WBJ #31-32 2012

The EU refuses to fund ‘phantom’ Polish power plants

Low-cost airline OLT Express is grounded 5

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VOLUME 18, NUMBER 31-32 • AUGUST 6-19, 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

The Poland issue

REAL ESTATE COURTESY OF EFFECTIVE PUBLIC RELATIONS

Poland has unexpectedly become a focus of attention in the US presidential campaign 12-13

COURTESY OF TEDO JAPARIDZE

• Manufaktura sold • Residential in focus • Eurocentrum financing

Undemocratic turn A member of the Georgian opposition compares President Mikheil Saakashvili to Vladimir Putin 10

In this issue

SHUTTERSTOCK

News . . . . . . . . . . . . . . . . . . . . . . .2-4 Business . . . . . . . . . . . . . . . . . . . .5-6 Finance & Economics . . . . . . . . . . .7 Interview . . . . . . . . . . . . . . . . . . . .8-9 Region . . . . . . . . . . . . . . . . . . . . . . .10 Opinion & Analysis . . . . . . . . . . . .11 Cover Story . . . . . . . . . . . . . . . .12-13 Lokale Immobilia . . . . . . . . . . .14-17 Innovation in Focus . . . . . . . . . . . .18 The List . . . . . . . . . . . . . . . . . . . . . .19 Markets . . . . . . . . . . . . . . . . . . . . . .20 Sports . . . . . . . . . . . . . . . . . . . . . . .21 Lifestyle . . . . . . . . . . . . . . . . . . . . .22 Last Word . . . . . . . . . . . . . . . . . . . .23

Trouble with travel Corruption’s harvest What’s behind the rash of Polish travel agencies going out of business this year?

3

A new agriculture minister takes office after a scandal, but the specter of nepotism remains

4

NEWS

www.wbj.pl

was the record-low yield Polish five-year bonds achieved on August 1.

17% is the average discount on shares listed on the WSE compared to analysts’ valuations.

z∏.4.1029 was the value of the z∏oty to the euro at one point on July 31, its strongest showing since March.

2.9%

SHUTTERSTOCK

Figures in focus Flying high Growth in number of air passengers carried 2010-2011, selected EU countries, % 38

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Trying to shake off its newly won reputation as Europe’s capital of traffic snarls, Warsaw has just launched its own bike-hire scheme, called Veturilo.

How does it work, and how does it compare to similar schemes in other European cities? Log on to WBJ.pl to find out.

US presidential candidate Governor Mitt Romney, during a speech in Warsaw, on the relationship between Poland and the United States.

Lat via

Do you Veturilo?

“There has never been a moment when our peoples felt anything but mutual respect and good will – and that is not common in history.”

nd

David Ingham

Quote of the Week

nia

sia have suggested that small business, and the agriculture sector in particular, will be negatively affected because imported goods will come cheaper than domestically produced products.

In Poland it is hoped that Russia’s accession will spell good news for food producers, with the move likely to increase Polish meat exports, particularly of poultry, due to the a reduction in import tariffs.

Other countries that are yet to become WTO members include Algeria, Belarus, Bosnia and Herzegovina, Iran, Iraq, Kazakhstan, Libya, Serbia, Sudan, Syria and Uzbekistan.

On WBJ.pl

Source: Eurostat

Company index Africano Travel ............................3 GDF Suez......................................5 PMR ..............................................5 Alba Tour ......................................3 Ghelamco Poland ......................14

Polimex-Mostostal ......................6

Alpine Bau Deutschland..............6 Grupa Capital Park ....................16

DATELINE

August/September

Rainbow Tours doing well Location: Web:

ECONOMIC FORUM

Event:

The Economic Forum in Krynica, Poland, held annually since 1991, is a significant event in Central and Eastern Europe. Its mission is to create a favorable climate for the development of political and economic cooperation between the EU and neighboring countries. Krynica is an important point on the political map of the world where the East meets the West. Every year it is

Alpine Construction Polska ........6 Guidewire ....................................2 PRC Architekci ..........................16

Quirky Incorporated ..................23

Web:

30

34 WARSAW MARATHON

Event:

The annual Warsaw Marathon will raise funds for the Bátor Tábor Polska Foundation, an organization that offers therapeutic camping opportunities to children with chronic diseases in Central and Eastern Europe. Participants are expected to be sponsored by friends, family and colleagues for every kilometer they run. Organized by charity-runner Kompania Wra˝eƒ, the marathon route will travel through Warsaw’s key landmarks, including the Old Town.

Warsaw kompaniawrazen.pl

Location:

Asseco ..........................................2 Hogan Lovells ............................14 Atena ............................................3 Home Broker..............................17 Rainbow Tours ............................2 Bank Gospodarstwa Krajowego ..2 HSBC ......................................7, 14 Rallye..........................................14 Bank Millennium ........................6 Hydrobudowa Polska ..................6 REAS ..........................................17 Bank Pekao ................................16 JEMS Architekci ........................14 Beiten Burkhardt

Jones Lang LaSalle ..................14

Silverstein Properties ................14

P. Daszkowski ............................17 JW Construction Holding ..........14 Sky Club ......................................3 Biedecki......................................16 KGHM ........................................20

Sun & Fun ....................................5

Blue Rays ....................................3 Kulczyk Real Estate Holding ....14

SEPTEMBER 4-6

Polskie Jad∏o..............................12

Apsys ..........................................14 Hochtief Development Poland ..14

attended by over 2,500 guests – the leaders of political, economic and social life and over 500 journalists from around 60 countries from Europe, Asia and America. It is the largest event of its kind in Central and Eastern Europe.

Krynica Zdrój forum-ekonomiczne.pl

10-14 ARABIAN HORSE DAYS 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 honor the Polish Arabian Horse breeding program.

Janów Podlaski prideofpoland.pl

Alpine Bau GmbH ........................6 Grupa Rabobank ........................14

Amber Gold ..............................2, 5 Hammacher Schlemmer ..........23 PZU ..............................................2

AUGUST Event:

Rainbow Tours is bucking the trend that saw several tour operators going bankrupt in July. By the end of 2012, the WSElisted firm hopes to become the second biggest player on the market. “We estimate that our revenues will reach some z∏.570 million this year. This would mean a 35% increase compared to 2011,” CEO Grzegorz Baszczyƒski told Parkiet. ●

ber, but the decision needed to be approved by the country’s parliament and then signed by its president.

Under the agreement, Russia will reduce average import tariffs to 7.8 percent from the current level of 10 percent, as well as open up investment in sectors such as telecommunications. The tariffs will then be reduced to 7.4 percent in 2013, 6.9 percent in 2014 and 6.0 percent in 2015.

According to the World Bank, WTO membership will bring Russian businesses increased exposure to competition, improving their efficiency and increasing the country’s GDP by as much as 11 percent.

However critics within Rus-

Po la

On August 22 Russia will officially become a member of the World Trade Organization (WTO), after President Vladimir Putin signed the country’s accession agreement at the end of last month.

Countries joining the body, which was founded in 1995 and aims to supervise and liberalize international trade, have to agree terms with all existing members and bring their laws into line with WTO rules.

The entry of Russia, the world’s ninth-largest economy with a GDP of roughly $1.9 trillion in 2011, now marks the end of 18 years of negotiations. WTO members had decided to allow Russia to join the grouping back in Decem-

is how much Poland’s GDP will grow in 2012, according to the EBRD, which raised its forecast from an earlier estimate of 2.7%.

ua

Russian President Vladimir Putin signed the legislation at the end of July

Asseco cries foul Poland’s leading IT company Asseco Poland recently lost several major public tenders. It wasn’t chosen to implement its systems in state-owned utility Enea, Bank Gospodarstwa Krajowego and, most recently, in insurer PZU. This amounted to discrimination against Asseco, argued CEO Adam Góral in a letter to PM Donald Tusk, reported Puls Biznesu.

4.361%

ia

Virgin Mobile Central and Eastern Europe (VMCEE) is set to launch in Poland this summer, the first market for the newly formed holding company. “I am excited to launch the Virgin Mobile brand in Poland.

The Polish consumer will benefit from Virgin’s entry into the market; creating competition, providing great customer service, value for money and transparent pricing,” Virgin Mobile owner Richard Branson said in a statement.

Russian membership of the WTO

on

Virgin Mobile launch

Numbers in the News

Lith

As WBJ was going to press, clients were unable to withdraw their deposits from Gdaƒskbased lender Amber Gold. According to its president Marcin Plichta, although the clients' money could not be physically accessed, it was still on technical accounts that could be transfered to other financial institutions for withdrawal. But no Polish financial institution was willing to receive the funds, Mr Plichta told TVP Info. He also accused the Internal Security Agency (ABW) of mounting a campaign against him.

IN THE SPOTLIGHT

Est

Amber Gold in trouble

AUGUST 6-19, 2012

SHUTTERSTOCK

2

Location: Web:

TH

BRE Bank ..................................14 Kulczyk Silverstein Properties ..14

Tauron ..........................................5

BZ WBK ........................................6 Leroy Merlin ..............................14 Telekomunikacja Polska..............5 Calbud ........................................14 Lux Med........................................4

Triada............................................3

Cinema City................................14 Markit ..........................................7 TVN ............................................10 Citi Handlowy ............................20 McDonald’s ................................12 Cushman & Wakefield ..............16 Miller Canfield............................17 UniImmo: Deutschland ............14 EDF ..............................................5 Mint of Poland............................14 Union Investment ......................14 Enea....................................2, 5, 10 Multikasy ......................................5 Union Investment Real Estate ..14 Energa ..........................................5 New Direct ..................................7 Erbud ..........................................16 OLT Express ................................5 Vattenfall ......................................5 Export Credit Insurance

PBG ..............................................6 Virgin Mobile ................................2

Corporation ................................10 Peter Nielsen & Partners ..........6

WNS Holdings..............................4

Fonciere Euris............................14 PGE ........................................5, 10 France Telecom............................5 PKN Orlen ..........................5, 6, 14

X-Trade Brokers DM ..................20

FSO ............................................14 PKO BP ......................................20 Zoku............................................23

NEWS

AUGUST 6-19, 2012

www.wbj.pl

3

Travel industry

In response, the government is setting up a new Tourism Guarantee Fund Elektra Tour joined the ranks of Sky Club, Alba Tour, Africano Travel, Blue Rays and Atena, when it declared bankruptcy at the end of July, signaling the end of a tough month for the Polish travel industry.

The Wa∏brzych-based tour operator, which specializes in bus tours to Greece, filed its declaration of insolvency on July 30, and became the sixth Polish firm to go out of business that month, a wave of busts that left thousands of Polish tourists stranded abroad.

Travel agency Sky Club, which also operates under the name Triada, was the first firm to go under on July 3. At the time some 4,800 clients were left stranded abroad.

firm’s clients were still on holiday in the Czech Republic and in Venice, Italy.

“Due to the insolvency of six travel agencies in July, the Ministry of Sport and Tourism is currently cooperating with the agencies to set up a Tourism Guarantee Fund (Turystyczny Fundusz Gwarancyjny) that should come into play no later than September,” ministry spokesperson Katarzyna Kochaniak told WBJ. “The fund will be derived from travel agencies who will be obligated to pay into it,” she added.

Ms Kochaniak confirmed that most of the bankruptcies were caused by the difficult environment in the market, although in the case of Blue Rays the company’s economic ties with Alba Tour were the key factor behind its decision to go out of business, Zofia Ró˝alska she said.

Luckily for them Mazowsze Marshall’s Office held a guaranteed fund of z∏.25 million to cover the costs of returning Sky Club’s customers home.

This was followed by the bankruptcy of Alba Tour, while Poznan’s Africano Travel was the next to fall in mid-July. Africano’s insurance enabled it to bring some 160 clients back to Poland.

Blue Rays then went out of business, leaving 414 of customers stranded in Egypt.

The total cost of bringing back Polish tourists amounted to some z∏.420,000.

“Our problems began about two weeks ago, when Alba Tour travel agency, with which we worked, went bankrupt. … We have lost financial liquidity,” Blue Rays president Daniel Lubaszka told PAP at the time.

Atena travel then followed suit while 52 of the

SHUTTERSTOCK

July sees six travel firms go bust

With the rash of travel firms that went out of business in July, not all Poles were so lucky

Mitt Romney visit

Poland visit provides (almost) ideal end for Romney foreign tour

COURTESY OF MAGDALENA PAWLUCZUK

An incident with journalists tarnished the US presidential candidate’s stay in Poland, adding to the negative media attention he received in the UK and Israel

Mr Romney gave high praise to Poland, but his stay in the country was also marked by controversy

Republican US presidential candidate Mitt Romney wrapped up his much-publicized foreign tour in Warsaw on July 31 with high praise for Poland and an unfortunate incident involving a member of his staff and journalists.

At the Warsaw University Library, in front of journalists, officials and students, Mr Romney spoke in glowing terms about Poland and its commitment to political and economic freedom.

He praised Poles’ capacity to hold on to the value of freedom through dark times – both political, throughout its difficult history, and economic, from the beginnings of its transformation to a free-market economy over 20 years ago to the current financial

crisis.

Underlining Poland’s positive economic performance, Mr Romney advised those searching for a solution to the current recession to “look to Poland,” which “empowered the individual, lifted the heavy hand of government, and became the fastest-growing economy in all of Europe.”

Mr Romney also focused on Poland’s history of fighting oppression. The presidential hopeful linked Solidarity and John Paul II’s role in fighting communism to that of Rosa Parks in the Civil Rights movement and that of Tunisian street vendor Mohamed Bouazizi in sparking the Arab Spring.

Before the speech, Mr Romney had met with Polish

leaders in Gdaƒsk and Warsaw, as well as with former Solidarity head Lech Wa∏´sa, who wished him “success.”

Almost perfect The Polish leg could therefore have been considered a success for the Republican candidate, who had made controversial statements while visiting London and Jerusalem.

But comments from his aide, Rick Gorka, directed at journalists and caught on camera, ensured that controversy followed Mr Romney in Poland as well.

The journalists – from outlets including CNN, The New York Times and The Washington Post – were shouting questions at Mr Romney following his visit to the Tomb of the Unknown Soldier in Warsaw, where he laid a wreath. Mr Romney refused to answer the questions and as the journalists

became more adamant, Mr Gorka answered, “Shove it.”

“Kiss my ass, this is a holy site for the Polish people,” he added. “Show some respect.”

Mr Gorka called reporters to apologize a short time later.

In the previous leg of his six-day foreign tour, which took him to the UK and Israel, it was Mr Romney himself who made comments that attracted headlines and negative reactions from local officials.

In London, the British press excoriated Mr Romney for questioning the city’s readiness to host the Olympics. In Israel, Mr Romney said cultural differences were behind that country’s economic success relative to that of the Palestinians, angering many who believe that Israeli sanctions play no small part in hampering the Palestinians’ economy.

Alice Trudelle

NEWS

www.wbj.pl

Lux Med up for grabs?

Poland’s largest private health-care network, Lux Med, will be put up for sale by its owner, private equity fund Mid Europa Partners, in the fall, reported Dziennik Gazeta Prawna, citing unnamed people close to the deal.

Lux Med ended 2011 with nearly z∏.700 million in revenue. The firm’s price tag could be around z∏.800 million to z∏.900 million, according to the daily. Research firm PMR estimates that the Polish market for private health care was worth z∏.30.8 billion in 2011, and could grow at a yearly rate of around 5% in upcoming years.

