VOLUME 17, NUMBER 3 • JANUARY 24-30, 2011 . z∏.12.50 (VAT 8% included) . ISSN 1233 7889 INDEX-RUCH-332-127

CCrraannkkyy ccaallllssYet another court wants Poland’s incumbenttelecom, TP, to pay off its former business partner 5

Since 1994 . Poland’s only business weekly in English

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PL

Winter’s billEvery year transportation suffersin the winter months, putting a big chill on the economy. What can be done? 12-13

SSmmoolleennsskk bbllaammee ggaammeeIn the wake of Russia’s report on theSmolensk crash, fingers are pointing in all directions 3

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The national bank hasraised interest rates due to inflation fears

M&A activity was way up inQ4 and there should beplenty of fusions this year

General crime and roadaccidents fell last year, butdrug-related offenses rose

News . . . . . . . . . . . . . . . . . . . . . . .2-4Industry News . . . . . . . . . . . . . . .5-6Business Environment . . . . . . . . . .7Interview . . . . . . . . . . . . . . . . . . . .8-9Opinion . . . . . . . . . . . . . . . . . . . . . .11Cover Story . . . . . . . . . . . . . . . .12-13Lokale Immobilia . . . . . . . . . . .15-18Markets . . . . . . . . . . . . . . . . . . . . . .19The List . . . . . . . . . . . . . . . . . . .20-21Entertainment . . . . . . . . . . . . . . . .22Last Word . . . . . . . . . . . . . . . . . . . .23

In this issue

REAL ESTATELokale Immobilia

• Matexi in the market• General contracting

alternatives• Ending “Family

on its Own”15-18

Five-star hotels inPoland 20-21

Palikot speaksThe black sheep ofPolish politics plots hissecond coming anddishes on Jaros∏awKaczyƒski’s “politicalsuicide”

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JANUARY 24-30, 2011NNEEWWSS2 www.wbj.pl

Defense minister under fireThe opposition Law andJustice (PiS) party filed amotion last week toinitiate a no-confidencevote against DefenseMinister Bogdan Klich.PiS argues that Mr Klichhas done his job poorly,and that under his watchfour airplane accidentshave occurred, in which atotal of 121 people died.The most significant ofthese was the April 10tragedy at Smolensk, inwhich 96 people died.

Parliamentaryelections on October 23?The national board of theruling Civic Platform (PO)has recommended thatparliamentary electionsscheduled for this year beheld on October 23,according to TVN24. Thedate must still be agreedto by President Bronis∏awKomorowski, who willformally announce theelection date.

Komorowskileads DavosdelegationPresident Bronis∏awKomorowski will lead thePolish delegation at theWorld Economic Forumtaking place fromJanuary 26-30 in Davos,Switzerland. ForeignMinister Rados∏awSikorski is expected toaccompany him. In DavosMr Komorowski isscheduled to meet withUkrainian PresidentViktor Yanukovych topromote the Euro 2012soccer championships,which the two nationswill co-host in July 2012.Sources in Russiandiplomacy also told thePolish Press Agency thatthere could be a meetingwith Russian PresidentDmitry Medvedev, whowill open this year’sforum.

Production and profit up in DecIndustrial production inDecember 2010 was11.5% higher than a yearbefore, according to theCentral Statistical Office(GUS). Meanwhile thehighest profits wererecorded by companies inthe computer, energy andoptical industries(30.5%), metal productsmanufactures (27%) andelectrical equipmentproducers (23.2%). ●

Agros Nova ..................................7

Aster ............................................7

Atelier3 Girtler & Girtler............15

Atrium European Real Estate

Limited ......................................16

Autoliv ........................................17

Aviva Commercial Union ..........18

AZO ............................................15

Azora Europe..............................15

Banco Espirito Santo Polska ......6

Bank Gospodarki ˚ywnoÊciowej 6

Cadbury Wedel ............................7

CBOS ............................................4

CEE Property Group ............16, 17

Celtic Property Developments ..15

Citibank ........................................6

Conject Holdings........................16

Cushman & Wakefield ........16, 18

Cyfrowy Polsat ............................7

Dalkia International ....................7

Dalkia Polska ..............................7

Danske Bank................................3

DAP architectural studio ..........18

Deutsche Telekom ......................5

Diageo ..........................................4

Dom Development ....................15

Dom Towarowy Bracia

Jab∏kowscy ................................15

DPTG ............................................5

DTZ ............................................16

Dutch Rabobank ..........................6

Elektrim........................................5

Emperia Holding ..........................7

Energa ..........................................7

Epstein........................................15

Eurocash ......................................7

France Telecom............................5

Gant Development ....................17

Globe Trade Center....................18

GN Store Nord ............................5

GTC Real Estate Holding ..........18

Guangxi Liugong Machinery........6

H&M ..........................................17

Hochtief Polska..........................15

Home Broker..............................16

Huta Stalowa Wola ......................6

IK Investment Partners Limited..7

Ikea ............................................17

Industry Funds Management ......7

ING Bank ......................................3

ING Nationale Nederlanden......18

Inpro ..........................................17

Inter Ikea Group Polska ............16

InterRegio ..................................13

Ipopema Securities....................18

Iron Mountain ............................18

Itaka..............................................3

ITR Investment Partners ............7

Kardan........................................18

KBC Securities ..........................18

Kimberly-Clark ..........................18

Knight Frank ..............................15

Kraft Foods ..................................7

Kristensen Group ......................17

LHI Leasing Polska....................15

Liberty Global ..............................7

Lotte Co........................................7

Lubelski W´giel Bogdanka..........7

Marks & Spencer ......................16

Matexi ........................................15

Matexi Polska ............................15

Mergermarket..............................7

Mid Europa Partners LLP ..........7

Morgan Stanley ..........................18

MPGA..........................................15

Multikino ....................................16

National Bank of Poland ............9

NBP ..............................................3

Neckermann ................................3

New World Resources ................7

Nordea Bank ................................3

Parkridge Retail Development ..17

PB UniMax ................................18

Pernod Ricard ..............................4

PGE ..............................................7

PGNiG ..........................................4

Philip Morris ..............................18

PKO Bank Polski..........................6

PKO Inwestycje ..........................17

PKP Intercity ..............................13

PKP ......................................13, 16

PM Group ..................................17

Polkomtel ................................5, 7

Polnord ......................................17

Polska Telefonia Cyfrowa ............5

PPL............................................ 16

PZU ..............................................3

RB Logistics ..............................18

Regional Transport ....................13

Sjaelso Poland ..........................17

Skidmore, Owings

& Merrill ....................................15

Studio Buffo ..............................22

Tauron ..........................................3

Tauron Polska Energia ................7

Teatr Dramatyczny ....................22

Telekomunikacja Polska..............5

Telewizja Polsat ..........................7

Telewizja Polska ..........................6

Tiltra Group ..................................7

TNS OBOP....................................2

Trakcja Polska..............................7

TVN ..............................................6

UBS ..............................................6

UniCredit CAIB Poland ..............18

Van Graaf....................................16

Vivendi ..........................................5

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

Warsaw Stock Exchange ......3, 18

World Bank ..................................7

Grzegorz Schetyna, the speak-er of the Sejm, last week pub-licly criticized Prime MinisterDonald T usk for what hedescribed as the government’slate reaction to the InterstateAviation Committee’s reporton the Smolensk air crash.Poland sees the report as one-sided.

The criticism has rekindledmedia speculation that a rift isgrowing between the two mostpowerful people in Civic Plat-form (PO), the majority partyin the ruling coalition.

Other voices in PO havequietly said similar things, not-ing that PM T usk had beenslow to return from his vaca-tion in Italy when the reportwas published.

The party’s frontbenchersquickly denounced Mr Schety-na’s remarks, though. Govern-ment spokesperson P awe∏

GraÊ remarked that MrSchetyna himself had notreacted to the report instanta-neously and had not called MrTusk to suggest he return toPoland.

The two have long beenconsidered one of the mostefficient tandems in Polish pol-itics. Their smooth workingrelation has even extended tothe soccer field, althoughmedia wags have wryly pointedout that Mr Schetyna typicallypasses the ball to his boss, whothen scores the goals.

The autumn 2009 gamblingscandal tested the Tusk-Schety-na relationship. In the wake ofthe affair, Mr Schetyna lost hisjob as interior minister,although he was later appoint-ed to his current position.More recently some sourcessuggest that tensions betweenthe two politicians may have

more to do with differing opin-ions on how the supervisoryboards of state-owned compa-nies should be filled.

According to reports, MrTusk, at the advice of econom-ic aide Jan Krzysztof Bielecki,would like a special committeeto nominate supervisory boardmembers in firms such asKGHM, Orlen, PGNiG, PKOBP and PGE. Currently thetreasury minister appoints can-didates who pass through aselection process.

Mr Schetyna is reportedlyno fan of Mr Bielecki, who isnot a member of PO, and isconcerned that a revampedselection process could dam-age the party’s reputation in anelection year. Other sourcessuggest that Mr Schetyna issimply concerned about losinginfluence.

AAddaamm ZZddrrooddoowwsskkii

z∏.485 million is how much thieves, using stolen IDs, tried to

withdraw from Polish banks in 2010

z∏.421 billion is how much Polish households put in their bank

accounts in 2010

57% of Poles feel that the government’s plan to change thepension system will have a negative impact on future

retirees, according to a TNS OBOP survey

z∏.5 billion in revenue was generated by second-hand clothes

shops last year

“[Civic Platform’s] gamehas already cost the livesof around 100 people”

Law and Justice (PiS) leader Jaros∏aw Kaczyƒski lays deaths at Civic Platform'sdoorstep; he counted the lives of Marek Rosiak, a PiS party aide shot in Octo-ber, and the 96 killed in the Smolensk crash.

Quote of the Week

Poland’s media – just how free?Media monitoring groups give conflicting accounts ofprogress made in Poland towards a greater freedomof the media. WB J.pl sits down with DominikaBychawska-Siniarska, coordinator of the Observatoryfor Media Freedom in Poland at the Helsinki Founda-tion for Human Rights, to get a clearer picture of thechallenges facing the Polish media.

On WBJ.pl

Numbers in the News

Company index

EAST

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JANUARY

21-30 INTERNATIONAL FOOD AND AGRICULTURE FAIREvent: International Green Week Berlin. The world’s

biggest fair for food, agriculture and horticul-ture. Poland is the official partner country in2011

25-26 ONLINE TRAVEL INDUSTRY CONFERENCEEvent: e-Travel Forum 2011 – an annual, interna-

tional conference dedicated to the issues ofonline sales of travel products.www.e-travelforum.pl/en/

JAN 31 – FEB 1 INVESTMENT CONFERENCEEvent: CEE Investment and PPP. Developing Sus-

tainable Relationships. Location: InterConti-nental Warszawa. www.easteurolink.co.uk/CEE-Investment-and-PPP

FEBRUARY

3 SHOPPING CENTRE FORUMEvent: Shopping Center Forum & Awards 2011, Hil-

ton Warsaw Hotel & Convention Centre.Organizer: BROG Media Biznesu. www.shoppingcenter.pl

15-18 FURNITURE FAIREvent: MEBLE POLSKA Furniture Fair. Poznan Inter-

national Fair.http://meble.mtp.pl/en/

January/FebruaryDATELINE

Donald Tusk and Grzegorz Schetyna IN THE SPOTLIGHT

Figures in focusPoland: building a good reputationAnnual change in construction output, June-November 2010

Source: Eurostat

JANUARY 24-30, 2011 NNEEWWSS www.wbj.pl 3

Poles returnfrom TunisiaThe last group of Polishtourists returned fromTunisia last week, afterbeing stranded by aviolent regime change.Approximately 300 Polishtourists were estimatedto have been vacationingthere when the troubleskicked off. For travelcompanies such asNeckermann and Itaka,travel to Tunisia will besuspended until newelections take place.

Cyberattackson emissionsregistersFollowing an order by theEuropean Commissionlast Wednesday, CO2emissions trading inEurope has beensuspended until January26. This was in responseto several cyberattacksaimed at CO2 emissionsregisters, among themPoland’s. Hackersmanaged to crack thesecurity codes to theregisters andsubsequently stole andsold emission rights.

John Paul II’sbeatification Over two million peopleare expected to attendthe beatificationceremony of the latePolish pope, John Paul II,in Rome on May 1.Preparations for theceremony began shortlyafter Pope Benedict XVIformally approved amiracle attributed to hislate predecessor. TheVatican credits him withthe cure of French nunMarie Simon-PierreNormand, who was saidto have had Parkinson’sDisease.

BlockbusterdébutantesdisappointThe three most high-profile marketdébutantes of 2010 –PZU, Tauron and the WSE– are not making muchmoney for investors. AsWarsaw BusinessJournal went to press,only shares in energygiant Tauron were worthmore than they werewhen they entered themarket. According toanalysts, a big discounton PZU stock – whichhas dropped from overz∏.400 to z∏.348 – is dueto the risk that theTreasury might sell off alarge stake in theinsurer. ●

Interest rates

Poland decides to raiserates on inflation fearsFurther hikes areforecast this year

Poland’s Monetary P olicyCouncil (RPP) raised its refer-ence interest rate by 25 basispoints to 3.75 percent lastweek. The move was widelyexpected.

Despite the recentstrengthening of the z∏oty, theexpansion of Poland’s econo-my has pushed inflation fig-ures above the central bank’starget.

“The inflation rise wasaccompanied by an increase ininflation expectations,” theRPP wrote in a report explain-ing its rate hike decision.

“The acceleration of eco-nomic growth in P oland sup-porting the improvement inthe labor market may lead to agradual rise in wage and infla-tionary pressure in the medi-um term,” the councilexplained.

The RPP also argued thatsurges in commodity prices,coupled with a general globalrecovery, were stoking infla-tionary pressures.

More hikes are expected tofollow.

“I wouldn’t interprettoday’s decision as a one-time

adjustment,” Mr Belka toldreporters at a conference afterthe hike was announced.

ING Bank said in a reportthat it expects a 25-bp hike inMarch followed by another 25bp in Q2 and again in Q3.Danske Bank, however,expects cumulative hikes overthe year to reach only 75 bp,while Nordea Bank forecasts125 bp.

Prior to last week’s deci-sion, many members of theRPP had publicly stated thatthe z∏oty needed to be sup-ported with rate hikes in antic-ipation of further weakeningof the euro later this year.NBP head Marek Belka hadsaid the z∏oty needed to be“helped on its way up.”

Although no mention wasmade of exchange rates in theRPP’s official rate-hike com-munique, the potential for thez∏oty to appreciate further wasmentioned at the conference.

“If this potential material-izes, it would constitute a mon-etary tightening factor. Thisseems to suggest a direct linkbetween PLN appreciationand the speed of tightening,”ING wrote.

AAnnddrreeww KKuurreetthh,, GGaarreetthh PPrriiccee

Polish-Belarusian relations

BBeellaarruuss ccrriieess ffoouullThe country hasaccused Poland ofrabble rousing

Belarus has accused P olandand Germany of organizingprotests following the coun-try’s December 19 presidentialelection in which AlexanderLukashenko secured a land-slide victory. The election wasroundly criticized in the Euro-pean press.

Following the election,which international observerscondemned, thousands of peo-ple took to the streets inMinsk. Over 600 people werejailed in a violent crackdownand while many have beenreleased, as many as 30 couldstill face serious prison sen-tences.

Sovetskaya Belarus – whoseeditor-in-chief was appointedby the government – arguedthat the protests were organ-ized by P olish and Germanspecial services, with Belaru-sian activists prepared at spe-cial training camps in Poland.

Both countries have deniedthe allegations, which the Pol-ish F oreign Ministry called“absurd.”

Sworn in last Friday for itsfourth term in a ceremonyboycotted by ambassadors

from W estern nations, MrLukashenko said he intendedto protect Belarus, “fromintrigues both external andinternal.”

Poland has led the way inreacting to post-electionrepression and violence inBelarus, unilaterally imposinga travel ban on Belarusianofficials and announcingmeasures to support civil soci-ety.

“The register is alreadyoperational,” Foreign Min-istry spokesperson MarcinBosacki commented.

For its part, the EuropeanUnion and its individual

members have chosen to waitto decide on a common posi-tion, expected on January 31.

But last week, MEPs in theEuropean Parliament and EUforeign policy chief CatherineAshton seemed to align theirposition with Poland’s.

They appealed for a firmand prompt reaction, includ-ing many of the steps taken byPoland.

“The events which fol-lowed the elections in Belaruson December 19 have comeas a shock to all of us,”declared Ms Ashton. “Thetime has come to act.”

