Business news from Ukraine

UKRAINE READY FOR CONSTRUCTION OF 763 KW SOLAR POWER PLANT IN CHORNOBYL NPP ZONE

Construction of one more solar power plant with a capacity of 762 kW on the territory of the Chornobyl exclusion zone will be started in July 2019 and completed in December, the Ecology and Natural Resources Ministry has told Interfax-Ukraine. The project is financed by the Government of Spain. According to Svitlana Hrynchuk, Director of the Department for Climate Change and the Ozone Globe of the Ecology and Natural Resources Ministry, the solar power plant in Chornobyl is being built under a program of targeted environmental (“green”) investments that Ukraine received from Spain, transferring its emission quotas for greenhouse gases.
According to the ministry, at the end of 2018, a joint Ukrainian-Spanish committee, which controls the efficiency and feasibility of using the Kyoto funds provided by the Spanish government, approved the respective project to reconstruct the asphalt concrete pavement on the territory of the Chornobyl sports stadium by installing the solar power plant. The project was developed by state-owned enterprise Center for Organizational, Technical and Information Support of the Exclusion Zone Management.
The ministry also said that at the end of March, the Ukrainian-Spanish delegation, which included Ambassador of Spain to Ukraine Silvia Josefina Cortes Martin, as well as representatives of Ukrainian ministries and departments, inspected the territory where the plant will be installed.
Cooperation with the Spanish government was resumed in 2016 after an almost 10-year break, the ministry recalled. About 10 years ago, the Ministry of Agriculture, Fisheries and Food of Spain bought the so-called Assigned Amount Units from Ukraine for EUR 30 million.
Currently, a solar power plant with a capacity of 1 MW is operating in the Chornobyl zone. The plant was built by Ukrainian-German consortium Rodina-Enerparc AG in 2018. The consortium plans to expand the plant’s capacity to 100 MW.

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EKO-DIM CONSTRUCTION COMPANY SEES 1.5-FOLD RISE IN NET PROFIT

Private joint-stock company Eko-dim holding company (Lviv region) in 2018 saw a 1.5-fold rise in net profit, reaching UAH 15.1 million.
According to a company report in the information disclosure system of the National Commission for Securities and the Stock Market on holding of a general meeting of shareholders on April 23, net profit per share in 2018 was UAH 173.10, while in 2017, UAH 109.10 of net profit was per share.
The retained earnings grew by 40%, to UAH 52.5 million.
Total receivables last year rose by 20.7%, to UAH 35.5 million, noncurrent liabilities fell by 87%, to UAH 31 million. Current liabilities decreased 19%, to UAH 50.7 million.
Eko-dim holding company (before July 1, 2010 it was OJSC Mobile Mechanized Convoy No. 9) was founded in 1997. The company is engaged in construction and installation work, has its own concrete plant, a workshop of concrete products, a metalworking site, and a sawmill with a carpentry shop.

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CONSTRUCTION OF BRIDGES IS REAL STEP TO RESTORE UKRAINE’S INFRASTRUCTURE – INFRASTRUCTURE MINISTER

During a working visit to Chernivtsi region Ukrainian Infrastructure Minister Volodymyr Omelyan examined a bridge in the village of Roztoky of Putyla district, the press service of the Infrastructure Ministry has reported.
“In 2008, as a result of flooding, roads and bridges of Chernivtsi region were significantly damaged… In the continuation of the construction of a bridge in the village of Roztoky, UAH 75 million were provided. UAH 100 million will be sent this year for the bridge over the Prut River. These are real steps of restoring the infrastructure of Ukraine. I thank the President of Ukraine, who identified the infrastructure as a key priority, as well as the governments of [Arseniy] Yatsenyuk and [Volodymyr] Groysman, which make it possible to gradually change the road network, repair bridges and give people new quality of travelling Ukraine,” the ministry said on the official page in the Facebook network on Sunday night.
Total subventions from the Road Fund for local roads in 2019 will be about UAH 15 billion.
“This is a large amount of financing, which has never happened before. All these funds should be used to restore roads and bridges in the regions, 20% of the funds can be spent on public roads. But for great effect, I urge local authorities to co-finance road repairs,” Omelyan said.