India’s WNS comes to Gdynia WNS Holdings, a world leader in the Business Process Outsourcing (BPO) sector, plans to open a new center in Gdynia. The Polish division will mainly serve clients from Germany, Russia and Scandinavia, reported Puls Biznesu. It will be the Indian company’s third office in Europe. ●

AUGUST 6-19, 2012

Corruption in government

New agriculture minister appointed in wake of corruption scandal The prime minister has appointed a new agriculture minister after accusations of corruption forced his predecessor to resign Prime Minister Donald Tusk appointed Stanis∏aw Kalemba as the new minister of agriculture on July 27. In the same breath, the PM also added that a rapid audit of all companies, agencies and institutions managed by the government would be conducted, and pledged to present legislative proposals to “curb the phenomenon of nepotism,” in the fall.

“I am convinced that nepotism is quite prevalent in our country,” said Prime Minister Tusk. “It is not restricted to one party or one branch. It is high time that we collectively tried to build legal rules which at least drastically reduce these negative phenomena.”

Mr Kalemba’s nomination came after Marek Sawicki, his predecessor, was forced to step down after a video recording was released that showed two of Mr Sawicki’s

close associates discussing corrupt practices within the Ministry.

In the recording W∏adys∏aw ¸ukasik, a former head of the Agriculture Market Agency (ARR), which operates under the aegis of the Agriculture Ministry, discussed improper activities involving people in the agency, including possible embezzlement by people at state companies, irregularities in the management of financing for agricultural projects and pressure to employ certain individuals in various agricultural agencies.

Mr Sawicki denied any wrongdoing, but handed in his resignation on July 18.

Tough choice Mr Kalemba was nominated

by Deputy Prime Minister Waldemar Pawlak, who is also economy minister and head of the junior coalition party, the Polish People’s Party (PSL).

This laid to rest speculation that Mr Tusk might “take” the Agriculture Ministry from PSL and appoint a minister from his party, a scenario which would have caused serious

strain in the coalition.

But Mr Kalemba’s appointment was criticized by some of his colleagues in the coalition, who have voiced doubts as to whether the new minister will be willing to carry out muchneeded reforms, such as that of the Agricultural Social Insurance Fund (KRUS), a social insurance system offered to people who are registered as farmers and their families.

Mr Kalemba has also been criticized for his euroskeptic stance, deemed inappropriate in the context of ongoing negotiations over the Common Agricultural Policy in the next EU budget for 20142020.

Upon appointing him, the PM said that if Mr Kalemba does not “fit into the team he will lose his job by Christmas Eve.” However, the appointment is already giving the prime minister a political headache.

Asked at a press conference whether it wasn’t a conflict of interest that Daniel Kalemba, the son of the new agriculture minister who cur-

COURTESY OF PSL

4

Mr Kalemba has until Christmas Eve to prove himself as head of the Agriculture Ministry rently works in the ARR, would now, at least indirectly, be an employee of his father, the PM replied that the problem would be sorted out. The implication was that Daniel Kalemba would resign.

But Daniel Kalemba later

made it clear that he has no such intention.

“Why should I resign? … I have worked here for 10 years and what I have, I worked hard to earn,” he told journalRemi Adekoya, ists.

Alice Trudelle

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BUSINESS

AUGUST 6-19, 2012

Airlines

www.wbj.pl

5

Telecoms

OLT Express grounded TP to cut costs and jobs flight for our clients was at approximately 5 am. Customers were already on their way to airports in Warsaw and Katowice,” Sun & Fun president Samir Hamouda told Polish news agency PAP. In a statement on its website OLT Express wrote “From 31 July this year OLT Express Poland chartered international flights are suspended.”

The cancellations were the culmination of a rapidly deteriorating situation for the carrier which only began operating in April 2011.

Last month OLT suspended 14 connections and reduced the number of tickets available for z∏.99, in order to increase

COURTESY OF WIKIMEDIA COMMONS

Polish low-cost airline OLT Express canceled its chartered connections on July 31, just hours before 360 customers were due to fly to Egypt.

Travel agency Sun & Fun had booked flights for customers on two OLT Express flights but were informed just hours before the first flight was due to take off that it would not take place.

“At about 2:30 at night we got a phone call [to say] that OLT Express Poland had suspended flights. Tuesday’s first

OLT Express has filed for bankruptcy

profitability and find an investor following confirmation that major investor Amber Gold was unable to continue to provide backing.

Then, on July 27, an announcement on OLT’s website confirmed that the firm was going out of business.

“We regret to inform you that today OLT Express Regional will declare insolvency. At the same time on July 27th 2012 the Bureau of Civil Aviation suspended the OLT Express Regional company’s license for air transport,” the statement read.

However, the airline had said prior to the most recent cancellations that all chartered flights would be honored.

Questions have since been raised about Marcin Plichta, the president of OLT’s backers Amber Gold, who was previously declared bankrupt and was also convicted of embezzling z∏.174,000 from customers of his former business Multikasy. Following his conviction, which resulted in a 10-month suspended sentence, he changed his name from Stefaƒski to Plichta.

David Ingham

Energy sector

EU refuses emissions permits for ‘ghost’ Polish power plants

Following a ruling by the European Commission in mid-July, a total of 36 energy projects, including new coalfired and gas-fired power plants, will be denied free CO2 emission permits.

They include PKN Orlen’s planned 450-600 megawatt (MW) gas-fired power plant in P∏ock, as well as new power blocks at coal-fired plants belonging to PGE (Opole), Enea (Kozienice) and Energa (Ostro∏´ka). Projects by Poland’s Tauron, France’s EDF and GDF Suez, as well as Vattenfall, are also affected by the ruling.

In its judgment, the European Commission gave a green light for Poland to provide its power firms with free carbon allowances after the next phase of the EU’s Emissions Trading Scheme starts in 2013. However, the EU’s executive arm also argued that several projects submitted by Poland were not eligible to benefit from these exemptions

SHUTTERSTOCK

Over 30 planned energy projects from major Polish and foreign firms will not benefit from free CO2 allowances after 2013

Industry players have mixed reactions when it comes to the potential effects of the EU’s decision because they have not yet been constructed and therefore do not qualify for the allowance.

Due to highly fluctuating prices for carbon permits, it is difficult to estimate the total value of what was gained and lost in this judgment. A July Reuters poll of analysts put EU carbon permits prices at an average of €11.46 over the 2013-2020 period, meaning free emissions granted to Poland in the period would be worth €4.6 billion.

Orlen argues that the commission’s refusal to back projects aimed at increasing the share of gas in the firm’s overall fuel consumption “threatens to negatively

affect competition in the market. [Such] decisions also have an adverse impact on the economics of projects carried out by our company,” the firm’s press office said in a statement.

But Bogdan Janicki, a senior adviser at lobby group Central Europe Energy Partners (CEEP), which represents 11 energy companies from Central and Eastern Europe, downplayed the importance of the decision saying that in the best conditions, the new power plants would be up and running no earlier than in 20182019, which corresponds to the end of the derogation period.

Alice Trudelle

after profit slump The telecoms firm will slash over 1,000 jobs as competition tightens and fixedline use continues to fall Poland’s largest telecommunications operator, Telekomunikacja Polska, reported a lower-than-expected profit of z∏.255 million for the second quarter of 2012, down from z∏.955 million in the same period of last year.

Domestic price wars coupled with greater regulatory pressures in European telecommunications markets have put down-side pressure on profits for mobile operators.

“The revenue decline … was mainly a result of a further decrease in the number of fixed lines due to fixed-tomobile substitution and customer price sensitivity,” said Pawe∏ Olszynka, a telecommunications analyst at consultancy PMR. “The mobile voice market is in a saturation phase and remains under pressure from mobile termination rate cuts.”

TP is additionally being affected by a reduction in fees

SHUTTERSTOCK

The low-cost carrier has stopped all flights and filed for bankruptcy

The company was affected by weaker mobile revenues that it can charge other operators for contacting its mobile users.

As a result of the worsethan-expected Q2 results, three times more employees are likely to face layoffs than in the first half of this year. In total, TP plans to slash 1,100 jobs in H2 of this year, the company said in a statement.

Furthermore, the company said it would continue trimming its costs, particularly within marketing and sponsorship.

“We observe growing pressure of the commercial activity on our margins,” said TP’s chief financial officer, Jacques de Galzain. “This is

why we will take additional measures in H2 to step up the efforts to control our cost base, as we remain focused as ever on efficiency.”

“Roaming did not explode during the Euro [2012 soccer tournament] and we saw no great changes to our earlier plans for the first half,” TP chief executive Maciej Witucki said in a conference call, Reuters reported.

TP, a former communist monopoly now controlled by France Telecom, has recently been rebranded as Orange and carried out an extensive marketing campaign during the Euro 2012 tournament.

Anthony Adams

6

BUSINESS

www.wbj.pl

National Stadium

AUGUST 6-19, 2012

Oil & gas

Subcontractors lose out Orlen posts net loss in Q2 on National Stadium cent of what they owe over the next four to five years.

“Subcontractors will lose 20-40 percent of the payments they are due, not to mention their current losses,” said Mr Âladowski.

The National Sports Centre, which was tasked with the preparations and management of the stadium, complained about delays in the construction last year. Although a program to make up for lost time was agreed upon, it was never realized and further delays occurred. The stadium was originally supposed to be completed in May 2011. It was finally handed over for use in December 2011, but not fully approved for use until FebruZofia Ró˝alska ary 2012.

COURTESY OF WIKIMEDIA COMMONS

Sports Minister Joanna Mucha is demanding that the consortium of companies that built the National Stadium compensate subcontractors for delays in payment and the government for delays in the stadium’s delivery. The consortium included Hydrobudowa Polska, PBG, Alpine Bau Deutschland, Alpine Bau GmbH and Alpine Construction Polska.

Subcontractors incurred huge losses in the construction of the stadium as a result of the consortium’s delayed pay-

ments, but were legally not allowed to discontinue work.

“The contract was completed in such way that the subcontractors could not refuse to continue working, despite the lack of payments,” Zbigniew Âladowski, technical director at Zielona Architektura, a subcontractor in charge of building the stadiums’ soccer field, told WBJ. Subcontractors have not been paid since January, Mr Âladowski said.

As a result of the delays, the entire subcontractors’ market was weakened and subcontractors found it difficult to obtain financing from banks, Mr Âladowski said.

Minister Mucha’s proposal calls for the consortium to pay subcontractors around 80 per-

Subcontractors incurred huge loses during the construction of Warsaw’s National Stadium

Legal News

Liability of clearing house for settlement of transaction Amended provisions to the Act on Financial Instruments Trading and the Act on Public Offering and Conditions Governing the Introduction of Financial Instruments came into force on August 4.

The amended provisions introduce the mechanism of so-called “novation” to the Polish legal system. Novation applies to the procedure of settling transactions concluded on the financial market and it means that in the case of a clearing house accepting a transaction for settlement, it enters the rights and obligations of the original parties to the transaction.

Introduction of the mechanism means that the clearing house becomes an entity directly liable for the settlement of a transaction.

Higher annual collection limits for waste electrical equipment The EU Directive on waste electrical and electronic equipment comes into force on August 13. One of the goals of the directive is to limit administrative burdens

Poland’s top refiner PKN Orlen posted a net loss of z∏.39.6 million in Q2 2012, down from a net profit of z∏.917.6 million in Q2 2011, the company’s consolidated financial results showed.

Although revenue was up to z∏.27.95 billion from z∏.25.64 billion a year earlier, lower fuel consumption and a onemonth maintenance shutdown at the firm’s Mazeikiai plant in Lithuania eroded the refining segment’s performance in the second quarter, the firm wrote in a statement.

As a result of slower GDP growth and inflation, fuel consumption was down in all of the firm’s markets in Q2, including an 8 percent y/y drop in Poland.

“On the one hand, the drop in oil prices came as a relief after many months of pressure on margins, but on the other hand, it compounded the effect of oil inventory revaluation on

through facilitation of both the registration procedure and reporting, as well as through avoidance of charging registration fees twice in different member states.

Moreover, the directive stipulates annual collection limits for waste electrical and electronic equipment from private households. From January 1, 2016 the minimum annual collection level will be 45 percent of the average weight of electrical and electronic equipment placed on the market (it currently stands at 35 percent), and from 2019 the percentage will rise to 65 percent.

Member states have to implement the provisions of the directive by February 14, 2014.

Second-quarter financial results released so far by Polish banks suggest the sector is holding up well in the face of the growing economic gloom.

Bank Zachodni WBK’s Q2 net profit rose 2.6 percent year-on-year to z∏.380.4 million as net interest income jumped 13.7 percent. The net result was significantly higher than analysts had expected.

The bank’s success can partially be attributed to the fact that it managed to lower operational costs.

Meanwhile Bank Millennium reported a net profit of

BROUGHT TO YOU BY PETER NIELSEN & PARTNERS LAW OFFICE

our performance,” Orlen CFO S∏awomir J´drzejczyk said in a statement. “Despite such irregularities, our liquidity position remains healthy and all the financial ratios are maintained at safe levels, allowing us to pursue growth-oriented projects,” he added.

Among the state-controlled firm’s investment projects in 2012 is the search for shale gas in Poland. Orlen plans to invest z∏.300 million in shale gas exploration and to drill between five and seven exploration wells this year.

Orlen is also exploring for conventional natural gas and crude oil in Latvia and Poland,

and has two gas-fired power plant projects under way.

The firm’s chief executive Jacek Krawiec also said that Orlen is keeping an eye on the Czech, German and Polish markets for acquisitions as part of its retail strategy.

Among takeover targets could be Finnish Neste’s network of around 100 self-service gas stations in Poland, said Mr Krawiec.

The refiner saw a 2 percent yearly increase in retail sales in Q2, which amounted to z∏.9.8 billion. Sales in the refining segment amounted to z∏.21.4 billion in the same period.

Alice Trudelle

Q2 results point to resilience of Poland’s banking sector

Contact: Miros∏aw Stefanik ms@pnplaw.pl

On August 11 the provisions regulating issuance of passports for juveniles is due to come into force. The change to the Act on Passports implements a rule that a juvenile person under the age of 13 shall receive a passport for 5 years. The change also abolishes earlier restrictions imposed on families traveling with small children. ●

Orlen’s Q2 loss amounted to z∏.39.6 million

Banking

Bank Millennium and BZ WBK both revealed high net profits for the second quarter

Passports for Juveniles for 5 Years

COURTESY OF ORLEN

Poland’s sports minister wants compensation for subcontractors and the state

A one-month maintenance shutdown at the firm’s Lithuanian unit and lower fuel consumption hit the giant’s profits

z∏.111.1 million for Q2, down from z∏.115.3 million a year earlier, as solvency problems in the construction sector weighed on its earnings.

The result was nevertheless much higher than the z∏.87.7 million analysts polled by Bloomberg had expected.

A number of Polish builders, including PBG and Polimex-Mostostal, overextended themselves as they sought to cash in on the Euro 2012 building boom, leaving them with large financial problems. Construction firms comprised 17.7 percent of Millennium’s corporate credit portfolio in June, the lender said in a statement.

Despite its exposure, the bank expects to report an

improved profit for 2012, CEO Bogus∏aw Kott told reporters.

Polish banks in general are in good shape at the moment, but would require fresh capital if the economic crisis in the euro zone were to deepen, the National Bank of Poland said in a report released in early July.

“The ability of banks to absorb any potential losses remains high and the financial system is stable,” the NBP said.

