VOLUME 17, NUMBER 1 • JANUARY 10-16, 2011 . z∏.12.50 (VAT 8% included) . ISSN 1233 7889 INDEX-RUCH-332-127

TTooddaayy’’ss ffiixx,, ttoommoorrrrooww’’ss ccoossttThe government’s short-sighted pension reformplan may well hurt public finances in the longterm 3,11

Since 1994 . Poland’s only business weekly in English

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Upwardly mobile marketOwnership shake-upsand a battle to upgradeinfrastructure meanthe mobile networkoperator marketis changing rapidly 12-13

CCuurrrreennccyy iinntteerrvveennttiioonnIt looks as though the state intervened inthe currency market at the end of 2010 to avoid austerity measures 10

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A bank tax “will appear,maybe even this year,”says the finance minister

FMCG giant Eurocash hasfinally come to a dealwith Emperia

Fiat is banking heavily onthe new Lancia vehicles itwill produce in Tychy

News . . . . . . . . . . . . . . . . . . . . . . .2-4Industry News . . . . . . . . . . . . . . . . .5Interview . . . . . . . . . . . . . . . . . . . .6-7Listed Firms . . . . . . . . . . . . . . . . . . .9Business Environment . . . . . . . . .10Opinion . . . . . . . . . . . . . . . . . . . . . .11Cover Story . . . . . . . . . . . . . . . .12-13Business Community . . . . . . . . . .14Lokale Immobilia . . . . . . . . . . .15-18Markets . . . . . . . . . . . . . . . . . . . . . .19The List . . . . . . . . . . . . . . . . . . .20-21Entertainment . . . . . . . . . . . . . . . .22Last Word . . . . . . . . . . . . . . . . . . . .23

In this issue

REAL ESTATELokale Immobilia

• Construction challenges• Promenada sold• National Stadium

gets a roof 15-18

Audit & accountingcompanies 20-21

Voice of thePeople’s PartyEugeniusz K∏opotek ofthe Polish People’sParty talkscontemporary politicsand future elections

6-7

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will hit shelvesin March 2011!

A GUIDE TOPOLISH EXPORTwill hit shelvesin March 2011!

For advertising and promotion opportunities contact: Agnieszka Brejwo: abrejwo@wbj.pl; (+48) 639-85-68, ext. 226

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JANUARY 10-16, 2011NNEEWWSS2 www.wbj.pl

Rates rise inJanuary? The governor of theNational Bank of Polandsaid last week thatPoland should raiseinterest rates to“initiate zlotyappreciation,” to helpoffset inflationarypressures. “I definitelybelieve that ratesshould be raised pre-emptively, not just incase,” Marek Belka toldReuters. The newshelped the z∏oty to postits largest gains innearly two months. Arate rise is widelyanticipated in Q1,potentially this month.

Poland to waitout euro crisisPoland will wait until theeuro zone settles downbefore it makes anymoves toward enteringthe 17-member bloc,Finance Minister JacekRostowski said lastweek. Asked byreporters if Polandintended to join the eurozone, Minister Rostowskisaid, “I think it’s bestthat we sort out some ofour problems first, butwe are very confidentthat we will.”

Nord Streampipeline worryThe section of the NordStream gas pipeline thatcould potentially obstructthe entry of larger shipsinto the Polish port ofÂwinoujÊcie has alreadybeen laid, Rzeczpospolitareported. In June 2010,Polish authorities filedan appeal with theGerman Hydrographicand Marine Agency inHamburg as to theplanned depth of thepipeline, which connectsGermany and Russia viathe Baltic Sea, but theyhave so far received noresponse. The Polishside still has time toconvince the investors toplace the pipelinedeeper, but according tothe paper’s sources,there is not much roomfor movement.

Gasoline pastz∏.5 markDrivers in P∏ock andWarsaw were payingz∏.5.09 for a liter of 95-octane gasoline lastweek. At the beginningof December, following afirst round of increases,the average price of 95-octane in Poland wasz∏.4.75. ●

AIP 3 Investment ................18

Allcon Investment ................18

Alma ......................................16

American Chamber of

Commerce in Poland ..........14

Atrium European

Real Estate ..........................16

Audytel ..................................12

Bank Gospodarstwa

Krajowego ......................10, 14

Bank Zachodni WBK ..........10

Bomi ........................................9

British Polish Chamber of

Commerce ............................14

BSC Drukarnia

Opakowaƒ ..........................4, 9

Cadbury ..................................5

Carpathian PLC ..................16

CB Richard Ellis ..................17

CEEC Research ..................17

Centrum Medyczne

Enel-Med ..............................14

Cinema City ..........................16

Citi Handlowy ........................3

Coface Poland ......................17

Crownway

Investments ..........................17

Cushman &

Wakefield ........................16, 18

Deutsche Telekom ..............12

Domesta ..............................16

Eko Eksport ............................9

Elektrim ................................12

Emperia Holdings ..................9

Ericsson ................................13

Ernst & Young ......................18

Eurocash ................................9

Europejskie Centrum

Odszkodowaƒ ........................9

Fiat ..........................................5

France Télécom ..................12

Goodman Group ..................15

Huawei ..................................13

ING ........................................14

Inpro ......................................16

Intel Technology

Poland ..................................18

Intrall ....................................12

InvestGDA ............................15

Jones Lang LaSalle ............16

KGHM ....................................12

Kodak ....................................23

KPMG ..........................2, 14, 17

Kraft ........................................5

Logan Investments ..............17

Mermaid Properties ............17

Miller, Canfield, W. Babicki, A.

Chelchowski & Partners ....13

Multimedia Polska ..............12

Neinver ..................................18

Norstat ..................................17

NSN ......................................13

Pekaes ..................................15

PKN Orlen ............................12

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

PMR Publications ................17

Polish State

Railways ................................18

Polska Grupa

Energetyczna ........................12

Polska Telefonia Cyfrowa ..12

PZU ..........................................9

RKD Architects ....................17

Ronson

Development ........................16

Sadovaya Group ....................9

SGI Baltis ..............................15

Skanska Property Poland ..18

Strabag ................................18

Studio Architektoniczne

Kwadrat ................................18

SUD Architectes ..................18

Tauron ....................................9

Tempora ................................18

British-Polish Chamber of

Commerce ............................14

French Chamber of

Commerce and Industry in

Poland ..................................14

German-Polish Chamber of

Industry and Commerce ....14

Scandinavian-Polish

Chamber of Commerce ......14

Toshiba ..................................23

Tradis ......................................9

Unibep ..................................15

Vectra ....................................12

Vivendi ..................................12

Vodafone ..............................12

Volvo ......................................14

Warbud ..................................16

Wizz Air ..................................4

WSE ..................................9, 12

Krzysztof Kolberger, arenowned P olish actor andtheater director, died last Fri-day at the age of 60 following a20-year struggle with cancer.

During his 38-year career,Mr Kolberger worked in theNational Theatre in Warsaw aswell as in the capital’sWspó∏czesny and A teneumtheaters. Some of his morememorable roles included“Konrad” in A dam Mick-iewicz’s “Dziady” and“Staƒczyk” in Stanis∏awWyspiaƒski’s “Wesele.”

Poles will also rememberhim for numerous roles in filmsby directors including AndrzejWajda and Krzysztof Zanussi.Recent film work included“Katyƒ” and “P opie∏uszko.

WolnoÊç jest w nas.”Mr Kolberger was well-

known for his interpretationsof poetry and acclaimed recit-ing abilities. In 2005, duringthe period of mourning follow-ing the death of P ope JohnPaul II, he read out the pope’slast will, which he laterdescribed as one of the great-est challenges in his whole act-ing career.

Despite his long illness, MrKolberger never gave up hiswork. “I have known from thevery beginning that I have tolearn to live with it, giving upon as little as possible of what Ihave been doing so far. Thus,in a sense perhaps little haschanged in my life because Icontinued to work. And I still

do because I want to live andin order to live I have towork,” he said in an interviewlast year.

Mr Kolberger was born inGdaƒsk in 1950. In 1972, hegraduated from the StateAcademy of Drama in Warsaw(today the Aleksander Zel-werowicz State Theatre Acad-emy), making his theatricaldebut in the Silesian Theatrein Katowice.

Mr Kolberger had oncebeen married to actress AnnaRomantowska with whom hehad a daughter, the actressJulia Kolberger. In recentyears, he had been in a rela-tionship with journalist ZofiaCzernicka.

AAddaamm ZZddrrooddoowwsskkii

“I have doubts that the Russians are telling thetruth”

Edmund Klich, Poland’s representative in the Smolensk crash investigation,gives his opinion on Russia’s claims that recordings of talk between the air-con-trollers and the crew of President Kaczyƒski’s plane are lost

Quote of the Week

A troubling startWBJ.pl sits down with Bart∏omiej Nowak, executive directorof Warsaw’s Center for International Relations, to discussHungary and P oland’s turns at heading the r otating EUCouncil presidency in 2011

On WBJ.pl

Numbers in the News

Company index

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20 TAX CONGRESSEvent: KPMG’s 1st Taxation & Accounting Congress

– a unique event wholly devoted to changesin taxation and accounting in force sinceJanuary 1, 2011. The congress has beendesigned for CFOs, chief accountants, headsof financial reporting and controlling, andparticipants from other managerial positions.Participation in the congress is free ofcharge. For more information, visit kpmg.pl

21-30 INTERNATIONAL FOOD AND AGRICULTUREFAIR

Event: International Green Week Berlin. The world’sbiggest 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. ww.easteurolink.co.uk/CEE-Investment-and-PPP

January/FebruaryDATELINE

Krzysztof Kolberger (1950-2011)IN THE SPOTLIGHT

Figures in focusGrowing wages, but not everywhereEstimated y/y change in real agricultural income* per worker,2010

Source: Eurostat

z∏.15 billionis the amount that the Treasury expects to earn fromprivatization efforts in 2011, according to the budget

z∏.22.156 billionis how much the Treasury actually took in last year

from privatizations, 88.6% of the planned total

z∏.29.947 billionis how much the Treasury earned last year from

privatizations if initial agreements are factored in,119.79% of the planned total

4% is what some are forecasting for 2011 GDP growth

JANUARY 10-16, 2011 NNEEWWSS www.wbj.pl 3

Pension reform

SShhoorrtt--tteerrmm bbuuddggeett ffiixx ccoouulldd hhuurrtt iinn tthhee lloonngg rruunnA governmentproposal to reducepayments to privatepensions funds couldimprove publicfinances, but only inthe near term

Plans to reduce cash transfersto private pension funds(OFEs) from 7.3 percent to 2.3percent of Polish workers’ paycould have far-reaching conse-quences for financial markets.

Since the implementationof a 1999 pension reform, thetransfer of money to privatepensions funds has caused ashortfall in the payment of cur-rent pensions. A ccording toCiti Handlowy’s estimates, thisshortfall adds significantly tothe fiscal deficit (an amountequivalent to 1.6 to 1.7 percentof GDP in 2010) and publicdebt (approximately 15 per-cent of GDP in 2010).

The government’s proposalcould lower state borrowingneeds by 0.8 percent of GDP in2011 and enable the govern-ment to deal with bigger FXfluctuations without public debtrising above 55 percent of GDP,a threshold that, if crossed,would require the implementa-tion of austerity measures.

An elegy for equity?Shoring up the state’s finances iswidely viewed as the main pur-pose of the proposal. But theoutcome could be less pleasantfor investors and the WSE.

Private pension funds aremajor investors in the WarsawStock Exchange as well as inthe Polish bond market. Thus areduction in their investmentcapacity could mean greateruncertainty and lower stockvalues on the bourse.

Citi Handlowy calculatesthat with the proposed changes,even if OFEs were to increase

the percentage of annual con-tribution transfers invested inequity to 60 percent (comparedto 35 percent in 2010), they willstill spend over z∏.1 billion lessthis year than last.

However, according toMaciej Rapkiewicz, an experton public finances at theSobieski Institute, a think tank,the move should not destabilizethe Polish stock market.

Future pensioners on theother hand, may feel a differ-ence. P rivate pension fundshave posted better returns oninvestments than their state-runpeer, ZUS, ever since the 1999reform.

“The return is approximate-ly 200 percent higher for OFEsthan for ZUS, and also higherthan bank deposits and govern-ment bonds,” said Mr R ap-kiewicz.

Short-term solutionThe money invested by private

pension funds constitutes along-term investment at a timewhen the government is itchingto improve its present debt anddeficit figures.

But the proposed reform islikely to result in a permanentreduction of the importance ofcapital markets in the P olishpension system. A ccording tothe plan, contribution to OFEswill increase to just 3.5 percentin 2017, still less than half of thecurrent amount.

“I understand the currentfiscal situation and wouldaccept a temporary decrease oftransfers [to private funds],”said Wiktor Wojciechowski, aneconomist at the W arsawSchool of Economics and theCivil Development F orumFoundation.

But in his opinion, the dan-ger of the current plan is thatthe bulk of pension benefits willbe dependent on political willrather than on the capital mar-

ket, while failing to provide adurable solution for the publicfinances.

Prime Minister Donald Tuskhas said he would like the

reform to be implemented asearly as April of this year, andanalysts think it likely that theproposal will make it throughthe Sejm. AAlliiccee TTrruuddeellllee

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Politics

Infrastructure ministersurvives no-confidence voteA no-confidence votefailed, but MrGrabarczyk will haveto rebuild confidencein his ministry

Cezary Grabarczyk, Poland’sbeleaguered infrastructureminister, survived a no-confi-dence vote last week, despitecontinuing frustration withthe way his ministry has han-dled winter transport chaos.

One hundred and ninety-two MP s voted to defenes-trate Mr Grabarczyk, but 229MPs from the ruling coalitionbacked him, defeating themotion. A simple majority isneeded to pass a vote of noconfidence.

The motion was put for-ward by the Democratic LeftAlliance, which said that theminister should be heldresponsible for the turmoil inthe railway system caused bynew train schedules imple-mented in mid-December.Many passengers had prob-lems getting informationabout the new schedule asdeparture and arrival timesavailable on the internet dif-fered from those at the trainstations. As a result, therewere huge delays and manypeople spent long hours intransit during and after theChristmas holidays.

The minister was alsoblamed for delays in the roadand highway constructionprogram and for not initiat-ing changes to cumbersome

Polish building laws.Mr Grabarczyk was stout-

ly defended by Prime Minis-ter Donald Tusk, who said hehad refused the infrastruc-ture minister’s offer toresign. The PM said thatwhen it came to buildingroads and highways, his gov-ernment had completed1,048 km of new roads, whilethe two previous govern-ments had built less than halfas many.

“You are the last peoplewho can lash out at MrGrabarczyk. You could aboveall present your own vote ofno confidence, because you

have shown P oles how goodyou are at building roads andhighways,” Mr Tusk stated.

In turn, Jaros∏aw Kaczyƒs-ki, leader of the oppositionLaw and Justice (PiS) party,wasted no time in lambastingMr Tusk and his government.

“This is a scandal and itshows that matters of merithave no meaning whatsoeverin present day Polish politics... I believe P rime MinisterDonald Tusk knows perfectlywell that in fact his wholegovernment should be dis-missed,” he commented afterthe vote.

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Democracy in Belarus

Poland takes proactive stepsto build democracy in BelarusThe government hascalled on the West tofund the Belarusianopposition

In response to the Belarusiangovernment’s crackdown ondissidents after the Decemberpresidential election, P olandhas adopted a unilateral strat-egy aimed at supporting theopposition movement and iso-lating the Lukashenko dicta-torship.

Rather than waiting for abroad response from the EU,Poland has taken steps on itsown to galvanize support fordemocratic activists. Mostrecently, Polish officials haveasked the US to provide fundsfor dissidents, invoking thememory of American aid forPoland’s Solidarity tradeunion during communist rule.

“What comes to mind isthe role that W estern freeinstitutions played in bringingabout freedom to P oland,”Robert K upiecki, P olishambassador to the US, toldthe Associated P ress. “ Andthis is why Belarus needs oursolidarity today.”

A number of countries,including the US, will be invit-ed to a donors conference inWarsaw at the start of Febru-ary in a bid to raise funds fordemocratic activists and oppo-nents of incumbent PresidentAlexander Lukashenko.

Some 700 people, includ-ing seven candidates who ranagainst Mr Lukashenko, werearrested in Minsk at a mass

rally held shortly after the bal-lot. The US and other Westernnations condemned the act ofrepression and have describedthe elections as illegitimate.The US itself has not yetdecided on a policy response.

Poland, however, has beenquick to spell out its own strat-egy, which is aimed at devel-oping civil society in Belarusby fostering mutual connec-tions.

“We want to help our neigh-bors strengthen their Europeanidentity by enabling them tohave more frequent contactwith Poles and other citizens ofthe European Union,” ForeignMinister R ados∏aw Sikorski

told the press, explaining theabolishment of the €20 visa feefor Belarusians traveling toPoland.

Other moves includeextending P oland’s Belaru-sian-language television serv-ice to Belarus and openinguniversities to Belarusian stu-dents banned from studying athome due to their politics.Poland has also established acenter for the Belarusianopposition in Warsaw.

With nearly 80 percent ofthe vote, President Lukashenkowas re-elected for a fourth termin December. He has been inpower since 1994.

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Foreign Minister Rados∏aw Sikorski wants to increaseinteraction between Poles and Belarusians

JANUARY 10-16, 2011NNEEWWSS4

Pole new faceof Victoria’sSecret

Polish model MagdalenaFràckowiak has beenchosen as the face of thespring/summer 2011collection of Victoria’sSecret’s Pink line ofloungewear. The 27-year-old is currently ranked15th among Models.com’sTop 50 Models. Fellowcountrywomen AnjaRubik and AnnaJagodziƒska have alsoappeared in VS shows inthe past two years.

Wizz AirincreasesPolish presenceLow-cost airline Wizz Airflew 4.1 millionpassengers onconnections to and fromPoland in 2010. That’s14% more compared tothe previous year,according to the gazeta.plwebsite. The carrier nowintends to add flights fromGdaƒsk to Stavenger andArhus, and from Poznaƒto Barcelona.

