BPO Sector Employment Pushes Aside Mighty Coal Poland’S Business Services Sector, Growing Quickly, Will Eclipse Employment Numbers in the Coal Sector by 2013

November 2012 vol. 4 no. 7(31) BPO sector employment pushes aside mighty Coal Poland’s business services sector, growing quickly, will eclipse employment numbers in the coal sector by 2013.

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November Herkules leads Belgian ﬁ ghts battle Top 10, to recover looms up 245% 142,000 Euro

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Cover Story November 2012 4 BPO sector employment pushes aside mighty Coal vol. 4 no. 7(31) (4) VII Polish Outsourcing Forum; (6) International Outsourcing Forum, Sopot; Published by: (8) ABSL Conference, Sopot BiznesPolska Media sp.z o.o. EU Budget ul. Długa 44/50, bud. D, lok 704, 00-241 Warszawa 10 Push for EU budget deal ahead of November summit tel.: 022 831 7062 General Manager and Editor: Equities Thom Barnhardt ([email protected]) 11 Poland’s Exchange-traded funds (ETFs) give foreign Publisher: investors easy access to Polish market Craig Smith ([email protected]) Editorial staff and writers: Entrepreneurs Leon Paczyński, Monika Tutak Research team coordinator: 12 Sir Branson inspires Warsaw Magda Adamczyk 13 Chopin Airport City Advertising Sales: tel.: 022 831 706 2 Food Exports mobile 508-143-963 14 SIAL Paris Food Expo pulls in 120,000 visitors Graphic Design: Sławek Parfi anowicz Real Estae sparfi anowicz.wordpress.com 16 Poland makes a strong showing at Expo Real in Subscribe to BizPoland Magazine Munich Annual subscribers to BizPoland Magazine receive our monthly magazine, as well as fi ve Legal business directories for free: Outsourcing 18 Belgian fights to recover swindled 142,000 Euro in Poland, CityInvestPoland, Top Offi ces, Top Shopping Centres, and Wind Power in Energy Poland. 500pln for one year. 19 The Road to Nowhere: the Government’s Proposed Law on Biogas 20 Energy sectors’ overview 22 Solar boom coming to Poland FDI News (24) Chinese–Polish economic cooperation; (25) In Brief Politics 29 Excerpts from Address of Prime Minister Donald Tusk delivered at the Sejm on 12 October 2012 City Investment News (32) Kraków; (33) Szczecin; (33) Katowice; (34) Łódź; (35) Poznań; (36) Wrocław; (36) Trójmiasto; (37) Lublin Chamber of Commerce News (38) United States; (38) Australia; (38) Holland; (39) Germany; (39) Switzerland; (40) Czech Republic; (40) Japan; (40) Belgium; (40) United Kingdom; (41) Ireland; (41) Portugal; (41) Canada; (42) India; (42)Spain Events (43) Polish entrepreneurs get together in Scotland again; (44) Foundation for Details at Corporate Social Responsibility CEO Breakfast; Food Producers Congress – Opole; [email protected] (45) Fashion Week Łódź; (46) BPCC Annual Ball; (47) Berlin Aviation Fair; Warsaw or call +48-22-831-7062 Olympic Nights Gala; Macaroni Tomato Warszawa opens mens clothing shop Cover Story www.bizpoland.pl BPO sector employment pushes aside mighty Coal

Poland’s business services sector, growing quickly, 38 new service centres and over 20 new will eclipse employment numbers in the coal sector by 2013, investors came to Poland in 2011, with American investors leading the pack. with unexpected benefits. Recent investors include Qatar Airways with a new center in Wroclaw, and Bayer with a new center in Gdansk. Both the cit- It wasn’t planned this way. And almost no And as the world takes notice of ies of Katowice and Szczecin – coy about one saw it coming. Poland’s potential and performance, naming names – have alluded to landing Yet growth in the business services sec- the quality of jobs are moving upscale, major new service centers in the coming tor (alternatively referred to as BPO or and the distribution of jobs is spread- months. outsourcing, and including shared service centers) has outstripped even the most optimistic forecasts. With total employment of less than 15,000 in 2004, when Poland Poland has an ability to gain market share joined the European Union, the sector now as the EU crisis rumbles on employs nearly 100,000 people – and is set to displace the mighty, politically-power- ful, and union-infested coal mining industry, which is expected to shrink to 95,000 ing throughout the country, particularly “The global crisis has worked to our jobs in 2013. north and east. benefit by giving us the prospect of fur- Indeed, the world’s crises seem to be a According to research by ABSL ther growth in our industry and the boon to Poland’s outsourcing businesses. (Association of Business Services Leaders), creation of new jobs in Poland”, said VII Polish Outsourcing Forum

Roadshow’s annual Outsourcing Forum, held in Warsaw, was held together with major partners ASPIRE and PwC, under the patronage of Deputy Prime Minister and Minister of Economy Waldemar Pawlak, Marshal Adam Struzik Mazowiecki, and under the patronage of PAIiIZ, the National Chamber of Commerce and PARP. This year’s guests of honor were: Dariusz Rosati - Member of Parliament, former Minister of Foreign Affairs, Janusz Steinhoff - former Deputy Prime Minister and former Minister of Economy, and Richard Patru - Partner, PwC. All three guests emphasized Poland’s place in the global economy and how it affects the perception of further development of Poland’s outsourcing industry. Workshops addressed issues such as Shared services and outsourcing for Polish firms, public sector outsourcing, and business models of Indians expanding in Poland. Other issues raised including ap- propriate education of students and col- laboration with universities, and building 4 greater industry awareness. ■ November 2012 www.bizpoland.pl Cover Story

Marek Grodzinski, Vice-President BPO, Credit Suisse to move more IT jobs to Poland Capgemini Poland. While the “American” crisis rattled the world in 2008-2009, the “European” cri- Credit Suisse announced in October that billion Swiss francs in cost savings by sis is now centre-stage, unsettling capital it will cut an extra $1.1 billion of costs, 2015, up from a goal of 3 billion francs it markets and threatening the very ex- including axing more jobs, after its third- set in July and an earlier figure of 2 billion. istence of the European Union. Yet as quarter net profit more than halved due The bank, which is already cutting Poland’s outsourcing sector benefited to losses on the value of its own debt. 3,500 staff or 7 percent of its workforce, from the American crisis by boosting Volatile financial markets, a dearth of said job losses would be inevitable to its employment numbers, it looks set to deals and tighter capital rules in the wake achieve the extra savings, but did not say benefit from the European crisis as well. of the 2007-9 financial crisis are forcing how many more staff would go. Certainly not immune to the troubles of investment banks across the world to It has already combined the separate its western European neighbors and major slash costs, and the euro zone debt crisis operating platforms of its two main units trading partners, Poland’s exclusion from has pushed many to cut back even more. - private banking and investment bank- the Eurozone - once a source of shame - has Profits from Credit Suisse’s investing - and will increasingly shift informa- now become a source of safety. ment bank rose, helped by a pick up in tion technology jobs to Poland and India American firms were forefront in the bond trading that has already been noted as part of its cost saving drive, finance period 2009-2011 in their quest to reduce by U.S. investment banks and is expected chief David Mathers told journalists. costs. Scouring the globe, many chose to to boost European peers. Crosstown rival UBS also announced outsource jobs to traditional locations such However, that was offset by weakness massive job cuts in October, to protect as India. Yet those with a major European in Credit Suisse’s private banking busi- profits as it withdraws from riskier in- presence have found that Poland’s proxim- ness, which caters for wealthy clients. vestment banking areas which soak up ity to western Europe –geographically and Credit Suisse said it was targeting 4 large sums of capital. ■ culturally – provides an advantage that non-European locations can not provide. Poland has reached a point where it is Global 10,000”, said Andrew Hallam, A simple sign tells the story of how able to offer both competitive labor rates founder of ASPIRE, the association of out- hot the sector is: conferences. In and highly-skilled staff capable of carrying sourcing/shared services investors, based September, both ABSL and the ASPIRE- out more complex services. in Krakow. He said that while the growth backed Roadshow held major BPO/SSC “Major interest in Poland is now com- in recent years has been spectacular, the ing not just from the Global 500, but the best is yet to come. continued on page 6

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continued from page 5 the financial and political advantages of city’s brand and trumpet the potential of landing new business services investors. their young, well-educated workforce. Comparable to a pressure valve, cities like Different models and shifting sands conferences just one week apart. IOF, Kielce and Lublin are keen to attract jobs Firms such as EDF, with a strong presence the London-based media group, held its that cities like Krakow might now eschew, in Poland with multiple energy-related annual outsourcing conference in Sopot such as call centres and rote business pro- subsidiaries, have chosen to outsource in October. The City of Katowice weeks cesses. And Eastern Poland, a fabricated “with a twist”. Instead of the traditional ago organized an outsourcing conference. construction of Poland’s poorest five establishment of a shared-services centre SSON held a conference in Stockholm in mid-October focused on the sector, including opportunities in central Europe. And Shared Services Week will be held in Berlin in mid-November, with a strong focus on HQs are no longer asking if it can be business services in Poland. “The crisis will probably bring new done in Poland, but rather they are asking business to outsourcing companies,” said their managers why it can’t be done in Poland”, Marcin Tchórzewski, vice president for Poland of US financial services provider said one shared services executive State Street, as western European firms look to reduce employment costs further. The recent massive layoffs announced by UBS in its western European offices will surely mean more UBS jobs in Poland. voivods, is tapping into substantial sub- serving western Europe or the world, EDF sidies from the European Union, whose has set up a shared services centre for only Pressure valve of Eastern Poland Regional Development Programme aims its Polish subsidiaries, deftly dodging the As the traditionally-strong outsourc- to narrow the gap between less-developed potential political fallout of “outsourcing” ing cities such as Krakow and Wroclaw regions and their wealthier neighbors. jobs from France. The emphasis in this continue to attract new investment and Mayors of cities in eastern Poland such model is on operating efficiencies, not la- higher value-added jobs, such as finan- as Kielce, Bialystok, Rzeszow, Lublin and bor cost savings. cial analysis and mobile technology R&D, Olsztyn are aware of the need to support Polish firms are also increasingly aware smaller Polish cities are keenly aware of speculative office development, build the of the advantages and efficiencies to be International Outsourcing Forum, Sopot

Arena International, the London- based media group, organized its annual European outsourcing conference in Sopot, which was financially supported by the City of Gdansk and InvestGDA. Running over 3 days, the program combined a series of master classes, keynote presentations, panels sessions and roundtables delivered by senior executives from the industry’s most active outsourcers, industry associa- tions, consultants and solution providers, covering all aspects of outsourcing and location selection. The aim of this combined format was to provide senior executives with everything they need to know about current BPO, ITeS and location options and strate- gies. Participants discussed best practices, networked with peers facing similar challenges and gained insight into both established and emerging outsourcing suppliers and location alternatives from around the 6 world. ■ November 2012 www.bizpoland.pl Cover Story gained through consolidation and bun- Qatar Airways to open customer care centre in Poland dling of jobs in one location. While the labor cost advantages may be minor, the op- Qatar Airways said it is planning to open a location, we found the city of Wroclaw to be erating efficiencies and reduction of office new multi-lingual customer care centre in the most suited for our European contact costs can be significant value drivers. The Poland as the airline continues to open new centre in providing excellent customer ser- recent opening in Pila, a relatively small routes to Europe. vice solutions to our customers in the region. town north of Poznan, of an outsourcing The centre will be based in the Polish “With our move to Wroclaw, Qatar centre for a Polish energy utility is another city of Wroclaw and will start operating Airways is making a major investment in sign of the growing awareness of the ad- from early next year, the airline said in a the local economy and the creation of jobs vantages of outsourcing for Polish firms. statement. which will provide Polish citizens with an And much like Poland is “east” for west- The announcement comes two months exciting opportunity to work for a world- ern Europe, east for Polish firms is eastern ahead of the airline’s new route to the class airline. Poland and Ukraine, where wages are sub- Polish capital Warsaw, set to begin from “As we continue to grow as a company, stantially lower than in major Polish cities. December 5 with four-flights-a-week direct so will our new customer contact centre Accounting Plaza, recently acquired, last from the carrier’s Doha hub. creating even more opportunities,” added year set up operations in the Ukrainian The contact centre will initially be staffed Al Baker. city of Lwow, which is attractive to Polish by 100 employees, the statement added. Wroclaw Mayor Rafal Dutkiewicz said: firms since a large percentage of the pop- Qatar Airways CEO Akbar Al Baker said: “This is great news for the people and city ulation speaks Polish. And Impel, the “As a five-star airline we are committed to of Wroclaw and we assure Qatar Airways Wroclaw-based outsourcing firm, recently providing our customers with a seamless of providing our full support to make this announced expansion plans for Ukraine travel experience not only in the air, but at a highly successful business venture for a and Russia. every touch point. world-class airline that will soon be flying Public-sector outsourcing is virtually “Following a rigorous search for a suitable to Poland.” ■ non-existent, and presents another opportunity for growth, as state-owned en- terprises are squeezed between budgetary document management and storage, fi- Indians coming constraints and a growing awareness that nance and accounting, and HR/personnel), Another emerging player in Poland’s out- they must improve their return on assets. the Polish government and its various min- sourcing sector are the Indians. While the While the US and UK governments are a istries and departments are just now wak- Americans’ expansion has been largely major force in outsourcing (everything ing from a long slumber and being forced from real estate management, cleaning, to consider outsourcing more services. continued on page 8

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continued from page 7 the Indians who are working and traveling locations it already has in the region. It frequently to Poland. plans to launch its Investment Analytics service later in 2012, and by 2015, the driven by cost-reduction and smoother From single services to company will recruit nearly 600 profes- interaction with the European market, multi-functional sionals, to support its various financial Indian firms are coming from the other As Poland’s outsourcing sector grows up services. direction – being driven by their clients and matures, global firms are increasingly “Poland has become a key European lo- to offer services for their European opera- using Poland as a base for multi-functional cation for fund accounting, securities valu- tions. Wipro, a pioneer in the Tricity mar- business services. Instead of only provid- ation, exchange traded derivatives and ket, has blazed the trail for Indian firms, ing basic accounting services, for examples, hedge fund administration,” said Joseph having set up operations several years firms are shifting more work to Poland, in- Antonellis, who is vice chairman of State ago with a focus on IT. Gdansk recently cluding HR/compliance, procurement, and Street and leads all Europe and Asia-Pacific landed WNS, a large Indian client which real estate asset management. Global Services and Global Markets. has plans to set up a F&A centre serving “Many of the centers are the head- western Europe in multiple European quarters of outsourcing organizations for Poland as a top European shoring languages, a task nearly impossible to do Europe or the EMEA region”, said Andrew destination from Bangalore. Hallam of ASPIRE. 2011 saw Poland strengthening its posi- “Many more Indian firms are looking at Indeed in early spring, BNY Mellon, a tion as a leading global shoring destina- setting up operations in Poland”, said J.J. provider of investment management and tion. It was named by Everest as the most Singh, founder of the Indo-Polish Chamber investment services, announced plans mature offshoring location in Europe and of Commerce, which organizes bilateral to open a new Global Delivery Centre in one of the Top 5 worldwide. Poland is the trade conferences and events between Wrocław, where staff will work in the areas world’s “Offices in smaller cities attract IT Poland and India each year. of fund accounting and investment opera- outsourcing - FT.com” third most popular Another advantage for Poland, according tions. “Poland is a central location within shared services location after India and to Singh, is that Poles do not need visas to Europe, offering high-quality staff and China, according to KPMG. Also Hackett travel around the EU, they are in the same infrastructure,” said Martin Ring, who is Group identified Poland as one of the most time-zone as western Europe, and share le- leading the development of BNY Mellon’s interesting offshoring venues for interna- gal, linguistic and cultural characteristics operations in Wroclaw. tional investors and Kraków was ranked with their customers. Indians, for exam- Another global financial institu- 11th globally in the TOP 100 outsourcing ple, still need visas to enter the Schengen tion, State Street, opened a new office destinations by Tholons. Poland currently zone, an annoyance that continues to rile in Kraków in May, adding to the two accounts for 40% of the total headcount in ABSL Conference, Sopot

The 3rd ABSL Conference took place in September in Sopot, and attracted more than 350 representatives of the leading SSC, BPO, ITO, and R&D companies, the government, local authorities, as well as companies supporting the growth of the sector. Conference Special Guests included such renowned personalities such as: Lech Wałęsa, former President of Poland, Nobel Prize Winner Jerzy Buzek, former Prime Minister of Poland, President of the European Parliament in 2009-2012 Tomasz Arabski, Head of the Chancellery of the Prime Minister, Chief of Permanent Committee of the Council of Ministers Paweł Orłowski, Undersecretary of State, Ministry of Regional Development Numerous representatives of local authorities attended the event. Mayors of Bydgoszcz, Białystok, Gdańsk, Katowice, Lublin, Poznań and Radom took part in Also numerous panel discussions, case views of the sector, Business Intelligence a panel discussion dedicated to the co- study presentations and workshop ses- and Big Data, LEAN management, and operation between local authorities and sions devoted to such topics as outsourc- attitudes of Generation Y towards the 8 investors. ing and offshoring trends, journalists’ workplace. ■ November 2012 www.bizpoland.pl Cover Story outsourcing centres in Central and Eastern outsourcing centres are finance and ac- employers are increasingly competing for Europe (CEE). counting, IT as well as research. a talent pool who are not only experts in “Business Process Outsourcing and The predominant countries of origin areas of specialization such as IT but also Shared Service Centres account for most of are those within the European Union have a general knowledge about the sector the projects of the Polish Information and (France, Germany, UK, Sweden, and the the company is active in. Foreign Investment Agency (PAIiIZ). 30 Netherlands) as well as the United States. The dominant three markets in respect out of 149 investors we currently work with The sector gives employment to univer- of headcount in the services sector are in Poland represent the offshoring busi- sity graduates and students with fluent Warsaw, Kraków and Wroclaw with SSC ness which is an equivalent of over 7700 English, German, French, Italian and and BPO/ ITO staff respectively of 20,000, potential new work places.” said Slawomir Spanish as well as other less popular for- 10,000 and 10,000. In addition, Tri-City Majman, President of PAIZ. eign languages such as Danish, Swedish, and Poznan are also recently receiving a lot of interest from BPO/ ITO and SSC investors. McKinsey & Company and Samsung invested in Poznan in 2011 while Bayer, OIE Support and Metsa Group have all commit- The shift in perception of Poland ted to the Tri-City market, as well as the recently announced Indian firm WNS. The is significant as more multinationals seven biggest Polish agglomerations i.e. open centres here. Warsaw, Kraków, Wroclaw, Lódz, Silesia, Tri-City and Poznan have about 80% of all service centres in Poland, driven by strong universities and higher-education centres, and a reasonably wide availability of office In respect of headcount, PAIZ estimates Norwegian, and Dutch amongst other. space, albeit differences exist between par- that 45% of the existing “outsourcing” Services are delivered in a total of 34 dif- ticular markets. centres in Poland are Business Process ferent languages with a typical employee “This is the sector with potentially Outsourcing (BPO) centres and IT out- being 29-30 years old with approximately Poland’s biggest employment growth,” says sourcing centres (ITO), followed by Shared 3 years of professional experience. This Jacek Levernes, head of the Association of Service Centres SSC (35%) and Research is unlike only a couple of years ago when Business Service Leaders in Poland, one of and Development centres R&D (20%). Most SSC and BPO/ ITO centres were recruit- two groups representing the shared office typical processes executed by Poland-based ing mainly new graduates. Interestingly, and outsourcing industry. ■

9 2012 November EU Budget www.bizpoland.pl Push for EU budget deal ahead of November summit EUROPEAN diplomats are pushing to secure a swift deal on the bloc’s next seven- year budget, believing a Nov. 22-23 summit offers the best chance of agreement - saying the need to solve bigger issues may work to defuse the political challenges.

