Briefs

Okęcie tender postponed again

The tender deadline for construction of the 2nd terminal at Warsaw's Okęcie International Airport has been pushed back for the second time. Tender applications must now be handed in by 15th May 2002. According to the Polish Airport Authority (PPL) the dates have been changed because of the introduction of new tender conditions. According to the points system by which the winner is decided, cost will carry greater weight in the decision making process with 50 points out of a maximum 100 allocated to price rather than the previous 40. Budimex, Hochtief and Strabag are the 3 firms involved at this stage of the tender process. This change in the tender criteria is in line with the government's emphasis on cutting cost as a major priority in state sponsored construction projects.
According to recent press reports PPL have had trouble attracting financing for the project, although they deny this. PPL says that there is a list of 17 banks interested in participating, including the European Investment Bank and the European Bank for Reconstruction and Development. The 2nd terminal is designed to increase the airport's capacity to 12 million passengers a year.

Searching for an investor

Construction company PIA Piasecki is looking for a strategic investor after negotiations with Mostostal Zabrze last year came to nothing. The Kielce-based company recently announced that it had joined forces with Belgian construction company Besix for the tender to construct ING Real Estate's landmark mixed-use project ,Zlote Tarasy" in Warsaw.

 

PWC Metro advice

Although the dates and cost are hazy, Warsaw should eventually end up with 3 metro lines totaling between 55 - 60 kms of track. Work on the c.25 km 1st line is currently underway with the tunnel being excavated towards Dworzec Gdanski and Plac Wilsona (provisional opening dates 4th Qtr 2003 and 2004 respectively). The line is to finish at Mlociny in the north and a tentative completion date of 2006 given.
The 2nd line will run roughly 20 kms from Chrzanów in the west to Dabrówka on the north-east side of the Wisla River, although the initial stage will go east-west from Rondo Daszynskiego in the city centre to Dworzec Wilenski and should be completed by 2007, with the whole line ready by 2010. An extra couple of years may now be needed as preparations are made for possible public-private partnerships. The third line will be shorter at c. 6.5 kms and is expected to begin at Warszawa Zachodnia railway station and run east through Plac Konstytucji and Warszawa Wschodnia to finish at Goclaw. It is too early to give an estimation of time and cost with much depending on funding and organization.
A consortium led by international consultancy PricewaterhouseCoopers, and including law firm CMS Cameron McKenna and engineering firm WS Atkins, has recently delivered a report to Warsaw authorities on possible funding methods for construction of the metro. The report, which Jacek Zdrojewski of Warsaw's Investment Department said is a first draft and open for discussion, focuses on the possibilities of applying a public-private partnership programme to complete the 1st line and finance the construction of the 2nd and 3rd lines. ,The city will receive a report containing several options, together with our recommendations," said Marzena Rytel, senior manager from the financial consulting department of PWC, earlier in the year. Jacek Zdrojewski said it was too early to comment on the reports findings and recommendations. The PWC group will work with a special commission, called the 'Investment Task Force', composed of representatives from various Warsaw city departments concerned with investment projects in the city. The commission will decide how to progress.
A number of leading construction companies have expressed an interest in constructing the 2nd line, including Warbud SA, who are currently building the first line. Bilfinger+Berger, Hochtief and Siemens are known to be working together on a bid.

Mostostal value rises

Shares in Polish construction company Mostostal Warszawa rose 7% on Friday 22nd March, meaning the shares have risen 30% since the beginning of the month. Despite the problems in Poland's construction sector, the company made a profit of PLN 10 million last year. This and the possibility that Spanish stakeholder Acciona may purchase a majority stake is seen as being behind the share price rise. Some observers believe that Acciona, which already owns 49.99% of Mostostal's shares, may purchase Elektrim's 28% stake when that company puts their shares up for sale, as it is expected to do soon.

Holzmann's fall affects Polish companies

Philip Holzmann, Germany's 2nd biggest construction company, has declared for bankruptcy, prompting fears that there could be a ripple effect on Polish contractors working for the company in Germany. Roughly 50 Polish companies could be affected. One of them, Budimex, recorded a turnover of EUR 30 million in the country last year but a spokesman denied Holzmann's troubles would have a major impact on their performance. Opole-based Polbau, however, could lose up to EUR 2.6 million from its 12 projects in Germany.

Piasecki looks for investor...

Kielce-based contractor PIA Piasecki is looking for a strategic investor after talks with Mostostal Zabrze last year came to nothing. The company has recently joined Belgium-based contractor Besix in a bid to win the tender for ING Real Estate's mixed-use 'Zlote Tarasy' project, which will be located next to the central railway station in Warsaw.

... while PIA Piasecki Inwestycje diversifies

Meanwhile, its development wing, PIA Piasecki Inwestycje, has announced that it will continue its diversification from residential projects into larger-scale commercial development. The firm's major project to date is Krakow Business Park, where work on the 9,400 sqm first phase is currently underway. The firm has a 56%-stake in Kraków Business Park, the development vehicle set up to realise the project. The remaining stake is owned by private investors. Pia Piasecki Inwestycje is now turning its attention to the retail sector where it is looking to build small retail centres in cities of up to 100,000 inhabitants.