Dear Readers,

In today’s Newsletter we inform about an exhibition promoting Polish industrial design in Denmark. We also present data on the improvement in the Polish export performance and the increase in DFI inflow to Poland after the EU entry. Moreover, information on the Polish engineers’ achievement in designing elements for Boeing 747-8 and a substantial increase in business visits to Poland. You can also read about a new Polish investment by IKEA in Lublin and a project of the Construction Works and Services Concessions Act which is to contribute to more efficient realisation of projects within the Public-Private Partnership framework. At the end of the edition we bring news on the development of solar panel production in Poland.

Pleasant reading!

PAIiIZ’s editorial team

Go to top... 

NEWS

The exhibition will be opened to visitors between Aug. 4-13, 2008 in the Frederiksberg Hovedbiblioteket in Copenhagen/ Frederiksberg, Falkoner Plads 3. The official opening of the exhibition by Dr Paweł Wojciechowski, PAIiIZ President, is scheduled to take place on Aug.4^th.

The exhibition presents high quality products with extraordinary patterns and is mainly comprised of interior decorative accessories, artistic and functional glass creations, porcelain, jewelry, bicycles and toys. The purpose of the event is to attract attention to characteristic features of the Polish functional art and to encourage Danish customers to reach for Polish goods. Visitors will be presented with an illustrated catalogue containing information on the presented objects and their authors. (PAIiIZ)

Go to top... 

The motion concerning construction works and services concessions was proposed by the government in order to foster the financing model for public projects’ realization bringing into play private funds. - “Gazeta Prawna” informs. The model is widely applied across Europe, however, in Poland the structure of the Act on Public-Private Partnership (PPP) proves to be too inflexible for projects within the PPP model to be applied. In the face of the coming EURO 2012, the government wants to change the attitude towards the model and make it easily applicable as an efficient model for road and stadium construction projects. According to the new project, the state will be in a position to issue concessions for a construction and temporary management of a given investment to private entrepreneurs. “The Ministry of Infrastructure put forward a set of solutions and ideas aimed at streamlining of the procedures connected with public investment” - Andrzej Panasiuk, Undersecretary of State in the Ministry of Infrastructure told “Gazeta Prawna”. The project establishes a link between the kind and quality of required analyses and the size and type of investment as according to the Undersecretary Panansiuk, not every project requires a very detailed analysis. It is left to the public partner to decide what kind of preparations constitute the prerequisite for any investment to be realised.

All new ideas and flexible solutions introduced in the project aim at beefing up the future co-ooperation between the public and private sectors. (Gazeta Prawna)

Go to top... 

Every year Poland exports furniture worth 4.4 million EUR to European markets. According to a report, published by the Centre for Industrial Studies (CSIL) in Milan, Poland classifies among the ten biggest furniture manufactures in the world, with around 3% share of the world furniture production estimated at 307 billion USD. As for the European markets, Poland ranks among the top 3 furniture exporters, with the export value reaching 4.4 Million EUR. The overall value of the Polish furniture export accounts for 7.6 million EUR and increased by 22% when compared to last year.

According to the authors of the report, the success of Polish furniture production and exportation is a result of investments in new production plants planed and build with export in mind. (Meble Plus)

Go to top... 

INVESTMENTS IN POLAND

Entrance to IKEA store

In three years time an IKEA store and a commercial and entertainment mall is to be constructed in Lublin. The investment cost of the commercial facility is estimated at 165 million EUR. Moreover, a makeover of adjacent area and construction of new streets are going to be co-financed by the investor.

Lublin may expect an IKEA store together with a family commercial complex to be built near Al. Spóldzielczości by 2011. In June this year IKEA bought lots from several dozen land owners for the planed store which is to occupy an area of around 30 thousand square metres. While the IKEA store is estimated to cost 45 million EUR, the family commercial complex, planed to be constructed nearby, will cost the company from IKEA group around 120 million EUR and take up 76 thousand square metres. The complex is destined to host 150 shops and service points of well-know Polish and foreign brands, a hypermarket and a building-materials store included. “The first preparatory phase connected with the new facility construction is about to start soon. We hope that we will be able to attend first customers in Lublin in three years time” - Karolina Horoszczak, IKEA’s spokesperson, told the PAIiIZ Newsletter. The investment will certainly contribute to the development of infrastructure in the northern part of the city. “In every city where IKEA invests, we do contribute to the costs of the rebuilding of a setting and its infrastructure i.e to a street or a flyover repair or refurbishment.” - Karolina Horoszczak confirms. In Lublin IKEA will take part in the rebuilding process of a nearby street and in construction of two-level crossroads in the vicinity of the complex. An estimated number of 2500 people may find employment in the commercial centre. (IKEA)

Go to top... 

