Investment Certificate

INVESTMENT CERTIFICATE OF KREMENETS DISTRICT TERNOPIL REGION

2016 WELCOME ADDRESS

Investment passport of Kremenets district has been compiled by Kremenets District State Administration. It contains high-quality, relevant and comprehensive information about competitive advantages, investment opportunities of the area, as well as aims at disclosing and implementing its investment potential. We hope that the publication will be not only a source of information for business, but also will increase the investment attractiveness of the area, will be an effective tool for establishing business contacts with potential investors, facilitate the adoption of decisions on investment on the territory of Kremenets district. We invite potential investors to cooperate in order to have harmonious development of the regional economy in all directions. Together we will build a strong, economically developed Kremenechchyna.

Kremenets District State Administration COMPETITIVE ADVANTAGES OF THE AREA

Favourable natural conditions – for realizing projects in agriculture; Tourist potential – sacred places, availability of landscape, historical and cultural recreational resources; Job resource potential – about 39.3 thousand of economically active population of working age; The possibility of winter sports – the only in Ukraine toboggan track operating year-round, availability of ski jump complex, landscape for skiing; A significant natural resource potential – 50.5 thousand hectares of arable land, 16.7 thousand hectares of forests. CONTENT

CHAPTER 1. DESCRIPTION OF THE AREA

1.1. The natural-geographic and climatic conditions 1.2. Demography and human resources 13. Raw material and resource potential 1.4. Main indicators of economic and social development 1.5. Economic potential 1.6. Transport infrastructure 1.7. Education 1.8. Social and cultural sphere 1.9. History of Success

CHAPTER 2. OFFERS FOR INVESTORS

2.1. Priority areas for investment 2.2. Strategic investment projects 2.3. Available land plots and real estate

CHAPTER 3. CONTACT INFORMATION CHAPTER I. DESCRIPTION OF THE AREA

1.1. NATURAL - GEOGRAPHIC AND CLIMATIC CONDITIONS

The territory of the region is located in the Western steppe zone Volyn- Polissya Plateau. In the South and South-East it borders Zbarazh and Lanivtsy, in the East – Shumsk districts of Ternopil region, in the West – Brody district of Lviv region in the North – Dubno and Radyvyliv districts of Rivne region. The relief of Kremenets district is divided into Northern (Small Polissya) and Southern (Cold Polissya) parts that lie within Volyn-Podilsk Upland. Small Polissya or Kremenets logs takes 15% of the area and characterized by flat and monotonous relief. Cold Polissya covers 85% of the area. The relief here is complex. Under the influence of atmospheric precipitation, rainfalls in particular, and melting water erosion processes as flat as deep occur. The area is located on the border of two climatic zones: Western-European with wet and moderately warm climate, and East-Continental with continental climate.

1.2. DEMOGRAPHY AND HUMAN RESOURCES

The population, estimated on January 1, 2016, is 68768 people, including those of working age – 39190.

SEX STRUCTURE AGE STRUCTURE

Pensioners 21,4% Females Children 52,1% 21,5%

Males 47,9% Able to work 57,1%

The level of unemployment, estimated on January 1, 2016, was 5.8%, workers’ average monthly salary in the district is 2,588 UAH. Structure of the workers by the types of economic activity Field Quantity of individuals Agriculture, forestry and fisheries 408 Industry 970 Construction 210 Transport and communication 236 Trade 190 Public administration and defense 776 Education 1586 Health care 1777 Housing and public utilities 132 Financial activity 97 Hotel service 90

1.3. RAW AND RESOURCES POTENTIAL

Forests and other wood covered areas take an area of over 16.7 thousand ha. They are mainly hornbeam, ash, elm, linden, oak, aspen, willow, beech, pine. Inland water area is 861.1 ha, including 128.3 ha of natural watercourses, 111.5 ha of man-made watercourses. Water resources of the area are sufficient for functioning and development of industry, agriculture, housing and public utilities, industrial fish farming, tourism and recreational needs. Major rivers are The Ikva and The Goryn’. The district is charged 45.42 ha of land for open-cast mining developments, including 26.92 ha under operating hectares, 18.5 ha – worked out development. Mineral resources mining – lime, peat, chalk, sand, clay, stone building. Exploration for determining the reserves and forecasting the production volumes of all the deposits has not been conducted. The agricultural area of the region is 65.563 ha, including arable land – 50561.4 ha, perennials – 1617.3 ha, hayfields – 1179.5 ha, pastures – 12.205.6 ha.

