VOLUME 17, NUMBER 21 • MAY 30 – JUNE 5, 2011 . z∏.12.50 (VAT 8% included) . ISSN 1233 7889 INDEX-RUCH-332-127

UUnniitteedd bbyy ffiissssiioonn??Poland’s PGE and Russia’s Rosatom are

thinking about doing business together 5

Since 1994 . Poland’s only business weekly in English

WW

W.W

BJ.P

L

Obama maniaLove him or leave him,

the US president’s visit

created quite a stir. But

what about its long-

term implications

for the Polish-US

relationship?

3, 12-14

SSuummmmiitt bbooyyccoottttThe presidents of Serbia and Romania took

umbrage with Kosovo’s attendance at last

week’s CEE summit 3

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April macro data suggests

a June interest rate hike.

Or does it?

Coal miner JSW has

posted strong Q1 results

ahead of its IPO

The raid of a blogger’s home

has raised questions about

freedom of speech in Poland

REAL ESTATELokale Immobilia

• National Stadium

concerns

• Galeria Mokotów sold

• Echo’s new projects

15-19

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News . . . . . . . . . . . . . . . . . . . . . . .2-4

Industry News . . . . . . . . . . . . . . .5-6

Opinion . . . . . . . . . . . . . . . . . . . . . . .7

Interview . . . . . . . . . . . . . . . . . . .8-9

Health Care in Focus . . . . . . . . . .10

Business Environment . . . . . . . . .11

Cover Story . . . . . . . . . . . . . . .12-14

Lokale Immobilia . . . . . . . . . .15-19

The List . . . . . . . . . . . . . . . . . . . . . .20

Markets . . . . . . . . . . . . . . . . . . . . .21

Arts & Culture . . . . . . . . . . . . . . . .22

Last Word . . . . . . . . . . . . . . . . . . . .23

In this issue

Kujawsko-Pomorskie

¸ódzkie

Lower Silesia

Lubelskie

Lubuskie

Ma∏opolskie

Mazowieckie

Opolskie

Podkarpackie

Pomorskie

Podlaskie

Warmińsko-Mazurskie

Świętokrzyskie Silesia

Wielkopolskie

Zachodniopomorskie

Poland 12.6

16.9

12.713.2

13.615.0

15.8

10.7

9.8

13.2

15.9

13.3

12.8

9.4

17.820.5

10.4

MAY 30 – JUNE 5, 2011NNEEWWSS2 www.wbj.pl

Poland backs

Lagarde

Poland has given its

support to French

Finance Minister

Christine Lagarde’s bid

to become the new head

of the IMF. “This is a very

good candidacy, it’s hard

to imagine a better

candidacy and it has the

backing of the Polish

government,” Finance

Minister Jacek Rostowski

told reporters at the

Polish parliament. The

news follows the May 14

arrest of former IMF

boss Dominque Strauss-

Kahn, following

allegations that he

sexually assaulted a

maid in a New York hotel.

Basketball

player

Dydek diesMa∏gorzata Dydek, the

most famous Polish

female basketball player

in history, died on Friday

in a hospital in Brisbane,

Australia. Ms Dydek was

four months pregnant and

doctors were also unable

to save her child. The 37-

year-old former WNBA

player had been in a

medically-induced coma

for several days before

her death after suffering a

heart attack on May 19.

TNK-BP bids

for Lotos

Moscow-based oil

producer TNK-BP, BP

Plc’s Russian joint

venture, has submitted a

non-binding bid to buy a

stake in Poland’s second-

largest oil refiner Grupa

Lotos, Russian daily

Kommersant reported.

According to unnamed

sources with knowledge

of the sale cited by the

paper, TNK-BP is the only

Russian bidder for the

asset. Gazprom Neft and

Rosneft, which earlier

were considering taking

part in the tender, did not

submit bids, the

newspaper reported. The

Polish government is

offering a 53% stake in

Grupa Lotos, to raise cash

for financing the budget

deficit and curb debt.

Secret NATO

meeting

Last Wednesday,

commanders of special

forces of all 28 NATO

countries and partner

states attended a special

two-day meeting in

Kraków. For security

reasons, the summit was

kept a secret until the

last minute. ●

ABM Solid ..................................21

Abu Dhabi

Investment Authority ................11

Alpine Bau..................................16

AMB ............................................15

Apax Partners ..............................5

Asseco ........................................10

Bain Capital..................................5

Bank Citi Handlowy....................11

Bank Zachodni WBK..................11

bmp AG ......................................21

BP Plc ..........................................2

BRE Bank ..................................21

BRE Bank Capital Group ..........17

BRE Property Partner................17

CE .............................................. 21

Chevron ......................................14

CN CORP....................................20

ConocoPhillips ..........................14

Cyfrowy Polsat ......................5, 21

Deutsche Telekom ......................6

DM BZ WBK ..............................10

DSV Solutions ............................20

Duffy London..............................23

East Capital ................................11

EC Harris....................................15

Echo Investment ........................18

EDF ..............................................5

Empik ..........................................5

Enel ..............................................5

Eton Park ..................................11

Europolis Real Estate

Asset Management....................20

ExxonMobil ................................14

Fiege ..........................................20

FM Polska ..................................20

Fresh Logistics ..........................20

Getin Holding ............................21

Gfk ..............................................10

Globe Trade Center....................15

GP Investments..........................17

Grupa Lotos ................................2

Grupa Raben ..............................20

Grupo Prasa ..............................17

Hilton Worldwide........................18

Hydrobudowa ............................16

ING OFE......................................11

Internet Group............................21

Jastrz´bska Spó∏ka W´glowa......5

Jelfa..............................................6

JW Construction ........................17

Kernel ........................................11

KGHM ....................................5, 21

LPP ..............................................6

LUX MED Group ........................10

Luzzo Bespoke ..........................23

Marathon Oil ..............................14

Mediatel......................................21

Menard Doswell & Co. ..............20

Mewa ..........................................21

Mielno Holding – Firmus Group ......15

MLP Group ................................20

Mostostal-Export ......................21

NFI Krezus ................................21

NFI Midas ..................................21

Orlen ......................................5, 21

Panattoni Europe ......................20

PBG ............................................16

PEKAES ......................................20

PGE ..............................................5

PGNiG ..................................14, 21

PKO BP ......................................21

Platan Group ..............................20

PointPark Properties ................20

Polkomtel ....................................5

Polska Telefonia Cyfrowa ............6

Port-Hotel ..................................18

ProLogis ....................................20

PTI ..............................................21

Rosatom ......................................5

Sanitas..........................................6

Sawa Apartments Wilanów ......17

SEGRO Poland ..........................20

T-Mobile ......................................6

Talisman Energy ..........................5

Telenor..........................................5

TeliaSonera ..................................5

TIM..............................................21

TNK-BP ........................................2

TP................................................21

TVN ............................................21

Ukrnafta ....................................11

Unibail Rodamco........................15

Valeant Pharmaceuticals ............6

Vodafone ......................................5

Waimea Holdings Limited ........16

WAN............................................17

Wittchen ....................................10

W´glokoks ....................................5

Ratko Mladiç, chief of staff ofthe Bosnian Serb Army duringthe 1992-1995 Bosnian War,was arrested by Serbian securi-ty forces last week after almost16 years on the run. He isaccused of numerous crimescommitted during the war,including commanding theforce which perpetrated theSrebrenica massacre of July1995, in which over 8,000 Mus-lim Bosniaks died.

Mr Mladiç has been wantedby the International CriminalTribunal for the FormerYugoslavia since 1995. A re-ward was offered for anyonewho helped capture the allegedwar criminal.

Serbian authorities stressedearlier this year that reconcilia-tion is a policy priority for thecountry.

“That is why we will contin-

ue to fully cooperate with theHague Tribunal, and why wewill keep working on locating,arresting and extraditing thetwo remaining fugitive in-dictees, including RatkoMladiç, as we have with 44 oth-ers over the past few years,”Serbian President Boris Tadiçsaid in a January address to theCouncil of Europe Parliamen-tary Assembly.

The arrest of Mr Mladiç,who is now likely to be turnedover for trial at the Hague, haslong been regarded as a pre-condition for the fulfillment ofSerbia’s European Unionmembership aspirations. Thecountry is now expected toreceive candidate status by theend of the year, during the Pol-ish presidency of the EU.

At a joint press conferenceheld with President Tadiç after

the arrest of Mr Mladiç, EUforeign affairs chief CatherineAshton stressed that it wouldbe of great benefit for Serbia,but also for the EuropeanUnion, to eventually see thecountry gain membership.

“I think … the events oftoday will give renewed energyto the process,” Ms Ashtonsaid.

Last week, however, somepolicy differences between Ser-bia and the EU emerged, as thecountry boycotted a summitmeeting of Central and EasternEuropean leaders in Warsawover the presence of Kosovo’sPresident Atifete Jahjaga.

Serbia has to overcome thedemons of its past if it wants tojoin the EU, Polish ForeignMinister Rados∏aw Sikorskisaid on TVN24.

AAddaamm ZZddrrooddoowwsskkii

4.2% is the Economy Ministry’s latest GDP growth estimate

for 2011

z∏.1 million is the estimated cost of preparing Warsaw for US

President Barack Obama’s visit. The cost of the

president’s full stay will be much greater

6US presidents previously visited Poland: Nixon, Ford,

Carter, George H. W. Bush, Bill Clinton and George W.

Bush

21national leaders were in Warsaw last Friday for the

17th Meeting of Presidents of Central European States

“My reply would be ... why not?”Polish People’s Party MP Eugeniusz K∏opotek comments on the possibility of a

coalition between his party and the Law and Justice (PiS) party after the

autumn’s parliamentary election

Quote of the Week

Obama in Poland

To be sure you didn’tmiss anything of interestduring US PresidentBarack Obama’s firstvisit to Poland, log on toWBJ.pl for a follow-up ofthe weekend’s events inpictures and analysis.

On WBJ.pl

Numbers in the News

Company index

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2 CONFERENCE PRCH RETAIL HORIZONSEvent: The best meeting place for executives:

investors, developers, administrators andretail chains. Location: Hilton Warsaw Hotel & ConventionCentre, Warsaw. prch.org.pl

9 DR IRENA ERIS LADIES’ GOLF CUPEvent: The fourth international golf tournament of Dr

Irena Eris Ladies’ Golf Cup.

Location: Naterki, Poland. www.drirenaerisgolf.pl/english/

17 ANNUAL OUTSOURCING FORUM & ABSL CON-FERENCE

Event: The Annual Outsourcing Forum & ABSL Con-ference will examine the position of Polandon the global map of business services. Location: Westin Hotel, Warsaw. www.roadshowpolska.pl

June

DATELINE

Ratko MladiçIN THE SPOTLIGHT

Figures in focus

Hard at work in Wielkopolskie

Unemployment rate (in percentage) at the end of April, by

voivodship

Source: Central Statistical Office

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MAY 30 – JUNE 5, 2011 NNEEWWSS www.wbj.pl 3

Nanghar

Khel

prosecution

Prosecutor Jakub Mytych

of the Military District

Court in Warsaw said

that Polish troops

accused of perpetrating

the Nanghar Khel

massacre should be

given between five to 12

years in prison,

Rzeczpospolita reported.

In August 2007, Polish

soldiers allegedly

opened fire in the village

of Nanghar Khel in

Afghanistan, killing six

Afghani civilians. This is

the first trial in Polish

military history which

concerns the

contravention of the

Hague Convention and

the massacre of innocent

civilians. The prosecutor

also called for significant

financial penalties to be

levied.

Soccer venue

switch

Gdaƒsk’s PGE Arena is

not in a fit state to host

the upcoming soccer

match between Poland

and France, according to

the Polish football

association (PZPN). The

friendly, scheduled for

June 9, has now been

moved to Warsaw. The

decision is a blow to

Poland’s Euro 2012

plans, as the game was

due to be the first

played at the new

stadium ahead of next

summer’s tournament.

In a statement, PZPN

said that following

consultations with the

police and stadium

management they had

no choice other than to

move the match because

the PGE Arena was not

ready to hold

spectators.

GDP growth

forecast rises

Deputy Prime Minister

and Economy Minister

Waldemar Pawlak

estimates that Poland’s

economy will expand by

more than 4% this year,

Rzeczpospolita

reported. Previous

Economy Ministry

estimates had seen

lower gross domestic

product growth. This

follows last week’s

announcement by the

European Bank for

Reconstruction and

Development, which

predicted Polish GDP

would increase by 3.8%

y/y, the same as in

2010, and by 3.5% y/y in

2012. ●

CEE politics

Boycott, Obama put Warsaw summit in spotlightKosovo’s presence atthe meeting led to aboycott by Serbia andRomania

The Meeting of Presidents ofCentral European States is anannual gathering which doesnot usually get a whole lot ofpress outside of the region. Thisyear’s summit, held in Warsaw,was notable for two reasons: thepresence of US PresidentBarack Obama and the absencesome of the usual attendees.

The summit was originallydue be attended by some 22regional leaders as well as Pres-ident Obama, attending as anhonorary guest. The guest listincluded the heads of Ger-many, Italy, the Czech Repub-lic, Ukraine, Croatia, Austria

and Lithuania. Friday’s daylongmeeting ended with a workingdinner at the PresidentialPalace, also attended by MrObama.

Serbian President BorisTadič and his Romanian coun-terpart, Traian Basescu, boy-cotted the event due to thepresence of Kosovan PresidentAtifete Jahjaga.

Serbia refuses to recognizethe independence of Kosovo,which unilaterally declareditself independent from Serbiain 2008. Kosovo’s independ-ence is recognized by 75 coun-tries, including the US, Polandand most European Unioncountries. Romania is one offive EU countries that do notrecognize Kosovo as a country.

Mr Tadič stuck to his deci-

sion not to attend after thehigh-profile arrest of fugitiveRatko Mladiç, one of theworld’s most-wanted allegedwar criminals, last Thursday.The arrest would likely have putSerbia in the spotlight duringMr Obama’s visit in Warsaw.

Despite earlier indicationsthat Slovakia too would boycottthe summit, Slovak PresidentIvan Gašparovič chose toattend. Some media sourcesattributed the change of heartto the Polish authorities’ deci-sion not to display Kosovo’snational symbol or any officialjoint declaration featuring thesignature of Kosovan officials.A spokesperson for Poland’sPresidential Chancellery wouldnot confirm those reports.

The Polish authorities have

stated that they were not awarethat the Kosovo issue wouldcause problems, but chose notto withdraw the nation’s invita-tion.

“Kosovo, so far as I amaware, is currently recognized

by 75 countries, including Po-land and most EU members. Sothere’s no reason not to inviteKosovo’s representative,” For-eign Minister Rados∏aw Si-korski told journalists.

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Serbian President Boris Tadic (right) refused to attend

The Polish capitalwas captivated longbefore Air Force Onetouched down

Arriving in Warsaw for thefirst time, US PresidentBarack Obama brought thecity center to a standstill.Roads were closed, business-es closed early and dozens ofvehicles were towed away.

The cost of the Americanpresident’s visit will not be

known until after he’sdeparted and the dust hassettled. Offering a compari-son, TVN24 reported thatthe president’s one-hour stopin Oslo last December cost$712,000, while a three-daystay in Mumbai a month ear-lier had totaled $200 million.

The potential benefits ofthe visit nevertheless out-weigh the monetary cost ofhosting President Obamaand his entourage. The bol-

stering of military and diplo-matic ties, pledges on shalegas exploration and – ofutmost interest to the “aver-age Kowalski” – a move toadd Poland to the US VisaWaiver Program were allpotential outcomes of lastweek’s negotiations.

At the same time, topicsless comfortable for bothnations were expected to beleft off the agenda, or at leastnot publicly discussed. Priorto his arrival the WorldJewish Restitution Organiza-tion had publicly pressed theUS president to address therestitution of property takenfrom Jews during World WarII, an issue which has led toheated words on both sidesof the Atlantic this year.

Another matter whichwasn’t on the official agenda– the alleged presence of aCIA prison near SzymanyAirport in Northern Poland.Reports that al-Qaeda sus-pects were flown to the site,and tortured in some cases,are the subject of an ongoinginvestigation. Neither nationhas officially discussed theprison, despite significantevidence of its existence.

Talk of the townMr Obama’s presence inWarsaw certainly galvanizedthe political class. Politiciansof all stripes weighed in onthe visit and its implications –positive and negative – forPolish-US relations.