“Nevertheless, the economic outlook over the forecast period has deteriorated and uncertainty as to the development of the economic situation abroad is high.”

Gareth Price

Building exposure Millennium's credit portfolio split by sectors (gross), in % 1.9% 4.0% 7.1% 24.0% 11.4%

13.7%

20.2%

Wholesale & retail trade

Transport

Manufacturing

Public sector

Building

Financial services

Other services

Other sectors

17.7% Source: Bank Millennium

FINANCE & ECONOMICS

AUGUST 6-19, 2012

Manufacturing

index, despite the fact that it still remains in contraction territory, is a positive following a month of activity data releases all surprising on the downside,” said Agata Urbaƒska, economist, Central & Eastern Europe at HSBC. Nevertheless, her assessment was guarded. “With slowing activity data, we remain cautious to read positively into this. … Worsening PMI indicators in the euro zone in July still point to downside risk.”

Andrew Kureth

On its way back up?

Poland’s five-year bond yields reached 4.361 percent on August 1, their lowest in history, according to the Finance Ministry . The record-cheap borrowing led the government to sell z∏.4.4 billion worth of bonds against the planned z∏.4 billion. Demand reached as high as z∏.7 billion, the

ministry said on its website.

Polish bonds have proven popular this year, as the country pledges to bring its deficit below 3 percent of GDP while analysts expect it to be one of the fastestgrowing economies in Europe.

The auction brought the government closer to meeting

all of its borrowing needs for this year. Finance Ministry representatives say that Poland has met 90 percent of its borrowing needs for the year, and will meet all of its needs by September. The government plans to begin borrowing for next year in AK Q4.

EBRD raises its forecast for Poland’s economic growth The European Bank for Reconstruction and Development (EBRD) has increased its 2012 GDP growth projections for Poland to 2.9 percent (from a previous forecast of 2.7 percent), citing healthy domestic demand.

This is still significantly lower than the 4.3 percent growth rate Poland achieved last year.

However, the EBRD lowered its growth forecast for the Polish economy next year, from an earlier estimate of 2.9 per-

cent to 2.4 percent. The EBRD’s report noted that both Poland and neighbor Slovakia were bright spots on a European map littered with countries struggling due to economAK ic woes.

Poland's manufacturing PMI reading, July 2011-July 2012 55

Z∏oty strengthens against euro Source: HSBC, Markit

*a reading above 50 indicates an improvement in the business environment, a reading below 50 indicates a decline

50

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Poland’s Purchasing Managers’ Index (PMI) reading for the manufacturing sector reached 49.7 in July, indicating a small overall drop in the business climate in the country’s manufacturing sector, but an improvement on June’s reading of 48.

Nevertheless, the reading was the fourth straight that indicated a negative business environment, with a reading below 50.

In a statement accompanying the report on the findings, HSBC and Markit, who conduct the survey each month, said that the figures indicate a “near-stabilization” of business conditions facing Polish manufacturers.

“The sustained fall in new orders resulted in another drop in output in July,” the report

said. “That said, the rate of contraction eased to a marginal pace. The completion of outstanding contracts continued to support production during the month, as backlogs declined at the second-fastest rate in over three years.”

One important bright spot was manufacturing employment, which increased in July.

The sector created jobs for the fourth consecutive month, and at the fastest pace since February 2011.

“The recovery of the PMI

7

Poland’s five-year bond yields hit record low

July PMI reading offers positive signs The business climate worsened for manufacturers, but only slightly – and hiring is picking up

www.wbj.pl

On July 31 the z∏oty was the strongest it had been against the euro since March, when it reached 4.1029. This also marked the fifth consecutive day of rises for the z∏oty.

Analysts said the strength

came as traders expected the European Central Bank to take strong steps to stimulate Central Europe’s economy this week.

ECB president Mario Draghi said last month that the bank would “do whatever it

takes” to preserve the euro, suggesting policy makers may intervene in bond markets to support ailing euro-area economies. The euro area is Poland’s biggest trading partAK ner.

Precious metals

Golden option Your firm completely reviewed its business plan in 2011 to establish a multi-platform financial advisory. In which sectors is your company most active?

Krzystof Sadecki: New Direct is most active in credit, real estate, insurance, cost-optimization, investment and the precious metals sectors. Around 35 percent of our operations are related to gold.

Why are you advising Poles to invest in gold in this period of economic uncertainty in Europe?

Used as a store of value for at least 5,000 years, gold has been called a “barometer of fear.”

When people are anxious about the economy, they turn to gold and bid the price up. The two main things that make people anxious are deflation and inflation. Gold has the remarkable

ability to store value in both deflationary and inflationary times.

Thus we encourage clients to think about buying gold as insurance. Unlike company shares or government bonds, the value of gold is virtually independent of economic conditions. Especially important is the insurance that gold provides against currency crises.

“Unlike company shares or government bonds, the value of gold is virtually independent of economic conditions” Is the return high on such investments?

Investors should not think of gold as a way to make money. It is better to buy gold in small amounts regularly over a given period of time.

But gold and silver are up 32 percent and 41-50 percent respectively since 2011, so I

would definitely say that our company and the market see growth opportunities in the gold sector.

How does one invest in precious metals?

The percentage of total income that should be devoted to gold is a personal decision, but generally 10 percent is the accepted level.

We must bear in mind that in times of economic uncertainty the proportion of income spent on gold should increase.

“Now that the currency and banking systems are up in the air, gold is a safe-haven”

Is the Polish financial advisory market a competitive one?

The Polish market for financial advisory started expanding in 2004. There are a few other companies that we compete with, but only within specific sectors. Our services are trustworthy. When it concerns investments in precious metals, our clients can be guaranteed with immediate tangible evidence of the investment. New

Direct has about 20 percent of the market for gold investments in Poland, so we are doing quite well.

How is the current economic uncertainty affecting your business?

We are definitely seeing a surge in customers wanting to invest their assets into commodities which are relatively stable. Now that the currency and banking systems are up in the air, people are looking to find more security for their money. Gold is one of

SHUTTERSTOCK

WBJ speaks to Krzysztof Sadecki, president of New Direct, a new financial advisory firm that is advising its clients to turn to gold

those safe-havens. Given the growth in value among this precious metal and its stability, I would say that’s a wise choice. ●

NEW DIRECT Established: 2008 Re-branded: 2011 Operations: Poland, United Kingdom Number of clients: Over 10,000 Sectors: Credit, cost-optimization, investment, insurance, precious metals sectors, real estate Source: New Direct

8

INTERVIEW

www.wbj.pl

AUGUST 6-19, 2012

Polish-US relations

A one-sided relationship?

Ewa Boniecka: The Court of Human Rights in Strasbourg has recently asked the Polish government to provide information regarding allegations that terrorism suspects were held in secret CIA prisons on Polish territory. How do you see the situation?

Longin Pastusiak: The Polish government has never refused to cooperate with the Court of Human Rights in Strasbourg, but this matter is of a different character, because it concerns a classified Polish-American agreement. So one should expect that the Polish government will not deliver it.

Nevertheless it is true that the Americans are washing their hands of this situation, because the matter is embarrassing for the United States.

Fundamental human rights were probably violated in [socalled “black sites”] in Poland.

[Suspected] terrorists kept there were, according to their claims, subjected to torture.

The methods in question are forbidden in the US and illegal according to the American constitution. So the CIA used Polish territory to conduct the fight against terrorism and now will not release any documents related to this.

Yet the issue [of CIA black sites in Poland and in Europe ] is well-known in the US. The American media were the first to expose it and it is now the subject of an investigation by the EU Parliament. So it is a problem, but I do not think that it should affect PolishAmerican relations because so

far Polish authorities are showing discretion in this matter.

The American Ambassador in Poland Lee Feinstein was recently called back to Washington and will be replaced by Stephen Mull. There were suggestions in the Polish media that this decision could be linked with the unfortunate incident involving President Obama who mistakenly referred to “Polish death camps” during a ceremony posthumously honoring Jan Karski. What is your view?

The recall to Washington of Ambassador Lee Feinsten after his three years of service in Poland is nothing unusual. It is a common period of service for many American ambassadors, and I do not think that the mistake made by President Obama had any influence on it.

The speech President Obama delivered was prepared by his staff at the White House and the unfortunate remarks it comprised are the mistake of the staff, not of the president himself.

I also think that Stephen Mull is a very good candidate to be the next American Ambassador to Poland. He is an experienced diplomat who specializes in security matters.

I remember him from the years he served as a US embassy staff in Poland and I had very good contacts with him. He knows Poland and Poles well, so I think that his nomination could have a positive impact on the activity of

the American embassy in Poland.

Some Polish commentators claim that Polish-American relations have deteriorated recently and that Poles now look to the US with less enthusiasm and sentimentality than they used to. Do you share these views?

I do not share some Polish commentators’ claims that our mutual relations are not as good as they used to be. In my opinion Polish-American relations remain steady, they are very close and are not affected by any serious issues.

Nevertheless I see a certain evolution in the character of our relations, meaning that economic matters are playing a more important role. For years I was writing about the American myth in Poland, this mixture of fascination and ignorance about American realities. I understand this fascination because the United States is a fascinating country.

But I am glad that Poles are now more inclined to take a more realistic look at American politics and our place in American foreign policy.

The US treats Poland as an important ally, but we have never been and never will be the center of their attention.

The US has many allies, and so our expectations that because we gave America

COURTESY OF LONGIN PASTUSIAK

Professor Longin Pastusiak, a specialist on American affairs, former speaker of the Senate and director of the Institute of Social Affairs and International Relations at the Academy of Finance in Warsaw, talks to WBJ about PolishAmerican cooperation, the economic crisis and its impact on the American presidential campaign

Longin Pastusiak believes Polish-American relations remain strong ety’s views of America and American policy is positive and will contribute to the good development of our mutual relations.

US policy seems to be generally evolving towards a greater focus on the Pacific region and Asia and less on Europe, and therefore Poland. What

“We have never been and never will be the center of American attention.”

Kosciuszko and Pu∏awski and took part in the operations in Iraq and Afghanistan, we should be treated in a special way, is unrealistic.

So I think that the present realistic evolution in our soci-

could be the lasting consequences of this trend?

It is true that the US is increasingly focusing its attention on the Pacific region and Asia.

China is getting particular

attention in the light of the Chinese economic expansion and its evolution towards big power status. American strategists want to strengthen their country’s interests in that region and also see some possible threats coming from China.

Yet I want to underline that American political and economic interests in Europe and NATO is the basis of American and European security.

American soldiers are still based in Europe, where there are currently close to 80,000 troops. American-European ties are as strong as ever, being based on common democratic values and mutual interests in a global world.

Security issues were and remain an important factor in relations between Europe and

the US, and also in PolishAmerican bilateral relations.

Do you believe that the building of a NATO missile defense system and the arrival of an American military contingent in Poland will materialize regardless of who is elected as US president in November?

Changes introduced by President Obama in 2009 to the previous concept of building a missile defense system in Europe, which aimed to make the system a part of the whole NATO strategy, were well received in Europe and have now been realized. I believe that as a joint American and European project it will be built regardless of who is the next US president.

The same applies to the realization of the Polish-American agreement of setting up an American base in Poland. I

INTERVIEW

AUGUST 6-19, 2012

see it as having a mostly symbolic character, while the whole missile defense system will stay within NATO. The economy is obviously shaping up to be a decisive issue in the American presidential campaign. How is the global economic crisis affecting the campaigns of the Democratic and Republican candidates?

Certainly the economy will be a dominant issue, and it is not President Obama’s best card, because the economic situation in the US is still very difficult.

Certain progress was made in fighting the crisis. Unemployment was reduced from over 10 percent to 8.3 percent, economic growth is at 2 percent, but in the opinion of Americans, President Obama is not doing enough. According to the latest New York Times/CBS polls, this is reflected in a drop in Mr Obama’s popularity. This increases the chances of his rival, Republican Mitt Romney, although the personal popularity of Mr Obama is still higher than that of Mr Romney.

American society is deeply polarized about how to fight financial and economic crises.

Is this reflected in ideological divisions between Mr Obama and Mr Romney?

The deepest ideological divisions were seen during the 2008 campaign, at the peak of the financial crisis in the US. At that time Mr Obama created great hope with his promise of change. According to one of the public polling institutes in Florida, President Obama made 516 promises which he has not fulfilled, so his argument now is that he needs to win a second term to continue implementing these changes.

He is still seen as being closer to the average American than Mr Romney, who is part of the financial elite.

President Obama visited Poland about a year ago, and this July Mitt Romney came here. Does this show that Poland and the Polish population in the US are somewhat important for both candidates, and could play a role in the outcome of the US election?

In my opinion relations with Poland will not play a significant role in the American

presidential campaign and the Polish population in the US is divided in their voting. I must say that it plays a limited role in the American political system at all levels, and there are very few congressmen of Polish descent. The Polish population in the US is poorly organized in comparison with other ethnic groups, and does not form an electoral block. In previous elections the younger generation of Polish Americans voted for Democrats, the older one for Republicans. In my view Polish-American relations will not be affected by who takes office in the White House as of January 20 next year.

In spite of the billions pumped in to the US economy by the Fed the country does not seem to be able to overcome a series of financial crises which began in 2007.

Does this spell the end of the American Dream?

I think that in spite of present crises ... the American Dream is deeply rooted in the American mentality and so optimism that crises can be overcome remains. America has great assets. It is the most powerful and the most innovative economy in the world, it has a leading role in science, with 75 percent of the Nobel laureates in science working and living in the US. It also offers opportunities for moving up the social ladder, including for immigrants, meaning that millions of people still want to emigrate to the US. Mr Obama’s promise to include Poland in the Visa Waiver Program, so that Poles traveling to America can do so without a visa, will clearly not be delivered by the end of this term. This causes a lot of frustration in Poland, and is reflected in our society’s attitude towards the US. How do you view the situation?

It is an important issue for Poles and I was the first politician who turned to the vice president of the US, during my time as speaker of the Senate, with the motion to include Poles in the Visa Waiver Program. At that time I was even attacked by some Polish politicians who said such a motion could lead to the worsening of our mutual relations. It was 10 years ago and the problem is still not resolved.

But a certain progress in

that matter has been achieved.

The percentage of visa applications that are denied to Poles was then 36 percent, now it is about 10 percent. But American law states that only when that percentage drops to 3 percent will Poland be automatically included in the program.

So it is in our interest to fulfill that condition.

Warsaw hosted the PolishAmerican Economic Forum at the end of June, and figures discussed there confirmed that our mutual economic relations are still very weak. What are the reasons behind this and how can it be changed?

America’s biggest trade turnover is with the members of the European Union, and the US has huge investments in Western Europe. But let’s remember that the US economic presence in Western Europe began after World War II with the Marshall Plan, while economic relations between the US and Central and Eastern Europe began to develop over the last 20 years.

In the last year our mutual trade turnover reached the value of $7.6 billion, with Polish exports at $3.2 billion, and imports at $4.4 billion, so Poland has a deficit in the mutual trade.

The participation of Poland in the overall American foreign trade is very tiny, at 0.2 percent. Meanwhile American participation in our foreign trade is 2 percent. The United States is in sixth place among foreign investors in Poland, which represents a value of $20 billion, while there are 750 American companies in Poland employing around 400,000 people. So the economic cooperation is much below possibilities.

Americans value the fact that Poland has well-qualified people, they see Poland as a predictable country with a stable economy and a favorable geographic location for business. But American firms complain about our poor road and train infrastructure, administrative obstacles and opaque tax system. Nonetheless, the perspectives for developing our economic relations are promising. ● Mr Pastusiak’s most recent book is “The Ladies of the White House,” (in Polish) a historical portrait of America’s first ladies.

