Business news from Ukraine

LAWMAKER PROPOSES TO HOLD LAND AUCTIONS IN UKRAINE ONLINE

KYIV. July 19 (Interfax-Ukraine) – Ukrainian lawmaker Maksym Mykytas (not a member of any parliamentary faction) has proposed to the Verkhovna Rada to approve the procedure for duplication of land auctions on the electronic platform and allow bidders to take part in online auctions.
The bill amending the Land Code of Ukraine was registered on July 14, 2017.
“The bill proposes amending Chapter 21 of the Land Code of Ukraine, envisaging the duplication of the auctions in the electronic land trading platform and the possibility of taking part in the auctions online,” the explanatory note to the bill said.
The author of the document believes that the absence of the online trading create conditions for corruption and restricts competition among bidders.
The lawmaker also registered a bill proposing the publication of announcements on the start of land auctions not only on the official website of the central executive power agencies, but also on websites of local self-government agencies and the executive agency of the administrative and territorial unit where the land parcel is located.
He said that this would allow raising public awareness about land auctions.

PM ANNOUNCES NEW PROGRAM TO SUPPORT FARMS

KYIV. July 19 (Interfax-Ukraine) – Ukrainian Prime Minister Volodymyr Groysman at a government meeting on Wednesday said that a new targeted program to support farms could be launched.
“Financial support of agriculture via cheapening of loans [in the amount of UAH 300 million] is not enough, but this step was right. We plan to approve a new program to support farms in August. This would allow developing agriculture in the small and medium segments and in the micro business segment,” he said.
Groysman added that in 2017, agricultural producers would be able to receive partial compensation for purchase of agricultural machinery in the amount of 20% of its cost if the production localization level for sophisticated machinery in Ukraine exceeds 35%. UAH 550 million was allocated for these purposes in 2017, and in 2018 the government support under this program could expand to UAH 1 billion.
The prime minister said that in January-March 2017 capital investment in agriculture grew by 60%, to UAH 10.9 billion. In January-May exports of agricultural products rose by 31.4%, to $7.5 billion.
He said that agriculture accounts for 12% of Ukrainian GDP, with processing it is almost 17%, but the potential of the sector remains huge.

POLAND’S PESA WINS TENDER TO SUPPLY 40 TRAM WAGONS TO KYIV CITY FOR UAH 1.8 BLN

KYIV. July 19 (Interfax-Ukraine) – Pojazdy Szynowe PESA Bydgoszcz Spółka Akcyjna (Poland) has won a tender to supply 40 low-deck 26-meter tram wagons to Kyiv city proposing to make them for UAH 1.813 billion with the expected cost of UAH 1.946 billion.
According to the tender on Monday in the ProZorro e-procurement system, the second bidder – Ukrainian-German JV Electrotrans (Lviv) offered tram wagons for UAH 1.813 billion and did not decrease the price during the tender, while initially Pesa offered the tram wagons for UAH 1.846 billion.
Kyiv city early April 2017 announced a first tender to supply 40 tram wagons for UAH 1.96 billion. At the end of May 2017 the tender was annulled, as Pesa was the only bidder in the tender.
In the middle of June 2017 Electrotrans won a tender to supply seven 30-meter low-deck tram wagons to Kyiv city for UAH 301 million.

BOGDAN MOTORS STARTS MASS PRODUCTION OF GAS BUSES

KYIV. July 18 (Interfax-Ukraine) – Bogdan Motors, part of Bogdan Corporation, is launching a mass production of Bogdan A22115 gas buses on the aggregate base of the Indian Ashok Leyland with a Euro 5 engine at Lutsk plant, the corporation’s press service has said.
According to the report, the production of this bus will allow the company to enter new markets, will facilitate the loading of production facilities.
Bogdan A22115 is a city bus with a low platform 8.21 meters long, which has a methane-powered engine. The bus is adapted for carriage of passengers in wheelchairs, i.e. equipped with a special ramp for boarding and special places.
In addition, the bus is additionally equipped with audio and video devices for convenience of persons with visual impairments and hearing loss.
The total passenger capacity of buses is 56 people, including 18 seats.
The final work on preparing buses for serial production was carried out jointly with specialists from Ashok Leyland.
“The main feature of gas buses is environmental friendliness. Taking into account work on methane, the level of emissions into the atmosphere is minimal compared to diesel engines,” the press release says.