INVESTMENT PASSPORT of Ternopil region

2015

WELCOME SPEECH

Dear Sirs/Madams!

We have the honour to represent you an investment passport of Ternopil region, which we believe contains comprehensive and qualitative information on the investment opportunities of the region. Our region is situated in the centre of Western Ukraine and owns a favourable economic and geographical location. The main advantage is a considerable natural and resource potential – highly productive land and forest fund and prospected reserves of mineral water. The unique tourist and recreational potential makes our region an attractive place for investments and business development. Ternopil region is a spiritual heart of Ukraine. There are Greek-Catholic, Rome- Catholic and Protestant churches, which are yearly visited by millions of people from around the world. Our region is one of the leading educational centers, which in many respects have already achieved recognition in Ukraine and in the world. The higher educational institutions of the region prepare specialists for foreign countries, mainly from Middle East, Africa and Asia. There are also a number of educational institutions realizing the programs on retraining and advanced training for managers and other specialists. We hope that the given publication would not only enhance investment attractiveness of the region and become the effective tools to set business contacts with potential investors, but also would favour making positive decisions on investing in Ternopil region. We invite potential investors to mutually beneficial cooperation in further harmonious development of all the areas of the economy of the region. We would jointly build a powerful economically developed Ternopil region.

Respectfully Respectfully Stepan Barna Vasyl Khominets Head of Ternopil Regional Head of Ternopil State Administration Regional Council

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COMPETITIVE ADVANTAGES OF THE REGION

Advantageous geographical location: Ternopil is a transit centre of Western Ukraine

Favourable natural and climatic conditions for implementation of investment projects in agriculture and renewable energy sector.

Considerable natural resource potential – 0.9 mln. hectares of cropland, about 300 deposits of non-metallic minerals

Unique tourist potential – one third of the castles of Ukraine, unique caves, shrines

High scientific and educational potential – 33 higher educational institutions (HEI) including 3 national ones, and 44.9 thousand students

Human resources potential – about 443 thousand people of economically active employable population

3 CONTENTS

SECTION І. DESCRIPTION OF THE REGION

1. Geographical and climate conditions 2. Demography and human resources 3. Raw materials potential 4. Main indicators of economic and social development 5. Economic potential 6. Transport infrastructure 7. Education 8. Socio-cultural sphere 9. Success stories

SECTION ІІ. INVESTMENT OFFERS

1. Priority spheres for investment 2. Strategic investment projects 3. Land plots and real estate objects

SECTION ІІІ. CONTACT INFORMATION

4

SECTION І. DESCRIPTION OF THE REGION

1. GEOGRAPHICAL AND CLIMATE CONDITIONS

2 REGION AREA – 13.8 thousand km NUMBER OF SUNNY DAYS PER YEAR – 208 AITITUDE – 116–443 m REGIONAL WATER RESOURCES: There are 1401 rivers and 26 reservoir storages with RAIN FALL the total water volume 81.2 mln. m³ in the region. from 520 to 600 mm per year (75% in summer), Most of the rivers (80%) belong to Dniester basin. mild-continental climate The largest rivers are Seret, Zbruch, Strypa, Zolota Lypa, Nichlava, Koropets. AVERAGE TEMPERATURE : January: –5.0 °C, July: +19.0 °C

5 DESCRIPTION OF THE MAIN RIVERS IN THE REGION

Name of the river Length, km Area of water intake, km 2 Dniester 262 11,307 Seret 258 3,900 Zbruch 247 3,330 Strypa 146 1,608 Zolota Lypa 98 1,414 Nichlava 81 885 Koropets 79 529

2. DEMOGRAPHY AND HUMAN RESOURCES

Largest cities thousand Age Structure Ternopil 217.8 60 years 0-15 years Chortkiv 29.7 and elder old 16,8% Kremenets 21.6 20,7% Berezhany 18.3 Zbarazh 14.1 16-59 years Terebovlya 13.7 62,5% Buchach 12.7 Borshciv 11.1

Sex Structure

Women Rural 53,3% Urban Men 55,7% 44,3% 46,7%

TOTAL POPULATION – 1069.9 thousand people

6 Human resources (as of 01.01.2015)

WORKING AGE POPULATION – 443.2 thousand.

RATE OF REGISTERED UNEMPLOYMENT – 2.4% (to working age population).

AVERAGE MONTHLY WAGE – UAH 2527.0 (for 2014 as of 01.01.2015).

STRUCTURE OF EMPLOYEES BY ECONOMIC ACTIVITIES

Employees total – 170.2 thousand people

agriculture, hunting and forestry 31,3%

trade 16,8%

education 11,1%

others 10,9%

industry 9,3%

health care 7,3%

public administration 5,5%

transport 4,6%

construction 3,2%

0,0% 5,0% 10,0% 15,0% 20,0% 25,0% 30,0% 35,0%

3. RAW MATERIALS POTENTIAL

As of 01.01.2015, total area of Ternopil region is 1382.4 thousand hectares, which makes 2.3% of the territory of Ukraine. Out of total area of Ternopil region, 1046.4 thousand hectares or 77% are occupied by farmlands, indicating on a high level of agricultural cultivation of the land.

