Business news from Ukraine

Ukrenergo signs agreement on financing consulting services on joint contracts with KfW

KYIV. Sept 11 (Interfax-Ukraine) – National energy company Ukrenergo and KfW (Germany) have signed an agreement on providing grants to finance consulting service in joint projects, the company’s press service has reported.
The press service said that the grants are provided from the special fund of the Federal Ministry of Economic Cooperation and Development of Germany (BMZ) via KfW to finance advisors to be selected and contracted by Ukrenergo.
In particular, one of the agreements provides for financing of monitoring services for the implementation of the current project entitled “Reconstruction of Substations in Eastern Ukraine.” The second agreement provides for the preparation and monitoring of the implementation of a new project entitled “Improving Energy Efficiency in Power Transmission (Reconstruction of Transformer Substations) II.”
The agreements signed on September 6 provide for the selection one of the best European companies that will manage the implementation of projects on behalf of Ukrenergo at an open tender, in accordance with the criteria of KfW.

WESTINGHOUSE, POLENERGIA, EDF WANT TO PARTICIPATE IN UKRAINE-EU ENERGY BRIDGE PROJECT – MINISTRY

KYIV. Sept 9 (Interfax-Ukraine) – Westinghouse Electric Sweden AB, Polenergia International S.àr.l. and EDF Trading Limited, a consortium of companies intends to participate in the project on establishing the Ukraine-EU Energy Bridge, the press service of Ukraine’s Energy and Coal Industry Ministry has reported.
“The consortium consisting of Westinghouse, Polenergia and EDF has sent a concept note and the feasibility study for public private partnership in the project,” the ministry said.
The press service said that a working group for implementing the project, created under ministry order No. 660 dated October 17, 2016, has approved the conclusions after analyzing the efficiency of the implementation of the project and sent them to the Economic Development and Trade Ministry for approval. In addition, the profile section of the research and technical council of the Energy and Coal Industry Ministry endorsed the scheme for connecting reactor two of Khmelnytsky nuclear power plant (NPP) to the European power grid.
The Ukraine-EU Energy Bridge project envisages the organization of transmission from reactor two of Khmelnytsky NPP to the European power grid. The funds that will be received from exports of this electricity will be used to finance construction of reactors three and four of the NPP.
As reported, the decision to implement a pilot project entitled “Ukraine-EU Energy Bridge” was made by the government in June 2015.
Earlier National Nuclear Generating Company Energoatom held negotiations on the project with Kulczyk Investments.

GERMANY’S FRESENIUS MEDICAL CARE READY TO RESUME INVESTMENT PROGRAM ON CREATION OF HEMODIALYSIS CENTERS

KYIV. Sept 9 (Interfax-Ukraine) – Germany’s Fresenius Medical Care, the manufacturer of products and services for patients with impaired kidney function, is mulling the possibility of resuming the investment program on construction of a chain of hemodialysis centers with a total cost of EUR 30 million if government’s bills on healthcare reform (No. 6327) are adopted and the rules for procurement of healthcare services is launched.
Fresenius Medical Care Ukraine Director Volodymyr Podvorny told reporters on Thursday that under the investment program approved in 2008, it was planned to build 10 hemodialysis centers in different regions of Ukraine where the hemodialysis services will be provided in line with newest international recommendations and standards.
“Under this program we have opened two centers – in Chernihiv and Cherkasy. They have been working since 2009. Then the program was frozen. We are ready to resume this program if bills on healthcare reform that will give an opportunity to purchase healthcare services are adopted. Money will really go after patients, and they will be able to choose a clinic,” he said.
At the same time, he predicts that the adoption of the relevant bills will significantly increase investment in the health sector.
Podvorny said that “hemodialysis is an area that is completely ready for the introduction of public procurement of healthcare services, first of all, due to the fact that the legislative base is completely ready for it.”
“Since 2011, the officially approved methodology for calculating the cost of hemodialysis, as well as approved protocols and standards of treatment, has been in effect. There is a register of patients that allows you to understand the scope of services,” he said.
Podvorny said that, according to the officially approved methodology for calculating the cost of hemodialysis services, its cost in the Fresenius hemodialysis centers of is UAH 1,910, while in other private clinics it is about UAH 2,000. At the same time, according to him, state-owned clinics often “have no understanding of the cost of hemodialysis services.”

GOOGLE LAUNCHES UKRAINIAN VERSION OF AIRLINE TICKETS SEARCH ENGINE

KYIV. Sept 8 (Interfax-Ukraine) – Google on Wednesday officially launched Google Flights, the Ukrainian version of its airline tickets search engine that started in September 2011.
Google said on Wednesday that the service provides a forecast for the price changes.
The engine also recommends alternative airports or dates for trips when searching for cheaper trip options.
Ukrainian language has become the 51st language in the Google Flights service.

NIBULON PREPARING TWO SHIPS FOR LAUNCH IN SEPT

KYIV. Sept 8 (Interfax-Ukraine) – Nibulon is finishing building the last (eighth) non-self-propelled B2000 vessel and self-propelled dressing SDS-15 vessel.
The company said in a press release that now the company is actively preparing the B2000 vessel for tests. The ship will be launched on September 8 and finally placed in operation by the end of this month.
Nibulon said that the company also started building non-self-propelled B5000 vessels and the non-self-propelled grain loading P-38 vessel.
In 2017-2022, Nibulon seeks to build 24 non-self-propelled B5000 vessels at its shipyard.
“Thanks to the modernization of the shipyard and cooperation with the European Investment Bank Nibulon will have a chance to build up to 15 freight vessels a year and expand its fleet to 100 units in coming years,” the company said.
According to the press release, in 2017, Nibulon shipping company transported around 820,000 tonnes of agricultural products up and down the Dnipro and Southern Bug rivers. Over 34,000 trucks would have required transporting this amount of freight.

U.S. GREENBRIER WANTS TO ORDER ABOUT 10,000 WAGONS IN UKRAINE WITH MAXIMUM LOCALIZATION OF PRODUCTION

KYIV. Sep 8 (Interfax-Ukraine) – U.S.-based Greenbrier is interested in cooperation with the state-run Ukrainian railway operator, Ukrzaliznytsia, and is considering the possibility of building about 10,000 wagons in Ukraine with maximum localization of production.
This was discussed at a meeting of Ukraine’s Infrastructure Ministry and Ukrzaliznytsia with representatives of Greenbrier in Kyiv on September 5.
Infrastructure Minister Volodymyr Omelyan noted that the arrival of strategic investors in Ukraine means a new quality of transport infrastructure and economic development, while his deputy Nadiya Kaznacheeva added that Greenbrier’s entry into the Ukrainian market can be an important step for the development of rail transportation, and is also a powerful signal for other foreign investors.
In continuation of the negotiations, the parties agreed to move to more practical cooperation, namely, the development of a potential model of cooperation with the participation of Greenbrier, Ukrzaliznytsia and international financial institutions.
It was reported earlier that PJSC Ukrzaliznytsia intends to create a leasing company in conjunction with Amsted Rail and The Greenbrier Companies.
Greenbrier, in particular, develops, builds and sells freight cars in North America and Europe.