750

3,000

600 2001

2002

2003

2004

2005

2006

2007

2008

2009 2010*

Source: Polish National Police

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

70%

Source: Polish National Police

INDUSTRY NEWS

JANUARY 24-30, 2011

Telecoms

www.wbj.pl

5

Mobile telephony

TP claimant takes fight to Britain DT takes over control of PTC

The UK’s High Court of Justice has issued an order of enforcement which could force Telekomunikacja Polska (TP) to use revenues from its UK contracts to pay a substantial amount of money to Danish headset and hearing-aid producer GN Store Nord.

The Danish entity is attempting to recoup around DKK2.9 billion (€389 million) in earnings which an Austrian arbitration court ruled it was owed by TP. The company has also initiated similar enforcement proceedings in Germany, Poland and the Netherlands.

The two firms have been involved in a long-running dispute concerning a fiber-optic network built and partly financed by DPTG, a subsidiary of GN Store Nord, for TP’s predecessor, P olish Post, Telegraph and T elephone. In return for its investment, DPTG was due to receive revenues from the network, but it fell out with TP over how traffic volumes should be calculated.

COURTESY OF TP

A UK court says TP should use earnings from its British contracts to pay the Danish firm

TP may be forced to hand over €389 million In September 2001, DPTG took its claim for unpaid earnings to an arbitration court in Vienna, which awarded it DKK2 billion and a further DKK9 billion in unpaid interest.

TP refused to pay up, arguing that the amount was out of proportion to the value of the original contract. TP then appealed the decision, citing procedural flaws.

“We regard the initiation

of enforcement proceedings against TP in Great Britain

by DPTG to be another unjustified attempt to put pressure on TP in regards to a dispute, which is the subject of two court cases – in Poland and Austria,” TP wrote in a statement regarding DPTG’s latest attempts to enforce its claim.

It continued, “W e believe that attempts to exert pressure on TP ... are aimed at attacking the good image of the company, since TP does not have any subsidiaries in the UK whose assets could be seized.”

According to the UK court, however, TP does have earnings from the country.

Meanwhile, GN Store Nord responded in a statement, saying that TP “is adding further costs to themselves and their shareholders, more specifically around half a million Danish kroner a day in interest.”

TP recently lost a second ruling for a further DKK2.4 billion ( €322 million) in unpaid earnings.

The company has set aside z∏.2.2 billion ( €566 million) to cover its losses, a fact which analysts say could severely impact its earnings in coming quarters.

Alexander Hayes

The transaction marks the beginning of the end of Era

German telecoms group Deutsche Telekom (DT) finalized transactions with Poland’s Elektrim and French conglomerate Vivendi in mid-January.

It has thus officially become the exclusive owner of mobile telephony provider P olska Telefonia Cyfrowa (PTC), which operates the Era brand.

DT transferred a total of €1.4 billion to the two groups, equivalent to 51 percent of PTC’s total share capital. The transaction marked the official end to a long-running legal dispute between the parties over PTC’s share capital ownership.

PTC’s new president, Miroslav Rakowski, said in an interview with daily Parkiet that the agreement will allow PTC to make improvements to its mobile phone network, Era. “Era will become similar to Deutsche T elekom’s other operators: agile, fast and progressive,” he said.

In the process, certain structural and branding changes will take place. F or

example, the color of Era’s logo will be changed from blue to magenta, which is not coincidentally the shade used by DT’s T-Mobile brand.

Asked by various media outlets about rebranding Era, Mr Rakowski has noted that it is simply a matter of time before it happens, but that it is unlikely in Q1.

As for its immediate strategy, PTC is not planning to cut prices in its fight for clients, preferring to balance pricing and quality. The company’s main selling point will be the wide range of services it offers, which will include digital, satellite, mobile telephony and television.

Improvements will also be made to the company’s international calling services.

The majority of P oland’s mobile telephone market is now under the control of three big European players: France Telecom (the Orange brand), Deutsche Telekom (Era) and the UK’s V odafone. The latter, however, is looking to sell its stake in P oland’s largest mobile telecom, P olkomtel, operator of the Plus brand.

Katarzyna Piasecka

6

INDUSTRY NEWS

www.wbj.pl

JANUARY 24-30, 2011

Construction privatization

Food export

Green ambitions for Polish food Poland, China sign preliminary

Let them eat Polish Biggest export markets for Polish agri-food products, January-September 2010 Country

Value (€ million)

Germany

2,111

United Kingdom

671

France

598.8

Italy

656

Netherlands

555

Russian Federation

548

EU27

7,620

Total

9,693 Source: Agriculture Ministry

around Poland’s most attractive regions, where people still live in harmony with nature and where they still prefer traditional foods,” Agriculture Minister Marek Sawicki commented in regards to the event.

Considering the dominance of EU countries in general and Germany in particular as markets for Polish agrifood exports, a positive response to P olish efforts at this year’s fair could provide substantial results for exporters.

According to the Agriculture Ministry’s most recent figures, between January and September 2010, the European Union was the destination for almost 80 percent (€7.62 billion) of the total value of agri-food exports.

Exports to Germany alone represented around a quarter (€2.1 billion) of the total value of exports to the EU. “Germany is our largest trading partner,” said Mr Sawicki. “Surely we have not reached the peak of our abilities and this mutually beneficial exchange can still grow and develop,” he added.

Alice Trudelle

Citi and UBS chosen to coordinate BG˚ sale for Polish Treasury in 2011 Poland’s T reasury Ministry revealed last week that it has chosen investment banks UBS and Citibank to serve as global coordinators for the sale of its stake in Bank Gospodarki ˚ywnoÊciowej (BG˚).

Poland will float its 37 per-

cent stake in the bank at the end of H1 2011, the Treasury wrote in a statement.

PKO Bank P olski and Banco Espirito Santo P olska will be the domestic bookrunners.

The T reasury made the decision to float its stake in

BG˚ after failing to sell it to Dutch R abobank, which already has a 59 percent stake in the Polish bank.

Analysts contacted by Reuters valued BG˚’s initial public offering at around z∏.1 billion.

Katarzyna Piasecka

legal news Sending e-invoices On January 1, 2011, new provisions for einvoices came into force. Invoices may now be sent in any electronic form (e.g. .doc, .pdf or other) provided that the form of e-invoice has been accepted by the intended recipient and provided that the origin and integrity of the einvoice’s contents are ensured.

New rules for dividend payouts Of the several changes recently made to Poland’s tax acts, it is worth mentioning that since January 1, new rules apply to the taxation of dividends paid by foreign and domestic companies.

Further conditions must now be fulfilled in order to qualify for tax exemption at source, namely: 1) the company which receives the income must not benefit from total income tax exemption on its income, irrespective of the income’s source; 2) ownership of shares

should generally result from an ownership title. Moreover, parties paying the dividend must receive a statement from the dividend recipient which confirms that the entity in question fulfills the conditions for tax exemption.

Trial period for young drivers At the beginning of January, parliament adopted an act on drivers. Among other things, the act introduces an additional twoyear trial period for persons who have obtained a B-category driving licence for the first time. During that period young drivers will be subject to extensive supervision. Other countries which have a trial period for young drivers include Norway, Finland, Sweden, France, Germany and the UK. The act will become binding one year after it is signed by the president and officially announced.

Compiled by Peter Nielsen & Partners Law Office Contact: Miros∏aw Stefanik, ms@pnplaw.pl

sale agreement for HSW division A Chinese manufacturing firm has been penciled in to buy Huta Stalowa Wola’s civil equipment assets Chinese construction equipment manufacturer Guangxi Liugong Machinery last week signed a preliminary agreement to buy P olish stateowned manufacturer Huta Stalowa W ola’s (HSW) civil equipment arm.

At a meeting held in Beijing last Tuesday, representatives of the two companies agreed on the transaction price, along with other important conditions, the T reasury

wrote in a statement. The exact value of the deal was not revealed, however.

The preliminary agreement has opened the door for further negotiations which should lead to a final agreement, HSW wrote on its website. This is expected to be completed within the next few months.

In a joint statement, HSW and LiuGong said that the sale would be in line with the Chinese company’s aim of establishing a P olish production and distribution center from which it could supply equipment to Europe, North America and the Commonwealth of Independent States.

LiuGong also intends to

increase the efficiency of the Polish assets.

The process of privatizing HSW’s civil equipment arm began in January last year. In November, both parties signed an agreement of intent.

HSW also has a military equipment production arm, although there are no plans to privatize it.

Polish T reasury Minister Aleksander Grad attended the Beijing meeting, along with the director of the Chinese Ministry of Industry and Information, Zhang Xiangmu, the chairman of the board of directors at Liugong, W ang Xiaohua, and the president of HSW, Krzysztof Trofniak.

Katarzyna Piasecka

The Chinese hope to export Polish-made civil equipment

TVP to take on private broadcasters Public television broadcaster Telewizja P olska (TVP) said last week that it wants to increase its commercial activities so that it can fund its broadcasting mission.

The strategy will put the broadcaster in direct competition with private stations in the fight for advertising.

TVP had already branched out into commercial television in order to help it recoup its 2009 losses, which amounted to over z∏.200 million. The company had to make the move to save itself from going under, TVP board member Pawe∏ P aluch told daily Puls Biznesu.

But the change in direction also seems to have struck a chord with management, which now sees it as part of a longer term strategy.

Mr P aluch said that the company intends to continue benefiting from advertising to maintain a strong position in the market, and promised that the additional revenues generated will be invested in the company’s broadcasting mission.

“The most expensive programs allowed us to gain the most revenues,” Mr P aluch said.

There will be more documentaries and feature films and more children’s programming. TVP will also present TV theater premieres each month. Nevertheless, primetime slots will still be reserved for high-profit broadcasts, such as the popular comedy series “Ranczo.”

COURTESY OF WIKIMEDIA COMMONS

The Ministry of Agriculture expects 2011 to be crucial for two reasons: the Polish chairmanship of the EU Council and P oland’s role as partner country of the 2011 International Green W eek in Berlin (IGW).

The latter event, which started last F riday and runs until Sunday, January 30, is described by its organizers as the world’s biggest fair for food, agriculture and horticul-

ture. Half a million attendees are expected this year and Poland – and by extension, Polish food – will be part of all promotional activities.

For Polish agri-food products, this represents a huge PR opportunity. “Our presence as partner country will not only generate interest for P oland and P olish high-quality food among the German public and in the German media, but will also trigger a wide, international [ripple effect],” a spokesperson for the Agriculture Ministry predicted.

For the occasion, P oland has prepared, “An invitation to a culinary journey of discovery

COURTESY OF WIKIMEDIA COMMONS

Poland’s participation to the 2011 International Green Week will have broad repercussions, officials say

Television station TVP1 will take a more national and public direction, while TVP2 is to become more easy-going and entertaining. The latter will compete directly with private broadcaster TVN. TVP Info, meanwhile, has news broadcaster TVN24 in its sights.

MCO, GP

TVP will compete with TVN for advertising revenue

BUSINESS ENVIRONMENT

JANUARY 24-30, 2011

M&A in 2010

Fourth-quarter flood

Poland saw healthy M&A activity last year and the trend should continue in 2011

Buyers' markets Number of M&A deals valued at over $5 million, 2005-2010

Bulgaria

More M&A deals were announced in P oland in the last quarter of 2010 than in any other quarter in the last six years. The value of deals announced amounted to about $4.27 billion, a figure bettered only by the mammoth $8.63 billion seen in Q4 2006.

These data, provided by M&A intelligence provider Mergermarket, illustrate the pace at which the Polish economy picked up last year. The first quarter saw modest activity, with 28 deal announcements (collectively valued at $28 million), while the final quarter had 48. Other markets in the region, such as R ussia, Bulgaria or Ukraine, saw greater fluctuation in both the number and value of deals in 2010.

PGE’s planned $2.49 billion acquisition of Energa was the largest tie-up contracted in Poland last year, although the competition watchdog’s stamp of disapproval has called it into question. The sale of national broadcaster Telewizja Polsat to digital TV provider Cyfrowy

Ukraine

Poland

Russia

350 300 250 200 150 100 50 0

2005

2006

2007

2008

2009

2010

Source: Mergermarket

Polsat was the second largest deal. One of the sellers, Polish media mogul Zygmunt Solorz˚ak, is expected to reinvest his profit in an attempt to purchase mobile telecom operator Polkomtel this year.

Poland’s upward M&A trend is likely to remain positive in 2011, according to Mergermarket.

“Valuations are likely to remain on the high side, compared to other countries of the CEE region and to much of Western Europe, precisely because of the (relatively) easy money offered by the capital markets,” said Jurek Maczynski, a financial journalist at

Mergermarket. He noted, however, that the IPO market will offer “stiff competition” for the traditional mergers and acquisitions business.

And which areas of the economy will see the most consolidation?

