WBJ #4 2011

Poland’s plan for nuclear power is ambitious, but how much will it cost?

7

5

Cars, games and...corkscrews?

Techeye’s toy showcase goes the full monty 23

WWW.WBJ.PL

NewConnect, Warsaw’s alternative bourse, has seen an explosion of IPOs recently

VOLUME 17, NUMBER 4 • JAN 31 – FEB 6, 2011 . z∏.12.50 (VAT 8% included) . ISSN 1233 7889 INDEX-RUCH-332-127

REAL ESTATE

Since 1994 . Poland’s only business weekly in English

Let’s get serious

COURTESY OF NARODOWE CENTRUM SPORTU

Lokale Immobilia

Poland and Ukraine have their differences, but President Viktor Yanukovych’s visit this week is a chance to improve dialogue

• CA Immo deal • Euro 2012 progress • Wojciechowski in on Oxygen?

15-18

Ethics and attitudes

12-13

The government’s anti-corruption czar, Julia Pitera, talks partisan politics and shady dealings 8-9

Business information providers 21

In this issue

SHUTTERSTOCK

News . . . . . . . . . . . . . . . . . . . . . . .2-4 Industry News . . . . . . . . . . . . . . . . .5 Listed Firms . . . . . . . . . . . . . . . . . . .6 NewConnect in Focus . . . . . . . . . . .7 Interview . . . . . . . . . . . . . . . . . . . .8-9 Business Environment . . . . . . . . .10 Opinion . . . . . . . . . . . . . . . . . . . . . .11 Cover Story . . . . . . . . . . . . . . . .12-13 Lokale Immobilia . . . . . . . . . . .15-18 Markets . . . . . . . . . . . . . . . . . . . . . .20 The List . . . . . . . . . . . . . . . . . . . . . .21 Entertainment . . . . . . . . . . . . . . . .22 Last Word . . . . . . . . . . . . . . . . . . . .23

Pension dissent

Tourism in turmoil

Critics, including financial maven Leszek Balcerowicz, are naysaying the governments pension plan 3

Political unrest in Egypt and Tunisia has Polish tour operators worried their profits will nosedive 5

2

NEWS

www.wbj.pl

Bank-tax backtrack

IN THE SPOTLIGHT

JANUARY 31 – FEBRUARY 6, 2011

Viktor Yanukovych

63%

The introduction of a bank tax in 2011 is “unlikely,” Prime Minister Donald Tusk told reporters at a press conference last week. In early January, Finance Minister Jacek VincentRostowski announced on Polish Radio that there would be a bank tax, which would possibly come into effect this year.

Despite the change of tone, Mr Tusk did confirm that the Finance Ministry had been working on such a project, but added that it was “not, however, a priority.”

After accusing Poland and Germany of plotting to overthrow him, Belarusian President Alexander Lukashenko told the country’s parliament last week that Poland wanted to extend its border 250 km east to Minsk. Polish Foreign Ministry spokesman Marcin Bosacki declared that “we will not react to this kind of provocation.”

Warsaw is scheduled to host an international donors’ conference “Solidarity with Belarus” on February 2.

Zakayev case closed A Warsaw appeals court has closed the case into the possible extradition to Russia of Chechen separatist leader Akhmed Zakayev. Mr Zakayev was arrested in Poland on September 17 on an international arrest warrant issued by Interpol. He was later released by a Polish court and allowed to return to London, where he currently lives in exile.

of Poles think that the country’s economy is in crisis, a survey conducted by TNS OBOP shows

3.8% is the rate at which the Polish Economy grew last year, according to a preliminary estimate released last Friday by GUS

718,286 used cars were imported to Poland in 2010, up 3.6% y/y

Over 16,000 cars were stolen in Poland last year, police statistics indicate. Their value amounted to z∏.500 million

Quote of the Week SHUTTERSTOCK

Lukashenko lashes out at Poland

“I don’t know exactly what the president will do at Davos. Honestly speaking, it’s a boring party.”

Ukrainian President Viktor Yanukovych is scheduled to visit Poland this week. He will meet with Polish President Bronis∏aw Komorowski, with whom he is expected to discuss issues including Poland’s upcoming presidency of the EU and the countries’ joint organization of the UEFA Euro 2012 soccer championship.

Mr Yanukovych, who assumed the presidency in February 2010 following runoff elections in which he defeated Yulia Tymoshenko, then prime minister of Ukraine, has not been Poland’s favorite Ukrainian politician in recent years. Instead, hopes were long pinned on factions perceived as “pro-Western,” personified by Ms Tymoshenko and former Ukrainian President Viktor Yushchenko.

Poland sees a Westward-ori-

ented Ukraine as a potential buffer between it and Russia.

Thus, for many, Mr Yanukovych and his Party of Regions seem to be the diametric opposite of the “Orange camp” of Mr Yushchenko and Ms Tymoshenko, which was overtly supported by Poland during the Orange Revolution of late 2004 and early 2005.

Hailing from the eastern, predominantly pro-Russian, part of Ukraine, Mr Yanukovych is seen as close to the Kremlin and has ties to the region’s energy sector oligarchs (who in turn have links to Moscow). Since his election at the beginning of last year, the new president has indeed reversed the direction previously taken by the Orange camp.

Ukraine has given up on NATO membership ambitions

and the process of integration with the EU has stalled too.

Somewhat symbolically, the country last year agreed to allow Russia’s Black Sea Fleet to stay in the Crimea until 2047.

At home, critics have accused Mr Yanukovych of authoritarian practices.

Born in 1950 in the village of Zhukovka, Donetsk Oblast, Mr Yanukovych started his political career in the second half of the 1990s, when he became governor of the province. During the 2002-2004 and 2006-2007 periods he served as prime minister of Ukraine. In the presidential campaign of 2004, he ran as the Party of Regions’ candidate, winning what was described as a rigged election and sparking the Orange Revolution. He lost to Mr Yushchenko in a re-vote.

S∏awomir Nowak, a secretary of state in the President’s Chancellery, offers Money.pl insight into President Komorowski’s agenda at Davos

Figures in focus Made (less) in Poland Annual change in new industrial orders in selected EU countries, June-November 2010

Hungary

Germany

Poland

Denmark

Lithuania

EU27

80 70 60 50 40 30 20 10 0 -10 June

July

Aug

Sept

Oct

Nov Source: Eurostat

Adam Zdrodowski

Company index On WBJ.pl Polish politics in plain English The uninitiated can easily be overwhelmed by the intricacies of Polish politics – even the politicians themselves seem lost at times. Log on to “The business of politics,” a blog written by WBJ politics editor Remi Adekoya, to get a weekly dose of insight.

Agroton ......................................12 General Electric Hitachi Nuclear 5 PL.2012 ......................................17 Aliant Company..........................21 Ghelamco ..................................15 Polska Telefonia Cyfrowa ............7 Amazon ......................................23 GPI Wronia ................................18 Polskie LNG ................................4 Archiplan ....................................16 Grupo Prasa ..............................18 Polskie Radio ..............................5 Astarta ........................................12 Hochtief Polska..........................16 ProLogis ....................................17 Audi ............................................23 IBBC Group ................................21 Property Services ......................15 Bank Zachodni WBK....................7 InformacjaKredytowa.pl ............21 Biedecki Biedecki Olejnik..........10 Invesco Real Estate ..................15 PZU ..............................................3 Big-Duo Informacja

JW Construction ........................18 Rafako ..........................................5

Gospodarcza ..............................21 Kernel ........................................12 Razer ..........................................23 Biuro Informacji Gospodarczej

KGHM ..........................................5 Re:creation Group......................23

InfoMonitor ................................21 KRD Biuro Informacji Browary Warszawskie................18 Gospodarczej..............................21

GDP grew by 3.8% in 2010 Poland’s GDP increased by 3.8% in 2010, a preliminary estimate from the Central Statistical Office showed. The figure was roughly in line with analysts’ expectations. “[The] numbers are market neutral,” Anders Svendsen, chief analyst at Nordea Bank, wrote in an e-mail. Total consumption expenditure increased by 3.2% y/y, while gross fixed capital formation decreased by 2% y/y. ●

Numbers in the News

Reas............................................18 Redan ..........................................7

BZ WBK ..................................5, 11 Lotos ............................................5 CA Immo Group ........................15 Mabio............................................6

DATELINE

CMS Corporate

January/February JAN 31 – FEB 1 INVESTMENT CONFERENCE Event:

CEE Investment and PPP. Developing Sustainable Relationships. Location: InterContinental Warszawa. www.easteurolink.co.uk

Retail Concept............................16

Reuters ........................................5 Cinema3D ..................................17 Management Poland ................15 Citi Handlowy ........................5, 10 Mermaid Properties ..................17 Robyg ........................................ 15 Microstrategy ............................15 Ronson Development ................16

Management Services ................6 Mierzeja Helska ........................16 RosUkrEnergo............................12 Coface Poland Credit

15-18 FURNITURE FAIR Event:

MEBLE POLSKA Furniture Fair.

Location: Poznan International Fair. http://meble.mtp.pl/en/

Milkiland ....................................12 Sadovaya ....................................12

Management Services ..............21 Mo-Bruk ......................................6 CRIF............................................21 Mostostal Warszawa..................17 Cushman & Wakefield ..............16 Neckermann Polska ....................5 Deichmann-Obuwie ..................17 Nike ............................................15 DM BZ WBK SA . . .20

Selectours ....................................5 Snamprogetti Canada..................4 SNC-Lavalin Services ..................4

Nintendo ....................................23 STRATFOR ....................................4

Dom Maklerski IDMSA ................6 Nomura ........................................7 SwedeCenter..............................16 Dun & Bradstreet Poland..........21 Nordea Bank ................................2 Techint ..........................................4

FEBRUARY

18

TOURISM FAIR

3

SHOPPING CENTER FORUM

Event:

Event:

Shopping Center Forum & Awards 2011.

Location: Hilton Warsaw Hotel & Convention Centre. Organizer: BROG Media Biznesu. www.shoppingcenter.pl

Mi´dzynarodowe Targi Turystyki, Rekreacji i Wypoczynku (International Tourism, Recreation and Leisure Fair) INTOUREX 2011.

Location: Expo Silesia. www.exposilesia.pl

Emmerson..................................18 Oasis Tours ..................................5 Telekomunikacja Polska..............7 European Bank for Reconstruction Orange Customer Service ..........7 Textilmarket ................................7 and Development ........................4 Orco Property Group..................15 TNS OBOP ....................................2 European Investment Bank ........4 Orlen ............................................7 Warsaw Chopin Airport..............10 PA Nova ......................................16 Europolis Real Estate WSE ................................3, 6, 7, 13 Asset Management....................15 PBG ........................................4, 16 France Télécom ..........................7 PBP Orbis ....................................5 Wierzbowski Eversheds ............13 GATX Rail Polska ......................15 PGE ..............................................5 X-Trade Brokers ....................6, 20 Gaz-System ..................................4 PKO BP ......................................11 Yareal Polska..............................16

NEWS

JANUARY 31 – FEBRUARY 6, 2011

www.wbj.pl

Pension reform

Balcerowicz attacks government plan Changes to open-end pension funds would hurt the economy and future pensioners, says architect of market transformation

REPORTER

The government has finally tabled the details of its pension system overhaul, but several economists have lambasted the plan, including Leszek Balcerowicz, one of the architects of Poland’s market reforms.

The proposed changes will reduce the share of social security contributions transferred to open-end pension funds (OFEs) from 7.3 percent of employees’ wages to 2.3 percent, starting April 1.

The difference will be funneled into the state-run pension system, ZUS. As a result, the government will need to borrow less money to cover ZUS’s shortfalls of z∏.11 billion in 2011 and up to z∏.17 billion in 2020, according to its estimates. The total savings for the 2011-2020 period would be z∏.234 billion, or 15 percent of GDP, according to Micha∏ Boni, the head of the prime minister’s advisory team.

As a result, the budget deficit will drop significantly.

has proposed a plan which he says would solve the government’s deficit problem without changing the pension system.

Among his suggestions is the fast-tracking of the privatization process.

Mr Balcerowicz believes that if this is done, the government could raise z∏.27 billion this year from sales of stateowned firms instead of the z∏.15 billion it has budgeted. He has also suggested leveling the retirement age for men and women, reducing pro-family tax incentives, reducing sick pay from 80 to 60 percent of wages, reducing funeral payments to z∏.1,100 (from z∏.4,000) and removing wealthy farmers from the privileged Agricultural Social Insurance Fund system.

Mr Balcerowicz has proposed his own plan to cut the deficit A difference of opinions However, by 2013 OFEs will start receiving more money again, with the 2017 target being 3.5 percent of employees’ wages. There will also be a tax incentive for those who choose to make extra pension contributions, amounting to two percent from 2012 and four percent from 2017.

The upshot is that OFEs will have less money at their

disposal, which, critics say, means that companies listed on the Warsaw Stock Exchange will lose a large quantity of investment capital. OFEs are major investors in WSE-listed firms, but at present they have an investment limit of 40 percent of the contributions they receive. If the changes go through, by 2020 that limit will be 62 percent, albeit with reduced funds.

Critical voices Not everyone agrees with the government’s reasoning, however. Perhaps most pugnacious in his criticism of the plan is former Deputy Prime Minister and ex-central bank head Leszek Balcerowicz. He has roundly rejected the reform effort, stating that it would “reduce economic growth in Poland, as well as future pensions.”

Instead, Mr Balcerowicz

The government, meanwhile, is sticking to its guns.

“The fact that Mr Balcerowicz and I have different opinions is no surprise. We had a choice – correct the system in a way that will hurt financial institutions a bit but will not hurt people, or dip into people’s pockets. We chose the former,” responded Prime Minister Donald Tusk.

Remi Adekoya, Gareth Price

Terrorism

World Economic Forum

Poland offers condolences over Moscow bombing

Poland sends big names to Davos

Following the January 24 bomb attack at Moscow’s Domodedovo Airport, which killed 35 people and injured over 160, expressions of sympathy and support flooded to Russia from all over the world.

Poland immediately condemned the attack. During a telephone conversation with Russian President Dmitry Medvedev, Polish President Bronis∏aw Komorowski expressed sympathy for the families of the victims and solidarity with the Russian people.

In an official statement, Mr Komorowski also reaffirmed the need for NATO and Russia to strengthen counter-terrorism cooperation. Prime Minister Donald Tusk sent a telegram to his counterpart Vladimir Putin, stating, “Poland unreservedly condemns all acts of international terrorism.”

As WBJ went to press, no one had claimed responsibility for the attack.

The last major terrorist attack on a Russian target was the March 2010 bombing of the Moscow Metro, for which Chechen rebel leader Doku

Umarov claimed responsibility. This time, however, Mr Putin has specifically stated that the Domodedovo Airport attack was not carried out by Chechen separatists.

The incident should not have any particular effect on Polish-Russian relations, according to Marcin Zaborowski, director of the Polish Institute of International Affairs.

“The bombing really has first and foremost domestic implications for Russia itself, possibly implications for its relations with the Northern Caucasus, and it may affect Russia’s stance on it own war on terror,” said Mr Zaborowski.

On the day of the attack, the Russian and Polish foreign ministers confirmed their willingness to continue close cooperation over the Smolensk air disaster, arguably the most pressing issue in PolishRussian relations from the Polish point of view.

But Poland should expect Russia to be more consumed by its domestic affairs and less inclined to pay as much attention to the Smolensk tragedy as Poland does, said Mr Zaborowski.

