Kiev will continue the construction of a pedestrian bridge from the Obolonskaya embankment to Obolonsky Island, which has been carried out since 2020 at the expense of patronage funds and for which no money from the city budget is used, said Kiev Mayor Vitaly Klitschko.
“Kiev received funds to continue construction from the Metropolis of Greater Paris. These are earmarked funds that foreign partners allocated to us for the construction of this particular facility,” Klitschko wrote in his Telegram channel on Tuesday.
According to him, by the beginning of 2023 have already installed three supports of the bridge and began installing the fourth, purchased materials.
“For the funds provided by the Metropolis of Greater Paris, will complete the installation of the fourth pillar of the bridge, purchase and install auxiliary and partially run structures, purchase steel structures,” – said the mayor of Kiev.
He specified that according to the project the bridge will be based on four piers, two of which are located in the strait. The width of the pedestrian object will be 4 m, length – 164 m.
“The bridge will be comfortable for the movement of small groups of people. The passage of small vessels in the bay of Obolon facility will not interfere. Obolonsky island will be equipped as a modern recreation area for Kiev citizens with the preservation of flora and fauna “- summed up Klitschko.
KMZ Industries (Karlovskiy Machine Building Plant, KMZ, Poltava region) at the end of 2022 has manufactured and delivered the equipment necessary for the completion of construction of the “dry” port of Alebor Group located on the territory of Hlybotskiy community (Chernivtsi region) near the border with Romania.
According to the Facebook page of the engineering company, KMZ is ordering construction of the first stage of the export grain terminal with a capacity of 30 000 tons and loading capacity of 300 tons per hour.
Altogether Alebor Group is planning several stages of terminal construction for 2023-2024. In the long term, the “Vadul-Siret Terminal” project will transship Ukrainian agricultural products into narrow gauge railroad wagons for subsequent shipment to the Romanian port of Constanta, thus giving exporters an alternative to Ukrainian sea ports.
As reported, the head of Hlybock community Gregory Vanzuryak in August 2022, wrote that the facility will be equipped with silos up to 200 thousand tons and a capacity of handling up to 3 million tons / year.
He said the first phase of the $20 million project, which will be completed in January 2023, will store up to 60,000 tons of crops and transship up to 1.2 million tons of grain annually to Romania.
Vanzuryak noted that the total construction cost of the facility will be $40 million.
Alebor Group in July-2022 announced the purchase of land for the construction of a terminal for transshipment of crops from the wide Ukrainian railroad track to the narrow European railroad track, as well as an elevator with a total capacity of 60 thousand hectares.
Alebor Group was founded in 2014. Its founder is entrepreneur Alexey Kustov.
In addition to Voronivtsi KPP, the group includes Krystyniv KPP (Cherkasy region) and KPP Chestne (Odessa region), as well as trucking companies Boleko (Cherkasy region), Autoera (Odessa region) and a trading division. The total fleet of the companies amounts to 210 grain carriers.
Before the full-scale Russian invasion into Ukraine, the group of companies had the capacity to export 1.2 million tons of grains and oilseeds per year. The total capacity of the three elevators is 315 thousand tons of simultaneous storage.
KMZ Industries produces flat-bottom and cone-bottom silos, flour storage silos, Brice-Baker mine dryers (British design) and chipboards (Ukrainian design), transport equipment (elevator, chain, belt and screw conveyors), separators for grain cleaning, installs and automates elevator equipment and technological processes in grain storages.
In 2020 the plant increased revenue by 35% to 395.26 million hryvnias and made 5.05 million hryvnias of net profit against a loss of 25.37 million hryvnias. In 2021, it planned to increase production by 30-50%.
As of the fourth quarter of 2021, Dragon Capital Investments Limited (Cyprus), whose ultimate beneficiary is Tomas Fiala, owns 80% of KMZ JSC shares, while Variant Agro Bud LLC holds 20%.
