Business news from Ukraine

UKRAINIAN FARMAK TO INVEST $10 MLN IN CONSTRUCTION OF PLANT IN UZBEKISTAN

PJSC Farmak (Kyiv), among top three leaders of the pharmaceutical sector of Ukraine, plans to invest $10 million in construction of a pharmaceutical plant in Uzbekistan, the company’s press service has reported. “With a view to the export development, Farmak is considering an investment project with investment of $10 million to localize production in the Republic of Uzbekistan with the launch of production in bulk and a gradual transition to full-cycle production, with the development of technologically more complex products, in particular, radiopaque and biotechnological products,” the press service of the company said, citing Chairperson of the supervisory board Filia Zhebrovska.
At present, Farmak is fourth in sales in the pharmaceutical market of Uzbekistan, the portfolio of products sold in this country totals 120 items.
The company said that the head of the Farmak’s supervisory board and Ambassador of Uzbekistan to Ukraine Alisher Abdualiyev have already agreed on the construction of the plant.
“The new production facility of Farmak will expand the range of medicines that are produced in Uzbekistan, reduce dependence on imported production and create a basis for further expansion of the pharmaceutical cluster,” Abdualiyev said.
Farmak is a member of the Association Manufacturers of Medications of Ukraine (AMMU).

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CONSTRUCTION IN UKRAINE IN JULY 9.7% UP YEAR-OVER-YEAR- STATISTICS

The volume of completed construction works in Ukraine in July 2018 increased by 9.7% compared to July 2017, whereas growth in June 2018 from June 2017 was 2.2%.
The report does not include data from temporarily occupied territories, namely the Autonomous Republic of Crimea and partly Donetsk and Luhansk regions, the State Statistics Service of Ukraine has said.
The volume of completed construction works in July 2018 from June 2018 decreased by 5.8% (according to seasonally adjusted data, it decreased by 3.6%), whereas there was a 12.3% increase in June 2018 from May 2018.
Residential and nonresidential construction declined in July 2018 from July 2017, while the construction of engineering facilities was on the rise. According to unadjusted data, residential construction saw a 9.1% decline, while the decline of nonresidential construction was 2.6%. The construction of engineering facilities increased by 26.2%.
The construction of residential buildings in July 2018 from June 2018 decreased by 17.3%, the construction of nonresidential buildings fell by 2.4%, engineering facilities by 2.9%.
In January-July 2018, a decrease in construction work compared to the same period of 2017 was recorded in 10 regions of Ukraine, including in Luhansk (by 45.8%, to UAH 184.1 million), Sumy (by 22%, to UAH 523.8 million), Kirovohrad (by 18%, to UAH 586.5 million) regions.
The highest increase in completed construction works in the seven months was recorded in Ivano-Frankivsk (by 33.4%, to UAH 1.5 billion) and Odesa (by 54.5%, to UAH 8.2 billion) regions.
In Kyiv, the volume of construction work in the seven months fell by 2.9%, to UAH 14 billion.

EBRD TO CONSIDER A LOAN WORTH EUR 150 MLN TO NORWEGIAN NBT’S FOR CONSTRUCTION OF WIND FARM IN UKRAINE

The European Bank for Reconstruction and Development (EBRD) will consider a loan worth up to EUR 150 million for LLC SyvashEnergoProm, a subsidiary of Norway’s NBT, for the construction of a 250 MW wind farm in Kherson region, the lender said on its website. “This is a long-term senior loan of up to EUR 150 million in an A/B structure, of which up to EUR 75 million would be funded from the EBRD resources and the remainder would be syndicated in a B-loan structure to eligible institutions. The remaining project financing is expected to be provided via parallel loans from IFIs, DFIs, and other investors,” the Bank said.
The total cost of the project is EUR 369 million.
The project will help support the development of renewable energy in Ukraine and the overall decarbonisation of the energy sector. As was reported, NBT SA, which is a Norwegian wind farm developer with operating wind farms in China, in April 2018 bought LLC SyvashEnergoProm (operates a wind farm whose capacity is about 3 MW). It plans to build a wind farm with a capacity of 250-330 MW in neighboring areas.