“Sectors that are expected to see above-average activity include all things medical, telecoms, the food sector, FMCG retailers and wholesale distributors. Judging by the signals flowing from bankers and other sources, P oland could also see an uptick in activity in the packaging industry,” Mr Maczynski said.

E Blake Berry

Headline makers Top 10 M&A deals announced in Poland in 2010, by value (lapsed deals in bold) Target 1. Energa* (84.19%) 2. Telewizja Polsat 3.

4.

5.

6.

7.

8.

9.

10.

Lubelski W´giel Bogdanka Aster Tauron Polska Energia (9.31%) Emperia Holding Dalkia Polska (40%) Agros Nova (99%) Tiltra Group Cadbury Wedel

Bidder Polska Grupa Energetyczna Cyfrowy Polsat New World Resources Liberty Global Treasury Ministry of Poland Eurocash Industry Funds Management IK Investment Partners Limited Trakcja Polska Lotte Co

Seller Deal value ($ millions) Treasury Ministry of Poland 2,491 Zygmunt Solorz-˚ak (private investor); 1,253 Heronim Ruta (private investor) – 1,102 Mid Europa Partners LLP 792 – 599 – 562 Dalkia International 520 ITR Investment Partners 300 – 268 Kraft Foods 246

* Currently on hold Source: Mergermarket

World Bank: Polish exports and consumption to grow Poland and other developing countries are responsible for almost half of global growth in the post-recession period, says the World Bank. According to its Global Economic Prospects 2011 report, the world economy is currently moving from a post-crisis bounce-back phase of recovery to a period of slower, but still solid, growth.

This year, the World Bank expects the global economy to expand by 3.3 percent and by 3.6 percent in 2012. The global growth rate in 2010 was 3.9 percent.

Poland, on the other hand, is expected to outperform the worldwide average.

The W orld Bank predicts Poland will end 2011 with 4.1 percent growth and 2012 with 4.5 percent growth, as it builds off its strong performance during the global economic crisis, when it was the only EU country not to fall into recession.

“Poland handled the crisis better than other European and central Asian countries, and so its rebound is less drastic,” said Andrew Burns, senior economist at the W orld Bank at the unveiling of the report.

The report’s authors are optimistic about P oland’s future growth because they expect private consumption to

increase alongside export levels. They also point out that Poland’s real effective exchange rate is significantly below pre-crisis levels – down 12.4 percent from August 2008 to November 2010. This has provided a boost to P oland’s export competitiveness.

Meanwhile, developing countries in general are estimated to have grown by a combined seven percent in 2010, with expectations for 2011 and 2012 standing at 6.0 and 6.1 percent, respectively.

In comparison, high-income countries are expected to grow at a rate of 2.4 and 2.7 percent in 2011 and 2012.

Remi Adekoya

www.wbj.pl

7

8

INTERVIEW

www.wbj.pl

JANUARY 24-30, 2011

Politics

The man behind the Movement

Janusz Palikot, one of Poland’s most colorful and controversial politicians, talks with WBJ about his political ambitions Ewa Boniecka: How do you react to other politicians, the majority of commentators and the findings of opinion polls, which say that your party, Movement of Support, has no chance to become a meaningful force in politics?

Janusz P alikot: I think that this is the casting of a spell over reality, pushing away the real problems which I am bringing to light. They try to say that whatever I do does not exist, because the establishment wants to evade my efforts to bring new quality to Polish politics. All those politicians and right-wing commentators believe that if they keep repeating over and over that I do not have a chance, then I will not have one.

But [the situation] is otherwise and the opinion polls are wrong, as they were when they gave PSL [the P olish

People’s Party] little chance in the local elections – the party obtained nearly 15 percent of the vote and overtook SLD [the Democratic L eft Alliance]. So I am certain that my party will succeed and enter parliament in this year’s elections.

You are a well-recognized political figure, yet one seen as highly controversial and eccentric due to your clowning around during your membership in Civic Platform [PO]. So how will you build the new party on your own?

I strongly protest against saying that I am on my own. The Movement of Support involves 10,000 people – they will form my party. I have traveled across Poland, meeting and discussing with a lot of people in large and tiny places, and I am building the party from the bottom up and not by making a new political puzzle from the top. I do not see any sense in gathering together, in this new party, the same faces who have played around in politics for 20 years, who are used up and not fit to implement changes in the country.

We are an anti-establishment party with new people, and I treat the Movement of Support as a gathering of citizens who want to break up Poland’s frozen politics. I meet huge groups of people who are dissatisfied with the present political and social situation in the country and feel that they are not repre-

to name a role model for my leadership I would name Tony Blair in Britain, who during his time as leader shaped the Labor P arty as a modern party of the left with strong elements of economic liberalism.

The Movement of Support will link leftist views on ethical matters like in vitro fertil-

“I am certain that my party will succeed and enter parliament in this year ’s elections” sented at all in parliament and political life. My Movement already has infrastructure in a few dozen cities and in February there will be elections in more than 40 of our electoral constituencies. Later there will be a party convention under my leadership and the election of an executive board.

How would you characterize the Movement of Support, ideologically speaking?

The Movement is of liberalleftist orientation and if I had

ization, abortion, the protection of sexual minorities and women’s rights with strong support for a liberal economy with all its consequences, such as the introduction of a flat rate for corporate, personal and value-added tax.

The left’s ethical postulates are proclaimed by SLD and a liberal economy is the cornerstone of PO’s program – so is there anything new about your party’s ideology?

What’s new is my will to change the status quo in

Poland in all domains: policy, economy, education, attitude towards the army, and relations between the state and the Church. And to proceed with this without political hypocrisy.

While leftist postulates have always been proclaimed

by SLD, they were not realized when that party was in power. In 2001, SLD won an election promising the liquidation of the Church Assets Commission [ a controversial commission charged with recovering lost Church property – ed. ] and the withdrawal of religion from school, yet it did nothing, so they are not credible.

And Civic Platform and Prime Minister Tusk have disappointed me and many other people by abandoning political ambition and lacking the will to make changes in the country. His talk of warm water in the faucet [ a metaphor for politics aimed at maintaining the status quo – ed.] is not a political program for one of the biggest European countries. It needs more than self-administrating government, which has become Donald Tusk’s specialty.

From which party do you expect to take more voters – PO or SLD? In my opinion, the biggest group of people who will vote for us will be those who previously voted for PO when it was generally liberal and less conservative; the secondlargest group will be voters taken from SLD. But above all I am counting on reaching a new group of voters, especially 20- to 30year-olds, and even younger people who will have the vote for the first time in the coming election. I think that my Movement of Support will be the party of first choice for people of the younger generation, because they are fed up with the present fossilized politics with its outdated messages. During my meetings with them I hear that they want to live without national neuroses in a society which is open to the future and unburdened by the past.

With harsh attacks on the government and Prime Minister Donald Tusk, you have positioned your Movement of Support as hard opposition.

So you are taking the same

coming in february

2011

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INTERVIEW

JANUARY 24-30, 2011

there would not have been a tragedy at Smolensk if P resident L ech Kaczyƒski had not insisted on flying there. [Unlike PM T usk, he had not been expressly invited to commemorate the Katyƒ massacre – ed.]

line as the other newcomer in politics, PJN [Poland Comes First]?

My Movement of Support is in opposition regarding the government, but from a different direction than PJN. [Joanna] Kluzik-R ostkowska’s party is just PiS [Law and Justice] light and it attacks the government from the right, while I am doing it from a left-liberal position.

I would also ask where the leaders of PJN were when Jaros∏aw Kaczyƒski, as prime minister, and Zbigniew Ziobro, as justice minister, were conducting their policy of abuse and witch-hunts, which led to the tragic death of former leftist MP , Barbara Blida? They did not dissociate themselves from PiS’s policies and they stayed in the party until Kaczyƒski threw them out of it. So what they need to do now is to show penance for their support of Jaros∏aw Kaczyƒski, because it is not enough to smile and look pretty and pretend they have a clear conscience. They do not and it is a political burden which makes them unreliable.

Do you think that your sharp anti-Church stance and attacks on certain Catholic bishops will bring you support among Poles?

I am only reminding everybody that, according to its constitution, Poland is a secular state and the division between Church and state should be

What will you do if the Movement of Support does not get the five percent of votes needed to enter parliament? Will you keep the party afloat?

First of all, this is a social movement and not my toy.

Second, our aim is not only to win in the parliamentary elections, but to begin the process of changing Polish politics. So even if it turns out that we don’t enter parliament in this year’s elections – and I repeat: we will manage this – we will remain an active political force which I will lead.

EAST NEWS

And you can attack PO and the government with a clear conscience, forgetting that you were a member of the party for years and played a significant role in it?

Yes, because I have always said loudly what I wanted to say, even when it brought me lots of criticism from some of my colleagues in PO. So I now have the absolute moral comfort to attack the various strange maneuvers going on in Civic Platform and the government.

Yet I am not attacking Donald Tusk and the government in a totally crazy manner, as Kaczyƒski and his followers in PiS are doing. My criticism is based on merit. I am introducing important ideas into the political debate concerning how to improve the functioning of our economy, how to change the unhealthy relations between the Church and state, how to push forward the introduction of [state-subsidized] in vitro, how to make changes in our army and in our whole military policy, including the end of our far-too-long and costly military presence in Afghanistan.

And this is having some effect, because Civic Platform has returned to the problem of in vitro and SLD has presented a draft bill in the Sejm on the liquidation of the Church Fund.

www.wbj.pl

Janusz Palikot believes his party can tap into liber al-leftist sentiment in Poland

observed, including by Catholic bishops and priests. I protest when certain bishops talk rubbish and every politician sits quiet, afraid to protest. If there were no nonsensical speeches delivered by bishops, I would stop talking about them. I do not have any obsession with the Church and certainly not with God. Yet in an atmosphere of political correctness – or rather of fear of reacting to some of the Church’s abuses of power – I have to react.

And I do not agree that Poland is as conservative as some right-wing commentators try to paint it. Polls show that the majority of Poles are for [subsidized] in vitro and want a more liberal abortion law. I think that Polish society, which is now open to the world after 50 years of imposed isolation during communist rule, is becoming quite liberal in its attitude towards many aspects of life, including its attitude towards the role of the Church.

There’s something of a battle taking place as to who is entitled to the heritage of late President Lech Kaczyƒski.

How do you see the matter?

That battle is being waged by Jaros∏aw Kaczyƒski, who has committed political suicide by resigning from real politics and devoting himself and PiS to cultivating the memory of his brother. He is pushing his party into oblivion.

Lech Kaczyƒski – a mediocre, second-rate presi-

dent and politician – has no real heritage. If the catastrophe in Smolensk had not happened we would be not talking about any heritage. President Lech Kaczyƒski acted as the subordinate of PiS leader Jaros∏aw Kaczyƒski and was political tool in his hands. The

“Lech Kaczyƒski [was] a mediocre, secondrate politician” fact that he is buried among the Polish national pantheon – in Wawel [Cathedral] – does not make him a great historical figure.

You have not presented any views on Polish foreign policy.

Do you have any remarks or postulates?

Yes, I do. I have long been a vocal critic of P oland’s presence in Afghanistan – prolonged by the government and also recently by the president – and I have demanded the quick withdrawal of our soldiers. I am critical of the expenses for the army, which are too high for P oland, and about this whole aspect of our military policy.

The W ar in Afghanistan costs us too much and brings us nothing, even in relations with the US. We do not have American missiles, nothing came from the [2003 F-16] offset deal. We have not even

seen the abolishment of visas to the US. I supported our participation in the NA TO operation in Afghanistan at the beginning, in the name of NA TO solidarity and the War on Terror, but I don’t see a reason to stay now, as other allies are withdrawing their soldiers.

We should have withdrawn ours two or three years ago and not behaved like the good students in class. Poland is not a military power and should not pretend to be.

In our European policy, I am for deeper integration with Germany. I believe that close political and economic relations with Germany should be the essence of our European policy. It is in our national interest to have the strong friend and partner in our Western neighborhood.

How about Polish relations with Russia?

I value Tusk’s policy towards Russia and I support the government’s efforts to normalize our relations, while doing everything possible to clear up blank spots in our mutual history.

Yet I am now afraid that PiS’s hysterical reaction towards the Russian report on the Smolensk catastrophe, regardless of Russia’s omission of its share of responsibility, will make it very difficult to conduct relations with Russia.

And putting aside the technical causes of that catastrophe, I will repeat my opinion that

What makes you believe that you can stand as a political leader in your own right?

Because I believe that I can do a lot for P oland. I offer ideas for development in various fields, for making our society more prosperous, for speeding up our modernization and making Poland highly respected by our neighbors and the European Union.

