wbj #14 2012
DESCRIPTION
Warsaw Business Journal, vol. 18, #14, April 9-15, 2012TRANSCRIPT
VOLUME 18, NUMBER 14 • APRIL 9-15, 2012 . z∏.12.50 (VAT 8% included) . ISSN 1233 7889 INDEX-RUCH-332-127
FedEx goes PolishThe American courier company is set to take
over Polish firm Opek for an estimated z∏.100
million
5
Since 1994 . Poland’s only business weekly in English
WW
W.W
BJ.P
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Going NuclearPoland is moving ahead with plansto build its first nuclear power plant,but opposition is strong
10, 12-13
Jumping shipJanusz Palikot says a number of Civic
Platform MPs will defect to his party
following Euro 2012
3, 11
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Exploration for shale gasin Poland is intensifying
Poland plans to bana Monsanto maize crop
Is Belvedere goingto sell Sobieski Vodka?
News . . . . . . . . . . . . . . . . . . . . . . .2-4
Business . . . . . . . . . . . . . . . . . . . .5-6
Finance & Economics . . . . . . . . . . .7
Interview . . . . . . . . . . . . . . . . . . . .8-9
Opinion & Analysis . . . . . . . . .10-11
Cover Story . . . . . . . . . . . . . . . .12-13
Lokale Immobilia . . . . . . . . . . .15-17
The List . . . . . . . . . . . . . . . . . . .18-19
Markets . . . . . . . . . . . . . . . . . . . . . .20
Sports . . . . . . . . . . . . . . . . . . . . . . .21
Lifestyle . . . . . . . . . . . . . . . . . . . . .22
Last Word . . . . . . . . . . . . . . . . . . . .23
REAL ESTATELokale Immobilia
• Port Praski scheme
• Pasa˝ Grunwaldzki
expansion
• Prologis sells
warehouses
15-17
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In this issue
Interview:Marek RockiThe PO senator
discusses controversial
legislation
8-9
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‘The Spies of Warsaw’The BBC and TVP will
produce a pre-World
War II drama set
in Warsaw 4
0
20
40
60
80
100
Romani
a**
Slovak
iaPoland
GermanyEU27UK
FranceSpa
inGree
ceCypr
us*
*Highest in EU27**Lowest in EU27
APRIL 9-15, 2012NEWS2 www.wbj.pl
Egg prices soar
The price of eggs rose
sharply across Central
and Eastern Europe last
week, as demand spiked
ahead of the Easter
holiday and stricter
European Union rules for
chicken farmers took
effect. EU rules forcing
farmers to provide bigger
cages for laying hens has
led to a drop in the supply
of eggs. The average
price of eggs in mid-
March more than doubled
compared to the same
period of last year in
Bulgaria, the Czech
Republic and Poland.
Marta
Kaczyƒska to
enter politics? The appearance of Marta
Kaczyƒska, the daughter
of late President Lech
Kaczyƒski, at a recent
European Parliament
hearing on the Smolensk
airplane tragedy, has
once again given rise to
speculation that she may
enter Polish politics,
reported Polska The
Times. If she does, Law
and Justice would likely
be the party she would
choose, since her father
helped found it.
Google Art
Project in
PolandThe collections of the
Museum of Art in ¸ódê
and the Wilanów Palace
Museum can now be
viewed by people
worldwide as part of the
Google Art Project,
reported Gazeta
Wyborcza. Unveiled last
week, the Google Art
Project is an initiative set
to feature the art
collections of 151
partnering museums and
galleries from 40
countries.
PGNiG
demands lower
gas pricesPolish gas monopolist
PGNiG has asked
German gas supplier
Verbundnetz Gas (VNG)
to lower gas prices and
gas-transit fees,
Rzeczpospolita reported.
The demand concerns
the import of 0.4 billion
cubic meters of gas per
year. “I don’t see any
reason why we should
pay more for gas
imported from our
western border, than the
market costs in Europe,”
PGNiG chief executive
Gra˝yna Piotrowska-
Oliwa told the daily. ●
3Legs Resources ........5
Advent International ....5
APA Kury∏owicz
& Associates ..............16
APA Wojciechowski....15
Areva ..........................12
ARTE France ................4
Bank Gospodarstwa
Krajowego ..................16
Bank Zahodni WBK......7
BBC ..............................4
BBI Development NFI17
Belvedere Group ..........6
Blacklion NFI ............15
Bridgepoint ..................5
Brown-Forman ............6
Caleum Development 16
Chevron ........................5
Coface Poland..............6
ConocoPhillips ............5
Crowley Point Data ......5
Deutsche Bank ..........13
Dom-Bud....................21
Echo
Investment......15, 16, 17
EDF ............................12
Eko-Park ....................16
Eni ................................5
Euler Hermes ..............6
ExxonMobil ..................5
FedEx............................5
Futureal......................16
Gaz-System................12
GE Hitachi ..................12
General Electric ........12
Ghelamco ..................17
Globe Trade Centre....17
Google ..........................2
Hale Banacha ............17
Hines Global REIT
Poland Logistics
Holdings I LCC ..........17
Hines Poland..............17
Hitachi ........................12
HSBC............................7
Innova Capital ..............5
JEMS Architekci ........15
Jones Lang
LaSalle ................16, 17
JW Construction ........15
KBC Securities ............5
KGHM ..........................5
Lane Energy Poland ....5
Marathon Oil ................5
McDaniel & Associates
Consultants..................4
Mercury Engineering 16
Multikino ....................16
Naftoport ....................12
Netia ......................5, 17
Nordea Bank Poland ..7
Opek ............................5
Peter Nielsen &
Partners ......................6
Petrolinvest ..................4
PGE ............................12
PGE Energia Jàdrowa12
PGNiG ......................2, 5
PKN Orlen ....................5
Port Praski ................15
Prologis ................15, 17
PwC ............................17
Rank Progress ..........16
Saturn ........................16
Sobieski Group ............6
Tauron ....................5, 12
Tieto Poland ..............17
Toshiba ......................12
TVP ........................4, 15
Verbundnetz Gas..........2
VeriFone ....................17
Warbud ......................16
Warsaw Stock
Exchange................3, 16
Westinghouse ............12
W´glokoks ....................4
X-Trade Brokers ........20
Tuesday of this week marksthe second anniversary of theApril 10, 2010 Smolensk TU-154 airplane crash in whichPresident Lech Kaczyƒski, hiswife and 94 other people,among them top Polish mili-tary commanders and digni-taries, perished.
The catastrophe, which ini-tially united Poles in mourn-ing, has since become one ofthe most divisive elements inPolish politics and society ingeneral. Jaros∏aw Kaczyƒski,the twin brother of the latepresident and leader of theLaw and Justice (PiS) party,has suggested that his brotherwas assassinated and that thePolish government wasinvolved in a cover-up.
“How did the foreign min-
ister [Rados∏aw Sikorski]know just a few minutes after9 AM that everybody haddied?” the PiS leader askedrecently. He also said thatthere was a “propaganda cam-paign” surrounding the crash,which had been “planned ear-lier.”
Mr Kaczyƒski refusedPresident Bronis∏aw Komo-rowski’s invitation to attend aspecial mass on April 10 inmemory of the crash victims.Adam Hofman, spokespersonfor PiS, told journalists thatMr Kaczyƒski had “alreadyplanned that day much earli-er.”
The PiS leader is sched-uled to attend a separate masson April 10, before leading aprocession to the Presidential
Palace where he will addressan expected crowd of severalthousand people.
Mr Kaczyƒski is expectedto demand that the Russianauthorities return the wreck-age of the TU-154 planewhich crashed fatally near theRussian city of Smolensk.
Meanwhile, the ultra-con-servative newspaper GazetaPolska is organizing a protestmarch to the RussianEmbassy on April 9. “We wantto, without pulling our punch-es, tell the Russians and theirlackeys that we do not agreeto the Putinization of ourcountry – the Smolensk lieand the limiting of freedom inthe media and internet,” thenewspaper’s appeal reads.
Remi Adekoya
€68-80 billionis how much Poland can expect from the EU’s budget
for the period 2014-2020, according to RegionalDevelopment Minister El˝bieta Bieƒkowska.
70%is the percentage of working Poles who believe that ifthey lost their job they would find a similar one within
six months, according to a study by Randstad.
€800is the average gross monthly salary in Poland,
according to data from Eurostat.
13.3%was the unemployment rate in March, initial estimates
from the Ministry of Labor found. It was 0.2percentage points less than in the previous month.
“The decision [regarding the plane wreck]depends on one person. Vladimir Putin”
Justice Minister Jaros∏aw Gowin, speaking on radio RMF FM about his sched-uled trip to Moscow in May. Mr Gowin plans to repeat Polish requests that thewreckage of the TU-154 plane which crashed in Smolensk in April 2010, killingthen-President Lech Kaczyƒski and 95 others, be returned to Poland.
Quote of the Week
How to get fundingfor an e-business startupWBJ.pl sits down with Szymon Gawryszczak, CEOof the NewConnect-listed Agency of Innovationand Development (ARI), to talk about the optionsavailable for financing online business startups.Log on to wbj.pl to read more.
On WBJ.pl
Numbers in the News
Company index
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DATELINE
Smolensk crash anniversaryIN THE SPOTLIGHT
Figures in focus
Room to fillNet occupancy rates of bed places in hotels and similar estab-lishments in the summer season 2011, selected EU27 countries
Source:Eurostat
17 REAL GREEN SYMPOSIUM & FAIREvent: Expert presentations, debate, discussion
groups, workshops, exhibition and luncheonexamining the business case for green build-ing in emerging Europe.
Location: Warsaw Marriott HotelWeb: ceeqa.com/realgreen
17 9TH CEEQA GALAEvent: The annual CEEQA Gala is firmly established
in the sector calendar as the black-tie gath-ering of the year for real estate businessleaders, and one of Europe’s premium realestate events.
Location: Warsaw Marriott Hotel
Web: ceeqa.com
23-25 INTERNATIONAL HR CONGRES & EXPO
Event: The 15th edition of Poland’s HR Congress isunder the motto “HR – What’s the game weplay?”. The event will explore the strategicrole of HR within organizations. Invitedguests will present the most interestingexamples of the implementation of HR proj-ects, as well as share knowledge from theiryears of experience in the sector.
Location: Warsaw
Web: kongreskadry.pl
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APRIL 9-15, 2012 NEWS www.wbj.pl 3
Government
Pension deal, but Palikot tempts PO MPsJanusz Palikot iswilling to support thePM on pension reform,but he is also trying tolure coalition MPs tohis own party
Polish Prime Minister DonaldTusk appears to have securedthe support of Palikot’sMovement (RP), the third-largest party in parliament,for his plan to raise the retire-ment age to 67 years for menand women. He met withmembers of RP, including itsleader Janusz Palikot, lastweek, and said after the meet-ing that the pension reformlegislation would be ready inMay “with the president’s sig-nature.”
“Our parliamentary caucusis inclined towards supportingthe pension reform in parlia-ment or in the worst caseabstaining from voting,” MrPalikot said at a press confer-ence after the meeting.
The Civic Platform (PO)-
Polish Peoples’ Party (PSL)coalition has a narrow majorityin parliament. With main oppo-sition party Law and Justice(PiS) opposed to the pensionreform, an abstaining vote fromRP would be good news for MrTusk.
DefectionsBut Mr Palikot also announcedlast week that two MPs fromthe ruling PO would be crossingover to his party soon, saying hehad a “preliminary agreement”with them. The RP leader saidthe “transfers” would take
place in the second half ofApril. That would leave thecoalition with just one voteabove a majority.
This has led to speculationthat due to PO’s falling pollnumbers and the well-publi-cized frustrations of many of its
MPs at being marginalized intheir party, more transferscould be in the offing. Thiscould lead to the coalition los-ing its parliamentary majority.
However, Mr Palikotseemed to backtrack later inthe week, saying he wouldn’taccept more than two PO MPsuntil after the Euro 2012 soc-cer championships. Otherwise“we would have a crisis andpossibly snap elections,” hesaid.
“I am actually trying tokeep people from leaving POto join us rather than wooingthem,” said Mr Palikot.
A late March TNS OBOPvoter survey confirmed arecent downward trend inpopularity for the ruling party.PO had 29 percent support,followed by PiS with 25 per-cent. RP was third with 12 per-cent. In comparison, PO wasbacked by 39 percent of Polesduring last November’s parlia-mentary election, while RP got10 percent of the vote.
Remi Adekoya
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Janusz Palikot (right) says he is “trying to keep people from leaving PO”
Vote for Euro
2012 songFans will have the final
say on Poland’s official
team song for the Euro
2012 soccer champion-
ships, the Polish Football
Association (PZPN) said
last week. Entries for the
competition will be
accepted until April 13.
“The contest is open to
stars of the Polish music
scene and amateurs
alike,” PZPN said in a
statement. “The only
condition is that they
record a song with a
soccer theme, which will
inspire Poland’s team on
the pitch and get the fans
cheering louder still.”
WSE a
European
leader in IPOsIn the first quarter of
2012, the Warsaw Stock
Exchange saw 25 IPOs.
This made the WSE first in
Europe in terms of
debuts, according to
PwC’s latest “IPO Watch
Europe” report.
Compared to the same
period of last year,
however, the WSE saw a
significant decline in IPOs.
This reflects the situation
on all European
exchanges, which saw 58
IPOs in Q1 2012,
compared to 95 in Q1
2011.
Poland 53rd
in World
Happiness
Report
The first-ever World
Happiness Report,
released in April by the
United Nations, indicates
that the happiest
countries in the world are
in northern Europe, with
Denmark, Norway,
Finland and the
Netherlands, respectively,
taking the top four spots.
Poland took a mediocre
53rd place in the
happiness league.
Poles spend big
at Easter
Easter, although far
behind Christmas when it
comes to consumer
spending, is still an
important period for
businesses. This year's
Easter expenditures were
expected to reach
approximately z∏.12 billion
in Poland, which is around
half the amount spent at
Christmas, according to
figures from the Polish
Organization of Trade and
Distribution, cited by
Rzeczpospolita. ●
GMOs
Poland to banMonsanto maize cropEnvironmentalists fearthe EC will reject theproposal
Poland plans to ban the cultiva-tion of MON 810, a geneticallymodified maize crop made byUS company Monsanto, PolishAgriculture Minister MarekSawicki said last Wednesday.
The announcement came aday after environmental organi-zations protested in front of theChancellery of the Prime Min-ister, demanding the ban.
“European law forbids anydiscrimination against geneti-cally modified crops, but itallows for a national ban, pro-vided the ban is justified,” MrSawicki told reporters.
Mr Sawicki’s justification fora total ban of MON 810 is thatpollen from the crop could havea harmful effect on bees. It isinsect-resistant and the onlyGMO crop that can be legallycultivated in the EU.
Ecologists and environmen-tal experts have said that MrSawicki’s proposal is based onlegal grounds which could be
rejected by the European Com-mission, the Polish PressAgency (PAP) reported.
If Poland implements theban it will follow in the foot-steps of Austria, France, Ger-many, Greece, Hungary andLuxembourg, which have allbanned the cultivation of MON810 at different stages, saying itthreatens biodiversity.
The EC said France’s banwas illegal and the country hassince overturned it, but MrSawicki told journalists that thePolish justification has a greaterchance of being accepted.
Polish law forbids the trad-ing of GMO seeds, but the cul-tivation of the seeds themselvesis not banned. Many Polishfarmers therefore purchase theseeds in neighboring countriesand cultivate them in Poland.
Ecologists estimate that atpresent there are over 3,000fields in Poland where MON810 is cultivated, PAP reported.This poses a risk of contamina-tion of natural crops, whichcould in turn threaten Polishfood exports. ID
Euro 2012
Foreign hooligan databasemissing ahead of tournament
Two months before thetournament, theabsence of such a listhas raised securityconcerns
Poland does not have a data-base of foreign hooligans whohave been banned from stadi-ums in their own countries,according to a new report onsecurity during Euro 2012 bythe country’s National AuditChamber (NIK).
After a series of violentincidents last year, the govern-ment adopted a new law todeal with home-grown hooli-gans, allowing stadium bansand summary trials to deal withthem during Euro 2012. Butwith the championship’s open-
ing game in Warsaw aroundtwo months away, the lack ofan authoritative list of foreignhooligans has led to fears thatPolish authorities are not fullyprepared to cope with thepotential security threat theypose.
“There’s no functioning listin Poland of individuals hit bystadium bans abroad, becausethe police have been too slowin setting it up,” Jacek Jeziers-ki, the head of NIK said in arecorded statement on theinstitution’s website.
“To date, there haven’t beenany agreements with foreignpartners and there aren’t anylegal norms for this,” he said atthe launch of a report on secu-rity preparations ahead of Euro2012. “This could hamper
police efforts to ensure securityat Euro 2012, both inside thestadiums and out,” he added.
However, national policespokesperson, inspector Mar-iusz Sokolowski, said thereport’s findings do not indi-cate that the Polish police forceis unprepared.
“From the beginning, we’vesaid that on this issue we’ll besharing information with policeforces from the countrieswhose teams are taking part,”Mr Sokolowski told the AFP.
Meanwhile, Polish police,anti-terrorist forces and borderguards have been conductingsecurity exercises ahead ofEuro 2012, such as border con-trols and mock rescue opera-tions.
David Ingham
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The Polish police maintain they are prepared for hooligan problems at Euro 2012
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MON 810 is dangerous for bees, says Mr Sawicki
APRIL 9-15, 2012NEWS4
Petrolinvest
Kazakh
reserves
valued at $2.23
billion
McDaniel & Associates
Consultants, an
independent group of
experts, has valued
prospective oil and gas
reserves at Petrolinvest’s
Kazakh OTG concession
at more than $2.33
billion. The Polish oil and
gas exploration company
will, however, still have
to invest a considerable
amount before the
exploitation of the
reserves becomes
profitable, reported
Parkiet.
W´glokoks IPO
delayed?
The initial public offering
of Polish state-owned
coal trader W´glokoks
may take place in early
2013, rather than late
2012, as was previously
expected. This is because
market conditions are
more likely to be
favorable then, Deputy
Economy Minister
Tomasz Tomczykiewicz
told Dziennik Gazeta
Prawna. ●
www.wbj.pl
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Filming of “Spies ofWarsaw” is set tobegin in the capital inMay
British public television broad-caster the BBC, Poland’s publicbroadcasting corporation Tele-wizja Polska (TVP) and cultur-al network ARTE France haveagreed to create a joint produc-tion project based in Warsaw.
