WBJ #16 2012

Poland’s PGE gears up for a z∏.14.6 billion wind-farm project

ECHR rules Russia mistreated relatives of Katyn massacre victims

The Chinese premier and 300 businesspeople descend on Warsaw 3

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VOLUME 18, NUMBER 16 • APRIL 23-29, 2012 . z∏.12.50 (VAT 8% included) . ISSN 1233 7889 INDEX-RUCH-332-127

Since 1994 . Poland’s only business weekly in English

REAL ESTATE Lokale Immobilia COURTESY OF BBI DEVELOPMENT NFI

Taking off Poland’s aviation industry is benefiting from tough economic times

• Ghelamco plans • RealGreen conference • Koneser revitalization 15-17

Interview: Jan Sechter

12-13

WIKIMEDIA COMMONS

The Czech Republic’s ambassador to Poland talks about the two countries’ close relationship 8-9

Contractor DSS’s bankruptcy spells new troubles for the A2 highway 6

In this issue News . . . . . . . . . . . . . . . . . . . . . . .2-4 Business . . . . . . . . . . . . . . . . . . . .5-6 Finance & Economics . . . . . . . . . . .7 Interview . . . . . . . . . . . . . . . . . . . .8-9 Opinion & Analysis . . . . . . . . . . . .11 Cover Story . . . . . . . . . . . . . . . .12-13 Energy in Focus . . . . . . . . . . . . . . .14 Lokale Immobilia . . . . . . . . . . .15-17 The List . . . . . . . . . . . . . . . . . . .18-19 Markets . . . . . . . . . . . . . . . . . . . . . .20 Sports . . . . . . . . . . . . . . . . . . . . . . .21 Lifestyle . . . . . . . . . . . . . . . . . . . . .22 Last Word . . . . . . . . . . . . . . . . . . . .23

Good omens Exports growing, SMEs investing and firms hiring all provide optimistic signs for the Polish economy 5, 7

SHUTTERSTOCK

Fiery words The memory of Smolensk continues to heat the Polish political scene

NEWS

www.wbj.pl

Japanese investments coming?

IN THE SPOTLIGHT

Numbers in the News

Chinese Premier’s visit to Warsaw

z∏.14.6 billion

Polish President Bronis∏aw Komorowski wants the country to create a museum devoted to the crimes of communism, he said last week. According to the president, Poland is the only central and eastern European country without such a museum. “Without the knowledge of the past, it is difficult to build a sense of continuity of the state and nation,” he said.

Budget deficit grows

COURTESY OF WIKIMEDIA COMMONS

Representatives of Keidanren, the Japan Business Federation, were in Warsaw for a three-day visit last week, in the hope of finding possible investment opportunities in Poland. The delegation included representatives from some of the biggest Japanese companies, including Mitsubishi, Toshiba and Toyota Motor Corporation. Potential areas of cooperation includes technology and energy.

Komorowski wants communism museum

APRIL 23-29, 2012

This week Chinese Prime Minister Wen Jiabao will pay a keenly awaited official visit to Warsaw. Mr Wen’s arrival will mark the highest-level visit since 1987 – the last time a Chinese prime minister came to Poland – and reflects the desire of both countries to strengthen bilateral ties, especially economic ones. Mr Wen will be accompanied by some 300 businessmen from his country. The Chinese PM’s visit comes after Polish President Bronis∏aw Komorowski’s trip

to China in December of last year during which the two countries signed a strategic partnership agreement. Including Poland, eight EU member states have now signed such agreements with the Asian superpower. Poland has shown great interest in increasing its exports to China and in attracting significant Chinese investment. Last year, Polish exports to China amounted to an unimpressive €1.3 billion. Imports from China were roughly 10

times that. As part of an effort to make China more accessible to Polish businesspeople, Poland’s national flag-carrier LOT Polish Airlines will begin direct flights from Warsaw to Beijing in May this year. The government also recently announced a program called “Go China” to help Polish businesses enter the Chinese market. Among other things, the program seeks to provide entrepreneurs with information about Chinese law and business culture. During Mr Wen’s visit, a special Poland-CEE-China forum will be organized, with 300 Polish firms taking part. Delegations from 15 countries in the region will be present, including several prime ministers. Mr Wen is expected to announce a new Chinese investment strategy in the region during the forum. The biggest investment made by a Chinese firm in Poland in recent years was LiuGong’s takeover of parts of Huta Stalowa Wola in a deal estimated to be worth some z∏.250-300 million. Also this month The Bank of China, whose assets are estimated at $130 billion, is expected to open its first branch in Warsaw. Analysts believe the bank’s primary role will be to provide financing for Chinese investments in Poland. Remi Adekoya

is the cost of the three offshore wind farms that will be built by Polish energy firm Polska Grupa Energetyczna in the Baltic Sea.

3.9% was the year-on-year inflation rate in March, according to data published by the Central Statistical Office (GUS).

z∏.860 million is how much foreign soccer fans will spend in Poland during the Euro 2012 football championship, according to Citibank.

13.3% was the estimated unemployment rate in March according the Ministry of Labor and Social Policy.

Quote of the Week “What else can we call a situation in which the entire elite dies, in which the head of the nation is decapitated? That is a declaration of war.” Law and Justice politician Antoni Macierewicz, referring to the 2010 Smolensk disaster and his belief that Russia may have been behind it.

Figures in focus Main trading partners of the EU27 Non-seasonally adjusted data, January 2012 (in € billions) Imports from

Exports to

Trade balance

30 25

5.9

-14.7

-9.6

Poland to continue patrolling Baltic skies The Polish air force will continue to participate in NATO’s Baltic Air Policing mission, which protects the air space of Estonia, Latvia and Lithuania, Polish President Bronis∏aw Komorowski said last week. The heads of Poland, Latvia and Estonia met in Warsaw ahead of a NATO summit in May. The leaders also discussed Russian plans to build up missile capabilities in the Kaliningrad oblast, on Poland’s northern border. ●

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Atelier Amaro, which recently received Poland’s first Michelin Rising Star, is described by some as the best restaurant in Warsaw and by others as the best restaurant period. To read about this culinary treasure in the capital, log on WBJ.pl

Sta tes

Culinary rising star

ite d

Chef Wojciech Modest Amaro

On WBJ.pl

The state budget deficit was nearly z∏.23 billion in March, almost 66% of the entire-year estimate. In accordance with the Budget Act, the gap this year cannot exceed z∏.35 billion. “There is no significant risk [of exceeding] the annual plan,” Jakub Borowski, chief economist at Kredyt Bank, told Gazeta Wyborcza.

Source: Eurostat

Company index AgustaWestland ................13 Globe Trade Centre............17 PZL Mielec ..................12, 13

DATELINE

Apple ....................................6 Griffin Group ......................15 PZL-Rzeszów ....................12

April/May APRIL 18-29 BELGIAN ESCAPADE Event:

Location: Web:

During this edition of the Belgian Escapade, organizers are planning many cultural and business events such as: a Business Mixer accompanied by a tasting of Belgian products and the opening of a René Magritte photography exhibition. Kraków belgium.pl

Apsys Polska......................17 Hamilton Sundstrand ........12

DESA AUCTION

Event:

Auction of works on paper DESA Unicum, Warszawa, ul. Marsza∏kowska 34-50 desa.pl

Location:

Web:

MAY 1-3

Location: Web:

The 15th edition of Poland’s HR Congress, under the motto “HR – What’s the game we play?” The event will explore the strategic role of HR within organizations. Warsaw kongreskadry.pl

YOUNG ART AUCTION

Event:

Starting price of all items: z∏.500 DESA Unicum, Warszawa, ul. Marsza∏kowska 34-50 desa.pl

Location:

Web:

ARE ....................................15 Hispano-Suiza....................12 Atelier 2 Architekci ............15 Huta Stalowa Wola ..............2

BBI Development NFI........15 Jones Lang LaSalle ..........16

RWE ......................................9

Bögl & Krysl ........................6 Kulczyk Investments..........14 Sikorsky Aircraft

PRCH RETAIL HORIZONS

DM BZ WBK ........................5 Netia ..................................17

Event:

Polish Council of Retail Centres’ Retail Horizons 2012 Conference gathers executives, investors, developers, administrators and retail chains from the Polish shopping center market. Warsaw prch.org.pl

DSS ......................................6 Panattoni Europe ..............17

Web:

Ruch....................................15

Bingo Airways ....................12 Kompania W´glowa ..........14 Shanghai Electric ..............14

Location:

Development ......................15 Roubini Global Economic....7

Web:

Location:

RED Real Estate

Axel Springer ......................5 Immobel Poland ................15

Bin Zayed Group ..................7 Juvenes-Projekt ................15

ANNUAL INVESTMENT MEETING 2012

Raiffeisen..............................6

Avio ....................................12 Imagine Live Media............16

This emerging markets FDI-focused event provides institutional, corporate and individual investors with a comprehensive set of guidelines for their future investment decisions in high growth regions. Dubai aimcongress.com

Event:

23-25 INTERNATIONAL HR CONGRESS & EXPO Event:

Antal International ..............5 Goodrich ............................12 PZL-Âwidnik ......................13

Bulanda, Mucha

LiuGong ................................2 Corporation ........................12

Architekci............................15 Matexi ................................15 Skanska Commercial BZ WBK ................................7 MGPA ..................................16 Development Europe ..........6 CEDC ....................................6 Mitsubishi ............................2 Société Générale..................8 Chapman Taylor ................16 Morgan Stanley ....................7 COVEC ..................................6 MTU Aero Engines ............12

The Bank of China ..............2 TNS ......................................3 Toshiba ................................2

EADS ..................................12 PGE ....................................14 EFG Eurobank Ergasias ......6 PKN Orlen ......................9, 14 elbfonds Development ......15 PKO BP ................................6

Toyota Motor Corporation ..2 TVN ......................................5 Vac Aero..............................12

Forward Funds ....................7 PMR Publications ................6 Vivendi ..................................5 GE ......................................12 Polska Telefonia Cyfrowa ..17 Warsaw Stock Exchange ....6 Ghelamco Poland ..............17 Pratt & Whitney ................12 Work Service ......................12

NEWS

APRIL 23-29, 2012

www.wbj.pl

Politics

Kaczyƒski, Law and Justice ratchet up Smolensk rhetoric Poland’s largest opposition party, Law and Justice (PiS), has been ratcheting up its rhetoric against Prime Minister Donald Tusk’s government following the second anniversary of the April 10, 2012 Smolensk catastrophe in which president Lech Kaczyƒski and 95 others perished. Polish and Russian investigations largely put the causes of the crash down to bad weather, pilot error and poor training. But PiS leader Jaros∏aw Kaczyƒski recently suggested in an interview that the late president, his twin brother, was murdered. He also implied Poles could be behind the crime, saying the “roots of the assassination could have been in Poland.” Last week, he spoke at a rally held in Kraków to commemorate the burial of President Kaczyƒski at the Wawel Cathedral. “We are fighting for Poland

COURTESY OF PIS

Following the second anniversary of the Smolensk disaster, one PiS politician accused Russia of “declaring war” against Poland

Jaros∏aw Kaczyƒski implied Poles could be behind his brother’s “assassination” afraid of [Russian Prime Minister Vladimir] Putin and he is also afraid of Lech Kaczyƒski … the symbol of a free Poland.”

to finally become a country of free Poles … a free country without external enemies and without those who represent those enemies here either out of stupidity or simply on purpose,” said Mr Kaczyƒski, adding that the “Smolensk lie” – referring to the findings of the Polish and Russian investigations – “has been smashed to smithereens.” Mr Kaczyƒski also said that Poland needs a “moral revolution” and that Prime Minister Tusk “for reasons he knows is

A ‘declaration of war’ Meanwhile, Antoni Macierewicz, a PiS MP who heads the parliamentary team investigating the Smolensk catastrophe went even further. “What else can we call a situation in which the entire elite dies, in which the head of the nation is decapitated? That is a declaration of war.”

Mr Macierewicz also warned of further attacks. “Even if the next attack is postponed for a year, two or five, we need to know that [the Smolensk catastrophe] was a declaration of war and I am saying this fully aware of all the consequences.” In response Grzegorz Schetyna, deputy leader of the ruling Civic Platform (PO) and former Speaker of the Sejm (Poland’s lower house of parliament) called the statements “shameful.”

“The prosecutor’s office should draw conclusions from this and press charges where the law is broken,” he said. On Thursday last week, Prime Minister Donald Tusk finally stepped into the fray, decrying PiS’s rhetoric as “negative” and “aggressive,” and warned of “practical consequences.” “What we see now in Poland is the opening of a new front in the domestic cold war … those who today are uttering those words full of hatred and aggression, words which directly and negatively affect Polish national interest, these people should know that those words might have practical consequences,” said the PM. “Joke time is over,” he added. A recent poll conducted by CBOS showed PO had the support of 29 percent of voters, while PiS had 22 percent. Some 21 percent of those polled expressed uncertainty about which party they support. This is the highest level of uncertainty since last autumn’s elections, according to CBOS. April also marks the first month in which PO has not lost any support, while PiS lost one percent since Remi Adekoya last month.

Katyn verdict

ECHR rules against Russia in Katyn case

The European Court of Human Rights (ECHR) in Strasbourg has found Russian authorities guilty of the degrading and inhumane treatment of 10 Polish nationals whose relatives were killed in the 1940 Katyn massacre. It also said Russia had breached its obligation to cooperate with the ECHR. The families who brought the case to the ECHR contended that Russian authorities had failed to carry out a full investigation into the tragedy, and that the applicants were submitted to degrading treatment because they were denied information about the whereabouts of the victims for such a long time. “As regards the group of 10 applicants [who were the closest relatives of the Polish officers or state officials killed in 1940], the court found that

they had suffered a double trauma: losing their relatives in the war and not being allowed to learn the truth about their death for more than 50 years because of the distortion of historical facts by the Soviet and Polish communist authorities,” the judgment reads. “The court was struck by the apparent reluctance of the Russian authorities to recognize the reality of the Katyn massacre, [and] found it hard to disagree with the applicants’ argument that a denial of the reality of the mass murder ... demonstrated an attitude lacking humanity.” However, the court found it could not examine the applicants’ complaint that the Russian authorities failed to carry out an adequate criminal investigation into the circumstances surrounding the deaths of their relatives. The ruling regards the case of Janowiec and Others v. Russia, brought to Strasbourg by 15 Polish nationals whose relatives were among the almost 22,000 army officers and other Polish nationals

murdered by the Soviet secret police (NKVD) in and around the Katyn Forest, Russia, between April and May 1940. “We will be able to judge this verdict when we learn its details and precise justification,” said Justice Minister Jaros∏aw Gowin after the verdict was made public, adding that “millions of Poles have a feeling of satisfaction that one of the most heinous crimes

ever committed against the Polish nation will not go unpunished.” For decades, Soviet authorities refused to admit responsibility for the deaths, instead blaming them on the Nazis. This was until 1990 when then-Soviet leader Mikhail Gorbachev formally admitted that the executions were the responsibility of the NKVD. On November 26,

2010, the Russian parliament reiterated that the “mass extermination of Polish citizens on USSR territory during World War II” had been carried out on Stalin’s orders. Any party may now request that the case be referred to the ECHR’s Grand Chamber within the next three months for a final judgment. Alice Trudelle, Remi Adekoya

Poles’ Euro 2012 optimism The vast majority of Poles are optimistic about Euro 2012, according to the results of a new survey carried out by TNS for the company organizing the tournament, PL.2012. A total of 80% of those questioned said they were optimistic about the organization of the upcoming soccer tournament. Meanwhile, 63% of respondents said they think that the tournament in Poland will definitely be a success. This is compared to just 49% of respondents in a similar survey carried out in 2009.