Even Jaros∏aw Kaczyƒskiwas, as WBJ went to press,

expected to attend a Satur-day meeting with the Ameri-can president at the Presi-dential Palace. The Law andJustice (PiS) leader hadsworn publicly that he wouldhave nothing to do with Pres-ident Komorowski and haslargely absented himselffrom bi-partisan events sincehis failed 2010 presidentialbid.

“I will attend the meeting.What are my motives? Theinterests of the country, theinterests of Poland, that iswhat is most important forme right now,” Mr Kaczyƒskitold the press.

Asked whether he wouldtalk with Mr Obama aboutthe possibility of getting aninternational commission toinvestigate last year’s plane

crash in Smolensk, Russia,Mr Kaczyƒski said it wasn’this role as opposition leaderto raise such a point. Howev-er, he added that if the Polishpresident or prime ministerwere to do so it would makehim “very happy.”

Not all of the country’spolitical elites were expectedto turn out for the US presi-dent though. Former Presi-dent Lech Wa∏´sa, for one,declined an invitation andeven a call from current Pres-ident Komorowski failed tosway him. The Solidarity leg-end claimed that a meetingbetween himself and fellowNobel Peace Prize honoree“simply didn’t fit” under thecircumstances of the visit.

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The US president in Warsaw

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President Obama’s visit brought Warsaw to a standstill

The “Beast” – the US presi-dent’s eight-ton, diesel-pow-ered limousine – arrived inPoland last Friday morning,several hours before thearrival of President BarackObama himself.

The Beast is perhaps themost secure car in the world.Although many details con-cerning the vehicle areunderstandably kept secret,it is reportedly made from amixture of reinforced steel,aluminum, titanium andceramic.

The windows are made ofballistic glass and are said tobe five inches thick. Expertssay there’s probably a wovenKevlar mat covering thefloor of the car to protect itfrom blasts, while the cabin isbelieved to feature a sealedair recirculation system,designed to protect occu-pants from chemical attacks.

The cabin itself can beused as a command-and-control center in case ofemergencies.

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MAY 30 – JUNE 5, 2011NNEEWWSS4 www.wbj.pl

Censorship

Blogger case begs questions

about free speechThe Internal SecurityAgency stormed thehouse of a blogger whomade fun of PresidentKomorowski online:they may have gonetoo far

Robert Frycz, author of theblog AntyKomor.pl, hasbecome Poland’s most famousblogger, and the center of adebate on free speech.According to Mr Frycz, theblog was dedicated to “politi-cal satire” aimed at PolishPresident Bronis∏aw Komo-rowski.

But according to the Inter-nal Security Agency (ABW),whose agents stormed the 25-year-old student’s house at 6am and confiscated his laptopand hard disks, the websitecontained “materials thatinsult the president of Poland,and which may incite people tocommit a crime.”

The website, explained theABW spokesperson in a state-ment, included games in whichone could throw variousobjects (including a hammerand feces) at an image of theface of the president. Accord-ing to Article 135 of the Polish

Penal Code, insulting the pres-ident is a public offense pun-ishable by up to three years inprison.

The president and theprime minister’s offices haveexpressed surprise at the news.

“ I believe that self-irony isabsolutely necessary in poli-tics,” said Mr Komorowski in

an interview posted on hiswebsite. “Of course you canmake fun of politicians.”

Flawed lawBoth offices said that the secu-rity agents were only followingvague laws and were not toblame.

“If the law in this regard isflawed, it must be corrected.Freedom of expression is asupreme value in Poland … itis the foundation of a demo-cratic state,” S∏awomir Nowak,Secretary of State in the Presi-dent’s Office, told TVN24

AntyKomor.pl, which will

not reopen and is not up forsale, was not defamatory,maintains its author.

“Preventive censorship ischaracteristic of an authoritar-ian system,” said the blogger ina statement on his website.

Mr Frycz explained that themain motivation behindAntyKomor.pl was to show theflipside of the president’s ownmethods, which he describedas, “the permanent and delib-erate efforts to ridicule theperson of the late LechKaczyƒski and his brother,Jaros∏aw Kaczyƒski.”

MEPs from the oppositionparty Law and Justice (PiS)say the ABW had oversteppedits authority and have askedfor an investigation.

Dominika Bychawska-Si-niarska, program coordinatorat the Observatory of MediaFreedom at the Helsinki Foun-dation for Human Rights, saidthat the case displayed anotable lack of proportionalitybetween offense and action.

“The ABW is meant to actin really important crimes likedrug trafficking, terrorism andorganized crime, and thatobviously wasn’t the case,” shesaid.

AAlliiccee TTrruuddeellllee

Refusal of legalassistance from the UScontinues to be amajor obstacle to theinvestigation

The deputy prosecutor incharge of investigating whetherPoland allowed secret CIAprisons to operate within itsborders has been replaced.Waldemar Tyl has now takenthe place of Jerzy Mierzewskiin the long-running criminalinvestigation which startedback in 2008.

The Prosecutor’s Office hassought to assure Poles that thechange will not impact theinvestigation, but human rightsactivists are worried that it is indanger of being scrapped.

“There was no objectivereason for removing Mie-rzewski,” Adam Bodnar, alawyer with the Helsinki Foun-dation in Warsaw, told theAssociated Press (AP). “I amafraid that sooner or later thePolish investigation will discon-tinue the proceedings,” headded.

Other human rights activistshave criticized the handling of

the investigation. Recently theOpen Society Justice Initiativefiled a case against Poland inthe European Court of HumanRights, arguing that the coun-try was not conducting an effec-tive investigation into itsalleged participation in the ren-dition program carried outunder then US PresidentGeorge W. Bush.

Although the Prosecutor’sOffice was made independentfrom the Ministry of Justice

last year, many argue thatpolitical pressure is likely play-ing a role in the sluggishness ofthe investigation.

Since 2002 representativesfrom all Polish governmentshave either denied or avoidedcommenting on the camp’sexistence, and the UnitedStates has refused to providelegal assistance for the case ongrounds of national securityand state interest.

“If the government wereintent on resolving this, there

would be diplomatic support torequest mutual legal assistancefrom the US. That has not hap-pened. The prosecutor is com-pletely on his own which, giventhe international status ofthese proceedings, means thatthis investigation is an illusionreally,” said Miko∏aj Pietrzakof the Pietrzak & Sidor lawoffice in Warsaw.

Mr Pietrzak is the lawyer inPoland of Abd al-Rahim al-Nashiri, who was allegedlydetained and tortured inPoland between 2002 and2003, before being transferredto the US military base atGuantánamo.

Speaking to the AP Mr Tyl,the new man at the head of theinvestigation, said he wouldkeep up efforts to seek infor-mation from Washington. AsWBJ went to press, is was notclear if this issue would be dis-cussed during PresidentObama’s visit to Warsaw,although Zbigniew Jaskólski,spokesperson at the Prosecu-tor’s Office, said Mr Tyl’sappointment was not related tothe US president’s visit.

AAlliiccee TTrruuddeellllee,, KKaattaarrzzyynnaa PPiiaasseecckkaa

CIA interrogations in Poland

Prosecutor replaced in‘black sites’ investigation

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“Freedom ofexpression is a

supreme value inPoland”

“This investigationis an illusion”

The result puts thefirm in a good lightahead of its stockmarket debut

Polish coal miner Jastrz´bskaSpó∏ka W´glowa (JSW)recorded a net profit of z∏.619million for the first quarter of2011, a four-fold increase onwhat it made a year earlier.Revenues leaped 53 percent toz∏.2.27 billion as the firm capi-talized on the high price ofcoal.

The company predicts coalprices will remain elevatedthroughout this year due torestricted supply and strongglobal demand from steel pro-ducers. JSW exports about 45

percent of the coal it produces. “[Long-term] contract

prices for hard-type coal roseto $225 per tonne in the firstquarter and $330 at the begin-ning of the second quarter,”the company wrote in itsresults presentation. “Pricesshould remain at high levelsthroughout 2011.”

The company will alsoincrease investments to z∏.1.5billion a year by the end of2015, CEO Jaros∏aw Zagó-rowski said.

All this, analysts say, isgood news for the govern-ment, which wants to floatJSW on the Warsaw StockExchange on July 6. The StateTreasury intends to retain at

least 51 percent of the minerand will give between 17-19percent to workers. Theamount to be floated has notyet been disclosed.

Analysts say that althoughinvestors may take a discountdue to recent troubles withtrade unions, the company’slatest earnings report andinvestment plans could meanthe government stands tomake about z∏.4 billion fromthe sale.

Daily Rzeczpospolitareported that JSW will divideits shares on a 10-for-1 basis,meaning the price-per-sharewould be slashed to z∏.100from over z∏.1,000.

GGaarreetthh PPrriiccee

Coal

JJSSWW eexxttrraaccttss bbiigg ffiirrsstt--qquuaarrtteerr pprrooffiitt

MAY 30 – JUNE 5, 2011 IINNDDUUSSTTRRYY NNEEWWSS www.wbj.pl 5

Empik’s

online blunder

Popular Polish online

store Empik.com may

not have any choice but

to deliver a number of

goods it was advertising

on its website, even

though it erroneously

offered them at prices

store managers say were

too low and incorrect.

Last week,

Rzeczpospolita reported

the firm might have

trouble canceling those

orders. For several

hours, Empik.com

clients were offered

some unbelievable

deals, including a games

console valued at

z∏.1,099 for just z∏.49.99.

Empik says the whole

matter was the result of

a systems error. But the

Office of Competition and

Consumer Protection

says a deal is a deal and

that Empik is bound to

honor the transactions.

Talisman’s

shale gas

plans Canadian company

Talisman Energy will

start drilling for shale

gas in Poland this year.

The company’s president,

Tomasz Maj, said that the

firm has finished

collecting seismic data on

all three concessions and

it is now analyzing the

information, Puls Biznesu

reported. The company is

scheduled to drill the

Gdaƒsk West concession

in September. ●

Contact: Miros∏aw Stefanik

ms@pnplaw.pl

Legal News

BROUGHT TO YOU BY PETER NIELSEN & PARTNERS LAW OFFICE

Company files accessibleonlineThe Sejm has passed an amendment tothe Law on the National Court Register.Among other things, the proposedchanges provide for the possibility toaccess documents submitted to the filesof commercial companies kept by regis-tration courts. As a result of the new provi-sions anyone will be able to review andprint copies of companies’ files. Print-outswill be considered official documents aslong as it is possible to verify that theymatch the documents kept in the register.

This amendment is obviously a majorfacilitation for entrepreneurs. Under theprovisions currently in force, if a busi-nessperson wants to get access to reg-istry files – to scrutinize a business partnermore carefully, for example – one had torequest that the court make the files avail-able, then visit the court in person andreview the files in a court files’ readingroom.

The amended law will now be directedto the Senate for the next stage of the leg-islation process.

Partnerships do not enjoylower tax on tenancyA lump-sum tax of 8.5% on incomesfrom tenancy is often chosen by individ-uals who earn such incomes but do notconduct other business activity. But canthe same rules be applied by one part-ner in a partnership which rents out aproperty?

Unfortunately, the answer is no. This isthe conclusion of a judgment by theVoivodship Administrative Court in War-saw issued May 11, 2011 (court file no. IIISA/Wa 2419/10). In justifying its ruling, thecourt concluded that when renting is theobject of business activity, incomes fromrenting of real properties should be treat-ed as originating from the source ofincomes and, in this case, the source ofincome is business activity. ●

0

50

100

150

200

250

300

Oceania

AfricaCEE

Middle E

ast

North Am

erica

Western

Europ

eCIS

Asia (e

xcl. Chin

a)Chin

a

271

77

3830

21 11 8 7 2

Coal, hard cash

Forecast increase in steel production

(in millions of metric tons), 2010-2015

Source: JSW

Speculation aboundsover one of the year’sbiggest M&A deals

The competition to acquirePolkomtel, operator of Po-land’s second-largest mobilebrand, Plus, is coming down tothe wire.

Polkomtel has been put upfor sale by its shareholders,refiner Orlen, copper miningfirm KGHM, utility PGE andcoal miner W´glokoks (allowned by the Polish state) aswell as British mobile servicesoperator Vodafone.

Final bids are reportedlydue on June 10, with four bid-ders still vying for the compa-ny: finance and media mogulZygmunt Solorz-˚ak; Swedishtelecom TeliaSonera; privateequity group Apax Partners;and a joint-venture comprisingNorwegian telecom Telenorand private equity investorBain Capital.

There’s been some confu-sion in the media regarding the

actual list of bidders, withRzeczpospolita reporting earlylast week that only tworemained. Other sources, how-ever, challenged that claim. Forits part, Dow Jones Newswirescited anonymous sources claim-ing that two bidders would bechosen for further negotiationsafter the June 10 deadline.

Who stands to gain themost by acquiring Polkomtel?According to Przemys∏awSawala-Uryasz, an analyst forCA-IB Securities, it’s theSwedish faction.

“TeliaSonera is all over the

Baltic Sea [region] and Polandis piece of the puzzle they aremissing, which is why they areon the short-short list,” he said.

Mr Solorz-˚ak, owner of TVplatform Cyfrowy Polsat, alsostands to gain much. He has saidhe would use Polkomtel to fur-ther his goal of creating a 4GLTE nationwide network. MrSawala-Uryasz feels the firm isparticularly appealing to MrSolorz-˚ak because “it wouldget him everything at once.”

Polkomtel is expected tocost z∏.16-18 billion.

TThhoommaass KKoollaassaa

Telecommunications

FFiigghhtt hheeaattss uupp ffoorr PPoollkkoommtteell

Rosatom, meanwhile,has expressed interestin Poland's ownnuclear program

Poland’s largest utility, PGE, isconsidering importing energyfrom Rosatom’s (RussianState Atomic Energy Corpora-tion) planned nuclear powerplant in Kaliningrad.

“We are in talks aboutpotential energy imports fromKaliningrad,” PGE CEO To-masz Zadroga told reporters ata press conference last week.“We are not interested in part-nership, this would be a purecommercial agreement.”

Rosatom plans to build twoone-gigawatt nuclear powerunits in Kaliningrad, the oblaston Poland’s northeastern bor-der. The first unit will be com-pleted by 2016, the second in2018.

The company says it is intalks with a number of utilities,including France’s EDF andItaly’s Enel, over the sale of astake in the planned powerblock.

“We are in talks with atleast three potential strategicinvestors for this plant, includ-ing EDF and Enel,” AlexeyKalinin, head of Rosatom’smarketing and business devel-

opment office, told Reuters.He added that Rosatom wouldretain a controlling stake inthe plant if it entered into apartnership.

The Russian company isalso interested in taking part inthe realization of Poland’s ownnuclear energy plans, whichPGE has been charged withoverseeing.

“The decision to bid inPoland has not been made yet,but obviously we are keepingan eye on the process. We area regional player that wants todevelop in the region,” MrKalinin said.

Poland plans to build two

nuclear power plants by 2030.The country is expected tolaunch a tender for a technolo-

gy supplier for one of the plantslater this year.

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Nuclear energy

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OS

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FT

Rosatom plans to build two nuclear plants in Kaliningrad

CO

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F T

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TeliaSonera has much to gain from a takeover of Polkomtel

MAY 30 – JUNE 5, 2011IINNDDUUSSTTRRYY NNEEWWSS6 www.wbj.pl

Daily executive digest

Sign up for a 2-week free-trial! www.polandam.pl German version: www.polenammorgen.pl

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Polish house

prices fall

Polish banks will lend

more than z∏.50 billion

this year to clients

looking to purchase real

estate, Rzeczpospolita

reports. That’s an

increase over past years,

even though the average

price of homes was down

across all major urban

centers in Q1. Those

drops were not

insignificant, Jacek

Furga, chairman of the

Real Estate Finance

Committee of the Polish

Bank Association, told

the newspaper. He

estimates the average

house price dropped by

between z∏.50 and z∏.100

per square meter.

Clothing firms

eye foreign

marketsPolish producers of

clothes and footwear are

looking to expand into

foreign markets including

Asia and the Middle East.

Companies like LPP,

(owner of the Reserved,

Cropp and House brands)

and Coccodrillo are

getting ready to open

shop in Shanghai,

Dziennik Gazeta Prawna

reports. ●

Telecoms

Deutsche Telekom

moots fixed-line

foray into PolandThe German firmwants to offerintegratedtelecommunicationspackages in order tobolster sales

German telecommunicationsgiant Deutsche Telekom isconsidering purchasing fixed-line or broadband assets inseveral European countries,including Poland.

The firm owns Polish tele-com Polska Telefonia Cyfrowa,which in turn controls mobilephone operator Era. The lat-ter is to be rebranded as T-Mobile this Sunday.