Filming for the new pro-duction, a two-part drama enti-tled “Spies of Warsaw,” willstart in the capital next month,executives from the two broad-casters announced at a pressconference last week.
The plot is based on theeponymous 2008 book by USauthor Alan Furst. Set in War-saw, Berlin and Paris in theyears leading up to World WarII, it tells the story of Frenchand German secret agentsoperating in a Europe livingunder the threat of war.
“We have big ambitions forSpies of Warsaw and for mak-ing it the beginning of a run ofadaptations of Alan Furst’snovels … With the story takingplace in Poland, France andGermany the adaptationoffers some really interestingcasting opportunities,” BenDonald, executive producerfor International Drama at
BBC Worldwide, said in astatement.
He added that the opportu-nity to work in Warsaw was anhonor and a pleasure, and thatthe British production teamhad already fallen in love withthe Polish capital.
The drama has been adapt-ed by writers Dick Clementand Ian La Frenais, and willstar Scottish actor David Ten-nant as Colonel Jean-FrancoisMercier, an attache at theFrench Embassy in Warsaw.Mr Tennant is best-known for
his role in the long-runningBBC series “Doctor Who.”
English film and TV actressJanet Montgomery, whoappeared in 2010 thriller“Black Swan,” will co-star asColonel Mercier’s love interest.
Spies of Warsaw, which willair on BBC 4 in the autumn,will be directed by Englishdirector Coky Giedroyc. She isthe daughter of MichalGiedroyc, a historian of Polish-Lithuanian descent who emi-grated to the UK in 1947.
David Ingham
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Scottish actor David Tennant will play Colonel Jean-
François Mercier in the drama
Remittances
Overseas Polessending less moneyback homeThis could be becausemore Polish citizensare settlingpermanently inforeign countries
Polish citizens living overseasare sending less money back totheir home country each year,a development which expertssay supports the idea thatmore of them are settlingabroad for good.
In 2011, Poles living andworking abroad sent aroundz∏.17 billion back to Poland,according to figures from theNational Bank of Poland.That’s z∏.0.5 billion less than in2010, and z∏.3 billion lowerthan in 2007.
After buying homes, find-ing jobs and starting families intheir adopted countries, thetendency to send money backto Poland is no longer asstrong for many Poles, expertssay.
Some experts suggest thereduction in money being sentback to Poland may also be theresult of the return home ofmany Poles after short stints
living overseas.“Some Poles returned
home either because they losttheir jobs, or because theynever planned on settlingabroad,” Janusz Czapiƒski, aprofessor of psychology at theUniversity of Warsaw, toldnews station TVN24.
In general, the number ofpeople seeking short-termemployment abroad hasdropped significantly in recentyears. This is partly due to theeconomic crisis, since fewerpeople are now emigrating forshort periods of time, becauseit is harder to find short-termbut well-paid work.
“The crisis made wages inthe West lower than they werein previous years,” HenrykDomaƒski, a sociologist at thePolish Academy of Sciences,told TVN24.
Since Poland’s entry intothe EU in 2004, emigrants havesent back over z∏.132 billion.
According to Central Sta-tistical Office data, 189,655Poles moved out of the coun-try permanently between 2004and 2010.
Izabela Depczyk
Television
BBC, TVP shoot spy drama
Polish courier company Opekis set to be taken over byAmerican giant FedEx, for anundisclosed amount. Althoughthe value of the acquisition hasnot been revealed, analystsestimate it could be worthabout z∏.100 million.
An agreement was signedlast Thursday, with the trans-action expected to be finalizedby the end of the summer,after necessary regulatoryapproval has been secured.
Opek, a family-owned com-
pany, was founded in 1994 andhas since built up a well-estab-lished network which coversthe whole of Poland. In total,the company operates 44 sta-tions throughout Poland, andemploys more than 1,200 work-ers.
FedEx said in a statementthat it expects the takeover toprovide its FedEx Express sub-sidiary with approximately $70million in annual revenues andthat it forsees an annual volumeof 12.5 million shipments.
The acquisition of Opek ispart of the company’s ongoingexpansion in Europe.
“In recent years, we havemade significant investmentsthroughout Europe. [Our]strategy has steadily advancedour position in the region, andwe are well positioned for prof-itable growth as we increase thenumber of direct-served loca-tions in Europe,” said Freder-ick W. Smith, chairman, presi-dent and CEO of FedEx Corp.
David Ingham
FedEx acquires Opek
APRIL 9-15, 2012 BUSINESS www.wbj.pl 5
The number ofexploratory wells inPoland is expected tomore than double in2012
This year will see 49 new wellsdrilled around the country inthe search for shale gas, accord-ing to the Polish Ministry ofEnvironment. That’s more thandouble the 22 wells drilled in2011. By 2017, the ministry esti-mates that the number of explo-ration wells may soar to 248.
So far, the Ministry of Envi-ronment says investments rela-ted to shale gas exploration inPoland amount to z∏.2 billion.
From the 49 wells envi-sioned in 2012, 38 will be drilledby foreign-owned companies,and 11 by state-owned firms.
A number of foreign oilgiants hold exploration conces-sions for shale gas in Poland,including ExxonMobil, Chev-ron, ConocoPhillips, MarathonOil and Eni.
“We have drilled one well(G6) in Horodysko on ourGrabowiec concession. We justended exploratory drilling, wehave gathered the shale rocksamples and we are testingthem now. We recently startedanother exploratory well inAndrzejów on the Frampol 1concession. We plan to drill atleast three exploratory wells bythe end of 2012,” said Gra˝ynaBukowska, policy, governmentand public affairs manager atChevron Polska Energy Re-sources.
Kamlesh Parmar, countrymanager for Lane Energy
Poland, said that 3Legs Re-sources, Lane Energy’s parentcompany, will be drilling a fur-ther vertical test well this yearand is considering options fortwo horizontal wells that weredrilled in 2011.
Meanwhile, Polish state-controlled companies, whichthe government has urged toinvest and cooperate in the sec-tor, are also planning to step upinvestments and explorationactivities this year.
Polish refiner PKN Orlen’spresident Jacek Krawiec saidlast week that his firm intendsto spend “much more than thez∏.700 million [previously] an-nounced for the next fiveyears,” on shale gas explora-tion. This year alone, Orlenplans to drill six vertical wellsand two horizontal wells at its
Lubelszczyzna shale gas con-cession, Mr Krawiec toldRzeczpospolita. The firm alsoplans to carry out hydraulicfracturing.
Ma∏gorzata Olczyk, a spo-kesperson for gas monopolyPGNiG, said the firm intends tofocus on two licenses in the nearfuture: Wejherowo in northernPoland, where work on theLubocino-1 well is progressing,and Tomaszów Lubelski, wherePGNiG drilled the LubyczaKrólewska well in March.
Three large domestic com-panies – PGE, Tauron, andKGHM – also plan to startshale gas exploration in differ-ent capacities. In January 2012,they signed three separate let-ters of intent with PGNiGregarding cooperation in shalegas projects. Alice Trudelle
Energy
Polish, foreign firms to step up shale gas investments
Three parties arereportedly interestedin buying the z∏.2.5billion telecomcompany Ownership of Poland’s sec-ond-largest telecoms compa-ny, Warsaw Stock Exchange-listed Netia, could soonchange hands. Three private-equity firms are interested inacquiring the firm, Reutersreported last week citingunnamed sources. Netia is val-ued at around z∏.2.5 billionaccording to its share price.
According to the newsagency, the three firms – War-saw-based Innova Capital andtwo other funds, Advent Inter-national and Bridgepoint – willsoon start due diligence on thetelecom company.
“Three investment fundswill start due diligence in Netiaafter Easter. One of them isInnova Capital, another islinked to [Polish cellphone
operator] Play,” a source fa-miliar with the situation toldReuters.
The news caused Netia’sshare price to grow by 3.3 per-cent last Tuesday, its strongestintraday rise since November2001. At close on Friday, thefirm’s share price stood atz∏.6.28.
Piotr Janik, an analyst atKBC Securities, said it is not asurprise that due diligence isbeing carried out on Netia,since a number of potentialinvestors have shown an inter-est in the company over thecourse of the last year. Thedue diligence process should
not take long, said Mr Janik.More details are expected tocome to light towards the endof Q2.
If one of the private equitycompanies ends up buyingNetia, it would likely want topurchase as close to 100 per-cent of the company as possi-ble, restructure it and sell it on.“Private equity funds shouldoffer a premium over currentprices,” Mr Janik said.
Netia increased its marketshare last year by buying small-er competitor Dialog from cop-per miner KGHM and tele-coms service provider CrowleyPoint Data. Roberto Galea
Telecommunications
Equity firms circle Netia
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Drilling awayExploration concessions granted by the Polish EnvironmentMinistry, April 1, 2012
Source: Environment Ministry
Netia in numbersFinancial information for Netia, 2009-2011 (in z∏. billions)
Year Revenues EBITDA Investments
2009 1.50 0.31 0.25
2010 1.57 0.58 0.20
2011 1.60 0.61 0.24
Source: Netia
Capital group Number of concessions
PGNiG 15
Petrolinvest 14
Marathon Oil Company 11
3Legs Resources 9
San Leon Energy and Realm Energy International 9
Grupa Lotos 7
PKN Orlen 7
Basgas Pty 6
BNK Petroleum 6
ExxonMobil Corporation 6
Emfesz 5
Eni 3
Talisman Energy Polska 3
Chevron Corporation 4
Cuadrilla Resources 2
Dart Energy 1
Aurelian Oil and Gas 1
Mac Oil 1
APRIL 9-15, 2012BUSINESS6
Government
to sell
frequencies
The Polish government
plans to sell radio
frequencies to telecom
companies and earn
several billion z∏oty from
the deals, said Tomasz
Arabski, the PM’s chief of
staff, Dow Jones
Newswires reported. The
frequencies, which are in
the 800 MHz range, will
be vacated by the army
and will be used for high-
speed mobile-internet.
Spending plans
on track
Spending plans for EU
funds were for the most
part fulfilled in the first
quarter of this year. In
total, z∏.10.2 billion was
spent, or about 95.7% of
the EU funds allocated
for the first quarter. By
the end of March,
Poland declared that
20.3% of the EU funds
allocated to the country
for 2012 had been spent.
In this quarter, that
number is expected to
rise to 23%. ●
www.wbj.pl
Contact: Miros∏aw Stefanik
Legal News
BROUGHT TO YOU BY PETER NIELSEN & PARTNERS LAW OFFICE
TimesharesAn act passed on September 16, 2011 gov-erning timeshares will become binding onApril 28 this year. At the same time, an actprotecting the right of the buyer to usebuildings or residential premises will ceaseto be binding. The term “timeshare” meansthe right to use property, especially realestate (e.g. tourist resorts, hotels, guesthouses and apartments), at specific timesagreed to in a contract.
The new act will cover not only realestate (as has been the case until now)but also other kinds of accommodation,such as rooms on cruise ships. The actdefines new rules and procedures forconcluding four types of agreementbetween an entrepreneur and a con-sumer. These cover: timeshare contracts,agreements on long-term holiday bene-fits, agreements concerning agents whooffer timeshares and agreements on theexchange of timeshare products.
Among other things, the act imposeson entrepreneurs the duty to deliverdetailed and adequate information to con-sumers concerning agreements regulat-ed by the act. It also regulates the rulesconcerning consumers who withdrawfrom such agreements without providingany reasons. Moreover, it defines thescope of entrepreneurs’ duties when itcomes to looking after the accommoda-tion and ensuring it is in a fit state for use.It also defines rules establishing entre-preneurs’ responsibility for replacingdefective items.
Easier inheritance in the EURules concerning inheritance in the EU insituations where provisions of different EUmember states overlap will soon be simpli-fied. Each year there are about 450,000such disputable cases. In the middle ofMarch, the European Parliament adopted arelated regulation, which was then passedon to the Council of the European Union.EU regulations are general in nature and arebinding entirely and directly for all mem-bers.
Nowadays, each member state has sep-arate provisions concerning inheritance.This often results in complex disputes if thedeceased person has lived abroad or if thatperson’s partner was a citizen of anothercountry. The new provisions stipulate that indisputable cases, the applicable law will bethe law of the country where the interestedparty is domiciled. However, this person willbe able to change this so the law is appliedin accordance with the provisions binding inthe country of his or her birth.
The provisions mean that parties will beable to avoid situations where two differentcountries issue two different judgments.The new law will not influence those EU cit-izens who reside in the country of their birthand who do not own real estate in othercountries. The provisions will not be bindingfor the UK or Ireland. The draft of the newlaw also stipulates the creation of the Euro-pean Inheritance Certificate. This will allowthe interests of heirs, credit-providers andother relevant authorities to be secured. Theuse of this certificate is to be voluntary. ●
Transport tax
Firms to pay for localpublic transportation costs
The move has drawnstrong criticism fromthe private sector
Poland’s government is pre-paring a new tax for businessesthat will help finance localtransport costs.
Local authorities are cur-rently having difficulties bal-ancing their budgets for publictransportation costs, with tick-et-price increases havingalready been announced ineight Polish cities so far thisyear.
But the government is nowbanking on an alternative solu-tion, based on the Frenchmodel of public transportationfinancing. Since the 1970s, all
companies in France hiringmore than nine employeeshave been required to supportthe local public transport serv-ice, via a tax payment, unlessthey provide their own trans-port for employees.
In Poland’s new plan, localgovernments will have theright to choose the amountbusinesses pay, although themaximum amount will be out-lined in a new law.
Polish business leadershave reacted with consterna-tion to the news of the pro-posed new tax. “This is a terri-ble idea,” said Maciej Gre-lowski, chairman of the centralcouncil at the Business CentreClub, and an expert on infra-
structure and transport. “The central authorities
should be alleviating costs, notincreasing them. This is justanother burden put on to entre-preneurs and businesses. Thiswill only increase the financialcollapse of small and mediumbusinesses, and will surely havea negative effect on big businesstoo. Central authorities shouldbe privatizing and not commu-nizing,” Mr Grelowski added.The bill, whose stipulations arerecognized by the EU as beingbest practice for the funding ofpublic transport, will be pre-pared for parliament by the endof 2012.
David Ingham, Izabela Depczyk
Drinks market
Jack Daniel’sowner to take over Sobieski?Brown-Forman isreportedly the favoriteto acquire the Polishvodka brand
US company Brown-Forman,owner of whiskey brand JackDaniel’s, is reportedly close towinning the race to buySobieski Vodka, a Polish vod-ka brand owned by France’sBelvedere Group. In total, 10investment funds and nineindustry investors are compet-ing to take over Sobieski Vod-ka, Rzeczpospolita reported,citing sources familiar with thesituation.
The brand, which has beenadvertised in recent years byHollywood star Bruce Willis,may fetch up to €650 million,analysts say. The sale is likelyto be completed in the secondhalf of 2012.
However, when contactedby WBJ, Marcin Meyer, aspokesperson for SobieskiGroup, declined to confirmwhether Sobieski is indeed up
for sale. “I can neither deny nor con-
firm whether Belvedere Groupwill be selling Sobieski. What Ican say is that Belvedere is defi-nitely selling some of its brands.I cannot disclose which ones,”said Mr Meyer.
“Belvedere Group is sellingsome if its brands in order todecrease its debt but I cannotdisclose who the potential buy-ers are,” he added.
According to Polish dailyParkiet, Belvedere Grouphopes to pay off debts of€550 million by autumn ofthis year. Company presidentKrzysztof Tryliƒski has re-portedly said that the grouphopes to obtain the moneythrough the sale of variousbrands, one of which isSobieski Vodka.
Last year, industry maga-zine Millionaires rankedSobieski eighth in a list of theworld’s most popular vodkas.
David Ingham, Izabela Depczyk
Bankruptcies
Insolvencies on the riseamong Polish firmsThe hardest hit in thefirst quarter of thisyear were small andmedium businesses
Poland might be a relativelysafe haven amid the ongoingeconomic storms afflicting therest of Europe, but that doesnot mean Polish companieshave it easy.
French credit insurancecompany Euler Hermes hasreported that 227 Polish busi-nesses declared bankruptcy inthe first quarter of this yearalone. That represents a jumpof 18 percent from the 193bankruptcies recorded in thesame period a year earlier.
According to court deci-sions published for Q1 2011and 2012, in the first quarter oflast year, the number of bank-ruptcies rose by about 6 per-
cent y/y. This means insolven-cies in Q1 2012 grew threetimes faster than in the sameperiod last year.
Meanwhile, another re-port by credit insurer CofacePoland indicates that thenumber of bankruptcies inQ1 was lower (at 181). Itshowed that most of the enti-ties which went under in thefirst three months of 2012were small- and medium-sized companies. Of the com-panies whose financial datawas accessed by Coface, 37percent were companies withturnovers of up to z∏.5 mil-lion, while 54 percent werecompanies with revenuesbetween z∏.5 million andz∏.50 million. “Large compa-nies with a turnover exceed-ing z∏.100 million accountedfor only four percent of
bankruptcies,” the companywrote in a statement.
In both Coface and EulerHermes’ analyses, construc-tion companies fared theworst. Coface data indicatethat bankruptcies in the con-struction sector made up 23percent of the total, whereasjust two years ago construc-tion-sector bankruptcies ac-counted for just 10 percent.
“The infrastructure con-struction sector has long had aproblem with low profitability,and in many cases, the lack ofit,” Euler Hermes wrote. Butover the coming months pro-duction and distribution com-panies could also start to feelthe pressure.
Coface said that the major-ity of bankruptcies in Q1 wereregistered in the Mazowieckievoivoidship. Roberto Galea
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Local authorities are struggling to pay for public transport costs
APRIL 9-15, 2012 FINANCE & ECONOMICS www.wbj.pl 7
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Manufacturing
PMI reading rises inMarch, but only slightlyThe result suggestseconomic growth willslow this year
Poland’s manufacturing Pur-chasing Managers’ Indexreading came in at 50.1 inMarch, up only slightly onthe 50 recorded in February.A PMI figure of over 50 indi-cates manufacturing expan-sion, while anything below 50signifies contraction.
