Business news from Ukraine

UKRAINE IS PLANNING TO IMPLEMENT PILOT PUBLIC-PRIVATE PARTNERSHIP PROJECTS, IMPLEMENTATION TO ATTRACT MORE THAN $9 BLN OF INVESTMENT

Ukraine is planning to implement the first pilot public-private partnership (PPP) projects in the road industry, transferring six highways to concession.
A source in the industry told Interfax-Ukraine that the first sections and routes for PPP implementation will be offered:
– a section of the M-03 road from Boryspil to Poltava;
– a section of the M-06 road from Kyiv to Rivne;
– the route from Dnipro to Kryvy Rih and Mykolaiv (М-04, Н-11);
– the route Yahodyn – Kovel – Lutsk (М-07, М-19);
– the route Kharkiv – Dnipro – Zaporizhia (M-29, M-04, M-18);
– a section of the M-14 road from Kherson to Mykolaiv.
At the same time, a private investor will undertake the obligation to update and develop the existing road, and funds will be allocated from the Road Fund to support the investor, provided that he observes all obligations on the quality of road maintenance.
Instead of collection of fares, it is planned that the investor will earn by developing roadside infrastructure: gas stations, catering establishments, advertising space, etc.
According to Minister of Infrastructure of Ukraine Vladyslav Krykliy, the implementation of the entire program will allow in the medium term to attract more than $9 billion of private investment in the restoration and maintenance of more than 4,500 kilometers of national highways.
The first public-private partnership program in the road sector of Ukraine is planned to be presented in Kyiv on October 29, 2020.

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NEW 150 MW WIND FARM TO BE BUILT IN UKRAINE

Wind Power GSI Volyn LLC intends to build a wind power plant with a capacity of 150 MW in Ivanychi and Volodymyr-Volynsky districts of Volyn region.
According to the website of the unified register of environmental impact assessment, within the framework of the project, it is planned to install 28 wind turbines in the territory of Ivanychi district and 1 wind facility in the territory of Volodymyr-Volynsky district with a capacity of up to 7 MW each. The tower height is up to 166 meters, the rotor diameter is up to 170 meters.
It is also planned to build a high-voltage substation of 35/110 kV with an area of up to 1 hectare with transformer equipment to ensure the reception and transmission of generated electricity from the station to the network. The transmission of electricity generated at the wind farm to the unified state power grid will be carried out through the existing 330 kV Novovolynsk substation of Ukrenergo.
The wind farm is expected to generate about 540,000 MWh of “green” electricity.
According to the data of the Unified state register of legal entities and individual entrepreneurs, Wind Power GSI Volyn (Lviv) belongs to Greenville closed non-diversified venture corporate investment fund. The ultimate beneficiary is Ivan Torsky, the director general of TKS Development Holding.

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FLIXBUS OPENS THREE NEW LINES FROM UKRAINE TO POLAND AND CZECH REPUBLIC

The bus operator FlixBus will open three new routes on November 4 and on November 5: Kyiv – Warsaw – Szczecin (both are in Poland), Chernivtsi – Warsaw and Lviv – Ostrava (the Czech Republic).
As Managing Director of FlixBus in Ukraine, Poland and the Baltic States Michal Lehman said at a press conference on Tuesday, route number 3222 Kyiv-Warsaw-Szczecin, which will be operated jointly with private entrepreneur Serhiy Sherstiuk, will also pass through the following cities: Zhytomyr, Rivne, Lutsk, Lublin, Lodz, Poznan and Gorzow Wielkopolski. The trip frequency is twice a week.
Route 3241 Chernivtsi – Warsaw (partner – IV-AUTO) will pass through Kolomyia, Ivano-Frankivsk, Lviv and Lublin. The frequency is three times a week.
Route CUA025 Lviv – Ostrava (partner – ACIK, Poland) will pass through Krakow, Katowice and Bohumin. Its frequency is twice a week.
“The first two lines are fully compliant with the green FlixBus standards. The third line will be fully operated by ACIK, but we will also sell tickets for these trips. There are separate seats on ACIK buses, which are marked with a green sticker, which will be assigned to FlixBus passengers,” he said.
According to him, to date, the FlixBus network connects 16 cities of Ukraine from 12 regions with 48 cities in Europe (six countries).

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UKRAINE REDUCES SCRAP METAL IMPORT BY 69%

Ukrainian enterprises in January-September of this year reduced export of scrap metal by 38.1% compared to the same period last year, to 25,158 tonnes (40,633 tonnes were exported in January-September 2019).
According to statistics released by the State Customs Service, in terms of money, scrap exports fell by 42.7%, to $6.458 million.
In January, 2,865 tonnes of scrap metal were exported, in February some 8,014 tonnes, in March 493 tonnes, in April 256 tonnes, and in May 4,861 tonnes, in June 316 tonnes, in July 402 tonnes, in August 3,391 tonnes, and in September 4,560 tonnes
At the same time, in January-September of this year, the country reduced imports of scrap metal in natural terms by 68.8% compared to the same period last year, to 13,575 tonnes. In monetary terms, this indicator decreased by 41.6%, to $15.488 million.
In addition, the metal enterprises of Ukraine in January-September 2020 imported 1,602 tonnes of ferrous products obtained by direct reduction of iron ore (HS code 7203) – hot briquetted iron (HBI), which is a substitute for pig iron and scrap metal in the amount of $481,000, whereas in January-September 2019 some 1,462 tonnes for $478,000 was exported.

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PREMIUMS ON GREEN CARD POLICIES IN UKRAINE DOWN BY 34.3%

Accrued insurance premiums under Green Card international insurance agreements signed by the member companies of the Motor (Transport) Insurance Bureau of Ukraine (MTIBU) in January-August 2020 decreased by 34.3% compared to the same period in 2019, to UAH 781.3 million.
The MTIBU reported on the website the number of Green Card agreements concluded during this period fell by 45.62%, to 406,600.
At the same time, the amount of compensations paid on claims increased by 25.72%, to EUR12.2 million, while the number of claims paid by 14.7%, to 4,141.
The MTIBU is the only association of insurers that provide compulsory insurance of civil liability of land vehicles’ owners for damage caused to third parties.

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THE INDEPENDENCE DAY OF UKRAINE WILL BE CELEBRATED IN A BIG WAY NEAR KYIV

On August, 22, 23 and 24 Ancient Kyiv in the Principality of Kyivan Rus («Kyivan Rus Park») invites to a grandiose celebration of the Independence Day of Ukraine. A bright show-program on historical theme, horse-trick performances, Slavic amusements, master-classes, tasty dishes prepared on open fire, horse riding and much more from the life of Kyivan Rus will be waiting for the guests.
Ancient Kyiv opens at 10:00. The program starts at 14:00.
The ticket price: a full adult ticket – 225 UAH, for pensioners and students – 150 UAH, for schoolchildren – 80 UAH, for preschool children – for free.
Ancient Kyiv in the «Kyivan Rus Park» is located in Kyiv region, Obukhiv district, the vill. Kopachiv.
Details on the website www.parkkyivrus.com
The Interfax subscribers can save money with the “openbusiness-20” promo code for a 20%-discount for a full price adult ticket to the Principality of Kyivan Rus:
– by previous order by tel.: +38 044 461-99-37, +38 050 385-20-35
– or at the cash desk at the entrance to the «Kyivan Rus Park».

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