WBJ #27-28 2012

Tech Eye: Tablet computers from Microsoft and Google

Taiwan’s top diplomatic representative in Poland discusses trade and Chinese relations 8-9

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Interview: David Yi-min Liu

VOLUME 18, NUMBER 27-28 • JULY 9-22, 2012 . z∏.12.50 (VAT 8% included) . ISSN 1233 7889 INDEX-RUCH-332-127

LOKALE IMMOBILIA

Since 1994 . Poland’s only business weekly in English

Breaking through COURTESY OF HB REAVIS

REAL ESTATE

• HB Reavis offices • Property in Praga • Residential in focus: Developers

2.9%

American football is Poland’s fastest growing sport, and businesses are getting in on the action

The World Bank says Poland’s economic growth will lead the region this year

12-13

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In this issue

SHUTTERSTOCK

News . . . . . . . . . . . . . . . . . . . . . . .2-4 Euro 2012 in Focus . . . . . . . . . . . . .5 Business . . . . . . . . . . . . . . . . . . . .6-7 Interview . . . . . . . . . . . . . . . . . . . .8-9 Finance & Economics . . . . . . . . . .10 Cover Story . . . . . . . . . . . . . . . .12-13 Opinion & Analysis . . . . . . . . . . . .14 Lokale Immobilia . . . . . . . . . . .15-17 The List . . . . . . . . . . . . . . . . . . .18-19 Markets . . . . . . . . . . . . . . . . . . . . . .20 Sports . . . . . . . . . . . . . . . . . . . . . . .21 Lifestyle . . . . . . . . . . . . . . . . . . . . .22 Last Word . . . . . . . . . . . . . . . . . . . .23

The saga continues

Proud Poland

The most recent EU summit yielded more progress than usual, but much still remains unresolved 3

The country produced a world-class championship tournament, and Poles are right to feel great about it

5, 14

NEWS

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Poland’s Olympic hopefuls

Tomasz Majewski

Following the national soccer team’s disappointing groupstage exit at Euro 2012, attention is now firmly fixed on Poland’s Olympic team.

Poland’s throwers offer perhaps the best chance of Olympic glory in London, with gold-medal winning shot putter Tomasz Majewski currently in fine form following victory at the Polish national championships in mid-June. The 300pound athlete won gold in the 2008 Beijing Olympics with a throw of 21.51 meters, and more of the same will be expected of him in this year’s event.

Piotr Ma∏achowski, who won silver in the discus in 2008, is another of whom much is

expected in London. Mr Ma∏achowski lacks the height of most discus throwers, but more than makes up for it with his fast ring speed. On the track, European 800-meter champion Marcin Lewandowski will face strong competition from the world’s best, while Poland is one of just four countries to have entered a team for each of the four relays.

Polish tennis star Agnieszka Radwaƒska could also be expected to challenge for gold, following her history-making march to the Wimbledon final (see story, p. 21).

In team sports, Poland’s men’s volleyball team is expected to fare well, following its victory in the FIVB

z∏.20 million

World League Finals over the world’s top-ranked side, Brazil.

But the buildup to the games hasn’t been just about on-field heroics.

Sprint canoeist Aneta Konieczna, who won silver in 2008, says she will defy the odds and compete in the games, despite her ongoing battle with cancer.

“Cancer does not choose. But I would not want to talk before the games about [whether going] was risking my life or health,” she told reporters.

“I feel very good, I am ready to start in London,” she said.

Undoubtedly the biggest star of the games will be Jamaican sprinter Usain Bolt.

The three-time Olympic gold medalist holds the world record in the 100 meters, the 200 meters and – along with his teammates – the 4 x 100 meters relay record. However, Mr Bolt was beaten in both the 100 meters and 200 meters by Yohan Blake in the Jamaican Olympic trials, suggesting the battle for his Olympic titles will be fierce.

Fireworks can also be expected from the Brazilian soccer team, which is packed full of attacking talent in the likes of Neymar, Hulk and Alexandre Pato.

The Olympics will take place in London between July 27 and August 12.

Gareth Price

is how much Kulczyk Holding has donated towards the construction of the Museum of the History of Polish Jews.

48 points was the level to which the Polish manufacturing Purchasing Managers’ Index (PMI) fell in June, reaching a 35-month low.

z∏.1.72 billion is the amount five leading Polish companies plan to invest in shale gas research and production by 2016.

4.75 percent is the current benchmark interest rate in Poland following the monthly meeting of the Monetary Policy Council. The Council left the rate unchanged from last month.

Quote of the Week “Ewa Kopacz is kicking democracy in the ass.”

Robert Biedroƒ, an MP from the liberal Palikot’s Movement party, complains about Speaker of the Sejm Ewa Kopacz of the ruling Civic Platform party, who he says is not allowing the opposition’s legislative proposals to even be debated in parliament.

Figures in focus Travel choices Outbound holiday trips as a percentage of total holidays, selected EU27 countries in 2011 100 80 **Highest in EU27 *Lowest in EU27

60 40 20

Bankruptcies continue to rise Some 417 Polish companies went bankrupt in the first half of the year, according to data from Coface Poland and Bisnode Polska. That’s 20% more than in the corresponding period of 2011. ●

The Mazury district is celebrated mainly for its virgin lakes and magnificent forests. Follow WBJ ’s sister publication Warsaw Insider as it explores the modern history of Mazury while exposing the district’s more sinister side.

Source: Eurostat

Company index ABI Research................23 Icon Real Estate............16 Retail Provider ..............17 Ablon Group ..................15 Ipopema Securities ........5 Ryanair ............................4 Alma Market ................17 KBC................................13 Samsung ......................23 AP Szczepanik ..............15 Kulczyk Holding SA ........3 Apple..............................23 Lenovo ..........................23

DATELINE

July/August JULY 14 Event:

Location: Web:

15 Event:

RENDEZ-VOUS WITH FRANCE

Web:

National Stadium, Warsaw superfinal.pl

A new way to celebrate July 14. On that day supporters of France, inhabitants of the capital and tourists will come to Saska K´pa. It should be a great opportunity to promote the French presence in Poland and to strengthen the image of French companies.

Saska K´pa ccifp.pl

17

YOUNG ART AUCTION

Event:

Works by young artists will be auctioned off, with the starting price of each work at z∏.500.

DESA Unicum, ul. Marsza∏kowska 34-50 at 7 p.m desa.pl

NAC VII SUPERFINAŁ The championship of the top league of Poland’s American football association, known as the NAC VII Superfina∏, will pit the country’s two best teams from this up-andcoming sport against each other – and in the National Stadium in Warsaw no less. There will be several activities during the day leading up to the final, and is set to be a family friendly affair, with plenty for the kids to do.

Areva ................................7 Lotos ..............................12 Asus ..............................23 Lubasa ..........................15 Atlas Estates ................16 Magnus Group ..............16

Location:

Location:

Web:

AUGUST 10-14 ARABIAN HORSE DAYS Event:

Location: Web:

Arabian Horse Days are an annual event dedicated to Polish Purebred Arabian Horses organized by the Polish State Studs in Janów Podlaski, Micha∏ów and Bia∏ka to honour the Polish Arabian Horse breeding program.

Janów Podlaski prideofpoland.pl

Sp ain Ro ma nia *

bo

urg

Poland’s LGBT community may soon receive protection against hate-speech crimes as the result of a new amendment to Poland’s penal code that Civic Platform (PO) plans to submit to parliament.

The code currently penalizes hate speech motivated by race, ethnicity or nationality.

Those found guilty can face punishments from a fine to as much as two years in prison.

Bunkers of northern Poland

Lux em

PO to introduce LGBT protections

E Cz ech U27 Re pu blic Po lan d Fra nce

0 UK Lith ua nia Ge rm an y

On WBJ.pl

**

Belarusian officials conditionally released outspoken critic of the government, Andrzej Poczobut, from jail in late June. Mr Poczobut, the Belarus correspondent for Gazeta Wyborcza, was arrested for insulting Belarusian President Alexander Lukashenko.

The release came ahead of Mr Lukashenko’s visit to Ukraine for the final of Euro 2012, an event for which Polish President Bronis∏aw Komorowski was also in Kiev.

Numbers in the News

m

Belarusian dissident released

IN THE SPOTLIGHT

lgiu

“It is more important to maintain economic growth than to cut spending at all costs to bring the deficit below 3% of GDP,” Deputy Finance Minister Jacek Dominik told reporters.

Economists understand these words clearly: Since the economy is slowing down, the government will now ease up slightly on austerity measures, Dziennik Gazeta Prawna wrote. In order to achieve his goal of lowering the deficit to 2.9% of GDP, Finance Minister Jacek Rostowski would have to cut expenses significantly.

JULY 9-22, 2012

Be

Growth over belttightening?

COURTESY OF WIKIMEDIA COMMONS

2

Saudi Aramco ..............12 Skanska Property Group ............................15 Sky Club ..........................7

Bisnode Polska ..............2 Maylane Polska ............16 Synthos ............................5 BZ WBK ........................11 Mediterranean Shipping Tacit Development CA Immo ......................17 Company ......................12 Polska............................16 CBRE ............................17 Meji Yasuda ..................13 Talanx Coface Poland ................2 Menolly Poland ............16 International AG............13 Dom Development ......16 Microsoft........................23 E&L Architects ............15 Myoni Group..................16 Echo Investment ..........16 Orco Property Group ....16 EDF ..................................7 Orlen ..............................12 Eko-Park ......................16 PBG ..................................5 Enea ..............................13 peter nielsen &

Tarczyƒski......................12 Tauron............................13 Tesco ................................6 The National Sports Centre ............................13

Energa ..........................13 partners ..........................7 Toshiba ............................7 Espirito Santo

PGE ............................7, 13 UBM ..............................17

Investment ......................5 PGE EJ ..........................17 Warsaw Stock Fenix Capital ................16 PGE Energia Jàdrowa ....7 Exchange ........................3 Gdaƒsk Shipyard ............5 Polish American Football GE Hitachi Nuclear

League ..........................12

Energy..............................7 Prime Real Estate Google............................23 Solutions........................12 HB Reavis Poland ........15 Rafako..............................5 Home Broker ................16 RED-Real Estate

Warta..............................13 Westinghouse ................7 WindSpace ......................6 Wizz Air............................4 WS Sanniki ......................6

HP ....................................6 Development ................15 X-Trade Brokers DM ....20 HSBC ............................11 redNet Property Group 16 Zdrojowa Invest ............16

NEWS

JULY 9-22, 2012

www.wbj.pl

Euro-zone crisis

European Parliament rejects ACTA

Battle to save euro zone continues

The European Parliament has voted against signing up to the controversial Anti-Counterfeiting Trade Agreement (ACTA). ACTA aimed to protect the intellectual property in both digital and physical goods. It was originally supported by the Polish government but Prime Minister Donald Tusk changed his mind after several demonstrations against the treaty were held in Poland.

The euro zone’s leaders and the European Central Bank have cranked up their efforts to quell the ongoing crisis in the currency union.

Will it be enough? approved by all 27 EU member states.

Nevertheless, markets reacted very positively to the summit, surging in the immediate aftermath.

Since then, the Finnish and the Dutch governments have thrown cold water on the enthusiasm, saying that they would block the move.

WSE dividend payouts rise

Bond yields up again The market respite didn’t last long as yields of the Spanish benchmark bonds came dangerously close to the 7 percent mark – widely regarded as unaffordable – on July 5. On the same day, the European Central Bank cut its interest rates by 0.25 percent to 0.75 percent, the lowest level since the euro zone was established.

It nevertheless stopped far short of the measures many analysts think are needed to stem Europe’s debt crisis, such as additional stimulus, government-bond purchases, or leveraging Europe’s rescue funds with ECB financing.

“We didn’t discuss” excep-

Companies listed on the Warsaw Stock Exchange might pay out a total of z∏.27 billion in dividends this year, according to calculations by business daily Parkiet. This would be a new record for the Warsaw bourse. The number of companies sharing their profits is also higher than ever. At least 144 firms will pay out a dividend this year, compared to only 127 in 2011.

COURTESY OF THE EUROPEAN POEPLE’S PARTY

The outcome of the June 2829 EU summit in Brussels, the latest in a series of meetings held to find solutions to the current euro-zone crisis, exceeded expectations.

EU leaders decided that the European Stability Mechanism (ESM), the euro-zone rescue fund that is scheduled to come into operation on July 9, will be allowed to recapitalize banks directly rather than through governments only. They also agreed on establishing a common banking supervisor, run by the European Central Bank (ECB), which they hope could begin work in 2013.

After the summit, European Council President Herman Van Rompuy said that it was “imperative to break the vicious circle between banks and sovereigns,” that leaves governments heavily indebted after they bail out troubled financial institutions. However, direct recapitalization of banks is on hold until the ECB takes up its banking supervisory role. That will not be a painless or easy process – the proposal will have to be

Mr Van Rompuy said the “vicious circle between banks and sovereigns” must be broken that the existing firewalls set up by governments to stem the crisis are sufficient to address market concerns. But he also

tional stimulus measures outside of interest rates, ECB President Mario Draghi said at a press conference, adding

didn’t rule out more far-reaching action, saying, “we still have all our artillery.”

Gas pipeline progress

Remi Adekoya

Jewish Heritage

COURTESY OF THE MUSEUM OF THE HISTORY OF THE POLISH JEWS

COURTESY OF THE MUSEUM OF THE HISTORY OF THE POLISH JEWS

Jewish history museum secures big donations

The total value of investment in the museum is roughly z∏.330 million

The museum is set to open in October 2013

The money will go to developing the core exhibition of the museum

Piotr Kossobudzki, spokesperson for the museum.

The core exhibition, “1,000 years of the history of the Polish Jews” will be a permanent feature documenting Jewish history within Poland and will form the heart of the museum. Some of the money will also go to operating the modern auditorium.

The total value of investment in the museum is roughly z∏.330 million – the

The Museum of the History of the Polish Jews, which is set to open in October 2013, has received millions in donations in a series of negotiations conducted over the last few weeks. The museum says the funding will go to developing its core exhibition.

The Koret Foundation and the Taube Foundation for Jewish Life and Culture have jointly donated a total sum of $7.3 million over the last few weeks.

“The Museum of the History of Polish Jews addresses two key initiatives of the Koret Foundation,” said Tad Taube, the Koret board president. These are engaging conversation about the collective Jewish experience and curb-

3

ing anti-Semitism, he said.

Kulczyk Holding SA, a private equity firm owned by Polish oligarch Jan Kulczyk, has also donated z∏.20 million (about $5.9 million), constituting the museum’s largest single grant from a private donor.

“The museum is very happy and satisfied. We have completed our fund-raising job for the exhibition. It was a very important mission,” said

construction of the building has been funded by government grants of up to z∏.200 million, while the exhibition has been financed by a variety of private and institutional donations valued at z∏.130 million.

The preliminary opening date for the museum is October 20, 2013. Next year will mark 70 years since the Warsaw Ghetto uprising.

Anthony Adams

Poland and Lithuania are moving forward with plans that will see the two countries link their natural gas pipelines. Cofinanced by the European Commission within the TransEuropean Energy Network Program and the Baltic Energy Interconnection Plan, the project is part of the development of the North-South Energy Corridor in Europe.

Pawlak: no real property tax Reports that the government was considering the introduction of a real property tax – by which property would be taxed based on its value – were denied by Deputy Prime Minister and Economy Minister Waldemar Pawlak, who dismissed the idea as that of a “loony.” Mr Pawlak’s Polish People’s Party represents rural farmers, many of whom own small pieces of farmland whose value on the real estate market has rocketed since Poland joined the European Union. ●

NEWS

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Polish-Russian relations

Modlin Airport set for first takeoff in mid-July

Kaliningrad border-crossing deal set for implementation

The border between Russia’s Kaliningrad oblast and Poland is expected to see an increase in crossings by Poles and Russians from the end of July, when an agreement for visafree travel is due to come into force.

