Open Finance’s April 5 debut is valued at almost half a billion z∏oty
Orlen is not pleased by Gazprom's move to buy into a Czech refinery
Polish soldiers in Afghanistan destroyed a major weapons cache 5
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WWW.WBJ.PL
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VOLUME 17, NUMBER 11 • MARCH 21-27, 2011 . z∏.12.50 (VAT 8% included) . ISSN 1233 7889 INDEX-RUCH-332-127
REAL ESTATE
Since 1994 . Poland’s only business weekly in English
Aftershocks from Japan COURTESY OF WARSAW CITY HALL
Lokale Immobilia
Disaster has befallen the world’s third-largest economy, and there may be consequences for Poland
• Warsaw at MIPIM • Skyscrapers in Kraków • Siedmiogrodzka sale 15-18
Lands in transition Grzegorz W. Ko∏odko, an author and former deputy PM, looks at North Africa in light of Poland's experience 6-7
A guide to Polish business and industry
Przewodnik po polskim biznesie i gospodarce
Law firms 20-21
News . . . . . . . . . . . . . . . . . . . . . . .2-4 Industry News . . . . . . . . . . . . . . . . .5 Business Community . . . . . . . . . . .6 Listed Firms . . . . . . . . . . . . . . . . . . .7 Interview . . . . . . . . . . . . . . . . . . . .8-9 Business Environment . . . . . . . . .10 Opinion & Analysis . . . . . . . . . . . .11 Cover Story . . . . . . . . . . . . . . . .12-13 Lokale Immobilia . . . . . . . . . . .15-18 Markets . . . . . . . . . . . . . . . . . . . . . .19 The List . . . . . . . . . . . . . . . . . . .20-21 Arts & Culture . . . . . . . . . . . . . . . .22 Last Word . . . . . . . . . . . . . . . . . . . .23
¸UKASZ MAZUREK/WBJ/SHUTTERSTOCK
In this issue
Not so foreign policy
Headed for New York?
The foreign minister used his annual address to talk up the importance of domestic economics
Software giant Asseco wants to be the first Polish firm to list on the Nasdaq. But it has to convince investors first
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A GUIDE TO POLISH EXPORT will hit shelves in April 2011! For advertising and promotion opportunities contact: Agnieszka Brejwo: abrejwo@wbj.pl; (+48) 639-85-68, ext. 226
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NEWS
www.wbj.pl
Poland cautious on Libya Last Thursday the UN Security Council adopted a resolution authorizing Western military action against the Gaddafi regime in Libya. Explaining Poland’s role in the operations, Polish Defense Minister Bogdan Klich told TOK FM Radio, “We are ready to help with our transport planes. We can deploy some of our forces and our resources for humanitarian aid.” He added, “As regards the military no-fly zone [in Libya], we do not envisage taking part in its implementation with our armed forces.”
MARCH 21-27, 2011
IN THE SPOTLIGHT
Numbers in the News
Jaros∏aw Marek Rymkiewicz
15-20% is the annual growth rate of ecological food sales in Poland
4% is the latest 2011 GDP growth estimate from Micha∏ Boni, the prime minister’s chief advisor
€7.5 billion in foreign direct investment entered Poland last year
z∏.400 million in FDI is expected to flow to Polish seaports in the near future
Support for gov’t drops
Sikorski rebuffs restitution critics FM Rados∏aw Sikorski has rebuffed American criticism regarding Poland’s restitution policy. Earlier this month the Polish government suspended payments to citizens who lost property as the result of the Nazi and communist regimes, eliciting “deep dissatisfaction” from the US. “The United States gave up the right to represent its citizens in such cases [in the 1960s] and took it upon itself to pay out restitution money worth millions, which Poland then paid to the United States,” Mr Sikorski told Polskie Radio.
“If the United States had wanted to help Polish Jews, a good moment for that would have been 1943-44 … Such an intervention is now late”
EAST NEWS
In the latest CBOS poll, around 36% of Poles supported the government, down six ppts compared to November 2010. Meanwhile 30% of respondents opposed the government, representing a four ppt increase from November.
Quote of the Week
Conservative poet versus leftleaning publisher – a court showdown between the two began last week in Warsaw. On one side is Jaros∏aw Marek Rymkiewicz, a Polish poet, essayist and literary critic; on the other, Agora, publisher of Gazeta Wyborcza. The latter has brought a civil suit against the defendant for comments published last year in conservative weekly Gazeta Polska. Referring to Gazeta Wyborcza’s coverage of the controversial removal of the “Smolensk Cross,” which was erected in front of the Presidential Palace in memory of the victims of the Smolensk air crash, Mr Rymkiewicz in August described the daily’s editors as people who “want
Poles to finally cease being Poles” and as the spiritual heirs to the pre-war Communist Party of Poland (KPP). According to Mr Rymkiewicz, some of the editors of Gazeta Wyborcza were brought up to “hate the Polish cross.” Their fathers or grandfathers belonged to the KPP, which was characterized by a hatred of Poland and Poles, he told Gazeta Polska. Agora is demanding an apology and z∏.10,000 to be designated for charitable purposes. Meanwhile, Mr Rymkiewicz’s lawyer has called for the suit to be dismissed on the grounds that his client’s comments constituted an expression of opinion rather than of facts.
Having convened briefly last Thursday, the court has now adjourned until July. The Rymkiewicz-Agora controversy has galvanized defenders of the freedom of speech – some 200 supporters gathered at the Warsaw court and a number of poets and journalists have voiced their support for Mr Rymkiewicz. Born in 1935 in Warsaw, Jaros∏aw Marek Rymkiewicz is a professor emeritus at the Institute of Literary Research of the Polish Academy of Sciences. The award-winning author’s works include nine tomes of poetry, two novels and more than 10 essays, some of which have been translated into other languages.
Foreign Minister Rados∏aw Sikorski lambasts the US after a State Department official criticized Poland’s decision to suspend WWII property restitution payments
Figures in focus Weight the wages Nominal hourly labor costs in Q4 2010 (% change y/y), working day adjusted 8 7 6 5 4 3 2 1 0 -1 -2 -3 -4 -5 -6 -7
EU27
* provisional
Bulgaria* Romania*
Czech Republic
Germany
Poland
Hungary*
Greece
Source: Eurostat
Adam Zdrodowski
Company index On WBJ.pl Scenes of devastation The earthquake and tsunami that hit Japan on March 11 caused catastrophic damage to the island nation. WBJ.pl brings home the scope of the destruction with a selection of hard-to-believe images.
Ceská Rafinérská (CeRaf) ..........5 Dom Development ....................16 PGE ..............................................7 APA Markowski Architekci ........16 E.ON Energy Trading ..................7 PGNiG ..........................................5 Asseco ..........................................7 Echo Investment ........................16 PKO Bank Polski......................6, 7 Asseco Poland..............................5 ENI................................................5 Banco Santander ........................4 Formula Systems ........................5
PKP ............................................15 Polkomtel ....................................4
Bank Gospodarstwa Krajowego 6, 7 Gazprom ................................5, 11 Polska Telefonia Cyfrowa ............4 Bank Millennium........................13 Getin Holding ..............................7 Pratt & Whitney ..........................6 Bank Pekao..................................6 Grupa Capital Park ....................17 PRC Architekci ..........................17
Russia to fund nuclear plant Belarus and Russia have announced plans for the construction of a nuclear power plant in Belarus, as well as the development of bilateral energy cooperation. Both countries have engaged in preliminary agreements regarding construction in Astraviec, in western Belarus. Based on the Russian plans, the project is estimated to cost $9 billion. ●
DATELINE
Event:
The National Bank of Poland releases January and February inflation data
25-27 GLOB 2011 Event:
GLOB 2011: 17th International Fair of Tourism, Sport, Sailing and Tourist Equipment. Location: International Katowice Fair. www.glob.fairexpo.pl/
29-30 CEE BANKING SUMMIT Event:
The 4th edition of the CEE Banking Summit. Location: Hotel Polonia Palace, Warsaw. www.tcct.pl
Barlinek........................................7 Ipopema Securities......................7 Bombardier ..................................6 JW Construction ........................16
March/April MARCH 22 INFLATION DATA
Bank Zachodni WBK....................6 Inwestycja Siedmiogrodzka ......15 Pro-Invest ..................................15 PSE Operator ..............................8
Casio ..........................................23 Maspex ........................................7 PZU ..............................................5
APRIL 4 RPP MEETING Event:
The National Bank of Poland’s Monetary Policy Council (RPP) rate-setting body begins its two-day meeting.
CB Richard Ellis ........................15 McCain ........................................6 Rossmann ..................................16 CCC ............................................16 Media Expert ..............................16 SNC Lavalin ................................6 Centrica........................................5 Metro Group Asset Management 17 Sony ............................................23 Cersanit........................................7 MLP Group ................................18 CGI Information Systems ............6 MOFO Architekci ........................16
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RPP MEETING
Event:
The National Bank of Poland’s Monetary Policy Council (RPP) rate-setting body ends its two-day meeting and announces its decision on interest rates.
Stock Spirits ................................5 Tauron ..........................................7
Ciech ............................................7 NSG Group ................................12 Toyota Poland ............................13 Colliers ........................................6 Okam Capital ............................15 TriGranit ................................6, 15 Consumer Bank ..........................4 Open Finance ..............................7 TVP ..............................................5 CP Realty....................................17 Orlen ............................................5 Unipetrol ......................................5 Deichmann ................................16 Panasonic ..................................13 Deka ..........................................16 Panattoni Europe ......................18 Deutsche Securities ....................7 Parkridge Retail Development ....16
Warsaw Stock Exchange ............7 Yareal Polska..............................16
Diageo ..........................................5 Pekaes........................................15 YG Project ..................................17
NEWS
MARCH 21-27, 2011
www.wbj.pl
Foreign policy
Sikorski ties diplomacy to economics The foreign minister ‘A pragmatic stance’ stressed the upcoming Another topic to receive sigEU presidency and the nificant attention in Mr Sikoeconomy in his annual rski’s address was the relationship between economics and address diplomacy, and he stressed Poland’s growing stature. “Twenty years ago, our gross domestic product, measured in terms of purchasing power parity, amounted to around $160 billion. Today it is over $717 billion,” he stated, adding that, according to the latest IMF data, Poland was now the 20th largest economy in the world in terms of GDP (PPP) and the sixth-largest in the EU, having overtaken Sweden, Belgium and the Netherlands. The foreign minister went on to say that he wanted Poland to be not only a secure and prosperous country, but also a “serious” country, which, in his opinion, means one whose GDP amounts to over a trillion dollars. Mr Sikorski believes the Polish economy could reach this level within a decade. The economic refrain in his speech struck a chord with some observers. Marcin Zaborowski, director of the Polish institute of International Affairs (PISM), described it as reflecting the “pragmatic stance” of the current government and its “realistic take on foreign policy.” “International status is to a
Sikorski the traitor?
COURTESY OF FLICKR/POLANDMFA
Speaking before parliament last week, Foreign Minister Rados∏aw Sikorski outlined Poland’s foreign policy priorities. His speech placed particular emphasis on the sixmonth presidency of the Council of the European Union, which begins July 1. The country plans to support the accession aspirations of countries such as Croatia and Turkey, further develop the framework for the Eastern Partnership program and work towards strengthening European security policy. Mr Sikorski described the presidency as a major opportunity for the country to showcase its capabilities. “No one in the EU expects superhuman feats from us. They expect, however, that we will be an advocate of European interests, an arbiter of national interests,” he stated. He added, “We will pursue our own interests, but we will not be self-interested. Our interest lies in strengthening Poland’s image as a stable and effective country. In consolidating our good brand.”
due to its economic expansion,” he concluded.
Foreign Minister Rados∏aw Sikorski wants Poland to be treated as a “serious” country European context.” Economic strength has been the path to influence before and this could be the case for Poland as well, Mr Zaborowski alluded. “The goal is to regain Poland’s historical prestige as, for example, Spain has done over the past 30 years largely
large extent determined by the economic power of the state,” he said, adding, “The minister’s main message was that, since Poland no longer has to fight for its independence, it is time now to turn our attention to strengthening our international standing and securing a more robust position in the
Not everyone enjoyed the foreign minister’s address, however. Some of his fiercest critics simply chose not to attend, such as Jaros∏aw Kaczyƒski, the leader of opposition party Law and Justice (PiS). He boycotted the event. President Bronis∏aw Komorowski and Prime Minister Donald Tusk were in attendance and appeared to approve, unsurprisingly, but PiS MP Zbigniew Girzyƒski later lambasted the minister. “I constantly have the feeling that Mr Sikorski is trying to play the role of deputy foreign minister of Russia and Germany. He doesn’t care what Polish public opinion thinks,” he thundered. “I would really like the Polish foreign minister to represent Polish interests and talk about real issues affecting Poland and not behave as if he was aspiring to take up employment in some international concern,” he concluded. Some of Mr Sikorski’s peers in Civic Platform have since requested the Parliamentary Ethics Commission discipline Mr Girzyƒski for his comments, saying he had indirectly accused Mr Sikorski of treason and maligned his charRemi Adekoya acter.
Poland’s communist past
Martial law ruled illegal Poland’s Constitutional Tribunal has ruled that the imposition of martial law in 1981 was contrary to the constitutions of both communist and present-day Poland, as well as to international law. The judgment is mostly symbolic, said ¸ukasz Kamiƒski, head of the public education office at the Institute of National Remembrance (IPN). In his opinion, the ruling was a means to declare
publicly, through the country’s highest court, that martial law, one of the darkest episodes of communist rule, was indeed illegal. Officially, the judgment enables people who were charged with breaking martial law, as well as those who were interrogated, imprisoned or fired at the time, to seek restitution. However, “most of the victims of martial law were already able to use another act from 1991 to make legal and monetary claims,” explained Mr Kamiƒski. This new judgment will thus apply to only a small number of people, who will also need to wait until par-
liament drafts new legislation before they can make any restitution claims. The practical consequences of the judgment are further limited by the fact that they cannot be used directly against General Wojciech Jaruzelski, Poland’s last communist leader, who implemented martial law. “But it will be much harder for him to defend himself in the eye of Polish public opinion,” said Mr Kamiƒski, further stressing the symbolic importance of the Constitutional Tribunal’s decision. Martial law was in force between December 13, 1981 and July 22, 1983. It was intro-
The tanks rolled in on December 13, 1981 duced to counter growing unrest against the communist regime and to suppress any potential uprising, as the Solidarity movement was rapidly gaining support and momentum.
The 87-year-old general, still an important but controversial figure in Poland’s public life, has long maintained that martial law was necessary to avoid a potential Soviet Alice Trudelle invasion.
‘Internet censorship’ regulations abandoned Prime Minister Donald Tusk has withdrawn support for legislation that would have required almost every Polish citizen and company uploading a video to the internet to register it with the National Broadcasting Council (KRRiT). Those opposed to
the bill said this would give the government power to filter internet content. Over 80,000 signatures were collected in protest against the proposals. Many businesses also spoke out against it. Jaros∏aw Sobolewski, director general of the
Association of Internet Employers IAB Poland, told Dziennik Gazeta Prawna that the requirements were “deeply unjust towards Polish business owners.” “It’s worth listening to those who say that the internet guarantees the freedom and inde-
Poland gets summit invitation During recent talks in Warsaw, EU President Herman Van Rompuy discussed the priorities of the impending Polish presidency: the consolidated market, European security measures as well as energy and food prices. He also extended an invitation to PM Tusk to attend the March 25 summit of euro zone countries, stating his hope that “Poland will join the pact and will provide support in the pursuit of a stronger integrated governance in a united Europe.”
Presidency contract competition Thirteen companies are in the race to service the meetings and conferences due to be held during Poland’s sixmonth presidency of the Council of the EU, which begins July 1. To participate in the bid, companies were required to place a deposit of z∏.400,000. The stakes are high: around 30,000 officials from all EU countries will come to Poland and take part in 2,000 meetings in H2 2011. It is estimated that they will spend about z∏.100 million during their visits.
Jaruzelski in hospital again
COURTESY OF J. ˚O¸NIERKIEWICZ
Practical implications of the judgment will be limited, but it carries great symbolic importance
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pendence of people from the administration, legal regulations and the state,” Prime Minister Donald Tusk told journalists in the Sejm late last week. “For the time being we will abandon these regulations. I have asked the Senate to remove that part of the bill
and to return to serious discussion on the topic,” he added. A similar situation played out in 2009 when protesters effectively forced the government to drop legislation banning sites with “prohibited content.” Alexander Hayes
As WBJ went to press Poland’s last communist leader, Wojciech Jaruzelski, was in the hospital for a respiratory tract infection. The 87year-old ex-general has said that his ill health will prevent him from taking part in the ceremony of Pope John Paul’s II beatification in Rome, scheduled for May.