Longin Pastusiak Born in 1935 in ¸ódê, Longin Pastusiak completed a Masters of Art degree at the University of Virgina in 1959. After further postgraduate studies in Journalism at the University of Warsaw, Mr Pastusiak received his PhD in History at Warsaw’s Higher School of Social Sciences in 1963.

Longin Pastusiak is a renowned author and historian focusing much of his work on Polish-

American relations. Selected examples of his recent work include “Bia∏y dom i jego mieszkaƒcy” (2006) and “Romanse prezydentów USA” (2009).

He was a member of the Polish communist party from 1961 until its dissolution. From 1991 to 2001, he was an MP from the Democratic Left Alliance party. He served as speaker of the Senate from 2001 to 2005. ●

www.wbj.pl

9

10

REGION

www.wbj.pl

Crime figures falling In the first half of 2012 there were 456,000 recorded crimes in Poland, 3.6% fewer than a year earlier, reported Dziennik Gazeta Prawna.

There has also been a significant decrease in serious crimes, with 282 murders in the first six months of the year, 46 fewer than for the same period of 2011. And for the first time in many years the number of drunk drivers on Poland’s roads has also fallen, according to new police figures, Rzeczpospolita reported.

International politics

Former Georgian FM says Saakashvili and Putin are ‘twin brothers’ WBJ sat down with Tedo Japaridze, foreign minister of Georgia after the Rose Revolution and now an opposition politician, to talk about Georgian democracy, current President Mikheil Saakashvili and the prospects for possible EU and NATO membership for his country

Euro zone unemployment record

State-controlled utility Enea might get involved in the construction of Poland’s first nuclear power plant, the company’s CEO Maciej Owczarek told TVN. The value of the investment managed by Polish energy giant PGE is estimated at some z∏.50 billion. This first nuclear power plant should be finished by 2023.

Exports down In June, Polish exports fell by 2% compared to May and by 9.6% compared to a year ago.

In total, exports amounted to z∏.50.8 billion, according to data from the Export Credit Insurance Corporation (KUKE). Experts say the drop was unexpected, because seasonal tendencies should point to increasing turnover related to delivery of merchandise for vacation. According to KUKE’s forecasts, exports for the period between June and August 2012 will be higher than a year ago by 6.7%. ●

So would you draw a parallel between Mr Saakashvili and Vladimir Putin for example?

The Americans and the West in general call Saakashvili Georgia’s beacon of democracy while they consider Putin to be authoritarian. But stylistically their way of ruling is identical, the way they treat the press, the way they treat parliament and democracy in general. They are twin brothers.

Remi Adekoya: In 2010, you penned an article stating that Georgia is undemocratic and illiberal. How do you see the situation right now?

Tedo Japaridze: Right now it’s worse than it was two years ago. We have serious problems regarding the quality of our democracy, especially when it comes to the natural components of democracy such as an independent mass media, NGOs, civil society and the electoral process itself.

President Putin’s power comes from the security services. What about President Saakashvili, who is keeping him in power?

Saakashvili once made a statement saying that the then head of the security services, Interior Minister [and recently appointed Prime Minister] Vano Merabishvili, is the backbone of Georgian democracy.

In which country that considers itself democratic would the president say that the security chief is the backbone of democracy, not democratic institutions or the rule of law?

When Mr Merabishvili was running Georgia’s security apparatus, foreign business-

So there is no level playing field for the opposition?

Far from it. The opposition is treated very badly, people are arrested, stones are thrown at them, they are publicly humiliated, as are members of their families. Politics everywhere is a battle for power but in Georgia it’s more brutal than in countries like Poland. There is a fierce struggle for power and the material benefits it brings in Georgia.

How did the Rose Revolution degenerate into what you are currently describing?

You know the saying: Power corrupts and absolute power corrupts absolutely. Saakashvili is now alone in power. All his companions in the Rose Revolution have been gotten rid of. He has enormous power with no checks and balances. We have a rubber-stamp parliament which he controls completely.

He controls all the nationwide media and TV channels, civil society does not exist. It is the typical post-Soviet syndrome of one-man governance and

SHUTTERSTOCK

Enea may join nuclear project

not institutionalized democracy.

COURTESY OF TEDO JAPARIDZE

The unemployment rate in the euro zone reached a record high in June at 11.2%. Spain was in the worst situation, with 24.8% of citizens unemployed. Even in Germany, where unemployment fell from 5.5% to 5.4% in June, consumers are keeping a lid on spending. Retail sales fell by 0.1% in June compared to May. For the first time since 2007, this indicator has fallen for the third time in a row.

AUGUST 6-19, 2012

men would go directly to him to discuss matters and not to the then-PM because they knew it was the security services which were governing Georgia.

Recent opinion polls have your party, Georgian Dream, with 18 percent support and gaining in popularity. So perhaps it’s not so bad?

In general we do not trust

tools to promote his own personal interests.

Do you expect vote-rigging in this year’s parliamentary elections?

We hope there won’t be.

That’s why we are encouraging the international community to observe the elections carefully. It will be crunch time for Georgian democracy. But the election has already been

“Power corrupts and absolute power corrupts absolutely ... It is the typical post-Soviet syndrome of one-man governance” opinion polls, but it is true that there is a downward trend in Saakashvili’s popularity.

Which elections are more important for Georgia, this year’s parliamentary elections or next year’s presidential election?

Definitely the parliamentary elections are more important since they will decide what kind of government Georgia will have. You might have heard that since Saakashvili is serving his second and last term as president, he decided to change Georgia’s constitution to create a parliamentary republic. Since the Rose Revolution, he has changed the constitution more than 200 times. That’s how he treats democratic institutions, as

stolen thanks to the constant harassment of the opposition.

The international community should be vigilant because if something goes wrong in Georgia, it would affect European security in general. We are in a rough neighborhood with the likes of Russia, Iran, Turkey and Azerbaijan.

Does your party support EU and NATO accession?

Yes, we do. But at the same time we are more realistic about it than Saakashvili and his allies. We don’t promise it tomorrow like he does. We are not the new Berlin Wall and there’s no need to create one rhetorically because the West is still dealing with the practical problems created by the old one. Georgia is the Peter

Pan of the Caucasus, not yet grown up. NATO and the EU will not happen tomorrow, nothing happens that way. We need to work inside Georgia to make it a normal country that can contribute to stability within NATO. That is the task ahead of us.

You also once said Saakashvili provoked the war in 2008 thinking it would fast-track Georgia’s accession into NATO. His mistake was jumping into a trap set by the Russians who in 2008 were not doing anything they hadn’t been doing for centuries. Saakashvili thought the West would be ready to fight for Georgia.

Well, they weren’t.

What do you think of the EU’s Eastern Partnership program, which is strongly supported

by Poland? Is it working?

It’s working. Of course, we would like to see more dynamism, but these things take time. Poland is, however, one of our most important allies – and I am not just going through the motions. Poland has been strongly connected to Georgia emotionally for a long time now. They are already the CEE leader and thus it’s their responsibility to look beyond the borders of the CEE region and to take care of the countries in the grey zone. Like I said, if something goes wrong in Georgia, it will ricochet back to Poland and Europe. ●

OPINION & ANALYSIS

AUGUST 6-19, 2012

www.wbj.pl

11

Is Poland the small-government paradise Mr Romney sees?

Remi Adekoya

L

istening to Republican presidential candidate Mitt Romney’s speech in Warsaw last month, you could have been forgiven for thinking Poland was Milton Friedman’s fantasy state, ruled by a minimalist and fiscally prudent government that allows maximum economic freedom.

That is hogwash.

It might pass with those who have observed Poland’s admittedly impressive transformation from afar over the last two decades. But those of us living and working here know that this feat has not been achieved through pure laissez-faire economics.

When Mr Romney said that “rather than heeding the false promise of a government-dominated economy, Poland sought to stimulate innovation, attract investment, expand trade, and live within its means,” he was no doubt taking a jab at President Barack Obama, who the conservative talking heads have deemed a socialist aiming to increase government interference in business.

The (in)visible hand But although it is true that Poland’s economy isn’t “dominated” by its government, the state still plays a significant role.

Despite an ongoing privatization process that has seen hundreds of firms passed to private hands, and many of those listed on the country’s flourishing stock exchange, the government still has a firm grip on several key companies. Those include, to name just a few, the country’s biggest firm, oil-refiner PKN Orlen, gas monopoly PGNiG, and KGHM, a global copper producer and the world’s largest silver producer.

According to International Monetary Fund statistics, total government expenditure as a percentage of GDP was about 44 percent in Poland last year – compared to 41 percent in the United States.

Another element that the Republican candidate neglected to mention is Poland’s universal health-care system; Mr Romney and his Republican colleagues are fighting tooth-and-nail against President Obama’s attempt to achieve universal health care in the US. When it comes to economic freedoms in Poland, any entrepreneur will tell you that plenty of work remains to be done. It is still too difficult to set up and run a business – red tape is omnipresent. In the World Bank’s 2012 Doing Business ranking, the United States placed fourth.

Poland came in at a deplorable 62nd.

And although Poland’s entrepreneurs should receive due credit for their hard work, they might not have been able to craft Poland’s economic miracle without the massive cohesion funds that the European Union has been sending Warsaw’s way since 2004. Those billions of euros, the closest thing to a free lunch in international economics, were not mentioned in Mr Romney’s speech.

Not so thrifty Regarding fiscal discipline, Mitt Romney said a Polish leader told him during his visit that his country’s economic philosophy is, “You don’t borrow what you can’t pay back.”

That sounds great, but the truth is that Poland’s debt-to-GDP ratio has soared in recent years. At less than 46 percent in 2008, it jumped to over 56 percent in 2011, according to EU calculations.

Granted, this is still nowhere near US levels. But that’s because of a very wise decision made many years ago to enshrine a debt threshold into Poland’s constitution. And so would Polish leaders feel the urge to use public funds to stimulate the economy, they could not build up a public debt that exceeds 55 percent of GDP

without automatically triggering mandatory spending cuts.

Although the Polish government never used the word “stimulus,” public spending has been racked up in recent years, especially in connection with infrastructure projects before the Euro 2012 soccer championships that Poland hosted this summer.

Roughly $30 billion from public money (some 6 percent of the country’s annual GDP) was spent on preparations for this particular event.

That money no doubt helped the economy and created jobs.

Despite this, and millions of Poles emigrating to Western Europe since EU accession, almost 13 percent of Poles are unemployed. That’s much more than the 8.3 percent unemployment rate in the US for which Mitt Romney is lambasting President Obama.

Poland is doing well because …

Poland has stronger economic growth than the US today not because the people ruling it think like Mitt Romney and his Republican colleagues, but because they are people who have freed themselves from the straightjacket of ideology.

Though Prime Minister Donald Tusk and his Civic Platform (PO) party

started out as Poland’s biggest proponents of economic liberalism, the PM has since proved that he is no ideologue. Rather, in economic matters he has adopted an approach based on realpolitik. When the crisis struck, the government performed an admirable balancing act of doing its part to keep the economy going while at the same time encouraging fiscal discipline.

No economic liberal would have diverted employees’ retirement contributions from private pension funds to state-controlled ones the way Mr Tusk did in 2011. Whatever you think of that decision, it proved that Mr Tusk was able to put ideology aside to achieve other goals.

Poland may indeed have a lesson to teach the world when it comes to finding the way forward out of economic recession and fiscal crisis, as Mr Romney suggested. But that lesson is not about picture-perfect Polish economic policies. Rather, it is that political leaders in countries like America should learn to adopt more flexibility when trying to find the right policies for their nation. ● Remi Adekoya is WBJ’s Political Editor.

Read his blog, “The business of politics” on WBJ.pl

Europe’s zero-sum poison

W

henever a society regards its problems solely through the prism of distributional disputes, its chances of solving them diminish greatly, because the “us versus them” mentality distorts analysis and blocks solutions that would unambiguously improve the overall situation. Every policy choice is perceived as a zero-sum game, whereby a gain for one group is necessarily a loss for another group. The very notions of trust and progress vanish.

We have seen in the past the extent to which such conflicts – between rich and poor, landlords and industrialists, or capital and labor – can hamper development. We are seeing today in the United States how entrenched antagonisms result in a stalemate on tax and budgetary matters. And there are many examples of failed economic reforms that fundamentally boil down to the same zero-sum logic.

Continuous struggle But that logic is nowhere as salient today as it is in Europe. Since the euro crisis began, almost three years ago, there has been a continuous struggle between two readings of it.

The first interpretation emphasizes the euro zone’s policymaking shortcomings and the reforms needed to remedy them. The second highlights individual euro zone countries’ failings and the costs that they impose on their neighbors. Until now, a rough balance between these two interpretations has prevailed. But the second is increasingly gaining the upper hand.

In northern Europe, public opinion is increasingly exasperated by what many view as an attempt by the south to rob it of its savings. A recent letter signed by 160 German economists claiming that the European Union’s plan for a banking union was little more than an attempt to make Germany pay for Spanish mistakes is revealing in this respect.

The economists largely overlook the problem of financial fragility that a banking union is supposed to address, claiming instead that there would be no problem if governments simply stopped intervening in banking crises. And they overstate the risk that a common deposit-insurance scheme could turn into a massive north-south transfer channel.

In turn, southern Europe is getting

angry. Italian Prime Minister Mario Monti recently decried the emergence of a European “creditocracy” – governance by those who pretend to be on the giving side of Europe – and pointed out that, contrary to widespread perception, Italy is not relying on anyone else’s support. (Italy is indeed contributing to support other crisis countries, so, objectively, it is still a creditor). If the mild-mannered Monti speaks in these terms, what can we expect from the new breed of populism that is bound to result from the southern European crisis?

Admittedly, Europe’s increasingly divisive zero-sum thinking is not entirely new. The EU is accustomed to distributional disputes, and the lengthy budget discussions (which take place every seven years) are typically acrimonious affairs. But, until now, policymakers could contain controversies to the usual political giveand-take of taxation and cross-country transfers. The problem with the current debate is that distributional disputes now contaminate the entire policy spectrum.

One man saw this coming. American economist Martin Feldstein wrote

in 1997 that monetary union would create conflict within Europe. At the time, he was derided and regarded as an entrenched opponent of the European project. Unfortunately, his insight was correct: European countries today are at loggerheads not despite the common currency, but precisely because of it.

Serious danger History suggests that international disputes over debt and transfers are a serious danger. In the 1920s and 1930s, representatives of European states devoted countless meetings to resolving them (at the time, mainly German reparations). Despite US goodwill, they were unable to overcome their differences, and let the reparation problem degenerate into a poisonous financial conflict that contributed to much worse.

But conflict is not inevitable. Many societies have proven able to overcome a zero-sum mentality and project their perceptions of national interest into the future; Europe must find in itself the ability to do the same.

An important lesson from how countries address internal disputes is

Jean Pisani-Ferry

that the attitude needed does not require overlooking distributional issues. Successful societies do not stop having arguments about who benefits or loses from taxation, redistribution, or regulation. But they do not let distributional issues take over the entire debate. They are able to separate efficiency or stability issues from distributional controversies.