Production of engine elements for Boeing 747-8

Rzeczpospolita informs that Avio is now taking steps to start a regular production of the modules for the engines in the company’s plant in Bielsko Biała. This year the company is about to invest almost 100 million PLN in constructing a new technological production line. Moreover, an additional 70 employees are planned to be taken in, among others, engineers, mechanics and technologists and the development of R&D centre in Bielsko Biała is on the company’s agenda. Should the regular engine modules’ production set off in 2009, supply orders may yield an income estimated at 50 million PLN a year.

85% of the Italian Avio is owned by a British investment fund CINWEN and an Italian group Finmeccanica. The company is the biggest producer of aviation gears and a sub-supplier of engines and turbine drives for ships and the Ariane 5 rocket in the world. (Rzeczpospolita)

Go to top... 

• Polish export performance exceeds 31%

  According to information published by the National Bank of Poland, the annual Polish export performance exceeded 31% and the value of exported goods in May reached 9.87billion EUR i.e. 12.2% more than in May 2007. The highest increase in the first months of 2008, between January and May, could be noted in the Polish export to Russia, it was by one third higher than a year ago. Transaction balances between Poland an the EU were positive. Poland received 384 million EUR from the EU and paid in 181 million EUR to the EU budget. In May this year also the foreign investment balances resulted positive and reached 1.7 billion EUR. The amount was comprised, among others, of 714 million EUR in form of DFI, 432 million EUR which flew into the equity of Polish companies, 200 million EUR in reinvested income and 82 million EUR in form of credits obtained from direct investors. Only in May this year foreigners invested 514 million EUR net in Polish financial credit instruments (NBP).

• Over 4 million foreigners visit Poland on business every year

  According to a report by the Institute of Tourism, foreigners decide to visit Poland mainly because of business (27%) and recreation (18%). Over 50% of foreign businessmen who visited Poland use to come back here at least two more times a year. Poland attracts mostly Germans, Russians, Belorussians and Ukrainians. The amount of business visits increased by over 300 thousand and the average stay extended to two days in comparison with the last year. (Puls Biznesu, Institute of Tourism ).

• Excellent results of Polish airports

  According to “Puls Biznesu”, during the first 6 months of 2008, Polish airports attended 1,26 mln passengers more than in the same period of the previous year. The total amount of attended passengers accounted for 9.72 mln, which indicates a 15% increase. Forecasts for the second half of the year are even more optimistic.

• The increase by 15% in the entire country and by 8% in Warsaw suggest that the total amount of passengers in 2008 may reach 22 mln. According to Tomasz Dziedzic, analyst form the Institute of Tourism, regional airports depend largely on co-operation with particular air lines, mostly with low cost airlines, which contribute substantially to the increase in the number of passengers. Airports in Katowice (1.1 mln passengers in 2008) and in Poznań (56% passengers more than in the same period of the previous year)may boast about the best results so far. (Puls Biznesu).

• Exchange rates (as of 17.07.2008):

	Buy	Sell
USD	2.0084	2.0490
EUR	3.1888	3.2532

Source: www.nbp.pl

Go to top... 

FROM THE REGIONS

Wrocław builds roads for EURO 2012

The overall investment spending on infrastructure in the city is to reach jointly over 2 billion PLN. All planned investments have already been started, yet advancement of the construction process vary across the installations. Nevertheless, the city council assures that all the planned investments will have been completed by 2012, despite the current differences in works’ progress. In fact, infrastructure projects in Wrocław have been divided into three categories. The categories include firstly, rebuilding of the street adjacent to the stadium-destined lot in Maślice, secondly, construction of the north bypass of the city centre and thirdly, creation of a road which is to connect the airport and the stadium. Apart from the rebuilding of the stadium-adjacent streets, a kind of transport centre is planed to be created in the vicinity of the stadium by 2010. The plans are to create a user-friendly transport hub combining train and fast tramway interchanges which additionally is to be connected with car, bicycle and bus parking lots to be created near the stadium. The north city centre bypass is expected to streamline the transportation system in the area of the Milenijny Bridge and is to be connected with a motorway bypass by means of a special link-road. The third and most expensive investment aims at connecting the airport with the national road No 94 and the Wrocław stadium. (PAP)

Go to top... 