Inflation drops below 4% As predicted by analysts and the Ministry of Economy, the Central Statistical Office (GUS) announced that the year-on-year consumer price index inflation rate in March dropped to 3.9% from 4.3% in February. However, economists do not expect price rises to continue to slow in the short term. The recent increases in gas prices are worrying, since they might push the inflation rate up in the coming months, analysts said.

Poland commits $8 bln to IMF The head of the International Monetary Fund said last Wednesday Poland had committed $8 billion in additional financing resources to the global lender ahead of a meeting of finance chiefs in Washington over the weekend. “This is part of a concerted action among important creditors to ensure the Fund has sufficient resources to tackle the crisis and to promote global economic stability,” IMF managing director Christine Lagarde said in a statement.

Wage growth slows COURTESY OF WIKIMEDIA COMMONS

The European Court of Human Rights criticized Russia’s treatment of Katyn victims’ relatives

The ECHR found Russia guilty of inhumanely treating victims’ families

Wages in companies that employ 10 or more workers increased by an average of 3.8% y/y in March in nominal terms, the Central Statistical Office (GUS) said last Wednesday. This was a drop from the 4.3% rise seen in February. ●

NEWS

www.wbj.pl

APRIL 23-29, 2012

Corruption

COURTESY OF WIKIMEDIA COMMONS

Former sports minister jailed for corruption Tomasz Lipiec, who served in the PiS-led government, has been convicted of soliciting and accepting bribes

Over 10,000 people marched between Auschwitz and Birkenau

March of the Living held to remember the Holocaust

COURTESY OF WIKIMEDIA COMMONS

A Warsaw district court has sentenced Tomasz Lipiec, who was sports minister in the government led by Law and Justice (PiS) from 2005-2007, to three and a half years in jail on corruption charges. The 41-year-old, who is a former Olympic race walker, was accused by prosecutors of having taken at least z∏.270,000 in bribes. Mr Lipiec was involved in two separate investigations: one from his time as minister and another, earlier case when he was head of the Warsaw Sports and Recreation Center. In the earlier case, Mr Lipiec was accused of accepting bribes totaling z∏.170,000 regarding the renovation of an ice rink. He was acquitted of this particular charge. But last week he was found guilty of demanding and accepting a bribe of z∏.100,000 from Tadeusz M. before making Mr M. – whose last name cannot be revealed in accor-

The event brought together World War II concentration camp liberators and Holocaust survivors

Mr Lipiec was sentenced to three and a half years in jail dance with Polish law – the deputy director of the Central Sports Center (COS). This offense occurred while Mr Lipiec was sports minister. He was also found guilty of having instructed Tadeusz M. to falsely employ a man at COS who would actually serve as Mr Lipec’s personal driver and who would earn more than the standard market salary. Moreover, he was found to have instructed that another person be employed in the sales department of COS to deal with the business of the

outdoor market at the former Tenth Anniversary Stadium in Warsaw, though it was set to be closed down shortly to make way for construction on the new National Stadium ahead of the Euro 2012 soccer championships. Finally, Mr Lipiec was found guilty of signing fictitious work agreements with his son’s nanny. The main witness in the case was Tadeusz M., who was described by the trial’s judge as “consistent and credible,” during the proceedings. Remi Adekoya

Over 10,000 international students took part last Thursday in the March of the Living, an educational program that brings together students from a variety of backgrounds on Yom Hashoah, Holocaust Remembrance Day. They marched between Auschwitz and Birkenau, the two parts of the Auschwitz-Birkenau Nazi extermination camp located in southern Poland. This year’s march, which marked the event’s 25th anniversary, also brought together World War II concen-

tration camp liberators and Holocaust survivors, most of whom had never met before. “The 2012 March of the Living is dedicated to survivors and liberators,” said Dr. Shmuel Rosenman, chairman of March of the Living. “Liberators are among our most relevant and credible witnesses. When our students listen to a witness, they become a witness and are superbly equipped to carry the message forward to future generations.” Following the march and a week in Poland spent studying the roots of the Holocaust, members of the group flew to Israel. “Three generations removed from the events of the Holocaust, it is imperative to establish an incontrovertible

and everlasting testament to the truth and ensure a brighter future for all humanity,” said Dr David Machlis, vice chairman of March of the Living. “For the sake of history and humanity, we must record [survivors’ and liberators’] experiences and preserve their recollections while we are still able.” Approximately six million Jews and millions of other targets of Nazi aggression were killed during the Holocaust. The Auschwitz-Birkenau complex was the largest of the death camps established by the Nazis. Between 1940 and 1945, an estimated 1.1 million people – most of them Jews – were murdered there. Soviet troops liberated Auschwitz on January 27, 1945. Gareth Price

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INDUSTRY NEWS

APRIL 23-29, 2012

www.wbj.pl

Enterprise

Polish SMEs bullish on investment for 2012 A survey of seven major EU economies revealed that Polish SMEs have the most optimistic investment plans this year In 2012, Polish small and medium-sized enterprises (SMEs) plan to invest 34 percent more than they did last

year and are far more bullish than their counterparts in the Czech Republic, France, Germany, Hungary, Italy and the UK according to a GE Capital survey. Polish SMEs intend to invest €35.3 billion over the next 12 months and with a “net confidence score” of 39.8 percent, are by far the most optimistic out of all those sur-

veyed. Of the Western European economies surveyed, German SMEs were the most confident, having plans to increase investments by 17 percent year-on-year in 2012. SMEs in all other countries surveyed were either in negative territory, meaning they will be investing less this year than in 2011, or expecting single-digit

Recruitment

increases in investment in 2012. The manufacturing equipment and commercial fleet sectors are expected to benefit the most from the positive attitudes of SMEs in Poland. On average, survey respondents said that they would invest 53 percent more in commercial vehicles and 44 percent more in manufactur-

ing equipment than they did last year. The IT sector is also likely to benefit, since Polish SMEs expect to increase their expenditures on IT hardware by 8 percent and by 14 percent on software. A key reason for this is that they need to build capacity for servicing an expected increase in new orders, providing further

proof of Polish SME optimism. In general, current investment is mainly aimed at enhancing efficiency and productivity, servicing growth in new orders and replacing deteriorating equipment. The report was based on a survey of 1,750 SMEs in seven countries. Remi Adekoya

Online media

Optimistic hiring figures are Ringier Axel Springer a positive signal for the economy Media to take over Onet.pl? its potential for development. Our neighbor Slovakia was also characterized by optimistic growth rates for employment of specialists and managers, but the rate of redundancies there is now 46 percent,” he added. The percentage of specialists and managers who were dismissed in Poland during Q1 is described by Antal as being at a “low and stable level.” In total, 16 percent of companies surveyed said they dismissed highlevel employees in the first quarter, with 15 percent saying they planned to do the same in the current quarter. Most dismissals were in pharmaceutical firms, telecommunication companies and law firms. Gareth Price

Accountants’ paradise Percentage of employers expecting to recruit managers or specialists in Q2 2012, by sector 100 80 60 40 20

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Recruitment of managers and specialists in Poland during the first three months of this year exceeded projections made by employers prior to the start of the quarter, a new report has found. Some 58 percent of employers said in response to a survey by executive recruitment firm Antal International that they took on new professionals and managers in Q1. Before the start of the quarter, just 49 percent said they planned to take on that type of employee. Poland was therefore one of the world leaders when it came to the percentage of companies that recruited specialists, ranking 11th out of the 85 countries surveyed by Antal. Artur Skiba, managing director Antal International Poland, said the results “clearly show that the projections for an economic downturn proved to be exaggerated.” Polish financial and accounting centers undertook the most recruitment activity in Q1, with 85 percent of employers taking on managers and

specialists. Next up were accounting and consulting firms (72 percent), followed by banking and financial institutions (67 percent) and automotive and aviation (65 percent) firms. Poland’s strong performance is seen by Antal as evidence that its economy is becoming increasingly competitive. “It is worth noting that Poland belongs not only to the group of countries where recruitment of specialists and managers is the most dynamic, but also that the percentage of employers who dismiss workers is increasingly low,” said Mr Skiba. “This demonstrates the stability of the Polish economy and

Employment of specialists and managers exceeded projections in Q1, a good sign for the Polish economy

Source: Eurostat

The German-Swiss media company is now in exclusive talks with TVN over the z∏.1.4 bln portal Polish media giant TVN has entered into exclusive negotiations with Ringier Axel Springer Media over establishing a “strategic alliance” for its portal Onet.pl, the firm said last week. “This confirmed earlier rumors; it was not a surprise, as was reflected in investors’ lack of reaction. TVN’s stock was not up on the news, and actually went down during the week,” said Dariusz Górski, an analyst at DM BZ WBK. TVN said it expects to retain a minority stake in the portal and to continue to be involved in its joint development. “Onet is ideally positioned to expand [and] benefit from the fast-paced evolution of the Polish media landscape as well as the rapidly expanding online market. A future partnership with Ringier Axel Springer Media AG would allow Onet to dynamically develop its existing business as well as benefit from complementary strength of a new

TVN wants to retain a minority stake in Onet ownership structure,” Markus Tellenbach, president and CEO of TVN, said in a statement. Exclusive talks will run until May 31. Mr Górski said the wording of the agreement is reminiscent of TVN’s recent and “very complex” deal with France’s Vivendi. But contrary to that deal, Mr Górski said Onet’s sale would likely bring TVN cash, which would help the firm pay its debts. TVN’s debts currently stand at z∏.2.5 billion, while Onet is valued at z∏.1.4 billion. According to Californiabased web traffic reporting

portal Alexa, Onet.pl is currently the sixth-most popular website in Poland. Onet holds the top position among other general news portals such as Wirtualna Polska and Gazeta.pl. Ringier Axel Springer Media, German publisher Axel Springer’s joint venture with Swiss media company Ringier, manages a portfolio of over 70 print titles and more than 60 digital platforms across Central and Eastern Europe. It owns Polish daily Fakt and weekly Newsweek Polska. Alice Trudelle

BUSINESS

www.wbj.pl

The National Bank of Poland should raise interest rates by half a point to 5%, because inflation has remained “stubbornly high” and Poland’s slowdown has been “relatively mild” PKO BP chief economist Rados∏aw Bodys said. The first quarter-point rise is likely to be seen as early as in May “if monthly data doesn’t surprise,” while the same rise is expected following Q2, Mr Bodys told a conference on Tuesday. The central bank warned in April that an interest rate hike is likely if inflation continues to exceed 3.5%.

Poles drank z∏.1.8 billion worth of wine in 2011 Sales of wine in Poland totaled z∏.1.8 billion in 2011, representing an increase of some z∏.500 million over a period of just five years, reported Puls Biznesu. And because Poles still drink 10 times less wine than their European neighbors on average, there is significant potential for further growth in the Polish wine market. “Gains on the market have persisted for several years and we expect that trend to continue in 2012,” said Anna Za∏uska, a spokesperson for beverage company CEDC. ●

Road building

A2 contractor DSS declared bankrupt Subcontractors have threatened to “block Warsaw” unless they receive payment for their work A court in Warsaw ruled last week that aggregates supplier and road builder DolnoÊlàskie Surowce Skalne (DSS), which was working on Section C of the A2 highway, is to be declared bankrupt. DSS, which said it would appeal the decision, was contractor for Section C in a consortium with Czech-German firm Bögl & Krýsl. DSS filed for bankruptcy, but had hoped to reach agreement with its creditors before liquidation proceedings began. A number of DSS’s subcontractors which haven’t been paid for their work have also filed for bankruptcy. At the

end of last year, DSS had z∏.836 million in debts, Wyborcza.pl reported. Its main creditors are Kredyt Bank and bond holders. Bögl & Krýsl has announced that it will take over all work on Section C and that it would complete construction by the deadline. This task became harder in the second half of last week, when a number of subcontractors working on the section drove excavators and trucks onto the A2, blocking construction work in protest at having not been paid by DSS. “I am in a dramatic situation. I employ hundreds of men and their fate is now threatened,” Pawe∏ Winnicki, owner of one of the subcontracted firms, told Gazeta.pl, adding that his company has not been able to make contact with DSS.

“If we do not receive money within the next two weeks, we will block the whole of Warsaw,” he added. WBJ was unable to contact representatives at DSS. Also, the firm’s website has been taken down. DSS has reportedly said that the main reason it filed for bankruptcy was that it had become too heavily engaged in road building, and especially in the construction of the A2. Some experts have said the public procurement process isn’t sufficiently rigorous in establishing whether a contracted company has the wherewithal to pay its subcontractors. “This contract was simply too large for [DSS] – even in a consortium with Bögl & Krýsl,” said Bart∏omiej Sosna, head construction analyst at PMR Publications. “DSS is mainly a producer

COURTESY OF WIKIMEDIA COMMONS

Interest-rate hike?

APRIL 23-29, 2012

DSS said the A2 project was behind its bankruptcy of aggregates and this was its first contract as a general contractor, unfortunately unsuccessful.” Chinese company COVEC, which was the contractor for

Section C before DSS and Bögl & Krýsl, had its contract terminated last year after it also failed to pay subcontractors on time. Gareth Price

Poland leads European mobile-commerce boom Mobile transactions in Poland grew by 722 percent last year, according to a report by zanox, a Berlin-based online advertisement firm. That’s compared to a 313 percent increase for Europe in general, making Poland by far the fastest-growing mobilecommerce market in Europe in 2011. The zanox network recorded 2 million mobile transactions totaling €120 million over the last year. “The mobile commerce revolution has already started and it is led by Poland,” says the report.

“Just behind us are the Nordic countries, which globally generate the biggest value of mobile transactions. The most popular [sectors for mobile transactions] in Poland are airline offers and shopping groups,” said Jakub Maj, zanox sales director for Central and Eastern Europe. While the Google-operated Android system is popular for mobile commerce in Poland, with some 43 percent of Poles using it, Apple’s iOS system is currently the most popular in Europe. “Our research shows that

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

Operators should not collect data A draft bill to amend the Telecommunications Law has been filed in parliament. Pursuant to the draft, telecommunication operators would be able to store network users’ data for just six months and not for two years as is currently the case. At the end of this six-month period the data should be destroyed unless it has been secured by the relevant authorities. The draft’s authors believe the change will have a positive impact on society, since a prolonged period of data storage could intefere with citizens’ rights and freedoms.

Changes to civil procedures On May 3, 2012 an amendment to the Civil Procedure Code will come into force. The most important change is that the practice of carrying out separate proceedings in

commercial cases is to be ended. This means that disputes between entrepreneurs relating to their business activities will be subject to general rules of civil procedure. The changes are set to speed up and facilitate proceedings in civil courts.

