WBJ #47 2013

Ruling party convention

Energy consolidation

PM Tusk wants to take Poland to the “next level.” But how?

The Treasury wants to create a new energy giant

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WWW.WBJ.PL

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VOLUME 19, NUMBER 47 • DECEMBER 2-8, 2013 . z∏.12.50 (VAT 8% included) . ISSN 1233 7889 INDEX-RUCH-332-127

LOKALE IMMOBILIA

Since 1994 . Poland’s only business weekly in English

Ukraine dumps EU. For now

COURTESY OF GHELAMCO

REAL ESTATE

• Ghelamco retail scheme • OVO Hilton Wroc∏aw • KSP redevelopment • Vantage financing 15-18

The EU leaves its door open for Ukraine, but will President Viktor Yanukovych still care to knock at a bilateral summit next year? 12-13

Iran deal fallout What are the consequences of the deal signed between Iran and the P-5+1 for the CEE region?

11

Plus: • LNG deal under scrutiny • Biedronka expansion • CEE-China talks • Changes in PiS

SHUTTERSTOCK

In this issue News . . . . . . . . . . . . . . . . . . . . . . .2-5 Business . . . . . . . . . . . . . . . . . . . .6-7 Interview . . . . . . . . . . . . . . . . . . .8-9 Opinion & Analysis . . . . . . . . .10-11 Cover Story . . . . . . . . . . . . . . .12-13 Finance & Economics . . . . . . . . . .14 Lokale Immobilia . . . . . . . . . .15-18 Markets . . . . . . . . . . . . . . . . . . . . .19 The List . . . . . . . . . . . . . . . . . . .20-21 Sports . . . . . . . . . . . . . . . . . . . . . . .22 Lifestyle . . . . . . . . . . . . . . . . . . . . .23

Deputy defense minister resigns General Skrzypczak quits his post amidst bid-rigging allegations 5

Ready for takeoff Poland mulls building another new airport. But does it really need one more?

7

NEWS

www.wbj.pl

Commercial shale gas extraction in 2014?

3.2% y/y is how much Polish retail sales grew in annual terms in October, according to Poland’s Central Statistical Office data.

126,100 sqm

Poland was one of the first two countries in the world (along with Canada) to recognize the independence of Ukraine in 1991 after the collapse of the Soviet Union. Since then, every Polish government, irrespective of their ideological leanings, has striven to maintain good relations with Poland’s 46 million-strong eastern neighbor.

It has been a central tenet of Polish foreign policy to keep Ukraine close even when Poland is not fond of the particular Ukrainian government in power. No country in Europe has done more to bring Ukraine into the European Union fold than Poland.

The Eastern Partnership, an initiative aiming to bring the post-Soviet nations of Armenia, Azerbaijan, Belarus, Georgia, Moldova and Ukraine clos-

Kiev this week and it will be interesting to see what, if any, tangible results that visit may bring.

After the Eastern Partnership summit in Vilnus last week, Mr Komorowski said “The European Union speaks with one voice that the door for Ukraine to sign an association treaty with the EU is open.”

Mr Komorowski has personally invested a lot of time in trying to push the EU-Ukraine integration agenda forward, meeting with Mr Yanukovych on several occasions. After each of those meetings, Ukraine’s president assured Mr Komorowski of his determination to sign the free trade deal with the EU. Let’s see what Mr Yanukovych tells his Polish counterpart this week.

Remi Adekoya

Quote of the Week “There is no point in pretending that the law on OFEs is a desired solution. This reform is necessary mainly from a budgetary point of view.”

President Bronis∏aw Komorowski on the planned pension system reform.

Figures in focus Population dynamics Population change in 2012 in selected EU member states (in thousands, compared to the previous year) 392.6

400 350

305.5 *Highest in the EU **Lowest in the EU

300 250

195.8

200 150 73.0

100

10.7

50 0

-5.1

-42.7

-23.1

-55.1 -113.9

-50 -100

Beijing’s investment in Europe strategy Stratfor looks at why China looks to Central and Eastern Europe primarily as a market for its own strategic industries and perhaps another window into western European markets. Log on to WBJ.pl to read the report.

l

ain ** Sp

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-150

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On WBJ.pl

Source: Eurostat

Company index BZ WBK ..........................................14 Kulczyk Silverstein Properties........15 Capital Park ....................................18 LPP ..................................................15 CBRE Global Investors....................15

Calendar

December 2-6

TYDZIEŃ UŚMIECHU (WEEK OF SMILES)

Event:

Hailed as one of Poland’s biggest student charity events, the Week of Smiles is an opportunity to get stocking-stuffers for this year, including books, CDs, as well as dance-class vouchers, theater and cinema tickets and much more.

Main Atrium, Warsaw School of Economics tydzienusmiechu.pl

Location:

Irish-based oil and gas group San Leon Energy announced favorable results at its shale gas exploration site in Lewino in northern Poland.

Poland’s Deputy Environment Minister Piotr Woêniak was enthusiastic about the outcome. “[The results signal that] commercial shale gas extraction will be launched in Poland next year,” he said. ●

er to Brussels and provide a venue for trade discussions, travel agreements and other issues between the EU and post-Soviet nations was initiated by Warsaw.

But that relationship is now facing its biggest test after the government of Ukrainian President Viktor Yanukovych decided to do an about-turn and not sign an Association Agreement with the EU that had essentially been negotiated and agreed upon (see story pp.

12-13).

And so, even though both Prime Minister Donald Tusk and President Bronis∏aw Komorowski have said Poland will not turn its back on Ukraine, it is now far from clear how relations will shape out after Ukraine’s snub of the EU. Mr Komorowski will visit

is how much retail space was added to the Polish market in H1 2013, according to a Cushman & Wakefield report.

nc e Ge rm an y Sw Cz ed ec e hR n ep ub lic

Poland’s special economic zones have so far led to the creation of 186,000 jobs and the inflow of €20 billion in investments, according to a report by advisory firm EY. Out of 14 existing SEZs, five were included in the ranking compiled by fDi Magazine, published by the Financial Times. EY experts said that Polish SEZs will offer the most favorable conditions to investors before June 30, 2014.

10 million is how many passengers have already been served by Warsaw’s Chopin Airport this year.

Fra

SEZs bring €20 billion - report

2.7% is how much Poland’s GDP is expected to grow in 2014, according to a revised forecast by the International Monetary Fund.

m*

Kazimierz Nowak was appointed chief executive of natural gas pipeline operator EuRoPol Gaz and Tomasz Flis was appointed deputy CEO at the company’s EGM last week. The company is coowned by Poland’s PGNiG (48%), Russia’s Gazprom (48%) and PGNiG’s subsidiary Gas Trading.

The company had gone without two management board members since November 8, when Mieczys∏aw Dobrut and Zdzis∏aw Jamka resigned.

Gazprom’s representatives then left the EGM and effectively blocked the appointment of new members in their place.

Polish-Ukrainian relations

do

EuRoPol Gaz finally with CEO

Numbers in the News

ing

Poland’s gross domestic product grew by 1.9% year-on-year in the third quarter of 2013 compared to 0.8% y/y growth in Q2, according to a revised estimate published by statistics office GUS. Seasonally adjusted GDP growth was 1.7% y/y and 0.6% quarter-to-quarter.

IN THE SPOTLIGHT

Un ite dK

GUS confirms Q3 GDP growth at 1.9%

DECEMBER 2-8, 2013

COURTESY OF VICTOR PINCHUK FOUNDATION

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Web:

3-4

NEW EUROPE GRI 2013

Event:

The 9th annual New Europe GRI will bring together board- and C-level real estate investors, developers and lenders active in CEE. They will discuss the region’s challenges and opportunities in the sector.

Hyatt Regency hotel, Warsaw globalrealestate.org/NewEuropeGRI

Location: Web:

Location: Web:

THE CITY BUSINESS FORUM

Event:

Investors, developers and financial institutions will discuss trends and current situa-

tion in the Polish real estate sector. Smart strategies for real estate will be discussed at the panels.

Novotel Warszawa Centrum Hotel, Warsaw eng.thecity.com.pl

10-11 B2B SUMMIT Event:

Location: Web:

Top executives from some of the biggest Polish companies will discuss their strategies on how to attract and keep the most important clients and key accounts.

Hotel Courtyard by Marriott, Warsaw b2b-summit.com

16-18 ENERGY FORUM Event:

Web:

Over 400 guests will discuss the regions’ energy future, making it the largest sector conference in Poland. Everything from coal to renewables will be examined.

Sheraton Hotel Sopot, Conference Center & Spa forum-ekonomiczne.pl/viii-forum-energetyczne-2013/

Milestone Medical ............................5 PGE ................................................3, 6

Cushman & Wakefield ................2, 18 Deutsche Bank................................16

Location:

4-5

Citigroup ..........................................10

Emmerson ......................................17

PGNiG ............................................2, 7 Polimex-Mostostal ............................6

Enea ..................................................6 Polkomtel ..........................................5 Energa ..............................................6 Polski Holding NieruchomoÊci ......16 EuRoPol Gaz......................................2 Porty Lotnicze ..................................7 Gazprom ........................................2, 7

Qatargas ............................................7

Gdaƒsk Shipyard Group ....................3 Robyg ..............................................15 Ghelamco ........................................16 Grupa Azoty ......................................6

Rossman..........................................15

GTC ..................................................16 RTB Bor ............................................5 HB Reavis ........................................18 San Leon Energy ..............................2 IN-VI ................................................17 Societe Generale ............................16 ING ..................................................15 Invest-Bank ......................................5

Tauron................................................6 Vantage Development ....................17

ISD ....................................................3 Jeronimo Martins..............................6 Jones Lang LaSalle ........................16

Warsaw Stock Exchange ............5, 18 Wings Properties ............................15

KGHM ..........................................5, 19 X-Trade Brokers..............................19 Kompania W´glowa ..........................3 Zak∏ady Azotowe ..............................6

NEWS

DECEMBER 2-8, 2013

www.wbj.pl

Politics

Tusk lays out direction for government

Prime Minister Donald Tusk, speaking at his party’s convention on November 23, announced that under his government Poland would become the “most competitive country in Europe.” Although Mr Tusk said that his government has a plan to achieve this, he revealed no details, stating only that the government would invest in small companies and start-ups.

The PM then went on to make a string of announcements that are likely to go down well with the electorate, saying the government plans to focus on “Polish families and children, especially regarding their care and education, support for young people who want to buy new apartments and subsidizing activities which will make administrative offices serve and not rule over people.”

“Poles have the right to higher and more secure salaries. … Poles deserve safe jobs,” Mr Tusk added.

This kind of rhetoric is

COURTESY OF PO

The prime minister says his government has a plan to make Poland the most competitive economy in Europe. And then announces a slew of social spending

Prime Minister Donald Tusk hardly coincidental considering the fact that three major elections are scheduled over the next two years – the European Parliament ballot in 2014, Polish local government elections that same year, and the all-important domestic parliamentary poll in 2015.

Presidential elections are also scheduled for 2015, but Poland’s current Head of State, Bronis∏aw Komorowski – a political ally of the PM – looks a sure bet for re-election with his approval ratings in the mid-60s.

Mr Tusk also said the period of large-scale infrastructure construction is nearing its end,

and that now is the time for all the projects that have already been completed to “contribute to Poles’ well-being.”

Tough talk During the convention, the prime minister talked tough regarding corruption.

“If someone thinks he can, thanks to politics, make money or even a fortune, then he should go into business,” said Mr Tusk. “Anybody who has broken the law and is in power should get ready for a meeting with the secret services which we have mobilized so they can monitor the government even

more precisely,” he added.

The comments came after dozens of people have been arrested in recent weeks for involvement in what the head of the Central Anti-Corruption Bureau has called “the biggest corruption case in Poland’s history.” The matter concerns massive corruption and tender collusion at the IT unit of the former Ministry of Interior and Administration as well as at the Ministry of Foreign Affairs (for more see story p. 4).

Romance is fine, but where is the plan?

The PM’s speech was not

bereft of dramatic tones.

“After all those centuries and years of bad breaks, dramatic turnarounds, occupations and ghastly political and economic systems, we have finally achieved our dream for our beloved Poland, which is freedom,” said Mr Tusk.

“Poland for the first time in its history has the chance to get to the next level, to make a civilizational leap: that moment is within our grasp,” he added, referring to the z∏.400 billion in total EU funds which Poland has been allocated for the years 20142020.

The EU funds will surely be helpful but without a concrete plan for Poland’s future development path, that money will not guarantee the country entry into the “next level” the prime minister is talking about.

The problem is that a concrete plan would have to involve reforms, which would be painful for large groups of Poles. Past experience suggests Donald Tusk will beloathe to take such a political risk with elections just around the corner. And so, unfortunately, Poland will likely have to wait to get to the “next level” for some time to come.

Kaczyƒski says PM is Poland’s “father of poverty” A mixed, but not worse picture

Moving on up Last week also saw a number of

Opposition leader Jaros∏aw Kaczyƒski changes in the ranks of Law and Justice. Controversial MP Antoni Macierewicz, who headed an independent parliamentary investigation into the Smolensk catastrophe, which killed President Lech Kaczyƒski and 95 other high-ranking officials in April 2010, was made deputy leader of the party.

The move is a clear sign that Mr Kaczyƒski has put a lot of trust into Mr Macierewicz, who has been unfaltering in his sup-

In November, much like in the past several months, 67% of respondents said a that Poland is not heading in the right direction, while only 18% were of the opposite opinion, according to the latest survey carried out by CBOS. Only 15% of Poles believe that the country’s economic situation is good, while 44% say that it is in bad shape.

PGE’s Opole plant construction delayed?

Construction work on PGE’s Opole power plant extension project is likely to commence later than December 15, Treasury Minister W∏odzimierz Karpiƒski admitted at a press conference last week. The company is working on making the project more profitable, he maintained. “I would not stick to December 15 as a deadline,” PGE’s acting CEO Piotr Szymanek said.