At stake is nearly €1 trillion of investment between 2014-2020 in infrastructure projects, agriculture and research, designed to help spur the economic growth Europe needs to emerge from its debt crisis. London is calling for the deepest cuts, but “We have made clear that we believe a The desire to reach agreement at a sin- if offered a deal that safeguards its multi- freeze in real terms is what should happen gle summit appears at odds with recent billion euro rebate and cuts some 100 bil- given that it has not been possible to achieve shadow boxing by EU governments, with lion euros from the total, Cameron could see a modernization or any major change in the British Prime Minister David Cameron a chance to win back some EU goodwill for budget.” Sweden’s Prime Minister Fredrik publicly threatening to veto a deal if his little pain. Reinfeldt told reporters on Tuesday. demands are not met. If no deal is struck, the EU’s 2013 budget It would also buck an EU trend for long- would roll over with an automatic 2 percent in- Poland drawn-out talks over the multi-year bud- crease based on inflation, which should act as Poland, Hungary and other EU members get, which in the past has required at least an extra incentive for net contributors such as from the former Soviet bloc, set to benefit two summits to get the unanimous agree- Britain and Germany to reach a compromise. most from the spending plans, are opposed ment needed. That means that if Britain vetoes a deal, it to any cuts, and each carries its own veto “Differences between EU member states could end up paying more than it wants. in the talks. seem to be so big that the negotiations “The UK may have to take a little water The European Parliament could also would last much longer than currently with its wine, but November could be the use the power granted to it under the expected,” said Carsten Brzeski, senior best chance for a good deal, because they’re 2009 Lisbon Treaty to vote down any deal European economist at ING bank. not necessarily going to get a better one if reached by EU governments if its calls for But with euro zone countries keen to they wait,” said another EU diplomat who increased funds are ignored. focus their efforts on crisis response mea- spoke on condition of anonymity. Around one-third of EU funds to be al- sures, and with poorer EU countries wary Others believe Cameron risks painting located to Poland under the 2014-2020 of any delays to the new spending plan, himself into a corner with his talk of a veto budget will be used to implement trans- diplomats insist that a one-shot deal is and needs a longer-term vision. port investment projects, said Elzbieta possible and remains the best option. “If the UK is going to play the hard line it Bienkowska, Minister for Regional “The best chance for a deal at the November has said it would play, then I think there is Development. summit is the fact that, for many member very little scope to find a compromise which Bienkowska believes that the funds states, they have bigger fish to fry,” said one works for everyone,” said Fabian Zuleeg, will be used to carry out railway, road EU diplomat involved in the discussions. chief economist at Brussels think tank the and airport construction projects, with Even British officials have talked up the European Policy Centre. the bulk of spending to be on railroad chances of a November deal, despite the “If the UK is purely looking at how things projects. The funds will be also used to government’s political posturing. play in the British media and with Tory back- fund the construction of expressways. Cameron goes into the talks in a rela- benchers, it becomes very difficult to find a According to the National Development tively strong position, with one of his main compromise here in Brussels.” Strategy adopted by the government, priorities - keeping hold of the country’s While Britain was described by one senior Poland should have 2,800 km of express- rebate - assured if no deal is reached. EU official as the biggest problem in the bud- ways by 2020. Currently, there are 900 He also has strong allies in Germany, get talks, it is far from being the only one. km of this type of roads in Poland, so Finland and the Netherlands, among oth- Sweden, a net contributor to the EU and 1,900 km will need to be built in the next ers, in his bid to cut the overall level of which has long called for reform of the com- eight years. EU spending proposed by the European mon agricultural policy, is also expected to 10 Commission last year. play hardball. Source: Independent.ie November 2012 www.bizpoland.pl Equities Poland’s Exchange-traded funds (ETFs) give foreign investors easy access to Polish market

Investors seeking broad exposure to the Poland’s Biggest Winners and Losers on the Warsaw Stock Exchange Polish equity market might find EPOL an (year-to-date 2012): interesting pick. Launched in May 2010, the fund seeks to match the price and yield Top 10 of the MSCI Poland Investable Market Index, before fees and expenses.

The product focuses largely on the large Name 2 Jan. 1012 30 Oct. 2012 change (%) Notes HERKULES 0.37 1.29 248.65 This crane operator bounced back from lows, but on low volume. The fi rm has expanded its operations from supporting cap segment of the Polish market and construction fi rms to the fast-growing wind energy sector, which requires cranes to erect their wind turbines. holds 45 securities in its basket. The majority of holdings are classified as blend BEST 13.73 35 154.92 BEST S.A. is one of the leading debt collection companies within the Polish fi nancial services market and an expert in the fi eld of charge-off debt services. The company recovers debt portfolios and off ers debt recovery services, which are stocks from a style perspective. The fund particularly suitable for large-scale operating banks, fi nancial institutions and telecommunication companies. The fi rm’s strong share performance in 2012 may be a contrarian indicator for Poland’s economy in 2013. is heavily concentrated in its top 10 hold- KREZUS 6.12 15.5 153.27 A play on gold and coff ee. NFI Krezus S.A. owns eCoff ee sp. z o.o. (100% owned) and 50% of Gold Investments sp. z o.o.. ings with nearly 69% of its total assets. The Based in Toruń, the company manages ELIZA jewelry shops, off ering a wide range of jewelry articles of gold, silver, jewels as well as brand watches, jewelry accessories and imitation jewelry. top three companies combined make up GRAAL 5.69 12.65 122.32 Poland’s largest producer of canned fi sh products. Graal has been on the market since 1989. Through 8 subsidiary for nearly 34% of its portfolio. companies, Graal sells tinned fi sh, tinned meat, smoked fi sh, sea food, caviars, frozen fi sh, pickles, salinity, fi sh salads, From a sector perspective, the product vegetable salads and ready dishes. has a certain tilt towards the financial sec- ZPUE 115.5 240 107.79 ZPUE S.A. produces equipment for cable lines and overhead power lines such as: container transformer stations, MV switchgears, LV switchgears, pole transformer stations and apparatus for overhead power lines, which is used in secondary tor making up 42% of the ETF. Materials, distribution in power distribution companies and industrial plants in Poland, Europe and the world. The company provies energy, utilities and telecommunication power engineering installations in new, modernized and renovated power plants. IMC 8.1 16.43 102.84 Industrial Milk Company is an integrated agricultural company in Ukraine. In May 2011 IMC did its IPO on the Warsaw services comprise the next four major sec- Stock Exchange. In addition to the company’s main operational activites (cultivation of grain & oilseeds crops, potato production, dairy farming, storage and processing of grain & oilseeds crops), IMC is large owner of agricultural land in tors, with a combined 47% share. Ukraine, and is among Ukraine’s top-10 industrial milk producers. EMCINSMED 7.05 14.09 99.86 EMC Instytut Medyczny is subject to a takeover or major investment by EQT VI Limited fund. EMC is Poland’s largest owner of hospitals and clinics on the private healthcare market. Within 10 years the company has grown from a local company managing a hospital in Wroclaw into a network of medical facilities, expanding consistently throughout Polish and abroad as well. WIELTON 2.34 4.65 98.72 Wielton is Poland’s biggest semi-trailers and trailers producer, and one of the 10 leading producers in Europe. Its customers consist of polish transportation, construction, production, agriculture and distribution companies, also foreign vehicle and semi-trailers dealers, especially from: Russia, Ukraine, Lithuania, Latvia, Czech Republic, Bulgaria, Romania and the European Union. LPP 2019.5 3953.5 95.77 Based in Gdansk, LPP designs and distributes clothing under its own brands. Design is done in Gdansk, with all production outsourced to the Far East under the strict control of the LPP’s Shanghai offi ce. Brands include RESERVED, CROPP, PROMOSTARS,HOUSE, and MOHITO.

ENERGOINS 6.24 12.14 94.55 Energo Instal is one of the largest manufacturers of power boilers in Poland, and one of ﬁ ve manufacturers of ﬁ nned tubes in Europe, which are basic elements of heat recovery steam generators and heat exchangers. Finned tubes are used in the largest heat recovery steam generators in Europe built by Energoinstal. The European Union is the largest market for their products and services, with Germany being the biggest.

Worst 10

Name 2 Jan. 1012 30 Oct. 2012 change (%) Notes HBPOLSKA 0.75 0.02 -97.33 Construction ﬁ rm ﬁ led bankruptcy notice. Was involved in stadium construction.

ALTERCO 43 2.11 -95.09 Real investment and management fund. Involved in takeover of Reinhold real estate group. Disputes with sharehold- With Assets Under Management of ers and banks has torpedoed the stock. $140.7 million, the product charges 59 bps PBG 73 4.84 -93.37 Construction fi rm fi led bankruptcy notice. Was involved in stadium construction. in fees per year to investors. Volume is ABMSOLID 1.7 0.13 -92.35 This construction fi rm fi led for bankruptcy in summer 2012. The fi ling is a “restructuring”, not a liquidation. continued on page 12 BOMI 2.26 0.24 -89.38 Bomi operates a chain of delicatessens/retail food shops. Heavy debt load and weak operational results have hurt the share’s performance. Subject to either liquidation or take-over in 2013.

INTAKUS 1.4 0.15 -89.29 INTAKUS Group is a general contractor, invovled in construction of multi- and single-family homes, industrial buildings, and general buildings. Firm also does building design work, leases cranes and specialist equipment.

Key Indices for Poland ONE2ONE 2.25 0.25 -88.89 Mobile media and marketing services, operating under brands such as Mobi!Joy. (10 months ended Oct 2012): IDMSA 1.3 0.21 -83.85 One of Poland’s largest brokerage ﬁ rms, also with an asset management division, IDM has been hurt by general WIG 15% slowdown in IPO listings on the Warsaw Stock Exchange. WIG 80 15.60% DSS 7.4 1.21 -83.65 DSS, whose largest subsidiary is Dolnośląskie Surowce Skalne S.A., is the biggest domestic producer of aggregate materi- New Connect Index -15% als for infrastucture projects, such as highway construction. Firm supplies asphalt and cement from its own rockmines.

Market Vectors Poland ETF (NYSE) 19% EUROMARK 1.16 0.2 -82.76 Euromark Polska S.A. is the leader of the Polish outdoor market. It is a designer and distributor of outdoor clothing, footwear and equipment. Euromark Polska S.A. sells its products through a full spectrum of distribution channels from wholesale to retail. 11 2012 November Equities/Entrepreneurs www.bizpoland.pl

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quite good, trading in more than 70,000 shares per day on average, suggesting a tight bid-ask spread. The ETF has generated outstanding returns of over 28% so far in the year (as of October 16) and yields an impressive annual dividend of 4.83%. Market Vectors Poland ETF (NYSE:PLND) Launched in November 2009, the fund tracks the Market Vectors Poland Index, which consists of 25 companies that are either headquartered in Poland or produce at least 50% of their revenues from the nation. (12%). The ETF has total assets of $32.5 mil- EPOL PLND The fund holds 30 securities in its bas- lion and sees a moderately good volume of Inception Date 05/25/2010 11/24/2009 ket, with a heavy focus on the top 10 hold- about 13,000 shares per day. MSCI Poland Market Index Investable Vectors Poland ings that account for about 60% of the as- The product lags EPOL by a single basis Market Index Index sets. The top three companies dominate point in terms of fees. PLND has generated AUM more than 24% of the holdings. Though excellent returns of nearly 25% year-to- (in millions) $140.7 $32.5 the product puts more focus on large cap date (as of October 16) and yields a good No. of Holdings 45 30 stocks, mid cap takes 22% share with only dividend of 3.60% annually. This suggests % of assets in 68.83% 60.13% 1% going to small caps. that investors have a decent long-term Top 10 Holdings In terms of holdings, financials consists choice on their hands in this Poland ETF. Expense Ratio 0.59% 0.60% of more than one-third of the holdings fol- YTD Return (as 28.13% 24.62% lowed by double-digit weightings in ma- Provided below is the summary of the of October 16) terials (16%), energy (16%), and utilities two Polish ETFs: Dividend Yield 4.83% 3.60% Sir Branson inspires Warsaw

will help young people kick start their own businesses. Branson, said to be worth an estimated 4.2 billion USD, started a vinyl record business in the early 1970s, and after the setting up the Virgin record label, he gradually expanded into other areas, including airlines, train travel, telecommunications and insurance. This year Branson launched his Virgin Mobile brand in Poland, operating on the P4 network. In separate comments, he said that his space tourism project keeps being pushed back and isn’t sure of an exact date for the first launch. He says it will be at least another 12 or 18 months before the Virgin Galactic venture can offer paid space travel to adven- turers. Asked about Virgin Galactic, Branson said he has “stopped counting” days to the launch because it gets delayed “to the next In late October, Sir Richard Branson, one The British billionaire and Virgin Group year, to the next year.” of the world’s top entrepreneurs, vis- owner told students, who had packed into More than 100 would-be space tourists ited Warsaw and inspired students at the a hall at Warsaw University, that they have signed up for the $200,000 two-hour University of Warsaw, with tales of multiple need to be “passionate about whatever trips that go 100 kilometers above Earth. successes disrupting established indus- you are doing in life” to achieve success. The 62 year-old entrepreneur has also tries. His visit is part of a new University Branson met with students on his first launched a new book this year, Like a program to encourage entrepreneurship visit to Poland on Wednesday, where he Virgin, which, he says, “will reveal secrets 12 among youth. came to launch Virgin Academy, which they won’t teach you at business school”. ■ November 2012 www.bizpoland.pl Entrepreneurs Chopin Airport City

Arguably Poland’s most am- and expands the firm’s “non-aeronautical city centre (urban railroad, buses, taxis). bitious real estate develop- revenues”. Limiting vehicle traffic in favor of walk- The Chopin Airport City complex will ways will allow for developing the area in a ment project, Chopin Airport include high standard office buildings, a work- and leisure-friendly fashion. Chopin City aims to be the first proj- conference centre with one of the largest Airport City will have low-rise buildings ect of its kind carried out in halls in Warsaw as well as Premium class surrounded by greenery and ponds and a hotels and recreation facilities surrounded centrally located square with recreational Poland, reflecting the world- by a park with greenery and ponds. services, galleries and restaurants avail- wide trend of building small The project also includes fitness clubs able for business people, tourists and cli- and restaurants. In the middle of Chopin ents of the airport. airport towns with commer- Airport City there will be a roofed passage- cial functions. The new office way comfortably connecting the buildings. Hotels and retail complex is located More hotels are coming to the airport Fast-growing airport supports the area, following on the commercial success in Warsaw right next to the offi ce development concept of the four-star Courtyard by Marriott country’s largest airport. The key selling point of the Chopin Airport hotel. In 2013 two more hotels will open: City project is that it is adjacent to Chopin the five-star Renaissance Hotel, on the Airport – the biggest airport in Poland. premises of Chopin Airport City, and the At present the annual capacity of the two-star Hampton Hotel by Hilton, locat- Developed by ‘Polish Airports’ State airport is approximately 15 million pas- ed nearby. Enterprise (PPL), plans are that in the sengers. Once the development projects Mazur said that PPL would like to fi- next ten years the area located in the south scheduled to 2015 are executed, it will be nalize deals with potential partners by of Warsaw, along the main access road to able to serve around 22 million passen- September/October 2013, and start initial Chopin Airport, will be transformed into a gers a year. In 2011 the airport handled construction at the beginning of 2014. ■

modern business park with recreation and 9,3 million passengers, 36% of whom were entertainment facilities. business clients. As of winter 2011/12, the Chopin Airport City in ﬁ gures According to Michał Marzec, prezes of airport serves 77 destinations in 38 coun- • Total area– 22,5 ha PPL, plans are for 17 buildings and a total tries. Currently 27 airlines operate regu- • Gross covered area – 13,27 ha of 170,000 square meters of space. The larly from Chopin Airport. The airport is • Number of office buildings with project will be developed in stages, with also a regional hub for cargo transport. In additional functions - 17 the first stage to develop three buildings. 2011 the airport reached its record high of • Usable floor space of the buildings PPL is looking for development and in- 46,000 tonnes of freight handled. – over 170 000 sq m vestment partners, and plans are that the • Height of buildings – 25 - 40 m (6-8 complex may have several SPVs allowing PPL Sustainable development storeys) to include multiple development partners. From its beginning the idea of the Chopin • Storey area - between 1 800 – 2 000 ARUP and CBRE are consultants on the Airport City project is to balance an en- sq m project. vironmental and community-oriented • Parking spaces - at least 1 space per Marzec said that such development proj- approach with business functions. The 50 sq m of area leased ects are a “second leg of PPL’s activities” site will be comfortably linked with the 13 2012 November Food Exports www.bizpoland.pl SIAL Paris Food Expo pulls in 120,000 visitors

Billed as the largest food Highlights this year included SIAL alternating ANUGA) is clearly the most expo in the world, this year’s Innovation, the most popular observatory important food expo for Polish producers. that attracts 75 percent of attendees look- Poland’s agricultural exports are gain- edition of SIAL attracted ing for pioneering and trendsetting prod- ing market share on global markets, as more than 120,000 profession- ucts. The SIAL d’Or also awarded the most consumers increase their consumption of al visitors from 200 countries, innovative products in 29 countries that Polish fish, apples, chicken, beef, beer – became a commercial success in the last and even candy. and 6,000 exhibitors from 100 year. Agriculture Minister Stanisław Kalemba countries. Poland’s food export sector turned recently announced that Poland’s “food ex- out in large numbers, as SIAL (and the port surplus in 2012 will exceed €3 billion.”

Food From Poland Fischer Trading Group Ltd. Polish Exhibitors at SIAL 2012 Food Service sp. z o.o. Frigo Logistics sp. z o.o. Agencja Rynku Rolnego Big Brands Group Fructofresh Group sp. z o.o. sp.k. Agro-Handel sp. z o.o. Bioﬂ uid sp.j. Good Food Products sp. z o.o. Agros Trading Confectionery Brand Distribution Poland Ltd sp. z o.o. sp.k Graal SA Agus Browar Jagiełło Grana sp. z o.o. Ajinomoto Poland sp. z o.o. Cisowianka Greek Trade Ltd A-Meat sp. z o.o. Contractus sp. z o.o. Grupa Tarczynski SA Apis Apiary Cooperative Dawtona Handel Artifex District Cooperative Dairy Plant in Łowicz Healthy Food Production SA As Babuni Drosed Herbapol-Lublin SA Avalon Foods sp. z o.o. Duda Polish Meat Concern Hortino Aves Eastern Poland Ichem sp. z o.o. Balviten Eko-Vit sp. z o.o. Iko Kompania Drobiarska Bartex sp. z o.o. Eltar Tesna Elżbieta Indykpol Sa Best Foods Expo Line sp. z o.o. Instanta sp. z o.o. Biernacki - Meat Plant Foodcare Interfood Polska sp. z o.o. 14 November 2012 www.bizpoland.pl Food Exports

Export revenue from Polish food will be Polish food producers and farmers have distinctively, as meat and meat products greater than reach €16 billion in 2012, pre- parlayed their natural advantages - of low- have become the number one exported dicted the Minister. The poultry sector re- er production costs – and added a dash of food product sector, representing 21.3%. cords the greatest surplus, putting Poland focused marketing and sales to win major Live animal export has decreased sub- in third position across Europe. “When food supply contracts. Initially focused on stantially, as exporters have shifted to it comes to production of apples – we are the wealthier western European market, higher value-add food production and number one,” said Minister Kalemba. Polish firms see increasing opportunities processing, with its commensurate high- Poland’s EU membership has been a bo- in eastern markets including Russia, as er margins. nanza for Poland’s food exporters. A com- well as the Middle East and east Asia. The “sin” products – alcohol, tobacco and bination of open western-European mar- Honey and jam producers have found cigarettes – have carved out a strong sec- kets and subsidies to modernize Poland’s new markets in Dubai, niche pork prod- ond position, and represent more than 12% agricultural sector has moved Poland from ucts are being exported to South Korea, of all Polish food exports in 2011, up from a net food importer to a net exporter since and Polish milk and vegetables are sold in just 3.9% in 2004. Polish beer, niche vodka its EU accession in 2004. shops in London. products and Polish-processed cigarettes Food exports in 2012 will have grown The mix of exported products are increasingly consumed in cities such as 300% over the previous 8 years. has changed over the last 7 years Berlin, Barcelona, and Dublin. ■

Kasol Nero Ltd Poradnik Handlowca Koliber sp.j. Nord Capital PPH Maxpol sp. z o.o. Konspol Holding Octim PPHU Karol Krakowski Kredens Tradycja Galicyjska SA Oshee Polska sp. z o.o. PUH Pilot Polska sp. z o.o. Krynica Vitamin sp. z o.o. Paula PW Mat Kupiec sp. z o.o.. PB Group – Premium Beverages sp. z o.o. Rene Coff ee Pads Lactex PekPol – Ostroleka SA Run Chłodnia we Włocławku sp. z o.o. Lactima Ltd Pepees JSC Rzeszowskie Zakłady Drobiarskie Res-Drob Lmeat-Luków Perła - Browary Lubelskie SA Sante A. Kowalski sp.j. LST - Polska PHU “Unico” Sertop sp. z o.o. Lubawa (POW Robert Kowalkowski) Pifo Eko Strefa Sery ICC Pasłęk Lukosz Polish Poultry Meat Pini Polonia sp. z o.o., Hungary Meat Kft, Spomet - Bergen Ministry of Agriculture and Rural Development Bresaol Stovit Group Mitmar sp. z o.o. Polagro Trade sp. z o.o. Tan-Viet International SA Mlekoma Polan sp. z o.o. The Kutno Poultry Processing Plant Mlekovita Polder sp. z o.o. The National Poultry Council – Chamber of Mlekpol in Grajewo – Dairy Cooperative Polexpo Exhibitions Commerce (KRD-IG) Mokate Polmlek Group 15 2012 November Real Estate www.bizpoland.pl Poland makes a strong showing at Expo Real in Munich

