INVESTMENT PROJECTS OF MYKOLAYIV REGION ENTERPRISES (UKRAINE)

GENERAL PROJECT DESCRIPTION Project Name The Universal Cargo Terminal on the berth № 8 of the Mykolayiv Sea Port Date The Working Draft was developed in 2005 and corrected in 2012. New correction of the Working Draft will be done in 2016 to adjust it to current technical regulations and market conditions. Project Type Creation of new production Investment Mode Public-private partnership: the Mykolayiv Branch of SE «Ukrainian Sea Ports Authority» (Mykolayiv Sea Port Authority) carries out construction of hydrotechnical parts (cargo berth and the adjacent operating water area), investor - the rear part of the future Cargo Terminal. Industry Transport and logistics, port infrastructure.

Location 23 Zavodskaya str, Mykolaiv, Ukraine

Project Advantages – advantageous geographical location in terms of transport logistics of foreign trade; – availability of all required types of engineering networks, rail and road connections, proximity to inland waterways of Ukraine: the Dnieper and the Pivdenniy Bug rivers; – the possibility of Panamax-type vessels service (with additional loading/unloading on the roads); – high profitability of stevedoring services in Ukraine. Project validity period The duration of the Cargo Terminal construction – 31 months. Project properties According to the existing Working Draft the Cargo Terminal has the following characteristics: – the length of the berth number 8 - 190 m; – the length of the auxiliary quay - 71,5 m; – depth at the berth - 10,5 m; – equipment - gantry cranes / p 40t - 3 units; – annual turnover of the complex - 1,0 mln. tons. Building of the Cargo Terminal involves the construction of electricity transformer substations, sewage treatment facilities, storage space. The area of open storage sites will be 9900 m2, including: front - 6800 m2; rear - 3100 m2. ESTIMATED INVESTMENTS Total Amount of project capitals According to the existing Working Draft (developed in 2012) the total project cost is UAH 169,4 million or USD 21,2 million, including: – the part of the Mykolaiv Sea Port Authority (construction of the berth number 8 and operational water area) – UAH 99,2 million or USD 12,4 million; – the part of investor - 70,166 million UAH or 8.8 million. USD. (According to the National Bank of Ukraine, the average rate in 2012 was 1 USD = 7,99 UAH). The final cost of construction will be determined in 2016 after 2 the adjustment of the Working Draft. Amount of investments to be UAH 70,166 million or USD 8,8 million (in prices for 2012). attracted Expected annual sales revenue According to the Working Draft (developed in 2012), revenues from the operation of stevedoring complex (cargo handling and storage operations) will be: 1st year - 0; 2nd year – UAH 62,2 million or USD 7,8 million; 3rd year and every consecutive year - UAH 74,9 million or USD 9,4 million. (According to the National Bank of Ukraine, the average rate in 2012 was 1 USD = 7,99 UAH) Key figures of project economic According to the Working Draft (developed in 2012): effectiveness The discount rate 9% Payback period (including the construction period) - PB, months 85 Discounted payback period - DPB, month 120 Average Rate of Return - ARR,% 15,0 Net present value -NPV, thousand USD 160 Profitability index - PI,% 1,01 Internal rate of return - IRR,% 9,15 Modified internal rate of return - MIRR,% 8,13 Expected employment figures According to the Working Draft (developed in 2012): the total number of full-time staff units - 149 units. including: – administrative - 25 units .; – production - 124 units. ADDITIONAL PROJECT DATA Environment protection According to EIA, prepared in the Working Draft. The impact on the environment of the project is minimal. Project Risks - instability of economic legislation and the current economic situation in Ukraine; – international economic risks (the possibility of introducing restrictions on trade and supply, closure of borders, etc.); – uncertainty of the political situation, the risk of adverse social and political changes in the country or region; – fluctuations in market conditions, prices, exchange rates, etc. – industrial and technological risk (accidents and equipment failure, lack of production, etc.). Property form Initiator of the project - The Mykolayiv branch of SE "Ukrainian Sea Ports Authority" (Mykolayiv Sea Port Authority) - state ownership. COMPANY/ORGANIZATION CONTACTS The Mykolayiv branch of SE "Ukrainian Sea Ports Authority" (Mykolayiv Sea Port Authority) 54020, 23 Zavodska str, Mykolayiv, Ukraine, tel. + 380-512-24-10-00; + 380-512-50-84-00 fax. +380 (512) 50-88-07; 50-78-34 [email protected] 3

