American Investor June 2011

Investor
Vol. XXI, No. 6 ISSN 1506-3240
American
JUNE 2011
American Chamber of Commerce in Poland 2011
www.amcham.pl
Monthly Meeting: Wojciech Wiewirowski
Focus: Kroll Ontrack AmCham Academy Coca-Cola Experts: aszczuk & Partners Salans
A long row to hoe

Photo pages: Meeting at Woodward Governor AmCham Monthly Meeting Business Mixer at Pink Flamingo
before Poland sees a boom in indigenous shale gas
AmCham online
Investor COVER STORY:

American
JUNE 2011 Vol. XXI, No. 6
The American Chamber of Commerce in Poland
whats on
Your online guide to AmCham activities
www.amcham.pl
Download this magazine!

American Investor is available in full as a pdf for download from the www.amcham.pl website. Go to "About Us" in the horizontal menu, and choose American Investor Magazine from the pop-up menu. You can download past issues of American Investor dating back to October 2010.
4th of July Picnic Sponsorship Outline
A long row to hoe
The Fourth of July celebration hosted each year by AmCham has become a tradition among American business and the Warsaw community.* On Saturday, July 2, 2011, the American Chamber of Commerce in Poland will once again host this hugely successful party for key ofcials from member rms and the international business community. The event will be held again at the beautiful Krlikarnia Palace and the surrounding Arkadia park. Expected attendance: Target: Time: Format/Activities: 600+ (100 kids) Senior Management of over 300 member rms 6:0010:00 P.M.+ Party with live music, reworks, childrens play area, rafes of valuable prizes (airline tickets, hotel vouchers) with proceeds going to the AmCham Orphanage Assistance program.
Calendar
By clicking on red links in the Calendar you may visit photo coverage of our past events. Blue links will take you to the announcements of upcoming events.
before Poland sees a boom in indigenous shale gas, page 12.
Events
AmCham Monthly Meetings are one of the agship events organized by the chamber. While American Investor covers each Monthly Meeting extensively, including full-page pictorials, you can search through picture archives of past events that include never previously printed material. Just go to Events and Activities, pick Monthly Meetings and scroll down for links to archived events.
MONTHLY MEETING Learning from each other Narrowing the differences in data protection between the EU and the US will be good for business on both sides of the pond, p. 16 FOCUS AmCham Academy AmCham will support training programs to enhance practical work skills of selected staff from member companies, p. 18 Supporting IT and justice Tomasz Szczerbina from AmCham Krakw talks with Marek Suczyk, managing director of the Polish subsidiary of Kroll Ontrack, a data retrieval and computer forensic specialist, about the companys accomplishments and challenges, p. 19 Quenching peoples thirst As Coca-Cola celebrates its 125th anniversary, American Investor's Tom wiok talks with Paul Woodward, Operations Director for Coca-Cola Northern Central Europe (Poland, Czech Republic, Slovakia and the Baltics) about the companys success in Poland and worldwide, p. 20 EXPERTS Less bureaucracy Cases should now be handled more smoothly by administrative authorities, p. 22 Seek and ye shall mine Mining companies have an incentive to explore shale gas and tight deposits when their right to extract what they nd is legally protected, p. 23 EVENTS Getting personal with data protection czar, p. 25 Walking the talk with Woodward Governor, p. 26 Pink Flamingo welcomes AmCham, p. 27 DEPARTMENTS From the Editor, p. 2, Newsline, p. 5, Agenda, p. 9, Guide to AmCham Committees, p. 11, Content summaries in Polish, p. 28.
Sponsorship Options: PLATINUM (PLN 30,000) GOLD (PLN 20,000) SILVER (PLN 10,000) COPPER (PLN 5,000)
It is not our intention to exclude or discourage any Member rms from participating in the event in the form of in-kind sponsorship. Please contact us if you have a specic idea such as food donations, medical care, the childrens corner, etc. We have always held rafes and competitions, as they are extremely popular with both adults and children. For more information please contact: Anita Kowalska, Events Manager tel: +4822-520-5994 anita.kowalska@amcham.pl
* According to AmChams 2011 Membership Survey, our 4th of July Picnic is the event most appreciated by members.
Regions
AmCham may be closer than you think. Apart from Warsaw, AmCham has two regional branches which are active all year long and offer many exciting opportunities to interface with regional business leaders and politicians. To nd out more about our activities in Krakw and the region of southern Poland, and Wrocaw, go to Regions in the horizontal menu bar, and pick your region of interest.
Policy Watch
Intelligence: For AmCham position papers, policy statements, ofcial letters to government ministers and research papers, visit the Advocacy link on the horizontal menu to download the latest AmCham position papers.
Other useful sites

U.S. Chamber of Commerce http://www.uschamber.com American Chamber of Commerce to the European Union http://www.amchameu.be AmChams in Europe http://www.amchamseurope.com
JUNE 2011
AMERICAN INVESTOR
YOUR AMCHAM
FROM THE EDITOR
The American Chamber of Commerce in Poland
BOARD OF DIRECTORS
Joseph Wancer Deloitte

Chairman
Judith Y. Gliniecki Wierzbowski Eversheds

Vice Chair
richard lada Telesto

Vice Chairman
Richard Morningstar, US Department of State Special Envoy for Energy in Europe and Asia, with the rank of ambassador, US Ambassador to Poland Lee Feinstein, and Polish Minister of Foreign Affairs Radosaw Sikorski, and other government officials.
Good reasons to work together

n May I had the pleasure of rubbing shoulders with the leaders of the gas industry at the Shale Gas Conference in Warsaw, which was attended not only by representatives of leading US oil and gas companies, but also by ters of natural gas from domestic resources yearly, which meets nearly a third of the countrys demand for gas. So far they have drilled 7,000 wells, out of which 1,700 are in business. With this, the Polish gas industry has accumulated a relatively large experience in how to deal with at least some of the issues mentioned at the conference as critical for successful shale gas development in Poland. In fact, Polish professionals, working side-by-side their colleagues from the US, may significantly contribute to a successful kick-start of the shale gas industry, as soon as we know the numbersdocumented rather than estimatedabout shale gas deposits. But even if the documented resources turn out to be only a fraction of what is currently estimated by the US Energy Information Administration (5.8 trillion cubic feet), shale gas will be an important energy source for decades to come and surely will be a game-changer for the energy sector in Poland and Europe. The change will no doubt be for the better, including a more competitive and less carbon-intensive economy. With this it is fair to say that never before in peacetime have Poland and the US had more reasons to partner and cooperate than now.
Tomasz wiok
peter kaY KPMG Polska

Secretary
stan popoW Finacorp

Treasurer
MEMBERS Tony Housh

APCO Worldwide
John Lynch
Lynka
It was the second conference on shale gas here organized so far by the US and Poland. The first one took place a year ago, and I was there too. I must say that a lot has changed in one year. First of all, the participants at the first conference were cautious about estimating the potential of Polands indigenous shale gas resources. There were many ifs and dont knows. Secondly, as a media person, the subject matter of the conference was new to me and a vast group of Polish journalists. We all had to learn the differ-
Paul Fogo
Miller Canfield
Mac Raczkiewicz
Ex officio
Piotr Jucha
McDonalds
Roman Rewald Anna Sienko

IBM
Weil, Gotshal & Manges
Thomas Kolaja
Alvarez and Marsal
Robert L. Koski
Kulczyk Investments
SPONSORS
ences between shale gas and conventional gas when it comes to geology. The technology was also new: horizontal drilling and hydro-cracking were concepts we had to learn about then. Not this year. A year on, shale gas in Poland is no longer a new thing. Although we still have to wait for the results of geological studies to tell us the real amount of shale gas in Poland, one could sense a growing confidence among gas professionals at the conference about what may lie ahead for the industry. Of course, as with any industrial phenomenon, the development of the shale gas industry in Poland will take proper handling of many issues. As Vice Minister of Treasury Mikoaj Budzanowski said at the conference, it will require solving social aspects (local communities and their genuine fear of having their habitats destroyed), as well as economic (billions of zloty that is needed to invest in gas pipeline infrastructure), legal (laws addressing special issues connected with shale gas exploration will have to be adopted), and political (Poland cannot be the only country in the EU supporting shale gas exploration and lay the foundations for it for the whole EU). But along with having an indigenous source of relatively environmentfriendly energy, what Poland will definitely see as a result of the shale boom will be a free market for natural gas, something that will benefit the private
AmCham Auditor:
sector and the whole economy. Poland, it seems, is well-positioned to take advantage of shale gas. As Budzanowski stressed at the conference, Poland has been a gas nation for decades. He observed that Polish companies produce 4.5 billion cubic me-
AMERICAN INVESTOR
JUNE 2011
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YOUR AMCHAM
Newsline
AmCham Chairman honored
AmCham Chairman Joseph Wancer has been awarded the Order of Polonia Restituta, the second-highest distinction in Poland given to civilians, for his contribution to the creation of a modern banking sector in Poland. Wancer was also invited to serve on the nominating committee for the new series of the Presidential Economic Award, to be given in June this year. The committee has 20 members representing Polish universities, media, the National Bank of Poland, and the Pozna International Fair. Wancer is the only member representing a foreign business organization. In April, Wancer was also awarded an honorary distinction from the Polish Bank Association for his achievement in the banking sector in the two last decades. After a successful career with Citibank in New York and internationally, Wancer established Citibanks operations in Poland in the early 1990s. From 2001 he headed Bank BPH, now Polands 9th-largest bank. Wancer retired in July 2010 after 43 years of banking service.
News from AmCham and its members
AMCHAM STAFF
Executive Director director@amcham.pl
Dorota Dabrowski Marzena Drela
Deputy Director marzena.drela@amcham.pl
Events & Media Manager anita.kowalska@amcham.pl
Anita Kowalska
Office Manager robert.kruszyna@amcham.pl
Robert Kruszyna
Membership and Committees Coordinator barbara.pocialik@amcham.pl
Barbara Pocialik-Malinowska Marta Pawlak
Research and Policy Coordinator marta.pawlak@amcham.pl
Project Assistant robert.chomik@amcham.pl
Robert Chomik
AmCham in Krakw
krakow@amcham.pl
Monika Pilarska
AmCham Krakw
In May, the heads of AmCham member companies from Southern Poland met with Maopolska Governor Stanisaw Kracik at the plant of energy control provider Woodward Governor Polandin Niepoomice. In his previous job as Mayor of Niepoomice, Kracik was instrumental in attracting numerous investors to create an investment zone in the small commune outside Krakw. The AmCham event was an opportunity to discuss some current problems and challenges. The number of American and other foreign investors operating in the zone in Niepoomice surprised even John Lynch, AmCham Board Member and president of Lynka, and US Consul General to Krakw Allen Greenberg. Managing Director Dominik Kania led a tour of the Woodward factory. The plant, combining an engineering section (designing electronics, cabinets and mechanical engineering for industrial and aircraft turbines) with operations (assembly and tests of electronic products, cabinet assembly and wiring), is a good example of cutting-edge technology making its way to Poland.
AmCham in Wrocaw
wroclaw@amcham.pl
Joanna Bensz
Published by the American Chamber of Commerce in Poland EDITOR-IN-CHIEF, ART & DTP tomasz Wiok
tomasz.cwiok@amcham.pl
Investor
American
Representatives from 12 foreign chambers of commerce, including AmCham, met with Polish President Bronisaw Komorowski in late April to exchange ideas on legal and practical issues that affect the business environment for foreign companies in Poland. Speaking for AmCham, Chairman Joseph Wancer addressed issues regarding public procurement and the need to safeguard equal treatment of all investors in public tenders, no matter whether they come from Poland, the European Union or outside the EU. Joining Wancer at the meeting were AmCham Board Members Paul Fogo, Tony Housh, Rick Lada, Roman Rewald, and Anna Sienko.
Baker & McKenzie

