WBJ #8 2012

Asseco Poland has launched a takeover bid for rival Sygnity

Environmental laws pose a major challenge to Poland’s chemical industry

PM Tusk met with ministers last week, looking to reverse slumping poll numbers 7

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WWW.WBJ.PL

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VOLUME 18, NUMBER 8 • FEB 27 – MAR 4, 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

He’s back

COURTESY OF M+G

Lokale Immobilia

What will Vladimir Putin’s return to the presidency of Russia mean for relations between Warsaw and Moscow?

• Capital Park • Brama Portowa • Reverse mortgages 15-17

COURTESY OF DANUTA HÜBNER

2, 11, 12-13

Interview: Danuta Hübner The Polish MEP gives WBJ an insider’s view on Poland’s place in the EU

SHUTTERSTOCK

8-9

On topic Journalist Tomasz Lis launches a Huffington Post-inspired news site

Bailout blues Euro-zone finance ministers have approved a new bailout for Greece. But plenty of trouble could still lie ahead 3

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In this issue

COURTESY OF KGHM

News . . . . . . . . . . . . . . . . . . . . . . .2-4 Business . . . . . . . . . . . . . . . . . . . .5-6 Chemical Industry in Focus . . . . . .7 Interview . . . . . . . . . . . . . . . . . . . .8-9 Opinion & Analysis . . . . . . . . .10-11 Cover Story . . . . . . . . . . . . . . . .12-13 Lokale Immobilia . . . . . . . . . . .15-17 The List . . . . . . . . . . . . . . . . . . .18-19 Markets . . . . . . . . . . . . . . . . . . . . . .20 Sports . . . . . . . . . . . . . . . . . . . . . . .21 Lifestyle . . . . . . . . . . . . . . . . . . . . .22 Last Word . . . . . . . . . . . . . . . . . . . .23

SHUTTERSTOCK

Digging deep Polish copper-mining giant KGHM is one step closer to completing the largest foreign takeover in Polish history 5

NEWS

www.wbj.pl

FEBRUARY 27 – MARCH 4, 2012

Numbers in the News

2.5%

ACTA in European Court of Justice In light of the recent Europe-wide protests against the AntiCounterfeiting Trade Agreement (ACTA), the European Commission has decided to submit the international treaty to the European Court of Justice. “We are planning to ask Europe’s highest court to assess whether ACTA is incompatible – in any way – with the EU’s fundamental rights and freedoms, such as freedom of expression and information or data protection and the right to property in case of intellectual property,” European Commissioner for Trade Karel De Gucht said in a statement last Wednesday. ●

Quote of the Week “[Politics] is not a kebab [that can be prepared] either spicy or mild.”

Opposition Law and Justice (PiS) party spokesperson Adam Hofman responds to a question on RMF FM about which style of politics the party would adopt in the upcoming months.

Figures in focus Seeking asylum Top ten citizenships of asylum applicants in the EU27, Q2 2011

As WBJ went to press the highly anticipated 84th Academy Awards ceremony was set to take place over the weekend. With Polish director Agnieszka Holland’s “In Darkness” nomination for Best Foreign Language Film, we decided to take a look at some of the past Polish Oscar winners. To find out more about Poland’s award-winning movie makers, log on to wbj.pl.

DATELINE

February / March 6 -9

MIPIM

Event:

Web:

This two-day meeting allows Polish and foreign firms in the chemical sector to meet, do business and establish partnerships.

Spodek, Katowice expochem.pl

Web:

MIPIM is the world’s leading international real estate fair. Over 4,000 investors and over 19,000 participants attend these four days of workshops, debates and networking.

Palais des Festivals, Cannes, France mipim.com

6-8

POLISH ECONOMIC CONGRESS

6-10

CEBIT 2012

Event:

This congress and its accompanying conferences offer debate on Poland’s current economic situation, along with discussions on specific issues in each sector.

Warsaw University of Technology polskikongresgospodarczy.pl

Event:

CeBIT is the world’s largest trade fair showcasing digital IT and telecommunications solutions.

Hannover, Germany cebit.de

Event:

Location:

Location: Web:

Location:

Location: Web:

Source: Eurostat

Company index

Polish Oscar winners

EXPOCHEM

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Remi Adekoya

On WBJ.pl

FEB 29 – MAR 1

lad

Ira

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Ira

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10,000 9,000 8,000 7,000 6,000 5,000 4,000 3,000 2,000 1,000 0

Pa k

prime minister for the next four years.

Polish-Russian relations have resembled something of a roller-coaster ride since Mr Putin first came to power over a decade ago.

He initially visited Poland in 2002 when Aleksander KwaÊniewski was president. The atmosphere then was positive, with Mr Putin saying Russians had “a lot of respect for the Polish nation” and Mr KwaÊniewski stated that the visit was “the beginning of a new era in dialogue” between the two countries.

Mr Putin’s next trip to Poland was in 2005 for the 60th

z∏.0.20 is the amount per km that drivers using a stretch of the A4 freeway between Bielany Wroc∏awskie and Gliwice will have to pay from June 1 2012, following the introduction of a new toll.

sia

The European Commission predicts that Poland’s economy will see the strongest growth out of all EU countries in 2012. The EC forecasts the EU as a whole will see economic growth stagnate, while the eurozone economy is expected to contract slightly. For Poland, “real GDP is projected to increase by 2.5% in 2012,” the EC said.

Vladimir Putin is without a doubt the most powerful man in Russia, and after March 4 he will once again assume the most powerful office in his country by becoming president of the Russian Federation. At least two polls currently have him winning the election in the first round of voting with over 50 percent support.

Mr Putin was first elected Russian president in 2000 with 53 percent of the vote. He then won re-election four years later in a landslide after gaining 71 percent support.

Due to constitutional restraints he stepped aside in 2008, assuming the office of

96,400 was the number of permits issued in 2011 for the building of single-family homes in Poland.

n

Poland to see highest GDP growth in EU?

z∏.25.1 billion was the state’s budget deficit in 2011, z∏.15.1 billion less than the sum previously predicted in the government’s budget plans.

ist a

Polish folk arts society Stowarzyszenie Twórców Ludowych (STL) wants to continue awarding its annual “People’s Oskars,” despite claims by the American Academy Awards that the name of the prize amounts to an unlawful use of the prestige of Hollywood’s Oscars ceremony. On February 14, STL received a letter from the Academy of Motion Picture Arts and Sciences demanding that the name “People’s Oskars” be changed. In the letter, seen by the Associated Press, the Academy says “Oscar” is a protected trademark.

SHUTTERSTOCK

Polish ‘Oskars’ controversy

anniversary of the liberation of the Auschwitz-Birkenau concentration camp. By then, relations had soured. The visit took place just after the Orange Revolution in Ukraine, in which Mr KwaÊniewski helped to bring about the resolution that brought the pro-Western Viktor Yushchenko to power, a result that displeased Moscow.

During the 2005 Moscow celebrations of the 60th anniversary of the end of World War II, Mr Putin didn’t mention Poland as an important ally of the Soviet Union in the campaign against the Nazis, a move seen by many in Poland as an intended slight. The Russians also banned meat imports from Poland that same year, a move many Poles viewed as politically motivated.

During President Lech Kaczyƒski’s tenure in office (2005-2010) there was no presidential-level visit on either side.

But in 2010 Mr Putin changed tack and invited Prime Minister Donald Tusk to attend observances of the 70th anniversary of the Katyƒ massacres in which over 20,000 officers, policemen and other Polish nationals were murdered by the Soviet secret police.

This was the first time a Russian leader had ever publicly commemorated the massacres and was seen as a significant gesture on Mr Putin’s part.

Following a change in the Russian constitution that has extended the presidential term from four to six years, if successfully elected Mr Putin could conceivably remain in charge of the Kremlin until 2024.

is the amount by which Poland’s GDP is expected to grow this year, according to the most recent forecast by the European Commission.

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Vladimir Putin

Af

COURTESY OF KULTURALUDOWA.PL

IN THE SPOTLIGHT

Ru s

2

Asseco ....................................5 AXI IMMO ..............................16 Azoty Tarnów ..........................7 Blackstone Real Estate Group ................16 BNP Paribas............................2 Bouygues Immobilier Polska ................17 Brockhuis Jurczak Prusak ..15 BZ WBK ..................................6 Capital Park ..........................15 Castorama DIY ......................16 Cushman & Wakefield ..........16 Cyfrowy Polsat ........................4 DI BRE Bank ..........................6 Dom Development ................17 Echo Investment ..................17 Emmerson Evaluation ..........15 Enea ......................................12 Energa ..................................12 Gazprom ..................................5 Hochtief Polska ....................16 Home Broker ........................17 Infosys BPO Poland ..............16 Inter IKEA group ..................16

Itella Information ..................15 JSW..........................................7 KGHM ..................................5, 7 Master Management Group 16 Mattel ....................................23 Medusa Group ......................16 Nielsen ..................................12 Nordea ....................................6 Pekao ....................................17 PGE ....................................7, 12 PGNiG ......................................5 PKE Polska............................15 PKN Orlen ..............................7 Polkomtel ................................4 PZU ..........................................6 Quadra FNX Mining ................5 ROBYG ..................................17 Skanska Property Poland ....16 Stalexport Autostrada Ma∏opolska..............................4 Steve Spangler Science ........23 Sygnity ....................................5 X-Trade Brokers....................20

NEWS

FEBRUARY 27 – MARCH 4, 2012

www.wbj.pl

3

Euro-zone crisis

Success of Greek bailout deal far from certain

Euro-zone finance ministers approved a second bailout for debt-laden Greece last Tuesday, in the hopes it will resolve Athens’ immediate repayment needs.

Pending fulfillment of certain conditions, the EU and IMF will give loans valued at over €130 billion to help Greece avoid bankruptcy on March 20 – the date its maturing debt needs to be repaid.

Polish Finance Minister Jacek Rostowski told journalists, “We should all rejoice that the Eurogroup has come to an agreement.”

The success of the bailout plan will depend in significant part on whether private investors accept the large losses on Greek government debt that the plan envisages.

Thanks to support from Pasok and New Democracy, the two largest parties in Prime Minister Lucas Papademos’ coalition government, a debt-swap law was passed to permit the write-downs.

Under this part of the deal, private creditors will take a 53.5 percent loss on their Greek government bonds – well above the level considered necessary just a few weeks ago.

Austerity measures If a sufficient number of investors agree to stomach the losses, the inter-governmental aspect of the plan will kick in: In exchange for the loans, Greece is expected to implement austerity measures to help reduce its debt to 120.5 percent of gross domestic product by 2020. At present the county’s debt-toGDP ratio totals 160 percent, following years of recession.

The deal envisages the Greek government altering

COURTESY OF THE EU COUNCIL

Greece has until early this week to implement a slew of punishing austerity measures

Greek Prime Minister Lucas Papademos (left) and Finance Minister Evangelos Venizelos have a tough road ahead the constitution to prioritize debt repayment, cutting the minimum wage by 22 percent and making advance debtservice payments into an externally monitored account. Greece has until early this week to approve the €3.3

billion in spending cuts linked to the EU/IMF loans.

The country will also have to accept an “enhanced and permanent” presence of EU monitors, who will oversee the Greek government’s management of the economy.

Pessimistic scenario There are however already signs that Greece may not be able to meet all of these requirements.

The Financial Times published a leaked “strictly confidential” report last week on

Greece’s debt projections. The document, which was originally prepared for euro-zone finance ministers, says the austerity measures could end up pushing Greece into a deeper recession and eventually forcing it to ask for a third bailout.

A “tailored downside scenario” detailing a pessimistic turn of events is envisaged in the report.

“The Greek authorities may not be able to deliver structural reforms and policy adjustments at the pace envisioned in the baseline,” the report warns.

Moreover, in a letter to German lawmakers German Finance Minister Wolfgang Schäuble said, “It is possibly … not the last time the German parliament will have to deal with financial aid for Greece,” Dow Jones Newswires reported.

The German parliament is due to vote on the Greek bailout early this week.

Gareth Price

Ruling coalition

Fuel

Tusk meets ministers following slump in polls

Oil prices rise over Iran concerns

Downplaying criticism In what has been a turbulent few months for Mr Tusk, following a series of high-profile PR slip-ups, the government’s public approval rating has fallen – to as low as 23 percent, according to one recent poll.

Following his meetings with Mr Rostowski and Mr Sikorski,

Prime Minister Tusk sought to downplay the bad publicity that has surrounded the government in recent weeks.

“Let’s not allow ourselves to believe that we’ve had nothing but a string of disasters. No one’s questioning that those 100 days [of the new term] included blunders and clumsiness, but I believe those were secondary matters,” he said.

Mr Tusk also aimed to address opposition to the government’s planned pension reforms from Mr Pawlak, the leader of Civic Platform’s junior coalition partner, the Polish People’s Party (PSL).

Ahead of his meeting with Mr Pawlak last Thursday, Mr Tusk publicly rebuked the PSL leader, saying his deputy should refrain from criticizing DI government plans.

COURTESY OF FLICKR/KPRM

Prime Minister Donald Tusk met with his deputy, Waldemar Pawlak, and Regional Development Minister El˝bieta Bieƒkowska last Thursday as part of a series of meetings he is holding with all government ministers following a slump in popularity for the ruling coalition.

The meeting was held to assess the country’s preparations for implementing its new energy strategy, with the PM stressing afterwards that Poland would not stray from the path of developing nuclear power.

“The increasing skepticism

concerning nuclear energy will not change our stance on this matter … today’s meeting is a good time to reiterate Poland’s determination when it comes to its nuclear program,” Mr Tusk said at a press conference after the meeting.

Mr Tusk met with Finance Minister Jacek Rostowski and Foreign Minister Rados∏aw Sikorski last Wednesday and will continue meeting with ministers this week.

The PO-led government is not panicking just yet

Brent crude oil prices spiked last week after Iran decided to stop exporting oil to France and the UK. The move came after the EU had attempted to pressure Iran into clarifying whether its nuclear program has a military dimension, by announcing it would implement a ban on imports of Iranian oil from July 1.

Oil prices were also affected by news that a team of experts from the International Atomic Energy Agency (IAEA) had returned from Iran last week without being able to ascertain the “possible military dimensions” of Iran’s nuclear program.

Iran’s preemptive move to cut supplies to both France and the UK has been viewed by some as a warning that in the future it could also halt exports to European countries that are more reliant on its oil, such as Greece, Italy, Portugal and Spain.

But Iran is also dependent on Europe, the second biggest buyer of its oil. Oil exports account for over half of Iran’s national budget and 80 percent of its total exports.

However, Grzegorz Maziak, a fuel market analyst at industry website e-petrol.pl, said that he doesn’t expect Iran to ban exports to these

countries. “It will be hard to find other costumers. I don’t think Iran can cover for losses in Europe,” he said.

If it does happen though, Poles should not be too worried about a sudden rise in fuel prices, he said.

“We are all looking closely at the situation in Iran, but I don’t think it will have a big impact on the Polish market unless they close the Strait of Hormuz,” through which 20 percent of the world’s oil is Alice Trudelle shipped.

COURTESY OF NASA

The meetings are ostensibly being held to assess the achievements of each ministry

The country’s nuclear program and its potential ban of oil exports to the EU is worrying investors

Twenty percent of the world’s oil is shipped through the Strait of Hormuz

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NEWS

www.wbj.pl

FEBRUARY 27 – MARCH 4, 2012

Personal wealth

Jan Kulczyk retains richest Pole ranking Poland’s wealthiest man is still Jan Kulczyk, according to Forbes’ 2012 ranking of the country’s 100 richest people.

Mr Kulczyk, who topped the list last year, has seen his fortune grow by 20.3 percent over the last 12 months, to z∏.8.9 billion. Mr Kulczyk’s companies invest both in Poland and overseas, in sectors that include infrastructure, property and brewing.

For the second year in a row, second place went to the owner

of Cyfrowy Polsat and Polkomtel, Zygmunt Solorz-˚ak, whose fortune was estimated at z∏.8.5 billion, an increase of 18 percent on last year.

Micha∏ So∏owow jumped one place to third. He is worth an estimated z∏.5.5 billion, due in large part to a successful year for his chemical company Synthos.

Leszek Czarnecki, who was in third place last year, slipped to fourth as the value of his fortune dropped 27.1 percent y/y to z∏.4.3 billion. The businessman holds a significant amount of his wealth in financial-sector shares, whose prices have taken DI, GP a hit of late.

The usual suspects Top 10 wealthiest Poles in 2012 Position

COURTESY OF WIKIMEDIA COMMONS

His fortune has increased by 20.3 percent over the last 12 months, Forbes says

Jan Kulczyk is worth z∏.8.9 billion

Name

Fortune (z∏.billions)

1.

Jan Kulczyk

8.9

2.