7 LAND STRUCTURE

agricultural land 77% forests 15%

buildings 5% water 1%

others 2%

4. MAIN INDICATORS OF SOCIAL AND ECONOMIC DEVELOPMENT

Name of indicator Measurement unit 2013 2014 1 2 3 4 Volume of sold industrial output mln 8124.6 9287.7 Volume of livestock production mln 2259.4 2330.7 Volume of crop production mln 5792.0 6763.8 Volume of direct foreign investments $ mln 68.9 55.8 Volume of capital investments mln 2976.2 2590.0 Volume of completed construction works mln 689.8 782.0 Volume of export $ mln 381.8 379.0 Volume of import $ mln 362.3 311.9 Volume of retail turnover mln 5046.8 6098.3 Volume of service sales mln 2368.1 2627.3 Average monthly wage 2,359 2,527

5. ECONOMIC POTENTIAL

PRIORITY SECTORS OF ECONOMY IN THE REGION Over 300 industrial enterprises are located in Ternopil region. The following branches dominate in the sales of industrial products: food production, mechanical

8 engineering, manufacture of rubber and plastic products, other non-metallic mineral products, the share of which in the total sales volume is over 70%.

EXPORT/IMPORT, COUNTRIES, BALANCE

FOREIGN TRADE TURNOVER – $726.8 mln. EXPORT – $414.9 mln. IMPORT – $311.9 mln. FOREIGN TRADE BALANCE +$103.0 mln. Foreign trade in goods was carried out with 83 countries of the world.

Major partners in export of goods

Poland 49,8% Russian Federation 5,0% Spain 4,1% The Netherlands 3,9% Belgium 3,3% Egypt 3,1% Pakistan 2,9% Belarus 2,6% Saudi Arabia 1,9% Italy 1,7% Republic of Korea 1,6% Moldova 1,5% Germany 1,4%

0% 10% 20% 30% 40% 50% 60%

Major partners in import of goods

Poland 56,3% Germany 10,9% Romania 3,3% Belarus 3,2% China 2,7% Switzerland 2,6% The Netherlands 2,6% France 2,1% Italy 2,1% Czech Republic 1,9% Russian Federation 1,5% Hungary 1,4% Belgium 1,4%

0% 10% 20% 30% 40% 50% 60%

9 Foreign trade in services was carried out with 100 countries of the world: export transactions – with 95, and import transactions – with 44 countries.

Structure of goods exported

Electrical machinery and equipment 47,3%

Crops 20,9%

Seeds and oleaginous fruits 9,3%

Furniture 3,3%

Meat and foodstuff by-products 3,1%

Wood and woodwork 3,1% Products of vegetable and fruit 2,8% processing Textile clothes 1,4%

Proteins 1,2%

Hides and skin unprocessed 1,1%

Other goods 6,5%

0% 10% 20% 30% 40% 50%

Structure of goods imported

Electrical machinery and equipment 39,1% 12,4% Boilers, machines, apparatus, 9,9% mechanisms 7,6% Surface transport vehicles 3,2% 2,7% Essence oils, cosmetic products 2,6% 2,3% Paper and paperboard 1,8% 1,4% Textile materials 1,3% 1,2% Pharmaceutical products 1,1% 1,0% Other goods 12,4%

0% 10% 20% 30% 40% 50%

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PRODUCTS MANUFACTURED IN THE REGION

Unit weight of the region in Manufacturing of particular industrial products the economy of Ukraine, % Beef and veal (frozen) 31.2 Ethanol 29.3 Cotton thread 26.7 White crystal sugar 12.9 Composite structural elements for the construction from cement, concrete 8.8 or artificial stone Cognacs, brandy 4.7 Fabrics 4.6 Machine- or hand-knitted stockings and socks knitwear 4.2 Dairy butter 3.6 Beef and veal (fresh-killed or refrigerated) 3.6 Fat cheese 3.4 Fermented milk products 2.9 Flour 2.7 Processed liquid milk 2.5 Natural juices 2.4 Cereals 2.4

LARGE COMPANIES LOCATED IN THE REGION Name Location Actvity Vatra Corporation OSP LLC Ternopil production of electric lamps and lighting equipment manufacturing of lighting products for outdoor and Schreder LLC Ternopil decorative, sports and industrial lighting Sumitomo Electric Baikivtsi, Ternopil production of lighting equipment for engines and BordNetze Ukraine LLC district transport vehicles Ternofarm LLC (Ternopil Ternopil production of pharmaceuticals and materials Pharmaceutical Factory) ORION Ternopil Radio production of special purpose communication Ternopil Factory JSC facilities Terviknoplast LLC Ternopil production of metal-plastic constructions (Viknar’off) Rempobuttekhnika Factory production of different power PSUs for electrical Ternopil LLC equipment manufacturing of furniture for living rooms, NOVA Furniture Factory PE Ternopil children rooms, entrance halls, kitchens Knauf Hips Skala LLC Borshchiv extraction of limestone, gypsum and chalk Khorostkiv Interfoam-Zakhid LLC production of primary plastics Husyatyn district Nastasiv, Ternopil production of grain, milk and meat; Ahroprodservis Corporation district production and sales of elite grain seeds production of grain, milk and meat; Buchachkhlibprom LLC Buchach production and sales of elite grain seeds; breeding and sales of young pedigree pigs