The international team of law firm Baker & McKenzie advised on bookbuilding and simultaneous listing of shares on the Warsaw and Ljubljana stock exchanges issued by Nova KBM, the second-largest financial group in Slovenia. Warsaw partner Jakub Celiski, who headed the local team, said the transaction underlined the growing importance of the Warsaw Stock Exchange as a financial hub for Central & Eastern Europe. He said that Baker & McKenzie had already advised 6 out of 7 Ukrainian companies listing their shares on the WSE, as well as companies from the Czech Republic and Lithuania.
christopher smith
christopher.smith@neostrada.pl
EDITOR-AT-LARGE
Members on the move

CB Richard Ellis
Przemysaw Felicki has joined the Capital Markets Team of CB Richard Ellis as an associate director, based in Warsaw. In his new role Felicki will focus on sales and acquisitions of retail, logistics and ofce properties. He will also be responsible for customer management and coordination of commercial due diligence projects. Felicki is a licensed appraiser and a member of the Royal Institution of Chartered Surveyors, with over 8 years experience in investment and valuation. Micha Stanisawski has been promoted to a consultant on the Capital Markets Team. He will be involved in investment transactions and also responsible for market and nancial appraisals, transaction management in both sell- and buyside instructions, and securing new clients. Stanisawski joined CB Richard Ellis in 2008. A graduate of Abertay University in Scotland, he is currently studying at the Warsaw School of Economics.
Printing
Q Invest Ltd +48 22 424 6600 To contact AmCham please write or call: ul. Emilii Plater 53, WFC 00-113 Warsaw tel: +48 22 520 5999 fax: +48 22 520 5998 e-mail: office@amcham.pl www.amcham.pl
AmCham Policy Watch

As a follow-up to the April Monthly Breakfast Meeting with Magorzata KrasnodbskaTomkiel, President of the Ofce of Competition and Consumer Protection, AmCham submitted a position paper to Krasnodbska-Tomkiel underlining that companies applying for merger approval should be informed about problems and issues with competition aspects of the merger identied by the ofce. AmCham also advocated publishing a best practice guide to merger-related competition issues, including guidelines on how the participants should communicate with the regulator, particularly with respect to addressing concerns and questions raised by the ofce during the process of merger review.
Cisco
System integrator Cisco and the University of Technology and Life Sciences in Bydgoszcz have finished the modernization of the computer network on the university campus. The network, which utilizes the Cisco Borderless Networks architecture, supports wireless Internet access for 9,000 university students and 1,000 teachers.
American Chamber of Commerce in Poland 2011. All rights reserved.
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Date:................................................
American Investor is the official publication of the American Chamber of Commerce in Poland. It is a voice for foreign investors and the business community in Poland. The magazine strives to keep our members and other readers up to date by following chamber news and reporting on the leading trends in business and policy. letters to the editor should be e-mailed to tomasz.cwiok@amcham.pl
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CB Richard Ellis
Manuel Lamosa de Melo has won the CB Richard Ellis International Urban Photogra-
AMERICAN INVESTOR JUNE 2011
JUNE 2011
AMERICAN INVESTOR
Newsline
HOT DATE
Jul.02.11
Event: AmCham 4th of July Picnic Place: Krlikarnia, Warsaw Time: 6:00 P.M.
AmCham has moved to the 19th oor

pher of the Year competition for his portrayal of a Tunisian market stall (pictured). The competition, which was open to amateur and professional photographers across Europe, the Middle East and Africa, is the largest of its kind in the world, attracting a record of more than 10,000 entries. Contestants also voted on their favorite landmarks. The worlds tallest building, the Burj Khalifa in Dubai, ranked first, ahead of the Coliseum, the Chrysler Building and Angkor Wat. In other news, CBRE has been appointed by HB Reavis Group as the exclusive agent for its first Warsaw project, Konstruktorska Business Center. The project will offer 48,000 sq m of Class A office and retail space upon completion in 1Q 2013. CB Richard Ellis Group has been named to the Fortune 500 list of the largest US-based companies for the fourth straight year. CB RE is the only commercial real estate services firm ever to be included in the Fortune 500. At number 440 this year, the group handled deals worth USD 128 billion in 2010.
Mamaison Hotel Le Regina Warsaw
New Members
Pharmaceutical company Gilead Sciences Poland (www.gilead.com) has joined AmCham. It is headed by Micha Kamierski, general manager. Parsons Brinckerhoff (www.pbworld.com) has joined AmCham. Jarosaw Putresza, country manager, represents the engineering consultancy in Poland. Packaging and food product specialist Silgan White Cap Polska (www.silgan.com) has joined AmCham. It is represented by Marek Rajca, general manager. Outsourcing and IT specialist Web Inn (www.webinn.pl) has joined AmCham. President Leszek Rodeski represents the company in Poland.
Andrew Harpers Hideaway Report, one of the most respected publications in luxury travel, published a recommendation of the Mamaison Hotel Le Regina Warsaw in its April issue, for exceptional character, a commitment to classic hospitality, and a profound sense of place. Mamaison Le Regina Warsaw (pictured) is a five-star hotel in the Old Town offering 61 individually designed rooms and suites, conference and banqueting facilities, and chef Pawe Oszczyks La Rotisserie Restaurant.
Microsoft
The fundamental business needs that drive the requirement for effective and efficient customer management practices remain unchanged, according to a Forrester Consulting study commissioned by Microsoft to examine the total economic impact and potential return on investment for enterprises that use Microsoft Dynamics CRM 2011. Efficient and effective CRM includes acquiring new customers, building tighter bonds of
Cushman & Wakefield

According to real estate company Cushman & Wakefield, more than EUR 3.5 billion of investment product is being offered for sale in the core CE markets of the Czech Republic, Hungary, Poland and Slovakia, up marginally from the previous quarter. Sellers are split equally between developers seeking to exit and investors wishing to trade on, although the latter are starting to take advantage of the improving market, with increased investor interest and improving pricing driven largely by yield compression. The retail sector accounts for almost half of the volume, at EUR 1.7 billion, with at least four shopping centers currently being marketed each with lot sizes exceeding EUR 200 million. In terms of geographical spread, Poland continues to dominate, accounting for EUR 2.05 billion (58%) in the region.
Our mailing address remains the same, but we are now on the 19th floor of the Warsaw Financial Center. Open House Friday, June 3, 11:00 A.M. to 5:00 P.M. Please stop by to visit us!
Our special thanks to Universal Express Relocation for moving our office, Massive Design for designing AmChams new office, McDonalds for a coffee machine and Whirlpool for a dishwasher.
Hewlett-Packard
HP has upgraded its Flex Network technology for video conferencing to support multimedia, cloud computing and mobile technologies. The new tools enable merging and harmonizing data from different networks within organizations. They also enhance data transfer speed, minimize delays and optimize network performance, making the technology simpler to use.
JUNE 2011
AMERICAN INVESTOR
Newsline
Letter to the Editor
Dear Editor, I am a huge supporter of PPP and I loved your editorial in the May issue of American Investor. Most of my peers in the industry are crying about budget cuts but I think that necessity is the mother of all invention and until we have a bit of hardship trying to get funding, we wont get people willing to work harder to make PPP deals happen. Christopher P. Hutchinson Curb-Tec Europe
Agenda
Members on the move
Dominika Mizieliska has become of counsel at the Warsaw ofce of K&L Gates. Mizieliska specializes in commercial law and corporate nance including M&As, structural realignments, company formations, trade and investment contracts, joint ventures, technology transfers, and license agreements. Advocate Wojciech Wsowicz, PhD, has become of counsel at K&L Gates. His legal practice involves civil cases, white-collar crime, administrative law, shareholder relations and construction law. Counsel Halina Wickowska has become a partner at K&L Gates. She heads the law firms real estate practice, representing clients in property acquisitions, commercialization, leasing, structural realignment, project finance, and M&A.
Intelligence from AmCham and its committees
Small & Medium-Sized Enterprises Committee
K&L Gates
loyalty, and reducing the costs of marketing, selling, and servicing. Of the 455 large organizations that Forrester surveyed in late 2010 in North America and Europe, 55% have already implemented a CRM solution, and many of these are investing more to upgrade their tool set. An additional 19% have plans to buy a CRM solution for the first time within the next 12 to 24 months. The pattern for midsize organizations is similar. CRM solutions are widely deployed, and interest in expanding their use is high. However, given the continuing uncertainty in the current economic climate, organizations are looking for flexible and extensible solutions that provide the functionality required at the best value. Microsoft Dynamics CRM 2011 business software is a solution designed to boost the personal and team productivity of customerfacing workers by offering a full set of functionalities with a familiar desktop user interface through integration with the Microsoft Outlook messaging and collaboration client.
ise to explore the potential of this substantial acreage. Norton Rose advised Nexen on Polish mining regulations in relation to the negotiations.
Panattoni Europe
Developer of industrial and logistics space Panattoni Europe has started another built-tosuit project, a manufacturing facility in Radomsko, within the d Special Economic Zone. The general contractor is the Polish branch of Japans Kajima Corporation. The 32,000 sq m facility will employ 400 people in three shifts. Construction is scheduled for completion this fall.
Borrowers should not overlook loan guarantee institutions
Facilitating business in the region