That is the lesson that Europe must learn. It must recognize that it is bound to live with distributional disputes, and that it must find ways to address them. But, even more important, it should contain the scope of these disputes, and avoid becoming mesmerized by them. Doing so requires courage, vision, and trust – qualities that are currently in dangerously short supply. ● Jean Pisani-Ferry is director of Bruegel, an international economics think tank, professor of economics at Université Paris-Dauphine, and a member of the French prime minister’s Council of Economic Analysis.

Copyright: Project Syndicate, 2012. project-syndicate.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

ADAM ZDRODOWSKI (AZDRODOWSKI@WBJ.PL) SPORTS & LIFESTYLE EDITOR

CO-MANAGING EDITOR

ALICE TRUDELLE (ATRUDELLE@WBJ.PL) POLITICS EDITOR

REMI ADEKOYA (RADEKOYA@WBJ.PL)

DAVID INGHAM (DINGHAM@WBJ.PL)

COLUMNISTS

ADAM NARCZEWSKI ANDREW NAWROCKI

CONTRIBUTORS

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MARKETING &SALES DIRECTOR

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MANAGING DIRECTOR MONIKA STAWICKA

MARKETING &SALES

INTERNS

JOURNALIST

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

(ABREJWO@WBJ.PL)

PR & MARKETING SPECIALIST

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12

COVER STORY

www.wbj.pl

Poland closes Syrian embassy

AUGUST 6-19, 2012

US presidential elections

Poland, the campaign issue

Poland has temporarily closed its embassy in Syria and evacuated its diplomats, including its United States Interests Section, the Ministry of Foreign Affairs announced on July 27.

“The decision has been made due to the dramatic worsening of the internal crisis in Syria, which has led to a deterioration of the security situation and has made it impossible for Polish diplomats to carry out their duties,” Foreign Minister Rados∏aw Sikorski told a news conference. “The embassy will reopen as soon as security conditions allow it,” he added. The embassy in Damascus had been representing US interests in the country since February.

Remi Adekoya

Investor Krzysztof Moska is dreaming of opening 500 Polskie Jad∏o restaurants in Poland, which would compete with the world’s largest fast food chain, reported Parkiet. “My dream is to create an equivalent to McDonald’s in Poland, but with healthy and traditional Polish food,” Mr Moska said, adding that he would need to invest around z∏.10 million during the first year to open close to 100 facilities.

Poland to avoid recession Prime Minister Donald Tusk has said that Poland is unlikely to fall into recession and will maintain GDP growth at 2.5% in the second half of this year, reported the Polish Press Agency.

However, “we must be prepared to respond fast if this autumn proves more dramatic than we expect,” said Mr Tusk. ●

COURTESY OF MAGDALENA PAWLUCZUK

A Polish rival for McDonald’s?

Mitt Romney was in Poland as part of a three-nation tour as he steps up his presidential bid

US presidential candidate Mitt Romney’s visit to Poland thrust the country into the international media spotlight last month Poland unexpectedly became an issue in the 2012 US presidential race in July. As presumptive Republican nominee Governor Mitt Romney seeks to establish his credentials as a global leader, he turned his attention to the country, using it as a rhetorical tool to attack US President Barack Obama on both foreign and economic policy.

In a speech he gave to US war veterans on July 24, Governor Romney accused President Obama of “aban-

doning” Poland in order to gain favor with the Russians.

Mr Romney said that President Obama’s accommodation of Moscow “began with the sudden abandonment of friends in Poland and the Czech Republic.

They had courageously agreed to provide sites for our anti-missile systems, only to be told, at the last hour, that the agreement was off.

“As part of the so-called reset in policy, missile defenses were sacrificed as a unilateral concession to the Russian government,” he added, referring to Mr Obama’s cancellation of a project, initiated by former US President George W. Bush, to install an anti-ballistic missile system in Poland and the Czech Republic – a

plan which Russia had opposed.

Mr Romney did not mention that Mr Obama had

Israel, Governor Romney arrived in the Polish port city of Gdaƒsk where he met Nobel Peace Prize laureate

“In a speech he gave to US war veterans on July 24, Governor Romney accused President Obama of “abandoning” Poland” announced a new missileshield program in which Poland will also play a large role.

Poland, the land of economic liberalism?

In an effort to indicate how he would do things differently, Mr Romney visited Poland on the last leg of his three-nation foreign tour in late July.

After visiting the UK and

and former Solidarity leader Lech Wa∏´sa. Mr Wa∏´sa, who had invited the governor in early July, effectively endorsed Mr Romney, saying that the world needs his “success.” Mr Romney also met with Prime Minister Donald Tusk and President Bronis∏aw Komorowski, who as sitting officials did not give any formal endorsement.

In Warsaw, Governor

Romney gave a speech lavishing praise on his host country, giving Poland’s economy one of its best international PR opportunities in a long time.

He focused on Poland’s economic success, saying that “when economists speak of Poland today, it is not to lament chronic problems, but to describe how this nation empowered the individual, lifted the heavy hand of government, and became the fastest-growing economy in all of Europe.”

In what appeared to be an indirect criticism of President Obama’s handling of the US economy, he said that “rather than heeding the false promise of a government-dominated economy, Poland sought to stimulate

COVER STORY

COURTESY OF PREZYDENT.PL

AUGUST 6-19, 2012

Barack Obama visited Poland in 2011. Here he shakes hands with President Bronis∏aw Komorowski innovation, attract investment, expand trade, and live within its means.”

“Your success today is a reminder that the principles of free enterprise can propel an economy and transform a society,” he added.

For the folks back home Marcin Zaborowski, head of the Polish Institute of International Affairs (PISM), who co-hosted Mr Romney’s public appearance in Warsaw, said the speech was “mainly for the American people.

That’s why he stressed our conservative monetary policy, effectively saying to them that this is how America’s finances should be run.”

Mr Zaborowski also said he wasn’t surprised Mr Romney had not criticized Russia more strongly in his speech, as some had expected.

“I think he wanted to avoid controversy here after some unfortunate comments during his earlier trips,” he said, referring to the Republican candidate’s ill-received comments about London not being ready for the Olympics and Jewish culture as the reason Israelis are more prosperous than Palestinians.

Micha∏ Baranowski, senior program officer at the German Marshall Fund in Warsaw, agreed that “the logic of the current campaign is such that during his speech he spoke to the US people,” but added that “this was not a policy speech. Traditionally presidential candidates do not make policy speeches or directly criticize the foreign policy of the current administration while abroad.”

He also said that in his opinion, the primary goal of this speech was not to get votes back in the US but rather to show Mr Romney as a statesman with foreign policy credentials.

Two-pronged reaction In Poland, officials did not seem irked at being played as part of the campaign. Former Polish Prime Minister Jan Krzysztof Bielecki summed up Mr Romney’s speech and visit to Poland succinctly saying, “We got our promotional message out and Governor Romney got his campaign message out.”

Meanwhile, in the US, Mitt Romney’s visit to Poland was assessed along predictable lines.

Most conservative pundits saw it as a success – especially the endorsement from Mr Wa∏´sa – and said that Mr Romney had rightly pointed out Poland’s economic success story, transforming from a centrally planned economy to one with a free market.

More left-leaning commentators accused Mr Romney of hypocrisy, saying he was using Poland as an example of a successful laissez-faire economy, while in reality the country has many policies in place, such as universal health care, which US conservatives would deem “socialist.”

Experts such as American affairs professor and former speaker of Poland’s upper house of parliament, the Senate, Longin Pastusiak, agreed that Polish-American relations would not be greatly affected no matter who is in the White House as of January 20 next year.

Spurned by Obama?

But a bit of attention is always welcome, especially when many Poles believe Mr Obama has given them the short end of the stick.

President Obama has focused his foreign policy on other areas of globe, especially the Asia-Pacific region, in his four years in office. At the same time, he has managed to irk many Poles with a series of ill-calculated moves.

First came his decision to

announce the scrapping of George W. Bush’s missileshield program on the anniversary of the Soviet invasion of Poland. This was decried by many Poles, and smacked of insensitivity.

Then, after the eruption of an Icelandic volcano prevented him from attending late president Lech Kaczyƒski’s funeral, Barack Obama’s decision to play golf instead of paying his respects rubbed salt in the already raw wounds.

Finally, Mr Obama’s unfortunate use of the term “Polish death camps” instead of “Nazi-concentration camps in occupied Poland” was the latest, but by no means the least, of these faux pas.

While some Poles felt these slights could be blamed on ignorance, others saw them as a deliberate effort to humiliate Poland. Either way, Poles felt offended.

And so a visit from the man who could be the next president of the United States – a man who had only warm words for the country and its people – was welcomed in Poland.

It will be interesting to see if Mitt Romney decides to use Poland as a talking point in the presidential debates.

Poles still remember George W. Bush’s exclamation during the 2004 presidential debates that John Kerry had “forgotten” Poland, when the Massachusetts senator said that the US and UK had invaded Iraq alone.

If Mr Romney does bring Poland into the conversation, it would mean more free publicity for the country.

Poland has achieved huge successes in the last two decades. Now what it needs is more name recognition, so that even more investors and businesspeople notice. It might mean being used as an ideological boxing glove, but there is hardly a better way to gain so much attention. ●

www.wbj.pl

13

Coming up:

The Eurocentrum Office Complex project in Warsaw has secured bank financing

August 23 Design & innovation

Some Polish legal regulations may be surprising for the foreign home buyer 16

17

LOKALE IMMOBILIA

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

Shopping centers

Hanza Tower contractor selected

¸ódê’s Manufaktura mall changes hands

Warsaw Stock Exchangelisted developer JW Construction Holding has selected Szczecin-based Calbud as the contractor of the first stage of construction of the Hanza Tower office project that it plans to build in the city. Scheduled to be completed at the turn of 2014 and 2015, the Hanza Tower scheme will rise 125 meters tall and will deliver 34,000 sqm of office, retail and conference space, as well as parking spaces for 400 cars.

Manufaktura sale . . . . . . . . . . .14 Dolina Wisły . . . . . . . . . . . . . . . .14 Kulczyk purchases . . . . . . . . . . .14 Property-related stocks . . . . . .16 Eurocentrum financing . . . . . . .16 Real estate law . . . . . . . . . . . . .17

The transaction covers over 91,000 sqm of the total of more than 112,000 sqm of GLA in Manufaktura “We are pleased to be able to expand our excellent UniImmo: Deutschland retail portfolio with the addition of one of the three leading shopping centers in Poland. Manufaktura offers everything we look for in a highly diversified core investment,” Mr Billand added.

Open for business since May 2006, the Manufaktura development comprises a total of over 112,000 sqm of GLA, of which more than 91,000 sqm is covered by the sales deal. The transaction is scheduled to be finalized by the end of this year.

Mint of Poland unveils new huge mixed-use project in Warsaw The Mint of Poland has presented a preliminary architectural concept for a new huge mixed-use real estate project in Warsaw that it hopes to develop on post-industrial land which it

acquired from car manufacturer FSO in the capital’s Praga Pó∏noc district in May last year.

The concept for the investment, which has been tentatively named Dolina Wis∏y (Vistula

COURTESY OF MENNICA POLSKA

COURTESY OF GHELAMCO POLAND

In this issue

Apsys, Fonciere Euris and Rallye have signed a preliminary agreement with Union Investment’s UniImmo: Deutschland open-ended fund for the sale of the Manufaktura shopping and entertainment center in ¸ódê, in central Poland.

The deal, which was facilitated by HSBC, Hogan Lovells and Jones Lang LaSalle, covers the whole facility, except for the DIY premises, which are owned by Leroy Merlin, and the Cinema City-owned multiscreen movie theater.

The value of the transaction has not been revealed.

However, Puls Biznesu reported that the deal was somewhere in the range of €350-400 million.

“With assets of over €7.5 billion, the fund is the perfect platform for this outstanding investment,” Frank Billand, management board member at Union Investment Real Estate, said in a statement.

COURTESY OF EFFECTIVE PUBLIC RELATIONS

A Union Investment fund has acquired the largest shopping center in Poland

Ghelamco completes Senator

Developer Ghelamco Poland has obtained an occupancy permit for its Senator office building in downtown Warsaw.

Located on the capital’s ul. Bielaƒska, the development has delivered 25,000 sqm of office space. The investment is already 75% commercialized. The largest tenant is PKN Orlen, which has just moved into its new premises. Other occupiers of Senator will include firms from Grupa Rabobank, as well as Euronet and BRE Bank.●

AUGUST 6-19, 2012, LI 17/31-32

The scheme could total some 200,000-250,000 sqm

River Valley), has been prepared in cooperation with the JEMS Architekci studio and is now being discussed with municipal officials.

It calls for the development of a number of residential and office buildings on 27.6 hectares of land located along Warsaw’s ul. Jagielloƒska that could total approximately 200,000-250,000 sqm of usable space.

The project is not the only real estate investment that the Mint of Poland plans to develop in Warsaw in the coming years.

Earlier the company also announced its plans to build a 130-meter skyscraper in the AZ city’s Wola district.

“This sale will strengthen the equity of the group and will enable Apsys further development of shopping center projects in Poland and France,” Maurice Bansay, the founder and president of Apsys, said in a statement.

Apsys has projects totaling

450,000 sqm of GLA in the pipeline, of which 160,000 sqm are located in Poland.

The company has recently obtained a building permit for its ¸acina shopping center project in Poznaƒ, which will deliver 100,000 sqm of GLA. Adam Zdrodowski

KSP acquires office buildings from Hochtief Real estate investment and development company Kulczyk Silverstein Properties (KSP) has acquired two office buildings in Warsaw from Hochtief Development Poland. The value of the transaction has not been disclosed.

The facilities in question are historical properties located at Pl. Ma∏achowskiego and on ul. Mazowiecka in the capital’s central district. A new building will be added to the property on Pl. Ma∏achowskiego. The acquired structures total almost 18,000 sqm of commercial space.

“The two new investments

fall closely in line with the KSP strategy of creating a portfolio of commercial properties in the best locations of the largest cities of the CEE region,” Piotr Krawczyƒski, board member of KSP, said in a statement.

The acquisition of the office buildings from Hines is the second purchase transaction by KSP, which was founded in late 2010 as a joint venture of Kulczyk Real Estate Holding and Silverstein Properties. In August last year, the company acquired the Stratos Office Center building in Warsaw.