Daring deerrescue Polish firefighters lastweek rescued two deerstranded on ice floes inthe Baltic Sea. One waschased back to land, butrescuers had to braveperilous conditions toreach the other. In a videoof the rescue, four men ina boat are shown pickingtheir way throughfloating ice late in theevening.

40-car pile-up leaves twodead Two people were killedand five hospitalized lastTuesday in an accidentinvolving 40 cars on anice-covered, fog-shrouded stretch of theA4 motorway locatednear the city of Gliwice.Prosecutors have alreadybegun investigating thecauses of the pile-up,which is the thirdaccident to have occurredat the same location inrecent weeks. ●

www.wbj.pl

Hungary’s odd politicshave raised concernsfor its presidency of theEU Council andcomplicated things forPoland

This year has been hailed asthe year of Central Europe,with Hungary heading thesixth-month rotating presiden-cy of the European Councilfrom January 1, followed byPoland in July. But the Hun-garian government, in powersince May, has already drawnbroad criticism.

“Poland will have to workharder, because nobody knowswhat the image of the presi-dency will be after Hungaryfinishes the job,” commentedBart∏omiej Nowak, executivedirector of W arsaw’s Centerfor International Relations.

Perhaps the most contro-versial action of Hungary’s rul-ing center-right party, Fidesz,is a law enacted in late Decem-

ber that tightens the govern-ment’s grip on the media.Although the EU has not offi-cially condemned it, many

voices in Europe claim it con-stitutes a breach of EU laws onpress freedom.

Prime Minister V iktorOrbán’s government has alsobeen pursuing a controversialeconomic policy, increasingtaxes and nationalizing thepension system rather thancutting spending. This hasirked the IMF and severallarge foreign companies, andhas prompted ratings agenciesto significantly downgrade thecountry’s credit rating.

Hungary’s leadership of theEU might even be more pre-carious than that of the CzechRepublic, whose governmentcollapsed in the middle of itspresidency in 2009, Mr Nowaksaid.

But, he said, the P olishadministration is well pre-pared to helm its own presi-dency starting in July.

This is good news, becauseexpectations for the P olishpresidency are high. The size ofthe country, its good economicperformance, successful poli-cies in Europe and improvedrelations with Russia and Ger-many have all raised the stakes.

Nevertheless, the heads ofseveral P olish think tankswarned in a letter publishedrecently in Gazeta W yborczaand The Economist that parlia-mentary elections scheduledfor this autumn, when the Pol-ish presidency will be in fullswing, constitute a seriousthreat.

The letter urged politiciansto pledge not to use the presi-dency as a political tool andwarned against the absence ofministers from EU Councilmeetings to pursue their cam-paign at the national level.

AAlliiccee TTrruuddeellllee

European Union

PPoollaanndd’’ss EEUU pprreessiiddeennccyy aatt rriisskk??

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Off to a rough start?

The Baltic statewelcomes the commoncurrency amidstgloom in the euro zone

On January 1, 2011, Estoniabecame the 17 th country andthe first former Soviet state toadopt the euro. It’s likely thatseveral years will pass beforeanother nation joins the euroclub, but officials and analystswere generally positive aboutthe move.

“The single currency willprovide a stable framework forthe Estonian economy, whichtogether with sound fiscal andmacro-economic polices willcreate the basis for economic

prosperity,” Olli Rehn, Euro-pean commissioner for eco-nomic and monetaryaffairs, said in a state-ment.

Despite thedoubts looming overthe future of thecommon currency,in the long termadopting the eurowill prove a goodmove for Estonia,agreed Adam Czerni-ak, an economist atInvest-Bank.

Estonia’s €14 billionGDP accounts for a mere 0.2percent of the euro zone’seconomy. Because of its size,

Mr Czerniak explained,it makes economic sense

for the country tohave the same cur-

rency as its trad-ing partners.

The Eston-ian kroon hadbeen pegged tothe euro forover a decadeand reformshave righted the

country’s fiscalposition after the

global slowdown.But despite Euro-

pean Commission Presi-dent José Manuel Barroso’s

comment that the event repre-

sented a “strong signal of theattraction and stability that theeuro brings to member states,”the move is not expected toprompt a race towards euroadoption.

Lithuania and L atvia areset to adopt the currency in2014, but bigger CEE coun-tries have avoided setting tar-get dates.

Poland, the Czech R epub-lic and Hungary, all of whichpledged to join the currencywhen entering the EU, arenow far from meeting the nec-essary criteria and are notexpected to do so before thesecond half of the decade.

AAlliiccee TTrruuddeellllee

Smolensk report

Poland pressures Russia on crash probe“No certainty”regarding PresidentKomorowski's plan tovisit Russia in April

Continued wrangling over thepreliminary findings of R us-sia’s official investigation intothe Smolensk crash has castdoubt over P resident Bro-nis∏aw Komorowski’s plan tocommemorate the tragedy onApril 10 in Russia.

Poland’s ambassador inMoscow, W ojciech Zajà-czkowski, had previously toldnews agency Interfax that MrKomorowski intended to be inRussia for the first anniversaryof the crash, in which PresidentLech Kaczyƒski and 95 othersperished.

Asked about this last week,

Thomas Na∏´cz, the presi-dent’s advisor on national his-tory, told daily Gazeta Wybor-cza, “There is still no absolutecertainty.”

“A great deal depends onhow [the investigative team]proceeds with finalizing thedisaster report,” he explained,adding that the response of thevictims’ families would also beimportant in deciding whetherthe president attended theanniversary.

Prime Minister DonaldTusk rejected the initial find-ings of Moscow’s InterstateAviation Committee’s (MAK)draft report in December, call-ing the dossier “unacceptable.”He added that he consideredsome of the conclusions to be“baseless.” Details of the

report have not been madeofficially available.

“The disaster would havebeen avoided if not for thedecision to land. But puttingthe blame solely on the pilots[as the Russian dossier report-edly does] would be too sim-ple,” Mr Tusk said last week,adding that the air traffic con-trollers were also partially toblame.

Justice Minister KrzysztofKwiatkowski told RMF FMrecently that if Russia did nottake into account Poland’s offi-cial 150-page analysis onMAK’s report into the crash,then Poland could look else-where for help in clarifying thecauses. He even mentioned thepossibility of getting assistancefrom the US. GGaarreetthh PPrriiccee

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Nine months after the crash, its cause is still unknown

COURTESY OF WIKIMEDIA COMMONS

Euro zone

Estonia adopts the euro, despite uncertainty

JANUARY 10-16, 2011 IINNDDUUSSTTRRYY NNEEWWSS www.wbj.pl 5

New rules for ownership of infrastructure debatedOn December 15, 2010, the first reading of theact amending the Civil Code took place in theSejm. The act is to introduce a wider scope ofexceptions regarding the connection of owner-ship of transmission equipment with the own-ership right of the land on which such equip-ment is placed.

Pursuant to the basic rule of the civil law,all buildings and other structures which arepermanently connected to a real estate areowned by the owner of the real estate regard-less of who has erected the equipment. Untilnow transmission equipment such as pipelinesand electricity lines which have been connect-ed with an enterprise (like a power plant) havebeen the only exception. Now, infrastructureconnected with railway transport, tramways,telecommunication lines and other networksof a similar nature are also to be included asexceptions.

The draft amendment is of significantimportance for ownership relations within thescope of telecommunications or railway trans-port.

Changes to the anti-crisis act On January 1, 2011, an amendment to the actof September 29, 2010, on the mitigation ofthe consequences of the economic crisis foremployees and entrepreneurs came into force.

The change concerns provisions definingthe criterion for qualifying for benefits provid-ed by the act as well as provisions defining theperiod of protection against the dismissal ofemployees of businesses which are experienc-ing interim financial difficulties and are bene-fiting from statutory aid. The amendment isintended to loosen some restrictions on previ-ous provisions.

The new provisions will come into force instages: on March 1, 2011; June 1, 2011; andJanuary 1, 2012.

Draft changes to the VAT act On December 14, 2010 the governmentaccepted a draft change to the act on tax ongoods and services (V AT). Pursuant to thenew regulations, entities which settle tax inimport will not need to submit a security onthe amount of tax.

What is more, the draft expressly indicateswho the taxpayer is in activities conducted bytaxpayers which do not have a seat, place ofdomicile or a permanent conduct of activity inthe territory of P oland. Pursuant to the newlaw, in such cases the tax will always be settledby the purchaser of the services or goods.

The draft also abolishes the prohibitionagainst deducting input tax in case of import ofservices if the payment is made for the benefit ofentities which have their seat, place of domicileor management in a so-called tax haven.●

legal news

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

Poland to tax the banksPoland plans to introduce abank tax, Finance MinisterJacek V incent-Rostowskiconfirmed last Wednesday inan interview for Polish Radio.

Mr R ostowski said thatsuch a tax “will appear,maybe even this year.”

The proceeds from theproposed levy are to beplaced in a special fund thatwould be used to rescue thebanking system should a largebank in Poland be faced withbankruptcy.

The money would not beused “in order to save theowners of the banks,” stated

Mr R ostowski, “but to savethe people who depositedtheir money and those whotook out loans from thesebanks.”

“We haven’t had a finan-cial crisis in this country, likein many other Europeancountries … because we havehealthy banks. But we shouldprepare for the future,” hesaid.

“All over Europe suchfunds are being establishedand we are doing so in aproactive manner,” headded.

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Confectionery

Cadbury shuts down historic plantand moves production to Poland

The closure of aCadbury factory isbitter for Britain,sweet for Poland

A Cadbury factory inSomerdale, England, has pro-duced its last chocolate bar,meaning all production cannow be shifted to the compa-ny’s Skarbimierz plant insouthwestern Poland.

A total of 300 people willgain employment at the Polishfacility, while 400 workers atthe UK plant will lose their jobsonce machinery at Somerdalehas been dismantled. Most of

the chocolate made in P olandwill be transported 1,200 milesto Britain, a fact which hasinvoked the ire of environmen-talists, who complain aboutunnecessary “food miles.”

American food giant Kraftassumed control of Cadburylast year after a bitter, but ulti-mately successful hostiletakeover worth £11.9 billion.The US company initially saidthat it would reverse Cad-bury’s decision to close theplant and shift productionfrom Somerdale to Skar-bimierz, but backtracked afterit won control, saying the plan

was too advanced to reverse.Explaining Kraft’s decision,

CEO Irene R osenfeld saidCadbury had already investedmore than £100 million inimproving its Polish factories,partly in readiness for thetransfer.

The Somerdale factory hadbeen in operation since 1919,when it began making F ry’sChocolate Creams. It laterspecialized in the productionof bars that were dipped inchocolate, such as the CurlyWurly, Double Decker andCrunchie.

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Automotive manufacturing

FFiiaatt ccoouunnttiinngg oonn TTyycchhyy ppllaannttttoo bboooosstt LLaanncciiaa YYppssiilloonn bbrraanndd

The Italian carmakerexpects a new Tychy-produced Ypsilonmodel to help boostsales Fiat CEO Sergio Marchion-ne is counting on the newLancia Ypsilon to help triplesales of the L ancia brand,Rzeczpospolita reported. Thecar will be produced at theFiat plant in T ychy, Silesiavoivodship.

His plans call for 300,000Lancias to be sold in 2014. In2010, sales of all Lancia modelsreached 113,000, including30,000 of the current Ypsilon.

To start with, Fiat would liketo see 130,000 units of the newYpsilon sold annually. Thismodel will be officially unveiledat the International MotorShow in Geneva this Marchand will hit dealer showroomsin June.

But are Fiat’s plans realis-

tic? A ccording to W ojciechDrzewiecki, sector analyst fromSamar, this depends on severalfactors.

“First of all, the new modelhas to be unveiled and thenpresented to the public in anattractive light ... in Poland, thepricing will be a key factor, asthe older L ancias were veryexpensive,” Mr Drzewieckisaid. “If the marketing andpricing of this car is right, then Ibelieve yes, it has the potential

to increase sales.”He added, “Another impor-

tant aspect will be the percep-tion of the car’s quality, whichmust be improved and I believethat L ancias produced in theTychy factory will be of muchbetter quality than those whichhave been produced in Italy upto now.”

To date, only 200 pre-seriesYpsilons have been built inTychy. Series production is tobe launched in the spring andthe plant plans to produce60,000 vehicles by the end of2011. The start of Ypsilon pro-duction is important for theTychy facility, since productionof a new Panda model is beingmoved to Pomigliano d’Arco inItaly and orders for the previ-ous version will fall.

Enrico Pavoni, CEO of FiatAuto P oland, estimates thattotal production at the plantwill reach 530,000 vehicles,assuming a production targetof 130,000 Ypsilons annually.

Fiat has invested z∏.1.4 bil-lion in the production launchof the L ancia in P oland.Another €100 million will gointo the preparation of com-ponents made outside ofPoland and on tests conductedin Italy.

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JANUARY 10-16, 2011IINNTTEERRVVIIEEWW6 www.wbj.pl

Obama to come to Poland in May?Advisor to PresidentBronis∏aw Komorowski,professor RomanKuêniar, has told GazetaWyborcza that USPresident Barack Obamacould attend a summit ofleaders of Central andEastern Europeancountries to be held inPoland this May.However, Mr Kuêniarcould not say for sure ifthe visit would actuallytake place.

Agriculturalexchanges for saleThe Ministry of Treasuryis putting eight food andagricultural wholesalecenters up for sale.Farmers and producersare afraid, however, thatthe new owners willtransform the centersinto supermarkets withcheap foreign food. Firston the list forprivatization is theBronisze WholesaleMarket, located nearWarsaw. Products soldhere go to over 14 millionconsumers in Poland andthroughout the world. ●

Politics

KK∏∏ooppootteekk ttoouuttss PPSSLL’’sslliibbeerraall––ccoonnsseerrvvaattiivvee mmiixx

Ewa Boniecka: How would youassess your party’s position inthe shifting Polish politicalscene?Eugeniusz K∏opotek: In thechanging political scene PSLremains a permanent, lastingelement. What’s more, wemaintain the stability of thedemocratic system because ofour ability to be a reliablecoalition partner. W e do nottake radical positions and webring some moderation topolitical life.

How do you define PSL’sidentity?For a long time, many peoplelooked at PSL as a party repre-sentative of one class, thinkingand caring only about the ruralpopulation. This is certainly anunfounded view, becausewhile we are obviously awareof our rural primary elec-

torate, the problems of peopleoutside this group are equallyimportant to us, as we haveshown more than once.

We are a national party andour attitude is to deal withproblems all over the country.And our position and strategyon the EU was proven right, aswe supported Polish accessionto the EU during the difficulttime of the referendum.

Let me define our threemain areas of interest: one isour traditional rural environ-ment; the second is local gov-ernment; and the third is sup-port for small and medium-sized Polish companies. If wefocus on these three areas, Iam convinced – contrary toopinions that the time haspassed for parties in Euro-pean countries aimed at ruralvoters – that the P olish Peo-ple’s Party will remain on our

political scene for many years,as it responds well to theneeds of our society.

We combine the ideals ofmodernization with traditionalvalues, with which P oles arehighly engaged. I think thatour approach to politics isbecoming more attractive tothe public and that we canlook for support from as muchas 20 percent of Poles.

How do you reconcile the tra-ditionalism and conservatismwhich are deep-rooted in PSLwith liberalism in dealingwith the economy?I do not see any contradictionsin this. The Polish farmer wasan entrepreneur even in thedays of communist rule, being

at the same time stronglyattached to national traditions,Christian values, to family, tothe land. So if our party is con-servative in ethical and moralvalues, then we are – as I men-tioned – good liberals in eco-nomic matters. I say “good lib-erals,” because for many peo-ple economic liberalismequates to bloodthirsty capi-talism.

As PSL, we have a differentpoint of view on the principlesof the social market economy.This means saying “yes” to themarket and liberal economy,but with certain limits, so thatthe excessive enrichment ofsome people does not come asa result of the excessive depri-vation of others. And here therole of the state is needed.Thus we support a strong,well-functioning state.

What are the main differencesbetween PSL and Civic Plat-form [PO]?One is the approach to privati-zation. For Civic Platform, themost important thing is capi-

tal, and people come later; forPSL people come first, so ourparties must seek a compro-mise in order to reconcilethese two elements.

We believe that the priva-tization process must give achance and some preferencemainly to Polish workers andPolish entrepreneurs. W esupport the form of directprivatization at the staff-man-agement level, based on Pol-ish capital and supported byloans from state-owned bankBGK. Of course, being amember of the EU, [Poland]does not discriminate againstforeign capital – we need for-eign investments, but we donot agree to open the door tospeculative capital.

PSL has always emphasizedthat strategic economic sectorssuch as energy, railways andstate forests should not be pri-vatized, and on these issues wehave disputes in the coalition.

There is also a long-standingdispute over the AgriculturalSocial Insurance Fund

Eugeniusz K∏opotek, an MP from the PolishPeople’s Party (PSL), talks with WBJ about hisparty’s place in politics, issues facing thecountry and plans for this year’s elections

“We combine theideals of

modernization withtraditional values”

JANUARY 10-16, 2011 IINNTTEERRVVIIEEWW www.wbj.pl 7

Polish gov’tconfident onpublic debtPoland’s Ministry ofFinance estimates thatpublic debt for the year2010 will be below 53.5%of GDP, said DominikRadziwi∏∏, deputyminister of Finance, in astatement to the PolishPress Agency. If publicdebt levels exceed 55% ofGDP, constitutionallymandated austeritymeasures automaticallycome into force. On thebasis of available data,Treasury debt was at thelevel of z∏.702 billion,about z∏.4.5 billion lessthan forecast,Rzeczpospolita reported.

Number ofbankruptciesdecreasesThe number ofcompanies goingbankrupt is decreasing,business daily Parkietreported. According toan analysis carried outby Coface Poland, 665companies wentbankrupt last year. Thisis about 5.2% less thanin 2009. The greatestimprovement can beseen in the transportindustry, where thenumber of bankruptcieshas fallen by 23% y/y.Nevertheless, 2010 wasstill unkind to theconstruction industry.Last year, 98construction companieswent bankrupt – a 35%increase.

