INVESTMENT PASSPORT of Dnipropetrovsk Region Content

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INVESTMENT PASSPORT of Dnipropetrovsk region Content

Chapter 1. Region proﬁle 02

The section provides information on the region geographic location, main demographic and economic indicators, as well as trade agreements that operate in Ukraine, tax system and preferences.

1.1. Geographical location 02

1.2. Labor market 06

1.3. Economy in numbers 09

1.4. Trade agreements, taxes and preferences 13

Chapter 2. Investment opportunities 16

The section provides detailed information on the region's economy main sectors, results of enterprises economic, investment and foreign economic activity. There are also proposed areas and territories for the investment projects implementation.

2.1. Industry 16

2.2. Agricultural sector 27

2.3. Construction 40

2.4. Services sector 50

2.5. Industrial parks 67

About DIA 71

All information presented in this publication can be found in electronic form on the USB ﬂash drive that is included in the set, as well as on the website of Dnipropetrovsk regional investment agency www.dia.dp.gov.ua

dia.dp.gov.ua 1.1. Geographical location

Dnipropetrovsk region has a favorable geographical position and is located at the crossroads of road, rail and water routes that connect the east-west (European route E50) and the north-south (European route E105) of the European continent. The administrative center of the region is the city of Dnipro, which is located on the banks of the similar-named river.

ICELAND SWEDEN FINLAND NORWAY

ESTONIA RUSSIA LATVIA DENMARK LITHUANIA

UNITED BELARUS IRELAND KINGDOM POLAND GERMANY UKRAINE KAZKAHSTAN FRANCE MOLDOVA

ROMANIA UZBEKISTAN

BULGARIA TURKMENISTAN PORTUGAL SPAIN ITALY GREECE TURKEY

It is possible to get to Dnipro by air, train and bus.

By plane

Dnipropetrovsk International Airport (DNK) www.dnk.aero is a major regional airport of Ukraine, an important link in the air and transport system that connects Dnipro with other cities and countries. The International Airlines of Ukraine and Austrian Airlines regularly ﬂy from the international airport «Dnipropetrovsk». By combining different types of transport, you can get to Dnipro from the airports of neighboring regions.

02 dia.dp.gov.ua 1.1. Geographical location

LOCALITY DISTANCE SITE OZH Zaporizhzhia 70 km www.ozh.aero

HRK Kharkiv 218 km www.hrk.aero

KBP Boryspil 453 km www.kbp.aero

IEV Kyiv Zhyliany Airport 496 km www.iev.aero

IEV (496км) HRK (218 км)

KYIV

KBP (453км) KHARKIV

DNIPRO

ZAPORIZHZHIA

UKRAINE OZH (70 км)

By train

The high-speed trains of the Intercity and Regional Express categories run between Kyiv and Dnipro. Check its schedule and book tickets on the ofﬁcial website of the Ukrainian Railway www.uz.gov.ua

By bus

Through the Dnipropetrovsk region there are many routes of international, national and regional importance, which makes it easy to get to any part of Ukraine. The buses of international destinations run from Dnipro bus station. Check the schedule and book tickets on the ofﬁcial website of Dnipro bus station www.dopas.dp.ua

dia.dp.gov.ua 03 1.1. Geographical location

By car

You can also use the car rental service. Companies that provide car rental services:

www.economycarrentals.com www.narscars.com.ua

www.carﬂexi.com www.rental.ua www.car-sharing.dp.ua

Also the American Uber taxi service works in Dnipro. You can use this service by installing a mobile application.

Distances to the European capitals VILNIUS 1 190 km MINSK 988 km WARSAW 1 254 km KYIV 490 km

BUDAPEST 1 485 km DNIPRO

BUCHAREST 1 050 km

04 dia.dp.gov.ua 1.1. Geographical location

In the territory of Dnipropetrovsk region there is the Eastern European time EET (UTC + 2) with the switch to daylight saving EEST (UTC + 3).

Region’s area 31.9 thousd. km² 5.3% of the Ukrainian territory

Population 3.2 mln people 7.3% of country’s population

Region’s GDP $ 12.5 bln 11% of Ukrainian GDP

GDP per capita $ 2 640.3

Human Development Index (HDI) 0.81

Poltava region Kharkiv region

Pavlohrad Kamianske Kirovohrad region Dnipro

Kryvyi Rih

Nikopol Donetsk region

Zaporizhzhia Mykolaiv region region Kherson region 1.2. Labor market

Dnipropetrovsk region is one of the main labor markets in Ukraine, where 1.5 mln people (8.5%) of economically active population are concentrated. The region ranks second among the regions in terms of working-age population employment - 67.7%, while the registered unemployment level is 8.5% (129.25 thousd. people).

Age pattern of Dnipropetrovsk Urban Rural population population region’s population: Total persons persons

0-15 15.6% 502 thousd. 415 thousd. 87 thousd. years

15-69 73.4% 2.37 mln 2 mln 370 thousd. years

70 and 11% 356 thousd. 289 thousd. 67 thousd. above

Dnipropetrovsk region is one of the leading academic centers of Ukraine.

In the region there are: 24 higher education institutions (universities, academies, institutes), in which more than 94 thousd. students are studying. 25 thousd. specialists were graduated in 2017.

58 Vocational technical schools, in which 22 thousd. students are studying. 14 thousd. qualiﬁed craftsmen were graduated in 2017.

06 dia.dp.gov.ua 1.2. Labor market

Dnipropetrovsk region annually trains specialists in different spheres.

Education institutions are open for cooperation with employers due to training of appropriate proﬁle skilled workers.

More than About About 8 thousd. 2 thousd. 1 thousd. persons persons persons

Specialists of mining Specialists Specialists and smelting sector of agricultural sector of IT-sector

More than More than More than 2 thousd. 1 thousd. 2.5 thousd. persons More than persons persons 2 thousd. Specialists persons Specialists Specialists of construction of mechanical of power en- sector Medical engineering sector gineering sector specialists

The average salary by economy sectors in the region is $ 265

Industry $ 300 Agricultural sector $ 220

Construction $ 210 Services sector $ 310

A signiﬁcant scientiﬁc and technical potential is concentrated in Dnipropetrovsk region. There are:

• 55 scientiﬁc research institutes, • 21 design organizations, • Prydniprovsk Scientiﬁc Center of the National Academy of Sciences of Ukraine, employing 4.486 candidates of science, 753 doctors of science, 6 corresponding members and 9 academicians of the National Academy of Sciences of Ukraine.

dia.dp.gov.ua 07 1.2. Labor market

In most of the leading higher education institutions of Dnipropetrovsk region there are English-language programs for training specialists in different specialties.

English-language programs for training specialists

Higher education institution Department

National Metallurgical Academy «Chemical Technology and Engineering» of Ukraine «Management»

University of Customs and Finance «Management»

Prydniprovsk State Academy «Applied Materials Science» of Civil Engineering and Architecture «International Economics»

«Stomatology» (master) Dnipropetrovsk Medical Academy «Medicine» (master)

In «Top 20 Ukraine» ranking, 3 higher education institutions of Dnipropetrovsk region hold leading positions:

• National Technical University «Dnipro Polytechnic»; • Oles Honchar Dnipro National University; • National Metallurgical Academy of Ukraine.

