Business news from Ukraine

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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OWNER OF THE DCH GROUP READY TO INVEST $100 MLN IN CONSTRUCTION OF NEW DONETSK AIRPORT

Ukrainian businessman, the owner of the DCH Group, Oleksandr Yaroslavsky is ready to invest $100 million in construction of a new Donetsk airport.
“I have been thinking for a long time and have decided to give $100 million and build a new airport in Donetsk. Considering that I understand this, our company has experience in both construction and operation, I am ready to build the new airport on the site of the completely destroyed old one,” he said in an interview with Interfax-Ukraine on Tuesday in Mariupol on the sidelines of the First Investment Forum.
Yaroslavsky said that the airport will become a symbol of the return of peaceful life.
The businessman said that the implementation of this project will be possible after the completion of the process of reintegration of the occupied territories of Donbas into Ukraine.

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EUROPEAN INVESTMENTBANK TO PROVIDE EUR 450 MLN FOR CONSTRUCTION OF LVIV NORTHERN BYPASS

The European Investment Bank (EIB) has approved the provision of a credit line of EUR 450 million to finance the construction of Lviv Northern bypass and the rehabilitation of sections of M-05 highway in Cherkasy, Kirovohrad, Mykolaiv and Odesa regions in Ukraine.
According to the report of the bank, its Board of Directors approved the project on October 15, 2019.
The EIB said that the investments will improve the quality of the extended TEN-T network (Trans-European Transport Network) by creating safer road conditions and reducing environmental pollution. In addition, the Lviv Northern bypass will shorten travel time and divert traffic from the city of Lviv.
The bank said that the EIB will require the Promoter to ensure that any procurement procedures are done in accordance with the Bank’s Guide to Procurement and the relevant applicable EU public procurement rules.
According to the report, the total cost of the framework project is around EUR 1.05 billion. Other sources of financing are not disclosed.
As reported, the European Bank for Reconstruction and Development (EBRD) and JSC Ukrzaliznytsia intended on October 21, 2019 to announce tender procurement of materials for modernization of TEN-T tracks for $100 million raised by the company from the bank.

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RISTONE HOLDINGS INVESTS EUR 2 MLN IN CONSTRUCTION OF OILSEED CRUSHING COMPLEX

The group of companies Ristone Holdings has invested EUR 2 million in construction of a second phase of the oilseed crushing complex of Ristone Oil LLC (Dnipropetrovsk region), the group has reported on its Facebook page.
According to the report, the company concluded a contract with Germany’s Convex International GmbH for the supply of drying and cleaning equipment from Petkus (Germany), transport equipment from Riela (Germany), four main and two auxiliary grain silos with a capacity of 20,000 cubic meters from Symaga firm (Spain).
“This will allow us to keep the quality at the highest level and increase the volume of the daily processing rate by more than two times, while minimizing emissions of pollutants,” the group said.
The main activity of the complex is the deep processing of oilseeds. Currently, Ristone Oil produces sunflower oil, granulated meal, expanded cake, and fuel pellets from production waste.
In the future, it is envisaged the possibility of placing a line of hydration and drying of phosphatides in the oil press workshop with a warehouse for their storage and subsequent loading to vehicles.

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