Limited liability in case of car damage On April 12, 2012 the Supreme Court, composed of seven judges, introduced a resolution (court ref. no. III CZP 80/11) on civil liability regarding insurance held by the owner of a vehicle. At the request of the injured party, insurance companies are obliged to pay compensation, including for the costs of new parts needed to repair the damaged vehicle. If an insurance company can prove that this has led to an increase in the value of a particular vehicle, compensation may be reduced by the amount of this increase. ●

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50 percent of mobile transactions in Europe are done on an iPad … and 75 percent of all transactions are done on an Apple product,” said Mr Maj. However, the study also

shows that the popularity of the iOS has recently been decreasing in favor of Android. “If we were to add up all the equipment which uses the iOS system, that is the iPhone,

iPod and iPad, then [the number of people using] this system [for mobile commerce] has dropped by 7 percentage points since last year,” the company said. Izabela Depczyk

Banking

Regulator OKs Raiffeisen’s takeover of Polbank Approval was granted after Raiffeisen agreed to float some of the entity on the WSE by mid-2016 Austrian bank Raiffeisen has had its €490 million takeover of a controlling stake in Polish lender Polbank approved by Poland’s Financial Supervision Authority (KNF). The acquisition of the 70 percent stake in Polbank, which was previously the Polish arm of Greek lender EFG Eurobank Ergasias, was approved at a meeting of the KNF last week. This came after Raiffeisen agreed to float at least 15 percent of the newly combined entity of Polbank and its Polish unit Raiffeisen Bank Polska on the Warsaw Stock Exchange no later than mid-2016. “The KNF took particular account of the bank’s business plan and obligations submitted by the investor … [including] the introduction of the combined bank’s shares for trading on the Warsaw Stock Exchange no later than June 30, 2016,” the KNF said in a

statement. The regulator added that it took into account the commitments made by the investor for the sound and prudent management of the bank in areas such as its capital levels and its dividend policy. As a result of the acquisition of Polbank, Raiffeisen has significantly strengthened its position in the Polish market. Polbank currently has more than 800,000 customers in Poland and operates over 300 branches. The transaction was agreed

to by the relevant companies in February last year but needed the approval of the KNF before it could be completed. When the asset was first put up for sale, Polbank’s Greek owner reportedly intended to sell at most half of its stake, keeping overall control of the bank for itself. However, this figure was eventually increased to 70 percent of the whole company to ensure Raiffeisen could take complete control and merge the two banks. David Ingham

COURTESY OF WIKIMEDIA COMMONS

Raiffeisen Bank Polska will merge with Polbank

FINANCE & ECONOMICS

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Economic growth

Exports

IMF raises forecast for Emerging Europe

Polish exports to Russia see 40 percent rise

The International Monetary Fund sees the region’s prospects as brighter than it did at the beginning of the year

In the first two months of 2012 exports to Poland’s eastern neighbor were worth z∏.4.7 billion

Veronika Joy

8 * estimate 6

11*

10 20

changing economic situation,” said Mr Wancer. Among possible solutions for boosting bilateral trade and investment is a more active policy involving regional institutions, both American and Polish, said Eric Stewart, President of US-Poland Business Council.

American investment

Source: Central Statistical Office, Ministry of Economy

Media patronage

AIM Congress 2012

US FDI net inflow to Poland (in $ millions), 2000-2010 1,500

Business leaders set for emerging markets conference in Dubai

1,075 650 225

-200 20

In the run-up to the PolishAmerican Business Summit scheduled for June 20 in Warsaw, the American Chamber of Commerce, PKPP Lewiatan and the US-Poland Business Council have called for increased economic cooperation between the two nations. They outlined potential areas for growth in a White Paper launched last week in the capital. Since Poland’s transformation to a market-based economy, FDI has been the main driver of Polish-American economic relations, the study notes. In that time, US companies have invested over $20 billion in Poland, making it the largest US FDI recipient among the CEE countries, including Russia and Ukraine. But an important part of the $3.7 billion in exports from Poland to the US in 2011 was generated by American companies, the report found. “Our businesses have the ability to enter the US market. However, the US so far has been located outside the circle of interest of the majority Polish exporters and a lot of effort needs to be made to increase the volume of trade in both directions,” said Henryka Bochniarz, president of PKPP Lewiatan. On the other hand, one of the major concerns for US

investors, said Joseph Wancer, chairman of the American Chamber of Commerce in Poland, is the future of government programs supporting investment, including investment subsidies and tax reliefs in special economic zones. “The current system is not flexible and not apace with the world’s rapidly

A new study has found that while US companies have invested over $20 billion in Poland over the last 20 years, more can be done

Room for growth

Exports to Russia 2001-2011 (in $ billions)

Polish-US economic relations

David Ingham

Going East

Remi Adekoya

Polish exports to Russia increased by 40.7 percent in the first two months of 2012, and were worth a total of z∏.4.7 billion, according to Poland’s Central Statistical Office (GUS). During the same period Poland’s overall exports grew by only 0.1 percent, while exports to the country’s main trading partner Germany fell by 1.9 percent. Exports to the Czech Republic, France, Hungary, Italy, Spain and Sweden also decreased. “The fact is that Polish exports to eastern countries including Russia have been rising for some time now,” BZ WBK analyst Piotr Bielski told WBJ. “The reason for this is that Polish companies are trying to exploit opportunities to find new markets. Some economies in the euro zone are suffering economic slowdown and other countries are subject to recession, so Polish companies are

sixth overall in a table of Poland’s export markets for January and February 2012. Germany still remains Poland’s main export market. In the first two months of the year alone exports to Poland’s western neighbor were worth some z∏.24.7 billion, 26 percent of Poland’s total exports during this period. Great Britain was ranked second, with exports worth z∏.6.3 billion. France was ranked third with z∏.6.2 billion.

having to look for new more profitable markets,” he said. Mr Bielski added that he expects this trend to continue because, “prospects for the euro zone are definitely gloomy.” Among the most popular exports currently being sold to Russia are cosmetics, personal hygiene products, chemical products, vehicles and machinery, and food. However, despite the significant increase in exports to Russia, the country was only ranked

20 02

as well as the Czech Republic, which the IMF now classifies as Advanced Europe. The IMF is also slightly more optimistic about the global economy than it was in its previous report. It now expects global output to grow by 3.5 percent this year and 4.1 percent in 2013. Last year, the global economy expanded by 3.9 percent. Meanwhile, the euro zone, a key trading partner for Poland, is expected to expand by 2.1 percent this year. “Policy has played an important role in recent improvements, but various fundamental problems remain unresolved,” the IMF wrote in its report.

20 01

The IMF has raised 2012 growth expectations for Emerging Europe, a region which includes Poland, to 1.9 percent, up from the 1.1 percent it forecast in January this year. The IMF also expects the region to grow by 2.9 percent next year, up from its earlier 2.4 percent forecast. Poland is expected to grow by 2.6 percent in 2012 and by 3.2 percent in 2013, making it the leader in terms of growth in

the region, according to the organization’s bi-annual World Economic Outlook published last week. “Near-term growth prospects in emerging Europe will be closely tied to developments in the euro area core,” the IMF stated. “Much of the spillover from the euro area slowdown in late 2011 will already have been absorbed, and trade growth and manufacturing activity are expected to pick up, both in the euro area and globally, through 2012,” it added. The Emerging Europe region comprises CEE countries including Turkey but excluding euro-zone states Estonia, Slovakia and Slovenia,

APRIL 23-29, 2012

Source: Analysis from AmCham, PKPP Lewiatan and the US-Poland Business Council, based on National Bank of Poland data

Government officials, private asset owners and project promoters from across the globe are set to descend on Dubai this May for the Annual Investment Meeting 2012 (AIM) conference. Organized by the United Arab Emirates Ministry of Foreign Trade from May 1-3, the 2012 conference will be held at the prestigious Dubai International Convention and Exhibition Center, which is situated directly in between old and new Dubai. AIM is the world’s first Emerging Markets FDI-focused event to offer a blend of trade fair and intellectual features aimed at enriching institutional, corporate and individual investors attending with a comprehensive set of guidelines for their future investment decisions in high growth regions. The conference targets fast-transforming economies, emerging countries and industries with the most anticipated growth factors and will enhance their potential by providing a strategic platform that delivers ready-toinvest showcases and how-to-invest methodologies.

Diverse focus AIM proposes a diverse yet very focused set of features. As well as the main conference, there will also be one-to-one meetings, a Ministerial Networking Roundtable, workshops, country presentations, investor site visits and

exhibitions. All of these are designed to exceed the needs of prospective investors and reach out to a wider range of project promoters. Attendees are those seeking realistic and reliable investment opportunities in emerging markets and planning to interact directly with key decision makers, government officials and successful foreign investors from represented countries. Established as the new staple for foreign trade and FDI, AIM attracts a wide range of high-profile businesspeople from both the private and public sectors. The list of participants comprises heads of states, ministers, government officials, mayors, executives and high-net-worth individuals from 76 contributing countries from across the globe Key speakers at this year’s event will include: HH Sheikh Khaled Bin Zayed Al Nehayan, the chairman and founder of the Bin Zayed Group; Nouriel Roubini, CEO, Roubini Global Economic, and Jerome Alan Reid, current CEO of Forward Funds, and former executive director of private wealth management at Morgan Stanley, US, among many others. Poland is set to be represented in Dubai by the Polish Information and Foreign Investment Agency (PAIiIZ), as well as Poland’s only business weekly in English Warsaw Business Journal. Those in attendance will be able to locate the WBJ stand at A8 in the main conference hall, with PAIiIZ situated nearby at D3. ●

INTERVIEW

www.wbj.pl

APRIL 23-29, 2012

Czech-Polish relations

Good neighbor policy Jan Sechter, the Czech Republic’s ambassador to Poland, talks to WBJ about the strategic partnership between the two countries, their tactical coalition for defending the next EU budget and mutual economic relations Ewa Boniecka: The traditionally close and friendly relationship between Poland and the Czech Republic now has the status of a strategic partnership. What does this mean in practice?

Ambassador Jan Sechter: It is a synthesis of our common or very similar attitudes towards various problems, of defending our interests and strengthening our position in European forums and other international institutions. I want to underline the importance of elevating our mutual relations to the strategic

level by pointing out that the Czech Republic has a strategic partnership with only two countries: Poland and Germany. Poland and the Czech Republic are presently active in building a coalition to defend the budget proposals presented by the European Commission for the 2014-2020 period, which are opposed by some EU members. How do you see those efforts? The Czech-Polish strategic partnership has a broader context, because it encompasses not only our mutual efforts for achieving our aims but also our cooperation with countries with which we have shared interests. So, along with other members from Central and Eastern Europe (CEE), we are trying to build a coalition for the defense of the European Commission’s budget proposals. We are also looking for support from Western countries. It is high

time for such action, because there are strong pressures coming from the EU’s biggest net payers, and tough discussions going on throughout the bloc. The EU is in a process of change and this is also reflected in attitudes towards shaping the budget. In such a difficult and volatile situation, our countries have to defend the principle of cohesion policy, which is one of the most important for members from our region, as our

country has only one interest. When the Czech Philharmonic Orchestra performs it plays various instruments, so in looking for support in conducting our policy we too have to use various instruments. While the policy of German Chancellor Angela Merkel is to make cuts in the next budget, there are powerful economic groups in Germany that have an interest in preserving the EU’s cohesion policy, as we do.

“The economic interests of EU members are sometimes stronger than the political calculations of their governments” level of development must catch up with that of richer EU members. We see this as a fundamental principle of solidarity, a vehicle for the development and integration of the whole European Union. From which Western countries and interests are you looking for support in the battle of the budget? It is not so that a particular

This policy means a lot for German business, which invests heavily in Poland, as well as for the Czech Republic and other CEE countries. German businesses want to see infrastructure improved in eastern countries in which they invest, so they will exert pressure to ensure the next EU budget is kept at an adequate level. We have to play instruments that could help us obtain sup-

port from countries such as Germany, Austria and some Scandinavian countries, which invest a lot in our region and therefore have an interest in seeing money transferred in the next EU budget to our part of Europe. Among other things, this money will be used to improve transport infrastructure in CEE. The European economy is interconnected in all aspects and the economic interests of EU members are sometimes stronger than the political calculations of their governments. To what extent has the financial crisis in Europe affected the Czech economy, where most banks are in the hands of Western owners? Our economy is heavily dependent on exports, so certain elements of the crisis have been imported to the Czech Republic. But generally we are managing to get through the crisis: our GDP growth is positive and we hope that it will amount to 2.02 percent next year. The Czech National Bank is carefully monitoring our banking system, which, many years

ago, was privatized in full and sold to foreign banks. Now the branches of those banks in our country are doing better than their foreign parent companies and, for instance, the Czech Commercial Bank has the best results in the whole [Société Générale] Group. The Czech government did not sign the European fiscal treaty, as Poland did, making you the only member apart from the UK not to sign. What are your reasons for that decision? We are not blocking anyone who wants to sign the fiscal pact. The British announced at the very beginning their objections to the pact, we did it in a different way. We did not criticize the fiscal pact, we simply did not sign it. We think that we still have time to adopt the euro and we are managing our finances just fine, so we do not need EU institutions to monitor them. Our debt is only around 40 percent of GDP and in principle we do not want anyone to control our finances just for the reason that there is now a financial crisis in the EU. Do you expect coordination in

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INTERVIEW

SHUTTERSTOCK

APRIL 23-29, 2012

the future between the Czech Republic and Poland in setting a time for both our countries to join the euro zone? In the Czech Republic we do not have a set date for joining the euro. It is natural that Czech and Polish banks cooperate with each other and we are looking for close coordination of our countries’ activities on financial markets. So it is a logical conclusion that we will also coordinate further steps. But the matter of joining the euro is a political decision. We know what happened in Slovakia, which did not meet the real – I am not talking here about formal – conditions for joining the euro. The political ambitions for it joining outweighed a realistic assessment of the situation. Slovakia joined the euro zone and, after some initial turbulence, is managing relatively well in comparison with some other countries, but every case is different. When I take a look at the scope of Czech-Polish economic and trade relations, and the size of our mutual investments, I see a need for harmonizing our decision and timing when it comes to joining the euro zone, with this based on a cool-headed assessment. The trade turnover between our two countries has risen five-fold over the last 10 years. What are the main reasons for this spectacular growth? We are pleased to see such a spectacular development of our mutual trade. The value of our two countries’ current trade turnover is €14 billion, with the Czech Republic having a small surplus. Poland is our seventhlargest trade partner, while we are Poland’s sixth-largest. Our economies are complementary and this is reflected in the fact that we make mutual investments. Our production portfolios complement each other and our final products compete very little in foreign markets, while we cooperate in production. A good example of this is our joint investment and production in

the car industry. A consolidation of the Central and Eastern European market is currently underway, in which Czech and Polish firms are playing an important role. Their position in the region is growing and they are better prepared for further expansion to the east and southeast. Who are the biggest Czech investors in Poland and the biggest Polish investors in the Czech Republic? Our biggest investors are in the Polish coal and energy sectors, led by our giants – CEZ and EPH. We also have a number of construction firms and companies specializing in renewable energy operating in Poland, as well as firms from a range of other sectors. Poland’s biggest investor in the Czech Republic is PKN Orlen, which has been present in the market for six years and now operates gas stations under its own brand. There are also Polish investors in the Czech food industry, such as Mlekovita and Mokate. How does the Czech Republic’s connection to the Nord Stream gas pipeline shape its energy policy? We have sold our whole gas sector to German company RWE, so it cannot be said that the Czech Republic has joined the Nord Stream pipeline, because it is through RWE that gas from Nord Stream will come to our country. Our state has no shares in Nord Stream. We are trying to diversify our supplies, sourcing gas from Russia through the Yamal pipeline and gas from the Nord Stream pipeline. This strengthens our position [and is] due to our government’s decision to liberalize gas supplies and to have both private suppliers and recipients of gas. Yet you still use Russian gas … But we buy gas from the private German firm RWE, and its deal with Nord Stream is not our problem. Twenty-five percent of our gas comes from Norway. So having two suppli-

ers makes us much less dependent and our gas situation is better than it used to be. Our energy policy is independent from our politics, so our energy security is not prone to the influences of current policy. We want to be more dependent on the market and less dependent on geopolitics. We know that it works … [and] we believe in having the market system separated from geopolitics. And we think that such a solution is possible in Europe. For this reason the Czech Republic and Poland continue to be very active within the European Union in promoting the liberalization of energy policy, making energy suppliers act transparently and according to the rules of the market. We want energy security for all EU members. How do you see the situation developing now that Poland has vetoed EU proposals to increase CO2 emissions reduction targets? What is your country’s stance on the issue? The Czech Republic is against a drastic reduction of CO2 emissions in such a short period of time. We are in the same situation as Poland: in some regions we have 100 percent dependence on coal for energy production. Unfortunately, the Danish presidency of the Council of the EU and the EU Commission did not want to agree with the Polish position that such restrictive EU policy [on CO2 emissions reduction] would harm countries whose economies are dependent on coal. We think – like Poland – that it is an effort to remove from the market resources that help our economies compete. Our two countries are not questioning the long-term EU aim of reducing carbon emissions, but climate protection will be the subject of global discussions in 2015. So, while our minister of environment did not join the veto, we oppose the isolation of Poland by others. ●

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Missile shield redux

Andrew A. Michta

APRIL 23-29, 2012

he disclosure in early April that North Korea was preparing a long-range rocket launch and possibly an underground nuclear bomb test put ballistic missile defense (BMD) where it belongs: squarely atop the transatlantic agenda. Although we eventually learned that this particular missile launch was a failure, Pyongyang’s determination to proceed has underscored the enduring nature of the threat inherent in the proliferation of ballistic missile technology.

