Warsaw: City of Opportunities and Challenges

    President of Warsaw Hanna Gronkiewicz-Waltz, former President of the National Bank of Poland and former member of the board of the European Bank for Reconstruction and Development, addressed the BPCC Business Lunch on 7 March 2007.
    ‘The fact we are meeting here today is evidence that the success of the city matters to you,’ she began. ‘Warsaw is a strong and dynamically developing city and an attractive partner for you.’

    She explained, however, that according to a recent report from Jones Lang La Salle Warsaw has regressed in the ranking of the most attractive locations for business, the reasons for this including delays in urgent investments, slow and complicated decision making within the city administration and the frequent lack of local land use plans, which hinder private investments. ‘My voters had obviously assessed the situation in a similar way and gave me clear tasks,’ she said. Gronkiewicz-Waltz then outlined a number of priorities to speed up the city’s infrastructure investment plans.

    The major municipal investment currently in the pipeline is the Czajka sewage treatment plant. The situation was quite difficult, she explained, as there are EU funds which should be used for the project by 2010, but while in the first tender nobody appeared, in the second the offer was far too expensive. But one of the first achievements of the new President was to get the EU commission to prolong the deadline until 2011.

    Gronkiewicz-Waltz is expecting to receive offers in the tender for the €261 million EU funded Czajka project which will be beneficial to investors and the public.

    Traffic and transport was a major theme of the President’s election manifesto. She explained that key projects regarding public transport are the completion of the first Metro line in two years, and the construction of the second and the third lines; improvement and extension of the tram system; the Northern Bridge with roads and a tram line connecting it with the Tarchomin quarter to relieve traffic from Białołęka and the north; and the traffic node around the planned final station of the first Metro line close to the Warsaw steelworks.

    Gronkiewicz-Waltz also plans to open an alternative road to the rapidly growing Okęcie Airport, while major access and circular roads need to be built or broadened and a park and ride system introduced.

    To complete all the projects Gronkiewicz-Waltz is introducing changes within the city’s administration to streamline the structure and internal organisation, she explained, executed according to the results of an external organisational audit currently underway. There was obviously a need for clear job specifications and redefining responsibilities to help make it much easier for investors, she said. ‘This is a prerequisite for efficient decision making and implementation.’ And for using the full budget of two billion zlotys for investment.

    One of her first decisions was to reform the function of the Chief Architect of Warsaw. The previous structure was replaced by an advisory board, the Commission for Town Planning and Architecture, and the local land use planning process has been decentralised by empowering local authorities.

    Gronkiewicz-Waltz said, ‘It is a unique undertaking in Europe to create the centre of a large capital city, and it means a great responsibility for coming generations.’ Work in progress on the Museum of the History of Polish Jews, the Copernicus Scientific Centre [Centrum Nauki Kopernik] and the historical reconstruction of the Saxon Palace is running smoothly.
    As for the Museum of Modern Arts, for which the jury awarded an architectural design by Christian Kerez, she subsequently decided with the Minister of Culture and National Heritage to implement the project.


     Gronkiewicz-Waltz was keen to stress Warsaw’s excellent credentials for investment. She said Warsaw had already become the financial centre of Central Europe, as well as a centre of know-how in economic system transformation. It is also Poland’s centre for trade, transport, national and private media, culture, education and science. Moreover, she is accelerating the creation of the Technological Park near Siekierki Bridge.
 
    ‘I would like investors to hear my message: Warsaw is Poland’s gate to the world, a gate which is wide open. Come through and get involved.’

    ‘Almost 300,000 young people are studying here, and a growing number of students come from abroad,’ she said. ‘With the very high standard of education these students are the most valued capital of the city.’ Here foreign investors can easily find highly educated, creative and enthusiastic young people.

    However, a major problem raised in the questions and answers session was in fact an issue increasingly affecting investors based in Warsaw, that is, the shortage of qualified labour as a result of emigration abroad, and also internally largely due to the cost of living in the capital, which discourages people from migrating to Warsaw and makes them choose other flourishing cities such as Poznań or Wrocław.

    The Q&A session also touched on the problems of housing construction development in Warsaw, with government regulations and the significant problem of land ownership, presumably a hangover from the war and then communism, holding development back.

    The good news, though, was that PKP, Polish national railways, have finally decided to sell extensive properties both above and along rails for housing development.

     Rashid Khan of BZ WBK S.A. noted that within the Chamber there are a number of experts with extensive expertise in social housing in the British market based on the PPP concept, and offered support in forming a consulting committee to help solve the housing problem in Warsaw.

    Asked about detailed practical ‘hard facts’ information about investment incentives and opportunities Gronkiewicz-Waltz pointed to the newly established office of investor services headed by Alicja Żelichowska and the promotions department headed by Katarzyna Ratajczyk. ‘If you are not satisfied with the answers you receive from them, simply let me know!’ said Gronkiewicz-Waltz.
The article first appeared in "Contact International Business Voice" issue 1/07(77) - Spring 2007.

Photos in this section: Maria Kowalewska, BPCC

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