Business news from Ukraine

UKRAINE, WORLD BANK SIGN AGREEMENT ON $500 MLN LOAN FOR REFORMS

KYIV. Aug 28 (Interfax-Ukraine) – Ukraine’s Minister of Economic Development and Trade Aivaras Abromavicius and World Bank Director for Ukraine, Belarus and Moldova Qimiao Fan have signed a loan agreement on the World Bank issuing a loan to Ukraine in the amount of $500 million to accelerate the pace of reforms.

“This $500 million of financial aid is intended for strategic and institutional reforms,” the Ukrainian minister said.

He said the money has been granted to improve public administration and the business climate, reform the energy sector, and provide assistance to the needy.

The loan has been granted for 16 years, with a seven-year grace period at a variable interest rate, which now stands at 1.25%.

“The package of reforms supported by this operation will help address the deep-rooted structural problems that have contributed to Ukraine’s current economic crisis. We are helping Ukraine to implement an urgent set of measures, which will be essential to stabilize the economy, provide quality services to all Ukrainians, and return the country to a sustainable growth path,” Qimiao Fan said.

He added that the World Bank is preparing another loan of $500 million, and that documents for granting this loan will be submitted to the World Bank Board of Executive Directors for consideration in September.

 

KYIV’S 2025 GENERAL PLAN FORESEES CITY DEVELOPMENT THANKS SUBURBS IF LOCAL COMMUNITIES AGREE

KYIV. Aug 28 (Interfax-Ukraine) – The new draft general plan of Kyiv until 2025 retains the possibility of developing the city thanks to its suburban zone, although this is only possible if local territorial communities give their consent, Head of the Town-planning and Architecture Department of Kyiv City Administration Serhiy Tselovalnyk has said.

“Kyiv city agglomeration would be created for sure, but not thanks to a change to Kyiv’s borders or territorial expansion, it would be done on the basis of the law on voluntary cooperation of territorial communities when, as is done in France, for example, Lyon, Paris, agreements between Kyiv’s communities or its districts and local authorities of the territory to which the function is transferred will be signed,” he said during lawmaker hearings on the Kyiv’s general plan on Thursday.

According to the new draft general plan of Kyiv until 2025, in the next 20 years if the planning decisions for the further development of Kyiv, the territory of which as of January 1, 2015 was 83,558 hectares, are agreed, a total of 1,416 hectares of new territories are additionally required.

Tselovalnyk said that the new general plan has been drawn up taking into account the forecast for the development of the demographic situation and transport infrastructure on the basis of updated data, while in the current general plan until 2020 the forecast indicators were set too low, and have now been exceeded.

According to the new plan, it is planned that the population of Kyiv would increase to 3.147 million within the next 20 years from 2.847 million as of January 1, 2015.

The draft document plans the construction of 22 million square meters or 314,300 new apartments, the increase of the average number of square meters per person to 27 from 22.3 as of January 1, 2015, and the removal of 912,500 square meters of housing area.

In the next 20 years it is planned to increase the housing fund of Kyiv to 84.707 million square meters or 1.386 apartments from 63.619 million square meters or 1.088 million apartments as of January 1, 2015.

The draft document states that during this period the Kyiv’s landscape, recreation and green space would be reduced to 27,981 hectares from 32,997 hectares as of January 1, 2015, and the city nature reserve fund would be expanded from 12,452 to 18,899 hectares.

In the next 20 years it is planned to reduce industrial and scientific space to 2,954 hectares from 3,739 hectares as of January 1, 2015.

Tselovalnyk said that the new draft general plan includes construction of new roads and redirection of transport flow to bypass the central part of Kyiv.

It is planned to increase the general length of streets and roads to 1,869 kilometers from 1,663 kilometers as of January 1, 2015.

In addition, it is planned to build four waste recycling complexes with a total annual capacity of 800,000 tonnes.

It is planned to increase the number of solid waste landfills to four with a total area of 115.9 hectares and the number of construction waste landfills to two with a total area of 74.2 hectares, while as of January 1, 2015, one of each kind of landfill was operating with a gross area of 63.4 hectares and 32.5 hectares respectively.

It is also planned to increase the number of preschool educational centers and schools to 107,000 from 87,900, and to 358,800 from 308,300 as of January 1, 2015 respectively.

AGROPRODSERVICE THRESHES 120,000 TONNES OF EARLY GRAIN, LEGUME CROPS

KYIV. Aug 28 (Interfax-Ukraine) – Agroprodservice Corporation has finished harvesting early grain and legume crops, and has threshed 120,000 tonnes of grain, the company has said.

The company said that the harvest is the largest in the history of the company.

Average grain yield is over 7 centners per hectare, and wheat yield is 8 centners per hectare.