The Local Border Traffic Agreement between Russia and Poland is due to come into effect on July 27, Russian ambassador to Poland Aleksandr Alekseev told state news agency Ria Novosti. The PolishRussian agreement covers all inhabitants of the Kaliningrad oblast and those from large parts of the Polish Pomorskie and Warmiƒsko-Mazurskie voivodships, including the cities of Gdaƒsk and Olsztyn.

The Polish-Russian deal was announced last November at the European Border Dialogue Forum and ratification documents were exchanged in late June this year.

Stronger ties “This is an important event in our relations with Poland,” said Mr Alexeev. According to the ambassador, the agreement will promote tourism and business contacts between the countries.

Permanent residents in the area will be entitled to cross the border without visas, but will need a valid passport and a special permit. Most Poles now require a visa to visit Russia, while most Russians have to meet the same requirement to visit Poland. At a cost of €20, the new permit will be issued for two years, with each subsequent permit valid for five years. Residents will be allowed

to stay in the relevant neighboring area for up to 30 days at a time and for up to 90 days in the course of half a year.

The permit allows for multiple entries, exits and stays, although only via land (road and railway) border-crossings.

These include crossings in Go∏dap, Bezledy, Grzechotki, Gronowo and Braniewo.

While Schengen regulations allow for the formation of local border traffic zones only in a 30 km, and in rare cases 50 km, radius, the new Polish-Russian zone covers a territory that is much larger and includes several million people.

Zofia Ró˝alska

Low-cost carriers including Wizz Air will take off from Modlin this July The new Modlin Airport near Warsaw is nearing completion, with the first flight scheduled to take off on July 16.

The opening of the airport marks a shift for low-cost airlines operating in Poland. The airport is the first in the country to have been built specifically for low-cost carriers. So far both Ryanair and Wizz Air have chosen to operate flights out of the airport. Their first flights will take off on July 16

Kaliningrad

SHUTTERSTOCK

Visa-free travel for inhabitants of the Russian exclave and parts of northeastern Poland will come into force at the end of July

JULY 9-22, 2012

COURTESY OF WIKIMEDIA COMMONS

4

Kaliningrad is wedged between Poland and Lithuania

and 18 respectively.

Edyta Miko∏ajczyk, a spokesperson for the airport, said that Modlin “has a huge market capacity,” since Poles still fly less frequently compared to other Europeans. She said that low-cost air travel could help boost the popularity of air travel in general among Poles.

Ms Miko∏ajczyk believes Modlin will attract airlines and passengers with its low servic-

ing costs, and hopes that high demand will eventually enable the airport to build a second runway and double passenger traffic.

Located 40 km outside of Warsaw, Modlin has been rebuilt on the site of a former military airfield. The new airport will have an annual capacity of two million passengers with a runway stretching 2,500 meters.

Anthony Adams

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EURO 2012 IN FOCUS

JULY 9-22, 2012

www.wbj.pl

Euro 2012 assessments

PBG names new CEO

The perfect host Poland and Ukraine’s time as co-hosts of Euro 2012 is now over but the assessment from both foreign visitors and the tournament’s organizers alike is that the championship was a roaring success.

Poland’s Minister of Sport Joanna Mucha asked a press conference at the start of July to consider three factors when judging whether the country had achieved what it set out to do. These were: investments in infrastructure, organization and preparation, and the energy and enthusiasm of Poles during Euro 2012.

“The reviews of foreign fans and media, and research carried out among Poles indicates that we have succeeded,” Ms Mucha said.

“The most valuable factor, however, was the unique

team the game has ever seen,” he added.

atmosphere that accompanied the championship and convinced Poles that they can efficiently carry a great sporting event and become a real host,” she added.

This view was shared by the BBC’s chief soccer writer Phil McNulty, who labeled both Poland and Ukraine “perfect hosts,” on his blog, before going on to say that both countries now have the right to celebrate a tournament that did them both great credit.

“This was ... a wonderfully enjoyable tournament, on and off the pitch. From the searing heat of Donetsk’s Donbass Arena, through Warsaw and on to exciting, edgy Kiev for the final, the people of Poland and Ukraine were friendly, welcoming and unfailingly polite and helpful,” Mr McNulty wrote.

“The people of Poland and Ukraine deserved their tournament to have that finale – fine people who staged a fine tournament won by arguably the greatest international

Numbers game According to research by PBS some 90 percent of Poles are proud of the country’s organization of the tournament, with 97 percent believing they were good hosts. This is a marked turnaround from opinions before the tournament when many Poles feared the championship would not be a success.

Indeed, the real victory for Poland may have been the way Euro 2012 has changed perceptions of the country both from the point of view of foreigners and Poles themselves.

Evidence of this is the record number of fans who packed the country’s fan zones during the three-week extravaganza. More than three million people, the majority of them Poles, watched the matches in Gdaƒsk, Kraków, Poznaƒ, Warsaw, and Wroc∏aw, showing that people bought in to excitement of the event.

COURTESY OF WIKIMEDIA COMMONS

In its succesful cohosting of Euro 2012, Poland achieved what many thought was impossible

Poland has received high praise for its co-hosting of Euro 2012 There were disappointments, though, as the number of fans who visited Poland was lower than expected, an inevitable consequence of not having the best-supported teams – England, Sweden, Holland or Germany – playing games in the country before the semi-final stage.

The Financial Times reported that Poland will earn an estimated z∏.600 million from hosting the tournament, compared to the previously predicted z∏.800 million.

But Euro 2012 was never really about the short term, it was about changing perceptions and attracting new people, while at the same time modernizing two countries that were previously light years behind Western Europe in terms of infrastructure.

According to co-organizers PL.2012, as many as 500,000 extra tourists will visit Poland per year following Euro 2012, proving that in the long term the country is a guaranteed David Ingham winner.

Euro 2012 infrastructure

Road builders reach dead end As the memories of Euro 2012 begin to fade, its legacy continues to be felt by companies in Poland’s construction sector and by the operators of its shiny new stadiums. While Poland’s infrastructure has certainly received a boost, the championships haven’t been kind to many of the firms that built it.

The tournament has left its most damaging scars on the country’s construction sector, which has witnessed a spate of bankruptcies in recent months. PBG, which became deeply indebted due to its involvement in Euro 2012 infrastructure projects, is one of the latest to get into trouble, announcing in early June that it had filed for bankruptcy.

Many other firms – and particularly road builders – have also overextended themselves in an attempt to take part in the building boom ahead of the championships.

In the years leading up to the tournament Poland transformed itself into a building site as it strove to build highways befitting of a host nation. Roadbuilding volumes reached a peak of z∏.30 billion this year but are expected to crash to around z∏.10 billion next year, leaving indebted builders struggling for sources of revenue.

Inevitable comedown “The market is shrinking, there are very few new tenders being signed by the government – this is a bad indicator,” said Tomasz Duda, an analyst at Ipopema Securities.

“The need for new roads is high, but there are budget constraints,” he added.

The government has promised to rein in infrastructure investments to ensure public debt doesn’t exceed the legally mandated 55 percent debt-toGDP threshold. The amount of money Poland is due to receive in the next EU budget cycle, meanwhile, remains uncertain, leaving resources stretched for the next two years.

Investments in power projects are expected to boost the construction sector, but not by anywhere near enough to make up for the shortfall in road contracts.

“The power sector will compensate a little, but the market is too small. The road sector is worth z∏.120 billion while the power sector is valued at no greater than z∏.50 billion, plus execution of projects takes twice as long in the power sector,” Mr Duda said.

Analysts forecast more bankruptcies this year, with road construction firms expected to struggle with debt and a comparative dearth of contracts over the next couple of years. The government has

The road-building boom left many construction firms bankrupt stepped into the wreckage, promising in certain cases to pay unpaid road contractors.

“Those who do survive will need to compete in a shrinking market,” said Mr Duda.

“The construction sector will experience a downturn” over the next one or two years, said Maciej Hebda, an analyst at Espirito Santo Investment.

Stadiums of the future?

While builders such as PBG, which helped build three of the four Polish stadiums for Euro 2012, have fallen on hard times, the operators of the facilities are determined to ensure the structures have a life beyond Euro 2012.

“We are starting to build our

brand and feature on the global events calendar,” said Agnieszka GabryÊ, a spokesperson for Wroc∏aw 2012, the company that operates Wroc∏aw’s Euro 2012 stadium.

This year the stadium is due to host several international soccer matches – including Brazil vs Japan – and a number of high-profile concerts.

Looking at the longer term, the stadium is expected to be profitable, the company says. “We have something going on every single day of this year, and there are going to be more and more events,” said Ms GabryÊ. “Being in Wroc∏aw we are close to Prague and Berlin, so we can attract big concert tours visit-

Troubled Polish builder PBG has chosen Wies∏aw Ró˝acki to replace cofounder Jerzy WiÊniewski as chief executive. The new CEO is also the head of PBG’s subsidiary Rafako. Mr WiÊniewski, PBG’s largest shareholder, resigned along with his deputy Przemys∏aw Szkudlarczyk. Both have taken up positions on the supervisory board.

Management at debtladen PBG has come under pressure after the company declared bankruptcy.

Pu∏awy: Synthos bid too low In a statement published in late June, the board of chemical group Pu∏awy negatively assessed the takeover bid from local rival Synthos, arguing that the offer price is significantly lower than the fair value, Gazeta Wyborcza reported.

Management also recommended that the company’s shareholders not sell their stakes.

Gdaƒsk Shipyard needs 600 new workers

COURTESY OF WIKIMEDIA COMMONS

Many construction firms overextended themselves ahead of Euro 2012

5

ing those cities.”

The arena also offers rental, conference and office space – much like the other three host stadiums. The National Stadium in Warsaw, meanwhile, is expected to be in a position to earn by itself within the next few years, once the state finds an appropriate private investor to manage the complex.

So while a number of construction firms working on projects in Poland have gone bust, the fruits of their labor – the country’s gleaming stadiums and brand new motorways – have helped modernize Poland and give it a lasting legacy.

Gareth Price

The Gdaƒsk Shipyard is looking for qualified workers, including welders and fitters, to fill 600 vacancies, reported Gazeta Wyborcza.

Approximately half of the workers will be employed this year, with the rest taken on during 2013. The best-qualified workers will be offered monthly salaries of as much as z∏.7,000, the company said in a statement. “The yard is going to be the bestpaying employer in the shipping industry in this region,” said Arkadiusz Aszyk, board member of the Gdaƒsk Shipyard.

Small businesses surviving Some 78% of small businesses registered in Poland in 2010 made it through 2011, according to the most recent data from Poland’s Central Statistical Office. That’s a higher percentage than in previous years, even prior to the global economic crisis. ●

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BUSINESS

www.wbj.pl

JULY 9-22, 2012

Energy

HP to open BPO center in ¸ódê

Poland gets first allDanish wind farm

The company is cutting jobs in more advanced economies but expanding in Poland IT company Hewlett-Packard plans to open a service center in the central Polish city of ¸ódê in the fourth quarter of this year. The center, which will serve as a strategic base for business services in the EMEA region, will work closely with the firm’s existing center in Wroc∏aw.

“The key criteria for choosing ¸ódê was the availability of skilled workers who speak foreign languages, a large supply of high-quality office space, central geographic location, growth of the airport’s route network and the relatively

small distance between ¸ódê and Wroc∏aw, the city where the HP Global Business Center is located,” said Anna Marciniak, a spokesperson for HP. The new office will provide business process outsourcing (BPO) services in finance and accounting, customer relationship management, as well as human resources and payroll management. Employment will be provided for several hundred people at the start, before rising. The company declined to disclose the cost of the investment.

“HP is opening this office in response to changing market requirements and ... growing demands from [the] company’s BPO clients,” Ms Marciniak

said.

The news of HP’s expansion plans comes at a time when the company is in the process of cutting jobs in the US and other developed economies, where costs are higher. Unnamed sources told a number of news outlets that the IT giant plans to cut 8,000 jobs in Europe, including as many as 1,000 positions in Germany. A further 9,000 jobs will reportedly be cut in the US. HP announced earlier this year that it aims to reduce global headcount by 27,000 worldwide by 2014.

HP is present in both Warsaw and Wroc∏aw. In the latter city, the company employs over 2,300 people.

Gareth Price

Tesco launches e-shop in Poland British supermarket chain Tesco has launched its first e-shop on the Polish market. The service is currently available to customers in Warsaw and the surrounding area, but will be extended to Wroc∏aw later in July and to between six and eight other Polish cities by the end of the year, Tesco said in a statement.

Prices are the same as those

in the chain’s traditional stores and customers can pay with a bank card over the web or upon delivery, with the merchandise delivered by vehicles equipped with refrigerators and freezers.

Tesco said in a statement that it is offering a “special” delivery price of z∏.0.98.

Tesco is the second-largest supermarket chain in Poland –

after Auchan – to have launched e-shopping. Up until now, grocery shopping over the web was a niche market, serviced by small e-shops such as Frisco.pl or Fresh24.pl, or gourmet chains such as Piotr i Pawe∏ and Alma.

In Tesco’s home market, the chain sells over £2 billion of goods annually over the internet.

GP

COURTESY OF WINDSPACE APS

Outsourcing

The Sanniki Windfarm is located 100 km west of Warsaw

Developer WindSpace says it plans more wind-farm investments in Poland Danish wind-farm developer WindSpace and investor WS Sanniki inaugurated the first all-Danish wind farm near Sanniki, a town 100 kilometres west of Warsaw, in late June.

What makes the project unique is that all of the parts used to make the windmills, as well as the investor and developer, are Danish.

“Many windmill projects in

Poland have a Danish component … this project is different, as the whole mill, the developer as well as the owners are all Danish,” said Flemming Engelstoft, a founding partner of WindSpace.

The whole investment, which entails three Vestas V90 2MW turbines on 105-meter towers, is worth €10 million.

While this is the biggest investment so far by WS Sanniki, Poul Skraem, who owns part of the firm, said the company is now planning smaller-scale investments, with three small

wind farms planned for the town of Sanniki.

The reason for choosing Poland for wind-farm developments is that it offers attractive conditions for foreign developers, WindSpace said.

“WindSpace has chosen Poland as one of our key markets, the other is Sweden, because of the political and financial stability, the legal infrastructure and the growth potential of the country and especially the very good local partners that we now have in Poland,” Mr Engelstoft said. Izabela Depczyk

Legal Forum

Gaining financing through a bond issue Monika Glinka Associate Some say that a time of crisis is the best time to invest. Investors who adhere to this bear-market strategy should consider the possibilities that bonds offer. And businesses in Poland looking for financing should consider issuing bonds on Catalyst, the bond market, organized by the Warsaw Stock Exchange (the WSE).

Bonds are the most common form of debt securities: the issuer declares itself a debtor to the bondholder and commits to repaying the borrowed amount and fulfilling other obligations – essentially that it will pay interest on the borrowed funds.

Catalyst market Catalyst is an organized market for bonds, which includes four markets: 2 addressed to retail investors and 2 for wholesale investors. Among other things, corporate, Treasury, and municipal bonds are quoted on Catalyst. It is important to note that all business entities that have legal capacity – that is joint-stock companies, limited liability companies and limited partnerships –

have the right to issue corporate bonds.

Catalyst is divided into a regulated market and alternative trading systems.

The latter is considered more liberal than the regulated market, mostly due to the fact that to enter the alternative trading system, in lieu of a prospectus or a memorandum approved by the Polish Financial Supervision Authority (KNF), all that is required is an informational document which does not need the KNF’s approval.

Domestic and foreign investment companies, credit institutions and other entities that meet certain requirements can obtain the title of Catalyst Participant, which is necessary to conduct business on Catalyst.

Catalyst – just as the Main Market of the WSE (where shares are traded) – is subject to numerous legal regulations, while its participants are obliged to observe trading transparency rules and to comply with certain disclosure requirements.

Issuing bonds for financing business The main advantage of issuing bonds

for the issuer is the fact that the bondholder: • is not granted a right to the issuers’ assets; • cannot influence the management of the issuer; and • does not have to be a member of statutory bodies of the issuer.

Therefore, the bond issuer does not diminish its rights in the company’s management by issuing bonds.

Issuing corporate bonds can be an attractive way for a company to gain a financial boost, as bondholders subscribe to bonds of a company at a clearly defined price. The better the financial situation of the issuer, the greater its name recognition in the market, and the higher its credit rating, the lower the risk of investing in its bonds and hence its greater potential for a successful issue.