“Fixed-mobile convergenceis a precondition to be able toleverage the market and cer-tainly to serve the customerbest by offering fixed, broad-band, TV or IPTV,” RolandMahler, head of operations inEurope outside of Germany,said in an interview withBloomberg.

“In the integrated marketswe see the customers want

exactly that kind of full-fledged proposition.”

Deutsche Telekom wants toincrease profit margins toensure its European markets(outside Germany) return togrowth in 2013. Branching intothe fixed-line market mighthelp the company as cus-tomers are more likely to buyfully integrated packagesinclusive of mobile data plans,broadband and land lines.

Accomplishing this goal inPoland would require thetakeover of other Polish tele-coms, with potential candi-dates including Netia, Telefo-nia Dialog and Exatel.

Deutsche Telekom is cur-rently in talks to buy SlovakTelekom, a company in whichit already has a 51 percentstake.

The Polish, Czech, and Slo-vak holdings of DeutscheTelekom are leading a turn-around in Central Europe, asprices are starting to stabilizeor rise in some markets, MrMahler said.

TThhoommaass KKoollaassaa

Pharmaceuticals

VVaalleeaanntt ttaakkeess ccoonnttrrooll ooff JJeellffaa The purchase ofJelfa’s parent willincrease the firm’sreach in the CEEregion

Canadian pharmaceutical firmValeant Pharmaceuticals haspurchased Lithuania-basedSanitas in a deal worth €314million. The purchase, whichincludes control of Polish firmJelfa, increases Valeant’sfoothold in Central andEastern Europe.

“The acquisition of Sanitasshould provide Valeant withan exciting opportunity toexpand our European brandedgenerics product portfoliowith dermatology and hospitalinjectable compounds thathave a strong track record ofgrowth and profitability,”J Michael Pearson, chairmanand CEO of Valeant, said in astatement.

“With 80 percent of theSanitas portfolio consisting ofnon-reimbursed products withlimited exposure to govern-ment pricing pressures,Valeant will be in a key posi-tion to continue our expansioninto Central and EasternEurope,” he added.

Sanitas’ major sharehold-ers agreed to sell 87.2 percent

of the company’s outstandingshares to Valeant. The newmajority holders will submit amandatory tender offer for theremaining minority share.

Sanitas is a publicly tradedspecialty pharmaceutical pro-ducer which operates through-out Central and EasternEurope, primarily in Poland,Lithuania and Russia. Valeantintends to use its new asset toexpand in the latter market.

Annual revenues for Sanitasfor 2011 are expected to be€100 million. Ontario-basedValeant expects to acquire €50

million in debt as part of thedeal, which should be finalizedin Q4 2011.

Sanitas’ Polish branch, Jelfa,produces many of the 390 prod-ucts comprising Sanitas’ portfo-lio; its drugs are widely distrib-uted throughout Central andEastern Europe. The firm,which employs about 1,000 peo-ple, is located in Jelenia Góra,Lower Silesia. It mainly focuseson the therapeutic areas of der-matology, ophthalmology,metabolism, urology, and hos-pital injectables.

TThhoommaass KKoollaassaa

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TE

RS

TO

CK

Valeant’s acquisition of Sanitas will allow it to expand

its generics portfolio

MAY 30 – JUNE 5, 2011 OOPPIINNIIOONN www.wbj.pl 7

That it took two-and-a-halfyears in office before BarackObama made his way to War-

saw is seen by many Poles as a signthe US president isn’t interested intheir region (in general) or country(in particular).

They’re right about that. Andwrong as well. Keeping Poland safeand healthy is in the United States’interest, but its focus is on managinginstability in areas of the world whichcould fall to its enemies. Poland is notone of those areas.

Most Poles don’t look at it thatway. They have an emotional involve-ment in US-Polish relations and takeit personally when the relationshipisn’t at its best.

America is the land of dreams,where so many emigrants found newlives. President Woodrow Wilson isrevered for his hand in Poland’srebirth in 1918 after 123 years in

thrall to foreign powers. Ronald Rea-gan is lionized for his role in thedownfall of the “Evil Empire.”

In other words, America plays ahallowed role in Poland’s historicalidentity. And, since its return to truesovereignty in 1989, Poland haslooked to the US for direction. It hasalso, it must be said, done its best tobe a good partner.

Since the geopolitical shift cat-alyzed by the War on Terror, Polandhas been feeling neglected. “We havedone so much for America,” the com-plaint goes. “We sent soldiers to Iraq,to Afghanistan, we have been a stal-wart ally – and for what? We cannoteven get a visa to visit Disneyland.”This refrain was much heard in thePolish media in the days precedingMr Obama’s visit.

Another common theme was,“What will we get out of the visit?”This is an understandable reaction to

a visit by the US president, but onethat is perhaps over-optimistic.Although he might bear a passingresemblance to a certain beardedgentleman from the North Pole,Uncle Sam need not come laden withgifts.

Bilateral relations tend to be con-ducted on a quid-pro-quo basis, andrightly so. Poland should try to win itsconcessions from the US honestly (orthrough honest chicanery), ratherthan feeling entitled to them.

In search of a strong partnerWe know what Poland wants fromthe US: stronger economic ties and atoken military presence on Polishsoil. But what can Warsaw do forWashington?

Poland is not and will not be astrategic partner for the US in theforeseeable future. It is a medium-sized, still-developing European

country and no military powerhouse. But Poland’s status in Europe is

growing steadily, due largely to itseconomic prowess. The US has def-initely taken note, and this wasundoubtedly a factor in Obama’sdecision to visit Warsaw, ratherthan, say, Budapest. Another wasthe fact that Poland is poised toassume the presidency of the EUCouncil in July at a time when rela-tions with North Africa areextremely delicate.

These are assets which Poland canuse to leverage its relationship withWashington. It may be too small toplay a lynchpin role in American for-eign policy, but it can position itself asthe leader in the CEE region.

And, unsurprisingly, the Polishgovernment seems to be angling forjust that role. It will take a lot ofsmart diplomacy from Poland, as wellas concessions to other players in the

neighborhood (a lesson the govern-ment has yet to learn), but the coun-try is making progress.

Its EU Council presidency willprove a litmus test of its leadership

ability, and the US will be watching.If the presidency goes well, Americawill treat Poland with greater respectand willingness to parlay.

But if it looks anything like theCzech Republic’s disastrous 2009tenure at the head of the EU Coun-cil, expect Uncle Sam to look else-where for strong partners. Andexpect Poland to take it personally. ●

Hearing about Europe’s dismaythat the US is less attentivethan it used to be – as we did

during President Obama’s visit toEurope last week – is growing old.

President Obama has just com-pleted his ninth trip to Europe, morethan any other president at this pointin his term. And while Europe

rehashes all of the ways in which MrObama has disappointed – on issueslike Afghanistan, Guantanamo Bayand climate change (cover story, pp.12-14) – it ought to take a hard lookin the mirror. It might understandreasons why the US has concentratedelsewhere.

For starters, Henry Kissinger’squestion of “Who do I call if I want totalk to Europe?” still lacks a clearanswer nearly 40 years later. Thereare at least four European presi-dents: European Commission Presi-dent José Manuel Barroso, EU Par-liament President Jerzy Buzek, who-ever is leading the country holdingthe rotating Council of the EuropeanUnion presidency (currently Hun-

gary, and as of July 1, Poland) and thePresident of the European Council,Herman van Rompuy. There’s alsoEU foreign policy chief CatherineAshton, not that anyone in the USwould call her in an emergency.

The fact that it takes an entireparagraph to list unsuitable “counter-parts” for the America’s secretary ofstate speaks volumes. Europeannations trumpet this arrangement asa triumph of compromise betweennational and supranational interests.To Americans, it’s Eurocracy at itsworst.

Mutual disappointmentsWhen it comes to areas where the UShas “let Europe down,” European

nations ought to think hard abouttheir role as well. On Afghanistan,stronger engagement from Europemight very well have helped makebetter progress; on Guantanamo,European countries’ refusal to takein detainees is a big reason it remainsoperational. On climate change, theUS admittedly lags behind Europe,but it is not alone. Developing coun-tries need to get involved as well, andEurope could play a key role in help-ing the US pressure them to do so.

And there are plenty of areas inwhich Europe is seen as a disap-pointment by Americans. US-domi-nated NATO is responsible for thesecurity of the continent in every-thing but name. The US has been

asking Europe to make significantcontributions to its own defenses foryears – an issue which Polandadmirably wants to address on whenit takes over the presidency of theEU Council.

Europe could do better in freetrade as well: the state support thatEurope gives its businesses generallyoutweighs that seen by Americanfirms, creating unfair advantages.

None of this is to say that the UShasn’t made plenty of missteps inmaintaining what should be theworld’s most powerful alliance. Butinstead of whining about not gettingenough attention, Europe ought toconsider what it can do to strengthenthe alliance. ●

Strength is needed when dealing with the US

“Europe ought toconsider what it can doto strengthen thealliance”

“Poland can positionitself as the leader in

the CEE region”

Instead of complaining, Europe needs to look in the mirror

DEPUTY EDITORE. BLAKE BERRY(BBERRY@WBJ.PL)

ONLINE & NEWS EDITORGARETH PRICE(GPRICE@WBJ.PL)

INTERNATIONAL NEWS EDITOR

ALICE TRUDELLE(ATRUDELLE@WBJ.PL)

POLITICS EDITOR

REMI ADEKOYA(RADEKOYA@WBJ.PL)

REAL ESTATE EDITOR

ADAM ZDRODOWSKI(AZDRODOWSKI@WBJ.PL)

JOURNALIST

KATARZYNA PIASECKA

INTERN

THOMAS KOLASA

CONTRIBUTORSEWA BONIECKARICHARD WERNICKJOANNA WÓYCICKA

COLUMNISTSPAUL FOGOJUDITH GLINIECKI

ADAM NARCZEWSKIANDREW NAWROCKI

PRODUCTION MANAGERPIOTR WYSKOK

GRAPHIC DESIGNER¸UKASZ MAZUREK

CARTOONSPIOTR WYSKOK

MARKETING &SALES

AGNIESZKA BREJWO MARKETING &SALES DIRECTOR(ABREJWO@WBJ.PL)

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MAY 30 – JUNE 5, 20118 www.wbj.pl IINNTTEERRVVIIEEWW

Politics

TThhee aauuttuummnn eelleeccttiioonnssaanndd tthhee ddaayy aafftteerr

Ewa Boniecka: The antago-nism between Civic Platform[PO] and Law and Justice[PiS] – also called the “Pol-ish-Polish war” – not onlyrages at a political level, buthas also spread to the streets.Do you think that it will con-tinue, regardless of who winsthe autumn parliamentaryelections?Pawe∏ Spiewak: I think theemotions that were awoken bythe [April 10, 2010] catastro-phe in Smolensk, stemmingfrom already poor relationsbetween PO and PiS, will con-tinue to dramatize the existingdivisions among people. Andthe coming elections will serveas an additional cause of sharpconfrontation among politi-cians at the top.

Yet the real question con-cerns how Civic Platform willbuild its political strategy in asituation which is entirely dif-ferent from that of the 2007election. At that time CivicPlatform’s victory wasachieved to a great extent bynegating PiS and also due tothe fact that voters had hadenough of PiS’s rule and want-ed to push it out of power.

The fear of PiS is not asintense now as it was fouryears ago. And even moreimportant for PO is the fact

that it will be judged by voterson the results of its gover-nance.

There is also a new elementin this campaign. In my opin-ion PiS leader Jaros∏awKaczyƒski’s motive – apartfrom his desire to remove POfrom power – is personalvengeance against Prime Min-ister Donald Tusk. He wouldlike to find information anddocuments which would allowhim to accuse Prime MinisterTusk of culpability for thedeath of his brother, the for-mer president, in the Smolen-sk catastrophe, eliminatinghim from politics forever. Andthis is currently a peculiar andmeaningful element of thePolish-Polish war.

Do you think that having suchdeep divisions among the elec-torate differentiates Polandfrom other European coun-tries?That’s a relative question. Ithink that politics is generallylinked to defining a country’sidentity and there are culturaldivisions in France, in Finlandand in other European coun-tries, so I do not see Poland asbeing exceptional.

Yet if there is somethingparticular in Poland, it is therole which the Catholic

Church plays in politics and inaligning itself with one party –PiS. I would even say that forsome priests, not so much forbishops perhaps, Jaros∏awKaczyƒski is also a religiousleader. This view appeals topeople with very strong reli-gious beliefs and to their beliefthat their faith is badly treatedand that orthodox Catholicsare living in humiliation.

How do you view PiS politi-cians’ return to their old ideaof building a Fourth Republic,an idea which is associatedwith a rejection of the existingstate and a complete attackon its institutions?I was one of the people whointroduced that idea into pub-lic life at the beginning of thefirst decade of this century. Itwas justified by the weaknessof many state institutions,including the justice system,and the high level of politicalcorruption.

I will say this – nothing haschanged fundamentally overthe past five years. Yet the ideaof the Fourth Republic and [itsdiagnosis of the state’s ills],which are in many parts valid,is one thing. Another thingaltogether is the context whichwas given to that idea by PiSwhen the party was in power;certainly a return to the justicepolicy presented by then-Jus-tice Minister Zbigniew Ziobrois unacceptable.

But I think that the first

stage of Poland’s basic trans-formation has ended and thereis now a need to move forwardto resolve new problems andintroduce serious reforms inmany domains of our state sys-tem and public life. We shouldlook at more than political slo-gans, but also at the real polit-ical game that is going on. Thispolitical game indicates thatJaros∏aw Kaczyƒski would beready to form an alliance withSLD [the Democratic LeftAlliance] if the outcome of theelection was favorable for him.

And what do you think ofPiS’s hints that, if it won theelection, it could form a gov-ernment comprising profes-sionals backed by politiciansfrom certain parties? PiS hassuggested this might appeal toPoles dissatisfied with thepolitical class.Regardless of what Jaros∏awKaczyƒski and other PiS politi-cians are saying, who wouldreally believe that such a pro-fessional government would bepossible when it would in factbe driven from the back seat byPiS’s leader? Moreover, PiS isa weak party at the manage-ment level, so talking aboutestablishing a professional gov-ernment is meaningless.

I suppose that Kaczyƒski iscalculating that he need notnecessarily be prime minister,but he might see himself in therole of speaker of the Sejm if itgave him the key to power.

Rados∏aw Sikorski, chief ofPO’s election campaign, hassaid that his party could reactmore strongly to PiS abusesand accusations. If PO doesso, what effect do you think itwould have?I am not quite sure what Siko-rski means by this, just as it isunclear to me why Sikorski gotinvolved in the issue of defin-ing the Katyƒ massacre as

genocide. I believe that it wasgenocide, and Sikorski’s deal-ings with strictly legal nuanceswere unnecessary.

In general I think that POshould avoid sharp rhetoricagainst PiS and leave them torun freely with lit torches onKrakowskie PrzedmieÊcie stre-et, and allow that party tomanipulate the cross political-ly. [This type of behavior] cre-ates a lot of negative reactionsbecause Poles are tired of it.

For the first time in years,Polish foreign policy is also adomain of political conflictbetween PO and PiS. Doesthis worry you?I am worried about somethingelse, namely that Russia wantsto take advantage of the situa-

tion in Poland. If the Russians succeed in

weakening Tusk by claimingthat the blame for the Smolen-sk catastrophe lies on the sideof the Polish flight’s organizersand the government adminis-tration, Kaczyƒski would beable to say that even the Rus-sians are admitting [what he’ssaid all along]. Moscow wantsto show that Poland is a weak

link in the EU so that the Westwill perceive it that way.

And how, in your opinion, canTusk’s government respond?Only by publishing the reporton the causes of the Smolenskcatastrophe, which unfortu-nately is still delayed. I alsobelieve that the governmentshould not respond verbally toPiS’s accusations that Polandis a “Russian-German condo-minium” and to similar PiSdeclarations, in order to keepour foreign policy at a matter-of fact level.