Record year for Polish sea portsPolish sea ports loaded61.7 million metric tonsof goods last year. That is30% more than in 2009,and 20 percent more thanin 2008, which had beenthe previous record year.The main contributor wasthe port in Gdaƒsk, where27.2 million tonnes of allgoods were unloaded.The positive trend isexpected to continue thisyear. On the back of thehigh shipment volumes,the Baltic sea ports notedvery positive financialresults. ●

[KRUS]. What is your viewon the issue?In its electoral program, CivicPlatform talked about the liq-uidation of KRUS. Currentlyour colleagues from PO havedrawn some conclusions andno longer talk about liquida-tion, but rather reformingKRUS.

And we have no objectionsto steps leading to reform ofthe system. We have given thegreen light to making thiswork, aiming to introduce inthe future a common agricul-tural tax, but indicating that ifthe tax is introduced then thecurrent agricultural tax mustbe eliminated, because farm-ers cannot pay twice.

We’ll see what happens,because among the 1.5 millionPolish households which areinsured [through KRUS], only300,000 generate revenue and1.2 million do not generateincome and yet have to con-tribute to KRUS. These are theso-called social farms, wherepeople often live in depriva-tion. Thank God that the farmsexist and maintain their own-ers, because if they fail thesepoor peasants will requestsocial services from the stateand our budget would not beable to bear that extra burden.

A reform of KRUS shouldbe treated with great cautionand should be linked to reformof the Social Insurance Institu-tion [ZUS], which costs thebudget z∏.80 billion per year. Ormaybe we should take intoaccount the ideas presented bythe P olish P eople’s P arty’sleader, Deputy Prime MinisterWaldemar Pawlak, that every-one pays one, equal, not veryhigh insurance, and then, afterreaching retirement age, everyinsured person would receivean equal but a modest pensionfrom the state. Such a universalpension system exists, for exam-ple, in Canada, where peoplehave to save for a decent oldage or pay lots of money to var-ious private funds to add it laterto a state pension.

Sejm Speaker and PO politi-cian Grzegorz Schetyna hassaid that the coalition withPSL will be difficult in thelead-up to the parliamentaryelections this year as PSLachieved good results in2010’s local elections andwould like to emphasize itsidentity. What do you think?I think that both substantialand tactical differences will beapparent, as they exist in theparty programs and politicalpractices. Of course our partydoes not want be merged with

PO in the parliamentary elec-tions – our political partieshave different identities andtheir own interests. So maybecooperation within the coali-tion government will be moredifficult in an election year, butI’m sure that everything will gowell, because our political par-ties are working together forthe development of Poland

and feel a common responsi-bility for those actions.

In this coalition PSL is thejunior partner, but remainsvery useful for PO. We bringa lot of common sense anddown-to-earth sensibility tothis government.

We are facing a very difficultEuropean Union budget for2014-2020 and the CommonAgricultural Policy is beingattacked by some members ofthe Union. What is your viewon this situation?I look at it with a certain amountof pessimism. Some members ofthe EU are demanding that thefees they pay to the EU budgetbe lower in the future. If thatshould happen, this would affectthe entire budget and it wouldbe very unfavorable for Poland.Secondly, it appears that the

amount of money coming to theCommon Agricultural P olicymay be reduced, and there arealso proposals to move awayfrom direct subsidies for farm-ers.

Perhaps some changes wouldbe beneficial for Poland?Our agricultural sector is in adifferent situation than those

of the old members of EU,where farmers were providedwith support for many years,so their systems feature mod-ernized agriculture and farm-ers there are doing well. Cur-rently, some of the richercountries are unwilling to pro-vide direct support for farmersin poorer, newer members,because they have other prior-ities.

If the Common Agricul-tural Policy is amended in the2014-2020 budget and directsupport to farmers is restrict-ed, Polish economic interestswill be harmed. The burdenof support for our socialfarms will rest on the nation-al system alone. Thus Polandhas every reason to fightagainst changes to the EU’sCommon Agricultural Policy.But to make this strategy as

effective as possible, we mustbuild an alliance with othercountries and share our con-cerns. And our government,including the minister ofagriculture, Marek Sawickiof PSL, is making suchefforts.

Which party do you see asyour main competitor in the

traditional rural environ-ment?During the upcoming elec-tions, every party is a competi-tor, as each looks for support.Some of our potential votersmay be fooled by nice wordsand empty slogans, later com-ing to regret it.

Our main competitor inthe parliamentary elections,mainly in villages and smalltowns, is P iS [L aw and Jus-tice], but I see that the party’sradical and militant rhetoricis discouraging an increasingnumber of people. So I thinkour party, with our solidexperience and good pro-gram for P oland, will winrural voters and also reachout to people in the cities, toentrepreneurs, to the aca-demic community, as well asto other new voters. And life

outside big cities is becomingfashionable, many profes-sionals are choosing to workin the countryside, so Ibelieve that our electoralpotential will continue togrow.

How much of a chance do yougive the new parties, PolandComes First [PJN] and theMovement of Palikot?I think PJN is more likely [tosucceed] than the Movementof Palikot, because I think thisis the end of Janusz P alikot’spolitical career. PJN is notoffering its own program – ittakes some things from PO,some things from P iS, andtries to sell it as somethingnew. Maybe PJN will takesome voters from P iS, somefrom PO, but it will not be acompetitor for PSL.

Do you think that the catas-trophe in Smolensk and theongoing investigation will playan important role in the par-liamentary elections?Yes, because everything indi-cates that it will still take along time before all the factsand causes of this tragedy areknown. In recent weeks thetruth of the Smolensk catas-trophe has become increasing-ly blurred. Setting aside theRussian side of the investiga-tion, when I look at what ishappening on the Polish side Ihear conflicting signals fromdifferent investigative groups,and there are divided opinionsamong the victims’ families.All of this worries me, becausewe all have the right to learnthe truth about the Smolenskcatastrophe, although it will bepainful.

Another worrying factor isthe use of this catastrophe inpolitical battles. P iS is doingthis and I consider the battleover who is entitled to thelegacy of P resident L echKaczyƒski as false. I’m sur-prised that PJN wants to com-pete with PiS over this, as it isobvious that Jaros∏awKaczyƒski, as brother of thelate president, has the advan-tage in claiming this legacy.

Another issue is the use ofthis legacy by [Kaczyƒski]and his party to pursue apolitical struggle with all oth-ers. This is poisoning ourlives, not just at the politicallevel, but also morally. PSLdoes not participate in thesebattles – we are waiting forthe outcome of the finalreport. But I doubt that it willbring us peace or end politi-cal exploitation of thetragedy. ●

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JANUARY 10-16, 2011 LLIISSTTEEDD FFIIRRMMSS www.wbj.pl 9

WSE tradingsessionsextendedThe first extendedsession on the WSE wasno different than theprevious, shorter ones.The WSE’s dailyturnover was aroundz∏.500 million. Themarket did not react togood news from the US,where indexes soaredafter stock exchangesstarted the day. Expertssay the effects of theextended hours can beevaluated no soonerthan in a few weeks oreven months.

First IPO of2011 on WSE a successThe WSE’s main marketsaw its first debut of theyear last Tuesday. Thedébutante, Polishpackaging producer BSCDrukarnia Opakowaƒ,also became the 402nd

company trading on thePolish bourse. On offerwere three millionshares at a base price ofz∏.17.50, valuing the IPOat z∏.52.5 million. Thestock rose 1.14% to17.70 at the open oftrade. ●

Eurocash buys distributionassets from Emperia

Eurocash, P oland’s largestFMCG retailer by marketshare, will buy elements of thedistribution arm of its smallercompetitor Emperia Holdings.

The deal, reached onDecember 21, was made publicon January 4. It comprisesshares in 17 companies inEmperia’s distribution group,Tradis, and has been valued atz∏.926 million.

“We are delighted that wemanaged to reach an agree-ment and defended ourselvesagainst a hostile takeover,”Artur Kawa, CEO of EmperiaHolding, said in a press

release.WSE-listed Eurocash’s ear-

lier bids to merge with its rivalvia a share swap were repeated-ly rebuffed, with Emperia argu-ing that the deal significantlyundervalued the company.

Eurocash offers valuedEmperia at around z∏.1.3 bil-lion, while Mr Kawa said hiscompany was worth betweenz∏.2.1 and 2.3 billion.

The current deal wasdescribed by Emperia’s CEOas beneficial to all parties.

“We are confident that theconditions of the agreementsare very beneficial to the

shareholders of our company.… Inclusion of the T radisgroup to Eurocash is benefi-cial for all parties, includingEmperia and definitely Tradis,its employees and customers,”said Mr Kawa.

Further consolidation ofthe market might includeWSE-listed Bomi, one of thelargest delicatessen chains inPoland.

Emperia recently announ-ced that it was interested in amerger in H1 of 2011, and thecompany has not denied thatBomi is indeed the targetedrival. AAlliiccee TTrruuddeellllee

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Warsaw Stock Exchange

TTaakkiinngg ssttoocckk ooff 22001100Poland’s bourse hada strong 2010 andexpects more goodfortune this year

The Warsaw Stock Exchangehit an important milestone atthe close of 2010 whenEuropejskie Centrum Od-szkodowaƒ (ECO), a providerof insurance claim recoveryservices, became its 400th con-current listing.

The P olish bourse hashosted a considerably highernumber of listings over theyears – 533 in total, as ofDecember 31, 2010. But thenatural attrition of delistings,M&A deals and bankruptcieskept the number of concur-rent listings well below that.

Attrition was not a majorconcern in 2010, though.Thirty-four companies joinedthe bourse, while 13 delisted.And ECO’s historic listingwas quickly followed up by a401st listing, that of Ukrain-ian collier Sadovaya Group,which also became the 27 th

foreign firm trading on theWSE’s main floor.

A year of recoveryReaching the 400-companymark capped off a successfulyear of recovery for the WSE.

Total market capitalizationrose by 11 percent y/y andwas close to double the mar-ket cap figure reported at theend of 2008. The averagevalue of trading per sessionwas up 17 percent, whiletrade in futures and optionswere also up.

Only bond trading wasdown in 2010, by 14 percentin terms of both total value oftrading and average value persession.

A number of high-profileevents contributed to theWSE’s good fortunes lastyear, including the mega-debuts of insurer PZU andutility Tauron, as well as theless voluminous but psycho-logically significant IPO ofthe bourse itself.

Adding to the good PRwere the launch of energytrading and the announce-ment of a new index illustrat-ing which firms are best atpaying out dividends. Thisindex, the WIGdiv, was putinto service last week.

The WSE’s alternativemarket, NewConnect, wasalso a source of strength forWarsaw. It saw a respectable86 debuts in 2010, meaningits total constituency as ofDecember 31 was 185 firms,

up 73 percent y/y. Market capdoubled last year and thevalue of trading tripled.

At the end of December,Eko Eksport, a producer ofmicrospheres, became the 10th

firm to move from NewCon-nect to the main market.

Perceptions of growthThe Warsaw Stock Exchangehas already welcomed its firstdebutant of the new year,packaging producer BSCDrukarnia Opakowaƒ, andothers are in the pipeline.This T uesday the bourse ishosting an “IPO Day,” duringwhich three soon-to-debutfirms will introduce them-selves to investors.

There is some concernthat, in the short term at least,the WSE may face some diffi-culties. Analysts polled byParkiet have predicted thatstocks will fall in the earlypart of this year, bouncingback in the second quarter.

But there’s little sign ofworry among representativesof the bourse. Buoyed by thesuccesses of last year, theWSE is bullish about itsprospects for 2011.

Speaking with P olishRadio about the one-hourlengthening of trading hours

which came into effect thisyear, WSE president LudwikSobolewski expressed confi-dence that it would be for thelong-term good.

“Without a doubt thechange will have a positive

influence on the perceptionof the Polish capital market,on interest in the variousfinancial instruments onoffer, and not only stocks,”Mr Sobolewski said.

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20102009200820072006200520042003200220012000

Regaining groundWSE market capitalization (in z∏. billion) as of Dec 31 of eachyear, 2000-2010

Source: Warsaw Stock Exchange

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ListingsDebuts

Taking stock of the decadeDebuts and listings on the Warsaw Stock Exchange as of Dec 31of each year, 2000-2010

JANUARY 10-16, 201110 www.wbj.pl BBUUSSIINNEESSSS EENNVVIIRROONNMMEENNTT

2011coming in february

Over 2,500 firms from all major sectors of the Polish market get exposure in Book of Lists Is your company one of them?

EU funds

Poland beatsexpectations on fundsThe country hasabsorbed almost 60percent of its 2007-2013 EU funding

By the end of last year, Polandhad spent almost 60 percent ofits EU funds for the 2007-2013budget period. Moreover,despite pointed criticism fromsome quarters, the countrymanaged to exceed expecta-tions for fund absorption in2010.

According to R egionalDevelopment Minister El˝bi-eta Bieƒkowska, as of Decem-ber 31, 2010, over 50,000 con-tracts for co-financing hadbeen signed. The total value ofthese agreements is z∏.223.4billion, of which z∏.154.4 billionis funded by the EU.

The latter figure constitutes58.1 percent of the EU fundsallocated to P oland for the2007-2013 budget period.

Meanwhile, the govern-ment had originally expectedto receive z∏.27 billion inrefunds from the EU last yearfor expenditures on co-financed projects. In the end,however, it got z∏.35.7 billion.Of the z∏.9 billion surplus, z∏.6billion had been transferred togovernment accounts by the

end of December. “An increasing amount of

EU funds are coming intoPoland, leading to the develop-ment of our enterprises andthe creation of new jobs. As ofthe end of last year, the Euro-pean Commission had refund-ed us almost €15.3 billion [forthe 2007-2013 period],” Minis-ter Bieƒkowska told the press.

Ms Bieƒkowska stated thatthis made P oland the leaderamong new member states interms of EU fund absorption,and that the €15 billion figureexceeded the total received bythe next seven countries com-bined. Next year, P olandexpects to present the EC witharound z∏.40 billion in refundrequests.

At the same time, despitefears that Poland’s voivodshipsmight have problems with effi-cient EU fund absorption, theregional authorities seem to behandling the process wellenough. By the end of 2010, all16 voivodships had spent andaccounted for more than 20percent of the amount allocat-ed to them in the R egionalOperational P rogram [for2007-2013], which overseesfund distribution at the voivod-ship level. RReemmii AAddeekkooyyaa

Public debt

Did currency sale help avert painful cuts? The governmentreportedly intervenedto manipulate the z∏otyat the end of 2010

A last-minute move by thegovernment may have helpedkeep the country’s public debtbelow the politically and eco-nomically significant level of55 percent of GDP at the closeof 2010.

State-owned Bank Gospo-darstwa Krajowego sold offbetween €1.2 billion and €2billion at the end of last year inorder to strengthen the z∏oty,keeping the debt-to-GDPratio below 55 percent, dailyRzeczpospolita reported tra-ders as saying.

Breaching the 55 percentthreshold would have triggeredconstitutionally enshrined aus-terity measures designed tobalance the budget.

The Finance Ministry couldnot be reached to comment onthe report. A spokesperson forBGK declined to comment,noting that the bank does notprovide information concern-ing market transactions.

For many years the z∏otyhas remained generally free ofstate interference. However,during the economic crisis itsprice grew more volatile, forc-ing decision makers to change

their approach on currencymanagement. The govern-ment has now, via the FinanceMinistry and the central bank,intervened several times tostrengthen or weaken thez∏oty. Official commentary hasalso been usedto steer the Pol-ish currency.

At present the governmentappears to want to avoid weak-ening the z∏oty in order to helpit pare down debts.

“This time the governmenthad an interest [in selling]because it decreases the valueof foreign debt held in z∏oty,”

said Piotr Bielski, senior econ-omist at Bank Zachodni WBK.

Although the central bankhas not publicly stated that ittargets specific exchange rates,its actions suggest that it doeskeep a certain range in mind.

“Government actions canbe expected when the z∏otysharply appreciates or depreci-ates (EUR/PLN close to z∏.5.0or below z∏.3.0) or when publicdebt comes close to reaching55 percent of GDP ,” saidAdam Narczewski, an analystat X-Trade Brokers.

Poland’s currency reserves,

however, are not so large thatthe government can affordmarket operations when thereis no real danger, he cautioned.

The Finance Ministryannounced at the end of lastyear that Poland’s public debtwas under 53.5 percent ofGDP. Poland’s public debt willstay under 55 percent of GDPthis year if the government isable to implement its plan toslash mandatory payments toprivate pension funds, FinanceMinister Jacek Rostowski saidlast week (see story, p. 3).

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JANUARY 10-16, 2011 OOPPIINNIIOONN www.wbj.pl 11

Minister without portfolioMicha∏ Boni was making therounds with the P olish press

last week, talking up and defending thegovernment’s plan to “reform”Poland’s pension system. The highlycontroversial plan looks to move someof the money currently transferred toprivate pension funds onto the booksof the Social Insurance Institution, orZUS.

This newspaper opposes the planon the grounds that it would be a stepbackwards for Poland’s relatively mod-ern pension system, one that wouldmake Polish pensions more dependenton the government – which we view asmore risky than market solutions – andthat will likely take much-needed capi-tal away from listed companies, as wellas momentum from the Warsaw StockExchange.

Boni’s knotty argumentMr Boni described P oland’s predica-ment with regards to pensions andstate finances as a Gordian Knot, inwhich the government needs to pre-serve the security of pensions forfuture generations but must also main-tain fiscal responsibility in the shortterm. The only way to accomplishboth, he argued, is to implement the

government’s solution – moving some68 percent of workers’ contributions toprivate funds, or OFEs, to accountsmanaged by ZUS. This would put themoney on the government’s books,allowing it to slide under the 55 per-cent debt-to-GDP threshold that, ifcrossed, would legally require the gov-ernment to institute austerity meas-ures.

Here it’s important to pause andexplain what is going on here, as con-templating the complexities can causevertigo. Currently, the governmenttakes a certain percentage of P oles’paychecks and puts it away towardstheir pensions. That amount is dividedbetween the OFEs – which are private,for-profit entities that invest themoney in stocks and bonds – and ZUS.This system is the result of a 1999reform intended to maximize bothpension payouts and the security ofpensions, a feat engineered by some ofPoland’s brightest economic minds atthe time.

