Business news from Ukraine

STATE-RUN UKRAVTODOR TO BUILD AND RECONSTRUCT NINE ORBITAL ROADS

The State Automobile Roads Agency of Ukraine, also known as Ukravtodor, plans to build and reconstruct nine orbital roads of 101.5 km long in 2020, the press service of the agency said on Thursday. “Ukrainian cities should be freed from transit traffic, because it reduces the number of jams and improves the transit potential of the road network. In addition, it will positively influence traffic safety, air quality, the life of the road surface and reduce the number of accidents,” Head of Ukravtodor Oleksandr Kubrakov said.
In particular, in 2020, it is planned to continue the construction of the Northern orbital road of Zhytomyr, the Northern orbital road of Rivne, the South-Western orbital road of Poltava, the Southern orbital road of Dnipro, the orbital road of Dunaevtsy (on the section between Chernivtsi and Khmelnytsky). Also, work will begin on the construction of the Northern orbital road of Lviv and the Northern orbital road of Ternopil.
In addition, the company plans to build an orbital road in Kobeliaky, Poltava region during the construction of one of the priority facilities in 2020 (highway N-31 Dnipro–Reshetylivka).
The construction of an orbital road in Berehove is planned, which, according to Ukravtodor, will significantly increase the attractiveness of Ukraine in the international road transport market.
In addition, this year Ukravtodor plans to prepare a feasibility study and design documentation for additional orbital roads: the South-East road bypassing Dubno, the North-Western road bypassing Khmelnytsky, the Northern road bypassing Bila Tserkov, the road bypassing Stryi and the Kremenchuk orbital road with a bridge across the Dnieper River.

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TOP MANAGERS OF KYIVMETROBUD READY TO COOPERATE WITH LAW ENFORCERS TO BUILD SUBWAY LINE TO VYNOHRADAR

Top managers of PJSC Kyivmetrobud, acting as a contractor general in the project to extend the Syretsko-Pecherska subway line in Kyiv’s subway, is ready to cooperate with law enforcement authorities in order to continue construction works, Director General of PJSC Kyivmetrobud Kostiantyn Saliy said at a press conference at Interfax-Ukraine on Wednesday.
“The owners of Kyivmetrobud unanimously appointed me as director general, so that the previous director, Mr. Metelytsia, could deal with what he is directly doing – the construction of the subway. Political, media and team reorganization issues will be led by the director general,” Saliy said.
According to him, the enterprise will conduct an inventory of material and technical assets, as well as turn to law enforcement authorities regarding the likely embezzlement of funds.
“At the moment, the Prosecutor General’s Office has decided to seize accounts. They are also developing a “recipe” on how to control the distribution of these funds transparently. We believe that it’s good that the Prosecutor General’s Office will be present and observe how the work is being done. The Prosecutor General’s Office will also have access to documents, [will see] where the funds went, what work was done, who signed papers with margins, and will identify the whole range of interested parties,” Saliy added, noting that resolving the situation around the enterprise depends on law enforcement authorities.
As reported with reference to the press service of the Prosecutor General’s Office, the investigating judge of Kyiv’s Pechersky district court seized money in the bank accounts of PJSC Kyivmetrobud and its branches.
“In the future, the Prosecutor General’s Office will appeal to court with a motion to transfer these funds to the ARMA [Asset Recovery and Management Agency] with the possibility of making payments to build the subway under control of the state,” the press service said.
Oleh Tokarev, the head of the Kyivmetrobud’s supervisory board, said at the press conference at Interfax-Ukraine that the reason for the change in the company’s management is the unsatisfactory pace of subway construction towards the Vynohradar area, due to which the launch of the subway line is postponed for a year.
“The amount of the tender is UAH 6 billion. At the end of the year, an advance payment of UAH 2.6 billion was received. During the year that we lived with Director General Vasyl Kobil, UAH 1 billion was spent and work for UAH 150 million was completed but not signed by the customer. “This is only 2.5% of the contract amount. Therefore, on December 17, the supervisory board decided to dismiss Kobil and appoint Oleksandr Metelytsia to the post of director general,” he said.
In turn, Managing Partner of the Ilyashev & Partners law firm Mykhailo Ilyashev said that a “series of myths” about the seizure of the enterprise are being spread and suggested that “the problem was inspired by the former head.”
He also commented on the statement of the Justice Ministry on the reinstatement of the director of PJSC Kyivmetrobud and making appropriate changes to the public register.
“The minister did not annul anything. He did not cancel any decisions of the supervisory board and could not cancel, because this is outside the competence of the Justice Ministry. Most likely, this was about the conclusions made by the commission under the Justice Ministry that the notary who made changes to the register made a technical error. Today, these documents will be submitted to the notary so that the relevant changes are introduced again,” Ilyashev said, emphasizing that the statement of the ministry does not cast doubt on the lawfulness of the decisions of the supervisory board.
As reported, in 2018, Kyiv Metropoliten entered into an agreement on construction work to extend the Syretsko-Pecherska subway line with Kyivmetrobud, which won the tender held on the ProZorro platform.
As part of the first phase of work, it is planned to build two stations, Mostytska and Prospekt Pravdy, at a section of almost 4 km, and branches to the Vynohradar station to extend the line.
It was planned that the work will last until 2021, and its cost will be UAH 5.993 billion.