While many Polish cities turned out in large numbers for Polish companies from the real estate the annual Expo Real Commercial Property fair, an equal sector and Polish municipalities believe in showing strong presence at Expo Real. number of cities were noticeably absent, suggesting that the Last year Polish entities were the second investment mood – or state of city budgets – is weaker than most numerous group of exhibitors from one year ago. abroad, with 45 exhibitors, behind Austria with 67 and ahead of the Netherlands with 44. This year 55 companies and entities from Poland set up stands at the fair, in- Cities and voivods such as Warmia investors are displaying greater caution, cluding the Military Property Agency. and Mazury, Lublin, Podlasie and which is leading to constrained activity in Przemyslaw Felicki, Associate Director, Świętokrzyskie, Białystok, Kielce, Ostrowiec increasingly polarized real estate markets Capital Markets at CBRE Poland: Świętokrzyski, Łomża, Krosno, Tarnobrzeg, in Europe. “Investors are still showing unfaltering Lublin, Olsztyn, Gołdap and Suwalki Special Investment activity contracted sharply interest in the Polish market and are eager Economic Zone had representatives in in Central and Eastern European markets to be present here. Even though transaction Munich. And larger cities such as Warsaw, in H1 2012, falling by over half compared volumes are lower than last year and the Katowice, and many cities from Slask at- with the previous six months, and the fo- processes are taking far longer than in the tended, yet Gdansk, Poznan, Wroclaw, and cus has narrowed to concentrate on Poland past, not least because securing financing Szczecin did not exhibit this year. and the Czech Republic, yet figures show has been a challenge, there are a number of A discernible trend at Expo Real is the that Poland is a top performer with overall large transactions in progress. For example strong focus on investment in larger, liq- commercial property investment volumes the sale of the Warsaw Financial Centre of- uid, core markets perceived as “safe ha- worth €1.1 billion in the first three quar- fice building by CA Immo and Pramerica vens”. Brokerage firm CBRE said real estate ters of this year. Real Estate Investors is expected to be

16 November 2012 www.bizpoland.pl Real Estate finalized by the end of this year. The value of this transaction is estimated at €210 million. Other ongoing transactions include the sale of Platinium Business Park or of the renowned Manufaktura shopping centre in Lodz, which is expected to go for a reported €400 million. Poland is being targeted by investors not only in the retail and office real estate sectors. The logistics sector is also at- tracting capital and there have been some huge transactions this year such as the one between Prologis and Hines worth €96 million with more expected to close this year. All in all the property investment market in Poland is expected to reach the value of €2 billion by the end of 2012.” While investors have been hesitant in the eurozone markets, they have been more active in the UK and Scandinavia. London accounted for 20% of European investment transactions in H1 2012 and attracted almost half of the global capital flowing into European markets from outside the region. Its size and pull coupled with the high quality of London’s commercial real estate is obviously still a magnet for money from around the world. The Nordic markets increased their share of the European investment market from 14% in 2011 to 18% in H1 2012. Southern Europe is faring particularly badly - the share of the five euro periph- ery markets (Spain, Portugal, Italy, Greece and Ireland) in total turnover in H1 2012 fell to 4.9%, compared with 13% in 2008- 09. While prime yields in stronger markets remain relatively stable, yields in southern Europe are particularly weak. Elsewhere, for example in the Netherlands and the UK regions, returns are also feeble. At a sector level, prime High Street retail shows the most resilient performance, while prime office and industrial capital values have slipped back into negative territory in terms of annual changes at the European level. Felicki added: “Both trans-regional capital flows and spezialfonds activity are a distinct trend on the Polish market. Spezialfonds are active in Warsaw where they are purchasing top quality core assets in prime locations, such as the purchase of the Renaissance office building by Euro GLL or of Norway House by IVG, both in the centre of Warsaw. The value of such transactions rarely exceeds €50 million. Poland is also seeing its fair share of trans-regional investors with both Blackstone and Hines active on the Polish market. In the past year Blackstone has purchased a number of promising regional shopping centres with a view to adding value to those assets.” ■ 17 2012 November Legal www.bizpoland.pl Belgian ﬁ ghts to recover swindled 142,000 Euro

Tom Dierick is angry. ordered, instead of 100ts, and thus the pocket”. When asked by reporters about the Very angry. firm had only received payment for 50% of registered letter, he said that Kowalczyk the order, and that the delivery would not wrote it, and he signed it without reading be made until payment was made in full. it, trusting that Kowalczyk would know Stonewalled by Polish prosecutors, who When asked to return the money in that what documents need to be prepared and have so far refused to prosecute his case, case, Kowalczyk replied that unfortunately signed. According to Dierick, Dusza was he is using a combination of TV crews, me- the money was sent to a German intermedi- only a „front man” for the company. dia, letters to Parliament, and relentless ary company, of whom he kept the identity The plot thickens. After a few months of persistence to “right the wrongs”. secret, and that the German intermediary investigative work Dierick finally discovered While his case is uniquely captivating, does not want to return the money. So no the identity of the mysterious German inter- his cause has broader relevance for foreign money back, and no products delivered. mediary, “KOHLER Biotechnology GmbH”, business people who are fed up with the Dierick went immediately to the pros- whose president is Tomasz Niedziela – “an- bureaucracy of the Polish justice system – ecutor’s office in Warsaw, which within 3 other frontman”, says Dierick - and prokurent often scornfully referred to as the Polish days (18 May) issued a statement that the is Norbert Westphal, with an official compa- “justification” system. case was “umorzony”, i.e. not a criminal ny address in an apartment in Berlin where His story starts not long ago, when case but a civil case, and that therefore he Mr. Westphal lives with his family. In later back in March 2012 he met a man named would not pursue it further. So Dierick ap- statements to the police and to journalists, Aleksander Kowalczyk, who represented a pealed to the court to insist that the case Kowalczyk confirmed that KOHLER was company called KREODESIGN Sp. z o.o. in had validity, and after 4 months the court supposed to purchase the 1200 tons, with a Wroclaw. Dierick is in the business of plas- finally decided that he was right and de- total value of 1.380.000 EUR, directly from tic granulates, and Kowalczyk had a deal manded the prosecutor to take the case. SABIC Turkey. When Dierick however in- to help him buy 100 tons of these raw ma- However during these four months vestigated this claim with the SABIC organi- terials necessary for the plastic injection Dierick had applied as well to the pros- zation, it turns out that nobody within the process. And this would be just the first of ecutor in Wroclaw, and the case had been SABIC organization had ever heard of Mr. several deals to come, which would lead to “tossed” there from one prosecutor to an- Westphal or KOHLER. On 28 August, after a full 1200 tons of imported materials. other, and then to a third, yet finally sent nearly one year of existence, Kohler GmbH But it did not go as agreed. back to the first prosecutor, who finally filed for liquidation in Germany. To get the much lower-priced raw gave it to the police to investigate. Dierick’s relentless pursuit has led to ar- materials, Kowalczyk required prepay- In an unusual quirk of circumstance, ticles in two Polish newspapers, including ment. As was agreed between Dierick and that two prosecutors have to take on the Gazeta Wroclawska, one Belgian newspa- Kowalczyk, the money would be used to case caused another wrinkle. Only one can per “De Standaard” - and TVN’s program pay for the first 100 tons of PolyPropylene pursue the case. So a separate court is now “SuperWizjer” has sent a TV crew to follow the from Saudi Arabian firm SABIC. considering which prosecutor’s office has case, with broadcast on TVN scheduled for KREODESIGN issued a pro-format VAT in jurisdiction over the case. And so again the 13th November. Several journalists continue April, and Dierick, via his company M&A case is on hold and slowed by bureaucracy. to follow the case, and controversy grows sur- Cefta, transferred 142,000 Euro to the ac- And that’s where the case is now rounding Kowalczyk and Szpilski, who reput- count of KREODESIGN. – officially. edly has very good contacts both within the The unusual deal, which offered cost But unofficially, the case is being pros- Wroclaw police and prosecutor department, savings of at least 20%, hinged on a bar- ecuted, not by Polish prosecutors, but by being a former Belarusian KGB agent, accord- ter relationship between the Russian and Tom Dierick himself, with the help of some ing to local journalists. According to Dierick, Saudi governments. Or at least so said journalists. Kowalczyk has been convicted several times Pawel Szpilski, who was introduced to or- And what Dierick has discovered is in his life for fraud, has spent time in prison, chestrate the deal. Immediately after pay- astounding. and presents himself to potential business ment, Kowalczyk assured Dierick that the Kowalczyk in fact owns only 1% of partners via at least 5 different companies, 100 tons had been ordered and were due to KREODESIGN, and is only the “prokurent” in which in none of them does he own more arrive in Poland. “Then there were delays”, for the company. He has no board position than 1% of the shares. He also does not hold said Dierick, “but for a couple of weeks and therefore no potential personal li- a board position, and thus does not bare any Kowalczyk continued to confirm that “the ability. KREODESIGN’s president and 99% responsibility under Polish law. trucks are on the way”. I started to get shareholder is Rafal Dusza, a physical work- Continuing in his quest for resolution, nervous, but understood that there could er at glass factory “Pan Sklarz” in Wroclaw. Dierick made an official request for interpel- be delays, and that it was still possible that Dusza, who was greeted last week by a lation in the Polish Parliament for a faster the trucks would finally come”. TVN television crew after his shift, said and more efficient operation by the Polish Then he got the letter. that he and Kowalczyk had taken out prosecutor’s office. He compares it with the On May 14th, a registered letter arrived 100,000 Euro from the KREODESIGN recent AmberGold scandal, in which the from KREODESIGN, represented by prezes bank account, which required his presence prosecutors, regulators and politicians failed Rafal Dusza, whom Dierick had never met to sign as “prezes” of the company - but to act until the case finally reached the media 18 and never heard of, stating that 200ts was “the money went directly into Kowalczyk’s headlines. ■ November 2012 www.bizpoland.pl Energy The Road to Nowhere: Govern- ment’s Proposed Law on Biogas

The Polish Government is committed to the EU by 2020. In fact, most Ministry of Agriculture, which is stub- under pressure from Brussels of the current “agricultural biogas” plants bornly ignoring everything but farm- in Poland also use vegetable processing and based biogas plants for the small number to enact the legislative means other organic waste that would disqualify of potential farms that could theoretically to meet the green energy them under the Ministry’s draft bill from build them. target for Poland for 2020 receiving the full green certificate value. Problematic wastes from the processing To meet the mandatory EU target for 2020, of meat, poultry and other food products under the EU Directive. Poland will have to open one 250 kW farm as well as sewage sludge can be treated in biogas plant every day for the next seven biogas plants to kill the pathogens in the years, having only done 28 in the last ten waste and increase their value as fertilizer. years. In the opinion of German and Polish This approach is endorsed by every non- Randy M. Mott experts, constructing these plants to only governmental environmental organiza- use farm waste and silage is not economi- tion, including GreenPeace, as well as the One of the three main pillars to meet cally viable (it cost more to produce the European Parliament and Commission. the EU requirement is biogas, which the electricity than it can be sold for, even with Yet the draft law cuts support for process- Government promised to Brussels would the full green certificate multiplier). The ing these materials to half of what a farm reach 980 MW of capacity by 2020 (from draft law does not fulfill Poland’s commit- using swine manure will receive. about 125 MW in 2011). The EU broadly de- Besides dramatically reducing support, fines what biomass can be used to produce the draft precludes renewable energy pro- biogas and qualify as green energy under ducers from selling electricity to local di- the Directive. Unfortunately the Polish rect users at higher than a flat price set by Government is proposing a very restrictive the Ministry for grid sales. Even the full and weak biogas program which has re- green certificate values are only half what ceived little industry input and obviously Germany has provided in support for bio- is being prepared without much thought gas, so the ability to sell the electricity at for the details. better prices in the local market has been The renewable energy system is support- a valuable incentive for the investment in ed by green certificates which are used to Poland. The proposal changes the current provide a bonus to producers of green ener- law and greatly weakens the investment gy and increase the cost of electricity by a incentives. tiny amount (less than a grosz per kilowatt Randy M. Mott The solution to the problems for bio- hour). While a minor burden on electricity gas in the proposal are simple. The draft purchasers, the green certificates are the ment to meet the EU Directive. The draft should add a new category of biogas: co- mainstay of the support system necessary law will also not benefit 99% of all farmers, digestion plants that handle all of the sub- for the interim future to allow the energy who are too small to support a farm biogas strates covered by the EU Directive, includ- sources in Poland to diversify. Such a pro- plant. Centralized biogas plants - taking ing those mentioned above. Such plants gram is required by EU law, but also can farm wastes from several farms and other are more expensive to build and operate, add to Poland’s energy mix from domestic material to make it economical to oper- including waste pretreatment and sophis- sources to improve energy security. Biogas ate - are a common European solution to ticated odor control systems. They should from waste also solves other problems in provide biogas benefits to smaller farmers, receive at least the same level of support as addition to providing a new energy source. but these plants will be difficult or impos- farm plants that handle much less difficult The EU definitions include a broad range sible to build under the draft law. material. The co-digestion plant category of biomass as possible feedstock for biogas, The draft provides half of the green cer- is also essential to meet Poland’s obliga- including organic wastes from industry, tificate value for plants that use meat and tions for organic waste management under households and restaurants. The Polish food processing wastes, sewage sludge, and several EU Directives as well as the ambi- proposal sharply discriminates against household and restaurant food wastes, tious 980 MW target for biogas capcity in organic waste, providing only half the gov- even if they also use farm wastes. These 2020. ernment support in green certificate val- organic wastes are also required to be man- Rather than a “roadmap” to their objec- ues. The draft is written entirely from the aged in a more rigorous fashion by new tive of 2,500 biogas plants in Poland by prospective that Poland will build biogas EU rules and Poland lacks the infrastruc- 2020, the Ministry’s proposal is the road to plants only on farms and that only farm ture in most cases to do so. The National nowhere. material will be used for biogas. Only 28 Association of Gminas recognizes the such plants have been built in Poland in problem and has endorsed amending the Mr. Mott holds a Juris Doctor degree from the last ten years and it is unrealistic to as- draft law to treat all organic wastes with Georgetown University, Washington, DC and is sume that this is the only biogas useful to the same level of support as the law would president of CEERES Sp. z o.o. – a Polish biogas Poland or that these farm plants will allow provide for swine manure. The common- company. He is also on the board of the Polish Poland to meet its 980 MW of biogas output sense approach has been resisted by the Economic Chamber for Renewable Energy. 19 2012 November Energy www.bizpoland.pl

Shale gas in March at 1,920 billion cubic metres of ex- Poland to invest 50 billion pln in shale gas by 2020 tractable shale gas deposits) are the third largest in Europe after those of Norway Poland will invest 50 billion pln in the ex- be renewed, the government intends, in the and the Netherlands. ploration of shale gas by 2020, said Finance long run, to wean itself off of Russian gas. Poland burns 14 billion cubic metres of Minister Mikolaj Budzanowski in late “With the Russian gas accord terminating gas a year, two-thirds of which come from October. Investment over the next two at the end of 2022, we must be well prepared to Russia. The government expects extraction years will total 5 billion pln, which includes noticeably boost the exploitation of our own to begin in 2014. Energy groups contend a 1.6 billion pln shale gas deal agreed in gas fields three years earlier,” Budzanowski that the extraction and exploitation of July by five Polish energy and mining said, adding that state money as well as pri- Polish shale gas could not only allow lead to groups, Budzanowski told the press. vate investment would be involved. gas energy independence, but also provide a Poland’s current gas accord with Russia The National Geological Institute (PIG) considerable source of export revenues for expires in 2022, and although the deal can said Poland’s shale gas deposits (estimated the government.

Nuclear continued high natural gas prices from Will Poland stick to plan to build $15.8 billion nuclear power station? Russia. The geo-politics of any nuclear decision are further complicated by Poland’s politicians continue to zig and “There will be an additional 50 billion Germany’s recent decision to abandon zag over plans for nuclear power. While pln spent on the power stations, but this nuclear power, and the still-unproven the government officially announced in investment decision, and the choice of yet substantial potential of Poland’s October that it plans to build its first nucle- technology, will come only in 2015”. He huge shale gas reserves. ar power station, critics say that plans could added the company managing the nuclear The current nuclear plans are to yet be scrapped. project has just started to seek a location launch a 3 gigawatt nuclear plant by The October announcement laid out for the power station, a process which 2023 and double that capacity by 2030. plans to spend about 60 billion pln on eight should end in 2015 as well. Several large multinationals are keen new power plants, in Turow, Opole, Pulawy, Poland’s push to develop nuclear to win the contract to supply technol- Blachownia, Stalowa Wola, Jaworzno, power comes as it is squeezed from both ogy for the project, including the U.S.- Kozienice and Wloclawek. the East and the West – with Brussels Japanese group GE Hitachi, France’s Treasury Minister Mikolaj Budzanowski and the EU pushing Poland to reduce its Areva and Westinghouse, a U.S. unit of told broadcaster TVP Info: reliance on heavily-polluting coal, and Japan’s Toshiba.

Coal Coal price slump heralds slow-down While the political battles continue to rage over nuclear power and shale gas, Poland’s tried-and-true coal mines continue to spew out low-cost energy, and high profits for its owners, despite slump- ing prices. Coal miner Bogdanka, according to acting CEO Zbigniew Stopa, said that 2012 profits are on track to exceed 300 million pln, and that 2013 should exceed that level. While coal prices has slumped in recent months, Bogdanka is producing more coal, which offsets the price decline. Bogdanka plans to produce over 8 million tonnes of coal this year and increase this to 9 million tonnes in 2013, aiming for 11 million tonnes in 2014. Bogdanka, which listed on the Warsaw Stock Exchange in 2009, is currently in talks with key customers- mainly local power sta- pressure on lowering prices.” But he also but over 300 million zlotys is a sum that tions - on the price of coal supplies for 2013. said prices actually only came down slight- does not shock me at all.” Mr Stopa said that the talks were diffi- ly in the end. The group had to cope with a big rise cult because power prices in Poland have He said that “We are now working on a in inventories in mid-2012. “Power sta- slumped in the past few months and power financial plan for next year and everything tions are trying to delay the deadlines for stations are trying to pass this on to coal shows that we will at least maintain net delivery as they have a lot of coal on their suppliers. “I would compare the current profit at this year’s levels. I cannot confirm own stocks. He expected the company’s situation to the one from the end of 2008, that our profit in 2012 will come close to reserves would stand at around 50,000 20 when power stations were exerting a lot of the 350 million zlotys forecast by analysts, tonnes at the end of the year”, he said. November 2012 www.bizpoland.pl Energy

Wind The farm, with a potential capacity of Polish wind industry ﬁ ghts to change ‘ﬂ awed’ legislation 1045.5 megawatts and expected to start operations in 2019, is the second offshore Poland’s wind industry is preparing a last- regulated price could have a serious impact windfarm that PSE has pledged to connect ditch attempt to persuade politicians to on the viability of current or future power- to the grid. amend proposed renewables legislation that purchase agreements. State-controlled PGE, the leader in it claims is seriously flawed and could ham- The Ministry of Economy wants the act to Poland’s fledgling offshore wind industry, per development. be implemented from 1 January 2015. has won permits to launch three wind farm Polish Wind Energy Association (PWEA) Sekscinski says the PWEA “has done projects with a combined potential capacity deputy director Arkadiusz Sekscinski claims what it can with the ministry, but we have of 3.45 gigawatts. PGE’s long-term strategy that in its current form, the RES Act – which faced a brick wall”. The association has calls for the generation of 1 gigawatt in off- will be debated in parliament in November – commissioned an independent study from shore wind power by 2020 and another giga- “will bring green-energy development in our PricewaterhouseCoopers into the problems watt by 2025. country to a halt and will force many renew- surrounding the bill, including transitional Although Poland currently has no opera- ables investors to withdraw”. arrangements for current investments. tional offshore wind farms, wind-industry A major concern centres on the draft It is understood that Dong Energy and insiders say that offshore wind is the “big law’s impact on the system of tradeable Iberdrola are considering plans to exit the gun” that can help Poland reach its EU- “green certificates” awarded to buyers of re- country. “The position is not yet totally clear, mandated target of 15% of energy generated newable power. but both companies are actively considering by renewables by 2020. Under the proposals, the national regulator which wind markets they want to be in,” says The Baltic Sea, with its relatively strong will set an upper limit to the price to be paid one analyst. wind and shallow, calm water, offers plenty for renewable power by Poland’s so-called Offshore windfarm gets grid preference of potential for generation of offshore wind “suppliers of last resort” — electricity dis- Poland’s political preferences for offshore power. Industry-insiders have said that tributors that are obliged to buy renewables wind over onshore are increasingly obvi- the concessions for offshore wind were gen- output from areas of the network they service. ous, as illustrated by the agreement in late erally awarded to large Polish companies, The draft RES Act says any purchasers of October by grid operator PSE Operator to which lack the technology, but will enter into renewable power paying above that figure connect top utility PGE’s planned offshore partnerships and joint ventures with large will lose the accompanying green certifi- windfarm on the Baltic Sea to the country’s international wind groups, which will bring cates, and the revenue that goes with them. power system. PSE Operator has repeatedly both the technological prowess as well as the Market observers have noted that the told onshore wind farms that it lacks the substantial financial resources required to penalty imposed on power sales above the technical capacity to add more wind capacity. develop offshore wind.

