Business news from Ukraine

LVIV APPROVES CONSTRUCTION OF HOTEL NEAR AIRPORT, DEVELOPER NEGOTIATING WITH HILTON

The executive committee of the Lviv City Council has approved the town-planning conditions and limits for designing an office and hotel center at 191b, Liubinska Street.
As reported on the website of the City Council, private enterprise Galmodern plans to build an office center with underground parking and a hotel and office center with underground parking on the site. The facilities will be located near the Lviv airport.
Zaxid.net reported with reference to Head of the department of architecture and urbanism of the Lviv City Council Yulian Chaplynsky that Galmodern is negotiating the opening of a hotel under the international brand of Hilton Hotels & Resorts.
“There are negotiations with the Hilton network. But for the time being they have only received town planning conditions for design. It is finally unknown if they submit this [the project] to Hilton or another network,” Chaplynsky said.
According to the unified public register, Natalia Onoshko (100%) is listed as the participant and ultimate beneficiary of Galmodern.
She also acts as a signatory to LLC Innovation Management Systems, registered in 3, Shukhevycha Street, in Lviv. At this address, the Ibis hotel operates (Ibis Styles Lviv Center opened at the end of 2015).

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BUSINESSMAN VASYL KHMELNYTSKY PLANS TO INVEST $2.5 MLN IN COMPOSITE PLANT CONSTRUCTION

The UFuture investment group of Ukrainian businessman Vasyl Khmelnytsky plans to invest $2.5 million in construction of a composite plant in the Bila Tserkva industrial park within two years. “We together with Volodymyr Khmurych director of the Bila Tserkva industrial park laid the capsule of the new plant in the industrial park. Here in six months there will be a composite plant. In America, composite materials have already replaced metal by 15-17%,” Khmelnytsky wrote on his Facebook page.
According to him, the plant intends to create 100 jobs.
“Before starting the construction of a large plant, we leased a place in the workshop, bought one line of equipment, adjusted it and launched the first batch of the product. It cost only $85,000, we made sure that everything works, that the quality of the product is high, and decided to scale up production,” Khmelnytsky said.
He recalled that this will be the second plant in the Bila Tserkva industrial park, and by the end of the year it is planned to build three more.
As reported, the first plant in Bila Tserkva industrial park – Plank Electrotechnic, which will be the first in Ukraine to produce modern electrotechnic systems, was officially opened in April of this year. UFuture invested $ 2.8 million in its creation.
UFuture unites companies and social projects of Khmelnytsky. The group includes the Bila Tserkva industrial park, the UDP development company, the Sikorsky Kyiv International Airport, outdoor advertising operator RTM-Ukraine, as well as innovative businesses: UDP Renewables (creates and develops photovoltaic power plants under its control), the pharmaceutical company Biopharma, innovative parks UNIT.City and LvivTech.City.

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NEW RESIDENTIAL CONSTRUCTION IN UKRAINE DOUBLES IN Q1 2019

The total area of new residential and nonresidential buildings as of the start of their construction in January-March 2019 grew 1.9-fold year-over-year, to 2.7 million square meters. According to the report, the total area of apartment buildings in Q1 2019 was 2.662 million square meters (97% of the total volume), single-apartment buildings – 56,500 square meters and dormitories – 18,200 square meters.
The total area of new residential buildings at the beginning of construction in Kyiv grew 3.3-fold in Q1 2019, to 1.1 million square meters, while in Kyiv region the growth was small, to 220,000 square meters (212,000 square meters in 2018).
According to statistical data, the growth in the volume of new housing construction was also recorded in Lviv (3.2 times, to 377,900 square meters), Odesa (1.7 times, to 376,400 square meters), Kharkiv (1.6 times, to 231,300 square meters) and other regions.

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T.B.FRUIT BEGINS CONSTRUCTION OF PLANT FOR PROCESSING FRUITS IN POLAND

T.B.Fruit, one of the largest processors of fruits and berries in Ukraine, has begun the construction of the eighth plant of the group for processing fruits and berries in Brzostowiec (Poland), investment in which will amount to EUR45 million, founder of T.B.Fruit Taras Barschovsky has said. “The capacity for apple processing will be 300,000 tonnes, strawberries 10,000 tonnes, cherries 6,000 tonnes, raspberries 12,000 tonnes, currants some 7,000 tonnes per year. Production start is scheduled for July 2020,” he told the Interfax-Ukraine agency.
According to Barschovsky, investments in the plant are estimated at EUR45 million.
T.B.Fruit is a vertically integrated international group of companies with a closed production cycle (growing raw materials, processing, transportation).
The group of companies was established in July 2011 after the consolidation of all the assets of businessman Taras Barschovsky.

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UKRAINE PLANS TO PRESENT INVESTMENT PROJECT ON CONSTRUCTION OF ICE ARENA IN KYIV WORTH UAH 1.7 BLN

Ukraine at the Ukraine Reform Conference in Canada (Toronto) in July 2019 plans to present a government investment project on construction of an ice arena in Kyiv for UAH 1.68 billion, the Ministry of Economic Development and Trade of Ukraine has reported. The proposal was announced by First Deputy Prime Minister, Minister of Economic Development and Trade Stepan Kubiv at the meeting of the interdepartmental commission on the issues of the investment projects headed by him held at the end of April.
The commission supported his initiative to provide the first budget financing of the project now, rather than in July, as planned, in order to begin developing project documentation and have time to prepare a project presentation for the conference in Toronto.
According to the minutes of the meeting of the commission, the funding for this project from the national budget has not yet been provided.
The executor of the project is the state-owned enterprise central training sport base Ice Stadium. Its implementation is scheduled for 2019-2021, and in 2019, it is planned to allocate UAH 5 million.

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BELGIUM COMPANY FINISHES CONSTRUCTION OF FIRST PHASE OF 6 MW SOLAR POWER PLANT IN UKRAINE

Belgium’s Upgrade Energy is finishing construction of a first phase of a solar power plant with a capacity of 5.9 MW in Korosten district of Zhytomyr region, installing 18,000 PV modules, the press service of the Zhytomyr Regional Administration has reported, referring to acting Director of the agricultural and industrial development and economic policy of the regional administration Viktor Hradivsky.
The total capacity of Irshansk solar power plant will be 25-30 MW.
In 2018, the Zhytomyr Regional Administration signed 14 memorandums with investors in solar power plants. In particular, Altostrata Energy Limited (Ireland) proposed a 65 MW solar power plant project in Luhyny district. In April, Altostrata Energy signed an agreement on connecting the plant to the power grid, and at the end of the month the company intends to start construction.
In the summer of 2019, a 10 MW plant is also expected to be launched in the village of Chopovychi, Malyn district, by the GESS group of companies (the United States).
In March, public hearings were held on the establishment of a feed-in tariff for a 20 MW solar power plant on the territory of the Khoroshiv merged territorial community, which Global Ecopower SA (France) intends to build.
As reported, Modus Energy International B.V. LLC (Lithuania) plans to build a 35 MW solar power plant on the territory of Lubar merged community. In February 2019, the company received a declaration for construction, as well as technical conditions for connection from national energy company Ukrenergo.
Eney International LLC is preparing land utilization documentation for the construction of a 55 MW solar power plant in the Brusyliv district.
A subsidiary of Naftogaz-Energoservice is developing a construction project for a 30 MW solar power plant on the territory of the Dubysche village council of Chudniv district.
Currently, one industrial 15 MW Hanska solar power plant (the investor is Better Energy Energo, Denmark) is operating in Zhytomyr region, which was launched at the end of last year.

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