“The PMI is marginallydisappointing and fits withexpectations of slowinggrowth in 2012,” bank HSBCsaid in a statement.
Nevertheless, the figurewas slightly better thanexpected, since the marketforecast a reading of 49.6prior to the release of thedata. “The upside surprise isnot big enough to move the[z∏oty], although the relative-ly strong reading is a confir-mation that the Polish econ-omy remains resilient, whichis supportive for the localcurrency,” Nordea BankPoland wrote in a statement.
In its analysis of the read-ing, HSBC wrote that theunderlying weakness of busi-
ness conditions reflected alack of incoming new work.
“The volume of new busi-ness received declined mar-ginally, the fourth contrac-tion registered by the surveysince last November. Datasignaled that demand in bothdomestic and export marketswas weak, as new exportorders were unchanged com-pared with February.”
Agata Urbaƒska, econo-mist, Central and EasternEurope at HSBC, said that“along with weaker thanexpected industrial produc-tion data in February andweak labor market data,PMI data for the last coupleof months contrasts withgrowth resilience in the lastquarter of 2011. ”
Gareth Price
47.0
49.5
52.0
54.5
57.0
March
Februa
ryJan
uary
December
November
October
Septem
berAug
ustJulyJune
MayApril
March
2011 2012
* Indicates improvement on the previous month
*
Head above water Poland’s PMI, March 2011– March 2012
Source: Markit
Interest rates
Headline rate left unchanged Indications are,however, that nextmonth could see arate-hike
The National Bank of Poland’sinterest rate-setting MonetaryPolicy Council (RPP) left thereference rate at 4.5 percent ata meeting last Wednesday,meaning the country’s maininterest rate has remainedunchanged since June lastyear. This is despite inflation,which came in at 4.3 percent inFebruary, remaining wellabove the NBP’s target of 2.5percent.
The RPP arrived at its deci-sion because “the expectedmild economic slowdown inPoland over the monetary pol-icy horizon increases the prob-ability of inflation remainingabove the target in the medi-um term,” the RPP wrote in astatement.
Nevertheless, Poland’smonetary policy makers haveindicated that they will con-sider tightening monetarypolicy in the near future,unless signs of considerableeconomic weakening inPoland appear.
In a conference last Wed-nesday, NBP president MarekBelka said that a hike couldcome as early as May. “[The
decision] hinges on the wholedata package: industrial pro-duction, retail sales, the labormarket, wages, employment.All these measures will deter-mine whether we’ll consider apotential interest rateincrease next month.”
“A possible rate increasewould be a demonstration ofour faith in the strength of thePolish economy,” Mr Belkaadded.
However, upcomingmacroeconomic data forMarch is forecast by manyanalysts to indicate a slowingeconomy. According to BankZahodni WBK, this makes itlikely that the RPP will not
increase borrowing costs anytime soon.
“A clear slowdown in pro-duction and wage growth inMarch, predicted by us,[would make] a scenario ofrate hikes less likely,” thebank’s analysts wrote.
“That is why we anticipatea flat interest rate until theyear-end in our base scenario.Still, there is a clear rise in theprobability of a rate hike, asthe elevated inflation is test-ing the patience of the RPP,which is close to a decisionabout policy tightening in aneffort to protect its anti-infla-tionary reputation.”
GP, DI
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TA
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UN
D
A rate increase would show the NBP’s “faith in the
strength of the Polish economy,” says Marek Belka
APRIL 9-15, 20128 www.wbj.pl INTERVIEW
Record NBP
profitThe National Bank of
Poland made a record
z∏.8.6 billion profit last
year, of which around
z∏.8.2 billion will go to the
state budget. From the
NBP’s 2010 profit, around
z∏.6.2 billion was
transferred to the state
budget, reported Parkiet.
The transfer will reduce
Poland’s national debt by
around 0.5 percentage
points.
EC reexamines
allocations
A recent audit conducted
to examine Poland’s
railroad modernization
programs has found that
Poland will most
probably not be able to
use all of the EU funds
allocated for this
purpose. The European
Commission is currently
evaluating a proposal to
transfer €1.2 billion
from rail projects to road
modernization projects.
The government, which
strongly backs the
proposal, has already
highlighted 63 of the
most viable road
projects.
Polish salaries
below EU
averageMismanagement and old
technology often prevent
Polish companies from
exploiting the full
potential of their
employees, reported
Dziennik Gazeta Prawna.
As a result, Polish
workers earn much less
than the EU average.
The average gross
monthly salary in 2011
amounted to €800 in
Poland, compared to
€2,177 in the EU27. In
the case of Poland, this
marks an increase of
some 33% compared to
2005. ●
Lawmaking
Behind the scenes: the workings
Ewa Boniecka: In the pastmany people have said thatthere is no need for theSenate in Poland’s politicalsystem. Few are saying thatnow, yet how do you, as asenator serving in his thirdterm, view the legislative andpolitical role of the Senate inPoland?Marek Rocki: Poland has hada modern democracy in placefor just 20 years now … untilthe political transformationin 1989, there was one cham-ber of parliament, the Sejm,and it was completely underthe supervision of the rulingcommunist party. Since 1990,we have had to shape a newpolitical system and learnhow parliamentary democra-cy works. The existence ofthe Senate, the upper cham-ber of parliament, is totallylegitimate and strengthensthe democratic system. Thisis especially the case now,because since 2011 we have anew system for electing sena-tors, involving 100 single-member constituencies.
So in my opinion, theprestige of the Senate is com-monly acknowledged. Ofcourse, senators have theirown defined political viewsand the majority of us areassociated with political par-ties, while there are also afew independent senatorssupported by their own com-mittees. What is most impor-tant, however, is the role the
Senate plays in introducinglaws. Legislation approved inthe lower house of parlia-ment, the Sejm, is looked atin the Senate and analyzed inthe light of the constitution.When the Senate, via amajority vote, makes amend-ments to bills sent from theSejm, that bill then returns tothe Sejm, which can accept orreject the Senate’s amend-ments. When the Senatemakes no amendments, thebill goes to the president.
Another important pre-rogative of the Senate is thatsince the last parliamentaryterm, it has been chargedwith dealing with verdicts ofthe Constitutional Tribunal.Overall, the Senate can beseen as a kind of useful sievein the process of lawmaking.
Yet it is a commonly heldperception that the qualityof laws made in parliamentis low. How do you assessthat perception?I do not share the opinionthat the quality of laws madein parliament is low, but it isclear that the system formaking laws has to be per-fected and adapted to thechanging situation. Forexample, our accession to theEuropean Union meant wehad to change many of ourlaws to ensure their compati-bility with EU law. Lawmak-ing requires an analytical andmatter-of-fact approach, but
I think that in the heat of thepolitical confrontation thatoften takes place in the Sejm,MPs do not give enough timeand do not pay enough atten-tion to the details of lawmak-ing. And so the role of theSenate is very important,since its members have addi-tional time to analyze draftbills that come from theSejm.
Why did the Senate not pres-ent any reservations to thelegislative changes made toprescription-drug laws at thestart of the year? Theseamendments deprived manypatients of medicine, led towidespread protests by doc-tors and ensured a roughstart to PO’s second term ingovernment. If the Senate does not pres-
ent reservations towards abill during the 30 days afterits approval by the Sejm, thebill is automatically approvedby the Senate. This is whathappened in the case of thebill in question.
There are many physi-cians currently serving in theSenate, and they told me thatthe bill is appropriate andthat it will bring positive
“In the heat of the politicalconfrontation in the Sejm, MPs do not
give enough time and do not payenough attention to the details
of lawmaking”
Marek Rocki, the chairman of Civic Platform’s(PO) Senate caucus and the vice chairman ofPO’s parliamentary club, talks to WBJ aboutsome of the government’s most controversiallegislative proposals
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Marek Rocki believes the government’s pension and prescription-drug reforms are
difficult but neccessary measures
APRIL 9-15, 2012 INTERVIEW www.wbj.pl 9
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Pension
reform to
harm ZUS?
By implementing partial
retirements as part of
its pension reforms, the
government is hanging
a noose around its own
neck, Dziennik Gazeta
Prawna wrote. Instead
of waiting for lower
payouts, more people
will sign up for
disability pensions,
incurring high costs for
Poland’s state-run
social security fund,
ZUS.
Polish
healthcare
problemsAccording to the
Organisation for
Economic Co-operation
and Development
(OECD), the coverage of
Poland’s healthcare
system is unequal. “To
give you just one
example, the life
expectancy of 30-year-
old men is 12 years
lower for those with low
education than it is for
those who completed
higher education,” said
OECD Secretary-General
Angel Gurría in a
statement. ●
results. Yet the bill led toconfusion and so there wereprotests by certain groups ofmedical professionals, suchas doctors. I see theseprotests as a natural expres-sion of feeling by certaingroups, but this cannot stopthe government from imple-menting reforms. The oppo-sition often uses protests as apolitical tool, and this is alsonatural. But I think that wehave to look at changes tolaws when a certain amountof time has elapsed, when thetrue effects are known. Now,for example, the prescrip-tion-drug law is consideredto function well.
How do you envisage the leg-islative process for approv-ing reforms presented byPrime Minister DonaldTusk, especially given therecent opposition to raisingthe retirement age?I think that Mr Tusk’s gov-ernment will manage toimplement the changes to theretirement system, and as aneconomist I am convincedthat it is necessary to equal-ize and prolong the workingperiod for Polish men andwomen to 67.
The provisions currentlygoverning the retirement sys-tem were implemented manyyears ago, when working con-ditions and life expectancieswere very different. Fromsocial, demographic and eco-nomic points of view, theretirement system has to bechanged, possibly over a peri-od of years. I am optimisticthat Civic Platform will findthe support for this reform inboth the Sejm and theSenate.
Recent opinion polls showthat support for Civic Plat-form has fallen, while somegovernment ministers havebeen severely criticized inthe press. There also appearto be divisions within PO,and criticisms that it isspreading its ideological netand engaging with the left.How do you see this situa-tion?Civic Platform is unitedunder the leadership of Don-ald Tusk. Paradoxically, themost criticized minister ofthe previous term, Infrastruc-ture Minister Cezary Grabar-czyk, made a significant con-tribution to PO’s victory inthe last parliamentary elec-tion. This is because heturned Poland into one bigconstruction site, and his suc-cessor, S∏awomir Nowak, iscontinuing this work.
PO’s parliamentary cau-cus is large, so the spectrumof views is wide. This is anasset, since it galvanizes dis-cussion and results in a com-
mon position being reachedto deal with problems. CivicPlatform has firmly estab-lished a center-right identityfor itself and our ideas ofgoverning and attitudetowards policy and the econ-omy are entirely differentfrom those of our main oppo-nent, Law and Justice (PiS),and from the leftist parties.There has not been any drift-ing; our guiding principlesare for us to be responsibletowards citizens and to main-tain the good condition of
the Polish economy duringthis time of crisis.
PO sees the state as anentity which is grounded inlaws that are respected, as anentity which protects com-mon democratic values,serves all citizens and helpsto build our country’s eco-nomic strength. We do nottreat the state as an over-whelming power, obsessedwith pursuing one ideologyand hostile towards people ofdifferent thinking, such asPiS does.
What is you attitude towardsthe motion for putting formerPM Jaros∏aw Kaczyƒski andformer Justice Minister Zbig-niew Ziobro before the StateTribunal? Would the motiongenerate enough support inPO to be passed?If the motion is prepared ade-quately by the Civic Platformcaucus and obtains the votesof 117 MPs, it would be for-warded to the Commission ofConstitutional Responsibilityin the Sejm. This would thenseek to confirm whether ornot the evidence thatJaros∏aw Kaczyƒski and Zbig-niew Ziobro broke the consti-tution would be strongenough to put them beforethe State Tribunal.
In my opinion, the motionwould gain those 117 votesbut the commission could endup analyzing it for manyweeks. And if the commissionpassed it back to the Sejm foranother vote, this would haveto gain 276 votes to be accept-ed. So it is difficult to predicthow the matter would end.
How do you assess the gov-ernment’s proposal to openup many of the professions
that currently require alicense?I consider it to be necessaryand important in manyaspects – economic, social,educational, and also in termsof how it is linked to reformsof our higher education sys-tem. It is a paradox thatyoung people who obtain uni-versity degrees in law, historyand other subjects that qualifythem to enter many academicfields of study, are preventedfrom entering so many otherprofessions, and so start their
professional careers muchlater than their peers in manyother countries, or have greatdifficulties in finding profes-sional work at all. In my view,the matter of deregulatingour economy and making ouruniversities adopt methods ofteaching that better preparegraduates for their careers iscrucial for the future of ourcountry.
Why have so many problemsrelated to the higher educa-tion system been pushedaside?As a former rector of theWarsaw School of Economics,I am very familiar with the sit-uation of our higher educa-tion system, which is generallynot as good as we would wantit to be. But reforms are start-ing to bring results. Until lastyear, all university diplomashad to be stamped by thestate, since the Minister ofEducation was formallyresponsible for the quality ofeducation. Now, however,diplomas are signed by uni-versities, meaning that theuniversities are solely respon-sible for the quality of gradu-ates and their level of pre-paredness for the job market.This has also served toincrease competition amongPoland’s institutions of highereducation.
It is true that the numberof professors is still too smallfor the two million studentsin Poland, but there are waysfor younger academic staff tobe promoted. Nevertheless,increasing the number of aca-demic staff significantly willtake time, if it is to be donewithout lowering standards.We still need a long-termstrategy for developing the
higher education system, andin my opinion for changingthe way it is financed.
There is little money comingfrom the state budget forhigher education and manyof the costs are passed on tostudents in different ways.This is despite the Polishconstitution stating that edu-cation in public universitiesmust be free. What solutiondo you envisage?I think that we should returnto the idea of introducing asystem of vouchers for stu-dents, which will be financedfrom the state budget. Publicfunding for the scheme wouldbe limited, with additionalexpenses paid by students. Weare living in a market econo-my, so let’s not forget thatmoney for education shouldcome not only from the budg-et, but also from industrysponsors and various corpora-tions, as it is in other countrieswhere financing for highereducation is more diversified.
But changing the system forfinancing public universitieswould require makingchanges to the constitution.Do you think it would bepossible?
A number of constitutionallawyers and some politicianshave already expressed theiropinions about the possibilityof changing the constitution,but it is a very serious matterwhich requires a profounddebate. The constitution inits present form is over 10years old, and I see room forcertain changes linked to thesystem of higher education.Some hold the view that theSenate could become achamber of local govern-ment. But for the characterof the Senate to be altered tosuch a degree, maybe theterm-lengths of both theSejm and Senate should bedifferentiated, and separateelections to both chambers ofparliament introduced.
Anyway, I don’t think thatin this current parliamentaryterm a serious debate aboutchanges to the constitutionwill be held, since Poland hasmore urgent problems due tothe crisis in Europe. Theseinclude reforming statefinances and the retirementsystem, and also matters ofderegulation. Yet discussionsabout possible changes tothe constitution will not goaway, in either the Sejm orthe Senate. ●
“There has not been any drifting: POis firmly established as a center-rightparty and our guiding principles are
to be responsible towards citizens andto maintain the Polish economy
during this time of crisis”
of the Polish democracy
APRIL 9-15, 2012OPINION & ANALYSIS10 www.wbj.pl
Seen from Europe, the irrationali-ty of the political and media dis-course over nuclear energy has, if
anything, increased and intensified inthe year since the meltdown at Japan’sFukushima Daiichi power plant. Yet adispassionate assessment of nuclearenergy’s place in the world remains asnecessary as it is challenging.
Europeans should not pontificateon nuclear-energy policy as if ouropinion mattered worldwide, but wedo. On the other hand, Europe does
have a qualified responsibility in thearea of security, where we still canpromote an international regulatoryand institutional framework thatwould discipline states and bringabout greater transparency whereglobal risks like nuclear power areconcerned. Europe is equally respon-sible for advancing research on moresecure technologies, particularly afourth generation of nuclear-reactor
technology. We Europeanscannot afford the luxury ofdismantling a high-value-added industrial sector inwhich we still have a realcomparative advantage.
In Europe, Fukushimaprompted a media blitz ofgloom and doom overnuclear energy. The Ger-man magazine Der Spiegelheralded the “9/11 of thenuclear industry” and “theend of the nuclear era,”while Spain’s leading news-paper El Pais preached thatsupporting “this energy[was] irrational,” and that“China has put a brake on its nuclearambitions.” But reality has provensuch assessments to be both biasedand hopelessly wrong.
Nuclear risingTrue, a few countries – Belgium, Italy,Germany, and Switzerland, with Peruthe only non- European country tojoin the trend – formally declaredtheir intention to phase out or avoidnuclear energy. These decisionsaffect a total of 26 reactors, while 61reactors are under constructionaround the world, with another 156projected and 343 under official con-sideration. If these plans are realized,the number of functioning reactors,currently 437, will double.
But, more interestingly, the
nuclear boom is not global: Brazil isat the forefront in Latin America,while the fastest development isoccurring in Asia, mostly in Chinaand India. If we compare this geo-graphical distribution with a globalsnapshot of nuclear sites prior to theThree Mile Island nuclear meltdownin the United States in 1979, a strik-ing correlation emerges betweencountries’ nuclear-energy policy andtheir geopolitical standing and eco-nomic vigor.
Whereas the appetite for reactorsin the 1970s reflected the internation-al heft of the Soviet Union, and princi-pally that of the geopolitical West –Japan, the US, and Europe – todaythe center of gravity has shifted irrevo-cably to the East, where nuclear ener-
gy has become a“gateway to a prosper-ous future,” in thetelling words of aNovember 2011 com-mentary in The Hindu.Indeed, US PresidentBarack Obama, evi-dently agreeing withthat view, has boldlybet that loan guaran-tees and research intocreating small modu-lar reactors will recon-firm America’s globalposition at the fore-front of civiliannuclear technology
and its relevance in the new globalorder.
Energy is, of course, the bloodlineof any society, reflected in the corre-lation between energy demand andincome. In this respect, nuclear ener-gy’s advantages, particularly its relia-bility and predictable costs, stand out.The International Energy Agency’s2010 World Energy Outlook foreseesa rise in global energy demand of 40percent by 2030 – an unforgiving real-ity that is most tangibly felt in devel-oping countries, particularly in Asia.