A powerful undercurrent Missile defense has been a powerful, if not much publicized, undercurrent in US-European relations ever since US President Barack Obama abandoned the Bush administration’s plan to deploy radar in the Czech Republic and missile interceptors in Poland, planning instead for a new phased adaptive approach. The decision to scrap the original plan was then widely interpreted in Central Europe as a concession tied to the US reset with Russia. This region views missile defense as not just a matter of technical feasibility or geostrategic considerations, but as an important symbol of the state of relations with the United

States. But, in reality, BMD is a global strategic concern today – and it should be treated as a keystone for rebuilding the flailing US-European relationship. This is an opportunity to strengthen transatlantic relations that should not be missed. The recent incident in which Obama, during a visit to South Korea, was overheard (via an open microphone) telling Russian President Dmitry Medvedev that he would have more “flexibility” on missile defense after the election, has inflamed concerns along NATO’s Eastern periphery. Clumsy as it was, this open mic moment confirmed what should have been a given: that the remainder of the year will be a time in which the United States and Russia will negotiate a host of technical and political issues against a backdrop of broader security concerns. Regrettably it also pushed the BMD debate back into a regional context when this transatlantic conversation needs a global perspective.

incentive to move toward implementing an effective BMD system alongside our European allies. At the same time, the politics of BMD deployment in Europe not only incite Russian opposition but also continue to unfold against the backdrop of a changing strategic environment in which the United States seeks to rebalance its interests in the Pacific. What is missing in Europe is the larger context of the issue: the need to move beyond the residual Russia dimension and the collective response to the threat of nuclear-armed Iran, linking it firmly to the transatlantic security agenda for the coming decade. The current European debate on US missile defense overlooks the fact that the US is hardly the only player in the game, with Russia, India, and Israel among the most active. Most objections to ballistic missile defense have come, to date, from Russia, China, and some US analytical circles. In Europe, Russia’s opposition to missile defense continues to be the recurrent theme. Moscow has pushed back on BMD deployments in the region with a mixture of technical arguments and strategic objections; clearly, prestige is also at issue. Arguably the least credible of Russia’s

Compelling incentive With new missile threats arising as more missile-capable states join the club (in 1972 only nine states owned ballistic missiles; today there are more than two dozen) there is a compelling

objections is the argument that BMD deployment will inevitably lead to destabilization, leading to expansion beyond the initial tasks. The geopolitical argument is essentially about European basing of radar and interceptors, with the perceived loss of prestige that comes with it.

of ballistic missile defense should reenergize the transatlantic conversation. It should be the starting point for a public debate on how BMD systems deployed to Europe need to interlock with the larger US system to address the truly global threat that is emerging.

Come November Should Obama be reelected in November, it is uncertain whether Washington will go ahead with missile defense deployment absent an agreement with Russia in 2013, or back away from the project. His open-microphone gaffe suggests that the administration might be willing to conclude a short-range missile agreement with Russia by offering concessions on missile defense in exchange. Hence, unease in Europe on missile defense is fueled by the realization that 2012-13 could be decisive for the future of a revised European missile defense plan. The administration’s recent announcement of a “strategic pivot” to Asia has added to the distance across the Atlantic and concerns that the United States may now be less committed to BMD deployment in Europe. Instead, the unease on the future

“The years 2012-13 could be decisive for the future of a revised European missile defense plan” The United States and its European allies have argued deterrence vs. defense since Ronald Reagan’s 1983 Strategic Defense Initiative speech; that transatlantic debate should now transition firmly from “whether” to “how.” ● Andrew A. Michta is a Senior Transatlantic Fellow at the German Marshall Fund of the United States and Director of the GMF Warsaw Office. Copyright: German Marshall Fund of the United States. gmfus.org

Debt reckoning for Europe

aving the euro, say the sages of the global economy, requires radical steps. The OECD recently called for a large European firewall – a mega-bailout fund for troubled governments and banks. Others argue for integrating taxes and borrowing in the euro zone and shedding weak members, like Greece, that struggle with a strong currency.

“The Greek economy was not ‘unfit’ to join the euro in 1999, just as no one is too heavy to be weighed in kilograms” But tall firewalls, fiscal union, or homogeneity of membership are neither necessary nor desirable. What is needed are mechanisms that recognize and accommodate differences, rather than new top-down efforts to impose uniformity.

Not by treaty alone All governments, even Germany’s, tend to spend more than they tax, and to hide shortfalls using accounting

sleight-of-hand. Treaties alone do not induce fiscal virtue. The expectation that all euro-zone countries would obey rules aimed at capping their budget deficits was the common currency’s foundational fantasy. Countries cannot get overly indebted on their own. Excessive borrowing by European governments required lenders who overlooked the fact that sovereign debt is in many ways similar to, and in some cases worse than, unsecured private debt or junk bonds. Governments provide no collateral and offer no covenants to restrain profligacy. As the Greek debacle has shown, governments do not pay penalties for fraudulent accounting. There is neither a legal process for forcing a state to pay off creditors, nor a legal venue for debt renegotiation. Purchasers of sovereign debt, therefore, should be extremely careful – either shunning spendthrifts or demanding higher interest rates to offset greater risk. Making excessive borrowing expensive or impossible would cap deficits, treaty or no treaty. Unfortunately, banks enabled excessive borrowing by reckless governments by accepting interest rates that were only a bit higher than the

rates that more cautious governments had to pay. The 2008 debacle should have served as a sharp reminder of credit risk. Instead, banks increased indiscriminate purchases of government debt, and regulators unwittingly encouraged it by permitting banks to hold sovereign debt without capital reserves that properly reflected the risk. In fact, holding government debt helped banks to meet their liquidity requirements. Not surprisingly, they loaded up on the highest-yielding bonds, ignoring whether the extra interest justified the risks. This indiscriminate lending now jeopardizes the solvency of banks worldwide. Yet the official response has been more willful blindness to differences between dodgy and sound debt. The European Central Bank has been lending to banks without regard to the creditworthiness of their government-bond holdings, thereby accumulating debt that threatens its own solvency. Bailout funds have been created to buy troubled debt. But, while their purchases have temporarily boosted asset prices, they won’t change the reality of over-indebtedness. The “more integration” camp

wants European governments to guarantee each other’s debts explicitly. Such schemes could eliminate risk and interest-rate differentials; however, while some governments are in relatively good shape, their resources are not infinite.

A bad bet Straining these governments’ finances in the hope of restoring market confidence is a bad bet. Moreover, any meaningful fiscal union is a non-starter. Handing revenues over to a single fiscal authority is unappealing to many Europeans. According to French President Nikolas Sarkozy, “There cannot be a single currency without economic convergence.” Yet the dollar has served the US as a medium of exchange for nearly 150 years, despite huge regional differences between, say, Silicon Valley, the Rust Belt, and the Oil Patch. And dollars are widely used in domestic transactions in places far outside the US, such as Russia and Israel. Differences in the circumstances of individuals and businesses within and across countries are unavoidable. It behooves all, whether they are struggling or soaring, and whether

Amar Bhidé

they are near or far, to use a common medium of exchange to trade with each other. Like standardized weights, currencies are supposed to calibrate and bridge, not eliminate, differences. The Greek economy was not “unfit” to join the euro in 1999, just as no one is too heavy to be weighed in kilograms. That is why shrinking the euro zone to exclude weak members reflects another unwarranted predilection for uniformity. Governments, after all, can rarely overborrow without access to international credit. Indiscriminate lending – not the end of the drachma – saddled Greeks with unbearable debt. And exiting the euro will neither reduce the burden nor erase German and French bank losses. The least awful solution requires an honest reckoning: writing down debts that cannot be repaid and recapitalizing insolvent banks. Country-bycountry and bank-by-bank, the good must be disentangled from the bad. ● Amar Bhidé is a professor at Tufts University’s Fletcher School of Law and Diplomacy and the author of “A Call for Judgment.” Copyright: Project Syndicate, 2012. project-syndicate.org

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

PUBLISHER VALKEA MEDIA SA CO-MANAGING EDITOR

GARETH PRICE (GPRICE@WBJ.PL) CO-MANAGING EDITOR

ALICE TRUDELLE (ATRUDELLE@WBJ.PL) POLITICS EDITOR

REMI ADEKOYA (RADEKOYA@WBJ.PL)

REAL ESTATE EDITOR

ADAM ZDRODOWSKI (AZDRODOWSKI@WBJ.PL)

COLUMNISTS

ADAM NARCZEWSKI ANDREW NAWROCKI

COPY EDITOR

PRODUCTION MANAGER

JOURNALIST

PIOTR WYSKOK

CONTRIBUTORS

E. BLAKE BERRY EWA BONIECKA BRENDAN MELCK

GRAPHIC DESIGNER

¸UKASZ MAZUREK CARTOONS

PIOTR WYSKOK

MANAGING DIRECTOR MONIKA STAWICKA

MARKETING &SALES

MARTA CZESZEJKO-SOCHACKA (MCZESZEJKO-SOCHACKAKA@WBJ.PL)

AGNIESZKA BREJWO

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MARKETING &SALES DIRECTOR

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(ABREJWO@WBJ.PL)

PR & MARKETING SPECIALIST

MAGDALENA KARPI¡SKA (MKARPINSKA@WBJ.PL)

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COVER STORY

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APRIL 23-29, 2012

Polish airports busy

Aerospace industry

The number of passengers at Polish airports increased by some 10% y/y in the first quarter of 2012, according to data from the Association of International Airports. This compares to a 3.2% traffic increase in the same period for the whole of Europe. Airports in Poland served some 4.4 million people in Q1, almost 400,000 more than during the same time period of last year.

Flying high

A new Polish carrier specializing in charter flights, Bingo Airways, will begin flying from Poland in May, reported Dziennik Gazeta Prawna. The company’s first flight is scheduled to take place on May 10. Bingo Airways hopes to transport some 300,000 passengers in 2012. Destinations will include Turkey, Tunisia and Egypt.

Poles seek work in Germany As many as 80,000 Poles could move to Germany this year in search of employment, reported Wyborcza.biz, citing a report by research firm Work Service. Since Germany opened its labor market to Poles in May 2011, 45,000 people have left Poland to find work there.

Warsaw hotel market up New investments will bring some 3,000 new hotel rooms to Warsaw in the next few years, reports Rzeczpospolita. The capital still has some way to go to catch up with other capital cities in the region. Indeed, at the start of 2012, Warsaw was home to 82 hotels with some 10,600 rooms, compared to about 17,600 rooms in Budapest and 30,000 in Prague. ●

Poland’s aviation industry has succeeded in turning the global economic crisis into an opportunity for growth A rare sense of optimism is emanating from Poland’s aviation cluster in southeastern Poland. While other sectors, hit by months of economic turmoil in Europe, tighten their belts, the Polish aviation sector is growing. “The aviation sector has not slowed down in Poland [during the global crisis], on the contrary we have had a lot of investment into the sector,” Andrzej Rybka, director of the Aviation Valley Association, told WBJ. The organization, based in the southeastern Podkarpackie voivodship, groups together over 90 percent of the sector’s production and employment. “The market for aviation is rather stable,” added Micha∏ Tabisz, spokesperson for PZL Mielec, the biggest Polish manufacturer of aircraft. The combined exports of Polish companies in the sector reached around $1.5 billion last year, and their worldwide reputation is on the rise. According to the Polish Information and Foreign Investment agency (PAIiIZ), almost every passenger aircraft in the world has at least one part made in Poland. “Polish-based aviation companies are considered to be among the best suppliers for the global aircraft industry. We can offer the same standard of service and products at lower prices than Western companies,” said Adam Ma∏ecki, deputy director of the foreign investment department at PAIiIZ.

Radical transformation The Aviation Valley cluster was launched in 2003 as the brainchild of Marek Darecki, CEO of WSK “PZLRzeszów.” The firm, a Polish producer of aviation engines and components, was sold to America’s United Technologies in 2002.

www.belgium.pl

COURTESY OF PZL MIELEC

Bingo Airways launch

Brendan Melck, Izabela Depczyk

PZL Mielec, manufacturer of the S-70i Black Hawk helicopter, tripled its sales over the last five years In less than a decade, the cluster has grown from a collection of 18 companies to 90 companies, employing around 23,000 people. With a dense network of international and domestic airports, the Technological Park of Aircraft Industry in nearby Bielsko, and strong links with research carried out at The Centre of Advanced Technology “AERONET - Aviation Valley,” the cluster has managed to attract international players such as Avio, EADS, GE, Goodrich, Hamilton Sundstrand, Hispano-Suiza, MTU Aero Engines, Pratt & Whitney and Vac Aero. The transformation of the sector is even more spectacular when one looks back further in time. From the doldrums of the years following the end of the Soviet Union, when Polish aviation companies lost, almost overnight, what was by far and away their main market, to the privatization of the country’s largest aircraft and helicopter producers, the transformation is

almost total. “In 1989, when the economic transformation began, 80 percent of Polish aviation companies were exporting to the East. We had to change our focus to the West

overnight – today, 95 percent of the production of the Polish aviation industry is sold to the West, with a value of $1.5 billion annually,” said Andrzej Czarnecki, spokesperson for WSK “PZL-Rzeszów.”