Alice Trudelle

Poland looked to strut its stuff in Davos, though Polish businesspeople likely paid little attention Poland sent a heavyweight delegation to the 41st World Economic Forum in Davos, Switzerland, and participants’ interest in emerging markets seemed to validate the choice. “[For Polish leaders this is] an excellent opportunity to promote Poland’s image as an attractive investment market and a credible political, economic and business partner,” Foreign Ministry spokesperson Marcin Bosacki said in a statement.

The Polish delegation comprised Polish President Bronis∏aw Komorowski, Foreign Minister Rados∏aw Sikorski, Finance Minister Jacek Rostowski, Warsaw Stock Exchange president Ludwik Sobolewski, National Bank of Poland deputy head Witold Kozinski and Andrzej Klesyk, CEO of insurance giant PZU. One item on the delegation’s agenda was promotion of the Warsaw Stock Exchange’s accomplishments.

“The WSE is one of a few internationally positioned

stock exchanges which are present in Davos this year,” Mr Sobolewski commented.

“It is one of the most dynamically growing capital markets worldwide, [with] an impressive potential for further growth,” he added.

Preparations for the European soccer championship in 2012, including investment pos-

hosting of the tournament.

But while Davos might be a great platform to promote the country and large Polish companies, the event will have little impact on most entrepreneurs in Poland.

“The events which are important from the point of view of Polish entrepreneurs and companies are regional

Smolenskfatigue Facebook group removed Organizers have removed their “Day without Smolensk” group from the social networking site Facebook. The group, dedicated to the idea of having a day without debate in the media over the Smolensk tragedy, gained over 100,000 members within days.

The group was created by two political science students from the University of Warsaw, “in good faith.” But instead of bridging the divide between those who want to keep the topic alive and those who had gotten tired of hearing about it every day, the organizers were afraid that their idea had only served to widen the gap.

Foreign currency loans restricted It is now tougher to obtain foreign currency loans in Poland. Poland’s Financial Supervision Authority (KNF) has approved a recommendation calling for the stiffening of rules around lending to retail customers, as banks look to minimize risks associated with lending.

“We believe lending to retail customers, who do not have an income in a foreign currency, is associated with excessive risk,” Stanis∏aw Kluza, chair of the KNF, told Rzeczpospolita.

According to the new rules, clients’ debt load can no longer exceed 42 percent of their income.

Pirates seize ship captained

by Pole

COURTESY OF WORLD ECONOMIC FORUM

Russia is likely to focus on domestic issues more, Smolensk less

3

Foreign Minister Rados∏aw Sikorski was part of Poland’s delegation to Davos sibilities in tourism and infrastructure, were also touted.

President Bronis∏aw Komorowski and his Ukrainian counterpart Viktor Yanukovych held a panel discussion concerning their countries’ co-

meetings,” said Wojciech Warski, an economic expert at the Business Centre Club.

“For average Polish companies, Davos has no consequences at all,” he added.

Alice Trudelle

Somali pirates last week seized the MV Beluga Nomination, with its Polish captain, off the coast of the Seychelles, in the Indian Ocean.

According to information from the Foreign Ministry, the boat’s captain is the only Pole on board. The rest of the crew come from Ukraine, Russia and the Philippines. “The Ministry of Foreign Affairs is taking immediate action on this matter,” FM spokesperson Marcin Bosacki said in a statement. ●

4

NEWS

www.wbj.pl

JANUARY 31 – FEBRUARY 6, 2011

The Visegrad Group

Identity crisis for The Visegrad Group is about to turn 20 years old. Does it still have a raison d’^etre?

Come February 15, few Czechs, Hungarians, Poles and Slovaks will consider themselves “Homo Visegradicus,” as Hungarian historian Róbert Kiss Szemán optimistically termed it. But as it turns 20, the Visegrad Group (V4) might have a chance to renew its sense of purpose.

It is generally agreed that after a slow start the group helped to coordinate the four countries’ accession to NATO

(in 2004 for Slovakia and 1999 for the others) and to the EU (in 2004). But once the task of integrating into the Western alliances was completed, the organization found itself without a concrete reason for being.

Uncertainty in Europe and concern about the relevance of NATO might provide just the right environment for a renewed sense of purpose, argued Marko Papic of American intelligence firm STRATFOR. “Because of this uncertain geopolitical situation in Europe we see a lot of geopolitical groups emerging, or, in

Visegrad 4?

Poland the case of the Visegrad Group, reemerging,” he said.

According to him, there Czech Republic are three principal areas where cooperaSlovakia tion between the V4 states could bear fruit: energy, defense and Hungary European policy.

But while the V4 nations have recently issued a common declaration to reduce dependence on Russian gas and aim to present a united view to the EU, it is not clear exactly materialize. Some projects how energy cooperation will cited by V4 nations, such as

Poland’s LNG facility, are planned for local consumption rather than export. Others, such as the Nabucco pipeline, remain in the concept phase.

It is also unclear if steps taken by the group to enhance security cooperation are backed by sufficient political will to succeed.

Even if the group does not make big political waves, it provides a useful platform for cooperation within the EU on practical matters such as energy and environmental issues,

according to Bart∏omiej Nowak, executive director of Warsaw’s Center for International Relations.

“It does make life easier,” he said.

But one of the Visegrad Group’s most enduring problems, said Mr Papic, is that it is not composed of equals.

Poland, with a population larger than the other three countries combined, inevitably dominates the alliance. And just how much Warsaw is willing to work at overcoming divergent national interests remains to Alice Trudelle be seen.

Liquefied natural gas

Work on ÂwinoujÊcie LNG terminal to start in March The z∏.2.9 billion terminal will boost Poland’s energy security Construction on the liquefied natural gas (LNG) terminal in ÂwinoujÊcie, in northwest Poland, will start at the end of March. The investment, which is due to be completed in June 2014, will cost z∏.2.9 billion.

The terminal will receive seaborne gas supplies from abroad to help Poland diversify its energy sources and increase its energy security.

“The first important stages [involving] digging under gas tanks will begin before the end of March,” Zbigniew Rapciak, president of Polskie LNG, a firm involved in the project, told Puls Biznesu.

According to Mr Rapciak, the documentation necessary for the project is currently being prepared and the contractors have already ordered the specialized components needed for construction.

“The gas port in ÂwinoujÊcie will become an independent point of LNG deliveries from around the world,” he added.

Significant financing will

come from EU subsidies. In total, z∏.456 million will come from the Operational Programme Infrastructure and Environment, while €80 million will come from the EU’s European Energy Programme for Recovery, which aims to improve Europe’s gas transport network.

About z∏.1-1.3 billion of the terminal’s cost will be provided

by Polskie LNG itself. Additionally, the project has been granted loans by the European Bank for Reconstruction and Development, the European Investment Bank and several commercial banks.

The four bodies responsible for building the terminal are Polskie LNG, the Szczecin and ÂwinoujÊcie Seaports Authority, Vessel Traffic Service

Szczecin and gas infrastructure operator Gaz-System.

The project was designed

by Canadian engineering company SNC-Lavalin Services.

General contracting will be handled by a consortium comprising French-Italian Saipem, Italy’s Techint, Snamprogetti Canada and Poland’s PBG and PBG Export.

Katarzyna Piasecka

Legal News Contact: Miros∏aw Stefanik ms@pnplaw.pl

Important changes regarding mortgages

2011

coming in february

Tax on discount granted to an employee

Over 2,500 firms from all major sectors of the Polish market get exposure in Book of Lists Is your company one of them?

Contact

Book of Lists

today!

To get listed contact: Joanna Raszka: jraszka@wbj.pl tel: +48 22 639 85 68 ext. 119

Important changes to the act on land and mortgage registers come into force on February 20, 2011. Above all, the changes involve mortgages.

One of the most important changes is that it will be possible to secure a number of receivables from different entities (e.g. a consortium of banks) with a single mortgage in cases where these entities are participating in the financing of a joint undertaking.

Other significant changes include the possibility of substituting receivables secured with a mortgage with other receivables owed to the same creditor and the possibility to request that the amount of a mortgage be decreased if that mortgage constitutes an excessive security.

To reserve advertising space contact: Agnieszka Brejwo: abrejwo@wbj.pl +48 22 639 85 68 ext. 226

Pursuant to an interpretation by the head of the Tax Chamber in Warsaw from December 29, 2010 (IPPB2/415-920/102/AK), an employee’s income should be subject to taxation as a rule.

However, if a group of beneficiaries – i.e., persons who enjoy discounts awarded for participation in a loyalty program – is not restricted only to employees, then the program participants earn no income

(according to the definition in the act on personal income tax).

In the case examined by the head of the Tax Chamber, employees were not the only ones to have received discount cards. The decisive factor in recognizing a benefit as income from employment is whether this benefit can only be received by an employee or may also be received by a person unrelated to the employer.

An end to “people transport” providers During its session on January 5, 2011, the Sejm adopted an act which is to change the act on road transportation. With the new regulations, the Sejm intends to open the market of taxi services by abolishing the limitation of the number of taxi licences granted by municipality councils.

The changes also concern the definition of an “occasional transportation service,” which has been used to dodge the law on taxi licences.

The above legislation should result in the elimination of the so-called “people transport” providers from the market – i.e. companies and individuals providing passenger transportation services with passenger cars without a taxi licence and, consequently, without meeting the relevant qualification and safety requirements. ●

BROUGHT TO YOU BY PETER NIELSEN & PARTNERS LAW OFFICE

INDUSTRY NEWS

JANUARY 31 – FEBRUARY 6, 2011

www.wbj.pl

Energy

KGHM to net z∏.8 billion?

Nuclear power, but at what price?

The government is pushing to bring its first nuclear power plant online in 2020, but it still has no idea how much the undertaking will cost. Deputy ministers from the Treasury and the Economy Ministry admitted as much last week, saying they have not even commissioned any studies into the issue, Rzeczpospolita reported.

According to the daily, the heads of PGE – Poland’s largest utility and the firm charged with overseeing construction of the nuclear plant – say the cost of building one 3,000 MW plant will be z∏.3555 billion.

General Electric Hitachi Nuclear said last week that it is looking to enter Poland’s nuclear components market.

The company has signed memoranda of understanding with shipyard operator Stocznia Gdaƒsk and boiler equipment manufacturer Rafako to expand its supply chain in the

SHUTTERSTOCK

The government doesn’t have an answer yet

The government hopes that Poland’s first nuclear power plant will come online in 2020 In the meantime, Prime Minister Donald Tusk said last week that he wants Poland to have its first nuclear plant online in early 2020. The government had initially targeted

country.

PGE is reportedly analyzing a number of reactor technologies, including two GE Hitachi Nuclear reactor designs.

that year for its first plant, but the timetable was pushed back last year to 2022.

Economy Minister Waldemar Pawlak hinted last November that the date might

State-owned copper miner KGHM expects to post a record net profit of around z∏.8 billion in 2011, unnamed sources close to the company told Reuters. According to the same sources, this figure can be attributed to high copper prices and to the fact that the company is looking to offload two of its telecoms assets.

KGHM’s land-line operator Dialog and its 24.4 percent stake in Poland’s largest mobile operator, Polkomtel, are both being put on the block this year. If the results forecast is true, 2011 will bring the company the highest net profit ever seen in Polish corporate history.

be shifted back to 2020 and this has evidently come to pass. By the end of June, Mr Tusk expects parliament to pass the legislation needed to set Poland’s nuclear project in motion.

The first stage of the scheme, Mr Tusk told reporters last week, will involve finding a location for the plant. Choosing the “location is a challenge of a social nature,” Mr Tusk said, adding that attitudes today are the opposite of what they were many years ago. “Then, everyone was scared of this, but today [there] is a race [to find] the location.”

Poles now feel that nuclear energy is safe, Mr Tusk said.

The next stage will be to reach an agreement concerning the project’s environmental impact, as well as about its technical requirements. The government hopes that construction on the 3,000 MW plant will be launched sometime in early 2016. A second plant of the same size could be built between 2020 and 2030.

Lotos to sell excess fuel Polish refining giant Lotos is looking to ramp up its commercial activities. Analysts say the company’s main goal will be to sell the extra fuel it produced after modernizing its refineries, Parkiet wrote. The company’s leaders would rather prioritize their spending on investments and exploration and extraction activities, but admit that strengthening the company’s position on the domestic fuel market also needs some attention. Analysts believe the last bit is crucial to the company’s future success.

Gareth Price

Tourism Retail sales figures surprise on the upside North African tumult turns up the heat on Polish tourism operators decided to buy earlier.

But even excluding car sales, retail sales growth was significant and confirmed general optimism regarding the economy in 2011.

According to Mr Reluga, the overall trend observed in retail sales over the last few months confirms that private consumption is rising, which in turn is supported by high disposable income of households.

This, meanwhile, is being driven by improvement in the labor market, meaning higher employment and higher wage pressure.

Citi Handlowy analysts forecast that the first three months of 2011 should see a slowdown in consumption Alice Trudelle growth.

Instability in popular travel spots is hitting agencies’ bottom line

SHUTTERSTOCK

Car sales rose 40 percent year-on-year in December

The political turmoil in North Africa is having a chilling effect on Polish tour operators. Egypt and Tunisia have been two of the most popular destinations for Polish tourists in recent years, but Polish travel agents have canceled all trips to Tunisia through the end of February and clients are now shying away from Egypt.

Polskie Radio reports that many smaller travel agencies could face bankruptcy because Tunisia and Egypt represent 80 percent of their revenues.

Indeed, the unrest in North Africa will deal a strong blow to an industry already smarting from a difficult 2010, when high-profile firms such as PBP Orbis and Selectours went under, leaving travelers stranded.

“You’ve got to count on tour-operators’ financial results for this year being lower. Although at the moment it’s hard to say by how much,” Grzegorz Karolewski, the general director of Oasis Tours told daily Rzeczpospolita.

The Ministry of Foreign Affairs has advised against any travel to Tunisia for the

China to buy Polish bonds?

SHUTTERSTOCK

The release of December retail sales data, almost two days ahead of schedule, caught financial analysts by surprise.

Fortunately the surprise was positive.

“We still don’t know what happened,” said Maciej Reluga, chief economist at BZ WBK. “But what matters is we now have the data, and it is very positive,” he added.

Indeed, sales in December rose by a higher-than-expected 12 percent y/y, and by 25.3 percent m/m.

Car sales showed the strongest increase, reaching almost 40 percent growth y/y.

This has been partly attributed to the VAT hike implemented at the start of the year, as people expecting higher prices

5

About 6,500 Poles were on holiday in Egypt last week moment. As for Egypt, it advises Poles to be “particularly careful, especially while visiting public places such as bazaars, museums, and shopping malls, as well as to avoid places of possible protests and crowded gatherings.”

As of last Friday, there were approximately 6,500 Poles vacationing in Egypt.

However, most of the popular tourist resorts are located far from the cities that have seen the greatest political unrest.

Indeed, Jan Korsak, president of the Polish Chamber of Tourism, sees little cause for worry. He told WBJ that

tourists’ fears were no more than a “media event” and that he saw “no reason to sound the alarm.”

This is a view shared by Magda Plutecka-Dydoƒ, PR manager of Neckermann Polska. In a statement sent to WBJ, she said, “Our experienced teams on the ground assure us that no tourist areas at the Red Sea have been affected in any way.”

But she added, “As a precautionary measure only, Neckermann canceled its excursions [on Friday] from the Red Sea resorts to Cairo.”

Alexander Hayes

Polish Undersecretary of State Dominik Radziwi∏∏ will travel to China to encourage local investors to buy Polish bonds. The “roadshow to China” is scheduled for Q1 2011. However, details of the trip have not been revealed yet.

After several months of investing in Spanish, Greek and Portuguese bonds, Chinese investors are apparently willing to buy Polish bonds.

According to Dziennik Gazeta Prawna, they are attracted by the country’s good economic prospects. This is despite the fact that Polish bonds don’t offer high returns.