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CONSTRUCTION WORK IN UKRAINE GROWS BY 2.2% IN JUNE

The volume of construction work in Ukraine in June 2018 increased by 2.2% compared to June 2017, while the increase in May 2018 from May 2017 was 2.7%. According to the authority, the volume of construction work in June 2018 grew by 12.3% compared with the previous month, while in May 2018 it grew by 20.5% compared with April 2018.
According to the report, in June 2018 year-over-year, the decrease in the volume of construction was observed in nonresidential construction and grew in building of engineering facilities. A fall in residential construction was 23%, while the figure in construction of nonresidential buildings fell by 5%. The increase of 17.9% was recorded in construction of engineering facilities.
In June 2018, the volume of construction of residential buildings declined by 20.4% compared with May 2018, and it grew by 5.5% in construction of nonresidential buildings and by 32.8% in construction of engineering facilities.
In January-June 2018, construction work fell in 14 regions, in particular in Luhansk region by 53.5%, to UAH 135.9 million, Sumy region by 22.2%, to UAH 417.9 million and Kirovohrad region by 21%, to UAH 457 million. The largest growth in the volume of construction works in January-June 2018 was seen in Ivano-Frankivsk region by 41.5%, to UAH 1.26 billion and Odesa region by 33.8%, to UAH 5.7 billion. In Kyiv city the volume of construction work fell by 5.6% year-over-year, to UAH 11.2 billion.

TWELVE COMPANIES FROM GERMANY, POLAND, FRANCE, GREECE, AUSTRIA, ISRAEL AND OTHER COUNTRIES BID FOR CONSTRUCTION OF WASTE RECYCLING PLANT IN LVIV

Twelve companies from eleven countries have submitted bids for the construction of a waste recycling plant in Lviv, the press service of Lviv City Council said with reference to Lviv Mayor Andriy Sadovy. “These companies have the most extensive experience in the construction of waste recycling facilities in Europe and around the world. The commission will study each company’s background and the next stage is to select one of the companies,” the press service quoted Sadovy as saying.
According to the report, the examination of documents for the compliance with the qualification requirements will take 30 days after which a list of the companies admitted to the next stage of the tender will be made public.
The following companies submitted bids for the tender: Eggersmann Anlagenbau GmbH (Germany), Control Process S.A. (Poland), СМЕС (China Machinery Engineering Corporation, PRC); Ceres Group SAS (France), ECONOVA (JSC ECONOVA, Poland), HELECTOR S. A (Greece), M-U-T (Austria), JV EFACEC-TAHAL (Israel), Atzwanger AG (Italy), Axis-Waste Treatment Technologies (the Netherlands), RIKO, industrijski, gradbeni inženiring in leasing, d.o.o. (Slovenia), and 3B Hungaria (Hungary).
According to the tender requirements, the construction of the waste recycling plant with the capacity of 240,000 tonnes of garbage per year should take 24 months. After the launch, the winner of the tender will service the facility and train local specialists for a year.
On June 1, 2018, Lviv City Council and the European Bank for Reconstruction and Development (EBRD) signed an agreement on the issue EUR 35 million for the construction of the waste recycling plant and the rehabilitation of the Hrybovychi solid household waste landfill.

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PARKING AREA CONSTRUCTION IN BORYSPIL AIRPORT TO BE COMPLETED IN AUGUST

Contractor NAN LLC (Kharkiv) plans to complete construction of a parking area near Terminal D of the Boryspil International Airport (Kyiv) in August 2018, First Deputy Director General of the airport Yevhen Dykhne has told Interfax-Ukraine.
“The contractor expects to complete the work in August, which will be the first stage of the parking area for more than 1,000 cars,” he said on the sidelines of a forum dedicated to cybersecurity in Kyiv on Tuesday.
He also said that the airport allocated UAH 440 million for the implementation of this project at this stage.
“Further we will consider the efficiency of this parking area, how much it is necessary to continue the second stage of the parking area in the short term, because the number of parking lots in the project is designed with a large margin,” he said.

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