PZL Mielec, the biggest Polish manufacturer of aircraft, was acquired by American Sikorsky Aircraft Corporation in 2007. “Since Sikorsky Aircraft invested in us five years ago, we have tripled

Poland’s aviation sector: a history “What makes Poland so attractive is the access to highly qualified and skilled professionals. Poland is proud of 100 years of aviation history and over 80 years of aviation industry,” said Adam Ma∏ecki, deputy director of the foreign investment department at PAIiIZ. The long and eventful history of the Polish aviation industry started in 1910 with the establishment of Warszawskie Towarzystwo Lotnicze Awiata, which began by producing the French Farman-IV aircraft under license. During the inter-war years, Poland had regained its independence and the development of the aviation industry accompanied the creation and development of the Polish Air Force. In 1928, the state aviation works Paƒstwowe Zak∏ady Lotnicze (PZL) was established. The state-owned firm began producing Polish-designed fighter planes, which gained popularity as export products as well. Shortly before World War II the Polish aviation industry began to be established in what

is now the Podkarpackie voivodship. In 193739, Paƒstwowe Zak∏ady Lotnicze Wytwórnia P∏atowców was established in Mielec – this would evolve into today’s PZL Mielec and Wytwórnia Silników in Rzeszów – now WSK “PZL-Rzeszow.” In the period following World War II, when Poland was under communist rule, the country became a leader in the aviation sector among Warsaw Pact countries. It produced jet fighter planes and transport helicopters, as well as civil aircraft. The collapse of the Soviet Union – to which 90 percent of the aircraft produced in Poland were being sold – had a profoundly negative effect on the industry. As many as half the workforce in state-owned companies in the sector lost their jobs. Over the last 20 years, the wave of privatization and acquisitions by multinationals has not only revived the larger, former state enterprises, but has also given the impetus to smaller, domestic start-ups. ●

COVER STORY

our sales and increased employment by 40 percent – that’s 700 new jobs,” said Micha∏ Tabisz, spokesperson for PZL Mielec. “Last year was a unique year for us because we launched the mass production of the S10i Black Hawk [helicopter]. The company is growing, we ended last year with a great result, and this year we plan to grow even more,” he added. PZL Mielec is seeking new markets for the civilian version of the M28 aircraft, and also plans to take part in a helicopter tender for the Polish Army. Most recently, in 2010, Anglo-Italian AgustaWestland acquired a majority stake in PZL-Âwidnik, the biggest helicopter manufacturer in Poland, and plans to invest around z∏.300 million in its Âwidnik factory.

tion in the country, smaller, local companies are winning contracts to supply parts. They form the core of the Aviation Valley cluster, and are an important strategic element of the development of the sector in Poland. As an example, production in Mielec of the renowned Black Hawk utility helicopter has resulted in orders for 50 local suppliers, according to a recent report by

An established leader

business daily Puls Biznesu. Rather than merely churning out parts and finished products for multinational companies, smaller, locallyowned firms are forming a platform for the development of Polish innovation in the aviation sector. This has led companies in the Polish Aviation sector to successfully land long-term contracts that have sustained them throughout the crisis. “The crisis has not affected the aviation sector so much. The

“Thanks to privatization, the Polish aviation industry has received a massive injection of new technology,” explained Mr Czarnecki. “As a result, we made a technological leap and based on our experience of working on these transferred technologies, we have been able to start our own innovative development, built on this foundation.” As a direct result of investment by multinationals and the development of produc-

“From the doldrums of the years following the end of the Soviet Union ... the transformation is almost total”

projects which we have been executing are long-term projects, budgets for which have been collected over several years’ time,” said PZL Mielec’s Micha∏ Tabisz. “Many of the airplanes which are being produced now have been ordered well in advance, about two to three years ago,” said Aviation Valley’s Andrzej Rybka. But the sector is also attracting new investments. In January 2012, the National Centre for Research and Development (NCBiR), an agency within the Ministry of Science and Higher Education, announced a z∏.300 million investment in the development of innovative technologies within the aviation sector over 2013-17. The investment is planned with a strong commercial focus, the NCBiR having been created as a platform between the scientific and business communities. The program will be carried out in association with the Polish Aeronautical Technology Platform (PPTL), of which the Aviation Valley Association is a member. The private sector is due to provide around z∏.200 million for the project, valuing the total investment at around half a billion z∏oty – money that’s needed to push forward R&D in an industry for which innovation is essential. Indeed, it’s estimated that

www.wbj.pl

COURTESY OF WIKIMEDIA COMMONS

APRIL 23-29, 2012

The PZL M28 is one of Poland’s aircraft exports the industry’s share of Poland’s total R&D spending exceeds 5 percent, while leaders in the sector spend between 10 to 20 percent of their total revenues on R&D, a figure that has no equivalent in any other Polish industry.

Competitive edge As with other successful sectors of the Polish economy, the aviation industry is relying on lower labor costs and the presence of a highly-educated workforce to attract investment. “We have the experience and knowledge of our workers, their comparatively low labor costs, as well as the business, political and macroeconomic environment in Poland which

gives us the edge – a Polish worker is 20 percent more productive than a worker from the West, although he still earns three times less than his Western counterpart,” Mr Czarnecki explained. The economic crisis has put pressure on multinational corporations to reduce costs, inclining them to seek “lowcost” investment destinations. And from this perspective, according to industry players, Poland’s aviation sector is more attractive than that of emerging economies such as Brazil, China and India. “Poland is one of the best regions for the aviation sector. We have a great cost-to-quality ratio. Producing here is com-

paratively cheaper than other countries, while the quality is just as good. We have very high standards, high ethics and high performance,” said Mr Rybka. “Paradoxically, the global economic crisis is helping Aviation Valley and the Polish aviation industry, because it puts the emphasis on reducing costs throughout the world, and Poland’s aviation industry operates under optimal conditions,” added Mr Czarnecki. Thus it seems that in a period of global economic uncertainty, the competitiveness of Poland’s aviation industry is actually strengthening, thereby giving the skills and innovativeness of its workers a greater chance to shine. ●

E N E R G Y IN F O C U S

www.wbj.pl

APRIL 23-29, 2012

Energy

The company wants to build three farms with a total capacity of 3,450 MW Poland’s Ministry of Transport, Construction and Maritime Economy last week granted permission to energy provider Polska Grupa Energetyczna (PGE) to build three offshore wind farms in the Baltic Sea. The investments are valued at a total of z∏.14.6 billion. The wind farms will have a combined capacity of 3,450 MW, PGE spokesperson

Micha∏ Kucaj confirmed to WBJ. A detailed geotechnical and environmental study of the three sites is now planned prior to the start of construction. PGE had been waiting for the Ministry of Transport’s decision since it applied for building permits back in October 2011. Prior to the announcement that the company’s application was successful, only one other offshore wind turbine project, which was put forward by Polish billionaire Jan Kulczyk’s company Kulczyk Investments, had previously been approved by

the ministry. In total the ministry has received 50 applications to build wind farms, with power capacities of from 750 MW upwards. Polish daily Rzeczpospolita reported that the Ministry of Transport will grant five offshore building permits in total, with PKN Orlen, Poland’s largest oil refiner, soon to join Kulczyk Investments and PGE in gaining permission. The wind energy market is set to play an increasingly influential role in the future as Poland is required by the EU to

reduce CO2 emissions. A “Green Growth” report launched last week by the European Wind Energy Association estimated that the wind-energy sector contributed €32 billion to the EU’s €12.3 trillion GDP in 2010. According to the report, the figure is likely to triple by 2020. The report also predicted that as many as 795,000 Europeans could be employed in the sector by 2030, a significant increase on the nearly 240,000 employed in 2010. David Ingham

COURTESY OF WIKIMEDIA COMMONS

PGE to invest z∏.14.6 billion in offshore wind farms

Shanghai Electric shortlisted Chinese energy equipment maker Shanghai Electric Group has been shortlisted in a tender to build and manage a coal-fired power plant in the Silesia voivodship in cooperation with Polish coal firm Kompania W´glowa, newspaper Dziennik Gazeta Prawna reported, citing sources close to the talks. Joanna Strzelec-¸obodziƒska, CEO of Kompania W´glowa, said she could not confirm the report, saying only that two companies had been shortlisted to carry out the project, both of them Asian. Five entities had submitted offers to take part in the tender. Ms Strzelec-¸obodziƒska added that the company is now selecting the design for the new facility, with the contract expected to be ready by the end of the year. Kompania W´glowa, she said, would like to hold a stake sized no greater than 49 percent in the investment, in order to ensure that the company shoulders a smaller financial burden than its foreign partner. The planned 900 MWcapacity plant would be constructed on the site of the nowshuttered Czeczott coal mine. The entire project would cost z∏.5 billion and energy production would launch at the facility in 2018. The block is expected to produce 5-7 terawatt hours of energy per year, or up to 4.5 percent of Poland’s current annual electricity production. As WBJ went to press, the next round of talks between Shanghai Electric Group and Kompania W´glowa were due to take place this week, during the visit to Poland of Chinese Premier Wen Jiabao. Shanghai Electric Group, one of China’s largest energyequipment manufacturing companies, produces thermal and nuclear power units, machine tools and power distribution equipment. Gareth Price

There is a host of sustainable developments on their way in the CEE region

Developer Ghelamco Poland is working on a number of new office projects in the Polish capital 16

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

Developer elbfonds Development has acquired 43,940 sqm of land in Kutno, ¸ódzkie voivodship, on which it plans to build a large retail project. Construction on the mall is scheduled to launch by the end of this year. Located on Kutno’s ul. KoÊciuszki, the planned shopping center will provide approximately 17,000 sqm of leasable space. The project will feature a parking lot for about 550 cars and its tenants will include a DIY store and a grocery supermarket.

Work on Galeria D´biec to launch in H2 Developer RED Real Estate Development plans to launch construction on its Galeria D´biec shopping center project in Poznaƒ in the second quarter of this year. The two-storey investment will deliver 9,000 sqm of space. The Galeria D´biec scheme will be developed next to the RED Park housing estate which the firm has been building since October 2011. Both the mall and the first phase of the RED Park development, which will deliver 130 apartments, are scheduled to be completed in the third quarter of 2013. ●

In this issue Koneser revitalization . . . . . . .15 Matexi’s plans . . . . . . . . . . . . . .15 Immobel-Griffin homes . . . . . . .15 RealGreen conference . . . . . . .16 CEEQA 2012 . . . . . . . . . . . . . . . . .16 Neinver with BREEAM . . . . . . .16 Property-related stocks . . . . . .16 New Ghelamco projects . . . . .17

APRIL 23-29, 2012, LI 17/16

Revitalization

BBI Development touts Centrum Praskie Koneser project in Warsaw The company plans to launch construction on the residential part of the scheme later this year Warsaw Stock Exchange-listed developer BBI Development NFI last week presented its vision of the historical Koneser site in Warsaw’s Praga district. The company plans to transform the former vodka distillery into a modern mixed-use complex within the next few years. BBI Development NFI started construction on the project in 2010. Since then, the company has revitalized the historical guardhouse and administrative building of Koneser – the structure has been transformed into a modern office facility that has already been fully commercialized. Now, the developer plans to go ahead with the next phas-

COURTESY OF BBI DEVELOPMENT NFI

Elbfonds buys land for new shopping mall

•

BBI Development plans to change the former vodka distillery into a mixed-use complex es of the investment which will involve the development of a total of approximately 70,000 sqm of usable space on an almost five-hectare plot of land located on ul. Zàbkowska in Warsaw’s Praga Pó∏noc district.

“Our intention is to harmoniously combine revitalized historical buildings of the former vodka distillery with modern architecture inspired by industrial motifs,” said Rafa∏ Szczepaƒski, vice president of

the management board of BBI Development NFI. Altogether, the Centrum Praskie Koneser project will comprise 330 housing units, 22,500 sqm of retail space and 22,000 sqm of office areas.

One of the historical buildings is also expected to house a design museum which will operate under the aegis of the National Museum in Warsaw. The first units to be developed will be three buildings with lofts and soft lofts and retail space on the ground floors, as well as one building housing a restaurant. By the end of 2013, two buildings with office and retail space are also scheduled to be completed. BBI Development NFI hopes to finish the whole Centrum Praskie Koneser scheme in 2015. The company estimates the value of the investment at approximately z∏.410 million. Architects from JuvenesProjekt, a subsidiary of BBI Development NFI, are responsible for the architectural designs of most of the buildings in Centrum Praskie Koneser. The Bulanda, Mucha Architekci and ARE studios are also involved in the project. Adam Zdrodowski

Matexi’s first Poland project, new land acquisitions Belgian developer Matexi has announced the launch of its first residential project in the Polish market. The company, which entered the country at the beginning of last year, will build 50 housing units on ul. Górczewska in Warsaw’s Bemowo district by the second quarter of 2013.

“We have been working very hard over the last few months developing two other projects which we will introduce onto the market in upcoming months,” Mirek Bednarek, country manager at Matexi Polska, said in a statement. Matexi Polska has already acquired new plots for future

projects in the Polish capital. The developer has secured a site in Warsaw’s Ursynów district on which approximately 100 units will be built. The company will apply for a building permit for the scheme by the end of 2012. In the first quarter of this year, Matexi Polska, repre-

sented by CBRE, also acquired a plot of land in the Bielany district where some 5,000 sqm of residential space will be developed. The project is at the design stage, with construction expected to launch within the next 12 months. One of the largest devel-

opment companies in Belgium, Matexi was founded in 1945 and is active in areas including residential development and investment. In 2010, the group sold 883 houses and apartments and its turnover amounted to €247.6 million. Adam Zdrodowski

Immobel and Griffin announce first joint Polish scheme Developers Immobel Poland and Griffin Group have announced their first joint investment will be a residential project located on ul. Kierbedzia in Warsaw’s Mokotów district. Construction on the scheme is sched-

uled to launch in the second quarter of 2013. A preliminary architectural concept of the planned development has been prepared by the Atelier 2 Architekci studio. The concept calls for the develop-

ment of approximately 300 housing units and points of service at the Kierbedzia site. The ul. Kierbedzia investment will be developed on one of seven plots that Immobel Poland and Griffin Group jointly acquired from

press distributor Ruch last year. Apart from Warsaw, the plots are in Kraków and Gdaƒsk, and could see the development of a combined 150,000 sqm of office, retail and residential space. Immobel is a Belgian

developer that entered the Polish market in 2011. Griffin Group is currently involved in a revitalization project in downtown Warsaw and in a residential scheme in the city’s Wilanów district. Adam Zdrodowski

LOKALE IMMOBILIA – REAL ESTATE

www.wbj.pl

APRIL 23-29, 2012

Sustainable building

CEEQA Gala

Green solutions gaining ground in Poland, CEE

Colliers International wins three awards at CEEQA 2012

Market players are more educated about sustainable solutions, but are still not sure how far they are willing to go

The 9th edition of the awards gala took place at the Warsaw Marriott Hotel

A weak European economy has not deterred property investors, developers and clients in Central and Eastern Europe from going green. Indeed, it may have led to the

contrary: A massive number of sustainable developments are currently underway in the region, according to a new report from agency Jones Lang LaSalle. Warsaw has by far the largest pipeline among countries in the region, with around 400,000 sqm of green building space under construction. At this rate the Polish capital will exceed Prague, currently the greenest city in

the region, in terms of volume and percentage of sustainable developments in its total stock. “We are creating a green culture, having a much broader discussion than a few years ago. Tenants are also better educated,” said Nicklas Lindberg, managing director for CEE at Skanska Commercial Development Europe, speaking at the RealGreen Symposium & Fair last week.