Vestas receives order for delivery of Aldesa Nowa Energia Sp. z o.o., is a fully- excellent wind speed conditions in large 40 MW to Poland owned subsidiary of the Spanish Aldesa parts of the country and the outlook for a Vestas has received an order from Aldesa Group focusing on construction, renewable growing Polish market. According to IHS Nowa Energia Sp. z o.o. for delivery of 20 units energies, engineering, real estate, auxiliary Emerging Energy Research, Poland has of the V90-2.0 MW wind turbine for Poland. services and concessions. the potential of reaching 7 GW of installed The order has a total capacity of 40 MW and The second largest utility in Poland, capacity by 2020. This is also underlined the turbines will be installed in Wicko in the Tauron Polska Energia S.A., is the end owner in the Polish National Action Plan for Pomeranian province near Gdansk. Delivery of of the Wicko wind power plant. This is the Renewable Energy adopted by the Ministry the turbines is scheduled to start in the second second project in 2012 with Vestas turbines of Economy. quarter of 2013 and the project is expected to and Tauron Polska Energia as the end owner. “Poland is one of the key markets for Vestas be completed in the third quarter of 2013. The Earlier this year, Vestas turbines were select- in a global perspective. We are very happy order includes supply, installation and com- ed for a project only 50 km away from Wicko. to be chosen as supplier of turbines for the missioning of the turbines, as well as a three- Poland is one of the most attractive Wicko project,” said Klaus Steen Mortensen, year service and maintenance agreement. wind energy markets in Europe due to its President of Vestas Northern Europe.

Czech ČEZ re-commits to Poland, for now in the phase of preparations, It is now difficult to estimate the date when plans 600 MW wind farms Pulpanova said. the power plants will be launched into op- CzecheEnergy company CEZ wants to CEZ wants to obtain a building per- eration, Pulpanova said. CEZ is not producing build wind farms with a capacity of 600 mit for the wind farms next year. The electricity from wind energy in Poland now. megawatts in Poland by 2017. But CEZ company could start to build the pow- CEZ bought a majority stake in Polish devel- spokeswoman Barbora Pulpanova said er plants next year already, but the oper of wind parks Eco - Wind Construction in that it is difficult in this phase to esti- year 2014 is a more likely date for the December 2011. The developer has a total of 15 mate what the output of the power plants launch of construction, according to projects in its portfolio that have a total capac- will be within five years. The project is Pulpanova. ity of up to 700 megawatts.

REpower sells 22 wind turbines to HUSUM WindEnergy trade fair. The tur- are scheduled for completion in August WSB for Legnica project bines, each with a rated power of 2.05 MW, 2013. In August 2011, Dresden-based WSB Suzlon Group- subsidiary REpower Systems are intended for the Taczalin project near commissioned a wind farm near Opole, its SE and WSB Neue Energien GmbH signed a Legnica in Lower Silesia. Construction and first in Poland. REpower has already set up contract for the delivery and construction commissioning of the wind farm, which two service support points in Poland for the of 22 REpower MM92 wind turbines at the will have a total power output of 45.1 MW, maintenance of its turbines installations. 21 2012 November Energy www.bizpoland.pl Solar boom coming to Poland

According to research company eclareon, solar in Poland amounted to under 1% of installed renewable energy capacity in 2011, with less than 2 MW of PV connected to the grid.

Solar and PV set to be big winner from new RES law Poland is expected to introduce a new Renewable Energy Sources (RES) Act during next year, and the law will see the introduction of a specific PV support scheme, which will likely strongly boost PV development and investment. While the new law is meant to come into guaranteed by the grid operator and based While current capacity is negligible, the force in January 2013, some believe it will on the average price of electricity from the new RES measures will boost PV’s Polish not enter into law until at least the second previous year. In 2013, this will be around presence. Aimed to boost the uptake of quarter of next year. Christian Schnell, a €0.05/kWh. PV systems up to 100 kWp, the govern- Polish lawyer working at DMS DeBenedetti Stanislaw Pietruszko, President of the ment has devised a feed-in tariff (FIT) of Majewski Szcześniak: “I don’t expect the Polish Society for Photovoltaics tells pv 1.1 Polish zloty (PLN)/kWh for at least the law to be fully in place before the second magazine he has suggested to the govern- first 2 years. half of 2013. The notification process with ment that a Feed-in-Tariff (FIT) should be Tradable on the Polish Power Exchange, the EC usually needs at least half a year,” made available for systems up to 5 MW. electricity companies must accumulate he states. In addition to the higher tariff, another enough Green Certificates (GC) to reach Even less optimistic is CEO of Polish sign of the government’s preference for their quota targets as laid out by the coun- company Easy Solar, Marcin Dolata, who systems up to 100 kWp, is the introduction try’s energy act. All renewable energy sys- believes the law may only come into force of simplified licensing procedures. For in- tems, regardless of technology, received 1 at the end of 2013. Having already laid out stance, while a renewable energy developer GC for each MW of renewable energy produced. “This promoted the deployment of the Despite uncertainties regarding most cost-competitive and mature technologies, meaning other, more costly re- the implementation of the law, newable energy technologies [like PV] were not deployed,” says consultant Anna and grid connection issues, Poblocka. To mitigate this situation, the the PV investment new correction coefficients have been devised to favor certain renewable technol- landscape appears healthy. ogy, which will then be used to determine the amount of certificates to be issued. Unlike previously, the amount of GCs will a plan on the back of the promised PV sup- must currently apply for a license enabling also depend on the size of the plant and port, he has had to apply the brakes until it to generate and sell electricity, and regis- the date of its commissioning. “The cor- it is known when the act will be passed. As ter as a commercial activity – both of which rection rates for 2013 are expected to range currently laid out in the RES Act, remuner- are said to represent “major obstacles” – from 0.3 per MWh for biomass cofiring in ation for PV systems under 100 kWp will under the proposed new law, systems up coal power plants, to 2.85 for photovoltaic be paid by state-owned electricity offtak- to 200 kWp will not require this license, plants,” continues Poblocka. ers (the so called “supplier of last resort”), and Microsystems under 40 kWp will not and will comprise the maximum price for have to register as a commercial activity. Too generous green certificates (GCs) – instead of around Pietruszko adds that grid connection for According to Pietruszko, the current rates 95%, as is the market norm taking into ac- microsystems will be free and obligatory, for PV systems above 100 kWp are very gen- count the compensation fee – multiplied by and that a building notification or permit erous. “If you compare this with the situation a “correction coefficient,” and coupled with for systems under 40 kWp will not be re- in Germany, where big systems now have 22 payment for renewable electricity, which is quired if their height is lower than 3 meters. rates below 18 euro cents … one can expect November 2012 www.bizpoland.pl Energy that there will be a big run to the Polish mar- as contractor and, in certain cases, as co- is to connect to the regional 110 kv or local ket,” he says, adding that the coefficients for investor. Project sizes will range from 100 20 kV grid. “This is in the hands of a few bigger systems should be reduced to avoid a kW to 30 MW, and locations will cover the regional grid operators – all state-owned – boom and bust situation. Less concerned is northwest and southeast of the country. and these guys are very reluctant when it Schnell: “€0.23 … is too much – everybody Meanwhile, Easy Solar has begun laying the comes to connecting something to the grid,” should know that. But maybe to boom the groundwork for its PV projects. Originally, says Schnell. He continues, “Everybody market at the beginning is a good idea.” He it had planned a pipeline of 20 and 25 MW, right now who is applying for new techni- believes that since the next coefficients will comprising a 10 MW project for a third par- cal grid connections either gets a no-go, be published in 3 years, based on the mar- ty, and a series of self-owned 5 MW projects or gets a go but with heavy investments in ket situation at that time, and enacted in 5 for installation in 2013 in the center and extending the 110 kv grid. And these are years, there is a “window of opportunity” western parts of Poland. But, following the investments of up to €10 million. This is for developers. “The next correction coeffi- delay of the RES Act, the company’s plans something which pays off for a 70, 80, 90 cients … will be substantially lower,” he adds. are on hold and it has instead strengthened MW wind farm, but not for a 5 to 10 MW Schnell’s main concern is GC oversupply. its focus on the development of a partner PV farm.” Pietruszko goes on to say, “Many “The moment you have oversupply, of course network, with the aim of building the larg- people are applying for the connection con- the certificate prices fall,” he says. “The sys- est PV distribution network in Poland. ditions and this paper is valid for 2 years if tem here is such that if you don’t have the While he declined to divulge details, you don’t sign the grid connection contract, amount of certificates you should have, due Parabel Solar’s Siegfried Kowalewski said so it means that even if they don’t start to the quotation obligations … you have to the Germany-based company will also building the systems they have booked the pay a compensation fee for the rest.” He ex- be working on crystalline PV projects in capacity which other people plains that electricity producers are looking Poland. “It’s a big opportunity for Parabel then can’t use. This is not good.” to buy certificates for around 95 to 97% of the … considering the small geographical dis- Fortunately, there are a few locations in PLN 286.74 per MWh compensation fee. Government vs. industry On the matter of oversupply, eyebrows have been raised over the government’s installed PV capacity target of 600 MW by 2020. Overall, it expects just 50 MW to be installed in 2012, and that annual growth shall not reach more than 90 MW until the end of the decade. Responding to the targets, Easy Solar’s Marcin Dolata tells pv magazine they are too low and underestimate the ability of the PV industry. He predicts over 400 MW will be installed in the first year alone, and that by 2020, 1 to 2 GW could be in place. Schnell, Pietruszko and eclareon tance from Parabel’s locations to poten- Poland, which are not dominated by wind, are also skeptical of the government’s low tial PV sites, which allows quick response namely in the southwest. “Here you have expectations, and Pietruszko suggests that supported by its long term experience in quite a good grid, you don’t have wind, so by 2020, 1.8 GW could be installed. ground-mounted PV power plants.” there’s a big chance to connect 5 to 10 MW Taking a more neutral stance, Janusz France-based Senersun has just closed PV farms,” explains Schnell. Starościk head of the Polish heating orga- a 23 MW module supply contract with nization SPIUG says, “There are no reliable Poland’s Solar-Bau. A spokesperson for Bank ﬁ nancing for solar forecasts … The potential is so big that 600 Senersun tells pv magazine the compa- Despite uncertainties regarding the imple- MW till 2020 seems to be underestimated. ny expects to see shipments increase to mentation of the law, and grid connection is- On the other side, there are only about 2 the country, in part due to the new law. sues, the PV investment landscape appears MW of PV officially connected into the However, its aim is to develop its part- healthy. According to Schnell, a few first grid … There are big expectations of pri- nership with Solar-Bau to strengthen its mover banks, including Austria’s Raiffeisen vate potential producers, who want to in- Polish presence “with or without incen- Bank and Germany’s DZ Bank are said to be stall PV to produce energy in Poland. We tives.” Current project costs are said to be interested in following their clients when it hear even about uncontrolled explosion of between €1.2 to €1.4/W. comes to PV in Poland. Danish-Norwegian new installations, in case start of the new bank DNB Nord and Rabobank subsidiary, RES law. Those high expectations could be Biggest bottleneck BGZ are also keen to finance projects. confronted with reality.” Everyone is in agreement that the biggest The second movers, meanwhile, are Many in the industry say they intend to bottleneck to Poland’s PV development is said to be Commerz Bank, Nord LB and focus on systems between 1 and 10 MW. “It grid connection. As Schnell tells pv maga- HypoVereinsbank subsidiary, PeKAO. is supposed to be quite easy to get project zine, it is currently too costly to connect to Overall, the PV industry – a virtually finance for a 1 to 5 MW solar park,” says the 220 or 400 kilovolt (kv) grid, due to the non-existent industry in Poland - appears Christian Schnell, who expects the major- massive “ghost capacities” from the wind pleased with the proposed changes to ity of new installations to fall within this industry, said to total up to 10 GW. There Poland’s RES Act, which will encourage range, at least in the beginning. KRD is is very limited capacity available for new PV rapid investment in the sector. already working on PV projects in Poland projects, and one of the only viable options Source: pv Magazine 23 2012 November FDI News www.bizpoland.pl Chinese–Polish economic cooperation

In late October, the China Chamber of China Trade and Investment Promotion Delegation to Poland Commerce for Import and Export of Shi Yonghong Wang Yuhang Sun Yang Machinery and Electronic Products and China Chamber of Commerce for China CAMC Engineering Co.,Ltd; Vice Beijing Peony Electronic Group Co., Poland’s PAIZ hosted 30 Chinese com- Import and Export of Machinery and President Ltd; deputy chief engineer Electronic Products; Vice President Liu Jiadan Deng Qiang panies at an event to strengthen Polish- Jin Luolan China CAMC Engineering Co.,Ltd; China Railway Signal & Chinese economic relations, dubbed China Chamber of Commerce for Manager of department 9 Communication Corp. Ltd; Deputy Import and Export of Machinery and Ding Zhengguo General Manager of CRSC “China-Poland Trade and Investment Electronic Products; Director Power Construction Corporation of International Co., Ltd Cooperation Forum”. Sheng Guofei China; Assistant to Group President Yun liang China Chamber of Commerce for Xu Shouting SINOHYDRO Group Ltd.; Executive The event was attended by large Import and Export of Machinery and China IPPR International Engineering Vice President Chinese companies, such as China State Electronic Products; Staff Corporation; Vice-President Luo Huiyan Zhang Xutao Zhang Yuanling TBEA Co.,Ltd Construction Engineering Corp, Harbin China Chamber of Commerce for China National Corporation For Assistant G-M Electric, and China Railway Signal & Import and Export of Machinery and Overseas Economic Cooperation; TABARA INESA TBEA Co.,Ltd; Project Electronic Products; Staff Deputy General Manager Manager Communication Corp. Hu Weidong Hong Jiaqing Xu Xianglin Following a morning session on oppor- Dongfang Electric International China National Corporation For Shanghai Linde Hotel Equipment Corporation; Vice President Overseas Economic Cooperation; (Shanghai)Co.,Ltd; President tunities in Poland for Chinese in key sec- Yuan Xuemin Dept. Deputy General Manager Zhang Liwei China Tianchen Engineering Cao Xisen Harbin Electric International Company tors such as energy, infrastructure, auto- Corporation; Vice President motive and construction sector, business Shandong Luneng Mount Tai Electric Limited; Vice President Sun Baishuang Equipment Co., Ltd; Chairman of Liu Zhizhuo matchmaking sessions introduced Polish China Tianchen Engineering the Board Harbin Electric International Company Corporation; Regional Manager firms, such as Tauron Power and Orion Li Yuhao Limited; Deputy manager Wang Wei Shandong Luneng Mount Tai Electric Jin Jiansheng Electric. “We meet at the moment of dis- Sinoma International Engineering Equipment Co., Ltd; General Manager GuangZhou CityStar Logistics co.,LTD; Co.Ltd; Chairman of Dept. covering Poland by China and China by President Li Qin Zhang Xiao Wu Jiyan Poland. We are happy that we can be part Sinoma International Engineering Taishan Group TaiAn Boao GuangZhou CityStar Logistics co.,LTD; Co.Ltd; Senior Manager of Investment International Trade Co., Ltd.; General Market General Manager of this process. Polish companies have be- Management Department Manager Pan Qinping gun to pay more attention to cooperation Li Jiqin Shi Li Guangdong JinTairong medicine Co., China State Construction Engineering China Gezhouba Group International Ltd.; General Manager with China. The interministerial GoChina Corporation Ltd.; Overseas Operations Engineering Co. Ltd.; Vice President program contributes to it”, said Slawomir Managing Director Majman, President of PAIZ. ■

China Trade and Investment Promotion Delegation to Poland Brief introduction of delegation members

China Chamber of Commerce for Import and all industries and all levels and perform general contracting Beijing Peony Electronic Group Co., Ltd Export of Machinery and Electronic Products for engineering project and project management involving Being engaged in DTV industry, PEONY GROUP extended Supervised by Ministry of Commerce of China, CCCME is one 21 fi elds such as architecture, machinery, medication, ship, its four business scope to components, new display devices, of the largest and leading chambers of commerce in China. weapon, municipal facilities, commerce, chemical engineering, system solutions and detection technology. Now it has nearly 10,000 members. energy, building materials, light industry, etc China Railway Signal & Communication Corp. Ltd Dongfang Electric International Corporation China National Corporation For Overseas CRSC focus on the system of signaling, communication, The main business of Dongfang Electric International Economic Cooperation informatization, power supply, traction power and automatic Corporation involves power generation, power distribution and We have successfully undertaken to provide goods, equipment controlling in the fi eld of transportation, also engaged in the transmission, environmental protection, traffi c and transporta- and technical services to more than 600 overseas develop- fi eld of housing and building, public works, road, bridge and tion, etc. ment projects funded under Chinese foreign-aid schemes tunnel. in various fi elds ranging from energy, light and chemical SINOHYDRO Group Ltd. China Tianchen Engineering Corporation industries, telecommunication, transportation and agriculture TCC provides engineering consultant, design, procurement, SINOHYDRO is a global enterprise active in engineering & to culture, sports, health care and urban construction, winning construction, power investment, real estate, and M&E. construction management and commission supervision of praises from both the Chinese government and governments chemical projects. of the recipient countries. TBEA Co.,Ltd Sinoma International Engineering Co.Ltd TBEA represents the world’s third largest global transformer Sinoma International provides service ranging from cement Shandong Luneng Mount Tai Electric Equipment supplier and one of the biggest Chinese manufacturing and technology, equipments manufacturing to engineering, and Co., Ltd exporting base of photovoltaic systems and products, as well enjoys integrated industrial chain resources. The company has oversea project contracting qualifi cation by as of electronic new materials.. itself, and has participated in EPC of foreign thermal power China State Contruction Engineering Corporation plant (300WV), transmission lines and substations with State Shanghai Linde Hotel Equipment Co.,Ltd Ltd Grid and LuNeng Power Construction Group. The company has been working in hotel facility industry for 15 years. The core businesses of CSCEC range from building construc- Taishan Group Taian Boao International Trade Co., tion, international contracting, real estate development & Harbin Electric International Company Limited investment, infrastructure to design & engineering. Ltd Taishan Group is a large state enterprise group which is a HEI is primarily engaged in the supply of complete sets of China CAMC Engineering Co.,Ltd major designer and manufacture of industrial boilers, utility equipment, the undertaking of EPC project, and the construc- CAMCE’s business mainly covers engineering procurement boiers, pressure vessels, electrical equipment, cable circuit tion of relative substation, transmission lines, and other construction (EPC) projects, domestic and foreign investment, technology, ship exhaust cooling and other products. utilities in the area of thermal power plants, hydroelectric, and international trade. and combined-cycle power plant projects. HEI also provided China Gezhouba Group International Engineering comprehensive professional after-sale service for the power Power Construction Corporation Of China Co.,Ltd plant.. Power Construction Corp China is a mega-scale power Gezhouba is the highest in China’s international contracting GuangZhou CityStar Logistics Co.,LTD construction company capable of providing one-stop service sector and machinery and electronic products import and ex- in various power sectors. Its world-class technical edge City Star Services products Intercity Automotive general port sector, and has built more than 100 large and medium- pieces, fi ne pieces, Army aviation parts and so on. covers planning, survey, design, construction and operation sized hydropower stations including the world-famous Three in hydropower, thermal power, renewable energy, power grid Gorges Project and more than 4,000 projects of various kinds Guangdong JinTairong medicine Co., Ltd. and infrastructure. including nuclear power projects, thermal power projects, Company JinTairong specializes in pharmaceutical, wholesale China IPPR International Engineering Corporation wind power projects, airport projects, railway projects, distribution, pharmaceutical marketing. IPPR possesses Qualifi cation of Comprehensive Engineering expressway projects, port projects, embankment projects, civil Design Grade A, able to undertake engineering design for architecture projects, municipal public projects, etc. 24 November 2012 www.bizpoland.pl FDI News