Public opinion polls show adrop in support for PO, andcritics say the government hasnot introduced much-neededfinancial reforms and hasfailed to fulfill previous elec-

Political analyst and sociologist Pawe∏ Âpiewakoffers his perspective on the upcomingparliamentary elections and predictions for theoutcome

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Sectors analyzed:• Automotive products• Clothes• Cosmetics• Defense

To order contact: Krzysztof Wiliński: kwilinski@wbj.pl, (+48) 22 639-85-68, ext. 208208

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“PO should avoid sharp rhetoric againstPiS and leave them to run freely with lit

torches on Krakowskie PrzedmieÊcie”

MAY 30 – JUNE 5, 2011 IINNTTEERRVVIIEEWW www.wbj.pl 9

tion promises.It is obvious that PO has

disappointed many of its vot-ers. Despite negative eventslike the world financial crisis,huge floods in Poland and theSmolensk tragedy, the govern-ment was in a comfortablecondition to govern. It is truethat Poland maintained eco-nomic growth during theEuropean crisis, but I am cer-tain that the government coulddo better in modernizingPoland. I think that DonaldTusk has learned a lot duringhis term in government, how-ever he has only concentratedon small steps forward,neglecting the long-termvision of development.

And what do you think willdominate the upcoming elec-tion?I think that PiS will continue toexploit the Smolensk issue, butthe economy will be mostimportant. The rising prices ofgasoline and food are not onlya problem in Poland, but peo-ple mainly care about what isgoing on here and now. Peopleare also experiencing great dif-ficulties with the health-caresystem and constant obstaclesto their own economic activi-ties. They also name manyother government failures andthings it has neglected.

Moreover, there is a wide-spread negative feeling about

PO’s lack of guiding princi-ples, not so much in the ideo-logical context, but rather interms of political determina-tion to take risks in practice. Iam convinced that Civic Plat-form could have done muchmore than it did over the pastthree years.

What kind of impact will Pol-ish emigration have?Contrary to popular opinion,this is not only a job-seekingemigration. For many educat-ed people it is also a longingfor better career opportunitiesand a better quality of life, aswell as healthier relationsbetween people. Moreover,some Poles emigrate in thehope of creating better oppor-tunities for their children.

I think that the emigrationof educated Poles should bethe biggest concern for CivicPlatform, and the governmenthas not come up with a satis-factory answer to this problem.I live in the Lublin area and Ihave also seen the emigrationof poor, unemployed people,for whom leaving Poland is theonly chance to earn somemoney.

What kind of situation do youexpect to see in Poland on theday after the election?It could be difficult. The emo-tions surrounding the Polishreport on the Smolensk catas-

trophe prepared by JerzyMiller will not lower the socialtensions and will not reducethe hostility of Jaros∏awKaczyƒski and his partytowards Donald Tusk, Presi-dent Bronis∏aw Komorowskiand other PO politicians.

The composition of thenew parliament could be moredifficult than it is now for thewinning party, because itprobably will not have a signif-icant majority. Therefore acoalition government wouldhave to be created. If CivicPlatform wins – which is whatI expect – it might form acoalition not only with PSL[the Polish People’s Party], butalso SLD. And the leftistparty, led by Grzegorz Napier-alski, would demand promi-nent posts for its politicians,which could be a great burdenfor the future government andwould also foster dissatisfac-tion in the center-right POparty.

And what can Poles hope forafter the e1lection? I think that they can hope foran end to the Polish-Polishwar. In my opinion Poles areinclined to rely primarily onthemselves to improve theirown lives. In general they donot expect too much from thestate – they just don’t want itto interfere in their economicactivities and way of life. ●

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Political analyst Pawe∏ Âpiewak believes PO will win this autumn’s elections,

but may have a more difficult time governing thereafter

MAY 30 – JUNE 5, 201110 www.wbj.pl HHEEAALLTTHH CCAARREE IINN FFOOCCUUSS

Wittchen

revenues

rise 18%

Revenues of Wittchen, a

company selling luxury

leather accessories

whose prospectus is

pending approval by

Polish Financial

Supervision Authority,

increased in 2010 by

more than 18% to reach

z∏.66.5 million. The

company expects even

better results in the

current year, driven by

the growing demand for

luxury goods; it has

already reported

increasing sales in the

first months of 2011. This

year, the company plans

to open six new stores.

Broker report

pushes Asseco

shares up

During last Thursday’s

session on the WSE,

shares of Asseco,

Poland’s leading IT

company, rose by as

much as 3.3% to reach

z∏.49.8, in response to the

recent recommendation

by the DM BZ WBK

brokerage house. In a

report, experts from DM

BZ WBK valued Asseco

Poland shares at z∏.58.

They pointed out that at

the end of March, Asseco

Poland’s cash resources

accounted for more than

22% of the market

valuation of the company.

Analysts believe that if

Asseco Poland doesn’t

carry out any new

acquisitions in the near

future, then by the end of

the year it will have more

than z∏.1 billion in cash

available.

Poles lose

confidence in

financial

institutions

Out of all financial

institutions, banks enjoy

the highest level of trust

amongst the general

public in Poland,

according to a study by

market research firm

Gfk. On the opposite end

are financial advisories

and brokerage houses. “A

certain pattern can be

seen here – we trust

those institutions that we

know really well, hence

the banks got the best

results,” sociologist

Andrzej Rychard told

Rzeczpospolita.

Interestingly, confidence

in all financial

institutions is lower than

it was in September last

year. ●

Health care

PPrriivvaattee pprraaccttiiccee,, ppuubblliicc ccoonncceerrnnss

Andrew Kureth: You openedyour private hospital lastAugust. Has it been generat-ing the returns you had hopedfor?Anna Rulkiewicz: The hospitalhas met our expectations.Since the moment the firstprocedures were carried out atthe end of August 2010, thehospital has been systematical-ly serving an increasing num-ber of patients and extendingthe scope of services offered.During the first six months ofbusiness, an average of over 10procedures under general orlocal anaesthesia, under oper-ating or outpatient conditions,were carried out daily – thatamounts to approximately2,200 surgeries and almost2,000 consultations in the hos-pital clinic.

The new hospital currentlyoffers one-day surgery care.Do you plan to expand thisoffer to include more surger-ies that require longer hospi-tal stays?Services requiring a long-termhospital stay will be providedin our next hospital, which isgoing to be opened in twoyears’ time. It will be a multi-function hospital with approxi-mately 50-60 beds, located inthe Mokotów district of War-saw.

Why is it that private clinicsin Poland still don’t performsome of the more complicatedprocedures, that they stillhave to be done in public hos-pitals?The LUX MED Group, likeother private medical compa-nies that offer hospital servic-es, aims to shape its institu-tions’ services in a way thatallows them to complementthe services offered by publichospitals. There are institu-tions in Poland which have theperfect infrastructure and ateam of exceptional physiciansat their disposal. These facili-ties, owing to scientific andresearch support from thestate, are able to specialize inhighly complicated and inno-vative surgeries. This appliesto public clinical hospitals,among others.

It is for this reason that pri-vate hospitals are mainly insti-tutions with several functions,specialized in fields where thepublic sector needs the sup-port of the private sector.There is strong demand forsuch hospitals among patients.

Real competition betweenprivate and public units interms of full-service hospitalswill only become possible if achange is made to the system

which finances medical servic-es in Poland.

In your opinion, how isPoland’s private health-caremarket developing? How doyou see it developing in thenear future (12-18 months)?The market of private health-care will not develop asdynamically as it did a fewyears ago. We expect that therevenue dynamics, growingsince last year, will stabilize atthe level of 10 percent perannum over the coming years.

Changes to the Polishhealth-care system are appear-ing, but unfortunately we findsome of them alarming. Thebill on additional voluntaryhealth insurance, presented bythe Ministry of Health inMarch, is unacceptable forentities which have been oper-ating on the private medicalservices market for manyyears.

As a community, we sup-port equal rights for entitiesoperating on the health mar-ket in Poland. However, it isnecessary that all entities,regardless of their owner, beable to compete for contractson equal terms with publiclyfunded institutions. Thechance to obtain such con-tracts should depend on whatis most beneficial from thepoint of view of the patient.Equal treatment of both pub-lic and non-public entitieswould result in better avail-ability of medical services and– owing to the competition –would trigger continuousimprovement of the quality ofservices provided.

Do you have problems findingqualified doctors and nurses,considering many have left forWestern Europe since Polandjoined the EU?The situation varies, depend-ing on the region of the coun-try, specialization, location,etc. It should be kept in mindthat qualified doctors often goabroad for internships in orderto gain additional experienceand increase their skills. Over5,000 doctors work with theLUX MED Group, many join-ing after internships abroad.

What’s your view of the gov-ernment’s ongoing process of“commercializing” publichealth-care centers, especiallyin view of the recent legisla-tion which makes it easier forlocal governments to carry outthis process?In my view, this is a step in theright direction. It could, withina relatively short period, con-tribute to the healing of public

hospitals’ finances and, in thelong run, it constitutes achance to improve the effec-tiveness of the entire health-care system. However, inorder for the process to suc-ceed, the largest possible num-ber of hospitals should betransformed into companies.

The government has recentlyproposed a tax deduction onprivate health-care premiums,as well as allowing privatecompanies to finance health-care costs with social funds.Do you support this idea?For now it is only a bill, andthe proposed provisions on thetax deduction have been criti-cized by the Ministry ofFinance. Numerous communi-ties representing employers,insurers, trade unions andoccupational medicine servic-es have submitted a number ofremarks and objections to theproposed and quite controver-sial provisions.

This is certainly not thefinal version of the document.Insurance companies arefavored by it and other entities– including companies offeringsubscription medical pack-ages, which have been buildingtheir business as well as invest-ing in equipment and develop-ment for many years – are dis-criminated against. The pro-

posal of introducing per-sonal income tax deduc-tions for the purchase ofa health insurance policyor the possibility offinancing from a socialfund would apply only toinsurance policies; otheroptions for providingoneself with additionalmedical care would be omit-ted.

We support the develop-ment of the health insurancemarket, including hospitalinsurance directed at individu-als, but we would like to seethe whole market develop bymaking room for various kindsof entities to grow. In ouropinion, such diversity wouldbring benefits for patients.

Another amendment toPoland’s law on medical serv-ices will make it easier forhospitals to hire nurses ontemporary contracts. Nursesare against the move. Butwould it allow your businessto be more flexible?We do not expect that suchchanges would drasticallyaffect the private health-careindustry.

How has this year’s increasein VAT affected your busi-ness?The VAT changes have not

influenced the development ofour industry to a considerabledegree. Most services offeredby private medical institutionsare VAT free.

Recent surveys have shownthat criticism of the nationalhealth-care system is strongerin Poland than in many otherEuropean countries. Why doyou think that is?I would need to know exactlywhich surveys in order tocomment on the particularresults. I think that health-care services are the objectof complaints in many Euro-pean countries, not onlyPoland.

Demographic problemsdue to the aging of societiesor financial limitations arevery similar in many devel-oped countries. At the sametime, people have greatexpectations in the field ofhealth care because health isequally valuable, regardlessof nationality. ●

Anna Rulkiewicz, president of private health-care provider LUX MED Group, talks about thefactors shaping Poland’s health-care market andthe state of the public-private divide

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LUX MED Group president Anna Rulkiewicz

“It is necessary that allentities, regardless of their

owner, be able to compete forcontracts on equal terms with

publicly funded institutions”

Poles value

punctuality

More than half of

workers in Poland are

never late for work.

Poles are not only

extremely punctual, 42%

of them also believe that

being late is absolutely

unacceptable, according

to a poll conducted

recently by the

recruitment website

Praca.pl.

An exporters’

dream?

Economists predict that

the fiscal problems facing

Portugal, Ireland, Italy,

Greece and Spain could

paradoxically help Polish

exporters. The problems

troubled European Union

countries are facing

increase Polish exporters’

competitiveness and also

lower the value of the

z∏oty, which is beneficial

for exporters. “If it wasn’t

for the PIIGS countries the

z∏oty would be stronger,”

Piotr Kalisz, chief

economist at Bank Citi

Handlowy, told Gazeta

Wyborcza.

Corruption on

the rise

One of the effects of the

financial crisis is that

there is now more

corruption in business.

That’s the belief of one in

three workers in Poland,

and some 40% of

Europeans, who were

surveyed by Ernst and

Young. Almost 75% of

employees in Poland

believe that corrupt

practices are common in

their country’s

economy. ●

MAY 30 – JUNE 5, 2011 BBUUSSIINNEESSSS EENNVVIIRROONNMMEENNTT www.wbj.pl 11

Poland may cut 20,000

public sector jobsPolish Prime Minister DonaldTusk has reportedly implement-ed a policy known as “Plan B,”which will reduce public admin-istration employment to 2007levels. That could mean as manyas 20,000 people lose their jobs,Rzeczpospolita reported, citing aleaked document.

Mr Tusk would not need tointroduce any special laws toallow him to carry out theplan, which would be conclud-ed by the end of September ofthis year.

Instead of the governmentdictating exactly where thecuts should be made, MrTusk’s latest plan gives powerto the directors of individualdepartments to make decision

on who goes and who stays. Details for Plan B have just

been obtained by reporters,but the document was pre-pared in February 2011, short-ly after President Bronis∏awKomorowski turned to theConstitutional Court to freezethe implementation of a lawwhich would have seen publicadministration lay-offs ofaround 10 percent.

Poland had over 430,000public administration employ-ees last year. Estimates vary asto exactly how many jobs wouldhave been trimmed under the10-percent plan, but it appearsto have been roughly doublethe number the governmentnow wants to cut. GGPP

CEE IPO Summit

The WSE talks IPOs at summitBourse in the spotlightat summit

Opening the Central andEastern Europe IPO Summitlast week, Polish Prime MinisterDonald Tusk praised the War-saw Stock Exchange. Hedescribed the exchange as asymbol of Poland’s successfuleconomic transition.

The Warsaw bourse was thehost of the summit, a two-dayconference whose purpose wasto bring together CEE compa-nies considering public offer-ings and global investors seek-ing new opportunities. Theevent included discussion pan-els on the CEE region’s eco-nomic prospects and the WSE’s

role in it, as well as a number ofsector-specific panels. Therewere also a number of forumsdevoted to the various mechan-ics of the IPO process.

WSE president LudwikSobolewski was keen to stressthat, in terms of the volume ofnew IPOs, his exchange lagsbehind only its Chinese coun-terpart.

For her part, WarsawMayor Hanna Gronkiewicz-Waltz praised Warsaw as afinancial center, emphasizingthe cost of doing business andthe supply of highly skilledworkers as key advantages.

Pension fund ING OFE,asset manager East Capital,hedge fund Eton Park,

Ukrainian agricultural firmKernel and the Abu DhabiInvestment Authority were allhonored at a Gala accompan-ing the event.

On Friday, representativesof a number of companies gavepresentations, including severalfrom Ukraine, a country whichnow has seven companies listedin Warsaw. Among the firmspresent was Ukrnafta, Ukra-ine’s largest oil and natural gasextraction company. Earlierthis year media reports statedthat the crude fuel giant intend-ed to go public in London, butits presence at the CEE IPOSummit suggests it might beweighing its options.

DDaavviidd IInngghhaamm

Macroeconomics

Retail sales up, unemployment downBut what does thismean for inflation?

Positive April unemploymentand retail sales data suggestconsumer demand will contin-ue to grow in Poland. Analystssay this has added to the list ofarguments for a June interestrate hike, although one mem-ber of the rate-setting Mone-tary Policy Council (RPP) hascautioned against too muchtightening.

Unemployment came in at12.6 percent for April, 0.5 per-centage points lower than forthe previous month, accordingto data from Poland’s CentralStatistical Office (GUS). Thenumber of unemployed fell by90,000 to 2.04 million.

Retail sales in Poland,meanwhile, rose by an annual18.6 percent in April, nearlydouble the 9.4 percent

increase observed for March. Bank Zachodni WBK

wrote in a market report thatthe data “confirmed strength-ening consumer demand.” Itshould also be noted thoughthat the catastrophe inSmolensk and period ofnational mourning last Aprilsuppressed consumption.Thus this April’s retail salesgrowth was due in part to a lowbase effect.

Whatever the cause, BZWBK analysts posited that themacroeconomic data supportsboth an optimistic GDPgrowth forecast for Q2 and theexpectation that borrowingcosts will be increased in June.

Dovish sentimentRPP member El˝bieta Choj-na-Duch, however, expressedthe opinion that a slew of fur-ther interest-rate increases

could stifle economic growthwhile still failing to get to gripswith inflation. Poland hasalready raised rates threetimes this year.

“The dilemma the RPPneeds to face is whether tocontinue the tightening cycleand, if we do, when and atwhat level to end it, so thatwe don’t damage economicgrowth,” she told Bloomberg.

Ms Chojna-Duch addedthat unemployment is still high,meaning wage pressures willlikely remain relativelydepressed and therefore havelittle impact on inflationgrowth. It is the effect of highcommodity prices which hasdriven inflation in recentmonths, she said, adding thatthe phenomenon will soonfade.