EC fights Poland over GMOs The European Commission has announced it will refer Poland to the European Court of Justice for maintaining its ban on GM seeds. This is a new twist in the Poland/EC row over genetically modified organisms. Poland unilaterally adopted a law prohibiting GM animal feed in 2006. ●
NEWS
www.wbj.pl
Libya
Polkomtel and PTC fined
Plans for BZ WBK
Pension reform
NATO caught napping Reform nearing final stage The government’s pension proposals are now going through the legislative motions
COURTESY OF NATO
The Office of Competition and Consumer Protection (UOKiK) has fined Poland’s number two mobile operator, Polkomtel, z∏.130 million. At the same time it fined telecom Polska Telefonia Cyfrowa (PTC) z∏.123 million. Both are under investigation for price fixing, together with P4, FM, TV Info and NFI Magna Polonia. UOKiK argues that Polkomtel and PTC have persistently obstructed its investigations.
MARCH 21-27, 2011
NATO is ”preparing for all eventualities” said Mr Rasmussen
Bank Zachodni WBK’s new owner, Spain’s Banco Santander, has met with analysts to discuss its business plans for its Polish asset. Representatives of the Spanish lender confirmed to daily Parkiet that they are not planning to merge BZ WBK with Santander Consumer Bank, which specializes in consumer loans. Santander is also not planning to re-brand BZ WBK, which will continue to operate under its own logo. ●
The secretary general admits that that the alliance wasn’t prepared for the crisis in North Africa During a visit to Warsaw last Thursday, NATO Secretary General Anders Fogh Rasmussen admitted that the ongoing unrest in Libya had caught the alliance by surprise. “The dramatic situation in Libya is a crisis on our doorstep that none of us predicted. NATO must be ready and united to respond to the full spectrum of security challenges,” said Mr Rasmussen.
He stressed, however, that NATO was not eager to wage battle in Libya, although the organization was conducting “all the necessary planning for all eventualities,” he stated. He added that three conditions had to be fulfilled before NATO can take action: “There must be a demonstrable need for our assistance, strong regional support and a clear legal basis, and that means a UN mandate.” As WBJ went to press the UN had passed a resolution calling for a no-fly zone, but NATO had not yet unveiled a strategy. Libya, for its part, had
announced that it would cease all military operations against the rebels. While in Warsaw, Mr Rasmussen attended the opening of the 4th Forum on EuroAtlantic Security. President Bronis∏aw Komorowski was also present. he said that the West had been unprepared for transformations in North Africa and the Arab world, just as it was for the collapse of the communist bloc. “Polish freedom came as a complete surprise then,” he said. Remi Adekoya
The debate over the government’s controversial pension reform shifted to parliament last week. The reform plan, which will slash the amount of workers’ monthly salaries going into private pension funds (OFEs) from 7.3 to 2.3 percent this year, was defended by Prime Minister Donald Tusk. “Help us to introduce these changes,” the PM appealed, “they are in the interest of the state, the people and of those who will govern in the future,” he added. The PM admitted that the poor state of public finances was a major reason for the move. “From the lips of the more impatient members of PiS [Law and Justice], we hear that the only reason for our repairing the pension system is the budget situation. That is to a large extent the truth. But we have to explain the source [of that debt] in order to avoid further indebting the state,” said Mr Tusk. The PM went on to repeat
his argument that, according to the government’s analysis, around z∏.200 billion of the current z∏.700 billion public debt resulted from a flaw in the existing pension system. The budget bears this cost in the form of debt taken to cover shortfalls in paying out current pensions. The opposition PiS party, meanwhile, prepared its own legislative counter-proposal. This would involve giving people the ability to choose how their 7.3 percent monthly contribution would be divided between OFEs and ZUS, the state-controlled social security fund. “These are changes which are expected by Poles,” said MP Ma∏gorzata Sadurska, who presented PiS’s proposals to the Sejm. The party’s proposal was voted down by the Sejm, however. The government’s proposals have now been sent to the Sejm’s Public Finance Commission for further consultation. The government has said it wants the changes to come into effect as of May this year. Remi Adekoya
Afghanistan Investing in Poland 2011 is available now!
presents
We have also launched a new website for investors! For investment news and analysis, visit: www.investinginpoland.wbj.pl To order a print copy or CD-ROM version of the publication, e-mail kwilinski@valkea.com or call +48 (22) 639 85 67 ext. 208
Polish forces destroy major weapons cache Elite Polish troops have completed several successful missions in Afghanistan this month Members of GROM, Poland’s special forces unit, have destroyed a cache of weapons in Afghanistan, the Polish Military Contingent in Afghanistan has revealed. Working together with Afghan security forces, Polish troops flew to a site identified by counter-intelligence officers, where they found a shack filled with rockets and grenades. The site was also used for assembling land mines. The commandos estimated that the cache was large enough to destroy several armored transports. The mission was not without risk. According to Polish daily Gazeta Wyborcza, a group of men, presumed to be Taliban, began appearing in the vicinity while the Polish troops were inside the building. The troops withdrew and destroyed the building before evacuating the site.
COURTESY OF SENIOR SO ADAM ROIK
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Polish troops in Afghanistan had an eventful month This was only the latest incident this month involving Polish troops in Afghanistan. In mid-March, soldiers stationed in Ghazni were involved in the capture of a man named Abdul Haq, described by the International Security Assistance Force (ISAF) as a key figure in the Jahadi terrorist organization. “His name was on the ISAF’s list of priority goals in Afghanistan,” Captain Dariusz Kudlewski told TOK FM. Working together with Afghan police, Polish troops
apprehended Mr Haq at a roadblock on Highway 1. The arrest was said to have taken the Taliban leader completely by surprise. Materials found with Mr Haq indicated that he had been actively operating in the local district. The ISAF, which includes Polish forces serving in Afghanistan, has attributed numerous attacks on allied forces to the Jahadi group. These include a rocket attack on a Polish military base and mine-laying on roads. Alexander Hayes
INDUSTRY NEWS
MARCH 21-27, 2011
www.wbj.pl
IT
Asseco Poland considers Nasdaq debut Asseco Poland, one of the country’s leading computer software producers, is considering making a debut on the Nasdaq, the its top executive revealed last week. The company is currently in talks with its investors over the plan and is due to make a decision by the end of March, company president, Adam Góral, told reporters. At a press conference at the Polish Embassy in Tel Aviv, Mr Góral said the company would only make the move if it could attract investors. “We would be the first Polish company to list on the Nasdaq so we have to attract people. …
COURTESY OF NASDAQ
The IT giant wants to attract Polish investors for a launch on the American bourse
Asseco wants to see its stock symbol in the bright lights of New York City If the Polish market doesn’t understand it, we shouldn’t do it. We have to attract Polish investors to this idea,” he added.
During his visit, Mr Góral toured Formula Systems, an Asseco subsidiary already listed on the Nasdaq that the
Insurance
Polish insurance-market leader PZU has booked a profit of z∏.2.44 billion for full year 2010, a z∏.1.32 billion drop compared to 2009. The company attributed the decline to the payout of compensation for flood damage, which cost PZU around z∏.600 million, Andrzej Klesyk, PZU’s president, wrote in a letter summarizing the company’s performance in 2010. The fourth quarter saw some improvement. PZU paid out compensation worth
z∏.2.45 billion in Q4, as compared to z∏.2.67 billion in the last three months of 2009. Analysts had estimated the figure would amount to z∏.2.61 billion. The company’s gross premium written in the fourth quarter of 2010 amounted to z∏.3.6 billion, exceeding analysts’ expectation. The figure had been forecast at z∏.3.46 billion. “The gross premium written is bigger than in Q3 2010, which is a success, because historically the last three months are weaker than in the previous quarters,” explained Mr Klesyk.
Gazprom eyeing Orlen’s Czech asset Italian energy company ENI intends to sell its 32.44 percent stake in top Czech refinery Česká Rafinérská (CeRaf). The news was announced last week by Unipetrol, a unit of Polish oil giant Orlen and owner of 51.22 percent of CeRaf. Russia’s Gazprom has been identified as the potential buyer. “We confirm that, as a shareholder in CeRaf, we have this information,” said Unipetrol spokesperson Bořek Konečný. “Our position is that the issue should be discussed in detail by shareholders during CeRaf’s general assembly.” Asked about the situation, a representative of Gazprom said that management was still getting acquainted with ENI’s
Natalia Kazik
Consistently ensuring a profit
PZU sees net profit drop The insurer was soaked by flood damage claims
company acquired in November 2010. The controlling stake gained by Asseco was worth about $145 million.
Asseco’s president used the visit to emphasize the significance of the Israeli IT sector, which boasts a large number of IT experts. “We are coming here because we want to learn, because we are impressed by Israeli achievements,” he said. He also explained the strategic importance of the step, stating that “Our global ambitions are strongly connected to the American market.” He emphasized that Israel is the “best bridge” to achieve this goal. Moreover, Mr Góral told Reuters in February that the company has allocated $200$250 million for acquisitions in 2010. “If we agree [on an acquisition] we’ll grow rapidly and for such growth I’m sure we will need the Nasdaq,” Mr Góral explained.
offer, which apparently includes numerous assets in different countries. “Under a Strategic Partnership Agreement signed in 2006, Gazprom routinely looks at the proposals it receives from ENI on acquisition of the Italian company’s assets in third countries,” the representative said in a statement sent to WBJ. “No decisions have been taken so far.” ENI could not be reached for comment. Unipetrol holds preemptive rights to ENI’s stake in CeRaf, but blocking a Russian purchase could prove costly. Price estimates put the value of the stake at hundreds of millions of dollars. Katarzyna Piasecka
Revealing information about a potential dividend payout this year, PZU’s president told Parkiet, “The board hasn’t made the decision concerning sharing the profit yet. We have said ... that we will recommend [that the profit is shared] closer to the upper spread, which is around 45 percent of the profit.” The firm’s management wants to increase the upper limit of the spread, however. Talks regarding this issue “should be held before the annual shareholders’ meeting,” according to Mr Klesyk. Evaluating PZU’s expectations for 2011, Mr Klesyk
PZU’s consolidated net profit (in z∏. billions), 2005-2010
4.0 3.5 3.0 2.5 2.0 1.5 1.0 0.5 zł.bln 2005
2006
2007
2008
2009
2010
Source: PZU
said, “We are preparing an offer of additional insurances in group insurances, we don’t expect any one-off unfavorable occurrences, we have no connection to the
situation in Japan and we are supervising the financial situation of our reinsurers, who also operate in Japan,” he explained. Natalia Kazik
IPOs
June 30 debut for miner JSW The IPO could be worth up to z∏.2.5 billion, but JSW’s unions are not amused at the prospect Jastrz´bska Spó∏ka W´glowe (JSW), the EU’s largest producer of coking coal, is set for a June 30 debut on the Warsaw Stock Exchange. Speaking before the Sejm on Thursday, Krzysztof Walenczak, undersecretary of state at the Treasury, revealed the information. “We have no delays in regards to preparing the debut. There are no problems from the technical side. The debut of Jastrz´bska Spó∏ka W´glowa is ready for June 30,” he said.
JSW is 100 percent owned by the Treasury, which intends to hold on to “more than 50 percent” of its shares. In a January interview with the Polish Press Agency, Jaros∏aw Zagórowski, president of the firm, estimated its value at between z∏.3-5 billion. JSW’s unions are not pleased with the government’s plans. On Wednesday, a delegation of labor union members met with Treasury Minister Aleksander Grad to discuss the matter. The meeting apparently did nothing to assuage their concerns, however, and union leaders are threatening to strike. “Minister Grad tried to convince us that the partial publication of shares is not a
privatization process. We don’t agree with this. Privatization begins with the sale of one share,” S∏awomir Koz∏owski, head of the Solidarity union in JSW, told WNP.pl The unions are demanding that the government maintain a controlling stake in the company, that the majority of funds raised by the sale go back into the firm rather than into the budget, and that jobs be guaranteed. JSW earned a z∏.1 billion consolidated net profit for 2010, with its mining operations earning z∏.600 million and its coking operations z∏.300 million. The company intends to invest around z∏.1 billion a year. Alexander Hayes
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TVN top in market
After a long reign, public broadcaster TVP has been dethroned as the largest television programming provider in Poland in terms of revenues. Poland’s television throne has been assumed by private Polish network TVN and analysts say times are changing for Polish TV, as the average TVN or Polsat viewer is seen as a more attractive target for advertisers.
Diageo to buy Stock Spirits? UK-headquartered premium drinks company Diageo is interested in purchasing Polish drinks brand Stock Spirits, Dow Jones reports. Stock Spirits is owner of, among other brands, Czysta de Luxe, one of the most popular vodka brands in Poland. The company is valued at $1 billion. Diageo, owner of the Smirnoff and Johnnie Walker brands, has yet to comment on the speculation.
PGNiGCentrica swap talks Poland’s gas monopolist PGNiG is negotiating a deal with British energy company Centrica which would give it access to conventional gas and oil deposits in Norway and the UK, Dziennik Gazeta Prawna reports. In exchange, Centrica will receive a concession to search for shale gas in Poland. Centrica is the largest supplier of electricity and natural gas in the United Kingdom.
No rail funds for roads The European Commission has said that Poland cannot use funds which were originally earmarked for railway investments for building new roads, Rzeczpospolita reports. The funds in questions amount to €1.2 billion in value. Poland requested that the EC allow it to transfer the funds at the beginning of 2011. ●
6
BUSINESS COMMUNITY
www.wbj.pl
MARCH 21-27, 2011
Chambers of Commerce Corner News
Upcoming events
St Patrick’s Day Business Mixer
At its annual Gala, the French Chamber of Industry and Commerce in Poland (CCIFP) feted Polish President Bronis∏aw Komorowski for his contribution to PolishFrench relations. Mr Komorowski was awarded the Grand Prix CCIFP 2011. The award was received by Olgierd Dziekoƒski, state secretary at the Chancellery of the President. Mr Dziekoƒski read a letter from Mr Komorowski in which he underlined that Polish-French relations spring from a long tradition and that in choosing Paris for his first official visit, he had wanted to express the importance of these relations. Mr Komorowski also praised the role of the CCIFP in supporting French investors and entrepreneurs in Poland, as well as Polish exporters to France. CCIFP president Maciej Witucki stressed the importance of President Komorowski’s actions and declarations to re-launch cooperation between Poland, France and Germany through the Weimar Triangle. Mr Komorowski hosted a Weimar Triangle meeting in Warsaw in February, attended by French President Nicolas Sarkozy and German Chancellor Angela Merkel. This year’s gala brought together top executives of the largest French firms in Poland, who together represent €14.3 billion worth of investments. After the ceremony, guests were treated to a four-course meal prepared before their eyes by Polish and French chefs Karol
Date and location: Thursday March 24, Paparazzi Restaurant at the Manufaktura Commercial Center, ul. Karskiego 5, ¸ódê AmCham will hold a business mixer in the city of ¸ódê on Thursday March 24. Participants will have the opportunity to talk to experts from Gildia Anio∏ów Biznesu about possibilities of investing in innovative projects in Poland. RSVP to office@amcham.pl Phone: (+48) 22 520 5999 Secretary of State Olgierd Dziekoƒski (right) picked up the award for President Komorowski from CCIFP president Maciej Witucki (left) Held at the Canadian Embassy in Warsaw, the event was attended by over 140 people, including managers from Bank Pekao, Bank Gospodarstwa Krajowego, PKO Bank Polski, Bank Zachodni WBK and Colliers. Some of PCCC’s larger Canadian members, such as Pratt & Whitney, Bombardier, McCain, CGI Information Systems and SNC Lavalin, were also present. Upcoming events include a spring business mixer and NHL Playoff Night, as well as a visit from a group of EMBA students from Concordia University of Montreal. Contact about chamber events and membership can be directed to Eileen Gricuk at e.gricuk@pccc.pl
Okrasa and Nicolas Adam, combining specialties from the two countries. Singer Kayah, accompanied by accordionist Marcin Wyrostek, closed the evening with a performance including classic French tunes such as “La Vie en Rose,” and “J’ai Deux Amours.”