1.4. MAIN INDICATORS OF ECONOMIC AND SOCIAL DEVELOPMENT OF THE AREA

Main indicators of social and economic development of the area Indicator measuring 2014 2015 unit 1 2 3 4 Volume of industrial products mln. UAH 209.8 220.7 Volume of livestock production thous.tons 46.4 45.73 Volume of plant-growing production thous. tons 283.4 303.6 Volume of direct foreign investments mln. USD 0,26 0,2

Volume of capital investments mln.UAH 71,1 52,0

Volume of construction works mln.UAH 21,9 12,5

Volume of export mln. USD 2,2 4,5

Volume of import mln. USD 1,85 0,7

Volume of retail turnover mln.UAH 205,2 235,0

Volume of realized services mln.UAH 22,9 10,4

Volume of average salary UAH 2337 2440

Amount of assigned administrative services unit 159 1459 assigned by the centre of services

1.5. ECONOMIC POTENTIAL

Priority sectors: - agricultural complex; - tourism and recreation; - timber-processing industry; - alternative fuel production;

The biggest industrial enterprises of the district: - Ltd. “Kremenets Milk” – milk production; - PB “Bakery “Advans” – bakery and confectionery products; - Ltd. “ Vatin Factory” – making clothes, mattresses, blankets; - Ltd. “Ukrkreida” – ground chalk production; - Ltd. “Plastic - M” – polisterol sheet, foil.

Foreign trade turnover in 2015 was 6.1 USD. In the structure of export the largest specific gravity is due to timber-processing industry. The biggest investors: “Danon” company supported by “Danon Ecosystem Fund”, MBO “Community Welfare” and “Heifer International” (France, USA). Enterprises with foreign investments: - Ltd. “United Fashion of Ukraine” (Denmark); - PII “Amic Ukraine” (Austria); - CI Ltd. “Mega-Bud” (Poland); - Ltd. “Top - Bet” (Poland); - Ltd. “Super Roof - MC” (Poland); - Ltd. “Protsima Ukraine” (Poland); - DP “Agrocenter Eurokhim - Ukraine” (Russia).

1.6. TRANSPORT INFRASTRUCTURE

Transport network of general us includes (km): - Railways – 10.2; - Paved roads – 166.3; - Earth roads – 26.

1.7. EDUCATION

To meet the educational needs of the population there operate 54 secondary schools, in which 7583 students are provided with education. Today there operate 21 institutions where 1540 children get pre-school education, including 17 preschools, 4 educational complexes and 4 preschool groups in secondary schools. In the area there are 2 vocational technical schools, 4 institutions are engaged in training specialists with higher education.

Education institutions Number of Number of students departments, specialities Kremenets Regional Humanitarian-Pedagogical Academy Named after Taras Shevchenko 2844 4 Kremenets Pedagogical College 642 5 Medical School Named after A. Rychynsky 507 3 Kremenets Forestry College (v. Bilokrynytsya) 598 5 Kremenets Vocational-Technical Lyceum 570 10 Pochaiv higher vocational school 508 10

1.8. SOCIAL AND CULTURAL SPHERE

Four health facilities operate in the area (2 district hospitals, district dental clinic and primary health care center ), 5 medical institutions of regional subordination (4 of them subordinate to the Ministry of Health and one under the Ministry of Social Policy) also there are 17 private institutions. Medical care in rural clinics is provided by 12 general practice family medicine ambulatories and 46 village health centers. There are 113 cultural institutions providing public service in the area, including 11 cultural centers, 39 village clubs, 3 museums, 57 libraries, 3 schools of arts. The list of cultural heritage objects numbers 125 archeological monuments, 97 historical monuments, 93 architectural monuments, 7 monumental art monuments. Hiking, speleotourism, climbing, pilgrim tourism are developed in the district. Since 2001 Kremenets-Pochaiv State Historical-Architectural Reserve has been operating. The area has 2 stadiums, 26 gyms, 78 playgrounds with training equipment, 3 ski jumps and Kremenets toboggan track on the base of which "Kolos" junior sport school operates. The area has 12 accommodation establishments, "Panorama" leisure center has been opened in Kremenets. The number of simultaneous accommodation rates of 728 persons.