GENERAL PROJECT DESCRIPTION Project Name Production of catamarans and hovercrafts

Date At the earliest possible time

Project Type New product development Investment Mode Foreign direct investments

Industry Shipbuilding

Location Ukraine, Mykolayiv

Project Advantages Demand for the product on the Ukrainian market; Non- availability of analogues and as a result competitions on the Ukrainian market; Convenient geographical location for the production

Project validity period 1 year

Project properties During the year it is planned to produce one catamaran with a seating capacity of 50 passengers and about 10 hovercrafts ESTIMATED INVESTMENTS Total Amount of project capitals 500 000 $

Amount of investments to be 300 000 $ attracted

Expected annual sales revenue 700 000$

Expected employment figures Administrative personnel – 4 Senior engineers – 2 Engineers – 5 Additional personnel – 5. ADDITIONAL PROJECT DATA Environment protection Widespread compliance with ecological standards is ensured, fireworthiness requirements are kept up. Project Risks High cost of the project product; volatile economic environment in the region; small target market Property form Private ownership

COMPANY/ORGANIZATION CONTACTS LLC “Artil” LTD; 54017 Ukraine, Mykolayiv, 20 Chkalova Str., tel. +38 (0512) 50-05-35

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Project Name Renovation of productive capacities of municipal enterprise “Mykolayiv International Airport” Project goals: Finding a way out of the crisis of municipal enterprise “Mykolaiv International Airport” and further development by the major business profile. Short summary of the Municipal enterprise “Mykolaiv International Airport” is one of the project: largest airports in the south of Ukraine. Mykolaiv is a sea and river port, “Mykolaiv International Airport” is situated at the intersection of 7 airways. Thus, the airport has a possibility to cope with all kinds of traffic flows and to become a leading transportation hub. Presence of direct connection with the capital is an important element for business development in any region, therefore the renovation of the airline Mykolaiv-Kyiv is one of the foreground tasks. Expected results: Guarantee of stable functioning of the municipal enterprise “Mykolaiv International Airport” and the further development of the transportation hub, increase of investment opportunity of the region. Airdrome certificate of municipal enterprise “Mykolaiv International Airport”; involvement of municipal enterprise “Mykolaiv International Airport” into the effective functioning in the airport system of Ukraine; Formation of the cargo transport center based on the municipal enterprise “Mykolaiv International Airport” according to the prosperous geographical position. Estimate cost of the 2015 2016 2017 Total project, ths., UAH: 1000,0 4000,0 45000,0 50000,0

Financing sources: Regional budget, within the available financing source, own funds of the enterprise, funds of private investors. Potential key Verkhovna Rada of Ukraine, The Cabinet of Ministers of Ukraine, The participants of the Ministry of Infrastructure of Ukraine, The State Aviation Administration project of Ukraine. implementation: Company/organization Municipal Enterprise “Mykolayiv International Airport” contacts 80 a/s, Mykolayiv, 54017 Tel.: (0512) 47-74-17 E-mail: [email protected]

Infrastructure management of Mykolayiv State Region Administration 20, Admiralska Str. Mykolayiv, 54001 Tel.: (0512) 37-35-44, 37-02-74 E-mail: [email protected]

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GENERAL PROJECT DESCRIPTION Project Name Implementation of drip irrigation Industry Agriculture Location Bashtanka, Mykolayiv region, Ukraine Investment Mode Foreign direct investments Project validity period 4 years

Main activities of the enterprise Fruit and agricultural products (Goods and services) The enterprise main production 300,0 turnover (thousands of U.S. dollars) Description of investment project: Implementation of a modern drip irrigation technology in order to increase fertility and provide a district and region with fruits. Investment project completion level Availability of a facilities, production and personnel potential ESTIMATED INVESTMENTS

Total Amount of project capitals 1 600,0

Amount of investments to be attracted 1 500,0 (100,0 own funds)

ADDITIONAL PROJECT DATA Property form Private ownership

COMPANY/ORGANIZATION CONTACTS

Company/organization contacts “Zarya Ingula” DLC 86, Yuvileina Str., Bashatanka, Mykolayiv region; +38 (05158) 2-83-17