Dream team for new sports stadium

Conferencing is one of the most lucrative areas in tourism, with the average convention participant spending roughly EUR 300 (zł.1,152) a day. Warsaw does not have a large-scale conferencing center that can provide the facilities for international events, and many decision makers, in the city and in government, remain unconvinced that the city needs such a venue, and to date have been unwilling to fund it.

However, several individuals from the private sector have taken matters into their own hands, and a team from Colliers and the Warsaw Destination Alliance (WDA) has designed a multi-functional sports and conference facility for the city.

A game of two halves

Twenty firms have come together to plan two major investments. The first is a conference center hosting 12,000-15,000 people that can also be used for exhibitions, concerts, and sports events. It will include a trade center of about 15-20,000 sqm where all gminas will be able to lease space to promote their regions. This will give foreign investors an opportunity to meet with representatives from the country's various industries under one roof. A separate building will house a 10,000-sqm design center with a built-in stage where all design-related issues will be exhibited. The complex will also include an aquarium, a luxury 250-apartment tower, and an interactive Polish museum.

The second part is a stadium, which could be an integral part of Poland and Ukraine's joint bid to host the 2012 UEFA European Championships. Warsaw, where the final would take place, needs to have 45,000-seater stadium, which could cost between EUR 2,000-5,000 (zł.7,725-19,314) per seat. The difference depends on whether it's an open-air or closed and air-conditioned stadium, which increases the cost by an additional EUR 100 (zł.386) million.

"We are still working on a characteristic entertainment feature, like the London Eye. We haven't yet decided about the form of it," says Alex Kloszewski, the chairman and managing director of the Warsaw Destination Alliance, head of the hotel department in Colliers, and also the man behind the project.

The top three

The actual location has not yet been agreed and there are three proposed sites within a 25km radius of the Palace of Culture and Science. Both sides of the Wisła river are being considered, with two of the locations within the city and one outside.

"It depends on the will of the city and the government. The location we favor does other things for the city. It regenerates a piece of Warsaw," says Kloszewski.

The combined investment would reach about EUR 500 (zł.1,931) million. Kloszewski realizes that the conferencing complex and the stadium must make money in order to operate on a daily basis, not just when major conferences or sports events come to town. According to Kloszewski, the maximum usage of a stadium of this capacity is 26 days within a year, so the team have factored in a number of other facilities to keep the venue busy.

WDA is planning to create a joint-stock company, with the City of Warsaw taking a 35-percent share. The enterprise would be based on a public-private project model. The group is planning to finance the construction from the city's securities, municipal and government subsidies, EU funds and private investment. WDA envisages signing a deal with an operator for the complex for 20-25 years.

Making the pitch

Kloszewski explains that the whole project will be presented to the Sports Ministry and City Hall at the beginning of February, which is a month before the Sports Ministry has to present its proposed hosting facilities for the European Championships to UEFA authorities. "We want to give the government an opportunity to see the project and I am now more convinced that the government will participate in it," says Kloszewski.

Kloszewski's conviction probably originates from Prime Minister Kazimierz Marcinkiewicz's initial address on taking office, in which he said that the implementation of the sports infrastructure development program would be expanded in the form of strategic investments. The construction of four modern sports stadiums will finally allow the organization of even the largest sport events, including the European Football Championship.

On February 15 the committee is going to announce if the government has agreed to the project.

"If we have a project that makes sense, and the government doesn't approve of it, the people of Warsaw and Poland need to know," says Kloszewski.

Own goal

Conferencing generates on average EUR 100 (zł.386) million a year for the tourism industry, not to mention VAT and other taxes. Unless Poland starts to construct similar complexes within the next two to three years, the city of Warsaw will not be competitive compared with other Eastern European capitals.

"The project I am describing is not a matter of if, but a matter of when. Warsaw as well as Poland cannot afford to wait any longer for facilities like this. This is not a luxury, this is a necessity," says Kloszewski.