On December 20, 2024, the International Finance Corporation (IFC) of the World Bank Group signed documents to provide a $53.87 million loan to Concern Galnaftogaz to finance the construction of a 147 MW wind farm in Volyn region and technical support.
According to the IFC website, the total cost of the project is estimated at EUR261 million (including VAT), with a 16-year loan provided to the established project companies Wind Power G&I Volyn LLC and Wind Power G&I Volyn 3 LLC, controlled by GNG Retail Limited and its subsidiary Concern Galnaftogaz (together – GNG Group).
It is noted that the project involves the attraction of mixed financing, in particular from the UK-FCDO and EC-UIF, as well as the Clean Technology Fund.
Earlier, on December 4, participation in the project was also approved by the European Bank for Reconstruction and Development (EBRD), which has also already signed documents to provide the above-mentioned LLCs with a long-term loan of EUR 60 million for the construction of a 147 MW wind farm in the Volyn region.
The wind farm is expected to produce about 380 GWh (380 million kWh) of renewable electricity with zero carbon emissions annually.
In February 2024, the Antimonopoly Committee of Ukraine (AMCU) allowed GNG Retail Limited (Cyprus) to buy more than 50% of the authorized capital of Wind Power G&I Volyn LLC and Wind Power G&I Volyn 3 LLC. According to open registers, GNG Retail Limited owns 89.5% of the two LLCs, and JSC ZNVKIF Rimini (in which Vitaliy Antonov owns 83.19%) owns 10.5%.
OKKO CEO Vasyl Danyliak announced the start of construction of a wind farm in Volyn region in the fall of 2024. He explained the group’s plans to work in the renewable energy sector by the need to diversify its business, as the fuel market no longer foresees growth.
“Galnaftogaz operates one of the largest networks of OKKO filling stations, which includes more than 400 complexes with a network of catering facilities. The group also includes other businesses.
Vitaly Antonov’s GNG Retail Limited owns 90.25% of Concern Galnaftogaz shares. In October 2024, Avalia Investments Limited (Cyprus) of the founder and chairman of Concorde Capital, Igor Mazepa, became the owner of another 7.35% of the shares.
State-owned Oschadbank (Kyiv) has entered into a 5-year loan agreement with the Lviv City Council for UAH 840 million, of which UAH 718 million will be used to complete the construction of a waste processing plant.
According to the bank’s press release, the rest of the funds will be used to implement four more projects: the construction of an alternative bridge on Kovcha Street, the arrangement of two centers for veterans, and the reconstruction of the power supply system of the Pivnichna shopping center (CHP-2).
“Despite the fact that Oschadbank’s share in financing municipalities is more than 60% of the market, this loan agreement is the first in our cooperation with the Lviv City Council during a full-scale war. As a conscious bank that adheres to ESG principles, we are pleased to participate in the implementation of such an important environmental project for one of the most European cities in the country,” said Yuriy Katsiyon, Deputy Chairman of the Board of the state-owned bank in charge of corporate business, as quoted in a press release on Friday.
In turn, the Lviv City Council’s website states that the volume of construction work at the facility has reached 70%.
According to the release, once launched, the municipal waste recycling facility will be able to process more than 250 thousand tons of waste per year using mechanical and biological methods. This volume is expected to fully meet the city’s solid waste disposal needs.
The Oschad press service added that the Lviv Waste Recycling Plant construction project is also being implemented with the financial support of the European Bank for Reconstruction and Development (EBRD) and the Eastern European Energy Efficiency and Environment Partnership (E5P). The waste processing plant covers an area of 9.66 hectares.
The Lviv City Council website specifies that UAH 46.2 million of the total amount of approved funding will be used to build an alternative bridge on Omelyana Kovcha Street, and the remaining UAH 75.8 million will be used to equip two centers for veterans and reconstruct the power supply system of the Pivnichna shopping center (CHP-2).
According to the National Bank of Ukraine (NBU), as of November 1, 2024, Oschadbank ranked 2nd (UAH 340.77 billion) among 62 banks in the country in terms of total assets. The financial institution earned UAH 12.78 billion in net profit for 10 months of this year, compared to UAH 14.58 billion in the same period last year.
The European Investment Bank (EIB) is considering providing EUR 400 million in financing for a pilot project to build social housing in Ukraine, the press service of the Institute for Economic Research and Policy Consulting (IER) reports.
“Negotiations are currently underway to provide EUR 400 million in funding, which will consist of a grant and a loan for the construction of public housing. This should be housing in normally built-up parts of the city, with access to technical and social infrastructure,” said Grzegorz Gajda, Senior Sector Economist at the EIB, as quoted in the press release.
He noted that the housing should be built using the best European practices, in accordance with energy-efficient standards and the principle of build-back-better.
The project envisages the construction of about 6-6.5 thousand apartments. The EIB will select areas for social housing construction based on the needs of the regions and their interest in cooperation.
Along with this, the conditions for renting housing are being discussed. In particular, it is proposed to allocate social housing to employed Ukrainians with a salary not lower than the average, as well as to give local authorities the opportunity to transfer 20-30% of apartments for rent to people selected according to their own criteria, taking into account the professionals needed in the region.
According to the expert, the project also envisages finding opportunities for the social housing sector to independently finance its operations and maintenance to avoid the need for state funding for housing maintenance.