However, the result is that to sup-port current pensioners, the govern-ment has to pay out of its own pocket –rather than from the current paymentscoming in, as in many Western Euro-pean countries – and this exacerbatesthe debt. With EU budget deficit and

debt targets to meet, the governmentsees taking money away from the pri-vate pension funds and putting them inZUS accounts (which it promises willstill be designated for future pension-ers and indexed with growth of the

economy) as a way to put money on itsbalance sheet, giving its presentfinances some relief.

Closing the door on OFEsThe only problem is that the OFEswould lose huge amounts of funding.The government says this isn’t a prob-lem, since OFEs are currently requiredto spend the majority of their funds ongovernment bonds anyway. By takingthat money directly, the governmentsays, the money isn’t being “recycled,”and the private funds can can stillspend nearly the same amount as theyused to on stocks.

One thing this argument ignores,however, is the fact that drastically cut-

ting funding to OFEs will plainly resultin fewer opportunities for profit. Thegovernment counters that OFEs wouldmake z∏.460 million on commissions in2011, and would likely make z∏.680 mil-lion in 2012 – all on the backs of thepoor P olish worker. That’s hardly afree-market attitude. Must we remindthem that it is precisely the motive forprofit that benefits P olish workers,whose pensions increase as a result?

Another concern is that, ratherthan cutting out the “recycling” ele-ment, private pension funds will simplycontinue to split their reduced fundsbetween stocks and bonds. This willdeprive the stock market and its con-stituents of tremendous amounts ofcapital.

The government responds that itwill introduce a new option, allowingPoles to contribute another two to fourpercent of their income (which wouldbe tax-deductible) to private funds.Moreover, the government cites ana-lysts saying that 70 percent of P olesmight choose to do so. That’s possible,though it sounds optimistic. In prac-tice, will Poles part with four percentmore of their paycheck for their pen-sions, when the government is alreadytaking out a significant chunk for thatsame purpose? Time will tell.

Finally, the government argues thatPoles’ pension contributions are saferin government hands. With the recentnear defaults of countries like Irelandand Greece, that argument is hardlycredible.

A false choiceEven if the government is right, andassuming they are able to implementthese changes without hurting P olesfuture pensions or the stock market’scurrent returns, there remains anotherproblem. The choice the governmentis presenting – between payouts topension funds and fiscal responsibility– is a false one. There is one moreoption that the government hasn’teven mentioned: cutting from govern-ment bureaucracy and entitlements.

This newspaper has, with some-what tiring repetitiveness, laid outwhere specific cuts could be madebefore. But this is an election year, andthe government is unwilling to makemoves that could prove politically cost-ly next autumn, even if they wouldserve the country better for manyautumns to come.

How to encourage a group ofpoliticians to champion budget cuts inan election year? Now that is truly aGordian Knot. ●

Two seemingly unrelated eventson January 5 suggest that Rus-sia’s Baltic Sea neighbors,

Poland and Sweden, are sending awarning to Moscow.

First, Polish Ambassador to Rus-sia Wojciech Zajàczkowski said ininterviews with Interfax that Warsawis actively seeking to diversify its gassupply away from Moscow. The com-ment followed Zajàczkowski’s publicstatement on January 4 regardingPoland’s extremely critical view ofRussia’s potential basing of tacticalnuclear weapons in its exclave ofKaliningrad and the “futility” of theRussian-German Nord Streampipeline, which the ambassador criti-cized on economic and environmen-tal grounds.

Meanwhile, on January 5 theSwedish Parliamentary DefenseCommittee forwarded a formalquestion to Foreign Minister CarlBildt on how Stockholm intends torespond to Russia’s planned pur-chase of two French Mistral-classhelicopter carriers. Russia signed anofficial agreement with France topurchase the two carriers, with anoption of two more being built inRussia. The first hull is tentativelyscheduled for delivery this year andis officially supposed to be basedwith the Pacific fleet. However, thesecond will most likely be based inthe Baltic Sea, which has irkedBaltic states.

Notable timingThe timing of both events is notable.Though only recently finalized, theMistral purchase has been in theworks for more than a year, andPoland’s unease with dependency onRussian natural gas is certainly notnew. Therefore, both the Swedish

parliament’s sudden interest in theRussian-French military deal and thePolish ambassador’s generally aggres-sive interview – which received con-siderable negative coverage in Russia– should be considered in the contextof the region’s evolving geopolitics.

First, both statements closely fol-low Belarus’ presidential elections,the subsequent crackdown on opposi-tion leaders during a rally to protestPresident Aleksander Lukashenko’sre-election and Moscow’s support forthe regime despite the clashes.Europe, led by the Polish-Swedish

Eastern Partnership initiative, hasbeen hoping that it could slowlyerode Moscow’s grip on Belarus’geopolitical alignment. However, theresult of the presidential electionseffectively ended that.

The Polish-Swedish statementsalso follow recent successful movesby Russia in the Baltic states toincrease its influence beyond tradi-tional levers – such as influencingRussian minorities in Latvia andEstonia – to increasing economicand political influence as well. ADecember visit to Russia by LatvianPresident Valdis Zatlers illustratedthe increased economic linksbetween Moscow and Riga, withRussia becoming Latvia’s second-most-important investor after Swe-den. Russia also has effectivelyincreased its influence in both

Latvia and Estonia through patron-age of relatively pro-Russian politi-cal parties (which are now empha-sizing their broad appeal), HarmonyCenter and the Center Party,respectively.

Allied interestsAs such, Poland and Sweden – theother two historical powers in theBaltic Sea region – are looking tocounter or at least send a message toRussia that they are watchingMoscow’s moves carefully. Zajà-czkowski’s statements, in particular,should be carefully studied. He wasappointed to his post recently bynew Polish President Bronis∏awKomorowski, who has said that theage of knee-jerk anti-Russian policyin Poland is over. Zajàczkowski hasalso been a close foreign policyadviser to Polish Prime MinisterDonald Tusk, who has himself per-sonally worked on improving War-saw-Moscow relations. As such,Zajàczkowski is not a vestige of theformer anti-Russian Polish policyand is very much a representative ofthe Tusk-Komorowski tandem. If hecriticizes Russia’s foreign policy, thehighest echelons of Polish leadershipapprove the statements.

Sweden, meanwhile, largely spent2010 embroiled in a long election sea-son, one of the most contentious inthe nation’s recent history. Theincumbent center-right governmenthas now returned to power, albeit in aminority. Now Prime MinisterFredrik Reinfeldt and Foreign Minis-ter Carl Bildt can begin concentratingon regional affairs. Bildt has alreadymade a joint visit with his Polishcounterpart to advance the EasternPartnership program in Ukraine andMoldova – specifically to try to

The false choice between pensions and the budget

“Poland and Sweden... are watching

Moscow’s movescarefully”

“It is precisely themotive for profit that

benefits Polishworkers”

An alignment of interests between Poland and Sweden

Unless otherwise noted, the opinions here are those of Warsaw Business JournalReaders’ comments, opinions and letters should be sent to editor@wbj.pl.Please include a name and contact information and clearly indicate if they areto be considered for publication.

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increase the chances of a pro-Euro-pean Moldovan government – andhas hosted the Ukrainian foreignminister in Stockholm. In otherwords, Sweden made it a point toannounce its return to regional poli-tics in December.

The question, however, is whetherSweden and Poland are willing toincrease their own collaboration inthe region beyond active diplomacy.For the past two years, STRATFORsources in Poland have emphasizedWarsaw’s willingness to enhance itsrelationship with Sweden to includemilitary and security cooperation.STRATFOR is now also hearing sim-ilar thoughts emanating from Stock-holm.

With the United States – Poland’straditional post-Cold War security ally– likely continuing to be embroiled inthe Middle East for the foreseeablefuture and refusing to offer Warsawany robust security reassurances,Poland will be looking for alternatives,at least in the short term. Sweden hastraditionally defended its neutralityaggressively and thus has a robust mil-itary and arms industry. Its interestsare also currently aligned with Warsawas Moscow continues to expand itsinfluence in Eastern Europe, particu-larly in Latvia and Estonia. ●

“An alignment of interests between Polandand Sweden” is edited and republished withpermission from STRATFOR

Mobile network operators

Signals of change

JANUARY 10-16, 2011CCOOVVEERR SSTTOORRYY12 www.wbj.pl

Investing in Poland 2011 is available now!

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

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

Anthony Casey

The mobile telecoms industryis thriving in P oland, despitepersistent concerns aboutmarket saturation. The mostrecent figures from the Cen-tral Statistical Office attest tothis fact – at the end ofSeptember 2010, there were46.39 million active SIM cardsin the country. That marks apenetration rate of 121.44 per-cent, up from the 119.82 per-cent rate seen just threemonths earlier.

Nevertheless, the marketfaces significant challengesand change is coming rapidly.One event of note occurredlast month when DeutscheTelekom took full control ofPolska T elefonia Cyfrowa(PTC), operator of the Erabrand, after settling a decade-long wrangle with French firmVivendi and P oland’s Elek-trim.

A spokesperson for DTconfirmed last week that thetakeover has cleared the wayto rebrand Era as T -Mobile,under which DeutscheTelekom offers mobile net-work operator (MNO) servic-es elsewhere.

“After the closing of thistransaction, we would have theopportunity to rebrand [Era]for the first time without anylegal risks. We will discuss veryclosely with PTC ’s manage-ment, if and when such a stepwould be appropriate,” DT ’sspokesperson commented.

Audytel, an audit and advi-sory company specializing in

advanced ICT infrastructureoptimization for large compa-nies, believes the switch couldhappen sooner rather thanlater. Tomasz Kulisiewicz, thefirm’s lead analyst, describedthe takeover as “good news”for PTC. He stated that thefirst task under new owner-ship would be to push pastPolkomtel (operator of thePlus brand and current topplayer by revenue).

He added: “I think Eraneeds rebranding, or at leastrefreshment of its ageingbrand, so it is only a questionof when. In the Czech Repub-lic, Hungary and Slovakia,rebrandings were doneovernight, practically duringone weekend.”

Wac∏aw Iszowski, presi-dent of the P olish Chamberof Information T echnologyand T elecommunications(PIIT), ruled out the possi-bility of a price war in theMNO market, saying thatregulations would not allowit. He also suggested thatalthough DT has traditional-ly stamped “T-Mobile” on itsacquisitions in other markets,Era is a strong local brandbrand that might require adifferent approach: “Perhapsthere will be two brands [Eraand T-Mobile] on the marketfor a long time.”

Polkomtel on offer?Nor is PTC the only MNO tohave suffered from a disadvan-tageous ownership structure.

Market leader P olkomtel’sshareholders include oil refin-er PKN Orlen, copper giantKGHM, monolithic energygroup Polska Grupa Energety-czna and British firm V oda-fone. It was widely thoughtthat V odafone’s moves toincrease its holding over thepast few years have been madein preparation for a completetakeover.

However, V odafone hasstated publicly that this willnot happen. “ All the share-holders of P olkomtel haveagreed to explore a sale of thecompany. W e have nothing

more to add to this state-ment,” a spokesperson for thecompany told WBJ.

A PGE spokesperson,meanwhile, suggested thatPolkomtel could be on themarket in the near future.

Should the shareholdersdecide to exit P olkomtelthrough an initial public offer-ing, the event could make his-tory on the W arsaw StockExchange. Dow Jones News-wires estimates that Polkomtelcould be valued at z∏.12.9(€3.3) billion.

Were that estimate toprove accurate, the firm

could comprise more than aquarter of the value of itsmarket. A ccording to PIIT ,there are no official calcula-tions of the overall value ofthe mobile telecommunica-tions market in P oland, butthe organization estimates itto be worth some z∏.47 (€12)billion.

Upgrading the networksIrrespective of total marketvalue, P oland’s mobile net-work operators face majortechnical challenges. Thecountry’s network is alreadystruggling to meet demand fordata-heavy, bandwidth-hungryservices.

Polkomtel alone has seen a930 percent increase in datatraffic since 2007. That’saccording to the company’sCEO, Jaros∏aw Bauc, andother networks claim similarincreases.

Meanwhile, the state andcapacity of P oland’s mobilenetwork lags somewhat whencompared to Western Europe.MNOs have spent the last fewyears upgrading their radioand data transmission infra-structure – in terms of bothcapacity and quality of tech-

Shifts in ownership and technology arereshaping the Polish mobiletelecommunications market

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One of Poland’s 49.39 million STM cards

Start of a new Era?

Deutsche Telekom may well be consider-ing a rapid and complete rebranding ofEra to bring it in line with its internation-al T-Mobile operations.

PTK Centertel (operator of OrangePolska) did the same with its operationsin Poland, with great success. The com-pany launched Idea in 1998, and contin-ued with this brand until it was renamedOrange in 2005.

Now, Orange offers ‘micro-brands’ inPoland including POP, Go, Music, Busi-ness Everywhere, Free, World and Free-

dom. The change from Idea to Orangedid the company no harm.

Speaking at the time of the rebrand-ing, Sanjiv Ahuja, then CEO of OrangeSA, said: “Orange is one of the best-known and most powerful communica-tions brands in the world, driving thegrowth and success of our businessacross our footprint. It is a brand thatcustomers trust and associate with sim-ple and straightforward products andservices that meet their needs and pro-vide them with a unique Orange experi-

ence. We are confident that the intro-duction of the Orange brand here inPoland will deliver significant success.”

He was right, as Orange Polska nowhas around 14 million customers,according to figures from its parent firmFrance Télécom’s website.

However, DT may have to go to somelengths to make a bigger immediateimpression if they do rebrand Era; theOrange switchover was marked with afree Sting concert in Warsaw for 150,000people.

Two million .pldomains The number of internetaddresses with the .plsuffix in Poland hasreached two million,Dziennik Gazeta Prawnareported. The historic twomillionth address wasregistered on January 3.Reaching this magicnumber is evidence of therapid development of theinternet in Poland. It took17 years to register thefirst million domains,while the second milliontook under a year. Lastyear, an average of 2,900addresses wereregistered daily,representing the fastestincrease in the EU.

Vectra targetsMultimediaPolskaCable operator Vectra hasfiled an application withthe anti-monopoly agencyfor the purchase of “apart of MultimediaPolska’s interests,”Rzeczpospolita reported.No specific plans havebeen unveiled yet,however. According to astatement made by VectraCEO Tomasz ˚uraƒski atthe end of last year, thecompany intends tocontinue its acquisitionstrategy, despite the factthat it did not succeed inthe buyout of competitorAster. Doing so wouldhave given Vectra astrong presence in theWarsaw and Krakówmarkets.

Russian cars,made inSzczecinRussian automotivecompany Intrall is close toachieving its plan toproduce cars in Szczecin,in northwest Poland. Anagreement between theinvestor, the PolishInformation and ForeignInvestment Agency(PAIiIZ) and theZachodniopomorskievoivodship marshal is tobe signed during thesecond half of January,reported Rzeczpospolita.The investment is valuedat z∏.200 million. The newplant will initially employ500 people. ●

JANUARY 10-16, 2011 CCOOVVEERR SSTTOORRYY www.wbj.pl 13

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

Mobile roamingcharges

Legal Eye

Four years ago my wife and Ivisited Greece for a week.We purchased one of the all-inclusive travel packages onoffer. All-inclusive, however,did not include my wife’stelephone calls to her moth-er in P oland. Nor my callsback to the office. A fewweeks after returning home,the true cost of our all-inclu-sive vacation arrived in themail … in the form of a tele-phone bill. A t the time ourcarrier in Poland charged usa roaming fee of €1.32 perminute to use our mobilephone in Greece. W ithoutgiving away the total, let’sjust say that we learned ourlesson regarding roamingcharges. And apparently wewere not alone. In 2007 theEuropean P arliament andCouncil adopted a regula-tion (EC R egulation717/2007) to cap roamingcharges within the EU fol-lowing consumer complaints.

EC Regulation717/2007At the time of its adoptionon June 27, 2007 by theEuropean P arliament, theauthors of the Roaming Reg-ulation cited the need to cre-ate a European social, edu-cational and cultural areabased on the mobility of indi-viduals. The lowering ofroaming charges is intendedto achieve this goal by facili-tating communication be-tween people across the EU.The R oaming R egulationsets a cap on the amount acarrier may charge a mobilephone user to place a callfrom another EU memberstate, as well as surfing theinternet and sending andreceiving text messages. Thefirst caps took effect in 2009,with further reductionsintroduced in 2010 and morescheduled to take effect inmid-2011.

When the final caps takeeffect later this summer, thesurcharge to place a call out-side of your network will belimited to €0.35 per minute,while the cost to receive acall will be limited to €0.11per minute. The cost to sendan SMS will be limited to€0.11, regardless of thelength of the text message.Receiving a SMS is currentlyfree-of-charge and willremain so. R eceiving voice-mail messages while travel-ling is also free. On average,roaming charges have fallen

73 percent since the Euro-pean Parliament and Coun-cil first took up the issue ofroaming charges in 2005.

To avoid unexpected sur-prises, the Roaming Regula-tion also introduces a defaultcut-off for surfing the inter-net while traveling within theEU. As of now the monthlyroaming charge to surf theinternet while traveling out-side a user’s network is auto-matically capped at €50.Unless the user has agreedto a higher limit, internetaccess will be blocked oncethe internet access chargesreach €50 in a given monthwhile traveling. Moreover, anetwork operator is nowrequired to send a warningto a user once he or shereaches 80 percent of his orher roaming charge limit.

Polish regulator Poland’s telecom regulator,the Office of Electronic Com-munications, is charged withenforcement of the RoamingRegulation in P oland. Inaddition to enforcement ofthe new lower roamingcharges, the Office of Elec-tronic Communications iscurrently working on a planto reduce the cost of mobilephone calls within Poland. Atpresent the Polish Regulatorproposes to lower the tarifffor mobile phone use toz∏.0.1223 by 2012, which is inline with the EU Commis-sion’s recommended rate ofno more than €0.03 perminute by 2012.

Polish operatorsIn comparison to the chargeof €1.32 per minute we paidto use our mobile phonewhile in Greece in 2006,today the same call wouldcost €0.39, a reduction of 70percent. As of this summerthe rate will fall another 10percent to €0.35 per minute.