In December 2011 domestic and foreign financial institutions subscribed to corporate bonds issued by the WSE at a value of z∏.170 million. It turned out that the demand was five times

higher than the pool of sold securities.

These bonds were equally popular among individual investors. For that reason, some z∏.75 million in bonds were set aside for individual investors.

Ultimately, however, that amount was reduced by over 25 percent. Still, individual investors subscribed for more than a million bonds.

Alternative to bank financing Issuing corporate bonds is often an alternative to raising capital through bank loans. The key benefits of bonds relative to bank financing are as follows: • the issuer is responsible for determination of the bond issue, the interest rate and length of the period; • the issuer is responsible for choosing the type of bond – secured, unsecured or partly unsecured; and • the issuer is not burdened with project costs under development; at the beginning it only bears the cost of interest, only later is it required to repay the capital.

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.

The basic costs of issuing bonds – such as organizing the issue and marketing to potential investors – are considered an investment risk.

Catalyst success The number of entrepreneurs who decide to issue corporate bonds on Catalyst continues to rise. In turn, particularly due to the European economic crisis, interest rates are also increasing.

Investors are flocking to the market. In terms of turnover, Catalyst recorded monthly and quarterly records in March 2012 and Q1 2012 respectively. A report by the WSE said that turnover in March 2012 amounted to z∏.380.5 million, a four-fold increase on the same period a year earlier, while turnover in the first quarter of 2012 amounted to z∏.580 million – a rise of 97.3 percent compared to the first quarter of 2011.

In conclusion, it can certainly be said that Catalyst is developing, and it is worth considering investing in this market, as well as becoming a participant. ●

BUSINESS

JULY 9-22, 2012

Nuclear power

www.wbj.pl

7

Travel industry

PGE postpones nuclear Travel agency goes bust, leaving clients stranded technology tender

State-controlled power group PGE has postponed the start date of a tender for selecting the technology supplier for Poland’s first nuclear power plant. The company, which is overseeing the implementation of the country’s nuclear power program, needs time to decide how to finance the project.

“We will not launch the tender in June [as previously planned], we will have a slight delay,” Krzysztof Kilian, PGE’s chief executive, told journalists at the end of June.

“We are working on a financing model, facilitating the launch of the tender for nuclear technology.”

The estimated cost of building the first reactors is between z∏.30 billion and z∏.50 billion.

“This is an unusually complex transaction. If we had launched the tender without a funding model, it might occur that the entity which wins will not be able to carry out the contract because of its financial capacity,” Mr Kilian said.

PGE’s chief executive did not provide an alternative date, while PGE could not be reached for further clarification. Earlier in June, Poland’s Economy Ministry told WBJ that it expected the tender in Q3.

The Polish government plans to build two nuclear power plants by 2035, the first of which is scheduled to come online by 2023. The two plants will each generate around 3,000 megawatts (MW) of electricity, reducing Poland’s reliance on highly polluting coal to produce power.

A number of potential foreign suppliers have already stated their interest in the contract, with French firms Areva and EDF, GE Hitachi Nuclear Energy (a joint venture of General

Electric and Hitachi), and Toshiba’s US-based unit Westinghouse already having signed memoranda of understanding with PGE. The three are due to provide feasibility studies for the development of reactor designs, as well as construction and operation plans.

Nuclear appointment Former Treasury Minister Aleksander Grad will head PGE EJ 1, one of the two PGE units responsible for Poland’s nuclear program, Gazeta Wyborcza reported, citing sources close to the agreement.

PGE EJ 1 is a special purpose vehicle responsible for preparing the investment process and construction of Poland’s first nuclear power plant.

PGE Energia Jàdrowa is the other company responsible for the implementation of Poland’s nuclear program, and is tasked with implementing schemes related to the construction of the two nuclear power plants.

Gareth Price

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

Medical tourism boost By no later than October 25, 2013, Polish entrepreneurs from the health-care sector should have a broader range of possibilities to treat patients from other EU countries. By that date EU member states are expected to have introduced into their respective legal systems provisions necessary to implement the 2011/24/EU directive on the application of patients’ rights in cross-border health care.

The directive refers to the refund of costs paid by patients who benefit from health care and to the recognition of prescriptions issued in other EU member states.

Shorter registration time for new entrepreneurs In June the government adopted a bill to change several acts in order to eliminate two out of six registration procedures for entrepreneurs. It was proposed that employers should be released from the obligation to notify the State Labor Inspectorate and the State Sanitary Inspectorate on the place, type and scope of their business activities.

Consequently, the time necessary to register a new business is to be shortened by two days. At the same time, persons commencing a business activity are to receive certificates on their tax identifica-

tion number (NIP) issued by heads of tax offices within three days, as compared to the 14 days the process currently takes.

New proposals to reduce burdens for entrepreneurs The Ministry of Economy is now working on the final version of a bill to reduce administrative burdens regarding tax laws.

For example, a larger number of entrepreneurs are to be classified as “small taxpayers.” As a result they will be able to keep simplified accounting records.

Small taxpayers may make one-time depreciations of fixed assets or settle VAT by a cash-basis method. This is the method according to which the tax obligation occurs at the moment the payment for goods or services is received and not at the moment when the invoice is issued.

Yet another potential change concerns unification of all deadlines for refunds of any taxes by tax authorities to a maximum of 30 days. The present provisions stipulate different deadlines for the refund of taxes (e.g. in the case of VAT generally the deadline is 60 days). Moreover, free-ofcharge services of legal assistance are to be excluded from VAT and those for whom such assistance has been provided are to be released from their income tax obligations. ●

BROUGHT TO YOU BY PETER NIELSEN & PARTNERS LAW OFFICE

Prosecutors are now investigating Travel agency Sky Club declared bankruptcy on July 3, stranding some 4,000 of its clients who were on vacation abroad at the time, and throwing vacation plans for thousands of others who had bought trips with the company for later this year into chaos.

As WBJ went to press, almost half of the stranded tourists had been returned to Poland, while those who had already paid for their trips looked likely to be compensated, courtesy of a special guarantee fund in the hands of the Mazowsze Marshall’s Office that had been established for just such occasions.

“A guarantee fund of z∏.25 million is available to cover the costs of customer returns and payment for those who have already paid for holidays but who will now not be going on vacation as planned,” Sky Club spokeswoman Kalina Paluch told Tok FM. Sky Club, which also operates under the name Triada,

COURTESY OF WIKIMEDIA COMMONS

The company is working on a new financing model to cover the costs of the multi-billion z∏oty investment

4,000 holiday makers were left stranded abroad said in a statement that it had requested the courts to begin bankruptcy proceedings, citing “lack of funds” to continue to operate and that it had consequently “suspended operations and sales.”

“All tourist trips from July 4, 2012 are canceled. Customers who have tourist trips starting [on that day] will be informed not to turn up at airports,” the statement read.

Meanwhile, some clients told TVN24 that Sky Club

was still accepting vacation payments from clients as late as on Tuesday, July 3.

Accordingly, Adam Struzik, the Marshall of the Mazowieckie voivodship, announced that he had petitioned the Prosecutor’s Office in Warsaw to launch an investigation into the circumstances of the bankruptcy. “There is the profound suspicion that a crime has been committed with the intention of misleading customers,” Mr Struzik said.

Remi Adekoya

8

INTERVIEW

www.wbj.pl

JULY 9-22, 2012

Taiwan

A disputed territory Ewa Boniecka: How do you perform your mission in Poland when, like all other EU members, it follows a “One-China” policy, meaning it doesn’t recognize Taiwan as a sovereign state?

David Yi-min Liu: In the case of the countries with which we have no formal diplomatic relations, we use other ways to promote substantial exchanges and cooperation in the areas of economics, culture, education and technology. So even while the exchange of visits of higher-level government officials is limited, it does not influence the development of other contacts, especially person-to-person contacts.

I believe that in the development of bilateral relations, of key importance is whether the countries share mutual value systems. Poland and Taiwan share the same values, showing support for democra-

cy, freedom and the protection of human rights. This definitely brings our nations closer and allows for the building of mutual trust. It is similar in the case of the development of our relations with the European Union, where our country maintains 21 embassy-level Representative Offices. All of them play a significant role in promoting bilateral relations and this is the role our office serves in Poland.

What mechanisms are at your disposal for developing relations between Taiwan and Poland?

There are a couple of such mechanisms and generally there are not many limitations on our contacts with the Polish government. We maintain close contacts with Polish MPs and senators, who established the Polish-Taiwanese Group in the Polish parliament.

They play an important role in connecting our office with particular institutions or persons within the Polish government. Moreover, since our office is divided into a couple of divisions, among them a Cultural Division, Information Division and Economic Division, each of them is responsible for creating a network of contacts in each field. For instance, the Economic Division and Taiwanese Trade Office are in charge of establishing and maintaining contacts between Polish and Taiwanese investors and promoting economic cooperation.

What does Polish-Taiwanese economic cooperation include?

If we look at our economic relations, there is still a lot of potential for development.

Taiwan is the 16th largest trading nation in the world, but the value of our bilateral trade with Poland is very modest, about $1.1 billion, and Taiwanese investment in Poland still has room to grow.

My office is working to attract Taiwanese companies

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COURTESY OF THE TAIPEI ECONOMIC AND CULTURAL OFFICE IN POLAND

David Yi-min Liu, head of the Taipei Economic and Cultural Office in Poland, speaks with WBJ about Taiwan’s global position, the development of relations with Poland and Taipei’s attitude towards mainland China

Mr Yi-min Liu said Poland and Taiwan share the same democratic values to invest in Poland, yet the problem is that Poland and Taiwan have still not signed the double taxation agreement (DTA) to avoid double taxation, so our companies choose to take their investments to Hungary, Slovakia or other neighboring countries, which have already signed the DTA. I hope that the Polish government will decide to sign a DTA with Taiwan as soon as possible and thus open the door for bigger Taiwanese investments here.

Taiwan is also striving to sign an Economic Cooperation Agreement with the European Union and if we sign it, Poland, as one of the members of the EU, will be able to increase its exports to Taiwan, for instance in the auto parts industry.

How are bilateral relations faring in the domains of culture and education?

Very positively. There is cooperation between Polish and Taiwanese universities and an increasing number of students take part in student exchanges.

Right now almost 650 students from Taiwan are studying in Polish medical schools, and each year we fund 14 scholarships for Polish students to study in Taiwan. We organize cultural events, such as exhibitions and musical performances to promote a knowledge of Taiwan in Poland and encourage Poles to visit our country.

Taiwan has signed three sistercity agreements with Polish cities linking Warsaw and Taipei, Elblàg and Tainan and Radom and Tao Yuan City.

What are the main factors that decide the nature of Taiwan’s relations with the European Union?

The main factors are trade and investments. The European Union is Taiwan’s fourthlargest trade partner and the biggest foreign investor in our country. At the end of 2011,

“Because of its political isolation, Taiwan regards its economic position as a crucial tool in our foreign policy” the value of investments by European businesses in Taiwan amounted to more than $30 billion, or more than 30 percent of total foreign investment. In the same year, the trade volume between Taiwan and the EU amounted to $52.5 billion.

The EU has more than 300 business enterprises in Taiwan in fields ranging from accounting, aviation and banking to law firms. These enterprises established the European Chamber of Commerce in

Taipei, which plays a key role in maintaining contacts between EU companies and the Taiwanese government.

Many well-known Western firms are located in Taiwan and carry out their production there.

What are Taiwan’s priorities in economic policy?

We rank 17th in the world and third in Asia in terms of our foreign investment, just after Hong Kong and Japan. We invest in the US, Japan, SouthEast Asia and the EU. Taiwanese investments worldwide amount to $70 billion. Taiwan’s most important trade partners are China, the US, Japan, the EU and the countries of South-East Asia.

Because of its political isolation, Taiwan regards its economic position as a crucial tool in our foreign policy. Being an island with poor natural resources, we depend heavily on trade as a major source of economic development. Nowadays, the predominant worldwide trend is to sign free trade agreements and Taiwan has also been actively pursuing such agreements with its major trading partners. Our president, Ma Ying-jeou, has established a national development plan for Taiwan called Golden Decade, on the basis of which within the next 10 years we would like Taiwan to join the Trans-Pacific Strategic Economic Partnership (TPP).

INTERVIEW

JULY 9-22, 2012

Being Chinese yourself, what are your personal feelings towards the Chinese from the People’s Republic of China, after decades of hostility between Taiwan and the PRC. How are relations between Chinese people from both countries ?

Chinese people in both Taiwan and mainland China share the same roots, bloodline, history, traditions, language and culture with the only difference being the two disparate political systems they live under; democracy and freedom in Taiwan and a communist authoritarian system in China.

People living on both sides of the Taiwan Strait have been separated for almost 60 years, so their lifestyle and value systems possess some dissimilar traits. I do not want to evaluate the obvious differences in political and social mentality, so I will point to a lesserknown fact that, for instance, Chinese communists have changed traditional Chinese writing characters by simplifying them, which has led to certain differences between the two writing systems.

However, since 1987, the year when the Taiwanese government first allowed its citizens to travel freely to China to visit their relatives, contacts between people on both sides of the Strait have grown much closer. Even more so since 2008, when President Ma’s administration resumed negotiations with China, thus improving relations with that country. In the past four years both sides have concluded seven rounds of high-level talks and signed 16 agreements.

That made the two-way exchange much more intense.

Last year five million Taiwanese visited China and 1.7 million Chinese went to Taiwan. Nowadays there are 558 direct flights between Taiwan and China every week and there are about two million Taiwanese living in China. In 2010, Taiwan and China signed an Economic Cooperation Framework Agreement (ECFA) which led to a two-way trade volume amounting to $152 billion, which represents 30 percent of total Taiwanese trade.

China is now the secondlargest economy in the world and one of the most important geopolitical players. How could that affect the future of Taiwan?

Although China is under communist rule and the Taiwanese are anti-communist, China, now considered a world power and constantly on the rise, is

too big to be ignored. We do hope that with China’s increasing worldwide influence in the areas of politics and economics, it has the opportunity to play a better role, that of a responsible stakeholder, and it is only through this way that all the people in the world might be able to see China’s rise as peaceful. Taiwan has always served as a good example for the Chinese community.

Nowadays, it is even more important in view of how it affects China’s current evolution. We will continue to improve our relations with China and we will strive to help China become a more democratic country.

Yet the Taiwan Strait is one of the world’s danger spots and the US is providing Taiwan with weapons to ensure it has the capacity to defend itself in the case of an attack by China. Are you afraid of being swallowed by Beijing in one way or another while the outside world stands by?

“We will strive to help China become a more democratic country” To peacefully resolve the cross-strait issue is a common aspiration of Taiwan, mainland China and the whole international community. It will not be wise for any party to try to use military force or other forms of intimidation to reach their goals. Such actions would be detrimental to everyone involved. We fully understand that we cannot depend on any country to provide us with national defense or security.

But I believe that the people and the governments on both sides of the Taiwan Strait will use their personal wisdom to solve this issue.

Do you think that communist China will gradually democratize its political system ?

I think that communism and a market economy are not compatible. We can observe that China is moving in the direction of a market economy and the communist system is no partner for that. This means that China needs to change politically in order to meet the full demands of a market economy.

Therefore, the Chinese government has arrived at a special description of the current political situation in

China. They decided to call it an implementation of socialism with Chinese characteristics. While the communist system has collapsed around the world, this definition of the Chinese system does not include any mention of abandoning communism, just the fact that the Chinese are trying to adjust by implementing a new unique system. As we all know, democracy is a prevailing international trend.

Last year we saw the evolution of places such as the Middle East or Northern Africa, which through a series of revolutions eventually became democratic systems. I believe that China in the future will also move towards democracy.

Do you think that economics now prevails over politics in international relations and that Taiwan can develop its relations safely with China and other countries?