As the IER points out, at the beginning of 2022, there were only 3 thousand social apartments in Ukraine, while the number of internally displaced persons (IDPs) at the end of the year amounted to more than 5 million people. According to the International Organization for Migration, there are about 3.6 million internally displaced persons in Ukraine as of October 2024.
American electric vehicle manufacturer Tesla plans to complete the construction of a plant in Shanghai to produce Megapack energy storage devices by the end of this year, Xinhua news agency reported, citing a statement from the company’s local office.
Construction of the plant began in late May. The plant covers an area of about 200 thousand square meters, and the total investment in this project is estimated at about 1.45 billion yuan ($202 million).
The facility will be Tesla’s first energy storage project outside the United States and the company’s second plant in Shanghai after the electric vehicle gigafactory, with total investments exceeding 50 billion yuan.
Mass production of Megapack at the new facility is expected to begin in the first quarter of 2025. At the initial stage, the production volume will be 10 thousand drives per year, which is equivalent to approximately 40 GWh of electricity.
Megapack is a 3.9 MWh battery for energy storage and power supply support, its use contributes to the stability of power grids and prevents interruptions in their operation, according to Tesla’s website. The American company already has a Megapack production plant in California with a capacity of 10 thousand units per year.
In January-September 2024, the total area of residential buildings for which construction permits were issued (new construction) decreased by 6.6% compared to the same period in 2023, to 2 million 962.3 thousand square meters, according to the State Statistics Service (Ukrstat).
According to the statistics agency, in January-September 2024, the total area of new construction of apartment buildings decreased by 8.3% year-on-year to 2.8 million square meters. The number of apartments declared at the start of construction in apartment buildings decreased by 12.2% to 30.9 thousand.
According to the State Statistics Service, the largest number of new housing starts in the first nine months of the year was reported in Lviv region: the total area of new housing construction amounted to 499 thousand square meters (7 thousand apartments).
Significant volumes of new housing were also declared in Kyiv region – 494.8 thousand square meters (11.9 thousand apartments), as well as in Ivano-Frankivsk region – 317.8 thousand square meters (5.3 thousand apartments), Zakarpattia region – 292 thousand square meters (5.3 thousand apartments), Transcarpathian region – 292 thousand square meters (5.3 thousand apartments), and in the city of Kyiv – 292 thousand square meters (5.3 thousand apartments). sq. m. (5.3 thousand apartments). apartments), Transcarpathian – 292.3 thousand sq. m. (3.8 thousand apartments), Vinnytsia – 236.3 thousand sq. m. (4.1 thousand apartments), Khmelnytsky – 141.6 thousand sq. m. (2.3 thousand apartments) and Volyn – 140.7 thousand sq. m. (3 thousand apartments).
In Kyiv in January-September 2024, the total area of new housing construction amounted to 330.3 thousand square meters (2.9 thousand apartments).
The State Statistics Service reminds that the figures exclude the territories temporarily occupied by the Russian Federation and part of the territories where hostilities are ongoing (or have been ongoing).
As reported, the total area of new housing construction in 2023 decreased by 37% to 4.2 million square meters, while in 2022 it amounted to 6.67 million square meters, and in 2021 – 12.7 million square meters.
In 2027, Belgrade will host the World Expo 2027, a large-scale international event that will take place from May 15 to August 15. For this event, the municipality of Surcin has already begun building infrastructure, including a national stadium, an exhibition center, and new transportation interchanges. One of the key projects in preparation for the exhibition will be the opening of the first metro line, which will significantly change the transport map of the Serbian capital.
The importance of the metro for the city and the real estate market
The first metro line, which has already started construction, will connect key areas of Belgrade, including the exhibition center in Surcin. This project will not only improve transportation, but will also have a significant impact on the cost of housing and land along the route.
Traditionally, real estate prices near metro stations have been on the rise, making this factor one of the main ones for investors. In the case of Belgrade, the impact of the new infrastructure may be even more noticeable given the growing interest in the city ahead of EXPO-2027.
Surcin – the center of events
Surčin, where the bulk of the EXPO-2027 facilities will be concentrated, is becoming the center of attention for both the authorities and developers. The construction of a national stadium, a new railway station and an exhibition complex is already underway. According to official data, the area of the future exhibition center will be 113 hectares, and the total construction area, including the accompanying infrastructure, will reach 167 hectares.
Real estate prices in Surchyn have already started to rise. For example, the cost of apartments has increased several times over the past year. Land plots have also risen in price, especially those located near transportation hubs and future metro stations.
Impact of EXPO-2027 on the development of Belgrade
Preparations for the World Expo involve large-scale investments in the city’s infrastructure. In addition to Surcin, changes will affect other districts of the capital. Work is already underway on the construction of a new bus station, and the modernization of the Prokop railway station is nearing completion.
The subway will also be an important step in the development of Belgrade. The first line will connect key areas of the city, which will reduce the load on the road network and simplify the movement of residents and visitors to the capital.
Forecasts and prospects
Experts agree that EXPO-2027 will have a long-term impact on the real estate market in Belgrade. In addition to the price increase in Surcin, real estate is expected to rise in price along the routes of the future metro, as well as in the central and prestigious areas of the city.
The Serbian government states that EXPO-2027 will be a stimulus for economic growth, attracting foreign investment and improving infrastructure. These changes will make Belgrade even more attractive for tourists, residents and businessmen.
Thus, EXPO-2027 and related projects, including the metro, are opening a new chapter in Belgrade’s development, strengthening its position as one of the key centers of Southeast Europe.