Calls outside the EUThe R oaming R egulationcaps roaming charges inthe EU. Not elsewhere.Each year I am remindedof this when we visit myparents in the States andmy wife again calls hermother back in Poland. Buthope springs eternal andthis past summer I discov-ered Skype, the free-of-charge voice over internetservice to make long-dis-tance calls to and from justabout anywhere. ●

nology – at a faster pace. A tpresent, the most up-to-datetechnology in P oland allowstransfer speeds of up to 21.6Mb/second and is available inbetween 10 and 12 of thelargest cities.

According to PIIT , voiceservices are already available“in virtually every corner ofPoland.” High-speed data serv-ices, however, are available for

around 60 percent of the popu-lation – and there are stillplaces, mostly in areas of lowpopulation density, where theseservices are sketchy at best.

PIIT believes that some ofthe coverage problems couldbe resolved by new regulationswhich are currently beingdeliberated. These wouldallow the Office of ElectronicCommunications (UKE) toremove some administrativerestrictions on the siting ofequipment, for example.

Ultimately, however, it willbe up to the network operatorsthemselves to ensure theyhave the right technologies inplace to meet forthcomingchallenges.

“Each of the operatorsrelies on the fact that its infra-structure functions the best,and each is responsible formaintaining it. Where appro-priate, it is expanded, except inplaces where there are prob-lems with obtaining buildingpermits,” said Mr Iszowski ofPIIT.

Tomasz K ulisiewicz ofAudytel said that P4, operatorof fourth-place mobile brandPlay, currently has the mostup-to-date infrastructure, con-sisting solely of 3G-capableequipment. But he stated thatmobile infrastructure overallin P oland cannot cope withcurrent demand, and wouldnot, as it stands, be able tohandle the increased burdenexpected from full-blown 4Gservice.

“Demand is growing quick-ly both in the number of dedi-cated SIMs and in traffic. Allthe networks will need contin-uous upgrading, as is the caseall over the world. MNOs willchoose the model of upgrade:standalone, on the basis ofRAN sharing agreements, orin a model known already fromthe UK – Everything Every-where, a radio-infrastructureof Orange and T-Mobile – andsome other countries,” MrKulisiewicz said.

He added, “The running ofradio infrastructure is alreadyoutsourced to various vendorssuch as NSN, Ericsson andHuawei. Last year PTK Cen-tertel and PTC signed a letterof intent on outsourcing.”

The (not so near) future is 4GBut Mr Kulisiewicz also stated

that MNOs still have time toget their technical upgrades inplace, as true 4G capability isstill a way off for the world.

“Strictly speaking, today’sLTE is still not the full 4G. Wewill not see full 4G in 2011 ...Detailed specifications ofIMT-Advanced [or true 4G]are expected by end of 2011,with approval at the R adio-communication Assembly [inSwitzerland] in January 2012at the earliest. This means thatwe can expect a real 4G onlyfrom 2012 to 2015,” he stated.

In Poland, there is certainlyno sense of panic when itcomes to implementing 4G. Inspring 2010, UKE consultedthe major players in P olishtelecommunications regardingthe availability of the 2.6 GHzbandwidth, upon which 4Gservices will depend. After aconsultation period, the tele-coms watchdog decided to

auction the bandwidth at alater date.

A spokesperson for UKEsaid that planned changes tothe conditions of the tendermeant that the consultationwould be carried out again. Headded: “As of today, no deci-sion has yet been takenregarding the subject of futureauctions, which after analysisand consultation may, butneed not, be changed.”

The allocation of the 2.6GHz bandwidth depends inpart on all countries agreeingto set it aside for 4G use.Russian P resident DmitryMedvedev signed an agree-ment regarding the use ofthese frequencies during hisDecember visit to W arsaw,but agreements with otherneighbors to the east stillneed to be finalized.

All signs point to changefor the P olish market then,albeit that of the evolutionaryrather than the revolutionaryvariety. Market pressures arepushing MNOs to upgrade,but not at breakneck speed.The important question forplayers in the market – andtheir investors – is who willget there first? ●

“Today’s LTE is stillnot the full 4G. Wewill not see full 4G

in 2011”

Looking forward

Audytel’s “R aport T elekomunikacyjny2010” predicts an average annual growthrate of 2.7 percent between now and2015. This is significantly lower than theboom of 2003 to 2008, when the telecom-munications market grew at least 5.5 per-cent per year.

The report states: “Shifts in the sharesof individual market segments will contin-ue to be clearly visible due to big differ-ences in terms of the growth rate of thefixed telephony, mobile telephony, inter-net access and leased lines and data trans-mission markets.

“Internet access for residential users isforecast to maintain the strongest growthover the next five years. As a result, its lessthan four percent share in the overalltelecommunications market in 2003 willgo up to approximately 10 percent in2015, with the average annual growth ratein the region at five percent. Internetusers’ growth rate is declining, but at thesame time there is a shift towards higherrates that enable the use of a broaderrange of services.”

From PIIT, a more cautious forecast:“It seems that the crisis of lost value of the

ICT market in Poland in the years 2008and 2009 is already behind us. We antici-pate growth [in the value of the] telecommarket on the order of two-four percentper year, while it will largely depend onthe development of content deals in Pol-ish and the development of informationservices available via the internet.

“As always, many issues may be com-plex, because it is a regulated market. Butas it evolves, it will also be stabilizing. Animportant element is to choose the pathof development of technology and accessto broadband.” ●

The technical stuff

2G – The first great leap for-ward after the introductionof first generation mobiletechnology. This addedsecurity to mobile telepho-ny, and allowed smaller,cheaper and less power-con-suming cells and handsets.

3G – A step on from 2G, thisallows speech and data to betransmitted simultaneously.Data can be transferredfrom at least 200 kb/sec.

4G – The future. Users in afixed location will be down-loading at up to 1Gb/sec.Even those on the move areoffered 100Mb/sec.

HSPA/HSPA+ - HighSpeed P acket A ccess. Itallows download speeds ofup to 14Mb/sec and uploadspeeds of 5.8Mb/sec.HSPA+ is a more advancedversion that began to betaken up internationally lastyear.

ITU-R – The ITU R adio-communication Sector. Oneof three arms of the Interna-tional T elecommunicationUnit, which manages radiofrequencies used by mobiletechnology.

LTE – L ong Term Evolu-tion. The latest mobiletelephony standard. Closeto the requirements for 4G,but not quite there. Expectfaster, cleaner data transferas LTE Advanced becomesmore fully developed.

RAN – R adio A ccess Net-work, a technology linking ahandset to a network.

WiMAX – a protocol allow-ing fixed and mobile internetaccess at up to 40Mb/sec.

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Poland’s mobile phone infrastructure is alreadystruggling to cope with current demand

JANUARY 10-16, 2011BBUUSSIINNEESSSS CCOOMMMMUUNNIITTYY14 www.wbj.pl

Chambers of Commerce Corner

Celebrating Christmas

International Christmas Evening in Wrocław

Some of the largest international chambersof commerce in P oland got together inDecember to throw their traditional annualInternational Christmas Evening. TheWroc∏aw Puppet Theatre played host to thegathering, which was held on December 8.

A range of seasonal music from aroundthe world was celebrated during the event.

A choir of children from the British Interna-tional School of Cracow in W roc∏aw sangcarols from all over the world against abackdrop of dim candle light and the deco-rative glitter of Christmas trees. A Wroc∏aw-based gospel group, the Spirituals SingersBand, followed this with their own rendi-tions of traditional Christmas carols.

Alongside the musical festivities, PolishChristmas cuisine was served, a lottery wasdrawn and a fortune teller was on hand toprophesy the future for those brave enoughto listen.

The International Christmas Evening inWroc∏aw was co-organized by the AmericanChamber of Commerce in Poland, the Bri-tish-Polish Chamber of Commerce, theFrench Chamber of Commerce and Industryin Poland, the German-Polish Chamber ofIndustry and Commerce and the Scandina-vian-Polish Chamber of Commerce.

KPMG and Centrum Medyczne Enel-Med were the platinum sponsors of theevent; ING and V olvo were golden spon-sors. Warsaw Business Journal was the mainmedia partner. ●

News

Poland gets closer to PPP lift-off from the British Polish Chamber of Commerce blog by Michael Dembinski

Public private partnerships (PPPs) are seen bymany as a solution to the problem faced bymany countries – namely meeting growingdemand for infrastructure in the face ofincreasing public sector debt. A PPP is a proj-ect in which the private sector finances,designs, builds, operates and maintains publicinfrastructure. In Poland, PPPs have singularlyfailed to happen, despite a new PPP law that’sfar less proscriptive than the old law itreplaced.

While the government has published a listof over 40 projects, most of these are reallyconcessions (where the public pays directly forthe use of a facility such as a car park, toll roador sports hall) rather than ‘true PPP,’ where theoperator is paid by the public sector for makingthe infrastructure available for public use.

And of the remaining concessions, expertsassess many of these projects as being unfeasi-ble or unlikely to happen.

If we are to analyze why PPP has failed totake off in Poland, at the heart of the answermust be the public sector’s reluctance toattempt projects this way. Talk of the “fourthP” – the prosecutor – has scared off many localauthorities. An atavistic mistrust of a profit-motivated private sector also lurks at the heartof public sector attitudes towards PPP.

Looking at the UK – unquestionably theworld’s leader in PPP, with over 750 projectscompleted – one reason why the public sectorwas so quick and so effective at adopting PPPis the role of Partnerships UK.

This body, which emerged from HM Trea-sury, is tasked with supporting the public sectorin moving ahead with PPPs. Partnerships UK(now itself a public-private partnership) offersits expertise to local authorities, ministries andgovernment agencies. It is able to look at agiven project as it is being structured and assesswhether the financing would be consideredpublic debt or not (“on-” or “off-balancesheet”); whether the risks in the projects havebeen properly identified and divided; andindeed, whether or not PPP is the optimal wayof going ahead with the project.

Until now, Poland has not had such a pub-lic-sector PPP champion. At a recent meetingof the Senate’s National Economy Commis-sion, it was agreed that Poland needed such abody if it were to move ahead with PPPs on thescale required to deliver the country’s infra-structural needs. Of the solutions presented,the most convincing came from Bank Gospo-darstwa Krajowego (BGK), which is 100 per-cent-owned by the Finance Ministry.

The BPCC’s members with an interest inseeing PPP take off in P oland are all compa-nies with extensive experience of structuringand implementing PPP s. On December 16,members of the BPCC’s PPP policy group metat BGK to brainstorm how Poland’s PPP Com-petences Centre should look, how it should befinanced and how it should best operate toensure that at last things can move forward.

The BGK is not yet ready to go public withthe conclusions reached at the forum. ●

Views

BPCC Business Mixer

Date and location: January 27, 6:30 PM (after reg-istration) at Confashion Cocktail Bar & Restaurant.

For more information, log on to www.bpcc.org.pl

AmCham workshop on leadership develop-ment process for high impact

Date: February 3

For more information, log on to www.amcham.pl

BPCC meeting on new Telecoms, Media andTechnology policy group

Date and location: January 19, 9-12 PM, at the Bri-tish Embassy in Warsaw, ul. Kawalerii 12.

Please register your interest by sending an e-mailto: gabriela.jatkowska@bpcc.org.pl.

Upcoming events

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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 10-16, 2011, LI 16/01

Copernicusstarted inS∏upskDeveloper SGI Baltis haslaunched construction onits Copernicus Parkmulti-family residentialdevelopment in S∏upsk,Pomorskie voivodship.Located on ul. Miko∏ajaKopernika in the city’sdowntown area, thescheme will comprise 180units realized in twostages. The firstapartments in CopernicusPark are scheduled forcompletion in Q3 2012.The development hasbeen valued at almostz∏.40 million. SGI Baltis ispresent in both theresidential and officesectors of the Polishproperty market. Thefirm is currently involvedin 11 projects acrossPoland.

Pekaes sellsGrzybowska 81Transport, forwardingand logistics groupPekaes last month signeda sale agreement withconstruction groupUnibep concerning itsGrzybowska 81 propertyin Warsaw. Pekaes’ dealwith Unibep concernsperpetual usufruct rightsto a 2,248 sqm plot in theWola district. An officebuilding is expected to bedeveloped at the site.Unibep will acquire thereal estate if Warsaw CityHall does not exercise itspreemption rights to theproperty. ●

Sport infrastructure

National Stadium topped outPoland’s new flagshipstadium has enteredthe final stage ofconstruction

The National Stadium in War-saw held its topping out cere-mony last week, as its 1,800-metric-ton steel roof wasraised to a height of 34 metersabove the future pitch. Togeth-er with its 70-meter spire, thestructure now towers morethan 100 meters above thenearby Vistula River.

The raising of the roof,which began on December 15,was a critical operation in theconstruction schedule. Itscompletion marks the start ofthe final stage of work on theNational Stadium, a key venuefor the Euro 2012 soccerchampionship, which is to behosted jointly by P oland andUkraine.

At the topping out ceremo-ny last T uesday, W arsawMayor Hanna Gronkiewicz-Waltz flipped the switch to illu-minate the stadium.

“This will be a place of joyfor the thousands, hundreds ofthousands, millions of peoplewho will visit the stadium,”Prime Minister Donald T usksaid.

“It is also a good time toprove to all the doubters, allthe skeptics, that impossiblethings become possible whenpeople have the energy withinthem, when we are able toorganize the funds and whenwe Poles are favored with a lit-tle more luck than at othertimes in our history,” he added.

Completion of the 55,000-seat stadium is scheduled forJuly. The total cost of the proj-ect amounts to z∏.1.915 billion.

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Logistics

GGooooddmmaann wwiinnss GGddaaƒƒsskk tteennddeerrThe company willrealize a €300 millionlogisistics project inthe city

Goodman Group has won atender for the realization ofPomorskie Centrum L ogisty-czne (P omeranian L ogisticsCentre), a 500,000-sqm indus-trial and logistics complexwhich will be developed adja-cent to the newly built Deep-water Container T erminal inGdaƒsk. The project, valuedat over €300 million, will bebuilt in cooperation withInvestGDA and is expected tobecome the largest scheme ofits kind in northern Poland.

“We will commence devel-opment at the P omeranianLogistics Centre on a pre-committed basis and have theability to deliver completedfacilities within a 10-monthperiod. We are excited by the

opportunities this prime loca-tion offers, given the currentundersupply of prime logisticsand industrial facilities in

northern P oland,” B∏a˝ejCiesielczak, country managerGoodman P oland, said at apress event last month.

He added that Goodmanwill target a diverse portfolioof local, national and interna-tional companies, active

across a number of sectorsincluding maritime transport,logistics, distribution, foodand fast moving consumergoods.

“We have the flexibility todevelop tailor-made facilitiessuch as warehouses, distribu-tion centers, manufacturingfacilities and office space thatreflect our customers’ individ-ual requirements,” he said.

Goodman currently ownsand manages over 100,000sqm of facilities across Polandand has a land bank of over 30ha for future development inthe country. Ongoing projectsof the company include a10,800 sqm warehouse forNissin in T oruƒ as well as a14,500 sqm warehouse whichwill be part of the 150,000-sqm Kraków Airport LogisticsCentre development in Ma∏o-polskie voivodship.

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National Stadium topped out . . .15

Goodman’s Gdańsk deal . . . . . . . .15

Inpro’s IPO . . . . . . . . . . . . . . . . . . . . .16

Promenada sold . . . . . . . . . . . . . . .16

Ronson in Szczecin . . . . . . . . . . . . .16

Property-related stocks . . . . . . . .16

Construction forecast 2011 . . . . .17

Neinver’s Katowice work . . . . . .18

WWII Museum financed . . . . . . . .18

In this issue

1617

Lokale Immobilia looks at thechallenges ahead for the construction industry

Warsaw’s Promenada shop-ping mall has been sold for atidy sum

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The Pomeranian Logistics Centre project is valued at over €300 million

JANUARY 10-16, 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 5 (z∏.mln)

08OCTAVA 2.01 -1.47 1.85 2.55 -22.69 125,843,667 252.95

ATLASEST 3.27 -0.30 2.60 4.83 -7.63 50,322,014 164.55

BUDIMEX 102.50 0.49 72.00 106.10 35.31 25,530,098 2,616.84

DOMDEV 41.49 -1.14 38.52 61.00 -9.11 24,560,222 1,019.00

ECHO 4.95 0.20 3.71 5.40 14.06 420,000,000 2,079.00

ELBUDOWA 169.00 1.81 155.00 188.40 -1.69 4,747,608 802.35

ENERGOPN 14.17 3.43 13.52 17.10 5.04 23,827,044 337.63

ERBUD 56.50 -5.60 45.44 61.00 19.83 12,602,711 712.05

GANT 16.55 0.36 15.69 26.00 -25.68 20,499,953 339.27

GTC 24.35 -1.50 20.25 25.30 -6.31 219,372,990 5,341.73

HBPOLSKA 3.04 -2.25 2.98 4.06 -16.02 210,558,445 640.10

JWCONSTR 15.50 -3.13 11.06 18.69 30.03 54,073,280 838.14

LCCORP 1.48 0.68 1.37 1.73 -8.07 447,558,311 662.39

MARVIPOL 10.35 -2.27 10.21 22.31 -39.12 36,923,400 382.16

MOSTALWAR 59.30 -4.35 58.90 77.00 -1.17 20,000,000 1,186.00

MOSTALZAB 2.97 5.69 2.79 4.84 -31.72 149,130,538 442.92

NAFTA 23.17 -2.93 22.22 31.79 5.22 5,903,203 136.78

ORCOGROUP 27.74 2.74 19.00 33.50 0.14 14,053,866 389.85

PANOVA 30.89 1.28 23.14 37.69 34.30 8,000,000 247.12

PBG 208.00 -2.35 192.00 252.00 -0.81 14,295,000 2,973.36

PLAZACNTR 4.88 -2.40 4.44 6.80 -28.02 292,647,720 1,428.12

POLAQUA 17.66 4.07 14.94 22.50 -7.15 27,500,100 485.65

POLIMEXMS 4.01 -0.50 3.93 5.29 0.25 520,918,203 2,088.88

POLNORD 32.20 -2.22 30.10 44.00 -7.89 22,218,386 715.43

PROCHEM 25.75 -0.77 19.90 26.50 11.47 3,895,000 100.30

RONSON 1.47 -2.00 1.36 2.10 -16.95 272,360,000 400.37

TRAKCJA 4.05 -0.98 3.84 4.97 -1.22 160,105,480 648.43

ULMA 80.70 -1.71 70.00 87.95 -4.50 5,255,632 424.13

UNIBEP 10.00 0.50 5.47 10.30 79.21 33,927,184 339.27

WARIMPEX 9.85 -4.37 7.64 10.30 12.19 54,000,000 531.90

Property-related stocks

Stock market

IInnpprroo ppuubblliisshheess pprroossppeeccttuussIts stock will starttrading in February

Gdaƒsk-based developerInpro has published its issueprospectus and will begin sub-scriptions for individual andinstitutional investors later thismonth. The company, whichhopes to raise approximatelyz∏.100 million through its IPO,should debut on the W arsawStock Exchange’s main marketat the start of February.