Act responsiblySo expansion of nuclear energy is,and will continue to be, a fact. To actresponsibly, Europeans should beworking to enhance international
security standards for nuclear power,not opting out of the game. The reallesson of Fukushima is that state con-trols are necessary but not sufficientto ensure nuclear safety.
Unfortunately, a proposal lastyear at the International AtomicEnergy Agency aimed at launchingan effective international control sys-tem on safety and security of nuclearpower worldwide blatantly failed withthe acquiescence of the EuropeanUnion. Worse still, with Europeanbacking, the IAEA’s budget, already apaltry €300 million, has been cut byalmost 10 percent.
The rise of nuclear power inEurope paralleled its post-war eco-nomic prowess. It coincided with thepeak of the West’s belief in its soaringeconomic strength and perpetualglobal ascendancy. Today, withEurope increasingly seen as the sickman of the world’s economy, even thewhole continent’s renunciation ofnuclear energy would have little to noreverberation on the world stage. Dic-tating the direction of the policy dis-course is no longer Europe’s role.Behaving responsibly is. ●
Ana Palacio, a former Spanish for-eign minister and a former senior vice
president of the World Bank, is a seniorfellow and lecturer at Yale University.
Copyright: Project Syndicate, 2012.
project-syndicate.org
Fukushima, Europe’s nuclear test
“We Europeans cannotafford the luxury ofdismantling a high-value-added industrialsector in which we stillhave a real comparativeadvantage”
T he Fukushima disaster inMarch last year reminded theworld, 25 years after Cher-
nobyl, that nuclear energy is any-thing but clean, secure, and afford-able. Unfortunately, anothernuclear catastrophe was needed totrigger a fresh debate on the use ofnuclear power.
Germany’s decision to phase outnuclear power by 2022 has pro-voked irritation among its pro-nuclear neighbors. Other Europeancountries have yet to indicate
whether they will follow Germany’sexample; a world free from nuclearenergy is hard for its supporters toimagine. Europe’s economic andecological future, however, dependsupon the rising opposition to thishigh-risk technology.
In Germany, the idea of anuclear phase-out has been gainingsupport ever since the Chernobyldisaster. Over the past few decades,anti-nuclear activists, together withtheir political representatives in theGreen Party, have succeeded inmobilizing hundreds of thousands
of protesters. In 2000, growingpolitical pressure finally led to aconsensus between the Germangovernment and energy companies,which agreed to limit the life spanof nuclear-power plants to 32 years.
Chancellor Angela Merkel’scoalition government withdrewfrom this agreement in 2010, butFukushima forced the authorities toreconsider – and to permanentlyend the use of nuclear energy. Ger-man energy policy now dependsonce more on the future deploy-ment of renewable energy sources.The Renewable Energy SourcesAct, for instance, introduced in2000 by a Social Democrat-Greengovernment, has enabled the coun-try to exceed all growth expecta-tions in the alternative-energy sec-tor, which now accounts for 20 per-cent of Germany’s total electricityconsumption.
Security risksBut, while Germany is now headingin the right direction, the securityrisks of nuclear-power plants inneighboring countries, such asFrance and the Czech Republic,remain. There must be a generalshift in both European and globalenergy policies. The Europeanstress tests of nuclear-power plantsare a first step; but, as long as theyare voluntary and under the opera-tors’ control, they will be nothingmore than political window dress-ing.
The economic argument forrenewable energy is also com-pelling. Nuclear power is an anti-quated technology that requires bil-lions of euros in subsidies; so far,German taxpayers have contributed€196 billion for this purpose. AGerman government study has esti-mated that, between 2010 and 2050,Germany could save more than€700 billion by relying on non-nuclear renewable energy insteadof nuclear power or imported fossilfuels such as coal, gas, and oil.
The expansion of renewableenergy production also holds greatpotential for boosting economicgrowth. Over the past decade,370,000 new jobs have been createdin the sector, and exports of renew-able-energy technology are risingrapidly, totaling roughly €30 billionfrom 2006 to 2008.
At the same time, it would beshort-sighted to assume that fossilfuels, especially coal, are a prof-itable and sustainable energysource. First, increased reliance onfossil fuels runs contrary to the 1997Kyoto Protocol’s targets for reduc-ing carbon emissions, as well as tothe EU’s own climate-changeobjectives. Moreover, fossil-fuelcosts fluctuate wildly with oil prices,and the centralized nature ofnuclear and coal-fired power sta-tions creates distribution problems.
The last decade has shown thatincreases in renewable-energy pro-duction actually reduce its costs.
Wind energy is now competitivewith conventional power plants,while rising gas and coal prices andthe steady decline in renewable-energy costs imply that, within a fewyears, fossil fuels will be even lessattractive. Moreover, revenuesfrom “home-grown” energy tend toremain where they are generated,while the import bill for fossil fuelswould be eliminated.
Nuclear renaissance mythAll of this can be done without hav-ing to bear the immense risk (andcosts) of a nuclear catastrophe.Indeed, the idea of a “nuclear ren-aissance” is a myth. Nuclear acci-dents, public opposition, and highcapital costs have already provokeda drastic drop in nuclear-energyinvestment; in the United States, nonuclear-power plant has been com-missioned since the late 1970s.
In Europe, the number ofnuclear plants is declining, as oldplants are decommissioned andpublic opinion in even traditionallypro-nuclear countries like Francebegins to shift: almost two-thirds ofthe French now believe that nuclearpower stands in the way of anincrease in renewable energy. InItaly, more than 90 percent of vot-ers rejected former Prime MinisterSilvio Berlusconi’s plan for a returnto nuclear-power generation, andthe Japanese government announ-ced that it plans to phase outnuclear energy in stages.
More needs to be done to accel-erate the post-nuclear transition.More money from the EU budgetnow goes to nuclear research thanto non-nuclear research and devel-opment, and more infrastructurefunding goes to carbon capture andstorage (CCS) and conventionalenergy than to renewable energies.The forthcoming negotiations onthe EU’s 2014-2020 Europeanbudget are an opportunity tochange direction and cut the fund-ing for unpromising mega-projectslike the International Thermonu-clear Experimental Reactor (ITER)effort in southern France.
Shifting to renewable-energysources will require enormous effortand major infrastructure invest-ment. High-voltage transmissionlines across the EU and storagefacilities to overcome the problemof meeting basic energy demandswill be crucial, as will decentralizeddistribution grids and higher invest-ment in energy conservation.
Germany has taken the firststep, but the transition to a fullyrenewable-energy-based economymust be a common Europeaneffort. ●
Jürgen Trittin is Chairman of theGreen Parliamentary Group in the
German Bundestag and a formerfederal environment minister.
Copyright: Project Syndicate, 2012.
project-syndicate.org
The post-nuclear transition
“Europe’s economic andecological futuredepends upon the risingopposition to this high-risk technology”
Jürgen Trittin
Ana Palacio
SH
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APRIL 9-15, 2012 OPINION & ANALYSIS www.wbj.pl 11
Remi Adekoya
Janusz Palikot, leader of Palikot’sMovement (RP), the third-largestparty in the Polish parliament,
announced last week that two MPsfrom the ruling Civic Platform (PO)party will most likely cross over tojoin RP in the second half of April.
If this were to happen, it wouldmean the ruling coalition of PO andthe Polish Peoples’ Party (PSL)would have 232 votes in the 460-member parliament, a slim majorityby any standards.
Mr Palikot has also suggestedthat even more MPs want to dumpPO for his party. However, he sayshe has told them to hang on untilafter the Euro 2012 soccer champi-onships, which is being held inPoland and Ukraine from June 8.
“I don’t want to create a crisisand the possibility of snap electionsduring the Euro [championships],”the RP leader said.
In March, ¸ukasz Giba∏a, an MPfrom Kraków, jumped ship from POto join Mr Palikot’s party, evidencethat the RP leader’s words cannotsimply be dismissed offhand.
End of the coalition?Mr Palikot has thus prompted spec-ulation about whether the current
coalition can survivebeyond the end of thisyear. Much depends onhow PO performs inthe polls later this year.This, in turn, will beheavily influenced bythe outcome of theEuro 2012 soccerchampionships. Polishnational pride is ridingon the success or fail-ure of the tournament.
Euro 2012 is by farthe most prestigiousevent Poland has everhosted. The eyes of theworld will be on thecountry (and of courseco-host Ukraine) andmillions of people willform their opinions ofPoland based on what they see thissummer.
Poles are very sensitive to howtheir country is perceived abroadand desperately want to create agood image during the tournament.
More than a gameIf Poland is praised in the interna-tional press for its organization dur-ing the tournament, and if the Pol-
ish national team does relativelywell, for example making it throughthe group stages to the quarter-finals, then the prime minister andhis party will likely experience a sig-nificant boost in popularity, a risingwave that could give them seriouspolitical momentum.
Poles would be proud of theircountry and Mr Tusk’s governmentwould be pretty much untouchable.
PO MPs would be farless willing to switchparties and face anuncertain future in theparty of the erraticJanusz Palikot.
If, on the other hand,the tournament turnsout to be a PR disasterand the Polish team’sperformance is embar-rassing, then there willbe a backlash for thegovernment and MrTusk might be unable tostop the current down-ward trend in the popu-larity of his party. Anexodus of PO MPswould then be quitelikely, especially as thePM is not exactly loved
by many in his party. PO MPs routinely complain of
being treated as nothing more than“voting machines” in parliament,who have no influence over legisla-tion. In addition, Mr Tusk’s unsenti-mental and often ruthless attitudetowards some members of PO whowere once considered his personalfriends has won him many enemiesin the party he leads.
The only reason these politiciansare still sticking with him is because,
up until now, he has guaranteed thepopularity of the party, which hastranslated into seats in parliament.The moment Mr Tusk appears polit-ically weak, his detractors willpounce on him mercilessly.
The political atmosphere inPoland come autumn will undoubt-edly be shaped by how Euro 2012goes. Poland’s ability to perform onthe world stage will be tested thissummer as will the ability of the Pol-ish national soccer team.
Never before has a Polish primeminister’s fortunes been so depend-ent on something so trivial as a fewsoccer games. ●
Remi Adekoya is Warsaw Busi-ness Journal’s politics editor.
What is going on in CentralEurope? After Viktor Orbán’sconsolidation of power in
Hungary, another political strongmanhas returned to the helm, this time inSlovakia. Former Prime MinisterRobert Fico has once again assumedthe leadership of Slovakia followinghis Smer-Social Democracy (SMER-SD) party’s landslide victory in lastmonth’s elections. Like Mr Orbán in
Hungary, Mr Fico will preside overthe first single-party cabinet in Slo-vakia since the collapse of commu-nism in 1989. His coalition govern-ment between 2006 and 2010 hadbeen accused of abuses of power anda lack of respect toward the opposi-tion, media, and NGOs. And, muchlike his Hungarian counterpart, Mr
Fico could yet use his political man-date to attempt to reinterpret Slo-vakia’s history, change key laws, orbattle with the European Union onnationalistic grounds.
However, despite some of thesesimilarities between Slovakia andHungary — which along with theCzech Republic and Poland belong tothe so-called Visegrad Four (V-4)group — there are at least five rea-sons to suggest that Bratislava will notfollow Budapest’s trajectory.
Five reasonsFirst, the political power of Mr Fico’scenter-left SMER-SD is not nearly asoverwhelming as that of Mr Orbán’sFidesz party. SMER-SD won 83 outof 150 seats in Slovakia’s one-cham-ber parliament, and therefore enjoysa simple, but not a constitutional,majority. Although the five opposi-tion center-right parties are seriouslyweakened and fragmented, they willcomprise a competent and credibleopposition. Moreover, none of thenationalist or xenophobic politicalparties crossed the 5 percent thresh-old necessary to enter parliament.
While Mr Orbán faced pressure fromthe radical nationalist Jobbik party,the poor performance of the radicalparties in Slovakia means that MrFico is not going to be influenced byextreme, anti-EU elements.
Second, Mr Fico won in large parton a pro-social and pro-Europeanplatform, and by offering voters sta-bility and predictability following thecomplex coalition dynamics and even-tual collapse of the center-right gov-ernment lead by Iveta Radičová. Hedid not use the nationalistic card in hiscampaign nor did he blame externalactors for Slovakia’s current prob-lems. He was even open to acceptingsome center-right parties in his coali-tion but in the end did not need themin order to form a government.
Third, Mr Fico’s post-electionbehavior has been a surprise — thegood kind. He has been more opentoward the media and rather consen-sual and generous toward the opposi-tion, offering them important parlia-mentary posts. Aiming to avoid im-provisation and mistakes in severalkey areas, he invited experienced non-party personalities to serve as minis-
ters in his new cabinet, namely theministers of justice, health, economy,and foreign affairs. This suggests astrong commitment to tackle seriousdomestic and international problemsrather than a focus on building hisparty’s power base. The key test of MrFico’s leadership will be his handlingof chronic and widespread corruptionand the peculiar interplay betweenpolitical and business circles that hasshaped public attitudes toward thestate and its system.
Fourth, the nomination as ministerof foreign affairs of the well-knownand experienced diplomat MiroslavLajčák, who until recently worked inEU High Representative CatherineAshton’s team, underpins Fico’s pre-election promises that Slovakia’sstrategic goal would include remain-ing strongly anchored to Europeanand transatlantic structures. Slovakiais not only a member of NATO andthe EU but is also the only V-4 coun-try that is a euro-zone member. It istherefore expected that Mr Fico willnot experiment with unique economicmodels nor will he ignore economicexperts, experienced practitioners,
and standard EU rules.
A new political culture?Fifth, Mr Fico’s recent meeting withrepresentatives of trade unions,employers, churches, and universities– in which he asked for their ideas forthe government manifesto – suggeststhe beginning of a new political cul-ture. However, he has not revealedhis feelings toward vibrant civil socie-ty organizations with significantwatchdog capabilities.
All in all, Mr Fico is evolving intoa mature and predictable politician,which may prove that he has learnedfrom his past mistakes and those ofother leaders. That includes ViktorOrbán, with whom Mr Fico will soonbe entering into a necessary dialogueover many important bilateral,regional, and European issues. ●
Pavol Demes is Senior Transat-lantic Fellow with the German
Marshall Fund of the United States(GMF) in Bratislava.
Copyright: German Marshall Fundof the United States
gmfus.org
Tusk’s future resting on Euro 2012
“The key test of Mr Fico’sleadership will be hishandling of chronic andwidespread corruption”
“If the tournament is adisaster there will be abacklash for PM Tuskand his government”
Will Slovakia’s Fico be another Orbán?
CO-MANAGING EDITOR
GARETH PRICE([email protected])
CO-MANAGING EDITOR
ALICE TRUDELLE([email protected])
POLITICS EDITOR
REMI ADEKOYA([email protected])
REAL ESTATE EDITORADAM ZDRODOWSKI([email protected])
COPY EDITORDAVID INGHAM
CONTRIBUTORSE. BLAKE BERRYEWA BONIECKAIZABELA DEPCZYK
ROBERTO GALEALIAM NOLAN
COLUMNISTSBARTOSZ BIA¸KOWSKI
PRODUCTION MANAGERPIOTR WYSKOKGRAPHIC DESIGNER¸UKASZ MAZUREK
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Editorials are the opinions of WBJ’s editorial board. Other opinions are those of the authors alone. Comments, opinions and letters should be sent to [email protected]. Please include a name and contact information and clearly indicate if they are to be considered for publication.
Pavol Demes
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APRIL 9-15, 2012COVER STORY12
Russia ends
Naftoport
cooperation
Gdaƒsk-based Naftoport,
a company which
manages crude oil
shipment and deliveries,
was struck from the list of
firms dedicated to the
export of Russian oil,
reported Puls Biznesu.
Russia has launched a
new terminal, Ust-Luga,
in the Gulf of Finland,
which should lower the
country’s dependency on
land export of oil to
Europe. In 2011, Russia
exported 3.8 million
metric tons of oil to
Europe through Naftoport.
Polish-
Slovakian
gas link Poland’s and Slovakia’s
gas network operators
have chosen a contractor
for a study of a planned
gas link joining liquefied
gas terminals in Poland
and Croatia, reported
Reuters. “We want to
have the business
analysis ready this year
and make further
decisions on conducting a
feasibility study next
year,” said Gaz-System
spokesperson
Ma∏gorzata Polkowska.
The proposed link would
have an annual capacity
of 2.5 billion to 5 billion
cubic meters.
Energy
distribution
investmentsPoland’s largest energy
companies invested z∏.4.6
billion in distribution
infrastructure last year,
32% more than in 2010,
reported Parkiet. Tauron,
the largest distributor of
energy in Poland, spent
the most – z∏.1.3 billion.
Tauron spokesperson
Magdalena Rusinek
estimates that the
company’s investments in
distribution
infrastructure will go up
in the future to z∏.1.4-1.5
billion a year. Meanwhile
PGE, which controls 25%
of the country’s energy
distribution market,
spent z∏.1.26 billion on
infrastructure
investments last year. ●
www.wbj.pl
Poland might not be about toturn its back on coal, which ituses to produce over 90 per-cent of its electricity, but thecountry is seeking to acceler-ate efforts to diversify its ener-gy sources. One option it haschosen is to develop nuclearpower, an energy source thathas its fair share of detractors.
The meltdown of threenuclear reactors at Japan’sFukushima plant over oneyear ago and Germany’s sub-sequent decision to shutter itsnuclear facilities by 2022 havenot deterred Poland from itsplans to join the global nuclearfamily. The Polish NuclearPower Program enjoys supportfrom among many of Poland’smajor parties: the Sejm,Poland’s lower house of parlia-ment, voted in favor of build-ing the country’s first nuclearpower plants last May.
Unwavering government supportIn February, Prime MinisterDonald Tusk reiterated his gov-ernment’s commitment to
building two plants by 2035. Thefirst was scheduled to be opera-tional by 2020, but the date hasnow been pushed to 2025.
The government’s ‘PolishEnergy Policy until 2030’ iden-tifies the introduction ofnuclear energy as being a keyfactor in the diversification ofthe country’s sources of elec-tric energy. State-owned elec-tricity giant Polska GrupaEnergetyczna (PGE) wasentrusted in January 2009 withthe task of developing thenuclear energy program.
