FDI falls to USD 6 billion in 2005

Preliminary data prove that USD 6 billion of foreign direct investment flowed into Poland in 2005. However, last year many important projects were launched, which will bring fruits in the future.

According to “Puls Biznesu” unofficial sources, USD 6 billion of FDI was invested in Poland last year.

“According to our cautious estimates, the level of investment was close to this level”, Marcin Kaszuba, the deputy CEO of the Polish investment agency PAIIZ commented.

This would be the worst result in years. In 2002, FDI amounted to USD 6064m, a year later they grew to USD 6420m. Only in 1997 they did not exceed the level of USD 6 billion. Marcin Kaszuba warned however, that the data is very preliminary and credible data will be published in the second quarter of the year.

Expert have no doubts who is to blame for the situation.

“Poland is not trying to become attractive to investors. Conflicts with Eureko, problems over the merger of Pekao and Bank BPH, controversial ideas of the former Minister of Finance who said that investors should be divided into different categories, coalition partners who fight against foreign capital, all this discourages from investing in Poland”, Bohdan Wyznikiwicz, the head of the Gdansk Institute for Market Economics commented.

Poor results may be an effect of too few agreements signed in the previous years. In 2005, however, many big investors entered Poland, including MAN, Michelin, Volvo, IBM, HP, Delphi and – last but not least – LG Philips LCD. The latter company was followed by six subcontractors from the LG group, and LG Electronics. Altogether 9 plants will be built by the Korean group worth EUR 1.1 billion. 11,500 jobs will be created.

Source: Puls Biznesu/APA

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U.S. To Provide Poland With Five Used C-130Es

The United States will provide Poland from 2007 with five used Hercules C-130E transport planes made by Lockheed Martin, the Polish defense ministry said Jan. 12.

”The first plane will be delivered to Poland at the end of 2007 and the last in August 2009,” the ministry said in a statement.

The ministry did not specify the cost of the deal but it added that Poland would receive non-returnable aid of $82.9 million (68.9 million euros) as part of the transaction.

The Hercules C-130E aircraft are a “provisional solution, pending the acquisition of a definitive transport plane on the American or European market”, the statement added.

Designed to transport troops, vehicles or military hardware, the Hercules C-130E can take off from short landing strips. It can carry 128 soldiers, 92 paratroopers or 17 tons of cargo.

Source: DefenceNews .com

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Prestwick launches £20 flights to Poland

NEW budget flights from Prestwick Airport to Poland were launched today.

One-way fares will be as low as £20, including taxes.

Direct flights to the capital city of Warsaw and the new Polish place-to-be - hip seaside town Gdansk - will be available for the first time.

It's a major coup for the Ayrshire airport and is the first move into Scotland by Budapest-based Wizz Air.

Flights to Warsaw and the ancient northern town of Gdansk - where the Solidarity movement was born in the shipyards - will begin on March 28.

Gdansk is tipped to take over from Krakow as the new Eastern European holiday hotspot.

It's a stylish, artistic town with cobbled streets, fine restaurants and trendy bars.

Wizz Air - which flies to 27 destinations across Europe - currently operates from Liverpool and Luton airports.

It's the biggest low-cost airline in central and eastern Europe and its move into Scotland could open up a new network of travel opportunities for Scots.

Source: Evening Times

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Centralwings' bargains to Poland

Centralwings, LOT Polish Airlines’ low-cost offshoot, has flights to cities in Poland from £1 (or €1 from Ireland).

Fly to Warsaw, the capital, from Shannon, Edinburgh and London Gatwick, or to Kracow from London Gatwick.

Flights to Wroclaw and Katowice depart from Dublin Airport.

These £1 / €1 fares are one-way and exclude taxes and charges.

Book between Monday, January 16 and 22, but travel between Monday, January 16 and Wednesday, February 15.