11 Skoryky, Ukraina LLC production of grain, milk and meat Pidvolochysk district Vasylkivtsi, Husyatyn production of grain, and sales of elite grain and Mriya Agro Holding district potato seeds Poultry Factory Ternopilska Velyki Hai, Ternopil production of eggs PJSC district Buchach Cheese LLC Buchach dairy products manufacturing Ternopil Milk Plant PJSC Ternopil dairy products manufacturing (Molokiya)

MAJOR FOREIGN INVESTORS

In 2014 foreign investors contributed $501.7 thousand of direct investment (stock capital) into the economy of the region.

VOLUME OF DIRECT FOREIGN INVESTMENT – $56.4 mln (as of 01.01.2015). Ternopil region received the investments from 38 countries of the world.

Top ten investing countries include:

Germany 29,3%

Cyprus 14,7%

Czech Republic 13,2%

Estonia 10,4%

Poland 6,3%

Denmark 5,6%

Belgium 5,2%

Hungary 3,3%

Austria 2,4%

Russian Federation 1,7%

0% 5% 10% 15% 20% 25% 30% 35%

VOLUMES OF FORELGN INVESTMENTS for the past 3 years: as of 01.01.2013 – $64.6 mln; as of 01.01.2014 – $68.2 mln; as of 01.01.2015 – $56.4 mln.

12 6. TRANSPORT INFRASTRUCTURE

Ternopil region has convenient transportation and geographical location in the centre of Western Ukraine at the crossroads of international routes. Distance from Ternopil to the neighboring regional centers is 110–170 km, to the capital city of Kyiv – 470 km, to the border with Poland, Slovakia, Hungary and Romania – from 220 to 350 km. Berlin-Odesa and the Baltic-Black Sea international rail and road transport corridors pass through the territory of the region. This creates the opportunities for advantageous location of logistics centers, wholesale markets and transport companies.

Transport network of general use, operational length (km):

Items Length, km railways 777.0 roads 5003.6 - paved roads 4979.7 unpaved roads - the share of paved roads - Units number of road bridges 843 number of rail bridges 181

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MAJOR MOTORWAYS The length of motorways in the region is 5 thousand km. 362.3 km of paved roads is accounted for an average of 1 thousand km². The following international highways cross the area of the region: - European: E50, E85; - international: M12, M19; - national: H02, H18; - regional: P05, P24, P25, P26, P32.

RAILWAY CONNECTION In 2014 3.07 million tons of cargo and 5.6 million passengers were transported by railway. There are 43 stations and 22 passenger waiting rooms in the region. Regional railroad network has 777.3 km, out of which railway operational length is 634.3 km and 139 km of tracts are electrified. The density of railway network is 45.9 km per 1 thousand km². Main directions: Kyiv, Lviv, Ivano-Frankivsk, Shepetivka, Chop, Chernivtsi, Odesa, Simferopol, Adler, Moscow. Railway junctions: Ternopil, Chortkiv.

AEROPORTS Ternopil Airport refers to the 4th category, there is an air terminal with traffic capacity of 100 passengers per hour, and checkpoint thought the state border to all countries of the world. An airfield is located in 7.5 km to the south-east from Ternopil. There is a runway 2,000x42 m in length and 2 platforms. The airport can take Boeing B737, Airbus A319, A320.

RIVER AND SEA PORTS There is Zalishchyky river port in Zalishchyky district.

BUS STATIONS There are 2 bus terminals: intercity central bus station for intercity, interregional and international passenger services, and suburban bus station for interregional passenger services in Ternopil.

7. EDUCATION

There are 842 comprehensive schools with 106.3 thousand pupils in Ternopil region. Vocational technical schools amount to 25 units with 9.4 thousand students. Training of specialists with higher education by professional orientation is carried out in 33 higher education institutions (HEI), among which 23 HEI have I-II accreditation levels, and 10 HEI have III-IV accreditation levels.

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Educational institutions Number children studied including, general education schools 842 106,287 - secondary 300 78,988 - secondary base 335 21,564 - primary 200 4,572 - boarding schools 1 217 - children and youth sports schools 18 8,600 - vocational schools 26 10,200 - preschool establishments 570 31,700 - extracurricular educational institutions 47 31,099

HEI are divided into types in the following way:

3 specialized schools 20 colleges 4 universities 5 institutes 1 academy

44.9 thousand students study in HEI of all levels of accreditation.