Brazil and Colombia tempt tourists and investors Ambassadors from Colombia and Brazil met at the PAIZ investment promotion office with Deputy Minister of Foreign Affairs Beata Stelmach in mid-October to highlight the opportunities for Polish companies. During the meeting, HE the Ambassador of Colombia in Poland, Mrs Victoria Gonzalez Ariza and HE Ambassador of Brazil to Poland, Mr Jorge Geraldo Kadri along with representatives of the institutions responsible for the promotion of the economy presented economic potential and investment offer of both countries. Colombia’s economy grew by 4% in 2010, and since 2003, the index of foreign direct investment increased by 669%, from USD 1.72 billion to USD 13.234 billion in 2011. Exports have boomed, increasing by 73% Beata Stelmach, Deputy Minister, Ministry of Foreign Relations in the last three years. Brazil has become one of the leading world-wide recipients of FDI in the last In late November, PKPP Lewiatan is or- and Eastern Europe. The company em- decade. In terms of the value of invest- ganizing a delegation for Polish entrepre- ploys 20 people, with a target headcount of ment attracted, Brazil has trailed only the neurs to Brazil and Colombia. 100. The value of the investment is USD 11 United States, China and Great Britain. million. The decision to locate in Buk was Brazil is a leader in renewable energy and Fortitech opens new vitamin plant due to a combination of factors, including the third largest producer of passenger air- near Poznan positive investment climate, proximity craft. Among the key advantages of Brazil American company Fortitech officially to Poznan, availability of skilled and tal- is a huge internal market. opened its new plant in Buk, near Poznan, ented labor force as well as ideal position- The conference was organized by the in early October. Fortitech manufactures ing with regard to major transportation Ministry of Foreign Affairs represented at vitamin premixes for the food industry, routes. Fortitech is the 25th company that the meeting by the Secretary of State, Mrs supplying the biggest producers in 60 coun- has located its production in the “Buk” Beata Stelmach, the Embassy of Colombia tries. The new, 7000 sqm plant with annual Industrial Park. in Poland, the Embassy of Brazil in Poland, capacity of 5,000 tons, is the third biggest PAIiIZ and Proexport Colombia - the body Fortitech site in the world. Together with Euro-Park WisłoSan Economic Zone responsible for the promotion of invest- another plant in Denmark, Buk will supply lands new sawmill investment ment, export and tourism of Colombia. the growing base of customers in Central Swedwood Poland will invest about 33 million pln in the Tarnobrzeg Special Economic Zone Euro-Park WisłoSan. Swedwood Poland Sp. z o.o. - in the sub-section Stalowa Wola – will build a plant for sawmill activities, on about 26 hectares of land. The company produces prefabricated furniture parts. Cut timber from Stalowa Wola will be used for the production of furniture in Swedwood factories worldwide. The new plant will employ at least 40 employees. It is the 228th permit issued by ARP SA to operate in the Zone, representing a total of 7 billion pln investment and employing more than 20,000 people. Japan-Poland seminar The Japanese embassy and JETRO, together with PAIZ, hosted a one-day seminar in late October to encourage further investment and trade ties between Poland and Japan, entitled ““How to stimulate and broaden the Japanese-Polish economic relations?”. 25 2012 November FDI News www.bizpoland.pl

Japanese investors in Euro-Park Mielec SEZ Euro-Park Mielec Special Economic Zone has landed its first Japanese investor from the automotive industry. ARP SA issued permission to Japanese company TRI (Poland) to operate in the Subzone Zagórz of SEZ Euro-Park Mielec. TRI will invest 11 million Euro to start production of rubber and plastic products for the automotive industry. The planned product range includes engine suspension components, bodywork, polyurethane shields and covers for engines and transmission. The first products will leave the production belt in August 2013, and the company expects to employ about 200 employees by 2015. TRI Group (Tokai Rubber Industries) was established in Japan in 1929 and quickly became a leader in the manufacture of automotive anti-vibration parts. TRI (Poland) was established in 1999 and is one of the leading manufacturers of anti-vibration and soundproofing parts for cars.

Cosmetics packaging investment of investment is the first “seed” in a planned Precision-cutting plant in 180 million pln cluster, aimed to attract cosmetic packag- Kamiennogórska sub-zone In Zgorzelec Subzone of Kamiennogórska, ing firms using modern technologies. The company “Motyl” s.c. – a unique world- the Aerosol International company, linked wide manufacturer of ultrathin grind- with the MAXIM capital group - one of the Chassis Brakes International ing wheels used for precision cutting and largest European manufacturers of cosmet- Chassis Brakes International (CBI), one of processing - has been authorized to set ics, will begin construction of a modern pro- the world’s largest manufacturers of auto- up business in the special economic zone duction facility for aerosol packaging. motive foundation brakes and brake com- Europark Mielec S.A. - Lubartów Subzone. The Zgorzelec zone has attracted direct ponents, initiated the construction of a investment of 1.76 billion pln, which has production plant in Mirkow near Wroclaw PAIZ boasts of another 400 jobs in created 4800 manufacturing jobs. This in October. The value of the project is €13.5 high-tech sectors new investment will be built on six hect- million, and it is expected to start opera- Three more companies recently announced ares of land, and the investment amount tions in August 2013. CBI is the former plans to invest and create antoher 400 will exceed 180 million pln and create foundation brakes business of Bosch, jobs, in the BPO, R & D and aviation sec- more than 300 jobs. International Aerosol which in June 2012 was acquired by KPS tors. Currently, the PAIZ Agency is work- company uses innovative technology to Capital Partners in a global deal. The trans- ing on 149 projects, with could lead to new produce packaging. In Zgorzelec, the firm action covered brake production opera- investment of 6 billion euro, and addition- will open an R&D center. Thanks to its tions at Bosch’s facility in Mirkow. These al 37,000 jobs. innovative technology, the company annu- activities will now be moved to a separate, There is no change in the list of the largest ally produces about 100 million seamless new plant erected for CBI. Whether the investors looking at new projects in Poland: cans. The production will supply MAXIM relocation brings new jobs will depend on the United States still leads with 31 projects group needs on packaging for manufac- the outcome of large contract tenders the (EUR 738 million, 6,049 jobs). Next coun- tured cosmetics, which are sold in more company is currently participating in, said tries are Germany with 18 projects (EUR than 40 countries around the world. This Wojciech Sliwinski, head of CBI’s Wroclaw 543 million, 4,429 jobs), United Kingdom (16 unit. CBI has 21 manufacturing facilities projects, EUR 191 million, 2,849 jobs), China and engineering centres in Europe, Asia, (11 projects) and France (5 projects). and South America and employs approxi- There was slight change among the most mately 6,000 people worldwide. popular sectors. In the first place remains automotive industry (28 projects, EUR Beef investor in the Łódź Special 2,098 million, 13,869 jobs), BPO (26 proj- Economic Zone ects, EUR 29 million, 7,043 jobs), ICT and Beef-Beef Company will start business in machinery (10 projects each), R&D and the Łódź Special Economic Zone. The firm chemical industry (9 projects each). plants to process (yes, you guessed it) beef. So far in 2012, PAIZ has already closed 36 The firm plans to invest at least 70 million investments, with a total value over 1 bil- pln to build a 29,000 sm facility, and will lion euro. The projects will create in Poland 26 employ at least 100 workers. at least 6,559 new jobs in the near future. November 2012 www.bizpoland.pl FDI News

Kazakh - Polish Economic Seminar of the Republic of Kazakhstan as well as with adjacent offices. The estimated in- The Polish-Kazakh Economic Seminar Kaznex Invest. vestment value is around PLN 3.8 million. was held in late September in Astana, and The company plans to employ 47 people included a visit by Deputy Prime Minister Medical tourism promoted to in- by the year 2016, and plans to start opera- and Minister of Economy Mr Waldemar ternational journalists tions in the new manufacturing plant in Pawlak. Foreign journalists came to Poland to mid-2014. The aim of the seminar, in cooperation hear about the potential for medical tour- By the end of the year 2013 another com- with PAIZ, was to introduce investment ism projects, including Polish health- pany from Szczecin is planning to final- offers between Poland and Kazakhstan resorts and clinics. The program, held in ized its new investment. HLK Dekoracja as well as strengthen bilateral economic late September, including study-tours to Okien Ltd. plans to build a 8000 square cooperation. The presidium was seated Warsaw, Krakow, Wieliczka and Wieliszew. meter manufacturing hall and 800 square by Prime Minister Mr Waldemar Pawlak, Journalists met the representatives of meter offices, on a 3 ha plot. The estimated Mr Rapie Żoszybajew - Secretary of the the Carolina Medical Center, Cyberknife, value of the investment is around PLN 16 Ministry of Foreign Affairs of Kazakhstan DENTestetica and “Wieliczka” Salt Mine. million. By 2016, the company said it will as well as President of PAIZ - Mr Slawomir These institutions are involved in the employ almost 200. It is also implementing Majman and Vice President of Kazakhstan promotion of Polish medical tourism, and a first on the Polish market – an innova- Chamber of Commerce and Industry - Mr supported by EuCP and Ameds Centre. tive system of building automation, which Erenow Ajan, who served as moderators The delegation included representatives is tailored to the interior window roller- of the meeting. The speakers’ presenta- of media journalists from the UK, Sweden, blinds industry. tions focused on the investment potential Denmark, Germany, Russia and the United between Kazakhstan and Poland, includ- States - countries identified as priorities in 16th Polish-Belarusian Economic ing the World Expo to be held in Astana in promotion of Polish medical tourism. Forum 2017, and the experience of Polish compa- In October in Minsk, the 16th nies investing in Kazakhstan. More investors attracted to Polish-Belarusian Economic Forum After the official speeches, match-mak- Szczecin special economic zone “Neighborliness 2012” under the theme: ing sessions and bilateral talks between Over 200 jobs as well as PLN 20 million of “Energy, agriculture and finance as the Polish and Kazakh businessmen and rep- new investment are coming to the Szczecin main source of growth of the Belarusian- resentatives of business organizations area, as a result of two large investors, Polish economic cooperation” was held. were held. who plan to operate on ul. Struga in the The Forum was held under the aus- The seminar was also an opportunity to Szczecin Special Economic Zone. pices of the Ministry of Economy and sign cooperation agreements between the Szczecin announced the sale of two plots the Ministry of Agriculture and Rural Polish-Kazakh Chamber of Commerce and within the Special Economic Zone. One of Development of the Republic of Poland the Union of Poles in Kazakhstan as well as the investors is Sanger Metal Ltd from and the Republic of Belarus. between companies Kazakhstan Opalubka Szczecin, which purchased a 5,000 square There were two plenary sessions, as well ULMA and AstanaSerwisStroiMontaz, as meter plot. The company specializes in as three special seminars devoted to the well as Krusz service and PSK M-Tunes. manufacturing devices used for lifting and energy industry, renewable energy and co- The seminar was organized by PAIiIZ, securing freight. The company plans to operation opportunities and conditions in the Chamber of Commerce and Industry build a 2500 square meter production hall financial institutions. The event coincided 27 2012 November FDI News www.bizpoland.pl

with the opening of the “Energy Expo 2012” Nickel BioCentrum and the Nickel International Fair and Exhibition, devoted Technology Park Poznań specialize in ac- to industrial power generation and renew- tivities to support the development of the able energy. IT sector and bio-business. “Neighborliness 2012” was organized by the Polish-Belarusian Chamber of New regional park and the ﬁ rst Commerce and Industry, the Belarusian investor in Gryﬁ no Chamber of Commerce and Industry In a newly established regional park in as well as the Department of Trade and Gryfino, near Szczecin, Gotech Ltd from Investment Promotion of the Polish Gorzów Wielkopolski will set up new ser- Embassy in Belarus. Strategic partner of vices and manufacturing facilities. The the project was the Agricultural Market company, operating since 1990, is a leader Agency. Dagmara Nickel, president of NTPP, in the Polish and European power and industrial construction market. The compa- Biomedical center opens near ny’s main sectors are construction, mod- Poznan for the last two years the organizer of ernization, renovation of electrical wiring In Złotniki near Poznan, Nickel international biobusiness meetings - and manufacturing services. Gotech’s BioCentrum has opened a new biomedi- BIOCONNECT conference”, said Dagmara main clients are western European com- cal center, housed within the Nickel Nickel, president of NTPP, at the opening panies from sectors such as energy, Technology Park Poznań (NTPP), which ceremony. “Thanks to funding from the chemicals, fuel, metallurgical as well as has more than 4,000 square meters of EU’s Wielkopolska Regional Operational timber processing. The company plans to class laboratory and office space for the Programme for years 2007-2013, which start production of steel components for sector. PTB Nickel construction com- provided 50% of the investment, we could power plants, and the investment will cre- pany is responsible for the 22 million pln create a very modern infrastructure near ate 80 jobs in the Zachodniopomorskie investment. Poznan, meeting the high standards con- Voivodeship. The reason of choosing “Nickel BioCentrum is another step in nected with bioeconomy. Setting up of the the town of Gardno as the factory’s loca- our ongoing projects that support the de- infrastructure will help to commercialize tion is its easy access to the German and velopment of Polish biotechnology, medi- the ideas and research results of Polish sci- Scandinavian markets. Gryfino industrial cal and Life Sciences. Our park, among entists and certainly will contribute in the park is a 160 ha area, including 55 ha with a others, is the founder of the Association coming years to increase the level of inno- status of Special economic zone with facili- of Wielkopolska BioRegion, as well as vation in our country.” ties worth over PLN 35 million. ■

28 November 2012 www.bizpoland.pl Politics Excerpts from Address of Prime Minister Donald Tusk delivered at the Sejm on 12 October 2012

Mr President, Ms Speaker, Mr Speaker, A few days ago, I presented to the general for many years to come. But let us make this Honourable Deputies. public a report on what we have managed to wide-ranging issue the subject of my address This information from the Government, accomplish as regards the objectives of the and our debate in the nearest future. which some call the second exposé, is, I be- exposé I delivered before the Parliament last Today, in the context of 2013, I need to and lieve, essential after the initial year of our year. I would like to say that I am aware that would like to focus on two issues that are key work, after the first year of the second term this year has not been easy for the people, in my opinion. However, they are key not for of the Government formed by the coalition although the primary objective, the most the government and not for the opposition, between the Civic Platform and the Polish important goal for the authorities in every but for the society. If everybody predicts that Peasants’ Party. Why do we need this second European country, is to effectively protect its 2013 will be another critical year, although exposé? Because 2013, which will be a dif- citizens against the effects of the crisis. This nobody knows to what extent, in Europe, and ficult year not only for Poland, a year with year was a kind of investment in difficult when everybody wonders what priorities we far more questions than certainties as to the decisions so that Poland and Poles could feel should set at turbulent times of crisis, I point developments in the economy, a demanding safe, so that we could say it in a year with a to two indisputable priorities. year calling for different tools and for creative clear conscience – we did not and we will not The priority is to maintain economic thinking to find solutions to protect Poland let the crisis in. It has obviously been knock- growth; to maintain Poland’s development against the crisis as effectively as today. My ing at our door, not for a day or a year, but we rate which fills the rest of the world with awe. so-called second exposé will largely focus on have made and implemented the decisions We should be determined to maintain this economic measures that the Government, that have not always been popular, to say the positive growth rate, even at a lower level all the Poles in fact, must undertake to keep least. And I am referring here mainly to the than in the recent years, regardless of the Poland safe during the global turmoil. There changes in the pension system and the retire- cost, not to brag with statistics better than are no grounds to believe that 2013 would be ment age increase, as well as to other deci- those other countries, but to protect each and less difficult or more calm in the global or sions concerning other professional groups every job. We have prepared several tools and European dimension. It will be a different that had been enjoying special pension privi- decisions which, in my opinion, will ensure year, but not necessarily a more difficult one leges, to the essential decisions arising from safety for Poles and will allow me to speak for Poland. We need to adjust our economic the need to stabilise the state budget – what in fairly optimistic terms about the hopes policy to the current situation, we need to act I have in mind here is the increase in pension attached to the Polish unique way of dealing in a flexible way, consistently, and come up contributions. But as all of you probably re- with the crisis. with fresh ideas. The value of such a strategy member, although some would prefer not to, Firstly, we have developed a banking tool has been proven by our experience in the last in my first exposé I also talked about what we which requires additional instruments in five years. Thanks to our ability to act flex- could contribute in these difficult times. And the form of a special purpose entity under ibly and tailor our actions to match the cir- we talked about the necessary raises for uni- the Polish Investments programme. Bank cumstances, Poland managed to survive the formed services. Police officers and military Gospodarstwa Krajowego (BGK) will be the critical year better than the majority of other men received them as of 1 July. Other ser- operator. Until 2015 it will be provided with countries. After a year that has not been easy, vices – as of 1 October, as announced. Owing the capital of PLN 40 billion to achieve in- I would also like to provide you with a concise to the fact that this year we did not have to vestment capacities amounting to PLN 40 report on what we have managed to achieve spend enormous sums of money on removing billion in this period, i.e. until 2015. This in this year. the consequences of natural disasters – and will be possible to achieve without compro- this was the condition we mentioned – we mising Poland’s financial security, i.e. with- * * * managed to find the necessary funds. As we out increasing the public deficit or debt by I am aware that any authority can sometimes announced, we also started a cycle of salary this amount. This will be possible by mak- be irritating. The Government in office for rises for the employees of higher education ing active use of currently frozen capital. I five years can be disappointing. I know this institutions. It is a 10% rise each year. We are mean state-owned shares in State Treasury from my experience as the Prime Minister, going to launch the project in 2013. companies. We would like these assets, cur- but also from my experience as a member rently passive so to speak, to work for the * * * of the opposition, and therefore I have no benefit of investments with the participa- doubts that those who remain in the coali- In my address, I would like to focus on two tion of private capital and higher creditwor- tion, as well as those who are disappointed key issues. The third highly significant issue, thiness. According to the calculations which with it, will demand that every day, not just namely our strategy in Europe, our foreign will be presented by Minister Rostowski and on an exceptional day like this when I present policy in the context of the changes tak- by Minister Budzanowski in more detail to- this information, we prove that every action ing place in the European Union, will be the morrow, this way we will be able to create a we take is an effort to regain their confidence subject of a separate address following the leverage for investments in and lending to and trust, to rebuild their faith, not only in October meeting of the European Council, the Polish economy. As I already mentioned, the authorities, but also their faith that their but still before the crucial November meet- the investments will absorb up to PLN 40 bil- affairs, everyday affairs of ordinary Poles, are ing. I believe that the Parliament will also lion by 2015 and about PLN 90 billion over on the right path. be prepared for a very serious debate on the six years, and they must be profitable. The possible ratification of the fiscal compact, investments cannot be treated as a form of * * * as it will also outline our European strategy state aid. 29 2012 November Politics www.bizpoland.pl