New blood at the PCCC The Polish Canadian Chamber of Commerce started the year with new management and is planning a series of activities this spring. At a board meeting held last October, Eileen Gricuk was appointed executive director. She replaced June Lindborg, who will be leaving Poland this spring. Ms Gricuk was born in Vancouver, Canada, and has been settled in Warsaw for almost 10 years. Her professional background includes auditing, banking, recruitment consulting and personal leadership coaching. “I am proud to see Canadian investment and Canadians in Poland, and I would like to see more awareness of how Canadians have and continue to contribute to economic and cultural life in Poland,” said Ms Gricuk. Other new board members include Joanna Ksià˝kiewicz from SNC Lavalin and Tomasz Lisiecki from TriGranit. The PCCC kicked-off the year with a Mid-Winter Reception, co-hosted by Canadian Ambassador to Poland Daniel Costello.
BPCC and the Royal Wedding Date and location: Friday, April 29, at the InterContinental Hotel, Warsaw The British-Polish Chamber of Commerce will celebrate the marriage of HRH Prince William of Wales and Miss Catherine Middleton at the InterContinental Hotel in Warsaw on April 29. The BPCC is offering an exclusive partnership package for the event. The partner will receive priority seating at a table for 10, the display of their logotype and a champagne toast and lunch reception. The host of the event will be HM Ambassador Ric Todd. For sponsorship opportunities please contact Izabela.Niewinska@BPCC.org.pl
PDF Committee Meeting with Joanna Kluzik-Rostkowska Date and location: Thursday, March 31 at 11:00 am at the AmCham Boardroom (Warsaw Financial Center, ul. Emilii Plater 53, 14th floor) AmCham’s Political Discussion Forum Committee will host a meeting with Joanna Kluzik-Rostkowska, leader of the new political group Poland Comes First (PJN). Miss Kluzik-Rostkowska is a former minister of labor & social policy and a former Law & Justice member. She will describe PJN’s policies and her opinions on the outlook for Poland’s economy.
COURTESY OF CCIFP
CCIFP awards Bronis∏aw Komorowski
AmCham Business mixer
COURTESY OF CCIFP
The American Chamber of Commerce in Poland and the Irish Chamber of Commerce in Poland held a St Patrick’s Day business Mixer on March 15. Lemongrass, an oriental Restaurant and bar, played host to the event. Special guests of honor at the event included Mr Eugene Hutchinson, ambassador of Ireland to Poland, and Mr Lee Feinstein, ambassador of the United States to Poland. Warsaw Business Journal was a media patron of the event.
Kayah performed classic French tunes
RSVP to barbara.pocialik@amcham.pl
LISTED FIRMS
MARCH 21-27, 2011
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M&A
IPOs
WSE eyes energy market
Open Finance plans half-billion z∏oty IPO
COURTESY OF THE WSE
The debut will be the biggest in months
The WSE could soon gain control of PolPX
This time the Treasury is willing to sell its stake Warsaw Stock Exchange (WSE) head Ludwik Sobolewski revealed last week that the Polish bourse is in talks to buy the Polish Power Exchange (PolPX). The WSE already owns 2.32 percent of TGE, the firm which runs PolPX, and it is currently discussing the acquisition of a controlling stake with other shareholders. These include the Treasury
(22.34 percent) as well as bankrupt firm Elektrim, Germany’s E.ON Energy Trading and top Polish utility PGE (each 10 percent). According to daily Puls Biznesu, Mr Sobolewski said that foreign exchanges’ attempts to take control of the Polish energy market were dangerous. A bid for TGE has been expected since last December, when the main bourse opened its own power market, the WSE Energy Market poee. At the time, TGE
warned that having two energy trading platforms in the Polish market was “crazy.” Treasury Minister Aleksander Grad announced at that time that the government would be willing to sell its stake in TGE to the WSE. The opening of a rival energy market was a blow for TGE, which has been operating for 11 years and lists 44 companies. The exchange trades electrical power, liquid and gas fuels, emissions credits and property rights.
Financial advisory Open Finance has published its prospectus and plans to join the Warsaw Stock Exchange on April 5. Book-building for a 46 percent stake in the company will end this Tuesday and the maximum price per share for individual investors has been set at z∏.19.50. The value of Open Finance’s debut is z∏.482.6 million, the biggest in Warsaw since the WSE’s own z∏.1.2 billion IPO in November. Marcin Jab∏czyƒski, an analyst at Deutsche Securities in Warsaw, was optimistic that the debut would be a success and was not overly worried about recent turbulence in global markets. “I think it will be good for the buyers, because the valuation could include a partial discount,” he said. “External conditions are probably less supportive today than they were a few months ago, but, on the other hand, there is place in the market now for prime
quality assets,” he added. The company has said that up to z∏.80 million from the proceeds of the IPO will be used for acquisitions, but declined to mention specific acquisition targets. According to Mr Jab∏czyƒski, potential acquisition targets, which include brokerage houses, mutual funds and property insurance firms, should not comprise major players. Open Finance’s strategy has not been to buy readyassets, but rather to grow organically, he explained. Going forward, Open Finance, which is currently responsible for between 12 and 15 percent of mortgage origination in Poland, is planning to develop its savings division. A wise choice, according to Mr Jab∏czyƒski. “With the rising level of wealth, government changes to the pension fund scheme and current demographic trends, I think people will become increasingly interested in long-term saving plans,” he said. Alice Trudelle
Tauron, Poland’s secondlargest utility, earned z∏.15.4 billion in sales revenues last year, bettering its 2009 result by 13 percent. Its consolidated net profit hit z∏.991.38 million, marking a 4.5 percent y/y increase. Chief financial officer Krzysztof Zawadzki, speaking to TVN CNBC, said that Tauron intends to increase its net profit to z∏.1.1 billion this year. Brokerage Ipopema Securities, for one, has forecast the same figure for Tauron’s 2011 profit. Regarding the firm’s 2010 results, Ipopema analyst Arkadiusz Chojnacki noted that net profit had exceeded expectations, but that profitability had disappointed. One of the main factors influencing Tauron’s low profitability, Mr Chojnacki said, were problems with coal exploitation. “These problems, however, no longer exist,” Mr Chojnacki said. As such, he added, Ipopema Securities expects
the energy firm to improve its profitability this year. Tauron’s EBITDA increased by nearly five percent in 2010 and amounted to z∏.2.8 billion. The group also noted growth in energy production and sales, mainly due to growth in client numbers. According to a statement posted on its website last week, Tauron plans to pay out 30 percent of its 2010 profit in dividends. This is in line with its 2010-2012 dividend policy,
which calls for payouts of at least 30 percent. The Katowice-based Tauron capital group was founded in 2006. The company generates and distributes power and heat and owns coal mining assets through a number of subsidiaries. The utility joined the Warsaw Stock Exchange’s blue-chip WIG20 index in December 2010. Its stock ended trade on Friday at z∏.6.46, up 0.3 percent on the week. Katarzyna Piasecka
Power performance Tauron’s consolidated sales revenues and net profit (in z∏. millions), 2009-2010 20,000
Sales revenues
Net profit
15,000
10,000
5,000
zł.mln 2009
Economy Minister Waldemar Pawlak invited companies from Romania to begin trading on the Warsaw Stock Exchange. Mr Pawlak discussed this with Ion Ariton, Romania’s minister for trade and business environment, at the Polish-Romanian Economic Forum last week in Warsaw. A number of Polish firms are already active in Romania, including Maspex, Ciech, Asseco, Barlinek and Cersanit.
State wants to keep PKO The Polish government wants to amend PKO Bank Polski’s articles of association so that it can sell off a large stake of the company without surrendering control. Its proposals would affect everyone except for the Treasury and stateowned Bank Gospodarstwa Krajowego (BGK). ●
Contact: Miros∏aw Stefanik ms@pnplaw.pl
Energy
The number-two utility also saw sales revenues grow by double-digits
Romanian firms on the WSE?
Legal News
Katarzyna Piasecka
Tauron boosts profits
Trade plans for Polish presidency of the Council of the EU The list of priorities for the Polish presidency of the Council of the EU includes, among other things, the issue of adjusting European contract law to make cross-border online trade within the bloc easier and more efficient. Nowadays, neither consumers nor entrepreneurs are able to fully enjoy the possibilities of the internal EU market. According to research conducted by the European Commission, in approximately 60 percent of electronic cross-border offers, consumers were unable to purchase goods because the seller refused the transaction. According to the Polish Justice Ministry, this is partly due to differences in member states’ legal systems and a lack of knowledge about provisions binding in other countries. Thus entrepreneurs are often afraid to offer their products to consumers in other member countries. Poland wants to do away with obstacles to cross-border online trade in the EU area. The country’s initiative would see a universal set of rules drawn up which stipulate the form of contract, its terms and conditions, the rules of guarantees and warranties. According to the Justice Ministry, buyers and sellers will be free to decide whether to apply these rules, meaning they would only be applicable if the parties decided they would be.
Suspension of activities and accounting obligations At its March 4 session, the Sejm adopted new provisions to the Act on Accountancy. The amended Act, which has now been submitted for debate in the Senate, allows entrepreneurs who have suspended their business activities the ability to also suspend their accounting books. Moreover, entrepreneurs who conduct business as capital companies will not have to convene shareholders’ meetings if business activities have been suspended for at least one full financial year.
Changes to the Act on Freedom of Economic Activity The Sejm has started working on amendments to the Act on Freedom of Economic Activity and to other laws. The changes are intended to make procedures more flexible and fully workable before the Central Register and Information on Business Activity is launched on July 1, 2011 (as currently planned). The major assumptions of the new legislation are: the abolishment of the obligation to define, by decree, the form of a motion for registration in the Register; the ability to delete entrepreneurs from the Register who have been banned from their profession; and the possibility for entrepreneurs to decide on the form of taxation via personal income tax. ●
BROUGHT TO YOU BY PETER NIELSEN & PARTNERS LAW OFFICE
2010 Source: Tauron
7
INTERVIEW
www.wbj.pl
Deputy finance minister resigns Deputy Minister of Finance Dariusz Daniluk has tendered his resignation. Mr Daniluk stated that the move was made for personal reasons. He will, however, retain his position as head of the Bank Guarantee Fund and his membership in the Polish Financial Supervision Authority. No decisions have yet been made as to the redistribution of Mr Daniluk’s responsibilities.
PolandGermany energy link State-owned transmission system operator PSE Operator will build a new energy link with Germany by 2020. It has signed a contract with German operator 50Hertz Transmission to this effect, Rzeczpospolita reports. If earlier estimates predicting a 3% increase in demand for energy come true, the new source of exported energy will be indispensable, some experts say. ●
MARCH 21-27, 2011
Politics and economics
Lessons of the past Grzegorz W. Ko∏odko, a former deputy prime minister and finance minister, looks at the situation in North Africa and the Middle East in light of Poland’s own political and economic transformation Alice Trudelle: You have written about the parallels between Eastern Europe in 1989 and North Africa and the Middle East in 2011. Do the two situations have much in common? What can we draw from Poland’s experience? Grzegorz W. Ko∏odko: I remember how cheerful was the day when we signed Poland’s historical Round Table Agreement on April 5, 1989. But then comes the day after. The major lesson from the Polish experience is that when people succeed in overthrowing a regime they don’t like, they must work at least for another generation. Over the last 22 years many problems have been solved, but others have emerged. So, in a generation, we will see how successful the countries now rejecting authoritarian regimes in North Africa and the Middle East will be. Will they be successful like Poland, Slove-
nia, Estonia, or less so, as Belarus, Ukraine and Kyrgyzstan? One must also be careful while making comparisons. Today’s Morocco and Saudi Arabia are as far apart as were Poland and Romania before transition. In 1989 in Poland we had a law on foreign direct investment, an anti-trust law, a two-tier banking system, and 20 percent of GDP was coming from the private sector. This was not the case in other former socialist countries, with the exception of Hungary and the former Yugoslavia, which were also partially liberalized. Therefore, I would say there are more similarities between Libya now and Romania then, than between Morocco and Saudi Arabia now. Yet the Polish lesson is clear: for lasting success it is necessary first to create a mechanism of political negotiations between different parties, intellectual and political leaders.
COURTESY OF GRZEGORZ W. KO¸ODKO
8
Professor Ko∏odko believes Poland’s political and economic transition since 1989 could have achieved “much more” From the economic perspective, what are the similarities and differences between 1989 and 2011? The similarities are mostly superficial. They are limited to things like people on the streets and what makes the front page news. But even here there are striking differ-
ences: when people were on the streets [in Poland] in the late 1980s, it was not shown live on CNN, it was not widely followed on satellite TV or on the internet. Western oversimplification focuses on the fact that then and now people demonstrated against authoritarian regimes,
calling for freedom and democracy. But the economic roots of these protests are different. In my part of the world, beginning in Poland, protests were very much related to the fact that major shortages of goods and services were coupled with price inflation; it was described as
INTERVIEW
SOURCE: WIKIMEDIA COMMONS
MARCH 21-27, 2011
“shortageflation.” From this perspective, the situation in Poland in the late 1980s was the worst in the region. But, from another viewpoint, Poland then, together with Hungary, was also the leader of market-oriented reforms and this made it easier to leap towards the transition to a market economy, civil society and political democracy than in the former Soviet Union or in orthodox communist countries like Bulgaria or Albania. The grounds for the protests we are witnessing now in North Africa and the Middle East are also partly economic in nature. But this time the major causes are high income inequality, social exclusion, very high rates of unemployment, especially among the younger generation, and widespread corruption. Between then and now, the world has also changed. At the turn of the 1980s and 1990s, the Cold War was still a reality and, from an economic viewpoint, the contemporary phase of globalization was only gathering momentum. There was neither as much free-moving capital, nor free flow of trade, people, information and ideas. American policy, especially regarding Egypt now and Poland then, also constitutes an important difference. Interestingly, half of Poland’s and Egypt’s foreign debts were written off in the early 1990s. But for the past 30 years, conditional upon upholding a peace deal with Israel, Egypt has been receiving substantial aid from the US, about $2 billion annually, while Poland during the 1980s was under tough economic sanctions imposed by the US and other Western countries. Isn’t it a conspicuous difference that the change in Poland in 1989 was in part caused by American sanctions and the change in Egypt came so late in part because of American financial support? In your opinion, has Poland’s transition been successful? We have been relatively successful, but we could have accomplished much more, without the early 1990s’ ill-
advised “shock therapy” – or shock without therapy, as I prefer to call it – and overcooling of the economy in the late 1990s. I am also far from praising the current government’s response to the global economic crisis. The fact that we are not in recession doesn’t mean that Poland is not in crisis. In 2010 GDP growth stood at a decent 3.8 percent, but it could be much better. What’s more important, the absolute investment level has declined, because businesspeople are losing trust in the future of the Polish economy. It is a very serious signal of crisis. Secondly, the economy is running at somewhere between 76 and 78 percent of existing capacity. And even when this is fixed, Poland will still face the consequences of the ongoing technological lag caused by meager investments. This might well undermine Polish competitiveness in the years to come. A structural crisis is also looming over the labor market, because 1.8 million people, mostly educated, have left Poland since we entered the EU in 2004. Some of them may decide not to return and there will be an additional wave of emigration after Germany and Austria open their labor markets on May 1. This is coupled with one of the highest rates of unemployment in the EU, now hovering around 13 percent. And last, but most difficult to overcome, is the mounting structural fiscal crisis. How do you go from a fiscal deficit level of almost eight percent of GDP to below three percent in a sensible period of time, while balancing business and entrepreneurship on the one hand, and social cohesion on the other? It is not just a question of meeting the Maastricht criteria; it is a matter of economic common sense. As I argue in my new book, “Truth, Errors, and Lies: Politics and Economics in a Volatile World,” in the longterm culture is also a very important ingredient of the process of change, yet it is too often neglected by economists. We like measurable things: interest rates, exchange rates,
tax rates, output, input, inflation, unemployment, profit rate of return. But how do you measure values, integration, cohesion, culture? And yet they are crucial factors for longterm social and economic development. Negligence of the cultural aspects of economic activity, together with an inadequate building of institutions and bad regulation of the market economy are major factors of economic under-performance and result in social dissatisfaction and political unrest. If these matters were properly addressed, as has been the case in certain post-communist countries, we would now see success stories. And this is the main message we are sending to the people of North Africa, the Middle East, and elsewhere. Polish political leaders, intellectuals and experts must be much more active in offering technical support for countries in need. As someone involved in the transition that began in 1989, what’s the best advice you can offer those engaged in economic and democratic transition today? To people in Cairo, Damascus, Tripoli or Algiers today, I would say: be realistic. To revolt is the easiest part of the game. To build something new is very challenging and you are not bound to succeed unconditionally. ● Professor Grzegorz W. Ko∏odko, a key architect of Poland’s economic reforms, heads the thinktank TIGER (Transformation, Integration and Globalization Economic Research) and teaches at the Kozminski University in Warsaw. He served as deputy prime minister and minister of finance between 1994 and 1997 and again in 2002-03. He has published extensively on economy, transition and development policy. His latest interdisciplinary book, “Truth, Errors and Lies: Politics and Economics in a Volatile World,” (www.volatileworld.net), was published by Columbia University Press earlier this year. Prof Ko∏odko invites WBJ readers to discuss this and other matters on www.facebook.com/kolodko.
www.wbj.pl
9
10
BUSINESS ENVIRONMENT
www.wbj.pl
Inflation
CPI not rising as fast as expected But producer price growth is putting pressure on the market Polish consumers are not seeing prices rise as fast as most analysts had expected, data released last week showed. Nevertheless, CPI data for February came in at 3.6 percent y/y, slightly above the central bank’s inflation target zone of 1.5-3.5 percent. The market consensus forecast had been 3.8 percent. Analysts chalked the surprise up to lower-than-expected price growth in utilities and a smaller increase of energy prices in monthly terms. Price
Inflation on the rise Poland's CPI (% change y/y), January 2010-February 2011 4.0 3.5 3.0 2.5 2.0 1.5 1.0 0.5 %
January 2010
February
March
April
growth for food and transport was below forecasts. Economists also took the data to indicate that the government’s VAT hike of one percent, which came in at the beginning of the year, had already passed into consumer prices in January.