Kompania W´glowa restructuring plan approved The management board of Poland’s largest mining group Kompania W´glowa (KW) has approved the company’s 2013-2020 restructuring plan, along with a technical and economic plan for 2014. By 2020, the company plans to reduce the number of employees by 7,000 and reduce the number of mining units by one third, as well as merge some of its mines.

Stocznia Gdaƒsk to file for bankruptcy?

COURTESY OF WIKIMEDIA COMMONS

Speaking at a gathering of his party’s political committee, opposition Law and Justice (PiS) leader, Jaros∏aw Kaczyƒski said that Poland’s prime minister Donald Tusk has caused “great poverty” in Poland thanks to his policies.

“What is happening in our country can be described as great poverty. That father of the great poverty in Poland today is Donald Tusk,” said Mr Kaczyƒski, whose party is currently leading Mr Tusk’s Civic Platform in the polls.

The PiS leader often paints catastrophic visions of Poland’s condition today and talks a lot about how the standard of living has deteriorated under the present government.

Jaros∏aw Kaczyƒski’s party ruled Poland as a senior coalition partner in the years 20052007. Mr Tusk has been PM since 2007. Have things really

gone downhill since the Civic Platform leader took power?

According to figures from Poland’s Central Statistical Office, when Mr Kaczyƒski left office in 2007, Poland’s GDP stood at 55 percent of the EU average. That figure now stands at 66 percent.

Six years go, the minimum wage in Poland was z∏.934, today it is z∏.1,500. Also the number of Poles classified as being in danger of “extreme poverty” has reduced from 6.6 percent to 5.8 percent.

To be fair, some things have become worse under Mr Tusk.

While unemployment was at 11.2 percent in 2007, it currently stands at 13.4 percent. Public debt has also ballooned from 44.8 percent to 52.7 percent under the present government.

But while things may not be great under Mr Tusk and Civic Platform, it is a bit of a stretch to say their rule has ushered in crippling poverty in Poland.

Poles in a pessimistic mood

Remi Adekoya

Politics

The Law and Justice leader, whose party is leading in the polls, regularly paints Poland in dark colors.

Is he right to do so?

3

port for the party leader.

Despite being lampooned by many politicians for his belief that Moscow was behind the Smolensk tragedy and a series of gaffes during the presentation of his investigation’s findings also drawing negative press, Mr Macierewicz has stood his ground.

Law and Justice also got a new spokesperson in the name of Andrzej Duda. This came after the party’s former spokesperson and regional

leader, Adam Hofman, suspended his membership of Law and Justice after the Central Anti-Corruption Bureau (CBA) requested his parliamentary immunity be removed.

The request came after CBA discovered Mr Hofman had received z∏.100,000 in his bank account on which he had failed to pay tax. Mr Hofman says the money was a loan from a friend.

John Beauchamp, Remi Adekoya

The Gdaƒsk Shipyard Group, a unit of Ukrainian holding ISD, is considering filing for the bankruptcy of shipyard Stocznia Gdaƒsk, Dziennik Gazeta Prawna reported. The motion may be submitted to court by January 2014.

The 75-percent shareholder of the shipyard is considering such a move due to the lack of an agreement with the state-managed Industrial Development Agency (ARP), which holds a 25 percent stake. ●

NEWS

DECEMBER 2-8, 2013

www.wbj.pl

UN climate summit

KGHM to build factory in Serbia

Mild climate for change The UN climate summit in Warsaw ended without a firm compromise despite talks going into overtime. After a 36-hour negotiation marathon, no timetables were agreed, with participating states only deciding that they will have until the first quarter of 2015 to publish their plans on how much they will curb their emissions.

The timetable was supposed to be agreed upon in Warsaw so that countries would have had time to iron out any kinks and implement much needed changes. With the deadline pushed back, this leaves little time to work out a compromise before the crunch conference in Paris in 2015.

Developed vs developing The battle lines have been drawn. On one side there are developed nations, including most of the EU member states and the US, while on the other side of the barricade there are the developing nations, led by India and China, one of the world’s biggest polluters.

The developed nations, which are responsible for the bulk of global greenhouse gas emissions, agree they are responsible for global warning, yet some are wary that agreeing on significant cuts will harm their economies, while other states think they shouldn’t be the only ones held responsible.

After all, China, India – and to a lesser extent Poland – are also responsible for much of the

CO2 emissions and should pay up as well. These countries are obviously not keen on doing so, and claim that the “historical responsibilities” for climate change lie with the first nations to industrialize.

“As countries think forward about what might happen in Paris, there were some quite clear differences in the way that different countries conceived the structure of the agreement, particularly with respect to the classic developed-developing country divide,” said US climate envoy Todd Stern.

The US and EU point out that the tables have turned on historic responsibilities, however. Emissions from emerging economies such as China and India are growing so fast that by 2020, the date when the new climate agreement is supposed to come into force, the combined emissions from developing countries will overtake

Polish metals mining giant KGHM is talking to Serbia’s RTB Bor about the potential construction of an explosives factory, the Serbian firm’s CEO Blagoje Spaskovski told Serbian television RTV. The new unit could provide 50 jobs. It would supply explosive materials to the states of former Yugoslavia and to African countries.

COURTESY OF J.L. UMEA (CCAFS)

The soft consensus reached at the climate conference in Warsaw extends the time for countries to announce their plans on curbing greenhouse emissions

A deal was reached after 36 straight hours of negotiations those of rich nations.

Limited success Nevertheless there has been some good news coming out from Warsaw. The REDD+ mechanism was finally agreed upon. The plan is earmarked to keep the world’s remaining forests standing by reducing emissions from deforestation and degradation.

The new Warsaw international mechanism was agreed upon as well. According to the plan, developing countries will receive compensation from developed countries for the damages they suffer from extreme weather. Such compensation won’t be linked to any liability however.

Jacek Ciesnowski

Domestic

Deputy defense minister resigns amidst bid-rigging investigation The corruption scandal, which resulted in 20 arrests in late November, may bring down some top military officials

Unfair attacks COURTESY OF ISAF

General Waldemar Skrzypczak has resigned from the post of deputy minister of national defense, the ministry said last week. His decision is related to recent media reports suggesting the minister could have favored certain companies in a public tender conducted by Poland’s Military Property Agency in 20052013.

“I would like to assure that throughout my term of service I have always seen the wellbeing of the Polish Army as my goal,” Mr Skrzypczak wrote in his statement.

The tender is currently being investigated by the Cen-

Office and the head of the Foreign Affairs Ministry’s procurement office.

The reason why these two cases may be connected is that one of the detainees, Monika F. (name withheld in accordance with Polish privacy laws), a former employee of the Ministry of Foreign Affairs had previously worked for the Military Property Agency, the agency’s spokesperson Ma∏gorzata Goliƒska said.

Waldemar Skrzypczak tral Anti-Corruption Bureau (CBA). Although the CBA has not officially revealed the reason for the inspection, media reports say the case may

be linked to a larger bid-rigging scandal. The case has already resulted in 20 arrests, including the vice president of Poland’s Central Statistical

For the past few months, a number of press reports had been surfacing about Mr Skrzypczak and his connections with large arms companies, including Israeli firms.

Additionally, the daily Gazeta Wyborcza recently published Mr Skrzypczak’s letter to a high-ranking official in the Israeli Ministry of Defense, suggesting that the

winner of a Polish Army tender for drones had been settled before the tender was even announced.

In September, Military Counterintelligence did not extend Mr Skrzypczak’s rights to be privy to secret information. He submitted an appeal to the prime minister soon after, although it was not reviewed before Mr Skrzypczak decided to relinquish his ministerial post.

“Though state institutions have not put forward any charges against me, I have become an object of unfair attacks which have become a burden to the prime minister, the government and the minister of national defense,” Mr Skrzypczak said.

The CBA’s inspection in the military agency started last week and is scheduled to continue through to February KW, BKS, JB 2014.

CEE leaders woo Chinese investments in Bucharest talks Polish Prime Minister Donald Tusk met with regional CEE leaders and China’s Premier Li Keqiang at a joint summit in the Romanian capital of Bucharest last week.

“The CEE region is experiencing the best relationship with China in history,” Mr Tusk said at the meeting, which hopes to win over Chinese businesses investing in the region.

“The fact that Poland here is the initiator also has consequences for Polish-Chinese relations and for the whole CEE region as well,” Mr Tusk told journalists in Bucharest, maintaining that “Warsaw is treated as a regional hub for future financial services as well as logistics.”

Mr Li announced before the summit that Beijing will loan $10 billion to improve

infrastructure in the region.

Furthermore, the Asian country wants to increase foodstuff imports from CEE, as China’s demand for food is “constantly increasing,” Mr Li told Romanian daily Adevarul.

Mr Tusk additionally pushed for greater bilateral promotion in tourism between the CEE region and China, calling for an “ambitious” scholarship program to allow

5,000 students from Central Europe to study in China.

The summit follows Warsaw’s initiative in April 2012 to invite China to discuss cooperation and investments in the CEE region. This year the summit was attended by sixteen heads of government from the region, including non-EU members such as Albania, Bosnia and Herzegovina, Montenegro and Ser-

5

bia.

Speaking at the summit, Li Keqiang said that his country will “make a major push” to expand investment and trade with the CEE region. “2014 will be designated as the year for the promotion of investment and trade between China and CEE countries,” Mr Li said, cited by the Xinhua news agency.

JB

Milestone Medical Warsaw listing a success Shares in US-based innovative medical devices producer Milestone Medical jumped by as much as 49.5% on opening during the company’s debut on the NewConnect market of the Warsaw Stock Exchange last Thursday. The company is a joint venture between US firm Milestone Scientific and its Chinese business partner Beijing 3H (Heart-Help-Health) Scientific Technology. It is the first US company to be listed on NewConnect.

WSE nears second stage of talks with CEESEG The Warsaw Stock Exchange has completed the first stage of talks with the CEE Stock Exchange Group and the recommendations are positive, the Warsaw bourse’s CEO Adam Maciejewski said at a press conference last Wednesday. “We are counting on moving to the second stage of talks within several weeks,” Mr Maciejewski said. This stage usually involves a due diligence process.

Polkomtel to take over Invest-Bank Mobile phone operator Polkomtel, which manages the Plus network, will take over lender Invest-Bank, Puls Biznesu reported.

The deal is expected to be finalized by the end of Q1 2014. It will also involve changing the lender’s name to Plus Bank. Both companies belong to the capital group owned by well-known businessman Zygmunt Solorz-˚ak. ●

6

BUSINESS

www.wbj.pl

DECEMBER 2-8, 2013

Energy

Treasury after energy colossus

When asked about the idea to create one huge energy conglomerate, Treasury Minister W∏odzimierz Karpiƒski said that “It is a very interesting project which I am not unfamiliar with. The first half of 2014 is the time when such concepts will evolve.”

Mr Karpiƒski added that at present there are separate strategies for utilities PGE, Tauron, Enea and Energa.

Further decisions may be made once the country’s energy policy is revised.

Sector giants It’s not the first time that the Treasury is mulling consolidation in the sector. However, in the past such moves were blocked by Office of Competition and Consumer Protection (UOKiK), a consumer watchdog.

In 2009, when PGE planned to take over its peer, Energa, UOKiK blocked the

merger saying that it would not be favorable for the sector. If the Treasury follows up on the idea, the UOKiK’s decision would likely be the same. Mr Karpiƒski said the watchdog’s opinion will be taken into consideration in the process.

The ministry’s idea follows a recent trend of grouping state-controlled companies from one sector into giant holdings. In 2012, chemical companies Zak∏ady Azotowe in Tarnów and Pu∏awy were merged into the overarching Grupa Azoty.

In the defense sector, some 40 smaller companies are part of the Polish Defense Holding (formerly known as Bumar), and the industry will be consolidated even further, with Prime Minister Donald Tusk announcing that the new sector group will consist of some 50 companies, including those encompassing Polish Defense Holding.

Too big to fail Such huge companies can obviously use their dominance in the sector to their advantage, which, since they are state-controlled, would – at least in theory – bring more money into state coffers. They

The big four State-controlled giants Company

Share in distribution

Share in production

PGE

29%

41%

Tauron

26%

17%

Enea

15%

8%

Energa

15%

SHUTTERSTOCK

The Treasury Minister has announced that he’s mulling the rolling of statecontrolled energy companies into one sector giant

2% Source: companies

State-controlled utilities distribute 85 percent of electricity in Poland can also carry out projects which private companies would not be interested in, as they would simply be unprofitable for them. This could be seen in the case of the Opole power plant extension, where the government forced PGE into agreeing to carry it out, despite the company’s initial decision to cancel the project

due to its unprofitability.

But the companies’ size could also be their disadvantage. If market sentiment worsens, such companies and the baggage of their financial problems will cause huge headaches for the state. Closing or restructuring them would be costly and politically unpopular, as could be seen in

the case of construction company Polimex-Mostostal, which due to the crisis in the sector was on the verge of collapse. Yet because the company is carrying out many energy projects for state-controlled companies, shutting it down would result in the delay or even the cancellation of many of them.

For this reason, the stateowned Industrial Development Agency bought 22 percent of Polimex shares for z∏.150 million in 2012. So far it has saved the company from going under, but that’s probably not the end of the cash which the state will have to pump into it.

Jacek Ciesnowski

PAIiIZ with nearly €4 billion worth of investment projects The Polish Information and Foreign Investment Agency (PAIiIZ) has successfully concluded 45 investment projects worth €789.7 million so far this year. Investors have declared the creation of 17,363 jobs.

PAIiIZ is currently working on 154 foreign investment projects. Their total value amounts to €3.88 billion and they are expected to provide 29,690 new jobs, the institution said.

The largest number of investment projects are from US companies (38 projects, €887.45 million), Germany (24 projects, €442.1 million) and China (11 projects, €300 mil-

Investment podium Top three foreign investors in terms of value Country

Number of projects

Number of jobs

Value

US

38

6,329

€887.45 million

Germany

24

4,527

€442.1 million

China

11

2,885

€300 million

Source: Polish Information and Foreign Investment Agency

lion). Next comes Japan with 10 projects as well as the UK and South Korea with 9 projects each.