Green leaders Selection of the largest existing certified office developments in the CEE Country

City

Building

Developer / Owner

Poland

Warsaw

Rondo 1

HOCHTIEF Development / MGPA

57,000

LEED

Gold

Poland

Warsaw

Mokotów Nova

Ghelamco

40,000

BREEAM

Target Very Good

âSOB

Skanska / âSOB

37,700

LEED

Gold

Czech Republic Prague

Total Area Certification Type

Rating

Poland

Warsaw

Trinity Park III

Ghelamco / SEB Investment

32,000

BREEAM

Very Good

Hungary

Budapest

Gateway

Ablon

29,200

BREEAM

Very Good

Romania

Bucharest Swan Office & Technology Park

Chayton Capital

29,100

BREEAM

Very Good

Passerinvest

28,200

BREEAM

Good

Czech Republic Prague

BB Centrum – Filadelfie

Source: Jones Lang LaSalle

Property-related stocks Security

Closing price on Apr 19

% change (week)

52-week low

52-week high

% change (year)

Total shares

Market value (z∏. mln)

BUDIMEX

83.85

-1.81

64.00

109.20

-22.65

25,530,098

2,140.70

CELTIC

12.95

-5.13

12.95

22.70

-34.46

34,068,252

441.18

DOMDEV

36.63

3.18

23.50

50.80

-21.06

24,670,397

903.68

ECHO

4.00

-0.74

3.05

5.55

-20.79

420,000,000

1,680.00

ELBUDOWA

111.00

-0.45

87.00

168.00

-30.41

4,747,608

526.98

ENERGOPLD

1.89

-0.53

1.81

4.00

-52.51

70,972,001

134.14

ERBUD

17.25

-4.33

14.65

38.70

-55.19

12,644,169

218.11

GANT

7.30

-5.07

5.85

14.09

-47.82

20,499,953

149.65

GTC

6.92

3.90

6.10

21.45

-66.87

219,372,990

1,518.06

HBPOLSKA

0.72

-15.29

0.70

2.35

-67.42

210,558,445

151.60

JWCONSTR

5.22

-10.00

4.36

15.50

-64.49

54,073,280

282.26

LCCORP

1.42

0.00

0.85

1.58

-10.69

447,558,311

635.53

MARVIPOL

8.10

-4.48

7.22

9.95

-3.34

36,923,400

299.08

MIRBUD

1.61

-12.02

1.61

4.14

-61.58

75,000,000

120.75

MOSTALWAR

12.35

-16.27

12.35

41.20

-70.38

20,000,000

247.00

MOSTALZAB

1.35

-3.57

1.07

2.89

-51.26

149,130,538

201.33

ORCOGROUP

14.36

-2.97

14.00

38.20

-58.50

17,053,866

244.89

PBG

30.50

-9.50

30.50

164.00

-81.95

14,295,000

436.00

PLAZACNTR

2.60

0.00

1.80

5.15

-44.44

297,174,515

772.65

POLAQUA

5.80

-3.33

4.53

18.93

-68.10

27,500,100

159.50

POLIMEXMS

1.05

-16.67

1.05

3.53

-69.91

521,154,076

547.21

POLNORD

13.50

-8.16

11.03

32.70

-58.42

23,798,439

321.28

RANKPROGR

13.77

-6.96

8.60

16.97

5.92

37,145,050

511.49

ROBYG

1.39

-7.95

1.04

2.10

-32.85

257,390,000

357.77

RONSON

1.06

3.92

0.77

1.58

-29.80

272,360,000

288.70

TRAKCJA

0.98

-8.41

0.65

3.53

-73.00

232,105,480

227.46

ULMA

65.85

0.08

57.00

88.00

-25.17

5,255,632

346.08

UNIBEP

5.60

-1.75

4.47

7.55

-26.61

33,927,184

189.99

WARIMPEX

4.05

-3.57

2.95

10.89

-61.35

54,000,000

218.70

ZUE

7.42

-1.20

5.07

12.85

-39.43

22,000,000

163.24

There is a strong case for building green, participants said. It saves money, reduces investors’ risk, and demonstrates organizational leadership. But experts also agreed that market players are not necessarily certain how far they want to follow the trend. One obstacle is that very few government incentives currently exist to promote green development in the region. Another is that it’s much easier to build sustainably than to make existing buildings sustainable. “The challenge is with existing buildings from the 1970s all over Europe. In many cases the cost of retro-fitting is higher than their actual value,” said Hadley Dean, managing partner for Eastern Europe at Colliers International. Some are nevertheless taking up the challenge, such as Rondo 1 in Warsaw. The 60,000 sqm building, built in 2006, obtained LEED Gold certification in 2011. “One of the biggest challenges was to consult with the 58 companies and nearly 5,000 employees in the building,” said Karol Bartos, managing director Poland at MGPA. But it proved to be well worth it. Rondo 1 managed, with relatively small investments involving lighting replacement, a water-saving program and a green roof, to maintain its leasing rate in a weak market, while reducing running costs by 15 percent. Rondo 1 won the “Building of the Year” at the RealGreen Awards. Other winners were Skanska Commercial Development Europe for “RealGreen Developer of the Year,” MGPA for “RealGreen Investor of the Year,” and Chapman Taylor for “Services Provider of the Year.”

Last Tuesday’s 9th annual Central and Eastern European Real Estate Quality Awards (CEEQA) saw Colliers International take home three awards, one for Property Management Company of the Year as well as two in the Agent of the Year category, for Office Agency and for Industrial and Logistics Agency. Jones Lang LaSalle also won awards in the Agent of the Year category, collecting awards for Retail, Leisure & Residential Agency and Capital Markets Agency. Richard Hallward, CEO of Imagine Live Media, CEEQA’s organizer, said he was happy with the turnout at the gala, which sent a positive message to investors in the sector. “Given the uncertain economic conditions across Europe we were delighted with the turnout at the event this year in number, geography and seniority, which reflects well on the sector and sends a positive

note to investors about who we are as a sector, and where we’re going in the future,” Mr Hallward said in a statement. The CEEQA Gala dinner was hosted in the Warsaw Marriott Hotel. The awards ceremony included entertainment by Polish X-Factor finalist Ada Szulc and DJ group Wet Fingers, featuring vocalists Nick Sinckler and Ewa Jach, dance group Monsterbots, British saxophonist Lovely Laura and Canadian musician Lindsay Martell. CEEQA, established by Imagine Live Media in association with the Financial Times in 2003, recognizes outstanding business achievements in the commercial real estate sector in 18 emerging European countries, including the best real estate projects delivered during the past year in CEE and SEE countries. “CEEQA Industry Awards and the CEEQA Gala play an important role in presenting the emerging Europe’s real estate market internationally and attracting new investors into the region,” CEEQA wrote in a Izabela Depczyk statement.

Selected CEEQA winners Company awards: Developer of the Year: TriGranit Investor of the Year: Atrium Construction Company of the Year: Strabag Property Management Company of the Year: Colliers International

Agent awards: Agent of the Year (Office Agency): Colliers International Agent of the Year (Retail, Leisure & Residential Agency): Jones Lang LaSalle Agent of the Year (Capital Markets): Jones Lang LaSalle

Agent of the Year (Industrial and Logistics Agency): Colliers International

Grand awards: Industry Professional of the Year: Barbara Topolska, General Director Poland, Germany & France, Neinver Green Leadership Award: Skanska Commercial Development Europe Building of the Year: The National Stadium in Warsaw Lifetime Achievement Award: Richard Clare, Chairman of EC Harris and Corporate Senior Vice President of Arcadis

Alice Trudelle

BREEAM certificate for Neinver’s Futura Park Kraków mall Developer Neinver has completed the process of BREEAM certification for its Futura Park Kraków retail project in southern Poland. According to the company, the scheme is the only retail development in the country to have secured a BREEAM certificate with a “very good” mark. “Neinver’s strategy envisions the development of new retail facilities in line with the standards of sustainable build-

ing,” Rafa∏ El˝anowski, investment director at Neinver Polska, said in a statement. He added that the company would continue to employ innovative energy-saving technologies in its future projects. Located in Modlniczka near Kraków and opened in October 2011, the Futura Park Kraków project combines a retail park with an outlet center. The development comprises a total of 44,000 sqm of

space which houses more than 140 stores and points of service. Neinver has been present in the Polish market since 2000. The company’s completed projects in the country include Galeria Malta in Poznaƒ and Futura Park in Wroc∏aw. Currently, the developer is building a major investment in Katowice that will include a new railway station, a mall and offices. Adam Zdrodowski

APRIL 23-29, 2012

LOKALE IMMOBILIA – REAL ESTATE

www.wbj.pl

Apsys Polska manages Nova Park mall

Office

Ghelamco Poland working on new office projects in southern Warsaw “Transactions of this kind, much more complex than a simple acquisition of a plot of land, show the maturing of the Polish market. Sale and leaseback deals will be increasingly common in the market in upcoming years,” Mr Zagórski said. He added that until recently businesses were often intent on having their own company buildings that were precisely tailored to their needs, but difficult to sell or lease once the tenant’s requirements changed and the occupier decided to move out. Adam Zdrodowski

COURTESY OF GHELAMCO POLAND

Developer Ghelamco Poland has launched construction on a new office project on ul. Marynarska in Warsaw’s Mokotów district which will comprise a single building with approximately 40,000 sqm of space. The company has already leased 27,000 sqm in the development to telecom operator Polska Telefonia Cyfrowa and is currently in the process of commercializing the remaining leasable area in the scheme. The investment on ul. Marynarska is located in the S∏u˝ewiec neighborhood of Warsaw’s Mokotów district, which has become one of the most intensively developed business hubs in the Polish capital. Ghelamco, which has already developed office complexes including Trinity Park I, II and III, Marynarska Business Park and Mokotów Nova in S∏u˝ewiec, still sees ample development potential in the area, which should soon benefit from the delivery of new transport infrastructure projects. Jaros∏aw Zagórski, commercial and business development director at Ghelamco Poland, said that the completion of a new railway connection with Warsaw’s Chopin Airport and the delivery of new road infrastructure around ul. Marynarska is

already giving S∏u˝ewiec an additional boost. “Developers are now increasingly interested in plots located south of ul. Marynarska, as well as in land located just across the railway line that divides Warsaw’s Mokotów and W∏ochy districts,” Mr Zagórski said. One of the next office projects developed by Ghelamco will be located in the former of the above-mentioned areas, south of the intersection of Warsaw’s ul. Marynarska and ul. Post´pu. The investment, which is still in the design stage, will deliver approximately 30,000 sqm of space. The company is also planning an office complex on ul. ¸opuszaƒska in the W∏ochy district which constitutes a western section of the same road as ul. Marynarska. Two buildings with a combined 15,000 sqm are expected to be built there.

Mr Zagórski said there is still ample development potential in Warsaw’s S∏u˝ewiec neighborhood

New office, cultural space in central Warsaw

Maturing market Meanwhile, Ghelamco is working on an office project on ul. Poleczki in Warsaw’s Ursynów district, which lies south of the S∏u˝ewiec neighborhood. The company has recently signed a sales transaction with telecom operator Netia for 23,600 sqm of land in the location. Ghelamco will build an office complex on the plots acquired from Netia, with one of the buildings in the project expected to house Netia’s offices. The deal is expected to be finalized by the end of this year.

Real estate company Apsys Polska was named the manager of the Nova Park shopping and entertainment center that opened for business in Gorzów Wielkopolski, Lubuskie voivodship, last week. The project comprises 32,000 sqm of retail space and is the largest retail development of its kind in the region.

COURTESY OF GHELAMCO POLAND

The schemes include two investments in the capital’s quickly developing S∏u˝ewiec neighborhood

Planned Ghelamco investments in Warsaw also include a mixed-use project at the capital’s Pl. Grzybowski that will comprise a new building of the Socio-Cultural Association of Jews in Poland (TSK˚) and an office high-rise. Analyses have shown that TSK˚’s existing building, which was built in the 1960s and houses, among other things, the Ester Rachel Kamiƒska and Ida Kamiƒska Jewish Theater, does not comply with safety standards. The association has decided to find a strategic investor that would help it build new premises. If all the necessary administrative permits are secured, Ghelamco will in the next few years develop the two-phase project

whose design will be selected via an international architectural competition. First, the company will build a new fivefloor building for TSK˚ that will sit on a vacant plot neighboring the current structure and on part of the land now occupied by the latter building. The theater will continue to operate in its current premises during the construction process. Once the theater has moved to the newly built structure, Ghelamco will demolish the rest of the existing TSK˚ building and build a modern 80-sqm office tower with a threefloor underground parking lot at the site. Adam Zdrodowski

Renewed leases at PBP in Warsaw Warsaw Stock Exchange-listed developer Globe Trade Centre (GTC) has extended lease agreements for a total of 11,000 sqm of office space at its Platinium Business Park project. “Five years after opening the first building, Platinium Business Park remains one of the most popular business centers in the Polish capital,” Jacek Wachowicz, lease and sales director at GTC, said in a statement.

Panattoni Park Wroc∏aw II expansion Industrial space developer Panattoni Europe is expanding its Panattoni Park Wroc∏aw II logistics park in western Poland by more than 10,000 sqm of space, most of which has already been commercialized. ●

THE LIST

www.wbj.pl

APRIL 23-29, 2012

Corporate Services

HR Companies - Executive Search Ranked by number of high-ranking management personnel placed in 2010

www.bookoflists.pl

Companies whose core business is Executive Search (1) Order fulfillment period (weeks): Low-ranking personnel / Medium-ranking personnel / High-ranking personnel

Guarantee period (months): Low-ranking personnel / Medium-ranking personnel / High-ranking personnel

Headhunting / Assessment center / Management audit

HR dept. management / Satisfaction surveys / Outplacement

Job valuation / Training / Market monitoring

Total number of own employees in Poland / Year founded

Grupa HRC SA (2) ul. Leszno 8/1, 01-192 Warsaw 1 22 862-3812/22 862-4019 office@hrc.com.pl www.hrc.com.pl

125 110 70

50 45 30

175 155 100

140 110 90

100% -

3-4 4-6 4-8

6 9 12

✓ ✓ ✓

24 1996

Capital Partnership PW Capital

Piotr Macoch

Headcount Solutions Polska Sp. z o.o. Al. Jerozolimskie 56C, 00-803 Warsaw 2 22 583-9552 headcount@headcount.pl www.headcount.pl

93 104 92

20 23 15

113 127 107

117 134 112

WND WND WND

20% 80% -

2 4 6

6 6 12

✓ ✓ -

✓

6 2006

WND

Seamus Pentony

BCSystems Sp. z o.o. ul. Bagno 2, 00-112 Warsaw 3 22 622-9731/22 490-8400 office@bcsystems.pl www.bcsystems.pl

98 92 65

37 36 22

135 128 87

WND WND WND

70% 30%

1-3 1-3 1-3

1-3 1-6 3-12

✓ ✓ ✓

21 2006

Mariusz Skocz - 80% WND

Mariusz Skocz

Russell Reynolds Associates Sp. z o.o. ul. Belwederska 23, 00-761 Warsaw 4 22 851-6838/22 851-6848 joanna.chudziak@russellreynolds.com www.russellreynolds.com

55 60 58

66 65 65

47 WND WND

95% 5%

NA NA 6-8

NA NA 12

✓ ✓

14 1995

None Russel Reynolds Associates 99%; Russel Reynolds Services 1%

ACCETIS POLAND & CEER Sp. z o.o. ul. Marynarska 21, 02-674 Warsaw 5 22 463-9790/22 463-9791 contactpl@accetis.com www.accetis.com

60 56 30

15 24 20

75 80 50

WND WND WND

5% 90% 5%

NA 4-6 6-12

NA 6 12

✓ ✓ ✓

✓

✓ ✓

10 2002

None WND

Carpenter Consulting - IMSA Poland Sp. z o.o. Skwer Wyszyƒskiego 5/21, 01-015 Warsaw 6 22 406-0458 /22 406-0459 info@carpenterconsulting.pl www.carpenterconsulting.pl

76 50 15

24 25 36

100 75 51

26 21 18

5% 75% 20%

3 3 4

3-4 6-8 8-12

✓ ✓ ✓

✓ ✓

7 2005

Monika Ciesielska - 99% WND

CTER (Czarnocka Tworzyƒska Executive Recruitment) ul. Nowy Âwiat 30/5, 00-373 Warsaw 6 22 828-3667/22 828-3667 office@cter.pl www.cter.pl

53 50 49

36 35 25

89 85 74

85 86 75

42 35 30

100% -

NA 5-6 5-8

NA 9 12

✓ ✓

✓ -

11 2001

WND

Accord Group Polska Sp. z o.o. ul. Brodziƒskiego 27, 01-557 Warsaw 8 22 486-3001/22 839-1078 warsaw@accord-ece.com www.accord-ece.com

