Business news from Ukraine

Business news from Ukraine

UKRAINE’S LARGEST GAS PRODUCER WANTS TO BUILD 3 MW SOLAR POWER PLANT

JSC Ukrgazvydobuvannia plans to build a solar power plant with a capacity of 3.078 MW in Andriyivka (Kharkiv region) where the Shebelynka gas refinery is located, according to a report in the ProZorro e-procurement system. The expected cost of the construction project is UAH 82.324 million. The tender documents could be submitted before December 6, 2018.
Ukrgazvydobuvannia, fully owned by Naftogaz Ukrainy, is Ukraine’s largest gas producer, which provides about 75% of the total gas output in the country.
As reported, early 2018, another company of Naftogaz Ukrainy – Ukrtransgaz – launched a solar power plant with a capacity of 0.3 MW.

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TENDER TO BUILD SUBWAY TO VYNOHRADAR DISTRICT IN KYIV COMPLETED

Municipal enterprise Kyiv Metropoliten, the customer for construction of a subway line to the Vynohradar residential area in Kyiv, has reported that after a tender OJSC Kyivmetrobud offered the lowest price for the implementation of works and the acceptation procedure has been launched.
“In the ProZorro public procurement system, a tender for the construction of the Syretsko-Pecherska subway line section from the Syrets station to the Vynohradar residential area with a depot in the Podilsky district (the section from the Syrets station to the Pravdy Avenue station with two stations (Mostytska and Pravdy Avenue) and the section towards the Vynohradar station (the first stage of construction) was completed,” Kyiv Metropoliten reported last week on its Facebook page.
According to the report, the lowest price for the work was offered by OJSC Kyivmetrobud – UAH 12.214 million below expected value.
“In accordance with the legislation, the procedure for acceptance has begun,” Kyiv Metropoliten reported.
According to the screenshot of the corresponding tender from the Prozorro website posted in the same message, Kyivmetrobud offered to perform the said work for UAH 5.981 billion with VAT.
Kyiv Metropoliten announced a tender for the construction of a subway line from the Syrets station towards the Vynohradar residential area in the Podilsky district worth UAH 6.3 billion in January 2018. The date of the tender was repeatedly postponed. The tender completed recently was announced on September 11, 2018. The expected cost of work at the last auction fell to UAH 5.99 billion.

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BELARUS AND TURKISH INVESTOR PLAN TO BUILD RIVER PORT ON BORDER WITH UKRAINE FOR ACCESS TO BLACK SEA

Belarus is considering the possibility of building a river port on the Dnipro River in Gomel region near the border with Ukraine in order to use river-sea vessels to put out to the Black Sea. The Turkish investor Derin Shipping & Trading Co. might be involved in the project.
According to the state agency BelTA, Ambassador of Belarus to Turkey Andrei Savinykh states that the implementation of the project “will turn Belarus into a maritime state.” The project could be implemented by building a port terminal in the village of Nizhniye Zhary (Gomel region).
“Our Turkish partners are considering the possibility of building a port in Nizhniye Zhary, which will turn Belarus into a maritime state,” the official told journalists in Gomel during the visit of the Turkish delegation to the regional center.
It is assumed that the main volume of cargo turnover will be provided by oil products (Mozyr Oil Refinery is located near Gomel) and Petrikovsky GOK being under construction in Gomel region (the project of Belaruskali, the capacity is about 2 million tonnes of potassium chloride per year).

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STATE-OWNED UKRENERGO WANTS TO BUILD NEW FACILITIES TO BALANCE RENEWABLE ENERGY

National Energy Company Ukrenergo has urged Ukraine’s Energy and Coal Industry Ministry to announce a tender to build new highly maneuverable generating facilities to balance operation of renewable energy facilities, the company has said on its website. Ukrenergo recalled that in case of further rapid growth of green generation and an increase in its share, problems with its balancing may arise. “According to the results of the analysis, we modeled several scenarios for the development of events, provided that measures were not taken to properly balance green energy. In particular, the main negative consequences will be the restriction of renewable energy sources with the compensation of the feed-in tariff for unproduced electricity or the increase in the volume of coal generation and the restriction of nuclear power, given the need to increase opportunities for balancing. Both scenarios will be a significant obstacle to overcoming dependence on fossil fuels and improving the environment in the country,” the company said.
The company also said that any restrictions on the connection of renewable energy facilities and the provision of technical conditions are prohibited by the Transmission System Code, provided that the customer complies with the requirements of the Code.
“The development of renewable energy in Ukraine is an indicator of the country’s attractiveness to the international community. In this regard, the company expects to continue constructive cooperation with state security agencies in responding to potential threats to the Ukrainian energy system and supporting the initiative to build new highly maneuverable capacities,” Ukrenergo said.
Earlier, the Security Service of Ukraine, in a letter to the Prime Minister, expressed concerns about the destabilization of the country’s energy system due to the “excessive” issuance of technical conditions for the connection of renewable energy facilities.

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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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BORYSPIL INTERNATIONAL AIRPORT PLANS TO BUILD CARGO TERMINAL NEXT YEAR EVEN IF NO INVESTOR FOUND

State-owned enterprise (SOE) Boryspil International Airport plans to start building a cargo terminal in 2019 even if no investor is found, Director Pavlo Riabikin said at the Global Outlook 2018 conference organized by the European Business Association (EBA) in Kyivy. According to him, the existing cargo infrastructure of the Boryspil airport was formed in the late 1960s – early 1970s and it was designed to handle about 40 tonnes of cargo per day. “Today we process 110-120 tonnes of cargo a day, which is very problematic with the existing infrastructure,” Riabikin said.
According to him, in the past four years there has been a lot of talk about attracting investors and creating an investment project for the construction of a cargo terminal at the airport, but due to the fact that the state has few mechanisms for attracting investors to infrastructure projects, this has not been realized.
“Next year, if the ministry [the Infrastructure Ministry] fails to attract an investor, we plan to build a new cargo terminal based on existing capacities, but we will implement it using own forces. To be honest, the volumes of investment that we need in coming years make the implementation of the cargo terminal very difficult,” the head of the enterprise said.
Riabikin said that the project for the construction of the cargo terminal is not a profile for the airport, since the company is oriented, first of all, to passenger transportation.
“I think we are able to implement it [the construction of the cargo terminal] during a year and a half. The only question is whether we have the funds or the opportunity to attract them,” Riabikin said.

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