Economics is an essential factor in people’s lives around the world. Since Taiwan depends heavily on trade, we recognize the need to maintain good relations with our major trading partners. Trade and business between Taiwan and China is growing annually and this is the reason why the Taiwanese government needs to constantly work on improving our relations with mainland China. Due to the fact that our political systems are entirely different, the mutual trust between our two countries and their governments is not substantial.

Thus, our relations always start in the field of economics.

The major problem between our two countries are sovereignty issues. Yet in order to maintain a good relationship, we should try to shelve controversies and look for common interests despite our differences. We do try to persuade the Chinese to face reality.

Even though we do not formally recognize each other, we have already entered a state of mutual “non-denial” of our respective authorities’ right to govern each of our two countries.

China needs to understand that it cannot continue to hinder Taiwan’s participation within the international community and isolate the island from international activities, because only when Taiwan is not isolated, can cross-strait relations move forward in a smooth and confident manner. This way we can maintain stable and peaceful relations in the area of the Taiwan Strait. ●

www.wbj.pl

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FINANCE & ECONOMICS

JULY 9-22, 2012

Economy

World Bank: Poland growth to top CEE, but prospects weaker The country’s 2.9 percent expansion should be the best in the region, but the potential for external “shocks” looms The World Bank forecasts that Poland’s GDP will grow by 2.9 percent this year, the highest rate out of the 10 EU members in Central and Eastern Europe (CEE) and Croatia which will join EU next year.

Latvia and Lithuania place next-highest, with expected growth of 2.3 percent each.

These are followed by Slovakia, whose economy is expected to expand by 2.1 percent. However, the World Bank stated that external factors pose a greater risk for economies in the region than just a few months back.

“Now, in mid-2012, threeand-a-half years after the global financial crisis broke, EU11 countries are yet again faced with serious external shocks and weaker prospects than six months ago,” said Gallina Andronova Vincelette, senior economist in the World Bank’s Europe and Central Asia region.

She added that in this “volatile” environment, economic growth in EU11 countries as a whole was set to decline this year, with all the countries growing slower than a year before and three countries slipping into recession.

Policy recommendations The World Bank’s special report made several policy

recommendations for governments in the EU11 countries.

It implores governments, central banks and financial supervisory authorities in the region to do their utmost to shore up the confidence of financial markets.

“Monetary policy should remain stable to buffer the EU11 against external shocks and help the economy defend against euro area volatility.

Polices should be in place to ensure access to credit for viable borrowers and to support growth of emerging sectors, despite the ongoing deleveraging,” the World Bank said.

Secondly, EU11 governments must decide “how much, how fast, and in what ways they want to consolidate public finances, so that their fiscal positions do not become the source for financial market volatility.”

In designing the composition of fiscal consolidation, governments need to account for the fragility of the economic outlook and try to limit the negative impact of fiscal consolidation on growth, it added.

Finally, the report stresses that structural policies to support growth can help overcome the financial, labor and fiscal challenges.

“By removing barriers to growth in product and labor markets, the EU11 countries can increase their potential economic gains in the medium term. Closing the existing institutional and structural gaps with the rest of the EU will soften the constraints imposed by demographic threats and speed up income convergence with the EU15,” the report stated.

Remi Adekoya

Growth rates (2011) and forecasts (2012, 2013) for the EU11 (new, eastern members) and EU15 2011

2012*

2013*

EU11

3.1

1.5

2.5

Bulgaria

1.7

0.6

2.5

Czech Republic

1.7

0.0

1.0

Estonia

7.6

1.7

3.0

Latvia

5.5

2.3

2.9

Lithuania

5.9

2.3

3.5

Hungary

1.7

-0.4

1.5

Poland

4.3

2.9

3.2

Romania

2.5

1.2

2.8

Slovenia

-0.2

-1.2

0.6

Slovak Republic

3.3

2.1

3.1

Croatia**

0.0

-1.0

1.5

EU15

1.5

-0.1

1.2

*forecast **Croatia is expected to join the European Union on July 1, 2013 Source: World Bank

Monetary Policy Council leaves interest rates unchanged Poland’s Monetary Policy Council (RPP) left its main interest rate unchanged, as expected, at 4.75 percent. In May, the RPP unexpectedly raised rates from 4.5 to 4.75 percent, but now most economists expect rates to remain unchanged until 2013. The

RPP’s stated aim is to keep inflation at around 2.5 percent within a range of plus or minus one percentage point.

In May of this year, inflation was at 3.6 percent.

“The new inflation and GDP projection does not justify monetary policy tightening,”

said analysts at BZ WBK in an e-mailed comment. “We expect the NBP rates to remain stable in the remainder of the year.

We think that there would be a room for a rate cut next year if the pace of economic growth decelerates to ca. 2 percent,” RA, AK they added.

PMI falls again, manufacturing outlook bleak Poland’s Purchasing Managers’ Index (PMI) fell for the third consecutive month in June to 48.0 from 48.9 in May. The reading was its weakest level in 35 months.

Data from the survey show a decline in both output and purchases of inputs, said HSBC, linking the contrac-

tion to a weakening of domestic and export demand. The rate of decline of input orders recorded last month was the fastest in three years.

“The pace of output contraction deepened in June to levels last seen in mid-09 in line with deteriorating new

orders.” wrote Agata Urbaƒska, economist for Central and Eastern Europe at HSBC, in a report accompanying the data.

“The gradual slide of the PMI index in the last three months highlights downside risks to growth in the manufacturing sector this year.” she added.

Anthony Adams

www.wbj.pl

11

COVER STORY

www.wbj.pl

Gasoline price drop?

Gas prices could drop below z∏.5 per litre, Deputy Prime Minister Waldemar Pawlak said in June. Mr Pawlak said that in z∏oty terms, the price of oil has dropped from around z∏.360 to z∏.290 per barrel. At a press conference, he elaborated on the topic, specifically mentioning Orlen, Poland’s largest refiner and operator of a large chain of gas stations. In the last three months the price of a barrel of Brent oil has dropped by around 20%.

Lotos mulls deal with Aramco Polish oil giant Lotos hopes to gain a competitive edge by processing Saudi crude oil. The refinery has just received a sample delivery of 60,000 metric tons of oil from Saudi Aramco. If all the planned tests go well and the oil is deemed economically and technologically suitable, Lotos will consider longterm cooperation with the Saudi firm, Parkiet reported. ●

JULY 9-22, 2012

American football

Scoring drive

David Ingham

As Poland comes down from its Euro 2012 high, another sport is preparing for its time in the spotlight with a season-ending matchup at Warsaw’s National Stadium For sport fans 2012 is a dream year. First came the drama and carnival atmosphere of Euro 2012, then later this month sees the start of the London Olympics, which promises to make heroes of numerous athletes from across the globe. But in Poland one other sport – American football – is leading the way in terms of growth, with new fans joining the burgeoning enterprise on a steady basis.

On July 15 Poland’s top two teams, the Warsaw Eagles and Seahawks Gdynia, are set to meet in front of thousands of fans in the NAC VII Superfina∏ at Warsaw’s newly built National Stadium. This is a remarkable achievement for a sport which in Poland only saw its first organized match in

COURTESY OF MARCIN FIJA¸KOWSKI

12

Eagles tight end Grzegorz Janiak takes a reception in for a touchdown against Devils Wroc∏aw in their semifinal match-up on July 1, 2012 2006 and as recently as 1999 was only being played by a few

ARABIAN HORSE DAYS POLAND

2012 FOT. STUART VESTY

JANÓW PODLASKI 10-14th of August, 2012

Information: POLTURF Al. Wyścigowa 4-B/84 • 02-681 Warsaw, Poland phone (48) 22 857 76 44 • biuro@polturf.pl

www.prideofpoland.pl

guys in the park, without even the most basic equipment.

Just six years ago in ¸ódê the Eagles and the 1.KFA Fireballs Wielkopolska met in the league’s inaugural fixture.

Fast-forward to 2012 and a total of 38 teams, across four divisions, were competing for season-ending honors in the Polish League of American Football (PLFA).

“We’ve come from playing in the woods to the National Stadium but we’re still at the beginning of the process,” J´drzej St´szewski, President of the Polish American Football Association and Commissioner of the Polish American Football League, told WBJ. “Everything has changed [since 2006] except the will of the players. … We play in better stadiums, and most of the players don’t have to pay for their equipment and expenses,” said Mr St´szewski.

This is a sentiment shared by the head coaches of the two sides taking part in the end-ofseason showdown. Maciej Cetnerowski, head coach of Seahawks Gdynia, admits those involved with the league from the earliest days are surprised with what has been achieved in such a short space of time.

“From a bunch of guys with a couple of balls it evolved in to something more special. …

We [Seahawks Gdynia] started to get sponsors, proper fields and training facilities and to play at one of the best stadiums in Poland, the National Rugby Stadium in Gdynia,” he said.

“From just 19 players we now have a roster of over 60 guys and 1,000 fans at every game,” he added.

Warsaw Eagles’ Americanborn coach, Philip Dillon, said that teams bringing in foreign coaches and players has been the key factor in improving standards on the field, which will inevitably help attract more fans.

“The talent is there, but its about having the right level of coaching,” he said.

The business of sport Currently the key revenue streams for the PLFA come from gate receipts and sponsorship, with firms including the Mediterranean Shipping Company (MSC), which is involved with the Seahawks Gdynia and Tarczyƒski (one of Poland’s largest meat producers), which sponsors Devils Wroc∏aw, among those helping to provide backing to teams from Poland’s top division.

Sev Zakrzewski, owner of

property firm Prime Real Estate Solutions, and coowner of Warsaw Eagles, along with business partner Paul KuÊmierz, said the two men decided to become involved with the capital’s main team because of a love for the game and a belief in its potential for growth.

Without giving an exact figure, Mr Zakrewski said the investment in the Eagles had been significant and the benefits of that investment are now clear to see.

“The league is moving in the right direction, with three of the Topliga teams now having major sponsors and owners,” he said.

Matches and highlights packages are now being screened on Polish TV, which along with gaining outside investment, is part of the league’s overall plan to increase interest and make the game bigger in Poland.

This year’s final match is the second in a row to get airtime and is set to be screened

Topliga final regular season standings Team 1. Seahawks Gdynia 2. Warsaw Eagles 3. Devils Wroc∏aw 4. AZS Silesia Rebels 5. Koz∏y Poznaƒ 6. Dom-Bud Kraków Tigers

W 9 8 7 3 2 1

*The Tigers were penalized two points after having forfeited their last game

L 1 2 3 7 8 9

Pts 18 16 14 6 4 0*

COVER STORY

JULY 9-22, 2012

www.wbj.pl

Superfinal teams Seahawks Gdynia The Seahawks topped the table during the regular season with their only loss coming in week two of the regular season when they went down to their Superfinal opponents, the Eagles, 52-22 at home. Since forming back in 2005, the team from Poland’s northern coast has gone on to make two previous PLFA championships, losing on both occassions to Warsaw. They will be hoping it’s third time lucky this time at Warsaw’s National Stadium on July 15.

COURTESY OF MARCIN FIJA¸KOWSKI

Warsaw Eagles

The Seahawks’ star running back Sebastian Krzysztofek carries the ball in his team’s 52-7 semifinal win over the AZS Silesia Rebels on June 30, 2012 live on Polish channels nSport HD and TVN Turbo. A day later a repeat of the game will be shown on Eurosport 2. The league also has plans to make American football a regular television feature with the idea of a game of the week currently being mooted as a possibility for the 2013 season.

“We want to change the attitude to the game. There’s nothing wrong with just playing for the love of the game

but we have to use business ideas to make the game bigger, and TV is a big part of this.” Mr St´szewski said.

Changing perceptions In the short-term holding the Topliga final at the National Stadium is part of the league’s plan to bring new fans to a sport which has no real history of popularity in Poland.

“The National Sports Centre [the stadium’s operators]

2012 PLFA Topliga playoff semifinals June 30, 2012

July 1, 2012

AZS Silesia Rebels

7

Devils Wroc∏aw

20

Seahawks Gdynia

52

Warsaw Eagles

37

were looking for alternative sports than soccer to be played at the National Stadium,” Mr St´szewski said, referring to how the league was able to come to a deal to hold the match there.

“They came to the games, saw the tremendous growth potential and the atmosphere and agreed to host the match there,” he added.

But the atmosphere and the action on the field are just part of the PLFA’s drive to bring new people to the game.

This year’s final will provide entertainment for those attending from as early as four hours before kickoff.

The Warsaw Eagles took second place in the league standings this year, losing twice: once to the to the Devils in Wroc∏aw, 35-32, followed by a loss to the Seahawks in Warsaw, 34-24. Along with the Seahawks, the Eagles were among the four teams to play in the PLFA's inaugural season. They already have two championship wins under their belts, the last of which came in 2008. After three years of failing in the semifinals, the Eagles will be hoping to complete a hat trick of championship wins against the Seahawks.

This will include a pre-match picnic, information about and opportunities to try out other American sports such as baseball and lacrosse, a marching band, cheerleaders, and an on-field kicking competition with the winner set to receive a free ticket on the inaugural flight of LOT’s new fleet of Polish Dreamliner planes.

Final showdown But while everyone involved in the business of sports knows that making money is a key factor for achieving success over the long-term, for the players and coaches the opportunity of lifting the championship trophy in such a prestigious setting is all that matters come July 15.

“We’ve had a tough time to convince the players it’s the same game and the same ball because we’re playing in the National Stadium, so they’ll be

nervous. … But it’s an extra incentive to play at such a facility,” said Mr Cetnerowski.

And speaking about his team’s chance of lifting the trophy for the first time he said, “We’re going to Warsaw to win and the third time is the charm, so as it’s our third final and as we’ve never had a team this strong we think it’ll be enough to win,” he added.

His counterpart, Eagles head coach Phillip Dillon, said he expects a hard-fought battle between the league’s best two teams.

“I do believe that if my guys come to the game and do what we’ve told them to do, then we will win the championship,” he said.

But whatever happens on game day, American football has gained good field position to capitalize on its rapid growth and huge potential. It looks likely to score more popularity in the future. ●

13

Warta sale to Talanx finalized German Talanx International AG and Japanese Meji Yasuda have finalized the purchase of insurer Warta from Belgium’s KBC for €770 million. The new owner decided to keep the Warta brand and its HDI brand (under which Talanx has been so far present in Poland) separate. Poland is now Talanx’s second largest market of operation.

PPP reaches record level The value of publicprivate partnerships (PPPs) reached a record level of z∏.2 billion in the first half of the year, according to initial estimates published by Fundacja Centrum PPP. The figure comprised 23 projects, seven more than during the same period last year. The projects included the construction of the new Widzew stadium in ¸ódê for z∏.300 million.

Energy dividends to boost budget The energy sector could supply this year’s state budget with up to z∏.7.5 billion. Close to z∏.3 billion from this amount may come from dividends from four major energy concerns alone: Polska Grupa Energetyczna (PGE), Tauron, Enea and Energa, reported Parkiet. ●

14

OPINION & ANALYSIS

www.wbj.pl

JULY 9-22, 2012

The Polish transformation David Ingham

In

fans were able to travel between the Polish host cities without any major difficulties.

Inside the newly built stadiums the play on the pitch (something which the organizers admittedly had no power over) has been highly praised, with numerous goals and some classic moments which are now set to go down in the annals of European soccer history. None more so than Polish captain Jakub B∏aszczykowski’s sweet left foot strike in Poland’s 1-1 draw with Russia. To be a supporter of the Polish team when the ball hit the back of the net on that hot summer evening, and to see the spontaneous eruption of joy from those who had thought the Polish team was already doomed, is an experience none of us will soon forget.

There were other heroes too.

Andrea Pirlo’s imperious displays in Italy’s victories over England and Germany, and the German team’s rampant destruction of the Greeks in the quarters was attacking soccer

to put on a major sporting event that the world would deem a success.

the period leading up to Euro 2012, one common thread often linked the expectations of the Polish public and the commentary from the foreign press: the belief that the tournament would be a failure.

The roads were inadequate, the facilities substandard, corruption and racism rampant – this was the

Best ever?

How times change. Today, many fans and commentators suggest Euro 2012 may have been one of the greatest European Championships of all time.