The most popular sectors are BPO (33 projects, €25.4 million), automotive (31 projects, €1,233 million) and R&D

(13 projects, €21.04 million).

In terms of jobs created, the automotive industry is in the lead with 8,666 workplaces, followed by BPO with 7,350 jobs. The R&D sector comes third with 1,294 jobs created.

KW, BKS

Retailers plan expansion Portuguese retailer Jeronimo Martins has earmarked €2.2 billion on capital expenditure over 2013-2015, the company said last week. Some 60-70 percent of that amount will be spent on the expansion of its Polish discount store network Biedronka.

Jeronimo Martins plans to open at least 800 new Biedronka stores and 200 Hebe cosmetics stores in Poland by the end of 2016. The group

expects its sales revenue to grow by 12-15 percent over the next three years. The company had earlier said it would spend €2.5 billion on investment.

Small and medium-sized retail schemes (about 1,000 sqm per store) are developing faster than large hypermarkets, according to Andrzej Faliƒski from sector association POHiD. In the next few years retail networks may

spend up to z∏.6 billion annually on expansion in Poland, mainly on the construction of smaller units, Mr Faliƒski told daily Rzeczpospolita.

Companies are also investing in existing stores, adding new services and refurbishing older buildings. Over the past 20 years foreign retail networks invested over z∏.50 billion in Poland.

KW, BKS

BUSINESS

DECEMBER 2-8, 2013

Transport

The concept of a central airport dates back to the early 2000s, when the transport ministry was considering various scenarios on how to facilitate the increasing number of air passengers.

The ministry looked into possible locations for the airport. The process took a few years, without any decisions being made. The resort recently ordered an in-depth analysis of Polish airports and ways on how to upgrade

7

Up in the air

Poland to have a central airport?

With Warsaw Chopin Airport servicing over 10 million passengers a year, the idea of building a new regional transport hub has resurfaced yet again

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them. The authors of the report will have to propose a location for the new central airport, as well as the means of financing its construction.

The new airport would be placed between Warsaw and ¸ódê (the third-largest city in Poland, located some 120 km from Poland’s capital) and serve as a regional transport hub.

Broken records But since the early 2000s, a lot has changed in central Poland, as well as its airports.

Just last week, Warsaw Chopin Airport broke the 10 million-passenger threshold and expects that the number will grow to 10.6 million this year compared to 9.59 million in 2012 – far more than the

government scenarios from the turn of the century envisaged.

And that’s not the end of Warsaw’s biggest airport expansion. Its management expects that due to various adages and modernizations, it should be able to handle 25 million passengers annually by 2037. In addition to that, the recently built Modlin airport, situated some 40 km north of Warsaw, can also handle up to 2 million passengers per year.

Nevertheless, Micha∏ Marzec, CEO of Porty Lotnicze – a state-owned company which operates Warsaw Chopin Airport and has minority stakes in various other Polish Airports – said that if the ministry decides to

build a new airport (or expand already-existing regional facilities), his company will be able to provide funding.

Excessive ambitions That might be difficult, however, as a central airport would most likely not be cofinanced by the EU. Janusz Lewandowski, European Commissioner for Financial Programming and the Budget, has recently said that “Poland has excessive ambitions when it comes to building airports,” saying that the country already has more airfields than it needs.

Recently, the European Commission quizzed Tri-City authorities as to why they have ambitions to turn the current military airport in

All major Polish airports Airport

number of passengers serviced in 2012 (in thousands)

Warsaw Chopin

9,567

Kraków

3,408

Lech Wa∏´sa (Gdaƒsk)

2,861

Katowice

2,518

Wroc∏aw-Starachowice

1,942

Poznaƒ-¸awica

1,560

Modlin

857

Rzeszów-Jasionka

562

¸ódê

463

Szczecin-Goleniów

347

Bydgoszcz

328

Lublin

5

Gdynia-Kosakowo

under construction

Radom

under construction

Mazury-Szymany

under construction Source: Polish Civil Aviation Office

Kosakowo into a civilian one – using EU funds – when there is the Lech Wa∏´sa airport a mere 25 kilometers away.

Poland currently has 13 airports used by commercial airlines, with an additional three under construction.

With three airports in the Mazowieckie voivodship alone (the third being Radom airport currently in the final stages of development), the question remains: does the region need yet another one?

Jacek Ciesnowski

State auditors to probe PGNiG-Qatargas deal Poland’s Supreme Audit Office (NIK) is to look into a deal made between Polish gas giant PGNiG and the Qatari state-run Qatargas for the delivery of liquefied natural gas (LNG) at Poland’s new terminal on the Baltic.

The move comes after concerns that the contract, which

was signed in 2009, will see Poland paying over the odds for the delivery of 1 million metric tons of LNG when the terminal in ÂwinoujÊcie opens in 2015.

Following a report published by NIK in October, which slammed PGNiG’s contracts with Russia’s Gazprom

in 2006-2009 as being overpriced, auditors have now turned their attention to the Qatari deal.

According to Andrzej Szcz´Êniak, a fuel market analyst, the Qatargas contract isn’t financially feasible. “PGNiG’s Qatari gas is a lot more expensive than its Russian counter-

part, and that gives the Russians a reason to hike prices,” he told Rzeczpospolita.

Based on current prices, Reuters reports that the “Qatari imports would cost a third more than what Russia charges for deliveries to Europe.”

“We examine all these

kinds of contracts, which are key to the Polish economy. We will also undoubtedly examine the contract with Qatar on the liquefied gas supplies,” Audit Office spokesman Pawe∏ Biedziak told the news agency.

However, sources state that the contract will only come under scrutiny next year, or

possibly in 2015 after the LNG deliveries get under way.

Meanwhile, PGNiG is set to renegotiate its deal with Qatargas. “We have called up a special group of experts, and we are in constant communication with the Qatari side,” a PGNiG source told RzeczJB pospolita.

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8

INTERVIEW

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DECEMBER 2-8, 2013

Political scene

A new liberalconservative party?

Ewa Boniecka: You have just completed a tour of all the Polish voivodships, meeting thousands of people with whom you spoke about the creation of a liberal-conservative political movement. What conclusions have you managed to draw?

Jaros∏aw Gowin: I have seen the results of recent social surveys which state that two-thirds of Poles do not have a party which they would be willing to vote for. So there are great expectations for a new political initiative, and from my observations it is clear that people are waiting for a liberal party which will be close to the cen-

ter of the political scene.

My conclusion is that it has to be a movement concentrated on a liberal approach to the economy. A great part of this disillusioned electorate is convinced that private initiatives work best in such an economy.

Yet at the same time, these liberal economic supporters are opting for traditional values.

To my surprise, this opinion was recently confirmed by Janusz Palikot [leader of the liberal party Your Move], who stated that according to his own findings, people who have a liberal attitude towards the economy are now even more conservative in the domain of

COURTESY OF JGOWIN.PL/SZYMON SZYNDLAR

Jaros∏aw Gowin, a former justice minister in Donald Tusk’s government before quitting Civic Platform, sits down with WBJ to talk about his efforts at building a political liberalconservative association, his future political aims and his assessment of Polish politics

Jaros∏aw Gowin wants to woo voters with a new liberal-conservative movement

INTERVIEW

DECEMBER 2-8, 2013

ethical issues than ever before.

I share his diagnosis: I think that Polish society is among the most conservative in Europe and this also regards our middle class.

While you are organizing a liberal-conservative association, other politicians are setting up Europe Plus, a center-left alliance. Does this mean that the current political reality created by Civic Platform and Law and Justice is crumbling?

Maybe not crumbling, but certainly the setup on the political scene is less stable than twothree years ago, so there is more room for possible change. The two main parties – Civic Platform (PO) and Law and Justice (PiS) – seem to be in a state of flux. While PO is now totally shapeless and lacks any direction as the ruling party, PiS is turning towards a socialist economic program.

When I entered politics eight years ago and joined the Civic Platform, it was a party identified with the right, but in 2005 Donald Tusk began to change the party’s stance, transforming PO into a centrist party and now taking it to the center-left. So people like myself, who have liberal-conservative views, had to make many difficult compromises to support the party. After my departure from PO, I am now determined to build a political organization with a defined identity which gathers people with liberal and conservative views.

There is growing fatigue among voters, as well as among many politicians, of the idle conflict between PO and PiS. Simultaneously, a new generation of politicians are emerging on the scene who feel blocked from promotion.

I am now searching for supporters and partners. With thousands of people who are coming to our meetings, we will now try to choose those most motivated individuals who are willing to engage in my project. Among them are people who until now did not engage in politics; very young people for whom my offer means their introduction to politics, but there are also academics, members of local governments at all levels, as well as entrepreneurs.

What are the next steps in building your association, which for the time being remains nameless? Will you transform it into a party?

The political association is being built at a grassroots level, and for now I have no intentions of transforming it into party. In December we will organize a convention in Warsaw, at which the association will be formally established and we will choose a name for it.

I am formally collaborating with Przemys∏aw Wipler from

gantuan barrier to our economic development and furthermore a source of corruption.

How do you want to define the state’s role in the economy and society?

After 1989 Poland achieved many spectacular successes, but we did not manage to build a well-functioning state. Our state is overblown and ineffective.

I am in favor of a state with limited interference, therefore I am against overblown social

“The law is currently constructed in such a way that instead of supporting economic freedom, it destroys it.” the Republican Association and Pawe∏ Kowal from Poland Comes First. At the Warsaw convention we will decide whether we will present a list of our candidates for the European parliementary election next year. We will also decide whether to transform the association into a party, and I want to stress that if we decide to do so, it would still be based on a large social foundations It will not be a party of one dominant leader, neither will it be a party of “three tenors.”

All Polish political parties are in favor of a free market economy, so what is the essence of your program for building a liberal economy?

It is one thing is to talk about a free market economy, which Polish parties are doing. However, in practice they are actually creating various barriers for economic development.

Building a real liberal economy, which I want, is another matter. I would like to simplify the law, which is currently constructed in such a way that instead of supporting economic freedom, it destroys it. I want to simplify the tax system and reduce taxes as a consequence.

I am for the introduction of a flat tax rate. I want quicker privatization in our economy, and I am against nationalizing the OFE pension system, which PO is currently doing. I want to change the Public Procurement Act, which is now a gar-

services. I think that people should deal with their problems themselves and the state’s role here should be limited.

You expect your future party to gain 10 percent of the ballot in local elections next year and 20 percent in the parliamentary elections in 2015. If these presumptions materialize, which party would you want to team up with to form a coalition in government?

Today I am standing at an equal distance between PO and PiS. If a situation occurs whereby neither of those parties gains enough votes to form a government and my party is in a position to become a coalition partner, we will present our program and form a coalition with the party which will accept the majority of our proposals.

Wouldn’t this make your eventual party appear opportunistic?

Among Polish politicians I definitely belong to those who pay the most attention to the program I stand for. I have no troubles with defining and declaring my views and I have proved this many times.

Mulling the possibility of entering a government coalition in order to realize my program has nothing to do with being an opportunistic party.

What I am proposing is actually the opposite of such a description. ●

Jaros∏aw Gowin Jaros∏aw Gowin began his political career in 2005 when he became a senator for Civic Platform (PO). Two years later he won a seat in the Sejm lower house of parliament, and after PO won a second term in 2011, he was promoted by party leader Donald Tusk to become Minister of Justice.

Mr Gowin is forthright in his views on civil unions, gay rights – he declared himself an opponent of “homosexual ideology” – as well as his views on assisted conception, drafting a restrictive bill on in-vitro fertilization. Not always towing the party line, he was seen as

the leader of the conservative faction of PO, and often found himself at the center of inner-party disputes on policy, earning him a dismissal from his ministerial post in May this year.

However, the growing rift between Donald Tusk and Jaros∏aw Gowin finally reached its zenith in early September, when the former Justice Minister announced his decision to quit PO. He is now working on a new grassroots liberal-conservative association along with two other conservative politicians, Przemys∏aw Wipler and Pawe∏ Kowal. ●

www.wbj.pl

9

10

OPINION & ANALYSIS

www.wbj.pl

DECEMBER 2-8, 2013

Big Banks’ Shadow Dance Simon Johnson

O

ne of the great myths propagated by very large financial institutions is that, if they were to become effectively regulated again, many investors and financial transactions would flee to “shadow banks.”

That sounds bad. Anything that lurks in shadows must have nasty intent, potentially dangerous consequences, or both. And its very shadowiness implies that nothing can be done about it – whatever is there must be beyond the reach of regulation or effective supervision. So perhaps financial-system risk would increase, not decrease, if we regulated very large non-shadow banks properly.

Shadow activity So much for scary fairy tales. In reality, there are three kinds of “shadow” activities, all of which are obvious, operate in plain sight, and could be controlled in a straightforward and responsible fashion. Whether we have the political will to implement effective controls is, as always, another question – in large part because the big banks are very powerful and they would like the shadows to remain as shadowy as they are now.

The first set of shadow activities includes those conducted by the banks themselves, for example, as a way to reduce the amount of equity funding that they need. The people who run big banks like leverage: More borrowed money (and less of their own) means that they get more upside, in the sense of a higher return on capital, unadjusted for risk. When things go against them, it also means more losses. But that is why it is good to be big – you can get more downside protection from the Federal Reserve or other official sources.

For example, Citigroup created socalled “special-purpose vehicles” to invest in mortgage-related securities prior to 2007. They funded this activity with a lot of short-term debt and a wafer-thin cushion of equity. When the market boomed, such schemes’ authors were heralded as geniuses. But when house prices fell and mortgagebacked securities (and derivatives based on them) became illiquid, Citigroup took the liabilities back onto its balance sheet – and then needed to be rescued through massive, repeated bailouts.