Source: Chepaflights

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Zloty may remain strong for longer

PM Kazimierz Marcinkiewicz worries that strong zloty may endanger economic growth. Yesterday, he talked about it with the Ministry of Finance and said the ministry would take measures not to let zloty become too strong.

These are by no means going to be radical steps. I’m also going to talk about it with the National Bank of Poland, which is responsible for monetary policy, Kazimierz Marcinkiewicz added.

Yesterday, the Polish currency depreciated against other currencies, however, according to Tomasz Wronka the head of X-Trade Brokers DM analyze department, it was a short-term change.

Till the budget is set, the market may be a little bit upset but I do not expect the euro to cost over PLN 3.81. Later, unless negative news come from political scene, we will watch further appreciation trend, Tomasz Wronka believed.

Negative news would be no support for next year’s budget. However, it seems that there will be no problems with this. However, according to Jan Rokita, an MP of Citizens’ Platform (PO) party, the budget is bad for Poland. PO has prepared 72 amendments including cutting spending and reducing budget deficit by PLN 3 billion (EUR 795m). The budget was initially to be voted on January 14th but it may be done on January 24th.

Source: pb.pl

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Foster Wheeler given OK to build boiler

Foster Wheeler Ltd., a Bermuda-based engineering and construction firm, on Wednesday said it received received notification to begin building a circulating fluidized-bed boiler island for a new power plant in southern Poland.

Shares of Foster Wheeler climbed to a fresh 52-week high on the news, jumping $2.10, or 5.1 percent, to $43.07 on the Nasdaq. The stock has steadily risen from a low of $12.40 in January 2005.

The CFB boiler island would be the world's largest and will support a $550 million, 460-megawatt power plant being constructed at Lagisza, Foster said. Its share of the work is valued at about $200 million, of which $175 million was logged in its fourth-quarter bookings. Poludniowy Koncern Energetyczny, one of Poland's largest utilities, is building the Lagisza unit -- due for startup in 2009 -- alongside its existing 840-megawatt plant.

Source: AP/Business Week

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Ferrovial: Contracts in Poland worth over 57 million euro

Late in 2005, Budimex -Ferrovial's Polish construction subsidiary- was awarded two new construction contracts worth 57 million euro.

The Polish subsidiary will build a cultural and sports centre in Krakow (budget: 44.7 million euro) and the new regional courthouse complex in Katowice (construction of a 6-storey building and the development of the environs, including car parks, adjacent roads and the full range of service infrastructure).

Source: Webbolt Company Limited

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Latvian airBaltic launches routes to Poland again

AirBaltic, the low-cost airline owned by the Latvian treasury (52.6 percent) and SAS (47.2 percent) is going to restart its routes to Poland.

We have not announced our routes yet, Vija Dzerver, airBaltic spokesperson said.

The company has received slots at Okecie airport (in Warsaw) and is going to fly seven times a week. It will start operations in the summer season.

Today, capitals of Lithuania and Latvia may be reached with PLL LOT, Poland’s flag carrier only. LOT offers 10 flights weekly to Riga. AirBaltic launched its routes from Vilnius and Riga to Warsaw in 2004 for the first time. Routes turned out unprofitable and the company had to withdraw after four months.

AirBaltic had 589.3m passengers in 2004 and over 1m passengers last year. In 2004, it had PLN 279.7m (EUR 74.1m) of net income. It has 16 planes.

Source: Puls Biznesu/APA

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Poland wants to improve relations with Russia

Polish President Lech Kaczynski said on Tuesday his country is willing to further its relations with Russia, the Polish Press agency reported.

Kaczynski made the remarks while meeting foreign missions in Poland.

He said Poland is willing to strengthen its cooperation with Russia on the basis of partnership, adding that he is looking forward to a significant improvement in the bilateral relations this year, though it may take time to achieve that goal.

The president said the country will strive to develop good relations with other European Union members, which is seen as the cornerstone of the country's diplomacy.

Source: http://news.xinhuanet.com

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