In «TOP-10 of Ukraine central region» ranking, 5 higher education institutions of Dnipropetrovsk region hold leading positions

• Oles Honchar Dnipro National University; • Dnipropetrovsk Medical Academy; • National Technical University «Dnipro Polytechnic»; • Prydniprovsk State Academy of Civil Engineering and Architecture; • National Metallurgical Academy of Ukraine.

08 dia.dp.gov.ua 1.3. Economy in numbers

Dnipropetrovsk region is an economically developed and investment-attractive region of Ukraine, providing more than 11% of the country's economy. The region is characterized by a powerful industrial and scientiﬁc potential, developed agro-industrial complex, logistics and energy infrastructure.

1st Capital investments volume $ 1.6 bln (9.8% out of Ukraine) place

1st Volume of sold industrial products place $ 16.3 bln (19.3% out of Ukraine)

2nd place Volume of goods export $ 7.2 bln (16.3% out of Ukraine)

nd 2 Foreign direct investments volume $ 3.8 bln (9.8% out of Ukraine) place

th 4 Volume of sold agricultural products place $ 1.99 bln (5.8% out of Ukraine)

Despite the constant increase in the volume of industrial production, the region’s enterprises make a signiﬁcant contribution to improving the ecological state by investing in the production capacities modernization.

These are such enterprises as

«ArcelorMittal Kryvyi Rih», PJSC

«Interpipe Nyzhnodniprovsk Tube Rolling Plant», PJSC

«Southern Mining Factory», PJSC

«Norther Mining Factory», PJSC

«DTEK Pavlogradugol», PJSC

«Marhanets Mining Factory», PJSC

«Dniproazot», JSC

«Dnipro metallurgical complex», PJSC

«Nikopol Ferroalloy Plant», PJSC

dia.dp.gov.ua 09 1.3. Economy in numbers

The main investment areas in environmental protection are:

Improving the energy efﬁciency of old and new Industrial production buildings; modernization with regard to world environmental standards;

Support of sustainable agriculture, including organic production. Transition to alternative energy sources (wind, sun, biomass);

The total investment volume in Dnipropetrovsk region’s ecology was

$ 148 mln in 2017.

Investment Indicators in 2017

Investments into the region economy (capital and foreign direct $ 1.69 bln investment)

Capital investments of enterprises $ 1.6 bln

Capital investment growth index › 129%

Foreign direct investment dynamics index › 109%

GDP dynamics index of the region › 103%

10 dia.dp.gov.ua 1.3. Economy in numbers

Capital investments by economy sectors in 2017

%, out of the total Sector of economy $, mln %, out of Ukraine region’s volume Total 1 619.2 9.8

Industry 867.3 17.4 53.7

Agricultural sector 179.4 5.9 11

Construction 63.8 1.8 3.9

Services sector 508.7 4.7 31.4

Volume of sold products by economy sectors in 2017

%, out of the total Sector of economy $, mln %, out of Ukraine region’s volume Total 32 806.5 11.5

Industry 16 321.2 19.3 49.8

Agricultural sector 1 990.3 5.8 6

Construction 968.8 8.9 3

Services sector 13 526.2 8.7 41.2

The largest countries investors in Dnipropetrovsk region in 2017

Germany - $ 600 mln, 33% of investments in Ukraine

The Kingdom of the Netherlands - $ 800 mln, 13% of investments in Ukraine

Austria - $ 500 mln, 8% of investments in Ukraine

dia.dp.gov.ua 11 1.3. Economy in numbers

More than 16.3% of the country's export fall to Dnipropetrovsk region and provide a positive balance for foreign trade operations.

Sectoral export structure in 2017 %, out of the %, out of total region's $, mln Ukraine volume

Industry 6 452.4 26 89.8

Total Agricultural sector 562.4 2.9 7.9 $ 7 183 mln 16.3 % Services sector 130.1 1.2 1.8 out of Ukraine

Construction 38.0 10.4 0.5

Sectoral imports structure in 2017 %, out of the %, out of total region's $, mln Ukraine volume

4 151.8 9.5 85 Industry

388.3 6 7.9 Agricultural sector Total $ 4 887.3 mln

255.6 4.8 5.2 Services sector 9.3 % out of Ukraine

91.6 4.8 1.9 Construction

The economy structure of Dnipropetrovsk region is presented sectorally: Industry - metallurgy, mineral resources, electricity-producing industry, chemistry, rubber and polymeric products, engineering, light industry; Agricultural sector - growing, storage and processing of crop and animal farming products, food industry, production of agricultural machinery and equipment; Construction - construction materials and works; Services sector - scientiﬁc and innovative activity, ﬁnancial and insurance services, logistics services, trade and IT.

12 dia.dp.gov.ua 1.3. Economy in numbers

The main countries-trade partners of the region

Russian China Federation Turkey Poland Cyprus United Kingdom Egypt

1.4. Trade agreements, taxes and preferences

Trade agreements

The Government of Ukraine is working to achieve economic stability and restore growth. The State and institutional reforms on the adaptation of legislation to EU standards, positively affect on the business environment: • in Doing Business ranking Ukraine rose to 76 place; • in Paying taxes ranking Ukraine took 43 place (growth was 41 points).

The enterprises and companies located in the territory of Dnipropetrovsk region take all the benefits that provided: • harmonized legislation and an expanded field of cooperation with the EU thanks to the associated membership of Ukraine in the European Union; • investment protection in the framework of the Declaration on International Investment and transnational corporations and Ukraine's membership in the OECD; • world trade standards and dispute settlement mechanisms due to Ukraine's membership in the World Trade Organization; • compliance with the same rules of goods origin and products exports on a preferential basis using a diagonal cumulation system thanks to Ukraine's participation in the Pan-Euro-Mediterranean regional convention; • simplified information exchange on products and services within the framework of Ukraine's participation in the EU program COSME; • participation in the international events, thanks to the visa-free and simplified regime on the part of Ukraine for 64 leading world countries (EU, USA, Canada, Japan, Brazil, Turkey, Georgia, Kazakhstan, Korea, Switzerland, UAE, Qatar, Hong Kong, Great Britain, etc.); • access to resources for the energy saving projects implementation in the framework of Ukraine's membership in the International Renewable Energy Agency (IRENA); • elimination of customs duties and taxes, as well as quantitative restrictions in the mutual trade within the framework of 16 agreements on the free trade zone of Ukraine with 45 world countries, including the EU, EFTA, GUAM, Canada, etc.

dia.dp.gov.ua 13 1.4. Trade agreements, taxes and preferences

EU (28 member states) Canada CIS Valid as of: Valid as of: Valid as of: January 1, 2016 August 1, 2017 September 20, 2012 Goal: Goal: Goal:

European Free Trade Association (EFTA) (Iceland, Liechtenstein, Macedonia Montenegro Georgia Norway, Switzerland) Valid as of: Valid as of: Valid as of: Valid as of: June 1, 2012 July 5, 2001 January 1, 2013 June 4, 1996 Goal: Goal: Goal: Goal:

The scope of free trade zone agreements: goods state procurements

services gradual legislative approximation and economic integration with the EU

14 dia.dp.gov.ua 1.4. Trade agreements, taxes and preferences

Taxes

• Company income tax: 18%. • Value-added tax (VAT): 20%. • Uniﬁed social tax: 22% of the wage fund. • Personal income tax: 18% of the salary employed person. • Real estate tax: up to 1.5% of the minimum wage per m². • Land tax: from 1 to 12% of the land normative monetary estimate.