“Captured” regulators These shadow activities were the work of Citigroup and other large complex financial institutions that are subject to regulation. Their boom-and-bust character reflected nothing more than the relevant regulators’ failure – or refusal – to understand the risks involved. The regulators were “captured” – meaning that they identified so closely with the intellectual perspective and worldview of large complex financial institutions that they were persuaded to allow something that was actually very dangerous.

Unfortunately, despite all we have been through in the past five years, these big banks’ shadows survive in various forms today – and regulators do not seem sufficiently inclined to turn on the lights.

The second set of shadow activities involves banking-type activities that really are conducted outside banks.

The most prominent example is money-market mutual funds. These entities take money from investors and buy various kinds of assets, some of which may be risky – like short-maturity corporate debt.

The problem is that these funds create the impression that anything

invested with them is just as safe as a deposit at an insured bank. You can write checks on a money-market account, and your monthly statement shows it to have a stable value – just like your bank account. In fact, the value of assets held by such funds fluctuates, and it is only an accounting convention – permitted by regulators – that allows them to report a stable value. As a result, when the possibility arises that a money-market fund will be unable to pay investors in full – as happened after the collapse of Lehman Brothers in September 2008 – all hell breaks loose.

There were similar fears recently when it became known that US-based money-market funds had lent heavily to European banks. And some leading US banks also rely on money-market funding; here, too, the “shadows” and the banks have aligned interests.

Simple fix?

There is a simple fix to this problem – require money-market funds to show the actual floating value of their assets, so that everyone understands that it is not a fixed number. Some US regulators are pushing in this direction.

Unfortunately, the money-market funds – and their friends in the big banks – are pushing back hard.

The third set of shadow activities includes those that may yet emerge.

We should not underestimate the creativity of financiers seeking to escape capital requirements and leverage up.

A brilliant book by Anat Admati and Martin Hellwig, “The Bankers’ New Clothes,” demonstrates the pervasiveness of this problem and highlights its potentially devastating consequences for the economy.

The right approach is to search for and prevent excessive systemic risk wherever it manifests itself. The US authorities now have a legal mandate to do this. But will they be able to stand up to the powerful lobby of big banks and their shadowy allies? ● Simon Johnson, a former chief economist of the IMF, is a professor at MIT Sloan, a senior fellow at the Peterson Institute for International Economics, and co-founder of a leading economics blog, The Baseline Scenario.

Copyright: Project Syndicate, 2013. Project-syndicate.org

Cities and Sustainable Development Jeffrey D. Sachs

T

acloban in the Philippines has now joined the growing list of cities – including New Orleans, Bangkok, Moscow, New York, Beijing, Rio de Janeiro, and Port-au-Prince, to name just a few – pummeled in recent years by climate catastrophes. Many of the world’s largest cities, built on seacoasts and rivers, face the threat of rising sea levels and intensifying storms.

So the new global development agenda now taking shape should empower cities to help lead the way to sustainable development in the twenty-first century.

The importance of cities in today’s world economy is unprecedented.

Until the Industrial Revolution, human history was overwhelmingly rural. Only around 10 percent of people lived in cities. Today, the share of urbanites is around 53 percent and is likely to rise to around 67 percent by 2050.

Because per capita incomes are higher in cities than in rural areas, the world’s cities today are estimated to account for more than 80 percent of global income, with the largest 600 accounting for around half. Most of the new jobs over the next few decades will be created in cities, offering livelihoods to hundreds of millions of young people and, as China and Brazil have demonstrated, helping to slash extreme poverty.

Innovation hubs Cities are also the innovation hubs for public policy. Every day, mayors are called on to get the job done for residents. They are the ones responsible for providing safe water, garbage col-

lection, safe housing, infrastructure, upgraded slums, protection from disasters, and emergency services when catastrophes hit. So it is not surprising that while national governments often are paralyzed by partisan politics, city governments foster action and innovation.

In the United States, for example, Martin O’Malley, Baltimore’s former mayor and now Maryland’s popular governor, pioneered the use of advanced information systems for urban management. New York City’s outgoing mayor, Michael Bloomberg, worked relentlessly to implement a new sustainability plan (called PlaNYC). And the city’s incoming mayor, Bill de Blasio, is championing a bold program of educational innovations to narrow the vast gaps in income, wealth, and opportunity that divide the city.

Sustainable development offers a new concept for the world economy in the twenty-first century. Rather than focusing solely on income, sustainable development encourages cities, countries, and the world to focus simultaneously on three goals: economic prosperity, social inclusion, and environmental sustainability.

Economic prosperity speaks for itself. Social inclusion means that all members of society – rich and poor, men and women, majority and minority groups – should have equal rights and equal opportunities to benefit from rising prosperity. And environmental sustainability means that we must reorient our economies and technologies to provide basic services like safe water and sanitation, combat

human-induced climate change, and protect biodiversity. Achieving these three goals will require good governance, public finance, and effective institutions.

Front lines Cities will be in the front lines of the battle for sustainable development.

Not only do they face direct threats; they also have the best opportunities to identify and deliver solutions. As highdensity, high-productivity settlements, cities can provide greater access to services of all kinds – including energy,

The advances in materials science open the possibility of much more energy-efficient residences and commercial buildings. Cities also give rise to the opportunity to combine public utilities, as when urban power plants use the steam released in electricity generation to provide hot water and heating to residents.

Metropolitan scale Yet technology will be only part of the story. Cities need to upgrade their governance, to allow for a greater role for poorer and more marginalized com-

“Sustainable development encourages cities, countries, and the world to focus simultaneously on three goals: economic prosperity, social inclusion, and environmental sustainability.” water, health, education, finance, media, transport, recycling, and research – than can most rural areas.

The great challenge for cities is to provide this access inclusively and sustainably.

A significant part of the solution will come through advanced technologies, including information systems and materials science. The information and communications revolution has spawned the idea of the “smart city,” which places the relevant technologies at the heart of systems that collect and respond to information: smart power grids, smart transport networks (potentially including self-driving vehicles), and smart buildings and zoning.

munities, and to enable much more effective coordination across city lines when a metropolitan area is home to many individual cities. Metropolitan governance is therefore crucial, as smart cities require networks that operate at the metropolitan scale.

When the metropolitan scale is recognized, the importance of leading urban areas is even more remarkable.

New York City has around 8.4 million people, but the NYC metropolitan area has roughly 25 million people, with an economy estimated at about $1.4 trillion per year. If this metropolitan area were a country, it would rank about 14th in the world in GDP terms.

A wise political doctrine known as subsidiarity holds that public-policy

challenges should be assigned to the lowest level of government able to address them, thereby ensuring maximum democratic participation in problem solving and the greatest opportunity to tailor solutions to genuine local needs. While some issues – for example, a national highway or rail system – require national-level problem solving, many key challenges of sustainable development are best confronted at the urban level.

The world’s governments are now negotiating the Sustainable Development Goals, which will guide the world’s development agenda from 2015 to 2030. In an important meeting on September 25, the United Nations General Assembly agreed that the SDGs would be adopted at a global summit in September 2015, with the next two years used to select the priorities.

An urban SDG, promoting inclusive, productive, and resilient cities, would greatly empower tens of thousands of cities worldwide to take up the cause of sustainable development for their own citizens, their countries, and the world. ● Jeffrey D. Sachs, Professor of Sustainable Development, Professor of Health Policy and Management, and Director of the Earth Institute at Columbia University, is also Special Adviser to the United Nations Secretary-General on the Millennium Development Goals. His books include “The End of Poverty and Common Wealth.”

Copyright: Project Syndicate, 2013.

Project-syndicate.org

OPINION & ANALYSIS

DECEMBER 2-8, 2013

www.wbj.pl

11

Russia’s View of the Iran Deal and US Plans for Central Europe T

Stratfor

For years, Russia has demanded legal guarantees from NATO and the United States that the system would not target its strategic nuclear deterrent. This issue has been a constant sticking point in talks between Moscow and the West over ballistic missile defense.

But there is a broader issue regarding ballistic missile defense that goes beyond the specifics of a system and legal guarantees: the battle between the United States and Russia for influence in Central Europe. Ever since the fall of the Soviet Union, Russia has been worried by what it sees as the West’s never-ending encroachment in its near abroad. The wave of NATO and EU expansion during the late 1990s and early 2000s occurred at a time when Russia was weak and came at great geopolitical cost to Moscow.

Now Russia is stronger, but it still views any US- or NATO-led military moves in Central and Eastern Europe through the same prism of interference, especially in what Russia deems as its sphere of influence. Russia thus views the ballistic missile defense system as an excuse for the United States

“United States is not yet in a position to meaningfully challenge Russia in its near abroad through more direct forms of military assistance.” ment of the ballistic missile defense system could one day challenge Russia’s intercontinental missile arsenal, which it relies on as its primary strategic deterrent. As the European Phased Adaptive Approach becomes more robust – currently it is not much of a direct threat to Moscow, based on capabilities and placement – it could seriously threaten Russia’s ballistic missile capabilities in the long term.

to deploy military personnel in some of the most strategic borderland states of Europe.

For Russia to raise the ballistic missile defense issue again immediately after the Iranian nuclear deal reveals two things. The first is Russia’s more recent role in facilitating US policy in the Middle East. This began with Russia developing a diplomatic resolution to the chemical weapons crisis in Syria

reaching con-

SHUTTERSTOCK

he landmark agreement the P-5+1 and Tehran reached last week regarding the Iranian nuclear program is having effects beyond the immediate region. Speaking at a media forum in Rome last Monday, Russian Foreign Minister Sergei Lavrov said the deal obviates the need for NATO’s ballistic missile defense plans in Central Europe, given that the system – championed by the United States – was designed to counter potential missile threats from Iran. Mr Lavrov noted that if the deal is implemented as planned, then “the stated reason for the construction of the defense shield will no longer apply.”

NATO’s ballistic missile defense plans in Central Europe have long been one of the most contentious issues between Moscow and Washington. These plans, known as the European Phased Adaptive Approach, involve placing interceptor bases in Romania and Poland that are capable of shooting down various-ranged ballistic missiles. These are set to become operational in 2015 and 2018, respectively. The groundbreaking ceremony at the site in Romania took place last month.

While the European Phased Adaptive Approach is technically and officially designed to counter missile attacks specifically from Iran, the plans have drawn substantial concern from Russia. Moscow considers any NATOrelated military buildup in Europe a potential threat, and Russia fears that the technology used in the develop-

and saving the United States from engaging in another unpopular military intervention in the region. The Syria resolution then opened the door for Iran and the United States to negotiate. Despite its reservations over a US-Iranian rapprochement, Russia knew it could do little to derail the process and calculated instead that its cooperation in the deal – as opposed to its obstruction – would give Russia substantial leverage in other more pressing issues with the United States. It is likely that NATO’s ballistic missile defense plans for Central Europe would be on the top of Moscow’s list of such issues.

The second revelation is the far-

sequences of the Iranian nuclear settlement.

Not only does a potential US-Iranian understanding lead to a realignment of the balance of power in the Middle East, but it also carries the potential for changes in a host of other regions, from Afghanistan to the Caucasus to Central Asia. The same could be said for Central Europe, considering how it intersects with US-Russian negotiations that run parallel to USIranian talks.

How the Iranian nuclear agreement will actually affect the European Phased Adaptive Approach remains to be seen. The agreement is still in its initial phase and is subject to numerous obstacles and complications over the coming months. There is a big difference between the United States’ conditional easing of certain sanctions on Iran and the official recognition that Iran no longer poses a military threat

t o t h e United States or its European allies.

Moreover, Washington has been careful to reassure the Central European states that they are not being abandoned as a result of the Iran talks and accompanying negotiations with Russia. Earlier in November on a visit to Poland, US Secretary of State John Kerry said the deployment of the European Phased Adaptive Approach would not be contingent on the Iran issue. So far, the United States has chosen to say little about ballistic missile defense, with mid-tier US officials reiterating that the US administration is willing to engage in dialogue with the Kremlin over the issue though not yet showing signs of backing away from the European Phased Adaptive Approach as part of a bargain with Moscow.

Russia can be expected to continue pushing the issue, however, making clear to the United States that the price for its continued cooperation in the Middle East is Washington’s tempering of its military aid for Central European countries. Russia will try to push the United States into a corner by exposing the eroding foundation of US ballistic missile defense plans now that Iran is on the path to losing its pariah status. On the one hand, the weakening Iran pretext is making it difficult for the United States to justify the development of its ballistic missile defense strategy; on the other hand, the United States is not yet in a position to meaningfully challenge Russia in its near abroad through more direct forms of military assistance, especially while trying to tie up a number of loose ends in the Middle East. This state of limbo is exactly where Moscow wants Washington – with Poland, Romania, Ukraine and others watching and wondering whether they can still count on the United States for support when they need it most. ● This edited version of “Russia’s View of the Iran Deal and U.S. Plans for Central Europe” is reprinted with permission of Stratfor Stratfor.com

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COVER STORY

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DECEMBER 2-8, 2013

International

Ukraine snubs EU deal Remi Adekoya Poland’s eastern neighbor refused to sign a trade agreement with the European Union even though Brussels withdrew from all its preconditions. But the EU should not turn its back on Kiev However, others have suggested that Mr Yanukovych never intended to sign the agreement with the EU in the first place, rather using Brussels as a bargaining chip to win significant financial concessions from Russia. Mr Yanukovych’s decision came despite nationwide protests in his country at his refusing to sign the Association Agreement.

Last minute efforts During the summit, EU officials still tried to change Kiev’s mind, signaling possible economic incentives in talks with Ukrainian officials. Brussels even withdrew all the preconditions it had been demanding of the Ukrainian government in the Association Agreement negotiations, including the release of the former prime minister of the country, Yulia Tymoshenko, who has been in jail since 2011 for charges

SHUTTERSTOCK

Ukrainian president Viktor Yanukovych rejected lastminute attempts by European Union officials to convince him to sign a historic trade deal with Brussels, which would have marked a significant westwards shift in the country’s foreign and economic policy.