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JABIL CIRCUIT FROM USA INVESTS $16 MLN IN CONSTRUCTION OF ELECTRONICS MANUFACTURING SITE IN UKRAINE

The U.S. Jabil Circuit has invested $16 million in the construction of a second stage of the electronics manufacturing site in the village of Rozivka, Zakarpattia region, Jabil Director General in Ukraine Serhiy Kartsev told reporters at the presentation of the plant on Friday. With the opening of the second stage, the site’s area has doubled to 46,600 square meters, and in the short term, Jabil plans to increase the staff to 5,000.
“Since the founding of the first Jabil manufacturing site in Ukraine, we have invested over $2 million in infrastructure facilities, which were later transferred to the village council. In particular, we built two new wastewater treatment plants, one of which is intended for Rozivka and it is our contribution to development of the environment protection in the region,” Kartsev said.
According to Kartsev, the Jabil plant in Uzhgorod is the only one in Europe engaged in the production of full-cycle products, the plant is constantly expanding its production capacity.
The plant also collaborates with more than 20 universities of Ukraine, including 25 engineering faculties, which programs have certain specifications for work with Jabil.
About 65% of the volume of products manufactured at the site is intended for the telecom industry. Also, Uzhgorod plant produces goods for the smart home market, consumer goods and goods for the automotive industry.
Mobile phones, media players and PCs for exports to the European Union will be assembled at the new site.
Jabil Circuit is among top three global leaders among companies offering supply chain solutions. Electronics for Nespresso, Ceragon, Sagemcom, SIAE Microelettronica, DUCATI Energia, SIT and TeleTec brands is assembled at the Uzhgorod site
Jabil is an electronic product solutions company providing comprehensive electronics design, production and product management services to global electronics and technology companies.
The first manufacturing site in Zakarpattia region was launched in 2004. As of early 2019, around 3,000 employees worked there.

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CANADIAN TIU PLANS TO COMPLETE CONSTRUCTION OF TWO SOLAR POWER PLANTS IN UKRAINE

TIU Canada plans to complete construction of two solar power plants with a total capacity of some 31 MW in Lymansky district of Odesa region this summer, TIU Canada in Ukraine Manager Valentyna Beliakova has said in an interview with Reform.Energy portal.
Commenting on plans to expand the solar power plants portfolio to 100 MW, she said that the company will return to them after the adoption of the law on green auctions.
According to the forecast of Beliakova, the market for the construction of solar power plants in 2020 after the introduction of auctions will definitely begin to fall. “Until the auction system will be adjusted, until investors will understand how to work on it, and until they will allocate quotas… the volume that is planned to be provided to all renewable energy facilities now – and the numbers of 500-700 MW per year are voiced – is small,” she said.
Commenting on the fact of the high tariff for the purchase of electricity from the solar power plants in Ukraine, Beliakova said that in Germany, one of the first to introduce this mechanism of support for renewable energy, the tariff was valid for 10-15 years at a fairly high level. In Ukraine, less time has passed since the establishment of the feed-in tariff, moreover, in 2015-2016, it was reduced.
“In addition, how are auctions held in Germany? The winner is provided with land parcels, technical conditions for connection. This significantly reduces the cost of the project. The investor can only install equipment. They have clearly defined territories, free capacity and connection conditions,” the head of TIU Canada in Ukraine said, noting that in view of this it is incorrect to compare the tariff of 15 eurocents per kWh in Ukraine with the tariff of 4-6 eurocents in Germany.
According to Beliakova, the stimulation of green energy, of course, should be only until its share reaches a certain level. “However, Ukraine does not yet follow the schedule for renewable energy facilities outlined in the Energy Strategy,” the head of TIU Canada in Ukraine said, recalling that the share of alternative sources of Ukraine’s overall generation remains low – less than 2%.
As reported, TIU Canada began its activity in Ukraine in June 2017. Its owner is the investment company Refraction Asset Management (Calgary, Canada). The company has already built a solar power plant with a capacity of 10.5 MW in Nikopol and is building another one in Mykolaiv region with a capacity of 13.5 MW.

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BURISMA TO INVEST UAH 60 MLN IN CONSTRUCTION OF NEW GAS PIPELINE IN KHARKIV REGION

Burisma Group, a gas producer, in January 2019 started building a gas pipeline that would connect Vodianivske and Karaikozivske fields in Kharkiv region and plans to invest UAH 60 million in the project, the company’s press service has reported.
The company expects that the new gas pipeline will allow boosting efficiency of operation and management of flows between the two fields. The length of the new gas pipeline will be 16.6 km.
Burisma Holdings controls Energy & Service Company Esko-Pivnich, LLC KUB-Gas, LLC Pari, the First Ukrainian Gas and Oil Company, SystemOilEngineering, Nadragas, Aldea-Ukraine, Burisma Service, Tehnokomservis, NadraGazVydobuvannia, GasOilInvest, and NGPGeo (Oil and Gas Industrial Geologia).
Mykola Zlochevsky is Burisma’s beneficiary.

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