The fears that transport chaos would prove a massive headache for Poland’s authorities were unfounded, while contrary to many Poles’ preconceptions, the vast majority of foreigners enjoyed their experience and will no doubt return.

Admittedly, the road-building program envisaged back in 2007 was overambitious, but the A2 highway linking Poland and Germany was opened in time for the start of the tournament and ensured a fluid movement of fans driving from place to place. In addition, four new airport terminals and improved public transport infrastructure – including a new airport-to-city-center train service in the capital – meant that

“Euro 2012 may have been one of the greatest European Championships of all time” message most often trotted out by various media outlets prior to the June 8 kickoff. The average Pole, on the other hand, seemed unable or unwilling to envisage a scenario in which the country could manage

at its best. Meanwhile, the Spanish conquistadors brushed aside accusations of being boring, with a swashbuckling destruction of the Italians to win their third major trophy in four years.

They loved it here But it was in the stands where the true barometer of whether Poland had really achieved what it set out to do could be gauged. During the Spain vs Croatia group match in Gdaƒsk, thousands of foreign fans spontaneously began singing Polish supporters’ standard chant, “Polska bia∏o czerwoni,” (Poland red and white) in unison. It was heart-warming, and evidence that these visitors had gained a great fondness for their hosts.

There has also been a sea change among the foreign press who had feared the tournament was going to fail. In their post-tournament wrapups the uniform response has been that the hospitality and general atmosphere in Poland and Ukraine

were a pleasure to experience.

But it is the Poles who underwent the greatest transformation during those glorious three weeks in June. I saw evidence of this when a friend of mine told me prior to the start of Euro 2012 that her mother would be traveling to Spain for 10 days because she wanted to avoid the furor and hooliganism that would no doubt accompany the matches. Later the same friend told me she had gone to the Fan Zone to watch the semifinals with none other than her mother, who after returning from her trip had been caught up by the euphoria of the football fever that was sweeping the nation.

She, like millions of other Poles, now believes in the potential of her country, and sees that it is capable of standing with the rest of Europe as an equal.

And that is surely the the greatest legacy of the Euro 2012 project. ● David Ingham is Warsaw Business Journal’s sports and lifestyle editor

In Kiev, the game continues Micha∏ Baranowski

S

Viktor Yanukovych

EU’s standards and legislation, and by tying together the Ukrainian and European bureaucracies in a permanent dialogue. Instead, the deep FTA was put into a deep freeze, and many European politicians, including Germany’s Chancellor Merkel and several high-level EU officials, decided to boycott the Euro 2012 games in Ukraine.

The coming test

COURTESY OF THE EUROPEAN PARLIAMENT

pain’s July 1 victory over Italy in the European Football Championship in Kiev was also a victory for the hosts, Poland and Ukraine.

The games have given the Poles and Ukrainians much pride, if not in the performance of their teams, then in the new stadiums, airports, train stations and highways built for the occasion. They were less successful with regard to their political purpose, which was to show both countries as strong, attractive, normal European states – Poland firmly within the EU, and Ukraine on a clear European trajectory. Poland’s European identity certainly is not in question; and it even opened a new highway from Berlin to Warsaw just days before the tournament. But Ukraine’s European aspirations are not helped by the increasingly authoritarian rule of President Viktor Yanukovych and the continued political persecution of Yulia Tymoshenko and Yuriy Lutsenko.

This was a blow not just for Kiev, but for Warsaw as well. In Poland, the goal of bringing Ukraine closer to Europe, and Europe closer to Ukraine, is a matter of deep political consensus. The Euro tournament was meant to serve as another opportunity to strengthen these ties, and to burnish Ukraine’s image in the rest of Europe.

Mr Yanukovych’s behavior put an end to all that. When former Prime Minister Yulia Tymoshenko was sentenced to seven years in prison – an action condemned as politically motivated across Europe – even the Polish Ministry of Foreign Affairs, the biggest supporter of Ukraine’s European integration, remarked that “Ukraine’s image as a country that is undertaking a fundamental pro-

European transformation has been tarnished.”

The scandal derailed the UkraineEU Association Agreement as well as the deep Free Trade Agreement (FTA), both due to be signed that fall during the Polish EU Presidency. The deep FTA in particular would have been a game-changer, anchoring Ukraine in the West by obliging Kiev to adopt a significant portion of the

Yet the final test for Ukrainian democracy is just ahead: the October 28 parliamentary elections. If that poll falls short of European democratic standards, Ukraine’s door to Europe will close with a bang and remain shut for the foreseeable future. With the European path cut off, Ukraine is likely to turn east. It might even eventually choose to join Russian President Vladimir Putin’s proposed “Eurasian Union,” which is not in the interest of the EU or the United States – or indeed of Ukrainians themselves.

Europe and the United States must now join forces in making sure that the fall elections will be free and fair. Monitoring should start early to make sure that conditions on the ground, including freedom of the media, are conducive to a free vote.

OSCE election monitoring will be

key here; but both Warsaw and Berlin–who have been skillfully playing a good-cop, bad-cop game with Kiev – should consider sending political emissaries ahead of the election to make it clear that vote manipulation of any kind will not be tolerated.

“With the European path cut off, Ukraine is likely to turn east” Even if the vote goes well, the EU and the United States will need to keep a sharp eye on Ukraine to keep its Westward course from derailing, and to continue firmly mixing incentives and conditionality to keep nudging Mr Yanukovych along in the direction of democratic governance.

Ukraine’s strategic importance is simply too great for failure. Certainly, what the EU can least afford is another Alexander Lukashenko on its border. ● Micha∏ Baranowski is a senior program officer with the German Marshall Fund in Warsaw. gmfus.org

Editorials are the opinions of WBJ’s editorial board. Other opinions are those of the authors alone. Comments, opinions and letters should be sent to editor@wbj.pl. Please include a name and contact information and clearly indicate if they are to be considered for publication.

PUBLISHER VALKEA MEDIA SA CO-MANAGING EDITOR

GARETH PRICE (GPRICE@WBJ.PL)

REAL ESTATE EDITOR

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CO-MANAGING EDITOR

ALICE TRUDELLE (ATRUDELLE@WBJ.PL) POLITICS EDITOR

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COLUMNISTS

ADAM NARCZEWSKI ANDREW NAWROCKI

CONTRIBUTORS

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MARKETING &SALES DIRECTOR

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Coming up:

July 23

August 6

August 23

Holiday residences

The legal perspective

Design & innovation

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

Karolkowa Business Park commercialization Developer Ablon Group has selected Colliers International as the exclusive leasing agent for office space in its Karolkowa Business Park project in Warsaw. The scheme is scheduled to open in October 2013.

The investment, which is located on ul. Karolkowa in the capital’s Wola district, will deliver a total of more than 17,500 sqm of space, including over 3,000 sqm of retail areas. It is expected to obtain BREEAM certification of energy efficiency and environmental performance. ●

In this issue HB Reavis offices . . . . . . . . . . . .15 Wrocław lofts . . . . . . . . . . . . . . .15 Luxury homes developers . . . .16 Property-related stocks . . . . . .16 Warsaw's Praga . . . . . . . . . . . . .17 UBM in Kraków . . . . . . . . . . . . .17 Olsztyn mall . . . . . . . . . . . . . . . .17

Construction on Gdaƒski Business Center in Warsaw underway Developer HB Reavis Poland plans to deliver the first phase of the investment in Q2 2014 Developer HB Reavis Poland has launched construction on the first phase of its Gdaƒski Business Center office project in Warsaw. The development is located on ul. Inflancka in the capital’s central district, on land that the company acquired from Spanish firm Lubasa earlier this year.

“The investment on ul.

Inflancka joins the Konstruktorska BC office building as the second project that we are now building in Warsaw,” Stanislav Frnka, country CEO, HB Reavis Poland, said in a statement. He added that the company was hoping to launch other schemes soon.

Designed by the E&L Architects studio, the 95,000sqm Gdaƒski Business Center investment will be developed in two phases, the first of which will comprise a 17storey building A and a ninestorey building B with almost 32,000 sqm and 17,000 sqm of space, respectively.

The buildings are scheduled to be completed in the second quarter of 2014. The date of the start of construction on phase two has not yet been set and will depend on the pace of commercialization of the first phase of the development.

“Gdaƒski Business Center will be a unique facility in our Polish office buildings portfolio,” Mr Frnka said. He added that the project’s convenient location at the intersection of major Warsaw roads would be an attractive offer for poten-

COURTESY OF HB REAVIS

Developer Skanska Property Group has laid a cornerstone at the construction site of its Malta House office project in Poznaƒ, Wielkopolskie voivodship. Scheduled to be completed in the third quarter of 2013, the scheme is expected to be the first LEED-certified office development in the city. Located on Poznaƒ’s Lake Malta, near the city’s Galeria Malta shopping mall, Skanska’s new five-storey investment will deliver 15,700 sqm of leasable space.

Office

The whole investment will provide 95,000 sqm of space tial tenants.

Currently active in five European countries, HB Reavis has to date developed a

total of more than 550,000 sqm of office, retail and logistics space. In the Polish capital, the company’s plans

include the delivery of an office complex near the Warsaw West railway station.

Adam Zdrodowski

Construction underway on Nowa Papiernia lofts in Wroc∏aw Developer RED-Real Estate Development has launched construction on its Nowa Papiernia multifamily residential project in Wroc∏aw.

The scheme, which will involve the renovation of a former paper mill, will comprise the first soft lofts in the city.

The investment has been designed by the AP Szczepanik architectural studio and is meant to combine the atmosphere of 19th-century Wroc∏aw with high-standard modern amenities.

A total of 129 housing units sized from 35 sqm to 100 sqm and priced between z∏.7,475 and z∏.8,625 per sqm are scheduled to be complet-

ed by the first quarter of 2014.

The second stage of the project is now being designed.

Located in the PrzedmieÊcie O∏awskie neighborhood of Wroc∏aw’s Krzyki district, the Nowa Papiernia development is part of a regeneration project that the municipal authorities started in the area in 2005.

“RED-Real Estate Development will restore an entire quarter, including the surrounding common spaces and the facades of the adjacent tenement houses,” said Ewa Piechota, marketing manager for the scheme.

Nowa Papiernia is the third residential project of RED-Real Estate Develop-

COURTESY OF PUBLICON

Cornerstone for Malta House offices in Poznaƒ

JULY 9-22, 2012, LI 17/27-28

The first phase of the project should be ready by Q1 2014 ment in Poland. The company’s portfolio also includes

the Osiedle Alpha and RED Park housing estates in War-

saw and Poznaƒ, respectively.

Joanna Wiedro

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

16

LOKALE IMMOBILIA – REAL ESTATE

www.wbj.pl

JULY 9-22, 2012

Luxury residential market

Providing prestige Buyers looking for new luxury homes in Poland will find them in the portfolios of a whole range of developers active in the country. Those include both small specialized companies and some of the largest residential developers present in the Polish market.

Specialized firms Developers that build luxury residential projects in Poland are most often specialized in the field, said Rafa∏ Liponoga, managing director at real estate advisory and brokerage firm Home Broker. He added that they may sometimes also develop upper-standard apartments, but not mid-market homes.

According to Mr Liponoga, one reason for this is the fact that the most exclusive residential projects in the market tend to be small schemes which, despite featuring very high

margins, bring relatively small nominal gains.

“Large market players hope for nominally large revenues, and those can only be obtained in the case of large projects where even if the margins are lower, they are compensated for by the [higher] number of apartments,” Mr Liponoga said.

Developers that focus solely on the luxury market include Eko-Park, which is behind the eponymous housing project in Warsaw’s Mokotów district.

Also the current offer of Myoni Group consists only of luxury developments – in Warsaw and Gdynia on the Baltic Sea. Icon Real Estate special-

izes in the revitalization of historical tenement houses and is now involved in two such projects on ul. Ordynacka and ul.

Poznaƒska in Warsaw. Tenement houses in the capital’s downtown can also be found in the portfolio of Fenix Capital.

Mr Liponoga pointed out that the revitalization of historical tenement houses is mostly the domain of small specialized firms. “Such schemes involve a lot of administrative and renovation work. Large companies do not get involved in such projects,” he said.

Market exceptions Of course, there are exceptions

COURTESY OF ECHO INVESTMENT

New luxury homes in Poland can be obtained from a diverse lot of residential developers

Echo Investment’s Klimt House in Warsaw

Property-related stocks Security

Closing price on July 5

% change (week)

52-week low

52-week high

% change (year)

Total shares

Market value (z∏. mln)

BUDIMEX

60.40

13.32

53.30

89.70

-34.35

25,530,098

1,542.02

CELTIC

10.00

-16.67

12.76

22.70

-51.22

34,068,252

340.68

DOMDEV

28.35

4.23

23.50

49.39

-40.78

24,670,397

699.41

ECHO

3.60

1.98

3.05

5.09

-33.09

420,000,000

1,512.00

ELBUDOWA

98.10

4.31

87.00

164.00

-38.69

4,747,608

465.74

ENERGOPLD

0.76

10.14

0.61

3.90

-80.10

70,972,001

53.94

ERBUD

14.50

-3.33

13.71

29.90

-52.46

12,644,169

183.34

GANT

6.66

11.74

5.85

11.24

-43.61

20,499,953

136.53

to this general rule, with some developers present in the midmarket and luxury residential segments alike, Mr Liponoga said. He noted that this concerns even some of the largest home providers in Poland, including Warsaw Stock Exchange-listed Dom Development.

The company has delivered thousands of relatively cheap housing units in Warsaw over the last few years, but is also behind two of the most expensive and most prestigious residential developments in the Polish capital, Apartamenty Grzybowska and Rezydencja Opera.

Luxury residential projects can also be found in the portfolio of another large WSE-listed developer, Echo Investment, a company that is otherwise well known in the market for its numerous office and shopping center investments across Poland.

Echo Investment has to date developed more than 10 luxury schemes in cities including Warsaw, Kraków and Poznaƒ and is currently selling apartments in its Klimt House development in the capital’s Mokotów district.

The company is now looking for new attractive locations.

“We are watching the market very closely and continued buyer interest in this kind of offer makes us include new luxury residential projects in our plans,” said Iwona Dekarz, sales and marketing director at Echo Investment.

Smaller companies that develop both luxury and more affordable apartments include Magnus Group, which is active in the highly popular Warsaw district of Bia∏o∏´ka and has also developed the luxury Rezydencja Pi´kna Nova and Szósty Zmys∏ investments in the capital’s downtown.

GTC

6.57

4.29

5.20

17.90

-62.48

219,372,990

1,441.28

HBPOLSKA

0.22

37.50

0.15

2.15

-90.22

210,558,445

46.32

JWCONSTR

4.73

19.75

3.86

14.88

-68.34

54,073,280

255.77

LCCORP

1.28

-2.29

0.85

1.48

-9.22

447,558,311

572.87

MARVIPOL

10.50

3.75

6.20

10.50

5.53

36,923,400

387.70

MIRBUD

1.14

-4.20

0.99

3.82

-70.54

75,000,000

85.50

Know-how needed

MOSTALWAR

14.50

2.76

11.30

31.03

-53.94

20,000,000

290.00

MOSTALZAB

1.00

-2.91

0.99

2.58

-62.41

149,130,538

149.13

ORCOGROUP

10.50

2.24

9.68

32.50

-66.97

35,415,406

371.86

PBG

9.90

71.88

5.30

151.00

-93.36

14,295,000

141.52

PLAZACNTR

2.30

-1.29

1.80

4.17

-42.50

297,174,515

683.50

Real estate market analysts point out that the development of luxury residential projects, whether by regular housing developers or companies which specialize in that specific kind of products, requires the employment of special tools and know-how.

Katarzyna LubaÊ, an analyst at redNet Property Group, noted that a unique location, often in a city’s historical center and close to prestigious institutions, is a more important factor than apartment price for potential buyers of luxury homes.

