Business news from Ukraine

STATE-RUN UKRAVTODOR STARTS REPAIR WORKS ON ROAD TO OCHAKIV

The State Automobile Roads Agency of Ukraine (Ukravtodor) in 2020 will renew the road T-15-13 Nechayane – Ochakiv (Mykolaiv region) with a length of 36.9 km, Ukravtodor has said in its Telegram channel.
“This is one of the worst roads in the country, which leads to picturesque places on the Black Sea coast. The plan is to launch it by the end of 2020,” the press service said, citing Ukravtodor Head Oleksandr Kubrakov.
Rostdorstroy LLC and OJSC Road Building Enterprise DST No. 4 Brest were identified as the contractors for the repair work.
The agency said that the work began from the north – the exit from the M-14 road Odesa – Melitopol – Novoazovsk. The contractor is currently cutting the worn-out road surface on a 6-kilometer stretch.
In general, in 2020 in Mykolaiv region it is planned to renew 185.5 km of national roads.
In Ukraine, according to the data of Ukravtodor, the Automobile Road Service has completed the upgrade of 2,022 km of roads in the upper layer of the road surface, another 800 km have been completed in the leveling layer. The leaders are Zakarpattia (223.5 km), Kharkiv (221.2 km), Zaporizhia (168.8 km), Sumy (149.9 km), Luhansk (133 km) and Lviv (130.1 km) regions.
RDS Group is included in the top three road construction companies of Ukraine. It includes Kyivshliakhbud” and Rostdorstroy. The core business is construction, reconstruction and maintenance of roads and bridges, construction of airfield complexes.
The ultimate beneficial owners of RDS Group are Ukrainian citizens Yuriy Shumakher and Yevhen Konovalov.

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DRAGON CAPITAL INVESTMENT COMPANY TO START BUILDING INDUSTRIAL PARK NEAR KYIV

Dragon Capital investment company has developed a concept for the E40 Industrial Park with an area of 200,000 square meters on the 27th kilometer of the Zhytomyr highway (Kolonschyna village, Kyiv region), plans to start the construction of the first stage in 2021.
“According to the developed concept, the total area of the buildings of the industrial park will be 200,000 square meters, including class A production and storage facilities, cross-docking terminals, office, utility and infrastructure facilities (a hotel, a truck service station, etc.),” it said in a press release.
According to the report, the project will be located on a front land plot with an area of 49 hectares.
“Thanks to the support of Makariv Regional State Administration, as well as the Regional Development Agency of Kyiv region, Dragon Capital managed to develop and approve a detailed plan of the territory as quickly as possible. This will allow the company to proceed to the next step in the implementation of the project – the development of project documentation. Our company plans to start building the first stage of the E40 Industrial Park in 2021,” the report says.
As reported, Dragon Capital acquired the relevant plots in 2018 from Europolis GmbH, which is part of the large real estate concern CA Immo Group (Vienna, Austria).
Dragon Capital is one of the largest groups of companies in Ukraine that operates in the field of investment and financial services and provides a full range of investment banking and brokerage services, direct investments, asset management for institutional, corporate and private clients.

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UKRPOSHTA PLANS TO ATTRACT EUR 100 MLN IN OCT FOR BUILDING CENTERS

Ukrposhta expects to sign an agreement with the European Bank for Reconstruction and Development (EBRD) and the European Investment Bank (EIB) in October to raise a EUR 100 million loan for the construction of new sorting centers.
“I really hope that on October 1 we will sign the first EUR 100 million agreement in the history of Ukrposhta for the construction of a new logistics network with the EBRD and the EIB and, in fact, we will start building a new Ukrposhta,” its CEO Igor Smelyansky said on the air of KSE Business Transformation Week “Transformational Leaders. Public Sector.”
He also recalled that Ukrposhta built the last sorting center in 1980 and noted that it is very difficult to compete with the market players such as Nova Poshta using such outdated equipment.
At the same time, according to Smelyansky, despite the quarantine, the company continues to grow in the volume of services provided.
As reported, in the spring, Ukrposhta hoped to attract EUR 100 million for the construction of new sorting centers by summer. The company later clarified to the Interfax-Ukraine agency the funds raised are planned to be used for the design and construction of three or four terminals, as well as for the automation of about 30 depots.