China is a prolific buyer of bonds, especially those which mature in 10-15 years●

www.wbj.pl

LISTED FIRMS

JANUARY 31 – FEBRUARY 6, 2011

Telecoms

TP plans to slash jobs Some 800 jobs will definitely go, another 2,500 may join them Telekomunikacja Polska (TP), Poland’s dominant telecom, has signed an agreement with labor unions that will allow it to shed 800 jobs in 2011 through voluntary redundancies. Many of these redundancies will be seen in subsidiary Orange Customer Service.

TP also announced in midJanuary that it is looking to outsource some operations, meaning a further 2,500 workers could be laid off in the first quarter of 2012.

Analysts estimate that TP might have to pay out z∏.120 million in severance payments,

though Rzeczpospolita reported Jacek Kunicki, TP’s director of investor relations, as saying that the company’s outsourcing plans were still nascent. The necessary funds have not yet been set aside, since it is not clear how many people would be leaving, he said.

Mr Kunicki declined to comment on whether the redundancies had anything to do with a purported joint venture with Polska Telefonia Cyfrowa, the operator of the Era mobile phone network.

This tie-up would involve Orange Polska and Era sharing resources and building a 4G network together.

TP, a unit of France Télécom, operates the Orange Pol-

ska brand through mobile telecom PTK Centertel.

However, according to Pawe∏ Puchalski, an analyst at Bank Zachodni WBK, the redundancies have nothing to do with either TP’s Q3 2010 loss, or with its joint venture with PTC. Instead, he said, the 800 figure is part of an ongoing program to reduce employment at the telecoms operator. The program was announced in 2008 and involves staffing cuts of 5,000 over a three-year period.

Mr Puchalski said that he was “disappointed” by a figure of only 800 jobs cut, seeing it as too low to have a significant impact on TP’s operations.

Alexander Hayes

Redan’s 2010 results: back in black Earnings season has begun this quarter, with fashionably early news from stock-listed clothier Redan. The firm has reported a 2010 net profit of z∏.5.8 million on sales revenues of z∏.324.2 million.

In comparison, the firm suffered a 2009 net loss of z∏.17.1 million with sales revenues of z∏.294 million.

According to the firm, the driving force behind its profit was subsidiary Textilmarket, a discount wholesaler of textiles, whose sales rose by 19 percent in 2010.

Redan also had a successful year on the Warsaw Stock Exchange. Its stock was valued at z∏.2.55 at the start of 2010 and maintained a steady upward trend. The firm’s shares closed the year at z∏.6.30, up 147 percent.

This year the clothier expects sales revenues to rise to z∏.416 million and is forecasting z∏.508-540 million for

COURTESY OF REDAN

6

Redan plans to strengthen brands like Top Secret 2012. The group’s net profit guidances amount to z∏.14 million and z∏.21-26 million for 2011 and 2012, respectively.

“In 2011-2012 we will aim to continue development of both our fields of activity: on the discount market through the Textilmarket network as well as on the fashion market by strength-

ening our Top Secret, Troll and Drywash brands,” stated Bogusz Kruszyƒski, chairman of Redan.

Redan is also active abroad. It is planning to open a total of 265 new shops in 2011, including some locations in Ukraine, Belarus and RusKatarzyna Piasecka sia.

Firms looking to devalue Orlen asset?

Firms may be considering investments in the northern Baltic region in order to drive down the value of Orlen’s Mažeikiai refinery in Lithuania. Dziennik Gazeta Prawna made the claim last week, citing a proposed investment in Estonia as an example.

According to sources cited by the daily, potential buyers of the Mažeikiai facility, including Russian investors, are doing what they can to lower the potential selling price. Numerous plans for new investments in the area could serve that goal, as they would lessen the value of Orlen’s refinery. Mere announcements, rather than concrete investment, might even be sufficient to lower the price, analysts say.

Speculation aside, the Polish state-owned refiner is clearly disappointed with the asset and weighing its options – it commissioned Japanese investment bank Nomura last year for advice on just that. The refiner has said it is considering a number of scenarios, including selling all or part of the refinery, or keeping hold of it and increasing its efficiency.

A representative of the firm declined to comment on whether any decision had been reached.

Many think Orlen will sell as the Lithuanian government has not responded to its demands to improve transport infrastructure linking the refinery with suppliers and markets.

The asset has also been

bedeviled by misfortunes ranging from a crippling fire, supply freezes and disputes over rail and port fees. Orlen has invested $3.4 billion in the refinery since 2006, but the asset at best broke even in the first three quarters of last year, according to a number of media reports citing company president Jacek Krawiec.

In other news, Orlen estimates that its Q4 2010 operating profit doubled year-onyear, to reach at least z∏.700 million.

The refiner made the announcement in a preliminary report released last Wednesday. A statement presenting the group’s official results will be released on February 10.

Gareth Price

NEWCONNECT IN FOCUS

JANUARY 31 – FEBRUARY 6, 2011

www.wbj.pl

NewConnect

7

The future of NewConnect

The rise of small capital

Will 2011 be the year of NewConnect?

COURTESY OF THE WSE

Alternative exchange NewConnect has exceeded expectations and will continue to do so, according to Bogus∏awa CimoszkoSkowroƒska, the president of CMS Corporate Management Services, which helps firms list on the bourse. She discusses NewConnect's prospects with WBJ

NewConnect is on its way to another record year

The Warsaw Stock Exchange’s alternative bourse is growing by leaps and bounds There are currently 197 firms listed on NewConnect, an alternative bourse established by the Warsaw Stock Exchange in 2007 to service smaller firms and start-ups.

Last year was a record-setter for the market, with 86 debuts, the highest number of any alternative bourse in Europe.

NewConnect also ended 2010 with a market capitalization of z∏.5 billion, which represented a 100 percent increase y/y.

Last year’s class of debutants raised a total of z∏.158 million, translating to an average of z∏.2 million per share issue. However, two companies managed to raise over z∏.20 million – Mo-Bruk, a firm from the industrial waste sector took in z∏.26 million, while bio-tech firm Mabio earned z∏.23 million.

This year looks even more

promising for NewConnect, with January alone seeing 13 debuts. In terms of debuts in a single month, only December 2010 saw as high a figure (also 13 firms).

Still a niche “While the NewConnect is still

a successful IPO on the alternative bourse depended on having a good introducing broker who can attract investors, since there is no public bookbuilding. He added that NewConnect was especially good for those firms which have long-term investment

“Market conditions right now are definitely favorable for IPOs” a niche and will remain so, it is an attractive way of raising money for certain companies that don’t need a big shareholder base. You don’t have to prepare so many documents. It is easier, faster and cheaper than a WSE IPO,” said Przemys∏aw Kwiecieƒ from XTrade Brokers.

“Market conditions right now are definitely favorable for IPOs, so I do see increased activity on the NewConnect bourse,” he added.

Mr Kwiecieƒ also said that

plans and aren’t concerned with short-term liquidity.

A good waiting room Micha∏ Sobolewski, an analyst at brokerage Dom Maklerski IDMSA, agreed that NewConnect is experiencing dynamic growth.

“While the turnover on the bourse is just a small percent of the total trading on the market, NewConnect has definitely proven to be a success.

In terms of the number of debuts, it is really a big suc-

cess,” he said.

“It is a very good venue for small firms which want to raise not such significant sums, although of course most firms which grow want to later move on to the main market, the WSE. NewConnect is a good waiting room for them,” Mr Sobolewski stated.

He added, however, that it was still not clear how planned changes to Poland’s pension system – involving the limitation of money sent to open-end pension funds (OFEs) – might affect the alternative bourse.

“It is possible that the OFEs, having less capital, might now focus their attention even more strongly on the bigger firms, which would of course be detrimental to NewConnect,” he said.

While the WSE has tried to build its alternative market’s image as a place for hi-tech start-ups, most of the firms currently listed are in the production, agriculture, health and building-materials sectors.

Remi Adekoya

New connections

Healthy growth

Number of debuts on NewConnect, 2007-2010

Market capitalization and turnover on NewConnect (in z∏. millions), 2007-2010

100 86

4,970

5,000 Market cap

80

4,000

3,506

Turnover

61

60

3,000

40

2,000

26

24

2,450 1,390

1,180

20

1,079 826

1,000 302

0 2007

2008

2009

2010

Source: NewConnect

zł.mln 2007

2008

2009

2010

Source: NewConnect

Remi Adekoya: Currently, a total of 197 firms are listed on the alternative NewConnect (NC) bourse. There were 86 debuts last year, a record, but this January alone the exchange has already seen 13 debuts. It seems to be looking like another record year. Will it be?

Bogus∏awa CimoszkoSkowroƒska: The success of the NewConnect exchange has exceeded everybody’s expectations. The number of entities present on it has exceeded our most optimistic forecasts and 2011 is definitely going to be the year of NewConnect. That’s not only because of an increase in the number of firms listed, but also because of a qualitative jump in its participants, meaning much larger entities. Until recently, people considered NC a place for start-ups where you went if you wanted to raise z∏.1 million or z∏.2 million.

But last year, two companies managed to raise over z∏.20 million each on the exchange and I think we will see much more such offers this year. In order to raise that kind of money, you need to attract institutional capital. We see a marked increase of interest in the [NewConnect] bourse on the part of such institutional investors.

Mid-caps are also increasingly looking towards the exchange as a viable source for raising capital.

This could be the future path for Polish mid-caps, first a debut on the NC and then, later on, on the WSE. Some say the government’s proposed changes to the pension system – by reducing the amount of money which open pension funds (OFEs) manage – will reduce the flow of capital on the exchanges significantly.

Do you agree?

It is very unfortunate that the government made that move under the pressure of the budget deficit. Those who want the changes argue that the OFE system is costing us too much. But the question is: relative to what?

For sure there are costs to the current system, but what about this vibrant group of investors who have been investing in the capital market? How many jobs were created by them? The government’s calculations were simplistic, political and wrong for the future of Poland.

The private pension funds were a stable source of cash flow for the WSE and the new situation may mean it will not be as attractive; people will look more towards the UK or the US. The NCIndex grew 30 percent year-on-year in 2010, double the growth rate for the WSE’s main index, the WIG, in the same period. Do you expect that dynamic to continue?

Yes. The year 2011 will be the year of SMEs in Poland – provided the economy continues to do well. When there is economic growth, SMEs grow much faster than big firms. Another major reason I expect them to do well in the coming years is because of the situation in Germany. Its exports are rising, production is vibrant, it is largely done with the issue of national reunification, it has lowered its tax base and enjoys good relations with Russia. A lot of Polish SMEs deliver to Germany, so as long as Germany is doing well, our SMEs will do well.

WSE president Ludwik Sobolewski has suggested opening country- or regionspecific indices. Is that a good idea?

I think sector-specific indices might be more attractive for investors right now. Maybe later, if people want exposure to a particular country, then such an index might be a good idea.

For example, during the crisis, when Poland was a green island, a lot of Western investors were coming to banks saying, “I don’t want a CEE index, I want a Poland index.” They wanted to be involved with Poland, but not with Hungary, for example. ●

8

INTERVIEW

www.wbj.pl

JANUARY 31 – FEBRUARY 6, 2011

Politics

The war today and the coming battles Julia Pitera, a Civic Platform MP and the government’s anti-corruption czar, talks with WBJ about the “Smolensk War,” gender parity and the fight against corruption Ewa Boniecka: Prime Minister Tusk described the Russian report on the causes of the Smolensk crash as incomplete and unacceptable, taking a tough political stance on Russia in order to reconcile the differences between the Polish and Russian investigations’ findings. Meanwhile, PiS [Law and Justice] is attacking the government and prime minister for all their dealings associated with the catastrophe. Jaros∏aw Kaczyƒski has even accused Donald Tusk of treason. Are we seeing a new stage of the “Smolensk War?” Julia Pitera: It looks that way, because there is very little substance in the attitudes towards that tragedy and there are a lot of bad emotions on PiS’s part.

What’s more, I see an unhealthy excitation in PiS and in some of the media, and this has nothing to do with the catastrophe itself and is being used by [PiS leader] Jaros∏aw Kaczyƒski as a political tool to save his party from oblivion.

This is the ugly side of the situ-

ation, because PiS is unable to hide the fact that they have a political interest in conducting and escalating the “Smolensk War,” even while talking about Polish dignity and patriotism.

Some commentators claim that the Polish state showed weakness by not employing proper legal procedures during the process of organizing and realizing the tragic flight to Smolensk. What’s your take?

I have long been troubled by an inappropriate attitude which still exists in Poland regarding the observation of laws and procedures. I think that we still have some traces of a mentality rooted in [the communist era] and even deeper in our history, which make us prone to disregard or even scorn some laws and procedures. That’s because there were periods in our history when laws and procedures were imposed on us by hostile states and regimes.

So now, in independent

Poland, we still do not often have proper respect for laws and procedures, even when they concern our security. In our society there is a kind of conviction that the state should not apply procedures to all circumstances and even some people in power think that way.

So it is not the “weakness of the state,” but a reckless human attitude towards procedures that may have caused us this misery. But even putting procedures aside, com-

also the budget deficit, controversy over reforms to the pension system and the poor state of infrastructure. What do you see as the most important challenge ahead?

In my opinion the biggest challenge facing Civic Platform and our government is maintaining and increasing people’s trust in us. We have accumulated such confidence capital and now we have to make every effort not to stretch it and not to allow ourselves to be provoked by the

“Our main aim is the modernization of the country and we are ... introducing reforms step by step” mon sense should tell us that the most important people in the country should not be flying together in one plane, as was the case on the flight to Smolensk. Let’s make sure that such circumstances never occur again.

It’s not just the “Smolensk War” putting the government, led by Civic Platform (PO), in a difficult situation – there’s

opposition’s furious attacks.

Some people are critical of the things the government is doing, of course, yet the majority show confidence in our pragmatic approach to dealing with difficult problems.

Because – contrary to the opposition’s shouts about our “passivity” and despite the interests of various lobbies – our government has proceed-

ed with some reforms – including in the health-care system, in primary and secondary schools, in the uniformed services. And now it is attempting to reform the entire pension system.

The PO government is not making these and other changes arrogantly, in the name of abstract doctrine imposed on people – as PiS did with its notion of building a “Fourth Republic” – but by taking a pragmatic approach to politics. Our main aim is the modernization of the country and we are applying this to practical activity, introducing reforms step by step.

In meeting with people from my constituency and listening to their problems and hopes, I have become convinced that modernization requires [attention to the] details – like building sewage systems and providing warm water to Polish homes, opening access to the internet in all places and doing other small things which make life more civilized and comfortable for society, opening it up to the changes taking place around us and across Europe.

Some divisions have appeared publicly in Civic Platform recently, not just on ethical matters but also on the economy, reforms and the PM’s strategy towards the Russians after the publication of their report on the Smolensk catastrophe. Are cracks forming in the party’s united front?

There were headlines in the press that “Schetyna is attacking Tusk,” because this is juicy for media speculation. I personally regard [Sejm Speaker] Grzegorz Schetyna’s comment – that Donald Tusk’s reaction to the Russian report had come late – as being unnecessary. Yet I do not see any divisions or factions in PO. Civic Platform is a modern, pluralist party and every member has the right to express his opinions, something which differentiates us from PiS. Our party brings together members with various views on ethical issues, like in vitro fertilization or abortion, and each MP has a free vote on these matters. Inside the party there are and always have been discussions and quarrels about various problems, which is natural. But what unifies all of us is our vision of a Polish

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

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

OPTION 1

WBJ Electronic

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

❏

OPTION 2

WBJ Print

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

In Europe: €270

OPTION 3

Outside Europe: €340

WBJ Premium

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

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

In Poland: zł.628

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

In Poland: zł.500

❏

In Europe: €300

Outside Europe: €370

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

CLIENT DETAILS

PAYMENT OPTIONS (please check one)

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

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

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

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

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

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

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

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

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

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

❏ Visa

❏ Mastercard

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

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

CVV2/CVC2/CID

Expiration date

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

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

JANUARY 31 – FEBRUARY 6, 2011

INTERVIEW

What do you expect to see in the political scene in the coming months, as the parliamentary elections near?

