Business news from Ukraine

CONSTRUCTION OF NEW AIRFIELD AT INTERNATIONAL AIRPORT IN DNIPRO STARTS

The construction of a new airfield at the international airport in Dnipro has begun, the work is to be completed in 36 months, the head of the State Agency for Infrastructure Projects of Ukraine (Ukrinfraproekt), Kyrylo Khomiakov, said on Facebook.
He said the new terminal of the airport, in turn, will be built and put into operation in 18 months.
“The first phase of construction includes all earthworks, the construction of a new apron and taxiways to connect the new terminal to the old lane during the construction of the new lane. This means that passengers will be able to use the new terminal and aircraft will be able to use the new apron by the end of next year!” he wrote.
The old runway will be operational during construction.
As reported, the state enterprise Financing of Infrastructure Projects (Fininpro) signed an agreement with Altis-Construction LLC for the purchase of works on building a new airfield at Dnipro International Airport with an offer 30.6% lower than the expected cost for UAH 3.95 billion.
According to Minister of Infrastructure Vladyslav Krykliy, back in September 2020, preparatory work began at the facility to ensure the continuous operation of the airport during construction. At the same time, a private investor, NS Dnipro, began to build new passenger and VIP terminals.
It is planned to build a runway with a length of 3.2 km at Dnipro airport. The cost of the project, according to the state examination report, is UAH 6.23 billion.
For the current year, the government has allocated UAH 1.4 billion for the construction of the airfield.

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ALTIS-CONSTRUCTION TO BUILD AIRFIELD IN DNIPRO

Altis-Construction LLC has won a tender for the purchase by the state-owned enterprise Financing of Infrastructure Projects (FinInPro), a new airfield construction at the international airport of the city of Dnipro, with an offer 30.6% lower than the expected cost.
According to the information on the tender page in the state electronic trading system ProZorro, Altis-Construction offered the final cost of the work in the amount of UAH 3.95 billion, which is 30.6% lower than the expected price (UAH 5.69 billion).
“Finally, the most expensive international tender in the history of airport construction took place, for the choice of the general contractor for the construction of the airfield of Dnipro international airport […] The path to this was not easy, but we coped, despite three rounds of appeals to the Antimonopoly Committee,” Head of State Agency for Infrastructure Projects of Ukraine (Ukrinfraproekt) Kyrylo Khomiakov wrote on his Telegram channel.
He said that seven companies took part in the auction, two of which are foreign (Turkey and Belarus).
According to Khomiakov, the contract with the winner will be signed in accordance with the law on public procurement.
The next step is to start construction work.
It is planned to build a runway with a length of 3.2 km at Dnipro airport. The cost of the project, according to the state examination report is UAH 6.23 billion.
The construction period is about three years.
This year the government has allocated UAH 1.4 billion for the construction of an airfield in Dnipro.

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TEN COMPANIES APPLY FOR TENDER FOR DNIPRO’S AIRFIELD CONSTRUCTION

Ten Ukrainian and Turkish companies have applied for participation in the tender for the construction of a new airfield at Dnipropetrovsk airport.
According to the information on the tender page in the ProZorro portal, participants in the tender will be: Ozaltin, Metag Insaat Ticaret AS, ONUR Construction International (all located in Turkey); Altcom, Olvia, SMT No.8, Rostdorstroy, Altis-Construction, Avtomagistral-Pivden (all located in Ukraine), as well as the Ukrainian-Turkish Black Sea Consortium.
“The next step is an auction among selected participants. We plan to hold it in the first decade of December. We made the technical task as simple and transparent as possible for maximum openness and competition of both Ukrainian and international construction companies,” Head of the State Agency for Infrastructure Projects of Ukraine Kyrylo Khomiakov wrote in his Telegram channel.
The expected cost of the main work on the construction of a new airfield in Dnipro is UAH 5.69 billion.
In the 2021 draft budget submitted by the Cabinet of Ministers for the second reading, UAH 1.4 billion is expected for the construction of the airfield.