The RPP’s decision onwhether it will end the “cur-

rent tightening cycle and shiftto a neutral monetary policystance” will be strongly influ-enced by the central bank’snext inflation projection, she

commented. April inflation stood at 4.5

percent y/y, well above thecentral bank’s 2.5 percent tar-get. TTKK,, GGPP

10

11

12

13

14

AprMarFebJanDec NovOctSeptAugJulyJuneMayApr2010 2011

Turning a corner?

Unemployment rate (in percentage), April 2010 to April 2011

Source: Central Statistical Office

MAY 30 – JUNE 5, 2011CCOOVVEERR SSTTOORRYY12

Bury

reportedly

violates anti-

corruption lawDeputy Treasury Minister

Jan Bury violated an anti-

corruption law by

becoming a shareholder

in a company earlier this

year, Rzeczpospolita

reported. Last Thursday,

he was interrogated by

officers of the Central

Anti-Corruption Bureau

(CBA). In January, Mr

Bury purchased 50

percent of all shares in a

Rzeszów-based firm, but

a 1997 anti-corruption

law forbids persons

performing public

functions from holding

more than 10 percent of a

commercial company or

partnership. Mr Bury

admitted that he had

made an “unintentional

mistake.”

Greece may

pose threat

to Poland’s

public finances

According to Finance

Minister Jacek

Rostowski, the only

threats to Poland’s public

finances are those from

outside, particularly the

situation in Greece. “The

Greek situation is

dangerous. We continue

to watch it along with all

other EU countries.

Appropriate steps will be

taken if necessary,” he

said last Thursday. Asked

about a safety cushion in

next year’s budget in

case the Greek crisis

deepens, the minister

assured that such

measures had been

provided for.

Poland’s

EU HQ

openedPM Donald Tusk has

opened the offices of the

Polish representation to

the EU in Brussels. The

facility has six above-

ground and two below-

ground floors with 7,000

sqm of usable office

space and 10,000 sqm of

total surface space,

reported Rzeczpospolita.

Around 200 people will

work at the offices. ●

www.wbj.pl

Polish-US relations

A tale of two allies

Poland, like many of its neigh-bors, has lamented what it per-ceives as the shift of Americandiplomacy from a Europe-cen-tric focus to one which is moreglobal in scope. The country,long an ardent supporter ofthe US, has reacted in part byaligning its interests more withthose of the European Union.

But President BarackObama’s trip to Warsaw lastweek seems to have bolsteredfaith in the trans-Atlanticfriendship. The US presidentarrived with a clear agendathat included support for

democracy in North Africa,defense in Europe and explo-ration of Poland’s shale gasreserves.

A troubled friendship?Mr Obama’s victory in the2008 presidential electionelicited a sense of hopefulnessin Europe, as evidenced by his2009 Nobel Peace Prize. Butthe Old Continent later “fellout of love with him becausehe couldn’t deliver onAfghanistan, on Guantanamo,and on climate change,” saidJan Techau, director of

Carnegie Europe, a thinktank. Europeans were alsoquick to realize that MrObama was much less Europe-minded than the other politi-cians in Washington, MrTechau explained.

Like others all over theworld, Poles had great expec-tations regarding his presiden-cy and are still waiting forgreat achievements, said Zbig-niew Kwiecieƒ, a historian atWarsaw University’s AmericanStudies Center. And like manyothers around the world, Poleshave been left disappointed.

As early as July 2009, 22Central and Eastern Euro-pean intellectuals and formerpolicy makers, includingPoland’s Lech Wa∏´sa, sent an

open letter to the Obamaadministration. They lament-ed, “Twenty years after the endof the Cold War … our regionis one part of the world thatAmericans have largelystopped worrying about.”

Perhaps Poland’s greatest

disappointment was the can-cellation of President GeorgeW. Bush’s plan for a missileshield to be stationed inPoland and the Czech Repub-lic. The United States addedinsult to injury by choosing the

anniversary of Russia’s 1939invasion of Poland as the day itannounced the missile shield’scancellation.

The arrival in May 2010 ofan unarmed training battery ofAmerican Patriot missiles,seen as an underwhelmingsymbolic gesture, did nothingto assuage Polish concern atthe “deterioration” of the Pol-ish-US relationship.

Still going strongBut has the relationship reallysuffered that much?

Perhaps not. On the eve ofMr Obama’s visit, nearly 80percent of Poles said theybelieved that his visit toPoland was important,although over half did notagree with the statement that“Poland shares a special rela-tionship with Washington,”according to a Homo Hominipoll conducted for PolishRadio. Homo Homini headMarcin Duma told PolishRadio that the results indicatePoles are not as “excited” bythe United States as they usedto be.

Nevertheless, the US hasmaintained close executive-level contact with Poland. VicePresident Joe Biden wasquickly dispatched to Polandand the Czech Republic afterthe Bush-era missile shieldwas canceled. And only theeruption of an Icelandic vol-cano prevented PresidentObama from attending latePresident Lech Kaczyƒski’sfuneral last April.

The American presidenthas also made eight visits toEurope so far, more than toany other continent. Indeed,this figure is higher than for any

other US president at this pointin the first term of the presi-dency, US Ambassador toPoland Lee Feinstein stressedrecently at a conference.

All experts contacted forthis article also insisted that

Alice Trudelle

Although doubts have crept into the trans-Atlantic friendship, President Obama’s visit toWarsaw offered a sign that the relationshipremains healthy

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Barack Obama was reciprocating Bronis∏aw Komorowski’s December 2010 Washington visit

“For almost 20 years, we have beenallies in every sense”

Investing in Poland 2011 is available now!

To order a print copy or CD-ROM version of the publication, e-mail kwilinski@valkea.com or call +48 (22) 639 85 67 ext. 208

We have also launched a new website for investors!For investment news and analysis, visit: www.investinginpoland.wbj.plpresents

MAY 30 – JUNE 5, 2011 CCOOVVEERR SSTTOORRYY www.wbj.pl 13

any strain caused by the previ-ous American disengagementin defense (and Poland’s dis-appointment, as documentedin the diplomatic cables pub-lished by Wikileaks) is a hic-cup in a strong and deep rela-tionship.

“For almost 20 years, wehave been allies in everysense,” noted Mr Kwiecieƒ.

Security concernsPoland remains deeply uneasyabout Russia, maintaining

that the Kremlin’s assertive-ness towards the post-Sovietspace requires the counterbal-ance of a continuing Ameri-can political and military pres-ence in Europe, but the UShas acknowledged those con-cerns. The projected station-ing of American troops serv-ing F-16 jets on a rotationalbasis in Poland from 2013, dis-cussed during Bronis∏awKomorowski’s visit to Wash-ington in December, shouldgo a long way toward improv-

ing Polish sentiment on secu-rity cooperation.

“I understand that this is apriority for Polish securitypoliticy,” said Mr Techau. “ForPoland this is obviously aninsurance policy withinNATO.”

The possible deploymentof SM-3 interceptors in Polandby 2018 as part of Washing-ton’s ballistic missile defenseplans was another importantpoint on the visit’s agenda.

“It is a popular belief all

over the world that if Ameri-can troops or military installa-tions are in a country, then itgives that country additionalsecurity guarantees,” com-mented Mr Kwiecieƒ. “[Con-firmation of] their presencehere is a message to the worldthat Poland is among countrieswhose security and defense isimportant to Americandefense policy.”

New frontiersIn fact, last weekend’s visithighlighted new areas for pos-sible cooperation in security.Poland is, proportional to itsGDP, one of Europe’s bigspenders on defense, and hasmade important contributionsto international military coali-tions in both Iraq andAfghanistan.

The country is now puttingits own experience on the frontline of the EU’s engagementin North Africa, particularly inLibya. Earlier this monthRados∏aw Sikorski became thefirst EU foreign minister totravel to Benghazi, where hemet the rebel leaders fightingMuammar Gaddafi.

“We know what it’s like tobe prisoners in our own land.We know about dismantlingdirty secret police structures …about setting up honest banks,about building the rule of lawfrom scratch,” Mr Sikorski saidin a speech given at HarvardUniversity earlier this year.

And Poland is eager to shareits experience. In North Africa,with diplomatic and trainingmissions such as the one inTunisia last month whichincluded Nobel Prize winnerLech Wa∏´sa, but also else-where, such as in neighboringBelarus.

Continued on p. 14 ➡

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Many Poles feel Obama has turned his back on them

“Twenty years after theend of the Cold War… our region is onepart of the world that

Americans have largelystopped worrying

about”

Poland is the only member ofthe 25-nation Schengen Areawhose citizens cannot travelto the United States withoutobtaining a visa beforehand,a fact which rankles.

The country has petitionedsuccessive US administrationsto allow it to enter the StateDepartment’s Visa WaiverProgram, but to no avail.Poland simply hasn’t met thecriterion of having a visa-refusal rate of below threepercent.

During Polish President

Bronis∏aw Komorowski’s De-cember visit to Washington,however, Barack Obamaexpressed a willingness to seethe issue resolved during hiscurrent term.

Although the issue isoften portrayed as a senti-mental one, it is also a verytangible problem for thebusiness community.

“Very frankly, the VisaWaiver Program is one of thechallenges we face,” saidEric Stewart, president ofthe US-Poland Business

Council, a Washington-basedbusiness lobby. The Councilhas been pressing Congressto pass legislation rectifyingthe situation quickly, heexplained.

“In a business context, wecontinue to be disappointedby the lack of Polish invest-ment and Polish companiesdoing business in the US, andwe are hopeful that ifCongress is able to pass atleast a waiver program, thiswill help alleviate some of thelogistical challenges for Pol-

ish companies who try to dobusiness in the US,” Mr Ste-wart said.

He is not alone in this sen-timent – Polish officials andbusinesspeople have longcomplained that Poland’sexclusion from the Visa Waiv-er Program hinders the twonations’ commercial ties. It isthus hoped that the measuressuggested by PresidentObama during his visit lastweek will be pursued andimplemented quickly.

AAlliiccee TTrruuddeellllee

TThhee vviissaa qquueessttiioonnUnchanged

Somewhat worse

Definitely worse

Difficult to say

Definitely better

Somewhat better

Do you think that Polish-American relations are better or worse under US President Barack Obama than during the tenure of former President George W. Bush?

55%

11% 1%

12%

2%

19%

What do Poles think?

Difficult to sayTotally unimportant

Somewhat unimportant

Somewhat important

Very important

How important do you think Barack Obama’s visit will be for Poland?

18%

50%

23%

3%6%

Source: CBOS

Shale gas reserves areenticing Americancompanies, butinexperience could costPoland some profit

Polish-American business inter-ests span a multitude of sectors,but the one on everyone’s lipslast week during the Americanpresident’s visit to Warsaw wasshale gas.

The topic is controversial.Environmental groups in theUnited States are up in arms,claiming – with compelling evi-dence in some cases – thatextraction has long-term impli-cations for both human healthand the environment. In

Europe, the French are in theprocess of deciding on an out-right ban on shale-gas drilling.

Fans of shale gasPoland, meanwhile, is enthusi-astic about the industry, withenergy security concerns out-weighing environmental wor-ries. The US Energy Informa-tion Administration recentlycaused a stir with an estimatethat 5.3 trillion cubic meters ofshale gas lie beneath Poland.These would be the largestreserves in Europe. If proventrue, that quantity of gas wouldput a quick end to the country’suncomfortable dependence onRussian gas.

Continued on p. 14 ➡

Polish-US business relations

TThhee ppoolliittiiccssooff sshhaallee ggaass

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MAY 30 – JUNE 5, 2011CCOOVVEERR SSTTOORRYY14 www.wbj.pl

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➡ Continued from p. 13Despite concerns about

opposition to shale gas appear-ing elsewhere in Europe,Poland’s nascent industry rep-resents a major opportunity forAmerican firms. US-basedgiants ExxonMobil, Chevron,ConocoPhillips and MarathonOil have already begun explor-ing for deposits and MarekKarabu∏a, vice president of Pol-ish gas monopolist PGNiG,recently suggested that Ameri-can investments could reach bil-lions of dollars.

Indeed, US companies areputting forward their own expe-rience as solid ground for astrong partnership with Poland,with support from professionalgroups, lobbying firms andindependent experts. In therun-up to President Obama’svisit, bodies such as the US-Poland Business Council, theAmerican Chamber of Com-merce in Poland and the PolishExploration and ProductionIndustry Organization Employ-ers’ Union (OPPPW) allexpressed great optimism aboutthe industry’s future.

Attractive risksAccording to Grzegorz Pytel,an energy expert at the SobieskiInstitute, a think tank, neitherenvironmental concerns nortechnical difficulties could pose

a serious threat to big oil andgas companies looking to devel-op their business.

“In the last few decades,these companies have lostaccess to many prospectiveareas. I think they love it whenwe talk about challenging ques-tions, concerns which are validbut can be overcome, becausethen companies point to thehigher risk they are taking,which means giving them betterfiscal terms,” said the expert.

And Polish fiscal termsregarding shale gas, at least itsexploration, are interestingindeed, he explained.

Among the main points thatwere likely to have been dis-cussed behind closed doors dur-ing Mr Obama’s meeting,guessed Mr Pytel, are negotia-tions to maintain good fiscalconditions for production: “notaxation regime, no hydrocar-bon tax, no royalties, no profitsharing.” Another is a guaran-tee for production rights, whichdon’t come automatically withexploration licenses in Poland.

The cost of inexperienceAsked about the principalchallenges facing the shale gasindustry in Poland, OPPPWpresident Michael Seymoursaid that his organization wascurrently “analyzing existingPolish oil and gas regulationsto ensure the stability neededfor the very major investmentwhich lies ahead.”

That American companiesare interested in investing inPoland is clear. The questionthen is, how well is Poland pre-pared to take advantage of theirinterest?

According to Mr Pytel, thePolish government’s lack ofexperience in dealing withskilled lobbyists like those thatrepresent American oil com-panies could be one obstacle.Another is that people in thegovernment, including Po-land’s chief geologist, haveexpressed doubts regarding theupper estimates of reserves,which is simply a bad businessstrategy, Mr Pytel argued.

“If the Polish government istelling Western companies thatthey don’t have that much gas,it means in practice that [thecompanies] are taking a higherrisk. I have no explanation as towhy many government officialsare undermining Poland’snegotiating position.”

AAlliiccee TTrruuddeellllee

TThhee ppoolliittiiccss ooff sshhaallee ggaassA tale of two allies➡ Continued from p. 13

The advantages of having aclose ally in these areas, whereAmericans tend to be personaenon grata, are not lost on theObama administration. NorthAfrica was one of the top itemson the US president’s agendalast Friday.

But experts warn thatalthough Poland’s transition isindeed an inspiring example, itmight not be easily exportable.“There are some general transi-tion lessons that [former com-munist] countries can provide,”said Mr Techau.

But in 1989 the countries ofthe CEE region desired democ-racy as well as NATO and EUmembership. They wanted tobecome liberal societies withopen markets and freeeconomies. The situation in theArab world today is far lessclear, Mr Techau explained.

Political capitalWhile the spotlight was firmlyon international matters duringPresident Obama’s visit, thereare also domestic implications.Both countries are gearing upfor elections – Poland holds par-liamentary elections this fall,while Obama will stand for re-election in 2012.

On the other side of theAtlantic, the 10 million-strongPolish community would havebeen watching the visit closely, apoint stressed by Poland’sAmbassador to the US, RobertKupiecki, at a recent conferenceorganized by the Heritage Foun-dation, a think tank. And fortheir part, Prime Minister Tuskand his Civic Platform govern-ment are expected to take fulladvantage of the possibilitiespresented by the top-level visit.

“They will present Poland’sspecial relations with the US as –to a great degree – their achieve-ment, sending the message tothe public that they are friendsof President Obama, and byextension that their foreign poli-cy is the right one,” said MrKwiecieƒ.

In his opinion, Europe stillhasn’t come close to replacingAmerica in Poland’s heart.

“Of course the possibility offinding jobs in the UK, Irelandand now in Germany couldchange the Polish perspective inthe long term, meaning that the‘land of promise’ will be seen inWestern Europe and not overthe Atlantic Ocean,” said MrKwiecieƒ.