Small businesses in Mazovia can look beyond commercial banks for loan assurance and credit advice
MEs based in the province of Mazovia and seeking loan guarantees should contact the Mazovia loan guarantee fund, Mazowiecki Fundusz Porcze Kredytowych Sp. z o.o., a non-profit organization established by the province in cooperation with the City of Warsaw, other local governments, and Bank Gospodarstwa Krajowego to help local business grow. This was the main message from MFPK deputy director Ewa Grymm when she met with the AmCham SME Committee in May. According to Grymm, MFPK is a good alternative for small and medium-sized businesses that have been turned down by commercial banks in their quest for a loan. Companies of this type, and micro-businesses as well, have always found it tough to obtain financing, Grymm said. Local governments noticed the problem, and hence their involvement in MFPK. Most companies are in fact small or medium-sized, so helping them also helps the local economy. By underwriting loans to SMEs, Grymm said, we help create new jobs and new business opportunities for local populations. Grymm presented the range of services offered by MFPK. The fund may provide guarantees covering up to 70% of the loan value if MFPK is the only guarantor for the loan, or up to 80% if there are multiple loan guarantee companies involved. MFPK offers guarantees that cover two types of loans. For standard investment loans, MFPK offers guarantees of up to PLN
Salans
In the annual ranking of law firms in Poland by Rzeczpospolita daily, Salans ranked No. 1 in the number of lawyers, with 144. Salans also ranked first in revenue in 2010, at PLN 109.5 million, one of only three law firms in Poland with billings over PLN 100 million. According to Tomasz Dbrowski, Salans Warsaw managing partner, the distinction reflects the drive and determination of our lawyers over the years to serve the needs of our clients and to implement our strategy of building a leading universal law firm in Poland and the region.
Norton Rose
Law firm Norton Rose Piotr Strawa and Partners has advised Nexen Petroleum UK on acquisition of a 40% working interest in ten of Marathon Oils Paleozoic shale play concessions in Poland. Nexen and Marathon will combine their drilling and completion expert-
Micha Ptaszyski has been appointed land & development manager at ProLogis in Poland. Ptaszyski will be responsible for nding new investment opportunities through the acquisition or sale of land or existing ProLogis projects, identication of new business development opportunities, implementation of the companys land bank management strategy, and coordination with the leasing department to market ProLogis distribution parks and establish relationships with new accounts. Agnieszka Najberek has been named sales and marketing director at the Sheraton Krakw, where she will be responsible for developing new sales and marketing strategies and relations with customers and suppliers. Najberek started her career with Starwood Hotels & Resorts in 1995 at the sales department of the Le Mridien Bristol in Warsaw. She was head of group sales and conference business at the Sheraton Warsaw, and since 2007 has been sales and marketing director of the Sheraton Sopot Conference Center & Spa.
ProLogis
Sheraton Krakw
AmCham just completed its first mission to the US to promote trade and investment with Poland. AmCham spent several months researching and contacting companies in Dallas and Denver to organize a series of one-on-one meetings to talk specifically to companies needs. Altogether the AmCham delegation met with ten companies and had three group meetings including the World Trade Day in Denver from May 11 to 17. Although the US is focused on increasing domestic employment, large companies are continually looking for global business opportunities and solutions. The conversations AmCham had were very engaging and put Poland in the minds of corporate decisionmakers. Pictured: Dorota Dabrowski, AmCham; Joseph Chapa, Irving Chamber of Commerce; Thom Davis, Omega Environmental Technologies; Tony Housh, Rick Lada, and Joanna Bensz, AmCham.
Stijn Oyen has become managing director of the Sheraton Krakw. Oyen has 10 years experience working for the Sheraton brand, including the Sheraton La Caleta Resort & Spa in Tenerife and the Sheraton Stockholm. Oyen, a Belgian, speaks Dutch, English, French and Spanish.
1 million for a period of 60 months, or up to 10 years in the case of investments in the innovative economy. MFPK also offers security for loans issued to companies to acquire real estate. This type of loan is secured for up to 12 months, and the purpose is to secure the financing between payment of the purchase price and entry of the new owner in the land and mortgage register. According to Grymm, 12 months is usually long enough for the buyer to register the property in its name, together with the mortgage for the bank that issued the loan. Although, as Grymm explained, MFPK is a non-profit organization, it does charge its clients a one-off fee: We have to charge fees to be in compliance with EU regulations governing loan guarantee funds. Before MFPK approves a loan guarantee, it runs due diligence of the prospective borrower and sets the fee for its service. The charge is more or less similar to charges that other loan guarantee companies ask for. For instance, in the case of bridge loan security, MFPK will charge 0.6% of the value of the loan secured for the first four months of the service and 0.2% for each additional month. The fees that MFPK collects do not constitute profit, but cover the organizations operating costs. MFPK cooperates with lenders, and if both MFPK and the lender approve the loan to be secured, they will sign a deal. Along with its own analysis of the borrowers financial situation, MFPK also sources informa-
tion from the bank that actually issues the loan. If MFPK approves the loan, it will sign a civil-law contract with the borrower. MFPK has been in business for 6 years. Through 2010 it had secured 2,650 loans. Today the organization has approximately PLN 120 million in funds to back loan guarantees, which translates into an ability to secure loans worth PLN 400 million. It seeks to issue about a thousand loan guarantees a year for SMEs. MFPK has now begun a new project, financed from EU sources, in which it can offer loan guarantees for fees up to 50% lower than it normally charges. The condition, however, is that the borrowers must use the money for investment purposesfor direct development of the business. Grymm stressed that MFPKs mission enables SMEs to raise the money they need, without, for instance, the owners having to mortgage their own real estate. Along with offering loan guarantees, MFPK is more than happy to offer advice to companies seeking loan guarantees or just looking for credit. As Grymm explained, We cooperate with big banks, like BRE Bank and PKO Bank Polski, but also with smaller lenders, such as banking cooperatives, which are especially active outside of the core center of Mazovia, serving companies operating in the most outlying counties of the province.
JUNE 2011
AMERICAN INVESTOR
Agenda
Defense & Security Committee
For the AmCham Guide to Committees

For the most recent information about the work of AmCham Committees, and upcoming events: www.amcham.pl
Intelligence from AmCham and its committees

Agri & Food
www.amcham.pl/agri_food
Mission: To provide a platform for discussing and solving issues and identifying opportunities in the agricultural and food sector by creating a base for dialogue and expertise. Co-Chairs: Andrzej Pawelczak, Animex; Maciej ubieski, Universal Leaf Tobacco Poland.
Financial Services
www.amcham.pl/financial
Mission: The Financial Services Committee aims to identify and promote issues related to and in support of the financial services sector, as well as to provide a forum for dialogue among sector professionals and decision-makers in government. CoChairs: Andrew Hope; Adam Michon, MetLife.
Pharmaceutical
www.amcham.pl/pharmaceutical
Mission: To discuss and identify common interests and exchange information regarding Polands pharmaceutical market; to act as a representative body and collective voice of pharmaceutical companies before governmental institutions. Co-Chairs: Jarosaw Oleszczuk, Abbott Laboratories; Roberto Servi, Eli Lilly Polska.
www.amcham.pl/consumer
Mission: To provide a forum to share knowledge and exchange experience in all areas common and relevant to manufacturers and distributors of goods. Co-Chairs: Magorzata Surdek, CMS Cameron McKenna; Agnieszka Dzigielewska-Joczyk, HP Polska.
Consumer Products
Health
www.amcham.pl/health
Mission: To provide a united forum for US companies to share their expertise on the healthcare system and exchange knowledge and experience with national counterparts, contribute to the positive developments in the sector and promote the US experience and capital while establishing the best conditions and opportunities for investments. CoChairs: Elisabeth Asirifi, IBM Polska; Jolanta Chlebicka-Dominiak, Johnson & Johnson.
Political Discussion Forum

www.amcham.pl/pdf
Mission: To build relationships with key players in Polish politics, regardless of whether within the government or not, in small groups and in private settings, to serve as a vehicle into the world of Polish politics behind official curtains. CoChairs: Robert Koski, Kulczyk Holding; Marek Matraszek, CEC Government Relations.
Corporate Social Responsibility

www.amcham.pl/csr Fruitful cooperation in defense is on the horizon for Polish and US companies
Looking further ahead

Although it has a long way to go to match the mature US market, Polands defense industry has the potential to become one of the most important regional players for the US
he long-established tradition at AmCham committee meetings is for members to ask questions of the guests and learn from them. The tables were turned in May when 12 colonels from the National War Collegein Washington, accompanied by Ken Hillas, former Deputy Chief of Mission at the US Embassy in Warsaw, met with the AmCham Defense & Security Committee. This time, it was the military guests who posed questions to the business members. Co-chair Stan Prusiski of Sikorsky Europe, who moderated the meeting, said that the Polish military has marched a long way from where it was at the beginning of the economic and political transformation in 1989 to where it is now. Pruszyski mentioned Polands efforts to join NATO and become a reliable partner for the US on defense issues. When Poland went from the Partnership for Peace to NATO, it did not stop there. It has managed to lead a multinational division in Iraq, a very significant achievement and success. This is understood only by those who know how difficult it is to operate a division. Pruszyski said that along with Polands involvement in NATO as one of Americas principal allies, Poland has pursued an ambitious project of acquiring 52 F-16 fighter planes. The program required next-generation systems that Poland did not have at that time, but the country has done what it takes for successful integration of F-16s into its defense system. For instance, the F-
Mission: To encourage and facilitate responsible business practices among AmCham members to support them to improve the quality and effectiveness of their CSR programs. Co-Chairs: Wojciech Arszewski, UPS Polska; Anna Jawor, IBM Polska.
Real Estate
www.amcham.pl/infrastructure
Mission: To discuss issues of the development of infrastructure; to promote infrastructure solutions for cooperation between private and public partners. Co-Chairs: Krzysztof Wierzbowski, Wierzbowski Eversheds; Andrew C. Kapusto, Raytheon Homeland Security.
Infrastructure
www.amcham.pl/real_estate
Mission: To discuss issues regarding the complexities of the real estate market in Poland, and exchange information. To be an educational and networking forum for members and to lobby and influence legislative departments of the Polish government. Co-Chairs: Halina Wickowska, K & L Gates; John Baka, Colliers International.
Defense & Security
www.amcham.pl/defense
Mission: To serve as a platform for defense industry issues and exchange relevant information. The committee creates a networking forum and fosters a positive working relationship with the government and people of Poland. Co-Chairs: Paul Zalucky; Stan Prusiski, Sikorsky Europe.
16 project led the producer of F-16 engines, Pratt & Whitney, to acquire a dilapidated aircraft producer in Rzeszw, southern Poland, where it now produces jet engines. Pruszyski noted that Poland is ready for more acquisition of US defense equipment to the point that it requires industrial cooperation. Although Poland is a tremendous ally of the US, there are issues within the defense industry in Poland that call out for reform. Poland is not an easy market for defense companies because it has more regulations than the US. In addition, since Poland joined the EU, it has been under pressure to buy defense equipment from European countries to prove that Poland is European. This poses challenges for procurement processes, which must be transparent and decided on the basis of quality. AmCham members at the meeting also said that considering IT and electronics in the defense sector, the most important competition comes from Polish companies, not the European Union. But the defense sector in not very mature when it comes to IT and electronics, and it will take a long time for this to change. Committee members anticipate tough budget challenges for Poland, which means that in procurement, price is going to be a hot issue. Although procurements are going well now, the Ministry of Finance is likely to seek to use more creative methods as well as public-private partnerships. Another problem is that Polish defense
contractors, of which the Bumar group is the largest, employ a lot of people and have very strong trade unions. The unions impose challenging conditions for business. In order to compete on the European and world stages, Bumar has to make promarket reforms, a process that has now begun. Involvement of US companies in the reform process is important, however. Some US defense firms are cooperating with Bumar to help it adjust to the realities of the market economy. For instance, consulting company PwC helped the tank subsidiary Bumar abdy streamline its organizational structure, so the companys product line now is more diverse, with not only defense equipment but civil engineering gear as well, including cranes, excavators, loaders, welded structures, tools, castings, forging, transmissions and gear-wheels. The Bumar abdy case signals that the defense market in Poland is maturing to some extent. It has a long way to go before it reaches a state comparable to that in the US, but in the US private companies have long been involved in the defense sector, while in Poland the process has barely begun. All of the Defense & Security Committee members present agreed that in time Poland will prove an important partner for the US defense sector. Thanks to its geographical location, it can act as a springboard for American companies to expand further into other important markets.
Intellectual Property Rights

Mission: To advocate for IPR protection and provide leadership that will bring together interested partners; to share information with decision-makers and law enforcement. The police, judiciary, prosecutors, customs officials, legislators and journalists are among the target groups, while the curriculum of law schools should have more emphasis on IPR. Co-Chairs: Agnieszka Wyszyska-Szulc, Philip Morris; Anna Lasocka, aszczuk & Partners.
Small & Medium-Sized Enterprises

www.amcham.pl/sme
Mission: To provide a forum for exchange of ideas/best practices to improve the performance of SMEs; to identify and promote solutions to facilitate and support the managerial and operational efforts of SMEs through educational, networking or lobbying efforts that leverage the resources and knowledge of AmCham and its membership. Co-Chairs: Alain Bobet; Cezary Krasodomski, Cisco Systems.
www.amcham.pl/ipr
Employee & Labor Relations

www.amcham.pl/labor
Mission: To create an information exchange forum of HR professionals to share, discuss and learn about the latest trends in HR management and influence local policy and decision-makers. Co-Chairs: Jolanta Jaworska, IBM Poland; Peter Strupp, United Business Development.
Marketing & Communications