Zygmunt Solorz-˚ak

8.5

3.

Micha∏ So∏owow

5.5

4.

Leszek Czarnecki

4.3

5.

Anna Woêniak-Starak, Jerzy Starak

3.25

6.

Roman Karkosik

2.4

7.

Tadeusz Chmiel

1.75

8.

Bogus∏aw Cupia∏

1.65

9.

Jaros∏aw Pawluk

1.60

10.

Dariusz Mi∏ek

1.55

Source: Forbes' ranking of the 100 richest Poles

Property restitution

Religious groups oppose abolition of restitution committees The government is now engaging in public consultations on the matter Following opposition to its idea of transferring all outstanding restitution cases involving confiscated property to the court system, the Polish government has now decided to consult with the relevant groups before pushing forward.

Under a proposed legal

change, restitution cases involving property taken from Jews and members of some non-Catholic church groups during the periods of Nazi and communist rule in Poland would be dealt with by the court system.

At present the matter is dealt with by committees that were established under an agreement 15 years ago.

These are comprised of both claimants and government representatives.

According to Israeli newspaper Haaretz, some Jewish groups oppose the proposal on the grounds that it would require claimants to provide proof of official land records, many of which were lost during and after World War II.

In consultation Although the government was at one point expected to have drawn up a draft of the proposed law by the end of March, it has apparently soft-

ened its stance following meetings with representatives of the affected religious groups. It now hopes to reach a compromise with opponents of the proposal.

Poland’s Minister of Administration and Digitization, the government body that deals with property restitution, said it is conducting an analysis into the effectiveness of the committees in consultation with representatives of religious and church

groups.

“And only in this context are we thinking about ending the work of the commissions and transferring outstanding cases to the courts,” ministry spokesperson Artur Kozio∏ek told WBJ. Many of the restitution cases left outstanding involve difficult and complicated matters, which the ministry says “contribute to the extension of regulatory proceedings,” hence the proposal to

have them dealt with by the courts.

The government is planning to release further information on the matter in March.

Public property committees have reportedly returned around 2,000 properties that were confiscated during and after World War II, with ownership claims on close to 3,000 properties still under dispute.

Gareth Price

Highways

Church Fund to be liquidated

Poland’s roads authority announces new tolls

The fund that finances insurance for the clergy could be dissolved without the church’s agreement Poland is preparing a draft law on the liquidation of the Church Fund, which could potentially be passed without the full agreement of the Catholic Church.

The Church Fund, which finances insurance for the clergy, was set up in the early 1950s as a form of state repayment for the 100,000 acres of land and property which had been confiscated from the church since the end of World War II. In early February, the Polish Ministry of Administration and Digitization announced that it planned to replace the fund with a more modern system for financing clergy insurance.

The changes would be made in consultation with the church and legal representatives, government spokesperson Pawe∏ GraÊ told Polish

radio station Polskie Radio last week.

“This project will be ready soon and will be subjected to normal consultation. All parties will be able to have a say about it,” he added.

However, when asked whether the government would liquidate the fund without the approval of the Episcopate, the collective body of bishops, Mr GraÊ said only that “the opinions both from the government’s side as well as the church’s side are divided on this issue.”

Deputy Minister of Administration and Digitization, Piotr Ko∏odziejczyk, went further by confirming that the dismantling of the Church Fund could take place without the agreement of the church.

Such a move would almost certainly lead to a worsening of relations between the church and the government. Some 97 percent of Poles identify themselves as Catholic, and the church still plays a major role in the country’s political dialogue.

Izabela Depczyk

Toll fees on the A4 highway between Katowice and Wroc∏aw will begin in June Poland’s roads authority, GDDKiA, announced last week that toll payments will begin on a section of the A4 highway between Katowice and Wroc∏aw from June 1.

Drivers of motorcycles and cars will subsequently have to pay 10 and 20 groszy per kilometer respectively for using this section of the highway.

Given the fact that the distance between Katowice and Wroc∏aw is almost 200 kilometers, a one-way trip could cost motorists close to z∏.40, depending on the size of the vehicle.

Other highways that will also have tolls once completed include the A1 between Toruƒ and ¸ódê and the A2 between ¸ódê and Warsaw.

Explaining why the tolls are being implemented now, Urszula Nelken, a press offi-

cer for GDDKiA, said, “Tolls can only begin once a highway fulfills the necessary statutory conditions, which among other things includes gas stations and service centers. The decision to introduce toll fees rests with the Minister of Transport.”

Other highway sections in Poland are managed by private concerns, which charge their own toll rates. Such sections include the Katowice-Kraków section of the A4, the A1 highway from Gdaƒsk to Toruƒ and the A2 highway from Germany’s border to Konin.

“Rates among these sections of paid highways have been decided upon by the private concerns. Prices will be different because the concessions were signed in different years under different conditions,” Ms Nelken said.

Stalexport Autostrada Ma∏opolska, which manages the A4 highway section between Katowice and Kraków, is planning to increase tolls on its sec-

COURTESY OF WIKIMEDIA COMMONS

Religion and politics

A one-way trip between Katowice and Wroc∏aw could cost motorists z∏.40 tion of highway from March 1.

Drivers of cars and motorcycles will have to pay z∏.9 at each toll booth, z∏.1 more than they pay currently.

A single trip on the section will therefore now cost drivers z∏.18, since there are two toll stations, one at each end of the

section, said Rafa∏ Czechowski, a PR representative for Stalexport.

The toll fees for freight trucks on the above-mentioned section will remain the same, at z∏.49 for a one-way trip.

Ella Pa∏ka

BUSINESS

FEBRUARY 27 – MARCH 4, 2012

Metals

www.wbj.pl

5

IT

Quadra shareholders approve Asseco launches bid to buy rival KGHM’s z∏.9.5 billion takeover

COURTESY OF KGHM

Shareholders of Canadian miner Quadra FNX Mining have approved a friendly takeover offer by Polish copper miner KGHM, paving the way for the completion of the biggest foreign acquisition ever made by a Polish company.

At a meeting held last Monday, the takeover was approved by 78.58 percent of Quadra’s shareholders, signifi-

cantly more than the required two-thirds majority.

The transaction, which involves an all-cash offer price of CAD15 a share, values the company at CAD3 billion (z∏.9.5 billion). It has already received approval from the Supreme Court of British Columbia, and now just requires the Canadian Minister of Industry’s green light before it can be finalized.

Some analysts had speculated that a request by Poland’s Treasury Ministry for information on the deal could see the transaction blocked. It was suggested that the Treasury, which holds a controlling stake in KGHM, wanted to

The takeover is set to increase KGHM’s copper production by 50 percent

put a stop to the takeover in order to ensure larger dividend payments for the state in the future.

However, when contacted

by WBJ, the Treasury denied that it would stand in the way of the deal.

“The request for information won’t affect the transaction,” said Treasury spokesperson Magdalena Kobos. “There was lots of speculation, but a request for information on some details [of a major deal] is normal from a large shareholder,” she added.

First announced in December, the Quadra deal will give KGHM control of the Canadian miner’s Sierra Gorda project in Chile, one of the world’s largest copper molybdenum projects. KGHM will also become the owner of other assets in Canada, Chile and the United States. The company says the new holdings will allow it to increase production of mined copper by around 25 percent this year, and eventually by nearly 50 percent.

“This transaction has strategic importance for KGHM, one which ensures future profits, builds shareholder value and ensures us a competitive position on the global market,” KGHM president Herbert Wirth said in a statement.

REPORTER

The deal should be finalized before mid-March, pending approval from the Canadian Minister of Industry

Asseco president Adam Góral says the takeover would benefit Sygnity’s staff

Sygnity shareholders say the z∏.21-per-share bid is too low Poland’s largest IT firm, Asseco Poland, announced its intention to purchase a 100 percent stake in rival company Sygnity last week. Asseco is offering z∏.21 a share, valuing the company at z∏.250 million.

Asseco says that by acquiring Sygnity it will strengthen its position in banking, public administration, energy and services for entrepreneurs.

The company also hopes that the move will make it compet-

Gareth Price

Gas prices

PGNiG takes Gazprom to arbitration in Stockholm Following a dispute over what it says are unfair gas prices, Polish gas giant PGNiG filed a lawsuit against Gazprom at an arbitration tribunal in Stockholm last week over a longterm gas contract it struck with the Russian government-controlled firm back in 1996.

“The subject matter of the proceedings is a change of the current price terms of gas supplies to Poland in the longterm contract between Gazprom and PGNiG,” said Joanna Zakrzewska, a spokesperson for PGNiG. She confirmed that arbitrators have already been designated in the case.

“PGNiG would like not only to decrease gas prices, but also to modify the pricing mechanism in the contract,” she added.

The prices PGNiG currently pays Gazprom for gas are

tied to oil prices, which are at an eight-month high.

Poland imports about two thirds of the gas it uses, and 90 percent of those imports come from Russia. PGNiG pays around 20 percent more for its gas from Gazprom than other consumers in Western Europe, according to daily Parkiet.

Like other gas consumers in Europe, PGNiG wants the prices it pays to be based on spot-market gas prices.

If PGNiG wins its case against Gazprom it could save as much as $500 million per

year. According to analysts, the firm currently pays over $500 per 1,000 cubic meters for the gas it receives from Gazprom.

“The price that Poland now gets … is absolutely not acceptable because it’s not a market price,” Treasury Minister Mikolaj Budzanowski said last Thursday. “This is one of the key tasks ahead of PGNiG for now.”

Also last Thursday, Poland’s energy regulator, URE, said that it may allow PGNiG to raise gas prices Ella Pa∏ka from March.

COURTESY OF PGNIG

Fed up with paying high gas prices, PGNiG files suit

PGNiG pays around 20 percent more for Gazprom’s gas than Western European companies

itive against international IT firms.

“I am convinced that this transaction would have a positive influence on the professional development of the staff at Sygnity. The exchange of know-how as well as the inclusion of international business divisions at Asseco Group would provide longterm perspectives for the team at Sygnity,” said Adam Góral, the president of Asseco Poland.

Sygnity’s management said in a statement that Asseco’s offer shows that Sygnity’s posi-

tion in the market is growing and that the company’s expansion strategy, initiated over six months ago, was the right move.

However, several Sygnity shareholders have publicly said that the price offered by Asseco is too low. “I don’t think this is a price at which the tender will succeed, considering that Sygnity is a company that after difficult years has turned the corner,” Piotr Rzeêniczak, board member at Investment fund Legg Mason, Sygnity’s biggest shareholder, told Reuters.

Ella Pa∏ka

6

BUSINESS

www.wbj.pl

FEBRUARY 27 – MARCH 4, 2012

Insurance takeovers

PZU to set up z∏.13 bln venture capital fund Poland’s largest insurer, PZU, plans to join with private equity firms this year to establish a z∏.13 billion investment vehicle for the purpose of taking over foreign companies, chief executive Andrzej Klesyk told Rzeczpospolita last week.

“We’ll look into insurers, but only in Europe, not in Brazil for example, to where some are encouraging me strongly. We don’t want to buy a bank either,” Mr Klesyk said.

He added that PZU would contribute some z∏.6-7 billion to the fund, thereby giving it a 40-45 percent stake. The fund’s provisional

name is PZU International.

Private equity partners would hold the same percentage, with the European Bank for Reconstruction and Development or the World Bank’s International Finance Corporation acting as minority shareholders. PZU is looking to involve large international institutions such as these in order to give the investment vehicle more clout if it decides to expand in eastern Europe, into countries like Russia or Belarus.

“Decision makers in those countries wouldn’t hesitate to take PZU for a ride if we acted on our own,” Mr

Klesyk said. The new fund would eventually be listed on the Warsaw Stock Exchange, he added.

Iza Rokicka, an analyst at DI BRE Bank, said PZU should be able to generate the funds needed to establish the investment vehicle.

“According to my calculations, PZU had excess capital of z∏.3 billion at the end of Q3 2011 and with upcoming quarterly earnings and maybe even loans, it should be able to cover the z∏.6-7 billion,” she said.

“The fund is just a functional structure that is planned to carry out M&A in the future. It won’t have an immediate impact on the bottom line,” she added.

COURTESY OF NEXTWEBMEDIA.PL

In collaboration with private equity funds, the insurer is hoping to snap up European insurance companies

Tomasz Lis

Media

HuffPost-inspired website launches in Poland Prominent journalist Tomasz Lis is heading the new blog-focused internet newspaper

Gareth Price

Last Wednesday the Polish online community welcomed its first Huffington Postinspired news website, content-aggregator and blog site, NaTemat.pl.

Firm NextWeb Media is behind the idea, with Polish journalist Tomasz Lis at the helm of the editorial team.

“The main inspiration for the project team was the American Huffington Post.

The success of Arianna Huffington inspired us to create something similar in our country. Our plan is to engage hundreds of bloggers to initiate debates on the Poles’ most current problems,” Mr Lis said in a statement.

NaTemat.pl will feature blogs from over 150 bloggers, including prominent figures from the worlds of politics,

media, culture, sports and fashion.

Among them are former Polish President Aleksander KwaÊniewski, former PM Leszek Miller, leader of the Palikot’s Movement party Janusz Palikot, film director Agnieszka Holland, crosscountry skier Justyna Kowalczyk, fashion designer Gosia Baczyƒska, heavy-metal singer Nergal and talk-show host Kuba Wojewódzki.

Alice Trudelle

PZU’s new capital fund will be worth z∏.13 billion

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

Acquisition of copyright by employer Pursuant to a recent decision of the Supreme Court (resolution of February 14, 2012, case file no. III UZP 4/11), remuneration for work created by an employee and acquired by his or her employer under copyright law constitutes a basis for pension contribution payments and disability fund premiums, as well as accident and health insurance premiums. This is provided that the acquired work was created as a result of the duties the person was employed to perform.

Prolongation of perpetual usufructuary On February 16, 2012, Poland’s Supreme Court decided that an agreement for prolonging perpetual usufructuary may also be concluded after the period for which the usufructuary had been established.

This is provided the request for the agreement was made within the period defined in Article 236 § 2 of the Civil

Code. This covers the five years before the expiry of the period which had been stipulated in the agreement that established the perpetual usufructuary in question.

Draft legislation on seed production A new draft act on seed production, which was presented by the president and which is to implement several EU provisions into Polish law, is scheduled for its first reading on February 28. The draft act applies to the reporting and registration of varieties of crops, and includes provisions concerning production and evaluation of agricultural plant seeds and vegetables, and material for nurseries, as well as provisions related to the reproduction and planting of vegetables and decorative plants. Furthermore, the draft act is to guarantee the government and parliament the time they need to prepare and implement a new comprehensive law relating to genetically modified organisms. ●

BROUGHT TO YOU BY PETER NIELSEN & PARTNERS LAW OFFICE

Retail sales and unemployment both up in January It's unclear whether the rise in sales is a positive signal, while the higher unemployment rate was seasonal Poland’s retail sales in January rose by 14.3 percent y/y – the second-highest gain for three and a half years. The growth was higher than the 13.3 percent increase expected by the market.

BZ WBK analyst were muted in their reaction to the data, which was announced by Poland’s Central Statistical Office (GUS) last week. “The acceleration to double-digit [growth of retail sales] in January was mainly due to a base effect,” the bank’s analysts said in a research comment.

“In January 2011, just after the implementation of the VAT tax hike, retail sales were very low as Poles decided to purchase more in advance, at the end of 2010, in order to avoid higher prices. Consequently, these data should not be perceived as a signal of revival of consumer demand.”

The BZ WBK analysts pointed out that the monthly change was nearly 25 percent

below the 2005-2010 average.

Economists at Nordea bank were more upbeat however, calling the figures a “positive surprise.”

“Even taking into account this [base] effect the underlying trend remains decent, suggesting Polish consumers hold quite strong,” they wrote.

Unemployment up On the other side of the coin, unemployment in Poland rose to 13.2 percent, GUS said, slightly higher than the 13.1 percent expected by the market. The phenomenon is typical

in winter months as industries such as construction slow down.

“However, both the unemployment rate and number of job-seekers are higher than in January 2011 (increases by 0.1 percentage point and 0.8 percent, respectively),” BZ WBK analysts pointed out. In their view, this confirms there is a negative trend prevailing in the labor market.