Preferences

• Import of equipment operating on renewable energy sources for own production. * Exemption • Import of energy-saving equipment, components and from VAT (20%) materials. * provided in case of • Import of technical facilities working on alternative fuels.* • IT products supply.

• Investors, who operate within the framework of production sharing agreements. • Equipment for industrial, scientiﬁc, technical parks Exemption from arrangement.* import duties • Equipment operating on renewable energy sources and taxation of energy-saving equipment.* • Materials, units and aggregates for the agro-industrial complex.*

Local beneﬁts • Preferences regarding the real estate tax payment. (by decision of local • Preferences regarding the land tax payment. government) • Preferences regarding the leasehold ground rent.

* In the case when the similar equipment or materials are not produced in Ukraine.

dia.dp.gov.ua 15 2.1. Industry

Dnipropetrovsk region is the ﬁrst in Ukraine in terms of sold industrial products - it is 19.3% ($ 16.3 bln) and about 50% of all sold products in the region.

The volume of sold industrial % out of the $ mln total region’s products in 2017 volume

Total 16 321.2

Metallurgy 6 047.2 37.1

Mineral resources 4 396.5 26.9

Electricity-producing industry 1 487.3 9.1

Chemistry 670.1 4.1

Rubber and polymeric products 572 3.5

Engineering 386 2.4

Light industry 294.2 1.8

Space vehicles production 130.8 0.8

Other 2 337.2 14.3

16 dia.dp.gov.ua 2.1. Industry

The volume of capital investment in the industrial sector was $ 867.3 mln and it has demonstrated a positive growth rate of 29% compared to the previous year. The share of the region's capital investments in the industrial sector exceeds 17% of the industrial capital investments volume of Ukraine and more than 50% of the total amount of investments into the region economy.

The volume of capital investments % out of the $ mln total region’s in industry in 2017 volume

Total 867.3

Metallurgy 298.1 34.4

Mineral resources 417.9 48.2

Electricity-producing industry 48.2 5.5

Chemistry 52.5 6.1

Rubber and polymeric products 11.4 1.3

Engineering 13.5 1.6

Light industry 14.9 1.7

Other 10.8 1.2

dia.dp.gov.ua 17 2.1. Industry

90 % of the region's foreign economic activity is provided by the industrial sector. Dnipropetrovsk region is the second among Ukrainian regions in terms of exports. More than half of the industrial output is exported, providing a positive balance of foreign trade.

Export branch structure for 2017

Total 26 % out of Ukraine % out of the total $ 6 452.4 mln % out region’s $ mln of Ukraine volume

cast iron, ferroalloys, rolled ferrous metal products, pipes from 3 891.9 40 60.3 Metallurgy foundry iron and ferrous metals and other

Mineral resources ores concentrates, iron and manganese 1 711 62.7 26.5 extraction

electric and other railway locomotives, railway and tramway cars, space vehicles, rolling mills and rolls 238.5 5.8 3.7 Engineering for them

products of inorganic chemistry, explosives, 221.6 13.3 3.4 Chemistry nitrogen fertilizers

171.2 72.7 2.6 Electrical power

сlothing, knitted and textile, footwear, natural and artiﬁcial fur 71.5 3.4 1.1 Light industry

Polymer and polymeric materials, plastic 48.5 8.6 0.8 rubber materials

98.2 0.6 1.6 Other

18 dia.dp.gov.ua 2.1. Industry

Import branch structure for 2017

% out of the total 9.5 % out of Ukraine Total region’s % out of volume Ukraine $ mln $ 4 151.8 mln

39.8 13.2 1 650.5 coke, reﬁned petroleum products, natural gas, coal Mineral resources extraction

vehicles, machining facilities, tools, compressors 19.6 6.4 813.7 and refrigeration equipment, household appliances Engineering

pharmaceutical products, soaps, detergents, 12.6 8 521.5 essential oils, organic chemicals Chemistry

rolled ferrous metals and aluminum, products 11.6 16 481.2 made of aluminum and lead, pipes Metallurgy

tires, conveyor belts, rubber, plastic, 8.9 11.4 370.5 polymeric materials Polymer and rubber materials

fabric, textile materials, threads, paper, 6.2 6.6 258.4 cardboard, leather goods, shoes, hats Light industry

1.3 1.1 56 Other

The enterprises’ investments for their modernization, new production lines construction, equipment and specialized machinery purchase and solar power plants construction, which were attracted in 2017 (the information was obtained from enterprises open sources).

385 mln 133.5 mln 12.3 mln 16.5 mln

91.6 mln 14.8 mln 269 mln 8 mln 19.1 mln 7.5 mln

production facilities new production specialized machinery solar power modernization facilities and equipment plants and reconstruction construction purchase construction

dia.dp.gov.ua 19 2.1. Industry

The largest enterprises-investors in the industrial sector

Metallurgy

«Interpipe Novomoskovsk «EVRAZ-DMP named Pipe Plant», PJSC after Petrovskyi», PJSC

Chemistry

NGO «Pavlohrad Chemical Plant»

Engineering

«Verkhnodniprovsk SE «PA UMZ named «Verkhnodniprovsk Engineering «Dnipropetrovsk Railway Engineering Plant», PJSC after A. Makarov» Plant», PJSC Switch Plant» , PJSC

Mineral deposits

Electricity-producing industry Rubber and polymer materials

SE «Ukrainian Scientiﬁc and Research Technological Institute of Elastomeric Material and Goods «DINTEM»

Light industry

20 dia.dp.gov.ua 2.1. Industry

Suggested directions for investing in the region Data obtained in the result of statistical information analysis on the Ukrainian market $ mln Abrasive materials 28.6 13.8 54%

Truck tires for agricultural and 555.2 2.9 special equipment 99.5% Conveyor belts and rubber technical 72.7 0.5 goods 99.3%

Cardboard, corrugated cardboard 859.6 633 57.6%

Machine tools and robotic systems 162 6.1 96.4%

Heat pumps 2.6 100%

Household appliances 136.8 5.6 96%

Pumps and compressors 191.8 90.4 68%

Refrigerators, freezers 253.5 100%

Import Production

Abrasive Truck tires for agricultural Conveyor belts and materials and special equipment rubber technical goods