The Association Agreement was originally expected to have been signed at the Eastern Partnership summit in Vilnius, which took place on November 28-29, but Mr Yanukovych called off negotiations on the deal a few days before the meeting.

It has been widely reported that the Ukrainian president was under intense pressure from his Russian counterpart Vladimir Putin not to sign the agreement with the EU, as Moscow considers Ukraine part of its traditional sphere of influence.

Some say Viktor Yanukovych took the EU for a ride related to abuse of office. The EU has described her imprisonment as “selective justice.”

EU diplomats told Reuters a preliminary understanding

had been reached in Vilnius in talks before the summit, but that the Ukrainian president had still rejected the deal.

Meanwhile, Mr Yanukovych

stated that while Ukraine still intended to sign an agreement with the European Union in the future, his country was in need of a financial aid pack-

age, in order to prop up its ailing economy. The Ukrainian president described the EU financial offer on the table, worth €600 million as, “humil-

COVER STORY

iating.”

Instead, Mr Yanukovych said Ukraine would need at least €20 billion a year to cover the costs of upgrading its economy to “European standards.”

In response, EU Enlargement Commissioner Štefan Füle said that “The Ukrainian economy needs huge investments but these are not costs.

They represent future income, more growth, more jobs and more wealth.”

“The only costs that I can see are the costs of inaction allowing more stagnation of the economy and risking the economic future and health of the country,” Mr Füle added.

Meanwhile, at his meeting with EU officials during the Eastern Partnership summit, Mr Yanukovych listed his country’s economic problems, including the high prices Ukraine has to pay for Russian gas. The Ukrainian government has heavy financing needs in the upcoming 18 months and will need over $17 billion in 2014 just to meet its gas costs and debt repayments.

German Chancellor Angela Merkel stated Europe could provide natural gas to Ukraine in the future but Europe’s current technical ability to supply gas to Ukraine for long periods is limited.

Butt out At a press conference after the summit, EU Council President

Herman Van Rompuy said the parties had been “really close” to signing the Association Agreement, adding that “We need to overcome pressure from abroad,” no doubt in reference to Mr Putin.

European Commission President Jose Manuel Barroso echoed Mr Van Rompuy’s stance, saying it was unacceptable to have “any third-party involvement” in a bilateral agreement negotiated between the EU and another nation.

The next opportunity for Ukraine and the European Union to sign the Association Agreement will now be the EU-Ukraine summit scheduled for March 2014, presidential advisor Andriy Honcharuk told Interfax-Ukraine.

Mr Honcharuk expressed the hope that by that time a joint working group will have worked through all the controversial issues.

But speaking of controversial issues, after announcing his country’s decision not to sign the trade agreement with the EU, Mr Yanukovych hardened his rhetoric regarding Ms Tymoshenko. The Ukrainian president said the former prime minister was part of a “ring of criminals” and that her fate should lie in the hands of Ukrainian judges.

“Ukrainian courts, which she has been evading and thereby obstructing justice,

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13

should give the answer. What does the European Union have to do with this? Is the European Union a court?” Mr Yanukovych said in a televized interview.

Not a total failure However, although Ukraine was supposed to have been the biggest prize for the EU, the summit did not end in complete failure. EU officials initialed association agreements with two other former Soviet republics, Georgia and Moldova, putting them on track to sign a final deal within a year.

An agreement to ease visa restrictions with Azerbaijan was also penned.

Belarus and Armenia likewise attended the summit, but there appears to be little hope of their moving closer towards the EU. Belarus is a member of the Russia-led customs union, which includes Kazakhstan, and which Armenia has also opted to join.

Disappointed yes, but we won’t give up “The summit in Vilnius did not meet our expectations. We will have to wait for better weather or for change in Ukraine today, tomorrow, in the future,” said Prime Minister Donald Tusk commenting the EaP summit.

“However, the fact that the summit took place with the

SHUTTERSTOCK

DECEMBER 2-8, 2013

Many Ukrainians don’t support their government’s decision to refuse to sign a free trade agreement with the EU participation of all the most important European politicians and that Europe has been convinced to expand and integrate more closely with its Eastern neighbors is a historic success,” he added.

The Polish prime minister also said Poland should continue being the country which sets the tone in Ukraine-EU relations.

“We shouldn’t be offended at Ukraine. We may be skeptical at the behavior of Mr Yanukovych and his administration, but we cannot project these feelings onto the whole process of integration and to

Ukraine as a whole,” he added.

Back to square one, for now It now seems unlikely that Ukraine will sign any free-trade deal with the European Union anytime soon, at least not for as long as Mr Yanukovych remains in power. The Ukrainian president seems to have made up his mind, that in the short term at least, it is better to be in Moscow’s camp than in Brussels’.

This is a bad choice for Ukraine but possibly a good one for Mr Yanukovych and his political allies.

They will likely receive a huge cash injection from the Kremlin, funds which can be used to stabilize the Ukrainian economy for a while as well as help fund the Ukrainian president’s re-election bid in 2015.

But Prime Minister Donald Tusk’s take on the matter is absolutely correct. The EU should not take offense at Ukraine and turn its back on the country, but rather wait for a more opportune moment.

Governments come and governments go.

Mr Yanukovych will not be in power forever. And neither will Mr Putin. ●

FINANCE & ECONOMICS

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Euro adoption

New FinMin wary of Poland joining euro zone

The registered unemployment rate in October stood at 13 percent, according to data published by statistics office GUS last week. It remained stable compared to September this year. The figure is in line with an estimate published by the Ministry of Labor of Social Policy in early November.

GUS said that 2.75 million

Mateusz Szczurek said adopting the euro no longer seems “worthwhile”

due to weather conditions, as earlier suggested. Improvement was observed in the manufacturing and trade sectors. “We expect some pick up of the unemployment rate due to seasonal factors and it should reach 13.7% at the end of the year,” the economists wrote.

people were registered in Poland’s labor offices at the end of October, 8,000 fewer than in September. In year-onyear terms the number was higher by 80,300.

The data clearly show a continuation of positive trends, BZ WBK economists wrote in an e-mailed comment. Stabilization was not

KW

Holding steady Poland’s unemployment rate, October 2011-October 2013 14.50 13.75 13.00

Oct. ’13

Sep. ’13

Jul. ’13

Aug. ’13

Jun. ’13

Apr. ’13

May ’13

Mar. ’13

Jan. ’13

Feb. ’13

Dec. ’12

Oct. ’12

Nov. ’12

Sep. ’12

Jul. ’12

Aug. ’12

Jun. ’12

Apr. ’12

May ’12

Mar. ’12

Jan. ’12

Feb. ’12

11.50

Dec. ’11

Mateusz Szczurek

12.25

Oct. ’11

COURTESY OF KPRM

Mr Szczurek has voiced skepticism on the benefits of joining the euro zone.

Joining the euro zone would now be much less worthwhile than it was before the crisis, Mateusz Szczurek, newly nominated as Poland’s finance minister, told Dziennik Gazeta Prawna in an interview. Benefits that the euro was meant to bring, such as easier access to capital and foreign funding, have become fiction, he said.

“At the same time – and this is a new thing – euro zone members are experiencing new formal and financial commitments related to membership in the monetary union, such as the European Stability Mechanism,” Mr Szczurek said.

The new finance minister added that the past years have shown that the debt-to-GDP threshold is not enough to protect the economy from economic cycle fluctuations. It would be necessary to ensure some level of freedom in

DECEMBER 2-8, 2013

Unemployment stable in October

Nov. ’11

14

Source: Central Statistical Office

finance sector regulatory policy, he said.

Whether Poland wants to become a part of the euro zone or not currently seems somewhat of a moot point, as it still has a lot to do before it becomes a viable candidate for the currency union, National Bank of Poland President Marek Belka said in a lecture.

“In order to enter the euro zone we need to prepare accordingly,” Mr Belka said.

“First of all we need three wellfunctioning elements: competitiveness, a flexible labor market and healthy finance.”

“If we had the competitiveness of Germany, the flexible labor market of Sweden and the public finance of Finland, that would be a perfect and a safe solution,” he explained.

“Unfortunately for now we have a lot to improve in our economy in order for euro adoption not to harm us.” KW

Retail sales growth lower than expected The volume of retail sales in Poland grew by 3.2 percent year-on-year and by 3.6 percent month-on-month in October, statistics office GUS said on Tuesday. In real terms retail sales grew by 3.7 percent y/y.

Economists surveyed by the Polish Press Agency had expected retail sales to grow by 4.3 percent y/y and by 4.7 percent m/m.

In an e-mailed comment, BZ WBK analysts wrote that

the data is in line with their gradual rebound scenario, supported by labor market improvement and disposable income growth. In the coming months they expect retail sales KW growth to accelerate.

David vs Goliath?

Are Poles ready for green cities?

Ghelamco is to offer 11,000 sqm of GLA in Wilanów, a stone’s throw away from GTC’s planned 80,000-sqm mall 16

Most developers are trying to implement sustainable solutions, to mixed effect

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

Karuzela mall opens The Karuzela shopping center, in Wodzis∏aw Âlàski, a 50,000-city in southern Poland, is set to open on December 4. The scheme offers 6,400 sqm of retail space and a parking for 220 cars. The center’s tenants include grocery store Polomarket, health and beauty products retailer Rossman, electronics retailer RTV Euro AGD, as well as several footwear and fashion brands, including Deichmann and LPP’s brands: Reserved, Sinsay, Cropp, House and Mohito. The scheme’s catchment area is 156,000 people. ●

Wings Properties secures financing for OVO Hilton Wroc∏aw The unique scheme will offer 8,450 sqm of office and retail space as well as around 200 hotel rooms and 140 apartments Real estate firm Wings Properties has signed a loan agreement with Alior Bank, which secures full financing for the OVO Hilton Wroc∏aw project, the company’s CFO Sylwester Roszewski said last Wednesday. The full value of the mixed-use scheme is approx. z∏.260 million, with the company itself financing over z∏.100 million.

“The document we signed on November 20 is likely to be the most important step in the process of launching the project,” said Sylwester Roszewski, Wings Properties’ CEO. The OVO Hilton Wroc∏aw, located in southwestern Poland, will offer high-end apartments, a hotel, as well as

KSP redevelopment . . . . . . . . .15 Ghelamco’s retail scheme . . . .16 PHN has new CEO . . . . . . . . . . .16 Making cities greener . . . . . . . .17 Office project for Vantage . . . .17 Warsaw residential prices . . . .17 European retail space . . . . . . . .18

8,450 sqm of office and retail space. The pre-sale of apartments and offices was launched several weeks ago and will finish on December 31. The building will comprise nine storeys in total, with two

offer 140 apartments of various sizes, from 25-sqm studio apartments to 250-sqm penthouses. Prices range from z∏.11,500 to z∏.26,000 per sqm.

The scheme was designed by Gottesman-Szmelcman

below ground.

The five-star hotel will be opened under the DoubleTree

by Hilton brand and will house 200 rooms and suites, conference rooms and a 6.5-meter high ballroom. Floors 4-6 will

Architecture studio. The investor has yet to choose the general contractor for the project.

Construction is expected to start in Q1 2014 with completion due in 2016.

Beata Socha

Office

KSP to redevelop office scheme in Warsaw high street The revamped building, named Ethos, will offer 13,000 sqm of office space and 2,500 sqm of retail area

In this issue OVO Hilton Wrocław . . . . . . . . .15

Apartment prices start from z∏.11,500 per sqm

Developer Kulczyk Silverstein Properties (KSP) will refurbish and expand office-residential complex Holland Park, located on Pl. Trzech Krzy˝y, one of Warsaw’s high streets.

KSP wants to add another 3,000 sqm of office space to the existing 10,000 sqm, as

well as expand the retail area from the current 1,400 sqm to 2,500 sqm of GLA. The investor is planning on securing a building permit in early 2014.

“We remain consistent in our strategy of investing in the most prestigious locations and the highest standards of projects,” said Edgar Rosenmayr, a KSP board member.

The complex was first developed between 1996 and 1998. In March this year, KSP purchased the scheme, mainly occupied by bank

ING and its subsidiaries, from CBRE Global Investors for some €50 million.

“Acquisition of real estate in such a unique location as Plac Trzech Krzy˝y and the fact that its current anchor tenant is leaving the building, offers a phenomenal opportunity for a substantial improvement of the building while at the same time adding prestige to its neighborhood,” Mr Rosenmayr said.

The revamped scheme, dubbed Ethos, will apply for BREEAM “Excellent” certiBKS fication.

COURTESY OF KSP

Królewski Park, a subsidiary of real estate developer Robyg, signed an agreement to acquire land in the Wilanów district of Warsaw for z∏.34 million. The plot, which will be used for the construction of around 750 apartments, has an area of 47,000 sqm. Robyg is present in Wilanów with the Osiedle Zdrowa project already completed, as well as two more, Osiedle Królewskie and Nowa Rezydencja Królowej Marysieƒki, both under construction.

Mixed-use

COURTESY OF WINGS PROPERTIES

Robyg buys more land in Wilanów

DECEMBER 2-8, 2013, LI 18/47

The revamped scheme will offer over 13,000 sqm of office space and 2,500 sqm of retail space

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

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DECEMBER 2-8, 2013

Retail

Ghelamco moves forward with first retail scheme The planned place for everyday shopping convenience center and a meeting place for the local community.” will be constructed only 2 km away from close GTC’s major shopping Dangerously The southern Wilanów dismall scheduled to trict currently has no major come online a year retail schemes, however another developer, GTC has later

Agata Seku∏a, head of retail investment CEE, Jones Lang LaSalle: COURTESY OF GHELAMCO

Developer Ghelamco has secured a building permit for its Plac Vogla retail/service scheme in Warsaw’s Wilanów district. Its construction is scheduled to begin by mid2014 and will take seven months to complete.

The scheme will offer 11,000 sqm and house 50 stores, including specialist grocer’s, cafes, restaurants and small service points. The center has already secured its anchor tenant. Upmarket supermarket chain Alma has already signed a lease for 1,500 sqm of space.