By the end of this year, metal prices and logistics costs have dropped significantly, which should help the demand
Russia’s military aggression against Ukraine has had a significant impact on the entire economy and the construction industry in particular. However, after a few months of war, some of the customers have already returned to the construction of commercial objects that were frozen at the beginning of the full-scale war or damaged as a result of the hostilities.
Current situation
Rauta is a leading supplier of modern solutions for quickly erected buildings – sandwich panels, ventilated metal facades, steel frames, load-bearing profiles, etc. The company offers services in design, installation of supporting and enclosing structures, as well as general contracting on objects of any complexity. The main focus of the company’s business is the import of Ruukki products for commercial construction projects. We use production facilities located in Poland, Estonia and Ukraine.
After the beginning of the active war phase due to a significant decrease in demand for our products the company’s business was significantly reoriented. We began to be approached by clients with requests to rebuild buildings destroyed in the fighting. Having a deep understanding of the technologies and principles of reconstruction, we began to actively engage in the restoration of buildings and made it a separate line of business. Whereas before February 24 the company was restoring only one building in Kiev, by the end of 2022 we had implemented 7 projects in three cities of Ukraine, and the start of reconstruction of several more is planned for 2023.
Growth against the backdrop of a falling market
In 2021 there was a situation on the market when the demand for Ruukki products greatly exceeded the capacity of production and the factories were not able to fulfill all orders. Starting from 24 February, the number of orders for new construction projects decreased sharply, and the main deliveries were for objects that began construction last year. Fortunately, almost all of our sandwich panel customers continued to build facilities. Among them are low-temperature warehouse and business center in Kiev, dairy farm and dairy plant in Ternopil region. Therefore, in 2022 Rauta has a 40% year-on-year decrease in sales, which is a relatively good indicator against the background of a more than 70% fall in the sandwich panel market. At the same time, thanks to the growth of the construction and general contracting services area, the company’s total revenue increased by 7% compared to 2021.
Price waves
Ruukki products are made only from European rolled steel, the price of which rose to a peak in August 2021 and halved in early 2022. At the same time in the cost of panels, galvanized steel with polymer coating accounts for about 25%.
At the same time, given the substantial increase in the cost of transportation services and the rise in the euro, the price of imported sandwich panels for the year increased by 50% in hryvnia equivalent. Nevertheless now there is a tendency in the market to considerable decrease of transport cost as well as inertial fall of world steel prices that in the nearest perspective can lead to reduction of sandwich-panels prices by 15-20%.
The main method of delivery in the market of metal construction is road transport. In 2021 the cost of delivery by truck from Poland to Kiev was about 65 thousand UAH. In the spring of 2022 delivery from Poland due to rising fuel prices and limited supply of transport has doubled in price, and in December 2022 was back to the prewar level.
In 2021 the peak cost of load-bearing steel reached almost 70 thousand UAH per ton, mainly due to the high cost of rolled steel. At the end of 2022 due to the decline in metal prices by almost half the cost of steel decreased by about 23% – to 54 thousand UAH per ton.
Recovery Opportunities.
In the spring of 2022, when the company had less workload on the main projects, we have developed a technology for the construction of frameless houses made of sandwich panels, which can be used for ultra-fast construction of houses and cottage towns. To demonstrate the benefits of this technology, we plan to install two demonstration frameless houses near Kiev. For this purpose we have already made house sets in Poland for 20 and 40 square meters houses and we are going to install them in spring. Now we can see the interest in this technology on the part of institutional funds and private investors in the segment of cottage building, which will grow rapidly after Ukraine’s victory.
Another innovation of ours is the development of technology for construction of multistoried buildings using sandwich panels as outer walls, which allows a developer to get up to 5% more space.
In general it can be noted that the technology of rapid construction with steel solutions has a great perspective in the reconstruction of commercial real estate – where the investor understands: the sooner the business is built, the sooner it will begin to bring income.
CONSTRUCTION, DEMAND, galvanized steel, RAUTA, STEEL, STEEL CONSTRUCTION
Hotel operator Ribas Hotels Group (Odessa) started construction of WOL.GREEN Polyana complex in Zakarpattya, Ribas Hotels Group founder Artur Lupashko said,
“We are implementing our new project WOL.GREEN Polyana together with the Arena Bud development company in Zakarpattya. Construction has already begun,” he said on Facebook.
