1. CQS Poland

2. CQS Poland - The Team Stanisław Haręzga Director Matthew Creagh Managing Director Adam Wysocki Head of Project Management Adriana Stefan Financial Manager Dawid Piasek Associate Katarzyna Karkoszka Office Manager

3. 3 CQS Poland -The Company CQS Polska Sp. z o.o. First Irish Chartered Quantity Surveying & Construction Cost Consultancy Practice in Poland Established in 2007 Matthew Creagh – Managing Director Stanislaw Harezga – Director in Poland Head Office Krakow Staff of 5 Professionals

4. 4 CQS Poland - Background Extensive research into the economies & the construction industry in emerging markets in Europe in 2006 On a long term plan we choose Poland as its base for first overseas office Long term investment Own office was purchased 2.5m pln invested in the company Established alliances with Universities & Krakow University of Technology to develop the Business & have access to highly qualified graduates Looking at projects in Warsaw, Lodz, Wroclaw, Rzeszow and other cities with a view to establish regional offices

5. 5 Director – Stanislaw Harezga Masters Degree in Construction Degree in Engineering 7 years Hochtief - Commercial Manager 1 year KPB Cracovia ( Main Contractor ) – Commercial Manager

6. 6 Krakow New Build Apartments 9,870m2 including basement ( 181 No. units ) Krakow 36m

7. 7 Krakow Project : Office development Description : Three storey basement car parking and eight new buildings from six to eleven storey high Location : Krakow, Poland Value : 130m

8. 8 Rzeszow New Build Offices & Apartments 28,000m2 Offices & 8,000m2 Apartments Rzeszow 48m

9. 9 Wroclaw New Build Offices 6,000m2 Offices & 1,500m2 Basement Car Parking Wroclaw 10m

10. 10 Krakow Project : Apartment and retail development Description : Single storey basement car parking and one new build block including refurbishing four existing blocks Location : Krakow, Poland Value : 13m

11. 11 Lodz Project : Hotel Development Description : Single storey basement and eight storey superstructure, generally new build over an existing structure & strengthening the existing structure. Location : Lodz, Poland Value : 8.5m

12. 12 Poland - An Overview

13. 13 Regions - Voivodships

14. 14 Comparing : Poland to Ireland about 5 times bigger

15. 15 Poland has a population of 38 million Comparing : Poland to Ireland has about 9 times more people

16. 16 Higher Education in Poland More than 5% of population in Poland are students

17. 17 GDP in Poland

18. 18 Unemployment in Poland In 2009 unemployment in Poland will probably be less than in Ireland ( Taking Ireland as 8-9% and Poland as 7-8% )

19. Foreign Investment In Poland

20. 20 Why Invest in Poland There are many reasons why Poland is so attractive to investors: Size of Polish Market Location in Central Europe with Eastern Europe & Russia close by Availability of low cost labour Amount of skilled people & professional graduates Perspectives for economic growth Direct Grants – SEZ Availability of funding through EU structural funds

21. 21 Direct Foreign Investment in 2007 to new members of EU Direct Foreign Investment in 2007 to new members of EU in mln Euros Investment in Poland at 12bn was double that of the Czech Republic

22. 22 Foreign direct investment in Poland The inflow of capital between 2002 and 2008 (in mln Euro)

23. 23 Foreign direct investment in Poland in 2007: geographical structure of inflow

24. 24 European funds in Poland in the years 2007 – 2013 Over 67 bln of EU funds in 2007 - 2013

25. 25 Special Economic Zones

26. 26 In a SEZ the entrepreneur can obtain the following privileges; tax exemption (CIT or PIT) fully prepared for development for the investor at a competitive price free assistance in dealing with formalities in connection with the investment exemption from property tax (on the territory of certain Gminas)

27. 27 The level of regional aid available to the entrepreneur depends on ; location of the investment ( each SEZ is administrated separately ) level of capital input, or costs of employing new workers size of the business seeking tax relief

28. 28 Special Economic Zones in Poland Location of the 14 No. of Special Economic Zones throughout Poland 1 No. per Voivodship - the brightest 10 No. and more per Voivodship - the darkest