Adam Zdrodowski

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

AUGUST 6-19, 2012

Offices

Property-related stocks Closing price on Aug 2

% change (week)

52-week low

52-week high

% change (year)

Total shares

Market value (z∏. mln)

BUDIMEX

54.10

-1.64

53.00

88.35

-34.82

25,530,098

1,381.18

CELTIC

8.00

0.00

8.00

22.70

-61.87

34,231,466

273.85

DOMDEV

26.30

1.15

23.50

42.80

-42.83

24,670,397

648.83

ECHO

3.62

3.13

3.05

4.40

-20.79

420,000,000

1,520.40

ELBUDOWA

91.90

-0.11

87.00

126.70

-36.18

4,747,608

436.31

ENERGOPLD

0.41

-34.92

0.41

3.68

-89.27

70,972,001

29.10

ERBUD

13.75

-1.01

12.52

23.30

-39.56

12,644,169

173.86

GANT

5.00

-3.10

4.90

10.59

-52.79

20,499,953

102.50

GTC

5.96

-3.09

5.20

13.17

-62.47

219,372,990

1,307.46

HBPOLSKA

0.10

-28.57

0.10

1.43

-93.63

210,558,445

21.06

JWCONSTR

3.94

-6.19

3.86

10.95

-69.58

54,073,280

213.05

LCCORP

1.19

-4.03

0.85

1.48

0.00

447,558,311

532.59

MARVIPOL

10.40

-1.98

6.20

11.00

15.43

36,923,400

384.00

MIRBUD

0.99

-2.94

0.98

2.83

-69.06

75,000,000

74.25

MOSTALWAR

14.00

3.32

11.30

27.50

-52.86

20,000,000

280.00

MOSTALZAB

0.89

-2.20

0.84

1.81

-60.09

149,130,538

132.73

ORCOGROUP

8.20

-3.53

8.00

28.89

-72.67

35,415,406

290.41

PBG

7.00

5.11

5.30

115.00

-94.40

14,295,000

100.07

PLAZACNTR

2.15

-4.87

1.80

3.08

-35.82

297,174,515

638.93

POLAQUA

4.10

2.50

4.00

16.44

-77.15

27,500,100

112.75

POLIMEXMS

0.65

-8.45

0.61

2.27

-76.36

521,154,076

338.75

POLNORD

12.75

-0.39

10.49

19.85

-41.65

23,798,439

303.43

RANKPROGR

7.50

-0.27

7.50

16.97

-33.92

37,145,050

278.59

ROBYG

1.12

-1.75

1.04

1.75

-36.72

257,935,500

288.89

RONSON

0.70

-4.11

0.69

1.16

-38.05

272,360,000

190.65

TRAKCJA

0.72

10.77

0.65

2.12

-71.31

232,105,480

167.12

ULMA

39.30

-1.73

38.88

74.80

-47.60

5,255,632

206.55

UNIBEP

3.60

-9.55

3.60

6.61

-35.71

34,021,684

122.48

WARIMPEX

3.09

-3.44

2.95

7.45

-61.38

54,000,000

166.86

ZUE

5.84

-0.85

5.07

10.00

-42.97

22,000,000

128.48

Eurocentrum Office Complex financing secured The investor has already launched construction on the 65,800-sqm development Grupa Capital Park, the investor behind the planned Eurocentrum Office Complex scheme in Warsaw, has secured z∏.324 million in bank financing from Bank Pekao that will cover most of the construction cost of the project.

“The signing of the agreement with the bank gives us

financial means necessary to carry out the investment and enables us to launch construction on the investment’s first phase,” Marcin Juszczyk, management board member at Grupa Capital Park, said in a statement.

Capital Park has announced it has already finished all preparation work pertaining to the investment and launched construction on the scheme, which, when delivered, is expected to be the largest green office building in Poland.

Located on Warsaw’s Al.

Jerozolimskie and featuring LEED CS Gold certification of energy efficiency and environmental performance, the 15floor class-A+ Eurocentrum Office Complex scheme will deliver 65,800 sqm of leasable space.

The project is scheduled to be completed in Q2 2014.

Erbud is the general contractor of the PRC Architekcidesigned development, whose office space is being commercialized by Cushman & Wakefield.

Adam Zdrodowski

COURTESY OF MEDIADEM CONSULTING

Security

Eurocentrum Office Complex will be Poland’s largest green office building

Legal Forum

Landmark ruling on allotment gardens Rados∏aw Biedecki Partner You may have noticed that in some extremely attractive locations instead of prestigious offices or residential buildings you see … allotment gardens (plots of land made available for individual, non-commercial gardening). In Warsaw alone there are 190 allotment gardens with a combined area of 1,200 hectares. In many cases the establishment of allotment gardens was violating provisions in force and was occurring on land with no clear legal title.

A ruling by the Constitutional Tribunal dated July 11 means that these violations must now cease and that the real estate on which the allotments exist will be retaken by private and public owners.

Under the ruling, almost half of the provisions of the act under which allotments were established and managed are contrary to the Polish Constitution. It is worth noting that the claim against the allotment regulation

was filed two years ago by Mr Lech Gardocki – a former first Chairman of the Supreme Court.

Mr Gardocki claimed that the privileges of the Polish Allotment Garden Federation (Polski Zwiàzek Dzia∏kowców – PZD) towards the local communities are disproportionate and too extensive: Despite ownership of the real estate, the local communities had to tolerate the control of their properties by PZD. Local communities were unable to change the designation of the allotments for any other public purpose (such as a kindergarten or sports facility). Last but not least, local communities did not receive any compensation for the use of their real estate for allotment purposes.

End of the monopoly Prior to the ruling PZD was the sole organization that could run allotments. This contradicted the

principle of freedom of association. The ruling means that the PZD has lost its monopolistic position and, indeed, its reason for being.

PZD’s privileges were impressive. For example, if a local zoning plan provided for allotments in a given area, then the local community or State Treasury was legally required to give such land for use or perpetual usufruct to PZD – and this free of charge. The Constitutional Tribunal had no doubt that the PZD privileges constituted a violation of the basic rules of equal treatment of all citizens and entities and equal treatment by public authorities.

PZD was the only one to decide on the allotment’s division into plots and common areas. The only legal constraint was the requirement of at least 50 plots in one allotment and that a single plot should have an area between 300 sqm and 500 sqm.

PZD was entitled to grant to its members the right to use a plot and benefit from its products free of charge, without any time limit.

Moreover, by law the PZD was: • an owner of equipment, buildings and constructions erected on the allotments and designated for common use; • exempt from paying taxes and dues in connection with its statutory activity; • required to approve the liquidation of an allotment.

Restitution/owners’ claims The act on allotments was blocking the settlement of claims of former real estate owners. The legislation provided that third parties’ claims to properties on which allotments were created could be satisfied exclusively by financial settlement or compensated by transfer of another real

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.

estate at the expense of the owner (and not the user – PZD) of the allotments.

In other words, the local community had no control and use over the real estate under the allotment but had to bear the costs of satisfying the former owners’ claims. It’s no wonder that former owners were unable to get their property back and that local communities were not eager to begin any discussions or procedures regarding former owners’ claims. The city of Warsaw as an owner itself has claims from the PZD on about 600 hectares.

The ruling will take effect on January 20, 2014. The ruling of the Constitutional Court means a substantial step towards satisfaction of claims of former owners and in the future new development opportunities in attractive locations. And with equal rules for everyone involved. ●

AUGUST 6-19, 2012

LOKALE IMMOBILIA – REAL ESTATE

SHUTTERSTOCK

Negotiating a legal maze

A new law has recently given more protection to home buyers in Poland

Foreign investors should be aware of the complicated legal regulations surrounding buying residences in Poland Foreigners who plan to buy residential real estate in Poland should take into account a number of legal issues. Home purchases by non-Polish buyers are often liable to restrictions and foreign clients may at times be surprised by Poland-specific legal concepts and regulations.

Legal limitations Foreigners are generally allowed to purchase homes in Poland, but in practice the country’s law calls for a number of limitations in this regard, said Kazimierz Kirejczyk, president of the residential market consultancy firm REAS. The legal situation of foreigners who plan to buy residential property in Poland is varied, depending on factors including the type of the property in question and its location, as well as the country from which a given foreigner comes.

While the purchase of a housing unit for one’s own use most often does not require a special permit, the consent of the Ministry of the Interior is often needed when a foreigner intends to buy a property which he or she plans to rent out, Mr Kirejczyk said.

He added that the regulations envision some exemptions, for example for those foreigners who have been residing in Poland for at least five years and those who are married to a Polish citizen and

have been living in Poland for at least two years.

Bartosz Turek, an analyst at Home Broker, a real estate consultancy and brokerage firm, pointed out that the size of the residential property that foreigners buy in Poland cannot exceed 0.5 hectares and that there are limitations pertaining to real estate located near the country’s borders.

Surprise, surprise A foreigner deciding to buy a residence in Poland may find some of the legal aspects pertaining to the country’s real estate market surprising, said Wojciech Langowski, an attorney at Miller Canfield, a law firm.

There is, for one, the issue of ownership, which may be limited in the case of apartments built by housing cooperatives.

Mr Langowski described transactions concerning apartments without land and mortgage registers as riskier than those in which fully owned units are involved.

Also, certain tax issues pertaining to home purchases in Poland could give buyers from abroad an unpleasant surprise.

Americans, for example, may be unaware of the existence of a two-percent transfer tax, Mr Langowski said.

On the other hand, he said, many foreigners will be happy to find out that the property tax in Poland is actually quite low compared with some Western countries, and that notary fees do not differ much from those in the West.

Buyer protection There has been significant improvement in Poland of late

as far as the protection of apartment buyers’ rights is concerned, Miller Canfield’s Langowski said. A new developer law which is meant to better safeguard those rights came into force on April 29 this year.

Home Broker’s Turek pointed out that after the law was introduced, Poland has buyer-protection solutions similar to those in Germany, France, Denmark and Sweden. “There is, however, a transit period, as all projects whose sales launched before April 29 are not covered by the law,” he noted.

The law envisions the protection of buyer rights through, among other things, obliging developers to provide an escrow account and a prospectus with crucial information on their company and their investment, said Pawe∏ Kuglarz, a partner at the Beiten Burkhardt P. Daszkowski law firm.

The prospectus has to include information on a given developer’s financial situation, as well as on the particular project’s locations, the arrangement of the apartments in the scheme, and the finishing standard and financing of the development, Mr Kuglarz added.

Legal solutions providing protection to home buyers were introduced in many Western European countries in the second half of the 20th century. “[Until recently] it was assumed in Poland that there is no need for regulation as the market would regulate everything itself,” Mr Kuglarz said.

Adam Zdrodowski

www.wbj.pl

17

18

INNOVATION IN FOCUS

www.wbj.pl

AUGUST 6-19, 2012

Innovation

Piotr D. Moncarz, principal engineer at consultancy firm Exponent and consulting professor in the Civil Engineering Department at Stanford University, sits down with WBJ for an in-depth discussion on why Poland lacks behind when it comes to R&D, and to give concrete tips on how to boost Polish innovation Zosia Ró˝alska: Poland is one of the fastest growing economies in Europe, yet it doesn’t have the reputation of being very innovative. Why do you think that is?

Piotr D. Moncarz: In the last few years Poland’s economy has been growing at a rate far beyond the average for European Union countries, and so far Poland has survived the EU economic crisis largely unscathed.

The main economic indicators of Poland are not, however, driven by successes of innovative Polish companies on the global market. In the European Commission’s 2011 Innovation Union Scoreboard Poland was ranked 23rd out of 27 among innovative economies in the EU, and currently hovers at 44th position in the 2012 Global Innovation Index by business schools INSEAD and the World Intellectual Property Organization.

Many of Poland’s neighbors share its legacy of postcommunism but still outpace Poland in these indices. There are many reasons for this, some of them associated with the size of the country, with Poland being the largest of the former Soviet Bloc. Its greater size has meant greater inertia, a larger bureaucracy, and a much larger and more sustained effort needed to transform existing institutions and practices into those capable of fostering innovative growth.

The higher education system, a critical element of Poland’s innovation potential, was not targeted for innovation-focused reform until quite recently. Changes implemented in 2011 are set to increase national investment into R&D from 0.7 percent of GDP to 1.7 percent by 2020.

However, these changes are only very recent, and their impact is still nascent.

Another major obstacle to innovation in Poland has been the lack of effective cooperation between the business and the academic R&D communities. These two still speak different languages.

The Top 500 Innovators program, which you are involved in, is seeking to change this.

Can you tell us more?

The vision behind the program and its leadership should be

attributed to Poland’s Ministry of Science and Higher Education, especially Minister Barbara Kudrycka and Deputy Minister Maria Or∏owska. The goal of the program is to train Polish academics to effectively cooperate with industry and commercialize the results of their research. So far, two groups of 40 have gone through nine weeks of professional development at one of the world’s leading universities, Stanford.

Obviously these participants benefit from meeting and exchanging ideas with fellow subject-matter experts at Stanford University or wherever the program takes future Top 500 groups. However, this is not the main goal of the program. What we have focused on most at Stanford is the anatomy of innovation, familiarizing Top 500 participants with the skills and resources that allow Stanford University’s research community to keep strong, practical ties with

Polish spending on R&D is embarrassingly low in both the public (0.7 percent GDP) and private (0.2 percent of GDP) sectors. I wouldn’t venture to suggest what needs to be done to move Poland to the top of the OECD list, as the road to that destination is very long.

However, a lot can be done to make investment in R&D easier and more attractive.

In the last few years I have toured many Polish laboratories and institutes and witnessed a striking transformation, including the modernization of laboratories and R&D equipment, bringing them to world-class levels. These changes all bode well for Poland.

But there are other areas where change has been slow or nearly invisible, and where we must now turn our attention.

When it comes to public funding, this includes the persistence of tedious grant procurement procedures, onerous research progress and financial reporting – petty, resourceconsuming procedures endorsed by risk-averse bureaucrats.

Another major issue is the fact that personal or team incentives for supporting successful research initiatives are not well understood. In order

“There is no magic formula, no simple blueprint that can be taken from Silicon Valley and transplanted to Poland” the commercial community of Silicon Valley and beyond.

Coursework and training activities focus on learning to understand market needs and wants, as well as financial, marketing, investment, planning, and management tools.

With these tools, I am convinced that the Top 500 innovators will return to their institutes and universities committed and trained to institute real cooperation with industry and transfer of research results to the economy. This will stimulate Poland’s domestic economy and global competitiveness, offering a powerful return on the investment Poland makes by providing high-quality education to some two million university students each year.

Poland had the fifth-lowest expenditure on R&D in the OECD as of 2009. And in terms of private-sector R&D, expenditure was at the bottom of the 34-member block. What should Poland do to get to the top of these lists?

to achieve increased private investment in R&D it is also essential to persuade small and medium-sized companies that their future is in bringing innovative products and solutions to the market.

Poland needs to stimulate its at-risk start-up financing system. The model of the National Capital Fund [Krajowy Fundusz Kapitalowy, KFK] is a step in the right direction, although the riskaverse nature of Polish Venture Capital is far from what the Polish economy needs to stimulate dynamic activities at the small and medium-size company level. That is why we also need to help Polish companies to find and attract foreign investors.

Clearly, the country will not have a healthy economy without prosperous companies, and sustainable prosperity is fueled by innovation. Sustaining innovation requires solidly funded R&D. Thus, the interest of the government and of commercial enterprises be-

COURTESY OF PROF. PIOTR D. MONCARZ

Preparing Poland’s future

Professor Moncarz says slashing grant-procurement procedures would help Poland increase its capacity to innovate comes one: If government stimulates corporate R&D, corporations commercialize it, creating a more robust tax base.

Direct corporate investment into R&D requires a lot more attention by the tax code authorities – any R&D money invested by the corporation should be viewed as a contribution to the national interest and treated by tax laws as such, whether through tax credits or a tax-exemption system.

Poland has few innovative sectors. Which do you think have the most potential?

Aviation is still one of the most promising sectors in Poland, with the greatest potential for growth. A recent study ranked the country’s aviation industry in sixth place among European industries for delivering a wide range of products and providing innovative solutions. This is a true success story of the Polish economy showing how to move from being a service supplier to a provider of innovative technologies and advanced material science made in Poland.

The energy challenge also creates important opportunities for Poland. We need our energy to be greener, cheaper, more reliable, domestic, sustainable, and easily distributed.

The shale gas industry is in its infancy in Poland, but even the world leaders of the industry, the US and Canada, are only at the “teenage” stage themselves. The first commercially viable production of shale gas in the US began just 14 years ago, in 1998. There are many exciting, shale gas-

related topics awaiting investigation by bold, innovative R&D teams and companies.

But there needs to be a onestop-shop for all the information and permit issues to streamline the administrative/regulatory process, thus making shale gas more economically viable.

