HP likely to have showdown with ARiMR over IACS contract

Puls Biznesu has unofficially learnt that the Agency for Restructuring and Modernization of Agriculture (ARiMR) has plans to renegotiate the contract with Hewlett-Packard (HP) concerning the implementation of the IACS system, which will be responsible for farmers' EU subsidies. This is a second change to the contract, this time due to plans of liquidating 315 local agricultural offices. "These closures mean that the work expected from HP will be of lesser value," said a source close to the deal. Initially the contract was originally for EUR 105 million, but now its value amounts to EUR 38.5 million and looks like it will be cut further. It was not yet revealed how these changes will effect HP's income. The head of HP, Andrzej Dopierała, issued a statement that his company will not agree to any new terms, nor to lower the contract's value. (Puls Biznesu, pp. 1, 4) A.K.