Mission: To provide a forum for member firms to share knowledge and exchange experiences in marketing, communications and PR; provide educational and networking opportunities for member firms interested in these areas; and serve as an advisory body for AmCham. Co-Chairs: Anya Ogorkiewicz, The Keryx Group; Michael Zawadzki, InterContinental Warsaw.
Tax
www.amcham.pl/marketing
www.amcham.pl/tax
Mission: To provide a platform for identifying tax issues and create an educational forum to keep AmCham members informed on current and upcoming legislation. To create a network to share information, comments and best practices. To lobby decision-makers in the government. Co-Chairs: Peter Kay, KPMG; Piotr Bartuzi, Bank BPH.
Energy & Environment
www.amcham.pl/environmental
Mission: To help members develop their environmental and renewable energy business and help learn about, identify and overcome difficulties connected with environmental laws, and develop a discussion forum among members about environmental issues. Co-Chairs: Adam de Sola Pool, Jerzy Chlebowski, Mitsubishi.
Outsourcing/High Tech
Telecom
www.amcham.pl/outsourcing
Mission: To provide a platform for discussing, identifying and addressing common SSC/BPO issues related to high-tech operations; to maintain contact with local authorities, educational and governmental institutions to present a unified business perspective and to suggest ways of possible cooperation. To identify the possibilities/areas of state assistance, to share experience and leverage knowledge. CoChairs: Marek Suczyk, Kroll Ontrack; Jacek Stryczyski, Lionbridge.
www.amcham.pl/telecom
Mission: To create a platform under the AmCham umbrella for the exchange of members ideas and views on trends in the telecommunications sector in Poland; to take steps to influence decision-makers in telecommunications legislation, policy and practice; to promote innovative trends in telecommunications; to modernize communications technology for business and the average Polish consumer. Co-Chairs: Jarosaw Roszkowski, Crowley Data Poland; Piotr Muszyski, TP SA.
European Union Affairs

www.amcham.pl/eu
Mission: To provide members with relevant information on EU-related issues, including EU funds, and to represent American investors before the Commission and the Polish government. Co-Chairs: Magdalena Burnat Mikosz, Deloitte; Jerzy Thieme.
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COVER STORY: Shale gas
A long row to hoe

hen the phenomenon of shale gas in the US was showcased in Poland for the first time in April last year, at a conference organized by the US Embassy and the Polish Ministry of Foreign Affairs, the Polish media and public opinion became so excited about the prospects of shale gas production in Poland that Chief Geologist Henryk Jezierski had to come out in the media and state that Poland had no documented shale gas deposits. A year on, by the time the second shale gas conference was held in May 2011, the estimates of Polands
before Poland sees a boom in indigenous shale gas