I am afraid that the debate about the Smolensk catastrophe will escalate. In April, the first anniversary of that tragedy will heighten emotions in politics and this will also be linked to PiS’s battle with PJN [Poland Comes First] for Lech Kaczyƒski’s heritage.

PJN will become a divisive element in our political scene, because that party walks in the same shoes as PiS. And [former PO politician] Janusz Palikot will be further marginalized, so I don’t believe that his Movement of Support will play any role in politics.

The political scene will not change and will be dominated by the confrontation between Civic Platform and PiS.

COURTESY OF KPRM

state as a properly functioning, modern, liberal European country with strong democratic institutions.

Mr Pitera believes the government has been “pragmatic” about introducing reforms Yet certain changes may happen due to a recent law which guarantees women 35 percent of places on parties’ election lists. Are you pleased by this change?

I would like to see more women in politics, but I think that Polish women are not generally so keen to enter into political structures. Some pre-

fer to function in feminist movements, or in the Women’s Party and, instead of entering the hermetic world of male politics, they form their own hermetic world.

At the same time I see that many women are active and successful in various social fields. And political parties

should turn to those women if they want to place them on their election lists.

I have to add with regret that women who are already engaged in politics often don’t do enough to encourage other women to take the risk and fight for a place in politics.

This may be because they

know from experience how tough and competitive the world of politics is, both for men and women.

In the PM’s Chancellery you are charged with preventing unlawful practices and corruption in state institutions. How do you tackle these problems?

www.wbj.pl

I approach them matter-offactly, because I think that excessive exaggeration and publicity of these problems can lead to them being used for political purposes. This was often the case during PiS’s term in government [20052007], when loudly trumpeted cases of corruption were later found not to exist, and wellpublicized, provocative investigations carried out by the Central Anticorruption Bureau were used to discredit political opponents.

The fight against corruption and unlawful practices in state institutions should be completely free of political motives. That is the only way to see results in the creation of a body of civil servants that isn’t prone to corruption, regardless of which party is in power.

To accuse somebody working in a state institution of corruption is difficult, because it requires proof that the civil servant received material benefit in return for a specific act.

If I receive a tip-off about such a case, I verify it and turn the matter over to the appropriate institution to launch a formal investigation. This could be the Supreme Chamber of Control or the Treasury Control Office, depending on the nature of the case.

Yet I believe my primary goal to be the strengthening of supervision over public admi-

9

nistration in order to prevent unlawful actions. And here the situation has greatly improved, because more transparent decision-making procedures have been implemented for clerks at all levels of administration. The functioning of local administrations has also been helped by European Union funds within the framework of the Human Capital program.

What about the situation in the private sector – do you receive many complaints about corruption?

Corrupt practices are now much more difficult to get away with in the private sector, because state institutions do not disregard tip-offs.

I also receive tip-offs and immediately turn them over for investigation. Recently I received a complaint from a company regarding impropriety in a tender organized by the Public Roads Authority [Dyrekcja Drog Publicznych] and passed it on for further investigation.

Generally there is much less corruption in Poland now, and the latest research done by Amnesty International confirms this. This does not mean that problems do not exist, but they are dealt with and eliminated more quickly because our inspection and supervision system is better organized. ●

Warsaw Business Journal Group and the Polish Chamber of Commerce, under the patronage of the Ministry of Economy, have undertaken a new initiative called the Polish Export Promotion Program, aimed at promoting Polish exporters and their products abroad.

The project will include: • Made in Poland, an annual publication launching this March • Mister and Junior of Exports, a competition to award Poland's best exporting companies and export products – those which distinguish themselves by a high level of quality and innovation • A gala, in June 2011, at which the awards will be given out Through this project we will shine a spotlight on Poland's export market, as well as the companies and products that it comprises, and draw attention to their achievements.

To get more information about the project, please contact Sales Director Agnieszka Brejwo at abrejwo@wbj.pl Partner of Honor

BUSINESS ENVIRONMENT

www.wbj.pl

Subsidies boost budget Analysts say that support for foreign investors in the form of financial grants does not necessarily diminish the budget and indeed can generate substantial revenues. Every z∏oty spent on investor subsidies brings Warsaw between z∏.8 and z∏.13 in taxes and social insurance premiums, Rzeczpospolita reported.

Grants are also the cheapest form of job creation, say economists.

Tax rebates for WSE companies?

Air travel

Heavy traffic in 2010

SHUTTERSTOCK

10

Almost 20.5 million people traveled through Polish airports last year

Companies may receive millions of z∏oty back in overpaid taxes if the Supreme Administrative Court (NSA) decides that the cost of issuing shares can be deducted from taxes as a cost of obtaining income, Parkiet reported. In the past, many tax chambers interpreted the legislation in favor of the issuers, but with the onset of the global financial crisis the number of unfavorable interpretations has increased. On Monday, a seven-member NSA commission was due to address this issue and its decision may become a binding law. ●

In spite of challenging weather conditions, Polish airports welcomed more passengers The number of passengers serviced by Poland’s airports grew in 2010 despite major natural disruptions. The forecast for 2011 is mixed, however.

According to recent figures from Poland’s Civil Aviation Office (ULC), Polish airports averaged an eight percent increase in passenger traffic last year. In total, almost 20.5 million people traveled through them.

“And yet this was not an easy year for the airline industry in Europe,” Micha∏ Marzec, director of the Warsaw Chopin Airport, said in a

statement.

Without the Icelandic volcano eruption in April and the weather which paralyzed traffic in London, Paris, Frankfurt, Amsterdam and Brussels around Christmas, Chopin Airport might just have topped 2008, a record year in terms of number of passengers. Warsaw’s airport fell around 600,000 passengers short of this feat, meaning it serviced 8.7 million.

Although Warsaw accounted for almost half of all air traffic in Poland last year, regional airports saw even greater annual increases.

With a 4.7 percent increase on 2009, Warsaw ranked well behind ¸ódê, (32.5 percent), Wroc∏aw (20.7 percent), Rzeszów (18.7 percent), Gdaƒsk (16.9 percent) and even Zielona Góra (23.9 per-

cent), Poland’s smallest major airport.

This, according to the ULC, is partly due to an increase in charter traffic and to a more efficient network of connections. Both were triggered by the need to rationalize costs after the global economic slowdown.

But despite the boost in air traffic, regional airports only managed to increase their market share by 1.4 percentage points in 2010 (from 56.3 in 2009 to 57.7 percent), and their growth prospects for 2011 are limited, according to the ULC. Meanwhile, Chopin Airport’s Micha∏ Marzec was optimistic that, barring the caprices of Mother Nature, 2011 would prove even better than 2010.

Alice Trudelle

JANUARY 31 – FEBRUARY 6, 2011

Economic confidence falls in Poland, but remains stable in EU The European Union’s Economic Sentiment Indicator (ESI), a composite indicator measuring confidence in several sectors, remained broadly stable across the bloc in January. Poland and Germany, however, saw a significant worsening of sentiment.

For the EU27, the ESI saw a m/m drop of just 0.3 points, slipping to 105.8. Poland, meanwhile, dropped 1.6 points, to 99.1.

Of the five sub-indicators comprising the ESI, only the services industry saw a m/m increase in confidence in Poland. The greatest pessimism, meanwhile, was seen in the construction industry, a trend which held true for most member states.

However Piotr Kalisz, chief economist at Citi Handlowy, warned that businesspeople

should not read too much into these statistics.

“In some countries like Poland, where consumer and business sentiment is so volatile, these indicators can send signals that are not reflected in actual data,” said Mr Kalisz.

Sentiment is vulnerable to frequent changes in the political situation or in the tax code, for example, which affect the perceptions of households or firms, he explained. “But it doesn’t affect actual decisions so much,” said Mr Kalisz.

Also reassuring was the fact that although Germany, Poland’s largest trading partner, saw one of the biggest m/m ESI drops (-1.7 points), its overall score of 115.6 points was second only to Sweden’s 118.1.

Alice Trudelle

Sentimental slide Economic sentiment indicator (selected countries), August 2010 – January 2011 EU27

Germany

Greece

Poland

120

100

80

60

Aug 2010

Sept 2010

Oct 2010

Nov 2010

Dec 2010

Jan 2011

Source: Directorate-General for Economic and Financial Affairs, European Commission

Legal Forum

Fathers called for duty Rados∏aw Biedecki Partner Fathers wishing to spend extra time with young children – or convinced by their harried wives to do so – have never had many options in Poland. On the other hand, employers have never needed to worry about a spate of pregnancies depopulating their offices of both male and female employees.

Things are changing, though.

Poland is still far off from adopting the Swedish model of paternity leave – involving months of paid leave – but fathers here have been able to take a week of paternity leave since January 1, 2010.

As of next year this will be expanded further. Those fathers on paternity leave as of January 1, 2012, will be eligible for a second week of paid leave. However, they

must apply for it in writing and this motion may not be filed later than three days before the start of the second week of paternity leave (in effect, the earliest this motion may be filed is December 30, 2011).

Sadly for parents of twins, triplets (etc.), the number of children born in one delivery has no impact on paternity leave. Daddy will stay home with the kid(s) for seven days with no option to split his new social benefit into parts.

This will continue to be the rule even after January 1, 2012, when paternity leave is extended.

A father has the right to take the paternity leave only once and this right must be exercised before the child reaches 12 months of age.

An employee on paternity leave is under the same protection as employees on maternity leave with respect to conditions for returning to work or termination of an employment agreement.

“A father can currently take a total of three to four weeks of messy, squalling joy with their kids” There is more good news for the courageous fathers on paternity leave: they are entitled to a paternity allowance based upon the same principles as moms.

Additional leave Since 2010, optional additional parental leave has also been available to parents of both sexes, although only one parent may use it. This additional parental leave is granted directly after the main part of the maternity leave.

This leave is granted upon the employee’s application (in writing). As of 2011, the length of this optional parental leave amounts to two weeks in the case of a single child and three weeks in the case of several children delivered at the same time.

The length of this additional leave will increase each year until 2014, when the maximum duration will be six and eight weeks, respectively.

The father is entitled to apply for this additional maternity leave in a situation in which the mother does not use it after her maternity leave or if the mother returns to work after at least 14 weeks of maternity leave.

By combining paternity leave and the additional parental leave, a father can currently take a total of three to four (depending on the number of births) weeks of messy, squalling joy with their kids.

A word of warning, though – try to help out with the kid(s) as much as possible before the paternity leave starts. Otherwise, the mother may just take the opportunity to soak up some sun while you handle diaper duty. ●

Legal Forum is a paid-for module which gives law firms in Poland an opportunity to discuss and inform readers about important developments in the market. The content is created in consultation with Warsaw Business Journal's editorial staff.

OPINION

JANUARY 31 – FEBRUARY 6, 2011

www.wbj.pl

11

Of fiscal prudence and political expedience

J

ust as this paper was ready to praise its foresight and political pluck, the government disappointed again.

There’s been discussion in the government – and from Finance Minister Rostowski in particular – of a bank tax being implemented in Poland, perhaps even this year. However, last week Prime Minister Tusk threw cold water on the idea, confirming that such a time frame was “unlikely,” and that work on the project was “not a priority” (see in brief, p. 2).

When tax makes sense This newspaper is no advocate of wanton tax hikes – especially in a climate of economic recovery, when corporate investment is key – but the government’s original proposal had some merit.

The idea was to create a reserve, funded from a small tax increase on banks, in case another banking crisis hit.

While Poland was blessedly insulated from the banking crisis during the Great Recession of 2008-2009, there’s no guarantee of that being true, should the world economy cool a second time.

And while Poland’s largely foreign-dominated banking market saw most players stick out the crisis, it seems increasingly likely that these firms could pull capital out of their Polish subsidiaries should another downturn rear its ugly head. Indeed, this very scenario has long been a source of worry for the government, one which fueled its (ultimately unsuccessful) drive to have state-

owned PKO BP purchase bank BZ WBK last year.

With member states on the European Union’s periphery teetering on the brink of insolvency, the risk of a bloc-wide double-dip is still uncomfortably present.

And this is a contingency for which a responsible government ought to prepare.

Poland’s admittedly strong performance over the past two years shouldn’t lull us into a false sense of security – the health of the economy remains highly dependent on those of its neighbors.

The instability of the PIIGS economies has shown us what can happen when governments fail to prepare for the worst. The Irish case, in particular, is frightening.

While Poland hasn’t made

“Poland’s admittedly strong performance ... shouldn’t lull us into a false sense of security” the mistake of guaranteeing its banks’ debt to the level that Ireland has, the Polish government would undoubtedly be forced to bail out some financial institutions in the event of a crisis.

A deficit of prudence So creating a reserve fund to ameliorate such damage would be a prudent move. In a pinch it would give the government – which has already run up unwieldy debt and

deficit figures – some breathing room; investors, who are notoriously jittery about the Central and Eastern European region, would get some reassurance. Most importantly, it could mean the difference between a short economic downturn and prolonged malaise.

Critics have argued that the government could turn around and use the tax to fund its profligate spending habits. The possibility exists – the Civic Platform government is certainly willing to “rethink” past promises – but that’s all the more reason to demand legislative assurances that the tax could only be used to fund a reserve.

Unfortunately, it seems that fiscal prudence is not the government’s priority right now – political expedience is.

Civic Platform has consistently earned criticism from the business community for its reluctance to implement much-needed reforms, so backing off the bank tax may simply be its attempt to mollify another group of voters in an election year. It’s a shame, though.

The most prudent thing to do would be to refrain from raising taxes and instead introduce cuts to government spending, putting the savings in – you guessed it – a bank reserve fund. But alas, that is too much to even hope for in an election year.

In the meantime, let us hope that a bank bailout does not become necessary. If it did, the government’s deficit of fiscal prudence would result in a debt many future generations of Poles would be forced to pay. ●

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.

The politics of the dead Joanna Wóycicka

“H

ave mercy,” Facebook users appealed to Polish journalists and politicians.

“We announce that February 3 will be a day without Smolensk!” their Facebook group declared. “No discussions about what happened. No contemplation about it. No verification of information. No listening to opinions. No emotion.

No arguments. We ask you to support this idea!”

How refreshing.

real accusations. Their coalition partner, the Polish People’s Party (PSL), has tried to remain aloof by not taking any stand on the issue, while politicians of the Democratic Left Alliance (SLD) have timidly appealed for reflection and warned against giving into anti-Russian rhetoric.

This time civil society went one better. Instead of reflection and caution, the people asked for silence – days of it – regarding the Smolensk tragedy.

Mass hysteria The “Day without Smolensk” has since been called off, as its initiators feared their efforts were being “used to deepen the chasm that divides Poland.” But the sense of relief remains.

There are many of us! Hundred, thousands, tens of thousands of people who are sick of the purposeless furor which certain politicians have ceaselessly perpetrated. Prior to the “Day without Smolensk” it sometimes seemed as though mass hysteria had swept the nation.

The opposition Law and Justice Party (PiS) has developed a conspiracy theory regarding the assassination of President Kaczyƒski and his entourage. According to this theory, the Civic Platform (PO) government is responsible for the Smolensk crash and it allied with Russia in order to execute the heinous crime.