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Smolensk catastrophe

WWaarr ooff wwoorrddssThe fallout from theRussian Smolenskreport has put the PMon the defensive

Speaking before parliamentlast week, Prime Minister Don-ald Tusk defended his govern-ment’s reaction to the Smolen-sk catastrophe. But emotionsran high and the occasiondegenerated into a war ofwords, with the PM beinglabeled everything from a trai-tor to a man bereft of honor.

Since the publication of theInterstate A viation Commis-sion’s (MAK) report on thecauses of last April’s planecrash, the atmosphere in P ol-ish politics has been tense.

The report lays the blamefor the tragedy squarely onpilot error – which, in principle,much of P oland seems toaccept – but there is almost nomention of the influence ofRussian air-traffic controllersand the squalid infrastructureof the Smolensk airport. Thisomission has generated muchcontroversy in P oland, as hasthe report’s claim that GeneralAndrzej B∏asik, the late chief ofair staff, had been in the cock-pit under the influence of alco-hol at the time of the crash.

Fateful conversationsIn response to the report,Poland’s investigative team,led by Interior Minister JerzyMiller, released partial recordsof the communicationbetween the Russian air-trafficcontrollers in Smolensk andthe Polish crew of the Tu-154.

The recording illustratesthat the control tower failedto react when the plane wentoff course and that the flightcrew was given inaccurateweather reports, leaving themunsure of how poor the condi-tions were in Smolensk. Andin one part of the recording,the Poles claim, the air-trafficcontrollers receive instruc-tions from Moscow to let theplane attempt to land despitevisibility being below the min-imum safety threshold.

The main oppositionparty, Law and Justice (PiS),wasted no time in lambastingthe PM for allowing theSmolensk investigation to goawry. It was he, they argued,that wasn’t strong enough inthe days following the acci-dent and he who allowed theRussians full control of theinvestigation.

Addressing parliament, thePM defended his govern-

ment’s response to theSmolensk catastrophe.

“We had to, in expressmode, take decisions whichwould give us the possibility ofwinning the truth about thecatastrophe. The second task... was how to deal with the sit-uation at the same time,takinginto account P olish nationalinterests, P olish security,Poland’s international statusand thus ... win the truth andwin peace, which is invaluablefor P oland because of theneighborhood in which P oleslive,” said Mr Tusk.

He said he and his govern-ment had been aware thatRussia was “a difficult part-ner,” but had decided “not tofocus on how bad a partner itis.” Instead, rather than pro-voking a confrontation, thegovernment had tried to maxi-mize its ability to documentthe “full truth” of the catastro-phe.

His speech in parliamentwas interrupted several timesby cries of “shame, shame” and“traitor, traitor.”

Heads to roll?The opposition’s response wasincendiary.

“Don’t scare us with war. In

politics it’s not the case that ifyou are tough and decided,especially in these kinds ofcases, you lose. No, you win.And we are not under thethreat of any war,” repliedJaros∏aw Kaczyƒski, head ofPiS and twin of late PresidentLech Kaczyƒski, who perishedin the crash.

“From the point of view ofEuropean regulations, MAKis an institution whose reportscan only be laughed at,” MrKaczyƒski said, adding that thePolish investigation had dis-

credited the MAK report “100percent.”

Mariusz Kamiƒski, anotherPiS politician castigating theprime minister, said, “ A mandishonored is worse thandead.”

The full version of Poland’sreport on the Smolensk catas-trophe should be ready inFebruary and there’s specula-tion that heads may roll afterits publication, including thatof Defense Minister BogdanKlich.

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Mr Tusk was called a “traitor” in parliament last week

According topreliminary figures,crime and roadaccidents fell last year

Poland was safer last year,both on the streets and alongthe sidewalks, according to fig-ures just released by the PolishNational Police. White-collarand drug-related incidentswere up slightly, but crime onthe whole was down.

Fewer car accidents alsotook place, with fewer killed orinjured on Poland’s roads.

The police have hailed thisas a major success. “Thebiggest challenge was main-taining the trend of reducingcrime,” Andrzej Matejuk,head of the P olish NationalPolice, told the press. This is,he said, because crime hasalready fallen significantlyover the last few years.

Overall reports of crime fellby three percent y/y in 2010, to964,614. That’s down over 25percent since 2004, the yearwhich saw the highest crime fig-ures in the last decade.

Meanwhile, police efficien-cy in finding perpetratorsamounted to 68.3 percent, up1.2 percent y/y. That rate –which is admittedly self-reported by the police – hasrisen steadily since 2000, whenit amounted to 47.8 percent.

A total of 702 murderswere reported last year inPoland, down 7.2 percent.Police efficiency in solving

murders amounted to 92.3percent, although 2010 was thethird consecutive year in whichthis measure fell slightly.

White-collar and drug-related crimes were up by 0.9and 2.8 percent, respectively.The police destroyed 13 nar-cotics labs and 61 marijuana“plantations,” and confiscated1.22 metric tons of narcotics.

In terms of road safety,

Poland bore witness to lesstragedy than in recent years.However, the figures quotedby the police are for the Jan-Nov period, and may yet rise.According to the availabledata, road accidents look to bedown significantly with around670 fewer fatalities and thou-sands fewer injured.

Happily for the police,falling crime rates and improved

road safety seem to be payingoff. According to a survey con-ducted last September byCBOS, 71 percent of thosepolled thought that Poland’s lawenforcement officials weredoing a good job. Other organi-zations were less well regarded,such as the Catholic Church (54percent approval), Senate (29percent) and Sejm (27 percent).

EE BBllaakkee BBeerrrryy

JANUARY 24-30, 2011NNEEWWSS4 www.wbj.pl

PGNiG tospend z∏.1 blnon researchPolish gas monopolistPGNiG intends to spendz∏.600 million to z∏.650million annually until2015 on researching gasand oil deposits inPoland, Dziennik GazetaPrawna reported.Another z∏.300 million toz∏.500 million will beinvested in researchabroad. The company’sboard also estimated itsplanned output for theyears ahead. PGNiG plansto tap around 4.4 billioncubic meters of naturalgas this year and 4.7billion cubic meters in2012.

Ballantine’sclaims top spotThe mighty JohnnieWalker Red brand is nolonger the top whiskey inPoland. The marketleader has been toppledby its largest rival,Pernod Ricard’sBallantine’s,Rzeczpospolita reported.According to the latestNielsen ratings,Ballantine’s Finest hastaken the top spot in themarket, with 23.3% ofmarket share for 2010,up from 14.2% a yearearlier. Johnnie WalkerRed has now dropped tothe number two spot inthe sector. Its parentfirm, Diageo, remains theworld’s largest producerof whiskey.

Cash to be phased out?The Finance Ministry isconsidering introducing athree-year plan that willsee the proportion ofelectronic paymentsincrease from currentlyapproximately 9% of alltransactions to just overhalf. The government isconcerned by the costsassociated with physicalcash. Dominika Duziak,from the Polish BankAssociation, who helpedthe government to drawup the plan, told TVP,“The purpose of all theseactions is to lower thecost of the circulation ofcash in the country.” ●

Hungary’scontroversial medialaw is under fire, butPoland isn’t sayingmuch

Criticism over the Hungariangovernment’s tightening gripon the media is casting an everlonger shadow over the coun-try’s presidency of the EUCouncil. Hungarian P rimeMinister Viktor Orbán’s pres-entation of his country’s pro-gram for the presidency lastweek in Strasbourg was dis-rupted by MEP s calling onhim to rapidly amend the con-tentious new law.

At stake is the creation of anew media council run by thegovernment’s allies, with thepower to impose high fines onmaterial judged “unbalanced,”or for violating ill-defined“human dignity.”

International media expertKarol Jakubowicz, in an analy-sis of the Hungarian legisla-tion commissioned by theOSCE, said that it “exceedswhat is justified and necessary

in a democratic society” and“is cause for very serious con-cern.”

Poland’s strategy so far hasbeen to wait for the EuropeanCommission’s official analysis.In a recent interview with theEU Observer web site, Miko-laj Dowgielewicz, secretary ofstate for European affairs inthe Ministry of F oreignAffairs, even seemed to sidewith Hungary against morevocal critics like F rance andthe United Kingdom.

“Mr Orbán … is a veryexperienced politician and I

have absolutely no doubtabout his commitment to theEuropean idea,” MrDowgielewicz said. “Some-times there is a bit of a conde-scending attitude in some ofthe member states,” he added.

Not much better inPoland?Experts agree that the relation-ship between democracy andthe media in the CEE, whichboth emerged in a period ofrapid and often chaotic reform,is poorly understood by olderEuropean democracies.

This is exactly why Poland,which also has a lot of work todo regarding freedom of themedia, should now be assistingthe EU to analyze the situa-tion in Hungary, argues theHelsinki F oundation forHuman Rights (HFHR).

According to R eporterswithout Borders’ annual PressFreedom Index, the situationin Poland is steadily improv-ing. But democracy andhuman-rights advocacy groupFreedom House’s Indepen-dent Media ranking suggeststhe contrary.

Dominika Bychawska-Si-niarska, coordinator of theObservatory for Media F ree-dom in Poland at HFHR, wasalso not optimistic.

Although its power is notas far-reaching as it is now inHungary, the P olish broad-casting authority can also finethe media for many unclearreasons, she explained. Andthe P olish P ress L aw, whichdates from 1984, still burdensjournalists and publishers withheavy criminal responsibility.

According to her, mediafreedom in P oland is not sig-nificantly greater than in Hun-gary.

“Poland has unofficiallyassigned itself a leadershiprole in the CEE, but we needto look at ourselves and ourown efforts towards democra-tizing our institutions,” shesaid.

AAlliiccee TTrruuddeellllee

To read WBJ’s full interviewwith Dominika Bychawska-Siniarska on the state of themedia in Poland, log on toWBJ.pl

Media freedom

HHuunnggaarryy mmaakkeess wwaavveess,, PPoollaanndd bbiitteess iittss ttoonngguuee

3,000

3,750

4,500

5,250

6,000

2010*200920082007200620052004200320022001

*Jan-Nov

Braking the good newsMotor deaths in Poland, 2001-2010

Source: Polish National Police

600

700

800

900

1,000

1,100

1,200

2010200920082007200620052004200320022001200070%

75%

80%

85%

90%

95%

100%

Murders reported % cases solved

Bloody good progressMurders reported and percentage of cases solved, 2000-2010

Source: Polish National Police

Crime in 2010

PPoolliiccee ssttaattss sshhooww ssaaffeettyy iinn nnuummbbeerrss

Mostly free?

Source: Reporters without BordersSource: Freedom House, Nations in Transit

Poland’s ranking in Reporters without Borders’

“Press Freedom Index” (1 is best)

2002 30

2003 33

2004 32

2005 55

2006 60

2007 57

2008 48

2009 37

2010 32

Poland’s score in Freedom House’s “Independent Media Score”

(1 represents the highest level of democratic progress and 7 the lowest)

2002 1.5

2003 1.75

2004 1.75

2005 1.5

2006 1.75

2007 2.25

2008 2.25

2009 2.0

2010 2.25

A UK court says TPshould use earningsfrom its Britishcontracts to pay theDanish firm

The UK’s High Court of Jus-tice has issued an order ofenforcement which couldforce Telekomunikacja Polska(TP) to use revenues from itsUK contracts to pay a substan-tial amount of money to Dan-ish headset and hearing-aidproducer GN Store Nord.

The Danish entity isattempting to recoup aroundDKK2.9 billion (€389 million)in earnings which an Austrianarbitration court ruled it wasowed by TP. The company hasalso initiated similar enforce-ment proceedings in Ger-many, Poland and the Nether-lands.

The two firms have beeninvolved in a long-running dis-pute concerning a fiber-opticnetwork built and partlyfinanced by DPTG, a sub-sidiary of GN Store Nord, forTP’s predecessor, Polish Post,Telegraph and T elephone. Inreturn for its investment,DPTG was due to receive rev-enues from the network, but itfell out with TP over how trafficvolumes should be calculated.

In September 2001, DPTGtook its claim for unpaidearnings to an arbitrationcourt in Vienna, which award-ed it DKK2 billion and a fur-ther DKK9 billion in unpaidinterest.

TP refused to pay up, argu-ing that the amount was out ofproportion to the value of theoriginal contract. TP thenappealed the decision, citingprocedural flaws.

“We regard the initiation

of enforcement proceedingsagainst TP in Great Britainby DPTG to be anotherunjustified attempt to putpressure on TP in regards toa dispute, which is the subjectof two court cases – in Polandand Austria,” TP wrote in astatement regarding DPTG’slatest attempts to enforce itsclaim.

It continued, “W e believethat attempts to exert pressureon TP ... are aimed at attackingthe good image of the compa-ny, since TP does not have anysubsidiaries in the UK whoseassets could be seized.”

According to the UK court,however, TP does have earn-ings from the country.

Meanwhile, GN Store Nordresponded in a statement, say-ing that TP “is adding furthercosts to themselves and theirshareholders, more specificallyaround half a million Danishkroner a day in interest.”

TP recently lost a secondruling for a further DKK2.4billion ( €322 million) inunpaid earnings.

The company has set asidez∏.2.2 billion ( €566 million) tocover its losses, a fact whichanalysts say could severelyimpact its earnings in comingquarters.

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Mobile telephony

DT takes over control of PTCThe transaction marksthe beginning of theend of Era

German telecoms groupDeutsche Telekom (DT) final-ized transactions with Poland’sElektrim and French conglom-erate Vivendi in mid-January.It has thus officially becomethe exclusive owner of mobiletelephony provider P olskaTelefonia Cyfrowa (PTC),which operates the Era brand.

DT transferred a total of€1.4 billion to the two groups,equivalent to 51 percent ofPTC’s total share capital. Thetransaction marked the officialend to a long-running legaldispute between the partiesover PTC’s share capital own-ership.

PTC’s new president,Miroslav Rakowski, said in aninterview with daily Parkietthat the agreement will allowPTC to make improvements toits mobile phone network, Era.

“Era will become similar toDeutsche T elekom’s otheroperators: agile, fast and pro-gressive,” he said.

In the process, certainstructural and brandingchanges will take place. F or

example, the color of Era’slogo will be changed from blueto magenta, which is not coin-cidentally the shade used byDT’s T-Mobile brand.

Asked by various mediaoutlets about rebranding Era,Mr Rakowski has noted that itis simply a matter of timebefore it happens, but that it isunlikely in Q1.

As for its immediate strat-egy, PTC is not planning tocut prices in its fight forclients, preferring to balancepricing and quality. The com-pany’s main selling point willbe the wide range of servicesit offers, which will includedigital, satellite, mobiletelephony and television.Improvements will also bemade to the company’s inter-national calling services.

The majority of P oland’smobile telephone market isnow under the control of threebig European players: FranceTelecom (the Orange brand),Deutsche Telekom (Era) andthe UK’s V odafone. The lat-ter, however, is looking to sellits stake in P oland’s largestmobile telecom, P olkomtel,operator of the Plus brand.

KKaattaarrzzyynnaa PPiiaasseecckkaa

JANUARY 24-30, 2011IINNDDUUSSTTRRYY NNEEWWSS6 www.wbj.pl

Sending e-invoicesOn January 1, 2011, new provisions for e-invoices came into force. Invoices may now besent in any electronic form (e.g. .doc, .pdf orother) provided that the form of e-invoice hasbeen accepted by the intended recipient andprovided that the origin and integrity of the e-invoice’s contents are ensured.

New rules for dividend payoutsOf the several changes recently made toPoland’s tax acts, it is worth mentioning thatsince January 1, new rules apply to the taxa-tion of dividends paid by foreign and domesticcompanies.

Further conditions must now be fulfilled inorder to qualify for tax exemption at source,namely: 1) the company which receives theincome must not benefit from total income taxexemption on its income, irrespective of theincome’s source; 2) ownership of shares

should generally result from an ownershiptitle. Moreover, parties paying the dividendmust receive a statement from the dividendrecipient which confirms that the entity inquestion fulfills the conditions for tax exemp-tion.

Trial period for young driversAt the beginning of January, parliamentadopted an act on drivers. Among otherthings, the act introduces an additional two-year trial period for persons who haveobtained a B-category driving licence for thefirst time. During that period young driverswill be subject to extensive supervision. Othercountries which have a trial period for youngdrivers include Norway, Finland, Sweden,France, Germany and the UK.

The act will become binding one year afterit is signed by the president and officiallyannounced.

Compiled by Peter Nielsen & Partners Law OfficeContact: Miros∏aw Stefanik, ms@pnplaw.pl

Construction privatization

Poland, China sign preliminarysale agreement for HSW divisionA Chinesemanufacturing firmhas been penciled into buy Huta StalowaWola’s civil equipmentassets

Chinese construction equip-ment manufacturer GuangxiLiugong Machinery last weeksigned a preliminary agree-ment to buy P olish state-owned manufacturer HutaStalowa W ola’s (HSW) civilequipment arm.