Also the quality of the architecture of a given building and the prestige of its architect,

POLAQUA

5.69

-5.01

4.53

18.80

-69.21

27,500,100

156.48

POLIMEXMS

0.82

18.84

0.69

3.53

-75.67

521,154,076

427.35

POLNORD

14.90

-1.00

10.49

26.79

-44.81

23,798,439

354.60

RANKPROGR

9.03

1.57

7.85

16.97

-27.76

37,145,050

335.42

ROBYG

1.35

0.75

1.04

1.91

-28.95

257,935,500

348.21

RONSON

0.89

-6.32

0.77

1.38

-36.88

272,360,000

242.40

TRAKCJA

0.91

3.41

0.65

3.13

-70.26

232,105,480

211.22

ULMA

39.86

-1.07

38.88

82.00

-50.18

5,255,632

209.49

UNIBEP

4.80

-0.83

4.47

6.61

-27.16

34,021,684

163.30

WARIMPEX

3.24

2.86

2.95

8.43

-62.11

54,000,000

174.96

ZUE

6.29

-0.16

5.07

11.27

-36.53

22,000,000

138.38

Selected luxury homes developers in Poland Atlas Estates The developer’s portfolio includes the Platinum Towers project in Warsaw, a complex of two luxury residential high-rise buildings located right next to the capital’s Hilton Warsaw Hotel & Convention Centre.

Contact: (+48) 22 632 60 20, atlasestates.pl Eko-Park The company is involved in an eponymous project in Warsaw that comprises 11 complexes of luxury residences. Construction is now underway on Grazioso Apartamenty, the last phase of the scheme.

Contact: (+48) 22 513 00 00, ekopark.pl Icon Real Estate The developer specializes in the revitalization of historical tenement houses and is also currently involved in the development of the Piano House luxury residential project in Warsaw’s prestigious PowiÊle neighborhood.

Contact: (+48) 22 244 13 60, iconre.pl Maylane Polska The developer is focused on the delivery of luxury residential projects in Kraków. The company’s investments include the Parkside, Cityside and Riverside developments located in the downtown of the city.

Contact: (+48) 12 428 72 22, maylane.com Menolly Poland Part of the Irish real estate developer and investor, Menolly Group, the company is best known in Poland for its Nowe PowiÊle luxury apartments and penthouses in Warsaw located close to the bank of the Vistula River.

Contact: (+48) 22 845 00 00, menolly.pl Orco Property Group The company is now building Z∏ota 44 in Warsaw, a Daniel Libeskind-designed signature skyscraper that will house, among other things, the most expensive penthouse available in the capital’s market.

Contact: (+48) 22 595 49 00, orco.pl Tacit Development Polska The flagship investment of this developer is the Cosmopolitan Twarda 2/4 residential tower in Warsaw offering over 250 turnkey apartments. The skyscraper was designed by the renowned German-American architect, Helmut Jahn.

Contact: (+48) 22 213 50 00, tacit.com.pl Zdrojowa Invest The company is one of the largest providers of luxury second homes in Poland. The developer’s offer includes apartments in several locations in the Mazury Lake District, in the Polish mountains and on the Baltic Sea. Contact: (+48) 22 713 89 00, zdrojowainvest.pl

keeping up with the most recent trends and the use of highest-quality finishing materials are all important in the market.

It is therefore crucial that development companies that build luxury residential projects do thorough research of buyers’ needs and have knowledge of the specificity of this segment of the market, Ms LubaÊ said.

Of a similar opinion was Bartosz Jankowski, primary market manager at Home

Broker. He stressed that the cost of constructing a luxury apartment can be twice as high as that of building a midmarket unit.

The investment process involves contracting a renowned architectural studio and a renowned construction company, as well as employing special marketing techniques as the luxury home buyer is much more demanding and choosy, Mr Jankowski said.

Adam Zdrodowski

LOKALE IMMOBILIA – REAL ESTATE

JULY 9-22, 2012

Commercial space

Warsaw’s Praga to benefit from Euro 2012: report New infrastructure projects should attract developers to the hitherto neglected part of the city Warsaw’s eastern districts of Praga Pó∏noc and Praga Po∏udnie stand a good chance of attracting new commercial property investments in the next few years following the development of the area’s infrastructure in the run-up to the Euro 2012 soccer championship, according to a recent report by CBRE. To date, that part of the Polish capital – on the east

bank of the Vistula River – has not attracted many commercial space developers, the study noted. The existing office supply in the area, for instance, currently amounts to 171,000 sqm, compared to almost 3.5 million sqm in leftbank Warsaw.

The retail market is seen as more mature, with the Praga districts featuring over 360,000 sqm of shopping center space in facilities including Promenada, Warszawa Wileƒska, CH Goc∏aw and King Cross Praga. By comparison, the supply of retail space in left-bank Warsaw totals 963,000 sqm.

Right-bank bureaus Major existing office buildings in Praga

Building

Year completed

Office space (sqm)

Promenada

1996

12,800

Siemens

1999

15,000

Centrum Milenium

2000

10,200

Blue Point

2001

14,500

Polsat TV

2002/2008

11,400

Warszawa Wileƒska

2002

12,500

Radwar Business Park 2010

11,800 Source: CBRE

According to CBRE analysts, there has been a positive shift in the perception of Praga in recent years and the construction of the National Stadium and the modernization of two of the area’s railway stations have already largely contributed to further improving its image.

Several planned transport infrastructure projects, including the Trasa Tysiàclecia and Trasa Âwi´tokrzyska roads, as well as a new ring road, are expected to be crucial in the development of new commercial investments in Praga.

“It is the second subway line that will be a breakthrough,” Joanna Mroczek, director, research and consultancy at CBRE Poland, said in a statement. Two subway stations are scheduled to be completed in Praga in 2014.

The CBRE report pointed out that a number of new major commercial projects in Praga have already been announced. Those include the redevelopment of the Port Praski area and the former Koneser vodka distillery in the Praga Pó∏noc district.

Zofia Ró˝alska

UBM to build Alma Tower building in Kraków Developer UBM has signed a preliminary agreement with Alma Market concerning the development of a class-A office building called Alma Tower in Kraków, Ma∏opolskie voivodship. According to the deal, Alma Market will lease approximately 50 percent of the space in the scheme.

Construction on Alma Tower, which will deliver 10,000 sqm of space, is scheduled to launch in the third quarter of this year and finish 18 months later. UBM Polska

is responsible for the architectural design and commercialization of the investment.

“The Alma Tower project will be the first commercial investment of UBM in Kraków,” Peter Obernhuber, management board member at UBM Polska, said in a statement. He added that the company sees potential in the city’s office market.

In other news, UBM has announced the delivery of the second phase of the Poleczki Business Park project in

which the company is now involved, along with CA Immo, in Warsaw. The phase comprises two buildings offering a total of more than 21,000 sqm of class-A office space.

Poleczki Business Park is located on ul. Poleczki in the capital’s Ursynów district. The first phase of the investment was completed in March 2010 and consists of two buildings comprising a combined 45,000 sqm of space.

Adam Zdrodowski

Retail Provider awaits zoning for Olsztyn mall Municipal officials in Olsztyn, the capital of the Warmiƒsko-Mazurskie voivodship, last month launched the procedure for drawing up a zoning plan for the area surrounding the city’s main railway station.

The zoning plan is awaited by real estate investor Retail Provider, which is looking to develop an investment called

Nowy Dworzec Olsztyn on land in the area. If the zoning is in place by the end of this year, the company will start construction in H1 2013.

The Nowy Dworzec Olsztyn project calls for the development of a shopping mall with 45,000 sqm of leasable space that would be integrated with modern railway and bus stations. The value of the

scheme is estimated at approximately €115 million.

“The investment is already enjoying ample interest of key tenants so the official commercialization of the project will launch as early as in July,” Tomasz Andryszczyk, a spokesperson for Retail Provider, said in a statement.

Adam Zdrodowski

www.wbj.pl

17

18

THE LIST

www.wbj.pl

JULY 9-22, 2012

Education

Language Schools Ranked by revenue from language training in 2010 Languages taught

Other

Selected clients

Number of teachers / Native speakers

Number of branches: in Poland / in Warsaw / Year founded

Top local executive / Title

✓ ✓ ✓

Finnish; Norwegian; Swedish; Hungarian; Japanese; Arabic and others on demand

WND

900 150

56 9 2001

Jordi Dalet

✓ ✓ ✓

✓ ✓ ✓

Swedish

Orlen Upstream; Nikon Polska; Bank Zachodni WBK; ING Investment Management

208 32

Witold Buczyƒski; 7 Iwona Âwi´cicka 7 Director of 1993 Director; Studies

PASE; ISO 9001:2009; accreditation of University of Cambridge ESOL Examinations

✓ ✓ ✓

✓ ✓ ✓

Chinese; Slovak; Czech; Swedish; Hungarian and others on demand

WND

243 23

WND WND 1991

Katarzyna Kieszkowska

EuroCertyfikat 2008; JakoÊç Roku 2008; Accreditation of Kuratorium OÊwiaty

✓ ✓ ✓

✓ ✓ ✓

Polish for foreigners; Greek; Albanian; Swedish; Portuguese; Dutch; Czech; Slovak; Danish

WND

450 90

5 5 1999

Maria CzajaDysiewicz

PASE; Szkolenia Najwy˝szej JakoÊci

✓ ✓ ✓

✓ ✓ ✓

WND WND

2 2 1991

Marzena Fryckowska

✓ ✓ ✓

✓ ✓ ✓

Any other on demand

WND

160 35

6 3 1991

Bartosz Szyke

✓ ✓ ✓

Chinese; Swedish; Bulgarian; Lithuanian; Latvian; Norwegian; Romanian; Serbian; Ukrainian; Hungarian

ABB; Ariadna; Bankowy Fundusz Leasingowy; BRE Bank; Cebal Tuba; Gazeta Wyborcza; Hotele Centrum; Makro Cash and Carry; Media Markt; OBI; Uniqa; Polimex Mostostal; Próchnik

49 3

4 1993

Bo˝ena Ziemniewicz

Czech; Croatian; Swedish; Norwegian; Danish; Polo; Hydac; CocaJapanese; Chinese; Polish Hager Cola HBC; Hilton Foods; for foreigners; Arabic; Johnson Controls; Slovak; Hungarian; Voestalpine; ArcelorMittal; Romanian; Bulgarian; Almi Polska; Aweco Polska Ukrainian; Portuguese; Appliance; Poschmann Dutch; Greek; Turkish; Persian; Hebrew; Latin

115 11

5 1996

Dariusz WiÊniewski

Skanska; Jeronimo Martins Dystrybucja; Allianz; Skandia; Jones Lang LaSalle

93 23

1 1 1999

Ma∏gorzata Procner

English / German / French Spanish / Russian / Italian

Revenue from Total of language revenue Number training (z∏. mln) students (z∏. mln)

For children / Adults / Corporate Intensive / Individual / Group On-site (at schools) / Off-site / Conversation

Rank

Course types

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

www.bookoflists.pl

Special courses

Preparatory courses for exams

Certificates

EU project fulfillment (8.1.1; 9.1.2; 9.1.1; 9.4; 9.5); courses for companies (telephoning; mailing; meetings and presentations; customer care; writing)

City & Guilds; LCCI; TELC; TOLES; Cambridge; TOEFL

Accreditation of Kuratorium OÊwiaty for 8 schools

✓ ✓ ✓

Accreditation of Kuratorium OÊwiaty; IATEFL - International Association of Teachers of English as a Foreign Language; British Council Poland; LCCI - London Chamber of Commerce and Industry; GLE - Global Legal English; ETS Educational Testing Service; Cambridge ESOL Exam Preparation Centre

1st half of 2011 / 2010 / 2009 / 2008

Learning Systems Poland Sp. z o.o.

1 Al. SolidarnoÊci 117, 00-140 Warsaw 22 429-0666/22 429-0603 www.empikschool.pl; www.speakup.pl

64.0 115.0 111.0 101.0

64.0 115.0 111.0 101.0

43,231 85,234 81,019 65,986

✓ ✓ ✓

WND ✓ WND ✓ ✓ WND

TFLS - Testing & Foreign Language Services ul. Boduena 4, 00-011 Warsaw 2 22 622-2058 /22 622-2058 biuro@tfls.com.pl www.tfls.com.pl

5.3 11.5 10.9 13.4

5.3 11.5 10.9 13.4

3,524 5,205 4,658 6,757

✓ ✓ ✓

✓ ✓ ✓

✓ ✓

Lang LTC Sp. z o.o. ul. S´dziowska 5, 02-081 Warsaw 3 22 825-1648/22 825-1648 lang@lang.com.pl www.lang.com.pl

4.6 8.2 7.4 7.8

4.5 8.3 7.5 8.9

6,345 8,527 7,332 6,903

✓ ✓

✓ ✓ ✓

✓ ✓ ✓

L2 - Language Consulting Sp. z o.o. ul. Marsza∏kowska 8/17, 4 00-590 Warsaw 22 622-4772/22 622-3051 info@language.com.pl www.language.com.pl

3.8 6.8 7.0 7.9

3.8 6.8 7.0 7.9

2,600 4,600 4,000 5,000

✓ ✓ WND

✓ ✓ ✓

✓ ✓ ✓

Accounting; financial; law; HR; IT; marketing; FCE; CAE; CPE; EFB; commerce; politics; SEFIC; TOEFL; BEC; project management; KDS; GDS; ZD; ZMP; commercial ZDfB; DELF; DALF; correspondence; TOEIC; ICFE; ILEC; IELTS; negotiating; business TOLES; DELE communications; office; everyday English

Warsaw Study Centre Sp. z o.o., Sp.k. ul. Pandy 13/5, 02-202 Warsaw 5 22 824-2393/22 822-4618 ctc@wsc.edu.pl www.wsc.edu.pl

3.5 6.4 5.2 6.1

3.6 6.5 5.2 6.2

1,960 5,155 6,545 6,200

✓ ✓ ✓

✓ ✓ ✓

✓ ✓ ✓

FCE; CAE; CPE; KET; Courses for auditors, PET; YLE; ZD; ZMP; prosecutors; NATO & EU DELF; DALF; BEC; TOEIC; IELTS; TOEFL; ZDfB

Ogólnopolska Grupa J´zykowa Lingua Nova Sp. z o.o. ul. Wspólna 41, 00-519 Warsaw 6 801-080-424/22 584-1019 kursy@linguanova.com.pl www.linguanova.com.pl

3.7 3.4 6.5 7.0

3.7 3.4 6.5 7.0

2,100 2,300 3,100 3,300

✓ ✓ ✓

✓ ✓ ✓

✓ ✓ ✓

Technical; law; medical; business

BRITISH CENTRE Bo˝ena Ziemniewicz, Marian MikuÊ Sp.j. ul. Pomorska 140, 91-404 ¸ódê 7 42 678-9126/42 678-6444 kancelaria@british-centre.pl www.british-centre.pl

WND 3.1 WND WND

WND 3.1 WND WND

WND 3,544 1,864 1,706

PHU BEST Centrum J´zyków Obcych ul. Kopernika 1B, 43-100 Tychy 8 32 217-7801/32 747-3073 info@bestcentrum.pl www.bestcentrum.pl

1.3 2.3 2.4 2.3

1.3 2.3 2.4 2.3

1,790 3,560 2,981 3,146

ACT Advanced Corporate Training Sp. z o.o. ul. Wilcza 31/5, 00-544 Warsaw 9 22 856-7407/22 625-2893 act@act.edu.pl www.act.edu.pl

1.1 1.6 2.3 3.2

1.4 2.2 2.8 3.9

WND WND WND WND

✓ ✓ ✓

✓ ✓ ✓

✓ ✓

✓ ✓ ✓

✓ ✓ ✓

✓ ✓ ✓

Special courses for: FCE; CEA; CPE; EFB business, law, finance and (LCCI); TOEFL; TOLES; banking, IT, medicine, teachers; technical English FCTBE; GMAT; TKT

Bussiness; law; accounting

PET; KET; FCE; CAE; CPE; BEC; BULATS

LCCI; TOEIC; IELTS; TOEFL; FCE; CAE; CPE; Accreditation of KET; PET; IELTS; ILEC; Kuratorium OÊwiaty; ISO: BUTLATS; ZD; ZDfB; 9001; ETS; LCCI; ELCL ZMP; PWD; ZOP; DELE; Quality Alliance DALF; DELF; CILS; CELI

