KYIV. Nov 14 (Interfax-Ukraine) – A group of professionals not representing government officials intend to draw up a list of possible investment projects in Ukraine worth $150 billion. The projects could be implemented in Ukraine in coming 15-20 years, former head of the Presidential Administration and Head of the National Investment Council Borys Lozhkin has said.
“There are no [large investment] projects in the country. Ministries and state-run companies even cannot give projects worth $10 billion, while we need $150 billion for next 15 or 20 years. These figures are realistic,” he said at the third Orchestrators of Change Directors forum that took place in Kyiv on November 10.
He said that one of the largest international funds with assets of over $500 billion under management has expressed its readiness to invest $1-3 billion in Ukraine. The fund asked to present projects worth $20 billion to select some. It was found out that the country does not have these projects.
Lozhkin said that he ordered a group of ‘non-government’ people to prepare the list of projects in the sectors, including revised projects proposed by ministries.
He said that the Ukrainian energy sector could spend $50-70 billion of investment in coming 20 years, and infrastructure and agriculture – $30-40 billion each.
He said that these are projects worth over $100 million and better if they were $300-500 million, as efforts spent on the projects worth $5 billion or $100 million are the same.
Lozhkin said that foreign direct investment (FDI) is the main hope for Ukraine’s exploding growth.
“$1 billion of FDI is around 1% of GDP growth. If they have them worth $6-8 billion, it would be 6-8% of GDP growth and a multiplier – we can reach 10% of growth a year. Then the values would change quicker,” he said.
MHP Board Chairman Yuriy Kosiuk said that Ukraine today is not ready for large investments, as there is a large risk of losing it. The process should be gradual, he said.
“One cannot help a fool,” he said.
Lozhkin said that one can give $500 million to such businessmen as Kosiuk and President of Galnaftogaz Concern Vitaliy Antonov who also participated in the discussion. However, Kosiuk said that they could suffer from country risks too.