Poland, like many countries, is blessed with enormous coal deposits but has yet to harness their power in an environmentally friendly, efficient, and affordable way. Successful underground coal processing is still awaited by the world market. Speeding up the commercialization of cutting-edge Polish research in this area could make Poland the world-leader in this field.

There are many other opportunities for Poland’s exceptional academic institutions to contribute significantly and profitably to the global marketplace of ideas. Poland has some formidable experts and laboratories in the relevant areas but strategic programs are needed to propel them to the world stage.

What do you think needs to change in terms of the Polish education system and its relations with the business world in order for future innovations to be better exploited?

There is no magic formula for what works in the US, no simple blueprint that can be taken from Silicon Valley in California and transplanted to another region or country. Alumni of leading universities eventually become leaders of industry, thus keeping their loyalty is not an issue of extracting

smaller or bigger annual contributions, but an issue of strategic relationship with the industry, with the economy.

Joint industry-academia projects lead to mutual appreciation and respect, and, more concretely, to joint interests, intellectual and financial.

Efforts by the National Center for Research and Development (NCBiR) to encourage, through grant proposal evaluation and rating structure, joint industry-academia projects are of fundamental importance in breaking the barrier between these two worlds. The educational system of Poland can contribute to faster and greater success of industry-academic collaboration by fostering teamwork, brainstorming, and multidisciplinary problem solving skills.

Industry, the corporate world, and market leaders need to get accustomed to many new concepts to become more effective in taking an intellectual product of science and R&D to the marketplace, whether domestic or global.

Polish companies that have reached a certain maturity should consider going global as a strategy for growth and sustainability. To explore that strategy, knowledge of best practices and most successful cooperation models between technology partners, investors, and market gurus should be viewed as essential. Therefore, we would like to bring Poland’s most promising companies to the heart of the modern global business and technology transfer, Silicon Valley. This initiative is the reason behind the US-Poland innovation hub. ●

THE LIST

AUGUST 6-19, 2012

www.wbj.pl

19

Private Health Care Centers in Warsaw Ranked by total revenue in 2010

www.bookoflists.pl Rehabilitation / Corporate packages / Medical diagnostics / Physician on duty

WND WND WND 4,345

3,786 2,112

11 111

1,099 -

✓ ✓ ✓ ✓

✓ ✓ ✓ ✓

✓ ✓ ✓ ✓

✓ ✓ ✓ ✓

✓ ✓ ✓ ✓

✓ ✓ ✓

✓ ✓ ✓

✓ ✓ ✓ ✓

✓ ✓ ✓

32 1,050,000 1992

None Mid Europa Partners 100%

Anna Rulkiewicz

Grupa Medicover w Polsce Al. Jerozolimskie 96, 2 00-807 Warsaw 500-900-500/22 592-7001 www.medicover.pl

WND 469.0 435.0 409.0

WND WND WND WND

WND 6,000 5,500 5,000

1,800 WND

WND WND

500 WND

WND WND WND WND

WND WND WND WND

WND WND WND WND

WND WND WND WND

WND WND WND WND

WND WND WND

✓ ✓ ✓

✓ ✓ ✓ ✓

✓ ✓ ✓

15 Around 500,000 1994

None Medicover Holding

Pawe∏ Kacprzyk

Centrum Medyczne ENEL-MED ul. S∏omiƒskiego 19/524, 00-195 Warsaw 3 22 431-7700/22 431-7703 enel@enel.pl www.enel.pl

81.2 137.8 120.9 102.5

WND WND WND WND

1,129 WND WND WND

908 WND

19 150

210 5

✓ ✓ ✓ ✓

✓ ✓ ✓ ✓

✓ ✓ ✓ ✓

✓ ✓ ✓ ✓

✓ ✓ ✓ ✓

✓ ✓ -

✓ ✓ ✓

✓ ✓ ✓ ✓

✓ ✓ ✓

8 Around 300 1993

Adam Rozwadowski 30.2%; Anna Maria Rozwadowska - 30.2%; Jacek Jakub Rozwadowski - 4.2%; Bartosz Adam Rozwadowski - 4.1% None

DANTEX SA - Centrum Medyczne DANTEX-MED ul. P∏ocka 9/11, 01-231 Warsaw 4 22 887-3390/22 887-3391 med@dantexmed.pl www.dantexmed.pl

WND 115.2 36.1 66.8

WND 2.6 2.5 2.9

WND WND 188 WND

98 67

7

12 -

✓ ✓ ✓ ✓

✓ ✓ ✓ ✓

✓ ✓ ✓ ✓

✓ ✓ ✓ -

✓ ✓ ✓ ✓

✓ ✓ -

✓ -

✓ ✓ ✓ -

✓ -

3 130,000 2000

Marek Roefler; Piotr WiÊlicki None

Spó∏dzielnia Pracy Specjalistów Rentgenologów ul. Waryƒskiego 9, 00-655 Warsaw 5 22 621-2366/22 629-3296 biuro@rentgen.pl www.rentgen.pl

9.4 17.9 17.8 17.0

2.3 4.2 4.1 4.0

100 98 90 81

240 98

42

15 -

✓ ✓ ✓ ✓

✓ ✓ ✓ ✓

✓ ✓ ✓ ✓

✓ ✓ ✓ ✓

✓ ✓ ✓ ✓

✓ -

✓ ✓ -

✓ ✓ -

✓ -

3 269,238 1956

Cooperative members 100% None

Centrum Medyczne(1) Pu∏awska Sp. z o.o.

6 ul. Pu∏awska 33, 05-500 Piaseczno 22 737-5050/22 737-5024 pawel.walicki@cmp.med.pl www.cmp.med.pl

6.1 9.9 7.2 5.0

WND WND WND WND

WND WND WND WND

250 240

10

60 -

✓ ✓ ✓ ✓

✓ ✓ ✓ ✓

✓ ✓ ✓ ✓

✓ ✓ ✓ ✓

✓ ✓ ✓ ✓

✓ ✓ -

✓ ✓ ✓

✓ ✓ ✓ ✓

✓ ✓

5 160,000 2002

Pawe∏ Walicki - 16%; Lidia Walicka - 20%; Katarzyna Paszkiewicz - 16%; Ma∏gorzata ZaraÊ - 16%; Adam Koz∏owski - 16%; Monika Piwoƒska - 15% None

Europejskie Centrum Zdrowia Otwock Sp. z o.o. ul. ˚ytnia 16/C, 01-014 Warsaw NR 22 710-3001/22 710-3160 biuro@ecz-otwock.pl www.ecz-otwock.pl

WND WND WND WND

WND WND WND WND

WND WND WND WND

67 WND

96 5

81 14

✓ -

✓ ✓ ✓

-

✓ ✓

✓ ✓ -

-

✓ ✓ -

✓ ✓ -

✓ ✓ -

5 4,000 2004

WND

Klinika Medyczna IBIS Sp. z o.o. i Wspólnicy Sp.k. ul. Kacza 8, 01-013 Warsaw NR 22 322-8181/22 322-8180 szpital@szpitalibis.pl www.szpitalibis.com.pl

WND WND WND WND

WND WND WND WND

WND WND 12 WND

77 58

18 5

32 2

✓ ✓ ✓ -

✓ ✓ ✓

✓ ✓ -

-

✓ ✓ -

-

✓ ✓ -

✓ ✓ -

✓ -

1 102,000 2001

WND

Sensor Cliniq Sp. z o.o. i Wspólnicy Sp.k. ul. Kacza 8, 01-013 Warsaw NR 22 322-8183/22 322-8181 szpital@sensorcliniq.pl www.sensorcliniq.pl

WND WND WND WND

WND WND WND WND

WND WND 12 WND

75 40

15 3

35 2

-

✓

-

-

✓

-

✓ ✓ -

✓ -

✓ -

1 102,500 2001

WND

Total revenue (z∏. mln)

Revenue Number from of: Number doctors health care of clients package Total / served sales min. (z∏. mln) 5h/week

1st half of 2011 / 2010 / 2009 / 2008

LUX MED Sp. z o.o. ul. Post´pu 21C, 02-676 Warsaw 1 22 450-4500/22 450-4500

zarzad.sekretariat@luxmed.pl www.luxmed.pl

Notes: NR = Not Ranked, WND = Would Not Disclose. Research for The List was conducted in January 2012.

Number of employees and ownership structure are as of December 2011. All information pertains to the companies’ activities in Poland. Companies not responding to our survey are not listed.

Footnotes: (1) Consolidated data of Centrum Medyczne Pu∏awska Sp. z o.o. and Niepubliczny Zak∏ad Opieki Zdrowotnej Cormed Sp. z o.o.

Pulmonology / Rheumatology / Urology / Ophthalmology

WND 417.0 WND 175.0

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

Gastrology / Gynecology / Internal diseases / Cardiology Laryngology / Labor medicine / Nephrology / Neurology Orthopedics / Pediatrics / Psychiatry / Psychology

WND 616.6 559.3 302.0

Rank

NFZ services / Laboratory tests / Home visits

Number of: Nurses / Orderlies

Dentistry / Maternity ward / Emergency services

Number of: Beds / Technicians

Allergology / Surgery / Dermatology / Endocrinology

Specialization Outlets in Family Warsaw / packages / Registered Hospital / patients / Ambulance Year founded

Ownership: Polish / Foreign

Top local executive / Title

President

President

Adam Rozwadowski President

Wojciech Kossut Managing Director

El˝bieta ¸ukowskaSawicka President

Pawe∏ Walicki President

Anna KieszkowskaGrudny Managing Director

Krzysztof Rajewski President

Krzysztof Rajewski President

To the best of WBJ ’s knowledge, the information is accurate as of press time. While every effort is made to ensure accuracy and thoroughness, omissions and typographical errors may occur. Corrections or additions to The List should be sent, on official letterhead, to Warsaw Business Journal, attn. Monika Brysiak, 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.

MARKETS

www.wbj.pl

AUGUST 6-19, 2012

Stocks report

Currency report

Central banks disappoint

Z∏oty strongest since March

Andrew Nawrocki WBJ market analyst

Adam Narczewski X-Trade Brokers DM SA

nervous investors to short the market. Stocks dipped, as investors waited anxiously for the Fed’s statement the next day. Both the WIG and WIG20 shed nearly a quarter of a percent, though financial shares such as Citi Handlowy managed surprisingly well, gaining over 6 percent. The first day of August started off poorly, with the Fed acknowledging that the economic recovery had lost momentum. With no new real proposals issued, shares slid. The WIG20 managed to gain a mere 0.14 percent, though the overall WIG finished flat.

Central bank disappointment continued on Thursday, after European Central Bank President Mario Draghi let down investors hoping for immediate action to contain the euro-zone debt crisis. Both the WIG and WIG20 shed nearly three quarters of a percent.

KGHM shares were hit particularly hard, dropping 3 percent. Finally on August 3, after the US reported strong job growth (but somewhat worse unemployment), markets finished strong. The WIG finished up 1.91 percent and the WIG20 up 2.38 percent. ●

Recent developments on financial markets are not hurting the z∏oty, despite increasing volatility on currency markets.

The EUR/USD, after reaching $1.2040 – its lowest since May of 2010 – rebounded to almost $1.24.

Help for the euro came from ECB head Mario Draghi, who stated that the ECB will do “whatever it takes” to save the euro.

But the ECB press conference following its interest rate decision disappointed many, with Mr Draghi unable to clarify the exact measures the bank would

02.08

01.08

31.07

30.07

27.07

26.07

25.07

24.07

23.07

20.07

19.07

18.07

SOURCE: WSE

02.08

01.08

31.07

30.07

27.07

26.07

25.07

24.07

23.07

20.07

19.07

18.07

17.07

16.07

13.07

12.07

11.07

06.07

5,100

02.08

01.08

31.07

30.07

27.07

26.07

25.07

24.07

23.07

20.07

19.07

18.07

17.07

16.07

13.07

12.07

11.07

10.07

09.07

5,300 06.07

02.08

01.08

31.07

30.07

27.07

26.07

25.07

24.07

23.07

20.07

19.07

18.07

17.07

16.07

13.07

12.07

11.07

10.07

09.07

06.07

30

17.07

5,500

32

2,060

16.07

5,700

34

2,120

13.07

5,900

36

2,180

12.07

6,100

38

2,240

11.07

WIG-Banki

40

2,300

06.07

02.08

01.08

31.07

30.07

27.07

26.07

25.07

24.07

23.07

20.07

19.07

18.07

17.07

16.07

13.07

12.07

11.07

10.07

09.07

NewConnect

WIG20

2,000

06.07

8,000

02.08

2,000

01.08

36,000

31.07

8,400

30.07

2,100

27.07

37,200

26.07

8,800

25.07

2,200

24.07

38,400

23.07

9,200

20.07

2,300

19.07

39,600

18.07

9,600

17.07

2,400

16.07

40,800

13.07

10,000

12.07

2,500

11.07

42,000

10.07

sWIG80

09.07

mWIG40

06.07

WIG

10.07

Other indices

09.07

Major indices

the way to z∏.4.09 against the euro (its strongest since March of 2012).

The much more volatile USD/PLN climbed all the way to z∏.3.50 but the improved sentiment on financial markets brought it all the way down to z∏.3.33. Both currency pairs are at important support levels and if those (z∏.4.08 for the EUR/PLN and z∏.3.32 for the USD/PLN) are broken, we will observe further z∏oty appreciation which could be as high as z∏.4.00 against the euro and z∏.3.25 against the US dollar. ●

undertake if necessary.

Markets reacted negatively, causing the EUR/USD to slide below the $1.22 level, before August 3 brought a rebound to levels just below $1.23. With such uncertainty on the markets, Polish treasuries became the investment choice, increasing demand for the z∏oty. A corrective movement lifted the EUR/PLN but further advancements were denied at z∏.4.22.

The market returned to the downward trend and the z∏oty appreciated all

10.07

After a solid week of gains during the last week of July, the first week of August disappointed investors. Stocks began with rises, on hopes that the Federal Reserve and the ECB would jointly take concrete steps towards resolving the euro-debt crisis.

The WIG20 was among the leading indices on Monday, July 30, rising by 1.3 percent, just trailing behind the main indices in Greece and Spain.

Shares of banks Pekao (+2.4 percent) and PKO BP (+1.4 percent) did particularly well.

As markets continue to move on talk, the last day of July was a quiet one, leading

09.07

20

currency rates

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4.3188

4.2836

4.2779

4.2696

4.2891

30.07

31.07

01.08

02.08

03.08

SOURCE: NBP

4.3315 4.0

27.07

0.1033 03.08

0.1032

0.1033

PLN-100JPY

4.8

02.08

31.07

30.07

01.08

0.1038

0.1048 0.1

27.07

3.4108 03.08

3.4161

0.1048

PLN-RUB

0.11

02.08

3.4253 01.08

3.4206 31.07

30.07

3.4523 27.07

5.1975

5.2137 03.08

3.4

3.4475

PLN-CHF

3.5

02.08

5.2283 01.08

5.2567 31.07

5.3088 5.1

30.07

5.3

27.07

3.3548 03.08

3.3462

DAILY EXECUTIVE DIGEST

5.2962

PLN-GBP

5.50

02.08

3.3420 01.08

3.3843

3.3508 31.07

30.07

3.3

27.07

4.0967 03.08

4.1063

3.4

3.3780

PLN-USD

3.8

02.08

4.1147 01.08

4.1459

4.1086 31.07

30.07

4.0

27.07

4.1

4.1411

PLN-EUR

4.2

SPORTS

AUGUST 6-19, 2012

www.wbj.pl

Olympic roundup

Natalia Partyka loses in table tennis third round

Polish shooter earns country’s first medal

Polish table tennis player Natalia Partyka was beaten 42 in the third round of the Olympic table tennis event by Dutch player Jie Lie in July.