Inpro has already ear-marked the proceeds of itsIPO for various purposes.Approximately z∏.30 million

will be spent on new develop-ments, z∏.50 million on landpurchases and z∏.13.3 millionon the acquisition of a 51-per-cent stake in developerDomesta.

The new projects willinclude Osiedle City Park andOsiedle Chmielna P ark inGdaƒsk, as well as a condohotel in Miko∏ajki. Inprowants to use z∏.15 million, z∏.10million and z∏.5 million,respectively, as downpaymentsfor the investments.

“We have a concrete devel-opment strategy which isbased on our multi-year expe-

rience and achievements.Thanks to the money from theoffering we want to consider-ably accelerate the process ofstrengthening our positionwhen it comes to the construc-tion of upmarket and upperstandard units in the mostattractive locations of Tri-city,”Piotr Stefaniak, president ofInpro, said in a statement.

He added that the invest-ment in Domesta would allowInpro to expand into the mid-market apartment segmentand that the firm would con-tinue to invest in land as wellas increase its involvement inthe commercial market.

“We also envision poten-tial expansion into other Pol-ish cities, including W arsaw,Bydgoszcz, T oruƒ and P oz-naƒ. But that will depend onhousing demand in the par-ticular region and on banks’lending policies,” Mr Stefani-ak said.

Inpro has so far realized 25residential projects spreadthroughout Gdaƒsk, Gdynia,Sopot and Jastarnia. It is cur-rently involved in a furthereight schemes comprising atotal of 1,665 units, and plansto launch four more develop-ments, with a total of 1,194units, in the next few years.

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Ronson enters Szczecin market

Developer Ronson Develop-ment has launched construc-tion on its first residentialproject in Szczecin, Zachod-niopomorskie voivodship.The investment, comprisingthe construction of a total ofnine buildings, is located onul. Duƒska and ul.Krasiƒskiego in the city’sWarszewo district.

“Entering the Szczecinmarket is a very importantelement of R onson’s geo-graphical expansion. Accord-ing to our strategy, we want toincrease the scope of our

operations, and thus sales, sothat in 2011 the level of 500apartments sold will beexceeded and in the next one-two years the annual level of800-1,000 units is reached,”said Andrzej Gutowski, thefirm’s sales and marketingdirector.

The first stage of thescheme, which is scheduledfor completion in April 2012,will comprise two four-storeystructures with a total of 82units. The apartments will besized from 36-98 sqm, withthe bulk of the offer being

two- and three-room units.Larger two-level apartmentswill be located on the build-ings’ upper floors.

Warbud is signed on asgeneral contractor.

Ronson Development iscurrently selling units in nineprojects across Poland. Theseare Verdis, Sakura, Imaginar-ium III and Nautica in W ar-saw, Impressio in W roc∏aw,Galileo in P oznaƒ, Naturalisin ¸ omianki, Constans inKonstancin-Jeziorna andGardenia in Józefos∏aw.

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The first phase of Ronson’s Szczecin scheme will deliver 82 apartments

Retail

Promenada changes handsThe shopping centerwas traded for almost€170 million

Atrium European R ealEstate has acquired thePromenada shopping centerin Warsaw from CarpathianPLC for €169.5 million.Cushman & W akefield andJones Lang LaSalle advised,respectively, the buyer andthe seller in the deal, whichhas been signed on a numberof conditions expected to befulfilled in Q1 2011.

Following the transaction,Atrium, which also owns War-saw’s R eduta and T argówekmalls, now has 19 properties inPoland.

“Promenada is a promi-nent, well-located asset situat-ed in an affluent urban resi-dential area in the capital cityof Poland which houses strongtenants and provides goodincome. I am very excited bythe acquisition and am lookingforward to implementing anumber of value enhancingasset management and devel-opment initiatives that wehave already identified,”Rachel Lavine, CEO of A tri-um European R eal Estate,commented in a statement.

“The acquisition of Prome-nada is a great success for

Atrium and one of the mostsignificant investment transac-tions on the Polish retail mar-ket this year. It is very wellestablished and one of theleading shopping center assetsin the capital,” said RichardPetersen, managing partner atCushman & Wakefield in War-saw.

Located on ul. Ostrobram-ska in Warsaw’s Praga Po∏ud-

nie district and open in 1996,Promenada offers 53,840 sqmof GLA (41,778 sqm of retailand 12,062 sqm of office space,respectively). The project iscurrently almost 94 percentleased out, with anchor ten-ants including a 4,030 sqmAlma supermarket and a 6,600sqm Cinema City multi-screenmovie theater.

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The IPO will provide cash for projects including thiscondo hotel in Miko∏ajki

JANUARY 10-16, 2011 LLOOKKAALLEE IIMMMMOOBBIILLIIAA –– RREEAALL EESSTTAATTEE www.wbj.pl 17

Logan plansWroc∏awprojectPM Group and RKDArchitects will designLogan Investments’ officebuilding in Wroc∏aw. Theinvestor, a subsidiary ofIrish developerCrownway Investments,owns a 1,320-sqm plot onul. Pi∏sudskiego near thecity’s main railwaystation. The site will hosta five-storeyoffice facility totalingsome 6,700 sqm of space.A preliminary vision ofthe building should bepresented within the nextfew weeks and it isexpected to be modeledon the architecturetypical of Wroc∏aw in the1920s and 1930s. Designwork should be finishedby mid-2011, with theensuing constructionphase taking from 12-16months.

Jasna 26 agentchosenDeveloper MermaidProperties has appointedCB Richard Ellis as theexclusive leasing agentfor its Jasna 26 officeproject. The building is afive-storey tenementhouse dating back to the1940s. It will beconverted into a class-Aoffice facility with over4,300 sqm of space.Jasna 26 is scheduled forcompletion in H1 2012. Itwill join MermaidProperties’ growingoffice portfolio, whichalso includes LibraBusiness Centre andMiodowa 10 in Warsawand the Cross Pointdevelopment in ¸ódê. ●

Construction industry

BBuummppss oonn tthhee rrooaadd ttoo rreeccoovveerryyPoland’s constructionsector seems to haveput the worst behindit, but optimismremains in shortsupply

The construction industryseems to be rebounding aftera difficult 2010 and is expect-ed to see moderate growththis year. Market players havenot been exuding optimismand confidence of latethough, and some analystsclaim that a return to pre-cri-sis results is unlikely to hap-pen any time soon.

According to a recentreport by CEEC R esearch,KPMG and Norstat, the con-struction industry could growby 3.2 percent this year, whichwould mark considerableimprovement on 2010 figures.But the research, which wascarried out in Septemberamong companies active inthe construction market,reflects dampened optimismamong the sector’s firms.

While a similar poll con-ducted in March had revealed

expectations of 4.7 percentgrowth in 2010, by Septemberthe forecast was already downto a measly 0.8 percent. Com-panies were admittedly report-ing a 10 percent increase in theuse of their production capaci-ties, but many were nonethelessconcerned about growing diffi-culties in securing new orders.

Almost 37 percent of theconstruction companies polledin September admitted theyhad fewer contracts than in thethe same period of the previ-ous year, while 35 percent saidthe number remained at thesame level. In the case of 28percent, the number of con-tracts had increased y/y.

“The construction marketin Poland was the only one inthe Visegrad Group that didnot see losses in 2009. Thesector started to see seriousdifficulties as late as at thebeginning of 2010, when, dueto various reasons, including aheavy winter, its results weremore than 10 percent worsethan in 2009,” said StevenBaxted, head of the construc-tion and real estate advisory

team at KPMG in Poland.He added that the losses

had been made up for by theend of October, but the sec-tor’s results could hardly bedescribed as impressive. Thesummer season, althoughmore active than the difficultbeginning of the year, hadseen many construction com-panies disappointed.

“In the near future there areno prospects for a return to thehigh growth level seen beforethe crisis,” Mr Baxted said.

Meanwhile, data fromCoface Poland on bankrupt-cies in P oland in the Q1-Q32010 period illustrates thepains that the constructionindustry went through lastyear. The sector stood outfrom all the others understudy with its 35 percent y/yincrease in the number ofcompanies going bust.

Gathering paceSome of the major problemswhich caused the 2010 slow-down, however, seem to havebeen transient. If residentialdevelopers considerably cutdown on investment in 2009and thus contributed to theconstruction sector’s woes, MrBaxted noted, last year theiractivity was on the rise again,which provided new contractsto the whole industry.

Bart∏omiej Sosna, seniorconstruction analyst at PMRPublications, was also opti-mistic, noting that the lastmonths of 2010 showed risingactivity in the constructionmarket. He pointed out thathousing is likely to see growthin 2011 and that a markedincrease in office and publicbuilding construction couldalready be seen last year.

“After months of design

and land preparation work,construction will finallylaunch on many large roadprojects. Investment in[sewage] schemes, co-finan-ced with EU money, is alsodeveloping very dynamically,”Mr Sosna said. He added thatas far as the energy sector isconcerned, the majority oflarge investments are still inthe preparatory phase.

All of this led PMR lastautumn to forecast up to 10percent growth for the Polishconstruction sector in 2011,granted favorable weatherconditions. However, follow-ing recent cuts in road invest-ments, the number of proj-ects underway may slightlydecrease in the second half ofthe year, so a growth rate ofapproximately eight percentseems more likely, Mr Sosnastated. AAddaamm ZZddrrooddoowwsskkii

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Rebuilding, but slowlyAnnual growth in the Polish construction industry, 2006-2011*

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JANUARY 10-16, 2011LLOOKKAALLEE IIMMMMOOBBIILLIIAA –– RREEAALL EESSTTAATTEE18 www.wbj.pl

Green Towers’first tenantSkanska Property Polandand Ernst & Young havesigned a lease agreementfor 1,800 sqm of officespace in the Green Towersoffice project in Wroc∏aw.The latter company hasthus become the firsttenant in the LEEDpre-certified property.Green Towers willcomprise two 10-storeybuildings offering a totalof approximately 23,000sqm of GLA. Phase one ofthe project is scheduledfor completion in March2012.

Intel inside@parkAIP 3 Investment, asubsidiary of AllconInvestment, has signed alease agreement withIntel Technology Polandfor office space on twofloors of theALLCON@park 3 buildingin Gdaƒsk. Intel is theexclusive tenant in theother two facilities in thecomplex, which were builtfor the company in 1998and 2005. The third phaseof the ALLCON@parkproject is expected to beturned over for use thismonth. ●

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

Warsaw Business Journal presents Real Estate weekly newsletter

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Neinver launchesKatowice project

Developer Neinver and PolishState R ailways have com-menced the main construc-tion stage of a major infra-structural and commercialproject in Katowice, Silesiavoivodship. Demolition workis now underway on the city’srailway station building and anearby overpass. Once this isfinished, Strabag, the generalcontractor of the scheme, isexpected to enter the con-struction site to work on anew railway station, the Gale-ria Katowicka shopping mall,an office building and anunderground bus depot.

“The investment in Katow-ice is an exceptionally impor-tant and prestigious project forus. Katowice is among the

fastest developing cities inPoland. We are positive thatthe integrated transportationand business center which willemerge after the reconstruc-tion will change the city itselfand will have a beneficialimpact on the local economy,”Barbara T opolska, managingdirector at Neinver Polska, saidin a statement.

The investment, whosetotal value is estimated at €240million, will deliver over 53,000sqm of retail and 24,000 sqm ofoffice space, respectively. Theproject has been designed bythe SUD Architectes studioand its retail space is beingcommercialized by Cushman& Wakefield.

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Construction on the Galeria Katowicka shopping mallwill start soon

Government to pay for World War II MuseumThe government announcedlast week that it would setaside almost z∏.360 millionfrom the budget to pay for thenew World War II Museum inGdaƒsk.

Professor P awe∏ Mach-cewicz, director of the futuremuseum, told the Polish PressAgency that he estimated thecost of construction alone tocome to around z∏.230 million.

Construction work isscheduled to start on themuseum in May 2012. Thesite, a 1.7-ha plot located onul. Wa∏owa in an historic partof Gdaƒsk, was donated by thecity authorities.

The museum’s design wasawarded to Studio Architek-toniczne Kwadrat on Septem-ber 1, 2010, and negotiationswith the firm should be con-cluded by the end of thismonth. Belgian firm Temporawill design the interiors for theexhibitions.

Once finished, the museumwill provide approximately23,000 sqm of floor area andthe main exhibition will occu-py 4,000 sqm. In addition toexhibition space, it will have alibrary and reading rooms, aresearch section and historicalarchives.

“Our neighbors devote

huge resources to promotingtheir vision of 20th century his-tory,” professor Machcewiczsaid. “Poland also has to takepart in the European discus-sion of 20 th century history,including World War II. This isa duty for a large Europeancountry, and narrative muse-ums play a key role in such dis-cussions. The HolocaustMuseum in W ashington is

such an example. It is difficultto talk about the Holocaustwithout reference to it.”

The museum is due to openofficially on September 1,2014, to mark the 75th anniver-sary of the outbreak of WorldWar II.More information about themuseum can be found atwww.muzeum1939.pl

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3.12

35

3.09

85

3.09

48

3.0

3.5

30.1

2

31.1

2

03.0

1

04.0

1

05.0

1

07.0

1

PLN-RUB

0

.098

2

0.09

70

0.0

968

0.09

64

0.09

55

0.0

962

0.08

0.10

30.1

2

31.1

2

03.0

1

04.0

1

05.0

1

07.0

1

PLN-100JPY

3.67

78

3.64

40

3.65

90

3.58

43

3.59

28

3.57

04

3.5

4.0

30.1

2

31.1

2

03.0

1

04.0

1

05.0

1

07.0

1

currency rates

WIG20 fallson “bank tax”

Stocks report

Polish stocks proved to be amixed bag last week, with theblue-chip WIG20 index los-ing 2.2 percent on the week,and the medium stocksbenchmark, the mWIG40,gaining 0.8 percent.

Financial stocks led theWIG20 lower, probablybecause of Finance MinisterJacek Rostowski’s announce-ment that P oland wouldintroduce a special tax onbanks. It is hard to determinehow the tax will affect banks’balance sheets, but investorschose to sell on the news.PKO BP suffered the mostand its shares plunged bymore than seven percent.BRE Bank and P ekao alsosuffered.

Copper prices finally con-tracted, and in doing so neg-atively affected KGHM’sshare price. The miner lostmore than six percent on the

week. CEZ was the best per-forming WIG20 stock, rising10 percent.

Most other sectors sawgains and chemicals stockswere particularly strong. Thesector benchmark, the WIG-Chemia, soared by nearly 10percent, with P olice andCiech the top picks. Investorshave probably been accumu-lating those shares as chemi-cals rose by more than 60percent in 2010.

FMCG market playerEurocash was also in thenews. It bought the distribu-tion arm of rival Emperialast week. The latter’s CEOlater indicated that his firmmight be interested intakeovers this year, withBomi mentioned as a possi-ble target. Eurocash andBomi rose by 14 percent, butEmperia lost more thanseven percent. ●

A week ofemotion

Currency report

The first week of 2011 fullysatisfied those investors count-ing on increased volatility anddramatic moves on currencymarkets. The collapse of theeuro, fueled by growing con-cerns about Spain and Portu-gal, overshadowed almost allother occurrences. The futureof the European currencylooks worse each week.

The only similar eventlast week was seen on thegold market, where the com-modity saw its biggest fall inmonths. The dollar, mean-while, seemed to be thebiggest winner of the week,as it appreciated againstalmost all other currencies.

The Polish currency alsoevoked lots of emotion, pri-marily due to the verbalinter-vention of NBP presidentMarek Belka. His mention ofthe possibility of higher inter-est rates triggered an incredi-

bly strong move last Tuesday.But it is hard to predict if suchactions will be enough giventhat the Polish currency faceschallenges from the seriousproblems brewing in otherEuropean countries.

This week looks to havestrong potential for the dol-lar, Swiss franc and Japaneseyen. It also seems that globalstock markets may declinefurther, bringing down Euro-pean currencies.