The National Bank of Poland's main reference interest rate (%), Jan 2009-Feb 2011 5
4
Jan-Feb 2011
Mar-May 2009
Feb 2009
2
June 2009-Dec 2010
3
Jan 2009
June
July
August September October November December January 2011
February
Source: Central Statistical Office
Another hike on the way?
1
May
% Source: National Bank of Poland
CPI data for January was also revised downwards, from the previously released 3.8 percent to 3.6 percent. Together, the data muddied the ratehike picture, since high inflation would have provided a strong argument for the Monetary Policy Council to raise rates. Still, since the figure was outside of the central bank’s tolerance level, many analysts still feel that an April 5 rate hike is on the cards. Indeed, BZ WBK economists wrote in a statement that they forecast inflation to remain above three percent (the NBP’s target is 2.5 percent) for the rest of the year. But while consumers are being spared significant rises in prices, producers are not. The Producer Price Index rose by 7.3 percent, meaning producers are likely under significant pres-
sure to raise prices for end consumers. The figure was the highest since October 2004, and significantly outstripped market expectations of 6.6-6.7 percent. The rise was credited to a surge in prices in the mining sector, as well as in metals, chemicals, food and other manufacturing sectors. Andrew Kureth
MARCH 21-27, 2011
Slow wage growth, strong employment Wages in Poland aren’t rising as fast as some had expected, despite Poland’s economy growing at a healthy clip and inflation above the central bank’s target, data showed last week. Poland’s Central Statistical Office reported that corporate sector wages grew by 4.1 percent y/y, well below the 4.9 percent expected by the market, to z∏.3,422 per month. The figure represented growth of 0.9 percent month-on-month. The data brought into question what many analysts had assumed was a sure bet: that Poland’s Monetary Policy Council (RPP) would raise interest rates at its April 5 meeting. Low pressure on wages was one of the justifications RPP members had used
for not raising rates at the previous meeting. “The wage figures show that wages are under control. There is no inflation pressure here,” Arkadiusz KrzeÊniak, chief economist at Deutsche Bank in Warsaw, told Reuters. “These figures, along with lower than expected inflation, are lessening the pressure to raise rates for the RPP,” he added. Interestingly, though wages aren’t rising as much as expected, employment is. The statistical office said that corporate employment rose 4.1 percent y/y in February to 5.51 million people, in line with expectations and higher than January’s growth of 3.9 percent. Analysts widely hailed this growth as AK “strong.”
Double-digit industrial production growth beats market forecasts Poland’s economy continues to power along, industrial production data showed last week. Industrial output rose on an annualized basis by 10.7 percent in February, well above the market forecast of 9.9 percent.
Economists theorized the strong numbers were fueled by continuing healthy demand from Germany, Poland’s largest trading partner. At the same time, construction output grew by 23 percent y/y, its best performance since
2007. The figure was up from 11.2 percent in January and significantly exceeded forecasts. Analysts said the high growth could signal a recovery in investment, whose figures have disappointed recently. AK
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OPINION & ANALYSIS
MARCH 21-27, 2011
www.wbj.pl
11
Nuclear power after Fukushima T
he 27 countries in the European Union derived 31 percent of their electricity needs and 14.6 percent of their primary energy consumption from nuclear power in 2010. In roughly the last eight years, there has been a considerable momentum on the continent to boost that capacity. Countries that had halted the construction of new reactors (Germany and Sweden) or effectively abandoned nuclear power altogether (Italy and Poland) had been considering reversing their moratoriums, phase-outs and outright bans. Three factors spurred the momentum toward a nuclear Renaissance in Europe: Almost 25 years of accident-free nuclear industry since the Chernobyl disaster in 1986; technological improvements in the design of reactors; and a geopolitical impetus to wrestle the continent from the grip of Russian energy exports following a number of politically motivated Russian natural gas cutoffs. There has also been a concerted push by Europe’s indigenous nuclear energy industry to open up the potential EU market of 400 million people for the sale of its latest generation of nuclear reactors. The March 11, 9.0-magnitude Tohoku earthquake in Japan and its subsequent effect on the Fukushima Daiichi and Daini nuclear power plants has dampened – and
even ended – enthusiasm for nuclear power in some European nations, however. The combination of the powerful earthquake and massive tsunami that hit Japan’s Pacific Coast where the two affected power plants were situated sparked the nuclear crisis in Japan. The Fukushima accident is still ongoing and developing. It is at this point assumed that the reactors in the nuclear plants in question were shut down immediately following the seismic activity, as they were designed to. The onsite backup generators that were supposed to cool down the core also shut down about an hour after the earthquake, however. The leading theory is that they were damaged by the subsequent tsunami. Europe is unlikely to see an earthquake of similar proportions and even less likely to see a similar tsunami. Even so, a tradition of anti-nuclear industry activism in a number of European countries and contemporary political dynamics could engender a move against a European nuclear revival post-Fukushima. It is important to emphasize that not all European countries are similarly situated. France and Germany, for example, approach nuclear energy from diametrically opposed perspectives. In France, the nuclear power industry – and
the military capacity it spawned – for decades has been perceived as a guarantor of French independence and global relevance, whereas in Germany, nuclear power has negative connotations due to the country’s nearly 50-year status as the likely nuclear battlefield between the Cold War superpowers. Environmental movements accordingly have evolved along different lines, and national psyches approach nuclear power from starkly different perspectives.
The Polish case The Polish government only recently announced its decision to create a legal framework for building nuclear power reactors. The decision will likely be voted on by the parliament in June. Support for nuclear power is strong in Poland, with data from the 2010 Eurobarometer survey indicating that 30 percent of respondents wanted an increased use of nuclear power, the highest results in the European Union. With nearly 40 million people and Central Europe’s largest economy (the European Union’s eighth largest), Polish entry into the nuclear club is significant. Poland never had a need for nuclear power plants because its plentiful coal deposits have always provided it with ample supply of domestic fuel for electricity genera-
Unless otherwise noted, the opinions here are those of Warsaw Business Journal. Readers’ comments, opinions and letters should be sent to editor@wbj.pl. Please include a name and contact information and clearly indicate if they are to be considered for publication.
tion. To this day, coal provides approximately 94 percent of Poland’s electricity. The Soviet Union planned to construct a nuclear power plant in Poland, but the plans were abandoned in 1990 due to a combination of lack of necessity, environmental fears post Chernobyl and general
ration, liquefied natural gas and, now, nuclear power. Until these alternatives are in place, Poland will have to increase its dependence on piped Russian natural gas as it builds at least three new natural gas power plants, one of which is planned to be built jointly with Russia’s Gazprom by 2017.
Poland has no intention of abandoning its plans for nuclear energy anti-Soviet sentiment. The Polish public essentially saw nuclear power as part and parcel of Soviet domination, and the half-completed ˚arnowiec plant was scrapped after half a billion dollars had been spent on construction. Today, however, nuclear power is seen as a way to escape dependence on Russian natural gas exports. With the European Union pushing curbs on greenhouse gases, Poland’s over-dependence on coal is seen as a potential liability. The country is therefore looking for alternatives in shale gas explo-
With national security issues looming large, Poland has no intention of abandoning its plans for nuclear energy, something Prime Minister Donald Tusk made clear immediately after the Fukushima accident. Mr Tusk feels comfortable sticking to his decision because his main political opponents at the upcoming general elections in October, the right-wing conservative Law and Justice Party, have traditionally been pro-nuclear power as well. ● This edited version is reprinted with permission of STRATFOR.
Daily executive digest
EDITOR-IN-CHIEF ANDREW KURETH (AKURETH@WBJ.PL) MANAGING DIRECTOR MONIKA STAWICKA DEPUTY EDITOR
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(ATRUDELLE@WBJ.PL)
INTERNS
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COVER STORY
www.wbj.pl
Polish car importers not yet affected The recent earthquake and tsunami in Japan have paralyzed much of the country’s economy. Japan’s automotive sector, for one, has been hit hard and all major automakers have had to temporarily suspend production. Polish importers do not need to be concerned at the moment, since they have sufficient stock of cars and spare parts in Poland or in other European facilities, Puls Biznesu writes.
Japanese firm to invest z∏.350 million in Poland Japan’s NSG Group, which manufactures glass and glazing systems, has announced plans to build a new car-window plant in Chmielów. The investment is expected to cost z∏.350 million. The plans remain thus far unaffected by the earthquake that hit Japan on March 11. ●
MARCH 21-27, 2011
Japan and the Polish economy
Enduring tragedy Remi Adekoya The disaster which has befallen Japan will have global consequences. WBJ looks at the potential effect it could have on the Polish economy As WBJ went to press, the situation in Japan remained extremely serious following the massive earthquake of March 11, the subsequent, sudden tsunami and fears of a nuclear meltdown. The details of the devastation experienced by the island nation were still being updated regularly, but Japanese Prime Minister Naoto Kan has described the crisis as the worst since World War II. Japan is the world’s thirdlargest economy, having just recently been overtaken by China. So how will its woes affect the global economy in general and, more specifically, Poland?
Nuclear fears The full extent of the nuclear crisis in Japan will not be
COURTESY OF US NAVY/PETTY OFFICER 1ST CLASS MATTHEW M BRADLEY
12
The March 11 earthquake and subsequent tsunami brought massive destruction understood for some time, but there may be long-term issues involving water and soil contamination. A Chernobyl-style
exclusion zone could be established, forcing the permanent relocation of local inhabitants. Those matters belong to
the realm of speculation for now. On the other hand, the situation has already had concrete international repercus-
sions. Protests have taken place in Europe over the safety of nuclear energy, with long-time
Warsaw Business Journal Group and the Polish Chamber of Commerce, under the patronage of the Ministry of Economy, have undertaken a new initiative called the Polish Export Promotion Program, aimed at promoting Polish exporters and their products abroad. The project will include: • Made in Poland, an annual publication launching this March • Mister and Junior of Exports, a competition to award Poland's best exporting companies and export products – those which distinguish themselves by a high level of quality and innovation • A gala, in June 2011, at which the awards will be given out Through this project we will shine a spotlight on Poland's export market, as well as the companies and products that it comprises, and draw attention to their achievements. To get more information about the project, please contact Sales Director Agnieszka Brejwo at abrejwo@wbj.pl Partner of Honor
COVER STORY
MARCH 21-27, 2011
www.wbj.pl
13
Legal Eye
Contracting for catastrophes
COURTESY OF US AIR FORCE/AIRMAN 1ST CLASS KATRINA MENCHACA
Judith Gliniecki is a Partner with Wierzbowski Eversheds judith.gliniecki@eversheds.pl
Little was spared in the town of Sendai, where Panasonic has a plant critics seizing the opportunity to speak out. For example, Natascha Kohnen, a politician from Germany’s opposition SPD party, has said, “nowhere on the planet is there safe nuclear energy.” Under much pressure, German Chancellor Angela Merkel agreed last week to shut down all seven of the nuclear power plants opened in Germany before 1980; they will remain offline until June at the earliest. The move leaves just 10 nuclear facilities operating in the country. France, on the other hand, has steadfastly refused to accommodate nuclear critics. The country derives around 75 percent of its energy from nuclear sources. “France has made the choice of nuclear energy, which is key to its energy independence and in the fight against greenhouse gases … I remain today convinced of the pertinence of this choice,” President Nicolas Sarkozy said in a statement.
Staying the course As of last week, the disaster in Japan hadn’t had a strong impact on Poles’ attitudes towards nuclear power. An SMG/KRC survey taken after the first explosion at the Fukushima plant showed that 47 percent of those surveyed felt that there should be a nuclear plant in the country, while 46 percent were against the idea. In comparison, a 2008 poll by SMG/KRC found that just 42 were for nuclear power, while 48 percent were against. Meanwhile, Prime Minister Donald Tusk quashed speculation last week when he reaffirmed Poland’s commitment to building a nuclear power plant by around 2020. The PM told journalists that the government would not change its strategy, but conceded that the nuclear program would have a
strong focus on safety. “I would like us, despite the dramatic emotions and the compassion we feel, not to disconnect ourselves from rationality. … Let us remember that people become the victims of earthquakes irrespective of whether there is a nuclear plant or not. In Haiti, tens of thousands of people died after an earthquake due to other factors, and not a nuclear emergency,” said the PM. Robert Zajdler, energy expert at the Sobieski Institute, a think tank, agreed with the prime minister. “Nuclear energy is quite safe and there is no better
feasibility stages. So let’s wait and see what Japan’s report into the causes of the current incident indicate. Then we can take note and make improvements in our own plans to increase safety,” said Mr Zajdler.
Business as usual? The situation in Japan will have effects outside the nuclear industry as well. Japan is a large producer of electronic components and the crisis has given rise to fears of a supply shortage. So what do Japanese firms operating in Poland think of the matter?
“When it comes to Poland, I wouldn’t expect any big or direct consequences of these events” solution for Poland right now with all the restrictions being placed on CO2 emissions and gas-powered plants,” he said. “Of course we should increase our use of renewable energy, but we can’t base our energy policy on renewables.” He added, “Remember, renewables are dependent on the environment. For example, if we talk about wind-powered plants, sometimes the wind blows, sometimes it doesn’t.” Mr Zajdler noted that existing renewable energy plants in Poland had to be counter-balanced by other more traditional energy sources in order to compensate for the times when nature refuses to cooperate. And, while some are pinning hopes on reportedly large deposits of shale gas, it will be many years before the feasibility and profitability of extracting it is proven. “Poland’s plans for the nuclear facility are still in the
“For us, there is no danger from the European perspective or the Polish perspective, because we have a stock center in Brussels which is prepared for unforeseen emergencies. We also have a stockpile of car parts and other accessories in Poland which should last up to three months if the need arises. … Only after this three months could there start to be difficulties,” said Maciej Gorzelak, a spokesperson for Toyota Poland. “According to our information, the Toyota factories which have been closed down in Japan should be opened very shortly,” he added. However, Iwona Burzyƒska, PR manager at electronicsmaker Panasonic’s Polish branch, admitted that the events in Japan would not be without consequence for the firm’s local operations. “One of our plants in Sendai has indeed suffered quite serious damage and
today we don’t really know how much that will affect us here. There will probably be delays in the launch of new products,” she said. “However, our policy is not to limit ourselves to one supply source. We have several plants, so there should be no great disruptions in our daily supplies. We also hope our damaged plant will be back in action soon, but right now we are concentrating more on our employees currently in distress,” Ms Burzyƒska added. And what about the Polish economy in general? “When it comes to Poland, I wouldn’t expect any big or direct consequences of these events, because Poland is not strongly linked to Japan economically. There might however be a reduced in-flow of FDI to Poland or greater riskaversion in global financial markets,” opined Grzegorz Maliszewski, chief economist at Bank Millennium. On the positive side, Mr Maliszewski explained that a weaker z∏oty due to the unstable situation was positive for Polish exports. “I think it is financial markets which will be most affected by this but not global economic growth as such,” he added. Mr Maliszewski also said that while the events would probably affect Japan negatively in the short-term, in the medium-term it could even boost their economy due to big investments in infrastructure. The Japanese central bank has already pumped over €320 billion into the financial system to offset losses caused by the disaster. That may seem like cold comfort right now, but if nothing else it is a reminder that great tragedy can be overcome. The Japanese rebuilt their country after the devastation of World War II, they can do so again. ●
A good contract should anticipate ways of dealing with the usual commercial problems, such as delays, quality claims, or warranties (or lack thereof). Not every potential permutation of a problem, however, can or should be drafted into a contract. Frankly, you wouldn’t want your lawyers to put together dozens of pages of “what ifs” for a normal deal. In business, when the best laid plans of mice and men go awry, general principles of contract law will apply (apologies to Robert Burns). These include the doctrine of force majeure.