LEADING HIGHER EDUCATION INSTITUTIONS of III-IV levels of accreditation

Name Faculties Specializations Students Ternopil National Economic University 10 60 8,799 Ternopil Ivan Puluj National Technical University 8 52 5,378 Ternopil Volodymyr Hnatyuk National Pedagogic University 9 50 6,098 I.Ya. Horbachevskyy Ternopil State Medical University 5 7 4,737 Taras Shevchenko Kremenets Regional Humanitarian 5 30 2,870 Pedagogical Academy

LEADING COLLEGES/VOCATIONAL SCHOOLS

Chortkiv Higher Vocational School, State Educational Institution;
Ternopil Restaurant Service and Trade Higher Vocational School, State Vocational Educational Institution;
Ternopil Service and Tourism Higher Vocational School, State Vocational Educational Institution;
Shumsk Vocational School, State Educational Institution;
Kremenets Vocational Lyceum, State Educational Institution;
Ternopil M. Parashchuk Higher Vocational School No. 4;
Ternopil Centre of Vocational Education, State Educational Institution;
Ternopil Technologies and Design Higher Vocational School, State Educational Institution;
Pochaiv Vocational School, State Educational Institution.

15 GRADUATES in 2014/2015 academic year Educational institutions (thousand) HEI total – 17.4 I-II levels of accreditation 3.9 ІІІ-IV levels of accreditation 13.5 Vocational schools 4.3 Secondary schools - III degree 6.5 II degree 10.4

8. SOCIO-CULTURAL SPHERE

HEALTH CARE

Medical institutions Number Medical institutions, total 1,097 (beds in them) 9,700 including: hospital institutions 66 rural medicinal ambulatories AGPFM 226 polyclinics 74 first-aid and obstetric stations. 731

CULTURE

A network of cultural and artistic establishments reserved in Ternopil region include: 916 clubs, 889 libraries, 29 museums (including 8 regional ones), 53 primary specialized artistic educational establishments, T.Shevchenko Regional Academic Ukrainian Drama Theatre, Actor and Puppet Regional Academic Theatre, Regional Philharmonic Society, S. Krushelnytska Ternopil Musical Colledge, Terebovlya Higher Colledge of Culture, Regional Methodical Center of Folk Arts, Regional Inspection for Protection of Monuments of History and Culture, Ternotsvit Regional Leisure Center, Firm Kinodnister Ternopil Regional Enterprise. An artistic palette of the region includes more than 30 International, All-Ukrainian, Regional festivals and events. Besides, creative reports of masters of arts and amateur artistic groups from regions, Ternopil city, regional art and educational institutions in L.Kurbas Berezil Culture Palace in Ternopil, dedicated to national holidays are organized.

16 LIST OF MAJOR CULTURAL ESTABLISHMENTS

Cultural establishments Number Cultural establishments, total 916 including: - culture houses 305 - clubs 611 Film projectors 112 Cinemas 12 Museums 29 Monuments of Architecture and Urban Constructions 1,521 Libraries 889 Schools of Aesthetic Education 53 Number of groups, which were awarded the title “Folk” 281 Number of groups, which were awarded the title “Excellent” 52 Number of employees 4,929

The most significant artistic events in the region are:

- Faine misto International Musical Festival on the territory of Ternopil International Airport; - Kryshtalevyy zhaivir International Festival-Contest of children’s and youth song art in Ternopil; - DzhuraFest All-Ukrainian Book Festival of Ukrainian book; - Dialoh dvokh kultur (Dialogue of two Cultures) Ukrainian-Polish Cultural and Artistic Meetings in Kremenets; - Dzvony Lemkivshchyny All-Ukrainian Festival of Lemko Culture in Monastyryska; - Baida All-Ukrainian Festival-Contest of Cossack song in Ternopil; - Ternopilski teatralni vechory. Debut (Ternopil Theatre Evenings. Debut) All- Ukrainian Festival in T.Shevchenko Regional Academic Ukrainian Drama Theatre; - Zbruch – rika yednannya (Zbruch – river of unity) Interregional Theatrical Holiday in Pidvolochysk dedicated to the Day of Unification and Freedom of Ukraine; - V Borshchivskomy krayi tsvitut vushuvanky (Embroideries blossom in Borshchiv region) Regional Folk and Arts Holliday in Borshchiv; - Bratyna Art and Local History Festival in Stizhok, Shumsk region.

MUSEUMS

There are 29 state museums in Ternopil region, including 8 ones of regional submission. The largest museums are: • Ternopil Regional Municipal Local History Museum; • Depertment of Ternopil Regional Municipal Local History Museum – Historical and Memorial Museum of Political Prisoners;

17 • Ternopil Regional Art Museum; • Borshchiv Regional Local History Museum; • Volodymyr Hnatyuk Regional Ethnographic and Memorial Museum (Velesniv, Monastyryska district); • Les Kurbas Regional Memorial Estate-Museum (Staryy Skalat, Pidvolochysk district); • Yuliush Slovatskyy Regional Literary Memorial Museum (Kremenets); • Bohdan Lepkyy Regional Museum (Berezhany); • Lemko Village Museum Complex in Bychova tract (Monastyryska).