1.9. HISTORY OF SUCCESS Name of investment Initiator of the Approximate Design The total project project estimated capacity in number of cost,thous. appropriate new jobs UAH units Reconstruction of the warehouses and TDV installation of grain “Kremenchanka” 18000 300-500 tons 60 collection station TDV per day “Kremenchanka”

Installation of cutting Ltd. “United 800 400 items per 12 systems for cutting Fashion of day furniture leather Ukraine”

Realizing of the project Ltd. “Ecofruits” 307.5 1.4 tons per 30 “Development of day strawberry cooperatives”

Construction of DP “Agrocenter 18000 33 tons per 13 production base for Eurokhim- day liquid fertilizers Ukraine” (warehouse carbomid- ammonia mixture)

Reconstruction of the DP “Agrocenter 20000 80 tons per 7 production base for the Eurokhim- day complex reloading, Ukraine” storage and packaging of granular fertilizers

Shop producing fuel Losyatyn village 265.0 1.2 tons per 6 pellets in the territory of counsil, GC day Losyatyn village council “Berry Land” involving EC PROON "Local development oriented to community"

CHAPTER II. OFFERS TO INVESTORS

2.1. PRIORITY FIELDS FOR INVESRMENTS

- highly productive agriculture and food complex; - touristic and recreational complex; - producing of alternative fuels; - development of winter sports.

2.2. STRATEGIC INVESTMENT PROJECTS

№ Name of the Initiator Approximat Payback Brief description project e cost period (mln.UAH) 1 Reconstruction of Kremenets 150 mln. 4 years The only in Ukraine toboggan track and Junior Sport UAH toboggan track operating construction of School all year long. The infrastructure possibility of establishing objects in the center for training Kremenets Ukrainian national team in winter sports (toboggan, ski jumping, ski biathlon) on the base of the school 2 Arrangement of Kremenets- 934.1 thous. 5 years This project will temporary parking Pochaiv UAH significantly enhance the for touristic buses State existing physical in the territory of Historical- infrastructure which will Zamkova Hill in Architectura facilitate the establishment Kremenets l Reserve and development of organized tourism forms in Krements 3 Commercial use Chuhali 3 mln. UAH 2 years Construction of vehicle gas land 4000m² village filling compressor station council 4 Enterprise for Ltd. 6.2 mln.UAH year Multiple enterprise for repair and service “Agrotech repair and service of of agricultural service” agricultural machinery, machinery Ltd. tractors, cars, restoration “Agrotech and production of spare service” parts, production of rubber-technical products for machinery, welding and lathe work, service of delivery vehicles. The total area of 7.85 ha including ponds - 2000 m², garden - 1500 m², paved area of 3000 m². Production facilities: tractor workshop –1700 m², car service station –1450 m², restoration shop – 1000 m², warehouse – 4320 m², adminroom – 600 m² 5 Construction Private 35,9 5 years New housing, retail and p'yatysektsiynoho enterprise thousand office space in the area house with built-in "Budservice" UAH which is attractive for and attached investment and tourism commercial and and sports projects office space in Kremenets Street. Gorbach, 3 (with the release of the first and second stage of construction)