At a meeting held in Bei-jing last Tuesday, representa-tives of the two companiesagreed on the transactionprice, along with other impor-tant conditions, the T reasury

wrote in a statement. Theexact value of the deal was notrevealed, however.

The preliminary agree-ment has opened the door forfurther negotiations whichshould lead to a final agree-ment, HSW wrote on its web-site. This is expected to becompleted within the next fewmonths.

In a joint statement, HSWand LiuGong said that thesale would be in line with theChinese company’s aim ofestablishing a P olish produc-tion and distribution centerfrom which it could supplyequipment to Europe, NorthAmerica and the Common-wealth of Independent States.

LiuGong also intends to

increase the efficiency of thePolish assets.

The process of privatizingHSW’s civil equipment armbegan in January last year. InNovember, both partiessigned an agreement of intent.

HSW also has a militaryequipment production arm,although there are no plans toprivatize it.

Polish T reasury MinisterAleksander Grad attendedthe Beijing meeting, alongwith the director of the Chi-nese Ministry of Industry andInformation, Zhang Xiangmu,the chairman of the board ofdirectors at Liugong, W angXiaohua, and the president ofHSW, Krzysztof Trofniak.

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Citi and UBS chosen to coordinateBG˚ sale for Polish Treasury in 2011Poland’s T reasury Ministryrevealed last week that it haschosen investment banksUBS and Citibank to serve asglobal coordinators for thesale of its stake in BankGospodarki ˚ywnoÊciowej(BG˚).

Poland will float its 37 per-

cent stake in the bank at theend of H1 2011, the Treasurywrote in a statement.

PKO Bank P olski andBanco Espirito Santo P olskawill be the domestic bookrun-ners.

The T reasury made thedecision to float its stake in

BG˚ after failing to sell it toDutch R abobank, whichalready has a 59 percent stakein the Polish bank.

Analysts contacted byReuters valued BG˚’s initialpublic offering at around z∏.1billion.

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The Chinese hope to export Polish-made civil equipment

TVP to take on private broadcastersPublic television broadcasterTelewizja P olska (TVP) saidlast week that it wants toincrease its commercial activi-ties so that it can fund itsbroadcasting mission.

The strategy will put thebroadcaster in direct competi-tion with private stations in thefight for advertising.

TVP had already branchedout into commercial televisionin order to help it recoup its2009 losses, which amountedto over z∏.200 million. Thecompany had to make themove to save itself from goingunder, TVP board memberPawe∏ P aluch told daily PulsBiznesu.

But the change in directionalso seems to have struck achord with management,which now sees it as part of alonger term strategy.

Mr P aluch said that thecompany intends to continuebenefiting from advertising tomaintain a strong position inthe market, and promised thatthe additional revenues gener-ated will be invested in the com-pany’s broadcasting mission.

“The most expensive pro-grams allowed us to gain themost revenues,” Mr P aluchsaid.

There will be more docu-mentaries and feature filmsand more children’s program-ming. TVP will also presentTV theater premieres eachmonth. Nevertheless, prime-time slots will still be reservedfor high-profit broadcasts, suchas the popular comedy series“Ranczo.”

Television station TVP1 willtake a more national and pub-lic direction, while TVP2 is tobecome more easy-going andentertaining. The latter willcompete directly with privatebroadcaster TVN. TVP Info,meanwhile, has news broad-caster TVN24 in its sights.

MMCCOO,, GGPP

Food export

Green ambitions for Polish foodPoland’s participationto the 2011 Inter-national Green Weekwill have broad reper-cussions, officials say

The Ministry of Agricultureexpects 2011 to be crucial fortwo reasons: the Polish chair-manship of the EU Counciland P oland’s role as partnercountry of the 2011 Interna-tional Green W eek in Berlin(IGW).

The latter event, whichstarted last F riday and runsuntil Sunday, January 30, isdescribed by its organizers asthe world’s biggest fair forfood, agriculture and horticul-

ture. Half a million attendeesare expected this year andPoland – and by extension,Polish food – will be part of allpromotional activities.

For Polish agri-food prod-ucts, this represents a huge PRopportunity. “Our presence aspartner country will not onlygenerate interest for P olandand P olish high-quality foodamong the German public andin the German media, but willalso trigger a wide, interna-tional [ripple effect],” aspokesperson for the Agricul-ture Ministry predicted.

For the occasion, P olandhas prepared, “An invitation toa culinary journey of discovery

around Poland’s most attrac-tive regions, where people stilllive in harmony with natureand where they still prefer tra-ditional foods,” AgricultureMinister Marek Sawicki com-mented in regards to theevent.

Considering the domi-nance of EU countries in gen-eral and Germany in particu-lar as markets for Polish agri-food exports, a positiveresponse to P olish efforts atthis year’s fair could providesubstantial results forexporters.

According to the Agricul-ture Ministry’s most recent fig-ures, between January andSeptember 2010, the Euro-pean Union was the destina-tion for almost 80 percent(€7.62 billion) of the totalvalue of agri-food exports.Exports to Germany alonerepresented around a quarter(€2.1 billion) of the total valueof exports to the EU.

“Germany is our largesttrading partner,” said Mr Saw-icki. “Surely we have notreached the peak of our abili-ties and this mutually benefi-cial exchange can still growand develop,” he added.

AAlliiccee TTrruuddeellllee

Let them eat PolishBiggest export markets for Polish agri-food products,January-September 2010

Country Value (€ million)

Germany 2,111

United Kingdom 671

France 598.8

Italy 656

Netherlands 555

Russian Federation 548

EU27 7,620

Total 9,693

Source: Agriculture Ministry

TVP will compete with TVN for advertising revenue

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M&A in 2010

FFoouurrtthh--qquuaarrtteerr ffllooooddPoland saw healthyM&A activity last yearand the trend shouldcontinue in 2011

More M&A deals wereannounced in P oland in thelast quarter of 2010 than in anyother quarter in the last sixyears. The value of dealsannounced amounted to about$4.27 billion, a figure betteredonly by the mammoth $8.63billion seen in Q4 2006.

These data, provided byM&A intelligence providerMergermarket, illustrate thepace at which the Polish econ-omy picked up last year. Thefirst quarter saw modest activ-ity, with 28 deal announce-ments (collectively valued at$28 million), while the finalquarter had 48. Other marketsin the region, such as R ussia,Bulgaria or Ukraine, sawgreater fluctuation in both thenumber and value of deals in2010.

PGE’s planned $2.49 billionacquisition of Energa was thelargest tie-up contracted inPoland last year, although thecompetition watchdog’s stampof disapproval has called it intoquestion. The sale of nationalbroadcaster Telewizja Polsat todigital TV provider Cyfrowy

Polsat was the second largestdeal. One of the sellers, Polishmedia mogul Zygmunt Solorz-˚ak, is expected to reinvest hisprofit in an attempt to pur-chase mobile telecom operatorPolkomtel this year.

Poland’s upward M&Atrend is likely to remain posi-tive in 2011, according toMergermarket.

“Valuations are likely toremain on the high side, com-pared to other countries of theCEE region and to much ofWestern Europe, preciselybecause of the (relatively) easymoney offered by the capitalmarkets,” said Jurek Maczyns-ki, a financial journalist at

Mergermarket. He noted,however, that the IPO marketwill offer “stiff competition”for the traditional mergers andacquisitions business.

And which areas of theeconomy will see the mostconsolidation?

“Sectors that are expectedto see above-average activityinclude all things medical,telecoms, the food sector,FMCG retailers and wholesaledistributors. Judging by thesignals flowing from bankersand other sources, P olandcould also see an uptick inactivity in the packaging indus-try,” Mr Maczynski said.

EE BBllaakkee BBeerrrryy

Headline makersTop 10 M&A deals announced in Poland in 2010, by value (lapsed deals in bold)

Target Bidder Seller Deal value ($ millions)1. Energa* (84.19%) Polska Grupa Energetyczna Treasury Ministry of Poland 2,4912. Telewizja Polsat Cyfrowy Polsat Zygmunt Solorz-˚ak (private investor); 1,253

Heronim Ruta (private investor)3. Lubelski W´giel Bogdanka New World Resources – 1,1024. Aster Liberty Global Mid Europa Partners LLP 7925. Tauron Polska Energia (9.31%) Treasury Ministry of Poland – 5996. Emperia Holding Eurocash – 5627. Dalkia Polska (40%) Industry Funds Management Dalkia International 5208. Agros Nova (99%) IK Investment Partners Limited ITR Investment Partners 3009. Tiltra Group Trakcja Polska – 26810. Cadbury Wedel Lotte Co Kraft Foods 246

Source: Mergermarket

* Currently on hold

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201020092008200720062005

Buyers' marketsNumber of M&A deals valued at over $5 million, 2005-2010

Source: Mergermarket

World Bank: Polish exportsand consumption to growPoland and other developingcountries are responsible foralmost half of global growthin the post-recession period,says the World Bank. Accord-ing to its Global EconomicProspects 2011 report, theworld economy is currentlymoving from a post-crisisbounce-back phase of recov-ery to a period of slower, butstill solid, growth.

This year, the World Bankexpects the global economy toexpand by 3.3 percent and by3.6 percent in 2012. The globalgrowth rate in 2010 was 3.9percent.

Poland, on the otherhand, is expected to outper-form the worldwide average.

The W orld Bank predictsPoland will end 2011 with 4.1percent growth and 2012with 4.5 percent growth, as itbuilds off its strong perform-ance during the global eco-nomic crisis, when it was theonly EU country not to fallinto recession.

“Poland handled the crisisbetter than other Europeanand central Asian countries,and so its rebound is less dras-tic,” said Andrew Burns, sen-ior economist at the W orldBank at the unveiling of thereport.

The report’s authors areoptimistic about P oland’sfuture growth because theyexpect private consumption to

increase alongside export lev-els. They also point out thatPoland’s real effective ex-change rate is significantlybelow pre-crisis levels – down12.4 percent from August 2008to November 2010. This hasprovided a boost to P oland’sexport competitiveness.

Meanwhile, developingcountries in general are esti-mated to have grown by acombined seven percent in2010, with expectations for2011 and 2012 standing at 6.0and 6.1 percent, respectively.In comparison, high-incomecountries are expected to growat a rate of 2.4 and 2.7 percentin 2011 and 2012.

RReemmii AAddeekkooyyaa

JANUARY 24-30, 20118 www.wbj.pl IINNTTEERRVVIIEEWW

2011coming in february

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Politics

TThhee mmaann bbeehhiinndd tthhee MMoovveemmeennttJanusz Palikot, one ofPoland’s mostcolorful andcontroversialpoliticians, talks withWBJ about hispolitical ambitions

Ewa Boniecka: How do youreact to other politicians, themajority of commentatorsand the findings of opinionpolls, which say that yourparty, Movement of Support,has no chance to become ameaningful force in politics?Janusz P alikot: I think thatthis is the casting of a spellover reality, pushing away thereal problems which I ambringing to light. They try tosay that whatever I do doesnot exist, because the estab-lishment wants to evade myefforts to bring new quality toPolish politics. All thosepoliticians and right-wingcommentators believe that ifthey keep repeating over andover that I do not have achance, then I will not haveone.

But [the situation] is other-wise and the opinion polls arewrong, as they were whenthey gave PSL [the P olish

People’s Party] little chance inthe local elections – the partyobtained nearly 15 percent ofthe vote and overtook SLD[the Democratic L eftAlliance]. So I am certain thatmy party will succeed andenter parliament in this year’selections.

You are a well-recognizedpolitical figure, yet one seenas highly controversial andeccentric due to your clown-ing around during your mem-bership in Civic Platform[PO]. So how will you buildthe new party on your own?I strongly protest against say-ing that I am on my own. TheMovement of Supportinvolves 10,000 people – theywill form my party. I havetraveled across Poland, meet-ing and discussing with a lotof people in large and tinyplaces, and I am building theparty from the bottom up andnot by making a new politicalpuzzle from the top. I do notsee any sense in gatheringtogether, in this new party,the same faces who haveplayed around in politics for20 years, who are used up andnot fit to implement changesin the country.

We are an anti-establish-ment party with new people,and I treat the Movement ofSupport as a gathering of citi-zens who want to break upPoland’s frozen politics. Imeet huge groups of peoplewho are dissatisfied with thepresent political and socialsituation in the country andfeel that they are not repre-

sented at all in parliamentand political life. My Move-ment already has infrastruc-ture in a few dozen cities andin February there will be elec-tions in more than 40 of ourelectoral constituencies. Laterthere will be a party conven-tion under my leadership andthe election of an executiveboard.

How would you characterizethe Movement of Support,ideologically speaking?The Movement is of liberal-leftist orientation and if I had

to name a role model for myleadership I would name TonyBlair in Britain, who duringhis time as leader shaped theLabor P arty as a modernparty of the left with strongelements of economic liberal-ism.

The Movement of Supportwill link leftist views on ethi-cal matters like in vitro fertil-

ization, abortion, the protec-tion of sexual minorities andwomen’s rights with strongsupport for a liberal economywith all its consequences, suchas the introduction of a flatrate for corporate, personaland value-added tax.

The left’s ethical postulatesare proclaimed by SLD and aliberal economy is the corner-stone of PO’s program – so isthere anything new aboutyour party’s ideology?What’s new is my will tochange the status quo in

Poland in all domains: policy,economy, education, attitudetowards the army, and rela-tions between the state andthe Church. And to proceedwith this without politicalhypocrisy.

While leftist postulateshave always been proclaimedby SLD, they were not real-ized when that party was inpower. In 2001, SLD won anelection promising the liqui-dation of the Church AssetsCommission [ a controversialcommission charged withrecovering lost Church property– ed. ] and the withdrawal ofreligion from school, yet it didnothing, so they are not credi-ble.

And Civic Platform andPrime Minister Tusk have dis-appointed me and many otherpeople by abandoning politi-cal ambition and lacking thewill to make changes in thecountry. His talk of warmwater in the faucet [ ametaphor for politics aimed atmaintaining the status quo –ed.] is not a political programfor one of the biggest Euro-pean countries. It needs morethan self-administrating gov-ernment, which has becomeDonald Tusk’s specialty.

From which party do youexpect to take more voters –PO or SLD?In my opinion, the biggestgroup of people who will votefor us will be those who previ-ously voted for PO when itwas generally liberal and lessconservative; the second-largest group will be voterstaken from SLD.

But above all I am count-ing on reaching a new groupof voters, especially 20- to 30-year-olds, and even youngerpeople who will have the votefor the first time in the com-ing election. I think that myMovement of Support will bethe party of first choice forpeople of the younger genera-tion, because they are fed upwith the present fossilizedpolitics with its outdated mes-sages. During my meetingswith them I hear that theywant to live without nationalneuroses in a society which isopen to the future and unbur-dened by the past.

With harsh attacks on thegovernment and Prime Min-ister Donald Tusk, you havepositioned your Movement ofSupport as hard opposition.So you are taking the same

“I am certain that my party will succeed andenter parliament in this year ’s elections”

JANUARY 24-30, 2011 IINNTTEERRVVIIEEWW www.wbj.pl 9

PiS would givepension choice Poles should have theright to decide on theproportion of theirearnings which go topublic and private pensionfunds, the leader ofPoland’s main oppositionparty, Law and Justice(PiS), said last week. PiSwill soon propose newpension legislation inparliament, leaderJaroslaw Kaczyƒski toldthe press.

Gifts to the US The US has published alist of items gifted to USdignitaries in 2009. VP JoeBiden received a Stipulafountain pen from latePresident Lech Kaczyƒski,while Admiral MichaelMullen, chairman of theUS Joint Chiefs of Staff,received a large swordfrom General FranciszekGàgor, then chief ofPoland’s General Staff.Ben Bernanke, chairmanof the US FederalReserve, meanwhile, wasgiven a commemorativecoin set by S∏awomirSkrzypek, then presidentof the National Bank ofPoland. All three gift-givers died in the tragicApril 10 airplane crash inSmolensk. ●

line as the other newcomer inpolitics, PJN [Poland ComesFirst]?My Movement of Support isin opposition regarding thegovernment, but from a dif-ferent direction than PJN.[Joanna] Kluzik-R ostkows-ka’s party is just PiS [Law andJustice] light and it attacks thegovernment from the right,while I am doing it from aleft-liberal position.

I would also ask where theleaders of PJN were whenJaros∏aw Kaczyƒski, as primeminister, and Zbigniew Zio-bro, as justice minister, wereconducting their policy ofabuse and witch-hunts, whichled to the tragic death of for-mer leftist MP , BarbaraBlida? They did not dissociatethemselves from PiS’s policiesand they stayed in the partyuntil Kaczyƒski threw themout of it. So what they need todo now is to show penance fortheir support of Jaros∏awKaczyƒski, because it is notenough to smile and lookpretty and pretend they havea clear conscience. They donot and it is a political burdenwhich makes them unreliable.