29. 29 Sectors of building in Poland

30. 30 Type of construction sectors; Residential buildings Non-residential buildings Civil engineering works

31. 31 Value of construction in mln pln, 2005-2007

32. 32 Value of construction by type of construction ( PLN m ), in Q1 2008 ( 11,840 mln PLN in Q1 2008 )

33. 33 Residential C onstruction in 2005 – Q1 2008

34. 34 Hotels and similar buildings Value of construction by type of construction ( PLN m), Q1-Q3 2005 to Q1-Q3 2007

35. 35 Office Buildings Value of construction by type of construction ( PLN m), Q1-Q3 2005 to Q1-Q3 2007

36. 36 Warehouses / Logistic Parks Growth of the Warehouses/ Logistic Parks from 1,2 mln of sq m in 2004 to 4,1 mln of sq m divided by sectors

37. 37 Civil Engineering Works Highways, streets and roads Railways Airfield runways Bridges, elevated highways, tunnels, and subways Harbors, waterways, dams and other waterworks Long-distance pipelines, communication and electricity lines Local pipelines and cables (including water treatment works Sport and recreations constructions

38. 38 Highways, streets and roads Programme of Road Development for 2008 – 2012; in total 121 bln PLN

39. 39 Implementation of Programme of Road Development for 2008 - 2012 should result in ; 632 km of new motorways 473 km of motorways in Public Private Partnership ( additional funding ) 1,980 km of expressways 54 No. ring roads; total length about 428 km Reinforcement and reconstruction of national roads; total length 1,560 km

40. 40 Sport and recreational constructions Euro 2012 Football Cup: Warszawa – new stadium Poznań – new stadium Wrocław – new stadium Gdańsk – new stadium Kraków – reserve – modernization and development of existing stadium Chorzów – reserve - modernization and development of existing stadium

41. 41 Construction Process

42. 42 Construction Process – legal regulations The construction process in Poland is regulated mainly in: the Construction Law of 7 July 1994 with more than sixty decrees of proper Minister, the Master Planning Law of 27 March 2003, the Civil Code of 23 April 1964, the Administration Proceeding Code of 14 June 1960, the Public Procurement Law of 29 January 2004, the Authors Right Law of 4 February 1994.

43. 43 The construction process in general ; Site purchase Local master plan or Planning Decisions ( outline planning – WZ ) Design for Building Permit Obtaining a Building Permit Technical Supervision, Designer Supervision Construction Design Construction work Contract / FIDIC Occupancy Certificate

44. 44 Local master plan or Planning Decisions In accordance with the Master Planning Law a local master plan should describe ; the function of the land general public areas requirements planning ratios and planning conditions, including all limitations required by law If there is no master plan for the area where the investment is planned (which happens frequently at present), Planning Decisions must be obtained

45. 45 Technical Supervision On the basis of the Building Permit the Client is obliged to employ Technical Supervisors who: Represent the Client on Construction Site Confirming correctness of construction works with the Design for Building Permit Confirming quality of Construction works

46. 46 Construction work Contract The parties are generally allowed to shape the contract freely In the construction work contract, the investor and the contractor agree upon the detailed scope of work to be performed by the contractor and the work to be subcontracted Contractor must not execute an agreement with a subcontractor without investors consent Investor and the contractor are jointly and severally liable for paying the subcontractor No standard form of contract in Poland To adopt / amend existing standard contracts from other countries ( RIAI Contracts ) It is possible to use FIDIC model contracts in Poland

47. 47 FIDIC the French International Federation of Engineers In 1999 FIDIC published four standard forms of contracts: Conditions of Contract for Construction for building and engineering works designed by the Employer Conditions of Contract for Plant and Design-Build for electrical and mechanical works and for building and engineering works designed by the Contractor Conditions of Contract for EPC/Turnkey Projects for Engineering, Procurement and Construction (EPC): providing a fully-equipped facility, ready for operation Short form of Contract for building or engineering works of relatively small capital value