But Nordea analysts were more optimistic on this count as well, saying the registered unemployment rate rose clearly in January, mostly due to seasonal factors. Andrew Kureth

Unemployment ups and downs Unemployment rate in Poland, the last 24 months 14

13

12

11

10 Feb rua Ma ry rch Ap ril Ma y Jun e Jul A y Se ugu pte st m Oc ber No tobe ve r De mbe cem r Jan ber Feb uary rua Ma ry rch Ap ril Ma y Jun e Jul A y Se ugu pte st m Oc ber No tobe ve r De mbe cem r Jan ber ua ry

COURTESY OF PZU

Macroeconomics

2010

2011

2012

Source: Central Statistical Office

CHEMICAL INDUSTRY IN FOCUS

FEBRUARY 27 – MARCH 4, 2012

www.wbj.pl

Chemical industry

A challenging environment Wojciech Lubiewa-Wiele˝yƒski, president of the board of the Polish Chamber of Chemical Industry (PIPC) talks to WBJ about the opportunities and obstacles facing the sector coal as a fuel for power stations and as a raw material in the chemical industry, you have high CO2 emissions.

Around 50 percent of the chemical industry’s total emissions are actually indirect emissions from its energy consumption. We argue that we should not compare our total CO2 emissions with those of countries like France, where most of the energy comes from nuclear power. It’s simply not possible to change the source of our country’s’ energy production within two or three years.

Another problem might be the Polish government’s policy regarding compensation for buying CO2 emission permits.

Germany decided that its industry will receive total compensation for indirect emissions, but I am afraid the Polish Finance Ministry will make some obstacles, as they would like to improve the budget situation. Then it will be a problem not only for the chemical industry, but also for all branches of Polish industry. It is also possible for the government to put at least 50 percent of the money they receive from emission taxes into investments, but I am afraid that the Polish Finance Ministry won’t be willing to do that either.

Meanwhile, emerging countries like China and India

European Union climate package Poland, along with each of the other EU member states, is required to reduce CO2 emissions by 20 percent by 2020 compared to 1990 levels. The European Commission has sought to adopt an even more ambitious CO2 reduction target of 30 percent by 2020. Poland has led the charge to block this initiative.

Another part of the EU

climate package is the Emission Trading System (ETS), under which countries receive a certain amount of CO2 allowances, which they can distribute to their industry under set terms. Beginning in 2013 the number of emission allowances granted for free each year to the industry will be reduced. ●

REACH Registration, Evaluation, Authorization and Restriction of Chemicals (REACH) is a European Union regulation addressing the production and use of chemical substances and their potential impacts on human health and the environment. It entered into force in June 1, 2007, with a phased implementation over several years.

According to the European Commission, REACH’s primary aim is to “ensure a high

level of protection of human health and the environment,” by placing the burden of proof on industry.

Chemical firms have to compile data regarding the safe use of chemicals, which in turn is made publicly available through a central database held at the European Chemicals Agency. REACH also provides rules for phasing out the most dangerous chemicals and finding substitutes for them. ●

Azoty to invest z∏.460 million in 2012 WSE-listed chemical company Azoty Tarnów plans to invest z∏.460 million in development projects this year, reported Parkiet. The investment funds will come from Azoty Tarnów’s own sources and loans.

Some z∏.200 million has been earmarked for the firm’s parent company, while around z∏.170 million will be invested in Police, one of its subsidiaries, and z∏.90 million in ZAK, another subsidiary.

EU to fine car producers

COURTESY OF PIPC

Alice Trudelle: You recently said that the European Union’s climate and energy policy is the single biggest challenge to the Polish chemical industry. Can you explain?

Wojciech Lubiewa-Wiele˝yƒski: Before Poland joined the European Union in 2004, we were obliged to meet all EU environmental requirements.

It was a huge effort for many industries, including chemical, glass, cement, and others. Just a few years later, in 2007, the Registration, Evaluation, Authorization and Restriction of Chemicals (REACH) EU regulation was passed (see box). It’s a huge challenge, most of all for SMEs. They will only start feeling the impact of REACH in 2012, and I am quite sure that many SMEs will shut down. It’s simply not possible for small companies to have one person dedicated to dealing with REACH, as is required. I think it will be a big problem not just for Poland but also for the whole of Europe.

Today our main problem regarding EU environmental legislation concerns energy (see box). Of course we are for protecting people’s health and protecting the environment.

But we would like to have the same competitiveness as elsewhere.

Unfortunately, when – as is the case in Poland – you use

7

Mr Lubiewa-Wiele˝yƒski feels the EU needs to reassess its environmental policies regarding Poland don’t have environmental rules that create additional costs to their industry. They also have much cheaper manpower and much lower energy costs. They invest a lot in coal without any problems. All our efforts regarding emissions reduction in Europe will pale compared to global CO2 emissions. And if we don’t take into account the impact of the EU’s climate and energy legislation, production will move to other regions.

According to figures from the Economy Ministry, exports in the chemical sector grew by 21 percent in the first three quarters of 2011, well above the average growth rate for Polish exports in general.

Would you agree that the Polish chemical industry is doing rather well?

Yes, I would agree. However, we need to remember that we have high exports but also high imports, and a sizable negative trade balance. On the positive side, that’s why the Polish chemical industry wasn’t overly affected by the crisis.

But the negative trade balance in the chemical sector accounts for as much as 40 per-

cent of Poland’s total trade deficit. That’s why we need to reorient the production structure of the Polish chemical industry. Currently we export mostly basic chemicals, while we import transformed chemical products with much higher added value. We need to invest.

The first step should be to invest in Poland’s petrochemical sector, so that we meet the needs of our own chemical industry. This is a task for Polish giant PKN Orlen, which in the past has been much more focused on fuel production.

But they are finding out that petrochemicals are very profitable, and I think investment is on its way.

The second step is to invest in production of higher addedvalue products. For example, we don’t produce acrylics in Poland, which are the basis for absorbents. There is a huge market for diapers, which will grow as the European population ages. We also don’t produce polycarbonate, which is used to produce CDs for example, and is also a huge market.

After two failed attempts since 2007, the Treasury Ministry

announced in 2011 that it was relaunching the privatization of the biggest players in the chemical industry. Do you think the government has a better chance of success this time?

Currently even the largest Polish chemical companies are not big enough compared to their European counterparts. The consolidation process should be accelerated so the largest chemical companies more than double their turnovers, let’s say from z∏.2 billion to z∏.5 billion.

Otherwise it will be difficult to be competitive in the global market.

Up until now, we have not found a foreign strategic investor, and I think it will also be difficult this time around, taking into account the challenges posed by the EU climate and energy policy and the high energy costs in Poland.

The Treasury Ministry promised to privatize chemical companies within one year. I think it’s possible, but we must first create proper conditions for investors. This means liberalizing the energy market and sending a clear message regarding compensation for CO2 emission taxes. ●

Up for grabs Chemical companies the Treasury wants to privatize in 2012, their activity and the percentage of shares up for sale Company Ciech

Activity

Treasury share up for sale

Europe's No. 2 soda-ash producer

36.68%

Fertilizers, plastics, oxo-alcohols maker

86.28%

Zak∏ady Azotowe Pu∏awy

Poland's largest fertilizer maker and producer of melamine and caprolactam

50.12%

Zak∏ady Azotowe Tarnów

Fertilizer, caprolactam and nylon 6 maker

52.15%

Poland's second-largest fertilizer producer and titanium dioxide (TiO2) producer

59.23%

Zak∏ady Azotowe K´dzierzyn

Zak∏ady Chemiczne Police

Source: Treasury Ministry, companies

Several car makers will need to ensure their fleets are more carbonefficient in order to meet 2012 carbon dioxide emissions targets, according to the European Environment Agency. New mandatory limits on carbon dioxide emissions were introduced by EU legislation for car makers, with progressive fines for those who do not comply.

The penalties would mean sports-car maker Bugatti could face a charge of €40,000 per vehicle, according to the International Business Times.

Poland sells z∏.2.52 billion PGE stake The Polish Treasury sold a 7% stake in largest power utility PGE last week, pocketing z∏.2.52 billion. A total of 131 million shares were sold at z∏.19.20 per share. The transaction was the biggest state sale since the z∏.5.4 billion IPO of coal producer JSW in June 2011.

Poland moves to adopt mining tax law Poland’s lower house of parliament, the Sejm, is scheduled to discuss the government’s controversial proposal for a mining tax this Tuesday.

The tax, which would primarily affect copper giant KGHM, is set to bring in over z∏.2 billion to the budget annually from 2013. According to Prime Minister Donald Tusk, the tax is likely to be adopted swiftly. The government wants to implement the tax on April 1. ●

8

INTERVIEW

www.wbj.pl

FEBRUARY 27 – MARCH 4, 2012

The European Union

An insider’s view Ewa Boniecka: For many years you have been directly involved in the work of the European Union. As someone working on the inside, how do you view the present crisis?

Danuta Hübner: As with everyone who understands how important European integration is in our fast-changing world, I think the EU has no other path for development other than the one that comes with staying together.

Even the biggest members of the EU cannot act alone in the face of new challenges, but have to move towards deeper integration. The present crisis, which has a multidimensional character and which has troubled the European Union for about three years now, fortunately also provides a very strong incentive for further action, especially in the euro zone.

The crisis shows that the European Union’s construction is not complete. For instance, when we created instruments for a common monetary policy in the euro zone, we neglected to create the other side of that policy – a common fiscal policy. Thus, we now have to work very hard on the completion of that process. This is the pressing challenge we face.

Yet many now say that the construction of these special instruments for the euro zone

is leading to the creation of a “two-speed Europe,” with the euro zone at the center and the other members pushed to the margins. What would be your response to this claim?

At the moment the “twospeed” Europe has more or less become a reality. This has resulted from the need to deepen the process of integration in the euro zone. Eurozone members need much deeper coordination of their economic policies. And it is important for all of us that the euro zone functions well, because the fate of the EU as a whole is inescapably linked with what happens in the euro zone.

But the challenge for all of us – and Poland is aware of this – is to find a formula that ensures this quick path to eurozone integration does not lead to deeper divisions within the European Union. Moreover, we need to ensure that it will not lead to a weakening of the whole process of EU integration, because if that happened Poland would get fewer advantages than we could expect from the single market. So at the same time as we deal with the reality of euro-zone integration, we have to do everything in our power – and Poland is doing so – to keep the European Union united, avoiding a two-speed Europe whose two parts are moving in different directions.

COURTESY OF DANUTA HÜBNER

Danuta Hübner, a member of the European Parliament and the chair of its Committee on Regional Development, gives WBJ an inside look at the EU and of the role played by Polish diplomacy

The euro-zone crisis shows that the European Union’s construction is incomplete, says Ms Hübner Do you think that Polish diplomacy has achieved most of what it was able to do to secure the interests of Poland and other EU member states that aren’t in the euro zone?

Poland was one of the first members to clearly state its sensitivity to issues related to [European] division. It was Poland as president of the European Council that, in the context of the fiscal treaty, took the whole burden on its own shoulders of the struggle to prevent the potential danger of EU division.

So looking at it from this point of view, I think that it is a great Polish success that this intergovernmental agreement is open to all members of the EU and that we have gained

the right to participate in discussions of euro-zone members. This fact in itself is a step toward further integration. Of course, members of the euro

“Even the biggest EU members cannot act alone” zone will, amongst themselves, deal with specific matters that concern them individually and as a group, and they have the right to do so.

However, the most important thing is that Poland played a key role in preventing the institutional break-up of

the EU, and no one can take that away.

In conducting its European policy can Poland rely on its current alliances, and on support from other Central and Eastern European members, or are other political arrangements now emerging in the EU? Looking for alliances is not only a wish and choice on Poland’s part, it is not only up to us – it is also a question of whether other EU members from our region need our leadership. There is no easy response to that sensitive question.

There are moments when there are such expectations towards Poland. I also believe

that in the Visegrad Group our role is quite significant.

We try to advance the interests of the members from our part of Europe, but nobody should expect that our interests will always be identical. Some of the new EU members are already in the euro zone, some are not. That affects our view of things.

Now, our close partner in the EU remains Germany and I’d like to point out Germany’s decisive role in supporting Poland’s entry to the European Union in 2004. Germany now has its own challenges linked to its political and economic responsibilities in the EU, and obviously it has its own interests in the EU. All of the member states have [their own interests] and this is not a bad thing, as long as it does not work against the EU’s strength and unity. But there are some non-negotiables in Germany’s policy – luckily these include a constant drive to unify Europe, support for linking its Western and Eastern parts and a search for balance between the interests of big countries and the rest of the EU. The wisdom of Polish European policy is that we value Germany’s leading role in maintaining unity in EU policy. And the fact that it was German Chancellor Angela Merkel who was open and responsive to the arguments of Prime Minister Donald Tusk as he sought to prevent a deeper division in the EU, shows that we can count on Germany’s support in our European policy.

INTERVIEW

FEBRUARY 27 – MARCH 4, 2012

How do you assess the role of the European Parliament in maintaining the unity of the European Union?

The role of the European Parliament has greatly increased since the Lisbon Treaty was signed. All big political families in the EP, like the European People’s Party, which is the one I belong to along with my colleagues from the Civic Platform party, show in words, but also deeds, strong support for European unity.

We succeeded in getting the support of prominent parliamentarians for ensuring that countries from outside the euro zone participate in euro-zone summits. I think that apart from their sometimes loud anti-European rhetoric, even euroskeptic parliamentarians understand the value of the European Union.

Thus, looking from the inside I can say that a majority of MEPs support EU unity, even while their perception of the European Union’s interests may differ significantly.

In the context of the popular protests in Poland and in some other European countries, do you think the Anti-Counterfeiting Trade Agreement deal will be rejected by the European Parliament?

ACTA is a multilateral international agreement and the European Union is only one part of it. The problem of securing intellectual property rights on the one hand and freedom of access to the internet on the other have to be solved.

Already in October 2010, the European Parliament adopted a resolution that pointed out problems with negotiating ACTA and demanded more transparency in that process.

So now Parliament will open a discussion on ACTA and will decide whether or not it should be ratified. My impression is that there will not be a majority who support the ratification of ACTA. But if the document is rejected in its present form, negotiations could be opened anew in the future because the problem of potential conflicts stemming from the necessity of protecting intellectual property and at the same time not limiting freedom on the internet, is one of a few vital issues that have to be properly legislated globally. And it has to take into account the interests of all stakeholders.

What do you see as being the most important aims of Poland’s strategy in the EU? In the political field it is the effort to deepen EU unity, to strengthen the integration process and to develop community policies that will allow us to fully benefit from integration and globalization, and to keep the union together.

The most immediate challenge concerns the negotia-

tions over the EU’s budget for 2014-2020. Poland has benefited greatly from EU funds both before its accession and in the first eight years of its membership. We need them to speed up our modernization. As the chair of the Committee on Regional Development in the European Parliament, I am supervising the negotiations concerning regulations for the years 2014-2020. In this context I would like to underline the importance of the achievements of the Polish Presidency of the EU, which has made our country a meaningful player at the Community level.

I regret that our being absorbed by domestic politics sometimes makes us blind to this and to [the potential of using] the capital of trust we gained during the presidency to advance those matters which are important for us in the European game.

Yet one of the most important aims of the Polish Presidency – the promotion of an Eastern policy – was not realized …

There were reasons for this which we could not overcome and this was fully understood in the European Union. The fact that the EU was overloaded by the financial crisis coupled with a cumbersome situation in some of our eastern neighbors did not allow us to move further. But Poland remains a great promoter of the Eastern Partnership and I am sure that better moments will come for this policy.

There is a widespread understanding of the importance of building a zone of democracy and economic wellbeing in that part of Europe. I hope that in the near future we will accomplish negotiations with Ukraine. Poland has a special role in being a “hub” – a central point for developing relations between Ukrainian and Belarusian societies and Europe.

You helped establish the Spinelli Group, a body for promoting the ideas of European federalism. Do you think that at present there is a good climate for promoting federalism in Europe?

There are various attitudes and understandings concerning the idea of federalism. I see it as a precondition of a common European [position] in the global competition of values. The importance of defining a common European interest is growing, because the world around us is increasingly unpredictable and the European Union, which has 7 percent of the world’s population, could become a tiny and marginal part of it if we do not build on our common ability.

If we are not able to create strong EU institutions that can be trusted to such an extent that nations would be willing to give to them some parts of their sovereignty, the future of

the European project could be rather gloomy.

I think that now, when the European Union is in crisis and beset by inner turmoil, we should look even more carefully at the idea of federalism.

In a time of crisis, egoistic national interests tend to prevail and therefore there is an even greater necessity to look for ideas that help us strike a better balance between the interests of individual states and the European democratic institutions.

Thus I believe that the political climate is right for the Spinelli Group to promote federalism in the context of European integration.

Elections to the European Parliament will be held in less than three years’ time. How should Poland prepare for them?

It seems to me that we in Poland do not realize quite how important the European Parliament is. It is now an institution which is becoming more and more of a political decision-maker, dealing, as equal co-legislator, with legislative issues like ACTA that are crucial to Poland.

Some members that have been in the EU for longer realize the importance of the EP. For example, I observe with awe how many of my British colleagues in Parliament are experts on financial matters.

And, by the way, many of them are women. You can see how well the interests of the City [of London] are represented.