Companies with the participation of State Perspective. Therefore, we are looking for * * Treasury and the government make joint de- ways to mobilise financial resources for the * cisions on large scale investments in the ener- purpose, as well as for fast public procure- We are also looking for other funds that gy sector. It has twofold implications. Firstly, ment and project implementation proce- could be invested in development, which also we continue the large programme for energy dures, so that the money that we talk about translates into new jobs, in fields which so security and Poland’s energy independence while referring to “Polish Investments” far have not always served the Polish labour that we started five years ago. Secondly, could work, could start to work immediately, market well. This is why we have decided this way we invest not only budget funds, without waiting until projects are finalised. – at which point I would like to thank Mr but also funds that belong to commercial I would like to mention at this point the pe- President for support and Minister Tomasz law companies. Large energy projects that riod between the end of 2012 and 2015 – this Siemoniak for the initiative – to consolidate involve the work of thousands and tens of is when, I believe, we will be responsible for expenditure for Polish military security so thousands of people. What facts are we talk- this issue. This sum of PLN 43 billion should that as much equipment as possible is manu- ing about? We are talking about around PLN be invested in the continuation of the mo- factured in Poland. At the same time, howev- 60 billion until 2020, for the investment pro- torways and national roads programme. er, we want to ensure that Polish manufactur- cess will last as the projects are large. It will For example, in 2012 we will announce ten- ers guarantee a high level of the equipment last for many years, but it starts now. Here, ders for completion of the missing part of that we will deliver to the Polish army. This I am talking about building power blocks. In Poznań ring road, and in 2013 - for another is why we will do everything in our power to Turów, in Opole, in Puławy, in Blachownia, section of the A1 motorway between Tuszyn ensure that this expenditure – which, as you in Stalowa Wola, in Jaworzno, in Kozienice, and Pyrzowice. In 2013, tenders will be an- know, we secured by refusing to reduce funds in Włocławek. I am talking about continuing nounced for the Marki ring road, as well for national defence below the threshold the construction of a gas terminal. I am talk- as for the completion of S7 road between which we accepted many years ago – that it ing about a project that has already started – Gdańsk and Warsaw, and for the S19 road helps to create new jobs. For today Polish se- thousands of kilometres of gas pipelines, and between Rzeszów and Lublin. In the years curity is not just about the planned purchases about gas storage facilities. By the end of 2014 2014–2015, tenders will be announced for S5 and manufacturing equipment in Poland. Let we will have enhanced their capacity from road between Poznań and Wrocław, and S7 me emphasise that I refer to manufacturing slightly over 1.5 billion cubic meters to almost between Warsaw and Krakow. helicopters, ships, Rosomak transporters and 3 billion cubic meters during these two years. We are also going to invest in the mod- building the air and anti-aircraft defence sys- What is more, we plan to finish the intercon- ernisation of railways, and will look for pos- tem in Poland, also with the involvement of nector, i.e. the energy link between Poland sibilities of EU financing. Modernisation the Polish industry. Because security is not and Lithuania built with the use of European of railways has been one of the most disap- only about high-quality equipment, it also funds, in 2020, but we are starting work now. pointing projects in recent years. Poles are means jobs resulting from these investments. We are also expanding the Gdańsk oil ter- disappointed because extremely lengthy We are talking about a very high amount. The minal. If we sum it up for the total for the railway projects result in extended travel sum in question is PLN 10 billion between next seven years, the PLN 60 billion will also time and in uncomfortable travel condi- 2013 and 2014, but the planned strategic in- translate into actual jobs as soon as in 2013. tions. We are paying this price, passenger vestments are going to amount to a total of We have concluded the work on a legal discomfort, because we expect that mod- almost PLN 100 billion by 2022. We want the act that has given rise to various emotional ernisation will finally produce some effects: money to work as effectively as possible in reactions: the Act on shale gas. As you know we will be able to announce tenders for the these times of crisis. – and especially one MP keeps reminding us purchase of new rolling stock for the Polish I would like to strongly emphasise that of the issue – shale gas is extremely impor- National Railways. These tenders are sched- the Government and the President see eye to tant for Poland. However, we do not need to uled for 2013 – theoretically the most diffi- eye on the directions of strengthening Polish be reminded, we are well aware of the hopes cult year to come. We are talking here about national security. The security of Poland is that Poles vest in our new national source of allocating PLN 30 billion for the modernisa- possible by close cooperation with the NATO energy. Shale gas means also some direct in- tion of railways in the period between 2013 and the United States in setting up the air vestment by state-owned companies: PGNiG, and 2015. defence system, including the anti-missile Orlen, Lotos and KGHM. It also involves con- As you know, the fight for the EU budget defence system. This is accompanied by the structing three drilling pad sites; we assume is waging. Confident in our effectiveness in implementation of the NATO Smart Defence that by 2016 these investments will reach PLN Europe, we have declared that PLN 300 bil- idea, or smart common defence, which we 5 billion. The Act on shale gas should become lion is a satisfactory minimum. We are talk- are going to develop together with our neigh- a topic of our joint debate; this act must not ing about the period between 2014 and 2020. bours in Europe and which should also bring be treated as a property of this Government This fight for the budget has reached its about multi-billion investments in the Polish or of any future governments: it must ensure climax. As I have already mentioned, I will defence system and research centres – we are energy and financial security of all Poles. inform the Parliament about the European working hard on that together with our part- We will also carry on with the most devel- Council meeting in November, which will be ners. This might also include investments by oped national infrastructural project, the of crucial importance to this battle. I am con- foreign companies. project which, as many people believe, has vinced that the Polish ambitions concerning When adding up these funds, we arrive somehow lost momentum after the EURO the amount which we indicated over a year at the sum of PLN 700-800 billion, which is 2012. I am talking about motorways and ago and which will enable us to maintain the going to back European funds in this new national roads. We all know the dramatic growth and pace of development in Poland, European perspective. A large part of these experience of some construction compa- that this plan is feasible – albeit difficult. The funds is going to be invested in the crucial nies; we also know how important it is to difficulty lies mainly in the scepticism of the 2013-2014 period. continue investment, regardless of the gap British and the conservative British govern- We are working on a new liquidation 30 between the current and the next European ment about the new budget. law and a new building code. Work on the November 2012 www.bizpoland.pl Politics commercial judiciary centre is also underway. million in 2013. And in 2014, we will have losing it in the face of the crisis, the faith Minister Gowin proposed this initiative to to spend much more than that. As you well and hope that cooperation is possible, and consolidate and centralise commercial divi- remember, we decided to spend additional that Poland will continue to develop as safe- sions of Warsaw courts so as to enable com- PLN 320 million on kindergartens in 2013. ly as it has done so far. I believe that these mercial cases to be handled in a swift and We will not stop there, although looking at little dreams, these seemingly small goals, competent manner, rather than torment the increase in the number of places in kin- form the most all-encompassing vision, and those waiting for a verdict. dergartens we assume that the problem of the greatest and most splendid idea. Let me kindergarten availability, and I do not talk tell you this, Ladies and Gentlemen, I be- * * * about prices but about availability, will be lieve we all share a kind of historic aware- I would like to add – and this is the second solved in 100% in 2015. Our task is to achieve ness, we have it in our heads and in our issue I want to devote myself to – that in the a situation where availability stands for a rea- hearts – mine is very intense and I feel it present time of crisis, the word ‘safety’ has sonable price as well. This is why in 2013 we every day – the awareness that for the last gained a different, more intimate and more will increase the subsidy, by PLN 320 million odd twenty years we have been racing his- personal dimension. It is the safety of the for now. tory. We have been racing for years of peace, Polish family and Polish children. We have for good relationships with our neighbours, * * * to understand that a family stands for all and for opportunities of development, of generations, from the oldest to the young- I have not mentioned the achievements of using the European funds, and of strength- est. If we want to focus on the safety of several ministers, nor such important proj- ening our position in the Western culture. the family today, we have to acknowledge ects as “Optimum State”, which is being de- For twenty years we have been racing time, that we need to stop the fragmentary and veloped by Minister Boni, based among other remember that history has rarely given us ineffective measures that have been under- on digitalisation projects. It is their task now so much time. It, however, is really possible taken for so many years – I know it well and to win the public and to win you over during that – maybe not in one but maybe in five that is why I am going to present relevant their presentations. years – history will show us its dreadful face proposals in a moment. This is the only area I have already mentioned our future in again – here in this part of the world, just as where I will allow myself to use the word the European Union, filled with more di- it did so many times before. I want to stress ‘revolution’ – because this is what Poland lemmas than simple hopes. As I have said, I that we have to be prepared when this time needs, a revolution for the sake of the safety will talk about it also here in this Chamber, comes, we have to be ready. We have to gain of mothers who, together with fathers, de- among others, during our attempt at ratifi- as much time as possible, and in this time cide to have a baby. The measures undertak- cation of and during our discussion about a that we gain we have to build as much as en so far have failed to bring the expected potential ratification of the fiscal pact; this possible, and invest as much money as pos- results. However, we know that successful debate will, in fact, give us a foretaste of the sible - in our children, in our roads, in our actions are possible. I will now briefly pres- upcoming in-depth discussion on where, at families and in our workplaces. Whether ent the plan that we want to put into prac- which point, and when Poland is to join this you like it or not, today Poland is held in tice already in 2013. new integration process, the reintegration high esteem and it is enjoying a good repu- Firstly, and this is the key element, we want of the European Union. This is a difficult tation; the world has noticed that millions to propose extending the maternity leave be- discussion, which however we cannot evade. of normal people took to work here some yond the originally planned six months. The Finally, I wish to tell you, Ladies and years ago, and proved that Poland can be extension to six months was to be introduced Gentlemen, that in the recent years, and a role model, and not a whipping boy. This next year, and was to be the final solution. also in the last year, I have often heard the is the vision, the great idea that we would However, we propose to extend maternity opinion that our actions and our propos- like to put into practice. We want to com- leave to one year. We are looking at a model als lacked the great romantic vision. In a plete this enormous task without too great that has proven successful in Europe, al- way, I share this opinion – it really is so. a pomp, possibly with making mistakes. though only one country has decided to intro- I am not – and I never will be – a special- In order to do this, I need the trust of duce it, Sweden. Nevertheless, I am convinced ist in great romantic visions or romantic this Parliament, I need confirmation that that we would not be able to find a better way elations. As a matter of fact, in these five last year’s elections brought about a stable to quickly improve the situation. years, and also in the years to come, if I am parliamentary majority; we need more trust I would like to see the project implemented given such a possibility, I will have one goal than the society has now. We will not gain in 2013. I expect that by 2015 we will defini- and one dream - I feel that it is the same as it with one address or one voting. I wish tively solve the child care problem in Poland. goals and dreams – maybe small and mun- to make such an ordinary human commit- To that end, we suggest changing the financ- dane – of ordinary Poles. Neither a worker ment to you. Every day we will strive, even ing rules for building day care centres. We re- nor a shop assistant, a student, a cook, a harder than we have done so far, to regain ceived many reports from local governments teacher, nor I dream about victorious wars your support, your trust, your faith, and that the current co-financing rules are im- – wars in our history have been associated your conviction that Poland can carry on as possible to bear, particularly for poorer local more frequently with defeat and have often safely as it has done so far. I firmly believe governments. Therefore, I suggest changing been lost. We are not filled with any kind that it can. Even if I have failed so far to do the proportion from 80% to 20%. Local gov- of national messianic mission. We are not everything to make you believe in it as well, ernments will have to contribute only 20% searching for occasions to make sacrifices. we will strive every day in the coming three when they decide to build a new day care We do not want to prove anything to the years to make everybody in Poland regain centre. world by force. That’s the way it is. My vi- confidence in themselves. Also private entities that decide to invest sion consists of small, everyday dreams. I Thank you very much, Ladies and in day care centres will be able to obtain co- really wish I could convince everybody that Gentlemen. Ms Speaker, I hereby ask you funding. It translates into expenditure for each day to come will be an attempt to re- for a vote of confidence – the confidence new day care centres increased by PLN 50 build faith and regain hope of those who are that I hope for. Thank you very much. ■ 31 2012 November City Investment News www.bizpoland.pl

Julian Pilszczek, chief executive of Kraków MPK Kraków, said: “We are delighted with the design of this state-of-the art tram inspired by the spirit of Kraków. The ve- Kraków beats out 30 cities to land status as a thriving economy that has escaped hicle’s most prominent features are the next business services center the deep recession affecting most other parts blue ceiling with LED lighting, an allegory Premier Farnell plc has chosen Krakow to of Europe has also been a factor in helping us to the stars in the sky, and the city’s arms be its commercial centre of excellence for successfully entice experts from other coun- with the Kraków dragon on passenger Europe. The company is a global leader in tries to relocate to Krakow.” seats. These new, modern trams will shape high service distribution of technology The Farnell element14 brand is now well the future cityscape of Kraków.” products and solutions for electronic sys- established in the Eastern European mar- The first public presentation of the new tem design, maintenance and repair. ket where its customers include OEM and tram for Krakow took place at September’s The new Centre is providing best in CEM’s from high-tech industries such as InnoTrans trade fair in Berlin. Germar class outbound telesales and telemarket- medical, telecommunications, consumer Wacker, president, light rail vehicles, ing in 22 European languages to Farnell and automotive. Bombardier Transportation, said: “This element14’s new and existing customers fourth order in a row confirms MPK’s across the continent. The centre is part of a Kraków receives ﬁ rst tram of new confidence in Bombardier as a supplier of strategic investment representing Farnell ﬂ eet proven urban transport solutions. ” element14’s commitment to delivering a Bombardier has handed over the first of a Janusz Kućmin, chief country repre- multi-channel service. The centre works new fleet of Flexity trams to the Kraków sentative for Bombardier Transportation closely with the field sales, customer ser- Transport Authority. The Mayor of Kraków, in Poland, said: “At present, the city of vice support, e-commerce and marketing Jacek Majchrowski, welcomed the Polish Kraków has one of the most modern pub- teams in Farnell element14’s network of city’s first new tram from an order for 24 lic transport systems in Poland and the offices across Europe. units which was signed in 2010. MPK Kraków biggest fleet of reliable low-floor Flexity Farnell element14 began building the placed its first order with Bombardier for 14 trams in the country. I am glad that the team in Krakow during March 2012 and trams in 1998. The total number of vehicles trams we produce have become an inher- has built a 120-strong, multi-cultural team supplied by the rolling stock manufacturer to ent element of the panorama of this beau- representing 24 different European na- the city now stands at 74. tiful city.” tionalities. The team has been through an intensive training programme and is now able to fully support the needs of Farnell element14’s European customers. Speaking at the opening ceremony, Kevin Yapp, Chief Strategy and Marketing Officer, Premier Farnell plc said: “E-commerce through our Farnell element14 transaction- al sites now accounts for more than 75% of our European business and in order to continue to evolve our competitive advantage we have created this centre to ensure our customers receive the best possible service as they continue to interact with us through their channel of choice. We recognise that in an online world good quality conversations and personal interaction are extremely important to our customers. The opening of the Krakow Commercial Centre demon- strates Farnell element14’s commitment to a flexible, multi-channel service that allows our customers to choose the way they buy and engage with us.” Elaine Barnes, Head of the European Commercial Centre in Krakow commented: “Today’s opening ceremony completes what has been a highly successful start up phase for the Krakow centre. We considered some 30 different European locations before choosing Krakow, thanks to its impressively diverse, multi-cultural and multi-lingual community, which offered a rich pool of high potential talent for us to recruit from. The famous Polish work ethic and strong customer service cul- 32 ture was also a great fit with our own. Poland’s November 2012 www.bizpoland.pl City Investment News

Currently, the core of its activities focus Szczecin on corrective action of distressed assets. Production at SSN was stopped in January 2009 because the European Commission Major industrial restructuring of 50 Founded in 2000, TFS is owned by the concluded that the shipyards in Gdynia ha Szczecin Shipyards Treasury Ministry, and specializes in eco- and Szczecin (owned by the Polish gov- Bain & Company consulting firm will nomic revitalization of industrial areas. ernment) received illegal state aid. Assets assist Towarzystwo Finansowe Silesia The original mission of the company was of the yard were sold and workers were (TFS) in the preparation and implemen- the restructuring of the steel industry. laid off. tation of the concept for redevelopment of land formerly owned by the “New Szczecin Shipyards” (SSN). The project is divided into several stages. “The analytical phase will take into account the area’s industrial potential, location, scope of investment, and global market trends”. The next phase of the project will be creation of a business plan and preparation for the implementation of the selected solution. TFS and Bain will also consult with the local government and regional and local business representatives to take into account the development priorities of the region and Szczecin, and the potential for local companies. The ﬁ rst phase of the project will be ready in a few months. For TFS, based in Katowice, in 2010, SSN’s real estate is its most valuable asset. Among the assets purchased by TFS are three slipways, a quay (length of 510 m) equipped with lifting equipment and storage yards, industrial buildings, office buildings and land with a total area of 50 hectares. Katowice

Galeria Katowicka and train station opened – 240 million euro project In the last days of October, the city of Katowice officially opened its newly- renovated train station and adjacent shopping centre Galeria Katowicka. VIP guests poured in, including former Prime Minister Jerzy Buzek, the Minister of Transport Slawomir Nowak, President of PKP Group Jakub Karnowski, as well as Katowice mayor Pitor Uszok and top management of the Spanish developer Neinver, who spearheaded and bankrolled the project. Mayor Uszok cut the symbolic ribbon, adding “let’s do everything to keep the new Galeria Katowicka, quietly observed the the train station will continue. The new station looking this way, because we all re- crowd. “It’s interesting to watch how they station is about 6,000 square meters, and member what the old one was like!” discover this place again. Today we have the adjacent shopping center houses more Nicolas Roques from the studio Sud finished just one giant jigsaw puzzle piece”, than 250 shops, with parking for 1200 cars Architectes, who designed and built the since construction on additional rails of under ground. 33 2012 November City Investment News www.bizpoland.pl Łódź

EIB continues to support moderni- modernization of the 164 km of the E59 sation of Polish railways between Wroclaw and Poznan, which is ex- A loan of EUR 100 million from the pected to be completed by 2016. European Investment Bank will finance Anton Rop, EIB Vice-President respon- the modernisation of 58 km of twin track sible for operations in Poland, said: “The line between Warszawa Zachodnia and EIB funds will help to upgrade the railway Miedniewice to the speed of 160 km/h, and lines along the key transport corridors installation of signaling equipment on a 42 in Poland, contributing to an increase of km section of the already improved line be- transport safety and speed and improving tween Miedniewice and Lodz Widzew. the environment by promoting environ- mentally friendly modes of transport.” The current loans are a continuation of increasingly heralded as a strong promotion- EIB’s cooperation with PKP Polskie Linie al event for the City of Lodz, and consistent Kolejowe S.A. Including the current loans, with its branding strategy of being a city for the Bank has provided loans to PLK total- creative talent. “It’s an amazing promotion ing EUR 1.4 billion to finance railway mod- for the city”, said Izabella Adamczewska, a ernization projects across Poland. co-organizer, “not just the city but for the design schools. Professors and lecturers of the FashionPhilosophy Fashion Week faculty of design from all over Poland come to Poland the festival”. In addition to events at the Łódź The upgrading of the line between Lodz once again hosted its FashionPhilosophy Special Economic Zone, the hotel Andels also Miedniewice and Lodz Widzew to the Fashion Week, which continues to grow in hosted several events and private parties. speed of 160 km/h was already accom- size and stature amongst European fashion Inside the hotel’s rooms, designers such as plished in 2008. designers and fashion labels. The 4-day event Maciej Zień, Agata Wojtkiewicz and Natalia Another loan of EUR 65 million will ended 28 October, after showcasing more Jaroszewska showed off their newest designs contribute to the upgrading of a 32 km- than 120 collections from mostly young, as- for the spring season. long section of the twin track railway line piring fashion designers from Poland’s top More than 30 collections were featured from Poznan to Czempin in the southwest fashion schools. The week ended with the on “Designer Avenue”, including the Aga Poland, which is part of the E59 European fashion show of Dawid Tomaszewski, one of Pou designers, Agata Wojtkiewicz, Berenice Rail Corridor connecting Malmo in Sweden Poland’s best-known fashion designers and Czarnota, Grzegorz Kasperski, Basic, with Ostrava in the Czech Republic a regular at the Lodz Fashion Week. He is Maldoror, Michael Szulc, MMC Studio, through Poland via Szczecin, Poznan, graduate of the London Fashion Academy, Natalia Jaroszewska, Nenukko, Orsay, Wroclaw and Chalupki. and studied under Vivienne Westwood in Biskup Handbags, and Tomaotomo. Not Just The modernised line will make it pos- Berlin, and has worked for world-renowned a Label, one of the largest online platforms sible to use trains operating at a maxi- designers and brands such as Sonia Rykiel for the fashion industry in the world, showed mum speed of 160 km/h. As the European and Comme des Garcons. off the newest collection of Mads Diensen. Investment Bank reported, this section With over 2,000 square meters of ex- forms the second part of the planned hibitions and showrooms, the event is Łódź shows off s its new technologies and new Projects At Twin Cities Forum Within the Forum of Twin Cities, the City of Lodz hosted several partner cities, including representatives from Iwanow, Kaliningrad, Odessa, Lwow, Rustaw (Georgia), Tampere (Finland) and the Mexican city of Pueblo. “It is important that our cooperation is not limited to the exchange of correspon- dence, but within the Forum of Twin Cities, I wish that our exchange will be rich - include youth meetings, science and cultural exchanges”, said Lodz’s president Hanna Zdanowska. The city promotion officials visited several of Lodz’s landmark new developments, including the airport, BioNanoPark, the Barry Callebaut chocolate factory, Manufaktura shopping center, and the EC-1 34 city redevelopment project. November 2012 www.bizpoland.pl City Investment News

At BioNanoPark, the guests saw progress in the field of biotechnology and nano- technology, including a three-dimensional printer installed in the workshop for medical implants. The device creates shapes that allow one to perfectly fit implants used in facial surgery. The Barry Callebaut chocolate plant provides confectioneries and chocolates - in various forms - white, black, powder, liq- uid. “When we opened our factory here in 1996, not many people in the international community had heard of Lodz, but now it’s changing. We chose this location because of the great location, close to Warsaw, and presence of universities, which means qualified staff. The city supports us and is a good partner - said Witold Dachniewski, vice president of the chocolate company.

