Business news from Ukraine

UKRHYDROENERGO LOOKS TO LOAN AGREEMENT WITH EBRD, WORLD BANK TO BUILD KANIV PSP

KYIV. May 27 (Interfax-Ukraine) – Public joint-stock company Ukrhydroenergo intends to sign a loan agreement with the European Bank for Reconstruction and Development and the World Bank to build Kaniv pump-storage plant (PSP) in September and October 2016, Ukrhydroenergo Head Ihor Syrota told reporters in Kyiv on Thursday.

“We are to answer all questions asked by the banks by June 28. In July or August we would hold a repeated public discussion… We seeks to have the project approved by the banks’ boards of directors [EBRD and the World Bank] in August and in September or October we would be able to sign the agreements,” he said.

Some $1.25-1.3 billion would be raised for the project. The loans are to cover 98% of the project cost.

Syrota said that in August or September 2016 the company intends to start preparations for the project using own funds. It will last for around one year.

KOREA INTERESTED IN CREATING INDUSTRIAL PARK IN KHARKIV REGION

KHARKIV. May 27 (Interfax-Ukraine) – The Republic of Korea is interested in creating an industrial park in Kharkiv region, the Ambassador of Korea to Ukraine has said at a meeting with head of Kharkiv Regional State Administration Ihor Rainin.

“There is a good infrastructure and the environment in Kharkiv to implement the project of a technical park. You have good science, technology and industry… We can implement such a project. We are interested in it,” the ambassador said.

Rainin noted strong sectors in the Kharkiv region economy are industry and agriculture, while promising are the development of areas related to science and IT.

The Ukrainian official invited the delegation of the Republic of Korea to take part in the international investment forum to be held in Kharkiv region in September 2016.

The ambassador, in turn, invited the representatives of Kharkiv region to the investment forum to be held in Korea on June 14.

COMPLETION OF KYIV SUBWAY STATION LVIVSKA BRAMA BEING DISCUSSED WITH INVESTORS

KYIV. May 27 (Interfax-Ukraine) – The completion of the Lvivska Brama subway station of the Syretsko-Pecherska line of Kyiv Metropoliten is being discussed with investors. Some core issues are to be settled with city authorities.

An Interfax-Ukraine correspondent has reported that Spokesperson of Kyiv Metropoliten Natalia Makohon gave the information during a visit of the station on Thursday.

“An investment tender scheme and station entrances have not yet been determined. The station has been mothballed for 20 years. We hope that Kyiv residents would be able to use it, as it would unload the central part of the city,” she said.

Makohon said that the readiness of the station is around 80%. The tracks and power supplies are operating.

“Many funds are required to complete it and a lion’s share of them is required to buy escalators equipment, install it and build entrances. This is a deep station – around 50 meters deep,” she said.

Makohon said that the city would decide whether the station would be completed using Kyiv budget funds or investors’ funds.

Asked about the Telychka station of the same line, Makohon said that the station was built as a technical station.

“I think that when at least a residential area is built in the district [where the station is located] city officials may consider opening it. We use this station as technical one,” she said.

TRADE REPRESENTATIVE OFFICE OF CHINA HEILONGJIANG PROVINCE TO BE OPENED IN KHARKIV REGION

KYIV. May 26 (Interfax-Ukraine) – A preliminary agreement on the possible opening of the trade representative office of China’s Heilongjiang Province in Kharkiv region has been reached during a meeting of Head of Kharkiv region Ihor Rainin with a Chinese delegation.

“The trade representative office of Heilongjiang Province in Kharkiv region will be a base for permanent communications between your specialists with representatives of our business. You will be able to monitor economic processes in the region,” the press service of Kharkiv’s Regional Administration reported, citing Rainin.

He said that all organization issues linked to the opening of the representative office will be tacked by the administration.

KYIV STARTS PREPARATIONS FOR EUROVISION 2017 – KLITSCHKO

KYIV. May 26 (Interfax-Ukraine) – Kyiv authorities intend to start the preparations for the song contest Eurovision 2017, the press service of capital’s mayor Vitali Klitschko has said.

“Kyiv stars preparations for the song contest Eurovision 2017 to hold it at a high-level next year,” the press service quoted the mayor of Kyiv.

The Ukrainian singer Jamala won in the final of Eurovision 2016 with the song “1944,” which took place in Stockholm (Sweden) on May 14. In accordance with the competition rules, Eurovision 2017 is to be held in the winner country which singer won the previous year. Thus, Eurovision 2017 will be held in Ukraine.

Earlier, mayors of several regional centers of Ukraine have already expressed their willingness to stage Eurovision 2017 in their cities. Kyiv Mayor Vitali Klitschko said that the capital would properly prepare to host Eurovision at the highest level. Klitschko named the Olympiysky National Sports Complex, which is located at the center of Kyiv, as the one of possible venues for holding the contest.

The European Broadcasting Union on June 1 will provide Ukraine with the norms for Eurovision 2017, but now the representatives of Ukrainian sports arenas are discussing the technical capability of the preparation of facilities for conducting the song contest.

ENERGY MINISTRY SUGGESTS ELIMINATING 11 STATE COAL MINES, PRIVATIZING 15 COAL MINES

KYIV. May 26 (Interfax-Ukraine) – Ukraine’s Ministry of Energy and Coal Industry within the coal industry reform program suggests elimination of 11 state-owned coal mines. Seven promising coal mines will be retained by the state as a basis for the country’s energy security, Minister Ihor Nasalyk has said.

“15 mines can be break-even or see profits. Then we will put them for privatization,” Nasalyk said at the Energy Spring congress 2016 in Kyiv on Thursday.

Nasalyk stressed that the elimination of mines would be accompanied by social programs for miners. The cooperation with the British adaptation program had already started for this purpose.