It is not vanity which keeps me in politics, but my strong ideas, unselfishness and the hope I have deep inside that [these goals are] possible to accomplish. ●

9

PiS would give pension choice Poles should have the right to decide on the proportion of their earnings which go to public and private pension funds, the leader of Poland’s main opposition party, Law and Justice (PiS), said last week. PiS will soon propose new pension legislation in parliament, leader Jaroslaw Kaczyƒski told the press.

Gifts to the US The US has published a list of items gifted to US dignitaries in 2009. VP Joe Biden received a Stipula fountain pen from late President Lech Kaczyƒski, while Admiral Michael Mullen, chairman of the US Joint Chiefs of Staff, received a large sword from General Franciszek Gàgor, then chief of Poland’s General Staff.

Ben Bernanke, chairman of the US Federal Reserve, meanwhile, was given a commemorative coin set by S∏awomir Skrzypek, then president of the National Bank of Poland. All three giftgivers died in the tragic April 10 airplane crash in Smolensk. ●

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OPINION

JANUARY 24-30, 2011

www.wbj.pl

11

A war of attrition

In

the emotion-fueled debate which has followed the Interstate Aviation Committee’s publication of its investigation of the Smolensk crash, voices of reason have been few and far between.

Law and Justice (PiS) has launched a facts-be-damned offensive against the government’s handling of the investigation, leaving the prime minister and his cohorts to sputter and protest against suggestions of ineptitude (at best) and treason (at worst).

In fact, the most reasonable assessment of the situation has come from Stanis∏aw Wziàtek, a backbencher from the Democratic Left Alliance (SLD). Speaking before parliament, he offered these words: “I am saddened by the fact that we are so divided in the case of the Smolensk tragedy.

Emotions have accompanied us since the first moments of that fateful day and those emotions are justified. We lost close friends. We lost the president of Poland. Now we are losing our authority. I will not shout. I will not throw accusations or try to provoke laughter. I will not point out the guilty ones. The truth is not black and white. It’s not, as MAK wants, that the fault lies only with the Polish pilots, neither is it as PiS wants that only the Russians are to blame.”

It’s not often that this

paper finds itself in such firm agreement with Poland’s main leftist party, but in this case Mr Wziàtek has the right of it.

Unfortunately his words have gone unheard both in parliament and in the media – as a member of the marginalized SLD party, Mr Wziàtek could have announced a cure for cancer and no one would have batted an eyelash.

Lack of alternatives The “Polish-Polish war” taking place between Civic Platform (PO) and PiS is so intense and emotionally absorbing that everything else on the political stage has faded into the background. The media – this paper included – has admittedly played a role in this.

The upshot is that, rather than a healthy parliamentary system involving a high-spirited debate on issues of merit, Polish politics have lately devolved into a series of pointless verbal skirmishes between two parties of the right. It is unpleasant to watch. Worse still, the lack of forward thinking which currently characterizes the political class will have consequences for future generations.

And yet, as recent history shows, little has come of those who have stepped forward to challenge the status quo. Back in 2007, a group of politicians including the deputy leader of PiS and former Sejm speaker, Ludwik Dorn, broke away to form a new center-right party

called Polska Plus, claiming they wanted a more substantive debate. They have now rejoined PiS. Another group of ex-PiS MPs, Poland Comes First (PJN), is currently trying to drum up support before the autumn parliamentary elections. Janusz Palikot, a former PO politician and enfant terrible, is attempting the same thing with his Movement of Support party (see interview, pps. 8-9). Neither grouping has fared well in recent opinion polls.

Two-party show In the end, the voters are the only ones who can break the deadlock. Both PO and PiS have core constituencies, but the former’s poll numbers are probably inflated by voters who feel there is no viable alternative.

This situation will continue unless voters finally get fed up with one or the other party’s antics and that group’s support levels fall below 20 percent.

Only then will there be a realistic chance for another entity to make a power play.

This autumn’s elections would be a fine time for that to happen, but everything depends on how much frustration mounts over the year. If the voters aren’t sick of the two-party show before October, expect the monotony to continue for the foreseeable future. ●

EDITOR-IN-CHIEF ANDREW KURETH (AKURETH@WBJ.PL) MANAGING DIRECTOR MONIKA STAWICKA DEPUTY EDITOR

E. BLAKE BERRY (BBERRY@WBJ.PL) ONLINE & NEWS EDITOR

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KRZYSZTOF WILI¡SKI (DYSTRYBUCJA@VALKEA.COM)

KATARZYNA PINKIEWICZ (KPINKIEWICZ@WBJ.PL)

SUBSCRIPTIONS MANAGER

BOOK OF LISTS SPECIALIST

JOWITA MALICH (JMALICH@WBJ.PL)

S

now and travel don’t mix.

This is a lesson learned seemingly every year, and the past Christmas proved no exception – thousands of airline passengers across Europe and the US were stranded due to huge snowstorms. P oland was lucky to have avoided those, but its winter has nevertheless been very white.

November 29, 2010, was a particularly frustrating example. The snowstorm that hit Poland that day brought just about everything to a halt.

Roads were jammed, public transport knotted up, taxis were nowhere to be found.

The capital, Warsaw, was paralyzed. Horror stories emerged of people spending hours and hours trying to get home after work. Some unfortunate souls were stuck in a traffic jam for over 20 hours, local media reported.

PRINT & DISTRIBUTION COORDINATOR

MARKETING &SALES

AGNIESZKA BREJWO (ABREJWO@WBJ.PL)

Poland’s winter whitewash does us no favors

KATARZYNA DRAGAN (KDRAGAN@WBJ.PL)

AGNIESZKA MICHALIK (AMICHALIK@VALKEA.COM)

JOANNA RASZKA (JRASZKA@VALKEA.COM)

Daily executive digest

Poland A.M. gives you the biggest Polish stories of the day.

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Forecast: frustration Most people are understanding when it comes to weatherrelated hang-ups. After all, the weather remains beyond human control. But it can be prepared for.

Certain allowances can be made, of course. The traditionally rainy UK, which was pounded with snow late last year, can’t be expected to exercise Finnish precision in dealing with the winter weather.

Similarly, the huge amounts of snow that collapsed the roof of the Metrodome in Minneapolis (a city which is no stranger to snow) – took many by surprise.

But what happened in Poland this winter – and every

winter – was irritatingly easy to predict. The November 29 snowstorm had been forecast days in advance. Why did it take so long to get the snow removal crews and salt trucks on the road? Why did it seem like there were so few? Yes, it was a big storm – by morning over a foot of snow had accumulated. But that’s par for the course in a Polish winter.

Regardless, history repeated itself on the Polish railways

“Weather remains beyond human control. But it can be prepared for” throughout December. P assengers, packed like sardines in train-carriage tins, endured hours of waiting as tracks were cleared. The chaos cost the deputy infrastructure minister and the head of PKP their jobs, but will that solve the problem? P reparedness and foresight are needed – we can hope the new leadership possesses those, but we’re not holding our breath.

The government’s handwringing has produced nothing but short-sighted fixes, and many of these will be forgotten as soon as spring rolls around.

Meanwhile, compare P oland with any of the Nordic countries in terms of coping with snow and you’re apt to come down with winter depression.

Precipitous costs?

Poland’s inability to adequately prepare for winter isn’t just

frustrating – it has its costs.

Estimates on exactly how much these difficulties cost the country are hard to come by, but the figure isn’t insignificant.

Just recently, consulting firm Deloitte found that traffic jams in Poland’s seven largest cities cost the economy over z∏.4 billion per year. The chaos that ensues after large snow storms essentially results in mega traffic jams: Not only do cars spend more time on the road, but commuters spend more time in airports and on trains, effectively spending less time contributing to the economy by working or consuming.

And the P olish winter can stretch into April. The cost must surely then be in the billions of z∏oty.

Poles are right to be outraged by the way their national and local governments handle bad weather. The attitude is often one of “JakoÊ to b´dzie” (We’ll manage somehow) or “I can’t control the weather!”

But officials can and should prepare – the snowplows and salters can be put on standby as soon as snow is forecast.

PKP can have teams ready to remove snow from tracks as well. There are plenty of other easy-to-implement solutions, and a look to P oland’s neighbors for best practices would be in order.

Admittedly, there will always be weather-related travel delays and inconveniences.

But there is much more that officials can do to keep them to a minimum. Poland’s economy – and its residents’ nerves – would greatly benefit. ●

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

COVER STORY

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Nobel Prize-winning poet Wis∏awa Szymborska was presented with the Order of the White Eagle, Poland’s oldest and highest state distinction, at Wawel Royal Castle in Kraków last week.

President Bronis∏aw Komorowski bestowed the honor in recognition of Ms Szymborska’s contribution to national culture and for her outstanding achievement in the field of literature.

Ms Szymborska, now 87 years old, won the Nobel Prize in literature in 1996 “for poetry that with ironic precision allows the historical and biological context to come to light in fragments of human reality.”

Polish health care largely private?

The Polish health-care system is apparently public only by name. In fact, the market is dominated by non-public facilities that offer general medical services, dentistry and rehabilitation. Of the 17,754 medical centers in Poland, only 2,331 are publicly operated (hospitals, outpatient clinics, R&D centers, budget-funded facilities), Dziennik Gazeta Prawna reported. Private health care establishments therefore hold an 87% market share.

Hooligan-proof stadiums?

Top-of-the-line monitoring systems are to be installed at all Euro 2012 sports facilities in Poland to help police crack down on hooligans. Cameras will record everything that goes on at gates, box offices, in the stands and on the field, Dziennik Gazeta Prawna reported.

The images will be highquality and comprise at least 950 pixels, and will have a frequency of at least 12 frames per second. ●

JANUARY 24-30, 2011

The cost of winter

Anthony Casey

Frost on the economy Winter weather taxes the economy every year and there's no lack of proposals to improve the situation. So what's the problem?

“Keep moving, keep warm.”

So goes the common wisdom, but it’s not always that easy to follow in Poland. As December proved – and January and February may yet – the country’s transport infrastructure is at the mercy of the weather.

Preliminary estimates in the press have put the cost of coping with this winter’s snow at between z∏.1.3 and z∏.1.5 billion. And that’s just the cost of keeping the roads open.

To put this into context, Finance Minister Jacek R ostowski recently announced that 2010’s budget deficit would likely come in at z∏.45 billion. If the country could find a more efficient means of dealing with the winter, then extra funds could be spent on balancing the budget, possibly cutting the deficit by three percent.

Slippery savings The significance of the issue is not lost on Poland’s cashstrapped city halls. W arsaw Mayor Hanna GronkiewiczWaltz, for one, has suggested that her transport officials should find a cheaper and more effective alternative to salting the capital’s roads.

Quite what that alternative should be remains unclear, however, as most other de-icing substances are significantly more expensive, according to Tadeusz Godlewski of the Road and Bridge R esearch Institute. Speaking to the Polish P ress Agency, he noted that salt works well to -7° C, but quickly becomes less efficient at colder temperatures. P ricier solutions are then required, but even these are used sparingly in Europe and often mixed with more affordable substances.

Moreover, W arsaw has already shaved a few million z∏oty off its winter road clearing budget, which stood at z∏.101 million for the 2009/10 season and is currently z∏.95 million. This bill for winter is still heaps larger in Warsaw than outside it though – Kraków, for example, has budgeted for just z∏.29 million this winter.

The cost to city budgets is plain to see. L ess easy to gauge is the indirect cost to the economy. When winter grips the city, deliveries are held up and employee tardiness increases. Simply put, less business gets done.

SHUTTERSTOCK

Polish poet honored

Poland needs to scrape away its inefficient methods for dealing with winter weather Lack of belief Businesses appear to be on their own, to some extent. But some cities have made magnanimous gestures to alleviate the burden on individuals at least. Kraków offered free public transport during the worst of December’s snow and heating braziers were set up at tram stops around the city, although this was little

more than a stopgap measure.

According to Michael Beim, a transport expert at the Sobieski Institute, a think tank, other European countries maintain good technical and organizational operations to keep their cities moving in the winter. The problem in Poland, he says, is that the central government virtually ignores public transport.

“I think the current situation is the result of a lack of belief [by central government] in the importance of public transport in P oland,” Mr Beim said. “The subject has been passed on to local governments – since 1990 to municipal governments for local transport, and since 1999 to provincial governments for regional transport – and for-

Learning from the Finnish For film fans in Poland, this is going to be a memorable winter for all the wrong reasons. Actor Liam Neeson was due to appear at the 2010 Camerimage festival in Bydgoszcz, held at the turn of last November and December, but snow disrupted flights between London and Warsaw, disappointing film fans.

Festival organizers had planned to present the actor with the Krzysztof KieÊlowski memorial award at the event – but the weather had other plans.

The absence of the Hollywood A lister (he played Oscar Schindler to much critical acclaim) may have created a stir at the time, but Neeson was just one of thousands of air passengers grounded across Europe.

In Poland, the airports at Wroc∏aw

and Warsaw reported delays in heavy snow, as operations were halted and staff were sent out to clear runways.