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SAGA DEVELOPMENT TO BUILD CLASS COMPLEX IN KIEV

Saga Development will build the Franklin Concept House premium class complex with commercial and office space located at 69, Honchara Street in Shevchenkivsky district of Kyiv. “This is the first residential complex in Kyiv with a five-star level of service. The building will feature exquisite architecture, innovative concierge service, developed internal infrastructure and a location in the city center,” the Saga Development press service said in a statement.
According to him, the apartments will be accompanied by round-the-clock service, including concierge services and a porter. In addition, the complex provides round-the-clock security and a video surveillance system with access to cameras from a mobile application.
The building will have from seven to 19 floors. The residential complex has 141 apartments, some of which include terraces. On the lower floors there will be commercial premises and offices. Infrastructure also provides parking for 37 cars.
According to LUN.ua website, the estimated commissioning dates are the fourth quarter of 2022.
The developers of the project are Saga Development in partnership with Perfect Group and Kyivproekt Development. The customer of the project is Concept-Plaza LLC, and the general contractor is Nika Ltd.
The Saga Development project portfolio includes 17 residential complexes at different stages of implementation: Rybalsky, Chicago Central House, San Francisco Creative House, New York Concept House, Bristol Comfort House, Einstain Concept House, Resident Concept House, Philadelphia Concept House, Happy House, (all based in Kyiv), Kandinsky Odessa Residence and Art Kvartal City Space (both are located in Odesa) and others.

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KOVALSKA INDUSTRIAL AND CONSTRUCTION GROUP TO BUILD TWO BUSINESS CENTERS FOR 100,000 SQ M

Kovalska Industrial and Construction Group plans next year to implement two partnership projects for the construction of A class business centers in the central part of Kyiv, Serhiy Pylypenko, the group’s director general, has said. “We see that office real estate is a segment in which there is a stable demand. Now, in partnership with two companies, we are considering two major projects in office real estate,” Pylypenko said during a press breakfast, adding that the portfolio of projects for next year includes A class office real estate for 100,000 square meters in the central district of Kyiv.
He explained that both projects are currently at the stage of developing a concept and choosing an architectural company, and already in 2020 it is planned to begin its implementation.
“This will be construction from scratch. The first office complex (four to five buildings) will have a total area of about 60,000-70,000 square meters and the second is two office buildings of 12,000 square meters. One of them we want to implement according to the LEED Silver green building standards,” the Kovalska Group CEO said.
As reported, Kovalska is at the final stage of purchase of a land plot in Lviv region, where it plans in the second quarter of 2020 to build a plant for the production of dry construction mixes with a design capacity of 120,000 tonnes per year. In general, the work can last about two years, but the group intends to complete them by the end of 2021. The preliminary project cost is estimated at $15-20 million.

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BLACK SEA OIL INDUSTRY PLANS TO BUILD VEGETABLE OIL TERMINAL AT PIVDENNY MARITIME MERCHANDISE PORT

Black Sea Oil Industry LLC (Kyiv) plans to build a vegetable oil refining and bottling complex at the Pivdenny maritime merchandise port (Odesa region).
According to the unified register of environmental assessment, the complex will have an oil refining workshop with a daily capacity of 350 tonnes or an annual capacity of 115,500 tonnes and a vegetable oil bottling workshop with the same capacity.
The bottling workshop will have two plastic bottling lines with a capacity of 10,000 liters per hour and 12,500 liters per hour.
According to the unified public register of companies and private entrepreneurs, the founder of Black Sea Oil Industry LLC is Iryna Hlushets. The company was registered in June 2019.

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UKRAINE NEEDS TO BUILD 2 GW OF HIGHLY MANEUVERABLE FACILITIES FOR EUR 1.2-1.4 BLN TO BALANCE POWER MARKET – EXPERT

Ukraine needs to quickly add 2GW of maneuverable electricity generating facilities to balance the Ukrainian power grid in the conditions of the rapidly growing renewable energy sector, which will require around EUR 1.2-1.4 billion, Business Development Director at Wärtsilä Energy business in Eastern Europe Igor Petrik has said.
“The introduction of 2 GW of highly maneuverable generating capacities gives the highest economic effect for the power system,” he wrote in an article published on the Energy Reform resource.
Petrik said that the calculations were made for gas generator stations. According to him, energy storage systems based on batteries at current equipment prices are not so effective. According to the experience of other countries, the most common option are projects of gas generator stations with a capacity of about 100 MW and a cost of EUR 60-70 million, the expert said. According to him, their gas consumption will be “insignificant” – about 40 million cubic meters per year for the installed capacity of 2 GW.
According to Petrik, the introduction of highly maneuverable generation will help reduce the use of the “hot” reserve of thermal power plants by 12.5 billion kWh per year and the volume of coal-burning generation by 4.2 billion kWh per year. As a result, the total reduction in coal consumption will be 3 million tonnes, CO2 emissions will decrease by 7 million tonnes a year.
He added that the volume of renewable energy restrictions could be reduced by more than three times – from 6.5 kWh to 1.9 billion kWh per year, and the overall reduction in operating costs of the power grid – by EUR 300 million per year.
In the current situation, the expert said that renewable energy restrictions may increase to 30% of production during 2020, with fees of EUR 580 million per year for limited energy. Petrik said that such restrictions could arise provided that the installed capacity of the solar power plants and wind farms by the end of 2020 would increase to 7.5 GW and the existing feed-in tariffs and priority dispatching of cheaper energy, such as nuclear energy, would remain.

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