✓ ✓

Business negotiations; business correspondence; Accreditation of communication; phone Cambridge BULATS; Kuratorium OÊwiaty; conversation; Pearson Language Test; EuroCertyfikat 2007; Firma presentations; business Cambridge ESOL; TELC; Roku 2010 Primus Inter meetings; languages: law, DELE; CELI; DELF Pares; Lider w Edukacji medical, finance and 2011 banking, technical, survival English

✓ ✓

Accreditation of TOEIC; WiDaF; TFI; LCCI Kuratorium OÊwiaty; ELCL Courses for seniors; FELSA; ELSA; JET; QA (European Language courses for shift workers; (EFB; SET); FCE; CAE; CPE; Competence Licence); business; technical; PET; KET; BEC; ZD; ETS; LCCI; TELC; British medical; IT; courses for Goethe-Zertifikat; FIT; Council Supplier Institution foreigners DELE; DELF; CILS; CELI for Cambridge ESOL Examinations

✓ ✓ ✓

✓ ✓ ✓

✓ ✓ ✓

Presentations; negotiations; conducting meetings; business correspondence; finance and banking; HR; sales and marketing; customer service; production management

✓ ✓ ✓

✓ ✓ ✓

FCE; CAE; CPE; BEC; TOEIC; ILEC

PASE; Data Group

✓ ✓ ✓

Swedish; Chinese; PGNiG; Faurecia; Samsung; Arabic; Portuguese; Henkel; Warsaw Stock Japanese; Czech; Polish Exchange: TP; Polkomtel for foreigners and others

Polish for foreigners; Czech; Portuguese

President

President

President

President

President

Co-owner

Director

Director

THE LIST

JULY 9-22, 2012

www.wbj.pl

Preparatory courses for exams

Certificates

Other

Selected clients

Number of branches: in Poland / in Warsaw / Year founded

Special courses

Number of teachers / Native speakers

Revenue from Total of language revenue Number training (z∏. mln) students (z∏. mln)

English / German / French Spanish / Russian / Italian

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

Languages taught

For children / Adults / Corporate Intensive / Individual / Group On-site (at schools) / Off-site / Conversation

Rank

Course types

19

Top local executive / Title

TP; Avon; Estee Lauder

100 20

WND WND 1997

Zbigniew Dàbrowski

1st half of 2011 / 2010 / 2009 / 2008

Skrivanek Sp. z o.o. ul. Podlaska 12, 20-304 Lublin 9 58 337-1336/58 323-7720 marketing@skrivanek.pl www.skrivanek.pl

1.0 1.6 2.1 3.2

6.6 11.2 13.7 16.9

WND WND 3,000 4,000

✓ ✓

✓ ✓ ✓

✓ ✓ ✓

FCE; CAE; BEC; LCCI; Business; law; customized ILEC; TOLES; TELC; TOIC

ISO; accreditation of Ministry of National Education

✓ ✓ ✓

✓ ✓ ✓

Dutch

OXFORD SERVICES - Jacek Kieruczenko ul. Sienkiewicza 40, 90-009 ¸ódê 11 42 630-7072/42 630-6621 biuro@oxfordszkola.pl www.oxfordszkola.pl

0.5 1.4 1.9 2.1

0.5 1.4 1.9 2.1

660 750 1,210 1,050

✓ ✓ ✓

✓ ✓ ✓

✓ ✓ ✓

Courses for the YLE; KET; PET; FCE; CAE; unemployed; courses for CPE; BEC; TOEIC; seniors SWEDEX

PASE

✓ ✓ ✓

✓ ✓ ✓

Swedish; Portuguese; Dutch; Arabic; Polish for foreigners

WND

35 2

1 1992

Szko∏a J´zyków Obcych Centrum Edukacji Grupa ORLEN ul. Kobyliƒskiego 25, 09-400 P∏ock 12 24 365-8619 24 365-8653/24 365-8624 sjo@centrumedukacji.pl www.centrumedukacji.pl

1.3 1.3 1.3 1.4

14.0 16.5 7.8 8.2

1,946 2,228 2,124 2,487

✓ ✓ ✓

✓ ✓ ✓

✓ ✓ ✓

Business; finance; chemical

KET; PET; FCE; CAE;CPE; Accreditation of BEC; IETLS; YLE; TOLES; Mazowiecki Kurator ILEC; ICFE; TKT; DELE; OÊwiaty; DIN EN ISO TORFL 1-5; ZD; ZDfB; British Council; ZDP; CELI; CILS; DELF; 9001-2008; Cambridge ESOL CEFP

✓ ✓ ✓

✓ ✓ ✓

Lithuanian; Ukrainian; Polish for foreigners

PKN Orlen; Mostostal; Basell Orlen Polyolefins; CNH Polska

50 2

2 Joanna Lisiewska Manager 1999

Plimat - Centrum J´zykowe Maciej Pliszka ul. ¸ukasiƒskiego 7, 58-100 Âwidnica 13 74 853-6620/74 664-7508 biuro@plimat.pl www.plimat.pl

0.3 0.6 0.7 0.7

0.3 0.6 0.7 0.7

590 1,100 1,200 1,100

✓ ✓ ✓

✓ ✓ ✓

✓ ✓ ✓

Business

TELC; KET; PET; FCE; CAE; CPE; IELTS; TOEFL; TOEIC; ESOL Trinity; DELE; Goethe-Institut

Trinity College; TELC

✓ ✓ -

✓ ✓ ✓

Polish for foreigners

Colgate; Krause; Dolmeb; Colorobbia; T&PN Polska; NIFCO

13 3

2 2002

Maciej Pliszka

AKADEMOS Sp. z o.o. - Szko∏a J´zykowa PADEREWSKI ul. Symfoniczna 1, 20-853 Lublin 14 81 443-8805/81 443-8805 jezyki@akademos.com.pl www.jezyki.akademos.com.pl

0.2 0.5 0.4 0.4

0.2 0.5 0.4 0.5

271 314 335 395

✓ ✓ ✓

✓ ✓ ✓

✓ ✓ ✓

Business; law; medical; TOEIC; TOEFL; TFI; IELTS; technical; IT; Polish for SAT; YLE; KET; PET; FCE; foreigners CAE; CPE; BEC

TELC; ETS

✓ ✓ ✓

✓ ✓ -

Polish for foreigners

Schenker; Compugroup Medical Polska; Bury; District court in Lublin

22 3

1 1995

Anna Guldynowicz

Meritum-Polish Language School ul. Poleczki 23F, 02-822 Warsaw 15 22 436-7393/22 436-7390 info@meritum.com.pl www.meritum.com.pl

0.3 0.4 0.5 0.5

0.3 0.4 0.5 0.5

291 498 494 545

✓ ✓ ✓

✓ ✓ ✓

✓ ✓ ✓

Banking and finance; The art of assertiveness; business management; Committee of Banking day-to-day Polish; cultural Supervisory: B1-Treshold differences; integration Level; B2-Ventage Level; workshops; company C2-Mastery Level presentation; accounting and finance

Professional Company Certificate

-

-

Polish for foreigners

Nestlé Polska; Nestlé Polska; Bank BG˚; Bank BPH; Embassy of South Africa

25 25

2 2 1992

Dariusz Pi∏atowicz

Lingua Polonica ul. Zamiany 14/12, 02-784 Warsaw 16 604-752-573/22 823-9480 linguapolonica@linguapolonica.com.pl www.linguapolonica.com.pl

WND 0.1 0.04 WND

WND 0.1 0.04 WND

WND 55 50 40

✓ ✓ ✓

✓ ✓ ✓

✓ ✓ ✓

Courses for diplomats; Preparing for Polish business; profiled courses language national exam

WND

✓ -

-

Polish for foreigners

Merck; Bancaja; British Embassy; French Embassy; France Telecom; Nike

5 5

1 1 2007

Monika Tomala

EBL - European Business Languages ul. Miklaszewskiego 3, 02-776 Warsaw NR 22 643-1248 ebl@ebl.com.pl www.ebl.com.pl

WND WND WND WND

WND WND WND WND

2,500 3,000 2,800 WND

✓ ✓

✓ ✓ ✓

✓ ✓ ✓

Business

-

✓ ✓ ✓

✓ ✓ ✓

Polish for foreigners

Eaton; Rheinzink; Fast Group; Proservice Agent Transferowy

30 7

1 1 1999

Sebastian B∏aszczyk

Future Centre Training Corporation Krawczyk i Lipczyƒski Sp.j. ul. Mariensztat 8, 00-302 Warsaw NR 22 538-9111/22 538-9200 info@futurecentre.eu www.futurecentre.eu

WND WND WND WND

WND WND WND WND

4,726 6,223 4,210 5,438

✓ ✓

✓ ✓ ✓

✓ ✓ ✓

Language trips for youth; banking and finance; gastronomy; HR; IT; accounting; marketing; law; technical

PIFS; LCCI; ETS

✓ ✓ ✓

✓ ✓ ✓

Polish for foreigners; Portuguese; Swedish; Norwegian; Chinese

WND

450 60

2 1 2000

Robert Krawczyk

Sympozjum Joanna Rostek & Patrick Trompiz ul. Lwowska 2A/47, 00-658 Warsaw NR 22 875-8589 513-097-400/22 875-7195 office@sympozjum.edu.pl www.sympozjum.edu.pl

WND WND WND WND

WND WND WND WND

600 600 700 WND

WND ✓ ✓

✓ ✓ ✓

✓ WND WND

WND

✓ ✓ ✓

✓ ✓ ✓

Japanese; Icelandic; Polish for foreigners

Mennica Polska; Deloitte; TMF Poland; Iberdrola

50 10

4 1 1995

Joanna Rostek; Patrick Trompiz

Notes: NR = Not Ranked, WND = Would Not Disclose. Research for The List was conducted in December 2011. Number of employees is as of August 2010. All information pertains to the companies’ activities in Poland. Companies not responding to our survey are not listed. Reported in cooperation with Polish Association for standards in Language Education.

WND

TOEIC; TOFEL; WiDaF; TFI; LCCI

TOLES; ILEC; IELTS; Courses for lawyers, tax Certificate of Polish consultants, accountants, ICFE; as Language; real estate agents, asset BEC;Foreign valuers, businesspeople DELF;Goethe-Zertifikat; DALF; DEEL; DFP

Product Manager

Jacek Kieruczenko

Owner

Director

Director

Director

Managing Director

Partners

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. Katarzyna Hernik, ul. Elblàska 15/17, 01-747 Warsaw, via fax to (+48) 22 639-8569, or via e-mail to wbjbol@wbj.pl. Copyright 2011, Valkea Media SA. The List may not be reprinted or reproduced in whole or in part without prior written permission of the publisher. Reprints are available.

20

MARKETS

www.wbj.pl

JULY 9-22, 2012

Stocks report

world stock indices DJIA

NASDAQ

12,896.67 (July 5 close)

S&P500

2.14% (for the week)

FTSE100

1,367.58 (July 5 close)

2,976.12 (July 5 close) 3.51% (for the week)

DAX

5,692.60 (July 5 close)

2.68% (for the week)

3.63% (for the week)

The WIG struggles

NIKKEI225 6,535.56 (July 5 close)

9,079.80 July 5 close)

6.27% (for the week)

2.32% (for the week)

CHANGE: 2.05%

CHANGE: 8.56%

CHANGE: 4.29%

CHANGE: -3.63%

CHANGE: 1.22%

CHANGE: 3.67%

(year to July 5)

(year to July 5)

(year to July 5)

(year to July 5)

(year to July 5)

(year to July 5)

52-week high: 13,359.60

52-week high: 3,134.17

52-week high: 1,422.38

52-week high: 6,084.10

52-week high: 7,523.53

52-week high: 10,255.20

52-week low: 10,362.30

52-week low: 2,298.89

52-week low: 1,074.77

52-week low: 4,791.00

52-week low: 4,965.80

52-week low: 8,135.79

Andrew Nawrocki WBJ market analyst The first week of July started with a struggle, with Polish stocks performing worse than their European peers. On July 2, on the back of poor manufacturing data from the euro zone and the United States, Poland released its worst industrial production data in three years. The WIG shed slightly more than half a percent, with the WIG20 dropping nearly a percent.

Hit particularly hard were financial shares, with Handlowy dropping 3.4 percent and Pekao 2.6 percent.

Tuesday July 3 saw shares regain Monday’s losses after growing expectations that major central banks will act to bolster the world economy. Volumes were low throughout Europe, possibly the effect of a shorter day in the US ahead of Independence Day on July 4. The

Major indices WIG

41,013.96 (July 5 close)

WIG20

2,287.47 (July 5 close)

05.07

04.07

03.07

02.07

29.06

28.06

27.06

26.06

25.06

22.06

21.06

20.06

19.06

05.07

04.07

03.07

02.07

29.06

28.06

27.06

26.06

25.06

22.06

2,000

21.06

36,000

20.06

2,060 19.06

2,120

37,200

18.06

38,400

15.06

2,180

14.06

39,600

13.06

2,240

12.06

40,800

11.06

2,300

08.06

42,000

18.06

52-week low: 2,035.80

15.06

Change year to July 5: 4.26%

14.06

52-week low: 36,549.47

13.06

52-week high: 2,895.87

Change year to July 5: 7.04%

12.06

Change for the week: 2.20%

11.06

52-week high: 49,747.78

08.06

Change for the week: 2.11%

Top 5 PBG IFCAPITAL ADVADIS HBPOLSKA AGROTON

Closing 9.90 6.59 0.07 0.22 9.78

% change (week) 52-week high 71.88 151.70 46.44 14.97 40.00 0.16 37.50 2.28 26.36 31.50

52-week low 5.21 0.45 0.04 0.15 7.29

Top 5 PBG POLIMEXMS TVN LOTOS KGHM

Closing 9.90 0.82 9.37 29.41 153.00

% change (week) 71.88 18.84 9.98 8.13 7.75

52-week high 151.70 3.55 17.29 46.43 198.20

52-week low 5.21 0.65 7.38 21.30 102.40

Bottom 5 ABMSOLID IDMSA SEKO INTERSPPL IDEATFI

Closing 0.80 1.07 3.90 2.41 1.98

% change (week) -40.74 -40.56 -34.67 -32.87 -25.00

52-week low 0.73 1.00 3.72 1.33 1.91

Bottom 5 CEZ ASSECOPOL TAURONPE BZWBK TPSA

Closing 115.00 48.75 4.40 228.00 15.45

% change (week) -2.79 -1.91 -1.12 -0.83 -0.64

52-week high 146.00 55.45 6.56 240.00 18.56

52-week low 112.00 34.50 4.10 190.10 14.30

52-week high 8.45 2.72 9.52 4.56 9.19

Currency report

Euro hopes help the z∏oty

Other indices sWIG80

9,528.25 (July 5 close)

NewConnect

35.87 (July 5 close)

WIG-Banki

SOURCE: WSE

05.07

04.07

03.07

02.07

29.06

28.06

27.06

26.06

25.06

22.06

21.06

20.06

19.06

18.06

05.07

04.07

03.07

02.07

29.06

28.06

27.06

26.06

25.06

22.06

21.06

5,100

20.06

35

19.06

5,300

18.06

36

15.06

5,500

14.06

37

13.06

5,700

12.06

38

11.06

5,900

08.06

39

15.06

52-week low: 4,944.19

14.06

Change year to July 5: 0.42%

13.06

52-week low: 35.87

12.06

52-week high: 7,071.91

Change year to July 5: -13.55%

11.06

Change for the week: 3.59%

08.06

52-week high: 56.98

6,100

Developments in Europe provided the necessary impulses for markets to rebound in late June and early July. During a recent EU summit it was decided that Spain and Italy would receive financial aid. Moreover, more help has come from central banks as the ECB cut interest rates by 25 basis points to 0.75 percent in early July and the Bank of England extended its assetpurchase program.