And you can attack PO andthe government with a clearconscience, forgetting thatyou were a member of theparty for years and played asignificant role in it?Yes, because I have alwayssaid loudly what I wanted tosay, even when it brought melots of criticism from some ofmy colleagues in PO. So I nowhave the absolute moral com-fort to attack the variousstrange maneuvers going onin Civic Platform and the gov-ernment.

Yet I am not attackingDonald Tusk and the govern-ment in a totally crazy manner,as Kaczyƒski and his followersin PiS are doing. My criticismis based on merit. I am intro-ducing important ideas intothe political debate concerninghow to improve the function-ing of our economy, how tochange the unhealthy relationsbetween the Church and state,how to push forward the intro-duction of [state-subsidized] invitro, how to make changes inour army and in our whole mil-itary policy, including the endof our far-too-long and costlymilitary presence inAfghanistan.

And this is having someeffect, because Civic Platformhas returned to the problemof in vitro and SLD has pre-sented a draft bill in the Sejmon the liquidation of theChurch Fund.

Do you think that your sharpanti-Church stance andattacks on certain Catholicbishops will bring you sup-port among Poles? I am only reminding everybodythat, according to its constitu-tion, Poland is a secular stateand the division betweenChurch and state should be

observed, including by Catholicbishops and priests. I protestwhen certain bishops talk rub-bish and every politician sitsquiet, afraid to protest. If therewere no nonsensical speechesdelivered by bishops, I wouldstop talking about them. I donot have any obsession with theChurch and certainly not withGod. Yet in an atmosphere ofpolitical correctness – or ratherof fear of reacting to some ofthe Church’s abuses of power –I have to react.

And I do not agree thatPoland is as conservative assome right-wing commenta-tors try to paint it. Polls showthat the majority of Poles arefor [subsidized] in vitro andwant a more liberal abortionlaw. I think that Polish socie-ty, which is now open to theworld after 50 years ofimposed isolation duringcommunist rule, is becomingquite liberal in its attitudetowards many aspects of life,including its attitude towardsthe role of the Church.

There’s something of a battletaking place as to who is enti-tled to the heritage of latePresident Lech Kaczyƒski.How do you see the matter?That battle is being waged byJaros∏aw Kaczyƒski, who hascommitted political suicide byresigning from real politicsand devoting himself and PiSto cultivating the memory ofhis brother. He is pushing hisparty into oblivion.

Lech Kaczyƒski – amediocre, second-rate presi-

dent and politician – has noreal heritage. If the catastro-phe in Smolensk had not hap-pened we would be not talk-ing about any heritage. Presi-dent Lech Kaczyƒski acted asthe subordinate of PiS leaderJaros∏aw Kaczyƒski and waspolitical tool in his hands. The

fact that he is buried amongthe Polish national pantheon– in Wawel [Cathedral] – doesnot make him a great histori-cal figure.

You have not presented anyviews on Polish foreign policy.Do you have any remarks orpostulates? Yes, I do. I have long been avocal critic of P oland’s pres-ence in Afghanistan – pro-longed by the governmentand also recently by the presi-dent – and I have demandedthe quick withdrawal of oursoldiers. I am critical of theexpenses for the army, whichare too high for P oland, andabout this whole aspect of ourmilitary policy.

The W ar in Afghanistancosts us too much and bringsus nothing, even in relationswith the US. We do not haveAmerican missiles, nothingcame from the [2003 F-16]offset deal. We have not even

seen the abolishment of visasto the US.

I supported our participa-tion in the NA TO operationin Afghanistan at the begin-ning, in the name of NA TOsolidarity and the War on Ter-ror, but I don’t see a reason tostay now, as other allies arewithdrawing their soldiers.We should have withdrawnours two or three years agoand not behaved like the goodstudents in class. Poland is nota military power and shouldnot pretend to be.

In our European policy, Iam for deeper integrationwith Germany. I believe thatclose political and economicrelations with Germanyshould be the essence of ourEuropean policy. It is in ournational interest to have thestrong friend and partner inour Western neighborhood.

How about Polish relationswith Russia?I value Tusk’s policy towardsRussia and I support the gov-ernment’s efforts to normalizeour relations, while doingeverything possible to clear upblank spots in our mutual his-tory.

Yet I am now afraid thatPiS’s hysterical reactiontowards the Russian report onthe Smolensk catastrophe,regardless of Russia’s omissionof its share of responsibility,will make it very difficult toconduct relations with Russia.And putting aside the technicalcauses of that catastrophe, Iwill repeat my opinion that

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Janusz Palikot believes his party can tap into liber al-leftist sentiment in Poland

“Lech Kaczyƒski [was]a mediocre, second-

rate politician”

there would not have been atragedy at Smolensk if P resi-dent Lech Kaczyƒski had notinsisted on flying there. [UnlikePM T usk, he had not beenexpressly invited to commemo-rate the Katyƒ massacre – ed.]

What will you do if the Move-ment of Support does not getthe five percent of votes need-ed to enter parliament? Willyou keep the party afloat?First of all, this is a socialmovement and not my toy.Second, our aim is not only towin in the parliamentary elec-tions, but to begin the processof changing Polish politics. Soeven if it turns out that wedon’t enter parliament in thisyear’s elections – and I repeat:we will manage this – we willremain an active political forcewhich I will lead.

What makes you believe thatyou can stand as a politicalleader in your own right?Because I believe that I can doa lot for P oland. I offer ideasfor development in variousfields, for making our societymore prosperous, for speedingup our modernization andmaking Poland highly respect-ed by our neighbors and theEuropean Union.

It is not vanity which keepsme in politics, but my strongideas, unselfishness and thehope I have deep inside that[these goals are] possible toaccomplish. ●

Media patron:Main Sponsor: Sponsor:Organizer:

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JANUARY 24-30, 2011 OOPPIINNIIOONN www.wbj.pl 11

In the emotion-fueleddebate which hasfollowed the Inter-

state Aviation Committee’spublication of its investigationof the Smolensk crash, voicesof reason have been few andfar between.

Law and Justice (PiS) haslaunched a facts-be-damnedoffensive against the govern-ment’s handling of the investi-gation, leaving the prime min-ister and his cohorts to sputterand protest against sugges-tions of ineptitude (at best)and treason (at worst).

In fact, the most reasonableassessment of the situation hascome from Stanis∏aw Wziàtek,a backbencher from theDemocratic Left Alliance(SLD). Speaking before par-liament, he offered thesewords:

“I am saddened by the factthat we are so divided in thecase of the Smolensk tragedy.Emotions have accompaniedus since the first moments ofthat fateful day and thoseemotions are justified. We lostclose friends. We lost the pres-ident of Poland. Now we arelosing our authority. I will notshout. I will not throw accusa-tions or try to provoke laugh-ter. I will not point out theguilty ones. The truth is notblack and white. It’s not, asMAK wants, that the fault liesonly with the Polish pilots, nei-ther is it as PiS wants that onlythe Russians are to blame.”

It’s not often that this

paper finds itself in such firmagreement with Poland’s mainleftist party, but in this case MrWziàtek has the right of it.Unfortunately his words havegone unheard both in parlia-ment and in the media – as amember of the marginalizedSLD party, Mr Wziàtek couldhave announced a cure forcancer and no one would havebatted an eyelash.

Lack of alternativesThe “Polish-Polish war” takingplace between Civic Platform(PO) and PiS is so intense andemotionally absorbing thateverything else on the politicalstage has faded into the back-ground. The media – thispaper included – has admit-tedly played a role in this.

The upshot is that, ratherthan a healthy parliamentarysystem involving a high-spiriteddebate on issues of merit, Pol-ish politics have lately devolvedinto a series of pointless verbalskirmishes between two partiesof the right. It is unpleasant towatch. Worse still, the lack offorward thinking which cur-rently characterizes the politi-cal class will have consequencesfor future generations.

And yet, as recent historyshows, little has come of thosewho have stepped forward tochallenge the status quo. Backin 2007, a group of politiciansincluding the deputy leader ofPiS and former Sejm speaker,Ludwik Dorn, broke away toform a new center-right party

called Polska Plus, claimingthey wanted a more substan-tive debate. They have nowrejoined PiS.

Another group of ex-PiSMPs, Poland Comes First(PJN), is currently trying todrum up support before theautumn parliamentary elec-tions. Janusz Palikot, a formerPO politician and enfant terri-ble, is attempting the samething with his Movement ofSupport party (see interview,pps. 8-9). Neither groupinghas fared well in recent opin-ion polls.

Two-party showIn the end, the voters are theonly ones who can break thedeadlock. Both PO and PiShave core constituencies, butthe former’s poll numbers areprobably inflated by voterswho feel there is no viablealternative.

This situation will continueunless voters finally get fed upwith one or the other party’santics and that group’s supportlevels fall below 20 percent.Only then will there be a real-istic chance for another entityto make a power play.

This autumn’s electionswould be a fine time for that tohappen, but everythingdepends on how much frustra-tion mounts over the year. Ifthe voters aren’t sick of thetwo-party show before Octo-ber, expect the monotony tocontinue for the foreseeablefuture. ●

Snow and travel don’t mix.This is a lesson learnedseemingly every year,

and the past Christmas provedno exception – thousands ofairline passengers acrossEurope and the US werestranded due to huge snow-storms. P oland was lucky tohave avoided those, but itswinter has nevertheless beenvery white.

November 29, 2010, was aparticularly frustrating exam-ple. The snowstorm that hitPoland that day brought justabout everything to a halt.Roads were jammed, publictransport knotted up, taxiswere nowhere to be found.The capital, Warsaw, was para-lyzed. Horror stories emergedof people spending hours andhours trying to get home afterwork. Some unfortunate soulswere stuck in a traffic jam forover 20 hours, local mediareported.

Forecast: frustrationMost people are understand-ing when it comes to weather-related hang-ups. After all, theweather remains beyondhuman control. But it can beprepared for.

Certain allowances can bemade, of course. The tradition-ally rainy UK, which waspounded with snow late lastyear, can’t be expected to exer-cise Finnish precision in deal-ing with the winter weather.Similarly, the huge amounts ofsnow that collapsed the roof ofthe Metrodome in Minneapolis(a city which is no stranger tosnow) – took many by surprise.

But what happened inPoland this winter – and every

winter – was irritatingly easy topredict. The November 29snowstorm had been forecastdays in advance. Why did ittake so long to get the snowremoval crews and salt truckson the road? Why did it seemlike there were so few? Yes, itwas a big storm – by morningover a foot of snow had accu-mulated. But that’s par for thecourse in a Polish winter.

Regardless, history repeat-ed itself on the Polish railways

throughout December. P as-sengers, packed like sardinesin train-carriage tins, enduredhours of waiting as tracks werecleared. The chaos cost thedeputy infrastructure ministerand the head of PKP theirjobs, but will that solve theproblem? P reparedness andforesight are needed – we canhope the new leadership pos-sesses those, but we’re notholding our breath.

The government’s hand-wringing has produced noth-ing but short-sighted fixes, andmany of these will be forgottenas soon as spring rolls around.Meanwhile, compare P olandwith any of the Nordic coun-tries in terms of coping withsnow and you’re apt to comedown with winter depression.

Precipitous costs?Poland’s inability to adequate-ly prepare for winter isn’t just

frustrating – it has its costs.Estimates on exactly howmuch these difficulties cost thecountry are hard to come by,but the figure isn’t insignifi-cant.

Just recently, consultingfirm Deloitte found that trafficjams in Poland’s seven largestcities cost the economy overz∏.4 billion per year. The chaosthat ensues after large snowstorms essentially results inmega traffic jams: Not only docars spend more time on theroad, but commuters spendmore time in airports and ontrains, effectively spending lesstime contributing to the econ-omy by working or consuming.And the P olish winter canstretch into April. The costmust surely then be in the bil-lions of z∏oty.

Poles are right to be out-raged by the way their nationaland local governments handlebad weather. The attitude isoften one of “JakoÊ to b´dzie”(We’ll manage somehow) or “Ican’t control the weather!”

But officials can and shouldprepare – the snowplows andsalters can be put on standbyas soon as snow is forecast.PKP can have teams ready toremove snow from tracks aswell. There are plenty of othereasy-to-implement solutions,and a look to P oland’s neigh-bors for best practices wouldbe in order.

Admittedly, there willalways be weather-related trav-el delays and inconveniences.But there is much more thatofficials can do to keep them toa minimum. Poland’s economy– and its residents’ nerves –would greatly benefit. ●

A war of attrition

“Weather remainsbeyond human

control. But it can be prepared for”

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The cost of winter

Frost on the economyAnthony Casey

“Keep moving, keep warm.”So goes the common wisdom,but it’s not always that easy tofollow in Poland. As Decem-ber proved – and January andFebruary may yet – the coun-try’s transport infrastructureis at the mercy of the weather.

Preliminary estimates inthe press have put the cost ofcoping with this winter’s snowat between z∏.1.3 and z∏.1.5billion. And that’s just thecost of keeping the roadsopen.

To put this into context,Finance Minister Jacek R os-towski recently announcedthat 2010’s budget deficitwould likely come in at z∏.45billion. If the country couldfind a more efficient means ofdealing with the winter, thenextra funds could be spent onbalancing the budget, possiblycutting the deficit by threepercent.

Slippery savingsThe significance of the issueis not lost on Poland’s cash-strapped city halls. W arsawMayor Hanna Gronkiewicz-Waltz, for one, has suggest-ed that her transport offi-cials should find a cheaperand more effective alterna-tive to salting the capital’sroads.

Quite what that alterna-tive should be remainsunclear, however, as mostother de-icing substancesare significantly moreexpensive, according toTadeusz Godlewski of theRoad and Bridge R esearchInstitute. Speaking to thePolish P ress Agency, henoted that salt works well to-7° C, but quickly becomesless efficient at colder tem-peratures. Pricier solutionsare then required, but eventhese are used sparingly inEurope and often mixedwith more affordable sub-stances.

Moreover, W arsaw hasalready shaved a few millionz∏oty off its winter roadclearing budget, which stoodat z∏.101 million for the2009/10 season and is cur-rently z∏.95 million. This billfor winter is still heaps larg-er in Warsaw than outside itthough – Kraków, for exam-ple, has budgeted for justz∏.29 million this winter.

The cost to city budgetsis plain to see. L ess easy togauge is the indirect cost tothe economy. When wintergrips the city, deliveries areheld up and employee tardi-ness increases. Simply put,less business gets done.

Lack of beliefBusinesses appear to be ontheir own, to some extent. Butsome cities have made mag-nanimous gestures to alleviatethe burden on individuals atleast. Kraków offered freepublic transport during theworst of December’s snowand heating braziers were setup at tram stops around thecity, although this was little

more than a stopgap measure. According to Michael

Beim, a transport expert at theSobieski Institute, a thinktank, other European coun-tries maintain good technicaland organizational operationsto keep their cities moving inthe winter. The problem inPoland, he says, is that thecentral government virtuallyignores public transport.

“I think the current situa-tion is the result of a lack ofbelief [by central government]in the importance of publictransport in P oland,” MrBeim said. “The subject hasbeen passed on to local gov-ernments – since 1990 tomunicipal governments forlocal transport, and since 1999to provincial governments forregional transport – and for-

Winter weather taxes the economy every yearand there's no lack of proposals to improve thesituation. So what's the problem?

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Poland needs to scrape away its inefficient methods for dealing with winter weather

Learning from the FinnishFor film fans in Poland, this is going tobe a memorable winter for all thewrong reasons. Actor Liam Neeson wasdue to appear at the 2010 Camerimagefestival in Bydgoszcz, held at the turn oflast November and December, butsnow disrupted flights between Londonand Warsaw, disappointing film fans.Festival organizers had planned to pres-ent the actor with the KrzysztofKieÊlowski memorial award at theevent – but the weather had otherplans.

The absence of the Hollywood A -lister (he played Oscar Schindler tomuch critical acclaim) may have creat-ed a stir at the time, but Neeson wasjust one of thousands of air passengersgrounded across Europe.

In Poland, the airports at Wroc∏aw

and Warsaw reported delays in heavysnow, as operations were halted andstaff were sent out to clear runways.Other airports in Poland did not reportany significantdelays.

It could havebeen much worse.Across the UK – anation noted forits obsession withthe weather andfailure to dealwith it – airportsreported lengthydelays andswathes of cancellations. And when theairport in Frankfurt, Germany, closed,it cut off thousands trying to reachother parts of Europe and beyond. This

in particular had a knock-on effect ontourism in P oland; one hostel ownerlost almost z∏.6,000 overnight becauseof cancellations caused by the problems

in Frankfurt.Many of these

airports –Poland’s included– could learn athing or two fromFinland. Thecountry’s Helsin-ki Airport lastclosed due tosnow in 2003despite regular

winter deluges. “We can manage to remain open

because have the equipment, personneland processes to handle different kinds

of snow and ice situations. W e alsotrain, review and develop these process-es thoroughly and continuously,” saidHeini Noronen-Juhola, the airport’svice president for aviation and safety.