date in Poland, on a much smaller scale and Poznań involving far less complexity. The development of the project in Poznan is closely followed by the Polish Ministry of Poznań drops out of race to host Medellín, Glasgow, Guadalajara and Regional Development and the Commission. 2018 Youth Olympic Games Rotterdam all still involved. Other Polish cities are expected to follow suit, Poznań, one of the favourites to host the 2018 possibly in the next EU budget period (2014- Youth Olympics, has pulled out of the race to Poznan Waste-to-Energy Project 2020), if the Poznan case proves successful in stage the Games due to a lack of financial combines PPP with EU subsidies for terms of both PPP structure and its capacity guarantees. Poznań was bidding for the com- maximum eff ect to blend. petition for the second time in succession, In order to comply with new national and The Poznan Waste-to-Energy Project is having narrowly lost out to Nanjing for the European environmental standards on waste subject of a case study that is part of a series 2014 edition of the event by just five votes. disposal, a number of Polish cities and regions being prepared by EPEC on projects that have But it has stunningly withdrawn from the have commenced (in the current programming combined or have attempted to combine EU race, with the City Council failing to provide period (2007-2013) project preparation for the funds with a public-private partnership (PPP) the financial guarantees of around €20 mil- construction of waste incinerators. The proj- structure. Much more information can be lion to organize the Youth Olympic Games, ects are consistent with national and regional found under cee-environmental.com, from with 27 councillors voting against with only strategic documents and the objectives of the which the article above is an excerpt. four in favor. Polish Operational Programme Infrastructure and Environment 2007-2013, making them Hotel Polonez in Poznan acquired The move comes largely eligible for EU grant co-financing, with grant by Griffi n Real Estate because of Poznań’s spiralling amounts reserved for their co-financing. A fund managed by Griffin Real Estate has debt problems. Up to PLN 352 million have been pre-allo- acquired from Orbis S.A. the 369-room Hotel “It is a great shame that the City Council did cated to the project. The cities of Bialystok, Polonez and an adjacent 4,000 square meter not agree to the funding guarantees for the Bydgoszcz-Torun, Gdansk, Koszalin, Krakow, development site, located at Al. Niepodleglosci 2018 Youth Olympic Games,” said the Mayor Lodz, Szczecin and Warsaw have already an- in Poznan. Financial terms of the transaction of Poznań Ryszard Grobelny. “I’m convinced nounced plans to build similar infrastructure were not disclosed. Colliers International ad- that the city of Poznań would have been a great but only Poznan has so far chosen to go ahead vised Griffin on the transaction. The Hotel host for the event and could have organized a with a PPP structure, although Gdansk, Polonez was built in the early 1970s and has great Games. We deeply regret that this event Koszalin and Lódz are also considering pro- a usable area of 21,000 square meters. The will not take place in our city in 2018.” curing the infrastructure via a PPP structure. Property is situated in central Poznan near the The withdrawal came just days before The waste-to-energy project of the City of historic Old Town and in the direct neighbor- the candidates for the 2018 Youth Olympic Poznan is one of the most advanced cases in hood of the University of Adama Mickiewicza. Games were due to hand in their bid books Poland of a greenfield project attempting to Griffin plans to convert the Hotel Polonez into to the International Olympic Committee combine EU funds (from the Cohesion Fund) a student housing condominium project and (IOC) at its headquarters in Lausanne on with a PPP structure. Even though blending the redevelopment of the property will include October 15. PPPs with EU funds is feasible in the cur- a 5,000 square meter commercial base. Orbis But despite the shock withdrawal of rent financial climate, relatively few projects S.A. has also granted exclusivity to Griffin on Poznań, the bid race remains the most where the private sector effectively lever- another major property located in Warsaw competitive in the short history of the aged the project have succeeded in Europe and this conditional transaction is scheduled Youth Olympic Games with Buenos Aires, and only one is known to have succeeded to to close in 2013. 35 2012 November City Investment News www.bizpoland.pl

He said that by concentrating the pro- Wrocław duction of complete buses in one single plant, the company can reduce costs and thus reverse its negative profitability trend. The planned restructure means that production at the Volvo Buses plant in Saffle, Sweden, will be terminated at end June 2013, provided union negotiations have been completed by then. The company forecast volume growth in Europe will remain low in the coming years and that price pressure will continue. By focusing all production on the much larger plant in Wroclaw, Volvo Buses expects to achieve the economies of scale that are essential in order to tackle the increasingly tough competition on the market. The plant in Poland has four times the capacity than the one in Saffle. DB Schenker launches second London – Poland service DB Schenker Rail launched its second Inter IKEA to invest €50 million to Volvo shifts European bus produc- weekly service between the UK and create largest Polish mall by 2014 tion from Sweden to Poland Wroclaw in Poland in early October, when Inter IKEA, the development arm of Swedish- Swedish Volvo AB said its Volvo Buses unit a train loaded with ‘a range of manufac- based global furniture chain IKEA, is plan- is planning to concentrate its European tured goods’ departed from Barking in east ning to modernize and extend its Polish production in the company’s main plant in London. Having launched a weekly service shopping mall in Wroclaw to create the larg- Wroclaw, following weak market develop- in November 2011, DB Schenker has now est centre in Poland by 2014. It aims to invest ments and tough European competition, a doubled the frequency in response to ‘in- more than €50 million in the project. move that will affect 330 permanent em- creased customer demand’. The refurbishment of Park Handlowy ployees and about 60 consultants. ‘DB Schenker Rail is a pan-European Bielany will almost double the size to If production is relocated, it is expected rail freight operator and the strengthen- 150,000 sq.m., allowing it to accommodate that this will negatively impact the Volvo ing of our services between Poland and about 200 shops compared to some 80 at Group’s operating profit in the fourth the UK clearly illustrates the success of the moment. Current tenants include su- quarter of 2012 to the tune of about $15 our strategy for European rail freight permarket chain Tesco and clothing retail- million, Volvo said. growth ’, said DB Schenker R ail Chairman er H&M. The group plans to start construc- “The demand for new buses in Europe Alexander Hedderich. ‘Through effec- tion next spring and open the extension in has dropped steadily over the past few tive trading corridors such as this one 2014. “This investment is of huge signifi- years, paralleled by considerable pres- we are able to provide customers with cance for us, we have been preparing for it sure on prices, particularly in the Nordic the economic and environmental solu- for a long time,” said Mikael Andersson, markets,” said Hakan Karlsson, President tions that enable their use of rail freight Inter IKEA Centre Group Poland MD. IKEA Volvo Bus Corp. to increase.’ plans to demolish its own store in the mall Operating on High Speed 1 between to make room for Park Handlowy Bielany’s London and the Channel Tunnel, the DB extension, and is building a new location Schenker service is able to carry 9 ft 6 in nearby to replace it. Inter IKEA manages high swap bodies that would foul the load- eight shopping centres throughout Poland, ing gauge on conventional routes in the UK, including two in Warsaw. as well as standard European wagons.

in September 2012, with delivery planned Trojmiasto for the end of Q1 2013. The total value of the project is estimated to exceed €300 million on completion. Goodman commences construction (DCT), it is the largest logistics hub of its “Due to its excellent location, we are of Pomeranian Logistics Centre kind in northern Poland. When completed, convinced that our Pomeranian Logistics Goodman has launched its flagship devel- it will feature approximately 500,000 sq me- Centre in Gdansk will meet with consid- opment project in Poland, the Pomeranian ters of high quality warehouse and light in- erable customer interest, particularly as Logistics Centre (PLC). Located adjacent to dustrial space. Construction of the first fa- northern Poland still lacks well-located 36 the Gdansk Deepwater Container Terminal cility, a 14,000 sq m warehouse, commenced logistics and industrial areas,” said Blazej November 2012 www.bizpoland.pl City Investment News

Ciesielczak, Regional Director Goodman demonstrating the huge potential for Poland. “Development of the logistics cen- Poland to serve as a major gateway to CEE tre has significance for Gdansk as a city and to Russia” says Boris Wenzel, DCT aiming to become the main gateway to Gdansk CEO. “DCT Gdansk development countries in central and eastern Europe. We was possible thanks to the relentless sup- are pleased that construction has begun,” port from the local authorities. The close said Boris Wenzel, CEO DCT Gdansk. cooperation between DCT and local au- “The last few years have seen billions of thorities has ensured the development of euros invested in Poland’s transport infra- surrounding road, rail and logistic infrastructure by both public and private sector structure that were necessary to accompany entities. The on-going investment process is operating locally, domestically and interna- DCT’s rapid growth. To date, 500 jobs have a window of opportunity for ports and local tionally, across industry sectors including sea been created in DCT alone and many more authorities in Gdansk to create one of the transport, logistics, distribution, food and will be generated by the 100 ha logistic park largest intermodal logistics hubs on the Baltic FMCG. Our flexible approach allows us to project which is now under construction”. Sea. The investment has the potential to be- offer built-to-suit warehouses, production fa- DCT Gdansk was opened in October 2007 come one of Poland’s main economic drivers, cilities, distribution centres and office areas,” and has rapidly developed into Poland’s creating new jobs and, as in the examples of Mr Ciesielczak added. biggest container terminal with over 57% Hamburg and Rotterdam, generating signifi- share in container handlings. The terminal cant revenue for local communities and the Deepwater Container Terminal serves Poland, surrounding CEE countries state. Goodman’s logistics centre project at Gdansk toasts its 5th year and Russia and is the only hub port on the Gdansk’s northern port is an integral part of Deepwater Container Terminal (DCT) Baltic Sea with weekly calls of Ultra-Large Gdansk celebrated its fith birthday. On this container vessels. occasion DCT also announced that it has “DCT’s success is the outcome of hard increased its capacity by 25% to 1,25 million work of many anonymous people, who were TEU with the addition of new stacking areas. breaking the barriers to build this terminal” The celebration took place on 15th October in said Pawel Adamowicz, Mayor of Gdansk. “I presence of the Marshal of Pomerania region, would like to congratulate all the people in- the Mayor of Gdansk and the Presidents of volved in the creation of DCT. I would like to Port Authorities of Gdansk and Gdynia. express my recognition to Boris Wenzel for “DCT Gdansk was created out of the vi- whom DCT’s success is a source of personal sion that Gdansk and the whole Pomerania pride. I remember Boris’ smile when he was this vision,” said Alan Aleksandrowicz, CEO region may shine as major gateways for sharing his vision of the development of Gdansk Economic Development Agency. trade as was the case back in the XVI cen- DCT Gdansk on our last visit to China. DCT “The potential customers we are targeting tury. Many did not believe that this would is a very important investor and we are more with this development include companies be possible, but today DCT is already than happy to host it in our region.”

Ferrovial to build €40m cultural Lublin centre in Lublin Budimex, Ferrovial Agroman’s Polish subsidiary, has been chosen by Lublin’s Lublin Airport looks to secure passenger numbers. “It depends on traffic. authorities to build the city’s Cultural EuroLOT links It could be after 2015. Not early than that Encounter Centre. The new airport in Lublin, which will for sure but we will see. When we hit one The project, worth €40 million, is sched- launch with routes from low-cost carri- million passengers a year, that will be the uled for completion in 2015. ers Wizz Air and Ryanair in December, is signal to start further expansion.” Lublin is Poland’s ninth-largest city and in talks with EuroLOT and charter carrier Krzowski added that Wizz Air is ex- one of the country’s most important aca- Travel Service Airlines to secure additional pected to form a small base at the airport demic and cultural sites. The authorities new air services. from next March, and that Lublin was also envision the Cultural Encounter Centre as The airport, which officially opens on in talks with Eurolot about starting flights becoming one of the city’s landmarks. November 10, will initially have the ca- from December 2012. The project requires the partial demoli- pability to handle one million passengers tion of a 40-year-old unfinished building a year, but has ambitions to grow to 3.5 and the construction of the new building million after 2015. Ryanair will fly three in its place. The centre will have five floors, times a week to London and twice weekly two of them underground, and a multifunc- to Dublin, from December 17. Wizz Air will tional hall accommodating 1,200 people. fly twice a week to both Oslo and London, As part of this contract, Budimex will from December 18. The airport is predict- also refurbish the adjacent building, ing 300,000 passengers in its first year. which houses the Musical Theatre and the Lublin Airport’s CEO, Dariusz Krzowski, Henryk Wieniawski Lublin Philharmonic, said the timing of any airport expansion and build a new 5,000 square meter plaza would depend on the gateway’s initial and underground car park. ■ 37 2012 November Chamber of Commerce News www.bizpoland.pl

United States Investments in such sectors as mining, competition in the Office Development energy, logistics and distribution as well category. Senator is the latest Ghelamco Stephen Mull sworn in as the as information technology show that Poland project completed in Warsaw. U.S. Ambassador to Poland on 24 Australian companies are taking advan- The European Property Awards 2012 October tage of Poland’s stable investment climate is part of the prestigious International “In the 23 years since it regained indepen- and unique location in Europe. Australian Property Awards contest, which distin- dence, Poland has proven itself as an un- companies are also active in the field of guishes most spectacular real estate proj- shakable ally of the United States, standing intelligent transportation systems, in the ects. The jury is composed of 60 inter- shoulder to shoulder with us on the front automotive, medical, educational mar- national specialists. Awards for Senator lines from Iraq to Afghanistan, shining the ket as well as service and innovation sec- were personally accepted by Ghelamco’s light of democracy on those dark corners of tors. Polish companies are present on the representatives: Jeroen van der Toolen, the world that have not yet won their free- Australian market in the mining sector. Managing Director CEE, and Jarosław dom, and volunteering to be among the The seminar focused on bilateral economic Zagórski, Commercial and Business first in helping the NATO alliance defend cooperation, investment, trade coopera- Development Director. against the threat of ballistic missiles,” tion and support of Polish companies in- “Senator was a big challenge for our com- Mull said at his swearing-in ceremony. terested in investing in Australia and ex- pany. The implementation of the build- porting to the country. ing took 6 years of hard work and strong commitment. Now that the building has Holland been distinguished by international real estate specialists as the best European of- Enkev Polska among best Polish fice project we feel particularly honored.,” employers Jeroen van der Toolen said. Enkev Polska has been awarded in the The contest’s final will take place in Best Employers Study 2012 in Poland. The December 2012, when the winning projects competition is part of the Best Employers from all over the world will compete with Program (BEP) which is conducted by each other. Senator will face projects form Aon Hewitt in association with strate- Asia, Africa, the Americas and the Arab gic partner Harvard Business Review region. Mull began his career in the Foreign Poland. Enkev Polska took the third place Service in 1982 and is currently a Career in the category small and medium sized Business Lease Poland and KBC Minister. He has served in the Bahamas, busineses. Autolease Polska merger ﬁ nalized Poland and South Africa and was the U.S. “Gaining the title proves the high level On August 1 Business Lease finalized its ambassador to Lithuania from 2003 to of involvement of our staff. We put people merger with KBC Autolease Polska. With 2006. in the first place, both our employees as a total contract portfolio of 6,100 cars, the “Steve was always the first to spring into well as the clients that use our products. new company is now the seventh largest in action, standing up task forces, managing Therefore we are very satisfied to have won Poland in terms of market share. rapid response personnel,” Secretary of this title”, says Czesław Grochulski, man- State Hillary Rodham Clinton said before aging director of Enkev Polska. Mull was sworn-in, according to a tran- script of the speech. “Whether it was after Senator offi ce building the best of- the earthquake in Haiti, the terrible nat- ﬁ ce development in Europe The final stages of this period saw the ural and nuclear crisis in Japan, or, most Polish office building Senator won in a glob- KBC Autolease inventory being moved to recently, the awful assault on our post in al, prestigious European Property Awards the Business Lease site, the office space Benghazi and other diplomatic posts that were threatened, we never doubted we’d get the best response, the most professional response because of Steve’s leadership and hard work.” Australia Polish - Australian business seminar In September, a Polish-Australian Economic seminar was organized by the Australian Trade Commission (Austrade) and the Australian Embassy in Poland. Trade between Australia and Poland is not significant (about 270 million Australian dollars) and focuses mainly on the rapid growth of imports of high-quality Australian wine to Poland. However the growing number of Australian invest- 38 ment in Poland should be considered. Senator offi ce building the best offi ce development in Europe November 2012 www.bizpoland.pl Chamber of Commerce News being redesigned and data being convert- ed. Business Lease Group has appointed Richard Heijnsbroek as Managing Director of Business Lease Poland. Richard (41) has moved to Poland from Slovakia where he was responsible for Business Lease Slovakia. Over the past six years, his success developing the company there has seen it secure a sound market position and brand name, and it is now the third largest in Slovakia in terms of market share. Atrium Signs Euro RTV AGV at Lublin Shopping Centre The Amsterdam-based Atrium European Real Estate Limited, announced that it has secured a new pre-let at its 75,000 sqm Atrium Felicity shopping centre development in Lublin. As a result of a 1,454 sqm pre-let to leading Polish home appliances and consumer electronics retailer, EURO Polish-German Chamber of Industry and Commerce (AHK Poland) participate in Matchmaking for Polish compa- RTV AGV, Atrium Felicity is 73% pre-let, nies from the IT industry and metal processing with over a year to go before the centre’s expected opening in late 2013. This deal follows shortly after a successful corner- company. The new brand reflects the cre- Speed Business Meeting stone ceremony last week, to officially cel- ation of a fully integrated, global company The next meeting in the series Speed ebrate the start of construction, a 12,500 with a unique platform. In creating the new Business Meeting took place on 4th October sqm pre-let to Leroy Merlin in September brand, the company has retained the DTZ in Wrocław. The idea of a Speed Business and the pre-sale of a 19,700 sqm hypermar- name acknowledging the brand equity of Meeting is to establish direct business con- ket at the site to a major international food DTZ, an iconic brand with a legacy extend- tacts with a large group of people by having retailer in June. Atrium has also secured ing back to 1784, and capitalizing on the several one-to-one conversations within pre-lets with many other strong retail broad market recognition of the special- brands including H&M, Reserved, Mohito, ist capabilities of DTZ. By combining the House, and Intersport, as well as Zara, DTZ name with UGL’s corporate identity, Zara Home, Bershka, Stradivarius, Pull & the new brand captures the endorsement Bear, Oysho and Massimo Dutti from the of UGL’s financial strength and reflects the Inditex Group. company’s leading expertise in integrated facilities management. Kochański Zięba Rapala & Partners represents Newsweek journalist Germany Kochański Zięba Rapala & Partners is representing the Newsweek journalist, Cezary Matchmaking for Polish companies Łazarewicz in a case against Stowarzyszenie from the IT industry and metal Dziennikarzy Polskich (Association of processing Polish Journalists). Newsweek’s jour- Polish-German Chamber of Industry nalist Mr. Cezary Łazarewicz is suing and Commerce (AHK Poland), Trade and the Association of Polish Journalists for Investment Promotion Section of the nominating him the “Hyena of the Year” Polish Embassy in Berlin and the Chamber for unflattering articles about the father of Commerce Regensburg (IHK) invite this networking model. The next part of of Lech Kaczyński (former President of Polish companies from the IT industry and the event, a cocktail, provides the opportu- The Republic of Poland) and Jaroslaw metal processing to participate in the co- nity to continue previously started conver- Kaczyński. The Newsweek journalist operative exchange with Bavarian compa- sations. The meetings are popular among demands that the Association of Polish nies from the region of Regensburg which member companies and plans are that the Journalists publish an apology on its web- will take place on November 26, 2012 in next event in Wrocław will become a per- site, as well as in reputable, and pay PLN 20 IHK Regensburg. manent fixture in the calendar. 000 to the benefit of the Home Hospice of the Marian Fathers (Hospicjum Domowe Switzerland International Business Meeting Zgromadzenia Księży Marianów). The event took place on 18th October at Polish-Swiss Chamber of Commerce the Polish National Film, Television and New corporate identity for DTZ cooperates with Belgians, French and Theatre School in Łódź. During the meet- DTZ and UGL Services are now united un- Scandivanian Chamber in the following a panel discussion on the development der a single global brand — DTZ, a UGL ing two events. of Łódź was held, in which the President 39 2012 November Chamber of Commerce News www.bizpoland.pl

