Business news from Ukraine

Business news from Ukraine

INTRODUCTION OF BIM (BUILDING INFORMATION MODELING) TECHNOLOGIES IN CONSTRUCTION INDUSTRY COULD REDUCE COST OF BUILDING AND OPERATING FACILITIES BY 30%

The system implementation of BIM (Building Information Modeling) in the construction industry of Ukraine could help reduce the cost of building and operating facilities by up to 33%, Olena Shuliak, a member of the board of the Better Regulation Delivery Office (BRDO), the co-owner of Midland Development Ukraine, has stated. “The use of BIM for design, construction and operation of industrial, infrastructural, civil construction objects has become a de facto mandatory practice in the developed countries. As international practice shows, the use of BIM allows optimizing construction terms by 20%, increasing control over expenses by 30% and more, reducing construction costs by 20%, and in some cases up to 33%,” the expert believes.
Shuliak explained BIM assumes the collection and complex processing during the design process of all architectural, design, technological, economic and other information about the building, when the building and everything related to it are considered as a single object.
According to her, BIM allows exporting design services of Ukrainian companies abroad, and in future the export of these services could grow by 1.5-2 times.
“Foreign investors entering or planning to work in the Ukrainian market are interested in a fast and high-quality project implementation with transparent control over all processes. BIM could become a serious competitive advantage for domestic

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CONSTRUCTION IN UKRAINE IN AUG 1.1% DOWN, HIGHEST INCREASE IS RECORDED IN ODESA (BY 43.7%)

The volume of completed construction works in Ukraine in August 2018 decreased by 1.1% compared to August 2017, whereas growth in July 2018 from July 2017 was 9.7%. The report does not include data from temporarily occupied territories, namely the Autonomous Republic of Crimea and partly Donetsk and Luhansk regions, the State Statistics Service of Ukraine has said. The volume of completed construction works in August 2018 from July 2018 decreased by 6.4% (according to seasonally adjusted data, it decreased by 6.9%), whereas there was a 5.8% fall in July 2018 from June 2018.
Residential and nonresidential construction declined in August 2018 from August 2017, while the construction of engineering facilities was on the rise. According to unadjusted data, residential construction saw a 13.3% decline, while the decline of nonresidential construction was 5.4%. The construction of engineering facilities increased 6.4%.
The construction of residential buildings in August 2018 from July 2018 decreased by 9.9%, the construction of nonresidential buildings grew by 5.5%, engineering facilities fell by 10%.
In January-August 2018, a decrease in construction work compared to the same period of 2017 was recorded in 11 regions of Ukraine and Kyiv city, including in Luhansk (by 43.7%, to UAH 233.2 million), Sumy (by 20.9%, to UAH 635.7 million) and Zakarpattia (by 17.8%, to UAH 710.5 million) regions.
The highest increase in completed construction works in the eight months ending August 2018 was recorded in Odesa (by 43.7%, to UAH 9.597 billion) Khmelnytsky (by 32.5%, to UAH 1.663 billion) and Ivano-Frankivsk (by 31.4%, to UAH 1.7 billion) regions.
In Kyiv, the volume of construction work in the eight months ending August 2018 fell by 3.7%, to UAH 16.741 billion.

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UKRAINIAN FARMAK TO INVEST $10 MLN IN CONSTRUCTION OF PLANT IN UZBEKISTAN

PJSC Farmak (Kyiv), among top three leaders of the pharmaceutical sector of Ukraine, plans to invest $10 million in construction of a pharmaceutical plant in Uzbekistan, the company’s press service has reported. “With a view to the export development, Farmak is considering an investment project with investment of $10 million to localize production in the Republic of Uzbekistan with the launch of production in bulk and a gradual transition to full-cycle production, with the development of technologically more complex products, in particular, radiopaque and biotechnological products,” the press service of the company said, citing Chairperson of the supervisory board Filia Zhebrovska.
At present, Farmak is fourth in sales in the pharmaceutical market of Uzbekistan, the portfolio of products sold in this country totals 120 items.
The company said that the head of the Farmak’s supervisory board and Ambassador of Uzbekistan to Ukraine Alisher Abdualiyev have already agreed on the construction of the plant.
“The new production facility of Farmak will expand the range of medicines that are produced in Uzbekistan, reduce dependence on imported production and create a basis for further expansion of the pharmaceutical cluster,” Abdualiyev said.
Farmak is a member of the Association Manufacturers of Medications of Ukraine (AMMU).