TOURISM

The region ranks second in Ukraine by the number of old castles and fortifications. About 15% of the total area of the region is of recreational value. The main natural sites of excursion tourism are Tovtry Ridge, Kremenets Mountains, Dniester Canyon, karst caves. There are more than hundred speleological sites in Ternopil region. Kryshtaleva cave also called an underground pearl of Podillya is adapted for mass tourism. The length of its electrified tourist route is 2,800 meters. In Verteba cave there is the only underground museum of Trypillya culture in Ukraine. For extreme tourists there are Mlynky and Optymistychna caves; the latter is the largest in size cave in Europe, among the world’s largest gypsum caves and the second among the limestone ones; its total length is 214 km. A worth to see temptation of the region also includes Dniester Canyon – one of the longest canyons in Europe, and Dzhuryn waterfall – the highest waterfall on the flat territory of Ukraine. Every year millions of pilgrims of various confessions from around the world visit the sacred shrines of Ternopil region – Pochaiv and Zarvanytsya.

NATURAL RESERVES

Network of natural reserve fund of Ternopil region consists of 543 areas and objects with a total area of 116.5 hectares (8.4% of the region’s territory). These include Medobory State Nature Reserve, Zahrebellya and Zarvanytsya regional landscape parks, 89 nature preserves, 308 monuments of nature, 4 reserved tracts, 3 botanical gardens, 9 arboretums, 1 zoological and botanical garden and 18 parks memorials of landscape design, more than 4,000 memorials of history, archaeology and architecture.

18 HEALTH AND RECREATION COMPLEXES, SANATORIUMS

Name Location Nad Strypoyu Recreational Center Skomorokhy, Buchach district Lisovyy Recreational Complex, affiliated company Skomorokhy, Buchach district Mishyn-City Tourist Recreational Complex 202 N.Vidrodzhennya Str., Dobrivlyany, Zalishchyky district Alihator Entertainment Recreational Complex 29 Haiyova Str., Ternopil Panorama Hotel Recreational Complex 62 Liotchykiv Vyzvolyteliv Str., Kremenets Babyna stodola Recreational Center Rudka, Kremenets district Krainya khata Motel Torske, Zalishchyky district Barvinok Sanatorium LLC 2 Manyuky hamlet, Mshanets, Zboriv district Medobory Sanatorium CJSC Konopkivka, Terebovlya district

HOTELS

Назва закладу Місце розташування Mandry Hotel 112 Ternopilska Str., Buchach Hostynnyy dvir Hotel 1 Kondra Str., Borshchiv Symfoniya Hotel Entertainment Complex 4-A Sanatorna Str., Husyatyn Hostynnyy dvir – Pechorna Hotel Pechorna, Zalishchyky district Edem Hotel 15 Lyaturynska Str., Kremenets Ostriv Hotel 145-A Dubenska Str., Kremenets Reikartz Hotel 4 Losyatynska Str., Pochaiv Lidiya Hotel Complex 70 Shevchenko Str., Monastyryska GranD Motel Druzhba, Terebovlya district Halychyna Hotel 3* 1 Chumatska Str., Ternopil Ternopil Hotel 3* 14 Zamkova Str., Ternopil Zlahoda Hotel Complex 3* 1 Zlahody Str., Smykivtsi, Ternopil district Kamelot Hotel Restaurant Complex 6 Obyizna Str., Ternopil Hlobus Hotel Complex 3* 18 Obyizna Str., Ternopil Versal Hotel Complex 34 Lvivska Str., Ternopil Yukhnovych Hotel Complex 3-A Rodyny Barvinskykh Str., Ternopil Garden Hall Hotel Restaurant Complex 30 Sheptytskyy Str., Ternopil Alihator Entertainment Recreational Complex 29 Haiyova Str., Ternopil

19 9. SUCCESS STORIES

Prolect’s Name and nature of the project Initiator Description initiator In 2007 Sumitomo Electric Bordnetze Sumitomo Electric Bordnetze GmbH is a GmbH (Germany) founded an enterprise member of Sumitomo Electric Industries Sumitomo producing cable and wire products for Group, comprising 331 affiliated Electric Volkswagen Concern vehicles – companies and subsidiaries in 33 Bordnetze Sumitomo Electric Bordnetze-Ukraine countries, mostly in Asia, South America GmbH LLC. Currently this is one of the largest and Europe. Total number of employees (Germany) employers in Ternopil region (about 3 in enterprises of the Group is more than thousand employees). 180 thousand people.

In 2006 Skala LLC – a Knauf affiliated Knauf Group comprising over 150 company was founded (currently Knauf enterprises and production cites all over Hips Skala LLC); it has got a license to the world is a leading producer of Knauf Group extract gypsum rock in Ternopil region. construction materials in Europe. Total (Germany) About $10 mln. of investment was spent number of employees at the Group on the creation of modern mining enterprises is about 23 thousand people in complex. 40 countries of the world.