WOL.GREEN Polyana – is a complex of 78 apartments with own SPA and swimming pool, co-working place, fitness-centre, equipped sportive zones in the open air.
Lupashko reminded that the format WOL home+hotel, realized by the operator, suppose the possibility of short-term and long-term rent. In this case investors are offered to become a co-owner of the complex, to buy an apartment, which will be managed by the company Ribas Hotels Group.
“We are constantly moving and developing our hotel industry and country in all conditions and we see that the Ukrainian investor is ready to invest in the future of our country”, – added Lupashko.
Ribas Hotels Group cooperates (management, franchising and booking) with 26 hotel and restaurant properties (city, beach and ski hotels). The company’s portfolio includes business hotels Wall Street by Ribas and Bossfor by Ribas, hotel Wol.121 by Ribas (Odessa), ski hotel Ribas Karpaty (Bukovel, Ivano-Frankivsk region), beach complex Richard by Ribas (Gribovka, Odessa region). Hotels in Lviv, Kyiv, Odessa and other cities, as well as in Poland are now at the design and construction phase.
The total room stock of the network is more than 1 thousand rooms in different forms of cooperation in eight cities and resort locations in Ukraine.
UAH 7.6 billion will be allocated for construction, reconstruction and capital repairs in 2023 according to the Program of economic and social development of Kyiv in 2021-2023, which is half as much as in 2022.
According to the press service of the department of economy and investment of the Kyiv City State Administration (KCSA), the relevant decision to amend the program adopted by the deputies of the Kiev City Council on Thursday.
According to the industry distribution the largest amount of the budget funds will be directed on the projects in the field of transport, transport infrastructure and road sector – 3,6 billion UAH, where about 1 billion UAH is the road fund. According to the program 2.7 billion UAH will be directed to housing and communal services, 792.2 million UAH to health care and 394.7 million UAH to education.
It is noted that in 2023 in the capital will continue reconstruction and building on the sections of the Kiev ring road, reconstruction Shulyavskogo overpass and development of the capital subway.
Much money in the sphere of housing and communal services is provided for large infrastructure projects, the implementation of which is important not only for Kiev, but also for the whole Kiev region. In particular, we are talking about reconstruction of Bortnytska aeration station and consolidation of sludge fields dikes near it, technical re-equipment of household waste landfill sites in Podgortsy village, reconstruction and technical re-equipment of “Energia” plant.
More than 101 million UAH will be directed to the reconstruction of sewage collectors and water supply facilities.
Funds will also be used to restore facilities after enemy’s rocket attacks. In particular, to repair CHP-5 and CHP-6, as well as to complete the restoration work started this year on the residential buildings on Glubochytska and Ostapa Vyshny streets.
The Ministry of Development of Communities and Territories of Ukraine has updated indirect housing construction cost indicators by region for the first time since the war, the ministry’s press service said, citing Deputy Minister Natalia Kozlovskaya.
The corresponding order Minregion signed on November 17, 2022.
Previously, since February 24, 2022, due to the military aggression of the Russian Federation, state statistics agencies suspended publication of statistical information needed to calculate the indirect cost of construction.
Given the importance and the need to address this issue, according to Kozlovska, the Ministry of Regional Development initiated a change in the procedure for determining and applying the indirect cost of housing construction by regions of Ukraine, which allowed to restore the process.
“During martial law to calculate the indirect cost of construction, the indicators calculated as of January 1, 2022, adjusted for the consumer price index provided by the State Statistics Committee,” – explained the deputy minister.
The updated figures are calculated as of October 1, 2022 and are published on the website of the Ministry.
The indirect indicators of housing construction costs by regions are used to determine the amount of public investment directed to the construction of housing for citizens in need of better housing conditions and state support in accordance with legislative acts of Ukraine, to determine the share of public investment in the construction of such housing and the amount of soft loans granted to certain categories of citizens to address housing issues.