Civic Platform politicians have awkwardly tried to explain that this was not an assassination and to dispel the most sur-

“There are thousands of people who are sick of the purposeless furor which certain politicians have ceaselessly perpetrated” The young have had enough A look at posts on the Facebook group illustrated that its members were generally well-educated young people.

These are the people who look to the future, rather than scratching at old national wounds. These are the ones who engage in civil society and the ones who keep an eye on the direction the market is headed. You won’t find them making torches and shuffling along in one of Law and Justice’s nighttime marches.

As evidenced on Facebook,

these people respect the memory of the Smolensk crash victims, but see no point in spending their lives at the cemetery.

An electorate for the losing Parliamentary elections are just around the corner. From the political perspective, these young people constitute an electorate which will be looking this autumn for a group to represent its interests.

They will not vote for PiS or its decaffeinated clone Poland Comes First (PJN). Nor will they vote for SLD, because it is still too strongly associated with its communist origins. They are also afraid that PO, confronted

by PiS, will take a dangerous turn towards the conservative, forgetting its liberal roots.

As of this moment, it seems there is no one on the political scene capable of and willing to represent the latest generation of economically dynamic voters.

From my perspective as a political observer, I think that a true national tragedy could be brewing, one just as painful as the Smolensk disaster – that the young could become politically disenfranchised and not take part in this fall’s elections at all.

● Joanna Wóycicka is the former head of the foreign sections of the ˚ycie Warszawy and ˚ycie newspapers and the former head of the foreign department at the Polish Press Agency (PAP). j.woycicka@hotmail.com

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

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

Have the most valuable news delivered to your inbox each weekday morning.

DEPUTY EDITOR

POLITICS EDITOR

E. BLAKE BERRY (BBERRY@WBJ.PL)

REMI ADEKOYA (RADEKOYA@WBJ.PL)

MARK ORDON RICHARD WERNICK JOANNA WÓYCICKA

ONLINE & NEWS EDITOR

INTERNATIONAL EDITOR

INTERNS

GARETH PRICE (GPRICE@WBJ.PL)

ALICE TRUDELLE

ALEX HAYES KATARZYNA PIASECKA

REAL ESTATE EDITOR

CONTRIBUTORS

ADAM ZDRODOWSKI (AZDRODOWSKI@WBJ.PL)

EWA BONIECKA ANTHONY CASEY

(ATRUDELLE@WBJ.PL)

CARTOONS

PIOTR WYSKOK

WBJ SALES & ADVERTISING

Sign up for a 2-week free-trial! www.polandam.pl German version: www.polenammorgen.pl

PAUL FOGO JUDITH GLINIECKI TOMASZ JERZYK ADAM NARCZEWSKI PRODUCTION MANAGER

PIOTR WYSKOK GRAPHIC DESIGNER

¸UKASZ MAZUREK PRINT & DISTRIBUTION COORDINATOR

MARKETING &SALES

PR & MARKETING MANAGER

AGNIESZKA BREJWO (ABREJWO@WBJ.PL)

KATARZYNA DRAGAN (KDRAGAN@WBJ.PL)

KATARZYNA PINKIEWICZ (KPINKIEWICZ@WBJ.PL)

SUBSCRIPTIONS MANAGER

JOWITA MALICH (JMALICH@WBJ.PL)

COLUMNISTS

AGNIESZKA MICHALIK (AMICHALIK@VALKEA.COM)

KRZYSZTOF WILI¡SKI (DYSTRYBUCJA@VALKEA.COM)

BOOK OF LISTS SPECIALIST

JOANNA RASZKA (JRASZKA@VALKEA.COM)

12

COVER STORY

www.wbj.pl

JANUARY 31 – FEBRUARY 6, 2011

Poland and Ukraine

Neighborly frustrations Remi Adekoya There’s no miracle expected during Ukrainian President Viktor Yanukovych’s visit this week, but it’s a chance to talk democracy and economic ties dividends, however, and the dynamics of the countries’ relations have shifted dramatically.

Today, the Orange faction has all but faded into memory, the alliance between its leaders, Mr Yushchenko and Ms Tymoshenko, undone by internecine feuding. Their opposition in the 2004 “revolution” – known as the “Blue” camp – now have a nearly complete grasp on power in Ukraine, including the presidency, the prime minister’s office, a parliamentary majority and control of most of the country’s political offices at the regional level.

Company

Sector

IPO date

Debut price

Price as of January 28

Astarta Kernel Agroton Milkiland Sadovaya

Agriculture Agriculture Agriculture Agriculture Coal

Aug 17, 2006 Nov 23, 2007 Nov 8, 2010 Dec 6, 2010 Dec 30, 2010

z∏.19.00 z∏.24.00 z∏.28.84 z∏.33.78 z∏.8.60

98.90 82.00 42.95 42.50 12.80

The fact that the Ukrainian president has waited a full year to visit Poland speaks volumes about this new attitude. Mr Yushchenko came to Poland three months after taking over as president. His predecessor, Leonid Kuchma, was in Warsaw just two months after his election victory in November 1999.

Trade unbalanced Value of imports from and exports to Ukraine (in € millions), 2006-2009

Imports

Exports 5,000 4,000 3,000 2,000 1,000 mln € 1,000 2,000

2006

2007

2008

2,462.70

A total of five Ukrainian companies currently trade on the Warsaw Stock Exchange, many of which joined recently. Others are said to be interested and there has even been talk of an index being created especially for Ukrainian firms, although this is unlikely to appear in the immediate future.

Feeling blue

817.36

Although Poland and Ukraine have grown apart politically over the past few years, they’ve never been closer as far as the Warsaw Stock Exchange is concerned.

The exchange opened a representative office in Kiev in mid-2006 and has actively sought to attract Ukrainian listings, with some success.

accompanied by a cooling of relations with Poland.

4,345.28

Luring Ukrainian IPOs

regional elections and is in total disarray,” said Mr Olszaƒski.

Mr Yushchenko, meanwhile, received less than six percent of the vote in last year’s presidential elections and is today considered a has-been in Ukrainian politics.

Worryingly – and unsurprisingly, given the events of the Orange Revolution – Mr Yanukovych’s unequivocal dominance of Ukrainian politics and the country’s reembrace of Russia has been

1,583.41

“The Polish Foreign Ministry was unprepared for the changes in the political status quo in Ukraine. Poland invested far too heavily in the Orange camp and had no established connections within Mr Yanukovych’s Blue group,”

Yanukovych’s group may be in power for the foreseeable future.

“Mr Yanukovych has built himself a very strong position in Ukraine. He has done some clever power sharing with many members of the Donetsk group now in the government and representatives of the RosUkrEnergo group in his [presidential] administration,” said Tadeusz A. Olszaƒski, an expert on Ukraine at the Center for Eastern Studies (OSW).

The Donetsk group is used to refer to certain powerful industrialists whose businesses are mainly concentrated in Donetsk, in eastern Ukraine.

The RosUkrEnergo group, on the other hand, comprises Ukrainian businessmen involved in the natural gas industry and trade with Gazprom, meaning they have very close links to Moscow. These two factions are believed to control most of Ukraine, economically as well as politically.

“Right now, Ms Tymoshenko and the opposition have no idea what to do. Ms Tymoshenko’s party was soundly defeated in last October’s

4,032.82

Orange Revolution of 2004, Poland invested a substantial amount of political capital in backing the pro-Western camp of future President Viktor Yushchenko and future Prime Minister Yulia Tymoshenko.

This investment paid few if any

said Jan Filip Stani∏ko, a political analyst at the Sobieski Institute, a think tank.

“It has thus taken the Polish side time to identify the current main players in Ukraine and it is only now, after a year, that we are ready to start playing the diplomatic game with them,” Mr Stani∏ko stated.

Now Poland has to make up for lost time, considering the consolidation of power which has taken place in Ukraine. It looks as though President

1,243.71

“Western institutions like NATO showed Ukraine the door, so what choice does it have?”

Since taking office in February 2010, Viktor Yanukovych has consolidated his party’s control of Ukraine

3,164.60

So how is Poland dealing with the new political reality on its eastern border? Not that well, according to some observers.

1,051.99

Backing the wrong horse

SHUTTERSTOCK

Ukrainian President Viktor Yanukovych this week makes his first visit to Poland since taking office in February 2010.

On the agenda as he meets with his Polish counterpart, Bronis∏aw Komorowski, are the upcoming Polish presidency of the EU, preparations for the Euro 2012 soccer championship which the countries are co-hosting, as well as historical matters.

Since the collapse of the Soviet Union, Poland has maintained that relations with Ukraine are of strategic importance to its foreign policy.

Poland was the first country to recognize Ukraine’s independence back in 1991 and it has consistently striven to build strong ties with its eastern neighbor.

Seven years ago, during the

2009

Source: Central Statistical Office

Investing in Poland 2011 is available now!

presents

We have also launched a new website for investors!

For investment news and analysis, visit: www.investinginpoland.wbj.pl

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

COVER STORY

JANUARY 31 – FEBRUARY 6, 2011

In search of carrots So what exactly can Poland do for Ukraine?

During President Yanukovych’s visit, issues concerning the countries’ co-hosting of the Euro 2012 soccer championship will be discussed, but much of this will be organizational in nature. Perhaps more politically relevant are matters related to the Polish presidency in the EU. Serhiy Lyovochkin, Mr Yanukovych’s chief of staff, recently confirmed to the Polish Press Agency that this would be on the agenda during talks with Polish President Komorowski.

“We are hearing signals from the Polish side that during its presidency, we can count on its help in the European integration process,” Mr Lyovochkin told PAP. Closer cooperation with the EU is certainly one of the incentives Poland can offer Ukraine, but only if the latter finds it attractive. And that remains dubious at present.

After the triumph of Mr Yushchenko and his proWestern allies in 2005, it seemed as though the doors to the EU would be flung open for Poland’s neighbor. But that never happened.

“The EU missed an historic moment just after the Orange Revolution when it did not offer full membership prospects to Ukraine. That would have greatly strengthened the pro-European camp over there and the situation might have been different today,” said Mr Adamski. “Right now, Ukraine has to be shown clearly that EU membership is something achievable.”

“Western institutions like NATO showed Ukraine the door, so what choice does it have? It has to be compliant with Moscow. After all, it is not a superpower,” said Mr Olszaƒski. “Thus the tightening of relations with Russia in recent years.”

However, Mr Adamski stressed that the main fault for Ukraine’s lack of progress on EU integration lay with the Ukrainian elite. In his view, this group failed to take steps to

13

Legal Eye

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

SHUTTERSTOCK

“There is no doubt that there has been a cooling of relations between the two countries. Mr Yanukovych has visited Moscow, Brussels, Berlin and Paris and is just now coming to Warsaw,” said ¸ukasz Adamski of the Polish Institute of International Affairs (PISM).

“On one hand, I think there is growing disappointment and increasing anxiety among the Polish elite concerning the future of democracy in Ukraine, due to the semiauthoritarianism we are witnessing there and, on the other hand, a lack of understanding among the Ukrainian elite about what exactly Poland can do for Ukraine,” Mr Adamski said.

www.wbj.pl

Orange Revolution leader Yulia Tymoshenko’s star has faded, at least for now modernize the country, to supply it with good governance and to work towards a society based on the rule of law.

Rules of the game Regardless of past policy shortcomings, it is clear that the EU – and Poland – must engage Mr Yanukovych directly. Mr Stani∏ko of the Sobieski Insitute believes the Polish side has to make certain rules plain to the Ukrainian president.

“We need to make it very clear to the Ukrainians that if they want stronger integration with the EU, they have to play

by European rules and that any

and Sweden which aims to boost ties between the EU and Belarus, Armenia, Azerbaijan, Georgia, Moldova as well as Ukraine. Opinions on its real political impact vary.

“Of course the EP initiative is very challenged right now because of the regress in democracy in Belarus, but it is a platform from which bilateral relations with Ukraine could also be deepened,” said Mr Adamski. “Our relations with Ukraine are very different from our relations with Belarus, which is a very authoritarian state.”

On the whole, Mr Adamski

“You have to pay a lot of money to get attention in Ukraine. That’s how politics work over there.” constraint on civil society, freedom of speech, etc., will meet with severe punishment.”

But what exactly would “stronger EU integration” mean in the case of Ukraine?

“We definitely need to discuss the bilateral visa issues, which we should negotiate through Brussels in order to get a coherent mandate,” said Mr Stani∏ko. “When it comes to closer economic ties, however, the picture is not all that black and white.”

Stronger EU integration would mean freer trade, and the Ukrainian industry, especially the heavy industry, is simply not ready for the EU or competition with EU firms, Mr Stani∏ko believes. In fact, he thinks it would be in Poland’s long-term interest to leave some restrictions on EU products, temporary tariffs that would give the Ukrainians time to prepare for closer integration with Europe.

Partnership predicament Then there’s the question of the Eastern Partnership, an initiative spearheaded by Poland

felt that the partnership could be an instrument in directing Ukraine to implement the process of modernization.

Mr Stani∏ko was more skeptical. “The Eastern Partnership is greatly overhyped. It is worth only €600 million. That’s not big money and that’s why there is so much going on in the rhetorical sphere,” he said.

“For Ukraine that’s too small an amount. You have to pay a lot of money to get attention in Ukraine. That’s how politics works over there.

RosUkrEnergo is a vehicle for political corruption after all.

Alas, we don’t have any PolUkrEnergos,” he concluded.

Frankly speaking Expectations for President Yanukovych’s visit are realistic, which is to say low. But it represents at the very least a sign that the two countries are

maintaining a dialogue.

That is significant given the nations’ historical and cultural ties, as well as the fact that each hosts national minority populations. Indeed, another issue to be discussed during the upcoming Komorowski-Yanukovych summit is the eventual opening of a Polish Culture institution in the city of Lviv. There have also been hints that while in Poland Mr Yanukovych might attend the opening of a similar Ukrainian institution in the city of PrzemyÊl.

Other reports suggest that the two presidents might attend a ceremony in Poland unveiling a memorial for Ukrainians killed by Polish guerillas during World War II and then cross over to Ukraine together for a similar ceremony, this time in memory of Poles killed by Ukrainians during the same period.

Whether or not the agenda includes economic matters has not been disclosed, but the two countries could benefit greatly from improved ties. Both are large markets by European standards and, very importantly, they are both emerging markets with strong potential for future growth.

“This meeting is a start.

Every such high-level meeting where leaders can speak frankly is desirable,” said Mr Adamski.

“Every country wants to have a ring of friends as its neighbors, countries with similar systems and values. We must work towards this with Ukraine,” he stated. “That’s also why we have to keep harping on them about the need to make sure they have a real democracy functioning in their country, not a fake democracy.” ●

Correction Last week’s Legal Eye column stated that air carriers are required to pay between €250-600 to passengers who are bumped due to overbooking or whose flights are canceled. The caveat that an air carrier can escape payment “if the delay or cancellation is beyond its reasonable control” was erroneously edited out. WBJ regrets the omission.

Over the years, Poland has worked to position itself as a strategic partner to Ukraine and its gateway to the European Union. One of these initiatives appears to be paying dividends. The efforts of the Warsaw Stock Exchange (WSE) to attract new foreign issuers resulted in three Ukrainian initial public offerings (IPOs) in 2010.

With a total of five companies listed, Ukraine now represents the largest group of foreign companies on the WSE. The prospects for additional Ukrainian IPOs on the WSE in 2011 are good.

Why Warsaw?

Aside from the general good reasons to do business in Warsaw, such as its unique status as Europe’s green island during the recession, the WSE has become a viable alternative to other, more-renowned European exchanges, such as Vienna, Frankfurt or even London.