In 1991 Billerbeck-Ukraine joint Ukrainian-Austrian company was founded German company Billerbeck is a leading on the basis of Chortkiv feather and down Gerd Billerbeck producer of blankets, pillows and other factory. In 2001 an Austrian investor, Gerd GmbH Wien bedding products in many European Billerbeck GmbH Wien company, bought (Austria) countries. out the state’s share and became a 100% owner of the enterprise. Founded in 2003, Segesh-Ukraine LLC is Segers-Eesti Segers-Eesti is a European manufacturer a factory with the newest sewing (Estonia) of workwear for healthcare, hotel and equipment. The staff numbers about 200 restaurant business. workers. In 1990 Vatra Schréder joint Ukrainian- Schréder Group Schreder Group is a group of 48 Belgian company (currently Schréder (Belgium) companies all over the world, which LLC) was founded. Main products - Vatra Scientific numbers 2,600 specialists in designing outdoor lighting, including those for sports and Production and development of outdoor lighting facilities, architectural illumination of Association solutions. buildings, specially designed decorative (Ukraine) lighting. It holds a 40% share on the Ukrainian market of outdoor lighting.

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SECTION ІІ. INVESTMENT OFFERS

1. PRIORITY SPHERES FOR INVESTMENT

• Agroindustrial complex • Tourism and recreation • Transport and logistics • High-tech industrial complex • Development of mineral resources in the region • Energy production from renewable sources

2. STRATEGIC INVESTMENT PROJECTS

Project’s Project’s Project’s name Initiator payback Anticipated results cost peroid Construction of tourist Borshchiv District 39 mln 3.9 years Construction of hotel complex, and entertainment State restaurant, aquapark, sports ground, complex and aquapark Administration car parking and provision of annually in Kryvche, Borshciv tourist services in the amount of district 33.8 mln. Construction of Borshchiv District 20 mln 3.4 years Construction of tourist complex for 30 speleological tourist State persons, provision of annually tourist complex in Korolivka, Administration services in the amount of 23.4 mln. Borshchiv district Construction of the Borshchiv District 510.4 3.5 years Extraction of water out of three workshop for bottling State mln deposit artesian wells with the total drinking water Administration amount of 4,000 m 3 per day, which are currently preserved. The depth of wells is 110-120 m. Аstron CJSC Buchach District $200 5 years Construction of sewing workshop, State thousand household building and starting release Administration of new types of sewing products. Ozon LKZ Market LLC Ozon LKZ LLC $80 1 year Putting into operation of a new market thousand for trade of industrial goods. Berizka PJSC, Zolotyy Buchach District $2.1 mln 5 years Construction of sewing workshop, Potik, Buchach District State household building and starting release Administration of new types of sewing products. Completion of Zbruch $6.5 mln 5 years Located in a forest and park zone. construction and putting Sanatorium SE Developed medical and diagnostic into operation of the base and infrastructure. dormitory building of Completeness – 65%. Zbruch Sanatorium in Husyatyn township Husyatyn Kurortopolis Husyatyn District $9.4 mln 3 years Development of Hysyatyn Kurortopolis State through the implementation of Administration innovative model for use of competitive advantages of balneological resort. Relaunch of Medobory Husyatyn District $2,5 mln 5 years Located in a forest and park zone. Sanatorium in Husyatyn State Availablity of therapeutic and township Administration diagnostic, cultural and mass and administrative premises.

21 Dzhuryn Hydropower Nyrkiv Village €850 5 years Restoration of Dzhuryn Hydropower Plant Council thousand Plant with the capacity of 500 kWh. Creation of reservoir for travelers’ recreation. Construction and Zbarazh District 21.4 5 years Development of tourism in the region, putting into operation of State mln creation of new working places. Dovbush mount tourist Administration and entertainment complex Reconstruction of Kozliv brick 20 mln 3 years Production of bricks, competitiveness Kozliv brick factory factory JSC in the market, decrease of product JSC costs by reducing the use of gas. Reconstruction of the Ternopil Regional 150 mln 3 years Conducting of All-Ukrainian and toboggan run and State international competitions in winter construction of Administration, sports. Creation of a Center of Ukraine infrastructure facilities Ternopil Regional national teams in winter sports on the in Kremenets Council, Kolos basis of the school. Kremenets children and youth sports school Construction, putting Monastyryska $1,3 mln 4 years Lemko village stylized complex of into operation and District State wooden constructions; annual organization of services Administration conducting of Lemko culture provision by international festival; possibility to Lemkivshchyna tourist create tourist routes (horseback, and ethnographical walking, hiking, biking, water complex excursions); lack of competitors in the selected market segment; implementation under conditions of demand growth. Completion of Monastyryska $5.075 1 year Providing of annual volumes of brick construction and putting District State mln production by 25 mln per year, into operation of Administration creation of 100 new working places; Honcharivka brick possibility to become a monopolist on factory the local market of ceramic bricks; implementation of progressive energy- saving technology. Construction and Pidhaitsi District $5.075 1 year Increase of annual volumes of sales, putting into operation of State mln creation of new working places. brick factory with the Administration, capacity of 20 mln. Siltse Village pieces of conditional Council brick per year Construction, putting Pidhaitsi District $1.255 5 years Development of tourism in the region, into operation and State mln creation of new working places. organization of services Administration provision by Zavaliv tourist and recreational complex (on the basis of common lands of Zavaliv village council) Construction of Ternopil Regional 250 mln 5 years Providing with wholesale and retail wholesale agricultural Council, trade of agricultural production by market Ternopil Regional manufacturers of Ternopil region. State Administration