Plac Vogla will be a mainly one-storey “open-air center.”

The developer said its first retail project will offer an “alternative to large-format shopping centers, creating a

Can small convenience centers compete with large shopping malls?

already announced plans to develop a nearly 80,000-sqm shopping center. The mall, scheduled for completion in 2016, will be located at the intersection of ul. Powsiƒska and ul. Branickiego, only 2 km away from Ghelamco’s planned investment.

The developer apparently is not afraid of competition from large shopping malls. In fact, two out of three of the developer’s planned convenience centers will be located within a few kilometers of new large shopping centers.

Pasa˝ Tukanów in Piaseczno, on the capital’s southern outskirts, set to house 30 stores on 7,000 sqm of GLA, will be less than 3 km away from Auchan Piaseczno, a 44,300-sqm shopping center. To make matters even

Plac Vogla will offer 11,000 sqm and house 50 stores, including an Alma supermarket more interesting, Auchan’s owner, Immochan is planning on expanding the mall into an over 80,000-sqm retail center, with an extra 170 mainly fashion stores.

The third scheme Ghelamco is planning to develop is Prochownia ¸omianki in the northern part of Warsaw.

Peaceful coexistence Retail experts point out that convenience centers can successfully exist alongside major shopping malls, as long as they are “tailored only to local catchment and fast

shopping,” said Anna Malarczyk-Arcidiacono, managing director at investor Futureal Management Poland.

According to Ms Malarczyk, people often choose a convenience center over a shopping mall because they “don’t have the time to spend hours on everyday shopping in big galleries.”

Until now, Ghelamco Poland focused mainly on the office and logistics markets. It has completed nearly 500,000 sqm of office and warehouse space.

“Convenience centers do not compete with shopping malls as these two retail formats complement each other and can be developed in parallel. To prove successful, convenience centers should, in my opinion, focus on their immediate catchment area and fulfill the everyday needs of customers living in close vicinity.

In my view, a model convenience center should first of all have a range of food stores: a bakery, a specialist butcher’s, an organic food store and a grocer’s. People are becoming more demanding and no longer want to buy these products exclusively in a supermarket.

It is best if the food offer is accompanied by a broad range of services, including a pharmacy, a florist, a wine store, a newsagent, a travel agent, a beauty salon, and a dry-cleaner’s among others. A fitness club also enhances such a center’s offer.

On the other hand, the fashion offer in convenience centers should be very limited as it will never be able to compete with regular malls where fashion prevails. These centers, in my experience, would also do well to establish an interesting restaurant offer that goes beyond fast food operators.” ●

Beata Socha

COURTESY OF PHN

PHN has new CEO

Intraco is PHN’s best-known asset

The supervisory board of real estate group Polski Holding NieruchomoÊci (PHN) has officially appointed Artur Lebiedziƒski as the company’s chief executive. His term will end together with the term of the current management board. Mr Lebiedziƒski was previously a supervisory board member at PHN and in September he was named acting CEO after Wojciech

Papierak resigned from that post.

PHN is majority stateowned and listed on the Warsaw Stock Exchange.

The State Treasury has recently announced the second stage of the company’s privatization, which will involve the sale of a majority stake to a strategic investor.

“Banks [assisting the Treasury in the privatization

process] have sent out investment teasers to potential investors. We will wait for a few weeks for the applications,” Treasury Deputy Minister Pawe∏ Tamborski said.

Institutions interested in the offer will receive all the data necessary to conduct due diligence of the company, including year-end asset valuation, in the first quarter of 2014, Mr Tamborski

added.

The Treasury now holds 73 percent of the group’s over 44.5 million shares.

The stake is valued at some z∏.900 million. Earlier this year, 25 percent of the firm’s shares were sold in its IPO. Deutsche Bank and Societe Generale are acting as the State Treasury’s advisors in the privatization.

KW, BKS

DECEMBER 2-8, 2013

LOKALE IMMOBILIA – REAL ESTATE

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Sustainability

Making cities greener Investors, developers, urban planners and city officials met last week to award the most sustainable schemes and companies supporting green development, as well as to discuss what cities can and should do to become greener.

Green buildings are nothing new in the Polish market.

Practically every new office scheme can boast a LEED or BREEAM certificate. “Green development is forced on developers because they are afraid they will not be able to re-sell,” said Guy Perry from design and advisory services company IN-VI, responsible for the urban planning for Warsaw’s Miasteczko Wilanów.

The area combines residential development with office schemes as well as retail and service space, with sustainable transport solutions a priority, including bicycle routes which are an integral part of the public transport system. Mr Perry said that the area has been designed without open parking and with strong emphasis on integrating residential areas with retail, restaurants and offices, so that people don’t need to use cars to satisfy their everyday needs.

The strategy IN-VI used for Wilanów was adopted to avoid creating areas like the Marki suburb on Warsaw’s northeastern outskirts, with hardly any services within walking distance of housing estates, prompting its residents to use their cars everywhere.

Lublin officials also want to develop the city in such a way to avoid creating “districts with only one function, but instead integrate office, industrial and residential space,” said Mariusz Sagan, the city’s director of strategy and investor assistance department.

Changing lifestyle Leszek Drogosz, a Director of Infrastructure Department at Warsaw City Hall, says that the city has to address the changing lifestyles of its residents and their needs better. Warsaw is currently working on a ten-year plan of revamping public spaces to make them more attractive. “The future belongs to walkers and bikers, and generally people who spend a lot of time outdoors,” Mr Drogosz said.

However, the lifestyle changes that Warsaw seems to observe among its residents are not so prevalent in other Polish cities. In Katowice, young people are reluctant to give up their cars in favor of public transport, no matter how convenient it may be. “We have offered another direct bus line to the GoeppertMayer building and out of 900 people surveyed, only 46-47 were interested,” said Miros∏aw Czarnik, president of the GórnoÊlàski Park Przemys∏owy (GPP) industrial park.

GPP’s 7,800-sqm office scheme, called GoeppertMayer, was awarded an “Outstanding” BREEAM certificate as the first office project in Poland and second in Europe to have received the highest BREEAM rating.

Katarzyna Hernik, Beata Socha

COURTESY OF GPP

City planners want to make individual districts more integrated and promote healthier lifestyles, but are Poles ready for such solutions?

Goeppert-Mayer, located in Katowice, is the first Polish office scheme to receive an “Outstanding” BREEAM certificate

Green Building of the Year Winners 2013 LEED ‘Gold’ Application In Process Hampton Hotel by Hilton Warsaw Mixed-use Project of the Year Poznaƒ City Center - TriGranit Development - Poland Retail Project of the Year Poznaƒ City Center - TriGranit Development - Poland BREEAM Post Construction Assessment Senator - Ghelamco - Poland

Professional of the Year Robert Martin - Europa Capital Professional Service Provider of the Year Gleeds Architectural Firm of the Year Kury∏owicz & Associates Law Firm of the Year Dentons

LEED for Shell and Core Green House Office Building - Skanska - Hungary

Property Management Firm of the Year Knight Frank

BREEAM Design Stage Assessment Park Rozwoju - Echo Investment - Poland

Consultant/Letting Agent of the Year Jones Lang LaSalle

LEED Pre-Certificate Shell & Core Atrium 1 - Skanska - Poland

Investor of the Year Atrium

Green Office Building of the Year 2013 T-Mobile Office Park - Ghelamco - Poland

Bank of the Year Helaba

Green City of the Year Poznaƒ

Developer of the Year Skanska

Warsaw Business Journal is a media partner of CEE Green Building awards

and set to be delivered in early 2015, will offer 5,660 sqm of GLA. The construction of the remaining two phases, comprising 6,340 sqm and 10,200 The total scheme will offer over 20,000 sqm respectivesqm of office space ly, is scheduled for completion by the end of was created by a spin-off of the real estate assets previously 2016.

The total budget of the held by outsourcing company project stands at over z∏.130 Impel.

BKS, K W million. Vantage Development COURTESY OF VANTAGE DEVELOPMENT

Project of the Year Poznaƒ City Center - TriGranit Development Corporation

BREEAM in USE Astoria Business Center - Bluehouse - Romania

Vantage Development secures financing for office project Real estate developer Vantage Development has secured a €23.73 million loan from BRE Bank Hipoteczny for the construction of its Promenady Zita office project in Wroc∏aw.

The financing will be used to carry out all three phases of the project.

“The loan agreement will secure the financing for the entire Zita project, which we have divided into three phases,” said Dariusz Pawlukowicz, the firm’s management board member. The first stage of the scheme, launched in October 2013

Company of the Year Skanska

Warsaw residential prices with highest disparities The most expensive apartments in the capital’s residential market fetched prices over 250 percent higher than units in the least attractive districts in the third quarter of 2013, according to data compiled by residential agency Emmerson.

Out of the top five residential markets in Poland, Poznaƒ has the lowest disparity between apartment prices in various districts. The most attractive neighborhoods are on average only 11 percent more expensive than the least sought-after districts.

However, the real disparity

between neighborhoods in Poznaƒ is somewhat obscured by the fact that the outer districts of the city belong, in some part, to the broader city center and fetch higher prices, thus inflating the average price level for the district.

Kraków, in southern Poland, has a disparity of 48 percent between the average price levels in the most and least pricey districts. The small differences are mainly due to the fact that developers charge more for units in Kraków’s cheapest districts.

The price disparity

Uptown and downtown Price disparity between five major residential markets in Poland, Q3 2013 Warsaw

251%

Gdaƒsk

63%

Wroc∏aw

58%

Kraków

48%

Poznaƒ

11% Source: Emmerson

between districts in Wroc∏aw stood at 58 percent, and at 63 percent in Gdaƒsk.

BKS

www.wbj.pl

Capital Park sets IPO price

Poland fourth in Europe in new retail space volumes Country

Average prime rents Average prime yields (€/sqm/year) (%)

Short-term yield outlook

Austria

932

6.44

➔

Belgium

1,030

5.68

➔

Czech Republic

789

6.61

➔

Denmark

644

6.00

➔

Finland

1,050

5.38

➔

France

1,263

5.50

Germany

549

5.20

Hungary

504

7.71

➔

1,800

8.00

725

7.81

➔

Luxembourg

1,050

5.63

➔

Netherlands

433

6.75

➔

Norway

889

5.75

➔

Poland

540

6.11

➔

Portugal

610

8.42

➔

Romania

369.6

9.45

➔

Russia

2,591

9.25

➔

Slovakia

660

7.25

➔

Spain

627

7.06

➔

sqm) in Inowroc∏aw and Europa Centralna (27,000 sqm) in Gliwice.

Shopping center rents & yields

➔

Sweden

753

5.13

➔

Turkey

739

7.75

➔

1,548

5.15

Ireland Italy

KW, BKS

Top 5 pipelines New shopping center GLA in H1 2013

500,000

Source: Cushman & Wakefield

375,000 250,000 125,000 0 Russia

Turkey

UK

Poland

Germany

United Kingdom

➔

CEE commercial real estate developer HB Reavis launched the trading of its bonds on the Bonspot market of Catalyst, the bond-trading platform of the Warsaw Stock Exchange. The company raised z∏.111 million in the debt issue. Issue proceeds will be spent on financing new real estate projects, mostly in Poland. ●

Poland came fourth in Europe in terms of new retail space delivered in H1 2013, according to a report published by Cushman & Wakefield. Russia came first in the ranking, followed by Turkey and the UK. In Poland, retail space supply was increased by about 126,100 sqm in H1 2013, accounting for almost 10 percent of the European total.

Seven new schemes and one extension were added to the Polish market in the first half of 2013. The largest new schemes built in that period were Galeria Solna (30,000

Throughout the European market, a total of 1.8 million sqm of new shopping center space was added in the first half of the year, significantly less than in the previous six months (3.4 million sqm). The drop was caused mainly by a large number of projects delayed to H2 2013 and 2014.

There are 4.9 million sqm of retail space expected to be completed by the end of the year. A total of 145 new shopping centers are scheduled for completion in Europe, 105 of which are located in the CEE region. As many as 6.1 million sqm worth of retail space should roll out in 2014.

➔

Galeria Solna delivered 30,000 sqm of GLA

HB Reavis on Catalyst

DECEMBER 2-8, 2013

➔

Real estate investor and developer Capital Park plans to raise z∏.136.2 million in its upcoming initial public offering. Last week it set the share price at z∏.6.50 apiece.

Altogether 20.96 million new shares will be offered to investors.

The issue proceeds will be spent mostly on the further development of Capital Park’s key projects in Warsaw, Eurocentrum Office Complex, Royal Wilanów and ArtNorblin, as well as on new schemes.

LOKALE IMMOBILIA – REAL ESTATE

COURTESY OF DTZ

18

Source: Cushman & Wakefield

MARKETS

DECEMBER 2-8, 2013

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Stocks report

world stock indices DJIA

NASDAQ

15,900.82 (Nov 27 close)

S&P500

4,044.75 (Nov 27 close)

1.24% (for the week)

FTSE100

1.807.23 (Nov 27 close)

3.15% (for the week)

DAX

6,650.57 (Nov 29 close)

1.45% (for the week)

-0.36% (for the week)

Hoping for a great December

NIKKEI 9,405.30 (Nov 29 close)

15,661.87 (Nov 29 close)

2.02% (for the week)

1.82% (for the week)

CHANGE: 20.02% (year to November 27)

CHANGE: 29.96% (year to November 27)

CHANGE: 23.58% (year to November 27)

CHANGE: 10.34% (year to Nov 29)

CHANGE: 20.91% (year to Nov 29)

CHANGE: 46.54% (year to Nov 29)

52-week high: 16,120.20

52-week high: 4,045.81

52-week high: 1,808.42

52-week high: 6,875.60

52-week high: 9,424.07

52-week high: 15,942.60

52-week low: 12,883.90

52-week low: 2,951.04

52-week low: 1,398.11

52-week low: 5,852.90

52-week low: 7,398.22

52-week low: 9,376.97

Last week on the WSE started pretty well, with WIG and WIG20 gaining 0.8 and 1 percent respectively, with Tauron and Orlen among the biggest gainers on the blue-chip index.

