Business news from Ukraine

Business news from Ukraine

INTRODUCTION OF BIM (BUILDING INFORMATION MODELING) TECHNOLOGIES IN CONSTRUCTION INDUSTRY COULD REDUCE COST OF BUILDING AND OPERATING FACILITIES BY 30%

The system implementation of BIM (Building Information Modeling) in the construction industry of Ukraine could help reduce the cost of building and operating facilities by up to 33%, Olena Shuliak, a member of the board of the Better Regulation Delivery Office (BRDO), the co-owner of Midland Development Ukraine, has stated. “The use of BIM for design, construction and operation of industrial, infrastructural, civil construction objects has become a de facto mandatory practice in the developed countries. As international practice shows, the use of BIM allows optimizing construction terms by 20%, increasing control over expenses by 30% and more, reducing construction costs by 20%, and in some cases up to 33%,” the expert believes.
Shuliak explained BIM assumes the collection and complex processing during the design process of all architectural, design, technological, economic and other information about the building, when the building and everything related to it are considered as a single object.
According to her, BIM allows exporting design services of Ukrainian companies abroad, and in future the export of these services could grow by 1.5-2 times.
“Foreign investors entering or planning to work in the Ukrainian market are interested in a fast and high-quality project implementation with transparent control over all processes. BIM could become a serious competitive advantage for domestic

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KOEN GROUP PLANS TO BUILD TRADE AND EXHIBITION CENTER WORTH $500 MLN NEAR KYIV

Koen Group LLC (Kyiv) plans to build a trade and exhibition center worth $500 million near Kyiv in four years, head of the company Naum Koen has said at a press conference. According to him, the complex will be located on a plot of 105 hectares 13 km from Kyiv on the Odesa highway. The project includes a wholesale market with a parking lot for 10,000 cars, as well as a large exhibition center with three hotels. The start of the project is January 2019. It is planned to open the wholesale market in two years, while the implementation of the exhibition center will take another two years.
“We also plan to build a large concert hall for 7,000 seats. There will be three complexes – a trade one, exhibition and a concert hall,” he told Interfax-Ukraine. According to him, the investor in the project could be Cyrus Poonawalla, the head of Poonawalla Group vaccine manufacturer. “I am interested in this project, but I should study it better and then make a decision on investing,” the expert said.
Koen Group LLC was registered in 2016. According to the unified state register of legal entities and individual entrepreneurs, its owner is Naum Koen. The charter capital of the company is UAH 300 000 000,00.

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TOP 100 LARGEST UKRAINIAN STATE COMPANIES POST 38.5% RISE IN PROFIT IN 2017

The top 100 largest state-owned companies in Ukraine in 2017 saw net profit rise by 38.5% compared to 2016, to UAH 44.4 billion, while 88.5% of this amount was the profit of Naftogaz, according to data released by the Ministry of Economic Development and Trade. “The main factor of the growth of Naftogaz Ukrainy’s profit in 2017 was the victory in arbitration proceedings against Gazprom, due to which Naftogaz received the largest net profit for 20 years,” the ministry said, noting that in 2017 the net profit of Naftogaz increased to UAH 39.3 billion against UAH 17.8 billion in 2016.
The enterprises of state-regulated industries have become the most profitable in the list of the top 100 companies, First Deputy Minister of Economic Development and Trade Maksym Nefyodov said.
“At the same time, most companies remain extremely inefficient, as before. We have only one way out – to continue the corporate governance reform of those strategic state-owned companies that must remain in state ownership and hold a transparent privatization of other companies under the law adopted this year,” he said.
According to the ministry’s report, the total value of the assets of state-owned companies in 2017 compared to 2016 increased by 5% and amounted to more than UAH 1.509 trillion.

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UKRAINE DEVELOPS RENEWABLE ENERGY IN Q3 2018 2.4 TIMES FASTER FROM YEAR AGO

New renewable energy generating facilities with a total installed capacity of 160.1 MW were launched in Ukraine in July-September 2018, which is 2.4 times more than a year ago, the press service of the National Commission for the State Regulation of Energy, Housing and Utilities Services (NCER) has reported. “The share of wind farms and solar power plants is 97% of all facilities launched,” the commission said.
Wind farms with a total capacity of 7MW, solar power plants of 148.8 MW, biogas plants of 3.6 MW and small hydroelectric power plants of 0.7 MW were launched in Q3 2018.
Thus, as of October 1, 2018, Ukraine has wind farms with a total capacity of 522.4 MW, solar power plants – 1.096 GW, biomass plants – 43.8 MW, biogas plants – 44.6 MW, small hydroelectric power plants – 96.4 MW.
The total installed capacity of renewable energy facilities is 1.8 GW (not taking into account annexed Crimea where wind farms of 494.9 MW were launched earlier).
Today, the share of renewable energy of total electricity generation in Ukraine is 1.8%, and the share of the total cost of electricity is 8.3%.

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