According to PGE, con-struction work on the firstblock should start at the turn of2015 and 2016. The project isestimated to cost from z∏.35billion to z∏.50 billion and is setto provide work for 3,000 to5,000 people during the con-struction phase. This firstnuclear plant will generate3,000 megawatts (MW) ofelectricity and eventuallyemploy 1,500 staff, once theoperational phase begins. PGEestimates that the combinedoperational capacity of the two
plants will be 6,000 MW.But a French-style heavy
reliance on nuclear energy (itaccounts for 76 percent ofthat country’s electricity con-sumption) is certainly not onthe cards for Poland. “Nu-clear energy is not going toreplace Poland’s currentmeans of power production,”Marcin Ciepliƒski, directorfor strategy and development
at PGE Energia Jàdrowa, asubsidiary created to carry outthe construction of the twonuclear plants, told WBJ.“The goal is to have nuclearpower hold a 20 percent stakein Poland’s energy mix. How-ever, it cannot happen over-night. We expect this to bedone in stages.”
PGE’s own revised ‘Strate-gic Energy plan for 2035’states that nuclear energy willaccount for 35 percent of thecompany’s own energy mix bythat date. The bulk of the com-pany’s electricity productionwill still be generated by lignite
and hard coal, with growinguse of gas and renewablesources.
“Coal will remain the dom-inant fuel for electricity pro-duction in Poland for at leastthe next 20 years,” said Grze-gorz Wrochna, director of theNational Centre for NuclearResearch in Âwierk.
Poland needs to replace itsold fleet of coal-fired plants
with new, more efficient ones,and there are hopes that largereserves of shale gas might befound beneath the country’ssurface, he conceded. Butthese solutions are, respective-ly, insufficient and uncertain.“Therefore, investment innuclear power is necessary,”said Mr Wrochna.
Foreign expertisePoland does not have the tech-nology to carry out its nuclearproject on its own, and willtherefore need foreign expert-ise to implement its plans.While the tendering process
for technological suppliers hasnot formally opened yet,potential providers havealready stated their interest ina contract which Mr Ciepliƒskidescribed as “one of thebiggest in the history of mod-ern Poland.”
Among them are Frenchfirms Areva and EDF, GEHitachi (a joint venture ofGeneral Electric and Hitachi),and Toshiba’s US-based unitWestinghouse. PGE has al-ready signed memorandumsof agreement with the threegroups, which will provide fea-sibility studies for the develop-ment of their reactor designs,as well as their constructionand operation plans. A tenderis expected to be launchedwithin two months.
The stakes are high and fewdetails have emerged on thetype of technology that Polandis looking to use. Mr Ciepliƒksitold WBJ that PGE EnergiaJàdrowa is not willing to con-sider any untested technologiesthat have not been constructedand operated elsewhere in thepast. “We want a technologythat has gone through thewhole process already, or atleast is in an advanced stage ofrealization,” he said.
Mr Ciepliƒski added thatwhile the main players areexpected to be foreign, thetender process “should proba-bly include the involvement ofPolish industry players withintheir working groups.”
An aspect on which thegovernment has said it wouldnot compromise on at any costis safety. On this issue, PGEEnergia Jàdrowa is cooperat-ing closely with the NationalAtomic Energy Agency (PAA).“We have people with bothnational and internationalcompetences to provide super-vision for the Polish NuclearPower Program,” PAA presi-dent Janusz W∏odarski toldWBJ. Mr W∏odarski and anumber of other senior PAArepresentatives worked onPoland’s aborted nuclear ener-gy program of the 1980s. Theprogram was shelved whencommunist leaders exited War-saw’s halls of power in 1989.
OppositionNuclear energy being a con-troversial topic, several groups
“Nuclear energy may prove to be politicallyslippery as Chernobyl is still deeply
ingrained in the popular imagination”
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Despite wavering support for nuclear energy inthe wake of Japan’s Fukushima disaster, Polandhas decided to give nuclear a chance, and ispushing forward with plans to build its firstnuclear power plant
Energy security
Nuclear ambitions Liam Nolan
Japan’s Fukushima
disaster has hardened
opposition to nuclear
power
APRIL 9-15, 2012 COVER STORY www.wbj.pl 13
have voiced doubts about thesoundness of the Polish gov-ernment’s plans.
Tomasz Krukowski, ananalyst at Deutsche Bank,said that “current energy pri-ces do not justify the con-struction of a nuclear powerplant.” He pointed out that inrecent years, average Polish
energy prices have beenlower than prices in neigh-boring Germany by about 10to 12 percent. While MrKrukowski did not see financ-ing for the program being anissue, at least according tocurrent plans, he said Po-land’s lack of experience inthe field of nuclear energy is“a major challenge” and that“the risk is that the cost ofconstruction will be muchhigher [than currently plan-ned].”
Meanwhile, inhabitantswho live near to sites that PGEEnergia Jàdrowa has pro-posed to host Poland’s firstnuclear plant have also voicedconcerns. Last November, thecompany announced threepotential locations on theBaltic coast: ˚arnowiec,Choczewo and Gàski.
In February, 94 percent ofvoters in the seaside town ofMielno, 10 km from the pro-posed site in Gàski, cast theirballots against the construc-tion of a nuclear plant in alocally organized plebiscite.Mr Ciepliƒksi said that sup-port for a nuclear plant is high-est in ˚arnowiec, the site of
former communist authorities’unfinished nuclear program,with over 70 percent of resi-dents in favor.
The final decision on thelocation of the first nuclearplant is scheduled to be madein 2013. But inhabitants of theproposed locations are notalone in having reservationsabout the program. A surveyconducted by the Ministry ofEconomy last November putsupport among Poles forbuilding nuclear power plantsin Poland at 38 percent.
¸ukasz Cioch, head of theCentre for Energy Studies atthe Tischner EuropeanUniversity in Kraków, saidthat social awareness aboutnuclear energy is very low inPoland. “The country has nomeaningful experience ofnuclear power plants. In a
sense, we’re starting fromscratch, at a time when nuclearenergy is going through roughpatches in its 70-year history,”he said.
Mr Cioch believes that theissue of nuclear energy mayprove to be politically slippery.Even after two decades,“Chernobyl has becomedeeply ingrained in the popu-lar imagination,” he said.
Indeed, the explosion atthe Chernobyl Nuclear PowerStation in neighboring Ukra-ine, which blew radioactivematerial over Russia andmuch of Europe for severaldays in April 1986, is stillprominent in the minds ofmany Poles. An estimated100,000 people died as a resultof the disaster, which contami-nated an area of over 160,000km2 and led to the evacuationof 2,000 villages in Ukraine,Russia and Belarus.
To counter negative senti-ment, the Ministry of Econo-my has launched a two-year,z∏.18 million-communicationcampaign, promoting the posi-tive aspects of the nuclearproject and emphasizing itssafety and potential economicbenefits.
Potential economic gainsof Poland’s nuclear-powerprogram, including majoremployment opportunities,may also help sway local opin-ion. Indeed, the property taxalone for a nuclear powerplant could amount to z∏.30
million annually, payable tothe local government, said MrCioch.
German concernsBut opposition is also emerg-ing from across the Polish bor-der, with Poland’s nuclear pro-gram being criticized in neigh-boring Germany.
The Munich Environmen-tal Institute, an NGO,launched an online campaignlast November against the Pol-ish government’s plans to con-struct a nuclear plant on Ger-many’s doorstep. So far, over50,000 German citizens havecompleted an online petitionin support of the organiza-tion’s stance.
“We think that afterFukushima, to phase in nuclearenergy is complete nonsenseand risky,” said ChristinaHacker, a spokesperson for theNGO, who added that theorganization has not received aresponse from the Polish Min-istry of Economy.
On a local governmentlevel, parliamentarians in Bran-denburg, Berlin and Mecklen-burg-Vorpommern have filedcomplaints with the EuropeanCommission regarding theiropposition to the Polish gov-ernment’s plans to build a plantnext door, in Pomerania.
It is not clear whether thiswill succeed in forcing the Pol-ish government to change itsmind, however, since lastNovember, European Com-
missioner for Energy GüntherOettinger said that each EUmember state “has the right todecide whether to producenuclear power or not.”
Nevertheless, some believethat the Polish nuclear energyprogram will not get off theground. Grzegorz Pytel, anenergy expert at the Warsaw-based Sobieski Institute, saidthat he would “not put apenny” on the government’splans.
“I don’t think that the con-tracts will be signed. There willbe a lot of protests because Idon’t think that Poles trustnuclear energy,” he said. MrPytel also foresees that thenuclear program will comeunder “huge pressure” fromcoal lobbying groups.
In his opinion, the Polishgovernment should instead
capitalize on its existingreserves of conventional natu-ral gas. “Conventional gas isheavily under exploited inPoland. If Poland had thesame exploration policies asGermany, Denmark or Italy,we would be producing 21 mil-lion cubic meters annually andwould not have to import somuch gas,” said Mr Pytel.
Despite opposition, thePolish government is present-ly forging ahead with its plan.Concrete steps, such as theselection of the technologyand contractor for the plants,as well as the building site, aredue to be taken in the nearfuture. But much can happenbetween now and 2025, andboth Poles and their neigh-bors are sure to keep a watch-ful eye on Poland’s nuclearambitions. ●
“We’re starting from scratch, at a timewhen nuclear energy is going throughrough patches in its 70-year history”
Nuclear energy around the worldTop 10 countries with the highest number of nuclear reactors, 2012
Under construction
China 26
Russia 10
India 5
Republic of Korea 5
Taiwan 2
Japan 2
Slovakia 2
Ukraine 2
France 1
US 1
Source: IEAE
In operation
US 104
France 58
Japan 50
Russia 33
Republic of Korea 21
India 20
Canada 18
UK 18
China 16
Ukraine 15
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LOKALE IMMOBILIAW 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 l y s u p p l e m e n t o n r e 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 • APRIL 9-15, 2012, LI 17/14
TVP to sell Pl.
Powstaƒców
offices
Polish public broadcaster
TVP intends to sell
editorial offices it owns on
Warsaw’s
Pl. Powstaƒców. The
television company plans
to move staff working at
the location to the
company’s main
headquarters at ul.
Woronicza 17. TVP
spokesperson Joanna
Stempieƒ-Rogaliƒska said
in a statement that the
board had discussed the
move at a meeting last
week. The company has
decided to move out of the
offices, which are located
at ul. Jasna 14/16 and
ul. Moniuszki 2/2A,
because they do not meet
the necessary
requirements.
JW
Construction
agreement
expires
An agreement between
JW Construction Holding
and Blacklion NFI
regarding the acquisition
of a major plot of land on
Warsaw’s ul. Kasprzaka,
has expired because of
Warsaw City Hall’s failure
to enact a zoning plan for
the area by March 29. JW
Construction had intended
to build a large mixed-use
complex on the plot.
However, the company’s
owner Józef
Wojciechowski told Polish
media that he is still
interested in acquiring the
land in the future. ●
Port Praski scheme . . . . . . . . . .15
Pasaż Grunwaldzki
expansion . . . . . . . . . . . . . . . . . .16
Rank Progress buys land . . . . .16
Nova Park opens . . . . . . . . . . . .16
Property-related stocks . . . . . .16
Prologis sells warehouses . . . .17
New BBI project . . . . . . . . . . . . .17
Ghelamco-Netia deal . . . . . . . . .17
Regional malls . . . . . . . . . . . . . .17
In this issue
1716
Echo Investment will soonstart expanding the Pasa˝Grunwaldzki mall in Wroc∏aw
Prologis has sold 164,000sqm of industrial space toHines for $130 million
Revitalization
Port Praski steps up preparationwork on its eponymous Warsaw schemeA master plan for thehuge mixed-useinvestment is expectedto be ready in June
Investor Port Praski is step-ping up preparation work onits eponymous real estateinvestment in Warsaw that willinvolve the complete transfor-mation of a neglected 38-hectare area in the city’s PragaPó∏noc district.
The company, which hasowned the Port Praski riverport area since the 1990s,hopes its huge mixed-use proj-ect will finally enter the devel-opment stage in the upcomingweeks once all the necessaryadministrative permits havebeen secured.
Zoning problemsTo date, the investment hasbeen hindered by a lack ofzoning, but a new zoning plancovering the premises in ques-
tion is now expected to be putinto place in June. Also inJune, a master plan for thewhole Port Praski investmentwill be ready, said Port PraskiCEO Adam Pykel.
Two renowned Warsaw-based architectural studios,JEMS Architekci and APAWojciechowski, have beentasked with coming up withthe master plan. “Once theplan is finished, we willannounce nine architecturalcompetitions for the particularparts of the project,” Mr Pykelsaid.
Meanwhile, the investorhas started demolishing thoseparts of the existing structuresin Port Praski that are notmeant to be preserved. Anumber of buildings with his-torical value will be renovatedand integrated into the rest ofthe scheme.
The company is also takingsteps to provide new infra-
structure for the neighbor-hood. Later this year, con-struction should launch on asluice that will make the areasafe from the effects of water-level fluctuations in the nearbyVistula River, and thus makeliving and working in theplanned buildings safe.
Central locationThe Port Praski river portfacility was built in the 1920sand 1930s and has for the lastthree decades been disused.The investor hopes the neigh-borhood will be transformedinto a new vibrant area of War-saw featuring, among otherthings, office and residentialspace.
Although dilapidatedtoday, the area is located closeto the capital’s downtown andits potential has recently beenboosted by the delivery andcommencement of majorinfrastructure projects includ-
ing the National Stadium, arailway station and a station ofthe capital’s second subwayline.
According to Mr Pykel, upto 500,000 sqm of space will bedeveloped within the invest-ment. Apart from low-rise res-idential buildings lining theport’s waterfront, the projectwill also include several com-mercial towers and an exten-sive park.
In the first phase of theproject, a building housingPort Praski’s future offices andapproximately 30 apartmentswill be built. The investor isnow only awaiting a finaladministrative permit andwants to go ahead with thescheme in the next few weeks.
PBM Po∏udnie has alreadybeen selected as the generalcontractor of the building.Apartment sales are expectedto launch by the end of theyear, once the construction ofthe homes has reached anadvanced stage.
Huge interestThe commercialization of thelater phases of Port Praski willlaunch after the investor has
secured building permits forthe particular structures, butaccording to Mr Pykel interestin the planned development isalready huge with the compa-ny receiving many requestsfrom potential tenants.
He is also confident aboutinterest in the apartmentsthat will be built in Port Pras-ki, claiming that the presenceof water should be a factorwhich will attract buyers. Upto 5,000 homes are expectedto be developed within theinvestment.
If all the administrativehurdles are finally cleared,Mr Pykel said, the whole areawill soon become one hugeconstruction site. “Ourdream is to deliver the wholeinvestment within the nexteight years,” he said.
He did not want to specu-late about the total value ofthe Port Praski project, sayingthat the cost is virtuallyimpossible to calculate at thisstage, before the zoning planis in place and the totalamount of space that PortPraski will be able to build onits land is known.
Adam Zdrodowski
CO
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The first building to be built within the Port Praski
scheme will comprise office and residential space
CO
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The whole investment could deliver up to 500,000 sqm of space
APRIL 9-15, 2012LOKALE IMMOBILIA – REAL ESTATE16 www.wbj.pl
Preferential
mortgages
disappearing
Buying an apartment in
Warsaw that would be
eligible for the
government’s Family on
its Own preferential
mortgage program for
first-home buyers has
become almost
impossible after new
home-price limits came
into force at the
beginning of April.
According to the new
limits, announced by
Bank Gospodarstwa
Krajowego, which
manages the popular
scheme, the price of a
new housing unit in the
capital cannot exceed
z∏.5,904 per sqm for it to
be eligible.
Grazioso
Apartamenty
topped outDeveloper Eko-Park has
topped out its Grazioso
Apartamenty luxury
residential project in
Warsaw. The scheme is
the last phase of the Eko
Park investment
that the company has
been building in the
capital’s Mokotów
district. ●
Security Closing % change 52-week 52-week % change Total Marketprice (week) low high (year) shares value
on April 5 (z∏. mln)
BUDIMEX 85.70 0.47 64.00 109.20 99.50 25,530,098 2,187.93
CELTIC 15.12 -2.45 13.82 22.70 20.50 34,068,252 515.11
DOMDEV 35.50 2.42 23.50 50.80 47.00 24,670,397 875.80
ECHO 4.28 -1.61 3.05 5.55 4.87 420,000,000 1,797.60
ELBUDOWA 111.50 -5.03 87.00 168.00 159.50 4,747,608 529.36
ENERGOPLD 1.90 -3.06 1.81 4.01 4.10 70,972,001 134.85
ERBUD 16.93 3.23 14.65 39.68 40.17 12,644,169 214.07
GANT 8.04 1.13 5.85 14.17 14.00 20,499,953 164.82
GTC 6.28 -4.85 6.10 21.45 21.10 219,372,990 1,377.66
HBPOLSKA 0.87 -6.45 0.70 2.40 2.49 210,558,445 183.19
JWCONSTR 5.86 -5.64 4.36 15.50 14.47 54,073,280 316.87
LCCORP 1.42 -1.39 0.85 1.62 1.57 447,558,311 635.53
MARVIPOL 8.69 -2.36 7.22 9.95 9.05 36,923,400 320.86
MIRBUD 1.95 -1.02 1.94 4.39 4.56 75,000,000 146.25
MOSTALWAR 15.11 -3.45 15.11 44.00 44.65 20,000,000 302.20
MOSTALZAB 1.47 -3.29 1.07 2.89 2.74 149,130,538 219.22
ORCOGROUP 14.62 -7.47 14.00 38.28 37.99 17,053,866 249.33
PBG 34.94 -9.13 34.10 175.00 184.30 14,295,000 499.47
PLAZACNTR 2.63 0.00 1.80 5.15 4.20 297,174,515 781.57
POLAQUA 6.16 -3.75 4.53 18.99 17.20 27,500,100 169.40
POLIMEXMS 1.26 -6.67 1.23 3.64 3.50 521,154,076 656.65
POLNORD 14.65 -0.75 11.03 33.30 31.72 23,798,439 348.65
RANKPROGR 14.22 1.94 8.60 16.97 11.20 37,145,050 528.20
ROBYG 1.53 -7.83 1.04 2.13 2.05 257,390,000 393.81
RONSON 1.05 3.96 0.77 1.58 1.41 272,360,000 285.98
TRAKCJA 1.08 -4.42 0.65 3.72 3.51 232,105,480 250.67
ULMA 67.60 -2.94 57.00 88.00 82.30 5,255,632 355.28
UNIBEP 5.69 -2.74 4.47 7.75 7.85 33,927,184 193.05
WARIMPEX 4.05 0.00 2.95 10.89 10.06 54,000,000 218.70
ZUE 7.89 -0.13 5.07 12.92 13.60 22,000,000 173.58
Property-related stocks
Rank Progress buys plot forOlsztyn shopping centerWarsaw Stock Exchange-listeddeveloper Rank Progress haspurchased an eight-hectareplot of land in Olsztyn, War-miƒsko-Mazurskie voivodship,on which it plans to develop aregional shopping center.