What makes the WSE so attractive for Ukrainian companies is relatively easy access to capital and reasonable costs. Each year, Polish pension and open-end funds raise significant amounts of capital from investors, and they need to invest this on the WSE because they are subject to strict limitations on investing abroad. The large number of institutional and retail investors builds up the liquidity of the Polish market.

Additionally, the costs of an IPO and of the subsequent maintenance of a company’s listing on the WSE are lower than on Western European stock exchanges.

Homework Currently, it is not as difficult as it might seem at first for a Ukrainian company to have a successful IPO on the WSE. Even though Ukraine is not part of the European Union, Ukrainian companies can benefit from the single passport procedure, which provides access to all EU capital markets. To do so, the Ukrainian company must set up a holding company in an EU country and to contribute the shares of the Ukrainian operational

company to that holding company. Typically, for tax purposes, the holding companies are set up in Cyprus, the Netherlands or Luxembourg.

Let’s say our Ukrainian company likes cheese and decides on the Netherlands.

With the Dutch holding company in place, a prospectus needs to be prepared, in accordance with EU requirements (in particular, EU Regulation 809/2004). The prospectus must then be submitted for approval to the Dutch financial services authority. A prospectus is supposed to contain all information that a potential investor would need to make a decision on whether to buy shares.

Passport listing The single passport procedure means that a prospectus approved in one EU member state may be used as the basis for a listing on a stock exchange in any other EU member state.

For the WSE, the prospectus must be in English and only a short summary in Polish is required. Once the Dutch authorities approve the prospectus for the Dutch holding company of our Ukrainian firm, it may subsequently be passported to Poland and disclosed to the public. It will serve as the basis for organizing the public offering in Poland.

Other steps will need to be taken in Poland for a listing of the stock, which are the same as for a Polish company. Among others, the Dutch holding company of our Ukrainian company will need to deposit shares in the Polish National Depository for Securities and obtain admission to trading from the WSE. Once all these steps are completed, its shares will be listed on the WSE, and our Ukrainian company will be able to sell shares of its Dutch holding company to interested investors. ●

The author gratefully acknowledges the assistance of Krzysztof Ha∏adyj, a senior associate in our capital markets practice, in preparing this article.

Lokale Immobilia takes a look at Poland's preparations for Euro 2012

Is Józef Wojciechowski partnering with Grupo Prasa on its Oxygen project?

17

18

LOKALE IMMOBILIA

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

CA Immo’s CEE portfolio grows

In this issue CA Immo deal . . . . . . . . . . . . . . .15 Crown Square sold . . . . . . . . . .15 Gwiazda Morza . . . . . . . . . . . . .16 Yareal's Hoża 55 project . . . . . .16 Business Garden contractor . .16 Odrzańskie Ogrody work . . . . .16 Property-related stocks . . . . . .16 Euro 2012 preparations . . . . . .17 Oxygen partnership . . . . . . . . .18 Residential in 2010 . . . . . . . . . .18

Austrian real estate investor CA Immo Group has completed its acquisition of Europolis, an Austrian firm heavily invested in Central and Southeastern European markets. The latter entity’s property assets have been valued at €1.5 billion.

“The acquisition of Europolis has enabled us to consolidate our position as one of Central Europe’s leading real estate companies and raise our profile on the key market of Poland for the long term,” said Bruno Ettenauer, chief executive officer of CA Immo.

Following the acquisition, CA Immo’s portfolio in Poland is now valued at approximately €670 million. It comprises nine office properties, two logistics parks and the under-construction Poleczki Business Park development in

In Poland, CA Immo’s portfolio includes Poleczki Business Park in Warsaw Warsaw.

The firms’ regional branch offices will be merged on April 1. In Poland, this will mean the

fusion of Europolis Real Estate Asset Management (EREAM) and Mahler Property Services.

The resulting subsidiary will be

called CA Immo Real Estate Management Poland and it will be headed by Andrzej Miko∏ajczyk.

“By merging EREAM and Mahler Property Services, we are pooling our expertise in order to be an even more important player on the Polish market in the future. This synergy will produce benefits for both our company and the tenants of our properties,” Mr Miko∏ajczyk stated. “Being part of a financially robust international group is the best way for us to build our presence on the Polish market.”

CA Immo was established in 1987 and it concentrates on commercial real estate investment in Austria, Germany and Eastern Europe, with a focus on office properties. The acquisition of Europolis has pushed the value of CA Immo’s assets over €5 billion.

The group’s portfolio in Poland now comprises 430,000 sqm of GLA. Notable properties include the Warsaw Financial Center, Saski Point, Saski Crescent and Lipowy Office Park.

Katarzyna Piasecka

Crown Square sold to Invesco Real Estate Multinational investment management company Invesco Real Estate (IRE) has purchased Warsaw office property Crown Square. Belgian developer Ghelamco parted ways with the building for €63.7 million.

“Our Central and Eastern Europe investment team noted great potential in this high-class, well-located office building, whose tenants are strong international firms,” Paddy Bingham, director at Invesco Real Estate, commented on the transaction.

Crown Square, located near Rondo Daszyƒskiego, is the third and final building

of the Crown Investments developed by Ghelamco.

The other two edifices – Crown Point and Crown Tower – were previously sold to investment fund IMAK CEE. Delivered last April, the 13-storey Crown Square building comprises 16,000 sqm of class-A office space.

The development is BREEAM certified and its tenant roster includes Oracle, Nike, Microstrategy and GATX Rail Polska.

This is the second transaction inked by Ghelamco and Invesco Real Estate.

The first was Invesco’s 2005 purchase of another Warsaw

COURTESY OF PARTNER OF PROMOTION

Developer Robyg nearly doubled its apartment sales last year, a result which it attributes to a flexible reaction to demand and the launch of new projects. The company sold 542 units in 2010, up from 289 a year earlier. Oscar Kazanelson, president of Robyg’s supervisory board, attributed the result to his firm’s ability to forecast and adapt to buyers’ changing expectations. ●

The acquisition of Europolis gives it a strong presence in the region

COURTESY OF CA IMMO

COURTESY OF ORCO

Robyg touts 2010 sales

JAN 31 – FEB 6, 2011, LI 16/04

M&A

Cranes at Z∏ota 44 site

The first construction crane was installed last week at the site of Orco Property Group’s Z∏ota 44 high-rise project in central Warsaw. This marks the imminent restart of work at the firm’s long-delayed Polish flagship scheme.

Two more cranes will be installed at the location at the beginning of February. Designed by American architect Daniel Libeskind, the 192 meter Z∏ota 44 development had been mothballed since early 2009.

•

Crown Square was sold for €63.7 million office building, Zau∏ek Pi´kna.

“IRE’s decision to purchase another of our investments confirms that, despite

the still demanding situation in the market, the biggest investors are willing to buy high-class projects with great investment value,” said

Jeroen van der Toolen, Ghelamco’s managing director for Central and Eastern Europe.

Katarzyna Piasecka

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

LOKALE IMMOBILIA – REAL ESTATE

www.wbj.pl

Aparthotels

PBG’s 20% dividend Construction company PBG wants to keep its 2010 dividend payout at 20% of its net profit to focus assets more on contract development and expansion, Przemys∏aw Szkudlarczyk, the group’s deputy CEO told Reuters last week. He added that PGB aimed, conservatively, at a 2011 net profit close to the group’s 2010 target of z∏.220 million.

Star of the Sea on sale An upmarket aparthotel development in W∏adys∏awowo is now on sale Sales have begun on Gwiazda Morza, a new aparthotel investment being realized in the seaside town of W∏adys∏awowo. A total of 48 units are available in the first stage of

the development.

Gwiazda Morza, whose name translates to “Star of the Sea,” is being marketed to both property investors and people looking for a holiday home. It will ultimately comprise two five-storey buildings situated about 120 meters from the Baltic Sea. “I am convinced that the

WSE-listed Ronson Development sold a total of 269 units (18,500 sqm) in 2010, a figure which the firm described as “close” to the one achieved in 2009. Over the course of the year, Ronson completed four projects comprising 303 apartments and 38 houses. At the same time it launched five developments – Sakura, Verdis and Imaginarium III in Warsaw; Naturalis in ¸omianki, a suburb of the capital; and Impressio, the firm’s first effort in Wroc∏aw. ●

COURTESY OF TBWA/PR

Ronson’s 2010 sales

Gwiazda Morza will stand just next to the Baltic Sea

Property-related stocks Security

Closing price on Jan 27

% change (week)

52-week low

52-week high

% change (year)

Total shares

Market value (z∏.mln)

08OCTAVA

2.10

0.48

1.85

2.47

-11.76

125,843,667

264.27

ATLASEST

3.26

-1.21

2.60

4.83

3.49

50,322,014

164.05

BUDIMEX

99.60

-1.39

72.00

106.10

33.96

25,530,098

2,542.80

DOMDEV

47.10

-0.42

38.52

61.00

17.02

24,560,222

1,156.79

ECHO

4.43

-5.14

3.71

5.40

18.45

420,000,000

1,864.80

ELBUDOWA

166.60

-1.42

155.00

188.40

-2.57

4,747,608

790.95

ENERGOPN

14.17

0.00

13.52

17.10

2.68

23,827,044

337.63

ERBUD

52.40

-1.60

47.00

61.00

0.58

12,602,711

660.38

GANT

16.85

-1.35

15.69

26.00

-5.87

20,499,953

345.42

GTC

20.96

-4.25

20.25

25.00

-13.03

219,372,990

4,598.06

HBPOLSKA

2.70

-3.23

2.67

3.95

-28.38

210,558,445

572.72

JWCONSTR

14.49

4.17

11.06

18.69

18.97

54,073,280

783.52

LCCORP

1.51

0.67

1.37

1.73

7.09

447,558,311

675.81

MARVIPOL

9.61

-4.76

9.61

22.31

-41.33

36,923,400

354.46

MOSTALWAR

48.96

-8.06

48.93

77.00

-21.03

20,000,000

979.20

MOSTALZAB

2.70

-2.88

2.66

4.84

-32.67

149,130,538

401.16

NAFTA

23.17

0.00

22.22

31.79

0.74

5,903,203

136.78

ORCOGROUP

28.00

0.00

19.00

33.50

10.45

14,053,866

393.51

PANOVA

31.62

-2.11

27.20

37.69

17.11

8,000,000

252.40

PBG

206.40

0.58

192.00

252.00

-4.00

14,295,000

2,950.49

PLAZACNTR

4.29

-3.38

4.29

6.52

-29.56

292,647,720

1,255.46

POLAQUA

19.80

7.61

14.94

22.50

15.25

27,500,100

544.50

POLIMEXMS

3.77

1.07

3.67

5.29

-7.82

520,918,203

1,963.86

POLNORD

31.90

-1.39

30.10

44.00

-3.54

22,228,009

709.07

PROCHEM

25.20

0.04

19.90

26.50

14.55

3,895,000

98.15

RONSON

1.44

0.00

1.36

2.10

-12.20

272,360,000

392.20

TRAKCJA

3.80

-3.80

3.80

4.97

-5.24

160,105,480

608.40

ULMA

81.20

-2.17

70.00

87.95

-5.91

5,255,632

426.76

UNIBEP

9.82

0.31

5.99

10.30

58.39

33,927,184

333.16

WARIMPEX

9.70

0.00

7.64

10.30

11.11

54,000,000

523.80

aparthotel Gwiazda Morza will fulfill the expectations of both discerning investors looking for profitable investment opportunities ... and private clients seeking an exclusive seaside apartment just for their own use,” Krzysztof Sobolewski, CEO of Mierzeja Helska, the investor behind the project, said in a statement.

He added, “In the Polish market there is currently no similar class of investment situated just near the beach, by the open sea.”

Amenities will include a swimming pool, recreation facilities and a 24-hour reception area. A marina is located nearby.

Prices in Gwiazda Morza range from z∏.9,500-14,000, per sqm while units range from 24-106 sqm in size. A total of 96 apartments will be delivered in the two buildings.

Construction on the first phase will start this spring, with completion expected within 18 months. The design for the development was furnished by Archiplan.

The investor, Mierzeja Helska, is privately owned, with three main shareholders including Mr Sobolewski.

Emilia Korczyƒska

JANUARY 31 - FEBRUARY 6, 2011

Yareal launches new project in Warsaw

COURTESY OF MEDIADEM COMMUNICATION

16

Ho˝a 55 will deliver 61 upmarket apartments Developer Yareal Polska has just launched apartment sales for its Ho˝a 55 project in Warsaw. Located on ul. Ho˝a in the capital’s central district, the development will comprise two buildings, of five and six storeys, respectively, hosting a total of 61 upmarket apartments sized from 30-180 sqm.

An underground parking lot will provide space for 70 cars.

“The Ho˝a 55 scheme has been designed for people who value life in the city center but also seek coziness and prestige. Our investment is an exquisite combination of functionality and high-quality architecture which guarantees

a unique lifestyle in a modern metropolis,” Eric Dapoigny, president of Yareal Polska’s management board, said in a statement.

Yareal Polska is active in both the commercial and residential sectors of the Polish real estate market. The company’s completed projects include the realization of the Renaissance office building in Warsaw; ongoing projects include the Mokotowska Square office scheme in the capital as well as the Avangarda and Rezydencja Bia∏a residential developments in Kraków and Warsaw, respecAdam Zdrodowski tively.

Hochtief chosen for Business Garden project Developer SwedeCenter has appointed Hochtief Polska as the general contractor of the first phase of its Business Garden office project in Warsaw. The phase is scheduled for completion in Q3 2012.

Located on the capital’s ul. ˚wirki i Wigury on a sixhectare plot, the Business Garden development will comprise seven buildings totaling 90,000 sqm of space.

Cushman & Wakefield is act-

ing as the exclusive leasing agent for the scheme.

Phase I of Business Garden will provide two buildings with a total of approximately 32,100 sqm of GLA. One of them will deliver 14,600 sqm of office and retail space as well as 200 hotel rooms and a conference center while the other will comprise 17,500 sqm of office area. The developer is touting the investment as an ecological business park which will feature a number

of sustainable solutions. The company is applying for LEED certification for the complex.

SwedeCenter has been present in the Polish market since the early 1990s. The firm is currently involved in several commercial projects in the country, including the Brama Portowa office development in Szczecin and Business Garden parks in Poznaƒ and Wroc∏aw.

Adam Zdrodowski

Odrzaƒskie Ogrody shopping mall finally in construction stage Work has begun at the site of Odrzaƒskie Ogrody, a retail project in K´dzierzyn- Koêle, Opolskie voivodship. The shopping center is scheduled to open in Q3 2012.

Construction began in mid-January, around two years later than originally expected. The investor behind the scheme, the Gliwicebased PA Nova, had difficulties in funding it due to the financial crisis. In fact, the company officially cancelled the project in 2009, citing con-

struction costs, although at that time it did not “rule out trying in 2011.” Prophetic words, it seems.

Once completed, the shopping center will offer 22,000 sqm of GLA (60,000 sqm total area) hosting approximately 100 tenants. That’s somewhat smaller than originally expected – the first plan for Odrzaƒskie Ogrody called for around 30,000 sqm.

In related news, Retail Concept, a provider of services to the retail property sec-

tor, has announced that it will take part in the commercialization of Odrzaƒskie Ogrody.

“After a period of waiting, we are seeing increased interest among potential tenants in projects in medium-sized cities, such as K´dzierzynKoêle,” said Alina P´kalska, a project manager at Retail Concept.

Cushman & Wakefield is the other firm handling commercialization.

E Blake Berry

LOKALE IMMOBILIA – REAL ESTATE

JANUARY 31 - FEBRUARY 6, 2011

Euro 2012 preparation

Achieving (own) goals?