Tuesday was much worse.

With macroeconomic data both from Poland and abroad worse than expected, investors were mostly selling their stocks rather than buying. Retail sales in Poland grew by only 3.2 percent (when economists expected a 4.1 percent rise), while the Conference Board index in the US dropped to 70.2 points from 71.2 points in October (while analysts expected a jump to 72.9 points).

With trading in the US much slower than usual due to Thanksgiving, European stock exchanges were also quite sluggish when it came to the volume of trading.

KGHM shareholders were

Major indices WIG

54,704.89 (November 29 close)

WIG30

2,726.27 (November 29 close)

28.11

29.11

27.11

26.11

25.11

21.11

22.11

20.11

18.11

19.11

15.11

14.11

12.11

28.11

29.11

27.11

26.11

25.11

21.11

22.11

20.11

18.11

2,200 19.11

44,000

15.11

2,320

14.11

46,400

12.11

2,440

13.11

48,800

08.11

2,560

07.11

51,200

05.11

2,680

06.11

53,600

04.11

2,800

31.10

56,000

13.11

52-week low: 2,286.99

08.11

Change year to November 29: 3.88%

07.11

52-week low: 43,159.57

05.11

52-week high: 2,760.93

Change year to November 29: 13.71%

06.11

Change for the week: -0.18%

04.11

52-week high: 55,246.40

31.10

Change for the week: -0.24%

Top 5 BIOTON SKYLINE POINTGROUP DROP POLIMEXMS

Closing 0.03 1.61 0.45 9.70 0.17

% change (week) 52-week high 50.00 0.10 49.07 2.18 28.57 0.46 27.63 10.71 21.43 0.66

52-week low 0.02 0.80 0.16 5.28 0.09

Top 5 BORYSZEW PKNORLEN ENEA GRUPAAZOTY ASSECOPOL

Closing 0.55 47.90 16.06 73.50 51.11

% change (week) 7.84 4.24 1.97 1.94 1.91

52-week high 0.64 55.56 16.20 88.50 52.70

52-week low 0.38 40.40 11.70 48.35 37.76

Bottom 5 INTAKUS CALATRAVA NOVAKBM REINHOLD SADOVAYA

Closing 0.01 0.01 0.84 0.59 0.68

% change (week) -50.00 -50.00 -29.41 -27.16 -26.09

52-week low 0.00 0.01 0.84 0.22 0.66

Bottom 5 CCC KERNEL TPSA TVN JSW

Closing 119.20 42.44 10.35 15.04 66.14

% change (week) -5.02 -4.41 -4.17 -3.28 -3.16

52-week high 141.60 72.35 12.16 16.00 94.15

52-week low 64.71 36.50 5.83 7.16 57.70

52-week high 0.02 0.43 6.00 1.19 2.50

2,584.68 (November 29 close)

mWIG40

29.11

28.11

27.11

26.11

25.11

22.11

21.11

20.11

19.11

18.11

15.11

14.11

13.11

12.11

SOURCE: WSE

29.11

28.11

27.11

26.11

25.11

22.11

21.11

20.11

19.11

18.11

15.11

14.11

13.11

29.11

28.11

27.11

26.11

25.11

22.11

21.11

20.11

19.11

320

18.11

14,000

15.11

328

14.11

14,400

13.11

336

12.11

14,800

08.11

344

07.11

15,200

06.11

352

05.11

15,600

04.11

360

31.10

16,000

12.11

52-week low: 296.29

08.11

52-week high: 352.37

Change year to November 29: 6.07%

07.11

52-week low: 9,848.42

Adam Narczewski X-Trade Brokers DM SA

352.37 (November 29 close)

Change for the week: 2.31%

06.11

Change year to November 29: 42.61%

NewConnect

05.11

52-week high: 15,093.78

04.11

28.11

29.11

27.11

26.11

25.11

21.11

22.11

20.11

15,018.25 (November 29 close)

Change for the week: -0.12%

31.10

sWIG80

19.11

3,200

18.11

2,300

15.11

3,280

14.11

2,380

12.11

3,360

13.11

2,460

08.11

3,440

07.11

2,540

06.11

3,520

05.11

2,620

04.11

3,600

31.10

2,700

08.11

52-week low: 2,471.39

07.11

Change year to November 29: 36.63%

06.11

52-week low: 2,177.02

05.11

52-week high: 3,572.51

Change year to November 29: -1.58%

04.11

Change for the week: -0.45%

31.10

52-week high: 2,628.36

Jacek Ciesnowski

Expect increased volatility

3,509.38 (November 29 close)

Change for the week: -0.22%

not the happiest bunch.

When last Wednesday the copper giant CEO, Herbert Wirth, said that he doesn’t expect commodities prices to bounce back anytime soon, KGHM stock went down by some 5 percent pulling the indices deep into the red and making the WSE the worst performing stock exchange in Europe last Wednesday.

Overall, throughout the week WIG lost some 1 percent while the WIG 20 dropped by 1.3 percent.

Throughout the whole of November, the blue-chip index grew by 2.2 percent, not a great result compared to the 5.7 percent hike seen a month before. Investors are hoping that December will harbor much better results, which is usually the case, as the last month of the year is traditionally good for investors.

Currency report

Other indices WIG20

19

It was a calm week on the currencies market.

The EUR/USD continued its increase after increasingly fewer factors could make the ECB decrease the deposit rate below zero percent. This week we learned that inflation in Germany is increasing, which in turn should increase inflation in the whole euro zone. That means the ECB can wait with any monetary policy actions.

The euro received a boost and the EUR/USD kept going higher and finished the week in the $1.36 area (while being quoted below the $1.35 level at the beginning of the week).

In Poland, the unemployment rate remained at 13 percent while retail sales increased only by 3.2 percent in October (yearly basis, below expectations). By the

end of the week, the Central Statistical Office confirmed that GDP in the third quarter grew by 1.9 percent. The brightest news was that consumption accounted for much of that increase.

Despite the macro news, volatility was low on the z∏oty market. The EUR/PLN experienced a slight upward movement from z∏.4.19 to z∏.4.20.

The USD/PLN remained in the z∏.3.09 area.

The upcoming week should be much more volatile as we have the interest rate decisions by the ECB and Bank of England along with the US labor market report on Friday. Still, the z∏oty should not expect any sudden moves till the end of year and should remain in the z∏.4.15z∏.4.25 range against the euro and z∏.3.02 - z∏.3.15 against the US dollar. ●

currency rates 3.0163 29.11

SOURCE: NBP

3.0362

3.0212 28.11

3.0531 26.11

27.11

3.0507

3.0715

25.11

29.11

28.11

22.11

0.0930

0.0932 0.0935 27.11

26.11

25.11

100JPY/PLN

3.08

3.00

22.11

0.092

0.0939

0.0945 3.4084 29.11

3.4101

0.0944

RUB/PLN

0.095

28.11

3.4155 27.11

3.4058 26.11

25.11

22.11

3.4108

5.0339

5.0348 29.11

3.40

3.4073

CHF/PLN

3.42

28.11

5.0297 27.11

5.0240 25.11

26.11

5.0351 22.11

3.0872

3.0846 29.11

5.00

5.0081

GBP/PLN

5.04

28.11

3.1077

3.0899 27.11

3.0945 26.11

25.11

22.11

4.1988

4.1998 29.11

3.08

3.1019

USD/PLN

3.11

28.11

27.11

4.1935 26.11

4.1930 25.11

4.1995 22.11

4.18

4.2038

EUR/PLN

4.21

20

THE LIST

www.wbj.pl

DECEMBER 2-8, 2013

Corporate Services

Catering Companies Ranked by revenue from catering in 2012 A guide to Polish business and industry

www.bookoflists.pl

Przewodnik po polskim biznesie i gospodarce

Chef

1

Sodexo Polska Sp. z o.o.(1) ul. Jutrzenki 137, 02-231 Warsaw 22 338-9600/22 338-9601 info.fms.pl@sodexo.com www.sodexo.pl

91.2 80.0 81.8 77.1

237.7 217.6 205.2 188.2

WND WND WND WND

EURO 2012: 5,500

✓ ✓ ✓

All types of cuisine

✓ ✓

✓ ✓ ✓

Comprehensive food services: onsite canteens, catering, business banquets and conferences, meals to go, lunch delivery, patient nutrition, food service for schools

835 2,043 1993

WND

2

Eurest Poland Sp. z o.o.(2) ul. Jana Olbrachta 94, 01-102 Warsaw 22 463-4400/22 463-4444 eurest.poland@eurest.pl www.eurest.pl

77.0 76.0 80.0 76.0

81.5 80.0 72.9 76.0

WND 100 WND WND

Picnic: 1,000; holiday events: 20-500

✓ ✓ ✓

Polish; regional; international; themed

✓ ✓

✓ ✓ ✓

Facility management

WND WND 1993

WND

Tomasz Stepek

3

Impel Catering “Company” Sp. z o.o., Sp.k. ul. Âl´˝na 118, 53-111 Wroc∏aw 71 780-9450/71 780-9511 cc.info@impel.pl www.impelcatering.pl

49.0 45.4 38.4 45.0

WND WND WND WND

WND WND WND WND

Credit Suisse: 800; 31st Congress of the Polish Gynecological Society in Katowice: 1,600; picnic service for Lidl

-

Traditional Polish cuisine; regional; international; themed

-

-

Buffet service; event organization; gift basket preparation and delivery

WND WND 2000

WND

Marek Ho∏ówko

4

P.Dussmann Sp. z o.o. ul. Kurpiƒskiego 55A, 02-733 Warsaw 22 827-2290/22 827-2298 dussmann@dussmann.pl www.dussmann.pl

19.3 21.6 20.0 18.0

WND 50.0 48.0 43.2

30 22 60 25

Military unit festival: 550; Hospital of Pomeranian Medical University in Szczecin: 280; Medisystem (holiday celebration for 5 centers): 400; Medicover (holiday celebration): 200; Bosch (secret Santa): 300

✓ ✓ ✓

WND

✓ ✓

✓ ✓

Managing restaurants and staff canteens; event catering services; food delivery; catering; food management in hospitals and schools; food delivery to schools and kindergartens

200 WND 1993

WND

Pawe∏ Skwarczowski

5

MCC Mazurkas Conference Centre & Hotel Sp. z o.o. ul. Poznaƒska 177, 05-850 O˝arów Mazowiecki 22 721-4747/22 721-4751 kontakt@mazurkashotel.pl www.mazurkashotel.pl

18.5 17.3 16.3 15.0

26.0 25.9 WND WND

907 884 WND WND

UEFA - BC catering for two months: 1,000; Jeronimo Martins: 3,000; BCC: 1,800; Sports Champions Ball: 800; Bank BPS: 1,500

✓ ✓ -

All types of cuisine

✓ ✓

✓ ✓ ✓

Cuisine Academy; full services (decorations, decoration buffet, conference organization, sound, lighting)

300 95 2001

Bart∏omiej Czerwiƒski

Andrzej Bartkowski

6

Art’Impression Catering Sp. z o.o. ul. Karczunkowska 170, 02-871 Warsaw 22 736-2711/22 736-2712 events@ai-cateringwarszawa.pl www.ai-cateringwarszawa.pl

5.5 5.4 5.3 4.0

5.5 5.4 WND WND

800 700 WND WND

Warsaw University of Technology (conference): 500; LOT (Christmas party): 500; Mathematics Congress in PKiN: 400; Gaz-System (Easter party): 350; prom: 310; Medical University of Warsaw (conference): 250

✓ ✓ ✓

Polish; European; international

✓ ✓

✓ ✓ ✓

Arrangements; equipment; technical service; photography service

80 50 2004

E. Ewa Spodarzewska

Wies∏aw Spodarzewski

7

Party Serwis Catering Melon Sp.j. ul. Mineralna 20, 02-274 Warsaw 22 644-2811/22 644-7025 biuro@partyserwis.pl www.partyserwis.pl

3.5 3.0 4.9 4.5

3.5 3.0 WND WND

730 700 920 680

Paszporty Polityki 2012: 1,200; 20th Anniversary of AVON in PKiN: 2,800; Christmas meeting for Ernst & Young in Palladium Theatre: 750; Provident conference in Z∏ote Tarasy: 700; 40th Anniversary of Sygna∏y Dnia for Polish Radio

✓ ✓

International; Polish; European; sushi

✓ ✓

✓ ✓ ✓

Tents; art direction; photography service

35 WND 1992

WND

Emilia Melon; Tomasz Melon

8

Agencja Cateringowa Party Sp. z o.o. ul. Rakowiecka 36, 02-532 Warsaw 22 849-8597/22 849-8597 marketing@party.com.pl www.party.com.pl

2.5 3.0 2.3 2.5

2.6 3.1 2.4 2.5

950 900 1,877 1,990

Oscar Night 2012 (cocktail): 450; Escadra (cocktail): 450; Chimerec (cocktail): 450; MUD GMBH (banquet): 400; Budimex (cocktail): 100

✓ -

Polish; European; international; themed

✓ ✓

✓ ✓ ✓

Tents; arrangements; equipment; entertainment; sound

WND WND 1992

Robert Kaêmierczak

Ludwika Makowiec; El˝bieta Zielonka

Lunch Service D. Cyran, P. Sobczak ul. 11 Listopada 28B, 05-816 Micha∏owice 22 578-0880/22 213-3010 catering@lunchservice.com.pl www.lunchservice.com.pl

2.3 2.0 2.2 2.2

2.3 2.0 2.2 2.2

50 30 190 180

RBS: 750; Orange Polska: 460; Polskie Radio: 380; Ministry of Economy: 300; Bank Handlowy: 230; Kredyt Bank 190