However the 23-year-old, who was born without her right forearm, believes the experience of competing at London 2012 will stand her in good stead when she competes in the Paralympics later this summer.

“When I play here in the Paralympics I probably will be at an advantage, having played here already,” she told the BBC. Ms Partyka has attracted a lot of media attention, being the one of only two Paralympic athletes to compete in this year’s Olympics, along

COURTESY OF NATALIAPARTYKA.PL

The Polish athlete is one of only two paralympic athletes to compete in this year’s Olympics

Sylwia Bogacka won Poland’s first medal at the 2012 London Olympics after coming in second in the Women’s 10-meter air rifle competition. After qualifying for the final in first place, Ms Bogacka lost the first gold medal of the London Olympics to Chinese shooter Yi Siling in the final.

Following a score of 9.7 in the penultimate round of the final, Ms Bogacka was in third place. But a near-perfect score of 10.8 out of 10.9 on her final shot gave her silver ahead of China’s Yu Dan, who took bronze.

Ms Bogacka was the first Pole to win an Olympic shooting medal since 2000.

“My first reaction, when the medal was hung around my neck was to say, ‘it is heavy,’ and International Olympic Committee president Jacques Rogge answered, ‘So is the responsibility incumbent upon the conqueror.’” Ms Bogacka said.

“I did not think I was going to win, but the day before I saw pictures on the internet of the medals, and really liked them, so I was thinking that it would be nice to have one,”

Natalia Partyka with South African sprinter Oscar Pistorius. The Gdaƒskborn table tennis player said she is now tired of answering questions about her disability.

“For me, [disability] is nothing. … I am playing the same lines as the others. I am doing the same exercises,” she said.

“We have the same goals and the same dreams and I can play like them. I can serve

and don’t have any problems. … I get a bit bored about being asked about disability all the time.”

Ms Partyka, who will also compete in the team event at London 2012, will defend the Paralympic singles title she won in Beijing at the London Paralympics, which take place between August 29 and September 9.

David Ingham

Soccer

COURTESY IOF FACEBOOK/JAKUB B¸ASZCZYKOWSKI

B∏aszczykowski signs new Dortmund deal

Jakub B∏aszczykowski was one of the stars of Euro 2012

Poland’s captain will stay with the Bundesliga champions until 2016 Jakub B∏aszczykowski signed a three-year extension to his contract with 2012 Bundesliga champions Borussia Dortmund in July. The agreement will keep Poland’s captain at the Westfalenstadion until 2016.

The man known as “Kuba”

by German fans saw his stock rise massively following his inspired display in the Euro 2012 group stage, with his goal against Russia seen by

many as one of the tournament’s greatest moments.

In recent weeks rumors began circulating that numerous top European clubs including Lazio, Liverpool and Chelsea were interested in the midfielder, but now the 26-year-old has put the speculation to bed after putting pen to paper on a new deal.

“I’m very happy to stay in Dortmund. There are not many clubs that have such big crowds and that have managed to do what we’ve achieved here in the last two years,” Mr B∏aszczykowski

said in a statement on Dortmund’s website.

“I’m very happy about the new contract,” he added.

The club’s sporting director Michael Zorc said of the player, “Kuba wears the BVB emblem on his heart and he has proven, especially last season, why he is so important to us.”

Last year Poland’s captain scored seven goals in 40 appearances for the Black and Yellows in a season that saw them capture the German league and cup double.

David Ingham

COURTESY OF FACEBOOK/SYLWIA BOGACKA

London 2012

21

Sylwia Bogacka won Poland’s first medal in London she added.

Radwaƒska sisters fail in doubles Poland’s tennis-playing sisters Agnieszka and Urszula Radwaƒska lost 4:6, 6:7 (3-7) to American pair Liezel Huber and Lisa Raymond in the second round of the Olympic doubles tournament.

The defeat ended the Polish sisters’ participation in the doubles and capped off a bad few days for world number two Agnieszka Radwaƒska after she lost in the first round of

the singles to Germany’s Julia Goerges. This was despite the Olympic tennis event being held at Wimbledon, where Ms Radwaƒska had reached the final just a few weeks prior.

However, following the sisters’ doubles defeat the American pairing praised the Poles for their good performance.

“In the second set we were lucky, and we played a little more aggressively than they did. But the sisters really played well, so you should be proud of them,” Ms Huber DI, ZR told Interia.pl.

22

LIFESTYLE

www.wbj.pl

AUGUST 6-19, 2012

Popular music

Theater

Snoop headlines Coke Live

Silence is golden

Coke Live Festival August 11-12 ul. Stella-Sawickiego Kraków This summer’s Coke Live Festival will once again play host to some of music’s biggest stars with Snoop Lion (formely know as Snoop Dogg) and The Killers among the acts gracing the stage in Kraków.

The influential rapper was at the forefront of the gangsta rap explosion of the early 1990s and has since gone on to sell

over 30 million albums worldwide, with his 1993 release “Doggystyle” still regarded as one of the all-time classics of the genre. Fans can expect to hear hits such as “Gin and Juice” or “Drop It Like It’s Hot” among some newer material during the West Coast legend’s performance.

Originally geared towards fans of hip-hop and R&B, the festival has since branched out to provide a more eclectic mix with more rock-based acts.

Among those set to perform

this year are Las Vegas indie rockers The Killers, who have recently returned from a fouryear hiatus with their new album “Battle Born.”

Other acts on show include Placebo, The Roots, Mystery Jets, Crystal Fighters and Polish band Cool Kids of Death.

In previous years, artists such as Jay Z, Rihanna, Timbaland, and 50 Cent have performed at the event.

Classical masters Chopin and his Europe – 8th International Music Festival August 17-31 Various venues Warsaw The Fryderyk Chopin Institute will once again bring together some of the leading figures in the world of classical music for the eighth annual

Tickets available from z∏.125, available at ticketpro.pl

Reinventing the past WBJ’s restaurant review feature

COURTESY OF RESTAURACJA ROZPUSTA.PL

The capital has many fine eateries to choose from, but one recent addition to the city’s culinary map is trying to combine the best of the past with the techniques of the 21st century to bring something new to table.

Somewhat hidden from view, situated as it is next to Warsaw’s famous Hala Mirowska market, Restauracja Polska Rozpusta is nevertheless right in the heart of the city’s financial district, making it an ideal location for both business and after-hours dining.

Upon entering, the first thing that strikes visitors is the exquisite decor, that manages to be both refined and homely, creating a pleasant setting in which to while away a few hours over good food and drink.

The restaurant’s main menu, which is based on the

freshest seasonal ingredients, includes traditional specialties such as steak tartar, goose pate, pierogi and pig’s trotters, as well as less well-known dishes such as the Lithuanian ch∏odnik cold soup which, unlike its Polish counterpart, contains veal.

It was undoubtedly the most surprising and delicious dish during WBJ’s visit.

According to the restaurant’s charismatic manager Bo∏eslaw Dubowski, whose passion for fine dining, fresh ingredients and Polish cuisine shone through over the course of our meeting, this is the restaurant’s main aim – to both surprise and enlighten diners with the best of the region’s cooking.

In addition to dishes closer to home, the lunch menu, which costs just z∏.25 for two courses, also provides some pasta-based dishes as an alternative to the kotlet schabowy (breaded pork cutlet) and chicken breast with spinach, which are also on offer.

With exquisitely prepared desserts such as apple pie with ice cream, chocolate fondant with raspberries and meringue with seasonal fruits also part of the main menu, Rozpusta has all bases covered, providing an excellent option for diners who want to sample the true taste of Polish cuisine.

David Ingham

Reservations: 22 499-5178 kontakt@rozpusta.com.pl

David Ingham

Classical music

Zofia Ró˝alska

Polska Restauracja Rozpusta ul. Elektoralna 23 Warsaw Restauracjarozpusta.pl

For the 12th year in a row the capital’s Na Woli theater is set to host a festival review of the greatest living mime acts in the world.

Among the renowned artists set to entertain theater-goers are comedy performer Paolo Nani, a man described as “the master of gesture,” by European critics. Mime duo Bodecker & Neander Company will also perform an act which will demonstrate the beauty of true mime art in the traditional sense.

But arguably the standout appearance will come from Australian-born artist Nola Rae. Ms Rae has performed in over 60 countries worldwide and in 2008 was awarded an MBE

by Queen Elizabeth II for her contribution to drama and mime.

The festival will be accompanied by an exhibition of historical posters from the Wroc∏aw Mime Theater, which will include works by Jan Jaromir Aleksiun, W∏odzimierz Terechowicz and Andrzej P. Bytor.

For more information, log on to mime.pl

COURTESY OF TEATR NA WOLI

Snoop Lion

COURTESY OF WIKIMEDIA COMMONS

XII International Mime Art Festival 18-26 August Teatr Na Woli ul. Kasprzaka 22 Warsaw

International Music Festival.

Besides work composed by Poland’s famous son, fans of classical music will also hear compositions by Beethoven, Brahms, Grieg, Liszt, Mozart, Paderewski, Ravel, and Schumann, among others.

Festival highlights include rarely performed Polish music

by composers including Franciszek Lessel, Feliks Dobrzyƒski, Józef Wieniawski, Maurycy [Moritz] Moszkowski and Roman Maciejewski.

Chamber versions of Chopin’s concertos will also be performed for the first time by Kevin Kenner, the Casal Quartet and Grzegorz Frankowski.

David Ingham

For more information, log on to Chopin.nifc.pl

LAST WORD

AUGUST 6-19, 2012

www.wbj.pl

23

Tech Eye

Swampy summers and barbecue-enhancing tech

Otherwise, summer is pretty awesome. The sun shines every day, beer becomes a basic food group, ladies dress as though the price of fabric has skyrocketed and the number of nonecked, be-tracksuited skinheads on public transport plummets (a phenomenon presumably mirrored by a sudden influx of no-necked, be-speedoed skinheads at Baltic resort towns). Best of all though, barbecuing becomes a way of life.

If you’ve never tried it, know this: barbecuing is a mystical experience. It is an epicurean endeavor to be undertaken with girded loins and a spiritual frame of mind; a smoky celebration comprising a great rubbing of spices

The Remote Controlled Rolling Beverage Cooler cue chefs) and sold by industrial design-meets-crowdsourcing site Quirky Incorporated (Quirky.com),

walk after this product you’ve empembodies tied the coolthe holy triner, it can be ity of cookcarried via ing tools: shoulder tongs, spatustrap. Price: la and fork, $70. all incarnatHere’s ed in one one last prodsaucy uberThe Duo Quick Pop Maker uct to help tool.

The Stake is made of brushed summer taste good (and possibly stainless steel and has wooden han- alleviate swamp crotch symptoms) – dles. The fork is retractable and the the Duo Quick Pop Maker from tool can be locked open or closed. Zuko (Zokuhome.com). It works There’s not much else to say, other like this: You store the base unit in than the price: $29.99. your freezer until you’re ready to Another mighty tool for a summer make some popsicles. Pull out the cookout is the Remote Controlled base, connect it to the rest of the Rolling Beverage Cooler from Ham- unit, pour in your ingredients and macher Schlemmer (Hammacher wait 7-10 minutes.

The Duo Quick Pop Maker can be .com). What makes it mighty? First of all, this is a remote-controlled beer purchased directly from Zuko or on cooler. And second of all, this is a Amazon. Either way it’ll cost you $36.95. remote-controlled beer cooler.

This gadget is not directly related Got it?

Anyway, as every chef worth to barbecuing, true, but it could be, his/her salt knows, food tastes twice as with a little imagination. You can add good if you’re seeing double. Ham- whatever you want to the popsicle macher’s cooler should help out with mix, you see, including “non-tradithat, since it fits around 12 cans or tional ingredients” such as beer or bottles as well as ice enough to keep barbecue sauce. And that, friends, is them chilled for hours. If you can still called living the dream. ● COURTESY OF ZOKU

COURTESY OF QUIRKY INCORPORATED

Summer really ought to be the most splendidest time of year, but alas, it’s not. That’s because the hot season has a fatal flaw – it’s hot.

Indeed, summer is when the confluence of heat, humidity and professional dress code causes a terrible condition known colloquially as “white-collar swamp crotch.” This funky, pungent affliction not only ruins life for the victim, but also for anyone unfortunate to sit or stand downwind.

Not that Techeye has ever experienced it first hand (so to speak). Certainly not. But it, um, happened to our cousin once. And he suffered mightily.

and splashing of sauces; a culinary miracle to be savored and cherished and wept over in a suitably manly fashion. It can be summed up as “one part religion, two parts technology, three parts magic and four parts meat.”

You’re on your own with most of that, but Techeye can help with the technology. For starters, have a gander at the Stake all-in-one BBQ tool.

Invented by Peter Wachtel (a name now hallowed among amateur barbe-

COURTESY OF HAMMACHER SCHLEMMER

The Stake

Ever had a cousin who suffered from white-collar swamp crotch? Let us know: techeye.wbj@gmail.com

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

Katarzyna Napiórkowska Art Gallery ul. Âwi´tokrzyska 32, ul. Krakowskie PrzedmieÊcie 42/44 and Old Town Square 19/21 www.napiorkowska.pl

Galeria 022, DAP, Lufcik Królikarnia National ul. Mazowiecka 11a Gallery www.owzpap.pl ul. Pu∏awska 113a www.krolikarnia.mnw.art. pl Galeria 65 ul. Bema 65 www.galeria65.com Le Guern Gallery ul. Widok 8, www.leguern.pl Galeria Appendix 2 ul. Bia∏ostocka 9 Museum of www.appendix2.com Independence Aleja SolidarnoÊci 62 Galeria Asymetria www.muzeumniepodleglo ul. Nowogrodzka 18a www.asymetria.eu sci.art.pl 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 Galeria XX1 Al. Jana Paw∏a II 36 www.galeriaxx1.pl Galeria Zoya ul. Kopernika 32 m.8 www.zoya.art.pl Green Gallery ul. Krzywe Ko∏o 2/4 www.greengallery.pl

Simonis Gallery ul. Burakowska 9 www.simonisgallery.com State Archaeological Museum in Warsaw ul. D∏uga 52 (Arsena∏) www.pma.pl State Ethnographic Museum ul. Kredytowa 1 www.ethnomuseum.we bsite.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

National Museum in Warsaw Al. Jerozolimskie 3 www.mnw.art.pl

Warsaw Philharmonic ul. Jasna 5 www.filharmonia.pl

Polish National Opera at Teatr Wielki Pl. Teatralny 1 www.teatrwielki.pl

Warsaw Rising Museum ul. Grzybowska 79 www.1944.pl

Pracownia Galeria Wilanów Palace ul. Emilii Plater 14 Museum and Wilanów www.pracowniagaleria.pl Poster Museum ul. St Kostki Potockiego Rempex Art and 10/16 Auction House www.milanow-palac.pl ul. Karowa 31 www.postermuseum.pl www.rempex.com.pl Royal Castle Pl. Zamkowy 4 www.zamekkrolewski.com.pl

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

To advertise in WBJ’s classifieds section, contact

Ms Agnieszka Brejwo, at (+48) 222-577-526 or abrejwo@wbj.pl