The market of Ukraine: The market of Ukraine: The market of Ukraine: $ 42.4 mln $ 558.1 mln $ 73.2 mln Production $ 13.8 mln Production $ 2.9 mln Production $ 0.5 mln Import: $ 28.6 mln (54%) Import: $ 555.2 mln (99.5%) Import: $ 72.7 mln (99.3%) Consumers: Consumers: Consumers: metallurgy and engineering enterprises of agricultural coal mining enterprises, enterprises sector, mining and processing mining and processing plant Core enterprises: plant Core enterprises: • Dniprovsky plant of special Core enterprises: • Private research and equipment and materials • «Ukrainian factory production enterprise • Prominstrument-D of oversized tires», Ltd «Metalyrgmashremont»

dia.dp.gov.ua 21 2.1. Industry

Suggested directions for investing in the region

Cardboard, corrugated Machine tools Refrigerators, cardboard and robotic systems freezers

The market of Ukraine: The market of Ukraine: The market of Ukraine: $ 1 492.6 mln $ 168.1 mln $ 253.5 mln Production: $ 633 mln Production: $ 6.1 mln Import: $ 253.5 mln (100%) Import: $ 859.6 mln (57.6%) Import: $ 162 mln (96.4%) Consumers: Consumers: Consumers: enterprises of services, trade enterprises of packaging engineering enterprises and agricultural sectors production, trade and Core enterprises: Core enterprises: industrial enterprises • «Vostokenergomash», Ltd • Astra Group Core enterprises: • «Dnipropetrovsk plant of • «Ekopromservis» ,Ltd technological equipment», Ltd • «PakStandart», Ltd • «UkrKarton», Ltd

Household appliances Heat pumps Pumps and compressors

The market of Ukraine: The market of Ukraine: The market of Ukraine: $ 142.4 mln $ 2.6 mln $ 282.2 mln Production: $ 5.6 mln Import: $ 2.6 mln (100%) Production: $ 90.4 mln Import: $ 136.8 mln (96%) Consumers: Import: $ 191.8 mln (68%) Consumers: enterprises of agricultural Consumers: citizens, services sector and industry sectors enterprises of industry, enterprises Core enterprises: agricultural building • «Dnipropetrovsk aggregate and trade sectors plant», PJSC Core enterprises: • Novomoskovsk Mechanical • «Dnipropetrovsk aggregate Plant, Ltd plant», PJSC • Novomoskovsk Mechanical Plant, Ltd

22 dia.dp.gov.ua 2.1. Industry

Proposals for partners for investment business projects implementation

Establishment of production based on the Creating a new enterprise for the sheets model of electric jet micro-propulsion device production of polymer plastic sheet of for CUBESAT nanosatellite polyethylene, polypropylene and other polymer materials

Project initiator: Laboratory of Advanced Jet Project initiator: Ukrkhimzakhyst, Ltd Propulsion, Ltd Project amount: $ 4.3 mln Project amount: $ 1.2 mln Payback period (PP): 5 years Payback period (PP): 2.8 years Internal rate of return (IRR): 26% Internal rate of return (IRR): 62.6% Net present value (NPV): $ 2.3 mln Net present value (NPV): $ 4.1 mln Proﬁtability index (PI): 156% Proﬁtability index (PI): 3.42 EBIDA: $ 10.4 mln

Construction of a complex for the Creation of a new production facility of refrigeration equipment and its components polymeric packaging material (a large soft production in areas of approximately 5.5 ha container), which allows transportation of bulk materials of large capacity (city of Pavlohrad)

Project initiator: «Evrokul», Ltd Project amount: $ 62.1 mln Project initiator: «Arivapark», Ltd Payback period (PP): 4 years Project amount: $ 2 mln Internal rate of return (IRR): 49.59% (company resources $ 500 thousd.) Net present value (NPV): $ 1.1 mln Payback period (PP): 4 years Proﬁtability index (PI): 1.36 Internal rate of return (IRR): 22% EBIDA: $ 680.2 thousd.

The terms of cooperation are negotiated individually for each project. It is possible to choose the most beneﬁcial cooperation mechanism: a joint venture, credit facilities, sales and other cooperation forms.

More detailed information on the proposed investment business projects can be found in electronic form on the USB ﬂash drive that is included in the set, as well as on the website of Dnipropetrovsk Regional Investment Agency www.dia.dp.gov.ua

dia.dp.gov.ua 23 2.1. Industry

Land plots for the investment projects implementation

Manufacture of refrigerators, freezers, compressors

Land plot location: Titov Str., Verkhnodniprovsk. Land plot Neighboring land plots: «Astra», Ltd and «Modern Expo», Ltd (freezing, refrigerating information equipment), petrol-ﬁlling station, «Dinat-S», Ltd (ground transportation).

Form of land plot transfer Lease, sublease

Verkhnodniprovsk City Council Administrator (communal property)

Land plot characteristics

Area 5.5 ha, Brown-ﬁeld 2.47 hа

Intended use industrial land

gas pipeline substation Cadastral number is not available » Bummash 35/10 kW

Distance to the national highway H08 – 2 km, regional nearest transport highway T0437 – 10 m, the Dnieper river – corridors 2.2 km, the city of Dnipro – 50 km. Verkhnodniprovsk

Engineering infrastructure Т0437 -

10 м Water supply river– Dnieper the Centralized water supply and water 5.5 hа discharge is in the territory Water discharge km 2.2

Connection to the existing gas Gas supply pipeline – 100 m Dnipro 50 km Connection to electrical substation Electricity supply Н08 - Bummash 35/10 kW – 0.8 km 2 km

24 dia.dp.gov.ua 2.1. Industry

Industrial production

(rubber products (conveyor belts, etc.) / cardboard, corrugated cardboard)

Land plot location: 56, Trybnykiv Ave., Nikopol, on the territory of the State Land plot Enterprise Nikopol Pipe Plant. information Neighboring land plots: State Enterprise Nikopol Pipe Plant (manufacture of pipes and ﬁttings for steel pipes), gardening company «Trybnyk-2».

Form of land plot transfer Auction (for sale, for rent)

Nikopol City Council Administrator (communal property)

substation «Nikopolska-150» Land plot characteristics 150/35/6 kW - 1.3 km 9.59 ha Area 9.59 ha, Green-ﬁeld

Intended use industrial land compressor Cadastral number substation «Н - 5» station is not available

Railway station «Nikopolstroi» – 3.6 km, Distance to the railway station «Tsentralna» – 1.9 km, nearest transport national highway Н-23 – 0.5 km, corridors the Dnieper river – 2 km

railway st. «Nikopolstroi» – 3.6 km

Engineering infrastructure Nikopol

potential connection to the nearest Water supply water supply point – 0.1 km Н–23 - 0.5 km 9.59 hа Water discharge connection to local sewerage network railway st. operating gas pipeline – 0.3 km, «Tsentralna» - Gas supply compressor station – 0.01 km 1.9 km

Connection to electrical substation: the Dnieper river 2 km Electricity supply • substation «Н-5» – 0.05 km; • substation «Nikopolska-150» 150/35/6 kW – 1.3 km

The offered territory can also be used for placing construction materials production.

dia.dp.gov.ua 25 2.1. Industry

Industrial production

(abrasive materials / Truck tires for agricultural and special equipment)

Land plot location: Shoseina Str., Pavlohrad. Land plot Neighboring land plots: Pavlohrad oil tank farm «Dnipronaftoprodukt» PJSC, information petrol-ﬁlling station «Naftatorh», railway station «Pavlohrad-1», public buildings, garage cooperative «Avtoluibytel-3».