22 Construction and Dzvin PJSC, 30.0 3.4 years Project capacity of cows breeding – reconstruction of diary Zvynyach, mln 1000 heads of the herd. complex in Dzvin PJSC, Chortkiv district Zvynyach Renovation of industrial Shumsk District 20.0 3 years Implementation of a set of measures capacities on Shumsk State mln for development of peat industry in the peat plant affiliated Administration region, rationale use of local energy company of Podillyatorf resources, meeting customer needs and SE needs of social sphere institutions with a local fuel – peat, budget cost saving and creation of new working places. Creation of Antonivtsi- Department of 8.2 mln 2 years Powerful natural and recreational okruha spiritual and Culture, Religions resource: 3 reserve tracts, 7 cultural museum and Nationalities monuments of nature; 87.5% of the complex and of TRSA, Shumsk territory of Stizhok village council and development of District State 67.0% of the territory of Ilovytsya cognitive tourism Administration village council are covered with forest; infrastructure on the availability of rare flora and fauna territory of Ilovytsya species, and rich historical and cultural and Stizhok village heritage. councils in Shumsk district Creation of logistics Ternopil Regional €180 mln 7 years Creation of a high-tech transport hub, cluster on the basis of State attracting investments in the economy Ternopil Aeroport Administration, of the region. Ternopil Regional Council, Ternopil City Council Creation of Ternopil Regional $31.5 mln 5 years Creation of logistics center. Providing Ternopilskyy wholesale State the population with quality products and retail market of Administration, and promoting agricultural enterprises’ agricultural products Ternopil Regional products on foreign markets. Council, Ternopil City Council Reconstruction of Ternopil Regional 49.8 3 years Creation of material base for training hydraulic facilities on State mln and competitions in kayaking and the rowing channel with Administration, canoeing, recreation and rehabilitation the construction of the Ternopil City of the general public with the means of Center for rowing sports Council water sports. and infrastructure

23 3. LAND PLOTS AND REAL ESTATE OBJECTS

Greenfields Area Location Brief description 6.0 ha Sukhodil, Hysyatyn district Land plot for business use, the territory of Sukhodil Greenhouse LLC. Distance to the railway station – 5 km, to the motorway – 2 km, to Ternopil city – 80 km. 10.0 ha Ivane-Zolote, Zalishchyky Possible purpose is to build a spa recreational complex. Distance district to the railway station – 5 km, to the motorway – 7 km, to Ternopil city – 120 km. 12.7 ha Lisky, Zbarazh district Land plot for industrial use. Distance to the railway station – 2.5 km, to the motorway – 0.5 km, to Ternopil city – 21 km. 10.0 ha Kudobyntsi, Zboriv district Land plot for commercial use. Distance to the railway station – 3 km, to Lviv-Ternopil motorway – 5 km, to Ternopil city – 40 km. 12.0 ha Olesyne, Kozova district Land plot for commercial use. Availability of engineering networks: distance to water supply system – 20 m, to gas supply system – 100 m, electricity supply system – 20 m. Distance to the railway station – 8 km, to Berezhany-Ternopil motorway – 7 km, to Ternopil city – 42 km. 15.0 ha Kryve, Kozova district Land plot for commercial use. Distance to the railway station – 1 km, to Berezhany-Ternopil motorway – 5 km, to Ternopil city – 41 km. Availability of gas supply system, distance to water supply system – 50 m, electricity supply system – 110 m. 6.0 hа Kalne, Kozova district Land plot for commercial use. Distance to the railway station – 10 km, to Berezhany-Ternopil motorway – 8 km, to Ternopil city – 48 km. Availability of water supply system, distance to medium pressure gas supply system – 100 m, electricity supply system – 10 m. 35.0 hа Denysiv, Kozova district Land plot for agricultural production, gardening, recreation area. Distance to the railway station – 4 km, to the motorway – 6 km, to Ternopil city – 25 km. 20.0 hа Dybshche, Kozova district Land plot for a brick factory construction. Distance to the railway station – 7 km, to the motorway – 2 km, to Ternopil city – 40 km. 10.0 hа Monastyryska Land plot for commercial use. Distance to the railway station – 17 km (in Buchach), to Ivano-Frankivsk-Ternopil motorway – 0.5 km, to Ternopil city – 90 km. 9.0 hа Ulashkivtsi, Chortkiv Land plot for commercial use. Distance to the railway station – district 7 km, to Chortkiv-Ternopil motorway – 9 km, to Ternopil city – 95 km. 11.93 Pastushe, Chortkiv district Land plot of the former airport for commercial activity. Distance hа to the motorway – 3 km, to Ternopil city – 76 km. 13.1 hа V.Dederkalu, Shumsk Land plot for commercial use. There is a paved area of the district former airport on the territory. Distance to the railway station – 30 km, to Shumsk-Ternopil motorway – 10 km, to Ternopil city – 90 km.