2.3. VACANT LAND PLOTS AND REAL ESTATE Vacant land plots Land plot area Location Brief description, investment model 2.2 ha Kremenets district, Land plot of reclaimed chalk pit of the village v. St. Pochaiv council. Possibility of mining for chalk. Distance tо electricity, gas, water supplies – 0,1 km, to the settlement – 0,1 km 4000 m² Kremenets district, Commercial use land (construction of vehicle Chuhali village council, gas filling compressor station); gas-, water-, tract “Airport” electricity supplies are available. Distance to the railway station – 9 km, tо the motorway Rivne - Ternopil - 8 km, tо the regional centre – 60 km 11.78 ha Kremenets district Agricultural land for sale or lease rights v. Chuhali Investment terms - lease 100 ha Kremenets district, Land reserve fund of the village council (arable). Ploske village council May be used for farming 14.9 ha Kremenets district, Former farmyard – land of village council v. Komarivka reserve. Distance tо electricity, gas, water supplies – 0,5 km, to the settlement – 0,3 km 14 ha Kremenets district, Farmyard – land of village council reserve. v. Budky Distance tо electricity, gas, water supplies – 0,5 km, to the settlement – 1,0 km 13.7 ha Kremenets district, Former car-park – land of village council v. Budky reserve. Distance tо electricity, gas, water supplies – 0,1 km, to the settlement – 0,1 km 50 ha Kremenets district, Land of village council reserve – common use. v. Bilokrynytsya May be used for construction of industrial and trade objects. Distance tо electricity, gas, water supplies – 0,5 km, to Kremenets – 0,2 km 14 ha Kremenets district, Farmyards – land of village council reserve, v. Katerynivka common use. Distance tо electricity, gas, water supplies – 0,05 km, to the settlement – 0,5 km 9 ha Kremenets district, Farmyards – land of village council reserve, v. Ivankivzi common use. Distance tо electricity, gas, water supplies – 0,5 km, to the settlement – 0,2 km 16 ha Kremenets district, Farmyards – land of village council reserve, v. Sapaniv common use. Distance tо electricity, gas, water supplies – 0,3 km, to the settlement – 0,3 km

Area Location Brief description Vacant areas 18 thousand Kremenets, m² 1, Tekstylnykiv st.

PAT “Kremenets powder metallurgy plant”. Purpose of the object – industrial production. There are all utilities except gas. Sale or lease are proposed, price – negotiable. Distance to the railway station – 0.9 km. Land area – 2.7 ha 1.2 Kremnets district, thousand v. Bashuky m²

Tractor workshop. Total facilities area – 12040 m². There are electricity and water supplies. Distance to the railway station – 45 km. Land area – 0.6 ha 12 thousand Pochaiv, m² 5, Promyslova st.

Ltd. "Collective Enterprise Pochaiv "Plastic" factory. Specialization of the company – manufacturing plastics (plastic foil, polystyrene sheet, pipes and profiles made of plastic). Purpose of the object – industrial production. There are all utilities except gas. Sale or lease are proposed, price – negotiable. Ownership is private. Distance to the railway station – 25 km. Area of the plot – 9.2 ha 4.5 Kremenets Ltd. "Kremenets research specialized plant". thousand district, Purpose of the company - production of ventilation systems, m² v. Mali Berezhtsy machines and equipment for stock-farming and fodder production. There are all utilities except sewage. Area of the plot – 3.5 thousand m² 5.6 Pochaiv, Ltd. "Pochaiv "Ikva" factory. Total area – 5576 m². There are thousand 18, Fabrychna st. all utilities except gas. Distance to railway station – 25 km m² 1.5 Kremenets Stock - farm,needs major repairs. Distance tо electricity, gas, thousand district, water supplies – 0,5 km, to the settlement– 0,5 km. m² Ploske village Investment terms – lease council 1000 m² Kremenets Premises of grain harvesting stack-yard, needs major repairs. district, Distance tо electricity, gas, water supplies – 0,5 km, to the Ploske village settlement – 0,5 km council 874 m² Kremenets Tractor garage, needs currant repairs. district, Distance tо electricity, gas, water supplies – 0,2 km Popivtsy village council 6222.1 m² Kremenets A complex of livestock buildings within the village . The total district, area of 3.73 hectares, including: barn number 1 – 1489 m², Popivtsy village barn number 2 – 1688 m², barn number 6 – 1575 m² , calf council house number 7 - 568.2 m², calf house number 4 - 901.9 m². The premises need major repairs, possible use of each building separately CHAPTER III. CONTACT INFORMATION

KREMENETS DISTRICT STATE ADMINISTRATION 56, Shevchenko st., Kremenets, Ternopil Region, 47003 Tel: (03546) 2 48 06 E-mail: [email protected] Web-сайт: http://www.oda.te.gov.ua/kremenetska

DEPARTMENT OF ECONOMIC DEVELOPMENT OF KREMENETS DISTRICT STATE ADMINISTRATION 56, Shevchenko st., Kremenets, Ternopil Region, 47003 Tel: (03546) 2 50 65 E-mail: [email protected]