Warsaw to issue bonds

In 2008 Warsaw authorities plan to issue 10-year bonds which may jointly reach the value of 10 billion PLN i.e. around 300 million EUR. Further issues are intended to take place between 2009 and 2012. Means obtained through the bond issuing are to be allocated to local urbaln investments. “The idea behind the bonds issuing is to find a way of a cheaper financial model for the city than credits. We are well aware that the Warsaw initiative will serve as an example for further self-government actions of the kind.” - Arkadiusz Kamiński, from the Warsaw City Hall told the PAIiIZ Newsletter. In fact, the investment plan accepted by the Polsih capital for the years 2008-2012 belongs to one of the most ambitious in the history of the city. A wide range of investments is on the city’s agenda, among others, two bridges, streets’ and the Bielany flyovers’ repairs, Legia stadium construction, Koperink Science Centre and Modern Art Museum, not to mention agreements for the acquisition of new buses and tramways. The value of the long-term investment programme is estimated at 15 billion PLN. The city wants to enter in co-operation with a partnership registered abroad in order to exempt the investors from taxes. Experts are of the opinion that there is a growing interest among Polish self-governments in such a way of obtaining funds for local investments, often used a means required for participation in UE projects. (PAIiIZ)

Go to top... 

ANALYSES AND REPORTS

On analysing the report, Adam Żołnowski, expert from PwC, said that the average value of FDI between 2001-2003 in Poland accounted for 5 million EUR, while after the entry to EU i.e. between the years 2004-2007 FDI value reached 12.1 billion EUR. An increase in domestic demand and fixed assets spending as well as financial subsidies from the EU and foreign investment inflow are among the major effects of the Polish EU membership. According to Żołnowski, Poland became an attractive destination for foreign investors and is now perceived as a low-risk investment market. Undoubtedly, falling unemployment and easy access to studies abroad as well as Schengen Zone accession with all resulting benefits also play an important role in the EU-connected profits for the country. At the same time, Żołnowski emphasised the lower-than-expected development of transport infrastructure and emphasised that EU funds should be put to a better use in this field in the future. (PAP)

Go to top... 

A.T. Kearney published a report on most attractive markets when it comes to investing in properties- “Puls Biznesu” informs. Among the 50 countries that entered the survey, Poland classified on the 9th position. Saturated real estate markets of North America and Western Europe were not included in the ranking. Aleksander Kwiatkowski, A. T. Kearney President in Poland, told „Puls Biznesu” - “If we take into account that in Russia, high odds for good income are eclipsed by high investment risk, Poland results to be the most investment attractive destination in the CEE region.” According to A.T Kearney experts Poland has the best relation between the investment capability and any possible risks. However, in comparison to Western Europe there is still much left to be done to meet the same standards. Certainly preparations for EURO 2012 result to be very beneficial for the country. While Romania classified 18th, the Czech Republic came on the 21st position and Ukraine on the 27th. Among those who top the list there are China, India, Thailand and Taiwan. The ranking focused on 50 countries with the highest annual GDP growth within 2003-2008 and with a total population exceeding 2 million people. (Puls Biznesu)

Go to top... 

DID YOU KNOW...?

In the face of the fast growing interest, solar panels manufacturers are expanding production of these environment-friendly devises and developing distribution systems all over the country. The growth in solar panel interest is to a large extend determined by the rising prices of electricity. “Rzeczpospolita” informs that even despite the fact that the cost of even the simplest installation of a solar collector ranges from 6 to 10 thousand PLN, the investment pays off in the form of saving on electricity spending.

The three biggest manufacturers of solar panels in Poland Watt, Hewalex and Aparel-Ergom, plan to expand production for domestic market by at least 30%. Production destined for export to Western Europe and Estonian and Latvia is also to be maintained. The producers count on orders from institutions, offices and schools which are expected to decide to invest in thermo-modernisation using EU funs. (Rzeczpospolita)

Go to top...