Business news from Ukraine

GESS INTERESTED IN PRIVATIZATION OF KHERSON CHPP – ENERGY EFFICIENCY AGENCY

KYIV. Nov 23 (Interfax-Ukraine) – Green Energy Sustainable Solutions (GESS) is interested in privatization of Kherson combined heat and power plant (CHPP), the press service of Ukraine’s State Agency on Energy Efficiency and Energy Saving has reported after a meeting of Agency Head Serhiy Savchuk with GESS CEO Shaun Lee.
“Among the projects considered by the company is participation in privatization and, in case of victory, further reconstruction of Kherson CHPP. The new station will operate on biomass. Its capacity will be 50 MW of electricity and 50 MW of thermal energy. The estimated volume of investments is EUR 300 million,” the press service said.
For today, GESS in Ukraine is engaged in projects for the production of biogas, and electricity at solar power plants.
As reported, Ukraine’s State Property Fund (SPF) offers halving (up to UAH 75.74 million) the starting price of Kherson CHPP for a new privatization tender.
Earlier, the SPF tried to sell Kherson CHPP at a starting price of UAH 155 million, but there were no one willing to buy the shares.

UKRZALIZNYTSIA INTENDS TO BECOME MEMBER OF EBA AND ACC

KYIV. Nov 23 (Interfax-Ukraine) – PJSC Ukrzaliznytsia has expressed its readiness to join the European Business Association (EBA) and the American Chamber of Commerce (ACC).
According to the press service of Ukrzaliznytsia, the company has already applied to these organizations with the relevant letters.
According to management of the company, membership in the EBA and ACC will help build a constructive dialogue with the market participants and defend their own interests in business areas.
According to Andriy Riazantsev, the director on economics and finance at Ukrzaliznytsia, the company is at the final stage of corporatization and the rules and principles of the company management have already been changed.
“At the same time, we expect market participants to change attitude towards the company and perceive it as an equivalent business partner. Therefore the company intends to join these recognized business associations, which will help analyze, forecast, and improve our joint work. We are for ensuring that all participants work in equal conditions, in particular to avoid the situation when one company because of non-market tariffs incurs losses, while the other, due to this, becomes richer,” he said.

KLITSCHKO SIGNS AGREEMENT ON COOPERATION WITH CHINESE CONSORTIUM FOR BUILDING FOURTH SUBWAY LINE IN KYIV

KYIV. Nov 23 (Interfax-Ukraine) – Kyiv Mayor Vitali Klitschko and Vice Chairman of China Pacific Construction Group Guo Qing have signed an agreement on cooperation between Kyiv City State Administration and the Chinese consortium, which includes China Railway International Group Co., Ltd and China Pacific Construction Group, in implementing the project for the construction of the fourth metro line in Kyiv.
Klitschko wrote on his Facebook page the agreement provides for setting up a working group of Ukrainian and Chinese specialists who will develop the best technical and financial solutions for the implementation of the project.
The cost of construction is estimated at $2 billion, while 85% of the projected cost of the project will be secured at the expense of a loan from Chinese financial institutions.
“The possibility of attracting this loan is being considered with the provision of state guarantees for repayment of the loan funds. The loan repayment period is from 15 to 20 years. At the same time, the interest rate will be the subject of negotiations,” the mayor said.
The project foresees the construction of a new subway line with a length of almost 18 km with 13 stations. A transfer station will also be built between the ring train line and the new fourth subway line. The expected construction period is five years.