The EU summit decision as well as hopes that there will be more interventions from central banks lifted the EUR/USD. However, when investors realized that the financial help given to Spain and Italy had not solved the underlying problem, a selloff of the euro began, which continued after the expected ECB interest cut, bringing the

5,766.43 (July 5 close)

Change for the week: -1.24%

40

Adam Narczewski X-Trade Brokers DM SA

05.07

04.07

03.07

02.07

29.06

28.06

27.06

26.06

25.06

22.06

52-week low: 8,218.71

21.06

18.06

52-week high: 12,593.39

15.06

05.07

04.07

03.07

02.07

29.06

28.06

27.06

26.06

25.06

8,000 22.06

2,000

21.06

8,400

20.06

2,100

19.06

8,800

18.06

2,200

15.06

9,200

14.06

2,300

13.06

9,600

12.06

2,400

11.06

10,000

08.06

2,500

14.06

Change year to July 5: 10.74%

13.06

52-week low: 2,076.52

12.06

Change year to July 5: 4.80%

11.06

Change for the week: 0.60%

08.06

52-week high: 2,922.89

20.06

2,295.44 (July 5 close)

19.06

mWIG40 Change for the week: 1.97%

WIG did manage to gain half a percent, with the WIG20 up 0.70 percent.

Volumes remained low on Wednesday July 4, with stocks again pulling back.

Investors took the day to wait and see how policy decisions by the European Central Bank and The Bank of England would pan out the next day. Both the WIG and WIG20 dropped by about 0.4 percent.

On Thursday July 5, after the ECB lowered its interest rate in line with expectations, markets throughout Europe dipped. Only Tallinn and Warsaw managed to close higher, with Warsaw’s WIG20 up 1.1 percent.

On Friday, July 6, the WIG finished down 0.54 percent. The next two weeks ahead will continue to depend on events in Europe. ●

EUR/USD to $1.24. The outlook remains negative and lower levels are expected.

On the local market, the Monetary Policy Council (RPP) kept interest rates unchanged at 4.75 percent, but central bank president Marek Belka pointed to symptoms of an economic slowdown. This has now become the major worry, with inflationary fears declining.

The RPP is not expected to change its monetary policy any time soon, with rate hikes now out of the question.

The same hopes that lifted the euro also helped the z∏oty regain value against the major currency pairs, with the Polish currency breaking through the psychological barrier of z∏.4.20 to the euro in early July. On Friday, June 6, the z∏oty was at 4.21 to the euro, according to NBP data. ●

currency rates 4.2367 05.07

4.2645

4.1870 04.07

06.07

4.1890 03.07

SOURCE: NBP

4.1999

4.2613 29.06

0.1039

0.1043 06.07

4.0

02.07

PLN-100JPY

4.8

05.07

0.1038 04.07

0.1027 03.07

02.07

0.1030 29.06

3.5142

3.5119 06.07

0.1

0.1030

PLN-RUB

0.11 7

05.07

3.5005 04.07

3.5052 03.07

3.5477

3.5217 02.07

06.07

05.07

04.07

03.07

29.06

5.2914

5.2573

5.2290

5.2451

5.2896

PLN-CHF

3.7

3.4

02.07

5.20

29.06

3.4057 06.07

3.3743

5.35

5.2446

PLN-GBP

5.50

05.07

3.3415 04.07

3.3885

3.3427 03.07

02.07

3.2

29.06

4.2178 06.07

4.2221

3.5

3.3456

PLN-USD

3.8

05.07

4.2046 04.07

4.2613

4.2110 03.07

02.07

4.1

29.06

4.3

4.2308

PLN-EUR

4.50

SPORTS

JULY 9-22, 2012

www.wbj.pl

21

Tennis

Polish soccer

A Polish Wimbledon winner?

Beenhakker criticizes PZPN for focusing on the past

Polish tennis player Agnieszka Radwaƒska made history by beating Germany’s Angelique Kerber 6-3, 6-4 in the Wimbledon semifinals. As a result, the 23-year-old became the first Polish player to reach a Grand Slam final in the open era, and the first Polish Wimbledon finalist since Jadwiga J´drzejowska lost in the 1937 final.

The Polish player won five games in a row to secure the first set against eighth seed Ms

Kerber, after previously being down 3-1. A single break in the second ensured a comfortable victory and Ms Radwaƒska’s first-ever Grand Slam final appearance.

“This is what I’ve been dreaming of since I was a kid,” she said after the match.

Speaking about her semifinal opponent, Ms Radwaƒska said, “I had a tough quarterfinal and it was good to have a day off and rest because it’s always tough against Angie.”

“We are really good friends but on court we’re opponents and you’re trying everything to make the final,” she added.

On the way to the semis Ms Radwaƒska defeated 17th seed Maria Kirilenko 7-5, 4-6, 7-5 in the quarterfinals, to ensure Wimbledon 2012 was guaranteed to provide her best-ever Grand Slam performance regardless of whether she defeated Ms Kerber.

As WBJ went to press the final was still due to be played.

Ms Radwaƒska was set to face four-time Wimbledon winner Serena Williams in what was billed to be the Polish star’s biggest test to date. If she defeated Ms Williams she will have advanced to the top of the WTA rankings. Zofia Ró˝alska

Poland’s former national soccer team coach Leo Beenhakker has criticized the Polish Football Association (PZPN) for living on the glories of the side which reached two World Cup semi-finals in eight years.

“You have plenty of talented players but you do not know how to use them and educate them. These are the consequences of the people running PZPN still being inspired by their successes in 1974 and 1982,” the Dutchman, a former Real Madrid manager, told Polish sports website Sport.pl.

“The most important thing is to change the whole system of training young people, which must be made under the banner of the Polish Football Association, and not left to the clubs. You have a lot of talented kids, let the well-educated, young coaches transmit their knowledge about what modern soccer is,” Mr Beenhakker said.

He added that he was

cheering for Poland during the tournament, but felt Polish coach Franciszek Smuda’s negative tactics in attempting to hold on to a 1-0 lead against Greece cost the team a place in the knockout stages, since Poland went on to draw the game 1-1.

As Poland coach Mr Beenhakker guided the team to their first-ever European Championships in 2008, before they were knocked out in the group stages. Following his failure to help Poland qualify for the World Cup two

COURTESY OF WIKIMEDIA COMMONS

COURTESY OF WIKIMEDIA COMMONS

Agnieszka Radwaƒska

Agnieszka Radwaƒska became the first Pole to reach a Wimbledon final in 75 years

The former national team coach said those who run the country's soccer association are living on the successes of 1974 and 1982

years later, he was sacked as national team head coach.

Mr Beenhakker, who has had significant success as a coach of both club and national sides in an illustrious career, caused controversy during his time as Poland’s manager because of comments he made about PZPN. “Evolution is the process of coming down from the trees,” he said in 2009, adding that until the leaders of PZPN came down from their trees, Polish soccer would never David Ingham evolve.

Leo Beenhakker

Polish soccer

Polish Football Association president Grzegorz Lato has also said he will stand for reelection, despite previously claiming he would resign if Poland failed to advance from its Euro 2012 group Poland’s new national soccer manager was due be named on July 10, following the dismissal of former head coach Franciszek Smuda after he failed to guide his side out of the Euro 2012 group stages.

The board of the Polish Football Association (PZPN) has been meeting to discuss who the new coach should be,

with media speculation suggesting current Ruch Chorzów manager Waldemar Fornalik could be the front runner in the race to succeed Smuda.

Mr Fornalik has yet to lift silverware as a coach but he has vast experience both as an assistant and head coach at various Polish clubs, and last season guided the unfancied Ruch Chorzów to second place in Poland’s top league – the Ekstraklasa.

“They are conducting interviews with candidates, their names will be presented on July 10, and the board will decide who is the best person to take over as team coach,” said PZPN spokesperson Agnieszka Olejkowska.

Ms Olejkowska also confirmed that despite earlier discussions considering former England coach Sven-Goran Eriksson as a potential manager, PZPN’s board had decided to look exclusively for a Polish coach.

U-turn Prior to the naming of the new national team head coach the current president of PZPN, Grzegorz Lato, performed a major U-turn when he announced that he would stand for reelection in October. This was despite the man who was the top scorer at the 1974 World Cup previously saying he would stand down if the Polish national team failed

to qualify for the knockout stages of Euro 2012.

But in a statement on PZPN’s website Mr Lato wrote, “I never said that I would resign, however, I repeatedly stressed that the final decision would be made after the European Championship finals.”

“The championships are now finished, we were very highly evaluated by UEFA president Michel Platini. We can all be proud of the organization of the event in Poland,” he added.

Mr Lato has been criticized during his time in charge for not modernizing PZPN, and for failing to address corruption within the Polish game.

David Ingham

COURTESY OF WIKIMEDIA COMMONS

PZPN set to announce new national team coach

National team coach Franciszek Smuda lost his job following Poland’s disappointing display at Euro 2012

22

LIFESTYLE

www.wbj.pl

Film

JULY 9-22, 2012

Festival

‘Wa∏´sa’ shoot finished Jazzing it up

Robert Wi´ckiewicz as Lech Wa∏´sa

The story of the Solidarity leader was directed by famed Polish film maker Andrzej Wajda The movie version of Lech Wa∏´sa’s fight against Poland’s communist authorities during the 1970s and 1980s (dubbed “Wa∏´sa”) finished filming on June 29 and will now be edited ahead of its release in September 2012.

The film focuses on Mr

Wa∏´sa’s rise from an ordinary shipyard electrician in Gdaƒsk to eventually become the leader of the Solidarity trade union and subsequently, in 1990, the first democratically elected president of Poland.

Oscar-winning filmmaker Andrzej Wajda has directed the biopic, and he quoted Mr Wa∏´sa’s famous presidential slogan, “I don’t want to, but I’ve got no choice,” when asked to explain why he was making the movie. Robert Wi´ckiewicz

and Agnieszka Grochowska star as Lech Wa∏´sa and his wife Danuta Wa∏´sa.

“The film is mainly addressed to young people, at the same time constituting a reminder of an outstanding filmmaker,” a statement on the film’s website reads.

“Sometimes you must fight for freedom, sometimes you must defend it, there are, however, no circumstances which could excuse you from contemplating our freedom.”

David Ingham

The annual Summer Jazz Days Festival will once again welcome international modern jazz stars to Warsaw this year.

Among those set to perform is legendary American jazz musician and pianist Herbie Hancock, who came to prominence playing alongside fellow jazz great Miles Davis and who has since become one of the best-known jazz innovators.

Melody Gardot, a Grammy-nominated American singer-songwriter and musician will also treat audiences, as she plays songs from her new album “The Absence.”

Herbie Hancock

SHUTTERSTOCK

COURTESY OF MARCIN MAKOWSKI/AKSON STUDIO

Warsaw Summer Jazz Days July 8-29 Sala Kongresowa and various locations around Warsaw

Others that are set to grace stages in the capital as part of the festival include Joe Lovato, Dave Douglas, Ambrose Akinmusire, The Bad Plus and Joshua Redman.

Along with the live concerts, various workshops will be held, organized in cooperation with

sister festivals in Rome and the Hague, aimed at young musicians who could be the next generation of world-renowned jazz musicians.

Zofia Ró˝alska

Tickets start from z∏.50 and are available from adamiakjazz.pl

Concert

Return of the ‘Antichrist’ Marilyn Manson July 14, 6 pm Stodo∏a ul. Batorego 10 Warsaw Shock-rocker Marilyn Manson is in town this month to perform what promises to be an entertaining and no doubt controversial show.

Since bursting on to the scene back in 1994 with his eponymous group’s debut album “Portrait of an Ameri-

can Family,” the singer, whose stage name is a juxtaposition of two famous Americans – Marilyn Monroe and Charles Manson – has often been seen as the scourge of middle America for his perceived negative influence on teenagers.

Although the group’s sales and fame have waned since their peak with 1996’s “Antichrist Superstar” they’ve still achieved total album sales of more than 20 million, with

2012 release “Born Villain” their eighth studio recording.

Fans of the group can expect to hear hits such as “The Beautiful People,” “Tourniquet,” and covers including their well-known version of “Sweet Dreams (Are Made of This)” during their Warsaw gig.

David Ingham

For more information log on to stodola.pl

Museums, galleries and venues in Warsaw Centre for Contemporary Art at Ujazdowski Castle ul. Jazdów 2 www.csw.art.pl Czarna Gallery ul. Marsza∏kowska 4 www.czarnagaleria.art.pl Galeria 022, DAP, Lufcik ul. Mazowiecka 11a www.owzpap.pl Galeria 65 ul. Bema 65 www.galeria65.com Galeria Appendix 2 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 www.milano.arts.pl Galeria Schody ul. Nowy Âwiat 39 www.galeriaschody.pl

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

Simonis Gallery ul. Burakowska 9 www.simonisgallery.com

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

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

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

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

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

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

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

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

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

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

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

LAST WORD

JULY 9-22, 2012

www.wbj.pl

23

Tech Eye

A (fairy) tale of two tablets comes with 32/64 GB of storage and an as-yet-unnamed NVIDIA processor; the Pro offers 64/124 GB and has an Ivy Bride Core i5 from Intel.

Both will have 10.6inch ClearType displays, though the Pro version will have full 1080p HD compared to its sibling’s regular HD display. Microsoft isn’t talking release dates yet, though “later this year” is currently the consensus. It’s equally mum on price.

Google, another late-ish entrant to the tablet market (Android operating system aside), is less coy about price – its new Nexus 7, developed with Asus, is being marketed as “the new $199 tablet from Google.”

The Nexus 7 is just now hitting retailers, but it looks likely to be a strong-performing entrant in the budget end of the market. It’s got a seven-inch display, a quad-core Tegra 3 processor and 8/16 GB of internal storage. As expected of a Google device, it’ll run the latest iteration of Android (version 4.1 to be precise)

promised proliferation of Surface computers never happened and it now seems the product name is being recycled.

Two models of the Surface tablet have been announced so far. The first runs Windows RT, the long-awaited tablet OS from Microsoft, while the second and more powerful version has Windows 8 Pro. The RT model

COURTESY OF GOOGLE

COURTESY OF MICROSOFT

The tablet market has a lot in com- Some major schemes are mon with the fairy tale world – for now coming to fruition, every Cinderella, there are at least however.

Microsoft, for examtwo ugly stepsisters.

Apple’s iPad is still princess pre- ple, recently unveiled a eminent in the market, accounting for new tablet brand around 65 percent of new tablets called the Surface. shipped internationally in Q1 2012 The firm is arriving (according to ABI Research). Sam- tragically late to the sung’s Galaxy brand isn’t quite as ball, though, and it fetching – in fantasy terms, you might has a thoroughly call it Snow White with a limp – but it mixed record remains solidly popular. Sales of the on hardseven-inch Kindle Fire, meanwhile, ware. have fizzled since last year; it’s still selling, just nowhere near as well as it was.

If we’re looking at the fairest of them all, that’s pretty much it.

There are a few other interesting The Surface tablets, like the almost-charming IdeaPad from Lenovo and Asus’ dar- Peripherals (mice, keying but not quite dashing Transformer boards) and Xbox hardware have lineup, but the rest of the market is a done well, but there have been mismotley assortment of technological steps a plenty. Zune, PC Phone Syshobgoblins that underwhelms at best. tem MP-900 – we’re looking at you.

Suffice it to say that nobody, with You might also recall having heard the probable exception of Apple, is of a product named Surface as far happy with the status quo. Everyone back as 2007. The Surface of that era seems to have a grand plan to crack was a large touch-screen computer the market, but no one has seen shaped like a table; Microsoft intendunmitigated success since the iPad ed to sell it to hotels and casinos, and essentially created the market in 2010. sundry other industries. But the

The Nexus 7 and it’s Wi-Fi only. If you love 3G connectivity (or 4G, for that matter), look elsewhere.

At the $199 price point, the Nexus 7 will be a strong challenger for the Kindle Fire and both it and the Surface could take business from Apple.

But will either tablet live happily ever after?

It’s too early to pass judgement.

But by Q1 next year we’ll know if either is a Cinderella story or if they will meet a Grimm demise. ●

Ever pretended that your iPad is a pretty, pretty princess? Let us know: techeye.wbj@gmail.com

Warsaw Business Journal’s hugely popular investment guide To order a print copy or digital version of the publication, e-mail kwilinski@valkea.com or call +48 (22) 639 85 67, ext. 208