The land, for which RankProgress paid z∏.16.5 million, islocated on Olsztyn’s ul. Jaroc-ka. The project which the com-pany plans to build at the loca-tion will comprise 30,000 sqmof space and will include aDIY store, a retail park and a
multi-screen movie theater.Currently, work is under-
way on the architecturaldesign of the investment, withconstruction expected to la-unch by the end of this year.The development is tentative-ly scheduled for completion inthe last quarter of 2013.
“The land is covered by azoning plan that allows for theconstruction of a retail invest-ment of this size. We want tosecure for the mall retailersthat have not been present in
the city to date,” Jan Mroczka,president of Rank Progress’smanagement board, said in astatement.
The plot in Olsztyn is thesecond piece of land thatRank Progress has acquiredthis year. In February, thecompany bought a plot in Pi∏awhere it is planning to build ashopping center. Altogether,the developer’s land bank cur-rently comprises almost 150hectares across Poland.
Adam Zdrodowski
Nova Park mall in GorzówWielkopolski to open in mid-April
The Nova Park shopping centerin Gorzów Wielkopolski, Lu-buskie voivodship, will open forbusiness on April 18. The mall,which will be the largest retailinvestment in the region, willdeliver 32,400 sqm of GLA andhouse 140 retail units.
The development is beingbuilt by Irish investor CaleumDevelopment and Hungariandeveloper Futureal. A consor-tium of Warbud and MercuryEngineering is acting as thegeneral contractor for thescheme.
“This official information
puts an end to rumors and spec-ulations. The investor has con-firmed that the opening date isnot at risk of any potentialdelay,” Caelum Developmentsaid in a statement. The invest-ment previously saw a delay inconstruction due to reasonsincluding financing issues.
According to CaelumDevelopment, which, alongwith Jones Lang LaSalle, is con-ducting the commercializationof Nova Park, the shopping cen-ter is already more than 87 per-cent leased out. Tenants willinclude fashion brands, as well
as a Piotr i Pawe∏ upmarket gro-cery store.
Established in 2002, CaelumDevelopment has in its portfo-lio retail projects includingGaleria Askana in GorzówWielkopolski, Galeria M∏yƒskain Racibórz, Wratislavia Centerin Wroc∏aw and Galeria Wis∏ain P∏ock.
Budapest-based Futureal isactive in the Hungarian, Polishand Romanian markets and iscurrently involved in a majorurban revitalization schemecalled Corvin Promenade in itshome city. Adam Zdrodowski
Shopping centers
Echo Investment to expand Pasa˝Grunwaldzki mall in Wroc∏awOne of the largestretail projects inLower Silesia will beenlarged by 10,000sqm by 2013
Warsaw Stock Exchange-listeddeveloper Echo Investment will
expand its Pasa˝ Grunwaldzkimall in Wroc∏aw, Lower Silesiavoivodship. One of the largestshopping centers in the region,Pasa˝ Grunwaldzki will get anadditional 10,000 sqm of space.
The new section of the mall,which will be built between ul.Reja and ul. Szczytnicka, on the
site of an existing parking lot,will accommodate approxi-mately 50 stores, most of whichwill be occupied by clothingbrands. The investor will soonstart the commercialization ofthe project.
The decision to expandPasa˝ Grunwaldzki results fromEcho Investment’s desire toenhance the range of shops andpoints of service in the mall,stated Krzysztof Giemza, direc-tor of the shopping centerdepartment at the firm.
He added that the shoppingcenter already has an estab-
lished market position andremains popular with theregion’s inhabitants and thatthe new section will be an exam-ple of prime architecture andprime urban public space.
The architectural concept ofthe expansion project has beenprepared by the APA Kury∏ow-icz & Associates studio. EchoInvestment already has a build-ing permit for the scheme andplans to launch construction inQ3 of this year and finish it bythe end of 2013.
Pasa˝ Grunwaldzki openedfor business in April 2007. The
shopping center comprises130,000 sqm of space, including52,000 sqm of retail area. Majortenants include fashion brands,a Saturn electronic goods storeand an 11-screen Multikinomovie theater.
Echo Investment has so farcompleted almost 90 projects inPoland comprising a total ofmore than 800,000 sqm of spaceand is also present in the Hun-garian, Romanian and Ukrain-ian markets. The company hasto date developed 20 shoppingcenters.
Adam Zdrodowski
CO
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O I
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Construction on the investment will launch in Q3
CO
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The 32,400-sqm Nova Park mall will be the largest retail project in the region
APRIL 9-15, 2012 LOKALE IMMOBILIA – REAL ESTATE www.wbj.pl 17
PwC in
Aquarius
Business
HouseConsulting company
PwC Polska has leased
almost 1,000 sqm of
office space in Echo
Investment’s Aquarius
Business House class-A
office project in
Wroc∏aw. Earlier, Tieto
Poland also took up
space in the
development.“PwC is
another demanding
client that has
appreciated the location
of our project and the
technical solutions
allowing for an efficient
management of energy
consumption in our
building,” Rafa∏
Mazurczak, sales
director in the office
department of Echo
Investment, said in a
statement.
VeriFone
leases space
Electronic payment
solutions provider
VeriFone has leased
over 1,100 sqm of office
space in the fifth
building of Globe Trade
Centre’s Platinium
Business Park office
complex in Warsaw.
Jones Lang LaSalle
brokered the lease
transaction. Platinium
Business Park is located
at the intersection of ul.
Domaniewska and ul.
Wo∏oska in the capital’s
Mokotów district.
Currently, the complex
comprises four
buildings, with each of
these buildings already
practically fully leased
out. ●
Retail development boom in
smaller Polish cities: reportPolish cities with populationsof less than 100,000 accountedfor 68 percent of new retailspace delivered in the firstquarter of 2012 and housealmost 40 percent of the totalretail stock currently underconstruction, said a recentreport by Jones Lang LaSalle.
The largest project openedin Q1 in a small Polish city wasCentrum Alfa in Grudziàdz,which delivered 22,000 sqm ofGLA.
A total of approximately445,000 sqm of retail space isexpected to be delivered inPoland in 2012. Of the 755,000sqm of space currently underconstruction, 38 percent islocated in small urban centers,according to the report.
“It is with interest that wewill be watching the situation in
Be∏chatów and ¸om˝a, eachmarket with approximately70,000 inhabitants and two newshopping centers likely to openshortly,” Jones Lang LaSalleanalysts said in the report.
“Markets sized between
200,000 and 400,000 people arerelatively quiet in this respect atthe moment but cities such asLublin and Bydgoszcz are rea-sonably hot and on developers’radar screens,” they added.
Adam Zdrodowski
Prologis sells a 164,000-sqmindustrial portfolio to HinesIndustrial space developerPrologis has sold almost164,000 sqm of logistics assetsacross Poland to Hines GlobalREIT Poland Logistics Hold-ings I LCC. The value of thetransaction, which was bro-kered by Jones Lang LaSalle,amounts to approximately$130 million.
The transacted portfoliocomprises 11 properties, includ-ing 10 buildings and a plot ofland, located in Prologis ParkWarsaw, Prologis Park WarsawIII, Prologis Park Wroc∏aw IIand Prologis Park B´dzin. Theaverage occupancy rate at thebuildings is 92.8 percent.
Hines Poland will act as theasset manager and propertymanager of the acquired parks.
“The [acquired] industrial
parks are an excellent acquisi-tion for Hines Global REITdue to the tenant strength andthe quality of the assets,”
Mieczys∏aw Godzisz, manag-ing director of Hines inPoland, said in a statement.
Adam Zdrodowski
Building for retailSelected major retail projects scheduled for delivery in 2012
City Project GLA (sqm)
Gliwice Europa Centralna 67,000
Rzeszów City Center 47,000
Kielce Galeria Korona 34,000
¸omianki Auchan 33,500
Gorzów Wielkopolski Nova Park 32,500
Wroc∏aw Galeria Sky Tower 25,000
Be∏chatów Galeria Bawe∏nianka 23,000
Be∏chatów Galeria Olimpia 21,000
K´dzierzyn-Koêle Odrzaƒskie Ogrody 21,000
Source: Jones Lang LaSalle
BBI Development NFI
hopes to build at Hale
Banacha site in WarsawWarsaw Stock Exchange-listeddeveloper BBI DevelopmentNFI and the Hale Banachacooperative have signed anagreement concerning thedevelopment of a new mixed-use investment in Warsaw thatwill comprise office, retail andresidential space.
Hale Banacha owns twomarket halls, each of themsized almost 3,000 sqm, nearthe intersection of ul. Grójec-ka and ul. Banacha in the cap-ital’s Ochota district. BBIDevelopment NFI plans todemolish these and build a sin-gle structure in their place.
According to the agree-ment, which has been signed
for a period of four years, mar-ket traders operating in HaleBanacha are supposed tomove to temporary premisesduring the period of construc-tion. Once the new investmentis completed, the cooperativewill be given retail space in thebuilding.
The finalization of the dealbetween BBI DevelopmentNFI and Hale Banacha is con-tingent on a number of condi-tions, including the latter entityobtaining either perpetualusufruct rights or ownershiprights to the land on which themarkets sit. Currently, HaleBanacha does not own the site.
Adam Zdrodowski
Ghelamco secures
land for new office
project in WarsawTelecom operator Netia hassigned a preliminary salesagreement with a subsidiaryof developer Ghelamco con-cerning land in Warsaw’sUrsynów district. The plots inquestion are sized 23,600sqm in total and are locatedon the capital’s ul. Poleczki.
Currently, two buildingsare situated on the land, oneof which will remain theproperty of Netia. Accordingto the agreement, the tele-com operator will move itsoffices to one of the newoffice buildings which Ghe-lamco plans to build on theacquired plots.
“The sale of the property
on ul. Poleczki in Warsawresults from the company’spolicy concerning the opti-mization of assets. We consis-tently sell real estate whichwe do not use,” Miros∏awGodlewski, president ofNetia’s management board,said in a statement.
The value of the Netia-Ghelamco deal is estimatedat from z∏.25.9 million toz∏.32 million, with the finalprice depending on howintensive the planned devel-opment of the land will be.The transaction is expectedto be finalized by the end ofthis year.
Adam Zdrodowski
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The sold properties are located in industrial parks
including ProLogis Park Wroc∏aw II
APRIL 9-15, 2012THE LIST18 www.wbj.pl
Construction and Real Estate
General ContractorsRanked by revenue from general contracting in 2010 www.bookoflists.pl
Rank
Company nameAddressTel./FaxE-mailWeb page
Revenue fromgeneral
contracting (mlnz∏): 1st half of
2011/2010/2009/2008
Export revenue(mln z∏): 1st half of
2011/2010/2009/2008
Total revenue includingexport (mln z∏): 1st half
of 2011/2010/2009/2008
Constructionspeciality:General/Public/
Residential
Constructionspeciality:Industrial/
Civilengineering
Services other thangeneral contracting
Major projects recentlycompleted
Major projects underconstruction
Number ofemployees/
Yearfounded
Top local executive/Title
1
Strabag Sp. z o.o.ul. Parzniewska 10, 05-800 Pruszków22 714-4800/22 [email protected]
1,900.04,019.03,143.02,192.0
WNDWNDWNDWND
WNDWNDWNDWND
✓✓✓
✓✓
WND
Galeria Handlowa Kaskada inSzczecin; 2nd phase of Strabag
headquarters in Pruszków;University Business Park in ¸ódê;
A2 highway Nowy TomyÊl-Âwiecko
Communication and Retailcentre in Katowice G∏ównyrailway station; bridge overWis∏a in Toruƒ; WarszawaWschodnia railway station
extention; A4 highwayBrzesko-Wierzchos∏awice
4,5751985
Alfred Watzl, Pawe∏ AntonikBoard Memebers
2
Grupa Budimex SAul. Stawki 40, 01-040 Warsaw22 623-6000/22 [email protected]
1,995.03,692.02,824.03,045.0
WNDWNDWNDWND
2,320.04,555.03,404.03,366.0
✓✓✓
✓✓
WND
Design and construction ofWroc∏aw Motorway Bypass;
construction of section Z1 andZ2 of “Zachód” Diametral
Highway in Zabrze; Aquamarinaresidential complex and hotel in
Mi´dzyzdroje; show and fairarena on the border of Sopot
and Gdaƒsk
A1 highway Pyrzowice -Piekary Âlàskie (including
junctions); design andconstruction of AugustówBypass; second passangerterminal of Gdaƒsk Lech
Wa∏´sa Airport; modernizationof no. 9 railway line LCS I∏awa
section
4,7561968
Dariusz BlocherGeneral Director
3
Polimex - Mostostal SAul. Czackiego 15/17, 00-950 Warsaw22 829-7100/22 [email protected]
1,746.33,484.24,179.53,375.7
WNDWNDWNDWND
2,105.94,160.94,836.74,301.1
✓✓✓
✓✓
Production of steel products;hot dip galvanizing; sound
barrier and baffle production
Chopin Centre in Warsaw;Solpark sports and educational
complex in Kleszczów; A4highway Wielicka junction -
Szarów junction; Legia Stadiumin Warsaw
¸ódê Fabryczna Station; theEuropean Solidarity Centre inGdaƒsk; heat power stationunit for Elektrociep∏ownia
Bielsko-Bia∏a EC1; Museum ofthe History of Polish Jews in
Warsaw
WND1945
Konrad Jaskó∏aPresident; General Director
4
Grupa Kapita∏owa PBG (1)
ul. Skórzewska 35, 62-081 Przeêmierowo61 665-1700/61 [email protected]
1,457.02,740.02,577.02,091.0
WNDWNDWNDWND
WNDWNDWNDWND
✓✓✓
✓✓
WNDUrban Stadium in Poznaƒ;
National Stadium in Warsaw;Stadium in Gdaƒsk
Liquefied natural gas terminalin ÂwinoujÊcie; Lubiatów-Mi´dzychód-Grotów mine;Underground Gas Storage
Wierzchowice
3,3271994
Jerzy WiÊniewskiPresident
5
Grupa Kapita∏owa Mostostal WarszawaSA (2)
ul. Konstruktorska 11A, 02-673 Warsaw22 548-5600/22 [email protected]
1,426.02,570.02,321.02,001.0
72.0192.0390.0210.0
1,354.02,378.02,712.02,211.0
✓✓✓
✓✓
Subcontracting; equipmentleasing; materials sale
S8 high-speed road Konotopa-Prymasa Tysiàclecia Warszawa;
technologic modernization ofCentral Water Supply Facilities
in Warsaw; Library of the SilesiaUniversity; Apartamenty Paƒska
in Warsaw
R´dziƒski bridge over Odra inWroc∏aw; A2 highway
Stryków-Konotopa; NationalMusic Forum in Wroc∏aw;terephtalic acid production
plant in W∏oc∏awek
5,9231945
Jaros∏aw Popio∏ekPresident
6
Hydrobudowa Polska SAul. Skórzewska 35, Wysogotowo, 62-081Przeêmierowo61 664-1950/61 [email protected]
742.41,576.51,673.91,225.5
WNDWNDWNDWND
756.21,628.91,704.71,267.3
✓✓
WND
✓✓
WND
PGE Arena Gdaƒsk; municipalstadium in Poznaƒ; wastedisposal facility in Gdaƒsk
Szadó∏ki; transmission collectorsfor Czajka wastewater
treatment plant in Warsaw - 1stphase
The National Stadium inWarsaw; A4 highway Tarnów
- D´bica; transmissioncollectors for Czajka
wastewater treatment plantin Warsaw - 2nd phase;
sports and fair arena in Toruƒ
1,6001968
Jerzy CiechanowskiPresident
7
Warbud SAAl. Jerozolimskie 162A, 02-342 Warsaw22 567-6000/22 [email protected]
662.01,315.01,525.01,608.0
----
670.01,330.01,538.01,621.0
✓✓✓
✓✓
WND
The Copernicus Science Centre;Museum of Modern Art in
Kraków; S8 high-speed roadKonotopa-Prymasa Tysiàclecia;
Prosta Tower in Warsaw
“Czajka” wastewatertreatment plant in Warsaw;
A2 highway Stryków-Konotopa; CAPITOL Music
Theatre in Wroc∏aw;Ma∏opolski Technology Park in
Kraków
1,1141992
W∏odzimierz W∏odarczykPresident
8
HOCHTIEF Polska SAul. Elblàska 14, 01-737 Warsaw22 560-0800/22 [email protected]
WND876.0918.0
1,231.0
WNDWNDWNDWND
WNDWNDWNDWND
✓✓✓
✓✓
Organization of the investmentprocess in the delivery of
residential buildings
CH Futura Park in Modlniczka;Centrum Biurowe Francuska in
Katowice; Nowy DomJab∏kowskich in Warsaw; Dialog
Arena stadium in Lublin
Extention of Poznaƒ-¸awicaAirport passenger terminal;Cosmopolitan Twarda 2/4 inWarsaw; new building forPhysics, Astronomy and
Applied Computer ScienceFaculty of JagiellonianUniversity in Kraków;
Business Garden Warszawa -1st phase
8421996
Henryk LiszkaPresident
9
Bilfinger Berger Budownictwo SAul. Domaniewska 50A, 02-672 Warsaw22 244-3400/22 [email protected]
265.0716.0568.0720.0
WNDWNDWNDWND
WNDWNDWNDWND
✓--
-✓ WND
Go∏dap Bypass; brigde overOdra in K´dzierzyn-Koêle; S8high-speed road Konotopa -
Prymasa Tysiàclecia in Warsaw
S2 Southern Warsaw bypass;Southern Gdaƒsk Bypass;reconstruction of S8 high
speed road in RawaMazowiecka; Zambrów
Bypass
1,214WND
Piotr KledzikPresident
10
Mota-Engil Central Europe SAul. Wadowicka 8W, 30-415 Kraków12 664-8000/12 [email protected]
473.0688.7624.7633.0
WNDWNDWNDWND
WNDWNDWNDWND
✓✓✓
✓✓
Production of bituminousmixtures and road aggregates,
prefabricated concrete,reinforced concrete and
prestressed concrete elements
S7 high-speed road Skar˝ysko-Kamienna - Wyst´pa; design
and construction of the secondbridge over Wis∏a in
Sandomierz; tunnel under therailway track in Kielce
Design and reconstruction ofJe˝ewo - Bia∏ystok nationalroad no. 8; S8 high speed
road Wroc∏aw - OleÊnica; S3high speed road Mi´dzyrzecPo∏udnie junction - Sulechów
junction; Fajny Dom residentialand retail complex in Kraków -
3rd phase
2,8401953
Fiel BarbosaPresident
11
NDI SAul. Powstaƒców Warszawy 19, 81-718 Sopot58 771-7700/58 [email protected]
90.0486.0298.0279.0
WNDWNDWNDWND
146.0544.0363.0287.0
✓✓✓
✓✓
Development services; co-investing; investmentconsulting; investment
supervision
Tourist Centre in Gdaƒsk;Apartamenty Przy Pla˝y
residential complex in Gdaƒsk
A1 highway Nowe Marzy -Toruƒ
1071991
Jerzy GajewskiPresident
12
MIRBUD SAul. Unii Europejskiej 18, 96-100 Skierniewice46 833-9828/46 [email protected]
132.0301.0266.0294.0
WNDWNDWNDWND
132.0302.0272.0309.0
✓✓✓
✓✓
WND
EWT Truck & Trailer servicestation and showroom in
Stryków; Central OperatingTheatre in University Children’sHospital in Kraków; residentialbuilding in Rumia; Mszczonów
bypass
Double Tree by Hilton WarsawConference Center and SPA inWarsaw; CH Bawe∏nianka in
Be∏chatów; CENT IIIeducational and lab building in
Warsaw; E∏k bypass
3482002
Halina MirgosPresident
APRIL 9-15, 2012 THE LIST www.wbj.pl 19
Notes: NR = Not Ranked, WND = Would Not Disclose. Research for the list was conducted in September 2011. Number of employeesis as of August 2011. All information pertains to the companies' activities in Poland. Companies not responding to our survey are not listed.