“But,” he added, “thatprocess will take some time.” ●

Seekers of shale gas

Shale-gas concession hold-

ers in Poland as of May 1

COMPANY CONCESSIONS

Australia

Strzelecki Energia 1

Canada

Helland Investments 1

Joyce Investemtns 1

Maryani Investments 1

Talisman Energy 1

Hungary

DPV Service 5

Ireland

Liesa Energy 4

Gora Energy Resources 1

Oculis Energy 2

Vabush Energy 1

Italy

Miƒsk Energy Resources 3

Poland

PGNiG 13

Orlen Upstream 6

LOTOS Petrobaltic 7

Scotland

Composite Energy 1

UK

Lane Energy Poland 6

Lane Resources Poland 3

Cuadrilla Polska 2

US

Chevron 4

ExxonMobil 6

Marathon Oil 11

Indiana Investments 3

Saponis Investments 3

Source: Polish Ministry of Environment

“Shale gasrepresents a major

opportunity forAmerican firms”

*Country indicates where investor is seated

LLOOKKAALLEE IIMMMMOOBBIILLIIAAW 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 • MAY 30 – JUNE 5, 2011, LI 16/21

Rezydencja

Park almost

finished

Real estate investor

Mielno Holding – Firmus

Group is finishing

construction work on its

Rezydencja Park

apartments in Mielno,

Zachodniopomorskie

voivodship. The 12-unit

project, which is located

on the Baltic Sea shore,

will be turned over to new

tenants at the beginning of

summer. Rezydencja Park

is being built by Koszalin-

based AMB. Apartments

are priced at z∏.7,300 per

sqm and will be delivered

in turn-key standard.

Airport

makeover

Architecture-engineering

company PM Group has

prepared a master plan

for the expansion and

modernization of Gdaƒsk

Lech Wa∏´sa Airport. The

plan, which has been co-

funded by the EU, calls for

modifications to the

airport complex to be

introduced by 2035. The

main goal of the

expansion is to increase

the capacity of the airport

to allow for growth in

passenger numbers. ●

Sports infrastructure

National Stadium delivery date in questionConstruction woeshave officials andcontractors pointingfingers

A number of problems haverecently surfaced at the site ofPoland’s new National Stadi-um, delaying construction.One of the most serious is therevelation that stairs leadingto the upper-level stands havenot been built to withstand thelarge number of soccer fanswhich the facility is expectedto host during next summer’sEuro 2012 championship.

“These stairs really do con-stitute a danger,” Sports Min-ister Adam Giersz admitted inan interview with TVN24.

The worst-case scenario, interms of impact on the stadi-um’s delivery deadline, wouldbe demolition and reconstruc-

tion of the stairs. There maybe other options, but theauthorities are waiting on a

report by experts, expected tobe ready within the next fewdays or weeks, before making

a final decision.Another problem concerns

the National Stadium’s elec-

trical system. According to ananalysis by built-asset consul-tancy EC Harris, published bydaily Dziennik – Gazeta Praw-na, the stadium’s designerunderestimated its electricityconsumption and failed toinclude two substations andsix equipment rooms in thedesign.

Complications related tothe pitch itself have also aris-en. The National Sport Center(NCS) recently decided to usea modular turf system insteadof traditional grass, as origi-nally expected. The former isfive times more expensivethan the latter and installationof the system could postponedelivery of the National Stadi-um.

Taken together, these andother setbacks could delay the

Stadium troubles . . . . . . . . .15-16Galeria Mokotów sale . . . . . . . .15Construction growth . . . . . . . . .16Property-related stocks . . . . . .16JWC projects . . . . . . . . . . . . . . . .17Sawa Wilanów sales . . . . . . . . .17WAN builds in Kraków . . . . . . .17Inpro's Kwartał Kamienic . . . . .17Hilton signs for two . . . . . . . . . .18New Echo projects . . . . . . . . . .18

In this issue

1817

JW Construction is building

for GP Investments

Echo has secured building

permits for projects in two cities

Continued on p. 16 ➡

Globe Trade Centre sellsstake in Galeria MokotówWarsaw Stock Exchange-list-ed developer Globe TradeCenter (GTC) has signed apreliminary agreement with asubsidiary of Unibail Rodam-co for the sale of a 50 percentstake in the Galeria Mokotówshopping and entertainmentcenter in Warsaw.

The deal will give UnibailRodamco’s subsidiary, whichis already co-owner and man-ager of Galeria Mokotów,full ownership of the mall. Itwill also generate approxi-mately €110 million of freecash flow for GTC, which the

developer intends to spendon future developments.

Based on the transactionprice, the entire asset is worth€475 million.

“The value of the transac-tion demonstrates the highquality of GTC’s assets and itsability to generate profits upontheir disposal as outlined in itsstrategy,” Eli Alroy, chairmanof GTC’s supervisory board,said in a statement.

“The transaction is in linewith GTC’s strategy of rebal-ancing its property portfolio,including the sale of mature

assets and reinvesting in fur-ther expansion. As the realestate investment market con-tinues to improve, we proceedwith recycling of capital andplan new investments in thecommercial sector in Poland,”Mr Alroy said.

Located on ul. Wo∏oska inWarsaw’s Mokotów district, theGaleria Mokotów developmentcomprises 62,000 sqm of GLA,housing numerous retail outletsand points of service and amulti-screen movie theater. Itwas completed in 2000.

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MAY 30 – JUNE 5, 2011LLOOKKAALLEE IIMMMMOOBBIILLIIAA –– RREEAALL EESSTTAATTEE16 www.wbj.pl

Hala Kijowska

June opening

Waimea Holdings Limited,

the investor behind the

Centrum Dystrybucji

Korczowa Dolina

wholesale-retail project,

has announced the

opening date for the first

part of its investment.

Hala Kijowska, which is

currently undergoing

finishing touches, will

welcome its first tenants

on June 30. Hala

Kijowska’s tenant list

includes over 100 brands.

Apart from Hala

Kijowska, Centrum

Dystrybucji Korczowa

Dolina will also comprise

two other buildings: Hala

Lwowska and Hala

Doniecka.

ODIHR moves

into palace

The OSCE’s Office for

Democratic Institutions

and Human Rights has

moved into Mermaid

Properties’ M∏odziejowski

Palace, a historical

property located in

central Warsaw. The

entity has taken up over

4,500 sqm of space in the

6,850 sqm building, which

the developer bought in

2006 from Wydawnictwo

Naukowe PWN. ●

Security Closing % change 52-week 52-week % change Total Marketprice (week) low high (year) shares value

on May 26 (z∏.mln)

BUDIMEX 100.50 0.50 84.55 109.20 1.72 25,530,098 2,565.77

CELTIC 20.25 -3.57 17.00 60.55 N/A 34,068,252 689.88

DOMDEV 47.15 0.43 38.52 52.00 -5.70 24,560,222 1,158.01

ECHO 5.31 3.11 4.15 5.55 28.88 420,000,000 2,230.20

ELBUDOWA 157.90 0.64 149.00 188.40 -8.73 4,747,608 749.65

ENERGOPLD 3.99 0.00 3.57 4.31 -1.48 70,972,001 283.18

ERBUD 28.40 -4.38 28.20 61.00 -44.48 12,602,711 357.92

GANT 13.33 -0.37 12.98 23.38 -39.38 20,499,953 273.26

GTC 19.25 2.39 17.58 24.98 -19.79 219,372,990 4,222.93

HBPOLSKA 2.04 -5.56 2.04 3.90 -43.18 210,558,445 429.54

JWCONSTR 15.39 1.85 13.50 18.69 -3.45 54,073,280 832.19

LCCORP 1.52 1.33 1.41 1.72 4.11 447,558,311 680.29

MARVIPOL 8.40 12.15 7.40 16.50 -46.67 36,923,400 310.16

MIRBUD 3.94 -0.25 2.82 4.75 36.81 75,000,000 295.50

MOSTALWAR 32.50 -4.41 32.50 72.55 -51.49 20,000,000 650.00

MOSTALZAB 2.65 2.32 2.54 4.14 -31.70 149,130,538 395.20

ORCOGROUP 37.40 1.25 19.00 40.00 41.72 14,053,866 525.61

PBG 141.00 -0.70 135.80 252.00 -34.42 14,295,000 2,015.60

PLAZACNTR 4.75 -7.77 3.70 5.59 -4.62 292,647,720 1,390.08

POLAQUA 18.80 8.05 16.00 20.60 6.88 27,500,100 517.00

POLIMEXMS 3.10 0.32 2.91 4.84 -30.96 521,154,076 1,615.58

POLNORD 28.95 3.84 27.49 39.41 -21.76 23,798,439 688.96

RANKPROGR 12.71 -1.63 9.59 13.60 N/A 37,145,050 472.11

ROBYG 1.87 4.47 1.70 2.13 N/A 257,390,000 481.32

RONSON 1.45 0.00 1.36 1.81 -16.18 272,360,000 394.92

TRAKCJA 2.85 5.17 2.49 4.97 -33.10 232,105,480 661.50

ULMA 83.50 3.02 70.00 88.00 4.24 5,255,632 438.85

UNIBEP 6.89 5.03 6.38 10.30 -16.69 33,927,184 233.76

WARIMPEX 9.85 -1.10 7.64 10.89 22.06 54,000,000 531.90

ZUE 11.19 -3.70 10.80 15.14 N/A 22,000,000 246.18

Property-related stocks

National Stadium delivery date in questionstadium’s opening until 2012.

Who to blame?There is a disagreement as towho is at fault for these issues:the NCS, which is in charge ofthe stadium investment, or thegeneral contractor, a Polish-Austrian consortium compris-ing Alpine Bau, PBG andHydrobudowa. At stake areenormous penalties of up toz∏.1 million a day for the con-struction consortium, and thecareers of top officials at theNCS.

The consortium has blamed

the delays on faulty designswhich were themselves, it adds,delivered after considerabledelay. Thus the contractor hasstated that a failure to meet thecompletion deadline will not beits fault.

For its part, the investor hascountered these allegations,noting that the contractor’s sig-nature on the agreementmeans it tacitly accepted thedesigns.

The stadium contract isworth z∏.1.5 billion. Accordingto initial plans, the facility wasexpected to be completed onMay 16, 2011, although this

date was subsequently pushedback to June 30. According toestimates from EC Harris, itnow looks like the investmentwill not be completed beforeFebruary or March 2012.

Nor is the National Stadiumthe only Euro 2012 facility gen-erating concern. Gdaƒsk’sPGE Arena is also expected toopen late due to fears regard-ing fan safety. The stadium wasscheduled to host a Poland-France friendly on June 9, butthis match has now beenmoved to Legia Warsaw’snewly refurbished stadium.

KKaattaarrzzyynnaa PPiiaasseecckkaa

Construction in Poland to grow 11 percent in 2011The implementation ofimportant civil engineeringprojects will help the Polishconstruction industry grow11 percent in 2011, accordingto a report published byresearch company PMR. Ifthis is borne out, the figurewould mark the highest levelof annual growth in the con-struction sector since 2008.

Euro 2012 is the main cat-alyst behind the predictedgrowth, due to the realizationof sports and road infrastruc-ture-related projects aheadof next summer’s games.

Solid growth will also be

fueled by capital expenditureon water supply and sewageinfrastructure projects, inboth small and large urbanagglomerations, and by rail-way construction projects.Furthermore, the power sec-tor is expected to accelerate,with the number of invest-ments planned in this sectorhaving steadily grown recent-ly. However, these will beimplemented over extendedperiods of time and will startto yield substantial revenueonly after 2013.

The report’s authors alsopredict that prosperity for

the construction market in2011 will be followed by adownturn in the 2012-2013period. The impetus for this,according to PMR’s analysts,will be a fall in the number ofnew civil engineering proj-ects.

According to PMR, opti-mism for the residential andrailway construction sectorshas grown the most over thepast year, while the appeal ofroad construction, environ-mental construction andsports facility constructionhas declined.

KKaattaarrzzyynnaa PPiiaasseecckkaa

%

10

20

30

40

50

60

Specia

list

Retail

and se

rvice

Office

Sports

and rec

reation

Public

utility

buildin

g

Environ

mental p

rotectio

n

Indust

rial

Railroa

d Pow

er

Reside

ntial

Road

*Based on a survey of 111 respondents from large construction companies

Other

22

Warehou

se

04

6781010

17

23

40

59

To subscribe: visit www.wbj.pl/ren, e-mail subscribe@wbj.pl or call +48 22 639 85 68, ext. 201and sign up for free two-week no-obligation trial subscription

Warsaw Business Journal presents Real Estate weekly newsletter

• Learn the latest trends in Poland’s dynamic office, residential and retail sectors • Find out who’s who in Polish real estate• Know about the newest projects before they’re on the market • Keep up to date on the latest tenders and auctions

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➡ Continued from p. 11

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PGE Arena will not host the Poland-France international

Most attractive sectors of the Polish construction market*

in the next two years (in percentage)

Source: “Construction sector in Poland, H1 2011

– Development forecasts for 2011-2013” (PMR Publications)

MAY 30 – JUNE 5, 2011 LLOOKKAALLEE IIMMMMOOBBIILLIIAA –– RREEAALL EESSTTAATTEE www.wbj.pl 17

Sawa Apartments Wilanów haslaunched sales of apartmentsin a new residential complex inWarsaw. Called Sawa Wila-nów, the development will belocated south of the downtownarea, close to where Al.Wilanowska, Al. Sobieskiegoand Al. Rzeczpospolitej con-verge.

The project will compriseseven buildings, each standingfour storeys tall, with a total ofmore than 300 apartmentssized from 30-150 sqm; theaverage price amounts to

z∏.7,600 per sqm. A number ofcommercial units will also beincluded in the scheme.

“The investment’s locationon the Mokotów-Wilanów bor-der and its very well-structuredoffer of apartments are unde-niable assets of the invest-ment,” Remigiusz Antczak,president of Sawa ApartmentsWilanów’s management board,said in a statement.

Designed by the Warsaw-based Plus3 Architekci studio,the Sawa Wilanów project willbe built in three phases, the

first of which will compriseapproximately 110 units.W∏oc∏awek-based Budizol isserving as general contractoron the scheme.

Sawa Apartments Wila-nów’s shareholders are the(unnamed) owner of develop-er Sawa Apartments and BREProperty Partner, a companyfrom the BRE Bank capitalgroup. Sawa Apartments isknown for projects such asSadyba Park and SawaMokotów in Warsaw.

AAddaamm ZZddrrooddoowwsskkii

Inpro builds Kwarta∏ KamienicGdaƒsk-based developer In-pro is building a luxury apart-ment complex in the down-town area of its home city. Thecompany’s Kwarta∏ Kamienicproject, which will be styledafter a tenement house inorder to complement neigh-boring historical buildings, willcomprise a total of 90 unitssized from 30 to 99 sqm.

Scheduled for completionin Q3 2012, the Kwarta∏Kamienic scheme will featurethe use of high-quality finishingmaterials characteristic of thehistorical architecture of cen-tral Gdaƒsk. The apartments,over 25 percent of which havealready been sold, are pricedfrom z∏.13,000 per sqm.

“Kwarta∏ Kamienicbelongs to the luxury apart-

ment segment. The offer istargeted at a small group ofpotential buyers and itsunique historic location aswell as high standard and fin-ishing quality will decide itssuccess,” Piotr Stefaniak,president of Inpro’s manage-ment board, said in a state-ment.

Warsaw Stock Exchange-listed Inpro came into exis-tence in 1987 and is mainlypresent in the Tri-city market.The company builds high-endapartments and single-familyhouses; it is also present inthe commercial property sec-tor, in which it developsapart-hotels and office build-ings. Inpro also offers con-struction services.

AAddaamm ZZddrrooddoowwsskkii

WAN enters Kraków’s residential market

Sawa Wilanów

apartments sales launch

Warsaw-based developerWAN has launched construc-tion on the ApartamentyWielicka residential projectin Kraków. The schememarks the company’s firstventure into the Kraków mar-ket; over the past 15 yearsWAN has mostly been knownfor its housing, office andrecreation investments inWarsaw, Tri-city and the

Mazury lake district.“The former capital of

Poland is a very attractiveregion, especially when itcomes to residential invest-ments,” Lechos∏aw Mitu∏a,president of the managementboard of WAN, said in astatement. He added that thedeveloper sees huge poten-tial in Kraków due to strongdemand in the market.

Designed by the Oleksy &Polaczek studio, the Aparta-menty Wielicka project willcomprise five buildings witha total of 350 units. Apart-ments will be sized from 24to 122 sqm and priced fromz∏.5,700 per sqm. The projectis to be built in a single phasewhich is scheduled to becompleted in approximatelytwo years’ time.

In other news, WAN hasannounced the opening of itsONYX office building inWarsaw. The property islocated between ul. Pu∏awskaand ul. Taneczna and offers3,150 sqm of space. Thedevelopment was designedby the Baza Architekci studioand is being commercializedby Kancelaria Brochocki.