Adam Zdrodowski Five hundred days before kick-off, Poland's Euro 2012 organizers say that the bulk of planned infrastructure investments are well on track.

Experts are more critical

Achievement list According to PL.2012, the company responsible for coordinating and supervising Euro 2012-related investments in Poland, 80 percent of the key projects were at an advanced stage of realization at the end of 2010. After years of planning, the most important projects have finally moved from the preparation stage to actual construction.

“Currently, thanks to cooperation with our partners, 60 out of 81 key infrastructure projects for Euro 2012, includ-

ing stadiums, airports, railway stations as well as selected road and rail connections in and between the host cities, are in the construction stage,” Marcin Herra, president of PL.2012’s management board, said in a statement.

He added that construction of the Poznaƒ stadium had already been completed, as had that of the Warsaw stretch of the S8 express road which will link the capital with the A2 motorway. Work on stadiums in Gdaƒsk, Warsaw and Wroc∏aw is progressing apace, with all of them expected to be ready this year.

A number of airports in the host cities, Mr Herra pointed out, are now being modernized, as are railway stations in Warsaw and Wroc∏aw. The E65 rail link between Warsaw and Gdaƒsk is being revamped too. After its completion, the time needed to travel between the two cities should shrink to three-and-a-half hours, down from six at present.

Delays all over While work on the stadium projects – arguably the most important schemes from UEFA’s point of view – is firmly on schedule, many of the other investments originally planned for the Euro 2012 championships will not be delivered on time. The list of projects which – due to financial or other causes – have no chance of being realized by

17

Mostostal in Cross Point WSE-listed construction company Mostostal Warszawa has leased 190 sqm of office space within the Cross Point ¸ódê building. The location will serve as Mostostal’s headquarters in ¸ódê.

Cross Point ¸ódê was revitalized by Mermaid Properties. A representative of Mermaid stated that the firm is currently in negotiations with several companies interested in space of between 150-400 sqm.

Leszno gets a multiplex COURTESY OF NARODOWE CENTRUM SPORTU

Attention was focused last week on the state of the country’s preparations for the UEFA Euro 2012 soccer championship as the countdown clock showed 500 days left until the event’s opening game, scheduled for June 8 next year. Prime Minister Donald Tusk used the occasion to emphasize that Poland will deliver the most crucial infrastructure projects on time.

“Five hundred days before the championships, we can once again say with satisfaction that we have managed to realize the main goals, and that these stadiums will be living proof of the fact that Poles were really determined during what was, after all, a difficult time of crisis,” Mr Tusk said during a conference at the construction site of the PGE Arena stadium in Gdaƒsk.

www.wbj.pl

PM Tusk likely wouldn’t be smiling if he had taken the train mid-2012 has grown continuously.

Poznaƒ, for one, has seen cuts in road and tram-line investment, and the expansion of its airport has been delayed.

“The lack of proper road infrastructure may be cumbersome for the athletes and fans” For its part, Warsaw will have to do without a revamped Warszawa Zachodnia station, as well as without the central stretch of the city’s second subway line. Experts say it may be

difficult to finish construction on the capital’s second airport in Modlin on time.

“Certainly, we will not manage to realize all of the road projects, which we have known for some time; the lack of proper road infrastructure may be cumbersome for the athletes and fans,” said Agnieszka Durlik-Khouri, a legal and economic expert at the Polish Chamber of Commerce. She added that there are also doubts concerning the realization of investments in rail infrastructure.

When it comes to Poland’s performance so far, Adrian Furgalski, director and expert at Transport Consultants Group “Tor,” said that the country had done its job 100

percent, 75 percent, 50 percent and 25 percent when it comes to the stadium, airport, road and railway infrastructure, respectively.

The Poznaƒ airport project is delayed and faces protests from the city’s inhabitants and too much had been promised when it comes to express roads, Mr Furgalski noted.

And the reason for his rather unflattering evaluation of progress on the railways? “Not a single line has been fully modernized.”

In other words, Poland should host its Euro 2012 matches with distinction. But fans struggling to get from one match to another may well give it a red card for foul infrastructure. ●

Galeria Leszno, an underconstruction retail center in the Wielkopolski voivodship town of Leszno, recently contracted to host the first multiplex cinema in the region. Cinema3D, a new addition to the Polish cinema operator market, will open a four-screen multiplex in Galeria Leszno, with two of these screens 3D capable. The four theaters will provide 900 seats within a combined 1,400 sqm of entertainment space.

Deichmann in Wroc∏aw Distribution space developer ProLogis has leased almost 11,000 sqm of warehouse and office space in its ProLogis Park Wroc∏aw III complex in Lower Silesia voivodship to shoe retailer Deichmann-Obuwie. The tenant is expected to move into its new premises in Q2 2011. ●

18

LOKALE IMMOBILIA – REAL ESTATE

www.wbj.pl

Residential market in 2010

JANUARY 31 - FEBRUARY 6, 2011

Residential investment

Room for more investment? Wojciechowski reportedly partnering with Grupo Prasa Structure of developers' sales offers in terms of the year of completion (projects in Warsaw, Kraków, Wroc∏aw, Tri-city, Poznaƒ and ¸ódê), as of Q4 2010

2% 7%

2013 or later

9%

2012 15%

2011 32%

2010 35%

2009 2008 or earlier Source: Reas

Last year saw an improvement in the residential market, but 2011 won’t set any records In 2010, following a year of low activity in the Polish residential market, demand for housing rose dramatically.

According to data from real estate advisory Reas, by the end of last year developers in Warsaw, Kraków, Wroc∏aw, Tri-city, Poznaƒ and ¸ódê had sold almost 28,000 more residential units than in 2009.

That equates to a y/y rise of 22 percent.

At the same time, a number of projects which had been suspended during the economic crisis were restarted and new investments were launched.

According to data from the Central Statistical Office (GUS), more than 63,000 housing units were delivered in 2010, up about 42 percent on 2009. Construction permits rose by eight percent. And work on around 4,600 units was started by housing cooperatives, a rise of 10 percent

on the previous year.

Reas’ analysis states that real estate purchasers in 2010 were encouraged by the availability of mortgage offers, low interest rates, boosted incomes, decreasing margins and, most of all, optimistic prognoses on the housing market. As evidence of the former, the Polish Bank Association (ZBP) reported that banks granted about z∏.50 billion in loans last year, about one fourth more than in 2009.

Nevertheless, prognoses for 2011 are not overly optimistic. According to Reas, developers are planning to invest in more apartments, but want to remain responsive to changes on the market.

Supply is relatively high, so prices are unlikely to increase greatly. At the end of December 2010, the six aforementioned cities had a total of around 9,400 apartments unsold in their primary markets. In addition, demand for mortgages is expected to fall in conjunction with the rise of interest rates and restrictions on foreign-currency loans recently announced by Polish Financial Supervision Authority (KNF).

Katarzyna Piasecka

The construction tycoon is reputedly ready to help bring Oxygen to the market Józef Wojciechowski, president of Warsaw Stock Exchange-listed developer JW Construction (JWC), has entered into a partnership agreement with Spanish developer Grupo Prasa according to Gazeta Wyborcza Sto∏eczna. Together they will realize the Oxygen residential project in central Warsaw, the report said.

At issue is the alleged purchase of a 50 percent stake in GPI Wronia, a special-purpose vehicle established by Grupo Prasa, by Mr Wojciechowski.

The deal is seen as a means for Grupo Prasa to speed up negotiations with banks to secure financing for the investment, since Mr Wojciechowski is well known in the market.

Meanwhile, the development’s central location makes it a profitable opportunity for the Polish construction magnate.

A subsidiary of JW Construction is also expected to serve as general contractor on the project. Real estate services provider Emmerson is respon-

COURTESY OF EMMERSON

Home improvements

The Oxygen building will comprise 280 residential units sible for commercialization.

However, representatives for JW Construction, Emmerson and GPI Wronia declined to confirm or deny the veracity of the reported partnership between Mr Wojciechowski and Grupo Prasa.

The eight-storey Oxygen building will be located at the intersection of ul. Grzybowska and ul. Wronia. Once completed it will host 280 units ranging in size from 39-155 sqm. The least expensive apartments will start at z∏.7,600 per sqm, while

the penthouses will cost around 13,000 per sqm.

Grupo Prasa has reportedly already found buyers for 60 housing units. The investment is scheduled for delivery in summer 2012.

The Spanish group also owns an approximately five-ha plot on the opposite side of ul.

Wronia which it purchased together with the Oxygen site from company Browary Warszawskie. The cost of this transaction reportedly amountKP ed to z∏.170 million.

20

MARKETS

www.wbj.pl

JANUARY 31 – FEBRUARY 6, 2011

Stocks report

world stock indices DJIA

NASDAQ

11,980.53 (Jan 27 close)

S&P500

2,755.86 (Jan 27 close)

1.35% (for the week)

FTSE100

1,299.45 (Jan 27 close)

1.81% (for the week)

DAX

5,972.18 (Jan 27 close)

1.59% (for the week)

1.71% (for the week)

More falls on the way?

NIKKEI225 7,155.31 (Jan 27 close)

10,478.66 (Jan 27 close)

1.87% (for the week)

0.37% (for the week)

CHANGE: 3.48%

CHANGE: 2.96%

CHANGE: 3.33%

CHANGE: 1.23%

CHANGE: 2.61%

CHANGE: 1.22%

(year to Jan 27)

(year to Jan 27)

(year to Jan 27)

(year to Jan 27)

(year to Jan 27)

(year to Jan 27)

52-week high: 12,072.20

52-week high: 2,766.17

52-week high: 1,301.29

52-week high: 6,090.50

52-week high: 7,180.15

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: 8,796.45

Tomasz Jerzyk, technical analyst DM BZ WBK SA Polish stocks retraced some recent gains last week, as the blue-chip heavy WIG20 index shed one percent and the overall WIG lost 0.9 percent.

It was very mixed period on the stock market. The German DAX index and major US indices set new multi-month highs, but WSE indices weren’t able to follow.

Polish GDP figures for 2010 (3.8 percent) didn’t affect trade much, but US data on Q4 GDP (3.2 percent) was below expectations and caused some profit taking on Friday, and this was seen on the WSE. Foreign investors also sold emerging markets shares due to the riots in Egypt.

Chemicals suffered the most, with the sector benchmark losing over four percent. Those stocks had been investors’ darlings since early

Major indices WIG

47,533.04 (January 27 closure)

WIG20

2,724.95 (January 27 closure)

Change for the week: 0.04%

52-week high: 48,371.02

Change for the week: -0.05%

52-week high: 2,794.58

Change year to January 27: -0.24%

52-week low: 37,322.52

Change year to January 27: -1.08%

52-week low: 2,173.25

48,500

2,800

48,000

2,750

47,500

27.01

26.01

25.01

24.01

21.01

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

27.01

26.01

25.01

24.01

21.01

20.01

19.01

18.01

17.01

14.01

13.01

12.01

11.01

10.01

07.01

05.01

04.01

2,600

03.01

46,000

31.12

2,650

30.12

46,500

30.12

2,700

47,000

Top 5 OPTIMUS LENA IRENA PROTEKTOR SYGNITY

Closing 5.10 2.75 1.29 6.16 20.00

% change (week) 52-week high 24.39 5.10 21.68 2.75 19.44 5.18 19.38 6.16 18.69 20.00

52-week low 1.15 1.74 0.65 2.81 11.90

Top 5 BRE TPSA GETIN PKNORLEN LOTOS

Closing 307.70 16.91 12.54 47.50 39.28

% change (week) 5.27 5.16 3.21 3.01 2.56

52-week high 312.50 18.65 12.54 49.00 39.56

52-week low 220.10 14.10 8.75 31.05 25.52

Bottom 5 REMAK MOSTALEXP CIECH GASTELZUR TECHMEX

Closing 53.20 1.25 28.50 0.67 0.30

% change (week) -15.49 -13.79 -13.24 -11.84 -11.76

52-week low 24.21 1.22 19.50 0.65 0.27

Bottom 5 GTC TAURONPE PEKAO ASSECOPOL CEZ

Closing 20.96 6.29 171.00 52.85 134.70

% change (week) -4.25 -3.23 -2.79 -2.49 -2.32

52-week high 25.00 6.89 196.50 60.00 148.80

52-week low 20.25 5.04 148.30 49.24 118.70

52-week high 67.45 2.30 34.90 2.08 2.30

Currency report

A week of relief for the currency markets

Other indices mWIG40

2,850.89 (January 27 closure)

sWIG80

12,612.29 (January 27 closure)

Change for the week: 0.58%

52-week high: 2,850.89

Change for the week: -0.42%

52-week high: 12,700.49

Change year to January 27: 1.54%

52-week low: 2,213.51

Change year to January 27: 2.96%

52-week low: 10,980.45

Kamil Cisowski, X-Trade Brokers Dom Maklerski SA

13,000

2,900

12,700

2,850

12,400 2,800 12,100 2,750

NewConnect

61.29 (January 27 closure)

WIG-Banki

27.01

26.01

25.01

24.01

21.01

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

30.12

11,500

27.01

26.01

25.01

24.01

21.01

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

30.12

31.12

11,800

2,700

6,807.72 (January 27 closure)

Change for the week: -0.44%

52-week high: 64.04

Change for the week: -0.47%

52-week high: 7,262.73

Change year to January 27: -3.34%

52-week low: 54.64

Change year to January 27: -2.22%

52-week low: 5,440.90

65.0

7,100

63.5

7,000 6,900

62.0

6,800 60.5

SOURCE: WSE

27.01

26.01

25.01

24.01

21.01

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

30.12

6,600

27.01

26.01

25.01

24.01

21.01

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

6,700 30.12

59.0

December 2010, so the correction looked quite natural.

Financials and real-estate developers were also down.

Telecoms and oil stocks outperformed the major WSE indices, largely due to TP and Lotos. The latter company soared more than six percent on Friday, a performance linked to a declaration by CEO Pawe∏ Olechnowicz that Lotos’ 2011 net profit target is set at z∏.1 billion. The most optimistic forecast (by DM BZ WBK’s Pawe∏ Burzyƒski) was at z∏.871 million, so the market took note and the stock went up sharply.

I have the impression that the market is a bit weaker, but there are still many stocks which could gain.

However, I expect some more downside action in the coming weeks.●

Last week was the first week in 2011 to bring a little relief.

In the absence of sudden and unexpected moves on most currency pairs, the GBP/USD was without a doubt the most interesting cross.

The preliminary release of British GDP data for Q4 – which was both negative and a full percentage point lower than forecast – proved a shock. The British pound immediately collapsed, a move fueled by prior expectations of future Bank of England policy.

As of last week, the policy situation remained unclear, as two members of the British Monetary Policy Committee decided to vote for an interest rate hike despite the British economy lack of growth. This illustrates very clearly how

serious the danger of inflation is.

Probably the most important event of the week, the meeting of the US Federal Open Market Committee, resulted in no major moves on currency markets. The FOMC’s statement supported the Federal Reserve’s quantitative easing program and confirmed that no changes in monetary policy would take place without a stronger revival of the US economy and lower unemployment figures.

The lack of events supporting the dollar resulted in further euro appreciation.