“This has become possible as Agroprodservice considerably improved organization and production technologies, planting of high-yielding grain crops [was successful], and more attention was paid to farming standards on the remote fields,” the company said on Thursday.

Agroprodservice Corporation was created in 1999. As a diversified enterprise, it operates in 50 settlements in seven districts of Ternopil and Ivano-Frankivsk regions. The company cultivates 37,000 hectares of land.

UKRAINE EXPECTS EU TO INCREASE QUOTAS FOR UKRAINIAN GOODS UNDER FTA – YATSENIUK

KYIV. Aug 28 (Interfax-Ukraine) – Ukraine expects the European Union to increase quotas for Ukrainian goods under the Free Trade Area (FTA) agreement, Prime Minister of Ukraine Arseniy Yatseniuk said during a joint briefing with Lithuanian Prime Minister Algirdas Butkevicius in Kyiv on Friday.

“You, as an EU member state, perfectly understand that we need to find new markets, and the European market is a key one for us. That’s why we’ll appreciate support of your [Lithuanian] government when considering increasing quotas of Ukrainian products, which could be supplied to the European market as a FTA Agreement with EU,” Yatseniuk said.

 

KYIVENERGO INTENDS TO TRANSFORM ENERGIA INCINERATION PLANT INTO A FULLY FUNCTIONAL PUMPED STORAGE POWER PLANT BY 2019

KYIV. Aug 27 (Interfax-Ukraine) – Public joint-stock company Kyivenergo (Kyiv), as part of its modernization plan, will ensure that Energia incineration plant will become a fully functional pumped storage power plant running on alternative energy by the end of 2018, the company’s press service has reported.

“This resolves two very urgent tasks: the provision of alternative energy to Kyiv and waste recycling,” the press service said, citing Kyivenergo CEO Yuriy Mahera.

At present, Kyivenergo has started the second stage of modernization of the incineration plant during which boiler four and the electric filter will be overhauled with a replaced heating surface, external pipelines, water eco-meter, and restored setting and insulation. Clamshells for cranes in the slag and solid waste sections will be bought. This stage would be completed by the end of the year.

The press service said that after the overhaul, the effectiveness of the boiler and waste incineration volumes would grow by 20%, and emissions would be reduced to 40-50% of the limits

By the end of 2018, all the boilers and electric filters of the plant are scheduled to be overhauled.

“This would result in the increase of solid waste incineration by 20% (from 235,000 to 280,000 tonnes a year) and heating production would grow by 60% (to 360,000 gigacalories a year). The Energia incineration plant would be able to supply heating and hot water to over 300 apartment blocks (120,000 apartments), and in the summer period – supply hot water to 700 apartment blocks (around 280,000 apartments). In general, Kyivenergo would invest UAH 210 million in the development of the plant in 2015-2018,” the report said.

In 2017-2018, Kyivenergo also plans to install a 4 MW turbine at the Energia incineration plant, which would generate 14 million kWh of electricity every year (this is enough to cover needs of around 30 apartment blocks). The company also plans to build a modern emission gas purification system in 2018.

Kyivenergo said that the company has finished the first stage of the plant’s reconstruction by building a pipeline through which heating from waste incineration is sent to the heating supply pipelines of the city (UAH 28 million of investment).

Energia incineration plant belongs to Kyiv city and it is under the management of Kyivenergo. Its annual waste incineration capacity is around 240,000 tonnes (Kyiv creates around 1.3 million tonnes of waste a year in general).

NBU’S FOREX RESERVES EXPAND TO $12 BLN – YATSENIUK

KYIV. Aug 27 (Interfax-Ukraine) – The forex reserves of the National Bank of Ukraine (NBU), which totaled $10.38 billion as of early August 2015, have expanded to $12 billion, Ukrainian Prime Minister Arseniy Yatseniuk said while opening a cabinet meeting in Kyiv on Wednesday.

He said that the World Bank on August 25 approved the provision of a $500 million IBRD loan to finance the Second Multi-Sector Development Policy Operation in Ukraine, which will be transferred to the government’s accounts by September 9.

“This opens the doors for additional financial resources which could be received from Japan – $300 million and other contributors,” he said.

Yatseniuk said that the World Bank could provide another $500 million under the Second Financial Sector Development Policy Loan (FSDPL2), which would also be transferred to the government’s accounts, which would create a cushion of financial stability.

He said that government has accumulated financial resources this year, taking into account possible threats from international financial markets, and at present, it has UAH 30 billion in the single treasury account, and UAH 35 billion in currency accounts.

“In general, the financial situation in Ukraine is rather stable, and all measures taken by the government jointly with our international partners show that there is [a large] enough financial cushion, and enough resources to retain stability,” Yatseniuk said.