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The project will comprise seven buildings

Residential construction

JWC builds for GP InvestmentsAt the same time itsparent company hasbeen given the go-ahead on a project inBia∏o∏´ka

JW Construction (JWC), oneof Poland’s largest residentialdevelopers, has inked a con-tract to build a luxury residen-tial project in Warsaw forinvestor GP Investments, asubsidiary of Spain’s GrupoPrasa.

The contract is valued atz∏.80 million. A representativeof JWC confirmed that thecompany, which usually per-forms general contracting serv-ices for projects developed byits own holding, has turned tooutside projects as a means ofdiversifying its revenue streams.

“This is an important, pres-tigious project for us, via whichwe want to open a door torealizing similar investmentsfor external investors. Theproject already possesses alegally binding constructionpermit, so we are ready tolaunch work immediately,”Wojciech Rajchert, presidentof JW Construction, said in astatement.

Wronia 45 will be situatedon ul. Wronia, around threekilometers west of the city cen-

ter. The building will standeight storeys tall in one sectionand nine storeys in another. Itwill host over 250 apartments,primarily two- and three-roomunits, ranging in size from 40to 160 sqm.

The investment is sched-uled to be ready for tenants inQ2 2013.

Meanwhile, JW Construc-tion Holding, parent of JWC,has acquired a building per-mit for one of its own proj-ects, Osiedle Âwiatowida inWarsaw’s Bia∏o∏´ka district.

“Osiedle Âwiatowida is thesecond investment, afterZielona Dolina, which we’vestarted building in Bia∏o∏´karecently,” Tomasz Panaba˝ys,

deputy president of JW Con-struction Holding, said in astatement. He listed a num-ber of advantages the districthas, such as attractive landprices, green terrain and rap-idly expanding municipalinfrastructure.

The development compris-es three buildings of six tonine storeys, with a total of166 apartments sized from 30to 94 sqm. The average priceper sqm amounts to z∏.6,200.The ground floor of eachbuilding will be devoted toretail space.

Delivery of Osiedle Âwia-towida is scheduled forDecember 2012.

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MAY 30 – JUNE 5, 2011LLOOKKAALLEE IIMMMMOOBBIILLIIAA –– RREEAALL EESSTTAATTEE18 www.wbj.pl

Hampton by Hilton hotels to

open in Warsaw, Gdaƒsk

Hotel chain Hilton Worldwideand hotel operator Port-Hotelhave signed a pair of franchiseagreements concerning newHampton by Hilton hospitalityfacilities in Warsaw andGdaƒsk. The developmentswill be located near the cities’airports and are scheduled tobe commissioned at the begin-ning of 2013.

“The signing with Port-Hotel of two agreements con-cerning the opening of oureconomy brand hotels at theWarsaw and Gdaƒsk airports isanother step in the develop-ment of the chain in Poland,”Patrick Fitzgibbon, vice presi-

dent of development in Europe& Africa at Hilton Worldwide,said in a statement.

He added that Poland is astrategic market for the com-pany, which has recentlysigned a number of agree-ments concerning the openingin the country of new locationsfor its Hilton, DoubleTree byHilton, Hilton Garden Inn andHampton by Hilton brands.

The Hampton by HiltonWarsaw Airport and Hamptonby Hilton Gdaƒsk Airport willeach offer 116 rooms. The for-mer will be located at the inter-section of the capital’s Al. ̊ wir-ki i Wigury and ul. 17 Stycznia,

approximately 800 meters fromWarsaw Chopin Airport; thelatter will be built just oppositethe main terminal of GdaƒskLech Wal´sa Airport.

Hilton Worldwide plans tobuild more than 90 new hotelsin Europe in the near future. Anumber of these investmentswill be located in Poland. Pro-jects already in the pipelineinclude a Hilton Wroc∏aw, aDoubleTree by Hilton in ¸ódê,a Hilton Garden Inn Wroc∏aw,a Hilton Garden Inn KrakówAirport, a Hilton Garden InnRzeszów and a Hampton byHilton ÂwinoujÊcie.

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The Hilton Gdaƒsk opened last year

Commercial properties

EEcchhoo pprroojjeeccttss ggrreeeenn--lliitt

The company hassecured permits fornew projects in twocities

Kilece-based developer EchoInvestment has secured build-ing permits for an investmentin Wroc∏aw as well as for onein Szczecin.

The former, the AquariusBusiness House office project,will be located at the intersec-tion of ul. Swobodna and ul.Borowska. It will comprise two

seven-storey buildings with acombined 25,000 sqm ofleasable class-A area and 412parking spaces.

Development of AquariusBusiness House will be carriedout in two phases. Construc-tion on the first has alreadystarted and is expected to fin-ish in October 2012. Construc-tion on the second phase ofthe investment is scheduled tolaunch in November next yearand finish in February 2014.

Aquarius Business House

is not Echo Investment’s firstventure in the Wroc∏aw mar-ket. In 2007 the company com-pleted the Pasa˝ Grunwaldzkishopping and entertainmentcenter in that city; Echo plansto expand the project in thenear future. The firm is alsoinvolved in the developmentof a residential project onWroc∏aw’s ul. JednoÊci Naro-dowej.

In Szczecin, meanwhile,Echo Investment has obtaineda building permit for its OutletPark Szczecin retail project.The scheme, which will bedeveloped in two phases, willoffer a total GLA of approxi-mately 24,000 sqm in whichnearly 130 tenants will openshop. The first phase of thescheme is scheduled for com-pletion in Q1 2012.

Echo Investment and CBRichard Ellis are jointly com-mercializing Outlet ParkSzczecin, which is nearly 50 per-cent leased out.

“There are more negotia-tions pending, mostly with com-panies which are interested inoutlets offering large areas,”Tomasz Domoƒ, leasing man-ager at Echo Investment’sshopping center department,said in a statement.

AAddaamm ZZddrrooddoowwsskkii

CO

UR

TE

SY O

F E

CH

O I

NV

ES

TM

EN

T

Construction on Aquarius Business House is due to

finish in October 2012

MAY 30 – JUNE 5, 2011TTHHEE LLIISSTT20 www.wbj.pl

Construction and Real Estate

Warehouse Space OperatorsRanked by total rentable warehouse space www.bookoflists.pl

Notes: NR = Not Ranked, WND = Would Not Disclose. Research for the List was done inMay 2010. Number of employees and ownership structure are as of April 2010. All informa-tion pertains to the companies’ activities in Poland. Companies not responding to our surveyare not listed.

To the best of WBJ ’s knowledge, the information is accurate as of press time. While every effort is made to ensure accuracy and thoroughness, omissions and typo-graphical errors may occur. Corrections or additions to the List should be sent, on official letterhead, to Warsaw Business Journal, attn. Joanna Raszka, ul. Elblàska15/17, 01-747 Warsaw, via fax to (48-22) 639-8569, or via e-mail to wbjbol@wbj.pl. Copyright 2011, Valkea Media SA. The List may not be reprinted or reproducedin whole or in part without prior written permission of the publisher. Reprints are available.

Rank

Company nameAddressTel./FaxE-mailWeb page

Total rentablewarehousespace (sqm)

Rentable space breakdown (sqm):

Warehouses /Refrigerated space /Warehouse office

Number ofwarehouse

centersLocations Services offered

Contracts: Short-term /Long-term

Number ofemployees /Year founded

Ownership: Polish /Ownership: Foreign

Top local executive /

Title

1

ProLogisul. Z∏ota 59, 00-120 Warsaw22 218-3600/22 218-3601info-pl@prologis.comwww.prologis.com

2,117,1602,117,160

--

25

Gdaƒsk; Szczecin; Warsaw;Nadarzyn; B∏onie; Janki; Sochaczew;Teresin; Piotrków Trybunalski; Rawa

Mazowiecka; Poznaƒ; B´dzin;Sosnowiec; Dàbrowa Górnicza;

Chorzów; Wroc∏aw

Land selection and acquisition; built-to-suit; facility management;

development for lease

✓✓

571997

NoneWND - 100%

Ben BannatyneManaging Director for Central

and Eastern Europe

2

Panattoni Europe (Panattoni Poland Sp. z o.o.)ul. Emilii Plater 53, 00-113 Warsaw22 540-7171/22 540-7170plinfo@panattoni.comwww.panattonieurope.pl

1,200,000WNDWNDWND

25

O˝arów; B∏onie; Teresin; Pruszków;Garwolin; Gàdki; ˚erniki; Robakowo;Gdaƒsk; Bielany Wroc∏awskie; Nowa

WieÊ Wroc∏awska; Mys∏owice;Czeladê; Gliwice; Bielsko-Bia∏a;

Skawina; Stryków; ¸ódê; Gr´bocin

Class-A warehouse space for lease;build-to-suit; facility management;24h security; elastic conditions of

lease; project management

✓✓

502005

WNDRobert Dobrzycki

Managing Partner Central andEastern Europe

3

PointPark Properties Sp. z o.o.ul. Z∏ota 59, 00-120 Warsaw22 828-4289/22 222-3522info@pointparkproperties.comwww.pointparkproperties.com

500,831469,4289,50021,903

2 Gàdki near Poznaƒ; Mszczonów nearWarsaw

Facility management andadministration WND

WND2007

WNDArcapita Bank - WND%

John Craig MaguireManaging Director

4

SEGRO Poland Sp. z o.o.Pl. Andersa 5, 61-894 Poznaƒ61 850-5300/61 850-5301poland@SEGRO.comwww.SEGRO.pl

475,200435,7006,30033,200

5 Stryków; Gliwice; ¸ódê; Gdaƒsk;Nadarzyn near Warsaw

Facility construction andmanagement; sale

✓✓

282006

NoneSlough - 100%

Magdalena SzulcBusiness Unit Director

Central Europe

5

Grupa Rabenul. Poznaƒska 71, 62-023 Gàdki/ k. Poznania61 898-8000/61 898-8801poland.info@raben-group.comwww.raben-group.com

435,000395,00040,000

-37

Gàdki; Grodzisk Mazowiecki; Gliwice;Stryków; Lublin; Straszyn; Wroc∏aw;

Chorzów; Szczecin; Olsztyn;W∏oc∏awek; Kalisz; Legnica; Kraków;Rzeszów; Bia∏ystok; Starachowice;

Pi∏a; Opole; Cz´stochowa;Sosnowiec near Stryków; B∏onie

Full logistics service; warehousing;international and domestic

distribution; full logistics service forfresh products (Fresh Logistics); seaand air forwarding (Raben Sea & Air)

✓✓

45001991

NoneRaben Group - 100%

Ewald RabenCEO

6

FM Polska Sp. z o.o. (FM Logistic)ul. ¸ugowa 30, 96-320 Mszczonów46 857-0001/46 857-0005fmlogistics@fmlogistic.plwww.fmlogistic.com

393,000WNDWNDWND

8Mszczonów; Tomaszów Mazowiecki;Jarosty; Wolbórz; Chorzów; B∏onie;

Olszowa

Co-packing; co-manufacturing;handling; whole-vehicle transport in

Poland and international; cargotransport; cross-docking

✓✓

27701995

NoneFM Logistic - 100%

Yann BelgyGeneral Director

7

Europolis Real Estate Asset Management Sp. z o.o. ul. Sienna 39, 00-121 Warsaw22 850-3320/22 850-3321warsaw@europolis.comwww.europolis.com

261,690235,00014,85010,700

2 B∏onie; Piotrków Trybunalski Management WNDWND1992

WNDBart∏omiej Hofman

Managing Director

8

MLP Group SAul. 3. Maja 8, 05-800 Pruszków22 738-3010/22 738-3019info@mlp.plwww.mlp.pl

250,000WNDWNDWND

4 Pruszków; Tychy; Brwinów; Poznaƒ(Koninko)

Full-service warehouse parks;built-to-suit

-✓

111999

WNDMichael Shapiro

President

9

Fiege Sp. z o.o.ul. ¸ugowa 85, 96-320 Mszczonów46 857-6000/46 857-6010info@fiege.plwww.fiege.com

131,300126,2001,8003,300

6+3 (platforms)Mszczonów; Dàbrowa Górnicza;

Nowy Dwór Mazowiecki; Le˝ajsk;Poznaƒ; Wroc∏aw; Gdaƒsk

Logistics services: warehousing,packing, co-packaging, international

forwarding, customs services,international distribution, complete

supply chain management

-✓

4301997

NoneFiege Deutschland - 100%

Piotr KohmannGeneral Director

10

DSV Solutions Sp. z o.o.ul. Miƒska 63, 03-828 Warsaw22 244-7636/22 670-6802dpr@pl.dsv.comwww.dsv.com/pl

95,22185,500

-4,000

7 Warsaw; Kampinos; O∏tarzew;Sosnowiec; Poznaƒ; Gdaƒsk; ¸ódê

Warehousing; customs andpharmaceutical depot services;

custom agency services; co-packing

✓✓

3501995

NoneDSV - 100%

Krzysztof RedkowiakManaging Director

11

Menard Doswell & Co. Sp. z o.o.ul. Pu∏awska 303, 02-785 Warsaw22 854-1200/22 854-1201biuro@doswell.com.plwww.doswell.com.pl

90,90083,0003,2004,700

1 Czeladê Logistics center management WNDWND1992

NoneWND - 100%

Andrzej MogielnickiProxy

12

Platan Group Sp. z o.o.ul. Poleczki 23, 02-822 Warsaw22 545-0245/22 545-0246platangroup@platangroup.com.plwww.platangroup.com.pl

54,86131,288

-23,573

1 Warsaw

Technical management; operationalmanagement; marketing & PR;project management; financial

services

✓✓

491995

NoneAartsengel Tom Holding - 100%

Karolina KaimPresident

13

CN CORP Sp. z o.o. Sp.k. (dawniej Hammilton Centrum Sp. z o.o.)ul. Skarbowców 23A, 53-025 Wroc∏aw71 352-8142/71 352-8374centrum@hammilton.com.plwww.hammilton.com.pl

47,35043,500

-3,850

1 Wroc∏aw

24h security; production andspecialized warehouse space for

lease (archives, pharmacy); cleaningservice; flexible lease terms; strong

power connection available

✓✓

331996

WND - 100%None

Wies∏aw PyszczekProxy

14

PEKAES SAul. Spedycyjna 1, 05-870 B∏onie22 460-2626/22 460-2727 kontakt@pekaes.com.plwww.pekaes.com.pl

41,25341,253

--

8B∏onie; Czechowice-Dziedzice;

Gdaƒsk; ¸ódê; S∏ubice; Sosnowiec;Szczecin; Wroc∏aw

Warehouse logistics; cargo andwhole-vehicle transport service; sea

and air freight forwarding; freightforwarding for fairs and sportingevents; customs agency service

✓✓

6561958

KH Logistyka - 57%; ING OFE -11%; Bank Gospodarstwa

Krajowego - 5%; Own Shares -1%; Others - 25%

None

Jacek MachockiPresident

15

Fresh Logistics Sp. z o.o.ul. Poznaƒska 71, 62-023 Gàdki/ k. Poznania61 898-8400/61 898-8450freshlogistics@raben-group.comwww.freshlogistics.com.pl

40,000-

40,000-

6 Gàdki; Grodzisk Mazowiecki; Gliwice;Straszyn; Wroc∏aw; ¸om˝a

Full logistics services for freshproducts: warehousing, warehouse

service, additional warehouseservice, deliveries preparation,

international and domesticdistribution

✓✓

5202002

NoneRaben Group - 100%

Ewald RabenCEO

MAY 30 – JUNE 5, 2011 MMAARRKKEETTSS www.wbj.pl 21

SO

UR

CE

: W

SE

PLN-EUR

3.92

07

3.9

437

3.9

481

3.9

511

3

.968

5

3.9

785

20.0

5

23.0

5

24.0

5

25.0

5

26.0

5

27.0

53.8

4.2 PLN-USD

20.0

5

23.0

5

24.0

5

25.0

5

26.0

5

27.0

5

2.73

77

2.81

93

2

.802

4

2

.810

0

2

.803

3

2

.800

3

2.5

3.0 PLN-GBP

20.0

5

23.0

5

24.0

5

25.0

5

26.0

5

27.0

5

4.45

03

4.55

02

4.51

96

4.54

12

4.56

52

4.59

44

4

5 PLN-CHF

3.11

35

3.19

29

3.17

67

3.20

38

3.21

95

3.26

12

20.0

5

23.0

5

24.0

5

25.0

5

26.0

5

27.0

53.0

3.5 PLN-RUB

20.0

5

23.0

5

24.0

5

25.0

5

26.0

5

27.0

5

0.09

80

0

.099

2

0.0

987

0.0

987

0

.099

3

0

.099

4

0.09

0.10 PLN-100JPY

20.0

5

23.0

5

24.0

5

25.0

5

26.0

5

27.0

5

3.35

76

3.45

65

3

.424

6

3

.422

3

3

.429

8

3.45

67

3.0

3.5

currency rates

Uncertainty

reigns

Currency report

Volatility has returned tofinancial markets. Risk aver-sion increased this past weekon news from financiallychallenged countries on theeuro zone’s periphery. AfterGreece’s debt downgrade, ithas been suggested that theIMF might not transfer thefifth tranche of the financialaid it had promised. At thesame time, the socialists lostlocal elections in Spain, caus-ing concern that higher thanofficially reported local gov-ernment debt will soon berevealed.