49 42 35

3 5 3

52 47 38

55 50 40

41 35 28

90% 10%

NA 4-6 6-8

NA 6 12

✓

10 1995

Corinne Klajda - 100% None

Jolanta Bosca

40 40 26

15 18 15

55 58 41

100% -

3-4 4-5 5-6

6 12 12

✓ ✓

✓ -

7 1991

Urszula Szostek None

Urszula Szostek

Grupa Tempo Sp.c. ul. KoÊciuszki 20/8, 44-100 Gliwice 9 32 335-3232/32 331-7525 biuro@grupatempo.pl www.grupatempo.pl

50 40 30

30 20 10

80 60 40

30 30 WND

35% 50% 15%

WND 2-3 4-6

WND 6 12

✓ ✓ ✓

25 2002

Agnieszka Bornus; Agnieszka Gajewska-Cygan WND

Agnieszka Bornus; Agnieszka Gajewska-Cygan

Devonshire Sp. z o.o. Al. Jerozolimskie 56C, 00-803 Warsaw 11 22 820-9360/22 820-9328 biuro@devonshire.pl www.devonshire.pl

55 35 25

75 65 50

130 100 75

170 140 100

55 65 40

20% 57% 20% 3%

2 2-4 4-6

3 6 12

✓ ✓ -

✓

20 2006

None Devonshire Recruitment Holdings - 100%

Daniel ¸upiƒski

SOURCE Executive Recruitment Sp. z o.o. 12 ul. Wilcza 72, 00-670 Warsaw 22 875-2335/22 825-5236 mail@source.pl www.source.pl

48 31 24

24 10 8

72 41 32

64 52 48

60 55 51

15% 85% -

1-3 2-3 3-4

3-6 6-12 12

✓ -

✓

✓ ✓

7 2000

None Thomas von Raeder - 85%; Kevin Nejedly - 15%

Aneta Górka

30 21 15

85 75 67

115 96 82

150 120 100

35 32 30

30% 70% -

3 4 6

3 6 12

✓ ✓ ✓

✓

12 2001

WND

Rank

Income breakdown: S&R / Executive Search / Temporary work agencies / Other

Services offered

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

Number of executive personnel employed

Total Number of Number of number of mid-level clients Total number served in management personnel employed of orders personnel field of overall employed Executive Search 2011 (forecast) / 2010 / 2009

Boyden \ Szostek & Partners Sp. z o.o. ul. Âródziemnomorska 11, 02-758 Warsaw 9 22 840-6061/22 642-3678

office@szostekpartners.com www.szostekpartners.com

Legend Human Resources Advisors ul. Marynarska 14, 02-674 Warsaw 13 22 647-0300/22 853-0097

lhra@lhra.pl www.lhra.pl

Ownership: Polish / Foreign

Top local executive / Title

Board Member

President

Dorota Czarnota President; Managing Partner Poland and CEE

Magdalena Nieç; Patrick Craps Country Manager; Regional Director

Monika Ciesielska President

Joanna CzarnockaTworzyƒska; Piotr Goliƒski Co-Managing Partners

General Manager

Managing Partner

General Director

Country Director

Adam ˚ebrowski General Manager

THE LIST

APRIL 23-29, 2012

www.wbj.pl

Order fulfillment period (weeks): Low-ranking personnel / Medium-ranking personnel / High-ranking personnel

Guarantee period (months): Low-ranking personnel / Medium-ranking personnel / High-ranking personnel

Headhunting / Assessment center / Management audit

HR dept. management / Satisfaction surveys / Outplacement

Job valuation / Training / Market monitoring

Total number of own employees in Poland / Year founded

Adecco Poland Sp. z o.o. Al. Jana Paw∏a II 19, 00-854 Warsaw 1 22 376-0900/22 376-0901 biuro.hq@adecco.com www.adecco.pl

WND 555 504

WND 685 610

WND 1,240 1,114

WND 1,303 1,160

WND WND WND

WND WND WND WND

WND WND WND

✓ ✓ ✓

238 1994

None Adecco - 100%

Anna Wicha

Hays Poland Sp. z o.o. ul. Z∏ota 59, 00-120 Warsaw 2 22 584-5650/22 584-5651 info@hays.pl www.hays.pl

WND 510 450

WND -

WND 510 450

WND 600 500

WND WND WND

WND WND WND WND

1-4 1-4 1-4+

WND WND WND

✓ ✓ -

✓ ✓

150 2002

None Hays Specialist Recruitment Limited - 100%

Micha∏ M∏ynarczyk

Stanton Chase International Sp. z o.o. Al. Niepodleg∏oÊci 124, 02-577 Warsaw 3 22 401-8030/22 401-8031 warsaw@stantonchase.com www.stantonchase.com

40 49 49

9 10 10

49 59 59

50 61 61

45 52 52

WND WND WND WND

NA 4-5 6-7

NA 12 12

✓ ✓

✓

8 1994

WND

Beata Soko∏owska-P´k

HRK SA Pl. Bankowy 2, 00-095 Warsaw 4 22 420-2000/22 420-2019 hrk@hrk.pl www.hrk.eu

50 41 81

82 87 78

132 128 159

143 132 174

97 84 85

WND WND WND WND

NA 2-5 3-6

NA 3-6 6-12

✓ ✓ ✓

✓ ✓

176 2000

WND None

WND

FUTUREA Grupa Doradcza Sp. z o.o. ul. T. Cha∏ubiƒskiego 8, 00-613 Warsaw 5 22 523-7474/22 524-7499 futurea@futurea.pl www.futurea.pl

WND 35 37

WND 21 22

WND 56 59

WND WND 62

WND WND WND

10% 30% 10% 50%

4 4 5-6

3 3-6 6-9

✓ ✓ ✓

✓ ✓ -

14 2002

WND

Mariusz Grzywiƒski

PSI Polska Jadwiga Kuczkowska Sp.k.-a. Al. Jana Paw∏a II 80/142, 00-175 Warsaw 6 22 536-9600/22 536-9600 office@psipolska.pl www.psipolska.pl

32 31 26

3 7 13

35 38 39

35 38 31

21 32 27

WND WND WND WND

NA 4-6 5-7

NA 6 6-12

✓ ✓ ✓

✓ ✓

✓ -

10 2006

Jadwiga Kuczkowska - 68%; Rafa∏ J´drzejewski - 30%; Anna Rudziƒska - 2% None

CPL Jobs Sp. z o.o. Al. Jerozolimskie 81, 02-001 Warsaw 7 22 488-6500/22 488-6530 warsaw@cpljobs.pl www.cpljobs.pl

WND 27 WND

WND 4 WND

WND 31 WND

WND 56 WND

WND 59 WND

80% 15% 5% -

2 3 6

3 3 12

✓ ✓ ✓

✓ ✓

27 2006

None CPL Resources - 100%

Gracjan Gódê

Inwenta Sp. z o.o. ul. Koszykowa 69/3, 00-667 Warsaw 8 22 502-3470/22 502-3471 biuro@inwenta.pl www.inwenta.pl

29 25 23

6 6 3

35 31 26

36 33 28

28 23 26

25% 42% 33%

NA 5-6 6-8

NA 6-8 12

✓ ✓ ✓

✓ ✓

14 2004

Monika Buchajska-Wróbel - 50%; Beata Bukowska - 50% None

Monika Buchajska-Wróbel; Beata Bukowska

Reed Employment Limited Oddzia∏ w Polsce Al. Jerozolimskie 123A, 02-217 Warsaw 9 22 397-3100/22 397-3101 info.poland@reedglobal.com www.reedglobal.pl

13 15 NA

37 32 NA

50 47 NA

55 52 NA

15 12 NA

75% 25% -

NA 4 5

NA 3 6

✓ -

✓

✓ ✓

15 2005

None Reed Employment Limited - 100%

Karolina Adamiec-Vook

Start People Sp. z o.o. ul. Piotrowska 111, 90-425 ¸ódê 10 22 661-5902/22 661-5902 mwieczorkowska@startpeople.pl www.startpeople.pl

22 12 WND

25 20 WND

39 30 WND

57 52 WND

56 54 WND

1.3% 0.7% 98% -

3-6 4-8 5-12

3-6 6-9 6-12

WND WND WND

WND WND ✓

WND ✓ WND

169 1997

WND USG People

Marek Jurkiewicz

Sanpro Job Service Sp. z o.o. ul. Ruska 3/4, 50-079 Wroc∏aw 11 800-190-911/71 711-0001 cc.info@impel.pl www.stacjarekrutacja.pl

9 10 7

35 55 39

44 65 46

21 35 18

4% 1% 95% -

2-4 4-5 14

1-3 3-6 3-6

✓

✓ ✓ ✓

150 2003

WND

Grzegorz Tyszka

Stegmann Polska Sp. z o.o. ul. Opolska 1, 40-084 Katowice 12 32 609-0550/32 609-0559 stegmann@stegmann-personal.pl www.stegmann-personal.pl

3 3 2

6 8 5

9 11 7

5 6 4

5% 1% 94% -

WND WND WND

3 3 6-12

✓ ✓ ✓

✓ ✓ WND

WND WND WND

15 2004

WND

Aleksandra Knapczyk

WND 2 20

WND 6

WND 2 26

WND 2 30

WND WND WND

WND WND WND WND

3-4 4-6 6

1-3 2-3 3-6

✓ ✓ -

✓

399 1999

Supernova IDM Fund - 16.1%; HMS Best Management Idea LTI 10.3% Prologics UK - 36%

WND WND WND

WND WND WND WND

4-5 4-5 6

6 9 12

✓ ✓ ✓

✓ WND ✓

✓ ✓ ✓

54 1993

WND

Piotr Wielgomas

1 WND WND

2 WND WND

WND WND WND

WND WND WND WND

WND WND WND

✓ ✓

60 2003

WND

Maciej Kozicki

Rank

Income breakdown: S&R / Executive Search / Temporary work agencies / Other

Companies whose core business is not Executive Search (1) Company name Address Tel./Fax E-mail Web page

Number of executive personnel employed

Number of Number of mid-level management personnel employed personnel overall employed

Total number of clients Total served in number of field of orders Executive Search

2011 (forecast) / 2010 / 2009

Work Service SA ul. Ruska 51, 50-079 Wroc∏aw 13 71 371-0900/71 371-0938 work@workservice.pl www.workservice.pl BIGRAM SA ul. Cybernetyki 7, 02-677 Warsaw NR 22 646-9494/22 848-7030

bigram@bigram.pl www.bigram.pl Grupa Job Job Impulse Polska Sp. z o.o. ul. Sielska 8, 60-129 Poznaƒ NR 61 662-3479/61 662-3479 atokarewicz@grupajob.pl www.grupajob.pl

Notes: Notes: NA = Not Applicable, NR = Not Ranked, WND = Would Not Disclose. Research for The List was conducted in October 2011. Number of employees and ownership structure are as of September 2011. All information pertains to the companies’ activities in Poland. Companies not responding to our survey are not listed. Footnotes: (1) Categorization was determined by percentage of income from executive search services. (2) Previously Human Resource Consulting Sp. z o.o.

Services offered

Ownership: Polish / Foreign

Top local executive / Title

General Director

Managing Director CEE

Managing Director

President

Jadwiga Kuczkowska Unlimited Partner

Country Manager

Board Members

Country Manager

Managing Director

President

Country Manager, Proxy

Tomasz Hanczarek President

President

To the best of WBJ ’s knowledge, the information is accurate as of press time. While every effort is made to ensure accuracy and thoroughness, omissions and typographical errors may occur. Corrections or additions to The List should be sent, on official letterhead, to Warsaw Business Journal, attn. Joanna Raszka, ul. Elblàska 15/17, 01-747 Warsaw, via fax to (+48) 22 639-8569, or via e-mail to wbjbol@wbj.pl. Copyright 2012, Valkea Media SA. The List may not be reprinted or reproduced in whole or in part without prior written permission of the publisher. Reprints are available.

MARKETS

www.wbj.pl

APRIL 23-29, 2012

Stocks report

world stock indices DJIA

NASDAQ

12,964.1 (Apr 19 close)

S&P500

3,007.56 (Apr 19 close)

-0.17% (for the week)

FTSE100

1,376.92 (Apr 19 close)

-1.57% (for the week)

DAX

5,744.5 (Apr 19 close)

-0.77% (for the week)

0.60% (for the week)

Good news proves fleeting

NIKKEI225 6,671.22 (Apr 19 close)

9,588.38 (Apr 19 close)

-1.07% (for the week)

0.67% (for the week)

CHANGE: 4.57%

CHANGE: 13.55%

CHANGE: 7.82%

CHANGE: 0.78%

CHANGE: 9.80%

CHANGE: 12.01%

(year to Apr 19)

52-week high: 13,289.08

52-week high: 3,095.36

52-week high: 1,414.00

52-week high: 6,103.73

52-week high: 7,600.41

52-week high: 10,207.91

52-week low: 10,404.49

52-week low: 2,298.89

52-week low: 1,074.77

52-week low: 4,791.01

52-week low: 4,965.80

52-week low: 8,135.79

The WSE started the week in negative territory. The bluechip WIG20 index lost 0.3 percent at the beginning of the day. However, positive macroeconomic news from the US regarding retail sales brought the WIG20 up 0.5 percent during the day. But the optimism didn’t last long, and the WIG20 closed 0.06 percent down. Tuesday saw little fluctuation in share prices. Moods were higher in part due to a better-than-expected sale of short-term Spanish bonds, and the WIG20 ended 0.88 percent higher while the midcap mWIG40 was up 0.17 percent. Investors started Wednesday in good spirits. Solid gains from Tuesday in Europe, on the NYSE and in Asian markets gave cause for cheer. But negative real-estate news from China worsened the mood, and bad news from

Major indices WIG

40,354.53 (April 19 close)

WIG20

2,232.18 (April 19 close)

52-week high: 50,371.74

Change for the week: -2.04%

52-week high: 2,932.62

Change year to April 19: 5.31%

52-week low: 36,549.47

Change year to April 19: 1.74%

52-week low: 2,089.84

2,400

42,400

2,360

41,800

2,320

41,200

2,280

40,600

2,240

40,000

2,200

21.03 22.03 23.03 26.03 27.03 28.03 29.03 30.03 02.04 03.04 04.04 05.04 10.04 11.04 12.04 13.04 16.04 17.04 18.04 19.04

43,000

21.03 22.03 23.03 26.03 27.03 28.03 29.03 30.03 02.04 03.04 04.04 05.04 10.04 11.04 12.04 13.04 16.04 17.04 18.04 19.04

Change for the week: -1.70%

Other indices mWIG40

2,455.29 (April 19 close)

sWIG80

10,057.05 (April 19 close)

Change for the week: -0.77%

52-week high: 2,987.72

Change for the week: -1.00%

Change year to April 19: 12.10%

52-week low: 2,076.52

Change year to April 19: 16.88%

Spain added to the gloom. The WIG20 ended the day 1.09 percent lower. Investors started off Thursday thinking they would recover their losses. But it was another day of losses on the WSE, as poor macroeconomic data from the US regarding the housing market and economic activity spoiled moods. Polish macroeconomic data wasn’t much better. Industrial production rose by just 0.7 percent in March while the market had expected an increase of 4.7 percent. The WIG20 ended the day 0.6 percent in the red. On Friday, investors weren’t in an optimistic mood and most indices were down during the day. If not for the optimistic start to the day of the S&P, markets would have finished the session with deep losses. In the end the WIG20 finished 0.5 percent down. Remi Adekoya

52-week high: 12,932.00 52-week low: 8,218.71

Currency report 10,500

2,560

10,380

2,520

10,260

10,140

2,440

10,020

2,400

9,900

21.03 22.03 23.03 26.03 27.03 28.03 29.03 30.03 02.04 03.04 04.04 05.04 10.04 11.04 12.04 13.04 16.04 17.04 18.04 19.04

2,480

NewConnect

41.37 (April 19 close)

Z∏oty on roller coaster Adam Narczewski X-Trade Brokers DM SA

21.03 22.03 23.03 26.03 27.03 28.03 29.03 30.03 02.04 03.04 04.04 05.04 10.04 11.04 12.04 13.04 16.04 17.04 18.04 19.04

2,600

WIG-Banki

5,726.44 (April 19 close)

52-week high: 59.10

Change for the week: -1.73%

52-week high: 7,387.49

Change year to April 19: -0.29%

52-week low: 40.00

Change year to April 19: 5.12%

52-week low: 4,944.19

43.2

6,000

42.4

5,900

41.6

5,800

40.8

5,700

40.0

5,600

21.03 22.03 23.03 26.03 27.03 28.03 29.03 30.03 02.04 03.04 04.04 05.04 10.04 11.04 12.04 13.04 16.04 17.04 18.04 19.04

6,100

21.03 22.03 23.03 26.03 27.03 28.03 29.03 30.03 02.04 03.04 04.04 05.04 10.04 11.04 12.04 13.04 16.04 17.04 18.04 19.04

44.0

SOURCE: WSE

Change for the week: -1.15%

As summer approaches, we are experiencing a déjà vu from last year, where after a good first quarter, the rest of the year was a struggle. High oil prices, a slowdown in Asia – we saw all of that in 2011. This past week brought more confirmation of that correlation with worse-thanexpected data from the US economy. This turn of events lowers the chance for an interest-rate hike in the US, which some thought could happen as early as this year. The US dollar has been under pressure since the beginning of the week and the EUR/USD climbed all the way to reach the resistance level of $1.32 ($1.30 at the beginning of the week). Next week I expect a corrective movement, which should push the main currency pair to the $1.30-$1.31 level.