“Winter maintenance is ready towork from mid-October until mid-April, so the bad weather can come anytime and we are ready,” she added. Theairport justifies this investment by thefact that it loses income from landingfees every time it closes.

“All countries and airports havetheir own layout, legislation and otherparameters, but I’d say that we haveexcellent winter processes and tactics inevery way, and that is something fromwhich everyone could learn,” Ms Noro-nen-Juhola stated. “It’s not really aboutthe number of snowplows or people.” ●

Polish poethonoredNobel Prize-winning poetWis∏awa Szymborska waspresented with the Orderof the White Eagle,Poland’s oldest andhighest state distinction,at Wawel Royal Castle inKraków last week.President Bronis∏awKomorowski bestowedthe honor in recognitionof Ms Szymborska’scontribution to nationalculture and for heroutstanding achievementin the field of literature.Ms Szymborska, now 87years old, won the NobelPrize in literature in 1996“for poetry that withironic precision allowsthe historical andbiological context tocome to light infragments of humanreality.”

Polish healthcare largelyprivate?The Polish health-caresystem is apparentlypublic only by name. Infact, the market isdominated by non-publicfacilities that offergeneral medical services,dentistry and rehab-ilitation. Of the 17,754medical centers inPoland, only 2,331 arepublicly operated(hospitals, outpatientclinics, R&D centers,budget-funded facilities),Dziennik Gazeta Prawnareported. Private healthcare establishmentstherefore hold an 87%market share.

Hooligan-proofstadiums?Top-of-the-linemonitoring systems areto be installed at all Euro2012 sports facilities inPoland to help policecrack down on hool-igans. Cameras willrecord everything thatgoes on at gates, boxoffices, in the stands andon the field, DziennikGazeta Prawna reported.The images will be high-quality and comprise atleast 950 pixels, and willhave a frequency of atleast 12 frames persecond. ●

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Paul Fogo is a senior attorney with Miller, Canfield, W. Babicki, A. Chelchowski & Partners.fogo@pl.millercanfield.com

Transportmishaps –who pays?

Legal Eye

Each morning my wife and Icommute to the center ofWarsaw by car. We have fol-lowed the same route foryears, although recently ourcommute seems to takelonger. F or the most partdelays are the result ofincreased traffic in W arsaw,but not always.

The number of single-caraccidents in W arsaw alsoseems to be growing. The rea-son can be summed up in oneword: potholes. Damage to acar’s steering system can costthousands of z∏oty to repairand the driver has no one toblame but himself. Or doeshe?

Public roadwaysResponsibility for publicroadways in Poland is a func-tion of government. A ccord-ing to the Act on Public Road-ways, the maintenance andoperation of a public roadrests at the local, district andregional level of government,as well as at the national level,depending on the designationof the road.

Poland’s Civil Code, inparticular Art. 415, places lia-bility for damage on the entityor person that causes suchdamage. This applies in gen-eral, not just to road relatedaccidents. Governmentauthorities are not exemptfrom such liability.

In order to file a claim, amotorist must properly evi-dence the cause of the dam-age, and in particular shouldobtain a police report docu-menting the accident.

Public transport Similar to public roadways,the operators of public trans-port systems, includingmunicipal buses and trams,are liable for damages result-ing from their operations. Inthis case liability is based on acontractual agreementbetween the operator andpassenger entered into uponpurchase of a ticket.

The operator contracts tosafely deliver the passenger to

his or destination. In case ofan injury incurred duringtransit, the passenger shouldattempt to notify the driver ofthe injury before exiting, aswell as noting the registrationnumber of the vehicle.

The operator may defenditself against a claim if thecause of the accident is attrib-utable to the driver of anothervehicle, or is somehow due tothe negligence of the passen-ger.

Public airways Air travel, although notspecifically considered to be“public” transport, is never-theless strictly regulated withrespect to passenger rights.Depending on the nature ofthe mishap, including delays,cancellations and accidents,airlines are obligated to pro-vide compensation to onedegree or another.

In the case of injury ordeath, strict liability appliesfor any claim up to €135,000per passenger, meaning thatan air carrier can not contestclaims below this threshold. Acarrier may, however, defenditself against a claim for dam-ages in excess of €135,000 ifthe carrier can evidence that itwas not at fault.

Compensation in theevent of a flight delay or can-cellations is also strictly regu-lated. Depending on thelength of the delay, an air car-rier is required to provideassistance even if the delay orcancellation is beyond itscontrol. In case of a flightdelay of more than two hours,the airline is obligated to pro-vide a free meal to each pas-senger plus two free calls.

If the delay lasts until thenext day, the air carrier is obli-gated to provide hotel accom-modation and transport toand from the hotel. In thecase of a flight cancellation orbeing denied boarding on anoverbooked flight, the air car-rier is required to pay eachpassenger anywhere from€250 to €600, depending onthe length of the flight. ●

gotten about. Unfortunatelythis cannot be effective in thelong run.”

Gone off the railsAustria is one Europeancountry described as havingrobust local transport poli-cies. Indeed, there are inter-esting comparisons to bedrawn between V ienna andWarsaw.

The first is that, in Vienna,the unemployed are put towork clearing rail tracks andtramlines of snow; W arsaw,meanwhile, hires contractors.Another contrast is the rollingstock in use. V ienna favorsSiemens Ultra L ow Floortrams, which are considerablymore advanced than the Kon-stal trams commonly used inPoland.

It’s not that P oland lacksfor ideas as to how it canimprove its public transport.Jakub Majewski, formerchairman of Masovian R ail-ways, has suggested the cre-ation of multi-purpose “rapidresponse brigades” to provideblankets, medicine and hotdrinks for stranded passen-gers as well as to repair orremove broken-down trains.

And trains, as any recentrail passenger in P oland willlikely have noticed, do breakdown. If they turn up at all.

PKP Intercity caused a majorstir on December 12, when itintroduced a new timetableand published the wrongtimes – and even the wrongplatforms – for some depar-tures and arrivals.

The debacle cost JuliuszEngelhardt his job as deputyinfrastructure minister. Andhis successor, Andrzej Mas-sel, promptly fired PKP presi-dent Andrzej Wach.

Political, technical andweather problems only exac-erbated the situation lastmonth, according to MrBeim.

“The change to thetimetable was part of thepolitical element. The Infras-tructure Ministry sought tolimit the number of trainsoperated by InterR egio

Regional Transport, in orderto support Intercity’s ‘cheapairline railway’ trains,” henoted. The upshot was thatthe number of trains availablewas limited, so passengerswere crammed in together.Moreover, they were often

left without informationabout which trains would goand which would not.

“The technical problemscame down to the fact thatPKP Intercity was not techni-cally ready for an increasednumber of passengers,”according to Mr Beim.

He added, “The third fac-tor, but probably not the mostimportant, was the weather.Cracked rails, no snowplows,the inability to cope with slip-pery surfaces – this is theresult of years of neglect andfailure to invest.”

A need for scrutinyChronic, systemic neglect is arecurring theme whenPoland’s public transport sys-tem or its roads are discussed.Repairs in both cases are

often shoddy, requiring fre-quent additional work, andwinter takes a major toll onboth roads and rails.

But Mr Beim cautionedagainst extreme pessimism:“You cannot say that thisproblem cannot be solved.”

Many countries where winteris harsher and whiter, such asSwitzerland, still manage tofunction efficiently.

Addressing railway infra-structure in particular, MrBeim stated, “There are manyways to improve. Somerequire large outlays, forexample track renewal or thepurchase of new rolling stock.Others are relatively cheap.These include improvementsto passenger information, bet-ter competition for Intercity,or even ‘emergencybrigades.’”

Again, ideas appear to beplentiful enough. What’s miss-ing is the political will to helpstate-owned transport compa-nies get their acts together.

“In P oland there is nostrategy to combat the effectsof winter on the railway. F orexample, the problem of ade-quate numbers of snowplowshas been unresolved fordecades,” Mr Beim posited.He believes that a solution canbe found, if there is moreopenness.

“Nobody will talk aboutthe actual cost of the chaos,”he stated. “There needs to bea fair debate about the costsinvolved, otherwise it is diffi-cult for the public to scrutinizethe industry and seek solu-tions.” ●

“Nobody will talk about the actual costof the chaos”

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Too rare a sight when big snowstorms hit Poland

will hit shelvesin March 2011!

A GUIDE TOPOLISH EXPORTwill hit shelvesin March 2011!

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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 • JANUARY 24-30, 2011, LI 16/03

Celtic talksMokotów sale,new plansCeltic PropertyDevelopments, a Polishdeveloper active in theoffice and residentialmarkets, has sold theMokotów Plaza officebuilding in Warsaw.Spanish investment fundAzora Europe paid €33million for the property.Mokotów Plaza, locatedat ul. Post´pu 6 in thecapital, was completed inDecember 2008. It is afive-storey buildingcomprising 15,300 sqm oftotal space. Along withthe sale of MokotówPlaza, Celtic announcedits plan to develop a thirdphase of its CybernetykiOffice Park in Warsaw.

Frontex staysin Rondo 1The European Agency forthe Management ofOperational Cooperationat the External Borders,also known as Frontex,has extended its leaseagreement with MPGAconcerning space in theRondo 1 office building inWarsaw. The tenant hasalso increased the area itoccupies in the propertyby 1,550 sqm to 8,800sqm. Designed by theSkidmore, Owings &Merrill studio, incooperation with AZO andEpstein, and commis-sioned in 2006, Rondo 1 isowned by theMGPA-managed MGPAEurope Fund II fund. ●

Residential

MMaatteexxii ddiivveess iinnttoo tthhee PPoolliisshh mmaarrkkeettThe Belgian developerexpects to make a landpurchase soon

Belgian residential giantMatexi has entered the Polishmarket, opening a branchoffice called Matexi P olska.This marks the firm’s firstmove into Central Europe.

No project has beenannounced yet. However, thecompany has already begunthe process of acquiring land“in the most popular residen-tial locations in W arsaw.” Itplans to focus on the mid-mar-ket segment, stressing qualityand attractive sites.

“The first acquisitions areplanned soon, in H1 of 2011.These will be executed in War-saw,” said Miros∏aw Bednarek,managing director of MatexiPolska. “We are not planningto move outside the capitalbefore having a strong positionas residential developer with aportfolio in Warsaw.”

The decision to enterPoland followed intensiveresearch of the market. “It is abig market with a strong grow-ing economy and a relatively

young population, whereMatexi can develop and build‘great places to live’ to satisfythe housing need,” MrBednarek stated.

Asked whether Matexi’sPolish projects would be deliv-ered in “developer’s standard”(unfit-out) or turnkey stan-dard, Mr Bednarek said the

matter was still being dis-cussed. “In P oland there is avery common conviction thatMr Handyman can do the fit-out better than the developer.

Respecting that, we are notgoing to force Polish clients tobuy the fit-out from us,” hecommented.

“On the other hand, full fit-out is the standard in which wedeliver all our products in Bel-gium, so there will be such anoption in our offer for sure,”he added.

Matexi belongs to theMatexi Group, a private hold-ing whose subsidiaries havedelivered tens of thousands ofunits over the group’s 65 yearhistory. According to the firm,around 80,000 people –approximately the populationof Konin, the third-largest cityin Wielkopolskie voivodship –currently live in homes itbuilt.

Matexi Group delivered616 plots of land and 996 hous-ing units in 2009. Total sales inthat year amounted to €253million.

By contrast, Dom Develop-ment – one of Poland’s largestresidential developers – hadsales revenues of z∏.196.25 mil-lion in 2009, which roughlyequated to €47.77 million.

EE BBllaakkee BBeerrrryy

Topping out held for Nowy Dom Jab∏kowskichNowy Dom Jab∏kowskich, anoffice-retail investment incentral Warsaw, held its top-ping out ceremony last week.Construction on the projectbegan just 12 months ago.

Finishing work on NowyDom Jab∏kowskich, locatedon the corner of ul. Chmielnaand ul. Bracka, is scheduledfor completion in June.

LHI L easing P olska andDom T owarowy BraciaJab∏kowscy are the investorsbehind the project. The latterwas founded by Jan andTomasz Jab∏kowski in 1996,resurrecting the name of afirm owned by their familybefore World War II.

The original Dom Towarowy

Bracia Jab∏kowscy building isnow occupied by book storeTraffic Club. Nowy DomJab∏kowskich is being built onan adjacent plot.

It will offer a total of 3,550sqm, comprising office andservice space along with under-ground parking. A telier3Girtler & Girtler designedNowy Dom Jab∏kowskich,whose facade draws on aspectsof pre-war architecture. At thesame time, the building hasbeen designed to fit in withneighboring buildings.

Hochtief Polska is servingas contractor on the project,with Knight Frank responsiblefor leasing services.

KKaattaarrzzyynnaa PPiiaasseecckkaa

Matexi enters Poland . . . . . . . .15

Nowy Dom topped out . . . . . . .15

“Family on its Own” ending . .16

Winter land sales . . . . . . . . . . . .16

Conject acquisition . . . . . . . . . .16

Property-related stocks . . . . . .16

General contractor alternative17

GTC stake sold . . . . . . . . . . . . . .18

Derby 14 launched . . . . . . . . . .18

In this issue

1716

The government has set anexecution date or the “Familyon its Own” mortgage program

A growing number of firmsare exploring alternativesto general contractors

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Matexi Group delivered 996 housing units in 2009

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Nowy Dom Jab∏kowskich will offer a total of 3,550 sqm

Offices to let

JANUARY 24-30, 2011LLOOKKAALLEE IIMMMMOOBBIILLIIAA –– RREEAALL EESSTTAATTEE16 www.wbj.pl

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

on Jan 20 (z∏.mln)

08OCTAVA 2.09 0.97 1.85 2.49 -16.40 125,843,667 263.01

ATLASEST 3.30 0.61 2.60 4.83 -2.65 50,322,014 166.06

BUDIMEX 101.00 -2.60 72.00 106.10 26.25 25,530,098 2,578.54

DOMDEV 47.30 3.96 38.52 61.00 6.58 24,560,222 1,161.70

ECHO 4.67 -0.64 3.71 5.40 9.62 420,000,000 1,961.40

ELBUDOWA 169.00 0.00 155.00 188.40 -3.87 4,747,608 802.35

ENERGOPN 14.17 0.00 13.52 17.10 -1.94 23,827,044 337.63

ERBUD 53.25 -6.58 47.00 61.00 -1.21 12,602,711 671.09

GANT 17.08 -0.12 15.69 26.00 -15.65 20,499,953 350.14

GTC 21.89 -10.65 20.25 25.00 -13.10 219,372,990 4,802.07

HBPOLSKA 2.79 -7.00 2.79 3.95 -29.19 210,558,445 587.46

JWCONSTR 13.91 -7.76 11.06 18.69 7.00 54,073,280 752.16

LCCORP 1.50 0.00 1.37 1.73 -5.66 447,558,311 671.34

MARVIPOL 10.09 -0.88 10.09 22.31 -39.40 36,923,400 372.56

MOSTALWAR 53.25 -8.74 53.25 77.00 -15.48 20,000,000 1,065.00

MOSTALZAB 2.78 -3.47 2.78 4.84 -35.50 149,130,538 414.58

NAFTA 23.17 0.00 22.22 31.79 -3.46 5,903,203 136.78

ORCOGROUP 28.00 -0.57 19.00 33.50 7.69 14,053,866 393.51

PANOVA 32.30 -0.31 26.05 37.69 34.02 8,000,000 258.40

PBG 205.20 -2.05 192.00 252.00 -6.30 14,295,000 2,933.33

PLAZACNTR 4.44 0.68 4.41 6.52 -31.69 292,647,720 1,299.36

POLAQUA 18.40 3.66 14.94 22.50 5.14 27,500,100 506.00

POLIMEXMS 3.73 -4.36 3.73 5.29 -13.26 520,918,203 1,943.02

POLNORD 32.35 -0.31 30.10 44.00 -7.04 22,218,386 718.76

PROCHEM 25.19 -2.36 19.90 26.50 13.47 3,895,000 98.12

RONSON 1.44 -0.69 1.36 2.10 -15.79 272,360,000 392.20

TRAKCJA 3.95 -1.00 3.84 4.97 -5.28 160,105,480 632.42

ULMA 83.00 3.49 70.00 87.95 -3.49 5,255,632 436.22

UNIBEP 9.79 -2.10 5.99 10.30 61.82 33,927,184 332.15

WARIMPEX 9.70 0.52 7.64 10.30 12.01 54,000,000 523.80

Property-related stocks

Land prices

HHoott sseeaassoonn ffoorr pplloottss

Conject-BIW merger

The winter period hasseen some bargains inthe Polish landmarket

Demand for land generallycools in winter, which presentssellers with the dilemma ofwhether to decrease prices orto wait until spring arrives tomake a sale. Those whochoose the former option arelikely to offer winter discountsof more than 20 percent,according to a recent report byreal estate brokerage HomeBroker.

