17 July 2003

Stanisław Łopatowski, Governor of Lower Silesia Province:
It is very fortunate that the province administration and local government of Wrocław maintain very friendly relations. In my opinion, the credit for this state of affairs goes to a large extent to Rafał Dutkiewicz, the city mayor, and Henryk Gołębiewski, chairman of Lower Silesia province. But I would like to stress that we, the mayor the chairman and myself, are merely continuing what was initiated by our predecessors.

We are looking for certain solutions that are significant for the city and the region. One of these solutions is the final resolution of a location for Bosch's investment in Mirków near Wrocław. We have met many times with the city's local authorities to decide about priorities and specific needs and to create a plan to follow. We have prepared together to enable Bosch to open its factory in our region.

The areas situated north of Wrocław, on both sides of the road leading from Wrocław to Warsaw, are of great significance for us. There are still some places for sale near the area purchased by Bosch. The area now belongs to the State Treasury Agricultural Property Agency (AWRSP) and Tonagro Śląsk SA, a company owned by the Treasury Ministry. The Province Office is interested in this area and supports any activities which could prepare this area for investment. In order to avoid selling the land to other investors, we discuss potential investors with city authorities, AWRSP and Tonagro. Together with the mayor and province chairman we are considering creating a climate favorable for investors by the city and province local government. The creation of such a climate should involve for instance lowering the planning fees, specifying an attractive price or constructing a beltway around Wrocław and the south-western part of the city. Although constructing a beltway lies in the hands of the province chairman, both the mayor and myself are hoping to support the initiative. We also support the creation of fast railway connections which is efficiently taken care of by the province chairman-he has recently signed an agreement with Czech partners concerning the construction of a fast railway connection between Wrocław and Prague.

Another important topic for both the province and Wrocław local governments as well as the province governor is the extension of Wrocław's airport. We would it to become an international facility, equal to modern airports such as those in Leipzig or Dresden. We are discussing a concept for modernizing the airport in Wrocław by, among other things, constructing a second runway and lengthening the existing runway by about 500 meters. These changes are necessary for larger planes to land at our airport.

A very important issue for local governments of the city and the province is the 2006 Program for Oder. We consider flood protection of Wrocław and the whole region a very serious issue. We have already moved from the planning stage to the execution stage of the program. As part of the program, the Bartoszowicki Weir and Szczytniki Weir in Wrocław have already been opened in Wrocław. Two reservoirs on the Nysa Kłodzka River, Kozielno and Topola, have been constructed as well. The first local flood protection system in Poland has been created for Kłodzko county.

I believe that due to our joint efforts, the Lower Silesia region has a chance to become not only one of the most significant regions in Poland, but also in Europe. All these initiatives are encouraging for investors, as they are proof of a predictable, long-term policy on the part of all authorities in the region.

Rafał Dutkiewicz, Mayor of Wrocław:
Wrocław is turning to face its surroundings. This refers not only to communes in the immediate neighborhood of the city, but to the whole Lower Silesia region. We have signed an agreement with mayors of other cities in the Lower Silesia region promising cooperation in winning new investments. This means that if a given investor is interested in Wrocław I will eagerly recommend Jelenia Góra, Świdnica or Legnica.

It actually does not matter if the investment is realized in Wrocław itself or an area situated near the city, for instance in Długołęka or Św. Katarzyna. We hope the suburbs will actively join this way of thinking. We need each other. The communes surrounding Wrocław profit from the fact that they are near the city; they use city infrastructure. So the cooperation has to work both ways.

We think about investors in terms of the widely-understood Wrocław urban area, but the local government has no plan of surrounding the city with a ring of business.

How do we attract investors? We do not attract them at all. We merely create a favorable climate and investment conditions. An example of this policy is the creation of the Wrocław Technological Park, which is mainly a business incubator. The existence of the park is considered a very good initiative by the European Union.