Agreed in writing The recent tragedy in Japan will not only affect domestic business, it will also have international dimensions. Already, there are reports of price increases for computer chips and speculation about automobile prices. For those doing business with Japanese companies, you may want to take a look at your contracts, even if the official stance of your Japanese business partners is “business as usual.” Let’s say that I had a twoyear contract for monthly deliveries of lucky beckoning cat statuettes, manufactured in Japan for lawyers. And I’m concerned that my next shipment (for which I already have buyers) may be delayed or even canceled. I should open up that contract to review those clauses that potentially might be relevant. The obvious first would be the clause on force majeure. If there is one, it would typically be tucked in the back of a contract. This clause is meant to specify what happens when the truly unexpected and uncontrollable happens. Aside from listing what might qualify, that clause might also elaborate on the consequences. Are the parties allowed to delay deliveries? If so, for how long? Should I receive notice about this? The review should not stop here. Other clauses could contain relevant information. For example, the termination clause may allow me to terminate the contract if my business part-
ner claims a force majeure situation.
Background rules While not exciting reading material, the basic principles of contract law establish the background rules to cover situations that have not been specifically addressed in a written contract. If the transaction is not complicated, it is possible that there is no force majeure clause in your contract. Polish law does not specify the affect of force majeure circumstance on a contract. Rather, it identifies a broader principle of contractual liability for non-performance or improper performance. Basically, you’re on the hook to perform the contract unless you can show that, due to no fault on your part, circumstances arose that prevented you from doing what you were supposed to do. Force majeure is considered to be one of those exonerating circumstances. There is also no official definition of force majeure in Polish law. In the legal world, it’s generally accepted that it refers to extraordinary, external events that could not be prevented. Natural disasters, such as earthquakes and tsunami, are classic examples. There are, however, some events, such as labor strikes, that could, but don’t necessarily, qualify as a force majeure. For this reason, it can make sense to agree in writing in a long-term sales or services contract about what qualifies as a force majeure event.
What then? In light of the unfolding consequences of the recent earthquake in Japan, I should expect that deliveries of lucky statuettes are not likely to be a priority. Claiming force majeure, unless your contract specifies otherwise, is similar to hitting a pause button. There are no hard and fast principles of contractual law about how long the pause is allowed to last or what happens next. If your contract does not specify this, you should consider your alternatives and plan to have a frank discussion with your business partner. ●
Warsaw put on its best face for MIPIM, talking up successes and plans
The Agricultural Property Agency is opening up and reaching out to investors
17
18
LOKALE IMMOBILIA
W a r s a w B u s i n e s s J o u r n a l ’s w e e k ly s u p p l e m e n t o n re a l e s t a t e , c o n s t r u c t i o n a n d d e v e l o p m e n t
Tall ambitions in Kraków
In this issue Kraków skyscrapers . . . . . . . . .15 Siedmiogrodzka purchase . . . .15 Galeria Olimpia work . . . . . . . .16 Focus Park in Włocławek . . . . .16
COURTESY OF PRO-INVEST
There’s an intriguing plan to build skyscrapers in Kraków, but history is stacked against it
At 311 meters, the towers would dwarf Warsaw’s 231meter Palace of Culture
During this year’s MIPIM international property fair in Cannes, France, Kraków City Hall’s stand featured an ambitious project involving two 311-meter skyscrapers. The buildings could be developed on a plot located nine kilometers from the city’s downtown area. The project has been designed by entrepreneur Arkadiusz Nagi´ç, who describes Kraków as a city with great potential which “needs innovation in order to develop.” “The two skyscrapers are only the hub of my overall project,” Mr Nagi´ç told Lokale Immobilia. “I want to build a business-technology
district on the outskirts of Kraków, a modern complex in terms of technological and ecological solutions, something like La Défense in Paris.” Mr Nagi´ç’s further plans include a technologybusiness park. According to Monika Piàtkowska, a representative of Kraków City Hall, the plans for the skyscraper project have not yet been officially presented to the city. She noted that City Hall already plans to amend the local zoning plan, allowing high-rise buildings to be constructed there. But, Ms Piàtkowska stated, “It looks improbable that the project will be realized this year or next.” Attempts at high-rise construction in Kraków have failed in the past, as the 92meter “Szkieletor” building, standing unfinished since 1981, bears testament. Moreover, given the historical char-
acter of much of Kraków’s architecture, there is some doubt as to whether skyscrapers really fit the city’s skyline. Mr Nagi´ç disagrees. “The project is by no means contradictory, nor does it disturb the historical character of the city,” he said. “Poland should show the world what it can do. Look at Asia, for example, or other places, they build a new skyscraper every now and then,” he added. Asked if the project really has a chance of being completed, he answered, “Yes. There are several serious investors who are already interested in the two skyscrapers.” The land on which the investment would be developed is owned by private investors, represented by Capital High, a special purpose vehicle created by Polish architectural and construction firm Pro-Invest. Katarzyna Piasecka
Land purchased for Okam’s ul. Siedmiogrodzka project Okam Capital has finalized the acquisition of a 12,216-sqm plot located at the intersection of Warsaw’s ul. Karolkowa and ul. Siedmiogrodzka from Pekaes subsidiary Inwestycja Siedmiogrodzka. The value of the transaction, which was brokered by CB Richard Ellis, amounted to z∏.51.34 million. The plot is located in Warsaw’s Wola district, near the capital’s Warsaw Rising Museum. Okam plans to develop an apartment building housing 483 upper-standard units as well as commercial
space on the ground floor. The project has already acquired a building permit and construction is expected to launch in June. “We want our investments to be built in the best locations, in city centers and the best districts. Ul. Siedmiogrodzka perfectly fits into this strategy,” Arie Koren, general director of Okam Capital, said in a statement. “The site is located in the growing Wola business district, very close to the CBD. The continuous development of neighboring properties is transform-
ing this area into a prime business and residential location,” commented Miko∏aj Martynuska, director of development consultancy at CBRE’s Warsaw office. Okam has been present in the Polish residential market since 2003. The company’s completed developments include the M2, WiÊlane Ogrody and Arlet House schemes in Warsaw. Apart from the building on the capital’s ul. Siedmiogrodzka, the firm is also planning investments in ¸ódê and Katowice. Adam Zdrodowski
COURTESY OF CBRE
Developer Inpro has obtained a building permit for its City Park project, a housing and services complex located at the intersection of Al. Jana Paw∏a II and Al. Rzeczypospolitej in Gdaƒsk. Construction work on the project is scheduled to start in May, with the first buildings in the development expected to be delivered in Q4 2012. City Park will encompass six 11-storey buildings. The size of the apartments will range from 35-113 sqm, while the prices of the units will start at z∏.5,500 per sqm net.
Polish State Railways (PKP) and Hungarian real estate holding TriGranit have obtained a permit to partner on a new central railway station in Poznaƒ. The Polish Office of Competition and Consumer Protection (UOKiK) has green-lit the creation of two special purpose vehicles, Poznaƒ City Center I and Poznaƒ City Center II, which will build the project. Construction work on the new facility is expected to launch by the end of this quarter, with the project being scheduled for completion in Q2 2012. The value of the investment will amount to up to €160 million. ●
MARCH 21-27, LI 16/11
Skyscrapers
City Park green-lit
PKP, TriGranit join forces
•
Okam’s building will house 483 apartments
Developers’ 2010 results . . . . .16 Property-related stocks . . . . . .16 Warsaw at MIPIM . . . . . . . . . . .17
Correction The March 7, 2011, issue of WBJ (v.17, #9) included information about Królewskie Golf & Country Club’s sales. The information should have read Sobienie Królewskie Golf & Country Club. WBJ regrets the error.
ANR’s strategy . . . . . . . . . . . . . .18
Warsaw Business Journal presents Real Estate weekly newsletter • Know about the newest projects before they’re on the market • Keep up to date on the latest tenders and auctions • Learn the latest trends in Poland’s dynamic office, residential and retail sectors • Find out who’s who in Polish real estate To subscribe: e-mail subscribe@wbj.pl c +48 22 639 85 68, ext. 201 and sign up for free two-week no-obligation trial subscription or call
LOKALE IMMOBILIA – REAL ESTATE
www.wbj.pl
Residential
German investor Deka Immobilien has acquired the North Gate office building in Warsaw. The price of the investment amounted to €103 million. The 24-storey North Gate was commissioned in 2008. Located on ul. Bonifraterska, the building’s GLA amounts to 30,000 sqm. It is fully leased, with 25 tenants.
Rezydencja Bia∏a work begun Developer Yareal Polska has launched construction of its Rezydencja Bia∏a housing project in Warsaw. Located on ul. Bia∏a in the Wola district, the scheme will deliver 77 apartments sized from 30-120 sqm. Completion is scheduled for Q4 2012. Over half the units were sold prior to construction and the project has bank financing. Rezydencja Bia∏a was designed by the APA Markowski Architekci studio. Lublin-based Henpol is the general contractor. ●
Lagging effects of crisis felt Two of Poland’s largest housing developers saw apartment sales rise as profits fell Residential giant Dom Development recorded z∏.513.7 million in revenues and z∏.40.5 million in net profit last year, down 27.1 and 49.5 percent y/y, respectively. The company sold 1,386 apartments in 2010, however, which was up 75 percent over a year earlier. “Despite very good sales results, the financial results remained under the influence of the 2008-2009 crisis, during which we did not launch any new investments,” Jaros∏aw Szanajca, president of Dom
0 Steady sales Number of apartments sold by Dom Development and JW Construction, Q1-Q4 2010
Dom Development
JW Construction
600 500 400 300 200 100 0 Q1
Q2
Q3
Q4
Source: companies' own figures
Development’s management board, said in a statement.
He added that the first units from the company’s new offer,
starting with those whose sales were launched in Q4 2009, would be turned over to buyers as early as in mid-2011. These sales will be reflected in Dom Development’s financial results at that time. Analysts expect Dom Development’s profit to grow to z∏.70-90 million this year. Mr Szanajca described the forecast as somewhat optimistic, but added that it was not much different from what the company itself is planning. Meanwhile, JW Construction, Dom Development’s main competitor in the Warsaw market, reported z∏.620 million in revenues and a net profit of z∏.92 million for 2010, marking 13.08 and 8.37 per-
cent drops on the year, respectively. The developer sold 1,262 residential units last year, which was up 53 percent upon 2009. Seeing growing residential demand, the company is now working to expand its sales offer, adding units from projects in Warsaw as well as some in Wroc∏aw, Gdynia, Katowice and Poznaƒ. “Currently, our ready-tobe-launched projects comprise a total of 4,200 units. Our goal is to prepare an offer in 2011 which will allow us to sell over 2,500 apartments in the following year,” stated Tomasz Panaba˝ys, vice president of JW Construction. Adam Zdrodowski
Parkridge builds in W∏oc∏awek Parkridge Retail Development has launched construction on its Focus Park retail project in W∏oc∏awek, KujawskoPomorskie voivodship. The facility, which will offer 6,200 sqm of GLA, is scheduled for completion in late autumn. “I am confident in the success of this project because it
has very large potential and was very carefully thought over during the investment’s preparation stage,” Jaros∏aw Fija∏kowski, president of Parkridge Retail Development’s management board, said in a statement. Focus Park in W∏oc∏awek will be built on a plot located between ul. Komunalna and ul.
Property-related stocks Security
Closing price on March 17
% change (week)
52-week low
52-week high
% change (year)
Total shares
Market value (z∏.mln)
BUDIMEX
94.00
-3.79
84.55
106.10
8.05
25,530,098
2,399.83
CELTIC
21.00
-3.00
17.43
60.55
N/A
34,068,252
715.43
DOMDEV
46.99
1.08
38.52
61.00
-10.75
24,560,222
1,154.08
4.91
-0.81
3.95
5.40
12.61
420,000,000
2,062.20
ELBUDOWA
152.00
-3.80
152.00
188.40
-11.88
4,747,608
721.64
ENERGOPLD
3.81
0.26
3.57
4.45
-15.33
70,972,001
270.40
ERBUD
40.30
-3.70
40.30
61.00
-25.37
12,602,711
507.89
GANT
13.20
-2.80
12.98
26.00
-46.01
20,499,953
270.60
GTC
20.00
-2.87
20.58
25.00
-14.75
219,372,990
4,387.46
HBPOLSKA
2.61
-1.88
2.53
3.90
-27.90
210,558,445
549.56
JWCONSTR
13.95
-0.64
13.18
18.69
1.82
54,073,280
754.32
LCCORP
1.56
-5.45
1.41
1.73
-6.59
447,558,311
698.19
MARVIPOL
9.00
-7.88
8.83
20.29
-59.13
36,923,400
332.31
MIRBUD
4.52
-3.83
2.71
4.75
55.86
75,000,000
339.00
MOSTALWAR
45.00
-4.46
45.00
77.00
-36.12
20,000,000
900.00
MOSTALZAB
2.84
-4.70
2.63
4.84
-38.79
149,130,538
423.53
ORCOGROUP
34.41
-2.80
19.00
36.50
16.64
14,053,866
483.59
PBG
199.00
-2.45
190.40
252.00
-7.44
14,295,000
2,844.71
PLAZACNTR
3.80
0.26
3.70
6.39
-36.77
292,647,720
1,112.06
POLAQUA
16.70
-1.18
16.00
22.50
-7.73
27,500,100
459.25
POLIMEXMS
3.60
-2.17
3.33
5.29
-22.58
521,035,327
1,875.73
POLNORD
31.51
-1.38
30.50
44.00
-21.34
22,242,031
700.85
RANKPROGR
10.84
1.31
9.59
10.96
N/A
37,145,050
402.65
ROBYG
1.85
2.78
1.70
1.94
N/A
257,390,000
476.17
RONSON
1.42
-2.74
1.36
2.10
-18.86
272,360,000
386.75
TRAKCJA
3.46
0.00
3.32
4.97
-15.61
160,105,480
553.96
ULMA
81.70
-0.85
70.00
86.20
5.42
5,255,632
429.39
UNIBEP
8.00
0.63
7.30
10.30
0.63
33,927,184
271.42
WARIMPEX
10.18
-4.41
7.64
10.85
17.42
54,000,000
549.72
ZUE
13.90
0.00
13.50
15.14
N/A
22,000,000
305.80
Witosa, close to an existing Real hypermarket and an Obi DIY store. The project is currently 72 percent leased out; tenants include Media Expert, Rossmann, Deichmann and CCC. Realization of the project is being financed via a loan from BZ WBK. Kraków-based MOFO Architekci studio designed the building in cooperation with W∏oc∏awek’s Ortech. Kielce-based SPS Construction is acting as general contractor. Present in the Polish market since 2003, Parkridge specializes in the delivery of shopping and entertainment centers (branded Focus Mall)
COURTESY OF PARKRIDGE RETAIL DEVELOPMENT
Deka buys Warsaw skyscraper
ECHO
MARCH 21-27, 2011
Focus Park W∏oc∏awek will have 6,200 sqm of GLA as well as retail parks (branded Focus Park). The company has built four Focus Malls (in Rybnik, Bydgoszcz, Zielona Góra and Piotrków Trybunalski) and
one Focus Park (in Âwidnica) in Poland to date. It plans to invest over €500 million in new projects in the country by 2013. Adam Zdrodowski
Echo launches construction on Galeria Olimpia in Be∏chatów Developer Echo Investment has obtained a building permit for, and is launching construction on, its Galeria Olimpia shopping center project in Be∏chatów, ¸ódzkie voivodship. The scheme, located on the city’s ul. Kolejowa and ul. Armii Krajowej, is scheduled to open in August 2012. Galeria Olimpia will come into being following the extension of a mall called Echo, which was delivered at the location in 2000. The new development was designed by the MOFO Architekci studio and will offer a total of approximately 30,500 sqm of GLA (around 100 stores), as well as 1,100 parking spaces. “The commercialization process is going very smoothly. The lease level has reached 60 percent,” Marcin Materny, shopping center department director at Echo Investment, said in a statement. He added that Galeria
Olimpia’s tenants will include a Tesco hypermarket, a sixscreen Multikino multiplex as well as Rossmann, CCC and Martes Sport stores. Listed on the Warsaw Stock Exchange since 1996, Echo Investment is one of Poland’s largest real estate
investors and developers. To date the company has completed 80 projects, totaling approximately 700,000 sqm, in 28 Polish cities. It is also present in the real estate markets of Romania, Hungary and Ukraine. Adam Zdrodowski
COURTESY OF ECHO INVESTMENT
16
Galeria Olimpia is already 60 percent leased out
MARCH 21-27, 2011
LOKALE IMMOBILIA – REAL ESTATE
Warsaw at MIPIM
essentially makes the construction of the National Stadium the centerpiece of a set of recreational and cultural development projects around the city, including the recently opened Copernicus Scien-
ce Center and the new stadium for soccer team Legia Warszawa. Within this project, Warsaw is looking to redevelop Port Czerniakowski, located on the Vistula River in the center of the city, into a sports and recreation center with stadiums, gyms, tennis courts, as well as green space for general relaxation and recreation. There will also be a marina, restaurants and a hotel. The city also plans a boardwalk spanning much of the Vistula’s west bank – the development will include an amphitheater, beach space and gardens. It is also working on a new symphony hall called Ogród Muzyki (“A Garden of Music”) that will have an ultra-modern design.
