KYIV. Nov 27 (Interfax-Ukraine) – Infrastructure construction projects may become a driver for development of commercial real estate in Ukraine in 2018, if they are subject to support by government-funded programs, if international investors are attracted, in particular the World Bank, the European Bank for Reconstruction and Development (EBRD) and the European Investment Bank (EIB).
Director of the investment and projects department of Lviv City Council Olha Syvak said at a press briefing in Kyiv on Thursday, several infrastructure projects are already awaiting financing from European investors.
“Lviv has submitted two large investment applications to the European Investment Bank. The documents have been ‘hanging” for a year and a half. We communicate directly with Luxembourg bankers, they say: there are packages for Ukraine, there is an infrastructure project for the development of cities worth EUR 400 million, there is a credit line, while the government does not make any moves to take this money,” Syvak said.
She also said that if the government of Ukraine shows interest in the issue, the country can receive significant financing for infrastructure projects in the short term.
At the same time, Head of DLA Piper real estate practice in Ukraine Natalia Kocherhina said that while banks expect the reaction from the Ukrainian government, private investors are already investing in industrial, especially in the port infrastructure.
She said that the development of this industry can give impetus to commercial real estate.
KYIV. Nov 27 (Interfax-Ukraine) – The Ukrainian government has approved an updated government targeted defense program “Corvette” for 2011-2028 on the creation of multi-purpose combat ships of the corvette class in the interests of the Ukrainian Navy, the implementation of which was actually stopped in the conditions of the new military-political situation in the country in 2014.
According to sources of Interfax-Ukraine in the government, according to the draft government resolution drawn up by the Defense Ministry and approved at the government meeting on Wednesday, the tasks, activities, terms of implementation, as well as the volumes and sources of financing of the government program were specified.
In accordance with the new version of the document, the main goal of the program is to build ships of the corvette class to ensure the ability of repelling aggression by the navy and curbing threats to national security and protecting the interests of the state.
According to the new version of the government program, the problem is the need to overcome transnational threats in the Black Sea-Azov region caused by the annexation of the Autonomous Republic of Crimea by the Russian Federation and the loss of Ukraine’s naval potential.
According to the updated document, the program is designed to ensure the provision of the navy with modern ships capable of restraining armed aggression at sea, as well as to conduct military operations in the far and near sea zones in order to protect the state border, in particular, in accordance with Ukraine’s international obligations.
The deadline for the implementation of the defense program has been shifted from 2021 to 2028. The total volume of public financing was increased by UAH 15.72 billion (by 97%), to UAH 31.93 billion from UAH 16.22 billion. The delivery of the head ship to the customer, planned earlier for 2016, is scheduled for 2022. Until 2028, it is planned to build four corvettes.
KYIV. Nov 27 (Interfax-Ukraine) – Ukraine is negotiating with Iraq to supply 1 million smart meters, the press service of the Ukrainian Chamber of Commerce and Industry (UCCI) has said.
“Now the approval of this contract by the ministries is being completed and soon Ukraine will start deliveries,” the Iraqi head of the Iraqi-Ukrainian Business Council said.
According to the UCCI, Iraq’s total need for smart meters is 2 million units.
As reported, the Ukrainian manufacturer of meters NIK signed an agreement with the British CyanConnode to supply equipment and software for smart measuring systems for $29 million.
According to CyanConnode, within the order about 1 million sets of equipment and software will be supplied within three years. As payment for the equipment CyanConnode will receive $13 million, another $16 million will be received as payment for the use of software during ten years after the installation of finished products.
NIK LLC (Kyiv) is one of the largest manufacturers of measuring instruments and automated systems for integrated energy resources accounting in Eastern Europe.
Ukrainian Foreign Minister Pavlo Klimkin and EU High Representative for Foreign Affairs and Security Policy Federica Mogherini have signed a document titled “High Level Understanding on TEN-T Core Network Extension Maps to Ukraine.”
“One of the important practical results of the Eastern Partnership summit in Brussels was the signing by Ukrainian Foreign Minister Pavlo Klimkin and EU High Representative Federica Mogherini of [the document on] a High Level Understanding on TEN-T Core Network Extension Maps to Ukraine,” the ministry’s press service reported on Saturday.
According to the report, this decision will help increase the competitiveness of Ukrainian transport corridors, improve logistics and simplify the formalities in the transport sector between Ukraine and the EU.
Klimkin also wrote on Twitter: “Just signed High Level Understanding on TEN-T core network extension maps to Ukraine. An important step towards further integration of Ukrainian and EU transport networks.”
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.
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.