There is a growing understanding in most countries that it is in their interests to send people of high quality and who have good qualifications in various fields to represent them in the European Parliament In Poland we have not until now had such a common-sense approach. I think that all political parties should realize now that they need to put at the top of their lists experts, people with a high standing and the ability to function in the international arena. These people should be able to shape the European reality and react to changes that take place in the EU, as well as present arguments in a convincing way.

There is still time to take such an approach in selecting candidates for the next European Parliament, if we want to have meaningful influence in Brussels and Strasbourg.

And what are your personal plans for the future?

I think that everybody should do the things in their lives that give them a sense of purpose.

Most of my professional life has been connected with multidimensional work for building a stronger Europe. I see this as essential for Poland’s interests, both in the present and the future. I will continue that work in the years to come. ●

www.wbj.pl

9

10

OPINION & ANALYSIS

www.wbj.pl

FEBRUARY 27 – MARCH 4, 2012

Poland’s flame of hope Corey Johnson & Tim Boersma

In

late September, Polish national oil and gas company PGNiG lit a symbolically important flare of natural gas near Lubocino in northern Poland, which it called a “flame of hope.” The hope is that the layer of subterranean shale rock holds the country’s energy future. Last year the US Energy Information Administration ascribed an enormous reserve of 5.3 trillion cubic meters of natural gas with mining potential to gas shale deposits in Poland. This is almost twice as much as the proven reserves of Norway and the Netherlands combined. The news elevated an already blossoming interest to a top-shelf policy priority in the country.

While European member states such as France and recently Bulgaria opted not to participate for the time being in the global polonaise around shale gas extraction, Poland seems by and large to have embraced this opportunity. But a closer look indicates that the enthusiasm about this resource and ambitious predictions about when the gas will actually be commercially available may be premature.

Commercial exploitation Amid the haste to develop this source of gas it bears keeping in mind that there are still serious logistical, environmental, and political

barriers to shale extraction in Poland. For those banking on widespread commercial development of shale, it is important to note that up to now only a handful of wells have been drilled in Poland and cores are still being analyzed to determine whether commercial exploitation will eventually be possible.

If we assume for the moment that shale gas will flow in Poland, other challenges arise. Poland is a coal country. Electricity generation relies over 95 percent on coal, while about 50 percent of Polish households are not connected to gas distribution networks. The bulk of domestic gas consumption takes place in the industrial southwest of the country, but the shale gas reserves are spread from the north to the southeast. In the absence of significant infrastructure to connect the two, it is difficult to imagine a significant domestic market for natural gas. Although new legislation is in the making to accelerate energy infrastructure development, it will take at least six to seven years to realize new gas infrastructure projects. In terms of export, Poland has recently opened interconnectors with Germany and the Czech Republic, and is planning the construction of interconnectors with Denmark, Lithuania and Slovakia. The capacities of these projects do not match the ambitions for supposedly enor-

mous shale gas reserves. The LNG terminal in ÂwinoujÊcie, which is to start operating mid 2014, does not significantly alter this picture.

Polish decision makers are aware of the scale of necessary investments.

Yet the envisaged solutions – hitting up Brussels and gas consumers to pay for these infrastructure projects – present additional hurdles. Significant increases in gas prices to fund the required investments might erode the public acceptance of shale gas development at an early stage. In addition, Polish government officials expect that European decision makers will soon agree on recently proposed guidelines for trans-European energy infrastructure. Yet given the controversy of this topic in Brussels, and the fact that the proposed regulation would mark the first structural European role in energy infrastructure in history, this scenario may well prove overly optimistic.

Geopolitical intrigue If the internal and EU dynamics were not enough, some Polish decision makers seem to like backing into the dead end of geopolitical intrigue. To be fair, the longue durée of historical memory in this part of Europe is rooted in war, subjugation, hegemony, and mistrust. The reality is, however, that Russian companies have been stable suppli-

ers of both natural gas and crude oil for several decades.

Polish suspicion of Russia, but also Germany and France, with regard to shale gas development in Europe, is misplaced and counterproductive. Antagonism in Brussels to shale gas is also not as great as perceived. Conspiracy theories about well-financed campaigns to undermine shale vastly overestimate the ability of the Gazproms of the world to effect change on the ground. In the short term Polish policymakers should worry less about the designs of their neighbors and focus more on pressuring Brussels to implement existing legislation to promote market liberalization and build in environmental safeguards.

Then there is the issue of the environmental consequences of hydraulic fracturing. The scientific jury on this is still out. There are significant concerns in the United States and Canada about negative impacts on ground water, surface water, seismicity, and climate change. It is too early to establish whether the European institutions will adopt the view that existing EU legislation contains sufficient safeguards to prevent possible negative environmental consequences of shale gas development. Therefore it is incumbent upon authorities in Poland to take all environmental concerns extremely seriously and act as a

responsible front-runner within the EU. This has not been the case to date.

Time will tell whether Poland will in fact develop its allegedly enormous reserves of shale gas. Even if large-scale exploitation becomes a reality, there are still serious environmental, infrastructural, and economic hurdles to be overcome. We believe the Polish government would serve Polish interests best if they make their shale gas ambitions part of a “grand strategy” towards a low carbon economy, while acknowledging and addressing the environmental concerns that are in fact linked to shale gas exploitation.

In addition, implementation of existing European environmental and market legislation pertinent to shale gas seems to be a condition sine qua non. Finally, enormous investments are required to prepare Poland for large-scale usage of natural gas, whether for domestic consumption or export. It appears that the hurdles to shale gas development in Poland lie mainly in geologic realities and in the halls of government of Warsaw. ● Corey Johnson and Tim Boersma are junior fellows at the Transatlantic Academy in Washington, DC. Copyright: German Marshall Fund of the United states, 2012. gmfus.org

Who should lead the World Bank?

Devesh Kapur and Arvind Subramanian

R

obert Zoellick will depart in June as president of the World Bank, once again raising the thorny issue of leadership of the Bretton Woods twins (the Bank and the International Monetary Fund). At their birth, John Maynard Keynes memorably warned that if these institutions did not get good leaders they would “fall into an eternal slumber, never to waken or be heard of again in the courts and markets of Mankind.”

Getting a good leader, of course, requires a careful selection process.

Today, however, the world is stuck with just the opposite: a dreadfully antiquated process whereby the United States and Europe, despite their economic travails, retain a monopoly on the leadership of the Bank and the IMF, respectively.

Fighting the status quo There is grudging agreement that this system should change. But the forces perpetuating the status quo – European and American resistance to change and emerging-market countries’ passivity – remain powerful, as the choice last year of Christine Lagarde to lead the IMF illustrated. Election-year politics in the US will strengthen these forces further, with President Barack Obama’s administration unlikely to relinquish a symbol of global power, which would invite opponents’

charges of weak leadership.

But, in some ways, the easy part is to state the case for the obvious: the World Bank requires a new selection process that will enable it to choose the most qualified person, regardless of nationality. The more difficult part is to identify the qualifications needed to run the World Bank at a time when its role must be adapted to far-reaching global changes.

For the first time in a long time, a significant number of poor countries are catching up to the advanced economies, and the list of development successes is lengthening. That means that more of the poorest countries will therefore graduate out of the need for concessional lending from the World Bank.

The World Bank’s non-concessional lending agency, the International Bank for Reconstruction and Development, may well retain its rationale, especially because threefourths of the world’s poor now reside in middle-income countries.

But easier access to private finance will force a re-evaluation of the IBRD’s methods and the magnitude of its lending. For example, countries may want the World Bank to continue to provide neutral advice and set standards on procurement and quality, but without the high transaction costs that have

become the hallmark of World Bank finance.

Global challenges At the same time, many of the development challenges in the foreseeable future – climate change, low agricultural productivity, growing water scarcity – are increasingly global in nature. Looking ahead, the World Bank will have to shift from lending to governments towards financing the provision of global public goods.

A more successful developing world also poses an intellectual challenge to the World Bank as a custodian of research and policy thinking in the field of development economics. The World Bank, which has drawn predominantly upon US-based centers of learning, can no longer ply a single model or dictate from a universal template.

To be fair, the World Bank has embraced the message of eclecticism, but a new leader will have to go further, paying greater attention to the specific contexts and demands of individual borrowers and learning from a wider set of successful development experiences.

The World Bank’s major shareholders also face a stark choice. If they believe that the bank has a meaningful future worth supporting, it is the rapidly growing emerg-

ing-market countries, not the indebted West, that can provide the resources (this means China, of course, but even Brazil and India have growing aid programs). In return, they will rightly demand a greater voice in running the World Bank, especially if its focus shifts towards global public goods.

But if the status quo powers are unwilling to cede control, the system of official international financing established by Bretton Woods will become increasingly fragmented. Countries like China will be reinforced in their belief that going it alone is the best option, with adverse consequences for multilateralism.

Dramatic shifts These dramatic shifts and daunting challenges mean that the World Bank’s next president will have to be someone whose primary task is to initiate and sustain change while commanding support and legitimacy across its membership. He or she will also require a demonstrated capacity for political leadership and a core conviction that the Bank needs a new vision and path forward.

It is imperative that the selection process be altered to broaden the search for candidates who are sensitive to changing realities and possess key qualifications. This would

not mean ruling out a deserving American candidate such as Hillary Clinton, but it would also mean looking carefully at others, such as former Presidents Luiz Inácio Lula da Silva of Brazil and Ernesto Zedillo of Mexico; Ngozi OkonjoIweala, the economics czarina in Nigeria; Mo Ibrahim, an exemplar of African business success; Nandan Nilekani, the Indian software mogul-turned-development-official; and Andrew Sheng of Malaysia, a distinguished former financial regulator.

The current selection procedure is losing legitimacy in a changing world, and it carries greater risks of a bad outcome: an unsuitable candidate. The consequences of retaining it might not be as dramatic as Mr Keynes prophesied, but there is a real possibility that the World Bank will ossify into an institution whose increasingly impoverished G7 donors dispense progressively smaller sums of money in the same questionable ways to a shrinking number of supplicants. ● Devesh Kapur is co-author of the official history of the World Bank.

Arvind Subramanian is a senior fellow jointly at the Peterson Institute for International Economics and the Center for Global Development.

Copyright: Project Syndicate, 2012. project-syndicate.org

OPINION & ANALYSIS

FEBRUARY 27 – MARCH 4, 2012

www.wbj.pl

11

Time for Poland to speak up Editorial

As

presidential elections approach in neighboring Russia it seems Poland, like most of the rest of the world, has quietly resigned itself to dealing with Vladimir Putin as head of the Russian state for the next several years.

There is not much doubt about the outcome of the March 4 election and indeed, Mr Putin has never

“Poland needs to speak up for democracy, and not only when it’s convenient.” really let go of power since he was first elected president in 2000.

While paying lip service to reforms, current President Dmitry Medvedev has actually strengthened Mr Putin’s hand since 2008, not least through a decree extending presidential terms from four to six years. As a result, Mr Putin could theoretically sit as president for the next 12 years, making him

ter opposition parties. But in the age of the internet, discontent can spread at breakneck speed. Poland learned this recently, when the government was forced to make an abrupt aboutface on ACTA. Moscow may learn a similar lesson soon.

But it’s high time Poland remembered that it was not by picking the lesser evil that it sparked a revolution that led to the fall of the Iron Curtain. The birthplace of Solidarity should make the difficult choice of standing by those who are now courageously demanding a more democratic Russia.

Some argue that Moscow has been cooperative of late. It has recognized historical wrongs inflicted on Poland, embarked on a reset of relations with Washington and worked towards increased cooperation with Europe. But this cooperation has been superficial and selfserving at best. As long as playing along with the West is seen by the Kremlin mainly in terms of keeping Mr Putin and his cronies in power, the partnership between Russia and the West will remain tenuous.

There are already plenty of cracks in the Kremlin’s facade of partner-

the country’s longest-serving leader since Joseph Stalin.

Cracks appear That outcome, however, is far from certain. Parts of Russian society, including entrepreneurs, intellectuals, but most of all the youth, are no longer willing to accept stability at the cost of democratic liberties.

Representatives of the Russian middle class have taken to the streets by the thousands after parliamentary elections were rigged in December, filling Russian streets with the biggest protests since the fall of the Soviet Union. They are also voting with their money, since people with average incomes are thought to be largely responsible for capital flight to the tune of $38.3 billion in 2010, according to Russia’s central bank. Others are emigrating.

Most Russian citizens admit they do not feel protected by the law. In Moscow, the proportion of people voicing that view has reached an alarming 73 percent.

Currently, there is little they can do other than stage protests. Courts and police harass opposition figures, while state institutions refuse to regis-

ship with the West. Russia has used strong-arm tactics to reassert its regional dominance, and most recently it blocked a UN resolution supported by Europe and the US that would have urged the Syrian government to end the slaughter of its own citizens.

Tough choice But why should Poland bear the weight of standing up to Mr Putin while the rest of the West turns a blind eye? Certainly, the prospect is intimidating. Russia has shown it is more than willing to use economic means to squeeze Poland.

Poland might also be reluctant after supporting the Orange Revolution in Ukraine, which failed in its effort to usher in a more Western-style democracy there. So the path that the current government has chosen in its relations with Russia has its justifications. But it lacks both courage and vision.

One could argue that a country for which democratic transition has been so good has a duty to support its neighbors’ democratic aspirations.

But it’s also a question of strategy. If Poland wants a stronger voice on the

European and international scene, it needs to speak up for democracy, and not only when it’s convenient. The Arab Spring has shown that populations can put to shame an international community that has supported violent, corrupt regimes for the stake of stability.

Poland, meanwhile, has proved it is capable of grand gestures. Foreign Minister Rados∏aw Sikorski was the first EU foreign minister to visit wartorn Libya in 2011. And in an eloquent speech last November, he implored Germany to be more decisive in its leadership role in the EU. It is high time Poland used its diplomatic skill to speak up for those in Russia who are struggling for the same democratic freedoms that Poles enjoy.

Warsaw must therefore immediately show its support for those in Russia who want to follow the path that has so benefited Poland. History won’t wait for Poland to muster the courage. ● Warsaw Business Journal’s editorial board comprises editor-in-chief Andrew Kureth, co-managing editors Gareth Price and Alice Trudelle, and politics editor Remi Adekoya.

Movement toward political liberalization Jaros∏aw åwiek-Karpowicz in Russia

A

head of Russia’s presidential elections on Sunday, victory for Vladimir Putin seems a foregone conclusion. In polls conducted by state-run public opinion center VCIOM, Mr Putin receives 53 percent support and maintains a significant advantage over the other candidates, Gennady Zyuganov (11 percent), Vladimir Zhirinovsky (9 percent), Mikhail Prokhorov (6 percent) and Sergei Mironov (4 percent). If these figures hold on election day, Mr Putin’s public support will be significantly lower than in 2004, in his first reelection (71 percent), and in 2008, when his ally Dmitry Medvedev became president (70 percent). Moreover, if Mr Putin does not receive more than 50 percent, a second round

of voting will be held – something that hasn’t happened since 1996.

Indeed, Mr Putin’s high poll numbers in the run-up to Sunday’s elections do not mean he enjoys stable support among the majority of Russians.

After parliamentary elections on December 4, 2011, Russia’s largest cities saw massive anti-Kremlin protests after several examples of voter fraud were revealed. The demonstrations, unprecedented in post-Soviet Russia, mainly involved young people disenchanted with Mr Putin’s 12 years in power, during which Russia has become (even more) corrupt and quasi-authoritarian.

Russia’s youth feel cheated by Dmitry Medvedev, who promised that he would use his presidency to bring

Our thanks to Judith and Paul The editorial board of Warsaw Business Journal would like to take this opportunity to thank Judith Gliniecki of Wierzbowski Eversheds and Paul Fogo of Miller Canfield, W. Babicki, A. Che∏chowski & Partners for all of their work over the years in writing the Legal Eye column. The column, which is being discontinued in its weekly print format, will be replaced by a blog on WBJ.pl.

modernization to Russia. Mr Medvedev finally acquiesced to Mr Putin’s wishes and decided not to run again for president. Russians saw this announcement as a retreat from reform initiatives in order to safeguard the interests of the ruling elite.

The Kremlin seems unsure of how to handle the possibility of fraud during Sunday’s elections. It may fear a repeat of what happened after the parliamentary elections, when vote-rigging provoked the above-mentioned wave of demonstrations. However,

Putin’s biggest challenge Although the protests are by no means representative of all of Russian society, the increasing number of disgruntled citizens represents the most significant challenge to the current leadership.

So far the government has adopted a two-pronged strategy, which most likely will continue after the presidential election. On the one hand, the Kremlin is conducting a dialogue with the opposition: On February 20, President Medvedev invited opposition politicians to his residence in Gorki and promised to initiate liberalization of the political system.