Other airports in Poland did not report any significant delays.

It could have been much worse.

Across the UK – a nation noted for its obsession with the weather and failure to deal with it – airports reported lengthy delays and swathes of cancellations. And when the airport in Frankfurt, Germany, closed, it cut off thousands trying to reach other parts of Europe and beyond. This COURTESY OF UNIVERSAL PICTURES

12

in particular had a knock-on effect on tourism in P oland; one hostel owner lost almost z∏.6,000 overnight because of cancellations caused by the problems in Frankfurt.

Many of these airports – Poland’s included – could learn a thing or two from Finland. The country’s Helsinki Airport last closed due to snow in 2003 despite regular winter deluges.

“We can manage to remain open because have the equipment, personnel and processes to handle different kinds

of snow and ice situations. W e also train, review and develop these processes thoroughly and continuously,” said Heini Noronen-Juhola, the airport’s vice president for aviation and safety.

“Winter maintenance is ready to work from mid-October until midApril, so the bad weather can come any time and we are ready,” she added. The airport justifies this investment by the fact that it loses income from landing fees every time it closes.

“All countries and airports have their own layout, legislation and other parameters, but I’d say that we have excellent winter processes and tactics in every way, and that is something from which everyone could learn,” Ms Noronen-Juhola stated. “It’s not really about the number of snowplows or people.”●

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COVER STORY

JANUARY 24-30, 2011

gotten about. Unfortunately this cannot be effective in the long run.”

Gone off the rails Austria is one European country described as having robust local transport policies. Indeed, there are interesting comparisons to be drawn between V ienna and Warsaw.

The first is that, in Vienna, the unemployed are put to work clearing rail tracks and tramlines of snow; W arsaw, meanwhile, hires contractors.

Another contrast is the rolling stock in use. V ienna favors Siemens Ultra L ow Floor trams, which are considerably more advanced than the Konstal trams commonly used in Poland.

It’s not that P oland lacks for ideas as to how it can improve its public transport.

Jakub Majewski, former chairman of Masovian R ailways, has suggested the creation of multi-purpose “rapid response brigades” to provide blankets, medicine and hot drinks for stranded passengers as well as to repair or remove broken-down trains.

And trains, as any recent rail passenger in P oland will likely have noticed, do break down. If they turn up at all.

PKP Intercity caused a major stir on December 12, when it introduced a new timetable and published the wrong times – and even the wrong platforms – for some departures and arrivals.

The debacle cost Juliusz Engelhardt his job as deputy infrastructure minister. And his successor, Andrzej Massel, promptly fired PKP president Andrzej Wach.

Political, technical and weather problems only exacerbated the situation last month, according to Mr Beim.

“The change to the timetable was part of the political element. The Infrastructure Ministry sought to limit the number of trains operated by InterR egio

left without information about which trains would go and which would not.

“The technical problems came down to the fact that PKP Intercity was not technically ready for an increased number of passengers,” according to Mr Beim.

He added, “The third factor, but probably not the most important, was the weather.

Cracked rails, no snowplows, the inability to cope with slippery surfaces – this is the result of years of neglect and failure to invest.”

A need for scrutiny Chronic, systemic neglect is a recurring theme when Poland’s public transport system or its roads are discussed.

Repairs in both cases are

“Nobody will talk about the actual cost of the chaos” Regional Transport, in order to support Intercity’s ‘cheap airline railway’ trains,” he noted. The upshot was that the number of trains available was limited, so passengers were crammed in together.

Moreover, they were often

often shoddy, requiring frequent additional work, and winter takes a major toll on both roads and rails.

But Mr Beim cautioned against extreme pessimism: “You cannot say that this problem cannot be solved.”

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Many countries where winter is harsher and whiter, such as Switzerland, still manage to function efficiently.

Addressing railway infrastructure in particular, Mr Beim stated, “There are many ways to improve. Some require large outlays, for example track renewal or the purchase of new rolling stock.

Others are relatively cheap.

These include improvements to passenger information, better competition for Intercity, or even ‘emergency brigades.’”

Again, ideas appear to be plentiful enough. What’s missing is the political will to help state-owned transport companies get their acts together.

“In P oland there is no strategy to combat the effects of winter on the railway. F or example, the problem of adequate numbers of snowplows has been unresolved for decades,” Mr Beim posited.

He believes that a solution can be found, if there is more openness.

“Nobody will talk about the actual cost of the chaos,” he stated. “There needs to be a fair debate about the costs involved, otherwise it is difficult for the public to scrutinize the industry and seek solutions.” ●

Legal Eye

Transport mishaps – who pays?

Paul Fogo is a senior attorney with Miller, Canfield, W. Babicki, A. Chelchowski & Partners. fogo@pl.millercanfield.com Each morning my wife and I commute to the center of Warsaw by car. W e have followed the same route for years, although recently our commute seems to take longer. F or the most part delays are the result of increased traffic in W arsaw, but not always.

The number of single-car accidents in W arsaw also seems to be growing. The reason can be summed up in one word: potholes. Damage to a car’s steering system can cost thousands of z∏oty to repair and the driver has no one to blame but himself. Or does he?

Public roadways Responsibility for public roadways in Poland is a function of government. A ccording to the Act on Public Roadways, the maintenance and operation of a public road rests at the local, district and regional level of government, as well as at the national level, depending on the designation of the road.

Poland’s Civil Code, in particular Art. 415, places liability for damage on the entity or person that causes such damage. This applies in general, not just to road related accidents. Government authorities are not exempt from such liability.

In order to file a claim, a motorist must properly evidence the cause of the damage, and in particular should obtain a police report documenting the accident.

SHUTTERSTOCK

Public transport

Too rare a sight when big snowstorms hit Poland

A GUIDE TO POLISH EXPORT will hit shelves in March 2011!

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

13

Similar to public roadways, the operators of public transport systems, including municipal buses and trams, are liable for damages resulting from their operations. In this case liability is based on a contractual agreement between the operator and passenger entered into upon purchase of a ticket.

The operator contracts to safely deliver the passenger to

his or destination. In case of an injury incurred during transit, the passenger should attempt to notify the driver of the injury before exiting, as well as noting the registration number of the vehicle.

The operator may defend itself against a claim if the cause of the accident is attributable to the driver of another vehicle, or is somehow due to the negligence of the passenger.

Public airways Air travel, although not specifically considered to be “public” transport, is nevertheless strictly regulated with respect to passenger rights.

Depending on the nature of the mishap, including delays, cancellations and accidents, airlines are obligated to provide compensation to one degree or another.

In the case of injury or death, strict liability applies for any claim up to €135,000 per passenger, meaning that an air carrier can not contest claims below this threshold. A carrier may, however, defend itself against a claim for damages in excess of €135,000 if the carrier can evidence that it was not at fault.

Compensation in the event of a flight delay or cancellations is also strictly regulated. Depending on the length of the delay, an air carrier is required to provide assistance even if the delay or cancellation is beyond its control. In case of a flight delay of more than two hours, the airline is obligated to provide a free meal to each passenger plus two free calls.

If the delay lasts until the next day, the air carrier is obligated to provide hotel accommodation and transport to and from the hotel. In the case of a flight cancellation or being denied boarding on an overbooked flight, the air carrier is required to pay each passenger anywhere from €250 to €600, depending on the length of the flight. ●

The government has set an execution date or the “Family on its Own” mortgage program

A growing number of firms are exploring alternatives to general contractors

16

17

LOKALE IMMOBILIA

W a r s a w B u s i n e s s J o u r n a l ’s w e e k ly s u p p l e m e n t o n r e 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

Frontex stays in Rondo 1 The European Agency for the Management of Operational Cooperation at the External Borders, also known as Frontex, has extended its lease agreement with MPGA concerning space in the Rondo 1 office building in Warsaw. The tenant has also increased the area it occupies in the property by 1,550 sqm to 8,800 sqm. Designed by the Skidmore, Owings & Merrill studio, in cooperation with AZO and Epstein, and commissioned in 2006, Rondo 1 is owned by the MGPA-managed MGPA Europe Fund II fund. ●

In this issue Matexi enters Poland . . . . . . . .15 Nowy Dom topped out . . . . . . .15 “Family on its Own” ending . .16 Winter land sales . . . . . . . . . . . .16 Conject acquisition . . . . . . . . . .16 Property-related stocks . . . . . .16 General contractor alternative 17 GTC stake sold . . . . . . . . . . . . . .18 Derby 14 launched . . . . . . . . . .18

Matexi dives into the Polish market

The Belgian developer expects to make a land purchase soon Belgian residential giant Matexi has entered the Polish market, opening a branch office called Matexi P olska.

This marks the firm’s first move into Central Europe.

No project has been announced yet. However, the company has already begun the process of acquiring land “in the most popular residential locations in W arsaw.” It plans to focus on the mid-market segment, stressing quality and attractive sites.

“The first acquisitions are planned soon, in H1 of 2011.

These will be executed in Warsaw,” said Miros∏aw Bednarek, managing director of Matexi Polska. “We are not planning to move outside the capital before having a strong position as residential developer with a portfolio in Warsaw.”

The decision to enter Poland followed intensive research of the market. “It is a big market with a strong growing economy and a relatively

Matexi Group delivered 996 housing units in 2009 Asked whether Matexi’s Polish projects would be delivered in “developer’s standard” (unfit-out) or turnkey standard, Mr Bednarek said the

young population, where Matexi can develop and build ‘great places to live’ to satisfy the housing need,” Mr Bednarek stated.

matter was still being discussed. “In P oland there is a very common conviction that Mr Handyman can do the fitout better than the developer.

Respecting that, we are not going to force Polish clients to buy the fit-out from us,” he commented.

“On the other hand, full fitout is the standard in which we deliver all our products in Belgium, so there will be such an option in our offer for sure,” he added.

Matexi belongs to the Matexi Group, a private holding whose subsidiaries have delivered tens of thousands of units over the group’s 65 year history. According to the firm, around 80,000 people – approximately the population of Konin, the third-largest city in Wielkopolskie voivodship – currently live in homes it built.

Matexi Group delivered 616 plots of land and 996 housing units in 2009. Total sales in that year amounted to €253 million.

By contrast, Dom Development – one of Poland’s largest residential developers – had sales revenues of z∏.196.25 million in 2009, which roughly equated to €47.77 million.

E Blake Berry

Topping out held for Nowy Dom Jab∏kowskich Nowy Dom Jab∏kowskich, an office-retail investment in central Warsaw, held its topping out ceremony last week.

Construction on the project began just 12 months ago.

Finishing work on Nowy Dom Jab∏kowskich, located on the corner of ul. Chmielna and ul. Bracka, is scheduled for completion in June.

LHI L easing P olska and Dom T owarowy Bracia Jab∏kowscy are the investors behind the project. The latter was founded by Jan and Tomasz Jab∏kowski in 1996, resurrecting the name of a firm owned by their family before World War II. The original Dom Towarowy

Bracia Jab∏kowscy building is now occupied by book store Traffic Club. Nowy Dom Jab∏kowskich is being built on an adjacent plot.

It will offer a total of 3,550 sqm, comprising office and service space along with underground parking. A telier3 Girtler & Girtler designed Nowy Dom Jab∏kowskich, whose facade draws on aspects of pre-war architecture. At the same time, the building has been designed to fit in with neighboring buildings.

Hochtief Polska is serving as contractor on the project, with Knight Frank responsible for leasing services.

Katarzyna Piasecka

Offices to let

COURTESY OF ADVANCED PUBLIC RELATIONS

Celtic Property Developments, a Polish developer active in the office and residential markets, has sold the Mokotów Plaza office building in Warsaw.

Spanish investment fund Azora Europe paid €33 million for the property.

Mokotów Plaza, located at ul. Post´pu 6 in the capital, was completed in December 2008. It is a five-storey building comprising 15,300 sqm of total space. Along with the sale of Mokotów Plaza, Celtic announced its plan to develop a third phase of its Cybernetyki Office Park in Warsaw.

JANUARY 24-30, 2011, LI 16/03

Residential

COURTESY OF MATEXI

Celtic talks Mokotów sale, new plans

•

Nowy Dom Jab∏kowskich will offer a total of 3,550 sqm

16

LOKALE IMMOBILIA – REAL ESTATE

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Felicity project back on track

Conject-BIW merger

Commercial real estate advisory Cushman & Wakefield has been appointed exclusive agent for the commercialization of the Felicity shopping center in Lublin. It will be responsible for overseeing the leasing process and maintaining the tenant mix. C&W’s appointment marks the first sign of progress on the scheme in some time.

Atrium European Real Estate Limited, the investor behind Felicity, had put the project on hold for a few years, but is now moving ahead with a smaller project.

Delivery is scheduled for H1 2013.

Germany’s Conject Holdings has announced the acquisition of UK-based BIW Technologies Ltd. The new entity claims to be the world market leader for infrastructure lifecycle management (ILM) applications.