Last week’s falls weresoftened by positive infor-mation from the US aboutunemployment. However,payrolls published on Fridaysuggested that recent ADPfigures on non-farmemployment change were aone-off surprise rather thana sign of more permanentgrowth. As a result, thisMonday will not be as opti-mistic as the last one. ●

Tomasz Jerzyk, technical analyst DM BZ WBK SA

Kamil Cisowski, X-Trade BrokersDom Maklerski SA

SOU

RC

E: N

BP

Major indices

Top 5 Closing % change (week) 52-week high 52-week lowPOLREST 0.46 84.00 1.63 0.24TECHMEX 0.46 53.33 2.30 0.27MEWA 0.56 19.15 0.82 0.01BOMI 9.29 17.59 15.18 6.10CIECH 28.35 16.62 36.95 19.50

WIG 47,075.74 (January 5 closure)

Change for the week: -1.74% 52-week high: 47,911.46

Change year to January 5: -1.74% 52-week low: 37,322.52

Top 5 Closing % change (week) 52-week high 52-week lowCEZ 127.80 4.58 148.80 118.70ASSECOPOL 55.45 2.12 60.65 49.24KGHM 166.50 0.30 173.00 86.50PGNIG 3.58 0.28 3.91 3.16BZWBK 213.00 -0.47 220.90 168.10

Bottom 5 Closing % change (week) 52-week high 52-week lowCELTIC 23.98 -40.05 22.68 72.00FON 0.55 -24.66 0.73 0.40EKOEXPORT 6.85 -18.55 9.03 1.96BEST 9.10 -17.12 30.00 9.10ARCUS 7.13 -14.61 9.46 5.84

Bottom 5 Closing % change (week) 52-week high 52-week lowPKNORLEN 45.19 -6.44 49.00 31.05PKOBP 41.70 -4.99 46.81 35.06BRE 293.00 -4.56 312.50 220.10PEKAO 178.00 -4.56 196.50 148.30PGE 22.69 -3.03 24.04 19.70

WIG20 2,705.35 (January 5 closure)

Change for the week: -2.54% 52-week high: 2,787.09

Change year to January 5: -2.54% 52-week low: 2,173.25

mWIG40 2,817.56 (January 5 closure)

Change for the week: -0.37% 52-week high: 2,828.02

Change year to January 5: -0.37% 52-week low: 2,213.51

sWIG80 12,234.48 (January 5 closure)

Change for the week: 0.43% 52-week high: 12,627.87

Change year to January 5: 0.43% 52-week low: 10,980.45

NewConnect 62.66 (January 5 closure)

Change for the week: 1.59% 52-week high: 64.09

Change year to January 5: 1.59% 52-week low: 49.70

WIG-Banki 6,787.23 (January 5 closure)

Change for the week: -3.77% 52-week high: 7,262.73

Change year to January 5: -3.77% 52-week low: 5,440.90

DJIA11,690.34 (Jan 5 close)

0.91% (for the week)

CHANGE: 0.91%

(year to Jan 5)

52-week high: 11,795.80

52-week low: 9,596.04

NASDAQ2,701.58 (Jan 5 close)

1.30% (for the week)

CHANGE: 1.30%

(year to Jan 5)

52-week high: 2,712.35

52-week low: 2,061.14

S&P5001,276.60 (Jan 5 close)

1.34% (for the week)

CHANGE: 1.34%

(year to Jan 5)

52-week high: 1,278.17

52-week low: 1,010.91

FTSE1006,044.50 (Jan 5 close)

0.80% (for the week)

CHANGE: 0.80%

(year to Jan 5)

52-week high: 6,090.50

52-week low: 4,790.00

DAX6,933.25 (Jan 5 close)

-0.89% (for the week)

CHANGE: -0.89%

(year to Jan 5)

52-week high: 7,087.84

52-week low: 5,433.02

NIKKEI22510,380.76 (Jan 5 close)

0.35% (for the week)

CHANGE: 0.35%

(year to Jan 5)

52-week high: 11,408.20

52-week low: 8,807.41

world stock indices

46,000

46,500

47,000

47,500

48,000

48,500

08.1

2

09.1

2

10.1

2

13.1

2

14.1

2

15.1

2

16.1

2

17.1

1

20.1

2

21.1

2

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

2,600

2,650

2,700

2,750

2,80008

.12

09.1

2

10.1

2

13.1

2

14.1

2

15.1

2

16.1

2

17.1

1

20.1

2

21.1

2

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

2,700

2,750

2,800

2,850

2,900

08.1

2

09.1

2

10.1

2

13.1

2

14.1

2

15.1

2

16.1

2

17.1

1

20.1

2

21.1

2

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

11,500

11,700

11,900

12,100

12,300

12,500

08.1

2

09.1

2

10.1

2

13.1

2

14.1

2

15.1

2

16.1

2

17.1

1

20.1

2

21.1

2

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

61

62

63

64

65

08.1

2

09.1

2

10.1

2

13.1

2

14.1

2

15.1

2

16.1

2

17.1

1

20.1

2

21.1

2

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 6,700

6,800

6,900

7,000

7,100

7,200

08.1

2

09.1

2

10.1

2

13.1

2

14.1

2

15.1

2

16.1

2

17.1

1

20.1

2

21.1

2

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

Other indices

JANUARY 10-16, 2011TTHHEE LLIISSTT20 www.wbj.pl

Audit and accounting companiesRanked by revenue from auditing and accounting in 2009

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 audit and accounting companies .For more information about Book of Lists contact Joanna Raszka, tel. 22 639–8567 ext. 119; jraszka@valkea.com

Bookof Lists

Rank

Company nameAddressTel./FaxE-mail

Web page

Revenue fromauditing andaccounting

(z∏. mln)Total revenue

(z∏. mln) Accounting /Audit

Taxconsultancy /

Other

Audit /Accounting Ta

x co

nsul

tanc

yM

&A OtherSelected clients

Totalemployees /

Full-timeemployees /

Year founded inPoland

AccountantsInternationally licensedauditors /Poland-licensedauditors

Top local executive /Title

1

Ernst & Young Rondo ONZ 1, 00-124 Warsaw22 557-7000/22 557-7001Ernst.Young@pl.ey.com, www.ey.com/pl

WND200.0(1)

211.0(1)

182.0(1)

WND424.0(1)

444.0(1)

423.0(1)

-48%

23%29%

✓✓

✓✓

Business consulting; financial advisory; ITconsulting; effectiveness management;financial risk management; business riskmanagement; abuse risk management;

IT risk management; Europeanconsultancy; transaction advisory

Asseco Poland; Getin Holding; Grupa Lotos;GTC; ING Bank Âlàski; KGHM Polska Miedê;Mostostal Warszawa; Multimedia Polska;

Netia; Pern; Poczta Polska; PolimexMostostal; Tauron Polska Energia

1,1971,0781990

1072480

Duleep AluwihareManaging Partner of Ernst & Young in

Poland

2

PricewaterhouseCoopers Al. Armii Ludowej 14, 00-638 Warsaw22 523-4000/22 523-4040pwcpoland@pl.pwc.com, www.pwc.com/pl

WND194.9(1)

188.9(1)

165.0(1)

WND389.1((1)

399.7(1)

388.8(1)

7%43.1%

29.3%20.6%

✓✓

✓✓

Public subscription offers advisory; taxadvisory; financial; economic and

strategic for companies and public sectorobjects; transactional; human capital

management; risk management advisory;advisory for investors; other development

BRE Bank; Grupa ˚ywiec; PKO BP; ITI/TVN;Polska Telefonia Cyfrowa; Real; Grupa Shell

Polska; KGHM; Kompania Piwowarska;Samsung Electronics; Volvo Polska; ElectroluxPoland; Toyota Motor Manufacturing Poland;

RWE Polska

1,3761,3761990

753576

Olga Grygier - SiddonsCEO/President

3

KPMG ul. Ch∏odna 51, 00-867 Warsaw22 528-1100/22 528-1009kpmg@kpmg.pl, www.kpmg.pl

95.2176.8

176.6(1)

159.0(1)

200.3455.0

440.3(1)

375.0(1)

2%38%

21%39%

✓✓

✓✓

Law; business; financial; accountingadvisory services; risk management

PKN Orlen; PeKaO; Media Saturn; Bank BPH;BZ WBK; PGE Polska Grupa Energetyczna; GE

Money Bank; Bank Millennium; Polsat;Skanska; Cemex; Bank Handlowy; Carrefour

Polska

1,2081,1301990

238998

Andrzej Âcis∏owskiSenior Partner

4

Deloitte Audyt Sp. z o.o.Al. Jana Paw∏a II 19, 00-854 Warsaw22 511-0811/22 511-0813dpoland@deloittece.com, www.deloitte.com/pl

66.1127.5125.9100.6

190.4340.3371.8319.6

-37%

29%34%

✓-

✓✓

Consulting; financial advisory; riskmanagement

Telekomunikacja Polska; PZU; ArcelorMittal;Fiat; PGE; PGNiG; Enea; Ciech; WPP; Procter

& Gamble

1,0649511990

-3958

Marek MetryckiPresident

5

BDO Sp.z o.o.ul. Post´pu 12, 02-676 Warsaw22 543-1600/22 543-1601office@bdo.pl, www.bdo.pl

26.443.040.133.7

31.051.650.245.0

30%54%

6%10%

✓✓

✓✓

Introducing co-partnerships into publicrotation IPO; business advisory; financial

advisory; finance acquisition; specialaudits; advice for trial proceedings; IT

advisory; structural funds acquisition; ITaudit; trainings

Action; Ambra; ARP; Aviva; Ceramika NowaGala; Comarch; Famur; Indykpol; Jupiter TFI;JW Construction; KDPW; Kofola; Kronospan;

Laboratorium Kosmetyczne Dr. Irena Eris;PCC; Petroinvest; Polnord; Trakcja Polska;

Uniwersytet Jagielloƒski; Yawal

3243131991

76634

André HelinPresident

6

Rödl & Partner (Roedl Audit Sp. z o.o.; RoedlOutsourcing Sp. z o.o.)ul. Prosta 51, 00-838 Warsaw22 696-2800/22 696-2801warszawa@roedl.pl, www.roedl.pl

20.337.935.832.1

32.762.242.537.0

35.6%25.4%

15.2%23.8%

✓✓

✓✓

Law advisory; human resourceconsulting; IT consulting WND

3722621992

145220

Liliane Preußer; JensJungmann; Therese BaginskiPartner; Managing Partner, Expert Audi-

tor; Partner, Expert Auditor

7

Mazars w Polsce (2)

ul. Pi´kna 18, 00-549 Warsaw22 255-5200/22 255-5299main@mazars.pl, www.mazars.pl

WND34.0(3)

36.0(3)

30.0(3)

WND41.0(3)

40.0(3)

36.0(3)

31%52%

17%-

✓✓

✓✓

-

Air Liquide; Alior Bank; AXA; Bonduelle;Camaieu; Citroen; Danone; DM IDM;Farmacol; Fortis; G+J; Gras Savoye;

Hochland; Karmar; Konsorcjum Stali; Leclerc;Orze∏ Bia∏y; Peugeot; Publicis; Vistula

1601451992

50412

Michel KiviatkowskiManaging Partner

8

Grant Thornton Fràckowiak Sp. z o.o. Pl. Wiosny Ludów 2, 61-831 Poznaƒ61 850-9200/61 850-9201info@gtfr.pl, www.gtfr.pl

22.525.7(1)

23.8(1)

18.7(1)

32.435.7(1)

31.9(1)

23.7(1)

26.2%43.2%

21.9%8.7%

✓✓

✓✓

Economic advisory

Alchemia; Amica Wronki; Europejski FunduszHipoteczny; Hydrobudowa Polska; Koelner;

Komputronik; LPP; Makrum; PBG; QXLPoland; PayU; Ceneo; otoMoto; Polkomtel;

Monini; RWE Dea Polska

2212211993

19-

34Cecylia Pol

President

9

Baker Tilly w Polsce (4)

ul. Królewska 27, 00-060 Warsaw22 653-3550/22 827-6915contact@bakertillypoland.eu; www.bakertillypoland.eu;

9.919.618.120.3

23.339.937.435.9

40%8%

5%47%

✓✓

✓✓

Services for public limited companies;initial public offerings; due diligence;

management consulting; economic andlegal analysis; tax advisory; payroll

service outsorcing; full HR andrecruitment services

PL2012; Trilux; World Courier; Samsonite; M& M Aerospace Hardware; Philips & Lite -OnDigital Solutions Corp; Lilium; North Coast;

MCI Management; Grupa CaelumDevelopment; CHI Polska; Euromark; NFI

Midas

2902801990

9928

Steven Foster; JoeSmoczyƒski

Presidents

10

Grupa Kapita∏owa PKF Consultul. Elblàska 15/17, 01-747 Warsaw22 560-7650/22 560-7663pkfconsult@pkfconsult.pl,www.pkfconsult.pl

WND15.312.910.5

WND19.717.715.6

18%59.5%

5%17.5%

✓✓

✓✓

Financial advisory; issuing IPOprospectus; debuts on New Connect and

Catalyst; accounting; training activity;structural funds; due diligence; valuations

Ecco Shoes Polska; Corporate Finance Polska;Omega Resource Group; Nutriad - AD

International NV; N.V. Besix; JDSU Polska; GKBomi; GK Kopex; Euroafrica; GK Jutrzenka;

PKP Intercity; BBI Capital NFI; GK ZMRopczyce

1831491993

10-

23Ewa Jakubczyk-Ca∏y

President

11

TPA Horwath (5)ul. ˚ydowska 1, 61-761 Poznaƒ61 851-3860/61 851-3862office@tpa-horwath.pl, www.tpa-horwath.pl

5.98.88.96.9

10.616.718.912.9

26%26%

44%4%

✓✓

✓✓

Corporate finance; HR advisory; Europeanconsulting

ERBUD; Strabag; Deka Immobilien; ENEA;Raiffeisen; Feroco; Winkelmann

9972

2005

2613

Krzysztof HorodkoPresident

12

Extor Sp. z o.o.ul. Wyrzyska 9A, 02-455 Warsaw22 266-0550/22 266-5088info@extor.pl, www.extor.pl

4.07.65.62.7

4.07.65.62.7

100%-

--

-✓

-- Payroll services

RGA; Mahia (QuickSilver); ADP InternationalServices; Restaura; Monster International;Ingersoll - Rand Technical Service; CrownRelocations; State Street Bank; Logista;

Brunswick Marine Poland; Riverside Europe;Arteria; RGA Branch Poland; B&B Hotels

8070

1994

64--

Rafa∏ StrzeleckiPresident

13

FK Partner Sp. z o.o.Al. Jana Paw∏a II 29, 00-867 Warsaw22 653-7200/22 653-7210warszawa@fk-partner.pl, www.fk-partner.pl

2.57.35.45.0

3.87.36.95.4

100%-

--

✓✓

✓✓

HR outsourcing; training; IT outsourcing;financial advisory

BPH TFI; Lexmark Polska; Union InvestmentTFI; Grifols Polska; Grupa Polnord; Miejskie

Przedsi´biorstwo Taksówkowe;Przedsi´biorstwo Miernictwa Górniczego;

Averion

5533

2002

17-7

Krzysztof ¸ogiewa; KarolÂwietlicki vel W´gorek

President; Board Member

14

System Rewident Sp. z o.o.ul. Rakowiecka 30A, 02-528 Warsaw22 380-0380/22 380-0381info@system-rewident.com.plwww.system-rewident.com.pl

4.06.76.56.3

4.27.16.76.5

65.1%27.4%

5.3%2.2%

✓✓

✓✓

HR and payroll; business consulting;stocktaking; trainings

SSAB Swedish Steel; CB Richard Ellis;Heitman; Soyter; Coppenrath & Wiese; B3System; Bawaria Motors; Deloitte; SAP

Polska; SGGW; Irestal Polska; Altmann; DIYPoland; Kayla Investments; Szczecin

Shipyard; UBB Polska

6865

1995

40-

11Jadwiga Szabat

President

15

Morison Finansista Audit Sp. z o.o.ul. G∏ówna 6, 61-005 Poznaƒ61 654-4102/61 875-2950biuro@morison.pl, www.morison.pl

2.95.65.84.0

3.47.17.04.3

WNDWND

WNDWND

✓✓

✓✓

Corporate finance; controlling; investingadvisory

Mi´dzynarodowe Targi Poznaƒskie; AgencjaNieruchomoÊci Rolnych; Kopalnia W´gla

Brunatnego “Konin” w Kleczewie; OponeoPL; Wuprinz; Wittchen; Chata Polska;

Piecobiogaz; Energetyka CieplnaOpolszczyzny; Polskie Radio

9062

1989

29-

32Lidia Skud∏awska

President

16

AUXILIUM SA Al. Pokoju 84, 31-564 Kraków12 425-8053/12 425-9147auxilium@auxilium.com.pl, www.auxilium.com.pl

4.65.44.12.5

4.75.84.42.5

36.6%55.7%

6.1%1.7%

✓✓

✓✓

Stock market advisory

Doradcy 24; Marsoft; Maximus; Inbook;Liberty Group; FON; Teleforceone; Intersport

Polska; Zak∏ad Automatyki Polna; MorskaStocznia Remontowa; Fabryka UrzàdzeƒMechanicznych i Spr´˝yn FUMiS-Bumar;Âlàski Uniwersytet Medyczny Katowice

16228

1995

22-

134Zofia Podhorodecka

President

17

Moore Stephens Central Audit Sp. z o.o. ul. Sienna 82, 00-815 Warsaw22 652-2183/22 323-6550biuro@centralaudit.pl, www.centralaudit.pl

2.95.3(3)

4.7(3)

2.7(3)

3.15.8(3)

4.8(3)

2.8(3)

37%52%

9%2%

✓✓

✓✓

- WND4944

2005

2413

Janusz Bia∏eckiPresident

18

Baltic Accountants and Consultants Kurt IversenAl. Wojska Polskiego 11, 01-524 Warsaw22 869-0666/22 869-0660contact.us@baac.com.pl, www.baac.com.pl

2.64.84.34.1

2.95.34.94.8

68%22%

5%5%

✓✓

✓- WND WND

3131

1990

1713

Kurt IversenDirector

19

CTN Polska Sp. z o.o.ul. Koszykowa 54, 00-675 Warsaw22 630-8444/22 630-8441office@ctn-polska.pl, www.ctn-polska.pl

2.54.53.62.3

2.54.53.62.3

100%-

--

✓✓

✓✓

WND WND3030

2001

15-1

Micha∏ DeskurPresident

1st half of 2010 / 2009 / 2008 / 2007

SpecialtyFee split

JANUARY 10-16, 2011 TTHHEE LLIISSTT www.wbj.pl 21

Notes: NA = Not Applicable, NR = Not Rank ed, WND = Would Not Disclose. Research for The List was done in August/September 2010. Number ofemployees and ownership structure are as of August 2010. All information pertains to the companies’ activities in P oland. Companies not responding to oursurvey are not listed.Footnotes: (1) Financial year: July 1-June 30; (2) Group of Mazars & Guérard Audyt Sp. z o.o. and Mazars & Guérard P olska Sp. z o.o.; (3)Financial year:September 1-August 31; (4) The Baker Tilly in Poland consists of Baker Tilly Poland Sp. z o.o.; Baker Tilly Smoczyƒski i Partnerzy and Contract Administration Sp.z o.o.; (5) TPA Horwath consists of TPA Horwath Accounting Sp. z o.o. and TPA Horwath Horodko Audit Sp. z o.o.; (6) Financial y ear: October 1-September 30

To the best of WBJ ’s knowledge, the information is accurate as of press time. While every effort ismade to ensure accuracy and thoroughness, omissions and typographical errors may occur . Correc-tions 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 towbjbol@wbj.pl. Copyright 2010, Valkea Media SA. The List may not be reprinted or reproduced inwhole or in part without prior written permission of the publisher . Reprints are available.