✓ -

Modern and traditional Polish; international

✓ ✓

✓ ✓ ✓

Comprehensive service: floral decorations, banquet chairs and tables, tents, waiter services

20 20 1995

WND

0.7 0.6 5.0 2.3

1.2 1.4 5.0 2.3

100 100 WND WND

Ernst & Young: 2,000; 20th Anniversary of Polsat TV; 3rd of May in Presidential Palace: 2,000; 4th of June in Presidential Palace: 1,200

✓ ✓ ✓

International

✓ ✓

✓ ✓ ✓

Interior design; gastronomic equipment leasing; waiter services

30 WND 1991

Bogdan Niemiec

Lucyna Zapart

Santa Fe Partners Sp. z o.o. ul. Zajàczkowska 11, 00-785 Warsaw 11 22 851-2323/22 851-2321 kontakt@bluecactus.pl www.bluecactus.pl

0.3 0.2 WND WND

9.5 10.4 WND WND

500 480 WND WND

Blue Cactus and Iguana Lounge: 600; external catering: 2,000

✓ ✓ -

Southwestern cuisine; custom

✓ -

✓ ✓ ✓

Cooking lessons; drink-making lessons

WND WND 1996

Patrick Hanna

Piotr Grajewski

Belvedere - Café ¸azienki Królewskie Sp. z o.o. ul. Agrykoli 1, 00-460 Warsaw NR 22 558-6700/22 558-6777 catering@belvedere.com.pl www.cateringbydesign.pl

WND WND WND WND

WND WND WND WND

2100 2000 WND WND

Economic Forum in Krynica: 7,000; Journalists’ Charity Ball: 600; ITC Proposer’s Day Congress: 2,000; MICE POLAND Gala: 600; ESRI Polska Congress: 2,000

✓ ✓ -

Polish; international; oriental; fusion; original; custom

✓ ✓

✓ ✓ ✓

Modern designers catering equipment; comprehensive service

104 104 1991

Dariusz Muçko

Artur Zymerman

Rank

Number of catering employees / Total number of employees / Year founded in Poland

Type of events served Company name Address Tel./Fax E-mail Web page

Revenue from catering (z∏. mln)

Total revenue (z∏. mln)

Number of events served

Company activity: Largest events catered in Catering / 2012: Number of participants Restaurant / Canteen operator

Type of cuisine

Banquets with wait Buffet / staff / Drink-bar / Smorgasb Mass ord events

Other services offered

2012 / 2011 / 2010 / 2009

9

L. Zapart Catering ul. Komorska 5504-149 Warsaw 10 608-648-491/22 839-8795 biuro3@zapart.pl www.zapart.pl

Top local executive / Title

Yann Gontard CEO Central Europe

Managing Director

General Director

President

President

President

Board Members

Dariusz Cyran; Piotr Sobczak Owners

President

General Manager

THE LIST

DECEMBER 2-8, 2013

www.wbj.pl

Chef

Catering Magda Gessler Pl. Trzech Krzy˝y 3, 00-535 Warsaw NR 22 378-1146 biuro@cateringmagdagessler.pl www.cateringmagdagessler.pl

WND WND NA NA

WND WND NA NA

WND WND NA NA

Charity Ball of Aristocratic Families in WiÊnicz: 500; 110th Anniversary of Warsaw Philharmonic: 500

✓ ✓ ✓

Polish; Italian; other

✓ ✓

✓ ✓ ✓

WND

WND WND 2010

Grzegorz Piec

Emanuelle Dalnodar

Grand Catering ul. Koszykowa 1, 00-564 Warsaw NR 698-822-188/22 621-4258 kalina.tarasiuk@grandcatering.pl www.grandcatering.pl

WND 5.0 WND WND

WND 5.0 WND WND

WND 54 WND WND

Kisiel Awards - University of Warsaw Library 700; Komputronik 15th Anniversary: 200; The Bright Night event for Pernod Ricard Polska: 300; Projekt Pokolenie - 1st Anniversary: 600; Language Gala in the Warsaw University of Technology building: 300; 6 events for Polish Radio: 900

✓ ✓ -

Mediterranean; French; Italian; Polish

✓ ✓

✓ ✓ ✓

“Zdrowe Dzieciaki” Project - ecocatering for nurseries, kindergartens, schools in Warsaw and in the nearest area

20 35 2003

Jakub Pa∏aszewski

Krzysztof Kostro

Prominentis ul. Foksal 3/5, 00-366 Warsaw NR 22 827-8716/22 826-5337 info@restauracjavillafoksal.pl www.restauracjavillafoksal.pl

WND WND WND WND

WND WND WND WND

WND WND WND WND

FLESZ: 700; Jubilee ZPiT Warszawianka in PKiN: 300; 18th birthday of Elle magazine in Space Design: 300; FAKT birthday: 200

✓ ✓ -

International with Polish and Italian emphasis

✓ ✓

✓ ✓ ✓

Decorations; necessary equipment to provide catering; assistance in finding venue for the event; lighting; sound; art. Direction

WND WND 1992

Grzegorz Wawrzyniak

Pawe∏ Chmielewski

Restauracje 99 Sp. z o.o.

Al. Jana Paw∏a II 23, 00-854 Warsaw NR 22 620-1999/22 620-1998 karolina.drabik@restaurant99.com www.restaurant99.com

WND WND WND WND

WND WND WND WND

WND WND WND WND

Events for Biog, PwC, T-Mobile, Mazurkas Travel, Wyborowa, Ernst & Young, Nike, Toyota, K&L Gates, PZU, Enea, Nissan, Chiesi, Lafarge

✓ ✓ -

Polish with regional products from local suppliers with international influences

✓ ✓

✓ ✓ ✓

Equipment and furniture leasing; decorations; live music; lightning; culinary shows; culinary lessons; unconventional orders

10 WND 1997

Arkadiusz Janczarek

Karolina ThenPaszkowska

Sheraton Catering Services ul. B. Prusa 2, 00-493 Warsaw NR 22 450-6100/22 450-6901 magdalena.maciejewska@sheraton.com www.sheratoncatering.pl

WND WND WND WND

WND WND WND WND

WND WND WND WND

T-Mobile: 4,000; European Economic Congress in Katowice: 3,000; banquet in honor of The Royal Couple of Norway in Teatr Wielki: 450; OBI picnic: 5,000; dinner for VOLVO: 1,800

✓ ✓ -

Mediterranean; international; oriental; fusion; themed

✓ ✓

✓ ✓ ✓

Decorations; necessary equipment to provide catering, assistance in finding venue for the event

WND WND 1997

Artur Grajber

Rank

Number of catering employees / Total number of employees / Year founded in Poland

Type of events served

21

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

Revenue from catering (z∏. mln)

Total revenue (z∏. mln)

Number of events served

Company activity: Largest events catered in Catering / 2012: Number of participants Restaurant / Canteen operator

Type of cuisine

Banquets Buffet / with wait Drink-bar / staff / Smorgasb Mass ord events

Other services offered

2012 / 2011 / 2010 / 2009

Notes: NA = Not Applicable, NR = Not Ranked, WND = Would Not Disclose. Research for The List was conducted in April 2013. Number of employees as of April 2013. All information pertains to the companies’ activities in Poland. Companies not responding to our survey are not listed.

Footnotes: (1) Financial year: September 1 - August 31; (2) Financial year: October 1 - September 30.

Top local executive / Title

President

Goncalo Duarte Silva General Manager

To the best of WBJ ’s knowledge, the information is accurate as of press time. While every effort is made to ensure accuracy and thoroughness, omissions and typographical errors may occur. Corrections or additions to The List should be sent, on official letterhead, to Warsaw Business Journal, attn. Monika Brysiak, ul. Elblàska 15/17, 01-747 Warsaw, via fax to +48 22 257-7500, or via e-mail to online@bookoflists.pl. Copyright 2013, Valkea Media SA. The List may not be reprinted or reproduced in whole or in part without prior written permission of the publisher. Reprints are available.

22

SPORTS

www.wbj.pl

Soccer

DECEMBER 2-8, 2013

Basketball

Scraping the barrel Gortat shines

in his new club

Poland has been listed 78th in the latest FIFA ranking, its lowest position in history

Polish fans put on a good show no matter what qualifying games, both against San Marino). This may explain why Poland has tanked in the table.

The ranking, like most lists of this kind, should be taken with a pinch of salt, however.

Poland would most likely beat many exotic teams which are ranked higher. But it also has a direct connotation when it comes to drawing the qualifying groups for the 2016 European Championship in February next year.

With the current ranking,

Poland looks to be seeded in the fourth pool (out of six), a far cry from 2006 when Poland was ranked 16th and was seeded in the second pool for the 2008 European Championship. The higher the pool, the easier the qualifying group can be – theoretically – as teams from the same pool cannot be drawn into the same group.

Spains leads the current FIFA ranking, followed by Germany and Argentina.

Jacek Ciesnowski

Marcin Gortat is on fire in the current NBA season, his first as a member of the Washington Wizards. The “Polish hammer” has been averaging 13.2 points and 9.5 rebounds per game so far, much better than his overall career statistics of 8.8 points and 7 rebounds.

Despite Mr Gortat’s stellar performance, his club is not doing that well, with seven wins and eight losses so far this sea-

son. However, if the regular season ended now, the Wizards would advance to the play offs and their situation could change in a stroke as there are a number of teams with similar records.

The difference the Polish center has brought to the team was best seen in the Wizards’ win last week against the Milwaukee Bucks, clocking in at 100-92 in overtime. Mr Gortat set his season record scoring 25 points. “I felt like an 18-yearold today. Running up and down, I felt good. I believe I’m in great shape right now,” Mr

Gortat said after the game. “I’m glad my team gave me chances on the post and I was able to go to work. I’m really excited I was able to help the team,” he added.

Mr Gortat’s performance this year is very crucial for him, as his current NBA deal expires at the end of the season. The better he plays, the better his next contract will be, which for the Polish hammer, who will be 30 after this season ends, will most likely be the last high-paid deal he signs before he reaches veteran status.

Jacek Ciesnowski

COURTESY OF FLICKR/KEITH ALLISON

SHUTTERSTOCK

Ever since the International Federation of Association Football (FIFA) started ranking national teams in 1992, Poland has never been so low on the list. Currently 78th, the country’s national team has dropped by nine spots compared to previous standings.

This means that the Polish squad is now ranked worse than such soccer powerhouses as Libya (63rd), Haiti (73rd), Sierra Leone (74th) or Uzbekistan (68th).

When ranking all 209 FIFAmember national teams, the federation takes into account such factors as match results, their status (whether it’s a friendly game or not), as well as opponents’ strength, among others. Teams’ actual scores in the FIFA ranking are a result of the average points gained over each calendar year, while matches from the previous four years are considered, with more weight being given to recent ones.

Poland played 13 times in 2013 and won only five matches (including two World Cup

The Polish center is having the best season so far in his NBA career

Marcin Gortat (white jersey) has been on a roll recently

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

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

Simonis Gallery ul. Burakowska 9 www.simonisgallery.com

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

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

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

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

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

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

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

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

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

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

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

LIFESTYLE

DECEMBER 2-8, 2013

Concert

www.wbj.pl

23

Exhibition

Jazz Diva comes to town A short account of destruction Warsaw from above Ongoing until the end of the year History Meeting House ul. Karowa 20

Dianne Reeves December 14 Teatr Wielki Warsaw Dianne Reeves, one of the most influential jazz vocalists of the contemporary era, will visit Poland for one concert only in mid-December.

With 18 studio albums in her back-catalog, Ms Reeves is an accomplished artist. She is the only singer to have won a Grammy for three consecutive albums (also winning a fourth one for her soundtrack to “Good Night,

and Good Luck.”). She was additionally chosen to sing at the closing ceremony of the 2002 Winter Olympic Games, held in Salt Lake City.

“She has one of the most powerful, purposeful and accurate voices of this or any time,” said Wynton Marsalis complimenting Ms Reeves’ amazing vocal skills.

At her Warsaw show she will be backed by a world-class band, consisting of her musical director and arranger Peter Martin, a globally renowned

jazz pianist. Romero Lubambo, a Brazilian guitar virtuoso, Bassist Reginald Veal and versed drummer Terreon Gully complete the line-up.

Ms Reeves will present songs from her upcoming album “Beautiful Life,” which, along with orginal material, will present memorable covers of such classics as Bob Marley’s “Waiting in Vain,” Fleetwood Mac’s “Dreams” and Marvin Gaye’s “I Want You.” Jacek Ciesnowski

Tickets start at z∏.110

COURTESY OF DIANNEREEVES.COM

ments like other European cities. They simply got leveled.

These pictures are heart breaking, as they show the last moments of a once cosmopolitan metropolis before it was ultimately destroyed. To this day, Warsaw has not fully recovered from the bombardments and the era of communism that followed World War II. The exhibition is back by popular demand. It was first displayed in 2009, but due to high interest it’s on display again.

Jacek Ciesnowski

For more information log on to: dsh.waw.pl/en/3_150

COURTESY OF NATIONAL ARCHIVES IN COLLEGE PARK

Diane Reeves

These photographs, taken between 1940 and 1945 by Luftwaffe pilots, show the timeline and scale of destruction in Poland’s capital. By looking at them chronologically, viewers can see how the borders of the Warsaw ghetto changed or how the front lines moved during the Warsaw Uprising.

The photos are accompanied by drafts and commentaries by Zygmunt Wa∏kowski, a photographer who special-

izes in World War II-era photography. He discovered the collection in 2007 in the US National Archives, where they were stored for decades without anyone realizing their historic significance.

The pictures show vast destruction that the city endured, both from German and Soviet forces. During the course of World War II, some 90 percent of the city was razed with the most of the destruction occurring after the Warsaw Uprising as a form of Nazi retribution on the proud city and its inhabitants. This is the reason why Poland’s capital is not so rich in historical monu-

Luftwaffe picture from late 1944

To advertise in WBJ’s classifieds section, contact Agnieszka Brejwo, at (+48) 222-577-526 or abrejwo@wbj.pl