Conject and BIW have combined revenues of approximately €18 million.

They employ 180 and have around 170,000 users for their products. Both brands will be maintained.

“Conject and BIW share the same vision and approach to innovation and customer service,” said Martin Reents, co-CEO of the new group.

“We recognized the quality and value of BIW ’s applications, which are wholly complementary to our own ILM portfolio, and we are very excited to be able to extend

DTZ manages Z∏ote Tarasy DTZ has been appointed property manager and leasing agent of the retail portion of the Z∏ote Tarasy commercial complex in Warsaw. The shopping center houses more than 200 stores on its 65,500 sqm of GLA with major tenants including Multikino, Van Graaf and Marks & Spencer ●

and complete our suite.”

Conject has a growing presence in the Polish market.

Last summer, for example, it signed a letter of intent with “Polish Airports” State Enterprise, operator of W arsaw’s Chopin Airport, to use its conjectPM solution during the construction of a five-star hotel on the airport’s premises.

Other references in Poland listed by Conject include the Northern Bridge project (designed with the help of its software), developer Inter Ikea Group P olska (ongoing shopping center development) and PKP P olskie Linie Kolejowe (the creation of technical-design documentation for a fast train between Katowice and P yrzowice).

E Blake Berry

Treasury sells palaces The Agricultural P roperty Agency (ANR) is preparing to put 20 historic buildings up for sale, hoping to make z∏.20 million on the transactions.

Demand for palace properties is low, even though the occupancy in hotels located in stylish historic buildings is

30 to 40 percent higher than in modern ones, according to the World Tourism Organization. Experts quoted by Dziennik Gazeta Prawna have complained that the selling prices set by ANR are too high and that, as a result, the tenders might not be completed in this first round.

Property-related stocks Security

Closing price on Jan 20

% change 52-week (week) low

52-week high

% change (year)

Total shares

Market value (z∏.mln)

08OCTAVA

2.09

0.97

1.85

2.49

-16.40

125,843,667

263.01

ATLASEST

3.30

0.61

2.60

4.83

-2.65

50,322,014

166.06

BUDIMEX

101.00

-2.60

72.00

106.10

26.25

25,530,098

2,578.54

DOMDEV

47.30

3.96

38.52

61.00

6.58

24,560,222

1,161.70

ECHO

4.67

-0.64

3.71

5.40

9.62

420,000,000

1,961.40

ELBUDOWA

169.00

0.00

155.00

188.40

-3.87

4,747,608

802.35

ENERGOPN

14.17

0.00

13.52

17.10

-1.94

23,827,044

337.63

ERBUD

53.25

-6.58

47.00

61.00

-1.21

12,602,711

671.09

GANT

17.08

-0.12

15.69

26.00

-15.65

20,499,953

350.14

GTC

21.89

-10.65

20.25

25.00

-13.10

219,372,990

4,802.07

HBPOLSKA

2.79

-7.00

2.79

3.95

-29.19

210,558,445

587.46

JWCONSTR

13.91

-7.76

11.06

18.69

7.00

54,073,280

752.16

LCCORP

1.50

0.00

1.37

1.73

-5.66

447,558,311

671.34

MARVIPOL

10.09

-0.88

10.09

22.31

-39.40

36,923,400

372.56

MOSTALWAR

53.25

-8.74

53.25

77.00

-15.48

20,000,000

1,065.00

MOSTALZAB

2.78

-3.47

2.78

4.84

-35.50

149,130,538

414.58

NAFTA

23.17

0.00

22.22

31.79

-3.46

5,903,203

136.78

ORCOGROUP

28.00

-0.57

19.00

33.50

7.69

14,053,866

393.51

PANOVA

32.30

-0.31

26.05

37.69

34.02

8,000,000

258.40

PBG

205.20

-2.05

192.00

252.00

-6.30

14,295,000

2,933.33

PLAZACNTR

4.44

0.68

4.41

6.52

-31.69

292,647,720

1,299.36

POLAQUA

18.40

3.66

14.94

22.50

5.14

27,500,100

506.00

POLIMEXMS

3.73

-4.36

3.73

5.29

-13.26

520,918,203

1,943.02

POLNORD

32.35

-0.31

30.10

44.00

-7.04

22,218,386

718.76

PROCHEM

25.19

-2.36

19.90

26.50

13.47

3,895,000

98.12

RONSON

1.44

-0.69

1.36

2.10

-15.79

272,360,000

392.20

TRAKCJA

3.95

-1.00

3.84

4.97

-5.28

160,105,480

632.42

ULMA

83.00

3.49

70.00

87.95

-3.49

5,255,632

436.22

UNIBEP

9.79

-2.10

5.99

10.30

61.82

33,927,184

332.15

WARIMPEX

9.70

0.52

7.64

10.30

12.01

54,000,000

523.80

JANUARY 24-30, 2011

Residential

‘Family on its Own’ out of commision by 2012

The government is shutting down its influential subsidy program

“Family on its Own,” the government’s popular mortgagesubsidy program for first-time homebuyers, will breathe its last on December 31, 2012.

That’s the last day that applications will be accepted.

In the meantime, the program will be significantly curtailed. Homes on the secondary market will be excluded from “Family on its Own,” a move which has long been known and welcomed by developers. L ess welcome, however, will be the decision not to allow singles to take part in the program, despite expectations to the otherwise.

“Family on its Own” will still encompass single family houses.

The price per square meter limit for qualifying for the program will also be lowered. In Warsaw, for example, the current maximum price per square meter amounts to z∏.9,080.40; after the changes, the maximum will be z∏.7,134.60.

“The changes will decrease the amount of apartments that

qualify for the program and thereby force developers to reduce prices by about 21 percent,” P awe∏ Grzàbka, chairman of CEE Property Group, said in a statement. “The lower price limits will make developers look for bargains, for example in the suburbs.”

He added, “The program’s expiry in 2012 with no information about possible alternatives may cause artificially inflated demand on the real estate market. It is also probable that people will lose interest in banks’ mortgage offers.”

The legislation amending

“Family on its Own” was approved by the Council of Ministers last week and still has to pass through the rest of the legislative process.

“Family on its Own” was created in 2006 to help married couples and single parents buy their first homes. The size of apartments and single-family houses qualifying for the program cannot exceed 75 sqm and 140 sqm respectively.

During the first eight years after the purchase, a portion of interest repayments are paid by the Treasury.

Katarzyna Piasecka

Housing spike Number of loans granted within the “Family on its Own” program 50,000 43,120 40,000 30,882 30,000

20,000

6,645

10,000

4,001

0 2007

2008

2009

2010

Source: Bank Gospodarstwa Krajowego

Land prices

Hot season for plots

The winter period has seen some bargains in the Polish land market Demand for land generally cools in winter, which presents sellers with the dilemma of whether to decrease prices or to wait until spring arrives to make a sale. Those who choose the former option are likely to offer winter discounts of more than 20 percent, according to a recent report by real estate brokerage Home Broker.

The trend is best illustrated by data from the Agricultural Property Agency. The average annual growth in its land prices over the 2005-2009 period amounted to 20 percent, but the winter months usually witnessed falls in average prices.

Why is this? A ccording to Home Broker, the cold weather simply complicates the purchase process. It is harder to correctly evaluate the condition of a plot and access to it is more difficult. Land is covered with snow and it gets dark very early. As a result, it is more

likely that buyers will judge a plot’s topography and shape incorrectly or will buy a piece of marshy land.

Buyers who are nonetheless keen to buy in winter include investors in undeveloped plots as well as those who look for cheaper land on which to build their own houses.

Price reductions depend on demand in the location in question and are usually more noticeable outside large urban

centers, the Home Broker report stated.

As an example, the report cites the price of a two hectare plot in Gmina Mszczonów, which was first reduced from z∏.22 to z∏.19 per sqm in December 2010 and then to z∏.17 per sqm in January. The owner of the plot, needing cash quickly, reduced its price by 22.7 percent within two months.

Katarzyna Piasecka

Fields of green?

Average sale price of agricultural land sold by the Agricultural Property Agency, Q1 2008-Q3 2010

20000 17500 15000 12500 10000 Q1

Q2

Q3 2008

Q4

Q1

Q2 Q3 2009

Q4

Q1

Q2 2010

Q3

Source: Agricultural Property Agency

LOKALE IMMOBILIA – REAL ESTATE

JANUARY 24-30, 2011

Construction services

Repackaging the process General contracting continues to be the dominant model for the execution of work in the Polish construction industry, but experts point out that a different approach, involving the division of work into “packages” which are then assigned to a number of contractors, is becoming increasingly popular with real estate investors in the country.

“This method of realizing an investment consists of the investor giving up on general contracting services, managing construction through a contract engineer and assigning particular portions of work directly to the contractors,” said Jacek K udrzycki, investment realization director at PM Group, an architectural and engineering firm dealing with the management of real estate projects.

Savings and flexibility Mr Kudrzycki argues that such a solution, which involves the negotiation of prices with the contractors themselves rather than with the general contractor, brings concrete financial benefits to the investor. Savings can amount to a few percent of the total cost of the investment.

“One can save up to half of what the general contractor adds to the cost of the subcontractors’ work,” Mr Kudrzycki said.

He added that better control of the whole investment

SHUTTERSTOCK

Rather than employ a general contractor, some investors are experimenting with a rival model of project realization

Some investors in Poland are building without a general contractor

process, of the progress and quality of the work being carried out, is another advantage.

Managing construction through a contract engineer and using the “packaging” system allows for flexible reaction to changes made by an investor during the realization process, Mr Kudrzycki stressed.

PM Group has cooperated with a number of investors who have chosen the “packaging” system in recent years, said Jaros∏aw Konior, member of the firm’s management board.

Those included Ikea, which had built its F ranowo and Matarnia retail projects – in Poznaƒ and Gdaƒsk, respectively – using this model.

Another firm, automotive sector supplier Autoliv, employed the solution in a car factory project in Jelcz-Laskowice.

Moreover Parkridge Retail Development has used the “packaging” system extensively in its Polish projects. So far all of the developer’s shopping

“Using the ‘packaging’ system allows for flexible reaction to changes made by an investor” centers in the country have been realized in this way, said Wojciech W ojciechowski, the firm’s realization director. “We came to the conclusion that it would be best if we controlled the realization process ourselves by assigning the particular tasks.”

He added that the solution is useful in that it allows Parkridge to respond to future tenants’ needs even if those are expressed as late as the middle of the construction process. In the case of a general contractor, such situations could lead to the formulation of claims because of the continuous disruption of the investment schedule, Mr W ojciechowski pointed out.

Oversight needed What is crucial, he stressed, is a precise definition of which “package” the individual elements of construction belong to. Coordinating all the work properly is also integral, so that the different contractors enter the construction site gradually and do not disrupt each other’s work. Agreements with con-

Adam Zdrodowski tractors for the first few “packages” have to be signed before construction is launched.

In effect, Mr Wojciechowski said, usually approximately 70 percent (in terms of value) of work has already been assigned to contractors when construction starts. The model requires that a special team of coordinators be called into being – Parkridge employs an external firm for that, but also keeps an in-house construction director at each of its construction sites.

PM Group’s Mr Kudrzycki admitted that the potential fragmentation of responsibility is an argument against the “packaging” system, but added that flexibility and savings offset the risk. Besides, the risk that work will progress too slowly can be minimized through the employment of clear procedures by the contracted engineer’s team.

Oversight requires patience and thus “packaging” is often rejected as an alternative to general contracting by developers who are acting under the pressure of time, Mr Kudrzycki said. A ccording to P arkridge Retail Development’s Mr Wojciechowski, however, the system works well for his company and has not led to any delays so far.

“We have not been disappointed with the ‘packaging’ system so far. All of our realizations to date have been completed according to schedule. We have also managed to make savings in the budget without decreasing the quality of materials, work or the architectural value of the facilities,” Mr Wojciechowski concluded. ●

www.wbj.pl

17

H&M in Sjaelso’s Porto 55 Clothes retailer H&M will open a store in the planned Porto 55 shopping center in Elblàg, Warmiƒsko-Mazurskie voivodship. Sjaelso Poland is just starting construction on the project. H&M will be one of Porto 55’s key tenants, taking up 1,400 sqm of space on two floors in the mall. Located at the intersection of Elblàg’s ul. Nowowiejska and ul.

Królewiecka and scheduled for completion in 2012, the Porto 55 shopping center will comprise some 22,000 sqm of retail, service and entertainment space with approximately 100 stores.

Resort investment growing Residential developers are increasingly interested in holiday resort projects, according to CEE Property Group. The company’s research into the matter noted a growing trend in apartment construction in seaside and mountain towns. Moreover, such property purchases are increasingly being made as investments to lease during the holiday season.