The trend is best illustratedby data from the AgriculturalProperty Agency. The averageannual growth in its landprices over the 2005-2009 peri-od amounted to 20 percent,but the winter months usuallywitnessed falls in averageprices.

Why is this? A ccording toHome Broker, the cold weath-er simply complicates the pur-chase process. It is harder tocorrectly evaluate the condi-tion of a plot and access to it ismore difficult. Land is coveredwith snow and it gets dark veryearly. As a result, it is more

likely that buyers will judge aplot’s topography and shapeincorrectly or will buy a pieceof marshy land.

Buyers who are nonethelesskeen to buy in winter includeinvestors in undeveloped plotsas well as those who look forcheaper land on which to buildtheir own houses.

Price reductions depend ondemand in the location inquestion and are usually morenoticeable outside large urban

centers, the Home Brokerreport stated.

As an example, the reportcites the price of a two hectareplot in Gmina Mszczonów,which was first reduced fromz∏.22 to z∏.19 per sqm inDecember 2010 and then toz∏.17 per sqm in January. Theowner of the plot, needingcash quickly, reduced its priceby 22.7 percent within twomonths.

KKaattaarrzzyynnaa PPiiaasseecckkaa

Residential

‘‘FFaammiillyy oonn iittss OOwwnn’’ oouuttooff ccoommmmiissiioonn bbyy 22001122The government isshutting down itsinfluential subsidyprogram

“Family on its Own,” the gov-ernment’s popular mortgage-subsidy program for first-timehomebuyers, will breathe itslast on December 31, 2012.That’s the last day that appli-cations will be accepted.

In the meantime, the pro-gram will be significantly cur-tailed. Homes on the second-ary market will be excludedfrom “Family on its Own,” amove which has long beenknown and welcomed bydevelopers. L ess welcome,however, will be the decisionnot to allow singles to takepart in the program, despiteexpectations to the otherwise.

“Family on its Own” willstill encompass single familyhouses.

The price per square meterlimit for qualifying for the pro-gram will also be lowered. InWarsaw, for example, the cur-rent maximum price persquare meter amounts toz∏.9,080.40; after the changes,the maximum will bez∏.7,134.60.

“The changes will decreasethe amount of apartments that

qualify for the program andthereby force developers toreduce prices by about 21 per-cent,” Pawe∏ Grzàbka, chair-man of CEE Property Group,said in a statement. “Thelower price limits will makedevelopers look for bargains,for example in the suburbs.”

He added, “The program’sexpiry in 2012 with no infor-mation about possible alterna-tives may cause artificiallyinflated demand on the realestate market. It is also proba-ble that people will lose inter-est in banks’ mortgage offers.”

The legislation amending

“Family on its Own” wasapproved by the Council ofMinisters last week and stillhas to pass through the rest ofthe legislative process.

“Family on its Own” wascreated in 2006 to help mar-ried couples and single parentsbuy their first homes. The sizeof apartments and single-fami-ly houses qualifying for theprogram cannot exceed 75sqm and 140 sqm respectively.During the first eight yearsafter the purchase, a portionof interest repayments arepaid by the Treasury.

KKaattaarrzzyynnaa PPiiaasseecckkaa

0

10,000

20,000

30,000

40,000

50,000

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43,120

30,882

6,6454,001

Housing spikeNumber of loans granted within the“Family on its Own” program

Source: Bank Gospodarstwa Krajowego

Felicity projectback on trackCommercial real estateadvisory Cushman &Wakefield has beenappointed exclusive agentfor the commercializationof the Felicity shoppingcenter in Lublin. It will beresponsible foroverseeing the leasingprocess and maintainingthe tenant mix. C&W’sappointment marks thefirst sign of progress onthe scheme in some time.Atrium European RealEstate Limited, theinvestor behind Felicity,had put the project onhold for a few years, butis now moving ahead witha smaller project.Delivery is scheduled forH1 2013.

DTZ managesZ∏ote TarasyDTZ has been appointedproperty manager andleasing agent of the retailportion of the Z∏oteTarasy commercialcomplex in Warsaw. Theshopping center housesmore than 200 stores onits 65,500 sqm of GLAwith major tenantsincluding Multikino, VanGraaf and Marks &Spencer ●

Germany’s Conject Holdingshas announced the acquisi-tion of UK-based BIW Tech-nologies Ltd. The new entityclaims to be the world marketleader for infrastructure life-cycle management (ILM)applications.

Conject and BIW havecombined revenues ofapproximately €18 million.They employ 180 and havearound 170,000 users for theirproducts. Both brands will bemaintained.

“Conject and BIW sharethe same vision and approachto innovation and customerservice,” said Martin Reents,co-CEO of the new group.“We recognized the qualityand value of BIW ’s applica-tions, which are wholly com-plementary to our own ILMportfolio, and we are veryexcited to be able to extend

and complete our suite.”Conject has a growing

presence in the Polish market.Last summer, for example, itsigned a letter of intent with“Polish Airports” State Enter-prise, operator of W arsaw’sChopin Airport, to use itsconjectPM solution duringthe construction of a five-starhotel on the airport’s premis-es.

Other references inPoland listed by Conjectinclude the Northern Bridgeproject (designed with thehelp of its software), develop-er Inter Ikea Group P olska(ongoing shopping centerdevelopment) and PKP P ol-skie Linie Kolejowe (the cre-ation of technical-design doc-umentation for a fast trainbetween Katowice and P yr-zowice).

EE BBllaakkee BBeerrrryy

The Agricultural P ropertyAgency (ANR) is preparingto put 20 historic buildingsup for sale, hoping to makez∏.20 million on the transac-tions.

Demand for palace prop-erties is low, even though theoccupancy in hotels locatedin stylish historic buildings is

30 to 40 percent higher thanin modern ones, according tothe World Tourism Organiza-tion. Experts quoted by Dzi-ennik Gazeta Prawna havecomplained that the sellingprices set by ANR are toohigh and that, as a result, thetenders might not be com-pleted in this first round.

10000

12500

15000

17500

20000

Q2Q1Q4Q3Q2Q1Q4Q3Q2Q12008 2009 2010

Q3

Fields of green?Average sale price of agricultural land sold by the AgriculturalProperty Agency, Q1 2008-Q3 2010

Source: Agricultural Property Agency

Treasury sells palaces

JANUARY 24-30, 2011 LLOOKKAALLEE IIMMMMOOBBIILLIIAA –– RREEAALL EESSTTAATTEE www.wbj.pl 17

H&M inSjaelso’s Porto 55Clothes retailer H&M willopen a store in theplanned Porto 55shopping center in Elblàg,Warmiƒsko-Mazurskievoivodship. SjaelsoPoland is just startingconstruction on theproject. H&M will be oneof Porto 55’s key tenants,taking up 1,400 sqm ofspace on two floors in themall. Located at theintersection of Elblàg’sul. Nowowiejska and ul.Królewiecka andscheduled for completionin 2012, the Porto 55shopping center willcomprise some 22,000sqm of retail, service andentertainment space withapproximately 100stores.

Resort invest-ment growingResidential developersare increasingly interestedin holiday resort projects,according to CEE PropertyGroup. The company’sresearch into the matternoted a growing trend inapartment construction inseaside and mountaintowns. Moreover, suchproperty purchases areincreasingly being madeas investments to leaseduring the holiday season.It’s not just smalldevelopers in the marketeither. Larger firms, suchas Kristensen Group,Inpro, Gant Development,Polnord and PKOInwestycje are involved in– or weighing –investments in resorttowns where land pricesare relatively low. ●

Construction services

Repackaging the processRather than employ ageneral contractor,some investors areexperimenting with arival model of projectrealization

General contracting continuesto be the dominant model forthe execution of work in thePolish construction industry,but experts point out that a dif-ferent approach, involving thedivision of work into “pack-ages” which are then assignedto a number of contractors, isbecoming increasingly popularwith real estate investors in thecountry.

“This method of realizingan investment consists of theinvestor giving up on generalcontracting services, managingconstruction through a con-tract engineer and assigningparticular portions of workdirectly to the contractors,”said Jacek K udrzycki, invest-ment realization director atPM Group, an architecturaland engineering firm dealingwith the management of realestate projects.

Savings and flexibilityMr Kudrzycki argues that sucha solution, which involves thenegotiation of prices with thecontractors themselves ratherthan with the general contrac-tor, brings concrete financialbenefits to the investor. Sav-ings can amount to a few per-cent of the total cost of theinvestment.

“One can save up to half ofwhat the general contractoradds to the cost of the subcon-tractors’ work,” Mr Kudrzyckisaid.

He added that better controlof the whole investment

process, of the progress andquality of the work being car-ried out, is another advantage.Managing construction througha contract engineer and usingthe “packaging” system allowsfor flexible reaction to changesmade by an investor during therealization process, Mr Kudrzy-cki stressed.

PM Group has cooperatedwith a number of investors whohave chosen the “packaging”system in recent years, saidJaros∏aw Konior, member ofthe firm’s management board.Those included Ikea, whichhad built its F ranowo andMatarnia retail projects – inPoznaƒ and Gdaƒsk, respec-tively – using this model.Another firm, automotive sec-tor supplier Autoliv, employedthe solution in a car factoryproject in Jelcz-Laskowice.

Moreover Parkridge RetailDevelopment has used the“packaging” system extensivelyin its Polish projects. So far allof the developer’s shopping

centers in the country havebeen realized in this way, saidWojciech Wojciechowski, thefirm’s realization director. “Wecame to the conclusion that itwould be best if we controlledthe realization process our-selves by assigning the particu-lar tasks.”

He added that the solutionis useful in that it allowsParkridge to respond to futuretenants’ needs even if those areexpressed as late as the middleof the construction process. Inthe case of a general contrac-tor, such situations could leadto the formulation of claimsbecause of the continuous dis-ruption of the investmentschedule, Mr W ojciechowskipointed out.

Oversight neededWhat is crucial, he stressed, is aprecise definition of which“package” the individual ele-ments of construction belongto. Coordinating all the workproperly is also integral, so thatthe different contractors enterthe construction site graduallyand do not disrupt each other’swork. Agreements with con-

tractors for the first few “pack-ages” have to be signed beforeconstruction is launched.

In effect, Mr Wojciechows-ki said, usually approximately70 percent (in terms of value)of work has already beenassigned to contractors whenconstruction starts. The modelrequires that a special team ofcoordinators be called intobeing – Parkridge employs anexternal firm for that, but alsokeeps an in-house constructiondirector at each of its construc-tion sites.

PM Group’s Mr Kudrzyckiadmitted that the potentialfragmentation of responsibilityis an argument against the“packaging” system, but addedthat flexibility and savings off-set the risk. Besides, the riskthat work will progress tooslowly can be minimizedthrough the employment ofclear procedures by the con-tracted engineer’s team.

Oversight requires patienceand thus “packaging” is oftenrejected as an alternative togeneral contracting by devel-opers who are acting under thepressure of time, Mr Kudrzyckisaid. A ccording to P arkridgeRetail Development’s Mr Woj-ciechowski, however, the sys-tem works well for his compa-ny and has not led to anydelays so far.

“We have not been disap-pointed with the ‘packaging’system so far. All of our real-izations to date have beencompleted according toschedule. We have also man-aged to make savings in thebudget without decreasing thequality of materials, work orthe architectural value of thefacilities,” Mr Wojciechowskiconcluded. ●

Adam ZdrodowskiSH

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Some investors in Poland are building without a general contractor

“Using the ‘packaging’system allows for

flexible reaction tochanges made by an

investor”

JANUARY 24-30, 2011LLOOKKAALLEE IIMMMMOOBBIILLIIAA –– RREEAALL EESSTTAATTEE18 www.wbj.pl

Iron Mountainin OlkuszInformation managementservices firm IronMountain has leased 4,200sqm of warehouse and120 sqm of office space inRB Logistics’ CentrumLogistyczne Olkusz projectin Ma∏opolskie voivodship.Cushman & Wakefieldrepresented the owner ofthe facility in thetransaction. CentrumLogistyczne Olkusz islocated near a nationalroad linking Kraków withDàbrowa Górnicza inSilesia voivodship.

Railway stationrenovationsPolish Railways (PKP) islooking to spend z∏.510million on renovatingrailway stations this year,Rzeczpospolita reports.The first tenders, worthz∏.20 million, will beannounced at the end ofJanuary or beginning ofFebruary. The plan is torenovate 23 stations in2011, among them Opoleand Radom, said JacekPrzeÊluga, head of thePKP departmentresponsible for railwaystations. He said that thefull list had not yet beenfinalized, however. ●

GTC stake sold forover z∏.750 millionGTC R eal Estate Holding, asubsidiary of Dutch investmentcompany Kardan, last weeksold 16 percent in W arsaw-based developer Globe TradeCenter (GTC) to selected insti-tutional investors.

The shares were sold atz∏.21.50 apiece, bringing ingross proceeds of z∏.754.65 mil-lion. The sale involved an accel-erated book-building process.

“The proceeds will be usedby Kardan to increase financialheadroom to implement itsstrategy, and to reduce itsleverage,” the company wrotein a statement.

GTC Real Estate Holdinghas reduced its stake in GTC to

approximately 27 percentthrough the transaction.

Kardan has decided to holdon to this remaining slice for atleast 15 months, as it considersit to be “a strategic investmentfor the longer term.”

Other sizable shareholdersin GTC include ING NationaleNederlanden (8.1 percent) andAviva Commercial Union(7.24 percent).

Morgan Stanley oversawbook-building for the sale,while Ipopema Securities,KBC Securities and UniCreditCAIB P oland (together withMorgan Stanley) acted as co-lead managers.

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The Pascal office building in Kraków was developed by GTC

Dom Development launchesanother Derby project in Warsaw

Warsaw Stock Exchange-listeddeveloper Dom Developmenthas announced the launch ofapartment sales in Derby 14,the latest phase of a residentialcomplex that the company hasbeen realizing in the capital’sBia∏o∏´ka district since 2001. Atotal of approximately 3,600units have been turned overfor use within the investmentso far.

The Derby 14 scheme willbe realized in four stageswhich will deliver a total ofalmost 700 apartments. Thefirst stage of the project, which

will include two-, three- andfour-storey buildings and isscheduled for completion bythe end of H1 2012, will com-prise 174 units sized from 31.9-71.6 sqm. An undergroundparking lot for 170 cars willalso be provided.

The price of the apart-ments will range from z∏.5,550-z∏.6,750 per sqm, which meansthat all of them will qualify forthe “Family on its Own” gov-ernment-subsidized mortgageprogram for first-home buyers.Derby 14 has been designed bythe DAP architectural studio

and PB UniMax is acting asthe general contractor for thescheme.

Apart from the newlylaunched investment, DomDevelopment’s ongoing proj-ects in W arsaw also includethree other phases of theDerby scheme, the A dria andPrzy Ratuszu estates in P ragaPo∏udnie and Bemowo, respec-tively, as well as various phasesof Wilno in Targówek, OsiedleSaska in P raga Po∏udnie andKlasyków and MiasteczkoRegaty in Bia∏o∏´ka.

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JANUARY 24-30, 2011 MMAARRKKEETTSS www.wbj.pl 19

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A volatileweek

Stocks report

Polish stocks went up againlast week, but it was never-theless quite a volatile week.All the major WSE indicesrose – the blue-chip WIG20index by one percent – andmanaged to set new multi-month highs, although someprofit taking was visible inthe second half of the week.

The chemicals sector wasthe best performing, with theWIG-Chemia index rising bynearly five percent. Synthoswas the top pick: its sharesjumped by more than sevenpercent.

Financials were alsostrong, and PK O BP andPekao each rose by morethan three percent. It mayseem a little strange thatfinancials went up after lastweek’s interest rate hike,but – as the rise was expect-ed – it is likely that the mar-

ket had already discountedthis negative factor in previ-ous weeks.

On the other hand, otherrate-sensitive stocks wentdown. The biggest laggardswere real estate developersand construction compa-nies. G TC lost the mostamong developers as one ofits main shareholder decid-ed to sell a 16 percent stakein the company to selectedinstitutional investors.GTC’s shares plummetedafter the news was revealed,and the stock lost nearly 11percent on the week. JWConstruction was also underselling pressure.