common energy policy and energy proj- Uszok and Vice President of the Katowice ects, investments and trade, with empha- Special Economic Zone (KSEZ), Mr Andrzej sis on the role and place of Poland and Pasek. Program of the visit also included a Czech Republic in the economic develop- meeting with Belgian investors in the Belgian ment of Central Europe - as well as the Chamber of Commerce, as well as presenta- promotion of both countries and regions tions of investment areas in the KSEZ. in foreign markets. The Forum was orga- The journalists represented the lead- nized by the PTWP Group, the organizer of ing Belgian economic media: “L’Echo”, the the European Economic Congress, togeth- Flemish newspaper “De Morgen”, RTBF er with the Embassy of the Czech Republic radio, weekly magazine “Knack” and the and the Polish Ministry of Economy in co- newspapers published in French “La Libre of Łódź Mrs Hanna Zdanowska, city busi- operation with the Polish Information and Belgique” et “Derniere Heure”. ness representatives and international in- Foreign Investment Agency. Study tours organized by PAIiIZ are di- vestors took part. The discussion was fol- rected primarily to foreign journalists and lowed by a networking event. Japan are designed to promote Poland among the foreign public. Polish-Swiss economic cooperation Japanese investors assess Polish President of Poland Bronislaw Komorowski investment climate GreenWings under the wing of CFE visited Zurich in October for the economic I n l at e O c t ob e r, PA I Z he l d a s e m i n a r o n ‘ Ho w Polska forum “Polish Investment Market” . The to effectively develop Polish-Japanese eco- The construction of GreenWings. a mod- aim of the meeting was to present the nomic relations “, with a special emphasis ern Class A office space, started in early Polish investment potential, as well as es- on the appeal of Poland’s special economic October, and is located on ul. 17 Stycznia, tablish closer economic relations between close to Warsaw’s Chopin airport. The gen- the Poland and Switzerland. Swiss com- eral contractor of the project is Belgian panies employ in Poland approximately company CFE Polska. 35,000 people working in particular in the pharmaceutical and chemical sector, Belgian Days machinery and precision instruments. In 6-24 November 2012 2011, exports from Switzerland amount- With events spread across three cities ed to CHF 2 billion, an increase of 4.6%. (Poznan, Gdansk, and Warsaw), the an- Imporst from Poland totaled CHF 1.4 bil- nual Belgian Days, under the Patronage of lion, an increase of 6.5%. Poland is the most the Ambassador of Belgium His Excellency important market for Swiss direct invest- zones to Japanese manufacturers. The Raoul Delcorde, have a packed schedule of ment in Central Europe, with great poten- Embassy of Japan in Poland, JETRO, and business, social and cultural events. This tial in the field of devices, medical technol- the Shokokai Employers’ Association pro- year’s edition will be exceptional – due to ogy and services. duced a report outlining the strengths and the celebration of 20 years of the Belgian The conference was organized by the weaknesses of doing business in Poland, Business Chamber. The events being or- Swiss Business Federation - Economiesuisse from the perspective of the Japanese. ganised for the Belgian Days 2012 will be and the Polish Embassy in Switzerland. The At the end of 2010, according to the NBP, focused, more than in previous years, on a Polish delegation included Undersecretary the cumulative value of Japanese FDI in business dimension. They include: a Sharing of State in the Ministry of Economy, Mrs Poland was over $ 1.5 billion. “Currently, Experiences conference, a CEO Forum and a Ilona Antoniszyk-Click, Undersecretary of there are about 300 active Japanese inves- Gala Dinner. During the Belgian Days, two State in the Ministry of the Treasury, Mr tors in Poland, of which 100 are manufac- important awards will be presented: the Rafał Baniak, PAIiIZ’s President Sławomir turing companies, which employ about Belgian Business Chamber Award (for the Majman and Chairman of Warsaw Stock 40,000 people”, said Makoto Yamanaka, fourth time) and the Best Belgian Exporter Exchange Ludwik Sobolewski. the Japanese Ambassador to Poland. Award (for the first time). Cultural events The report shows that Japanese inves- are also provided, among them a Belgian Czech Republic tors appreciate the scale of the Polish Evening - Mussels & Fries and an Urban market, geographical location (proxim- Game around the streets of Warsaw. Poland - Czech Republic Economic ity to both Western markets and Eastern Forum Europe), labor force, and political and eco- Belgian Business Mixer in Warsaw Warsaw’s Hotel InterContinetial hosted nomic stability – as well as the investment 13 December 2012 the Poland - Czech Republic Economic incentives that support investment in the Belgian Business Chamber has the pleasure Forum in mid-October. It was the most Special Economic Zones. to invite you to the Belgian Business Mixer, important Polish - Czech economic meet- to be held at the State Ethnographical ing in recent years. The event was opened Belgium Museum in Warsaw. by the presidents of both countries - Vaclav Klaus and Bronisław Komorowski. Belgian media experience Poland United Kingdom The aim of the meeting was to discuss During the visit, the journalists met the prospects for the development of con- Undersecretary of State in the Ministry Export Roadshow Seminars, the ventional energy and nuclear projects. of Economy, Mrs Ilona Antoniszyn-Click, British Polish Chamber of Commerce Instability of the EU market was also dis- President of PAIiIZ, Mr Sławomir Majman, (BPCC), Lewiatan along with experts 40 cussed. Among the forum’s topics were President of the City of Katowice, Mr Piotr from HSBC, Raben Group and Accace November 2012 www.bizpoland.pl Chamber of Commerce News organized export seminars for medium and large Polish exporters. A series of 8 seminars “Open up the market and expand the company” aims to show entrepreneurs the benefits of diversifying markets. The event has been covered under the honorary patronage of the Polish Information and Foreign Investment Agency. The events are aimed at senior decision makers in medium- and larger- sized companies who are responsible for export strategy. A total of 8 meetings were scheduled. The first was held in Lublin on 2nd of October. The next meeting took place in the following towns: Błonie near Warsaw (October 9), Gądki near Poznań (October 16), Wrocław (October 23). Ireland Th e Polish-Portuguese Chamber of Commerce (PPCC) annually organizes a Welcome Dinner for the Portuguese Irish footballers win championship ERASMUS students that come to Poland for the internship The Irish Chamber football team, against their observations with the Ambassador of October. With over 50 people in atten- all odds and pre-tournament predictions, Portugal. This edition of the Round Table dance, the annual event sponsored by law have become the champions of the IGCC Talks with the Ambassador took place on the firm MillerCanfield was a success in bring- 11th October at Westin Hotel in Warsaw. The ing together people and businesses. The participants had the opportunity to have an evening was opened up by Paul Fogo, interesting discussion about the current eco- Senior Attorney of MillerCanfield fol- nomic situation in Portugal and Poland, to lowed by welcome speeches from Tomasz analyse the data of the trade balance and for- Lisiecki, President of PCCC and of TriGranit eign direct investment and current business Polska. Greetings on behalf of the guests opportunities available in both Portuguese were given by Greg Houlahan, Canadian and Polish markets. Embassy, Carsten Nilsen, Chairman of the Scandinavian Chamber and Jarosław ERASMUS Students Łach, Vice President of the Swiss Chamber. The Polish-Portuguese Chamber of Com- merce (PPCC) annually organizes a Wel- Hard-coal ﬁ red power plant come Dinner for the Portuguese ERAS- Enea Wytwarzanie SA and a consortium MUS students that come to Poland for the of two firms, Hitachi Power Europe GmbH internship. Each year PPCC gathers around and Polimex-Mostostal, signed an agree- 100 students studying in different cities ment for the construction of a new hard- across Poland that come to Warsaw for this coal fired power unit. The new unit in special event, during which they have the Kozienice is to up the plant’s power gen- 2012 football tournament. Having had opportunity to meet with the PPCC Man- eration output by one third. It will run at three draws in the group stages, Ireland agement Board, Ambassador of Portugal supercritical steam parameters delivering went into the knock out stages knowing in Warsaw and with representatives of the gross power of 1075 MW and the net that an improvement was required, and PPCC Member companies. Thanks to this efficiency of 45.6 percent. Its construction that is what was delivered. ICC beat Italy event, the students can make friends with cost will amount to about PLN 6.4 billion in the quarter finals, Germany 2 in the each other, get acquainted with the activ- gross and completion is scheduled for the semifinals, and the previously unbeaten ity of the Polish-Portuguese Chamber of second half of 2017. Bireta s.c., a techni- Germany 1 in a tense final by 2 goals to 1. Commerce and spend an interesting eve- cal translation provider, will provide full This event took place in the Sinus Club in ning with Portuguese food and wine. The translation support for this project. Bireta Wilanow. Marcin Zaporski, ICC Captain, re- event will take place on the 7th December specializes in projects from such sectors ceived the winning trophy from Ken Morgan, in Warsaw. as power, oil & gas and environmental president of IGCC. Krzysztof Domogala was protection. awarded top player of the tournament. Canada: Trinity expands shelf company Portugal PCCC Fall Business Mixer with services with new Joint-Stock Norwegians and Swiss Companies Round Table Talks The PCCC hosted a lively business mixer Trinity is adding Joint-Stock Companies to Twice a year, the Polish – Portuguese that included members of the Norwegian its growing portfolio of shelf company servic- Chamber of Commerce provides a special op- Business Forum and the Polish Swiss es. The new service will complement its ex- portunity for its Members to meet and share Chamber of Commerce on Thursday, 25th isting stock of Limited Liability Companies, 41 2012 November Chamber of Commerce News www.bizpoland.pl

Limited Partnerships and Limited Joint- Stock Partnerships. In Poland, Joint-Stock Companies are an interesting alternative for investors planning to conduct a large scale business activity, offering a lot of possibilities with regards to raising capital and reducing operational risk. India

A business delegation led by B.B. Swain, vice chairman of the Gujarat Industrial Development Corporation (GIDC) was hosted by IPCCI in September in Warsaw. During its four-day stay, the delegation interacted with the Polish Chamber of Commerce (KIG), and signed a Memorandum of Understanding with the Indo-Polish Chamber of Commerce Spain as the European and National Funds for and Industry (IPCCI) . As per the MOU, IPCCI Renewable Energy Sources in Poland, will be the sole representative to promote Polish–Spanish Forum of Renewable Changes of the Renewable Energy Policy in Gujarat in Poland. Energy Poland, Development of Renewable Energy The Vibrant Gujarat Summit has become The Polish-Spanish Chamber of Commerce Sources in Spain and investing in the most an example of the visionary approach of the together with the Renewable Energy attractive Polish regions. State Government to investment promo- Association celebrated in Warsaw the 6th tion and advancement of economic and so- edition of the Polish–Spanish Forum of Tarde de Sabores cial development for many states. The event Renewable Energy. The event was attended This event - Tarde de Sabores – Evening of provides enormous prospects to the State by over one hundred people from both coun- Tastes -.takes place every last Thursday of to display its strengths, progressive stand, tries: by delegates of high authority, the the month. The Polish-Spanish Chamber initiatives taken to improve governance, in- Deputy Minister of Economy of Poland, Mr. of Commerce invites you to an encounter vestor friendly climate and art and culture of Mieczyslaw Kasprzak, the Ambassador of with the Polish-Spanish group with a culi- Gujarat. Spain in Poland, Agustín Núñez, representa- nary theme. The Vibrant Gujarat 2013 (11-13 January, tives from the Ministry of Foreign Affairs and 2013) Summit should be transformational the Ministry of Agriculture, representatives “How to eff ectively exercise one’s and revolutionary – both in its coverage and of Polish cities, as well as companies from the rights in a dispute with the State.” scale. It will provide a platform for various renewable energy sector and experts. The Polish-Spanish Chamber of Commerce states of India and other countries to coop- The main aim of the conference was in cooperation with the member com- erate and explore attractive business oppor- the discussion about the development of pany Kochański Zięba Rapala & Partners tunities. Interested organizations should sources of energy, the presentation of ac- law firm are pleased to invite you to par- contact Mrs. Joanna Mazurkiewicz , Director tive attitude of the pro-investment regions ticipate in a business breakfast dedicated IPCCI at [email protected]. and the profits which are the effect of the to international investment arbitra- IPCCI also cooperated with Roadshow investment in the renewable energy. It was tion issues. The seminar will be held on Poland led by Mrs.Eva Aboo and organized the place to exchange experiences and it 20th November 2012 in Kochański Zięba a panel about the BPO Industry in Poland, provided the opportunities to tighten con- Rapala & Partners’s offices in Warsaw. the role of Indian IT companies based in tacts and to develop cooperation between The purpose of the meeting will be to Poland and 5-year perspectives during the VII Polish and Spanish companies and regions. explain the methods and possibilities of Outsourcing Forum held in Warsaw in late During the conference, the experts claiming compensation from the state, cur- September. of renewable energy raised themes such rently favored by foreign investors, namely the initiation of international investment arbitration on the basis of arbitration offers included in international investment agreements. Speakers will present situa- tions, supported by practical examples, in which an investor may exercise his rights in front of the international arbitrational tri- bunal. They will focus on the possibilities of claiming compensation by investors in the event of violation by the state of concluded agreements. The PHIG invites representatives of companies investing in Poland or in a country other than their country of origin. Participation in the seminar is free, 42 detailed information: www.phig.pl. ■ November 2012 www.bizpoland.pl Events Polish entrepreneurs get together in Scotland again

For the fourth time this year, the BPCC, together with Business support guru, Dr Arshi Ilyas, Picklemedia, has organised a business meeting for Polish who has mentored around 100 start-ups, talked about the key factors that deter- entrepreneurs active in Scotland. The Chamber is actively mine the success of a entrepreneur, and working with Polish entrepreneurs north of the border, and explained how Business Gateway can help is developing strong links with Scottish institutions working Polish entrepreneurs that are growing their firms in Scotland. with business. Bartek Kowalczyk of Picklemedia, who organises the BPCC business seminar mix- ers, said “It is important that Polish entre- Marketing in its broadest sense was the is to be registered online as a supplier of preneurs in Scotland learn how to network theme of the evening's meeting, held in goods and products,” she said, “which is a effectively. There is still a conviction, car- the elegant surroundings of Glasgow's 29 simple procedure”. ried over from the 'old country' that there's Private Members Club. Practical advice Over 50 Polish entrepreneurs repre- something shady about business people about selling to Scottish businesses and to senting a wide range of business sectors getting together.” David Atkinson, who Scottish public sector was offered by expe- from real estate and construction, to runs a design company, gave some handy rienced practitioners. translation and on-line advertising, took tips about selling yourself. A key message Public procurement – more transparent, part in an event which had as its aim the was the importance of one's business card, open and predictable than it is in Poland presentation of business information and the importance of price, and winning the – is an area that should be of interest to networking. trust of clients and customers. Polish businesses in Scotland. The Scottish Case studies from successful SMEs – The formal presentations were followed public sector is spending money constantly one set up by Poles, Eltech, an electrical by networking, which began with every on goods and services and there's no rea- contractor which has carried out re-wir- participant introducing himself or herself son why a firm started by a Pole in Scotland ing a Scottish castle, and Cobb Bakeries, to everyone else. The networking part of should not be able to supply them at a a company from Loch Ness that has the evening was popular with participants; good price. Pauline Wallace from Glasgow grown from being a hotelier to supply- during the course of the evening, many and and Audrey Cameron from law firm ing tens of thousands of cup cakes for new contacts were made – a real estate Anderson Strathern explained, with exem- large sporting events. Willie Cameron agent, having bought a new house with plary clarity, what a business needs to do if inspired participants with his story of her husband, made useful introductions to it wants to successfully sell to the Scottish how Cobb Bakeries managed to deliver kitchen and electrical contractors. government or local authorities. “It's so 34,000 cup cakes to 34 sites around the The event was sponsored by Bank easy for an SME to do business with the UK in time for the opening day of the Santander, MoneyGram, Eltech Electrical public sector in Scotland – the key thing London Olympics. Systems and eleMedia. ■

43 2012 November Events www.bizpoland.pl Foundation for Corporate Social Responsibility CEO Breakfast

The FCSR held its annual CEO Breakfast, bringing in more than 50 CEOs who support the Foundation. Held at the Hotel Intercontinental, Bill Chasey took the occasion to welcome the incoming General Manager of the hotel, Marten Schoenrock, who has replaced Christian Henkemeir. The FCSR will hold its annual Dinner Dance on 21 January, 2013. ■

Food Producers Congress – Opole

The second annual Food Forum was held in late October in Opole, with a large range of participants, including food producers and exporters, suppliers to the industry, food scientists, and officials from the local government, including Ryszard Zembaczyński, president of the city of Opole (pictured here), and ice- cream magnate Zbigniew Grycan (pictured here). ■

44 November 2012 www.bizpoland.pl Events Fashion Week Łódź

Burda International, the publisher behind Elle, used the occasion of Lodz Fashion Week to announce its puchase of a 25% stake in Polish ecommerce startup Showroom.

Polish online fashion marketplace Showroom said there is no official word on how the strategic investment from Burda, which includes well-known international brands Elle, InStyle and Prestige within its 299 magazine-strong stable, will be used. However, the news does come at a time when Showroom — founded earlier this year — is beginning to expand its presence into new European markets beyond its na- tive Poland, so it is logical to presume that Burda will help with this. spread word of the site by ‘liking’ items on will help build awareness of Polish fashion Showroom is, as the name suggests, its page on the social network. designers overseas. an online platform for independent fash- Commenting on its investment, Burda “We believe that Polish fashion has a ion designers to showcase and sell their International CEO Fabrizio D’Angelo said great potential. Our designers have a lot work. Designers and brands upload pho- “Showroom is a great concept with fasci- to offer and we want to make their voice tos and post descriptions of the items to nating development potential for this type heard outside of Poland. Thanks to Burda the site themselves, and customers buy of platform in fashion segment. We reach International investment and their great direct from them too. Currently the site lots of target groups interested in fashion experience we would like to open new door includes items from more than 500 Polish [and this deal] makes an excellent founda- to our designers, especially abroad,” they independent designers, and more than tion for a strategic partnership between said. 100 fashion brands. The Polish startup is Showroom and Burda International.” Showroom landed undisclosed seed placing great emphasis on Facebook and it Michal Juda and Jasiek Stasz, funding from Poland-based HardGamma offers discounts to customers which help Showroom’s co-founders said that the deal Ventures back in March. ■ 45 2012 November Events www.bizpoland.pl BPCC Annual Ball

The British Chamber of Commerce held tasting run by The Whisky Society, were its Annual Ball at the Sheraton Hotel, offered colourful cocktails by Chopin with many additional attractions, thanks vodka and British beer from Legends Bar. to support from the evening’s main Sklepcygara.pl provided cigars for guests, sponsor - HSBC Bank - and of course the International Diamond Corporation pre- BPCC’s 20th Anniversary partner com- sented their beautiful jewelry in glass panies (AstraZeneca, Atkins, BP, BSI and show cases and additionally a Jaguar XKR Provident). In the foyer guests enjoyed stood in the foyer. the thrill of the casino, tasted the delights His Majesty’s Ambassador Robin of some exclusive whiskies in a whisky Barnett opened the evening with a warm

welcome and a very hopeful speech regarding Poland’s future as an emerging European market, whilst Antoni Reczek, the BPCC Chairman and Joe Tunney, BPCC CEO, thanked all companies involved in creating the event and encouraged the 250 guests to have a wonderful night. The Charity Auction and Lottery jointly raised 21,320zł and that money is being donated 46 to the Sue Ryder Foundation. ■ November 2012 www.bizpoland.pl Events Berlin Aviation Fair

In 2012, Poland was the partner country of Custer, Municipality of Krosno, Rzeszów the International Aviation Exhibition in University of Technology, Office of the Berlin. During this year’s edition the most Marshal of Podkarpackie Voivodeship, important accomplishments of Polish Municipality of Kalisz, Aviation Valley, aviation and aerospace industry were Office of the Marshal of Lubuskie presented. Fourteen Polish companies Voivodeship, Margański & Mysłowski and institutions had stands, including: Aircraft Company, Aviation Artur Trendak, held. The aviation acrobatic group Grupa the Institute of Aviation, Space Research Allstar PZL Lider, J&S Aero Design. Akrobatyczna Żelazny, which invited by Centre PAS, the AIR Force Institute of Within Polish national stand the confer- the Ministry of Economy, dazzled the on- Technology, Wielkopolska Aerospace ence on the aviation sector in Poland was lookers. ■ Warsaw Olympic Nights Gala

The third Gala “Warsaw Olympic Nights”, LONDON 2012. Honorary Patron of the organized by the Foundation Feliks event was from the Mayor of London, the Stamm, was held in October in Hala Ministry of Sport and Tourism, the Polish Arena Ursynów. Olympic Committee and the Business During the evening trophies were Centre Club. ■ awarded for all “Ambassadors of Sport” Polish Olympic medalists from the London Olympics 2012. An auction of autographed sports items raised money for the charity “Young Sports Talent”. Well-known sportsmen attended, including Apollonius Tajner, Mariusz Czerkawski, Matthew Ligocki, Tomasz Majewski, Sylvia Bogacka, Sophia Klepacka, Damian Janikowski, Bartlomiej Bonk, Fularczyk Magda and Marta Makowska paraolimpijczycy Warsaw, Gregory Pluta, Dariusz Pender, Małgorzata Jankowska, Raphael Korce and many other great heroes of this year’s Olympic Games and Paralympic Games

Macaroni Tomato Warszawa opens mens clothing shop

Tatiana Hrechorowicz and Wojtek Szarski recently opened their upscale, Italian mens clothing shop in Warsaw’s swanky Powisle district. Dubbed Macaroni Tomato, the shop aims to fill a nice in elegant mens clothing, including footwear. ■

47 2012 November Poland Outsourcing Awards 7 February 2013 Hotel Intercontinental, Warsaw

A Black-Tie Gala Awards and Forum Recognizing Excellence and Leadership in Poland’s BPO/Outsourcing/Shared Services Sectors in 2012

For more information about reservations, jury membership, or sponsorship, please contact Thom Barnhardt ([email protected]; 508-143-963), or Wiktor Glinski ([email protected]; 694-492-067)

www.PolandOutsourcingAwards.pl

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