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PRIVATE INVESTOR MULLING POSSIBILITY OF BUILDING INTL AIRPORT IN UKRAINIAN REGION ZHYTOMYR

Head of Zhytomyr Regional Administration Vitaliy Bunechko reported on the ongoing work with a private investor who is seriously considering the issue of building an international airport in Zhytomyr as a public-private partnership.
“In order for the airport to work within the framework of the international airport, it is necessary to complete the construction of the runway. To complete it, we need UAH 360 million. What are we doing in this direction? A certain land plot has been transferred to the city. We are now very actively working with the private investor who is seriously considering the construction of the international airport within a public-private partnership. The idea is even to make a cargo hub here to unload Kyiv, the Zhuliany and Boryspil airports, to make a hub here to fly here and send cargo across Ukraine,” he said in an exclusive interview with Interfax-Ukraine.
Speaking about road construction, Bunechko said that since the beginning of his work as head of the regional administration in August 2019, he was skeptical about whether the Chinese contractors would be in due time with the construction of a ring road around Zhytomyr, since they violated all the deadlines.
“But the pace with which they are now making the road, and the kilometers of the road that are already there, all this gives hope and optimism,” he said.
Bunechko said that the region now has a new approach to regional roads, and not “patching up” roads.
“When I reported to the president about my first 100 days of work, I said that there would be 90 km of roads, he asked: “Are you going to build roads in 10 years?” We have a network of 7,000 km. He said that we need to look for opportunities. I want to say today it is 140 km of regional roads, which are already being repaired, despite all the obstacles that were in the antimonopoly committee. We have overcome them, we have completely tendered all our 53 highway points, all roads are being repaired. There are some roads that have already been completed, now they will be put into operation, it remains to obtain permits,” he said.
The governor said that the most critical sections of roads were selected throughout Zhytomyr region, and soon everyone will feel that the roads are being built.

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ENERGOATOM SIGNS MEMO WITH H2 ON BUILDING DATA CENTER FOR $700 MLN

Acting President of National Nuclear Generation Company Energoatom Petro Kotin and the H2 company have signed a memorandum of cooperation on the construction of a computing data center near Zaporizhia Nuclear Power Plant (NPP), the press service of Energoatom said on Thursday, August 20.
According to the press service, the data center will become one of the largest in Europe, and the investment will amount to $700 million.
The press service reported that the document signing took place in presence of President of Ukraine Volodymyr Zelensky during his working trip to Zaporizhia region.
In turn, PrJSC Ukrhydroenergo during the same visit of the president announced the signing of a memorandum of cooperation with H2 LLC on the construction of a hydrogen electrolysis plant.
The expected investments in the project may amount to about EUR 300 million. The cooperation envisages “the construction of production facilities with constant electricity consumption”.
As reported, during his working trip to Zaporizhia on August 19, Zelensky attended the presentation of an action plan for the implementation of the Development Strategy of Zaporizhia region for the period until 2027, which provides, in particular, for the construction of data centers.
During a meeting with Acting Energy Minister Olha Buslavets in early August, Director of H2 LLC Andriy Zhovner and CEO of Yom Capital Ltd Walter Komarek voiced their interest in building a hydrogen plant and a data center in Ukraine.
Investors, in particular, are interested in the southern region of Ukraine, where there is a significant surplus of electricity, cooperation with NNPGC and PJSC Ukrhydroenergo.

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CHINA READY TO INVEST $600 MLN IN BUILDING NEW UNIT OF UKRAINIAN TPP

China expects Ukraine to provide state guarantees for investing $600 million in the construction of a new unit at Sloviansk thermal power plant (TPP, PJSC Donbasenergo), Liu Jun, the adviser for trade and economic issues at the Embassy of China in Ukraine, has said.
“The Chinese side is ready to invest more than $600 million in this project, provided that the Ukrainian side provides state guarantees,” he said in an exclusive interview with Interfax-Ukraine.
Jun recalled that the investment agreement between Dongfang Electric International Corporation (DEIC) and Donbasenergo for the joint implementation of the project was signed in December 2018.
“The construction of the sixth power unit is a new serious potential joint project between Ukraine and China. I am sure that its implementation will bring great benefits for both the Ukrainian people and Chinese enterprises,” he said.
As reported, the contract between DEIC and Donbasenergo provides for the construction of power units Nos. 6A and 6B of 330 MW each at Sloviansk TPP using CFB technology (burning solid fuel in a circulating fluidized bed).
The contract price is $684.296 million. Financing for the reconstruction foresees 70% of funds of a credit from a Chinese bank.

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