ence in May, noted that the solid output of shale gas produced in the US presents a striking contrast with the fragility of availability of traditional gas sourced by European countries from North Africa, which is currently torn by domestic political instability. He added that the March nuclear reactor disaster in Fukushima, Japan, undercut confidence in nuclear power, which may have implications for political decisions about nuclear energy in Europe. Sikorski also said that with its own shale gas, Polands energy security will be reinforced, the nations economy
If we only plan for the shale gas boom to start 1015 years from now, shale gas will never be produced in Poland. I have seen many investment projects in the energy sector with such a long investment perspective, and none of them actually was ever accomplished. Mikoaj Budzanowski
Vice Minister of Treasury
natural deposits by the US Energy Information Administration had doubled from 2.5 trillion cubic feet to 5.8 trillion cubic feet. But estimates aside, nothing has changed in respect to documented resourcesPoland still has zero. A year is a long time in business. The commercial exploitation of shale gas in the US has impacted energy markets all over the world by boosting the gas supply and bringing prices down. The US has become an exporter of LNG instead of an importer. The first shipments of LNG from the US reached the shores of Great Britain in December 2010. This has opened up new opportunities for countries that rely on gas imports and are interested in diversifying their gas supply chains to reinforce their energy security. Poland is one of them. Polish Minister of Foreign Affairs Radosaw Sikorski, who spoke at the confer-
will become more competitive, and Poles will become more affluent, while in the macroeconomic scale the countrys current account may receive a fresh cash injection. The development of shale gas, which Sikorski said is a phenomenon driven by technology, will help Polish companies and researchers link with new technologies. In this context, Sikorski said, The exploration for domestic shale gas marks a big opportunity for Poland and is our duty now. But he also noted that shale gas exploration has begun outside of North America, in Asia, South America and Europe. The US continues to maintain a technological edge, he said, but shale gas exploration is no longer a phenomenon attributed exclusively to US companies. The activities of exploration companies and technological advancements make it a global phenomenon now.
slow progress? In recent years the Polish Ministry of the Environment has issued over 70 concessions for exploration for shale gas. The majority of concession holders are US companies, such as Exxon Mobil, Chevron, Marathon Oil and Conoco Phillips. The Polish gas market monopolist PGNiG was granted 25% of all concessions. But within the last 12 months, only 8 exploration drilling wells have appeared on the Polish landscape. All the exploration concessions granted translate into construction of 124 exploration wells, plus an option for 100 more if needed. If exploration goes at the current pace, the shale gas revolution in Poland may not kick in for another 15 years. Another speaker at this years conference, Vice Minister of Treasury Mikoaj Budzanowski, called for quicker action. If we only plan for the shale gas boom to start 1015 years from now, I can say now that shale gas will never be produced in Poland. I have seen many investment projects in the energy sector with such a long investment perspective, and none of them actually was ever accomplished. According to Budzanowski, shale gas has to be approached in Poland as a business project with a concrete lifespan, financing and legal framework: Today we are in the pre-investment part. Over 25 companies are exploring for shale gas. This will take 34 years and at least 124 drilling wells. The next step will be granting production concessions. So this definitely will take place before 2020. From the technical point of view Budzanowski may be right. According to Richard Morningstar, US Energy Department Special Envoy for Energy in Europe and Asia, what happened in the US is an example of how markets can change very quickly. The production of shale gas has skyrocketed from 2000 to 2010 in the US, Morningstar said. If you go back to
2005 and you look at the outlook that the US Energy Information Administration made with respect to global markets, it anticipated that the US would increasingly become a major LNG importer as domestic gas production declines. Within five short years, as a result of the shale boom, by 2010, the Energy Information Administration was predicting that with the increasing shale production the US would be importing little if any LNG. But not only thatit looks like the US is going to be an LNG exporter, not an importer. talking business But the growth of shale gas in the US and Europe may follow quite different pathsa concern for private companies driven solely by the prospect of profit. One of the first things private gas companies check when contemplating entering new areas is the value proposition for all stakeholders. According to Patrick Blough, vice president for gas commercialization at Chevron Global Gas, who spoke at the conference, Historically we have found that if all the stakeholders companies, landowners, governments and subcontractorsdo not benefit, the value proposition is not sustainable over time. There are major differences between the US and Europe when it comes to the resource base, he said. Certainly it is more broad in the US than it is in Europe. Blough noted that unlike most of Europe, the US has a highly mature infrastructure for gas distribution. This means that when shale gas is extracted, regardless of location or geography, it is never far from feasible infrastructure to get the gas to the marketplace. Gas companies can then focus on the upstream side of the equationdrilling for gas and extracting itknowing that they can easily get it to the market. Blough also said that market mechanisms in the US are transparent and liquid. Not so in Europe, he said: It is not clear yet, country to country in Europe, how that will evolve, so there is more uncertainty there. Another uncertainty in Europe is the regulatory framework for shale gas production. Although it is still evolving, it is pretty well-developed in the US, Blough said. Again, country to country in Europe, it is still evolving and there is more uncertainty here.
Blough said that the shale gas revolution in the US was an extension of an already large industry, well-served by a large workforce. By contrast, he said: What is contemplated in Europe is in-
shale gas development in Europe in some ways are more compelling than they were in the US: Energy security, capital outflows, the environmental equation with respect to renewable mandates and emis-
The exploration for domestic shale gas marks a big opportunity for Poland and is our duty now.
Radosaw Sikorski Minister of Foreign Affairs
crementally so much bigger than any present activity that it will need some time to develop. Our expectation for how the cost curve will react in Europe for the time it will take to develop a significant shale gas position in Europe is probably going to be quite different than it is in the US. But there are some pluses to the European shale gas equation as well. In the US, mineral rights are privately owned for the most part, and mostly in very small pieces. One of the advantages that Europe has is that awarding of acreages is
sionsthose all are compelling things for the start of contemplating shale gas in Europe. Governments role The bottom line in Europe is that investors are not going to invest in the shale gas business unless they perceive that they are going to have a fair return on their investment in a reasonable timeframe. Unlike in the US, in Europe governments are going to be enablers for the shale gas industry, and their role will be
Historically we have found that if all the stakeholderscompanies, landowners, governments and subcontractorsdo not benet, the value proposition is not sustainable over time.
Patrick Blough Chevron Global Gas
done in much bigger parcels, Blough said. That actually can help facilitate development. The acreage acquisition aspect of the development of shale gas in the US was probably the most difficult part. When you consider the tens of thousands of leases that have to be accumulated for a company to get a decent shale gas position in the US, that is a more
pivotal in how fast it unfolds and how profitable it becomes. Because there is not a lot of extensive infrastructure across the continent, facilitation of the gas value chain will be much more important here than it was in the US. The return on investment that gas companies will get is not confined to just the upstream investment, as it is in
There are moratoria on shale gas exploration in two states of the US, one land in Germany, and in France, so this is serious.
Henryk Jeziersk Chief Geologist
challenging undertaking than it appears to be in Europe. Blough also said that the drivers for
the US. The entire value chain of exploration, development and production, through gas gathering and gas trans-
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COVER STORY: Shale gas
portation and getting gas to the marketplace, will all contribute to the net profit that investors will get at the end of the line, Blough said. Any of those pieces in the value chain can be the difference between an economic and uneconomic investment. So we will look quite hard at the upstream and the non-exploratoin as-
industry. Governments have a lot to do with facilitating the location and growth of indigenous service companies. According to Blough, That will ultimately have a lot of influence on what the cost of shale gas will be in Europe. There is an opportunity for different kinds of businesses to participate, whether they will be
I sometimes get a feeling that for some politicians, diplomats and journalists, shale gas is something of a Yeti. Nobody has seen it, but everybody is afraid of it. Mikoaj Dowgielewicz
Vice Minister of Foreign Affairs
pects of how this business unfolds. Certainly the governments will have a lot to do with how the non-exploratoin sector unfolds. Then comes the regulatory environment for the new market. Industry and government need to collaborate on creating that framework. According to Ambassador Morningstar, There need to be reasonably long lease terms. Sanctity of contracts obviously is very important, with options for international arbitration. Regulatory transparency and stability is going to be important for the countries here to work out. Getting companies to investand there are many companies who are ready to invest here in Poland and in other countriesin what could be an uncertain prospect requires the governments to get the regulatory and fiscal
local indigenous companies, independents, or international oil companies. The last issue is to educate and maintain public support for shale gas exploration and production. Blough said this is the joint responsibility of industry and government: I do not think that either one can necessarily do it themselves. The governments, obviously, have to have a big say in that. social issues will be hot Unlike with other issues, the US shale gas industry does not have a great track record when it comes to educating about shale gas and maintaining public support for it. At first, it did not need to educate much, when drilling in deserts and plains that were largely uninhabited. It was not until the drilling wells began to appear in
Getting companies to invest in what could be an uncertain prospect, requires the governments to get the regulatory and scal pieces right.
Richard Morningstar US Energy Department Special Envoy for Energy in Europe and Asia
pieces right. There need to be marketbased gas prices, and a reasonable corporate tax and a stable tax regime that companies can count on so they know what their return on investment is going to be. The fourth big issue is support for the development of the host countrys service
peoples neighborhoods that the issue of public acceptance of the shale gas industry began to surface. Comparing the US and Poland, it is clear to see that population density in the US played to the advantage of the shale gas industry. The US has 30 people per square kilometer, with only 3% living in
rural areas. In Poland the numbers are much less friendly to shale gas production: 120 people per square kilometer, and nearly 50% of the population living outside of cities. In such an environment, public dialogue early on in the process of drilling for shale gas is vital. According to Morningstar, We did not have that dialogue because we did not know any better. Now people do know better, and public discussions should start now. So before shale gas develops further, the collaboration between the private sector and the political sphere will have to become stronger and more consistent. The Polish government is fully aware of the problem. As Mikoaj Budzanowski from the Ministry of Treasury put it, drilling for shale gas in Poland also means drilling into a spectrum of sensitivities. There will be bogus environmentalists trying to get financial gains from drilling companies, he said, but there also will be genuine fears of local communities about the safety of the natural environment where they live. The relatively high population density may also affect the development of the pipeline infrastructure that will transport gas to markets outside of Poland. According to Gas System, a state-owned gas pipeline construction specialist, Poland will need to build 2,000 km of gas pipelines to effectively connect its domestic infrastructure with that of its western and southern neighbors. To undertake such a big investment project will not be possible without having legal and administrative regulations, Budzanowski said. Another batch of difficult issues for Poland to solve were signaled by Vice Minister of the Environment Henryk Jezierski, who is also Polands Chief Geologist. He said that while there have been no major environmental threats documented in the US, the Polish government is looking forward to the publication of a report on the environmental impacts of shale gas in the US announced by the Environmental Protection Agency. Jezierski said that there are diverse opinions across the political establishment on the issue: There are moratoria on shale gas exploration in two states of the US, one land in Germany, and in France, so this is serious. Poland is not going to introduce a moratorium, though, according to Jezierski. There used to be a ban in Europe on
postmortem examination of human bodies, but it did not help in the development of medicine, he explained. We have very good EU laws regarding environmental protection and institutions that can safeguard shale gas exploration in compliance with the law. And we have huge experience here at home as well, with 7,000 wells drilling for conventional gas. poland and the eu Energy security and greenhouse gas emissions are the two key issues in the energy debate in the European Union. If the anticipated huge resources of shale gas in Poland are confirmed, it is universally acknowledged by the American side that Poland has an opportunity to lead the shale gas revolution in Europe. But according to Vice Minister of Foreign Affairs Mikoaj Dowgielewicz, whose brief is the EU, it will be a complex business. I sometimes get a feeling that for some politicians, diplomats and journalists, shale gas is something of a Yeti, Dowgielewicz said. Nobody has seen it, but everybody is afraid of it. He noted that ecological sensitivity is high in the EU and must not be ignored. But the economic and environmental aspects of shale gas are of critical interest for EU member states. Not so long ago Poland held a seminar in Brussels on shale gas, Dowgielewicz said. It was met with extraordinary interest. Many institutions in Brussels that can help develop shale gas are interested in it. But he noted that Poland needs more involvement on shale gas from the US, at the level of the EU-US Energy Council. Poland should not be the only country advocating shale gas in Brussels, Dowgielewicz said. He added that there will be discussions in the EU about what chemicals may and may not be used in hydro-cracking of shale deposits and other environmental issues. Poland will be ready for that, he said. But one cannot hope that Poland alone will deal with this issue. It needs the involvement of those companies and countries who do deal with shale gas production. Poland is not yet one of them. Dowgielewicz also said that the EU is in for many difficult debates regarding the use of shale gas resources in the continent. What is important, he said, is that the narrative shift from negative aspects to the economic, environmental and en-
ergy security opportunities that shale gas offers. As examples of the positive direction this narrative may take, Dowgielewicz pointed to the increased competitiveness of the EU economy that shale gas may contribute to, as well as the lack of progress in developing other energy sources, most notably the carbon capture and storage technology whose economic feasibility is now in doubt in the EU. Dowgielewicz also said that the economic opportunity aspect is being grasped by more and more gas companies, who before had been perceived as potentially opposed to shale gas development. Many big gas companies in Europe are looking into the potential of shale gas and are willing to take benefits from this technological phenomenon as well, he said. What now? While Poland is doing its best to become a leader in the anticipated shale gas revolution and working hard in the EU to promote the technological phenomenon as a feasible way of improving energy security for the Union, the countrys take on indigenous shale gas potential is no different than that of commercial companies: it needs the numbers first. As Chief Geologist Jezierski said, We understand that we have a common interest with US companies here. We need to know for sure how much shale gas is available for commercial use. Jezierski took a skeptical view of shale gas deposit estimates for Poland from the US Energy Information Administration: As Chief Geologist of Poland and a government official, my responsibility is to know about the extent of our shale gas deposits, and I approach the [EIA] estimates with caution. Whether the numbers check out will not be known until next year. Given the scope of investment needed and the problems that go with it, until then the gas community in Poland and the Polish government will be jockeying for pole position in the anticipated shale gas boom.
Energy for the Poland - US relations...
Tomasz wiok
Shale gas aside, cooperation in the energy sector between Poland and the US is an important part of building transatlantic relations. According to US Ambassador to Poland Lee Feinstein (pictured), the two countries collaborate well beyond shale gas. In our approach to energy, the US and Poland have a lot in common, Feinstein said recently. In just over a year our governments have signed three agreements on energy cooperation, including an agreement on green energy and efficient energy cooperation. Our two countries cooperate in respect to their large coal resources in developing new technologies that would allow them to burn coal more cleanly. Polish and US scientists are working together on ways to increase the efficiency in coal-fired power plants and on carbon capture and storage. We are working together on renewable energy, including wind energy, where the US is one of the largest investors in Poland. The US Environmental Protection Agency and the Polish Ministry of the Environment are cooperating on biomass, including methane recovery, and our nuclear agencies are working together cooperatively as Poland works on a new regulatory structure to support the generation of nuclear power. In our comprehensive approach to our energy needs, our countries can show others how GDP can grow even as carbon emissions diminish.
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MONTHLY MEETING: Market regulation
Peter Kay, AmCham Board Member, and Wojciech Wiewirowski, Inspector General for Personal Data Protection
Learning from each other
issues with the us The US does not have any general data protection law on the federal level. America prefers an industry approach to data protection legislation, which relies on a combination of government regulation and self-regulation, rather than government regulation alone. But this means that the EU considers the US to be a country without adequate laws. When it comes to personal data protection, the EU views the US as anarchy and gives it as much credibility as Vietnam or Uganda, Wiewirowski said. He noted that, unlike in Poland, the US allows companies to decide on their own whether personal data they hold will be accessible by thirdparty agencies, such as law enforcement. He said a number of telecommunications companies in the US allow the Department of Homeland Security access to personal data of their clients. Those telecoms act on patriotic principles to help law enforcement authorities, Wiewirowski saidsomething their counterparts in Poland are legally unable to do. Another problem for US companies in Poland is that before they may transfer out the personal data of their customers or potential customers, they have to obtain a per-
mit from GIODO to do so. Only multinationals that apply EU-compatible data protection regimes across their organizational structures can obtain a permit. But once the permit is grantedwhich means that their corporate standards for personal data protection have been recognized by GIODO they have to re-apply before each new transfer. Viewed from the US perspective, this is a very irksome regulation: US companies who are present in the EU have to apply individually in each of the EU countries they do business in for permission to have their databases transmitted to the US for further processing. Wiewirowski noted, however, that once a company obtains a permit from GIODO, reissuing the permit is a much simpler and shorter process. Wiewirowski looks forward to a time when data protection regulations in the EU and the US will be compatible. He said that prominent senators in the US have been voicing the need to have federal-level regulations in the US. If this happens, and the regulations are compatible with EU regulations, business between the US and the EU will only benefit.
Meet the speaker
Tomasz wiok
Wojciech Wiewirowski was appointed as Inspector General for Personal Data Protection by the Polish Parliament in 2010. A 1995 law graduate of the University of Gdask, he earned a PhD in constitutional law in 2000. Following an academic career, he was hired by the Ministry of Interior and Administration in 2008 to work on e-government and information society issues. In 2010 he moved to the Ministry of Culture and National Heritage to serve as a member of the archive council. His areas of interest include Polish and European IT law, data processing and security, retrieval systems for legal information, and computerization of the public administration.
Narrowing the differences in data protection between the EU and the US will be good for business on both sides of the pond
of the purpose for which they process the data, and relevancy of the data collected to the purpose for which they are stored and processed. The transparency principle provides that an individual whose personal data are stored and processed by a companythe data subjectmust be informed by the company that his or her data are processed. The controller must provide its name and address to the data subject and explain why the data are being stored and processed and who will receive the data. Even then, the data may be processed only after the data subject has given his or her consent. The data subject has the right to access all data processed about him or her. The data subject also has the right to demand correction, deletion or blocking of data that are incomplete, inaccurate, or not being processed in compliance with data protection rules. The legitimacy principle provides that personal data may be processed only for proper purposes. The purpose for processing the data must be provided by the company that processes the data. The legitimacy principle also prohibits controllers from collecting personal data that are not relevant to the purpose stated by the controller. Personal data may be processed only as appropriate and relevant to the stated purpose, and only to the extent necessary to achieve the purpose. Data must also be accurate and kept upto-date. Controllers are under an obligation to erase inaccurate data so they are not processed further. Data must also be stored in a manner preventing identication of data subjects beyond the period required by the controller to achieve the purpose. In the case of direct marketing, data subjects may object at any time to processing of their personal data. With such a restrictive approach to data protection, the EU generally prohibits institutions, agencies and companies that store and process personal data of individuals from transferring the data to countries outside of the European Unionincluding the US.
he divergent approaches to data protection in Poland and the US were on the agenda of the AmCham Monthly Breakfast Meeting in May, with guest speaker Wojciech Wiewirowski, Inspector General for Personal Data Protection, who heads Polands data protection authority, the General Inspectorate for Personal Data Protection (GIODO). Wiewirowski explained that GIODO is an independent agency charged with maintaining legal standards for personal data protection in Poland, in line with the standards imposed on member states by the Data Protection Directive and other EU laws. the eu way In principle, companies must not collect or process personal data in the EU except when they meet the criteria laid down by the Data Protection Directive (95/46/EC). This means that administrators of personal data, referred to in the directive as controllers, may operate their databases only after they meet certain conditions for transparency, legitimacy
16
FOCUS: Workplace skills
FOCUS: Computer forensics and data recovery
University graduates in Poland are not practically prepared to take up careers
AmCham Academy
he rallying cry of entrepreneurs and businesses everywhere is People are our most important asset! This is immediately followed by, Its so hard to nd good staff. And Poland is no exception. During the last few years, southern Poland, and in particular Krakw, has evolved into an important center for the IT and business process outsourcing markets. Hundreds of international companies, among them dozens of AmCham member companies, including Motorola, Sabre, IBM, International Paper, Capgemini, Amway, and many more, have made major investments in Krakw and environs, employing thousands of young Polish university graduates. As this phenomenon unfolded, Krakws nest universities reacted as best they could to supply the burgeoning Polish Silicon Valley with fresh talent. Private universities ourished, weekend and part-time programs expanded, and new IT and business programs sprouted across the academic landscape. Supply rapidly rose to meet demand. But a problem became evident from the very beginning. The universities, although very good at teaching the technical disciplines or the core of the chosen academic curriculum, were producing graduates who were not workplace-ready. Soft skills and leadership skills were a virtually forgotten and abandoned science. Over the years, AmCham member companies have been pointing out that the educational system was not preparing graduates to work in the business environment. Whether investors hire engineers to work on IT design
AmCham will support training programs to enhance practical work skills of selected staff from member companies
projects or manufacturing applications, or language specialists to work in customer service centers, much time, effort and resources must be spent on preparing the young people to perform their duties. Almost across the board, young people beginning their careers displayed problems in basic communication, time management, working in teams, work planning, and project management. Even though they are very capable, willing to work and quite dedicated, the majority of them had no idea how to move upwards in the corporate structure. On top of this, identifying and training leaders who could lead projects and teams of people, and then move upwards into the executive ranks, seems to be a major challenge for many employers. Among AmCham members, investors voiced their concerns about these educational shortcomings. After months of discussions among a handful of American companies in the south of Poland, an idea arose to actually get involved and supplement the educational system by cooperating directly with universities.
practical approach The idea for AmCham Academy was born. The concept is to provide AmCham member companies hand-picked junior and mid-level employees a postgraduate supplementary program that focuses on strengthening business soft skills such as communications. After a year of preparations, we are ready to launch the rst pioneering projects in close cooperation with the Jagiellonian University and AGH University of Science and Technol-
ogy. The programs are scheduled to launch in January 2012. AmCham Academy 1 is a postgraduate two-semester program at Jagiellonian based on a curriculum designed and prepared by participating AmCham member companies, with input and involvement from the universities. The rst program is prepared by companies representing the manufacturing sector and addressed to young professionals with 3-5 years of professional experience. Most students will be recruited among AmCham member companies in the manufacturing sector. General Motors Poland (Opel) is an important partner in the creation of this program. The second program, in cooperation with AGH, will focus on more junior IT, customer service and BPO employees. AmCham member companies we are in contact with have expressed a strong interest in such a program and are already playing an important role in the early development stage of the program. The programs will be conducted by a combination of university professors and AmCham member company executives, who will come and teach chosen subjects at the university. It will also include a number of eld trips to AmCham member companies, where practical workshops will be conducted. The prepared model is not only aimed at supplementing the knowledge of young professionals, but will also encourage the professors to get involved with selected companies in a way that enables them to understand the business reality and its requirements betterin effect giving Polish professors exposure to industry, which should have a positive spillover effect on the Polish student body at large. We are optimistic that this project, though small-scale at rst, will be carefully designed and tailored to the specic needs of our member companies and form the basis for scaling in the future. Starting this month, we ask AmCham member companies to give us your thoughts and feedback on the program that we have prepared and plan to launch. We hope that you will nd the project interesting and that you will nd the time to share your experiences and your comments. Should you like to share your expertise directly or be a part of this initiative, we will gladly welcome you among the founding project participants. For more information, please contact monika.pilarska@amcham.pl John Lynch
Supporting IT and justice