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CONSTRUCTION IN UKRAINE IN JULY 9.7% UP YEAR-OVER-YEAR- STATISTICS

The volume of completed construction works in Ukraine in July 2018 increased by 9.7% compared to July 2017, whereas growth in June 2018 from June 2017 was 2.2%.
The report does not include data from temporarily occupied territories, namely the Autonomous Republic of Crimea and partly Donetsk and Luhansk regions, the State Statistics Service of Ukraine has said.
The volume of completed construction works in July 2018 from June 2018 decreased by 5.8% (according to seasonally adjusted data, it decreased by 3.6%), whereas there was a 12.3% increase in June 2018 from May 2018.
Residential and nonresidential construction declined in July 2018 from July 2017, while the construction of engineering facilities was on the rise. According to unadjusted data, residential construction saw a 9.1% decline, while the decline of nonresidential construction was 2.6%. The construction of engineering facilities increased by 26.2%.
The construction of residential buildings in July 2018 from June 2018 decreased by 17.3%, the construction of nonresidential buildings fell by 2.4%, engineering facilities by 2.9%.
In January-July 2018, a decrease in construction work compared to the same period of 2017 was recorded in 10 regions of Ukraine, including in Luhansk (by 45.8%, to UAH 184.1 million), Sumy (by 22%, to UAH 523.8 million), Kirovohrad (by 18%, to UAH 586.5 million) regions.
The highest increase in completed construction works in the seven months was recorded in Ivano-Frankivsk (by 33.4%, to UAH 1.5 billion) and Odesa (by 54.5%, to UAH 8.2 billion) regions.
In Kyiv, the volume of construction work in the seven months fell by 2.9%, to UAH 14 billion.

EBRD TO CONSIDER A LOAN WORTH EUR 150 MLN TO NORWEGIAN NBT’S FOR CONSTRUCTION OF WIND FARM IN UKRAINE

The European Bank for Reconstruction and Development (EBRD) will consider a loan worth up to EUR 150 million for LLC SyvashEnergoProm, a subsidiary of Norway’s NBT, for the construction of a 250 MW wind farm in Kherson region, the lender said on its website. “This is a long-term senior loan of up to EUR 150 million in an A/B structure, of which up to EUR 75 million would be funded from the EBRD resources and the remainder would be syndicated in a B-loan structure to eligible institutions. The remaining project financing is expected to be provided via parallel loans from IFIs, DFIs, and other investors,” the Bank said.
The total cost of the project is EUR 369 million.
The project will help support the development of renewable energy in Ukraine and the overall decarbonisation of the energy sector. As was reported, NBT SA, which is a Norwegian wind farm developer with operating wind farms in China, in April 2018 bought LLC SyvashEnergoProm (operates a wind farm whose capacity is about 3 MW). It plans to build a wind farm with a capacity of 250-330 MW in neighboring areas.

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CONSTRUCTION WORK IN UKRAINE GROWS BY 2.2% IN JUNE

The volume of construction work in Ukraine in June 2018 increased by 2.2% compared to June 2017, while the increase in May 2018 from May 2017 was 2.7%. According to the authority, the volume of construction work in June 2018 grew by 12.3% compared with the previous month, while in May 2018 it grew by 20.5% compared with April 2018.
According to the report, in June 2018 year-over-year, the decrease in the volume of construction was observed in nonresidential construction and grew in building of engineering facilities. A fall in residential construction was 23%, while the figure in construction of nonresidential buildings fell by 5%. The increase of 17.9% was recorded in construction of engineering facilities.
In June 2018, the volume of construction of residential buildings declined by 20.4% compared with May 2018, and it grew by 5.5% in construction of nonresidential buildings and by 32.8% in construction of engineering facilities.
In January-June 2018, construction work fell in 14 regions, in particular in Luhansk region by 53.5%, to UAH 135.9 million, Sumy region by 22.2%, to UAH 417.9 million and Kirovohrad region by 21%, to UAH 457 million. The largest growth in the volume of construction works in January-June 2018 was seen in Ivano-Frankivsk region by 41.5%, to UAH 1.26 billion and Odesa region by 33.8%, to UAH 5.7 billion. In Kyiv city the volume of construction work fell by 5.6% year-over-year, to UAH 11.2 billion.