It’s not just small developers in the market either. Larger firms, such as Kristensen Group, Inpro, Gant Development, Polnord and PKO Inwestycje are involved in – or weighing – investments in resort towns where land prices are relatively low. ●

LOKALE IMMOBILIA – REAL ESTATE

www.wbj.pl

Information management services firm Iron Mountain has leased 4,200 sqm of warehouse and 120 sqm of office space in RB Logistics’ Centrum Logistyczne Olkusz project in Ma∏opolskie voivodship.

Cushman & Wakefield represented the owner of the facility in the transaction. Centrum Logistyczne Olkusz is located near a national road linking Kraków with Dàbrowa Górnicza in Silesia voivodship.

Railway station renovations Polish Railways (PKP) is looking to spend z∏.510 million on renovating railway stations this year, Rzeczpospolita reports.

The first tenders, worth z∏.20 million, will be announced at the end of January or beginning of February. The plan is to renovate 23 stations in 2011, among them Opole and Radom, said Jacek PrzeÊluga, head of the PKP department responsible for railway stations. He said that the full list had not yet been finalized, however. ●

GTC stake sold for over z∏.750 million GTC R eal Estate Holding, a subsidiary of Dutch investment company Kardan, last week sold 16 percent in W arsawbased developer Globe Trade Center (GTC) to selected institutional investors.

The shares were sold at z∏.21.50 apiece, bringing in gross proceeds of z∏.754.65 million. The sale involved an accelerated book-building process.

“The proceeds will be used

by Kardan to increase financial headroom to implement its strategy, and to reduce its leverage,” the company wrote in a statement.

GTC Real Estate Holding has reduced its stake in GTC to

approximately 27 percent through the transaction.

Kardan has decided to hold on to this remaining slice for at least 15 months, as it considers it to be “a strategic investment for the longer term.”

Other sizable shareholders in GTC include ING Nationale Nederlanden (8.1 percent) and Aviva Commercial Union (7.24 percent).

Morgan Stanley oversaw book-building for the sale, while Ipopema Securities, KBC Securities and UniCredit CAIB P oland (together with Morgan Stanley) acted as colead managers.

Gareth Price

The Pascal office building in Kraków was developed by GTC

JANUARY 24-30, 2011

Dom Development launches another Derby project in Warsaw

COURTESY OF DOM DEVELOPMENT

Iron Mountain in Olkusz

COURTESY OF GTC

18

Every apartment in Derby 14 will be eligibl e for the “Family on its Own” scheme Warsaw Stock Exchange-listed developer Dom Development has announced the launch of apartment sales in Derby 14, the latest phase of a residential complex that the company has been realizing in the capital’s Bia∏o∏´ka district since 2001. A total of approximately 3,600 units have been turned over for use within the investment so far.

The Derby 14 scheme will be realized in four stages which will deliver a total of almost 700 apartments. The first stage of the project, which

will include two-, three- and four-storey buildings and is scheduled for completion by the end of H1 2012, will comprise 174 units sized from 31.971.6 sqm. An underground parking lot for 170 cars will also be provided.

The price of the apartments will range from z∏.5,550z∏.6,750 per sqm, which means that all of them will qualify for the “Family on its Own” government-subsidized mortgage program for first-home buyers.

Derby 14 has been designed by the DAP architectural studio

and PB UniMax is acting as the general contractor for the scheme.

Apart from the newly launched investment, Dom Development’s ongoing projects in W arsaw also include three other phases of the Derby scheme, the A dria and Przy Ratuszu estates in P raga Po∏udnie and Bemowo, respectively, as well as various phases of Wilno in Targówek, Osiedle Saska in P raga P o∏udnie and Klasyków and Miasteczko Regaty in Bia∏o∏´ka.

Katarzyna Piasecka

Warsaw Business Journal presents Real Estate weekly newsletter

Learn the latest trends in Poland’s dynamic office, residential and retail sectors • Find out who’s who in Polish real estate •

Know K now abo about the newest projects before they’re on the market • Keep up to date on the latest tenders and auctions •

Sign up now for a free two-week trial!

To subscribe: visit www.wbj.pl/ren, 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

MARKETS

JANUARY 24-30, 2011

www.wbj.pl

world stock indices DJIA

NASDAQ

11,820.41 (Jan 20 close) 0.88% (for the week)

Stocks report

S&P500

2,706.76 (Jan 20 close)

FTSE100

1,279.14 (Jan 20 close)

-0.99% (for the week)

DAX

5,871.62 (Jan 20 close)

-0.24% (for the week)

-2.42% (for the week)

A volatile week

NIKKEI225 7,024.08 (Jan 20 close)

10,439.73 (Jan 20 close)

-0.62% (for the week)

-1.38% (for the week)

CHANGE: 2.10%

CHANGE: 1.12%

CHANGE: 1.71%

CHANGE: -0.48%

CHANGE: 0.73%

CHANGE: 0.85%

(year to Jan 20)

(year to Jan 20)

(year to Jan 20 )

(year to Jan 20 )

(year to Jan 20 )

(year to Jan 20 )

52-week high: 11,922.90

52-week high: 2,766.17

52-week high: 1,296.06

52-week high: 6,090.50

52-week high: 7,165.00

52-week high: 11,408.20

52-week low: 9,596.04

52-week low: 2,061.14

52-week low: 1,010.91

52-week low: 4,790.00

52-week low: 5,433.02

52-week low: 8,807.41

Tomasz Jerzyk, technical analyst DM BZ WBK SA Polish stocks went up again last week, but it was nevertheless quite a volatile week.

All the major WSE indices rose – the blue-chip WIG20 index by one percent – and managed to set new multimonth highs, although some profit taking was visible in the second half of the week.

The chemicals sector was the best performing, with the WIG-Chemia index rising by nearly five percent. Synthos was the top pick: its shares jumped by more than seven percent.

Financials were also strong, and PK O BP and Pekao each rose by more than three percent. It may seem a little strange that financials went up after last week’s interest rate hike, but – as the rise was expected – it is likely that the mar-

Major indices WIG

47,515.37 (January 20 closure)

WIG20

2,726.25 (January 20 closure)

20.01

19.01

18.01

17.01

14.01

13.01

12.01

11.01

10.01

07.01

05.01

04.01

03.01

20.01

19.01

18.01

17.01

14.01

13.01

12.01

11.01

10.01

2,600

07.01

46,000

05.01

2,640 04.01

46,600

03.01

2,680

31.12

47,200

30.12

2,720

29.12

47,800

28.12

2,760

27.12

48,400

23.12

2,800

22.12

49,000

31.12

52-week low: 2,173.25

30.12

Change year to January 20: -1.03%

29.12

52-week low: 37,322.52

28.12

52-week high: 2,794.58

Change year to January 20: -0.28%

27.12

Change for the week: 0.03%

23.12

52-week high: 48,371.02

22.12

Change for the week: 0.14%

Top 5 OPTIMUS HERMAN CITYINTER INVESTCON GROCLIN

Closing 4.10 1.50 27.90 2.07 15.40

% change (week) 52-week high 28.93 4.10 25.00 1.50 16.49 31.30 16.29 2.48 15.36 18.00

52-week low 1.15 0.98 2.19 1.64 10.70

Top 5 CEZ CYFRPOLSAT TVN PKOBP PEKAO

Closing 137.90 16.10 17.23 42.64 175.90

% change (week) 4.95 4.55 3.98 3.37 3.23

52-week high 148.80 17.30 19.31 46.81 196.50

52-week low 118.70 13.36 13.50 35.06 148.30

Bottom 5 MEDIATEL INTERSPORT GTC TECHMEX CELTIC

Closing 8.85 4.31 21.89 0.34 19.45

% change (week) -16.11 -11.86 -10.65 -10.53 -9.45

52-week low 7.80 4.31 20.25 0.27 19.10

Bottom 5 GTC POLIMEXMS ASSECOPOL PKNORLEN KGHM

Closing 21.89 3.73 54.20 46.11 175.00

% change (week) -10.65 -4.36 -3.21 -3.21 -2.78

52-week high 25.00 5.29 60.50 49.00 85.60

52-week low 20.25 3.73 49.24 31.05 188.90

52-week high 14.70 6.40 25.00 2.30 72.00

China growth impacts z∏oty

sWIG80

12,665.80 (January 20 closure)

NewConnect

61.56 (January 20 closure)

WIG-Banki

6,839.55 (January 20

closure)

20.01

19.01

18.01

17.01

14.01

13.01

12.01

11.01

10.01

07.01

05.01

04.01

20.01

19.01

18.01

17.01

14.01

13.01

12.01

11.01

10.01

07.01

6,600

05.01

61.0

04.01

6,700 03.01

61.6 31.12

6,800

30.12

62.2

29.12

6,900

28.12

62.8

27.12

7,000

23.12

63.4

22.12

7,100

03.01

52-week low: 5,440.90

31.12

Change year to January 20: -1.76%

30.12

52-week low: 54.52

29.12

Change year to January 20: -2.92%

28.12

52-week high: 7,262.73

27.12

Change for the week: 2.48%

23.12

52-week high: 64.39

22.12

Change for the week: 0.24%

64.0

Adam Narczewski, X-Trade Brokers Dom Maklerski SA

20.01

19.01

18.01

17.01

14.01

13.01

12.01

11.01

10.01

07.01

05.01

04.01

03.01

31.12

20.01

19.01

18.01

17.01

14.01

13.01

12.01

11.01

10.01

12,000

07.01

2,700

05.01

12,160

04.01

2,740

03.01

12,320

31.12

2,780

30.12

12,480

29.12

2,820

28.12

12,640

27.12

2,860

23.12

12,800

22.12

2,900

30.12

52-week low: 10,980.45

29.12

Change year to January 20: 3.40%

28.12

52-week low: 2,213.51

27.12

52-week high: 12,700.49

Change year to January 20: 0.96%

23.12

Change for the week: 1.89%

22.12

52-week high: 2,849.41

SOURCE: WSE

2,834.56 (January 20 closure)

Change for the week: -0.25%

ket had already discounted this negative factor in previous weeks.

On the other hand, other rate-sensitive stocks went down. The biggest laggards were real estate developers and construction companies. G TC lost the most among developers as one of its main shareholder decided to sell a 16 percent stake in the company to selected institutional investors.

GTC’s shares plummeted after the news was revealed, and the stock lost nearly 11 percent on the week. JW Construction was also under selling pressure.

It was another interesting week for investors, but it is quite likely that it will take some more time before profits are taken. Still, there are no signs yet of a reversal. ●

Currency report

Other indices mWIG40

19

The Monetary Policy Council’s decision to increase interest rates by 25 bp, to 3.75 percent, although expected, was the first change since June 2009 (which saw a decrease of 25 bp). Moreover, it was first hike since June 2008.

The latest move is likely to be the first in a series of rate hikes, as data from the economy seems to show that a broader change in monetary policy is necessary. Inflation remains at over three percent, while other publications indicate that it might continue to build. W e can expect a second increase some time in Q1.

The z∏oty remained stable on the news, however, since the hike had already been discounted by investors. But news from China created more volatility for the curren-

cy. Despite a fall in inflation, which still remains high, China’s 2010 GDP grew above expectations. This means the P eople’s Bank of China will likely take further precautions to offset inflation.

On the other hand, news from the US calmed investors. Unemployment claims were lower than expected, while existing home sales exceeded forecasts.

Moreover, it seems that successful bond auctions in countries on the EU’s economically troubled periphery caused the euro to regain lost ground.

The EUR/USD continued its upward course at the end of last week, reaching $1.35 ($1.32 on Monday), while the z∏oty remained stable against the euro, at z∏.3.86, and has kept gaining against the US dollar. ●

currency rates 3.5130 20.01

3.4718

3.5118 19.01

21.01

3.4932 18.01

SOURCE: NBP

3.5242 17.01

21.01

20.01

19.01

18.01

17.01

3.3

3.5065

3.5

14.01

0.0959

0.0964

0.0967

0.0965

0.0968 14.01

0.08

PLN-100JPY

3.7

2.9870 21.01

3.0246

0.0971

PLN-RUB

0.10

20.01

3.0128 19.01

3.0158

3.0060 18.01

17.01

2.8

14.01

4.5732 21.01

4.6135

3.0

3.0167

PLN-CHF

3.2

20.01

4.6147 19.01

4.6228 18.01

17.01

4.6005 14.01

2.8856

2.8779 21.01

4

4.6321

PLN-GBP

5

20.01

2.8879 19.01

2.8848 18.01

17.01

2.9048 14.01

3.8929

3.8936 21.01

2.5

2.9181

PLN-USD

3.0

20.01

3.8860 19.01

3.8656 18.01

17.01

3.8833 14.01

3.5

3.8692

PLN-EUR

4.0

20

THE LIST

www.wbj.pl

Book of Lists

JANUARY 24-30, 2011

Book of Lists is a comprehensive, detailed and constantly updated guide to more than 2,000 companies operating in the Polish market. Key enterprises are divided by sector into more than 65 ranking lists that include information such as the names of top managers , major clients, activities, the number of employees, completed projects and full contact details . This week’s edition examines five star hotels in Poland.