kroll ontrack has a state-of-the-art laboratory in katowice. What does it take to retrieve computer data? The process of data retrieval itself is relatively simple. A malfunctioning data carrier undergoes data-retrieval assessment in our lab. At this point we check what is wrong with the carrier, specify the best technology to use to retrieve the data and run a report which lists the les that can be recovered. Based on this our clients decide whether they want to have the data recovered or not. You can recover computer data from nearly all types of data carriers, but what limits the ability is your knowledge and experience and the tools that you can resort to. This is why for the last 25 years our company has been developing and improving our data-retrieving tools to face even the most demanding challenges. how effective is this approach, and what is your processing capacity? Our labs effective rate of data retrieval is about 80%, which means that in 80 cases out of 100 we can recover the data, no matter how great the damage to the carrier is. We are capable of dealing with 800 cases a month in Poland. how about computer forensics? can you produce evidence of computer crime that will be recognized by courts in poland? Many people associate computer forensics with ferreting out cases of computer crime, while in fact it is a method of producing evidence of crimes and abuses that are not specically limited to the computer world. Our life today is very much connected to digital devices. If those devices were linked to a crime, we can track it. Today the evidence of a crime is not necessarily ngerprints, but digital ngerprints. That is the difference. What kind of digital ngerprints do we leave behind? There are plenty of digital ngerprints. Emails, text messages and Internet posts all leave tracks. Some advanced technologies let us nd out the physical location of the person who left the track at a certain time. Most of us do not realize that we all cast an electronic shadow which can be traced even several years after it was produced. is computer forensics popular in poland? It is not as widespread in Poland as in other
Tomasz Szczerbina from AmCham Krakw talks with Marek Suczyk, managing director of the Polish subsidiary of Kroll Ontrack, a data retrieval and computer forensic specialist, about the companys accomplishments and challenges.it is worth software simply understand that
more to buy the software, which is relatively inexpensive, than deal with the nancial consequences of losing the archives. What is also important is that the software is designed in such a way that it can be efciently used by people who do not have any IT background.
Western countries. For 6 years we have been pioneering computer forensics in Poland, and I have to say I can tell the difference between now and 6 years ago. Companies are increasingly aware of their dependency on electronic data90% of documents today are electronicand realize they cannot afford losing the data under any circumstances. Imagine a company that has lost some critical documents, such as customer data or nancial data. That may have dire nancial consequences, and in the worstcase scenario may force the company into bankruptcy. Such massive data losses are usually no accident, but are often caused by malicious competition or acts of vengeance by former employees. This is when forensic investigation comes into play. Our investigators will nd out how critical computer data were siphoned out of the system and who was capable of doing it. After the electronic evidence is secured, it is used in the subsequent legal proceedings, often in court. Your company offers software that lets users delete data but also recover data. how can this software be used safely? Our programs Easy Recovery and Ontrack Eraser can be used anytime the data carrier works properly. In case of physical malfunction, the carrier has to be delivered to our lab for a checkup. We also offer another piece of software, Power Controls, which enables retrieval of data from e-mail programs. This and Easy Recovery allow for fast recovery of data that have been deleted. This is especially important for companies that have professional policies for their digital data archives. Companies that use this
What was the most spectacular data retrieval performed by kroll ontrack? One of the biggest challenges that we had was retrieving data from the wreckage of the Columbia space shuttle in 2003. Despite the extent of the damage, our lab managed to recover data that carried the information that was most critical for understanding the chain of events that led to the catastrophe, which in turn enabled NASA to draw conclusions on how to prevent those events from recurring in future ights. But different cases pose different challenges for our labs. Every year we publish a list of the 10 most challenging cases of data retrieval. We managed to get data back from computers that were lying on the seabed, and even computers that were almost completely incinerated, among other cases. the main ofce of kroll ontrack in poland is in katowice, the capital of upper silesia. many times you have appeared as strong proponents of investing in upper silesia. What are the pros of upper silesia for investors in advanced it and r&d centers? We advocate investing in Upper Silesia no matter the business context of our contacts with other companies. Our own case is the best evidence for this proposition. The Kroll Ontrack lab in Katowice is our companys largest lab outside of the US. Our IT forensics lab, also in Katowice, is the largest such lab in Central & Eastern Europe. What makes Katowice and Upper Silesia attractive for investors is the excellent technical schools in the region, whose graduates guarantee a stable inow of fresh talent to our labs. There are also many businesses here who have become our clients, which also helps. But what is especially important for investors is the pro-business attitude that the local administration takes toward IT companies. Ever since we stepped foot in Katowice, it has been extremely supportive and helpful. Upper Silesia is a region in which high tech is becoming an important part of the economy. We hope this trend will continue in the years to come.
The author is a member of the AmCham Board of Directors
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AMERICAN INVESTOR
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FOCUS: Coca-Cola anniversary
Quenching peoples thirst

