2012: The big deadline and a new starting point

Although he was once a handball player, he is now managing a project associated with football. However, he considers this to be a business assignment – not focused on simple profit, but on the wider development of a whole country

The question is now not ‘if’, but ‘how’ Poland will organize the European football championships. To find out the answer, ‘Eurobuild CEE’ spoke to Marcin Herra, the president of PL.2012 – the company responsible for the coordination of projects necessary for the Euro 2012 tournament and supervising the event.

Emil Górecki, ‘Eurobuild CEE’: Are you still being asked if we will make it by 2012? Or perhaps this question is already out of date?

Marcin Herra, president of the management board of PL.2012: At this stage the question is certainly out of date. However it was still valid in March of last year, but at the beginning of 2008 we intensified our work considerably and now, after 12 months of hard work, we are performing our assignments in compliance with the schedule, and in certain areas – such as preparation of medical facilities – we are more advanced than UEFA expects us to be.

Moreover, apart from the objective factors which have convinced me that we will complete all the preparations on time, such as the beginning of construction work on the stadiums, there are also more subjective factors, including the public feeling. The results of our survey revealed that 46 pct of Poles were convinced in July 2008 that we would complete the project on time. On the other hand, between July and November, when general optimism decreased because of global events, the index of optimism towards Euro 2012 grew by 5 points, up to 51 pct. It should also be stressed that in the six cities concerned, the level of certainty over completion exceeds 70 pct. We are happy to see that the trend that started in April 2007, when we won the right to jointly organize the championships with Ukraine, has been reversed.

Today we are asking ourselves another question: what should we do to fully exploit the opportunities provided to us by this event – including not just the short-term ones due to the very fact we are organizing the tournament, but also the long-term benefits after the championships.

Emil Górecki: So, what is the answer to that question?

Marcin Herra: We are on the right track. First of all, we must remember that there are practically no facilities to be constructed which are solely for the championships. Another important issue is prioritization – the master plan published on our website picks out nearly 300 projects that have been selected from over a thousand: stadiums, roads, airports, railway stations, hotels and accommodation centres. Prior to this, the projects included zoos, equipment for neonatal wards and aqua parks. At present, nearly 300 undertakings are the priorities we consider to be important from the point of view of Euro 2012.

The championships provide an opportunity to really improve the infrastructure of Poland. In three and a half years we will have major sporting arenas creating a foundation and guaranteeing the development of sport in this country for years to come and the organization of large mass events. As a country situated in the centre of Europe, Poland will become an even more attractive location. We currently already meet UEFA’s requirements in the 4-star facilities sector, with 5-star hotel chains such as the Hilton also being built – 11 such facilities will appear in the next 4 years.

Moreover, over a number of weeks, together with representatives of the General Directorate for National Roads and Motorways and of Polish State Railways, we analysed each project in terms of its necessity for Euro 2012. We developed the so-called mobility concept for Poland, i.e. we specified how people will be travelling between countries, then between cities, and whether they will be using air transport or cars. We estimated that to travel a distance of 340-350 km – irrespective of how you want to travel – you will need from 3 hours 15 minutes to 3 hours 30 minutes. Based on that, we decided which railway or road projects needed to be carried out. In order to organize the Euro 2012 tournament well, we do not need 3,000 km of railways; 1,083 km of motorways and 389 km of express roads should be enough. Of course, all this transport investment is also important to our country’s development.

We must also remember that Euro 2012 is an enormous opportunity to improve Poland’s image abroad. Between 1.5 and 2 mln people will come to Poland and there will be over 10 bln viewers of the event – so this is an opportunity to showcase our country to other people, including potential business investors and partners. This will enhance Poland’s attractiveness from the investment point of view. But Euro 2012 is not the end of our plans. We do not consider the championships to be the end of the road, but the beginning. This is a way of preparing Poland to meet the requirements of increased competition. We will have a better position in the world, especially in the context of the global financial crisis, and while others are losing out we are moving upwards.

Ewa Andrzejewska, ‘Eurobuild CEE’: 
Does this mean you are one of the few people happy with the crisis?

Marcin Herra: No, not at all! Of course it is better when everyone is doing well. But each crisis is an opportunity, you just need to know how to take advantage of it. Today, financing is more difficult to obtain, it is more expensive and involves greater uncertainty, which deters risky decisions. There are also other advantages. Demand for projects is falling; consequently, the contractors’ order portfolios are changing. They will focus on getting through the crisis with the lowest possible losses; in the case of this type of investment, the risk for construction companies is much lower than in the case of commercial investments. As a result, our projects are becoming more attractive as according to our master plan, 80 pct of projects will be securely financed by the government and local authorities.

In addition, the costs of materials, prices of raw materials such as steel, cement or oil derivatives are falling. This is also a product of the crisis. The good news for drivers, that is, the lower price of fuel, is also important for the logistics sector. Likewise, the labour market is changing: the eqilibrium between the employer’s market and the employee’s market is returning. When calculating personnel costs, this trend tranlsates into a positive phenomenon.

In 2009, Poland is moving from the tender stage to the construction phase, with 60 pct of the projects entering the construction stage this year. Similarly, many countries around the world – for example the USA, China and the countries of South America – are launching public works projects today. Governments are trying to stimulate the economy and investing in the construction of mass utility facilities. Today, Poland seems to be distinguishing itself in a positive manner on the map of the crisis, but in 9-12 months’ time, large construction companies will begin analysing where it is better to base their projects: in Poland or perhaps in Italy or in the US. We should take advantage of the fa