The z∏oty was on a roller coaster this past week, as mixed data from Poland hit the market. Average wages increased, which made the hawkish views of the ratesetting Monetary Policy Council (RPP) more valid. Marek Belka, the central bank’s president, confirmed the RPP would seriously consider an interest hike at their next meeting. However, data showed that core CPI inflation dropped in Poland to 2.4 percent on an annual basis, lowering the chance of a hike. Investors are unsure about the direction of the z∏oty and this can be seen in the currency’s movements last week – the EUR/PLN, after reaching its weekly high of z∏.4.20, tumbled to a weekly low of z∏.4.16 and finished the week at z∏.4.19. ●

currency rates 3.9487

3.9151

3.9113

17.04

18.04

19.04

20.04

4.0025 16.04

SOURCE: NBP

3.9248 13.04

0.1080

0.1078 20.04

3.5

3.8961

PLN-100JPY

4.2

19.04

0.1077

0.1081 18.04

17.04

16.04

0.1075 13.04

3.4837

3.4853 20.04

0.10

0.1086

PLN-RUB

0.12

19.04

3.4738 18.04

3.4765

3.4872 17.04

16.04

13.04

5.1183

5.1242 20.04

3.4

3.4940

PLN-CHF

3.6

19.04

5.0995 18.04

5.0862 17.04

5.1148 16.04

4.8

5.0580

5.0

13.04

3.1828 20.04

3.1879

3.1902

PLN-GBP

5.2

19.04

18.04

3.1872 17.04

3.2289 16.04

20.04

19.04

18.04

17.04

13.04

3.1765

4.1885

4.1865

4.1900

4.1760

4.1779

PLN-USD

3.5

3.0

16.04

4.1

13.04

4.2

4.2028

PLN-EUR

4.3

SPORTS

APRIL 23-29, 2012

www.wbj.pl

Ice hockey

The Eagles scored 19 goals without conceding any in their first two matches

3,000 ecstatic fans. However, it was not until 10 minutes into the game that Poland managed to break through the Lithuanian defense, when 35-year-old Piotr Sarnik’s power-play goal put the Poles ahead 1-0. From then on it was one-way traffic as Lithuania could do nothing to prevent head coach Wiktor Pysz’s team swarming forward with wave after wave of attacks that in the end helped produce a very comfortable victory. In their next game the Eagles went one better with a 10-0 thumping of Romania, as Polish defender Adam Borzec-

Poland’s national ice hockey team brushed aside the opposition in their opening matches at the 2012 IIHF Ice Hockey World Championship Division 1 Group B, in Krynica, with two outstanding displays. Poland went into the tournament, which comprises teams from the third tier of international ice hockey, as favorites. The home side certainly lived up to their billing with a 9-0 thrashing of Lithuania on April 15, in front of

ki put on an inspired display. “Poland … is the best team in this tournament. I think there isn’t a team here that has six forwards like their top six, as well as a couple of their defensemen. For us, who have been coming up a division it is a challenge to play at the pace they do,” said Romania’s Canadian head coach Tom Skinner, after the match. In their other games, Poland beat the Netherlands and Australia 5-1 and 5-3 respectively. The Eagles had one game left to play, against South Korea, as WBJ went to press. David Ingham

American football

COURTESY OF WIKIMEDIA COMMONS

Poland on fire at international championships

Piotr Sarnik opened the scoring in the 9-0 defeat of Lithuania

Basketball

Warsaw Eagles remain Gortat’s double-double Phoenix Suns unbeaten after Kraków victory The player scored 20

The Warsaw Eagles overcame the Dom-Bud Kraków Tigers in the latest round of matches in the Topliga division of the Polish American Football League (PLFA), to remain the only unbeaten team. Kevin Lynch threw four touchdowns as eight different Eagles found the end zone in a match which saw Warsaw defeat the Tigers by a score of 68-12. Marcin Jod∏owski and Piotr Osuchowski both scored twice for the victors, who are now averaging 49 points a game in Topliga play. Things are a little less rosy for the Tigers, who are now tied for fourth place with the AZS Silesia Rebels. Elsewhere, Kyle McMahon threw three scores and ran for two more as the Gdynia Seahawks built a 28-0 halftime lead

points and got 10 rebounds Polish NBA star Marcin Gortat was the star performer for the Phoenix Suns in their 125107 victory over the Portland Trail Blazers last week. The ¸ódê-born 29-year-old scored 20 points and got 10 rebounds to secure his 29th double-double of the season.

COURTESY OF MARCIN WARPECHOWSKI

The Devils and the Seahawks both recorded shutouts in a one-sided weekend in the PLFA Topliga

The Warsaw Eagles’ Kevin Lynch looks for a receiver in the team’s win over the Tigers en route to a 49-0 shutout of the AZS Silesia Rebels in Katowice. Josh DeLuca was on the receiving end of two of those touchdown passes and Sebastian Krzysztofek also found the end zone twice for Gdynia. Koz∏y Poznaƒ’s miserable start to the season continued as they were dominated by the Wroc∏aw Devils 34-0. Despite being without star quarterback Krzysztof Wydrowski, the Devils still managed to slice up the Koz∏y, who failed to score for the second time this season.

But although the gap between the teams was significant by the end of the game, it had hung in the balance until late in the third quarter when it turned into the Krzysztof Wis show. Playing defense as well as kicking, he intercepted a pass and took it 60 yards to the end zone for the game’s first touchdown. The Devils’ defender later kicked a field goal to make it 21-0 for the Devils going in to the final quarter. Alex Zarganis

In the end it was a fairly comfortable night’s work for the Suns as they dominated for the majority of the match, building a 20-point lead by the end of the third quarter. Steve Nash, who had 14 assists, said after the game, “The sense of urgency has been here since the All-Star Game. … I think we’re playing that way every game, and have felt that through the last few weeks.”

It was the Suns’ fourth victory in their last six games and their second consecutive win as they maintain their late push for a playoff spot. The Suns have two games left to make sure of their place in the top eight of the Western Conference. As WBJ went to press Phoenix was ranked eighth, level on wins with the Utah Jazz but with a better inconference record. David Ingham

Swimming

Champion swimmer in coma Mateusz Matczak suffered serious head injuries following a night out in ¸ódê Former Junior World Champion swimmer Mateusz Matczak is in a drug-induced coma after suffering serious head injuries during a drunken night out last week. As WBJ went to press, police and medical staff were still not sure of the exact circumstances sur-

rounding the incident. The 23-year-old from ¸ódê had been drinking with friends at a club in his hometown until the early hours of the morning on April 15. After leaving the club he was seen on local closed-circuit cameras leaning against a wall at 3:10 am. Approximately 10 minutes later he was discovered by police lying on the ground nearby with serious head injuries.

Medical staff have ruled out the possibility that the former junior world swimming champion had been assaulted or robbed. Mr Matczak won the 400meter freestyle gold medal at the 2006 Junior World Championships. He also took gold in both the 400-meter freestyle and 400-meter medley events at the 2007 European Junior Championships. David Ingham

LIFESTYLE

www.wbj.pl

Concert

APRIL 23-29, 2012

Exhibition

Come on feel the noise Personal art Until 26 May Aneta Grzeszykowska and Jan Smaga – Private Archive Raster Gallery ul. Wspólna 63 Warsaw

May 9 The Lemonheads Hydrozagadka ul. 11 Listopada 22 Warsaw Once a darling of the indiemusic press, The Lemonheads’ lead singer Evan Dando never quite hit the heights expected of him when his band burst on to the alternative scene in the early 1990s. His band’s breakthrough album came in 1992 with their first major label release “It’s a

Shame about Ray,” which featured a cover of the Simon & Garfunkel track “Mrs Robinson.” The original version of the song was used in the film “The Graduate,” and The Lemonheads’ version gained mainstream exposure as part of the soundtrack of the movie “Wayne’s World 2.” The band’s next album, 1993’s “Come On Feel The Lemonheads,” reached 52 on the Billboard 200 chart, confirming the group’s growing

popularity. Drug problems and various lineup changes then served to hamper the band’s progress, but fans of alternative rock can rest assured, charismatic front man Evan Dando and his band can still put on a great live show and will be well worth going to see this May. Tickets for the event are priced from z∏.49. For more information, log on to hydrozagadka.waw.pl David Ingham

“is a journal of emotion which records the authors’ fantasies, which are sometimes beautiful and sometimes shameful.” The exhibition is also accompanied by “Love Book,” which provides a collection of Aneta Grzeszykowska’s photos, as well as essays by Jan Smaga. For more information, log on to raster.art.pl David Ingham

Workshop

Dance fever April 30-May 3 Dance Mania 15 Egurrola Dance Studio ul. ˚wirki i Wigury 99a, Warsaw Whether you’re a natural on the dance floor or you’ve got two left feet but still love to dance, Dance Mania 15 offers a series of classes for all levels. Organized by the Egurrola Dance Studio, this four-day workshop will provide expert tutorials from leading dance professionals in a variety of styles including Afro, Hip Hop, Ragga Jam and Dance Hall. The event will also include competitions for more talented dancers with the Dancemania Challenge, which takes place on May 2, offering prizes totaling over z∏.10,000. For more information, log on to dancemania.pl DI

COURTESY OF EGURROLA DANCE STUDIO

Evan Dando

COURTESY OF THE LEMONHEADS.NET

The focal point of this new exhibition is a collection of photographs from the private archive of Polish artistic couple Aneta Grzeszykowska and Jan Smaga. The photos aim to offer an

insight into the artists’ working practices, while at the same time providing a record of their private lives. The images show their workshops and working spaces as well as the couple indulging in romance, experimentation and relaxation. According to Raster Gallery the exhibition, which is definitely not for the prudish,

Participants can learn how to dance in the Ragga Jam and Hip Hop styles

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

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

Simonis Gallery ul. Burakowska 9 www.simonisgallery.com

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

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

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

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

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

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

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

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

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

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

LAST WORD

APRIL 23-29, 2012

www.wbj.pl

Tech Eye

The Transformer Pad 300 Techeye had planned to write an impassioned harangue for this column, one entitled “My Little Phony: Why ‘The Powerpuff Girls’ are awesomer than ‘My Little Pony: Friendship is Magic.’” Our point was that saccharine-sweet, superpowered girls who fight evil are cooler than anthropomorphized ponies perpetually perplexed by friendship. We had just sat down in a cafe to work on this opus, when suddenly the fellow at the next table sneezed violently, spraying snotlets across his iPad. All we could think at the time was “Thou shalt not sneeze on thy iPad” and we giggled a little, earning a snotty look from the unfortunate iPad owner.

COURTESY OF KUPA

Anyway, Techeye got the idea to the high and mid-level models, invent modern Commandments respectively) and while the 300 has a like “Thou shalt not covet thy 10.1-inch display like its pricier sibneighbor’s wife (unless she’s real- lings, the screen quality is decidedly ly hot)” and “Thou shalt not put lower. Still, Asus is building a decent ponies before Powerpuffs.” reputation for itself in this hybrid Then we had an epiphany of niche and the 300 looks interesting. sorts: the iPad is a tablet. It runs on Ice Cream Sandwich, the The biblical 10 Com- latest version of Android, has an mandments were NVIDIA Tegra 3 quad-core CPU, written on one gig of RAM and 16 GB of stort a b l e t s . age memory. Transformer Pad 300 sales should Coinc i d e n c e ? start soon. As of last week no official announcement had been made, but Sure. Still cool, though. And so Techeye’s “Modern-Day, rumors suggested a price tag of Secular and In No Way Blasphe- under $400. Here’s another option: the Child mous Commandments” – destined to change the world, of course – will Pad by Archos (archos.com). As its be written on a tablet computer. Not name suggests, this 7-inch tablet is a an iPad, though. The world already kid-friendly piece of kit. It contains has plenty self-righteous Mactards, an unpretentious 1 GHz ARM Cortex A8 processor and 1 GB of RAM. no point in encouraging them. Thus we’ve been looking at iPad alternatives on which to write our not-so-divine guidelines, such as the Transformer Pad 300, a new tablet/netbook hybrid from Asus (asus.com). This is the budget model in the Transformer Pad range (the Prime and Infinity are The Child Pad

The Kupa X11 The Child Pad is designed to be a bit sturdier than the average tablet, with a resistive touchscreen and a rubberized back. It comes installed with parental control software as well as games such as “Angry Birds” and “Flight Frenzy.” Archos had originally announced a shipping date of end March, but missed it. The tablet is still on its way, though “soon” is the best guess we’ve heard. The suggested retail price is $129. The final alternative is the Kupa X11 (kupaworld.com) which, we’ll be honest, only caught our attention because kupa means “poop” in Polish. COURTESY OF ARCHOS VIA MAX BORGES AGENCY

COURTESY OF ASUS

Tablets containing wisdom, great and small

Yes, it’s juvenile. But that doesn’t make it any less funny. The Kupa X11 is a little unusual in the market because it runs Windows 7 (possibly Windows 8 in the future) and comes with a stylus. It has a 10.1-inch touchscreen and comes with 64 or 128 GB of solid state memory; for comparison, the lower figure is equivalent to the toptier version of the new iPad. The tablet costs $699-$969, depending on options. It has been praised for its powerful performance and decent battery life (purportedly 10 in-use hours), but its design is awkward and the stylus is a bit of an odd duck. Even so, we’ll probably use it to write our new Commandments, just because its name makes us laugh. Divine inspiration, that. ●

Ever doubted the magic of friendship between ponies? Let us know: techeye.wbj@gmail.com

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