On the other hand, the Kremlin is attempting to discredit the organizers of the anti-Putin protests and to interfere with the functioning of some independent newspapers, such as Novaya Gazeta, and radio stations, such as Ekho Moskvy.

“Without controlling the voting process, Mr Putin may not get over 50 percent of the votes” without administrative control over the voting process Mr Putin may not receive more than 50 percent of vote.

That would force a second round of voting, which would certainly strengthen the opposition.

Liberalize the system Mr Putin’s expected victory in the first or the second round of presidential elections is unlikely to limit Russians’ political activity, especially among the youth, who have been very passive over the past decade. But regardless of whether the protests continue after the

elections or not, a rising civic consciousness usually results in more critical and active behavior towards policies adopted by the authorities. For the Russian political and business elite this new situation requires solutions that will address society’s growing expectations.

The liberalization of the political system, which has become an important expectation of the Russian protesters, could stabilize the political situation in the country and support its economic development. For this reason, it is positive both for Russian society and its elite.

Poland and other EU countries should look to convince Russia’s leadership to open the country’s political system. This includes putting pressure on Vladimir Putin and others in power in Russia to honor commitments they made during the election campaign to liberalize the country’s politics. ● Jaros∏aw åwiek-Karpowicz is Eastern and South Eastern Europe Program Coordinator at the Polish Institue of International Affairs (PISM). pism.pl

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.

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COVER STORY

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Decision on Energa sale

by May The Polish government is awaiting a court ruling on whether to discard plans to sell utility Energa to PGE for z∏.7.5 billion. The transaction was opposed by the country’s competition watchdog. The ministry has indicated that if the May ruling is not in its favor, it will sell Energa to Enea, another statecontrolled utility. “It is worth waiting until then, but not longer,” Treasury Minister Miko∏aj Budzanowski told daily Gazeta Wyborcza. He had previously indicated that the decision on whether to scrap the sale to PGE would be made in Q1 of this year.

Domestic vodka sales drop Vodka sales in Poland fell for a second year in a row in 2011. The value of the sector shrunk by approximately 4% last year, with Poles spending some z∏.450 million less than a year earlier, reported Parkiet, citing data from market research company Nielsen. The sale of “pure vodka” fell 5%.

Leading Polish vodka manufacturers do not expect 2012 to see a significant recovery in demand. “Consumers do not see the opportunity to celebrate and have started to save, which translates into a decrease in consumption of alcohol,” Leszek Wiwa∏a, the president of the Polish Spirits Industry, told the newspaper.

Polish minimum wage growth high The minimum wage in Poland increased by 8.2% in 2011. According to a new report by Eurostat, this was one of the best results among all EU member states, with only two countries – Hungary (19.2%) and Bulgaria (12.5%) – seeing larger growth in the minimum wage.

However, Poland still belongs to the group of 11 EU countries which have the lowest minimum wages in the European Union, at between €100 and €400 a month, reported Rzeczpospolita. G

FEBRUARY 27 – MARCH 4, 2012

Polish-Russian relations

The return of Putin

Remi Adekoya

Vladimir Putin looks set to become president of Russia once again. But what does that mean for relations between Warsaw and Moscow?

Hardly anyone doubts that the upcoming March 4 presidential election in Russia will see current Prime Minister Vladimir Putin return to the most powerful office in the country.

On February 20, the staterun Russian Public Opinion Research Center (VCIOM), which has a history of accurately predicting election results in the country, forecast that Mr Putin would win the March poll in the first round. VCIOM expects Mr Putin to garner more than half of the vote (58.6 percent), thereby avoiding a potentially embarrassing runoff.

Mr Putin’s closest rival, Communist Party leader Gennady Zyuganov, is expected to receive just 14.8 percent support, according to the pollster.

And so it seems that those in Poland who invested hopes in current President Dmitry Medvedev, with his modernizing and mostly non-confrontational rhetoric, will have to get used to the fact that the more abrasive Mr Putin will now officially be running the show once again.

Since he first came into the political fore Mr Putin has talked a tough game, and that is unlikely to change. In a February article published in Russian government daily Rossiyskaya Gazeta, entitled “Being strong is a guarantee of Russia’s national security,” Mr Putin said Russia needs to upgrade its military, announcing plans for the government to spend about $770 billion over the next decade on purchasing ballistic missiles, combat aircraft, submarines and armored vehicles.

The specter of an increasingly militaristic Russia could understandably raise alarm in Poland, but does Warsaw really have anything to fear from a Putin-led Kremlin? And what does a Putin presidency mean

SHUTTERSTOCK

12

For all his perceived toughness, Polish-Russian relations have improved with Mr Putin in power for Polish-Russian relations?

Healing old wounds …

According to the analysts that spoke with WBJ, a deviation from the status quo is unlikely.

“I don’t expect any changes in Polish-Russian relations if Mr Putin is elected president. Let’s not forget he was the one who took charge of improving ties with Poland while being prime minister,” said Marcin Kaczmarski, an analyst at Polish think tank the Centre for

power.”

Indeed it was Mr Putin who, in April 2010, invited Polish Prime Minister Donald Tusk to attend the 70th anniversary of the 1940 Katyn massacre, in which over 20,000 Polish nationals were executed by the Soviet secret police.

In 1990, Mikhail Gorbachev became the first Soviet leader to admit to the Politiburo’s complicity in the Katyn killings. But Vladimir Putin was the first Russian

“The present government in Poland has a pragmatic approach towards Russia” Eastern Studies (OSW).

Wojciech BorodziczSmoliƒski from the Center for International Relations (CSM), another Polish think tank, was even more sanguine about the idea of another Putin presidency, saying, “The biggest steps forward in PolishRussian relations have taken place while [Putin] was in

leader who publicly marked the anniversary of the massacre, declaring that “the truth purifies.”

Before the anniversary event, Polish director Andrzej Wajda’s eponymous film about Katyn was shown on Russian state television for the first time. According to many Russia-watchers, the film was

broadcast thanks to intervention from Mr Putin himself.

The move was significant, since the film clearly shows Soviet collaboration with the Nazis, casting a shadow over a longstanding historical narrative in Russia that portrays Soviet soldiers as having saved Europe from Nazi Germany during World War II.

… and newer ones Three days after the Putin-Tusk meeting, disaster struck when a plane carrying then-President Lech Kaczyƒski and 95 others to a different Katyn memorial ceremony crashed in Smolensk, Russia.

The initial Russian reaction to the tragedy was one of compassion and empathy, serving to bring the two nations closer.

But during the official Russian investigation into the crash Polish investigators were denied access to key evidence.

This rekindled Polish mistrust, fueling conspiracy theories in Poland about the circumstances of the April 10, 2010 catastrophe.

Jaros∏aw Kaczyƒski, the twin brother of the late president and leader of the biggest opposition party Law and Justice (PiS), along with many of his supporters, accused the Tusk-led government of sacrificing the truth about the catastrophe for fear of irking the Kremlin.

The final Russian report laid the blame squarely on the Polish side while absolving the Russians, angering many Poles in the process. But both sides have tried to move on since then and most analysts agree that relations are now much improved.

“Polish-Russian relations are currently in a good state.

The present government in Poland has a pragmatic approach towards Russia, so it has pushed aside worries about rule of law and democracy in order to focus on how Poland can profit from the relationship,” said Mr BorodziczSmoliƒski.

“Also, a few years ago, Russian leaders realized that their very bad relations with

COVER STORY

FEBRUARY 27 – MARCH 4, 2012

Poland were an obstacle to their ties with the EU. Moscow then undertook to remove this obstacle by improving relations with Warsaw through many gestures,” he added.

“Now that Russia has achieved this aim, I don’t expect them to pay much attention to Poland.”

Domestic disturbance Mr Borodzicz-Smoliƒski did say, however, that there is potential for Polish-Russian relations to be negatively affected by the post-election fallout in Russia.

Since the December 4, 2011 parliamentary elections in Russia, which saw United Rus-

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Medvedev’s legacy

sia (Mr Putin’s party) cling to its majority in the lower house of parliament despite receiving less than half of the popular vote, protests have regularly rocked the streets of Moscow and other major cities.

“If there are mass protests which are brutally crushed on March 4, then our policy

COURTESY OF KPRM

According to Jadwiga Rogo˝a, a specialist on Russia at the Centre for Eastern Studies (OSW), the de-Stalinization of Russia’s policies on history – the best example of which were its gestures toward Poland regarding the Katyn massacre – was in fact the only genuine revolution Russia underwent during the presidency of Dmitry Medvedev.

In her extensive study “In Putin’s shadow,” published in November 2011, Ms Rogo˝a describes the presidency of Mr Medvedev in 2008 as an “experiment carried out by the Russian ruling elite,” in which the real power remained in the hands of Vladimir Putin.

The Smolensk tragedy brought Russia and Poland closer together, if only for a short while

13

towards Russia will very much be linked with the response from the EU and the rest of the world,” said Mr BorodziczSmoliƒski. “If there is no strong response from those corners then I seriously doubt that Poland will risk a strong response on its own,” he said.

Both the EU and Russia have many “internal headaches” and neither is focusing on the other right now, he added.

Despite the potential for trouble, both sides therefore seem likely to continue their pragmatic approach to Polish-

While Mr Medvedev criticized the system of government formed by Vladimir Putin – its cumbersome bureaucracy, systemic corruption, and seemingly arbitrary decisions – this very system was actually reinforced under his presidency, Ms Rogo˝a’s study found. The modernization policy espoused by Mr Medvedev – best illustrated by his visit to Silicon Valley in 2010 – was meant to attract foreign investments and new technologies to Russia, and is set to continue under a Putinled presidency, according to Ms Rogo˝a.

But another, unintended legacy of Mr Medvedev’s presidency was the increased political activity among the Russian middle class. Business owners, intellectuals, professionals and managers have begun showing their disappointment that Mr Medvedev’s rhetoric of modernization did not translate into more freedom in the public sphere, increased democratic control over the government and fewer obstacles to entrepreneurship, according to the study. G

Russian relations. Mr Putin looks set to continue to aim for a civilized working relationship with Poland in order to avoid any distractions to Russia-EU relations, which are decidedly more important for him.

Prime Minister Tusk’s government, meanwhile, will likely continue to try and foster the best possible relations it can with Russia, remaining silent about those Russian policies it disagrees with, as long as they don’t have a direct, negative affect on Poland.

“We might not like the way

Russia conducts its policies but we don’t have any instruments at our disposal to be able to change Russia and honestly speaking we don’t even know how and why we should change it,” said Mr Borodzicz-Smoliƒski.

“Also, we have to remember that Russia is a big country which is weak today, but it still has memories of the era when it was strong and continues to act as if it were strong,” he said.

And that will certainly not change under President Putin. G

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SwedeCenter’s Brama Portowa office project in Szczecin has been topped out

Work is underway on a new law that will regulate reverse mortgages in Poland 16

17

LOKALE IMMOBILIA

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

The BSJP Brockhuis Jurczak Prusak law firm has leased 600 sqm of office space in LHI’s Nowy Dom Jab∏kowskich project in central Warsaw. The company, which will take up the whole third storey in the development, is expected to move into the property in May. The law firm has signed a lease deal for 10 years, and is the second company to have leased space in Nowy Dom Jab∏kowskich. Telecom operator Polkomtel earlier also took up space in the development.

Completed in September last year, the facility offers approximately 3,200 sqm of GLA.

New tenants at Poleczki Business Park BPO services provider Itella Information and electric installations provider PKE Polska are the latest tenants in the Poleczki Business Park office project in Warsaw.

The companies have respectively leased 385 sqm and 700 sqm in the first and second phase of the investment. Also HDS Polska’s Empik Cafe and 1 Minute, a convenience store, will take up retailservice space in the first phase of Poleczki Business Park. ●

In this issue Capital Park plans . . . . . . . . . . .15 Brama Portowa topped out . . .16 Green Horizon leasing . . . . . . .16 Magnolia Park expansion . . . .16 Bogatynia Retail Park . . . . . . . .16 Property-related stocks . . . . . .16 Reverse mortgages . . . . . . . . . .17 New residential schemes . . . .17

FEB 27 – MAR 4, 2012, LI 17/08

Commercial property

Capital Park to launch Eurocentrum Office Complex in Ochota district The company is also finishing preparatory work on its ArtNorblin multifunction scheme in the capital Developer Capital Park will launch construction on its Eurocentrum Office Complex investment in Warsaw’s Ochota district in Q2 of this year.

The scheme is scheduled to be completed in the second quarter of 2014.

The company, which bought the plot for the scheme in 2007, plans to develop an office project comprising almost 70,000 sqm of leasable space on the land.

The previous owner of the land planned a complex of several smaller office buildings for the plot, of which just one was completed. Capital Park has re-commercialized the existing facility and designed a new concept for the development of the rest of the property.

Eurocentrum Office Complex will be a 15-floor building offering over 67,500 sqm of office and more than 2,400 sqm of retail-service space.

The development will feature sustainable solutions and will, according to the developer, be the largest LEED CS Goldcertified office scheme in Poland.

“We are in the process of selecting a general contractor for the investment. The planned date of the launch of construction is Q2 2012,” said Kinga Nowakowska, head of asset management, sales and marketing at Capital Park. She added that construction on the project is expected to take two years.

Commercialization of space in Eurocentrum Office Complex is already underway, with Imtech having already leased

COURTESY OF M+G

Second tenant in Warsaw’s NDJ

•

The Eurocentrum Office Complex project will deliver nearly 70,000 sqm of leasable space more than 7,000 sqm in the development. That transaction was one of the largest in the Warsaw market in 2011.

“We are in talks with many tenants whose names we cannot yet reveal as long as the deals are not finalized,” Ms Nowakowska said. She added that Capital Park had recently secured a preliminary financing decision from one of the largest banks in Poland.

ArtNorblin progress Meanwhile, preparatory work is proceeding on Capital Park’s other major planned investment in Warsaw. The company’s ArtNorblin project in the Wola district has already received a planning decision from the City Hall, and the developer wants to apply for a

“The development is set to be the largest LEED CS Gold-certified office scheme in Poland” building permit by the end of this year.

The investment will be built on a plot that formerly housed the Norblin factory. It aims to both revitalize the post-industrial area by renovating the plant’s buildings and machinery and develop modern structures with commercial space.

Work is still underway on devising a conservation program for the historical buildings that are located on the land. “Construction is scheduled to start in 2013 and finish in 2015,” Ms Nowakowska

said.

ArtNorblin will comprise a total of over 61,000 sqm of space, including approximately 22,000 sqm of retail-service and cultural space and 39,000 sqm of office space. The investment will include a museum dedicated to the history of the Norblin factory.

According to Ms Nowakowska, the development is the most difficult investment in the history of her firm. She said that challenges included conservation issues, complex construction solutions, the

combination of several functions in one project and integration of the scheme with the city.

Established in 2003, Capital Park is mostly engaged in the development of office and high-street retail space. The company’s property portfolio currently comprises 72 assets totaling almost 309,000 sqm of completed and planned space, more than 80 percent of which is located in Warsaw.

According to Emmerson Evaluation data, Capital Park’s property portfolio was valued at z∏.1.12 billion as of December 31, 2010 and is expected to be worth z∏.3.23 billion after the ongoing and planned projects are completed.

Adam Zdrodowski

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

16

LOKALE IMMOBILIA – REAL ESTATE

www.wbj.pl

Office

Skanska fills up space in Green Horizon project in ¸ódê

Brama Portowa topped out

A symbolic topping-out ceremony was held on February 22 at the construction site of developer SwedeCenter’s Brama Portowa office complex in Szczecin, Zachodniopomorskie voivodship, to commemorate completion of the project’s shell.

Construction on the Brama Portowa investment, which is being built by Hochtief Polska, launched in

December 2010 and is scheduled to finish in autumn this year. The contractor is now carrying out elevation and finishing work. Work on the installations inside the complex is also underway.

Located in downtown Szczecin, at Bramy Portowej square, the Brama Portowa development will comprise two buildings with a total of more than 12,500 sqm of space. The investment will feature green building solutions and is expected to be LEED-certified upon completion.

Brama Portowa I will offer

over 4,500 sqm of office and retail space spread over six storeys, as well as 22 parking spaces in an underground parking lot. Brama Portowa II will feature seven storeys with a total of 8,000 sqm and will also include parking space for 36 cars.

Part of the Inter IKEA group, SwedeCenter has been present in the Polish market since the early 1990s. The developer is currently involved in commercial projects in Poland including Mera Hotel & Spa Sopot and Business Garden Warszawa.