Form of land plot transfer Auction (for sale, for rent)

Pavlohrad City Council Administrator (communal property)

Land plot characteristics

Area 47.49 ha, Green-ﬁeld

power transmission lines recreational zone (there is the possibility Intended use of changing the land plot intended use by the administrator on the land of industry)

Cadastral number is not available gas pipeline

Railway station «Pavlohrad-1» – 0.2 km, Distance to the European route Е50 – 2.5 km, regional nearest transport highway Р-51 – 0.6 km, Т0422 – 0.85 km, corridors the Vovcha river – 1.7 km

railway st. Pavlohrad «Pavlohrad-1» – Engineering infrastructure 47.49 ha 0.2 km potential connection to the nearest water Water supply supply point – 300 m Р - 51 – 0.6 km Т0422 - Water discharge centralized connection – 80 m, Ø 300 mm 0.85 km

distance to the operating gas pipeline – 10 m, Gas supply Ø 76 mm, low power. the Vovcha river –

1.7 km distance to the operating power transmission Electricity supply lines 35/10 kW – 10 m, to the transformer Е50 - substation – 100 m 2.5 km

The offered territory can also be used for placing construction materials production, agricultural products processing or logistics center.

26 dia.dp.gov.ua 2.2. Agricultural sector

The agro-industrial complex lies in 4th place in Ukraine by sold products volume (6% out of the Ukraine total volume) and shows an increase of 9% compared to 2016). The capital investments amounted to $ 179 mln (growth of 23% by 2016), more than 70% of which spent on crop farming.

The volume of sold agricultural products in 2017

% out of the Total $ 1 990.3 mln $ mln total region’s volume Crop farming (grain crops (except rice), leguminous crops and oilseeds, vegetables, melons and gourds, root vegetables, tuber-bearing plants) 788.5 39.6

Production of oils and animal grease 393.6 19.8

Production of meat and meat products 290.1 14.6

Animal farming (cattle, pigs, domestic fowl) 246.9 12.4

Production of other food products 229 11.5

Production of agricultural 22.6 1.1 machinery and equipment

Other 19.6 1

The volume of capital investments in agro-industrial complex in 2017

% out of the Total $ 179.4 mln $ mln total region’s volume Crop farming (grain crops (except rice), leguminous crops and oilseeds, vegetables, melons and gourds, root vegetables, tuber-bearing plants) 133.2 74.2

Production of food products 22 12.3

Animal farming (cattle, pigs, domestic fowl) 12.2 6.8

Production of meat and meat 8 4.5 products

Production of oils and 1.9 1.1 animal grease

Production of agricultural 1.5 0.8 machinery and equipment

Other 0.6 0.3

dia.dp.gov.ua 27 2.2. Agricultural sector

The share of agro-industrial products export/import is almost 8% of the total region’s volume, bringing the industry to the second place. At the same time, a signiﬁcant part of the proceeds is returned abroad for the agricultural machinery and equipment purchase. The positive balance of the region’s agro-industrial sector demonstrates its export-oriented development.

Export branch structure for 2017

% out of the total $ mln % out of Ukraine region’s volume Total 562.4 2.9

Sunﬂower-seed oil 270.2 6.1 48

Grain crops 64.1 1 11.4

Pet food 49 4.7 8.7

Agricultural machinery and equipment 44.3 4.8 7.9

Flour, cereals, bakery products 25.4 4.5 4.5

Seeds and fruits of oil plants 23 1.1 4.1

Milk and dairy products, poultry eggs, 14.8 3 2.6 honey

Meat and by-products 11.7 2.2 2.1

Edible fruits and nuts 10.4 5.3 1.8

Different food products 9 7.4 1.7

Other 40.5 1.6 7.2

28 dia.dp.gov.ua 2.2. Agricultural sector

Import branch structure for 2017

% out of the total $ mln % out of Ukraine region’s volume Total 388.3 6

Agricultural machinery and equipment 94.4 5.1 24.3

Fats and oils 50.5 18.9 13

Food products 37.2 5.9 9.6

Coffee, tea, cocoa 31.7 5.8 8.2

Alcoholic and nonalcoholic 29 4.1 7.5 beverages

Fish and crustaceans 23.1 5.1 5.9

Edible fruits, nuts and peanuts 21.8 4.6 5.6

Seeds and fruits of oil plants 17.1 4.8 4.4

Meat and by-products 12.9 11.5 3.3

Finished products from grain 11,3 9.6 2.9

Other 59.3 4.9 15.3

dia.dp.gov.ua 29 2.2. Agricultural sector

Large region enterprises in the agro-industrial sector

Food industry

Agricultural engineering

Crop farming, mineral fertilizers

«Dniprovskyi starch integrated plant» , PJSC

Animal farming

30 dia.dp.gov.ua 2.2. Agricultural sector

Suggested directions for investing in the region Data obtained in the result of statistical information analysis on the Ukrainian market $ mln Flour products (pasta) 0.7 4 15%

Vegetables grown in closed soil 41.1 244.8 14.4%

Vegetable mixes 10 1 91%

Pet food 53.4 39.6 57.4%

Peanuts, hazelnuts, almonds 29.9 100% Agricultural machines 244.5 15.6 (seeders, plows, harrows) 94% Machines or mechanisms for harvesting or threshing of agricultural crops 407.7 26 94% Fertilizers containing nitrogen and phosphorus 217.9 2.8 99 %

Fruits, berries 120.4 570 17.4 %

Import Production

Flour products Vegetables grown Vegetable mixes (pasta) in closed soil (dried, frozen)

The market of Ukraine: The market of Ukraine: The market of Ukraine: $ 4.7 mln $ 285.9 mln $ 11 mln Production: $ 4.0 mln Production: $ 244.8 mln Production: $ 1 mln Import: $ 0.7 mln (15%) Import: $ 41.1 mln (14.4%) Import: $ 10 mln (91%) Consumers: Consumers: Consumers: food industry enterprises, food industry enterprises, food industry enterprises, citizens citizens citizens Core enterprises: Core enterprises: Core enterprises: • «Dnipromlyn,» LLC • Greenhouse complex • Cold-store complex • Ukrainian Food Company «AE Katerynivska 1» «Snihovyk», Ltd • «Lekom-Agro», Ltd • Greenhouse facility «Dniprovskyi»

dia.dp.gov.ua 31 2.2. Agricultural sector

Suggested directions for investing in the region

Pet food Peanuts, hazelnuts, Machines or mechanisms for harvesting or threshing almonds of agricultural crops