As Coca-Cola celebrates its 125th anniversary, American Investor's Tom wiok talks with Paul Woodward, Operations Director for Coca-Cola Northern Central Europe (Poland, Czech Republic, Slovakia and the Baltics) about the companys success in Poland and worldwide.
2011 marks the 125th anniversary of coca-cola. the year also marks 20 years of the coca-cola system in poland, which is represented by coca-cola poland services and cocacola hBc polska. how would you assess 2011 for the company in poland? 2011 is indeed a very special year for Coca-Cola. It has been 125 years since an Atlanta-based pharmacist, John S. Pemberton, created the best-known soft drink in the world, still produced based on the original, wellguarded recipe with all natural flavors. 2011 also marks the 20th anniversary of the Coca-Cola business presence in Poland. Although Coca-Cola has been officially sold in the country since 1972, we launched our operations here in 1991 and the first 18 cases of our beverages were sold in November of that year. Our system comprises two companies: Coca-Cola Poland Services, an affiliate of the Coca-Cola Company, and our bottling partner Coca-Cola HBC Polska, a subsidiary of CocaCola Hellenic. The anniversary is a perfect moment to reflect on what has been achieved so far and to look ahead into the future. We have good reasons to be optimistic. Today, both globally and in Poland, Coca-Cola is the leader of the non-alcoholic beverage market, despite a very competitive environment. In Poland we currently offer 15 brands in 150 different packages. The Coca-Cola system holds a 22.2% share of the Polish non-alcoholic beverage market in terms of value and 12.7% in terms of volume (Nielsen 2010). By the end of 2010 we held the number 1 position in the sparkling, isotonic and iced teas categories both in volume and value terms. We also have a strong posiPicture courtesy of Coca-Cola Poland Services
tion in other beverage categories, such as energy drinks (in 2010 our Burn brand held the third position in terms of volume and value), bottled water (our Kropla Beskidu is the third player on the compet-
We have had a very strong start to the year, but it is too early to judge 2011 only by the first quarter. The last two years have certainly been more difficult for the whole non-alcoholic beverages market due to the economic slowdown. Providing that no unexpected developments take place, however, we remain optimistic about the industry prospects for 2011. We are maintaining strong leadership in the market with Coca-Cola and Coke Zero, and we are very satisfied with the results of the Burn energy drink as well as Nestea and Sprite. What we can say is that we are well-prepared and looking forward to the beginning of the summer season, which is critical for any beverage producer. What key factors have contributed to the company's success in poland? Coca-Colas strategy, globally and locally, is to be a total beverage company, offering choice to consumers with a full range of products in all beverage categories, and we are on a good track to implement this objective. The companys success is built on several important elements, such as our rich and strong portfolio of highest-quality beverages, loved by consumers, excellence in marketing communications, and a very good distribution network developed by our bottling partner and reaching out to 120,000 outlets in Poland. Coca-Cola always puts a lot of attention and effort into understanding
consumers, and we are successful in doing this. Our teams anticipate what consumers want and make the relevant connections with them. We also keep innovating to satisfy everchanging consumer needs and to capture real business opportunities by, among other things, listening to consumers health and wellness needs and delivering beverage solutions that meet their expectations. We regularly expand our product portfolio across all categories, such as sparkling soft drinks, in both regular and light versions, and still drinks such as sports drinks, teas and water, as well as in juices, nectars and juice drinks. In the course of 2010 and 2011 we have launched several new beverages which have imme-
We keep innovating to satisfy everchanging consumer needs and to capture real business opportunities by listening to consumers health and wellness needs and delivering beverage solutions that meet their expectations.
diately become popular among consumers: Cappy Apple Wholefruit, produced using the unique Whole Press technology that enables consumers to satisfy more of their dietary fiber needs, Nestea Green Tea with strawberry and aloe, and Burn Tropical, the first energy drink in the market with 20% juice content. Only recently, just ahead of the sum-
mer season, we introduced a new lineup of Cappy still drinks in unique flavors of apple-mint with lemongrass and applegrapefruit with cactus. Our success is also built on the fact that we run our business sustainably, by taking our societal responsibilities very seriously. As the Coca-Cola system in Poland, we actively engage in projects targeted to the communities where we operate. We consistently promote an active, healthy lifestyle, for example by organizing the Coca-Cola Cup, the biggest and most prestigious youth football tournament in Poland, which also creates a springboard to a professional career for young football talents. In addition, we have a strong focus on environmental protection, especially water protection. For example, we conduct projects such as Rivers for Life: The Vistula, in partnership with WWF Polska, and the Kropla Beskidu Fund program. Other areas of our focus are energy management and climate protection, as well as sustainable packaging and recycling. We work with the largest waste management organization in Poland, Rekopol, which helps us to ensure recovery and recycling of packaging at all our mass marketing events like the Coke Live Music Festival. These actions are also accompanied by a broad educational campaign addressed especially to youth. I also have to stress that among the most important success factors for the Coca-Cola system are our consumers, who love Coca-Cola products, and our committed system employees. The CocaCola 125th anniversary is a perfect occasion to thank them all for their great contribution to the outstanding success of Coca-Cola in Poland. What are the corporate culture and workplace culture like at coca-cola poland services? The Coca-Cola brand is a symbol of joy, optimism, refreshment and sharing happy moments with family and friends. This is also the atmosphere we try to create in our workplace. We do our best to make our employees feel inspired when at work, able to make a difference and proud to be a part of Coca-Cola. We also live by certain values which are essential to building our success in the future: leadership, which we define as the courage to shape a better future; collaboration, which is about leveraging collective genius, a critical factor for success in the modern world; and being authentic, accountable and passionate about ones work. We strive to create a diverse workplace which is as inclusive as our brands. And last but not least, we are passionate about maintaining the highest standards of quality, which means that what we do, we do well. Our consumers quite rightly expect and demand this of us!
In our global Mission, Vision and Values, we commit ourselves to be a leader in corporate responsibility and aspire to be among the worlds most respected companies. This is usually the part that makes employees the most proud of their company. It is why we also promote volunteerism among employees and create opportunities for them to actively engage in the community and the social projects the Coca-Cola system engages in. Every year dozens of our people volunteer to participate in our environmental projects, like trees planting, waste collection, our water programs, or charity initiatives like supporting orphanages and non-governmental organizations. The company does its best to support employees in those voluntary efforts. What can you say about the company's plans and prospects for growth in 2011 and beyond? Current and anticipated global changes present us with a unique opportunity to significantly strengthen our business for the long-term. Our global 2020 Vision envisages doubling our business by 2020 both our system revenues and the number of servings, to over 3 billion a dayand to be No. 1 in the non-alcoholic ready-todrink sector in every market and every category that is of value to us. In this context we see Poland as a market of opportunities with still high potential. Per capita consumption of non-alcoholic ready-to-drink beverages here is lower than other EU countries and is expected to grow ahead of many other markets over the next 5 to 10 years. Being the 6th-biggest country in the EU in terms of population, Poland is one of the key priority markets for the Coca-Cola system in Europe. In 2010 Poland ranked 6th in terms of volume in our Coca-Cola European group business (after Germany, Spain, the UK, France and Italy). We have great programs and assets in place to realize our vision. In 2012 Poland will co-host the UEFA Euro 2012 championship, and Coca-Cola Poland is immensely proud to be a top partner. This creates a great opportunity for our business development in Poland, and as a UEFA top partner we have exclusive rights to sell non-alcoholic beverages during the event. We also have unique programs like Flag Bearers and Ultimate Access that we want to offer to consumers as a once-in-a-lifetime opportunity. Sports events of such relevance always create a great platform to connect with millions of our consumers who share the passion of, in this case, football, the most popular sport in the world and in Poland. We believe that the European Football Championship will positively contribute to our business development in Poland in 2011 and beyond.
itive water market in terms of value and fourth in terms of volume). Finally, we are developing well in the juice, nectars and juice drinks category, with our Cappy brand, where we hold the fourth position in terms of value. This all creates strong fundamentals for growth in 2011.
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AMERICAN INVESTOR
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EXPERT: Administrative law
EXPERT: Mining law
Less bureaucracy
Cases should now be handled more smoothly by administrative authorities
does not define delay precisely, so to determine whether the proceedings before the authority have continued longer than necessary to handle the matter, the court will consider the complexity of the case, both factual and legal, as well as the conduct of the parties. If the complaint is upheld, the court will order the administrative authority to issue a decision or take other action by a specific deadline. If the authority fails to comply, the party may seek a fine against the authority. administrative review should decide the merits The amendment limits the ability of administrative review bodies to remand cases for reconsideration by the original authority. Vacating a decision issued in the first instance and remanding the case for reconsideration was supposed to be a minor exception to the rule that an administrative authority reviewing a decision by the original authority should decide the merits of the matter. In practice, administrative review authorities began to issue such decisions as a matter of course, avoiding an examination of the merits of the case and thus extending the proceedings. The amendment has limited the possibility of vacating a decision and remanding the matter to the authority of first instance to situations where the decision was issued in breach of procedural regulations and the issues requiring clarification have a material impact on the outcome of the case. If, however, the regulations provide for issuance of a decision on an official form, including by means of electronic communication, and there are grounds to amend the decision, the appellate body should now vacate the decision and order the authority of first instance to issue a particular decision. attorney or agent for service Another important change concerns service of papers on a party with its registered office outside of Poland. As in civil procedure, the party should now appoint an attorney in Poland or an agent for service. Otherwise, papers addressed to the party will now be left in the case file and deemed served. notice by telephone In urgent matters it is now possible to summon a party to participate in an operation undertaken by the authority or to provide explanations or testimony by telephone. reopening final decisions Another amendment concerns final decisions, which previously could be amended or set aside either by the authority that originally issued the decision or by an authority at a higher level (acting in this case as an authority of first instance). Now a final decision may be amended or set aside only by the authority that issued the decision. If a party acquired a right through the decision, however, consent of the party is also required. The Parliament found that the previous approach led to pointless competition between authorities or unnecessary disputes over jurisdiction. Frivolous challenges The amendment introduced a solution seeking to put a stop to the practice of repeated challenges in a matter that the authority has already resolved, when the facts have not changed. Now, if a petition challenging an administrative decision has been considered and held to be groundless, and the groundlessness is indicated in the response to the petition, but the party nonetheless renews the petition without demonstrating any new circumstances, the authority may uphold its position without notifying the party, but merely enter a relevant notation in the case file. In short, the amendment to the Administrative Procedure Code closes several gaps in the procedure and provides new solutions to expedite the resolution of administrative matters. It remains to be seen how these solutions work in practice.
Seek and ye shall mine

Mining companies have an incentive to explore shale gas and tight deposits when their right to extract what they find is legally protected
lowing a procedure in which all interested entities were entitled to submit their applications on the basis of specified criteria. The Hydrocarbons Licensing Directive provides for certain exceptions to the obligation to ensure that proceedings are By Ewa Rutkowska-Subocz non-discriminatory and transattorney-at-law, counsel parent. It also appears that purat Salans law rm suant to the Hydrocarbons Licensing Directive, there is no necessity to organize tenders when the holder of one authorization (to explore) is seeking he continual decline in usufruct agreement and holds the another authorization (to exconventional natural gas proper concession. ploit), when holding the first resources has resulted in Should the UGR exploration authorization implies a right to the growing importance of exprove to be successful, the inthe second one. ploration and exploitation of un- vestor may decide to move on to These rules were impleconventional gas resources the exploitation stage, in which mented in Polish law in 2001. (UGR), including natural gas case it must then conclude a min- Thus, at present, the Geological trapped in shale deposits (shale ing exploitation usufruct agreeand Mining Law requires a tengas) and natural gas locked in ment with the State Treasury and der before conclusion of a mintight formations (tight gas). obtain an exploitation concession. ing usufruct agreement. The Estimates show that Poland Naturally, the safety of the tran- tender will not take place if an may have huge unconventional exception in the Geological and natural gas depositsprobably Mining Law applies. Nor will a trapped in a band extending tender be held if the entity that from the northwest to the identified and documented the southeast of the country. Alnatural gas reserve under an exthough work to identify these ploration mining usufruct deposits is still at a preliminary agreement and exploration constage, there is already huge incession, and prepared the pertiterest from investors, particunent geological documentation, larly overseas investors who posseeks an exploitation mining sess the necessary knowhow and usufruct. It has priority over all mining technologies. other entities to conclude a mining usufruct agreement legal requirements for exwithin two years after the geoploring and exploiting uGr logical administrative authority The Polish Geological and Minconfirms receipt of the geologiing Law currently in force does cal documentation. Because the not lay down any special procemining usufruct is connected to dures for exploration and exthe concession, priority to obploitation of UGR, nor does it tain a mining usufruct agreecontain any provisions relating ment de facto also gives priority to the specifics of shale or tight sition from exploration to exin obtaining a concession. gas exploration and exploitation. ploitation is crucial for the inThe rights of an entity enThe procedure is therefore vestor. Under the current law, ex- gaged in exploration of hydrolikely to be similar to that for ecution of a mining usufruct carbon reserves are also seother hydrocarbons. agreement for exploitation of hycured under the Geological and First of all, an investor interdrocarbons, as a rule, can only Mining Law in another way. If it ested in exploring an unconven- take place after a public tender. has incurred costs of performtional gas deposit must conThis obligatory public tender for ing geological works under an clude a mining exploration mining hydrocarbons was introexploration concession, it has usufruct agreement with the duced in order to implement the an exclusive right to use the geState Treasury, granting the Hydrocarbons Licensing Directive ological information for purright to explore a site owned by (94/22/EC) into Polish law. The poses of its exploitation activity, the State Treasury. Then the in- aim of the Hydrocarbons Licens- until five years after expiration vestor must obtain an exploing Directive is to ensure that of the exploration concession. ration concession (enabling the there is no discrimination in Since a motion for an exploitainvestor to pursue the specific prospecting, exploring and protion concession has to be acactivity within the designated ducing hydrocarbons. The mem- companied by evidence of the site), without which the mining ber states were required to take right to use geological docuusufruct is invalid. Exploration the necessary measures in order mentation for exploitation purmay only be conducted by an en- to ensure that authorizations for poses, only an entity in possestity that is both a party to the these activities were granted folsion of that right may apply for an exploitation concession. anticipated changes This legal framework is due to change in the nearest future. A proposal to replace the Geological and Mining Law is now in the legislative pipeline. (The latest version, as approved by the lower house of Parliament on April 28, 2011, is available at http://orka.sejm.gov.pl/proc6.nsf /opisy/1696.htm.) It repeats to a certain extent the structure and wording of the current law, but would also make a number of changes in the system. Some of these amendments were necessary because the European Commission accused Poland of improper implementation of the Hydrocarbons Licensing Directive. Most importantly, the EC claimed that Poland improperly introduced the tender procedure before establishment of a mining usufruct agreement; under the EC interpretation, the tender procedure should precede granting of the concession. Following this interpretation, an obligatory tender procedure before issuance of a concession for exploration and exploitation of hydrocarbons is included in the proposed new law. The proposal also provides that the entity that explored a deposit is entitled to priority for five years in obtaining an exploitation mining usufruct for that deposit. Another provision in the proposal that would secure the relatively safe transition from exploration to exploitation enables an entity that explored a hydrocarbon deposit to apply for an exploitation concession. Since the entity that incurred the costs of the geological works during the exploration stage obtains an exclusive right to use the information for five years following expiration of the exploration concession, in practice no one else will be entitled to exploit the given deposit. This gives reason to hope that when the new Geological and Mining Law is enacted, entities that explore hydrocarbon deposits will be secured a smooth transition from exploration to exploitation.
By Agnieszka Kocon legal adviser, aszczuk & Partners
Amendments to the Polish Administrative Procedure Code entered into force on April 11, 2011, with the goal of streamlining administrative procedure and closing gaps in the law. Among the new solutions, the possibility of filing a complaint for delay of proceedings handled by an administrative authority and the changes concerning issuance of a decision by an administrative review authority deserve particular attention. new complaint for delay in administrative proceedings The amendment introduced a
means for parties to file a complaint with the administrative court against delay in proceedings before a public administrative authority. Before it was only possible to file a complaint for inaction of an authority, i.e. failure to resolve a matter by the applicable deadline, but in practice that did not solve the problem because the authorities would often extend the deadline without any good reason so that technically they were not inactive. Now, a complaint for delay may be filed before the deadline for resolving the matter. The complaint is heard by the administrative court. The code
The Polish Geological and Mining Law doesn't lay down any special procedures for exploration and exploitation of unconventional gas resources.
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AMERICAN INVESTOR
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EVENT: Monthly Meeting
Getting personal with data protection czar
ww.amcham.pl
Download this magazine!
American Investor is available in full as a pdf for download from the www.amcham.pl website. Go to "About Us" in the horizontal menu, and choose American Investor Magazine from the pop-up menu. You can download past issues of American Investor dating back to October 2010.
n May AmCham members had a great opportunity to discuss personal data protection issues with the guest speaker, Wojciech Wiewirowski, the Inspector General for Personal Data Protection, who is in charge of enforcing data protection compliance in Poland. Our guest was eager to answer even the most complex questions from lawyers in AmCham member rms.
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American Investor Your ultimate source to AmCham Poland