For more information about Book of Lists contact Joanna Raszka, tel. 22 639–8567 ext. 119; jraszka@valkea.com

Five Star Hotels in Poland Ranked by number of rooms Number of: Conference rooms / Seats in all meeting rooms / Seats in largest meeting room / Maximum exhibition area (sqm)

Rates including breakfast: Single / Double / Suite

Number of restaurants / Number of bars, cafeterias and pubs

Indoor swimming pool / Outdoor swimming pool

Sauna / Tanning facilities

Business center / Currency exchange

Newsstand/Souvenirs / Beauty parlor

Non-smoking rooms / Air-conditioning

Guarded parking / Underground parking

Internet access: LAN / Dial-up

Other

Warsaw Marriott Hotel Al. Jerozolimskie 65/79, 00-697 Warsaw 1 22 630-6306/22 830-0311 mail@marriott.com.pl www.marriotthotels.com/wawpl

518 WND WND

11 1,652 700 -

z∏.671.4 z∏.755.4 -

5 3

✓ -

✓ ✓

✓ ✓

✓ ✓

✓ ✓

✓

✓ -

WND

WND 1989

Albert Helms

The Westin Warsaw Al. Jana Paw∏a II 21, 00-854 Warsaw 2 22 450-8000/22 450-8111 warsaw@westin.com www.westin.com

357 WND 4

11 WND 560 1,294

WND WND WND

1 1

-

✓ -

✓ -

✓ -

✓ ✓

✓

✓ -

Safe in each room; cable TV

WND 2003

Stephan Sieberg

Sheraton Warsaw Hotel ul. B. Prusa 2, 00-493 Warsaw 3 22 450-6100/22 450-6200 warsaw@sheraton.pl www.sheraton.pl

326 WND 24

12 WND 650 1,163

WND WND WND

4 2

-

✓ -

✓ -

✓ -

✓ ✓

✓

✓ WND

Safe in each room; cable TV; ATM

WND 1996

Thomas Schoen

InterContinental Warszawa ul. Emilii Plater 49, 00-125 Warsaw 4 22 328-8888/22 328-8889 warsaw@ihg.com www.warsaw.intercontinental.com

308 5 21

13 784 414 1,100

WND WND WND

3 2

✓ -

✓ ✓

✓ -

✓ ✓

✓ ✓

✓ ✓

✓ ✓

WND

250 2003

Christian Henkemeier

Sofitel Warsaw Victoria ul. Królewska 11, 00-065 Warsaw 5 22 657-8011/22 657-8057 H3378@sofitel.com www.sofitel-victoria-warsaw.com

290 3 53

15 1,170 700 800

€80-250 €100-270 €115-285

2 2

✓ -

✓ -

✓ -

✓ ✓

✓ ✓

✓

✓ -

Web Radio; flower shop; free wireless internet access throughout the hotel

178 1976

Jean-Michel Lathuilliere

6 22 558-1234/22 558-1235

231 3 19

13 637 352 120

€108-248.4 €156.6-297 €237.6-378

1 1

✓ -

✓ -

✓ ✓

✓ ✓

✓ ✓

✓ ✓

✓ -

Casino; hairdresser; flower shop

170 2002

Sheraton Kraków Hotel ul. PowiÊle 7, 31-101 Kraków 7 12 662-1000/12 662-1100 krakow@sheraton.com www.sheraton.com/krakow

224 3 8

8 422 300 310

z∏.995-1,180 z∏.1,055-1,255 z∏.1,265-3,965

2 2

✓ -

✓ -

✓ ✓

✓ -

✓ ✓

✓ ✓

✓

Link@Sheraton; club floor; concierge

158 2004

Dagmar Zechmann

Sofitel Wroc∏aw Old Town ul. Êw. Miko∏aja 67, 50-127 Wroc∏aw 8 71 358-8300/71 358-8710 h5345@accor.com www.sofitel-wroclaw.com

190 1 15

11 425 250 147

z∏.884 z∏.969 z∏.2380

2 WND

✓

✓ ✓

✓ -

✓

✓ ✓

✓ ✓

✓ -

WND

73 2001

Loic Boichot

Sheraton Sopot Hotel, Conference Center & Spa ul. Powstaƒców Warszawy 10, 81-718 Sopot 9 58 767-1000/58 767-1001 sopot@sheraton.com www.sheraton.pl/sopot/

182 2 7

10 1,209 650 1,000

WND WND WND

2 3

✓ -

✓ -

✓ -

✓

✓ ✓

✓ ✓

✓ ✓

Safe in each room; cable TV

WND 2008

Iva Trifonow

Radisson Blu Hotel, Kraków ul. Straszewskiego 17, 31-101 Kraków 10 12 618-8888/12 618-8889 info.krakow@radissonblu.com www.krakow.radissonblu.com/hotel-krakow

177 5 19

8 313 150 134

€130-212 €130-212 €300-413

2 1

-

✓ -

✓ ✓

✓ ✓

✓ ✓

✓ ✓

✓ ✓

Free internet access; hotel taxi; two level underground parking; public transport stops near the hotel; Park Planty near the hotel; view of the Wawel Castle and the Old City from the hotel windows; Surf&Turf buffet; Grab&Run breakfast; Super Breakfast; 100% Guest Satisfaction Guarantee concept; bicycles available to guests

89 2003

Nino D. Rosenlund

Le Meridien Bristol ul. Krakowskie PrzedmieÊcie 42/44, 00-325 Warsaw 11 22 551-1000/22 625-2577 bristol@lemeridien.com www.lemeridien.pl

174 2 31

10 620 180 WND

z∏.1,100-1,360 z∏.1,100-1,360 z∏.1,480-7,500

1 2

✓ -

✓ ✓

✓ -

✓ ✓

✓ ✓

-

WND WND

WND

WND 1991

Michael Goerdt

Sheraton Poznaƒ Hotel ul. Bukowska 3/9, 60-809 Poznaƒ 12 61 655-2000/61 655-2001 gss.poznan@sheraton.com www.sheraton.pl/poznan

167 3 13

6 292 200 350

€90-315 €105-340 €382

2 2

✓ -

✓ -

✓ -

✓ -

✓ ✓

✓

✓ ✓

Safe in each room; cable TV

124 2006

Marco Foelske

Crown Piast Hotel & Park ul. Radzikowskiego 109, 31-342 Kraków 13 12 683-2600/12 683-2665 info@hotelpiast.pl www.hotelpiast.pl

164 2 15

8 650 300 100

€70 €88 €174

WND 1

-

✓ -

✓ -

✓ -

✓ ✓

✓ -

✓ -

WND

WND 1991

Renata Sztajer

Radisson BLU Hotel Wroc∏aw ul. Purkiniego 10, 50-156 Wroc∏aw 14 71 375-0000/71 375-0010 reservations.wroclaw@radissonblu.com www.radissonblu.com/hotel-wroclaw

158 2 4

9 410 140 126

From €70 From €85 From €150

1 1

-

✓ -

✓ ✓

-

✓ ✓

✓

✓ ✓

Free internet access

75 2002

Martin Mante

Holiday Inn Kraków City Center ul. Wielopole 4, 31-072 Kraków 15 12 619-0000/12 619-0005 BC@hik.krakow.pl www.hik.krakow.pl

154 2 30

5 210 50 206

WND WND WND

1 1

-

-

✓ ✓

✓ -

✓ ✓

✓ ✓

✓ -

Internet access included in the room; free access to MiniGym

80 2001

Shmariahu Yossef Wircer

Rank

Total number of rooms / Wheelchair accessible rooms / Number of suites

Amenities

Hotel Address Tel./Fax E-mail Web page

Hyatt Regency Warsaw ul. Belwederska 23, 00-761 Warsaw warsaw.regency@hyatt.com www.warsaw.regency.hyatt.com

Number of employees / Year founded

Manager / Title

General Director

General Director

General Director

General Director

General Director

Josef Kral

General Director

General Director

WND

General Director

General Manager

General Director

General Director

Director

General Director

General Director

THE LIST

JANUARY 24-30, 2011

www.wbj.pl

21

Number of: Conference rooms / Seats in all meeting rooms / Seats in largest meeting room / Maximum exhibition area (sqm)

Rates including breakfast: Single / Double / Suite

Number of restaurants / Number of bars, cafeterias and pubs

Indoor swimming pool / Outdoor swimming pool

Sauna / Tanning facilities

Business center / Currency exchange

Newsstand/Souvenirs / Beauty parlor

Non-smoking rooms / Air-conditioning

Guarded parking / Underground parking

Internet Access: LAN / Dial-up

Other

Radisson Blu Hotel Gdaƒsk ul. D∏ugi Targ 19/ Powroênicza, 80-828 Gdaƒsk 16 58 325-4444/58 325-4455 info.gdansk@radissonblu.com www.radissonblu.com/hotel-gdansk

125 4 9

6 260 200 165

€109-149 €130-174 €178-214

1 1

-

✓ -

✓ ✓

-

✓

✓

✓ -

Fitness Center

WND 2009

Maciek Miazek

Sofitel Grand Sopot ul. Powstaƒców Warszawy 12/14, 81-718 Sopot 16 58 520-6000/58 520-6099 H3419-AM@sofitel.com www.sofitel.com

125 2 2

5 460 240 590

€ 242.5-328.5 € 265-351 € 355-477.5

1 1

✓ -

✓ -

✓ -

✓

✓ ✓

✓ -

✓ -

-

WND 1927

Patrick Carabin

Monopol ul. Dworcowa 5, 40-012 Katowice 18 32 782-8282/32 782-8283 monopol@hotel.com.pl www.lhr.com.pl

105 5 3

3 220 120 214

z∏.490 z∏.580 z∏.960

2 2

✓ -

✓ ✓

✓ -

✓

✓ ✓

✓ ✓

✓ ✓

Heated floor in the bathroom; discounts at restaurants for hotel guests; 10% discount on purchases at Vinoteca

WND 2003

Roman Dembek

Hotel SPA Dr Irena Eris Wzgórza Dylewskie ul. Wysoka WieÊ 22, 14-100 Ostróda 19 89 647-1111/89 647-1000 wzgorza@hotelspa.pl www.drirenaerisspa.com

90 1 7

3 200 100 300

From €132 From €150 From €275

2 2

✓ -

✓ -

✓ -

✓ ✓

✓ ✓

✓ ✓

✓ -

WND

160 2006

Krzysztof Kaczmarek

Hotel Sympozjum & SPA ul. Kobierzyƒska 47, 30-363 Kraków 20 12 261-8600/12 261-8799 hotel@sympozjum.com.pl www.sympozjum.com.pl

75 2 5

7 600 300 274

€50-110 €60-140 €125-215

1 1

✓ -

✓ -

✓

✓ ✓

✓ ✓

-

✓ -

SPA; WiFi; unguarded parking

63 2004

Marek Tomczyk

Hotel Rezydent w Sopocie Pl. Konstytucji 3 Maja 3, 81-704 Sopot 21 58 555-5800/58 555-5801 rezerwacja@hotelrezydent.com.pl www.hotelrezydent.com.pl

63 1 1

2 80 80 WND

WND WND WND

1 -

-

-

-

✓ ✓

✓ ✓

✓ -

✓ -

WND

WND 2001

El˝bieta Malczewska

22 22 531-6000/22 531-6001

58 2 3

2 140 100 -

€213-246 €233-266 €495-527

1 1

✓ -

✓ -

✓ ✓

-

✓ ✓

-

✓ -

Free WiFi

62 2004

Krzysztof Olszewski

Hotel Dwór Oliwski ul. Bytowska 4, 80-328 Gdaƒsk 23 58 554-7000/58 554-7010 hotel@dworoliwski.pl www.dworoliwski.pl

57 2 13

2 240 140 145

€155 €170 €265

1 3

✓ -

✓ -

✓ -

✓ ✓

✓ ✓

✓ -

WND WND

WND

WND 2002

Izabela Wilczyƒska

Grand Hotel Kraków ul. S∏awkowska 5/7, 31-014 Kraków 24 12 421-7255/12 421-8360 hotel@grand.pl www.grand.pl

55 1 9

9 365 130 574

€250 €280 €350-1,500

1 2

-

✓ -

✓ -

✓ -

✓ ✓

✓ -

✓ -

WiFi in conference rooms, restaurant, cafeteria and at reception

WND 1887

Robert Mrzyg∏ód

Litwor ul. Krupówki 40, 34-500 Zakopane 25 18 202-4200/18 202-4205 rezerwacja@litwor.pl www.litwor.pl