Radiating confidence City authorities also talked up a project they called “Creative Radiation,” which
The new National Stadium is the centerpiece of the city’s “Creative Radiation” initiative
nesses established in Poland, 30 percent are established in Warsaw,” said Mr Paw∏owski, noting that despite Warsaw’s higher average wages and more expensive office rents, it was a natural location for
The new Legia stadium
COURTESY OF WARSAW CITY HALL
While parking might seem a mundane subject, anyone who’s driven in the capital knows how frustrating it can be to find a place to park. The city therefore desperately needs underground parking lots, and would like to build as many as nine throughout the city in the near future – all through public-private partnership (PPP) projects. “We are considering nine locations, including three core locations: Plac Teatralny, Plac Defilad and Emilii Plater. Six more are under analysis, and three of those will probably be chosen by the end of this year,” said Pawe∏ Paw∏owski, director of investor services at Warsaw City Hall. This PPP parking lot program was announced at the end of February, and the city
Then there’s hotel infrastructure. Warsaw officials at MIPIM put special emphasis on the capacity of Warsaw’s lodging facilities, and the solutions it will put in place for the tens of thousands of soccer fans expected to converge on the city for Euro 2012. “There are over 33,000 places of lodging in Warsaw, including 15,911 hotel rooms,” said Katarzyna Ratajczyk, director of the office of promotion at Warsaw City Hall. “Within the Mazowieckie voivodship there are some 60,000 places of lodging, and some 100,000 places within a two-hour drive of the stadium,” she added. She pointed out that the estimated need was for 55,000 places of lodging, and therefore Warsaw would meet the expected demand. In terms of the number of rooms to accommodate families, UEFA had hoped for 1,750 five-star hotel rooms, some 4,050 fourstar hotel rooms and 360 three-star hotel rooms. In terms of five- and four-star
rooms, Warsaw falls short by 202 and 1,844 respectively, though it beats the number of three-star rooms by some 2,455, giving it a total surplus of about 409 rooms. There are plenty of lowbudget options as well, with hostels and campsites available. Ms Ratajczyk was quick to point out that brewer Carlsberg would be setting up a fan campsite to accommodate some 5,000 fans. Interestingly, the city will be locating its “fan zone” in the heart of the city, about a 20-minute walk from the stadium. Since it will be so close to the action, Warsaw authorities are expecting many more people in the area than there were in, for example, Vienna’s, at the last Euro tournament. So that they will be able to access the stadium conveniently, authorities plan to shut down an entire lane of roadway from the fan zone to the stadium.
Down to business But besides the tourist and recreational projects already under way, Warsaw officials were keen to emphasize the business side of Warsaw. “Of all new foreign busi-
Làdek Zdrój City Hall is looking for an investor for Wrzosówka, a depopulated 16th century hamlet. The local authorities would like to see a small winter sports center and several houses erected in the 35-ha area. The asking price of the land amounts to z∏.20 per sqm, although Làdek Zdrój City Hall spokesperson Roman Kubica said that the actual price would be subject to change. Wrzosówka is located in southeastern Lower Silesia voivodship, on the border of Poland and the Czech Republic.
Magnolia Park to grow
The capital is ramping up development projects
COURTESY OF WARSAW CITY HALL
Parking partnership
Accommodating change
Andrew Kureth
SHUTTERSTOCK
Poland’s capital is embracing modernity – that was the main message from Warsaw officials at this year’s MIPIM real estate event in Cannes, France. In practical terms, that means the city is seeking partners and capital for projects to improve quality of life and burnish its reputation. City officials also touted preparations for major European events taking place over the next few years. Warsaw is well on the way to being ready for Poland’s EU Council presidency in the second half of this year and for the Euro 2012 soccer championship next year. At the same time, it’s working to modernize and further its bid to become European capital of culture in 2016.
intends to launch the tender process early next year. The program will comprise what Mr Paw∏owski called a “standard scheme” for such projects. The PPP contract will give the investor the right to earn revenues from the parking lots for a given length of time, after which ownership will be transferred to the city. The project is significant, as very few PPP projects have been launched in Poland, mainly due to complicated regulations and political fears. Experts widely agree that PPP would be extremely useful for creating such infrastructure, and if the Warsaw program proves successful, it could convince other cities and firms that such partnerships are worthwhile.
17
Hamlet tender called
A capital future At this year’s MIPIM, Warsaw touted underway projects and plans for the future as evidence of its maturity
www.wbj.pl
major international corporations to establish regional hubs. He boasted of the highly trained workforce, with most graduates able to speak at least two foreign languages. And what of the complaint that not enough of Warsaw is covered by zoning plans? “I believe Warsaw has moved very quickly on this issue,” countered Mr Paw∏owski. “Four years ago only 17 percent of the city was covered by zoning plans, now it’s over 28 percent,” he said. He added that the city had been approached by several investors interested in land for development, but lamented that some of the plots couldn’t be sold, because they were still subject to restitution claims. “Warsaw still suffers from some of the legal changes that took place after the war,” said Mr Paw∏owski. Nevertheless, the city is doing its utmost to move into the future. ●
The Magnolia Park shopping center in Wroc∏aw is to be expanded by almost 11,000 sqm to accommodate a Castorama market and a major fashion brand store. The value of the expansion scheme, which has been designed by YG Project, is estimated at z∏.45 million. Porr Polska is acting as the general contractor on the investment. Magnolia Park currently comprises 74,400 sqm and houses over 230 stores and points of service. Metro Group Asset Management is responsible for the management of the property.
Eurocentrum eyes LEED CP Realty II, the investor behind the Eurocentrum office building in Warsaw, is applying for LEED certification for the 70,000 sqm facility. The certification process will only be completed after the project has been delivered. Meanwhile, CP Realty II is in the process of selecting a general contractor for Eurocentrum. The 15-storey project, which will be located on Al. Jerozolimskie in the capital’s Ochota district, has already obtained a building permit. The development was designed by PRC Architekci. CP Realty II is an investment fund run by Grupa Capital Park. ●
LOKALE IMMOBILIA – REAL ESTATE
www.wbj.pl
Panattoni’s Wroc∏aw plan Industrial space developer Panattoni Europe is expanding its Panattoni Park Wroc∏aw II logistics park in Nowa WieÊ Wroc∏awska, Lower Silesia voivodship. A further 11,500 sqm of space is being added to the existing 29,700 sqm building and the construction of a second structure in the future should bring the total area of the complex to approximately 60,000 sqm. The first tenant in the new section of the park will be a logistics company which has leased 2,400 sqm in the scheme.
New MLP Tychy tenants Warehouse and industrial space developer MLP Group has recently leased a total of 5,224 sqm of space at its MLP Tychy logistics park to Auto Partner and Euroweld Poland, for three and 10 years, respectively. MLP Group is currently developing four warehouse and industrial parks in Poland. ●
A guide to Polish business and industry
Agricultural property
Competing with the world Poland’s Agricultural Property Agency is working on opening up – and finding success as it reaches out When Tomasz Nawrocki took over as president of the Agricultural Property Agency (ANR) three years ago, he says the institution was selling between z∏.1 and 1.5 billion worth of land each year, mainly agricultural land. Very little of the land was being sold for investment purposes, an area in which he saw strong growth potential. Speaking with Lokale Immobilia at the recent MIPIM real estate event in Cannes, France, Mr Nawrocki admitted that one of his first decisions had been to open the agency up, and to actively court investors with the agency’s investment properties. “But the first thing we had to do was verify exactly how much land we had. It turns out we had some 100,000 ha of non-agricultural land,
Przewodnik po polskim biznesie i gospodarce
60,000 ha of which was near cities or within their administrative boundaries,” he said. The land includes plots which are designated for industry, trade, service facilities, logistics developments and residential building in the local zoning plans or studies. The agency also has plots ripe for development of hotels and spas, recreational developments and tourism. The agency is also keen to promote golf course developments and has many plots with historical buildings that could be converted for a variety of purposes. “This is really attractive land for investors,” Mr Nawrocki said, adding that since the land was classified as non-agricultural, it wasn’t subject to strict Polish laws governing the ownership of agricultural land. The value of the investment land which the ANR presented at MIPIM was estimated at z∏.1.5 billion.
Once the value of the investment land had been deter-
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MARCH 21-27, 2011
at MIPIM. “The information is getting out,” he said. “We have to be present at such events – we’re competing with the whole world.” Indeed, the agency made the most of MIPIM, selling two plots in a tender to a Polish investor for a total of z∏.46.65 million.
COURTESY OF ANR
18
Mr Nawrocki has worked to open up the ANR mined, the agency began going out and actively courting investors. That yielded immediate results: in 2008 the agency sold some 1,644 ha of investment land for around z∏.268 million. The ANR then decided it needed to gain greater international exposure, and in 2009 it had a presence at commercial real estate event Expo Real in Munich. “We had a really positive response,”said Mr Nawrocki. In 2009, despite the global economic crisis, the agency sold some 1,010 ha for z∏.183 million. In 2010, the agency
noted a record income of z∏.287 million from the sale of 1,586 ha of investment land. The ANR has continued its charm offensive, and has also benefited from a convergence of positive factors, such as the buildup of highway and expressway infrastructure near many of its plots, and a jump in land prices. “This year we will beat last year’s figure, and sell a much larger amount, in terms of monetary value,” said Mr Nawrocki. The ANR was also present at last year’s MIPIM and Expo Real events, and this year invested in its own stand
The president also cited a spate of big deals landed with international players over the past year, including IKEA, Real, LeRoy Merlin, Lidl, Auchan, LG, Sharp, Pittsburgh Glass Co., Opel and Toyota. What has also helped is a pro-investor attitude which Mr Nawrocki said he had worked to instill at the agency. He pointed out that the ANR works to actively help investors take care of some of the burdensome bureaucracy that investment and construction in Poland. Now that the agency has established a recognizable brand, it will need to reach further – making its offer accessible to anyone around the world. The ANR is therefore in the process of revamping its website, to make information about its offer more accessible. “We are determined to be seen as a modern, trustworthy partner,” Mr Nawrocki said. Andrew Kureth
MARKETS
MARCH 21-27, 2011
www.wbj.pl
Stocks report
world stock indices DJIA
NASDAQ
11,774.59 (March 17 close)
S&P500
2,636.05 (March 17 close)
-1.77% (for the week)
FTSE100
1,273.72 (March 17 close)
-2.56% (for the week)
DAX
5,696.11 (March 17 close)
-1.79% (for the week)
-1.92% (for the week)
Chem stocks react badly
NIKKEI225 6,656.88 (March 17 close)
8,962.67 (March 17 close)
-5.47% (for the week)
-14.03% (for the week)
CHANGE: 1.70%
CHANGE: -1.52%
CHANGE: 1.28%
CHANGE: -3.45%
CHANGE: -4.54%
CHANGE: -13.42%
(year to March 17)
(year to March 17)
(year to March 17)
(year to March 17)
(year to March 17)
(year to March 17)
52-week high: 12,418.00
52-week high: 2,840.51
52-week high: 1,344.07
52-week high: 6,105.80
52-week high: 7,441.82
52-week high: 11,408.17
52-week low: 9,596.04
52-week low: 2,061.14
52-week low: 1,010.91
52-week low: 4,790.00
52-week low: 5,607.68
52-week low: 8,796.45
Tomasz Jerzyk, technical analyst DM BZ WBK SA Polish stocks saw a mixed finish last week, as the blue-chip WIG20 index rose by 1.1 percent and the overall WIG inched up 0.67 percent. The small and medium-sized stock benchmarks, meanwhile, ended in negative territory. Small caps are generally linked with retail investors, which have been nervous lately. Last week was extraordinary though, as investors sold stocks globally following the events in Japan. Big caps opened lower and some buying took place, while smaller stocks were hit much harder. Chemicals had a rough time, as negative news pushed investors to sell. Synthos lost the most among chemicals and was down by five percent on the week. Ciech and Azoty also fell over three percent. Profit-taking in the sector seemed natural, but a contin-
Major indices WIG
47,731.04 (March 17 closure)
WIG20
2,757.54 (March 17 closure)
17.03
16.03
15.03
14.03
11.03
10.03
09.03
08.03
07.03
04.03
03.03
02.03
01.03
17.03
16.03
15.03
14.03
11.03
10.03
09.03
08.03
07.03
2,600
04.03
46,000
03.03
2,640
02.03
46,600
01.03
2,680
28.02
47,200
25.02
2,720
24.02
47,800
23.02
2,760
22.02
48,400
21.02
2,800
18.02
49,000
28.02
52-week low: 2,270.13
25.02
Change year to March 17: 0.10%
24.02
52-week low: 39,109.37
23.02
52-week high: 2,794.73
Change year to March 17: 0.17%
22.02
Change for the week: -0.10%
21.02
52-week high: 48,421.80
18.02
Change for the week: -0.41%
Top 5 PCGUARD CALATRAVA 08OCTAVA EKOEXP OPTEA
Closing 2.92 0.38 2.64 7.10 7.09
% change (week) 52-week high 15.87 3.99 15.15 0.45 14.78 2.68 12.70 9.03 12.54 8.52
52-week low 2.01 0.28 1.61 3.69 4.90
Top 5 KGHM PKNORLEN PZU CEZ LOTOS
Closing 175.80 51.50 351.00 137.00 41.96
% change (week) 4.02 2.90 2.03 1.48 0.62
52-week high 188.90 52.20 417.50 149.90 43.45
52-week low 88.20 35.06 326.00 118.10 27.30
Bottom 5 IRENA PBSFIN WARFA TIM ATLAN
Closing 1.15 1.17 1.62 13.25 7.50
% change (week) -17.86 -12.03 -11.48 -11.01 -10.50
