Business news from Ukraine

VOLUME OF CONSTRUCTION PRODUCTS PRODUCED BY TYPE IN JAN-APR OF 2020 (MLN UAH)

Volume of construction products produced by type in Jan-Apr of 2020 (Mln Uah)

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UKRAINIAN PRESIDENT CREATES COUNCIL TO IMPLEMENT BIG CONSTRUCTION PROJECT

Ukrainian President Volodymyr Zelensky by his decree ordered to create the coordination council to implement the Big Construction project led by Deputy Head of the President’s Office Kyrylo Tymoshenko.
“To establish a coordination council for the implementation of the Big Construction program as an advisory body under the President of Ukraine, which main task is to monitor the situation and develop proposals for implementing effective measures to implement the Big Construction program,” Zelensky said in decree No. 246/2020 dated June 23, posted on the president’s website.
By the same decree, Zelensky decided to establish that this coordination council is authorized to receive the necessary information, documents and materials from the government and local governments, enterprises, institutions, organizations; invite to meetings and hear information from representatives of ministries, other central and local executive authorities, heads of state-owned enterprises, institutions and organizations on issues within its competence.
Zelensky by this decree approved the staff of the council.
So, Tymoshenko was appointed the head, and the council also includes Minister of Infrastructure of Ukraine Vladyslav Krykliy, Minister of Health Maksym Stepanov, Minister of Development of Communities and Territories Oleksiy Chernyshov, Head of the State Automobile Roads Agency Oleksandr Kubrakov, First Deputy head of the President’s Office Serhiy Trofimov, and Deputy Head of the President’s Office Yulia Sokolovska.
The coordination council also includes Director General of the Directorate for Regional Policy and Decentralization of the Government of Ukraine Olha Buhai, Director of the Department for Infrastructure and Technical Regulation of the Secretariat of the Cabinet of Ministers Natalia Kozlovska (by her consent), Advisor to the head of the Government of Ukraine Mykhailo Podoliak and Advisor to the Minister of the Cabinet of Ministers Olena Symonenko (by consent).
This decree comes into force on the day of its publication.

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CONSTRUCTION OF NEW AERODROME IN DNIPROPETROVSK REGION WILL BEGIN IN SUMMER OF 2020

The construction of a new aerodrome of the international airport in Dnipropetrovsk region will begin in the summer of 2020. The press service of Dnipropetrovsk Regional State Administration said, with reference to head of the administration Oleksandr Bondarenko, a designer is now being selected, he will be known in December 2019. In May 2020, a general contractor will be determined. According to the project, which Bondarenko presented to Speaker of the Verkhovna Rada Dmytro Razumkov, the airport will have a runway that can accept all types of aircraft, and a modern terminal. It is planned that its throughput will reach 3 million people a year.
“Dnipro for many years has been without an air artery that could show the city’s capabilities. We must pay tribute to MPs who chose Dnipro and the region. They made every effort to talk about the implementation of the project today. I hope that in the spring of 2022 the airport will be able to accept modern large aircraft that will provide both economic and tourist growth,” Razumkov said.
Dnipropetrovsk Regional State Administration noted that the regional state administration and a private investor will work on the project simultaneously. A runway will be built for state funds: UAH 1 billion was stipulated in the 2020 national budget for this purpose. It will be 3.2 km long and will have modern navigation systems, meteorological and lighting equipment.
The total project cost is $180 million.

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PRESIDENT OF UKRAINE INSTRUCTS TO ERADICATE CORRUPTION IN ARCHITECTURE AND CONSTRUCTION

President of Ukraine Volodymyr Zelensky has instructed to eradicate total corruption in the field of state architectural and construction control and urban planning by the end of 2019, a president’s press service reported. Zelensky set the appropriate task to Minister of Development of Communities and Territories Olena Babak during a meeting with the leadership of the Verkhovna Rada and the Cabinet of Ministers in the President’s Office.
The head of state noted the need to switch rendering of the administrative services in construction to an electronic format and introduce automatic registration in the register of approval documents.
As the President’s Office reported, Zelensky commissioned Minister of Justice of Ukraine Denys Maliuska to change the software of real estate and business registers to stop unauthorized access. Besides, by the end of June 2020, Maliuska must ensure the formation of the legislative framework for the operation of an electronic notarial system.

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DTEK FINISHES CONSTRUCTION OF PRYMORSKA WIND FARM

DTEK has completed construction of Prymorska wind farm (Botiyeve, Zaporizhia region) with a capacity of 200 MW, an Interfax-Ukraine correspondent has reported.
DTEK CEO Maksym Tymchenko said that investment in the project reached EUR 321 million, including EUR 180 million are funds borrowed from German banks and secured by foreign export-credit agencies.
Prymorska wind farm will annually generate 700 million kWh of electricity.
The plant consists of two phases 100 MW each and has 52 wind turbines made by General Electric.
During the construction of the second phase Ukrainian contractors received orders for EUR 30 million.
DTEK was established in 2005 to manage the energy assets of the System Capital Management Group (SCM, Donetsk) of Rinat Akhmetov. The functions of strategic management of the enterprises of the group that make up the vertically integrated chain for the extraction and enrichment of coal, production and sale of electricity were delegated the holding.

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UKRAVTODOR AND CHINESE COMPANY TO IMPLEMENT FIRST PHASE OF ORBITAL ROAD CONSTRUCTION AROUND KYIV

The State Automobile Roads Agency (Ukravtodor) and China’s Poly Changda Engineering Co. Ltd have signed a memorandum of cooperation as part of the implementation of the first phase of construction of Big orbital roads around Kyiv connecting M-05 Kyiv-Odesa and M-06 Kyiv-Chop highways.
According to a posting on the website of the Infrastructure Ministry, during signing the document, Infrastructure Minister Vladyslav Krykliy said that the memorandum is an important stage in cooperation for the start of construction of the orbital road.
“Our goal is to ensure 40% growth of the country’s economy in five years, and for this we need to ensure large-scale construction throughout the country. Any infrastructure project gives a return with the greatest multiplier. Each dollar invested today in a year will give plus $2 for the economy. We are very pleased that Poly Changda Engineering shares our big investment plans, and especially in such important projects as the Great Orbital Road around Kyiv. In Ukraine, there was no experience of concession roads, so it is very important to start these projects with large reliable strategic partners,” the press service said, citing Krykliy.
At the same time, Krykliy expressed his expectations that both sides will be able to quickly complete all the required preparatory technical and economic calculations and begin construction next year.

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