Macroeconomic newsfrom both the euro zone andthe US was not able to sal-vage the situation and uncer-tainty about economic recov-ery is back. Increased riskaversion pushed theEUR/USD below $1.40, itslowest level since mid-March. Throughout the

week, however, the eurorecovered, mainly due toworse-than-expected USmacro data. The EUR/USDfinished the week strongly, at$1.42.

As investors becameincreasingly concerned withthe euro zone, they fledemerging markets, hurtingthe z∏oty in the process. Thelocal currency steadilydepreciated against the eurothroughout the week, fromz∏.3.91 all the way to z∏.3.97.The USD/PLN was morevolatile, reaching z∏.2.82, buton Friday the z∏oty regainedground to finish at z∏.2.79.

Nevertheless, the mostclosely watched currency thispast week was the Swissfranc, which appreciatedagainst the z∏oty to z∏.3.26.The last time the franc was atsuch a high level was mid-March of this year. ●

Adam Narczewski, X-TradeBrokers Dom Maklerski SA

SO

UR

CE

: N

BP

Major indices

Top 5 Closing % change (week) 52-week high 52-week lowIGROUP 0.34 70.00 0.95 0.18MIDAS 1.99 46.32 6.22 1.36BMPAG 6.80 24.54 6.80 3.06MOSTALEXP 1.36 22.52 2.09 1.07KREZUS 5.50 19.57 5.50 1.31

WIG 49,215.53 (May 26 closure)

Change for the week: 0.96% 52-week high: 50,371.74

Change year to May 26: 3.29% 52-week low: 39,109.37

Top 5 Closing % change (week) 52-week high 52-week lowTPSA 18.20 3.94 18.65 14.10CYFRPOLSAT 17.35 3.89 17.35 13.36PGNIG 4.35 3.08 4.35 3.29KGHM 186.40 2.98 198.40 88.50PKNORLEN 52.35 2.75 57.90 35.48

Bottom 5 Closing % change (week) 52-week high 52-week lowMEDIATEL 5.22 -11.53 10.60 5.22ABMSOLID 8.99 -11.43 25.98 8.99PTI 7.03 -10.90 12.00 6.51TIM 10.94 -9.88 15.40 10.29MEWA 0.65 -9.72 0.82 0.01

Bottom 5 Closing % change (week) 52-week high 52-week low

CEZ 148.30 -3.58 154.10 118.70

PKOBP 43.00 -2.07 46.81 36.15

TVN 16.66 -2.00 18.90 15.95

BRE 336.10 -1.03 349.00 222.50

GETIN 13.95 -0.85 15.29 9.35

WIG20 2,855.90 (May 26 closure)

Change for the week: 1.22% 52-week high: 2,932.62

Change year to May 26: 3.67% 52-week low: 2,270.13

mWIG40 2,922.23 (May 26 closure)

Change for the week: 0.70% 52-week high: 2,987.72

Change year to May 26: 4.08% 52-week low: 2,361.69

sWIG80 12,405.53 (May 26 closure)

Change for the week: 0.05% 52-week high: 12,932.00

Change year to May 26: 1.27% 52-week low: 10,980.45

NewConnect 56.82 (May 26 closure)

Change for the week: 0.41% 52-week high: 64.39

Change year to May 26: -10.39% 52-week low: 54.52

WIG-Banki 6,983.35 (May 26 closure)

Change for the week: -0.33% 52-week high: 7,387.49

Change year to May 26: 0.31% 52-week low: 5,751.39

DJIA12,395.00 (May 26 close)

-1.61% (for the week)

CHANGE: 7.06%

(year to May 26)

52-week high: 12,928.50

52-week low: 9,596.04

NASDAQ2,786.46 (May 26 close)

-1.30% (for the week)

CHANGE: 4.10%

(year to May 26)

52-week high: 2,887.75

52-week low: 2,061.14

S&P5001,326.24 (May 26 close)

-1.23% (for the week)

CHANGE: 5.46%

(year to May 26)

52-week high: 1,370.58

52-week low: 1,010.91

FTSE1005,877.52 (May 26 close)

-0.91% (for the week)

CHANGE: -0.38%

(year to May 26)

52-week high: 6,105.80

52-week low: 4,790.00

DAX7,111.73 (May 26 close)

-3.22% (for the week)

CHANGE: 1.98%

(year to May 26)

52-week high: 7,600.41

52-week low: 5,798.39

NIKKEI2259,557.32 (May 26 close)

-0.71% (for the week)

CHANGE: -7.68%

(year to May 26)

52-week high: 10,891.60

52-week low: 8,227.63

world stock indices

42,000

44,000

46,000

48,000

50,000

52,000

28.0

4

29.0

4

02.0

5

04.0

5

05.0

5

06.0

5

09.0

5

10.0

5

11.0

5

12.0

5

13.0

5

16.0

5

17.0

5

18.0

5

19.0

5

20.0

5

23.0

5

24.0

5

25.0

5

26.0

5 2,000

2,200

2,400

2,600

2,800

3,00028

.04

29.0

4

02.0

5

04.0

5

05.0

5

06.0

5

09.0

5

10.0

5

11.0

5

12.0

5

13.0

5

16.0

5

17.0

5

18.0

5

19.0

5

20.0

5

23.0

5

24.0

5

25.0

5

26.0

5

2,200

2,400

2,600

2,800

3,000

3,200

28.0

4

29.0

4

02.0

5

04.0

5

05.0

5

06.0

5

09.0

5

10.0

5

11.0

5

12.0

5

13.0

5

16.0

5

17.0

5

18.0

5

19.0

5

20.0

5

23.0

5

24.0

5

25.0

5

26.0

5

11,000

11,400

11,800

12,200

12,600

13,000

2 2 0 0 0 0 0 2 2 2 2 2

28.0

4

29.0

4

02.0

5

04.0

5

05.0

5

06.0

5

09.0

5

10.0

5

11.0

5

12.0

5

13.0

5

16.0

5

17.0

5

18.0

5

19.0

5

20.0

5

23.0

5

24.0

5

25.0

5

26.0

5

50

52

54

56

58

60

28.0

4

29.0

4

02.0

5

04.0

5

05.0

5

06.0

5

09.0

5

10.0

5

11.0

5

12.0

5

13.0

5

16.0

5

17.0

5

18.0

5

19.0

5

20.0

5

23.0

5

24.0

5

25.0

5

26.0

5 6,500

6,700

6,900

7,100

7,300

7,500

28.0

4

29.0

4

02.0

5

04.0

5

05.0

5

06.0

5

09.0

5

10.0

5

11.0

5

12.0

5

13.0

5

16.0

5

17.0

5

18.0

5

19.0

5

20.0

5

23.0

5

24.0

5

25.0

5

26.0

5

Other indices

WIG shows

resilience

Stocks report

The global macroeconomicpicture does not look awfullypromising, as the beginningof last week amply demon-strated.

Investors began the weekwith renewed concerns overGreece, as the country’s cred-itworthiness was downgradedfor a second time, while Italyand Belgium were warnedthat their ratings might alsoslip. Leading global indicesclosed sharply lower on Mon-day, which Warsaw’s overallWIG fell half a percent.

Despite a bleak start, therest of the week was better.Tuesday saw higher-than-expected IFO data fromEurope’s biggest economy,Germany, as well as better-than-forecast new US homesales.

The trend continuedthrough Thursday, this timewith good news coming from

within Poland. April retailsales were up 18 percent y/y,while unemployment fellunder 13 percent for the firsttime in 2011. The WIG andWIG20 both closed on Wed-nesday approximately onepercent higher, while Thurs-day brought modest gains of0.14 percent and 0.08 per-cent, respectively.

Among the biggest gain-ers of the week on theWIG20 were Ukrainian agri-cultural concern Kernel anddeveloper GTC. The latter,despite falling five percenton Monday, rebounded afternews spread that the devel-oper had sold its remainingstake of a prized asset –shopping center GaleriaMokotów. This week’simportant news will certainlycome from the US, with non-farm payroll figures due onFriday. ●

Andrew Nawrocki, Market analyst & trader, gowebtrade.com

MAY 30 – JUNE 5, 2011AARRTTSS && CCUULLTTUURREE22 www.wbj.pl

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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

Ursynalia 2011, WarsawStudent FestivalWarsaw University of LifeSciences campusul. Nowoursynowska 166June 1-3

Poland’s biggest open-airstudent event is scheduledfor the first three days of

June, with American numetal legends Korn amongthe headline acts at Ursyna-lia 2011. Other performersat the festival include AlterBridge (three-fourths ofAmerican post-grunge actCreed), German alt rockersGuano Apes and Canadian

pop punk band Simple Plan.As well as an eclectic rangeof music, this annual festivalalso includes numerous stu-dent-led projects that vistorscan get involved in. ●

For more information, log on towww.ursynalia.pl

Music festival

School of rock

Sala Kongresowa Pl. Defilad 1May 31, 8 pm

Georgia-born singer-song-writer Katie Melua comes toWarsaw this week, touring insupport of her fourth studioalbum, “The House.” Aswell as songs from her latestoffering, which was pro-duced by William Orbit

(producer of Madonna’s“Ray of Light”), the chart-topping artist will be per-forming some of her great-est hits, such as “Nine Mil-lion Bicycles” and “TheClosest Thing to Crazy.” ●

For more information log on towww.kongresowa.pl

Concert

Katie Melua’s “Bicycles”coming to Warsaw

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Men's DayTor wyÊcigów konnychS∏u˝ewiec ul. Pu∏awska 266 June 4-5, 10 am – 10 pm

Fast cars, motorbikes, mili-tary expos and an adult-onlyzone are all part of the

entertainment available forthis testosterone-fueled cel-ebration of all things manly.The organizers promise a“hands on” approach toeverything on show, withperformances by dance actsMafia Mike, Wet Fingers

and Monopol sure to warmup the crowd at this two-dayevent. Early sale tickets areavailable from the festivalwebsite for z∏.25. ●

For more information, log on towww.mensday.pl

Expo

A showcase of manliness

The International SacredMusic FestivalVarious locations, includingSt. John's CathedralJune 5-12

Held in 1991 to coincide with apapal visit, the first Interna-

tional Sacred Music Festivalaimed to bring music back toplaces of worship. The successof the first festival saw a one-off event become an annualcelebration.

This year’s performers

include Italian organ playerDonato Cuzzato and Frenchsoprano Fabrice di Falco. Allconcerts are free to attend. ●

For more information, log on towww.kapitula.org

Church music

Sounds of the sacred

16th Warsaw Tournamentfor the Saber of King Sigis-mund III VasaDom Kultury Âwitul. Wysockiego 11June 5, 11 am – 7 pm

Medieval jousting and sword

play are just some of theattractions at this familyfriendly event, which aims tocapture the flavor of an erawhen knights in dented armorruled the land. Apart from thetournament, the program also

includes demonstrations ofdimly remembered arts, amarket for olde-style handi-crafts, musical performancesand a children’s corner. ●For more information, log on towww.dkswit.com.pl

Medieval fair

A day of knights

WASA Swing FestivalSala Kongresowa Pl. Defilad 1June 5, 7 pm

A Polish-Swedish celebrationof swing music will take placeon June 5 as part of a celebra-tion for the National Day of

Sweden. Eighty-nine year-oldBelgian jazzman Toots Thiele-mans, a legendary harmoni-cist, will be the star of theshow. Viktoria Tolstoy, afamous Swedish singer anddescendent of Russian authorLeo Tolstoy, will also perform.

In addition, the concert willfeature lindy hop dancedemonstrations by the HarlemHot Shots. Tickets are pricedfrom z∏.50. ●

For more information, log on towww.kongresowa.pl

Swing festival

Swedish swingers

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MAY 30 – JUNE 5, 2011 LLAASSTT WWOORRDD www.wbj.pl 23

A glimpse into the drawer of Destiny

Tech Eye

Reaching absent-mindedly into adesk drawer last week, Techeye madea startling discovery. We had beenseeking a red pen (wonderful formaking tyrannical edits to uppityjournalists’ work), but it slippedbehind a notebook. That’s when ourquesting fingers encountered some-thing unexpected. Something softand pleasingly fuzzy.

It was our lunch from December13, 2010. Time, it seems, is no friendto ham-and-mozzarella sandwiches.

We had been convinced our bosshad swiped that lunch. He reeked ofcheese and meat that day, and hisface was twitching suspiciously(from the sublime deliciousness ofour food, we thought). But we laterrealized that he’s just naturallyblessed with a facial tick and sand-wich musk.

So the mystery of the missinglunch is solved, but the tragedy of ithas ravaged our once-harmoniousrelationship with the desk. Time tofind a new one, then.

Quest for a deskOne option is Duffy London’s“Transforming Coffee Table 2,Metal” (www.duffylondon.com),which we’ve affectionately dubbed“the TCT2M.” Granted, it’s proba-bly a poor candidate to replace ourdesk, but it’s kind of shiny and lookscool. That’s really all that matters.

As its name implies, the TCT2M is

a transforming coffeetable. And what does ittransform into? A littlemetal pterodactyl? Astatue of the Buddhafrom the Western Landof Ultimate Bliss? No,friends, sadly not. It justtransforms into a diningtable, albeit a shiny,cool-looking diningtable.

As a coffee table theTCT2M’s dimensionsare 90 x 70 x 35cm,while as a dining table itstands 160 x 70 x 75cm.In either form it costs£995 (expect eight to 10weeks for delivery).

A more likely replacement forour befouled furniture is the “Bugat-ti Grand Prix car inspired desk”from Luzzo Bespoke (www.luzzobe-spoke.com). Drawing on the designsof late 1920s, early 1930s Bugattirace cars, each of the 10 limited edi-tion desks is the product of over3,500 hours of computer design,machining, polishing, painting andassembly.

That’s only five hours longer thanit took Techeye to put together thelast chair we bought at Ikea.

Anyway, Luzzo’s desk has somefancy tricks up its sleeve, such asthe Mac incorporated into itsdesign. Push a button and the com-

puter disappears into the bowels ofthe desk (hopefully to reappear ifyou push the button again). There’salso a crank handle which regulatesheight and “self closing lockabledrawers.”

The only downer is the price tag:£150,000. On the upside, it’s not thekind of desk in which you’re likely tomisplace a sandwich.

Dressers and skewersIn the course of reading about desks,we came across a few other pieces ofintriguing furniture as well.

Take, for example, the “TrainingDresser” from designer Peter Bristol(www.peterbristol.net). This is a fun

little dresser for kids (or simple-minded adults like Techeye), wherethe shape of each drawer depicts itscontents. Or perhaps you could swapthe contents of the sock and under-wear drawers, confounding parentsand would-be sock thieves in a singlestroke.

The Training Dresser is madefrom maple plywood, with bothboys’ and girls’ versions available(the latter is pictured below). Expectto pay $1,500.

We’d also like to add an honorablemention to this hodge-podge of fancyfurniture: the “Magistral Cabinet” bysculptor and designer SebastianErrazuriz (www.meetsebastian.com).

This hedgehoggy item is more of anobjets d’art than a practical place tostow your vinyl chaps, so we’re tackingit on at the end.

On the inside, the MagistralCabinet comprises a pair of draw-ers and storage space. But thatmundane interior is encased by80,000 pointy bamboo skewerswhich threaten to warp your visionshould you stare too long. Pricing,meanwhile, is shrouded in mystery.But consider this: with all thoseskewers, keeping the MagistralCabinet clean must be a mightyannoying task.

Ideal present for Mother-in-lawDay? We think so. ●

Ever taken revenge on your boss – perhaps by rubbing his coffee mug around the rim of a toilet – only to discover he was innocent? Let us know: techeye@wbj.pl

To advertise in WBJ’s classifieds section, contactMs Agnieszka Brejwo, at

(+48) 222-577-526 or abrejwo@wbj.pl

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