The market of Ukraine: The market of Ukraine: The market of Ukraine: $ 93 mln $ 29.9 mln $ 433.7 mln Production: $ 39.6 mln Import: $ 29.9 mln (100%) Production: $ 26 mln Import: $ 53.4 mln (57.4%) Consumers: Import: $ 407.7 mln (94%) Consumers: food industry enterprises, Consumers: citizens citizens enterprises of agricultural Core enterprises: Core enterprises: sector, citizens • «Granulated feeds plant», Ltd • Dnipropetrovsk Region Core enterprises: Nuts Association • «Sicheslav Engineering Plant» Ltd • SE «PA UMZ named after A. Makarov»

Agricultural machines Fertilizers containing Fruits, berries (seeders, plows, harrows) nitrogen and phosphorus

The market of Ukraine: The market of Ukraine: The market of Ukraine: $ 260.1 mln $ 220.7 mln $ 690.4 mln Production: $ 15.6 mln Production: $ 2.8 mln Production: $ 570 mln Import: $ 244.5 mln (94%) Import: $ 217.9 mln (99%) Import: $ 120.4 mln (17.4%) Consumers: Consumers: Consumers: enterprises of agricultural enterprises of agricultural enterprises of agricultural sector, citizens sector, citizens sector, citizens Core enterprises: Core enterprises: Core enterprises: • «Manufacturing enterprise • «Azot», JSC • FE «Vidrodzhennia» «Agro-Soyuz», Ltd • «Arlan», Ltd

32 dia.dp.gov.ua 2.2. Agricultural sector

Proposals for partners for the investment projects implementation in the agro-industrial sector

Construction of the modern greenhouse Construction of complex for storage of fruit complex on the area of 6 ha and vegetable products and its sorting

Project initiator: Farming enterprise Project initiator: PE «AE Katerynivska 1» «Vidrodzhennia» Project amount: $ 6.4 mln Project amount: $ 7.6 mln Payback period (PP): 4.5 years (company resources $ 2.1 mln)

Internal rate of return (IRR): 21% Payback period (PP): 5.3 years Net present value (NPV): $ 2.4 mln Internal rate of return (IRR): 16% Proﬁtability index (PI): 138% Net present value (NPV): $ 1.1 mln EBIDA: $ 14.6 mln Proﬁtability index (PI): 120% EBIDA: $ 10.8 mln

Creation of a farm for the breeding culture Creation of fruit, berry and nut farming on of the Aberdeen young bulls, for further marble an area of 152.68 ha meat production

Project initiator: «APK Energia», Ltd Project initiator: State enterprise «Investment Project amount: $ 5 mln and Innovation Centre» Payback period (PP): 4.4 years Project amount: $ 1.1 mln Internal rate of return (IRR): 22% Payback period (PP): 3 years Net present value (NPV): $ 2.1 mln Internal rate of return (IRR): 33% Proﬁtability index (PI): 142% Net present value (NPV): $ 1.9 mln EBIDA: $ 11.6 mln

dia.dp.gov.ua 33 2.2. Agricultural sector

Land plots for the investment projects implementation

Creation of fruit and berry gardens

Land plot location: Pavlohrad district, Mezhyrich United Territorial Community, Land plot outside the village boundaries. information Neighboring land plots: agricultural land plots (shares, ﬁelds), European route Е50.

Form of land plot transfer For sale

Administrator «APK Enerhia», Ltd (rent until 2042)

substation «Mezhyrich-Nova» - Land plot characteristics 35/10 kW - 2.4 km

Area 152.68 ha, Green-ﬁeld

Intended use agricultural lands

1223584500:01:003:0829 Cadastral number 1223584500:01:003:0830 1223584500:01:003:0862 Water pipe line

railway station «Mezhyrich» – 4 km, Distance to the European route Е50 – 0.6 km, regional railway st. nearest transport Pavlohrad highway Т0408 – 9 km, the Vovcha «Mezhyrich» - 2 km corridors river – 2.5 km

Engineering infrastructure The Vovcha Е50 - river - 2.5 km 0.6 km Water supply water pipe line

Water discharge collector 152.68 hа distance to the nearest gas distribution Gas supply station – 2.5 km connection to Substation Electricity supply Т0424 - 9 km «Mezhyrich-Nova» - 35/10 kW – 2.4 km

34 dia.dp.gov.ua 2.2. Agricultural sector

Agricultural processing center / agricultural machines production

(fertilizers, pet food / seeders, plows, harrows)

Land plot location: Mostova Str., Verhivtseve, Verkhnodniprovsk district. Land plot Neighboring land plots: ﬁrehouse, industrial estate, disposal ﬁelds «Soloma», Ltd information (oil-extraction shop), public buildings.

Form of land plot transfer Auction (for sale, for rent)

Verkhivtsevo City Council Administrator (communal property)

Land plot characteristics substation 35/10 kW «Travy»

Area 32 ha, Brown-ﬁeld

gas boiler single-store (ofﬁce building, house Buildings warehouses, dining room), the area on which the buildings are located is 1 ha 32 hа elevated Intended use industrial land storage

Cadastral number is not available

Distance to the railway station «Verhivtsevo» – 2 km, nearest transport regional highway Т0429 – 500 m. corridors Verkhivtsevo

Т0129 - Engineering infrastructure 0,5 km

potential connection poin to the water Water supply pipe line – 0.1 km, water tower in the 32 hа territory

Water discharge disposal ﬁelds – 0.5 km

connection to the existing gas railway station «Verhivtsevo» - Gas supply pipeline – 0.1 km, gas boiler-house 2 km in the territory

substation 35/10 kW «Travy» Electricity supply in the territory

The offered territory can also be used for placing construction materials production and industrial facilities.

dia.dp.gov.ua 35 2.2. Agricultural sector

Food products manufacture

(ﬂour products, vegetable mixes (dried, frozen)

Land plot location: Kosmichna Str., Synelnykove. Neighboring land plots: «Snek Export», Ltd (snacks production), winery Land plot «Zolota Amphora», «Synelnykove Porcelain Factory», Ltd (wholesale of porcelain, information glassware and cleaning products, wood products production), «New technologies plant», Ltd (paints and lacquers).

Form of land plot transfer Auction (for sale, for rent)

Synelnykove City Council Administrator (communal property)

Land plot characteristics

Area 5 ha, Green-ﬁeld

Intended use industrial land GDS Cadastral number is not available water

railway station «Synelnykove-2» – 2 km, Distance to the it is available asphalt road to the nearest transport Vatutin Str. – 300 m, national highway Е105 – substation corridors 10 km, regional highway Т0401 – 0.75 km «Synelnykove-city» 35/10 kW – 2 km

Synelnykove Engineering infrastructure Т0401 – 0.75 km potential connection to the nearest water Water supply supply point – 250 m 5 hа

distance to the nearest possible sewerage Water discharge Е105 - railway st. connection – 100 m 10 km «Synelnykove» distance to the nearest gas distribution Gas supply station (GDS) – 25 m

in the territory there is an operating power transmission line 35/10 kW, connection Electricity supply to the substation «Synelnykove-city» 35/10 kW – 2 km

The offered territory can also be used for placing construction materials production, industrial and logistics facilities.