Meanwhile, after weeks of constant strengthening, the z∏oty depreciated slightly. The present technical situation shows us some potential for growth on both the EUR/PLN and USD/PLN. ●

currency rates 3.4498

3.4624

3.4415

3.4421

3.4485

24.01

25.01

26.01

27.01

28.01

28.01

27.01

26.01

25.01

24.01

SOURCE: NBP

3.4718 21.01

0.0960

0.0960

0.0950

0.0959

3.5

3.0

21.01

28.01

27.01

26.01

25.01

24.01

PLN-100JPY

4.0

0.08

21.01

28.01

27.01

26.01

25.01

24.01

21.01

0.0959

3.0138

3.0171

2.9929

3.0120

2.9759

2.9870

4.5257

3.0

2.5

4

PLN-RUB

0.10

0.0957

PLN-CHF

3.5

4.5296

4.4767

4.5053

4.5568

4.5732

2.8501 28.01

27.01

26.01

25.01

24.01

28.01

27.01

26.01

25.01

24.01

21.01

21.01

2.8

3.8

PLN-GBP

5

2.8508

2.8280

2.8558

2.8779

3.9111

2.9

2.8561

PLN-USD

3.0

3.9009

3.8777

3.8777

3.8936

4.0

3.8765

PLN-EUR

4.2

THE LIST

JANUARY 31 – FEBRUARY 6, 2011

Book of Lists

www.wbj.pl

21

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 70 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 business information providers.

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

Business Information Providers

Rank

Ranked by number of reports prepared in 2010

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

Number of reports prepared

Revenue from providing business information (z∏. mln)

Total revenue (z∏. mln)

Examples of major databases used

Possibility of downloading reports from internet

Average price of report

Other services offered

Full-time employees / Judicial correspondents / Year founded

Ownership: Polish / Foreign

31 2003

Biuro Informacji Kredytowej 94.0%; Polish Security Printing Works - 4.5%; Polish Bank Association - 1.4% None

Top local executive / Title

2010 / 2009 / 2008 / 2007

Biuro Informacji Gospodarczej InfoMonitor SA ul. Canaletta 4, 00-099 Warsaw 1 22 486-5601/22 486-5602 biuro@infomonitor.pl www.infomonitor.pl

7,156,828 5,529,744 4,556,297 1,455,297

9.6 7.0 5.0 4.0

9.6 7.0 5.0 4.0

Own database; BIK Database; Polish Bank Association Database

✓

z∏.10-30

Contractor monitoring; reporting of debtor to Central Record of Debtors; prevention seal; PC D∏u˝nik; payment call; statistical and analytical reports

Krajowy Rejestr D∏ugów Biuro Informacji Gospodarczej SA ul. Armii Ludowej 21, 51-214 Wroc∏aw 2 71 785-0120/71 785-0121 krd@krd.pl www.krd.pl

6,349,213 4,277,497 2,392,577 966,000

64.5 46.4 30.4 20.8

64.5 46.4 30.4 20.8

Own database

✓

z∏.9-19

Reporting debtors; contractor monitoring; register check

492 2003

Ma∏gorzata Kaczmarski 100% None

Adam ¸àcki

Big-Duo Informacja Gospodarcza Sp.C. ul. Krakowska 45, 47-200 Cz´stochowa 3 34 194-34/34 361-1444 biuro@bigduo.pl www.bigduo.pl

850,000 757,000 740,000 765,000

WND WND WND WND

WND WND WND WND

www.bigduo.pl; www.medycyna.bigduo.pl; www.moto.bigduo.pl

✓

WND

WND

WND WND 1991

Wojciech Srokosz - 50%; Anna Czank - 50% None

Wojciech Srokosz

Dun & Bradstreet Poland Sp. z o.o. ul. Jana Olbrachta 94, 01-102 Warsaw 4 22 533-2400/22 533-2424 info@dnb.com.pl www.dnb.com.pl

283,000 188,000 92,400 80,000

11.5 10.3 8.4 8.9

11.5 10.3 8.4 8.9

GUS database; KRS database

✓

z∏.220

Information on request; industry analysis

50 50 1993

None Martin Coufal; Bisnode 100%

S∏awomir Grzelczak

20,000 16,000 5,000 1,000

3.0 2.2 1.2 0.4

6.3 5.0 3.5 1.0

WND

✓

z∏.55

Detective services; economic inquiry; business safety; risk management

25 60 2006

Bartosz Pastuszka - 100% None

Bartosz Pastuszka

3,500 NA NA NA

WND NA NA NA

WND NA NA NA

BIG database; KRS database; Regon database

✓

z∏.23

WND

2 WND 2009

S∏awomir Szopa - 95% None

S∏awomir Szopa

WND WND

WND WND WND WND

WND WND WND WND

WND

-

z∏.50-150

Investigations; debt collection

WND WND 2006

Micha∏ Faleƒski - 100% None

Micha∏ Faleƒski

Varied

Contractor monitoring, both in Poland and abroad; company visitation; real estate reports; industry analyses; information on request; Coface Contact database with online update

222 40 1992

WND Coface Central Europe Holding - WND%

Katarzyna Kompowska

WND

Local inspections; foreign debt collection; wide range of services for the eastern market; unique system of BIG database monitoring

WND WND 1991

None CRIF - 100%

Sandra A. Boninsegna

IBBC Group Al. Szucha 11B, 00-582 Warsaw 5 22 203-5371/22 203-5372

office@ibbcgroup.com www.ibbcgroup.com

InformacjaKredytowa.pl Sp. z o.o. ul. Grochowska 304/11, 03-842 Warsaw 6 22 698-3778/22 698-6778 info@informacjakredytowa.pl www.informacjakredytowa.pl

Aliant Company ul. Konopackich 22B/7, 87-100 Toruƒ NR 56 622-1010/56 622-1010 aliant@aliant.de www.aliantcompany.com

Coface Poland Credit Management Services Sp. z o.o.

Al. Jerozolimskie 136, 02-305 Warsaw NR 22 465-0000/22 465-0055 office@coface.pl www.coface.pl

WND WND WND WND

WND WND WND WND

WND WND WND WND

CRIF Sp. z o.o. ul. Tr´backa 4, 00-074 Warsaw NR 22 630-9623/22 828-9921 info.pl@crif.com www.crif.pl

WND 9,800 7,500 6,900

WND WND WND WND

WND WND WND WND

Notes: Notes: NA = Not Applicable, NR = Not Ranked, WND = Would Not Disclose. Research for the List was done in January 2011. Number of employees and ownership structure are as of December 2010. All information pertains to the companies’ activities in Poland. Companies not responding to our survey are not listed.

Own data base

WND

✓

✓

Mariusz Hildebrand President

President

Co-owner

Vice President

President

President

Owner

President

President

To the best of WBJ ’s knowledge, the information is accurate as of press time. While every effort is made to ensure accuracy and thoroughness, omissions and typographical errors may occur. Corrections or additions to The List should be sent, on official letterhead, to Warsaw Business Journal, attn. Joanna Raszka, ul. Elblàska 15/17, 01-747 Warsaw, via fax to (48-22) 639-8569, or via e-mail to wbjbol@wbj.pl. Copyright 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.

ENTERTAINMENT

www.wbj.pl

Art exhibition

Noble portraits

Lech Jankowski is a composer, painter and anthropologist. His works are prominent in both Polish theater and film and his exhibitions are notable for the ways in which they straddle the spheres of music and theater. Free entry.

“Anna Senkara: Nobleman” Zach´ta National Gallery of Art through February 20

Exhibition

COURTESY OF ZACH¢TA

The shattering of Warsaw

This video installation project from a promising young Polish artist follows the real-life character of socialist party activist Franciszek Szlachcic (Francis Noble). The installation looks at the man from his son’s point of view and puns on their surname to reflect the varying roles of the noble classes throughout Polish history.

COURTESY OF JULIAN BRYAN/HISTORY MEETING HOUSE

America po polsku

COURTESY OF THE ROYAL BATHS MUSEUM IN WARSAW

“Poles in America – 400 years” The Royal Baths Museum in Warsaw through June 30

Photographer and journalist Czes∏aw Czapliƒski draws on 30 years of experience in the field to document both the presence and impact of Poles in the US. Works on display include images of the early days of Polish settlers as well as eminent Poles: from directors, critics, graphic artists, poets and writers to political scientists, tennis players, jazz musicians and astronomers – the aim being to ingrain such figures into public memory. Free entry.

Julian Bryan was one of the only foreign photojournalists in Warsaw during the turmoil of September, 1939. His moving photos of the defense of Warsaw form the basis of this exhibition and the background to an exceptional man who, across the airwaves, pleaded with President Roosevelt to provide aid for war-stricken Poles. The multimedia exhibition is comprises rarely seen photographs, newspaper excerpts, film chronicles and radio recordings. In addition, there are photographs of Bryan’s post-war travels around Poland. During these travels he was, remarkably, able to uncover some of the heroes of his war-time images. The two main films (one a contemporary documentary, produced by Bryan) are in English.

Exhibition

Evolutionary ideas

Art Exhibition “Man – Extraordinary Evolution” Palace of Culture and Science through October 29

Complicated canvas

COURTESY OF LECH JANKOWSKI

Lech Jankowski “A Break in the Dark” Danish Cultural Institute (www.dik.org.pl) through March 1

Travel through time and space to witness the fascinating world of evolution. This is a whistlestop tour through the works of Darwin and Wallace, the Galapagos Island and the Malay Archipelago. Cross the threshold into the “human line” and meet your ancestors: from the Pikaia of the Cambrian sea to the hominids. Study a huge phylogenetic tree with a comprehensive chronology of all of the world’s living organisms and ponder the latest stage of the process of life. The exhibition offers a wide array of visual materials, from 3D animations to reconstructed fossils, extracts from Darwin’s journals and live zoological exhibits (iguanas and insects). Free entry. ●

Content provided by the Warsaw Insider.

For more information on culture and entertainment in Warsaw this month, pick up the February issue.

Theater

‘Our Class’ welcomes anglophones “Our Class” (“Nasza Klasa”) February 17 at 7 pm Teatr na Woli

“An American in Warsaw: The capital in Julian Bryan’s lens, 1936-1974” History Meeting House through July 20

Photography

JANUARY 31 – FEBRUARY 6, 2011

On February 17, Teatr na Woli will host its first English-supertitled performance of “Our Class” (“Nasza Klasa”), an acclaimed play by stage writer and director Tadeusz S∏obodzianek. The theater intends to repeat the event once a month thereafter.

Mr S∏obodzianek is a Polish playwright, but the official premier of “Our Class” was held at London’s Royal National Theatre. The original production enjoyed a successful run, lasting from September 2009 to January 2010, and it earned strong reviews in The Guardian, The Independent and The Telegraph, to name a few.

The supertitles displayed during the monthly performances will be taken from the script used for the London performances.

The play’s title, “Our Class,” is itself a play on words referencing Nasza-Klasa.pl, a popular social networking service in Poland. But make no mistake, this is no “Social Network” style drama about startups and modern technology.

The script centers on 10 school friends, a mix of Jews

COURTESY OF TEATR NA WOLI

22

Poland’s troubled history takes center stage and Christians, from a small Polish community which, although unnamed, is modeled on Jedwabne, the northeastern town infamous for the massacre of hundreds of Jews in 1941. “Our Class” chronicles the characters’ lives from school days to (sometimes gruesome) deaths as Poland passes through World War II, communism and into the postcommunist era.

With a length of about three hours, the play has been chided for dragging in its second half, but most reviews during its British run gave it a solid four-out-of-five stars.

Another production will open this April in Toronto and, according to a spokesperson for Teatr na Woli, talks are currently underway for runs in Hungary and Spain.

E Blake Berry

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

Royal Castle Pl. Zamkowy 4 www.zamek-krolewski.com.pl Simonis Gallery ul. Burakowska 9 www.simonisgallery.com

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

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

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

Królikarnia National Gallery ul. Pu∏awska 113a www.krolikarnia.mnw.art.pl

Historical Museum of Warsaw Old Town Square 28-42 www.mhw.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

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 31 – FEBRUARY 6, 2011

www.wbj.pl

23

Tech Eye

For the kids

COURTESY OF RAZER

We’ve got toys on the brain this week, and one of the most interesting is an electric model car from Audi. The “Auto Union Type C e-tron study” has been

COURTESY OF AUDI

Once upon a time, in a village far, far away, all of Techeye’s toys were stolen.

The end.

That’s a true story, unfortunately. We never found out who stole our toys or why, and thus never achieved any sense of closure. According to Mum, the experience made us the man-child we are today.

Then again, Mum also swears that peanut butter and pickle sandwiches can “cure liberals.”

Whatever the reason, Techeye is fond of toys, which is why we’ve had such a great time recently. The London Toy Fair, held last week, was, as always, an interesting event. While the explosion of Justin Bieber-themed paraphernalia was a little disturbing, and the toys aiming to cash in on this year’s “Royal Wedding” were just plain sad, our overall impression was that toys are still awesome in 2011. Especially Lego.

But the London Toy Fair is just a warm-up exercise when compared to this week’s Spielwarenmesse International Toy Fair in Nuremburg, the world’s largest toy-stravaganza. This annual trade fair is a lot like the dreams of toy heaven that we had as a boy, except there are sweaty men shouting things like “Hausfrau, ein kleines Weissbier mit Dachshund, bitte!” and discussing the most efficient way to double the amount of childlike innocence manufactured into each product.

deemed suitable for children and adults of modest proportions. It has a max speed of 30 km/h and a range of about 25 km; recharging its battery takes around two hours.

The AUTCe-ts is just a prototype at the moment, as you may have guessed from its robot-flavored name, but if the buzz in Nuremburg is strong enough

For the big kids Another nice bit of kit is Razer’s new Ferox “mobile gaming & music speakers.” This one isn’t strictly a toy – at least not in the eyes of the average 10 year old – but we’re dying to play with it, so it must qualify on some level. Moreover, the Ferox seems like a natural complement to the 3DS.

COURTESY OF NINTENDO

COURTESY OF RE:CREATION GROUP

Playtime for Techeye

then Audi might put it into production.

Among other cool gadgets was Nintendo’s 3DS, an update of the Japanese firm’s 2004 handheld gaming system.

We wrote about the 3DS last year when it was announced, but it seems that Nintendo has made good on its promise of a glasses-free 3D experience, at least as long as you keep your head rigidly immobile while playing.

In fact, Techeye hereby dubs the 3DS “THE gadget for gamers in neck braces.”

Regular 2D play is fine, though, and the graphics capabilities have been upgraded from the original DS. The basics of the device – dualscreen gameplay, lots of quirky games to choose from – remain the same. It will hit shelves on March 25 with a €249.99 (z∏.969) price point.

The product’s motto says it all: “Tiny but Mighty.” With their optimized this and omni-directional that, not to mention the “expanded bass resonance chamber,” these pint-sized speakers are designed to be crisp-yet-thumpy.

Razer doesn’t really explain why you’d want to drag speakers around with your gaming equipment, but apparently there’s a demographic out there somewhere. If that includes you, expect to pay $59.99 (z∏.169).

And finally something for the Monty Python fans out there. We’re not even going to pretend this is a toy, but if you’re into “The Life of Brian” and enjoy a fine pinot noir now and again, you might be interested in the Biggus Dickus corkscrew.

There’s not much to say about it, really. It’s tasteless, likely to displease your mother-in-law and looks to be questionably engineered (in our opinion). But on the plus side, it’s tasteless and likely to displease your mother-in-law.

Biggus Dickus is available from Amazon and plenty of other online retailers.

Pay more than £9.99 (z∏.44.89) and you’re getting screwed. ●

Ever dreamed of a toy heaven filled with Bieber, Audi and Weissbier mit Dachshund? Let us know: techeye@wbj.pl

To advertise in WBJ’s classifieds section, contact Ms Agnieszka Brejwo, at (+48) 222-577-526 or abrejwo@wbj.pl

Zebra Tower, Warsaw

Hotel Grand, Sopot

Focus Park, Zielona Góra

Złote Tarasy, Warsaw

The safety of your property is invaluable.

We understand that.

Would someone trust us with the manned security of their most important properties if they didn’t trust our professionalism?

www.citysecurity.pl