COURTESY OF QUESTIA

SwedeCenter’s office development in downtown Szczecin will be completed in the fall

FEBRUARY 27 – MARCH 4, 2012

Adam Zdrodowski

The Brama Portowa complex will deliver a total of more than 12,500 sqm of space

Property-related stocks Security

Closing price on Feb 23

% change (week)

52-week low

52-week high

% change (year)

Total shares

Market value (z∏. mln)

BUDIMEX

88.35

3.09

64.00

109.20

94.60

25,530,098

2,255.58

CELTIC

17.44

-2.24

15.55

22.70

21.00

34,068,252

594.15

DOMDEV

41.15

-1.74

23.50

50.80

45.90

24,560,222

1,010.65

ECHO

4.02

1.26

3.05

5.55

4.63

420,000,000

1,688.40

ELBUDOWA

114.90

7.89

87.00

168.00

158.00

4,747,608

545.50

ENERGOPLD

2.17

-5.65

1.81

4.10

3.79

70,972,001

154.01

ERBUD

22.47

8.03

14.65

48.98

48.00

12,644,169

284.11

GANT

8.98

-2.29

5.85

16.44

15.99

20,499,953

184.09

GTC

8.59

-8.71

7.91

21.79

21.08

219,372,990

1,884.41

HBPOLSKA

1.25

-4.58

0.70

2.79

2.61

210,558,445

263.20

JWCONSTR

8.20

6.36

4.36

15.50

14.44

54,073,280

443.40

LCCORP

1.19

0.00

0.85

1.68

1.69

447,558,311

532.59

MARVIPOL

9.73

0.31

7.22

9.95

9.24

36,923,400

359.26

MIRBUD

2.18

-12.80

1.94

4.74

4.40

75,000,000

163.50

MOSTALWAR

19.06

-14.18

15.40

49.00

47.01

20,000,000

381.20

MOSTALZAB

1.65

-5.71

1.07

3.00

2.87

149,130,538

246.07

ORCOGROUP

16.83

-5.45

14.00

40.00

32.55

17,053,866

287.02

PBG

67.30

-14.38

56.05

204.90

195.50

14,295,000

962.05

PLAZACNTR

2.84

3.65

1.80

5.15

4.00

297,174,515

843.98

POLAQUA

7.50

-3.35

4.53

19.60

19.49

27,500,100

206.25

POLIMEXMS

1.85

-7.50

1.23

3.76

3.45

521,154,076

964.14

POLNORD

19.06

5.01

11.03

33.55

30.98

23,798,439

453.60

RANKPROGR

14.00

3.86

8.60

14.15

10.18

37,145,050

520.03

ROBYG

1.39

1.46

1.04

2.13

1.86

257,390,000

357.77

RONSON

0.98

1.03

0.77

1.58

1.41

272,360,000

266.91

TRAKCJA

1.39

3.73

0.65

3.72

3.61

232,105,480

322.63

ULMA

64.00

3.23

57.00

88.00

83.30

5,255,632

336.36

UNIBEP

6.05

4.49

4.47

8.99

8.93

33,927,184

205.26

WARIMPEX

4.41

-2.00

2.95

10.89

10.75

54,000,000

238.14

ZUE

8.19

0.49

5.07

14.05

14.00

22,000,000

180.18

The office area in the first phase of developer Skanska Property Poland’s Green Horizon complex in ¸ódê is currently 97 percent leased out after Infosys BPO Poland increased its take-up in the development to 15,000 sqm.

By virtue of a deal brokered by Cushman & Wakefield, the tenant leased an additional 2,300 sqm in the first phase of the Green Horizon development, whose tenants will also include Skanska, the general contractor of the

facility.

“We are not ruling out the possibility that in the near future we will again increase the office space leased by our company,” Krystian Bestry, head of European delivery at Infosys BPO Europe, said in a statement. He added that this will probably not be the last contract for office space signed by the firm in the ¸ódê market.

Construction on the first phase of Green Horizon launched in the second quar-

ter of last year and is scheduled to finish in Q4 2012. This phase of the investment will deliver 19,000 sqm of space.

Meanwhile the whole complex is expected to comprise 33,000 sqm.

Designed by the Medusa Group architectural studio, the Green Horizon project is being built according to the principles of sustainable development and will be the first LEED-certified office scheme in ¸ódê.

Adam Zdrodowski

Second phase of Magnolia Park’s expansion completed A 10,200-sqm Castorama DIY store has opened at the Magnolia Park shopping center in Wroc∏aw, Lower Silesia voivodship, marking completion of the second phase of the mall’s expansion.

“We are very pleased with the Castorama DIY store joining the family of tenants at Magnolia Park, and also with the timely completion of another stage of our extension project,” said Paul Kusmierz, principal of Master Management Group, the company that manages the mall.

The process of expanding Magnolia Park, which is owned by Blackstone Real Estate Group, commenced in March 2011. Its first phase, which involved the development of an additional 869 sqm for the H&M clothing brand,

COURTESY OF MADE IN PR

COURTESY OF ADVANCED PUBLIC RELATIONS

The first building in the Green Horizon complex is currently 97 percent leased out

was completed in October last year.

“Our ambition is to deliver the best choice of brands and an unmatched shopping experience to customers, which is why we decided to carry out an additional development phase, planned to commence at the end of 2012,” Mr Kusmierz

said.

Magnolia Park is the largest shopping center in Lower Silesia, with its current GLA amounting to almost 77,600 sqm. The mall features over 230 tenants, including the only 5D movie theater in Wroc∏aw.

Adam Zdrodowski

Bogatynia Retail Park to open in November A new retail project called Bogatynia Retail Park will open in the Lower Silesian town of Bogatynia by the end of the year. The facility will be built by Rafael Management, a subsidiary of Warsaw Stock Exchange-listed developer Gant Development.

Construction on the devel-

opment, which will be located between Bogatynia’s ul.

Daszyƒskiego and ul. Spó∏dzielcza, near the existing Tesco hypermarket and Media Expert store, launched in January and is scheduled to finish in November. Wroc∏aw-based Intakus is its general contractor.

Bogatynia Retail Park will

offer more than 6,000 sqm of leasable space and will be the first retail scheme of its kind in Bogatynia. AXI IMMO is responsible for the project’s commercialization.

Eighty percent of the space in the scheme has already been leased or reserved.

Adam Zdrodowski

FEBRUARY 27 – MARCH 4, 2012

LOKALE IMMOBILIA – REAL ESTATE

Reverse mortgages

Polish property market gears up for reverse mortgages

Izabela Depczyk

Polish homeowners will be able to take out reverse mortgages following the planned introduction this spring of a law currently being prepared by the Economy Ministry.

At present, there are only limited options available for Polish homeowners who want to earn an income from their home while still being able to live on the property. Several companies in Poland currently offer lifetime annuity services, which, like reverse mortgages, afford homeowners this possibility.

“The way a lifetime annuity works is the homeowner exchanges ownership of his or her home with a bank, which in turn pays him or her a lifelong annuity, while he or she maintains their right to reside in the home until they pass away,” said Marcin Krasoƒ, an analyst at Open Finance.

A reverse mortgage, meanwhile, allows the homeowner to borrow money from a bank against the value of their home, with no repayment of the mortgage principle or interest required until the home is sold or the borrower dies.

Key differences Reverse mortgages and lifetime annuities may have some fundamental similarities, but there are also several key differences, Mr Krasoƒ said.

One difference is the amount that home owners can earn from either a reverse mortgage or a lifelong annuity.

“With lifelong annuity a 65year-old woman with an apartment worth z∏.400,000 would get between z∏.500 and z∏.600 per month and a 65-year-old man z∏.700 to z∏.800 per month … with a reverse mortgage this woman could get up to z∏.700 and this man up to z∏.1,100,” said Bartosz Turek, a real estate market analyst at Home Broker.

Mr Turek explained that the reason women earn less in both cases is that, on average, they live longer than men.

Another difference between a reverse mortgage and a lifelong annuity concerns the moment when ownership of the home is passed to the bank.

“With a lifelong annuity the ownership of the estate is transferred from the homeowner to the bank the moment the contract is signed … when it comes to reverse mortgages the ownership of the home is transferred 12 months from the death of the homeowner, giving the rest of the family a chance to retain the home if they pay for all the credit taken out by the homeowner,” Mr Turek said.

He said that from the point of view of both of these differences, the reverse mortgage seems like a safer solution.

He added, however, that a reverse mortgage does have one key downside. While with

Reverse mortgages give retired people a way to use their homes to supplement their pensions a lifelong annuity contract, the annuity is paid regularly until the death of the homeowner, a reverse mortgage contract only ensures payment for a certain amount of time agreed to in the original contract.

Regulating reverse mortgages Some in the industry are skeptical about the Economy Ministry’s plan to change the law governing the reversemortgage market.

Maria Schicht, president of Familia, a mortgage fund, said that the ministry’s plan to fuse the laws governing reverse mortgages and lifelong annuities is not a good one.

“The two should be separated. In other EU member states, where these offers

Echo Investment gets funds for Poznaƒ project Developer Echo Investment has obtained z∏.29.9 million in bank financing from Pekao for the development of the next phase of the company’s Ma∏e Naramowice residential investment in Poznaƒ.

The “Pod Klonami” phase of the development will comprise 145 apartments in urban villas, as well as 35 twofloor terraced houses with garages.

have been on the market for years, they are regulated by two separate legal acts,” Ms Schicht said.

Ms Schicht believes that the reverse mortgage market has potential for development, since many elderly people in Poland receive pensions that barely suffice to cover their monthly expenditures. A large num-

ber of these elderly people, however, own their own homes, giving them a chance to earn money through reverse mortgages.

“It is a niche market but one with great potential. In countries were reverse mortgages have been around for a while, the number of contracts signed is large,” Ms Schicht said. ●

Developer Bouygues Immobilier Polska has launched sales of apartments in the second phase of its Carré Arte multifamily residential complex in Warsaw’s Wola district. On sale are 69 units scheduled to be completed in Q1 2014.

The newly launched apartments are sized from 25-63 sqm and priced at an average of approximately z∏.7,200 per sqm. ●

DAILY EXECUTIVE DIGEST

Residential

WSE-listed developers launch new housing projects in Warsaw Dom Development and ROBYG are both selling new units in their phased schemes in the Polish capital Two of the largest Warsaw Stock Exchange-listed residential developers, Dom Development and ROBYG, have recently launched construction on new phases of their ongoing multifamily housing investments in the Polish capital.

Dom Development is now building and selling apartments in the second phase of its Derby 14 project in Warsaw’s Bia∏o∏´ka district. The new offer comprises 154 units with the whole Derby 14 scheme expected to comprise four phases with a total of almost 700 homes.

Dom Development launched construction on its Derby investment in 2001 and

17

New Carré Arte units on sale

SHUTTERSTOCK

The Ministry of Economy is planning to change the law governing the market

www.wbj.pl

has to date turned over more than 4,000 apartments within the development. Units in the Derby 11, Derby 13, Derby 14 and Derby 20 schemes are currently on offer.

For its part, ROBYG has launched sales of apartments in the fourth phase of its City Apartments development in the ˚oliborz district. The phase will comprise 215 units which are scheduled to be completed in Q4 2013.

The whole City Apartments investment will be built in six phases. ROBYG is currently finishing work on the second phase of the estate and is also building phase three, whose completion is sched-

uled for the first quarter of 2013.

According to a recent report by real estate advisory Home Broker, the beginning of the year saw a marked increase in the activity of residential developers in the Polish market. The number of completed units, for instance, went up in January by 15 percent y/y, the company noted in the study.

“The result corresponds with a trend that has been visible over the past few months,” Home Broker said. According to Central Statistical Office data, the number of units for which developers received building permits increased by 33.9 percent in January, while construction starts rose by 7.7 percent in the same month.

Adam Zdrodowski

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

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18

THE LIST

www.wbj.pl

FEBRUARY 27 – MARCH 4, 2012

Corporate Services

European Union Fund Consulting Companies Ranked by funds gained (2007-2013 programs) till December 31, 2011

www.bookoflists.pl

General classification Total amount of The amount of subsidies (z∏. mln) qualified projects for: public for: public administration / administration / SMEs / SMEs / large enterprises large enterprises

Selected clients

Total number of employees in Poland / Year founded in Poland

Ownership: Polish / Foreign

Top local executive / Title

46 22 17

WND

60 1990

Andrzej G∏owacki - 34%; Anna Szymaƒska - 5.7% None

Andrzej G∏owacki

94.0 2,399.0

2 20

PGNiG; Polskie LNG; Gaz-System; PSG; KHK

20 1989

Wies∏aw Samitowski - 70%; Artur Sadowski - 30% None

Wies∏aw Samitowski

Construction of car windows production plant; construction of innovative tire-production plant; POIG (1.4-4.1; 4.2; 4.4; 4.5.1; 6.1; 8.1); logistics center for clothing industry; POIÂ (1.1; 4.2; 4.6; 9.2; 9.4); POKL construction of innovative paper (8.1.1; 9.2); Inicjatywa JESSICA production plant; extention of innovative rail vehicles production plant

50.8 325.5 1,472.3

3 22 42

WND

WND 2005

Jaros∏aw Antosik - 25%; Rados∏aw Czarnecki - 25%; Micha∏ Gwizda - 25%; Andrzej Puncewicz - 25% None

Jaros∏aw Antosik; Rados∏aw Czarnecki; Micha∏ Gwizda; Andrzej Puncewicz

Implementation of innovative technology for production highly reactive sorbents with use of POIG (1.4-4.1; 4.2; 4.3; 4.4; 4.5.1; electromagnetic activation; 4.5.2; 5.4.1; 6.1; 8.1); POIÂ (12.1); implementation of own technology for PROW (1.2.3); POKL (2.1.1; 6.1.1; the production of corrugated 8.1.1); RPO WD (1.1); RPO W¸ (3.2; cardboard with high hydro-resistance; 3.3; 3.5; 4.3; 5.1; 5.3); MRPO (2.1); of innovative system RPO WM (1.5); RPO WO (1.3.2; 1.4.1); implementation of clinker facades and fences RPO WP (1.4.2; 3.2); RPO WÂ (1.2.2; production; development of R&D 1.2.4); RPO WiM (1.1.9); WRPO (1.2); potential at J.S.Hamilton Poland lab; RPO WZ (1.1.2) implementation of new technology for antibacterial plastic film for food packaging production

11.7 1,311.0 191.6

3 349 13

WKG Trading; Budvar Centrum; CBR EPAR; Uniservice Katarzyna LeÊnikGajewska; Zak∏ady P∏ytek Ceramicznych Przysucha

17 2004

Tomasz Chmielecki - 33.3%; Tomasz K´cerski - 33.3%; Przemys∏aw Mazurek - 33.3% None

Tomasz Chmielecki; Tomasz Kecerski; Przemys∏aw Mazurek

1,322.7 65 (9)

“Innovative technologies of cancer drugs of particular therapeutic and social importance”; “Innovative POIG (1.1.2; 1.3.1; 1.3.2; 1.4-4.1; 2.1; technologies of cardiovascular drugs 2.2; 4.4; 5.4.1; 6.4); RPO WM (1.1; of particular therapeutic and social 7.2); POIÂ (12.1; 13.1); RPO WD (6.4); importance” “Ochota” Center of New MRPO (1.1; 1.2; 2.1; 6.2); RPO WÂ Technologies for University of (4.1); POKL (4.1.1; 4.1.2; 8.1.1) Warsaw; modernization of the Main Library of Military University of Technology; “Ma∏opolska Virtual Museums”

1,253.9 24.2 43.5

42 21 2

Warsaw University; Military University of Technology; Ma∏opolskie Voivodship; Metropolitan Curia of the Archdiocese of Katowice; Uzdrowisko Krynica˚egiestów; Seminary in Tarnów

15 2004

WND

PNO Consultants Sp. z o.o. ul. Ostrobramska 75C, 04-175 Warsaw 6 22 611-7320/22 611-7321 tomasz.hoffmann@pnocee.com www.pnocee.com

1,050.0 90 (6)

Design and implementation of innovative hobs and refrigerators; development of comprehensive POIG (1.4-4.1; 4.2; 4.4.; 4.5; 8.1); POIÂ technology for producing and (4.1-4.5; 7.4; 9.4; 10.3); POKL (2.2.1; assembling aicraft parts; construction 8.1); Marco Polo; RPO of wind turbine units; construction of intermodal container terminal with associated facilities

270.0 780.0

35 55

Electrolux; Airbus Military; Bolsius; Baumit; Vinderen

31 2005

None PNO CEE - 100%

Europejskie Centrum Przedsi´biorczoÊci Sp. z o.o. ul. Kopernika 34, 00-336 Warsaw 7 22 826-3700/22 826-3533 eucp@ecup.pl www.eucp.pl

809.3 34 (11)