Footnotes: (1) Grupa Kapita∏owa PBG: PBG, HBP, HB9, PBG Energia, Aprivia, Apatia, PRG Metro, KWG, Metorex, AQUA, Dromost, PRID, Betpol,Brokam, Bathinex, PBG Erigo, PBG Dom, PBG Technologia, EXCAN, PBG Mozambik, PBG Bulgaria, PBG Ukraina, Energopol-Ukraina, WschodniINVEST, Energomonta˝; (2) Grupa Kapita∏owa Mostostal Warszawa: AMK Kraków, Mostostal Kielce, Mostostal P∏ock, Mostostal Pu∏awy, REMAK,WROBIS, Terramost.
Rank
Company nameAddressTel./FaxE-mailWeb page
Revenue fromgeneral contracting(mln z∏): 1st half of
2011/2010/2009/2008
Export revenue (mlnz∏): 1st half of
2011/2010/2009/2008
Total revenueincluding export (mln
z∏): 1st half of 2011/2010/2009/2008
Constructionspeciality:
General Public/Residential
Constructionspeciality: Industrial/
Civil engineering
Services other thangeneral contracting
Major projectsrecently completed
Major projects underconstruction
Number ofemployees/
Year founded
Top local executive/Title
13
AWBUD SAul. Reja 4, Fugasówka, 42-440Ogrodzieniec32 671-5201/32 [email protected]
157.0222.0280.0311.0
WNDWNDWNDWND
WNDWNDWNDWND
✓✓✓
✓✓
Design; projectmanagement; concretework and installation;
production of concreteelements
Mill line and high storagewarehouse for CMC Poland
in Zawiercie; productionplant for PPF Hasco-Lek inSiechnice; production plant
for Yuncheng Polska inKonstantynów ¸ódzki
Asseco Polandheadquarters in Warsaw;
warehouse and productionplant for Konsorcjum Stali
in Kraków; conventioncenter for PPF Hasco-Lek inWroc∏aw; modernization of
wastewater treatmentplant in Gliwice
8001989
Micha∏ WuczyƒskiPresident
14
Henpol Sp. z o.o.ul. Gospodarcza 23, 20-211 Lublin81 745-1051/81 [email protected]
WND190.2188.9230.2
----
WND190.2189.7230.6
✓✓✓
✓✓
-
Derby 2, 3, 9, 20 residentialcomplex; Dobry Dom,
Mi∏osna Park residentialcomplexes
Wilno 2, Ho˝a 55,Rezydencja Bia∏a, Red Park
residential complexes
7792004
Henryk PolakPresident
15
Przedsi´biorstwo BudowlaneDombud SAul. Drzyma∏y 15, 40-059 Katowice32 251-3541/32 [email protected]
75.0170.0150.0205.0
---
WND
75.0170.0150.0205.0
✓✓✓
-✓
Developer; TBS;installation
Board of Customs inKatowice; City Guard inKatowice; Monte Casino
residential complex inKatowice; Municipal Library
in OÊwi´cim
Modernization of Pa∏acM∏odzie˝y in Katowice;
retail and residentialbuildings in Gliwice andChrzanów; sports and
entertainment facility inCzerwone Leszczyny
8511945
Lubomir RosiekPresident
16
Allcon Budownictwo Sp. z o.o.,Sp.k.-a.ul. ¸u˝ycka 6, 81-537 Gdynia58 660-1900/58 [email protected]
61.6161.8165.3210.5
WNDWNDWNDWND
61.6161.8165.3210.5
✓✓✓
✓-
WND
UG Biologia in Gdaƒsk;Sanipor-Polska in Gdynia;
Damen Shipyards inGdynia; Allcon Park 3 in
Gdaƒsk
Inkubator S∏upsk; Jysk inGdaƒsk; Awiator Alfa inGdaƒsk; Department of
Economy in Sopot
831990
Mariusz Bia∏ekPresident
17
RD bud Sp. z o.o.ul. Ry˝owa 33B, 02-495 Warsaw22 534-9000/22 [email protected]
WND98.6143.4210.0
WNDWNDWNDWND
WNDWNDWNDWND
✓✓✓
✓✓
WND
Castorama in Warsaw; Ikeain Kraków; ECH in
Wa∏brzych; Brico Depot inPu∏awy; MokotowskaSquare in Warsaw;Faurecia in Gorzów
Wielkopolski
B&B Hotel in Warsaw andWroc∏aw; Castorama in E∏k;
Rezydencja Eliza inWarsaw; Royal Canin in
Niepo∏omice; Galeria Piastin Boles∏awiec
961997
Eric AgnelloGeneral Director
18
HARTBEX Przedsi´biorstwoBudowlane Sp. z o.o.Trzebownisko 22, 36-001Trzebownisko17 771-3600/17 [email protected]
58.394.490.1111.0
3.70.76.59.6
62.095.196.6121.0
✓✓✓
✓✓
WND
Hamilton Sunstrand Polandin Rzeszów; Meta-Zel in
Rogoênica; Zelnar inTaj´cina
WSPiA facilities in Rzeszów3371992
Pawe∏ BàcalPresident
19
CFE Polska Sp. z o.o.Al. Jerozolimskie 92, 00-807 Warsaw22 456-1600/22 [email protected]
47.789.592.1266.5
WNDWNDWNDWND
51.995.497.5279.9
✓✓✓
✓✓
WND
Soprema insulatingmembrane production plant
in B∏onie; Husqvarnaagricultural machinery andtools production plant inMielec; OBI in Miejsce
Piastowe; CentrumLogistyczne Merida in
Wroc∏aw
Cztery Oceany residentialcomplex in Gdaƒsk; Epsilonin Wroc∏aw; extension ofVlassenroot production
plant in Gliwice; Huta Saint-Gobain Sekurit HanGlas in
˚ary
1421996
Bruno LambrechtGeneral Director
20
Prochem SAul. Powàzkowska 44C, 01-797Warsaw22 326-0100/22 [email protected]
36.758.380.4282.5
WNDWNDWND2.4
58.5119.0183.0378.0
✓✓✓
✓✓
Design; substitutioninvesting; investmentsupervision; delivery
completion
Coperion storage silo inW∏oc∏awek; Building
Research Institute sewagegas installation in Pionki;Scientific and EducationalCenter and Water Park ofFaculty of Engineering andEnvironmental Sciences forWarsaw University of Life
Sciences
Epichlorohydrin installationfor ZACHEM in Bydgoszcz;fragrances plant for Pollena
Aroma in Nowy DwórMazowiecki; passangerairplane componentsproduction plant for
Goodrich Aerospace Polandin Taj´cin
2271947
Jaros∏aw St´pniewskiPresident
21
MC Kontrakty Budowlane Sp. z o.o.ul. Rogowska 3, 91-519 ¸ódê42 658-8444/42 [email protected]
21.954.4105.079.0
WNDWNDWNDWND
WNDWNDWNDWND
✓✓✓
✓✓
Design; developer services
Cosmetics production plantfor Avon in Garwolin;
extention of P&G productionplant in Aleksandrów
¸ódzki; logistics, warehouseand office center for Segroin ¸ódê; extension of SCA
Hygiene Productsproduction plant in O∏awa
Extension of ReckittBenckiser production plantin Nowy Dwór Mazowiecki;
Electronic EquipmentFactory in Aleksandrów¸ódzki; reconstruction of
Centrum Logistyczne UPSin ¸azy; modernization ofP&G production plant in
Aleksandrów ¸ódzki
451991
Piotr GrabowiczPresident
22
Mermaid Construction Sp. z o.o.ul. Prosta 69, 00-838 Warsaw22 444-1999/22 [email protected]
10.321.321.53.7
----
10.321.321.53.7
✓✓✓
✓✓
Investment supervision;technical consulting
Cross Point ¸ódê;modernization of Pa∏acM∏odziejowskiego in
Warsaw
Matwicka 9 in Warsaw;Regenersis warehouse
5WND
Andrzej ˚murek
23
Mostostal Pu∏awy SAul. Budowlanych 5, 24-110 Pu∏awy-Azoty81 473-1240/81 [email protected]
17.620.136.684.3
WNDWNDWNDWND
101.2195.7246.7238.0
-✓-
✓✓
Steel structures; assemblyof technology installations,
machinery in industrialplants; pipeline construction
and assembly; design ofsteel construction and
technological installation
New Air Compressor for ZAPu∏awy; boilers assembly in
Norrkoping (Sweden),Riverside (UK) and
Roosendal (theNetherlands)
Brigde over San inPrzemyÊl; boiler assemblyin Zespó∏ Elektrowni DolnaOdra in Szczecin; ProcessResearch Center for PlantResources Supercritical
Extraction; assembly of fluegas treatment installation in
incineration plant inHelsingborg (Sweden)
8671963
Tadeusz RybakPresident
NR
Ocmer Sp. z o.o. Al. KoÊciuszki 80/82, 90-437 ¸ódê42 634-8790/42 [email protected]
WNDWNDWND63.4
WNDWNDWNDWND
WNDWNDWND63.4
---
✓-
Design; delivery andinstallation of industrial halls
Production plant andwarehouse for
Energoserwis in Lublin;production plant and
warehouse for Aliplast inLublin; production plant forKomahold in Kudowa Zdrój;production plant for Haver
in Lida
Production plant andwarehouse for Alkopack inGomel; production plantand warehouse for Sapa
Aluminium in ¸ódê;warehouse for TME in ¸ódê;
production plant forTechnolux in Siemianowice
Âlàskie
171994
Krzysztof BednarekManaging Director
To the best of WBJ ’s knowledge, the information is accurate as of press time. While every effort is made toensure accuracy and thoroughness, omissions and typographical errors may occur. Corrections or additions to TheList should be sent, on official letterhead, to Warsaw Business Journal, attn. Joanna Raszka, ul. Elblàska 15/17,01-747 Warsaw, via fax to (+48) 22 639-8569, or via e-mail to [email protected]. Copyright 2011, Valkea MediaSA. The List may not be reprinted or reproduced in whole or in part without prior written permission of the pub-lisher. Reprints are available.
APRIL 9-15, 2012MARKETS20 www.wbj.pl
SO
UR
CE
: W
SE
PLN-EUR
4.
1616
4.1
428
4.13
27
4.1
495
4.1
544
4.1
565
30.0
3
02.0
4
03.0
4
04.0
4
05.0
4
06.0
44
5 PLN-USD
30.0
3
02.0
4
03.0
4
04.0
4
05.0
4
06.0
4
3.1
191
3.1
017
3.09
90
3
.150
3
3.16
78
3.1
814
3.0
3.5 PLN-GBP
30.0
3
02.0
4
03.0
4
04.0
4
05.0
4
06.0
4
4.9
908
4.97
93
4.96
69
5.0
057
5.0
271
5.0
418
4
5
6 PLN-CHF
3
.454
0
3.4
401
3.43
35
3.4
449
3.
4526
3
.458
4
30.0
3
02.0
4
03.0
4
04.0
4
05.0
4
06.0
43.4
3.6 PLN-RUB
30.0
3
02.0
4
03.0
4
04.0
4
05.0
4
06.0
4
0.
1064
0.10
57
0.10
57
0.
1070
0
.107
6
0
.107
8
0.10
0.12 PLN-100JPY
30.0
3
02.0
4
03.0
4
04.0
4
05.0
4
06.0
4
3
.797
9
3.74
83
3.7
780
3
.812
0
3.
8543
3.
8588
3.5
4.0
currency rates
Currency report
SO
UR
CE
: N
BP
Major indices
Top 5 Closing % change (week) 52-week high 52-week low
PWRMEDIA 1.13 21.51 1.26 0.62KANIA 1.99 17.06 2.73 0.80IFCAPITAL 7.70 16.67 8.99 0.45NORTCOAST 0.47 14.63 1.42 0.35MISPOL 2.59 14.10 6.74 2.27
WIG 40,802.41 (April 5 close)
Change for the week: -0.55% 52-week high: 50,371.74
Change year to April 5: 6.48% 52-week low: 36,549.47
Top 5 Closing % change (week) 52-week high 52-week low
LOTOS 28.29 4.78 49.50 21.30KGHM 144.80 4.10 200.30 102.40PGNIG 4.11 3.79 4.65 3.25BRE 289.30 2.41 357.90 203.30BZWBK 233.00 0.43 238.00 190.10
Bottom 5 Closing % change (week) 52-week high 52-week low
RESBUD 24.81 -25.50 70.00 2.88DSS 2.95 -24.55 23.75 2.42PBOANIOLA 3.82 -23.60 7.70 3.10ABMSOLID 3.00 -23.47 15.10 1.49INTAKUS 0.37 -22.92 1.50 0.36
Bottom 5 Closing % change (week) 52-week high 52-week low
PBG 34.94 -9.13 180.90 33.70POLIMEXMS 1.26 -6.67 3.66 1.19PEKAO 146.00 -5.26 180.20 115.10GTC 6.28 -4.85 21.76 6.01CYFRPOLSAT 13.36 -3.19 17.69 11.60
WIG20 2,263.35 (April 5 close)
Change for the week: -0.35% 52-week high: 2,932.62
Change year to April 5: 3.16% 52-week low: 2,089.84
mWIG40 2,476.70 (April 5 close)
Change for the week: -0.65% 52-week high: 2,987.72
Change year to April 5: 13.08% 52-week low: 2,076.52
sWIG80 10,093.86 (April 5 close)
Change for the week: -1.30% 52-week high: 12,932.00
Change year to April 5: 17.31% 52-week low: 8,218.71
NewConnect 42.37 (April 5 close)
Change for the week: 1.05% 52-week high: 59.10
Change year to April 5: 2.12% 52-week low: 40.00
WIG-Banki 5,720.81 (April 5 close)
Change for the week: -2.90% 52-week high: 7,387.49
Change year to April 5: 3.20% 52-week low: 4,944.19
DJIA13,060.14 (April 5 close)
-0.65% (for the week)
CHANGE: 5.35%
(year to April 5)
52-week high: 13,289.08
52-week low: 10,404.49
NASDAQ3,080.5 (April 5 close)
-0.48% (for the week)
CHANGE: 16.30%
(year to April 5)
52-week high: 3,095.36
52-week low: 2,298.89
S&P5001,398.08 (April 5 close)
-0.37% (for the week)
CHANGE: 9.48%
(year to April 5)
52-week high: 1,414.00
52-week low: 1,074.77
FTSE1005,723.7 (April 5 close)
-0.32% (for the week)
CHANGE: 0.42%
(year to April 5)
52-week high: 6,103.73
52-week low: 4,791.01
DAX6,775.26 (April 5 close)
-1.45% (for the week)
CHANGE: 11.52%
(year to April 5)
52-week high: 7,600.41
52-week low: 4,965.80
NIKKEI2259,767.61 (April 5 close)
-3.43% (for the week)
CHANGE: 14.11%
(year to April 5)
52-week high: 10,207.91
52-week low: 8,135.79
world stock indices
09.0
3
12.0
3
13.0
3
14.0
3
15.0
3
16.0
3
19.0
3
20.0
3
21.0
3
22.0
3
23.0
3
26.0
3
27.0
3
28.0
3
29.0
3
30.0
3
02.0
4
03.0
4
04.0
4
05.0
440,000
40,600
41,200
41,800
42,400
43,000
2,200
2,240
2,280
2,320
2,360
2,400
09.0
3
12.0
3
13.0
3
14.0
3
15.0
3
16.0
3
19.0
3
20.0
3
21.0
3
22.0
3
23.0
3
26.0
3
27.0
3
28.0
3
29.0
3
30.0
3
02.0
4
03.0
4
04.0
4
05.0
4
2,400
2,440
2,480
2,520
2,560
2,600
09.0
3
12.0
3
13.0
3
14.0
3
15.0
3
16.0
3
19.0
3
20.0
3
21.0
3
22.0
3
23.0
3
26.0
3
27.0
3
28.0
3
29.0
3
30.0
3
02.0
4
03.0
4
04.0
4
05.0
4
10,000
10,120
10,240
10,360
10,480
10,600
09.0
3
12.0
3
13.0
3
14.0
3
15.0
3
16.0
3
19.0
3
20.0
3
21.0
3
22.0
3
23.0
3
26.0
3
27.0
3
28.0
3
29.0
3
30.0
3
02.0
4
03.0
4
04.0
4
05.0
4
41.0
41.6
42.2
42.8
43.4
09.0
3
12.0
3
13.0
3
14.0
3
15.0
3
16.0
3
19.0
3
20.0
3
21.0
3
22.0
3
23.0
3
26.0
3
27.0
3
28.0
3
29.0
3
30.0
3
02.0
4
03.0
4
04.0
4
05.0
4
44.0
5,700
5,800
5,900
6,000
6,100
6,200
09.0
3
12.0
3
13.0
3
14.0
3
15.0
3
16.0
3
19.0
3
20.0
3
21.0
3
22.0
3
23.0
3
26.0
3
27.0
3
28.0
3
29.0
3
30.0
3
02.0
4
03.0
4
04.0
4
05.0
4
Other indicesSpotlight onEuropean debt
Stocks report
The weakness of the z∏oty inthe first week of April can beexplained by the movementof the EUR/USD. LastMonday, that currency pairtested its four-week high,close to the level of 1.34. Thefollowing days brought withthem a decline to near the1.30 level, eliminating almostthree weeks of growth.
