Business news from Ukraine

CONSTRUCTION OF NEW MEDICAL COMPLEX OKHMATDYT TO BE COMPLETED IN 2021

The construction of a modern medical and diagnostic complex of the National Children’s Specialized Hospital Okhmatdyt (Kyiv) can actually be completed in 2021, said Minister of Health Viktor Liashko.
“When the new building is launched, Okhmatdyt will increase its capacity: it will be able to treat more than 32,000 patients, carry out more than 18,000 complex operations per year, in particular, more than 100 bone marrow transplants. The project will actually be completed in 2021,” he said during a meeting of the Verkhovna Rada committee on national health, medical care and medical insurance on Friday.
According to Liashko, the construction of a new medical and diagnostic building and its technical equipment are included in the list of measures to prepare for the celebration of the 30th anniversary of Ukraine’s independence and the Ministry of Health is challenged to complete the building by August 24.
Liashko stressed that the purchase of equipment for the complex is planned to be carried out according to the negotiation procedure.
To date, the construction project has been completed by 95%.
“To date, from the allocated amount of funds of the investment project (UAH 1.2 billion), 68 million have actually been used, contracts for 202 million have been concluded, tenders in the ProZorro system in the amount of UAH 962 million have been announced. However, there are some risks regarding the full commissioning of this building. In particular, the Antimonopoly Committee of Ukraine blocks procurement procedures for the amount of UAH 293 million, which makes it impossible to purchase monitors for patients. Fourteen procedures for the amount of UAH 220 million did not take place,” the minister added.

, ,

CHINA AND UKRAINE AGREE TO COOPERATE IN INFRASTRUCTURE CONSTRUCTION

Ukraine and China have signed an intergovernmental agreement providing for the expansion of cooperation between the two countries and the promotion of joint projects in the infrastructure construction sector, as well as the raising of Ukrainian funds on concessional terms from the People’s Republic of China.
According to the statement on the website of the Infrastructure Ministry of Ukraine on Tuesday, June 30, the relevant agreement was signed by Minister of Infrastructure Oleksandr Kubrakov and Minister of Commerce of the People’s Republic of China Wang Wentao.
Among the priorities of cooperation are rail transit, airports, ports, communications and municipal engineering.
Under the agreement, Ukraine and China will encourage companies and financial facilities in both countries to cooperate actively in the construction of infrastructure facilities, as well as to promote closer economic ties between the two countries and to provide necessary assistance and accompaniment in the implementation of joint projects.
The agreement also provides for the mobilization of funds on concessional terms from the Government of the People’s Republic of China necessary for the implementation of infrastructure projects.
As a result of the joint consultations, the sides will approve potential cooperation projects, which will be supported by PRC funds.

, , ,

VOLUME OF CONSTRUCTION WORK IN UKRAINE DOWN BY 12.3% IN Q1

The volume of construction work performed in Ukraine in January-March 2021 decreased by 12.8% compared to the same period in 2020.
According to the State Statistics Service, in January-March, the volume of construction work performed amounted to UAH 26.3 billion.
In March 2021 the seasonally adjusted index of construction products amounted to 99.7% compared to the previous month, the one adjusted for the effect of calendar days compared to March 2020 was 90.4%.
The service reported that in March 2021 from March 2020, an increase in the volume of construction work was observed in the segment of residential construction – by 8.6%, engineering structures – by 9.7%. At the same time, in non-residential construction, the decline in the volume of construction work amounted to 4.2%.
The share of new construction in the total volume of completed construction work amounted to 44.5%, repairs – 27.9%, reconstruction and technical re-equipment – 27.6%.
An increase in the volume of construction work in January-March 2021 compared to January-March 2020 was recorded in Khmelnytsky (by 40.8%), Rivne (by 29.2%), Ternopil (by 9.2%) and Kharkiv (by 4.7%) regions.
In other regions, there was a decrease in construction volumes. The most significant drop was shown by Chernivtsi (by 59.4%) and Vinnytsia (by 56%) regions.
The statistics are given without taking into account the temporarily occupied Crimea and the temporarily occupied territories in Donetsk and Luhansk regions.
As reported, the volume of construction work performed in Ukraine in 2020 increased by 4% compared to 2019.

, ,

ENERGOATOM AND US WESTINGHOUSE DISCUSS CONSTRUCTION OF NEW NPP UNITS IN UKRAINE

Head of National Nuclear Generating Company Energoatom Petro Kotin and Senior Vice President for Commercial Operations at Westinghouse Electric Company Elias Gedeon have discussed cooperation in the construction of new NPP units in Ukraine using AP1000 reactors.
According to the press service of Energoatom, in particular, during the negotiations held in Kyiv on June 29, the parties agreed to create a joint working group.
Energoatom said that the use of the American AP1000 technology – a next Generation III+ double loop reactor with a capacity of about 1100 MW, the design of which has fewer components, and standardization and licensing of which help to reduce the construction time and cost – in the long term will enable the company to provide a high level of safety and reliable operation of nuclear generation and respect for the environment.
As reported, Energoatom and Westinghouse have been cooperating since 2000 in the supply of nuclear fuel.

, , ,

PRICES FOR PRIMARY REAL ESTATE UP BY 12%, IN SOME PROJECTS BY 25% OVER YEAR

Prices for square meters in projects under construction for the year increased by 10-12% in hryvnias, CEO and Managing Partner of the development company DC Evolution Andriy Ryzhykov has told Interfax-Ukraine.
“A sharp rise in prices is not observed – there is a normal, projected growth of 10-12% in hryvnias and a little less in U.S. dollars. Depending on the quality of projects and the phase of implementation, prices in some objects have grown by 20-25%,” Ryzhykov said.
The expert named several reasons for the increase.
“Firstly, inflation, no one has canceled it. Secondly, people have money and they are ready to spend it. Oddly enough, the coronavirus year has become super profitable for many industries. Thirdly, the cost has increased greatly, accordingly, this needs to be compensated for by higher prices,” Ryzhykov said.
The expert also named the buyers’ increasing requirements for future housing.
“People, living in COVID-19 conditions, wanted a different quality of life, so projects that rely on environmental friendliness, nature, high-quality infrastructure and safe yards are ready to give installments, and do not complain about the flow of money, so they have the opportunity to raise the price,” Ryzhykov said.
The expert denied the assumption that a “bubble is inflating” in the domestic market of residential real estate.
“A bubble is an abundance of insanely cheap money that is thoughtlessly distributed, which leads to an unjustified rise in prices. In our country, growth is quite economically justified,” Ryzhykov said.
He said that one should not be afraid that the investment in the facilities under construction will not pay off.
“In most high-quality projects, buying an apartment at an early phase and reselling it at 30% more expensive before commissioning, one can earn about 15% per annum, and this is a completely normal investment,” Ryzhykov said.

, ,