Polish Business Survey
Foreign investments likely to fall
In 2000 direct investments into Poland will come to more than USD10bn. It will be hard to match this figure this year. One of the reasons is the lack of regulations governing foreign investments in this country.
Poland is still the country applying for EU membership with the highest amount of foreign investments. Three years ago they hit USD8.3bn, for 2000 it could be around USD10bn — that is as much as in 1999. However this year could see the end of the increases due to a drop in GDP and the end of the phase of major privatisations. There is also less incentive for foreign companies to invest in Poland and a good example of this is the elimination of the tax breaks in the special economic zones.
Adam Pawłowicz, heading the state institute for foreign investments PAIZ says that investments will be lost if something does not take the place of the special economic zones. He further claims that several large projects are on hold because of a lack of suitable laws.
International institutions including the World Bank believe that there will be less investment in central Europe in this decade as compared to the previous ten years. It is believed that investors may look more positively on Russia and Asia.
Akwawit is not going to market
The government’s plan of privatising Leszno based Akwawit through a stock market entry may not come off.
Privatisation advisors BAA believe that a better solution would be to find an investor from the alcohol, leisure or chemical sectors.
Grażyna Magdziak, heading the privatisation advisors BAA, believes that the stock market should only be used as a last resort and that far more could be achieved from an investor.
However she admits that it will not be easy to find a company willing to invest in Akwawit.
The company is largely known for its alcohol products. However Akwawit also has a large swimming pool and hotel with rehabilitation equipment.
It also produces glues and has a share in local television and press.
National grid to invest
The Polish national grid, PSE, has announced that it intends to spend around PLN400m in upgrading its transmission networks.
The company has also reaffirmed its interest in maintaining its hand in the telecommunications sector despite last year’s sale of its stake inTelefonia Lokalna to copper miners KGHM.
PSE has stated that it does not intend to sell its stake in Polkomtel, the operator of the Plus GSM network. It also restated its interest in keeping its stake in Tel-Energo and NOM although its share of both companies will drop well below fifty percent once a strategic investor is brought in.
The American Citibank consortium, which includes a specialised investment fund and telecommunications company will be the investor in those companies.
PSE intends to consolidate its group although the exact form has not been decided yet. However PKN, which has a 35 percent stake in NOM, will remain in position.
Small breweries get a break
Small breweries producing less than 20m litres of beer will be able to reclaim tax benefits that they lost last year. However this year is not looking good for them with at least two excise hikes of ten and eight percent already planned.
Fishermen hoping for EU aid
The EU is prepared to finance a reduction of the Polish fishing fleet by up to 75 percent. The only problem is that Poland must be a member of the EU. However few in the fishing industry believe that by the time membership comes around there will be much left of the debt ridden, inefficient, ancient Polish fishing industry.
Decision expected in call dispute
The telephones watchdog URT will decide in the next couple of weeks whether or not it accepts the arguments of former monopoly Telekomunikacja Polska in its dispute with Netia over long distance calls.
Arbitration in this dispute was necessary as the two sides could not come to an agreement despite many months of negotiations.
Netia wants second look at UMTS
Telephone operator Netia has not accepted the decision of communications minister Tomasz Szyszko which cancelled the UMTS tender and gave licences to the three GSM operators.
On 28 December 2000 Netia requested that the ministry have a second look at the question. If the minister accepts Netia's arguments, the company is requesting that it's bid be put forward in a second wave of licencing in 2002. If this is not possible, the company is requesting that a licence be granted on terms similar to those given to the GSM operators Centertel, Polkomtel and PTC.