53 1 -

2 80 60 -

From €75 From €90 -

1 1

✓ -

✓ ✓

✓ -

✓

✓ ✓

✓ ✓

✓ -

-

40 1999

Szymon Kukulski

Hotel Stary ul. Szczepaƒska 5, 31-011 Kraków 26 12 384-0808/12 384-0809 stary@hotel.com.pl www.stary.hotel.com.pl

46 1 7

2 190 160 180

€149-200 €170-225 €299-575

2 2

✓ -

✓ -

✓ -

-

✓ ✓

✓ -

✓ ✓

WiFi

50 2006

Monika Likus

Hotel Rialto ul. Wilcza 73, 00-670 Warsaw 27 22 584-8700/22 584-8701 info@rialto.pl www.rialto.pl

33 1 11

2 40 30 -

€225 €257 €524

1 1

-

✓ -

✓ ✓

-

✓ ✓

✓ -

✓ -

WND

37 2003

Jacek Szcz´sny

BoHema Hotel & SPA ul. Konarskiego 9, 85-066 Bydgoszcz 28 52 560-0602/52 581-0088 rezerwacja@hotelbohema.pl www.hotelbohema.pl

20 1 3

1 60 60 -

z∏.440 z∏.650 z∏.800

2 1

✓ -

✓ -

✓ WND

✓

✓ ✓

✓ -

✓ WND

SPA; Weranda restaurant

WND 2008

J. J. Franczak

City Park Residence Poznaƒ ul. Wyspiaƒskiego 26a, 60-751 Poznaƒ NR 61 221-8400/61 221-8402 residence@citypark.com.pl www.cityparkresidence.com.pl

WND WND 88

4 290 120 300

WND WND €105

1 WND

✓ -

✓ ✓

✓

✓ ✓

✓ ✓

✓ ✓

✓ -

Jacuzzi; ice cave; paid fitness

30 2008

Magdalena Strój

Radisson BLU Centrum Hotel ul. Grzybowska 24, 00-132 Warsaw NR 22 321-8888/22 321-8889 info.warsaw@radissonblu.com www.radissonblu.com/hotel-warsaw

WND WND WND

WND WND WND WND

WND WND WND

WND WND

WND WND

WND WND

WND WND

WND WND

WND WND

WND WND

WND WND

WND

WND 2002

Olof Karisson

Rank

Total number of rooms / Wheelchair accessible rooms / Number of suites

Amenities

Hotel Address Tel./Fax E-mail Web page

Mamaison Hotel Le Regina Warsaw ul. KoÊcielna 12, 00-218 Warsaw recepction.leregina@mamaison.com www.mamaison.com/leregina

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

Number of employees / Year founded

Manager / Title

General Director

General Director

Director

Director

General Director

General Manager

General Manager

Director

WND

WND

Director

General Director

WND

WND

General Director

To the best of WBJ ’s knowledge, the information is accurate as of press time. While every effort is made to ensure accuracy and thoroughness, omi ssions 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 2010, 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

ENTERTAINMENT

www.wbj.pl

JANUARY 24-30, 2011

Musicals

Notes from an underground

COURTESY OF STUDIO BUFFO

“Metro,” unarguably the most famous musical production in Poland, is getting ready to celebrate its 20 th anniversary.

The first private theater production of the post-communist period, it wowed its first audience in 1991 at Teatr Dramatyczny.

Twenty years later, the musical – staged at Studio Buffo since 1997 – is returning to its original home for a short run of anniversary shows.

If you’ve ever been privy to a discussion of Warsaw’s theater scene, the chances are you’ve heard of “Metro.” It’s a loose narrative about bohemian “Metro” celebrates its 20th anniversary this year youngsters living in subway tunnels set to thunderous music. chaotic, involving a mishmash shallow enough that even those with even an elementary The show even made its of styles and a so-so story. Its way to the bright lights of translation into “less-than-col- grasp of Polish can follow the Broadway. The Big Apple did loquial English” probably did action (though a little prereading about the show might not take to it, though – a paltry not help either.

13 performances were held “Metro” has earned a little help).

See the anniversary shows before its run ended. A 1992 leeway, though. F or all its review in The New York Times flaws, the show is a fine artifact at T eatr Dramatyczny (Janbegan: “What’s the P olish of a bygone age, when Poland uary 28 – February 1) or catch was flush with the exuberance it back at Studio Buffo in word for fiasco?”

February.

In hindsight, the dim recep- of newfound freedom. The EBB show is no longer performed tion of “Metro” was predictable. The show is no classic in English, but that’s probably For more info, log onto for the best. And the story is

by Broadway standards – it’s www.studiobuffo.pl

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

COURTESY OF FOX SEARCHLIGHT PICTURES

“Metro” Jan 28 – Feb 1 Teatr Dramatyczny

Portman’s performance in “Black Swan” earned her a Golden Globe

Film

A dancer, darkly “Black Swan” Drama/thriller. USA. Dir. Darren Aronofsky, with Natalie Portman, Vincent Cassel and Mila Kunis

It’s nigh on impossible to write a proper review of “Black Swan” without sounding a little pretentious. After all, the plot takes place within a ballet company which is readying a charged production of P yotr Tchaikovsky’s iconic “Swan Lake.” Add all the Oscar talk and Natalie Portman’s recent Golden Globe win, and the film seems like classic haughty couture.

So discussing the film’s subtle performances and rich symbolism requires the use of some highfalutin’ language.

But fear not, ballet haters.

“Black Swan” is unlikely to leave you yearning for an inter-

mission. Tchaikovsky’s masterpiece is integral to the film – at turns lavish backdrop and sinister plot device – but center stage is dominated by a disquieting psychological thriller.

The main character, Nina Sayers (Portman), is a young dancer obsessed with perfection. She is a fragile creature whose grasp of reality becomes increasingly tenuous as the demanding double role of White Swan/Black Swan consumes her.

Dichotomy is the order of the day. White and black, sexual repression and passion, innocence and malevolence – director Darren Aronofsky mixes these adroitly, creating a portrait of a woman descending into madness. Or perhaps transcending sanity.

Is Portman deserving of all the buzz? W ithout a doubt.

Her performance beautifully

conveys the emotional and physical demands of the dancer, of a life which embraces pain and austerity for the sake of art. Indeed, P ortman inhabits the role so thoroughly that you could almost forget her laughably wooden performances in the second “Star Wars” trilogy. Almost.

The supporting cast is also laudable, particularly Barbara Hershey as Nina’s creepy, repressed mother. And Matthew Libatique, who frequently collaborates with Aronofsky and Spike Lee, provides lush, lurid cinematography.

A funny film this is not. But its dark intensity lingers in the mind long after you exit the cinema.

E Blake Berry

“Black Swan” opened in cinemas around the nation last Friday. Check local listings for show times

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

Warsaw’s most popular Englishllanguage lifestyle lif t l magazine i ffeatures: t : • top shopping reviews and listings • monthly calendar of parties, eventss and exhibitions • latest art, design, fashion and beauty trends • hotel, spa and fitness club reviews • up-to-the-minute resto, bar, cafe and club reviews

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

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

Galeria Zoya ul. Kopernika 32 m.8 www.zoya.art.pl Green Gallery ul. Krzywe Ko∏o 2/4 www.greengallery.pl Katarzyna Napiórkowska Art Gallery ul. Âwi´tokrzyska 32, ul.

Krakowskie PrzedmieÊcie 42/44 and Old Town Square 19/21 www.napiorkowska.pl Królikarnia National Gallery ul. Pu∏awska 113a www.krolikarnia.mnw.art.pl Le Guern Gallery ul. Widok 8, www.leguern.pl Museum of Independence Aleja SolidarnoÊci 62 www.muzeumniepodleglosci.art.pl National Museum in Warsaw Al. Jerozolimskie 3 www.mnw.art.pl Pracownia Galeria ul. Emilii Plater 14 www.pracowniagaleria.pl Rempex Art and Auction House ul. Karowa 31 www.rempex.com.pl

Royal Castle Pl. Zamkowy 4 www.zamek-krolewski.com.pl Simonis Gallery ul. Burakowska 9 www.simonisgallery.com State Archaeological Museum in Warsaw ul. D∏uga 52 (Arsena∏) www.pma.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 Rising Museum ul. Grzybowska 79 www.1944.pl Wilanów Palace Museum and Wilanów Poster Museum ul. St Kostki Potockiego 10/16 www.milanow-palac.pl www.postermuseum.pl Zachęta National Art Gallery Pl. Ma∏achowskiego 3 www.zacheta.art.pl

LAST WORD

JANUARY 24-30, 2011

www.wbj.pl

23

Tech Eye

Sitting in style Since it looks we’re going to be stuck in the house for a while,Techeye has decided to do some redecorating. Topping our shopping list is Spanish artist Maximo Riera’s Octopus Chair, the first in a new series known as the Animal Chairs.

It’s hard to say how comfortable this is – it’s obviously more sculpture than practical furniture – but we’ve always been a sucker for cephalopod-inspired art.

Mr Riera’s website offers plenty of metaphysically titillating descriptions of the chair – a piece which apparently “establishes the affair between the animal, chair and the human as one single entity” – but there’s a dearth of specifics. W e’ve gleaned that the Octopus Chair is a one-of-a-kind

item and it won’t be cheap – five digits is probably a good guess. Meanwhile, an email asking if the artist would be willing to swap for a usedonce “Crotch Sizzler” has met with no response.

Another cool bit of furniture is Acousticom’s Sound Egg, a chair we’d gladly put in our rumpus room if we had one. It suffers from a distinct lack of tentacles, but rises above this handicap by incorporating a 10inch subwoofer under the seat for extreme butt rumblage.

Careful though – too much bass could cause numbness in your low end.

The Sound Egg boasts a 5.1 surround-sound speaker system, funky acoustic foam (in 11 colors) and a plastic seat. Optional extras include a “soft vinyl seat” (suggesting the standard seat may be a little punishing) and a monitor arm.

The 5.1-capable Sound Egg costs $1,850 (z∏.5,315), with the seat upgrade and the arm adding $325 (z∏.933) and $360 (z∏.1,034) to that, respectively.

rising depending on interior décor choices. Keep in mind too that Cinderella has probably reported this thing stolen, meaning a vengeful fairy godmother could come a-knockin’.

The final item on our renovation wish-list comes from the wacky

island nation known as Japan. What have they come up with now, you ask? A vending machine full of unicorns and rainbows? A robot that ties shoelaces, fetches beer and calls you a very naughty boy?

Nothing so pedestrian. No, this time legendary Japanese firm Sega has revolutionized the bathroom experience with its seminal T oylet gaming platform, offering bored, full-

bladdered men the chance to play one of four games while they relieve themselves.

Pricing and availability are shrouded in Japanese-phrased mystery, but this is probably aimed squarely at the commercial sector, at least for now.

Without going into too much detail, the evocatively titled games are “Manneken Pis,” “Graffiti Eraser,” “The North Wind and Her” and the multiplayer “Milk from Nose.”

Try not to think about that last one too much. ●

Things to splash out on Next up for our home’s latewinter makeover is PoshTots’ F antasy Coach.

This fantastical bed is handcrafted from wood and fiberglass, with an internal diameter of around six feet.

PoshTots’ sales pitch spins it as a product for little girls, but that shortchanges its potential in our opinion.

Seriously, what grown man wouldn’t want to watch a bit of footie in his very own Fantasy Coach?

A destitute grown man, that’s who. P ricing for the bed starts at $47,000 (z∏.134,797), with the figure

COURTESY OF POSHTOTS

COURTESY OF ACOUSTICOM

Techeye has been spending a lot of time at home of late. P robably because every time we exit the apartment our psycho neighbor tries to stab us in the face with a pitchfork.

Getting to and from work requires “Matrix” style acrobatics combined with caltrops, marbles, grease and other tricks to hobble the maniac.

We’d call the cops, but for one little thing – the guy’s anger is perhaps a little deserved. Maybe.

It all started innocently, you see.

We’d been sitting in our workshop, tooling about with a new invention called the “Crotch Sizzler 2000,” which is essentially a small flamethrower with a camera affixed just behind the igniter and a 3D

monitor mounted above the pistol grip. It’s designed as a self-defense product to protect against the construction workers who whistle and make crude comments when Techeye walks by.

Pull the trigger and a small gout of flame shoots out; an on-board computer calculates the proper igniter-to-crotch trajectory and adjusts aim. The 3D monitor is just there to help you enjoy the moment.

Anyway, upon completing the invention we ran off to test it at the nearest construction site. In the heat of the moment, though, we ran smack into our neighbor, accidentally triggering the “Crotch Sizzler 2000.”

To our joy, it worked perfectly.

Sadly our neighbor, smoldering below the belt, did not share our sense of triumph.

COURTESY OF MAXIMO RIERA

Home is where the octopus is

Ever accidentally set your neighbor a-sizzlin’? Let us know: techeye@wbj.pl