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INTERPIPE STEEL REDUCES STEEL PRODUCTION BY 14%

Electric steelmaking complex Interpipe Steel of the international vertically integrated pipe and wheel company Interpipe (Dnipro) in January-October of this year reduced steel production, according to operational data, by 13.9% compared to the same period last year, up to 641,000 tonnes.
As the Interfax-Ukraine agency was informed in the company, 62,800 tonnes of steel were produced in October.
As reported, Interpipe in 2019 reduced steel production by 4.2% compared to the previous year to 854,500 tonnes.
Interpipe is a Ukrainian industrial company, a manufacturer of seamless pipes and railway wheels. The company’s products are supplied to more than 80 countries around the world through a network of sales offices located in the key markets of the CIS, the Middle East, North America and Europe. In 2019, Interpipe sold 823,000 tonnes of finished products, including 202,000 tonnes of railway products. Railway products are sold under the KLW brand.
Interpipe employs 11,000 people. In 2019, the company transferred UAH 3.25 billion to the budgets of all levels.
The company includes five industrial assets: Interpipe Nyzhniodniprovsky Pipe Rolling Plant, Interpipe Novomoskovsk Pipe Plant, LLC Interpipe Niko-Tube, Dnipropetrovsk Vtormet and Dniprostal Steel Complex under the Interpipe Steel brand.

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EBRD ISSUES EUR25 MLN TO DNIPRO MUNICIPAL ENERGY SERVICE COMPANY

The European Bank for Reconstruction and Development (EBRD) and Dnipro Municipal Energy Service Company (Dnipro) have signed a loan agreement on the allocation of EUR25 million in a loan to improve the energy efficiency of 98 public buildings, including 67 kindergartens, 27 schools and four clinics.
“Thanks to the agreement between Mayor Borys Filatov and the EBRD, today we’ve signed a loan to finance the second stage of a large energy saving project in the city’s buildings. This will create conditions that are more comfortable for the residents of our city,” the bank’s press service quotes deputy mayor of the city Eduard Pidlubny.
“The new loan builds on the successful implementation of a pilot project with Dnipro’s energy management company in 2020. Under the pilot financed by the EBRD, the E5P and the Clean Technology Fund, 33 schools and 48 kindergartens have been refurbished offering more comfort and greater energy efficiency,” the bank said on its website.
“The new financing will allow the city to maintain the pace of its energy efficiency investments in public buildings and will set an example for other Ukrainian cities to follow. Once the projects are completed, the city would have renovated almost 200 public buildings, the largest such effort in Ukraine,” Mark Magaletsky, the EBRD Deputy Director for Ukraine, said.
The EBRD’s board of directors reportedly approved the project last week.
The loan has a term of 13 years, including a grace period of up to three years, with 20 equal payments every six months. The loan will be secured by the city’s full municipal guarantee, the bank said.

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EBRD COULD PROVIDE EUR 25 MLN LOAN TO COMMUNAL COMPANY DNIPRO TO BOOST ENERGY EFFICIENCY

The European Bank for Reconstruction and Development (EBRD) could provide a senior loan of up to EUR 25 million to the communal company Dnipro Municipal Energy Servicing Company (Dniprovska Municipalna Energoservisna Kompanya, the city of Dnipro) for energy efficiency investments in 98 public buildings, including 67 kindergartens, 27 schools and 4 outpatient clinics.
“The investments are expected to result in strong improvement of buildings’ condition through renovation of facilities and meeting heating requirements, improved comfort level and reliability of services at kindergartens, schools and clinics, as well as reduction of energy and maintenance costs of the buildings and decrease of CO2 emissions,” the bank said on Tuesday.
The project is pending of the decision of the EBRD board on October 13.
According to the document, the loan maturity is up to 13 years, including up to three years grace, with 20 equal semi-annual repayments. The loan will be secured by a full municipal guarantee from the city.
The loan is expected to be co-financed by up to EUR 5.5 million investment grant from the Eastern Europe Energy Efficiency and Environment Partnership (E5P), subject to grant approval by the E5P Assembly of Contributors.
The local contribution of up to EUR 2.5 million will cover additional energy conservation measures and capital repairs.
The EBRD said that the loan will be a sub-project under the Public Sector Energy Efficiency Financing Framework (PSEEF), consisting of municipal-guaranteed loans to municipal energy management companies in Ukraine to facilitate critical improvements in energy efficiency measures in public buildings in a number of cities across Ukraine.

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