52-week low 0.65 0.36 1.49 9.90 6.91
Bottom 5 PKOBP CYFRPOLSAT GTC TVN TPSA
Closing 42.06 15.07 20.00 16.80 16.64
% change (week) -3.71 -3.40 -2.87 -2.78 -2.58
52-week high 47.35 17.40 25.50 19.43 18.85
52-week low 35.75 13.36 19.55 15.60 14.00
52-week high 5.00 1.98 2.18 15.90 11.30
2,845.10 (March 17 closure)
sWIG80
Tragedy drives the markets
12,545.23 (March 17 closure)
NewConnect
58.75 (March 17 closure)
WIG-Banki
6,852.67 (March 17 closure)
SOURCE: WSE
17.03
16.03
15.03
14.03
11.03
10.03
09.03
08.03
07.03
04.03
03.03
02.03
01.03
17.03
16.03
15.03
14.03
11.03
10.03
09.03
08.03
07.03
04.03
03.03
6,600
02.03
57.0
01.03
6,700 28.02
6,800
57.4
25.02
57.8
24.02
6,900
23.02
58.2
22.02
7,000
21.02
58.6
18.02
7,100
28.02
52-week low: 5,751.39
25.02
Change year to March 17: 1.57%
24.02
52-week low: 54.64
23.02
52-week high: 7,262.73
Change year to March 17: -7.35%
22.02
Change for the week: 1.81%
21.02
52-week high: 64.23
18.02
Change for the week: 0.63%
59.0
Adam Narczewski, X-Trade Brokers Dom Maklerski SA
17.03
16.03
15.03
14.03
11.03
10.03
09.03
08.03
07.03
04.03
03.03
02.03
01.03
17.03
16.03
15.03
14.03
11.03
10.03
09.03
08.03
07.03
12,300
04.03
2,700
03.03
12,420
02.03
2,760
01.03
12,540
28.02
2,820
25.02
12,660
24.02
2,880
23.02
12,780
22.02
2,940
21.02
12,900
18.02
3,000
28.02
52-week low: 10,980.45
25.02
Change year to March 17: 2.42%
24.02
52-week low: 2,361.69
23.02
52-week high: 12,855.31
Change year to March 17: 1.33%
22.02
Change for the week: -1.35%
21.02
52-week high: 2,904.35
18.02
Change for the week: -1.04%
uing slide among construction firms was more difficult to explain. These stocks have been trending downwards for several months, yet managed to set new lows. The economy is in good shape, there is growing demand for real estate and new infrastructure must be built before Euro 2012, so these stocks should lead the way up. But the construction index lost 2.8 percent last week, with Mostostal Warszawa and Polimex Mostostal suffering the most. PZU shares were top among blue chips, gaining five percent. Oil firms Orlen, Lotos and MOL were also up. Poland missed a rally in January and February, but it has outperformed other markets over the last few weeks and seems to be gaining upward momentum. ●
Currency report
Other indices mWIG40
19
Last week was extremely hectic on the currency markets. The images of the tragic earthquake in Japan and the fight to save the Fukushima nuclear power plant shook the whole world. Equity markets plunged and currencies became very volatile. The yen appreciated to its strongest level against the dollar since 1995. That led the G7 to announce that, together with the Bank of Japan, they will take a coordinated action to prevent the yen from gaining even more. Before the announcement, the BoJ had already injected €320 billion into the economy to calm financial markets. The war in Libya also affected financial markets. The Libyan government’s announcement of a ceasefire on Friday, following the UN resolution establishing a no-
fly zone, had an immediate reaction on financial markets as hope grew for an end to the conflict. On a corrective movement at the start of last week, the EUR/USD stayed below the $1.39 level during the first part of the week. Later, after breaking the $1.40 resistance level, it continued to advance, reaching $1.4135, its highest level since November 2010. Investors in the z∏oty market ignored local news – lower CPI inflation and higher industrial production. Uncertainties surrounding Japan and Libya caused the z∏oty to depreciate, with the EUR/PLN reaching z∏.4.11 (its highest level since July 2010) and finishing the week at z∏.4.05. The USD/PLN was highly volatile (z∏.2.862.96) but ended the week at z∏.2.87. ●
currency rates
18.03
SOURCE: NBP
3.5414
3.6941 17.03
3.5995 16.03
3.5197 14.03
3.5929
3.5360 11.03
0.1017
0.1014 18.03
3.5
15.03
PLN-100JPY
4.0
17.03
16.03
15.03
14.03 0.1008
0.1016
0.1018 11.03
3.2211
3.1933 18.03
0.100
0.1013
PLN-RUB
0.102
17.03
3.1668 16.03
3.1764 15.03
14.03
3.1277 11.03
4.6932
4.6407 18.03
3.0
3.1057
PLN-CHF
3.5
17.03
4.6754 16.03
4.6862 15.03
14.03
4.6787 11.03
2.9077
2.8850 18.03
4
4.6406
PLN-GBP
5
17.03
2.9052 16.03
2.9284 15.03
14.03
2.9212 11.03
4.0800
4.0615 18.03
2.5
2.8825
PLN-USD
3.0
17.03
4.0557 16.03
4.0618 15.03
14.03
4.0316 11.03
4.0
4.0211
PLN-EUR
4.1
20
THE LIST
www.wbj.pl
MARCH 21-27, 2011
Corporate Services
Law Firms Ranked by total number of board certified lawyers
Number of lawyers
www.bookoflists.pl
Rank
Company name Address Tel./Fax E-mail Web page
Total number of boardcertified lawyers / Total number of lawyers
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Foreign / Tax advisors
Unlicensed lawyers (Master of Law degree) / Training for license
Languages used
1
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71 140
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3 6
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240 1991
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1
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71 135
28 43
4 9
50 40
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WND
255 1992
Tomasz Wardyƒski; Stefan Jacyno
3
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69 145
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5 4
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Japanese
Commercial and corporate law Energy law; trial law; antimonopoly and competition law
CMS Cameron McKenna and CMS
254 1989
Andrew Koz∏owski
4
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64 102
9 52
3 5
5 31
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-
Commercial and corporate law Mergers and acquisitions; intellectual and industrial property law; trademark protection; arbitrage; trial law
Global Advertising Lawyers Alliance; EuroITCounsel; International Trademark Association; European Employment Lawyers Association; Attorney’s Club
205 1991
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5
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63 143
13 50
3 7
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Portuguese
Commercial and corporate law Mergers and acquisitions; labor and social insurance law; PPP; infrastructure
WND
243 1993
Krzysztof A. Zakrzewski
6
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9
1 29
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Norwegian; Portuguese
Commercial and corporate law; mergers and acquisitions; venture capital and private equity Technology; media; telecom; copyright law; intelectual property and industrial law; pharmaceutical law; real estate; securities
Baker & McKenzie
155 1992
Marcin Gmaj
7
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42 69
9 26
5 1
7 20
✓ ✓ ✓
✓ -
-
Commercial and corporate law Real estate, construction and infrastructure; banking and finance; securities and capital markets; trial law and arbitrage
Clifford Chance
124 1992
Grzegorz Namiotkiewicz
8
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41 68
21 18
2 2
27 20
✓ ✓ ✓
✓ ✓ ✓
-
Technology; media; telecom Commercial and corporate law; mergers and acquisitions; anti-monopoly and competition law
Eversheds International Limited
106 1998
Krzysztof Wierzbowski
9
Drzewiecki, Tomaszek & Wspólnicy Sp.k. ul. Belwederska 23, 00-761 Warsaw 22 840-9500/22 840-9510 dt@dt.com.pl, www.dt.com.pl
39 70
25 14
-
13 18
✓ ✓ ✓
✓ ✓ ✓
-
Real estate and investment process Intellectual and industrial property law; mergers and asquisitions trial law
Interlex; Terra Lex
82 1992
Zbigniew Drzewiecki; Andrzej Tomaszek
Koksztys Kancelaria Prawa Gospodarczego Sp.k. Al. Armii Krajowej 61, 50-541 Wroc∏aw 71 335-1450/71 335-1450 kancelaria@koksztys.pl, www.koksztys.pl
36 89
WND WND
4 1
28 25
✓ ✓
✓ ✓ -
Czech; Slovak
Commercial and corporate law Banking and finance; trial law; labor law and social insurance
WND
238 1999
Amadeusz Krawczyk
36 68
7 24
5 5
27 23
✓ ✓ ✓
✓ ✓ ✓
-
Mergers and acquisitions Banking and finance; commercial and corporate law; real estate; capital market; corporate advisory
White & Case
137 1991
Witold Dani∏owicz
35 75
26
9
18 22
✓ -
✓ -
-
Technology; media; telecom Mergers and acquisitions and other investment projects; venture capital and private equity; real estate and construction law; energy law; public orders
WND
91 1996
Stanis∏aw Grynhoff; Piotr Woêny
10
White & Case W. Dani∏owicz, W. Jurcewicz i Wspólnicy Kancelaria Prawna Sp.k. 10 ul. Marsza∏kowska 142, 00-061 Warsaw
22 505-0100/22 505-0400 warsaw@whitecase.com, www.whitecase.pl Grynhoff Woêny Wspólnicy Sp.k. ul. Pi´kna 18, 00-549 Warsaw 12 22 212-0000/22 212-0001 warszawa@gwwl.pl, www.gww.pl
English / French / Russian
German / Spanish / Italian
Other
Main specialization / Other specializations
Global affilation
Total employees / Year founded
Top local executive / Title
Managing Partner
Chairman Partner; Managing Partner
Managing Partner
Managing Partner
Managing Partner
Managing Partner
Managing Partner
Managing Partner
Managing Partners
Director
Partner
Unlimited Partners
12
T. Studnicki, K. P∏eszka, Z. åwiàkalski, J. Górski Sp.k. ul. Jab∏onowskich 8, 31-114 Kraków 12 427-2424/12 427-2333 spcg@spcg.pl, www.spcg.pl
35 63
15 20
6
3 25
✓ ✓ ✓
✓ ✓
-
Commercial and corporate law Trial law; mergers and acquisitions; banking and finance
WND
85 1988
Tomasz Gizbert-Studnicki
14
Hogan Lovells (Warsaw) LLP Sp.p. Oddzia∏ w Polsce ul. Nowogrodzka 50, 00-695 Warsaw 22 529-2900/22 529-2901 hoganlovells.warsaw@hoganlovells.com, www.hoganlovells.com
30 61
7 23
1 4
26 23
✓ ✓ ✓
✓ ✓ -
-
Commercial and corporate law Real estate; banking and finance institution; tax law
Hogan Lovells
117 1991
Beata Balas-Noszczyk
14
Dewey & LeBoeuf Grzesiak Sp.k. ul. Ksià˝´ca 4, 00-498 Warsaw 22 690-6100/22 690-6222 woffice@dl.com, www.dl.com
30 55
6 22
4
26 22
✓ ✓ ✓
✓ ✓
-
Mergers and acquisitions Securities and capital markets; venture capital and private equity; trial law; tax law; antimonopoly and competition law
Dewey & LeBoeuf
114 1991
Jaros∏aw Grzesiak
14
Beiten Burkhardt P. Daszkowski Sp.k. ul. Skorupki 5, 00-546 Warsaw 22 583-7100/22 583-7109 bblaw-warschau@bblaw.com, www.bblaw.com
30 30
1 7
4 3
13
✓ ✓ ✓
✓ -
-
Commercial and corporate law Real estate; tax law; banking and finance
Beiten Burkhardt Rechtsanwalte
45 1999
Peter Daszkowski
17
Allen & Overy, A. P´dzich Sp.k. Rondo ONZ 1, 00-124 Warsaw 22 820-6100/22 820-6199 warsaw@allenovery.com, www.allenovery.com
29 61
3 23
1 1
4 22
✓ -
✓ -
-
Banking and finance Mergers and acquisitions; capital markets; commercial and coroprate law
Allen & Overy
110 1991
Arkadiusz P´dzich
17
Kancelaria Radców Prawnych i Adwokatów Nowakowski i Wspólnicy Sp. j. Pl. Mickiewicza 18, 13-200 Dzia∏dowo, 23 697-2546/23 697-2546 dzialdowo@knw.pl, www.knw.pl
29 46
3 22
4
3 14
✓ ✓ ✓
✓ -
-
Logistics; transportation law Antimonopoly and competition law; copyright; intellectual and industrial property law; currency options
ConsortioLex
53 1998
Cezary Józef Nowakowski
19
Weil, Gotshal & Manges - Pawe∏ Rymarz Sp.k. ul. Emilii Plater 53, 00-113 Warsaw 22 520-4000/22 520-4001 pawel.rymarz@weil.com, www.weil.com
28 66
13 16
7 2
11 27
✓ ✓ ✓
✓ ✓ ✓
-
Mergers and acquisitions Trial law; securities and capital market; venture capital and private equity
Weil, Gotshal & Manges
120 1991
Pawe∏ Rymarz
20
Chadbourne & Parke, Radzikowski, Szubielska i Wspólnicy Sp.k. ul. Emilii Plater 53, 00-113 Warsaw, 22 520-5000/22 520-5001 warsaw@chadbourne.com, www.chadbourne.com
27 35
5 22
2
WND WND
✓ ✓
✓ ✓
-
Mergers and acquisitions Energy law; real estate and project funding; tax law
Chadbourne & Parke
WND 1990
W∏odzimierz Radzikowski
Senior Partner
Managing Partner
Managing Partner
Unlimited Partner
Managing Partner
Chief Parter
Managing Partner
Managing Partner
THE LIST
MARCH 21-27, 2011
Number of lawyers
www.wbj.pl
21
Rank
Company name Address Tel./Fax E-mail Web page
Total number of boardcertified lawyers / Total number of lawyers
Licensed advocates / Licensed legal advisors
Foreign / Tax advisors
Unlicensed lawyers (Master of Law degree) / Training for license
Languages used
21
Miller, Canfield, W. Babicki, A. Che∏chowski i Wspólnicy Sp.k. ul. Nowogrodzka 11, 00-513 Warsaw, 22 447-4300/22 447-4301 kontakt@pl.millercanfield.com, www.millercanfield.pl
26 47
6 14
4 2
21 11
✓ ✓ -
✓ ✓ -
Portuguese; Swedish
Real estate Technology; media; telecom; commercial and corporate law; trial law
Miller, Canfield, Paddock and Stone, P.L.C.; Employment Law Alliance; The Fource Alliance
65 1991
Wojciech Babicki
22
D. Dobkowski Sp.k. ul. Ch∏odna 51, 00-867 Warsaw 22 528-1300/22 528-1309 legal@kpmg.pl, www.kpmg.pl/ddobkowski
25 37
1 24
1
12 9
✓ ✓ ✓
✓ ✓ ✓
-
Commercial and corporate law Real estate; mergers and acquisitions; banking and finance
WND
51 1996
Dariusz Dobkowski
23
DLA Piper Wiater Sp.k. ul. Emilii Plater 53, 00-113 Warsaw, 22 540-7400/22 540-7474 warsaw.recepcion@dlapiper.com www.dlapiper.com
24 46
3 14
7
22 20
✓ ✓
✓ -
-
Mergers and acquisitions Trial law; energy law; copyright law; intelectual and industrial property law
DLA Piper
70 2007
Krzysztof Wiater
24 52
9 15
1 2
8 16
✓ ✓ ✓
✓ ✓
-
Mergers and acquisitions Energy law; trial law; public orders
TagLaw; Multilaw; Associated European Energy Consultants; The Association of European Lawyers; The International Network of Boutique Law Firms
68 2004
Andrzej Wierciƒski
Wierciƒski, Kwieciƒski, Baehr Sp.k. ul. Polna 11, 00-633 Warsaw 23 22 201-0000/22 201-0099 biuro@wkb.com.pl, www.wkb.com.pl
English / French / Russian
German / Spanish / Italian
Other
Main specialization / Other specializations
Global affilation
Total employees / Year founded
Top local executive / Title
Managing Partner
Managing Partner
Managing Partner
Managing Partner
25
Âlàzak, Zapiór i Wspólnicy Kancelaria Adwokatów i Radców Prawnych Sp.k. Al. Korfantego 141, 40-154 Katowice, 32 783-8800/32 783-8899 kontakt@kancelaria-szip.pl, www.kancelaria-szip.pl
22 47
11 11
-
7 18
✓ ✓ ✓
✓ -
Croatian
Energy law Public orders; copyright law; intellectual and industrial property law; government law
Consortio Lex
55 2002
Krystian Âlàzak
25
K&L Gates Jamka Sp.k. Al. Jana Paw∏a II 25, 00-854 Warsaw 22 653-4200/22 653-4250 warsaw@klgates.com, www.klgates.com
22 37
8 11
2 1
15 12
✓ -
✓ ✓ -
Portuguese
Economic law Court proceedings and arbitrage; public orders; intellectual property protection; banking and finance; capital markets; infrastructure; energetics
K&L Gates
65 2010
Maciej Jamka
25
Kubas Kos Gaertner - Adwokaci Sp.p. (KKG) Al. Armii Ludowej 26, 00-609 Warsaw 22 321-8300/22 321-8302 warszawa@kubas.pl, www.kkg.pl
22 43
16 6
1 -
6 15
✓ ✓ ✓
✓ ✓
Ukrainian
Trial law Banking and finance; commercial and corporate law; real estate
WND
60 1995
Andrzej Kubas
25
TGC Ordowska Kancelaria Prawnicza Sp.k. ul. Królewska 27, 00-060 Warsaw 22 653-3644/22 827-6915 tgc@tgc.eu, www.tgc.eu
22 33
3 9
7 3
4 7
✓ ✓ -
✓ ✓ -
Dutch
Commercial and corporate law Trial law and arbitrage; labor law; real estate
ALFA International; SRA, LCIA
46 1991
Nicholas Fielding; Beata Ordowska