It was another interestingweek for investors, but it isquite likely that it will takesome more time before prof-its are taken. Still, there areno signs yet of a reversal. ●

China growthimpacts z∏oty

Currency report

The Monetary Policy Coun-cil’s decision to increaseinterest rates by 25 bp, to 3.75percent, although expected,was the first change sinceJune 2009 (which saw adecrease of 25 bp). More-over, it was first hike sinceJune 2008.

The latest move is likelyto be the first in a series ofrate hikes, as data from theeconomy seems to show thata broader change in mone-tary policy is necessary. Infla-tion remains at over threepercent, while other publica-tions indicate that it mightcontinue to build. W e canexpect a second increasesome time in Q1.

The z∏oty remained stableon the news, however, sincethe hike had already been dis-counted by investors. Butnews from China createdmore volatility for the curren-

cy. Despite a fall in inflation,which still remains high,China’s 2010 GDP grewabove expectations. Thismeans the P eople’s Bank ofChina will likely take furtherprecautions to offset inflation.

On the other hand, newsfrom the US calmedinvestors. Unemploymentclaims were lower than ex-pected, while existing homesales exceeded forecasts.Moreover, it seems that suc-cessful bond auctions incountries on the EU’s eco-nomically troubled peripherycaused the euro to regain lostground.

The EUR/USD contin-ued its upward course at theend of last week, reaching$1.35 ($1.32 on Monday),while the z∏oty remained sta-ble against the euro, atz∏.3.86, and has kept gainingagainst the US dollar. ●

Tomasz Jerzyk, technical analyst DM BZ WBK SA

Adam Narczewski, X-TradeBrokers Dom Maklerski SA

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Major indices

Top 5 Closing % change (week) 52-week high 52-week lowOPTIMUS 4.10 28.93 4.10 1.15HERMAN 1.50 25.00 1.50 0.98CITYINTER 27.90 16.49 31.30 2.19INVESTCON 2.07 16.29 2.48 1.64GROCLIN 15.40 15.36 18.00 10.70

WIG 47,515.37 (January 20 closure)

Change for the week: 0.14% 52-week high: 48,371.02

Change year to January 20: -0.28% 52-week low: 37,322.52

Top 5 Closing % change (week) 52-week high 52-week lowCEZ 137.90 4.95 148.80 118.70CYFRPOLSAT 16.10 4.55 17.30 13.36TVN 17.23 3.98 19.31 13.50PKOBP 42.64 3.37 46.81 35.06PEKAO 175.90 3.23 196.50 148.30

Bottom 5 Closing % change (week) 52-week high 52-week lowMEDIATEL 8.85 -16.11 14.70 7.80INTERSPORT 4.31 -11.86 6.40 4.31GTC 21.89 -10.65 25.00 20.25TECHMEX 0.34 -10.53 2.30 0.27CELTIC 19.45 -9.45 72.00 19.10

Bottom 5 Closing % change (week) 52-week high 52-week lowGTC 21.89 -10.65 25.00 20.25POLIMEXMS 3.73 -4.36 5.29 3.73ASSECOPOL 54.20 -3.21 60.50 49.24PKNORLEN 46.11 -3.21 49.00 31.05KGHM 175.00 -2.78 85.60 188.90

WIG20 2,726.25 (January 20 closure)

Change for the week: 0.03% 52-week high: 2,794.58

Change year to January 20: -1.03% 52-week low: 2,173.25

mWIG40 2,834.56 (January 20 closure)

Change for the week: -0.25% 52-week high: 2,849.41

Change year to January 20: 0.96% 52-week low: 2,213.51

sWIG80 12,665.80 (January 20 closure)

Change for the week: 1.89% 52-week high: 12,700.49

Change year to January 20: 3.40% 52-week low: 10,980.45

NewConnect 61.56 (January 20 closure)

Change for the week: 0.24% 52-week high: 64.39

Change year to January 20: -2.92% 52-week low: 54.52

WIG-Banki 6,839.55 (January 20 closure)

Change for the week: 2.48% 52-week high: 7,262.73

Change year to January 20: -1.76% 52-week low: 5,440.90

DJIA11,820.41 (Jan 20 close)

0.88% (for the week)

CHANGE: 2.10%

(year to Jan 20)

52-week high: 11,922.90

52-week low: 9,596.04

NASDAQ2,706.76 (Jan 20 close)

-0.99% (for the week)

CHANGE: 1.12%

(year to Jan 20)

52-week high: 2,766.17

52-week low: 2,061.14

S&P5001,279.14 (Jan 20 close)

-0.24% (for the week)

CHANGE: 1.71%

(year to Jan 20 )

52-week high: 1,296.06

52-week low: 1,010.91

FTSE1005,871.62 (Jan 20 close)

-2.42% (for the week)

CHANGE: -0.48%

(year to Jan 20 )

52-week high: 6,090.50

52-week low: 4,790.00

DAX7,024.08 (Jan 20 close)

-0.62% (for the week)

CHANGE: 0.73%

(year to Jan 20 )

52-week high: 7,165.00

52-week low: 5,433.02

NIKKEI22510,439.73 (Jan 20 close)

-1.38% (for the week)

CHANGE: 0.85%

(year to Jan 20 )

52-week high: 11,408.20

52-week low: 8,807.41

world stock indices

22.1

2

23.1

2

27.1

2

28.1

2

29.1

2

30.1

2

31.1

2

03.0

1

04.0

1

05.0

1

07.0

1

10.0

1

11.0

1

12.0

1

13.0

1

14.0

1

17.0

1

18.0

1

19.0

1

20.0

146,000

46,600

47,200

47,800

48,400

49,00022

.12

23.1

2

27.1

2

28.1

2

29.1

2

30.1

2

31.1

2

03.0

1

04.0

1

05.0

1

07.0

1

10.0

1

11.0

1

12.0

1

13.0

1

14.0

1

17.0

1

18.0

1

19.0

1

20.0

12,600

2,640

2,680

2,720

2,760

2,800

22.1

2

23.1

2

27.1

2

28.1

2

29.1

2

30.1

2

31.1

2

03.0

1

04.0

1

05.0

1

07.0

1

10.0

1

11.0

1

12.0

1

13.0

1

14.0

1

17.0

1

18.0

1

19.0

1

20.0

12,700

2,740

2,780

2,820

2,860

2,900

22.1

2

23.1

2

27.1

2

28.1

2

29.1

2

30.1

2

31.1

2

03.0

1

04.0

1

05.0

1

07.0

1

10.0

1

11.0

1

12.0

1

13.0

1

14.0

1

17.0

1

18.0

1

19.0

1

20.0

112,000

12,160

12,320

12,480

12,640

12,800

22.1

2

23.1

2

27.1

2

28.1

2

29.1

2

30.1

2

31.1

2

03.0

1

04.0

1

05.0

1

07.0

1

10.0

1

11.0

1

12.0

1

13.0

1

14.0

1

17.0

1

18.0

1

19.0

1

20.0

161.0

61.6

62.2

62.8

63.4

64.0

22.1

2

23.1

2

27.1

2

28.1

2

29.1

2

30.1

2

31.1

2

03.0

1

04.0

1

05.0

1

07.0

1

10.0

1

11.0

1

12.0

1

13.0

1

14.0

1

17.0

1

18.0

1

19.0

1

20.0

1

6,600

6,700

6,800

6,900

7,000

7,100

Other indices

JANUARY 24-30, 2011TTHHEE LLIISSTT20 www.wbj.pl

Five Star Hotels in PolandRanked by number of rooms

Book of Lists is a comprehensive, detailed and constantly updated guide to more than 2,000 companiesoperating in the Polish market. Key enterprises are divided by sector into more than 65 ranking lists thatinclude information such as the names of top managers , major clients, activities, the number of employees,completed projects and full contact details . This week’s edition examines five star hotels in Poland.For more information about Book of Lists contact Joanna Raszka, tel. 22 639–8567 ext. 119; jraszka@valkea.com

Bookof Lists

Rank

HotelAddressTel./FaxE-mailWeb page

Tota

l num

ber o

f roo

ms

/W

heel

chai

r acc

essi

ble

room

s /

Num

ber o

f sui

tes

Num

ber o

f: Co

nfer

ence

room

s /

Seat

s in

all

mee

ting

room

s /

Seat

s in

larg

est m

eetin

g ro

om /

Max

imum

exh

ibiti

on a

rea

(sqm

)Rates including

breakfast: Single /Double /

Suite

Num

ber o

f res

taur

ants

/N

umbe

r of b

ars,

caf

eter

ias

and

pubs

Indo

or s

wim

min

g po

ol /

Outd

oor s

wim

min

g po

ol

Saun

a /

Tann

ing

faci

litie

s

Busi

ness

cen

ter /

Curr

ency

exc

hang

e

New

ssta

nd/S

ouve

nirs

/Be

auty

par

lor

Non

-sm

okin

g ro

oms

/Ai

r-con

ditio

ning

Guar

ded

park

ing

/Un

derg

roun

d pa

rkin

g

Inte

rnet

acc

ess:

LA

N /

Dial

-up

Other

Number ofemployees /

Yearfounded

Manager /Title

1

Warsaw Marriott HotelAl. Jerozolimskie 65/79, 00-697 Warsaw22 630-6306/22 830-0311mail@marriott.com.plwww.marriotthotels.com/wawpl

518WNDWND

111,652700

-

z∏.671.4z∏.755.4

-

53

✓-

✓✓

✓✓

✓✓

✓✓

-✓

✓- WND WND

1989Albert HelmsGeneral Director

2

The Westin WarsawAl. Jana Paw∏a II 21, 00-854 Warsaw22 450-8000/22 450-8111warsaw@westin.comwww.westin.com

357WND

4

11WND560

1,294

WNDWNDWND

11

--

✓-

✓-

✓-

✓✓

-✓

✓- Safe in each room; cable TV WND

2003Stephan Sieberg

General Director

3

Sheraton Warsaw Hotelul. B. Prusa 2, 00-493 Warsaw22 450-6100/22 450-6200warsaw@sheraton.plwww.sheraton.pl

326WND

24

12WND650

1,163

WNDWNDWND

42

--

✓-

✓-

✓-

✓✓

-✓

✓WND Safe in each room; cable TV; ATM WND

1996Thomas Schoen

General Director

4

InterContinental Warszawaul. Emilii Plater 49, 00-125 Warsaw22 328-8888/22 328-8889warsaw@ihg.comwww.warsaw.intercontinental.com

308521

13784414

1,100

WNDWNDWND

32

✓-

✓✓

✓-

✓✓

✓✓

✓✓

✓✓

WND 2502003

Christian HenkemeierGeneral Director

5

Sofitel Warsaw Victoriaul. Królewska 11, 00-065 Warsaw22 657-8011/22 657-8057H3378@sofitel.comwww.sofitel-victoria-warsaw.com

290353

151,170700800

€80-250€100-270€115-285

22

✓-

✓-

✓-

✓✓

✓✓

-✓

✓-

Web Radio; flower shop; free wirelessinternet access throughout the hotel

1781976

Jean-MichelLathuilliereGeneral Director

6

Hyatt Regency Warsawul. Belwederska 23, 00-761 Warsaw22 558-1234/22 558-1235warsaw.regency@hyatt.comwww.warsaw.regency.hyatt.com

231319

13637352120

€108-248.4€156.6-297 €237.6-378

11

✓-

✓-

✓✓

✓✓

✓✓

✓✓

✓- Casino; hairdresser; flower shop 170

2002Josef Kral

General Director

7

Sheraton Kraków Hotelul. PowiÊle 7, 31-101 Kraków12 662-1000/12 662-1100krakow@sheraton.comwww.sheraton.com/krakow

22438

8422300310

z∏.995-1,180z∏.1,055-1,255z∏.1,265-3,965

22

✓-

✓-

✓✓

✓-

✓✓

✓✓

-✓

Link@Sheraton; club floor; concierge 1582004

Dagmar ZechmannGeneral Director

8

Sofitel Wroc∏aw Old Townul. Êw. Miko∏aja 67, 50-127 Wroc∏aw71 358-8300/71 358-8710h5345@accor.comwww.sofitel-wroclaw.com

190115

11425250147

z∏.884z∏.969z∏.2380

2WND

-✓

✓✓

✓-

-✓

✓✓

✓✓

✓- WND 73

2001Loic Boichot

WND

9

Sheraton Sopot Hotel, ConferenceCenter & Spaul. Powstaƒców Warszawy 10, 81-718 Sopot58 767-1000/58 767-1001sopot@sheraton.comwww.sheraton.pl/sopot/

18227

101,209650

1,000

WNDWNDWND

23

✓-

✓-

✓-

-✓

✓✓

✓✓

✓✓

Safe in each room; cable TV WND2008

Iva TrifonowGeneral Director

10

Radisson Blu Hotel, Krakówul. Straszewskiego 17, 31-101 Kraków12 618-8888/12 618-8889info.krakow@radissonblu.comwww.krakow.radissonblu.com/hotel-krakow

177519

8313150134

€130-212€130-212€300-413

21

--

✓-

✓✓

✓✓

✓✓

✓✓

✓✓

Free internet access; hotel taxi; two -level underground parking; public

transport stops near the hotel; ParkPlanty near the hotel; view of the

Wawel Castle and the Old City fromthe hotel windows; Surf&Turf buffet;

Grab&Run breakfast; Super Breakfast;100% Guest Satisfaction Guaranteeconcept; bicycles available to guests

892003

Nino D. RosenlundGeneral Manager

11

Le Meridien Bristolul. Krakowskie PrzedmieÊcie 42/44, 00-325 Warsaw22 551-1000/22 625-2577bristol@lemeridien.comwww.lemeridien.pl

174231

10620180

WND

z∏.1,100-1,360z∏.1,100-1,360z∏.1,480-7,500

12

✓-

✓✓

✓-

✓✓

✓✓

--

WNDWND WND WND

1991Michael Goerdt

General Director

12

Sheraton Poznaƒ Hotelul. Bukowska 3/9, 60-809 Poznaƒ61 655-2000/61 655-2001gss.poznan@sheraton.comwww.sheraton.pl/poznan

167313

6292200350

€90-315€105-340 €382

22

✓-

✓-

✓-

✓-

✓✓

-✓

✓✓

Safe in each room; cable TV 1242006

Marco FoelskeGeneral Director

13

Crown Piast Hotel & Parkul. Radzikowskiego 109, 31-342 Kraków12 683-2600/12 683-2665info@hotelpiast.plwww.hotelpiast.pl

164215

8650300100

€70€88€174

WND1

--

✓-

✓-

✓-

✓✓

✓-

✓- WND WND

1991Renata Sztajer

Director

14

Radisson BLU Hotel Wroc∏awul. Purkiniego 10, 50-156 Wroc∏aw71 375-0000/71 375-0010reservations.wroclaw@radissonblu.comwww.radissonblu.com/hotel-wroclaw

15824

9410140126

From €70From €85From €150

11

--

✓-

✓✓

--

✓✓

-✓

✓✓

Free internet access 752002

Martin ManteGeneral Director

15

Holiday Inn Kraków City Centerul. Wielopole 4, 31-072 Kraków12 619-0000/12 619-0005BC@hik.krakow.plwww.hik.krakow.pl

154230

521050206

WNDWNDWND

11

--

--

✓✓

✓-

✓✓

✓✓

✓-

Internet access included in the room;free access to MiniGym

802001

Shmariahu YossefWircer

General Director

Amenities

JANUARY 24-30, 2011 TTHHEE LLIISSTT www.wbj.pl 21

Notes: Notes: NA = Not Applicable, NR = Not Rank ed, WND = Would Not Disclose. Research forThe List was done in November 2010. Number of employees and ownership structure are as of Octo-ber 2010 unless stated otherwise. All information pertains to the companies’ activities in P oland. Com-panies not responding to our survey are 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, omi s-sions and typographical errors may occur. Corrections or additions to The List should be sent, on official letterhead, to Warsaw Business Journal, attn.Joanna Raszka, ul. Elblàska 15/17, 01-747 Warsaw, via fax to (48-22) 639-8569, or via e -mail to wbjbol@wbj.pl. Copyright 2010, Valkea Media SA. TheList may not be reprinted or reproduced in whole or in part without prior written permission of the publisher . Reprints are available.