24 Brownfields Area Location Brief description 4.8 hа Buchach Production facilities of Smoloskyp enterprise. Total area of the 2 premises is 9,700 m . Availability of engineering networks: electric, gas and water supply systems, and sewerage. Distance to the motorway – 0.3 km, to the railway station – 2 km, to Ternopil city – 70 km. 2 1.0 hа Buchach Mizhraibaza warehouse with the total area of 4,430 m . Availability of electric and water supply systems, and sewerage. Distance to the motorway – 0.3 km, to the railway station – 0.5 km, to Ternopil city – 70 km. 1.2 hа Ishkiv, Kozova district Located on the territory of premises of livestock and breeding 2 complex with the total area of 4,000 m . Availability of electric, gas and water supply systems. There is a motorway nearby. Distance to the railway station – 9 km, to Ternopil city – 32 km. 2.5 hа Konyukhy, Kozova district There is a construction in progress of sports and entertainment 2 complex with the total area of premises of 14,000 m on the territory. Distance to the motorway – 0.1 km, to the railway station – 18 km, to Ternopil city – 60 km. 18.7 hа Krynytsya, Monastyryska There are production facilities of Krynytsya Ahropromtehnika district JSC on the territory. The facility is designed for the repair and servicing of agricultural machines and mechanisms. The total 2 area of the premises is 4,200 m . All engineering networks are available. There is a motorway nearby. Distance to the railway station – 22 km, to Ternopil city – 95 km. 2.92 hа Pidvolochysk Production facilities of a plastic products factory. The total area 2 of the premises is 6,600 m . Available engineering networks: water, gas and electric supply systems, and sewerage. Distance to the railway station – 0.5 km, to Ternopil city – 42 km. 8.1 hа Pidhaitsi Production facilities of Pidhaitsi Ahropromtehnika JSC. Purpose of the facility – repair of units and assemblies of agricultural 2 machinery. The total area of the premises is 5,684 m . All engineering networks are available. Distance to the railway station – 21 km, to Ternopil city – 65 km. 2.0 hа Pidhaitsi Production facilities of Pidhaitsi Agrarian College. Available engineering networks: water, gas and electric supply systems, 2 and sewerage. The total area of the premises is 2,500 m . Distance to the motorway – 0.1 km, to the railway station – 21 km, to Ternopil city – 65 km. 0.75 hа Ternopil Production facilities of ORION Ternopil Radio Factory PJSC. 2 The total area of the premises is 15,121 m . All engineering networks are available. Distance to the motorway – 0.1 km, to the railway station – 5 km. 3.2 hа Ternopil Production facilities of Vatra-Ukr LLC. The total area of the 2 premises is 15,262 m . All engineering networks are available. Distance to the motorway – 0.45 km, to the railway station – 5 km.

25 TERNOPIL REGION IS AMONG THE LEADERS IN EUROPE

In 2013 Ternopil region has worthily presented its investment attractiveness in the international ranking “European cities and regions of the future 2014/2015”, which was organized by the fDi Magazine British magazine (a special division of The Financial Times corporation).

According to the announced rating, Ternopil region was among top ten in “TOP 10 Small regions – best for cost effectiveness”. On March 12, 2014 in Cannes (France) the winners and prize holders, which became ranking laureates, were awardered rewards and memorable honours. This event became a good opportunity for the participants to exchange ideas and experiences of investment activity.

The above-mentioned ranking confirms the ability of Ternopil region to be a good environment for the implementation of the strategy for attracting foreign direct investment.

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SECTION ІІІ. CONTACT INFORMATION

TERNOPIL REGIONAL STATE ADMINISTRATION 8 Hrushevskoho Str., Ternopil, 46021, Ukraine Phone: (+380 352) 43-23-73, phone/fax: (+380 352) 52-31-92 E-mail: [email protected], website: http://www.oda.te.gov.ua

TERNOPIL REGIONAL COUNCIL 8 Hrushevskoho Str., Ternopil, 46021, Ukraine Phone: (+380 352) 52-21-05, phone/fax: (+380 352) 43-11-16 E-mail: [email protected], website: http://www.obl-rada.te.ua

DEPARTMENT FOR ECONOMIC DEVELOPMENT, INVESTMENT ACTIVITY AND INTERNATIONAL CO-OPERATION 8 Hrushevskoho Str., Ternopil, 46021, Ukraine Phone/fax: (+380 352) 52-33-83 E-mail: [email protected], Web-сайт: https://www.facebook.com/departamentekonomschnogorozvutky

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