CWW S. Cetera, M. W´grzyn-Wysocka i Wspólnicy Kancelaria Radców Prawnych i Adwokatów Sp.k. ul. W∏odkowica 10/11, 50-072 Wroc∏aw, 71 780-7600/71 780-7601 kancelaria@cww.pl, www.cww.pl
21 32
3 18
1
3 8
✓ -
✓ ✓ -
-
Energy law Adjective law; real estate; mergers and acquisitions
Consortio Lex
41 1997
Sylwester Cetera; Ma∏gorzata W´grzyn Wysocka
30
Chajec, Don - Siemion & ˚yto Sp.k. ul. Lwowska 19, 00-660 Warsaw 22 492-4000/22 370-0708 kancelaria@cdz.com.pl, www.cdz.com.pl
20 33
1 19
1 -
1 12
✓ ✓ -
✓ -
-
Mergers and acquisitions Real estate; trial law; commercial and corporate law
IAG International Advisory Group
51 2003
Andrzej Chajec
30
Roedl, Majchrowicz-Bàczyk Kancelaria Prawna Sp.k. ul. Prosta 51, 00-838 Warsaw 22 696-2800/22 696-2801 warszawa@roedl.pl, www.roedl.pl
20 72
1 11
1 19
52 14
✓ -
✓ ✓ ✓
-
Commercial and corporate law; tax law Real estate; trial law; commercial mediations and negotiations
Rödl & Partner
76 1992
Aneta MajchrowiczBàczyk
30
Tokarczuk, J´drzejczyk i Wspólnicy Kancelaria Prawna GLN Sp.k. Pl. Pi∏sudskiego 1, 00-078 Warsaw, 22 344-0000/22 344-0001 gln.warsaw@gide.com, www.gide.com
20 45
4 13
3 3
4 12
✓ ✓ ✓
✓ ✓ ✓
Romanian
Mergers and acquisitions Banking and finance; energy law; real estate law
Gide Loyrette Nouel
72 1990
Dariusz Tokarczuk
33
Siwek Gaczyƒski & Partners Sp.k. ul. Bonifraterska 17, 00-203 Warsaw 22 246-0800/22 246-0801 sgp@kancelaria.sgp.pl, www.kancelaria.sgp.pl
19 24
6 13
WND 1
1 4
✓ ✓ ✓
-
-
Commercial and corporate law Public orders; energy law; commercial contarcts
WND
28 1998
Andrzej Siwek
33
BSJP Brockhuis Schnell Jurczak Sp.k. Al. Armii Ludowej 26, 00-609 Warsaw 22 579-8900/22 579-8901 info@bsjp.pl, www.bsjp.pl
19 49
6 9
4 3
6 21
✓ -
✓ -
-
Real estate Commercial and corporate law; energy law; intellectual and industrial property law
Taylor Wessing
70 2001
Christian Schnnell
35
GESSEL, KOZIOROWSKI Sp.k. ul. Sienna 39, 00-121 Warsaw 22 318-6901/22 318-6931 mail@gessel.pl, www.gessel.pl
18 34
5 13
2 -
14 11
✓ -
✓ -
-
Mergers and acquisitions Venture capital and private equity; securities and capital markets; commercial and corporate law
WND
55 1993
Beata Gessel-Kalinowska vel Kalisz
LeÊnodorski, Âlusarek i Wspólnicy Sp.k. ul. ¸owicka 62, 02-531 Warsaw 22 646-4210/22 646-2877 kancelaria@lsw.com.pl, www.lsw.com.pl
18 47
5 13
1
7 22
✓ ✓ ✓
✓ -
-
Mergers and acquisitions Real estate; copyright law; intellectual and industrial property law; tax law
World Link for Law
64 1998
Bogus∏aw LeÊnodorski; Maciej Âlusarek
Forystek & Partnerzy Adwokaci i Radcowie Prawni Sp.p. ul. Armii Krajowej 16, 30-150 Kraków 12 622-4511/12 622-4510 kancelaria@forystek.pl, www.forystek.pl
16 35
8 8
3
4 15
✓ -
✓ -
-
Real estate Venture capital and private equity; securities and capital markets; mergers and acquisitions; commercial and corporate law; litigation and arbitration
WND
42 1997
Józef Forystek; Marek Forystek
38
Deloitte Legal, Pasternak i Wspólnicy Kancelaria Prawnicza Sp.k. Al. Jana Paw∏a II 19, 00-854 Warsaw, 22 511-0811/22 511-0813 dpoland@deloitteCE.com, www.deloitte.com/pl/kancelaria
15 31
4 11
-
16 16
✓ ✓ -
✓ ✓
-
Mergers and acquisitions; commercial and corporate law Labor law; social insurance; anti-monopoly and competition law; real estate
Deloitte
33 2007
Robert Pastenak
38
Kochaƒski Zi´ba Ràpa∏a i Partnerzy Sp.j. ul. Fredry 6, 00-097 Warsaw 22 596-4600/22 596-4601 biuro@kochanski.pl, www.kochanski.pl
15 21
9 5
1 2
1 5
✓ ✓ ✓
✓ ✓ -
-
Copyright law; intellectual and industrial property law Commercial and corporate law; real estate; tax law
International Lawyers Network; Mackrell International; Martindale Hubbell; International Bar Association; Polski Zwiàzek Pracodawców Prawniczych
49 1998
Piotr Kochaƒski
40
Kruk, Pasierbiak, Wasilewski i Wspólnicy Kancelaria Prawnicza Sp.k. ul. Solariego 6, 02-070 Warsaw, 22 825-5650/22 825-0876 kancelaria@kpww.pl, www.kpww.pl
14 18
4 10
-
2 4
✓ ✓ ✓
✓ -
-
Trial law Public orders; technology, media, telecom; labor law and social insurance
ILF; Fraud Net
21 1999
Iwona Pasierbiak
40
Magnusson - Kancelaria Prawnicza ul. Dobra 56/68, 00-312 Warsaw 022 552-7555/022 552-2550 warsaw@magnussonlaw.com, www.magnussonlaw.com
14 26
7 5
2 -
1 11
✓ ✓ -
✓ -
Swedish; Ukrainian
Real estate Commercial and corporate law; banking and finance; mergers and acquisitions
Magnusson
42 1996
Andrzej Tokaj
40
Kancelaria Radców Prawnych Stopczyk & Mikulski Sp.k. ul. Sobieskiego 104/44, 00-764 Warsaw 22 851-5253/22 851-1990 kancelaria@sm-law.eu, www.sm-law.eu
14 30
1 13
4
8 8
✓ ✓ ✓
✓ -
-
Energy law Commercial and corporate law; public orders; real estate
WND
35 2000
Przemys∏aw Stopczyk; Robert Mikulski
29
35
37
Notes: NA = Not Applicable, NR = Not Ranked, WND = Would Not Disclose. Research for The List was done in November 2010. Number of employees and ownership structure are as of October 2010. All information pertains to the companies, activities in Poland. Companies not responding to our survey are not listed.
Managing Partner
Managing Partner
Senior Partner
Managing Partner; Partner
Unlimited Partners
Managing Partner
Legal Advisor
Managing Partner
Managing Partner
Managing Partner
Managing Partner
Partners
Managing Partner
Partner
Managing Partner
Unlimited Partner
Managing Partner
Managing Partners
To the best of WBJ ’s knowledge, the information is accurate as of press time. While every effort is made to ensure accuracy and thoroughness, omissions and typographical errors may occur. Corrections or additions to The List should be sent, on official letterhead, to Warsaw Business Journal, attn. Joanna Raszka, ul. Elblàska 15/17, 01-747 Warsaw, via fax to (48-22) 639-8569, or via e-mail to wbjbol@wbj.pl. Copyright 2011, Valkea Media SA. The List may not be reprinted or reproduced in whole or in part without prior written permission of the publisher. Reprints are available.
22
ARTS & CULTURE
www.wbj.pl
MARCH 21-27, 2011
Reflecting on an age The rhythm of the nation
COURTESY OF KRZYSZTOF WOJCIECHOWSKI
“When I’m Sixty-Four” comprises works from two Polish artists, Krzysztof Wojciechowski and Zygmunt Rytka, born days apart. This age-centric show draws together biographical threads through photography and material objects. An archive of shared works reflects on the artists’ pasts, shared histories and the development of art in recent Polish history. ●
A new ballet for the Polish National Ballet by choreographer Krzysztof Pastor with music by Henryk Miko∏aj Górecki premiers this month. The four-act work explores the themes of nationhood and national myth in Poland. The performances are part of a special project created by Pastor especially for Teatr Wielki. ●
“Salt in Silver Enchanted” Historical Museum of Warsaw in Wola through April 17 Private collector Andrzej Kulesza is displaying his unique assortment of silver and platinum salt shakers publicly for the first time. The exhibition pieces vary greatly in character and aesthetic. They hail from Germany, France, Sweden, China and Japan, although most are from Poland.
The Polish pieces were made by renowned 19th century craftsmen, and display a variety of detailed flora and fauna and geometric pattern work. The juxtaposition of older and newer pieces allows for a comparison between tastes and shows the development of artistic techniques. A range of pictures and photographs (including satirical images) complements the exhibition, which details the tradition and culture of salt use from around the globe. ●
COURTESY OF HISTORICAL MUSEUM OF WARSAW IN WOLA
Art worth its salt
Get an Insider’s glimpse at all that Warsaw has to offer with the Warsaw Insider!
COURTESY OF THE POLISH NATIONAL BALLET
“And The Rain Will Pass” Polish National Ballet at Teatr Wielki, March 27, 6 pm
“When I’m Sixty-Four” Centre for Contemporary Art, Ujazdowski Castle March 25 to May 3
Run for fun The Sixth Warsaw Halfmarathon City-center, specified route March 27 at 10:00 am A 21 km race through the streets of Warsaw might be just the thing to jump-start your
spring fitness regime. The Annual Warsaw Halfmarathon, with its not-so-grueling path around the Royal Route, over the river and around the city center, is now in its sixth year. See the English-language website for updates, information,
regulations and a course map. Registration lasts until the day before the event. ● Log on to www.polmaratonwarszawski.pl to register and read the comments of past participants hailing from America, Canada and the UK
The best of Beethoven 15th Ludwig van Beethoven Easter Festival April 9-22 Organized since 1997 and held in Warsaw since 2004, the latest installment of the Ludwig van Beethoven Easter Festival kicks off at the Royal Castle with a performance featuring Michael Nagy (baritone) and Helmut Deutsch (piano) and
concludes two weeks later at the Philharmonic with a recital of Krzysztof Penderecki’s “St Luke’s Passion.” ● See www.beethoven.org.pl for
details. Tickets available from March 9 and can be bought from EMPiK ticket stands, the box office at the Philharmonic and www.ticketonline.pl
Some content provided by the Warsaw Insider. For more information on culture and entertainment in Warsaw this month, pick up the March issue.
Museums, galleries and venues in Warsaw Centre for Contemporary Art at Ujazdowski Castle ul. Jazdów 2 www.csw.art.pl Czarna Gallery ul. Marsza∏kowska 4 www.czarnagaleria.art.pl Galeria 022, DAP, Lufcik ul. Mazowiecka 11a www.owzpap.pl Galeria 65 ul. Bema 65 www.galeria65.com Galeria Appendix 2 (Praga) ul. Bia∏ostocka 9 www.appendix2.com
Warsaw’s most popular Englishllanguage lifestyle lif t l magazine i ffeatures: t : • top shopping reviews and listings • monthly calendar of parties, eventss and exhibitions • latest art, design, fashion and beauty trends • hotel, spa and fitness club reviews • up-to-the-minute resto, bar, cafe and club reviews
Subscribe to the Insider! Contact t t kwilinski@valkea.com k ili ki lk
Galeria Asymetria ul. Nowogrodzka 18a www.asymetria.eu Galeria Foksal ul. Foksal 1-4 www.galeriafoksal.pl Galeria Milano Rondo Waszyngtona 2A (Praga) www.milano.arts.pl Galeria Schody ul. Nowy Âwiat 39 www.galeriaschody.pl Galeria XX1 Al. Jana Paw∏a II 36 www.galeriaxx1.pl Galeria Zoya ul. Kopernika 32 m.8 www.zoya.art.pl
Green Gallery ul. Krzywe Ko∏o 2/4 www.greengallery.pl
Simonis Gallery ul. Burakowska 9 www.simonisgallery.com
Katarzyna Napiórkowska Art Gallery ul. Âwi´tokrzyska 32, ul. Krakowskie PrzedmieÊcie 42/44 and Old Town Square 19/21 www.napiorkowska.pl
State Archaeological Museum in Warsaw ul. D∏uga 52 (Arsena∏) www.pma.pl
Królikarnia National Gallery ul. Pu∏awska 113a www.krolikarnia.mnw.art.pl Le Guern Gallery ul. Widok 8, www.leguern.pl Museum of Independence Aleja SolidarnoÊci 62 www.muzeumniepodleglosci.art.pl National Museum in Warsaw Al. Jerozolimskie 3 www.mnw.art.pl Polish National Opera at Teatr Wielki Pl. Teatralny 1 www.teatrwielki.pl Pracownia Galeria ul. Emilii Plater 14 www.pracowniagaleria.pl
State Ethnographic Museum ul. Kredytowa 1 www.ethnomuseum.website.pl Historical Museum of Warsaw Old Town Square 28-42 www.mhw.pl History Meeting House of Warsaw ul. Karowa 20 www.dsh.waw.pl Warsaw Philharmonic ul. Jasna 5 www.filharmonia.pl Warsaw Rising Museum ul. Grzybowska 79 www.1944.pl
Rempex Art and Auction House ul. Karowa 31 www.rempex.com.pl
Wilanów Palace Museum and Wilanów Poster Museum ul. St Kostki Potockiego 10/16 www.milanow-palac.pl www.postermuseum.pl
Royal Castle Pl. Zamkowy 4 www.zamek-krolewski.com.pl
Zachęta National Art Gallery Pl. Ma∏achowskiego 3 www.zacheta.art.pl
LAST WORD
MARCH 21-27, 2011
www.wbj.pl
23
Tech Eye
Solidarity with Japan Having reached the limits of sobriety, Techeye will proceed to express solidarity with Japan in the only way we really know how – by reminding our reader (hi Mom) just how cool Japanese gadgets are. First up, a new toy from that most quintessential of Japanese electronics makers, Sony. The ICD-SX712D is slender, sensitive and sexy, everything we like in a digital voice recorder. It’s got all the usual bells and whistles, plus some extra ones (we’ll not list them here, though, because it would get pretty tedious). Suffice it to say that the best feature is the double-barreled microphone, which is perfect for our line of
which you can probably further recycle by giving it to a hamster. These are pretty standard for Casio G-Shock watches, although the GR7900EW-7 (pictured, $130) comes equipped with amenities such as a “tide and moon graph,” while the G6900EW-7 ($120) has “48 city world time.” If you’re one of those insane people who needs both features, you’ll just have to buy both watches. And finally, we present Toshiba’s RL833 series of full HD LCD TVs. These are Windows 7-certified, WAN-ready devices which practically drip with fancy acronyms like
DNLA, USB, SNOT-MONKEY, DVB-C and DVB-T. (We may have made one of those up, just so you know.) They’ve each got a “meta brain processor,” not that Toshiba bothers to explain exactly what that is. It sounds vaguely creepy, like something that will try to puree your noggin while you sleep, but that’s probably just Techeye being silly. Probably. The RL833 series models should be available at the end of this month “at a very attractive price level.” Attractive, presumably, from Toshiba’s perspective. ●
Green watch, meta brain Then there’s Casio’s GR7900EW-7 and G6900EW-7 watches, the latest from the Go Green Project line of its G-Shock brand. These timepieces have tiny solar panels embedded in their faces in order to recharge their batteries. And they come in recycled paper packaging
COURTESY OF TOSHIBA
Digital septum deviator
work. Next time we’re out interviewing whatever corporate schlub our boss has foisted upon on us, we can entertain ourself by attempting to thrust the microphone barrels up his or her nose. The extra wheezing will make transcribing interviews that much more fun. The SX712D hits the market next month; pricing as yet unknown.
COURTESY OF SONY
purest sense of the word, than any catastrophe.
CO UR TE SY OF CA SIO
To begin with, a moment of sobriety out of respect for the folks in Japan. This is a relatively alien state for Techeye, but we’re deeply partial to the island nation. After all, where else in the world can you find intelligent, (relatively) sane people devoting their whole careers to the development of robot girlfriends? Nowhere. In what other country can you buy neckties, umbrellas and “used lingerie” from vending machines? None. And who, if not the Japanese, would boldly pioneer new and practically unthinkable chewing gum products, such as “man smell” and “sparkle ninja”? No one, that’s who. We believe Japan will triumph over adversity simply because it’s more awesome, in the
Ever wanted to thrust a double-barreled object up a corporate schlub's nose? Let us know: techeye@wbj.pl
To advertise in WBJ’s classifieds section, contact Ms Agnieszka Brejwo, at (+48) 222-577-526 or abrejwo@wbj.pl
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