Call to nd out about advertising opportunities +48-22-520-5993
1. Guest speaker Wojciech Wiewirowski, GIODO; Peter Kay, AmCham Board Member; Marzena Drela, AmCham Deputy Director. 2. Adam Bergmann; Wojciech Wiewirowski. 3. Iwona Waach, Iron Mountain; Pawe Makowski, GIODO. 4. Elbieta Raczkowska, Fiserv. 5. Thomas Kolaja, AmCham Board Member. 6. Andrzej Pawelczak, Animex; Cezary Krasodomski, Cisco. 7. Larry Kraut, American School of Warsaw; Chris Hutchinson, Curb-Tec Europe. 8. Sylwia Stepaniuk, Salans. 9. Piotr Drobek, GIODO; Piotr Mercik, BMW. 10. Marta Wysokiska, K&L Gates.
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AMERICAN INVESTOR
JUNE 2011
JUNE 2011
AMERICAN INVESTOR
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EVENT: Krakw
EVENT: Business Mixer Warsaw
Walking the talk with Woodward Governor
Pink Flamingo welcomes AmCham

ink Flamingo, an Americanathemed restaurant in Warsaw, was the venue of the AmCham Business Mixer in May. The event was a great opportunity for AmCham members and friends to interface over drinks and food and good American music. Other attractions included a traditional AmCham raffle ... not to mention a truck parked in front of the Pink Flamingo that, according to the owners, appeared in the movie Brokeback Mountain.
mCham Krakw and member company Woodward Governor Poland organized a tour of the Woodward production facility near Krakw for the heads of AmCham member companies from southern Poland. Along with showcasing Woodwards achievements, the event was also a good occasion for members to have face time with Maopolska Governor Stanisaw Kracik and US Consul General to Krakw Allen Greenberg.
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1. Allen Greenberg, US Consul General to Krakw; Stanisaw Kracik, Governor of Maopolska; Dominik Kania, Woodward Governor. 2. Allen Greenberg; Jonathan Koehler, US Consulate General in Krakw; John Lynch, AmCham Board Member; Dorota Adamska, BP Europa; Magorzata Jamrozik, Bartek Grelewski, CH2MHill. 3. Witold Bator, Coca-Cola Niepoomice; Magorzata Jamrozik; Bartek Grelewski; Allen Greenberg. 4. Eric van der Schilden, IBM; Stanisaw Kracik; Monika Pilarska, AmCham Krakw Branch Director; Bartek Grelewski; Allen Greenberg; Dominik Wrbel, Skalski SA; Witold Bator; Marek Rajca, Silgan White Cap; Dorota Adamska. 5. Woodward Governor plant in Niepoomice. 6. Marek Rajca; Stanisaw Kracik. 7. Pawe Pocigiel, Woodward Governor; 8. John Lynch. 9. Magorzata Jamrozik; Bartek Grelewski. 10. Monika Pilarska; Jonathan Koehler. 11. Stanisaw Kracik; Dominik Kania.
1. Tomasz Lisiecki, Optimax; Jerzy Napieraa-Nowak, Pink Flamingo Restaurant & Bar; Roman Rewald, AmCham. 2. Members of the Warsaw Werewolves American football team. 3. Witold abiski; Roman Rewald; Jerzy Kleniewski, European Parliament. 4. Anna Wodarczyk; Beata Bednarska, FedEx. 5. Marzena Drela, AmCham; Robert Wieczorek, Pink Flamingo Restaurant & Bar. 6. Jerzy Napieraa-Nowak; Anita Kowalska, AmCham. 7. Katarzyna Rudnik-Krzeska, Katarzyna Stepowicz, InterContinental Warsaw. 8. Randy Mott, Ceeres; Christopher Smith. 9. Kitty van Kessel; Andrzej Wrbel. 10. Wyoming or Warsaw?
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JUNE 2011
JUNE 2011
AMERICAN INVESTOR
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SUMMARIES: in Polish
W tym numerze:
COVER STORY
AmCham Member to Member
Zanim rozpocznie si komercyjna eksploatacja gazu upkowego, Polska musi upora si z problemami zwizanymi z powstaniem zupenie nowej gazi przemysu, str. 12
MONTHLY MEETING
uczenie si od siebie Zmniejszenie rnic w systemach ochrony danych osobowych w USA i Europie bdzie z korzyci dla biznesu po obu stronach Atlantyku, str. 16
RELACJE ZDJCIOWE
Spotkanie Miesiczne w Warszawie, str. 25 Spotkanie czonkw w firmie Woodward Governor, str. 26 Biznes Mikser w warszawskim Pink Falmingo, str. 27
FOCUS
Gotowo do pracy AmCham w kooperacji z Uniwersytetem Jagielloskim rozpocznie program doskonalenia praktycznych umiejtnoi niezbdnych w miejscu pracy, dla modych pracownikw firm czonkowskich, str. 18 Wspomagajc it i wymiar sprawiedliwoci Tomasz Szczerbina z krakowskiego oddziau Izby rozmawia z dyrektorem zarzdzajacym firm Kroll Ontack, Markiem Suczykiem, na temat osigni firmy oraz wywwa, ktre przed ni stoj, str. 19 zaspakajanie pragnienia Tomasz wiok z American Investor rozmawia z dyrektorem operacyjnym Coca-Cola Northern Central Europe, Paulem Woodwardem, na temat sukcesw firmy w Polsce i na wiecie, str. 20
DZIAY STAE
Briefing redakcyjny, str. 2 Informacje o firmach czonkowskich Izby, str. 5 Informacje o dziaalnoci Komitetw Izby, str. 9 Przewodnik po Komitetach Izby, str. 11
EKSPERCI
mniejsza biurokrajca Wadze administracyjn mog rozpatrywa sprawy szybciej i lepiej, str. 22 szukajcie a znajdziecie firmy poszukujce z gazu upkowego i konwencjonalnego korzystaj z ochrony ich praw do eksploatacji z, ktre odkryy, str. 23
Were all in this together
American Chamber of Commerce in Poland 2011. All rights reserved.
American Investor to oficjalny magazyn Amerykaskiej Izby Handlowej w Polsce. Magazyn reprezentuje gos rodowisk midzynarodowego biznesu w Polsce. Celem magazynu jest dostarczanie czonkom Izby i innym czytelnikom aktualnych informacji na temat dziaalnoci Izby a take trendw biznesowych i polityce spoecznej firm. listy do rekacji prosimy wysya na adres poczty elektronicznej: tomasz.cwiok@amcham.pl
28

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Investor

Vol. XXI, No. 6 ISSN 1506-3240

American Chamber of Commerce in Poland 2011

Monthly Meeting: Wojciech Wiewirowski

A long row to hoe

before Poland sees a boom in indigenous shale gas

Investor COVER STORY:

The American Chamber of Commerce in Poland

Your online guide to AmCham activities

Download this magazine!

4th of July Picnic Sponsorship Outline

A long row to hoe

before Poland sees a boom in indigenous shale gas, page 12.

Other useful sites

FROM THE EDITOR

The American Chamber of Commerce in Poland

Joseph Wancer Deloitte

Judith Y. Gliniecki Wierzbowski Eversheds

richard lada Telesto

Good reasons to work together

peter kaY KPMG Polska

stan popoW Finacorp

MEMBERS Tony Housh

Roman Rewald Anna Sienko

Weil, Gotshal & Manges

Special subscription offer for non-member companies

News from AmCham and its members

Dorota Dabrowski Marzena Drela

Deputy Director marzena.drela@amcham.pl

Events & Media Manager anita.kowalska@amcham.pl

Office Manager robert.kruszyna@amcham.pl

Membership and Committees Coordinator barbara.pocialik@amcham.pl

Barbara Pocialik-Malinowska Marta Pawlak

Research and Policy Coordinator marta.pawlak@amcham.pl

Project Assistant robert.chomik@amcham.pl

Baker & McKenzie

Members on the move

AmCham Policy Watch

American Chamber of Commerce in Poland 2011. All rights reserved.

Your subscription will be activated with the next months issue!

AMERICAN INVESTOR JUNE 2011

News from AmCham and its members

AmCham has moved to the 19th oor

Mamaison Hotel Le Regina Warsaw

Cushman & Wakefield

AMERICAN INVESTOR JUNE 2011

News from AmCham and its members

Intelligence from AmCham and its committees

Small & Medium-Sized Enterprises Committee

Borrowers should not overlook loan guarantee institutions

Facilitating business in the region

AMERICAN INVESTOR JUNE 2011

For the AmCham Guide to Committees

Intelligence from AmCham and its committees

Political Discussion Forum

Corporate Social Responsibility

Looking further ahead

Defense & Security

Intellectual Property Rights

Small & Medium-Sized Enterprises

Employee & Labor Relations

Marketing & Communications

Energy & Environment

European Union Affairs