PROJECTED GROWTH OF PRODUCTION IN AEROSPACE INDUSTRY IN UKRAINE ESTIMATED AT 30% IN 2017 – SSAU

KYIV. Nov 22 (Interfax-Ukraine) – The projected growth of production in aerospace industry of Ukraine in 2017 is estimated at 30-33% compared with 2016, the press service of the State Space Agency of Ukraine (SSAU) has reported.
The figures were presented at a meeting of SSAU devoted to the results of the industry in January-September 2017.
According to the published data, in January-September 2017, production in the sector grew by 21.3% year-over-year and sales – by 23%.
“The sector enterprises produced and sold goods for some UAH 2.9 billion. Total gross production (taking into account the uncompleted projects) reached over UAH 3.68 billion,” the press service said.
The export’s share of total sales was 51.5%. Exports to the EU countries and the United States grew.
Pivdenne (Yuznoye) Design Bureau (Dnipro), Hartron (Kharkiv), Enterprise of Special Engineering Arsenal (Kyiv), Kommunar Production Association (Kharkiv), Kyivprylad Production Association (Kyiv) and Instrument-Making Research Technological Institute (Kharkiv) saw profit.
The space agency said that since early 2017 with the participation of enterprises of the Ukrainian space industry, seven launches have been carried out within international cooperation: the launch of the U.S. Antares launch vehicle, which provides commercial flights to deliver cargoes to ISS under a contract with NASA (Ukraine produced the first stage of the LV), three launches of the European Vega LV with the Ukrainian engine of the fourth stage involved in the ESA programs, as well as three launches of the Russian Soyuz-FG LV with the Ukrainians control system involved in the international programs.

AUTOMAGISTRAL-YUG STARTS BUILDING NEW RUNWAY FOR ODESA AIRPORT

ODESA. Nov 22 (Interfax-Ukraine) – Automagistral-Yug (Odessa) has begun to build a runway for the Odesa International Airport and on its Facebook page showed photos of the start of work.
“The beginning of the implementation of a major infrastructure project – the preparatory stage of the construction of a new runway at the Odesa International Airport! The completion of construction works for the first start-up complex is planned by the end of 2018,” the company said in a publication on November 18, 2017.
The airport’s press service on Monday was unavailable for comments.
As the source familiar with the situation told Interfax-Ukraine, the company carried out these works about 1.5 months ago under the 2013 project. According to the source, the company expects to finance works from the national budget after a tender conducted in 2013. However, it was hard to say if the works were approved by profile agencies.
Another source of Interfax-Ukraine familiar with the technical details of the construction project expressed doubt about the appropriateness of carrying out construction works for the new runway using the 2013 project. The source believes that the design parameters of the facility will not allow it to be exploited.
Automagistral-Yug is one of the largest contractors of Ukravtodor and constantly wins tenders for road works across the country. In 2015, the company already cooperated with Odesa airport, having carried out a complex of works on construction of approaching roads and parking lots for motor transport.

UKRAINE INCREASES PIPE OUTPUT BY 25% IN JAN-OCT

KYIV. Nov 22 (Interfax-Ukraine) – The major pipe enterprises of Ukraine in January-October 2017 increased production of pipes by 24.5% compared to the same period last year, to 876,000 tonnes, including in September they manufactured 93,600 tonnes.
The Ukrtruboprom association told Interfax-Ukraine its enterprises in January-October 2017 increased pipe production by 28.3%, to 582,100 tonnes, in September making 63,500 tonnes.
Khartsyzsk Pipe Plant (Donetsk region), located in the ATO zone, in January-October 2017 made 3,400 tonnes of pipes (it was idle in March-October), whereas in January-October of 2016 it made 13,200 tonnes.
Pipe production at Interpipe Nyzhniodniprovsky Pipe Rolling Plant in the period rose by 65.3% compared to January-October 2016, to 212,700 tonnes (22,900 tonnes in October), Interpipe Novomoskovsk Pipe Plant decreased output by 12.8%, to 81,400 tonnes (9,600 tonnes in October), while Interpipe Niko Tube raised production by 37.2%, to 247,100 tonnes (28,400 tonnes in October).
Dnipropetrovsk Pipe decreased pipe production by 18.8%, to 15,500 tonnes, making 500 tonnes in October. Production at Centravis grew by 7%, being 15,300 tonnes of stainless pipes (1,600 tonnes in October).
Trubostal saw an 8.7% rise in pipe production, to 2,500 tonnes (200 tonnes in October) and Nikopol Steel Pipe Plant YUTIST saw a 61.5% rise, to 4,200 tonnes (300 tonnes in October).
Mariupol Illich steel works, which is not a member of the association, saw a 75.6% rise in pipe production in January-October 2017, to 131,000 tonnes (14,500 tonnes in October) and production at Kominmet grew by 7.1%, to 162,800 tonnes (15,600 tonnes).
Luhansk Pipe Rolling Plant, created on the basis of Luhansk Pipe Plant, remained idle in January-October 2017. AG Stal LLC was also idle in January-October 2017.