Rank

Company nameAddressTel./FaxE-mail

Web page

Revenue fromauditing andaccounting

(z∏. mln)Total revenue

(z∏. mln) Accounting /Audit

Taxconsultancy /

OtherAudit /

Accounting Tax

cons

ulta

ncy

M&A Other

Selected clients

Totalemployees /

Full-timeemployees /

Year founded inPoland

AccountantsInternationally licensedauditors /Poland-licensedauditors

Top local executive /Title

20

Korycka, Budziak & Audytorzy Sp. z o.o. ul. Solec 22, 00-410 Warsaw22 522-2390/22 522-2391kba@kba.com.pl, www.kba.com.pl

2.44.4(6)

4.2(6)

3.6(6)

2.65.1(6)

4.8(6)

4.7(6)

55%32%

12%1%

✓✓

✓✓

Accounting advisory; due diligenceJupiter NFI; Apator; PRI Pol - Aqua; Pekao

Fundusz Kapita∏owy; Roto Frank; UniwheelsProduction; ATS

2724

1992

18-5

Ewa OrkwiszewskaPresident

21

Biuro Audytorskie Sadren Sp. z o.o.ul. Âniadeckich 10, 00-656 Warsaw22 621-6231 /22 625-1131biuro@sadren.com.pl, www.sadren.com.pl

2.13.53.63.5

2.23.73.73.7

66%28%

4%2%

✓✓

✓- Financial and legal expertise

Fundacja ‘Fundusz Wspó∏pracy’; Cushman &Wakefield; Prevoir Vie Grupe Prevoir; Stora

Enso Polska; Stora Enso Wood Supply; AsusuPolska; Politechnika Warszawska; Merrler

Toledo; Atlantic; Narodowe Centrum Badaƒ iRozwoju; Polski Komitet na Rzecz Dzieci

UNICEF; Athletic International

5555

1989

35-

10Wojciech Sadren

President

22

Grupa Gumu∏ka - Audyt Sp. z o.o.ul. Jana Matejki 4, 40-077 Katowice32 253-0715/032 201-1765audyt@gumulka.pl, www.gumulka.pl

2.03.42.82.8

3.65.84.34.0

19%39%

38%4%

✓✓

✓✓

Evaluation; polls; acquiring EU funds forproject realization; valuation expertise

Warsaw City Hall; PARP; MRR; Poczta Polska;Kombinat Koksotechniczny Zabrze; FM Polska

6565

2004

816

Rados∏aw Gumu∏kaPresident

23

Estelligence Sp. z o.o. ul. Dàbrowskiego 62, 02-561 Warsaw22 845-0372/22 845-0372kontakt@estelligence.com, www.estelligence.com

1.62.71.50.9

1.72.71.50.9

95%-

-5%

-✓

-- WND Ghelmaco Poland; Epic Games Poland; IMS

Polska; Outbox; People Can Fly

2320

2004

15--

Agnieszka SzwedowiczWND

24

Zespó∏ Us∏ug Finansowo - Ksi´gowychBilans - Servis Sp. z o. o. Grupa Finans - Servisul. Zagnaƒska 84, 25-528 Kielce41 368-6669/41 368-6070audyt@bilans-servis.com.plwww.bilans-servis.com.pl

WND2.6(1)

2.5(1)

2.2(1)

WND2.9(1)

2.8(1)

2.6(1)

18%73%

5%4%

✓✓

✓✓

Other economic and financial casestudies

Kolporter in Kielce; ZSM ‘Polmo’; BydgoskieZak∏ady Elektromechaniczne ‘Belma’; Pojazdy

Szynowe ‘Pesa Bydgoszcz’; Optima RadixVita Plus Tadano; Zak∏ady Chemiczne “Nitro-

Chem” in Bydgoszcz; Zak∏ady NaprawczeTaboru Kolejowego “Miƒsk Mazowiecki”

5223

1991

11-

33Andrzej Mucha

President

25

Perfecta Audit Services Sp. z o.o.ul. Grójecka 38, 02-314 Warsaw22 822-1368/22 823-9462perfecta@audit.pl, www.audit.pl

1.12.11.81.6

1.22.22.01.7

86%7%

-7%

✓✓

-✓

WND Mill-Yon; Kelly Taylor Polska; Schmalz; BurkertContromatic; Ecoval Dairy Trade

1412

1992

9-3

Lech ZieliƒskiPresident

26

Agencja Bieg∏ych Rewidentów Badex Sp. z o.o.ul. Reymonta 45, 45-072 Opole77 454-5410/77 454-0898badex@badex.com.pl, www.badex.com.pl

1.11.61.61.6

1.21.71.71.6

7%86%

2%5%

✓✓

✓✓

WND Technical University in ¸ódê; ZRE Katowice;University of Wroc∏aw

314

1992

28-

28Adam Karcher

President

26

Agencja Us∏ug Ksi´gowo-Prawnych BiegliRewidenci Sp. z o.o.ul. Sandomierska 105, 25-324 Kielce41 366-2321/41 366-3579biegli_rewidenci@pro.onet.pl, www.bieglirewidenci-kielce.com.pl

1.11.61.51.5

1.11.71.61.6

1.9%95.1%

-3%

✓✓

✓- WND

Autocentrum; Centrum ProdukcyjnePneumatyki Prema; Ekoplon; Energy

Management and Conservation Agency;Gliwicka Agencja Turystyczna; Huta CynkuMiasteczko Âlàskie; Tabex; Chemar; DEK;

Drogowiec - PL; HSW; Ryfarm

455

1992

--

40Leokadia Zagórska

President

28

MK CONSULTING Sp. z o.o., Sp. k.ul. Mariensztat 8, 00-302 Warsaw22 538-9160/22 538-9161mk@mkconsulting.pl, www.mkconsulting.pl

0.91.51.30.9

0.91.51.30.9

100%-

--

-✓

--

MSR/MSSF; controlling; outsourcing;shelf companies; accounting advisory; HRand payroll; legal and customs services

Polar Import Polska (SAAB); Atlas Copco;StayPoland; Annik; Cheminova Polska; StraxPolska; Pedersen & Partners; Inter Energia;

Woodfill & Presler; 4P research mix; AmoenaPolska

1618

2005

14--

Monika ZaluskaPresident

29

Mac Auditor Sp. z o.o.ul. Nowoursynowska 131A, 02-797 Warsaw22 649-2766/022 649-2766macauditor@macauditor.pl, www.macauditor.pl

1.01.41.31.0

1.21.61.41.3

56%35%

-9%

✓✓

✓✓

Accounting advisory WND2510

1993

11-7

Gertruda Krystyna ÂwiderskaPresident

30

Optant Sp. z o.o.ul. Berezyƒska 39, 03-908 Warsaw22 617-2233/22 617-2233biuro@optant.com.pl, www.optant.com.pl

0.50.80.80.6

0.50.80.80.6

99%-

-1%

-✓

-✓

WND Fleishman Hillard; Apli Polska; We R. SupplyEurope

98

2004

3--

¸ukasz KaliƒskiManaging Partner

30

TBR Kowalczyk Sp. J.ul. Indiri Gandhi 11, 02-776 Warsaw22 647-2002/22 644-4346tbr@tbr.pl, www.tbr.pl

0.50.80.70.5

0.50.80.70.5

100%-

--

-✓

-- WND Magnolia Polska; AWT International Polska;

Papilart

118

1997

4--

Arkadiusz KowalczykManaging Partner

32

THOMAS Sp. z o.o.ul. P∏ocka 13, 01-231 Warsaw22 862-8800/22 862-8810thomas@thomas.pl, www.thomas.pl

0.20.61.21.0

0.40.91.31.0

WNDWND

WNDWND

-✓

✓✓

- Advantech Poland; BHKK; Bose; DatecsPolska; Signalbau Huber

87

1993

6--

Tomasz WikliƒskiPresident

NR

Calanul. Ch∏odna 29, 00-867 Warsaw22 455-2555/22 455-2666info@calan.pl, www.calan.pl

WNDWNDWNDWND

WNDWNDWNDWND

WNDWND

WNDWND

-✓

✓✓

WND WND1211121997

WND16

Arnaud TualManaging Partner

NR

Exco A2A Polska Sp. z o.o.Al. Niepodleg∏oÊci 106, 02-585 Warsaw22 847-6117; 22 847-9193war@exco.pl, www.exco.pl

WNDWNDWNDWND

WNDWNDWNDWND

90%-

-10%

-✓

✓✓

Contracting audit; HR and payrolladvisory; projects management; due

diligence; controlling; VAT tax collectionWND

5045

1999

WNDWNDWND

Raphael VieuxmaireMember of the Board; Co-partner

NR

Process Solutions Sp. z o.o.Al. Jerozolimskie 81, 02-001 Warsaw22 695-0295/22 695-0299info-pl@ps-bpo.com, www.ps-bpo.com

WNDWNDWNDWND

WNDWNDWNDWND

WNDWND

WNDWND

-✓

--

HR and payroll; tax compliance;implementation of ERP systems;

business planning and modeling; start-upsupport; corporate administration

British Telecom; WizzAir; Worldmark;Interserve; Caterpillar; Garmin; Gefco;

Telecom Italia; Toro; Turbomach

2020

2007

16-1

Tomasz TàkielManager

NR

Staniszewski & Richter Sp. z o.o.ul. Lwowska 10/21, 00-658 Warsaw22 622-4198/22 621-2719sr@auditors.pl, www.auditors.pl

WNDWNDWNDWND

WNDWNDWNDWND

26%46%

6%23%

✓✓

✓✓

- First Property Group; Generik; Trox; GreenBear Corporation; Ceraco Group

2323

1993

1532

Alexander StaniszewskiManaging Partner

NR

TMF Poland Sp. z o.o.Pl. Pi∏sudskiego 1, 00-078 Warsaw22 456-4500/22 456-4599poland@tmf-group.com, www.tmf-group.com

WNDWNDWNDWND

WNDWNDWNDWND

WND-

--

-✓

--

Human resource and payroll; domiciliaryand management services; corporate

secretarial services (including shelfcompanies); banking services;

international VAT registration; VATrecovery for non-Polish businesses; fiscal

representation for non-EU businesses

WND1111111996

62--

Armin R. Kirchner, Miko∏ajPluciƒski

Board Members

NR

Trinity Corporate Services Sp. z o.o.Al. Jerozolimskie 56C, 00-803 Warsaw22 379-9440/22 379-9441trinity@trinitycs.com, www.trinitycs.com

WNDWNDWNDWND

WNDWNDWNDWND

70%-

-30%

-✓

--

HR services; management reporting;market entry; corporation secretariat;domicile address; shelf companies &

SPVs; copartnerships registration;eliminations; special projects

WND1581542004

WND2-

Thomas RavensdaleCEO

1st half of 2010 / 2009 / 2008 / 2007

SpecialtyFee split

JANUARY 10-16, 2011EENNTTEERRTTAAIINNMMEENNTT22 www.wbj.pl

Faced with the seemingly end-less Polish winter, it’s importantto get out and shake off thecabin fever. Some people mightwant to try to forget the snowyweather for a few hours, but forthose who aren’t utterly sick ofthe cold, History MeetingHouse (Dom Spotkaƒ z Kultu-ry) has a different idea.

The W arsaw museum,which specializes in 20th centu-

ry history, is exhibiting a collec-tion of old photographs of win-ters past. The exhibition –“Snow of Bygone Days. Winterin the Cities” (“NiegdysiejszeÊniegi. Zima w metropoliach”)– includes halcyon snapshots ofWarsaw, Vienna, Berlin, Paris,London and New York.

This is a celebration of themetropolis as winter wonder-land. On display are idyllicscenes of work and play, each apoignant reminder that thecold weather is not just aboutrunny noses and malfunction-ing public transportation.

The exhibition runs to mid-March. In F ebruary, mean-

while, History Meeting Housealso expects to run some work-shops for children. T opicsinclude “Symbols of Warsaw,”“How did great-grandfatherplay?” and “W arsaw streets,then and now.” It’s Polish-lan-guage only, unfortunately,but free. Interested and ableparties should contacta.nowacka@dsh.waw.pl oredu@dsh.waw.pl.

Entry to “Snow of BygoneDays. Winter in the Cities” isalso free of charge.

EEBBBBFor more info, log on to

www.dsh.waw.pl

We may have put 2010 behindus, but some of the goodthings begun last year remainthe same. T eatr Bajka’s“Sounds of Bajka” series is aprime example.

Launched last autumn, theconcert cycle presents well-known Polish artists up closeand personal, performing

acoustic arrangements oftheir repertoires. T o datePatrycja Markowska andKasia Kowalska as well asbands Ira and Bracia havetaken to the stage at T eatrBajka.

The popularity of theseconcerts has led the theater tocontinue “Sounds of Bajka” in2011. First up will be NataliaKukulska, whose career beganat the tender age of 10 withsongs about puppies anddolls. As an adult, her workhas remained largely in R&Band electro-pop territory – thekind of songs which take a fairamount of rearrangement fora small-stage setting. Thatmay explain why her concertwill be electro-acoustic, ratherthan completely unplugged.

Teatr Bajka is a cozyvenue. It feels a bit like a highschool auditorium, but thestage is intimate enough andthe acoustics are good. And itwill be interesting to see howKukulska – whose last twoalbums have been synthesizerheavy – adapts her perform-ance to the theatrical environ-ment.

“Sounds of Bajka” willcontinue in F ebruary withperformances by P oluzjanciand Anita Lipnicka & JohnPorter, and in April with aconcert by Raz, Dwa, Trzy.

EE BBllaakkee BBeerrrryy

Tickets for Natalia Kukulska’sconcert run z∏.59, z∏.89 andz∏.109. For more info and book-ings, log on to www.teatrbajka.pl

Photography

WWiinntteerr iinn tthhee cciittyy

Concerts

EEcchhooeess ooff BBaajjkkaa iinn 22001111“Sounds of Bajka”concerts:

Natalia Kukulska – Jan 31Poluzjanci – Feb 21 Anita Lipnicka &John Porter – Feb 28Raz, Dwa, Trzy – Apr 4

Teatr Bajka ul. Marsza∏kowska 138

Natalia Kukulska will perform at Teatr Bajka on January 31

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“Snow of Bygone Days.Winter in the Cities”runs to March 15History Meeting Houseul. Karowa 20

CO

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AJK

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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 10-16, 2011 LLAASSTT WWOORRDD www.wbj.pl 23

sare_268x81.ai 22-03-10 13:25:37

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

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

Welcome to 2011, damn itTech Eye

Techeye came very close to boy-cotting the New Y ear. We had ourpicketing signs ready (“R efudiate2011!”, “Keep your hands offour junk, 2011!”) andhad a primes p o t

picked out,halfway between

the local vicarage and an infamoushouse of burlesque (along thebusiest thoroughfare in the village).

We even sent a letter to Ban Ki-moon at the United Nationsextolling the virtues of 2010 (“slight-ly rumpled, but very comfortable”).

And if those efforts failed to con-vince people to abandon the wholeconcept of the New Y ear, Techeyewas prepared to establish an under-ground movement dedicated tofighting it. This band of temporally

challenged guerrillas would mountfearsome strikes on 2011 (mainlythrough quirky flash mobs) beforemysteriously disappearing, cloakedin their stubborn refusal to acknowl-

edge the present. It would all beterribly existential.

So why didn’t it come topass? Well, we were head-

ed out to picket whenone of the local fish-wives saw our sign and

shouted, “Oy, what abou’CES 2011, ye munghead?”

The annual Consumer Electron-ics Show (CES) is the biggest, mostimportant tech fair of the year... andwe nearly forgot. All thoughts ofpicketing were immediately aban-doned and we rushed off to buy aridiculously overpriced plane ticketto Las Vegas.

How to describe CES? Cacopho-ny. Chubby, salivating nerds every-where. Scantily clad models feigninginterest in chubby nerds. More 3DTVs than you can shake a cross-eyedkid at.

In a word: Nirvana.One item thronged on the show-

room floor was T oshiba’s as-yet-unnamed tablet (some are simply

calling it the Toshiba Tablet). It’s gota 10.1 inch, HD display (comparedto the iPad’s 9.7 inch screen) and itwill run Honeycomb, the firstAndroid operating system built with

tablets in mind, rather than smart-phones. The machine should hitshelves in the first half of 2011; noprice point has been announced, butexpect it to compete with the iPad.

Another interesting gadget wasKodak’s Playfull, a slender videocamera “made for social butterflies

and social networking superstars.”The camera’s software is designed tomake it as simple as possible toupload to Y outube, F acebook orwhat-have-you, and it boasts full1080p HD video and 5 MP HD stills.There’s also the option to recordusing a “70’s film look” effect, a fea-ture presumably targeted at peoplewho love disco, “Shaft” and cheesydisaster flicks.

The world’s last Kodachromefilm processing facility closed upshop in December, marking the endof a photographic era, but it’snice to see that Kodak itselfhasn’t disappeared. Its Playfullproduct comes out this springat a price of $149.95 (z∏.441).

Finally, Techeye was smit-ten with Lenovo’s IdeaCentreA320 AIO, which it’s toutingas the world’s slimmest all-in-one computer. It’s got a 21.5-inch widescreen display andruns on Intel’s new Core i5processor. Other featuresinclude HDMIin/out andup to 8GBof RAM anda 750GB HDD.

The A320 should be available inJune, starting from $699 (z∏.2,057).Be warned though – it will probablymake you look fat.

That’s all the CES goodness wecould fit this time, but Techeye willcover a few more gadgets next week.In the meantime, maybe we’ll start apetition to hold the show everyweek, or at least twice monthly. BanKi-moon should expect a letter tothat effect very soon. ●

Ever engaged in a temporally challenged form of existential protest? Let us know: techeye@wbj.pl

COURTESY OF LENOVO

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TOSH

IBA

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DAK