RPO WM (1.5; 6.1; 6.2; 7.3); RPO WiM (1.1.7); MRPO (3.1); POIG (1.44.1; 4.4.; 8.2); POKL (2.1.1; 6.2); PO RPW (1.3); POIÂ (1.1)

“Start Your Own Business”; “General Motors Academy”; House of Senior Musician In Kàty; “Innovative production of synthetic fuel form bioethanol”; “Gostynin Heaters”

668.6 136.2 4.5

3 30 1

Deutsche Bank PBC; General Motors; Ekobenz; Fundacja Dom Muzyka Seniora; Jolanta Dorota Stefaniak; “D.S. Instytut”

10 2003

WND

PWB Sp. z o.o., Sp.k. ul. Garbary 56/12, 61-758 Poznaƒ 8 61 850-1151/61 850-1151 ext. 24 biuro@pwb.com.pl www.pwb.com.pl

807.0 163 (2)

POIÂ (4.6; 9.4; 10.3); WRPO (1.2); POIG (4.4; 4.5.1; 8.2); RPO W¸ (2.9); RPO WM (4.3); RPO WP (1.3.2); POKL

WND

9.0 702.9 95.1

3 156 4

WIKA Polska; Eolos Polska; GrantThornton; EWG Taczalin; University of Technology and Life Sciences in Bydgoszcz/Uniwersytet TechnologicznoPrzyrodniczy w Bydgoszczy

12 2002

Przemys∏aw Kowalski None

Przemys∏aw Kowalski

568.4 147 (3)

POIG (1.4-4.1; 4.4; 8.1; 8.2); POIÂ (4.2; 4.3; 4.5; 4.6; 7.4; 9.1; 9.2; 9.4; 10.2); POKL (2.2.1; 5.2; 8.1.1); PO RPW (III.2); PROW (1.2.1; 1.2.3; 3.1.2); WRPO (1.1; 1.2; 1.4; 6.2); RPO WK-P (5.2.2); RPO W¸ (III.6); RPO WZ (1.1.2; 2.2.2)

Construction of container base in Krono Port Terminal in Szczecin; construction of Zajdy biogas plant; construction of four wind turbines in Gmina B∏aszki; modernization of district heating duct and heating central station in Toruƒ; infrastructure modernization and expansion for Targi Kielce - the International Exhibition and Congress Center

0.2 337.4 230.8

2 125 20

Krono Port; Toruƒska Energetyka CERGIA; Elektrociep∏ownie Wybrze˝e; Bioelektrownia Szarlej; Wielkopolska Spó∏ka Gazownictwa

14 2005

Bartosz Janc - 33.2%; Wojciech Nawrocki - 33.4%; ¸ukasz Bartkiewicz - 33.4% None

Bartosz Janc; Wojciech Nawrocki, ¸ukasz Bartkiewicz

140.3 58.6 -

29 69 -

WND

7 2004

Rafa∏ Cieslak; Jan Kordasiewicz - 100% None

Rafa∏ CieÊlak; Jan Kordasiewicz

91.6 1.2 -

8 6 -

Gryfów Âlàski City Hall; Gmina Grudziàdz; Regional Water Management in Gdaƒsk

15 2007

Micha∏ Szymczak None

Micha∏ Szymczak

Rank

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

DGA SA ul. Towarowa 35, 61-896 Poznaƒ 1 61 859-5900/61 859-5901 dgasa@dga.com.pl www.dga.pl

Polinvest Sp. z o.o. ul. Jana Bro˝ka 3, 30-347 Kraków 2 12 263-7002 /12 263-7001 polinvest@polinvest.pl www.polinvest.pl

Accreo Taxand Sp. z o.o. ul. Grzybowska 5A, 00-132 Warsaw 3 22 324-5900/22 324-5901 accreo@taxand.pl www.taxand.pl

EGC Consulting Group T. Chmielecki, T. K´cerski, P. Mazurek Sp.j.

Al. Politechniki 22/24 , 93-590 ¸ódê 4 42 250-5358 /42 250-5371 biuro@egc.pl www.egc.pl

KPPM Doradztwo Sp. z o.o. ul. Âw. Wawrzyƒca 15/35, 31-060 5 Kraków 12 430-0114 biuro@kppmd.pl www.kppmd.pl

METROPOLIS Doradztwo Gospodarcze Sp. z o.o. ul. Zakopiaƒska 197, 60-467 Poznaƒ 9 61 820-5444/61 820-1351 wojciech.nawrocki@metropolisdg.pl  www.metropolisdg.pl

Total amount of subsidies (z∏. mln) / Number of qualified projects*

Programs and activities

Sample projects

2,963.9 87 (7)

POIÂ (4.3; 11.2; 11.3; 12.2; 13.1); POIG (1.4; 2.1; 2.2; 4.1; 4.4; 6.1; 7; 8.1; 8.2); RPO WÂ (1.1; 1.2.2; 1.3); RPO WM (1.1; 1.5); RPO W¸ (1.1; 2.7; 3.6; 4.1; 5.4); WRPO (1.2; 2.2; 2.7; 6.1; 6.2); MRPO (1.2); RPO WZ (1.3; 6.2); RPO WK-P (4.1; 7.2); RPO WiM (1.1); PROW (dzia∏anie 313, 322, 323); RPO WP (1.2; 5.1); POKL (2.1.1; 3.3.4; 5.2.1; 7.2.1; 8.1.1; 8.1.2; 9.2; 9.3)

Energy efficiency in practice; development of Information and Communication Technologies Park in Chorzów; trainings and advice on ethics and interest conflict avoiding in local government; “Fascynacje zakl´te w nauce i biznesie” nationwide program of development of key competencies in mathematics, life sciences and enterpreneurship for high school students; “Academy of Experienced Manager”

2,605.0 92.1 265.1

Construction of Regasification Terminal for Liquified Natural Gas in ÂwinoujÊcie; Wierzchowice Underground Storage; Waste POIÂ (1.1; 2.1; 9.1; 9.2; 10.1; 10.2); Incineration PlantGas in Kraków; JeleniówMRPO (5.2; 7.1) Dziwiszów gas pipeline; Trauma Center for Emergency Medicine and Disasters in University Hospital in Kraków - 1st phase

2,493.0 22 (13)

1,848.7 67 (8)

1,514.3 365 (1)

Kancelaria Doradztwa Gospodarczego CieÊlak & Kordasiewicz Sp.j. ul. Pilicka 26, 02-613 Warsaw 10 22 499-5180/22 349-9753 m.nejfeld@kdg.waw.pl www.kdg.waw.pl

196.6 98 (4)

Purchase of machines for production of fully biodegradable products for Amarath; implementation of human cell culture technology intended for autologous transplantation for Impomed Centrum; consultancy POIG (2.1; 2.3; 3.3.2; 4.4; 6.1; 6.4; services in order to attract outside 8.1); POIÂ (9.3); RPO WM (1.5; 2.1; funding for innovative projects in 2.2; 4.2; 5.2; 6.1; 6.2); RPO WL (8.3); Stalma; “Implementation of plan for RPO WO (1.4); RPO WP (1.1; 4.4; 5.2; export development as an opportunity 5.3); RPO WÂ (3.2; 9.3) to increase competiveness of Hearing and Speech center on international medical services market”; purchase of mobile kit for preparation of drilling with heave fraction separator for Techpol

EUROSTO Micha∏ Szymczak, osoba fizyczna prowadzàca dzia∏alnoÊç gospodarczà 11 ul. Dworcowa 4, 85-009 Bydgoszcz 52 582-1173/52 552-9479 m.plaszczyk@eurosto.pl www.eurosto.pl

92.8 14 (14)

PROWD (9.1); POIÂ (1.1); RPO WK-P (2.6; 3.1; 5.2.1); POIG (3.1; 6.4); PRPW (2.1)

Revitalization of the Elblàg Canal; renovation of buildings in Gryfów Âlàski

President

President

Board Members

Managing Partners

Krzysztof Dadej President

Tomasz Hoffmann President

Piotr Stefaniak President

Managing Partner

President; Board Members

Executive Director

THE LIST

FEBRUARY 27 – MARCH 4, 2012

www.wbj.pl

19

Rank

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

Total amount of subsidies (z∏. mln) / Number of qualified projects*

Programs and activities

Sample projects

Total amount of The amount of subsidies (z∏. mln) qualified projects for: public for: public administration / administration / SMEs / SMEs / large enterprises large enterprises

Selected clients

Total number of employees in Poland / Year founded in Poland

Ownership: Polish / Foreign

Top local executive / Title

74.5 93 (5)

“Methodology of age management as innovative solution to suport economic workers 50+”; “Video4edu POKL (2.1.1; 5.2.1; 6.1.1; 6.2; 7.2.1; activityasofinnovative solution to support 7.2.2; 8.1.1; 8.3; 9.1.2; 9.2; 9.3; 9.4) portal the business and science sectors alliance”; Professional Manager in Your Enterprise”

6.2 45.8 22.5

6 62 25

Automotive Lighting Polska; Ericpol Telecom; JTI; Ikea; PGE

27 2006

Ma∏gorzata Czernecka - 50%; Konrad Jaszczyƒski - 50% None

Ma∏gorzata Czernecka; Konrad Jaszczyƒski

Grupa Gumu∏ka Euroedukacja Sp. z o.o. ul. Jana Matejki 4/5, 40-077 Katowice 13 32 203-5829/32 258-3298 renata.snios@gumulka.pl www.gumulka.pl

69.7 42 (10)

Specialized equipment for GLIWICE Science and POIÂ (11.3); PROW (3.1.3); RPO WO TECHNOPARK Technology Park; 3* Hotel in Ruda (2.2); MRPO (1.1; 4.3); RPO WÂ Âlàska; Hotel-conference-training(1.1.2; 1.2.1; 1.2.4; 2.1; 2.2; 3.1.1; 3.3; recreation business center; Teatralna 4.1; 5.3; 5.4; 8.1; 9.1; 9.2; 9.3; 12.1); restaurant refit and Hetman hotel RPO WD (9.1); POKL (8.1.1) launch in Bielsko-Bia∏a; map of sound for Gmina Sosnowiec

65.3 3.7 0.7

34 7 1

Gmina Miasta Knurów; TECHNOPARK GLIWICE Science and Technology Park; B´dzin district; Gmina Kuênia Raciborska; Gmina Miasta Sosnowiec

15 2004

Jacek Sztyler - 25%; Rados∏aw Gumu∏ka - 75% None

Jacek Sztyler

Konsorcjum doradczo-szkoleniowe SA ul. Flisa 4, 02-247 Warsaw 14 22 577-4040/22 577-4047 office@weknowhow.pl www.weknowhow.pl

47.0 23 (12)

POKL (2.1.1; 2.2.2; 8.1.1)

“Academy of Skills Development”; “Academy of Innovative Sales”; “Strategy: Delighted Customer”; “Goodyear – good years for development”; “We measure our success with customers’ satisfaction”

3.4 43.7

4 19

Schenker; Goodyear Dunlop Tires Polska; Tesco Polska; HJH Polska; ArcelorMittal Polska

25 2004

78.4% 21.6%

Aleksander Drzewiecki

10.4 5.0 2.8

5 6 1

Przedsi´biorstwo Energetyki Cieplnej TERMOWAD; Assecco Poland; Gmina Miasta tarnowa; Grupa Polskie Sk∏ady Budowlane; Ecolab

WND 1997

Jakub S∏upiƒski None

Jakub S∏upiƒski

WND WND WND

WND WND WND

Stowarzyszenie Centrum Wspierania przedsi´biorczoÊci; Gmina Âwiebodzice; DolnoÊlàska Organizacja Turystyczna; DolnoÊlàski Zwiàzek Pi∏ki No˝nej; Gmina Pi∏awa Górna

8 2007

WND None

WND WND WND

WND WND WND

WND

13 2003

Przemys∏aw Sulich None

HRP Czernecka, Jaszczyƒski Sp.j.

Al. T. KoÊciuszki 39, 90-418 ¸ódê 12 42 637-9030/42 637-9031 biuro@hrp.com.pl www.hrp.com.pl

PM Doradztwo Gospodarcze Sp. z o.o. ul. Grochowska 39A, 31-516 Kraków 15 12 292-7632/12 292-7632 biuro@pmdg.pl www.pmdg.pl

18.2 WND

POKL (8.1.1); MRPO (2.1.A; 3.2.A); POIG (8.2); RPO WÂ (9.1)

ECOLAB; WG Spider technology for assembly of glass elements for WGSystem; modernization of Sanatorium Z¸OCIE¡ facilities; Bractwo Strzeleckie building in Tarnów adaptation for Municipal Gallery; increasing of employees’ competences in sector of food proccessing

Eurospektrum Sp.c. ul. Drobnera 36/19, 50-257 Wroc∏aw 16 71 733-6995/71 733-6992 biuro@eurospektrum.pl www.eurospektrum.pl

0.9 4 (15)

POKL (6.3; 8.1.1)

“Active home organizers”; “Professional babysitter”; “Floral inspirations”

A1 Europe Sp. z o.o. ul. Wadowicka 8A, 30-519 Kraków NR 12 259-8070/12 398-2188 biuro@a1europe.pl www.a1europe.pl

WND WND

Diversification of production for Lakma; RPO WZ; RPO WK-P; RPO WW; RPO implementation of innovative WM; RPO WO; RPO WP; RPO W¸; technologies of data preserving and RPO WSL; RPO WÂ; MRPO; POIÂ; processing in Polcom Data Center; film PROW; POIG studio and film set for Alvernia Studios in Nieporaz

Notes: NR = Not Ranked, WND = Would Not Disclose. Research for The List was conducted in December 2011. Number of employees and ownership structure are as of November 2011. All information pertains to the companies’ activities in Poland. Companies not responding to our survey are not listed. POKL - Operational Program Human Capital, POIG - Innovative Economy Operational Program, POIS - Operational Program Infrastructure and Enviroment, PO RPW - Operational Program Development of Polish Eastern, OPPT - Operational Program Technical Assistance, RPO - Regional Operational Programs; * The numbers in brackets indicate the Companies’ ranking position according to the number of qualified projects.

Owners

President

President

President

Katarzyna Âwider; Grzegorz Bratek Owners

Przemys∏aw Sulich 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 2011, Valkea Media SA. The List may not be reprinted or reproduced in whole or in part without prior written permission of the publisher. Reprints are available.

20

MARKETS

www.wbj.pl

FEBRUARY 27 – MARCH 4, 2012

Stocks report

world stock indices DJIA

NASDAQ

12,984.69 (Feb 23 close)

S&P500

2,956.98 (Feb 23 close)

0.62% (for the week)

FTSE100

1,363.46 (Feb 23 close)

-0.10% (for the week)

DAX

5,919.98 (Feb 23 close)

0.40% (for the week)

0.59% (for the week)

A lackluster week

NIKKEI225 6,809.46 (Feb 23 close)

9,595.57 (Feb 23 close)

0.85% (for the week)

3.87% (for the week)

CHANGE: 4.74%

CHANGE: 11.64%

CHANGE: 6.77%

CHANGE: 3.86%

CHANGE: 12.08%

CHANGE: 12.10%

(year to Feb 23 close)

(year to Feb 23)

(year to Feb 23)

(year to Feb 23)

(year to Feb 23)

(year to Feb 23)

52-week high: 13,005.04

52-week high: 2,965.05

52-week high: 1,370.58

52-week high: 6,103.73

52-week high: 7,600.41

52-week high: 10,768.43

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

Andrew Nawrocki WBJ market analyst It was a rather poor week for the Polish bourse. On Monday, February 20, with US markets closed, European markets opened with little confidence and direction.

This changed in the afternoon, however, after China cut the amount banks must hold in reserve, allowing for more lending to boost its economy. While leading European bourses finished with gains above 1 percent, the Warsaw Stock Exchange’s main index, the WIG, was only one of two to close in the red, down 0.27 percent.

On Tuesday February 21, doubts resurfaced concerning Greece’s second bailout.

