Tenderized legislation

Amendments that would streamline Poland's arcane tender laws are currently being finalized in the Senate. Participation in public tenders, as set out by current law, can prove a tedious administrative process plagued by bureacracy, which often discourages otherwise eager investors.

Despite some having made some progress in simplifying the way tenders are announced to the public, the bidding process itself is still complex and time-consuming. According to Adam Ambrozik of the Confederation of Polish Employers (KPP), administrative procedures account for close to fifty percent of the duration of the investment, from initation to closing. The costs incurred are sizable for investors as well as cities, which lose millions each year from unrealized investments.

"The current measures, intended to reduce the burden on investors in the development and construction sector, are just the beginning. However, further changes must be introduced on the complex operational level in order to effectively streamline the process and stimulate investment activity," says Ambrozik.

The new measures include a reduction of paperwork and fees, along with the implementation of an arbitration system. The bill also calls for a reduction in the costs of perpetual usufruct grants.

The most important aspect of the legislations refers to investment projects in areas that are not covered by zoning plans. Moreover, the new measures specify a six-month deadline for local governments to make decisions regarding the development of plots purchased in unzoned areas.

Poland hasn't got time to lose with Euro 2012 around the corner and the cutoff date for EU development funds following soon after. The government is stepping up its modernization of laws that relate to investments and the effects on investment activity should immediately reverbate throughout the country's markets.