36 dia.dp.gov.ua 2.2. Agricultural sector

Agricultural products growing

(fruit and berry gardens, greenhouse complex)

Land plot location: 1, Dniprovska Str., Pavlohrad Land plot Neighboring land plots: European route Е50, branch railway line, the Vovcha river, information parking, trucks washing, a gas station, Nova Pochta.

Form of land plot transfer For sale and rent

«Pavlohradkonopleprom», Ltd Administrator (collective property)

Land plot characteristics

Area 44 ha, Brown-ﬁeld substation 150/35/6 kW Production area 7.75 ha dimensions

single-store (warehouses, garages, shelter, Buildings ofﬁce building), the area on which the well buildings are located is 7.75 ha

Intended use agricultural lands existing gas pipeline Cadastral number 1212400000:02:001:0063

Distance to the railway station «Pavlohrad-1» – 2 km, European route Е50 – 20 m, nearest transport regional highway Т0422 – 1 km, corridors the Vovcha river – 50 m Pavlohrad Т0422 - railway st. 1 km «Pavlohrad-1» - Engineering infrastructure 2 km Water supply centralized, own well, cesspools 44 hа the Vovcha Water discharge river - 50 m

distance to the nearest gas distribution Е50 - Gas supply point (GDS) – 4 km, to the existing gas 20 m pipeline – 0.1 km

substation150/35/6 kW in the territory owned by «Pavlohradkonopleprom», Ltd, Electricity supply distance to the power transmission line 35/10 kW – 2 m

The offered territory can also be used for placing wholesale markets for agricultural products, logistics facilities and other agricultural projects. dia.dp.gov.ua 37 2.2. Agricultural sector

Logistic complex of agricultural purpose

(center for agricultural products storage and sale)

Land plot location: Krasnohryhorivka United Territorial Community, Nikopol district, Land plot beyond the village boundaries. information Neighboring land plots: pig farm, agricultural workshop, pasture, beam, regional highway Р73.

Form of land plot transfer Auction (for sale and rent)

Krasnohryhorivka United Territorial Administrator Community (community’s communal property)

Land plot characteristics substation 35 / 6-10 kW Area 14.3 ha, Green-ﬁeld

Intended use agricultural lands

Cadastral number is not available

Distance to the railway station «105 km» – 2.8 km, national highway Н-23 – 1.3 km, GDS nearest transport regional highway Р73 – 20 m, corridors the Dnieper river – 2 km

Krasnohryhorivka United Territorial Community Engineering infrastructure Р73 - 20 m Water supply well 14.3 hа Н-23 - 1.3 km Water discharge collector railway st. «105 km» – 2.8 km distance to the nearest gas distribution station (GDS) – 2.4 km, to the existing Gas supply the Dnieper river - gas pipeline – 1.6 km, Ø 100 mm, 2 km medium power. Nikopol distance to the power transmission Electricity supply line 35/10 kW – 1.1 km, substation 35/6-10 kW – 30 m.

The offered territory can also be used for placing wholesale markets for agricultural products, growing agricultural products and other projects for agricultural purposes.

38 dia.dp.gov.ua 2.2. Agricultural sector

Creation of fruit, berry and nut gardens

Land plot location: Orlovo village, Sviatovasylivka United Territorial Community, Land plot Solone district. information Neighboring land plots: agricultural land (shares), pasture, pond, public buildings.

Form of land plot transfer Auction (for sale and rent)

Sviatovasylivka United Territorial Administrator Community (community’s communal property)

Land plot characteristics

Area 17.9 ha, Green-ﬁeld

Intended use agricultural lands substation 35/10 kW - substation «Yelizarovo» 35/10 kW - 2.4 km 0.1 km Cadastral number is not available

Distance to the railway station «Riasne» – 4 km, nearest transport regional highway Т0420 – 3.3 km. corridors

GDS

Engineering infrastructure Sviatovasylivka United Territorial Community Water supply well Dnipro – 40 km Water discharge collector

Т0420 - distance to the nearest gas 3.3 km Gas supply distribution station (GDS) – 1 km, 17.9 ha high power.

Orlovo village connection to the substation: railway st. «Riasne» - 4 км • substation 35/10 kW – 0.1 km; Electricity supply • substation «Yelizarovo» 35/10 kW – 2.85 km.

dia.dp.gov.ua 39 2.3. Construction

The growth of Dnipropetrovsk region’s construction sector was 36% in 2017. The region takes the second place among Ukrainian regions in terms of sold products and completed construction works volumes, the sum of which for 2017 was $ 968 mln.

The volume of construction products and completed works for 2017

Building construction Total $ 968.8 mln (construction of residential and non-residential buildings)

Production of non-metallic mineral $ 370.7 $ 346.1 $ 126.4 $ 86.8 $ 38.8 products (cement, concrete mln mln mln mln mln and products from them)

Specialized construction work (electrical installation, water supply and other construction and installation 38.3 % works) 35.7 %

Facilities construction 13 % (construction of roads, railways, 9 % communications and other structures) 4 % % out of the total region’s volume region’s % out of the total Other

The capital investments in this period amounted to $ 63.8 mln, half of which was invested into construction of residential and non-residential buildings.

The volume of capital investments in construction for 2017

Building construction (construction of residential Total $ 63.8 mln and non-residential buildings)

Production of non-metallic mineral products $ 31.9 $ 22.2 $ 5.9 $ 3.8 (cement, concrete and products from them) mln mln mln mln

Specialized construction work (electrical installation, water supply and other construction and installation works) 50 % 34.8 % Facilities construction 9.2 % (construction of roads, railways, communications 6 %

and other structures) volume region’s % out of the total

40 dia.dp.gov.ua 2.3. Construction

The region takes up a leading position in Ukraine in the construction materials export (10.4%) and has a growth trend. The export of stone, gypsum and cement products increased by 76.8% compared to 2016, export of glass products by more than 18%, and export of ceramic products by 13.5%. More than half of the construction industry export volume in the region falls on ceramic products.