It all began with a reportfrom the March meeting ofthe US Federal Reserve,which implied that there isnow a reduced chance of athird round of quantitativeeasing. However, the majorcause of the weakening ofthe euro against the dollar,worsening sentiment onequity markets and, finally,the weakening of the z∏oty, isgrowing concern about thesustainability of recentimprovements in Europeandebt markets.
As WBJ went to press,
investors were still waitingfor a report on the US labormarket. However, if figuresconfirmed positive indica-tions published last Wednes-day in ADP’s private survey,a significant market reactionwas not expected.
Last Friday at aroundnoon, the EUR/PLN curren-cy pair stood at 4.1520, andthe USD/PLN at 3.1760.
In the short term the con-dition of the Polish currencywill depend on new econom-ic data from China and theeuro zone.
Locally, the NationalBank of Poland (NBP) lastweek kept the benchmarkinterest rate at 4.5 percent,meaning it hasn’t beenchanged since June last year.Poland’s rate setters are“seriously considering” rais-ing borrowing costs, NBPgovernor Marek Belka saidafter the announcement. ●
Bartosz Bia∏kowski, X-Trade Brokers Dom Maklerski SA
Optimism fading?
Last Monday’s session startedwith gains in share prices forPolish stocks, in part becauseof the release of Poland’s PMIindex reading for Marchwhich stood at 50.1 points.This indicated that activity inthe manufacturing sector ex-panded slightly.
There was also good newsfrom Western European mar-kets which served as an addedincentive for investors. Posi-tive ISM manufacturing senti-ment data from the US im-proved moods further, withthe blue-chip WIG20 endingthe day up 0.63 percent, whilethe WIG finished up 0.54 per-cent.
Last Tuesday’s session wasrelatively uneventful. The daystarted with gains, with theWIG20 rising 0.6 percent butoptimism faded as the daycontinued. The WIG20 finallyended the day 0.1 percentdown. Oil refiner Lotosgained the most, rising 5.6percent, while Bank Pekao
ended the day 3.1 percentdown.
Monetary policy was themain focus of attention onWednesday as investors ana-lyzed signals coming from theNational Bank of Poland con-cerning interest rates. Theday started on a pessimisticnote since investors’ moodswere made worse by the factthat the US Federal Reservehad signaled on Tuesday thatit might end its financial “sup-port” for the American econ-omy. The WIG20 eventuallyended the day 1.81 percentdown, with the German DAXand the French CAC alsofalling.
Thursday’s session was abit of a roller coaster. TheWIG20 started the day withgains only to lose up to 0.7percent at one point in theday. But the optimists didn’tgive up and the WIG20ended the day 0.3 percentup. The WSE was closed onFriday. ●
Remi Adekoya
APRIL 9-15, 2012 SPORTS www.wbj.pl 21
Soccer
Polonia Warszawa fanstear gassed by policeSupporters hadunveiled a banner withthe slogan “Down withCommunism”
Fans of Polish Ekstraklasateam Polonia Warszawa weretear-gassed by police during ahome match against ÂlàskWroc∏aw at the start of April.
The incident occurred aftersupporters unveiled a bannerwhich read “Down with Com-munism! Polonia Warszawa.”
Andrzej Szczepaƒski, anofficial from the Polish Foot-ball Association (PZPN) whowas at the game, then instruct-ed the stadium announcer totell the supporters to removethe slogan.
Fans of the Black Shirts, asPolonia are known, ignoredthe announcement, and as aresult around 30 police offi-cers were sent in to take thebanner by force. The policemet strong resistance fromPolonia fans and although thegame was halted for a shorttime and some fans were hos-pitalized, the banner remainedon display.
“According to PZPN’s sta-tus, a stadium is an apoliticalplace. There is no place forpolitical banners there. If thedelegate had not reacted, hewould have been heldaccountable for that,” saidMiros∏aw Starczewski, vicepresident of PZPN’s securitydepartment.
The board of PoloniaWarszawa responded by pub-lishing a statement on theclub’s official website.
“We disagree with theopinion of the delegate of the
PZPN, Andrzej Szczepaƒski… Eight “Black Shirts” weremurdered in Katyƒ, and manymore were killed fighting theBolsheviks, and others had toleave the country. These factsclearly show that in the case ofPolish opposition against com-munism, [the club] is of partic-ular importance. We considerit essential that the peoplewho make decisions are awareof the historical factors specif-ic to the clubs,” the statementsaid.
David Ingham
American football
Eagles remain unbeaten in Topliga
Teams faced difficultconditions as snowshowers affected playin the second round
Warsaw Eagles overcame atough test in the latest round ofPolish American FootballLeague (PLFA) Topliga games,having to battle both adverseweather conditions and resist-ance from Gdynia Seahawks inorder to maintain their unbeat-en start to the season.
The field at the NationalRugby Stadium in Gdynia wascovered with a blanket of snowbefore kick-off and this mayhave played a role in the slowstart to the match, with both
sides struggling for rhythm inan interrupted first half. In theend, the Eagles went in at thebreak 13-8 up.
The third quarter was atopsy-turvy affair, which start-ed with Kyle McMahon hittingJosh DeLuca on a 32-yardscoring pass to give the Sea-hawks a one-point lead.Tyrone Landrum erased thatadvantage on the next play,before Mr DeLuca thencaught another touchdownpass to allow Gdynia to goahead. The lead then changedhands again with two moretouchdowns ensuring thequarter ended with Warsawleading 32-22.
The Seahawks could findno answer in the last quarter,conceding three more touch-downs to the visitors to makethe final score look a lot worsethan the actual run of playwould have suggested.
In the weekend’s othergames, Dom-Bud KrakówTigers beat Koz∏y Poznaƒ toensure the Goats remained theonly side without a win as theteams go in to the Easter break.In the last match of the week-end, Wroc∏aw Devils recoveredfrom their opening-day loss tocrush AZS Silesia Rebels 59-0in another game played in diffi-cult weather conditions.
Alex ZarganisHandball
Poland lose to Germanyin Olympic warmupThe game was watchedby a record 11,000fans at the Ergo Arena
Poland lost their last warmupgame prior to an Olympicqualifying tournament in Ali-cante, Spain, last week.
Coach Bogdan Wenta’steam went down 26-28 to Ger-many in front of almost 11,000fans, a record for a Polishhandball game, at the ErgoArena in Gdaƒsk.
“It was amazing … It hurtsme that we were unable torepay our supporters for thisunique setting and atmos-phere with victory over theGermans, or at least a draw,”Bogdna Wenta said after thegame.
The two teams, who havealready met once this yearwhen Poland won 33-32, wentin at the break all square at15-15. But with the scorestied at 26-26 going in to thefinal stages, the Germansbroke the home team’s resist-ance as first Lars Kaufmannand then Dominik Kleinscored.
As WBJ went to press,Poland were in Alicante to faceSpain, Serbia and Algeria in abid to qualify for this summer’sLondon Olympics. The top two
teams from the qualifying com-petition will book their place
on the plane for the flagshipevent. David Ingham
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Poland coach Bogdan Wenta was disappointed that his
players lost to two late goals
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APRIL 9-15, 2012LIFESTYLE22 www.wbj.pl
April 19-26AfryKamera 2012VII African Film FestivalKinoteka,Palace of Culture and SciencePl. Defilad 1Warsaw
Originally launched back in2006, the aim of the AfryKam-era festival is to present thebest African film releases toaudiences in Poland.
This year’s event is split intofour categories: Made in Africa;Africa in Diaspora; Africa Kidsand Africa Rhythms.
Stand-out films include“Restless City,” a movie whichtells the story of Djibril, ayoung African immigrant try-ing to make a life for himselfon the streets of Harlem, NewYork, and “Ramata,” a filmabout a 50-year-old Sene-galese woman who begins arelationship with a criminal 25years her junior.
The opening movie forAfryKamera 2012 is “Asma'a.”Based on a real-life character,it tells the story of a womanwho is HIV positive but hidesher health problems from fam-ily and friends. The film pre-miered at the Abu DhabiInternational Film Festival,
with director Amr Salama win-ning the award for Best ArabDirector in the New Horizonscompetition.
Each year, the best film ofthe festival, which also takesplace in cities including
Gdaƒsk, Kraków and Poznaƒ,is awarded the Zebra prize fol-lowing an audience vote.
For more information logon to afrykamera.pl
David Ingham
April 13-May 6“The Faces of RacismRevealed” Wilanów Poster Museum ul. St. Kostki Potockiego10/16, Warsaw
The main theme of this exhibi-tion of 250 posters is the insti-tutional face of racism. Theaim of the project is to encour-age visitors to think about themanner in which ideas thatencourage racist stereotypes,racial discrimination and racistattitudes are disseminated inthe public discourse.
Through their posters, artistshave tried to raise awarenessabout the various forms of racialintolerance in Europe today, aswell as promote tolerance and
mutual understanding. Created in cooperation
with Amnesty Internationaland the Brumen Foundation,the posters were exhibited last
autumn at the Poster FestivalLjubljana ‘11.
For more information logon to postermuseum.pl
David Ingham
Festival
Africa on film
Exhibition
Institutional racism uncovered
Until October 31, 8am - 6pmThe Great Football ExhibitionPalace of Culture and SciencePl. Defilad 1Warsaw
Located on the 6th floor ofWarsaw’s iconic Palace of Cul-ture and Science, the GreatFootball Exhibition featuresmemorabilia connected withsome of the greatest players ofyesteryear.
With over 100 shirts on dis-play from soccer legendsincluding Germany’s Karl-
Heinz Rummenigge,Portugal’s Luis Figo andFrench Legend Zine-dine Zidane, the exhibi-tion is definitely worth alook for soccer fans.
Other exhibits in-clude pennants, tro-phies, a variety of ballsfrom different stages ofsoccer history, as wellas interactive games forkids.
For more informa-tion log on to
wystawapilkarska.plDavid Ingham
Exhibition
Sporting history
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AfryKamera showcases the best of African film
Centre for ContemporaryArt at Ujazdowski Castle ul. Jazdów 2www.csw.art.pl
Czarna Gallery ul. Marsza∏kowska 4www.czarnagaleria.art.pl
Galeria 022, DAP, Lufcik ul. Mazowiecka 11awww.owzpap.pl
Galeria 65 ul. Bema 65www.galeria65.com
Galeria Appendix 2 (Praga)ul. Bia∏ostocka 9www.appendix2.com
Galeria Asymetria ul. Nowogrodzka 18awww.asymetria.eu
Galeria Foksal ul. Foksal 1-4www.galeriafoksal.pl
Galeria Milano Rondo Waszyngtona 2A (Praga)www.milano.arts.pl
Galeria Schody ul. Nowy Âwiat 39www.galeriaschody.pl
Galeria XX1 Al. Jana Paw∏a II 36www.galeriaxx1.pl
Galeria Zoya ul. Kopernika 32 m.8www.zoya.art.pl
Green Gallery ul. Krzywe Ko∏o 2/4www.greengallery.pl
Katarzyna Napiórkowska Art Galleryul. Âwi´tokrzyska 32, ul.Krakowskie PrzedmieÊcie 42/44and Old Town Square 19/21www.napiorkowska.pl
Królikarnia National Galleryul. Pu∏awska 113awww.krolikarnia.mnw.art.pl
Le Guern Galleryul. Widok 8, www.leguern.pl
Museum of IndependenceAleja SolidarnoÊci 62www.muzeumniepodleglosci.art.pl
National Museum in Warsaw Al. Jerozolimskie 3www.mnw.art.pl
Polish National Opera atTeatr WielkiPl. Teatralny 1www.teatrwielki.pl
Pracownia Galeriaul. Emilii Plater 14www.pracowniagaleria.pl
Rempex Art and Auction Houseul. Karowa 31www.rempex.com.pl
Royal CastlePl. Zamkowy 4www.zamek-krolewski.com.pl
Simonis Galleryul. Burakowska 9www.simonisgallery.com
State ArchaeologicalMuseum in Warsawul. D∏uga 52 (Arsena∏) www.pma.pl
State Ethnographic Museumul. Kredytowa 1www.ethnomuseum.website.pl
Historical Museum of Warsaw Old Town Square 28-42www.mhw.pl
History Meeting House of Warsaw ul. Karowa 20www.dsh.waw.pl
Warsaw Philharmonic ul. Jasna 5www.filharmonia.pl
Warsaw Rising Museum ul. Grzybowska 79www.1944.pl
Wilanów Palace Museumand Wilanów PosterMuseumul. St Kostki Potockiego 10/16www.milanow-palac.plwww.postermuseum.pl
Zachęta National Art GalleryPl. Ma∏achowskiego 3www.zacheta.art.pl
Museums, galleries and venues in Warsaw
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racial intolerance in Europe
The exhibition features over a
100 soccer shirts
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APRIL 9-15, 2012 LAST WORD www.wbj.pl 23
Tech Eye
If you ever take public transport inWarsaw, beware the 17 tram. Mad-ness there abides.
It manifests in overcrowded car-riages as scabrous men shoutingabout the CIA; or pestilent mendripping horrible foreign sub-stances from beneath their fetidcoats; or convulsive women whoreek mysteriously of barnyard. Andthose are the benign incarnations oflunacy, the ones which bite not, norfroth.
On the plus side, casualties arerare (discounting emotional trau-ma), as long as you keep your headdown and don’t attract attention.But woe betide the passenger who,through ill chance or cynicalimpulse, makes eye contact withone of the crooked pilgrims.
Techeye knows well the truth ofthis. Just last week as we stood,crushed amidst so many others inthe tram, the driver unexpectedlyhit the brakes, sending half the pas-sengers surging forward. At thatmoment, half-flying through the air,we peered into the single eye of ahunched creature which stood glib-bering and meeping in a smallpocket of open space. Taking the
opportunity, it began to glibber andmeep excitedly in our general direc-tion, perhaps in the spirit of friend-ship or out of craving for humanflesh. We never found out, choosinginstead to jump from the tram win-dow and hide in a bush for 20 min-utes.
On that fateful day, crouchedbeneath scraggly shrubbery, weswore never to board the 17 tramagain without some means of avoid-ing freaky eye contact. A meanssuch as the Moverio BT-100 wear-able display from Epson(epson.com).
There’s something we ought totouch upon before getting intothe BT-100 though, andthat something iscalled aug-m e n t e dreality. Ifyou’re unfa-miliar withthe concept,it’s basically theaddition of virtualelements, visible via a dis-play device, to everyday life.Like if a shop wanted customers tosee penguins dancing on its ceilings.
Augmented reality is still in itsinfancy. Many devices are beingdeveloped, however – you mighthave seen news last week ofGoogle’s own concept, ProjectGlass – and someday augmentedreality will be an element of dailylife. It will be awesome, and here’san example of why.
Let’s say you have a boss – callhim Ebeneezer Tosspot – and heisn’t a very nice fellow. So you (or askilled friend) write a bit of codetied to a specific geographic coordi-nate and upload it to the net. As aresult, anyone driving past yourboss’s house while wearing an aug-
mented reality display will see agiant arrow pointing downwardwith the message “I snog donkeys.Won’t you bring me one?” floatingin bright pink letters above the roof.
That’s still a ways off, sure, butit’s the future. The Tosspots of theworld should take note.
Let’s get back to the BT-100. It’san Android-based device that canrun apps and play both 2D and 3Dfilms. There’s Wi-Fi connectivity,1GB internal storage, a 4GBmicroSDCH card slot and DolbyMobile virtual surround
sound earphones, with a batterythat will last almost six hours on themove. So you can use it to watchfilms, read on the internet, viewaugmented reality images and playgames.
Bear two things in mind. First,the BT-100 is a freshman effortand neither Epson nor anyone elsehas an intuitive “Apple-style”design for this kind of device.We’re nowhere close to criticalmass in this market, wearable dis-play-specific apps are only now
being written and aug-mented reality imple-
mentation is stillrare.
Second, it costsaround $699.99, a tidy sum forsomething that’s going to makeyou look a bit silly in public (atleast until such devices becomemore common, by which time theBT-100 will probably have longbeen obsolete anyway). On theother hand, if it prevents unin-tended eye contact with the 17tram’s deranged denizens, andblocks out their insane squeals andululations, it will be worth thecost. ●
To advertise in WBJ’s classifieds section, contactMs Agnieszka Brejwo, at
(+48) 222-577-526 or [email protected]
A glimpse into the roiling abyss
COURTESY OF EPSON
Ever communicated with one of the dark dwellers of public transport? Let us know: [email protected]