Recently, Hydral SA has applied to us for help in conducing serious negotiations with an American investor. Some time before that Bosch constructed its factory nearby, right on the city limits. Whirlpool has invested not far from Wrocław, in Polar, the multinational corporation 3M has invested in Viscoplast, and a Volvo investment has emerged nearby. What the city government has been planning for some time is soon likely to come to fruition. A new, northern economic zone is emerging in Wrocław. It is a very interesting zone. The companies that have already began operating there are modern international companies. We have to make sure that a technological park is created in this area as well.

One of the companies we cooperate with is Tonagro, which is a commercial arm of the State Treasury. Tonagro owns an area in the northern part of Wrocław which it wants to sell to an investor. We are working on local land use plans for that area in which the City Council members define what kind of commercial activity they would like to develop in the area. One such plan was approved at the City Council's last meeting in early July.

Generally, my views on the issue of investment are very liberal. I do not like influencing the economy. I do not want to specify what kind of investor is needed for which part of Wrocław. We are favorably inclined towards everybody who wants to invest their money in our city. The only exception is made for supermarkets that are not welcome in the city center. You cannot steer the economy or you will damage it. The less regulation the better. What you should do is create the best conditions possible for the economy's development. This is what we are doing in Wrocław.

Henryk Gołębiewski, Lower Silesia Province Chairman:
Lower Silesia provides profitable conditions for long-term and foreign direct investments, which create new working places and stimulate economic growth. Lower Silesia is not only an attractive place to carry out investments, it also has a qualified labor force. Fifty-five percent of our residents have higher or post-secondary education. In terms of the average age of the population, we are one of the youngest regions in Europe.

The Development Strategy for Lower Silesia Province puts emphasis on competition and innovative entrepreneurship. Thus, Wrocław and other cities have established Technology Parks and Incubators of Entrepreneurship, which take advantage of the region's scientific and industrial potential.

What investors can look forward to in our region is total or partial exemption from property tax, comprehensive assistance in arranging formal and legal issues, investment areas with a full infrastructure and financial support for providing infrastructures in other areas.
There are three Special Economic Zones (SSEs) in the Lower Silesia province: Wałbrzych, Kamienna Góra and Legnica. Launching business activities within an SSE makes it possible to benefit from tax exemptions and tax preferences, and from simplified administration procedures. In SSEs, investors obtain land with full infrastructure and professional business services.

Lower Silesian communes have "economic activity zones" prepared to accept foreign investments. An example of a new project to be launched this year in the economic activity zone in Święta Katarzyna commune is a window and door factory built by the German company Thyssen Polimer Polska. The factory will employ 120. Another such project in the zone is the construction of a hydraulic components factory by the American company Parker. The factory will have a work-force of 800.

There is also a quickly developing zone in the Nowogrodziec and Węgliniec regions, the aim of which is to establish a modern industrial park in these communes, with high standards of environmental development and protection. The exceptional location of the zone creates perfect conditions for the entire project. It not far from two country capitals-Berlin and Prague-and is also close to other growing economic centers in Germany, the Czech Republic and Poland. It also has two international roads running through it.

A very important element favoring investment in the province is the modernization and enlargement of the transportation infrastructure and environmental protection.

The financial infrastructure of the region is very well developed. It has the headquarters of four banks, 200 branches of commercial banks and 106 branches of cooperative banks.

Lower Silesia local governments work together on searching for investors and recommend their mutual investment areas to investors. They act as intermediaries in trade negotiations between companies from Lower Silesia and abroad.

The Office of the Province Marshal has created a database of investment proposals in all 169 communes. It can be viewed online at www.umwd.pl and is updated on a regular basis. The database features investment areas larger than 5 hectares which have a full infrastructure, are included in local spatial development plans and are properties of communes.

Evidence of how attractive Lower Silesia is to foreign investors is the over $1.5 billion invested in the province during the 1990s. To date, 170 companies have provided at least $1 million. Examples of businesses which have invested in the area include Toyota, Volkswagen, Coca Cola, PepsiCo., Volvo, Bosch, Cadbury, ABB, Castorama and many more.

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