Still, the Dow Jones industrial average rose above 13,000 for the first time in nearly four years, but later investors saw an opportunity to cash in on high prices. Stocks

Major indices WIG

41,258.14 (February 23 close)

WIG20

2,297.46 (February 23 close)

23.02

22.02

21.02

20.02

17.02

16.02

15.02

14.02

13.02

10.02

09.02

08.02

07.02

23.02

22.02

21.02

20.02

17.02

16.02

15.02

14.02

13.02

2,200

10.02

40,000

09.02

2,240

08.02

40,600

07.02

2,280

06.02

41,200

03.02

2,320

02.02

41,800

01.02

2,360

31.01

42,400

30.01

2,400

27.01

43,000

06.02

52-week low: 2,089.84

03.02

Change year to February 23: 4.71%

02.02

52-week low: 36,549.47

01.02

52-week high: 2,932.62

Change year to February 23: 7.67%

31.01

Change for the week: -0.94%

30.01

52-week high: 50,371.74

27.01

Change for the week: -0.42%

Top 5 WISTIL RESBUD SIMPLE FON CAPITAL

Closing 31.68 8.97 9.00 0.28 1.78

% change (week) 52-week high 122.32 31.68 81.21 10.94 40.19 17.57 40.00 0.49 23.61 1.95

52-week low 5.33 2.88 5.45 0.15 0.95

Top 5 TVN KGHM TPSA ASSECOPOL BZWBK

Closing 11.60 138.50 17.14 53.10 231.00

% change (week) 8.82 3.90 3.25 2.02 0.87

52-week high 18.53 200.30 19.19 55.45 240.00

52-week low 8.90 102.40 14.30 34.50 190.10

Bottom 5 DSS PBG MOSTALWAR HERMAN INTAKUS

Closing 7.10 67.30 19.06 4.30 0.70

% change (week) -15.88 -14.38 -14.18 -14.00 -13.58

52-week low 5.22 53.70 15.39 0.45 0.61

Bottom 5 PBG GTC POLIMEXMS PGE PEKAO

Closing 67.30 8.59 1.85 19.37 152.50

% change (week) -14.38 -8.71 -7.50 -4.86 -4.51

52-week high 205.00 21.79 3.78 25.07 180.20

52-week low 53.70 7.86 1.19 15.98 115.10

52-week high 23.75 205.00 49.00 5.95 1.52

Currency report

Z∏oty slows down

Other indices sWIG80

10,422.57 (February 23 close)

WIG-Banki

5,892.82 (February 23 close)

23.02

22.02

21.02

20.02

17.02

16.02

15.02

14.02

13.02

10.02

09.02

08.02

07.02

23.02

22.02

21.02

20.02

17.02

16.02

15.02

14.02

13.02

10.02

5,800

09.02

40.0

08.02

5,880

07.02

40.8

06.02

5,960

03.02

41.6

02.02

6,040

01.02

42.4

31.01

6,120

30.01

43.2

27.01

6,200

06.02

52-week low: 4,944.19

03.02

Change year to February 23: 6.31%

02.02

52-week low: 40.00

01.02

52-week high: 7,387.49

Change year to February 23: 4.53%

31.01

Change for the week: -2.24%

30.01

52-week high: 59.10

27.01

Change for the week: 0.14%

44.0

Adam Narczewski X-Trade Brokers DM SA

23.02

22.02

21.02

20.02

17.02

16.02

15.02

14.02

13.02

52-week low: 8,218.71

10.02

07.02

06.02

03.02

23.02

22.02

21.02

20.02

17.02

16.02

43.37 (February 23 close)

52-week high: 12,932.00

SOURCE: WSE

NewConnect

15.02

14.02

13.02

9,200 10.02

2,300

09.02

9,480

08.02

2,340 07.02

9,760

06.02

2,380

03.02

10,040

02.02

2,420

01.02

10,320

31.01

2,460

30.01

10,600

27.01

2,500

02.02

Change year to February 23: 21.13%

01.02

52-week low: 2,076.52

31.01

Change year to February 23: 11.62%

30.01

Change for the week: 2.32%

27.01

52-week high: 2,987.72

09.02

2,444.82 (February 23 close)

08.02

mWIG40 Change for the week: -0.01%

throughout Europe retreated, while the WIG managed to book a small 0.05 percent gain.

On Wednesday February 22, data showing weakness in the euro zone services and manufacturing sectors had investors worried. Throughout Europe, shares tumbled, with both the WIG and the blue-chip WIG20 index falling by about 1 percent.

The next day, February 23, stocks retreated further, with the WIG suffering a 0.99 percent loss as Poland’s unemployment rate edged higher for the month of January. Despite gains in domestic retail sales, the WIG and WIG20 underperformed in Europe, dragged down by financial and energy stocks.

On Friday, stocks got some relief, with the WIG finishing 0.58 percent higher. ●

Investors got the news they were expecting for some time as the second round of financing (€130 billion) for Greece was accepted last week. The announcement did not create any euphoric reactions since the country’s situation is still difficult. Now Portugal has emerged as the next country in serious danger of bankruptcy.

Investment sentiment was also hit by worse-than-expected PMI figures from the euro-zone countries. At the same time, the European Commission announced that it expects recession in Greece, Italy, Portugal and Spain in 2012.

Somewhat positive news came from the US, where the weekly unemployment claims remained at around 350,000.

Also, the German IFO index increased more than expect-

ed, helping the euro.

The EUR/USD extended gains from the previous week and cruised all the way to $1.34, its highest level since December of 2011. After such gains, a corrective movement should be expected this week.

The z∏oty’s appreciation against the euro slowed down last week. The uncertainty at the beginning of the week pushed the EUR/PLN higher, to z∏.4.20, while improving sentiment turned the pair around to z∏.4.17, where it started the week.

The USD/PLN, on the other hand, continued its decline, reaching z∏.3.11, the lowest since October of 2011.

This week investors will learn if the IMF will increase its lending power, while the results of the ECB low-interest loans auction (LTRO) will also be announced. ●

currency rates 3.9449

3.9456

3.9196

3.8610

21.02

22.02

23.02

24.02

SOURCE: NBP

3.9727 20.02

3

4.0244

4

17.02

0.1060 24.02

0.1057

0.1062

PLN-100JPY

5

23.02

22.02

0.1057 21.02

0.1060 20.02

24.02

23.02

22.02

21.02

20.02

0.10

17.02

0.1062

3.4543

3.4676

3.4663

3.4547

3.4654 17.02

3

PLN-RUB

0.12

4.9167 24.02

4.9325 23.02

4.9682 22.02

5.0114

4.9913 21.02

4

20.02

5.0416

5

17.02

3.1103 24.02

3.1380

PLN-CHF

4

3.4565

PLN-GBP

6

23.02

3.1635 22.02

3.1488 21.02

3.1790

3.1598 20.02

24.02

23.02

22.02

17.02

4.1654

4.1810

4.1857

4.1840

4.1735 21.02

20.02

PLN-USD

3.5

3.0

17.02

4

4.1775

PLN-EUR

5

SPORTS

FEBRUARY 27 – MARCH 4, 2012

www.wbj.pl

Soccer

Legia out of Europa League

between Poland and Portugal can take place,” Ms Gronkiewicz-Waltz announced at a press conference.

Poland coach Franciszek Smuda will be hoping for victory in his team’s first match at the stadium, as he fine tunes his side ahead of this summer’s Euro 2012 championships. But it might be a tough ask for the White Eagles to start with a win given the fact that Portugal’s

COURTESY OF WIKIMEDIA COMMONS

Warsaw Mayor Hanna Gronkiewicz-Waltz has issued a permit to the operators of Poland’s new National Stadium, meaning the venue will now be allowed to host its firstever sporting event.

The final stumbling block for the stadium had been the

lack of sufficient communication facilities, which meant it was impossible for the police to ensure the safety of fans.

But last week Warsaw police spokesperson Maciej Karczyƒski confirmed that following further work the stadium was now ready to host its first match.

“After receiving positive feedback regarding security at the stadium we decided that the February 29 match

FACEBOOK / MATIAS FERNANDEZ

National Stadium finally ready to host matches The first game will see Poland take on Portugal in an international friendly

Cristiano Ronaldo

side is likely to feature Real Madrid striker Cristiano Ronaldo, a player who has scored an incredible 39 goals in just 36 games already this

season.

Tickets for the Poland-Portugal match are now on sale and are priced from z∏.60 to David Ingham z∏.180.

Cross-country skiing

Kowalczyk wins on home soil Justyna Kowalczyk took gold once again at the most recent FIS Cross-Country World Cup event to edge ever closer to finishing the season as the top female skier for the fourth time in her career.

Victory in the 10km race was made all the sweeter by the fact it came at Poland’s first ever Cross-Country World Cup meeting, in Szklarska

Por´ba, in southwest Poland.

The Olympic champion crossed the line an impressive 36.1 seconds ahead of her main rival, Norway’s Marit Bjøergen, with a time of 28:43.9. Ms Bjøergen’s compatriot Therese Johaug finished third, in 29:34.3.

Prior to the race Ms Kowalczyk had decided to use her less-favored waxless skis due to the poor weather conditions, while Ms Bjøergen chose to stick with waxed skis. And at the 1.8 km mark it seemed the Polish skier might have made a mistake as she trailed her Norwegian

rival by two seconds. However, following a sterling effort in the final 5 km, Ms Kowalczyk stormed home to open up a 14-point gap over Ms Bjøergen in the overall standings.

“These two days were really emotional for me. The competition today was the most important race of the season,” Ms Kowalczyk told the FIS Cross-Country website.

“It has been amazing what the organizers in Szklarska Por´ba have done and also the fans were great. I am proud of them.”

COURTESY OF WIKIMEDIA COMMONS

Poland’s leading cross-country skier now leads the World Cup standings by 14 points

David Ingham

Basketball

Gortat on record-breaking run The Phoenix Suns’ center scored at least 20 points in four consecutive games

tenth straight victory against the Wizards, their longest active streak against any other NBA team.

In their last match before the All-Star break, Phoenix lost to the Golden State Warriors 106-104. But despite the defeat Mr Gortat kept his record run going, finishing the game with 21 points and extending his streak to four consecutive 20-point games.

David Ingham

COURTESY OF WIKIMEDIA COMMONS

Polish basketball player Marcin Gortat has been in inspired form in recent weeks.

The ¸ódê-born center became the first Pole in history to record at least 20 points in three consecutive NBA games when he helped lead the Phoenix Suns to a com-

fortable 104-88 victory over the Washington Wizards last week. Mr Gortat pulled down eight rebounds and one block in addition to his 20-point tally.

“He’s smart enough to know if he sets a good screen and rolls to the basket, there’s a good chance he’ll get an easy basket,” Suns’ coach Alvin Gentry said after the game.

The win was the Suns’

Marcin Gortat helped his team to a 104-88 win over the Washington Wizards

21

Justyna Kowalczyk

Matías Fernández

Legia Warszawa and Wis∏a Kraków both crashed out of the Europa League last week, bringing to an end Poland’s representation in this year’s competition. Legia lost 1-0 away to Sporting Lisbon in their second-leg match, meaning they lost by an aggregate score of 3-2. The defeat was hard to take for Maciej Skor˝a’s men after they performed well on the night, with only a late goal by Sporting’s Matías Fernández separating the two sides.

However, Legia’s pain was nothing compared to that of rivals Wis∏a, as the Kraków side failed to progress to the last 16 despite not losing a match against Belgium’s Standard Liège. Wis∏a managed a scoreless draw away in Liège but went out on the away goals rule, after only securing a 1-1 draw in the first leg in DI Poland.

22

LIFESTYLE

www.wbj.pl

FEBRUARY 27 – MARCH 4, 2012

Opera

Putin’s Russia

Love, honor and betrayal Carmen March 8, 7 pm Sala Kongresowa Pl. Defilad 1 Warsaw Georges Bizet’s worldfamous opera, which tells the story of the beautiful Spanish gypsy Carmen and her relationship with Don José, an inexperienced soldier, is set to be performed by members of the Silesian Opera in Warsaw this March.

Set in the 1820s in the

Spanish city of Seville, this opera is a tale of love, honor and betrayal, which sees the eponymous Carmen pay the ultimate price following her rejection of Don José for the bullfighter Escamillo.

Performed in its original language of French, this interpretation is directed by famed Polish opera singer Wies∏aw Ochman.

David Ingham

For more information log on to kongresowa.pl

COURTESY OF SALA KONGRESOWA

Exhibition

Rafa∏ Milach. 7 Rooms Through April 1 Zach´ta National Gallery of Art Pl. Ma∏achowskiego 3 Warsaw Polish photographer Rafa∏ Milach’s new exhibition portrays the lives of Russian citizens born in the former USSR but whose adult lives have taken place under the leadership of Vladimir Putin.

The images on display are based around six stories which aim to document the lives of ordinary Russians in their thirties who Mr Milach photographed over a six-year period.

“I have been through three phases in my relationships with my heroes. First, they were my guides through their cities, then they became the heroes of my photos, and then finally they became friends with

whom I talk more than I photograph,” the artist explained.

The seventh room referred to in the exhibition’s title is dedicated to the work of Belarusian investigative journalist Svetlana Alexievich, and is symbolic of the metaphorical baggage of the last generations born in the former USSR. David Ingham

For more information log on to zacheta.art.pl

Classical music’s bad boy Nigel Kennedy: Hendrix March 18, 7 pm Klub Stodo∏a ul. Stefana Batorego 10 Warsaw British violinist Nigel Kennedy is arguably the most “rock ‘n’ roll” performer in the classical music scene today. With a penchant for wearing jeans and a soccer shirt instead of the usual dinner jacket and bow tie, as well as playing his own interpretations of songs by rock greats such as The Doors, Mr Kennedy has often been labeled

the “bad boy” of classical music.

A child prodigy who studied at the Yehudi Menuhin School of Music, Mr Kennedy has gone on to have significant commercial success. His 1989 recording of Vivaldi’s “The Four Seasons” sold over two million copies, making it one of the most popular classical music recordings of all time.

His show in the capital this March will see him accompanied by a backing band consisting of guitar, bass, organ and drums, as he performs his own

COURTESY OF MYSPACE / NIGEL KENNEDY

COURTESY OF RAFA¸ MILACH

Concert

take on the greatest hits of Jimi DI Hendrix.

For more information log on to stodola.pl

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LAST WORD

FEBRUARY 27 – MARCH 4, 2012

www.wbj.pl

23

Tech Eye

Techeye has never fully recovered from that loss,

COURTESY OF MATTEL

When Techeye was eight years old, our favoritest toy in the whole world ever was the A-Team van, with removable roof and BA Baracus action figure.

Oh, the times we had! BA Baracus was always pitying the fool who tried to make us eat spinach. He and the ATeam van went everywhere with us – Bar Mitzvahs, ladies’ restrooms, the 1984 Olympic Games. Anywhere that didn’t involve getting on a plane because, you know, BA “ain’t gettin’ on no plane.”

Mum would even let us use the A-Team van to smuggle cigarettes to Uncle “Bunk Snuggler” Techeye, the most popular cellmate at the county penitentiary.

Sweet uncle, he’d always hide an extra-pointy shiv in the van for us to play with later.

Then one day … our favoritest toy was gone. No “Dear John” letter, no trail of pitied fools to follow. Nothing.

which is probably why we cry whenever we see a red-striped van or a muscled black man with a mohawk and five kilograms of gold around his neck.

Anyway, in mid-February Techeye headed to the American International Toy Fair in New York, seeking, as always, some trace of our beloved ATeam van or maybe even a replace-

ment. As always, we failed in that task, but at least we got an eyeful of some new toys. Like Barbie Photo Fashion.

That’s right, Barbie. There’s nothing wrong with playing with dolls, you know. Our favorite incarcerated uncle always said so.

Anyway, Barbie Photo Fashion (barbie.com) has a small display built into her torso, a la teletubby, and fivemegapixel camera stuck between her shoulder blades. She comes with a rechargeable battery and faithfully stores up to 100 photos (these can be downloaded via a USB port hidden in her buttocks lower back).

Barbie Photo Fashion hits shelves in August at $49.99, a price point that might be a bit steep for little girls’ piggy banks, but it’s just right for men with severe emotional dysfunctions.

We’ll be getting two.

Another cool toy we saw in New York was the Geyser Rocket Car. It’s no A-Team van, of course, but there’s an element of explosive goodness which somehow reminds us of our bestest toy.

Have you ever seen those YouTube videos where people drop Mentos into bottles of Diet Coke?

One of those people – professional science dork Steve Spangler (steves-

COURTESY OF STEVE SPANGLER SCIENCE

Never-found toys and newly found toys

panglerscience.com) – has found a way to parlay dubious internet notoriety into cash.

The Geyser Rocket Car is a fairly simple bit of gear, given that you’ll pay $24.99 for the pleasure of owning one.

You get a clear plastic two-liter bottle, a wheeled chassis, an “air blaster cork with inflation needle,” a few other bits and bobs, and some velcro to hold it all together. It also comes with some Mentos, conveniently.

And what’s it good for? Well, we can’t speak for anyone else, but when

our Geyser Rocket Car arrives we plan to take it down to the sidewalk in front of our building. Then we’ll pour in a whole bunch of Diet Coke, fire a few Mentos into the fizz injector tube using the red trigger pin, and make a giant, sticky mess, enraging our neighbors and any elderly folk within a square mile. And we’ll use our Barbie Photo Fashion to document the beautiful chaos.

It will be grand. And maybe, just maybe, our new toys will help heal old wounds. ●

Ever been reduced to emotional catastrophe by the loss of a favorite toy? Let us know: techeye.wbj@gmail.com