Rank

HotelAddressTel./FaxE-mailWeb page

Tota

l num

ber o

f roo

ms

/W

heel

chai

r acc

essi

ble

room

s /

Num

ber o

f sui

tes

Num

ber o

f: Co

nfer

ence

room

s /

Seat

s in

all

mee

ting

room

s /

Seat

s in

larg

est m

eetin

g ro

om /

Max

imum

exh

ibiti

on a

rea

(sqm

)

Rates includingbreakfast:

Single /Double /

Suite

Num

ber o

f res

taur

ants

/N

umbe

r of b

ars,

caf

eter

ias

and

pubs

Indo

or s

wim

min

g po

ol /

Outd

oor s

wim

min

g po

ol

Saun

a /

Tann

ing

faci

litie

s

Busi

ness

cen

ter /

Curr

ency

exc

hang

e

New

ssta

nd/S

ouve

nirs

/Be

auty

par

lor

Non

-sm

okin

g ro

oms

/Ai

r-con

ditio

ning

Guar

ded

park

ing

/Un

derg

roun

d pa

rkin

g

Inte

rnet

Acc

ess:

LA

N /

Dial

-up

OtherNumber of

employees /Year founded

Manager /Title

16

Radisson Blu Hotel Gdaƒskul. D∏ugi Targ 19/ Powroênicza, 80-828 Gdaƒsk58 325-4444/58 325-4455info.gdansk@radissonblu.comwww.radissonblu.com/hotel-gdansk

12549

6260200165

€109-149€130-174€178-214

11

--

✓-

✓✓

--

-✓

-✓

✓- Fitness Center WND

2009Maciek Miazek

General Director

16

Sofitel Grand Sopotul. Powstaƒców Warszawy 12/14, 81-718 Sopot58 520-6000/58 520-6099H3419-AM@sofitel.comwww.sofitel.com

12522

5460240590

€ 242.5-328.5€ 265-351€ 355-477.5

11

✓-

✓-

✓-

-✓

✓✓

✓-

✓- - WND

1927Patrick Carabin

General Director

18

Monopolul. Dworcowa 5, 40-012 Katowice32 782-8282/32 782-8283monopol@hotel.com.plwww.lhr.com.pl

10553

3220120214

z∏.490z∏.580z∏.960

22

✓-

✓✓

✓-

-✓

✓✓

✓✓

✓✓

Heated floor in the bathroom;discounts at restaurants for hotel

guests; 10% discount on purchasesat Vinoteca

WND2003

Roman DembekDirector

19

Hotel SPA Dr Irena Eris WzgórzaDylewskieul. Wysoka WieÊ 22, 14-100 Ostróda89 647-1111/89 647-1000wzgorza@hotelspa.plwww.drirenaerisspa.com

9017

3200100300

From €132 From €150From €275

22

✓-

✓-

✓-

✓✓

✓✓

✓✓

✓- WND 160

2006Krzysztof Kaczmarek

Director

20

Hotel Sympozjum & SPAul. Kobierzyƒska 47, 30-363 Kraków12 261-8600/12 261-8799hotel@sympozjum.com.plwww.sympozjum.com.pl

7525

7600300274

€50-110 €60-140€125-215

11

✓-

✓-

-✓

✓✓

✓✓

--

✓- SPA; WiFi; unguarded parking 63

2004Marek Tomczyk

General Director

21

Hotel Rezydent w SopociePl. Konstytucji 3 Maja 3, 81-704 Sopot58 555-5800/58 555-5801rezerwacja@hotelrezydent.com.plwww.hotelrezydent.com.pl

6311

28080

WND

WNDWNDWND

1-

--

--

--

✓✓

✓✓

✓-

✓- WND WND

2001El˝bieta Malczewska

General Manager

22

Mamaison Hotel Le Regina Warsawul. KoÊcielna 12, 00-218 Warsaw22 531-6000/22 531-6001recepction.leregina@mamaison.comwww.mamaison.com/leregina

5823

2140100

-

€213-246€233-266€495-527

11

✓-

✓-

✓✓

--

✓✓

--

✓- Free WiFi 62

2004Krzysztof Olszewski

General Manager

23

Hotel Dwór Oliwskiul. Bytowska 4, 80-328 Gdaƒsk58 554-7000/58 554-7010hotel@dworoliwski.plwww.dworoliwski.pl

57213

2240140145

€155€170€265

13

✓-

✓-

✓-

✓✓

✓✓

✓-

WNDWND WND WND

2002Izabela Wilczyƒska

Director

24

Grand Hotel Krakówul. S∏awkowska 5/7, 31-014 Kraków12 421-7255/12 421-8360hotel@grand.plwww.grand.pl

5519

9365130574

€250€280

€350-1,500

12

--

✓-

✓-

✓-

✓✓

✓-

✓-

WiFi in conference rooms, restaurant,cafeteria and at reception

WND1887

Robert Mrzyg∏ódWND

25

Litworul. Krupówki 40, 34-500 Zakopane18 202-4200/18 202-4205rezerwacja@litwor.plwww.litwor.pl

531-

28060-

From €75 From €90

-

11

✓-

✓✓

✓-

-✓

✓✓

✓✓

✓- - 40

1999Szymon Kukulski

WND

26

Hotel Staryul. Szczepaƒska 5, 31-011 Kraków12 384-0808/12 384-0809stary@hotel.com.plwww.stary.hotel.com.pl

4617

2190160180

€149-200€170-225€299-575

22

✓-

✓-

✓-

--

✓✓

✓-

✓✓

WiFi 502006

Monika LikusDirector

27

Hotel Rialtoul. Wilcza 73, 00-670 Warsaw22 584-8700/22 584-8701info@rialto.plwww.rialto.pl

33111

24030-

€225€257€524

11

--

✓-

✓✓

--

✓✓

✓-

✓- WND 37

2003Jacek Szcz´sny

General Director

28

BoHema Hotel & SPAul. Konarskiego 9, 85-066 Bydgoszcz52 560-0602/52 581-0088rezerwacja@hotelbohema.plwww.hotelbohema.pl

2013

16060-

z∏.440z∏.650z∏.800

21

✓-

✓-

✓WND

-✓

✓✓

✓-

✓WND SPA; Weranda restaurant WND

2008J. J. Franczak

WND

NR

City Park Residence Poznaƒul. Wyspiaƒskiego 26a, 60-751 Poznaƒ61 221-8400/61 221-8402residence@citypark.com.plwww.cityparkresidence.com.pl

WNDWND

88

4290120300

WNDWND€105

1WND

✓-

✓✓

-✓

✓✓

✓✓

✓✓

✓- Jacuzzi; ice cave; paid fitness 30

2008Magdalena Strój

WND

NR

Radisson BLU Centrum Hotelul. Grzybowska 24, 00-132 Warsaw22 321-8888/22 321-8889info.warsaw@radissonblu.comwww.radissonblu.com/hotel-warsaw

WNDWNDWND

WNDWNDWNDWND

WNDWNDWND

WNDWND

WNDWND

WNDWND

WNDWND

WNDWND

WNDWND

WNDWND

WNDWND WND WND

2002Olof KarissonGeneral Director

Amenities

JANUARY 24-30, 2011EENNTTEERRTTAAIINNMMEENNTT22 www.wbj.pl

“Metro,” unarguably the mostfamous musical production inPoland, is getting ready to cel-ebrate its 20 th anniversary.The first private theater pro-duction of the post-communistperiod, it wowed its first audi-ence in 1991 at Teatr Dramaty-czny.

Twenty years later, themusical – staged at StudioBuffo since 1997 – is returningto its original home for a shortrun of anniversary shows.

If you’ve ever been privy to adiscussion of Warsaw’s theaterscene, the chances are you’veheard of “Metro.” It’s a loosenarrative about bohemianyoungsters living in subway tun-nels set to thunderous music.

The show even made itsway to the bright lights ofBroadway. The Big Apple didnot take to it, though – a paltry13 performances were heldbefore its run ended. A 1992review in The New York Timesbegan: “What’s the P olishword for fiasco?”

In hindsight, the dim recep-tion of “Metro” was pre-dictable. The show is no classicby Broadway standards – it’s

chaotic, involving a mishmashof styles and a so-so story. Itstranslation into “less-than-col-loquial English” probably didnot help either.

“Metro” has earned a littleleeway, though. F or all itsflaws, the show is a fine artifactof a bygone age, when Polandwas flush with the exuberanceof newfound freedom. Theshow is no longer performedin English, but that’s probablyfor the best. And the story is

shallow enough that eventhose with even an elementarygrasp of Polish can follow theaction (though a little pre-reading about the show mighthelp).

See the anniversary showsat T eatr Dramatyczny (Jan-uary 28 – February 1) or catchit back at Studio Buffo inFebruary.

EEBBBBFor more info, log ontowww.studiobuffo.pl

It’s nigh on impossible to writea proper review of “BlackSwan” without sounding a lit-tle pretentious. After all, theplot takes place within a balletcompany which is readying acharged production of P yotrTchaikovsky’s iconic “SwanLake.” Add all the Oscar talkand Natalie Portman’s recentGolden Globe win, and thefilm seems like classic haughtycouture.

So discussing the film’s sub-tle performances and rich sym-bolism requires the use ofsome highfalutin’ language.But fear not, ballet haters.“Black Swan” is unlikely toleave you yearning for an inter-

mission. Tchaikovsky’s master-piece is integral to the film – atturns lavish backdrop and sin-ister plot device – but centerstage is dominated by a disqui-eting psychological thriller.

The main character, NinaSayers (Portman), is a youngdancer obsessed with perfec-tion. She is a fragile creaturewhose grasp of realitybecomes increasingly tenuousas the demanding double roleof White Swan/Black Swanconsumes her.

Dichotomy is the order ofthe day. White and black, sex-ual repression and passion,innocence and malevolence –director Darren Aronofskymixes these adroitly, creating aportrait of a woman descend-ing into madness. Or perhapstranscending sanity.

Is Portman deserving of allthe buzz? W ithout a doubt.Her performance beautifully

conveys the emotional andphysical demands of thedancer, of a life whichembraces pain and austerity forthe sake of art. Indeed, P ort-man inhabits the role so thor-oughly that you could almostforget her laughably woodenperformances in the second“Star Wars” trilogy. Almost.

The supporting cast is alsolaudable, particularly BarbaraHershey as Nina’s creepy, re-pressed mother. And MatthewLibatique, who frequently col-laborates with Aronofsky andSpike Lee, provides lush, luridcinematography.

A funny film this is not. Butits dark intensity lingers in themind long after you exit thecinema.

EE BBllaakkee BBeerrrryy“Black Swan” opened in cine-mas around the nation last Fri-day. Check local listings forshow times

Musicals

Notes from an underground

Film

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“Metro” celebrates its 20th anniversary this year

“Black Swan”Drama/thriller. USA. Dir.Darren Aronofsky, withNatalie Portman, VincentCassel and Mila Kunis

“Metro”Jan 28 – Feb 1Teatr Dramatyczny

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Portman’s performance in “Black Swan” earned her a Golden Globe

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Centre for ContemporaryArt at Ujazdowski Castle ul. Jazdów 2www.csw.art.pl

Czarna Gallery ul. Marsza∏kowska 4www.czarnagaleria.art.pl

Galeria 022, DAP, Lufcik ul. Mazowiecka 11awww.owzpap.pl

Galeria 65 ul. Bema 65www.galeria65.com

Galeria Appendix 2 (Praga)ul. Bia∏ostocka 9www.appendix2.com

Galeria Asymetria ul. Nowogrodzka 18awww.asymetria.eu

Galeria Foksal ul. Foksal 1-4www.galeriafoksal.pl

Galeria Milano Rondo Waszyngtona 2A (Praga)www.milano.arts.pl

Galeria Schody ul. Nowy Âwiat 39www.galeriaschody.pl

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

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

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

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

Królikarnia National Galleryul. Pu∏awska 113awww.krolikarnia.mnw.art.pl

Le Guern Galleryul. Widok 8, www.leguern.pl

Museum of IndependenceAleja SolidarnoÊci 62www.muzeumniepodleglosci.art.pl

National Museum in Warsaw Al. Jerozolimskie 3www.mnw.art.pl

Pracownia Galeriaul. Emilii Plater 14www.pracowniagaleria.pl

Rempex Art and Auction Houseul. Karowa 31www.rempex.com.pl

Royal CastlePl. Zamkowy 4www.zamek-krolewski.com.pl

Simonis Galleryul. Burakowska 9www.simonisgallery.com

State ArchaeologicalMuseum in Warsawul. D∏uga 52 (Arsena∏) www.pma.pl

Historical Museum of Warsaw Old Town Square 28-42www.mhw.pl

History Meeting House of Warsaw ul. Karowa 20www.dsh.waw.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

JANUARY 24-30, 2011 LLAASSTT WWOORRDD www.wbj.pl 23

HHoommee iiss wwhheerree tthhee ooccttooppuuss iissTech Eye

Techeye has been spending a lot oftime at home of late. P robablybecause every time we exit the apart-ment our psycho neighbor tries tostab us in the face with a pitchfork.Getting to and from work requires“Matrix” style acrobatics combinedwith caltrops, marbles, grease andother tricks to hobble the maniac.

We’d call the cops, but for one lit-tle thing – the guy’s anger is perhapsa little deserved. Maybe.

It all started innocently, you see.We’d been sitting in our workshop,tooling about with a new inventioncalled the “Crotch Sizzler 2000,”which is essentially a smallflamethrower with a camera affixedjust behindthe igniterand a3D

monitor mountedabove the pistolgrip. It’s designedas a self-defenseproduct to pro-tect against theconstruction wor-kers who whistleand make crudecomments whenTecheye walks by.

Pull the trig-ger and a smallgout of flameshoots out; anon-board com-puter calculatesthe proper ignit-

er-to-crotch trajectory and adjustsaim. The 3D monitor is just there tohelp you enjoy the moment.

Anyway, upon completing theinvention we ran off to test it at thenearest construction site. In the heatof the moment, though, we ransmack into our neighbor, accidental-ly triggering the “Crotch Sizzler2000.”

To our joy, it worked perfectly.Sadly our neighbor, smolderingbelow the belt, did not share oursense of triumph.

Sitting in styleSince it looks we’re going to bestuck in the house for a while, Tech-eye has decided to do some redeco-rating. Topping our shopping list isSpanish artist Maximo Riera’sOctopus Chair, the first in a newseries known as the Animal Chairs.It’s hard to say how comfortablethis is – it’s obviously more sculp-ture than practical furniture –but we’ve always been a suckerfor cephalopod-inspired art.

Mr Riera’s website offersplenty of metaphysically titillat-ing descriptions of the chair – a

piece which apparently “establish-es the affair between the animal,chair and the human as one singleentity” – but there’s a dearth ofspecifics. W e’ve gleaned that theOctopus Chair is a one-of-a-kind

item and it won’t be cheap – five dig-its is probably a good guess. Mean-while, an email asking if the artistwould be willing to swap for a used-once “Crotch Sizzler” has met withno response.

Another cool bit of furniture isAcousticom’s Sound Egg, a chairwe’d gladly put in our rumpus roomif we had one. It suffers from a dis-tinct lack of tentacles, but risesabove this handicap byincorporating a 10-inch subwooferunder the seatfor extremebutt rumblage.Careful though – too much basscould cause numbness in your lowend.

The Sound Egg boasts a 5.1 sur-round-sound speaker system, funkyacoustic foam (in 11 colors) and aplastic seat. Optional extras includea “soft vinyl seat” (suggesting thestandard seat may be a little punish-ing) and a monitor arm.

The 5.1-capable Sound Egg costs$1,850 (z∏.5,315), with the seatupgrade and the arm adding$325 (z∏.933) and $360(z∏.1,034) to that, respective-ly.

Things to splash out on Next up for our home’s late-winter makeover isPoshTots’ F antasy Coach.This fantastical bed is hand-crafted from wood andfiberglass, with an internaldiameter of around six feet.PoshTots’ sales pitch spins itas a product for little girls,but that shortchanges itspotential in our opinion.Seriously, what grown manwouldn’t want to watch a bitof footie in his very own Fan-tasy Coach?

A destitute grown man,that’s who. P ricing for thebed starts at $47,000(z∏.134,797), with the figure

rising depending on interior décorchoices. Keep in mind too that Cin-derella has probably reported thisthing stolen, meaning a vengefulfairy godmother could comea-knockin’.

The final item on ourrenovation wish-listcomes from thewacky

island nation known as Japan. Whathave they come up with now, youask? A vending machine full of uni-corns and rainbows? A robot thatties shoelaces, fetches beer and callsyou a very naughty boy?

Nothing so pedestrian. No, thistime legendary Japanese firm Segahas revolutionized the bathroomexperience with its seminal T oyletgaming platform, offering bored, full-

blad-dered men the

chance to play one of fourgames while they relieve themselves.Pricing and availability are shroudedin Japanese-phrased mystery, but thisis probably aimed squarely at thecommercial sector, at least for now.

Without going into too muchdetail, the evocatively titled gamesare “Manneken Pis,” “Graffiti Eras-er,” “The North Wind and Her” andthe multiplayer “Milk from Nose.”Try not to think about that last onetoo much. ●

Ever accidentally set your neighbor a-sizzlin’? Let us know: techeye@wbj.pl

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