Export branch structure for 2017

10.4 % out of Ukraine Total $ 38 mln % out of % out of the total $ mln Ukraine region’s volume

Ceramic products 23.2 16.8 61

11 8 29 Glass articles

Products from stone, 3.8 4.3 10 gypsum, cement

Import branch structure for 2017

4.8 % out of Ukraine Total $ 91.6 mln % out of % out of the total $ mln Ukraine region’s volume

38.8 21.3 42.4 Products from stone, gypsum, cement

29 10 31.6 Glass

23.8 13.4 26 Ceramic products

dia.dp.gov.ua 41 2.3. Construction

Housing stock structure

The average cost of housing rent Total housing stock - 77.3 mln m² (city of Dnipro)

City Rural area Apartments Central part ($) Outskirts ($)

1-room 170 96

2-rooms 230 130

3-rooms 250 150

62.3 mln m 15 mln m 4-rooms 270 180

The average cost of housing (home), taking into account the land plot value ($) m² The average cost of renting industrial premises In the city of Dnipro 700-1 200

in the suburbs of the city of Dnipro 400-500 1.2 $/m²

The average cost of housing in the primary Rental cost for ofﬁce premises depending market (city of Dnipro) on the objects class

Central part Outskirts Class А 15 per m Apartments ($)/m ($)/m Class В 10 per m 1-room 850-1 000 350-550 Class С 3.8 per m 2-rooms 850-1 000 350-550 Class D 2.7 per m 3-rooms 850-1 000 350-550 Average rental cost 3 per m 4-rooms 850-1 000 350-550 for ofﬁce premises

The average cost of housing in the secondary market (city of Dnipro)

Apartments Central part ($) Outskirts ($)

1-room 17 000-30 000 12 000-16 000

2-rooms 27 000-40 000 17 000-20000

3-rooms 45 000-70 000 19 000-23 000

4-rooms +- 100 000 22 000-25 000

42 dia.dp.gov.ua 2.3. Construction

Suggested directions for investing in the region Data obtained in the result of statistical information analysis on the Ukrainian market $ mln Sheet glass 83.6 100%

Coated galvanized steel 244.9 17.5 93.3%

Mineral wool, glass wool 76.2 161.9 32%

Bituminous coating (ruberoid) 23.9 19.7 55%

Roof tile 4.6 100%

Import Production

Large enterprises of construction industry in the region

Construction materials production

Construction companies

dia.dp.gov.ua 43 2.3. Construction

Suggested directions for investing in the region

Coated galvanized Mineral wool, Sheet glass steel glass wool

The market of Ukraine: The market of Ukraine: The market of Ukraine: $ 83.6 mln $ 262.4 mln $ 238.1 mln Import: $ 83.6 mln (100%) Production: $ 17.5 mln Production: $ 161.9 mln Consumers: Import: $ 244.9 mln (93.3%) Import: $ 76.2 mln (32%) enterprises of civil Consumers: Consumers: and industrial construction, enterprises of civil enterprises of civil citizens and industrial construction, and industrial construction, Core enterprises: citizens citizens • «Vilnohirsk Glass», Ltd Core enterprises: Core enterprises: • «Elvas trading house», Ltd • «Sweetondale», Ltd • «TRADEISOL», Ltd • Private enterprise «RemTekhSnab»

Asphalt products Roof tile (ruberoid)

The market of Ukraine: The market of Ukraine: $ 43.6 mln $ 4.6 mln Production: 19.7 mln Import: $ 4.6 mln (100%) Import: $ 23.9 mln (55%) Consumers: Consumers: enterprises of civil enterprises of civil and industrial construction, and industrial construction, citizens citizens Core enterprises: Core enterprises: • «Elvas trading house», Ltd • «Sweetondale», Ltd

44 dia.dp.gov.ua 2.3. Construction

Proposals for partners in implementing investment business projects of construction industry

New line Creation for the production of Establishment of the production with the thermal insulating and ﬁber-cement frontages polymer coatings on galvanized steel or and reinforced concrete construction aluminum sheet

Project initiator: Private enterprise «Avigeya-ST» Project initiator: Elvas trading house, Ltd Project amount: $ 820 thousd. Project amount: $ 9 mln (company resources $ 240 thousd.) (company resources $ 4.2 mln)

Payback period (PP): 1.5 years Payback period (PP): 6 years Internal rate of return (IRR): 45% Internal rate of return (IRR): 35% Net present value (NPV): $ 1.08 mln Net present value (NPV): $ 4.5 mln Proﬁtability index (PI): 1.3 Proﬁtability index (PI): 27% EBIDA: $ 750 thousd. EBIDA: $ 16 mln

Creation of hollow-core concrete slabs Creation of facade ﬁbro-cement slabs new production production

Project initiator: «Fundament», Ltd Project initiator: «Arivapark», Ltd Project amount: $ 968 thousd. Project amount: $ 5.7 mln (company resources $ 87.5 thousd.) Payback period (PP): 3.2 years Payback period (PP): 5 years Internal rate of return (IRR): 21% Internal rate of return (IRR): 21% Net present value (NPV): $ 10.3 bln

dia.dp.gov.ua 45 2.3. Construction

Land plots for the investment projects implementation

Construction materials production

(bituminous coating, roof covering)

Land plot location: 56, Trybnykiv Ave., Nikopol, in the territory of the State Enterprise Land plot «Nikopol Pipe Plant». information Neighboring land plots: State Enterprise «Nikopol Pipe Plant» (manufacture of pipes and ﬁttings for steel pipes), agriculture lands.

Form of land plot transfer Auction (for sale and rent)

Nikopol City Council Administrator (communal property)

Land plot characteristics substation «Nikopolska-150» Area 3,47 hа, Green-ﬁeld 150/35/6 kW – 0.25 km GDS

3.47 hа Intended use industrial lands

Cadastral number is not available

Distance to the railway station «Tsentralna» – 0.2 km, nearest transport national highway Н-23 – 1 km; corridors the Dnieper river – 1.75 km pumping station

Engineering infrastructure Nikopol 3.47 hа potential connection to the nearest water Water supply supply point (pumping station) – 0.2 km

railway station «Tsentralna» – Water discharge connection to local sewerage network 0.2 km

the distance to the gas distribution Gas supply station (GDS) – 100 m the Dnieper river – 1.75 km connection to electrical substation Electricity supply Nikopolska-150» 150/35/6 kW – 0.25 km Н – 23 - 1 km

The offered territory can also be used for placing industrial production facilities. Land plots for the investment projects implementation 46 dia.dp.gov.ua 2.3. Construction

Construction materials production

(mineral wool, glass wool)

Land plot location: 9/2 Teroshkin Str., Pavlohrad. Neighboring land plots: «Factory of building mixtures «BudMaster», Ltd (dry building Land plot mixtures production), «Plant «Pavlohradspetsmash», Ltd (construction machinery and information equipment lease), «Pavlohrad Bridge Metalworks Plant», Ltd (production of metal structures and non-standard equipment).

Form of land plot transfer Lease, sublease

«Pavlohrad Buddetal», Ltd Administrator (communal property)

Land plot characteristics

Area 2.47 ha, Brown-ﬁeld substation 6 kW single-store (production, storage, boiler room, garage for trucks, repair boxes, utility rooms,

Buildings ofﬁce, dining room, large meeting room, 2.47 hа checkpoint); the area on which the buildings are located is 0.6 ha

Intended use industrial land

Cadastral number 1212400000:03:023:0144 GDS Distance to the railway station «Pavlohrad-2» – 3 km, nearest transport European route Е50 – 1 km, corridors the Samara river – 3 km Pavlohrad 2.47 hа Engineering infrastructure there are 2 artesian wells in the territory, Water supply the distance to the city water channel is 0.7 km, Ø 250 mm.

connection to the existing water discharge Water discharge system – 0.5 km, Ø 800 mm

connection to the existing gas Е - 50 Gas supply pipeline – 0.8 km, Ø 250 mm, 1 km gas distribution station (GDS) – 0.8 km

in the territory there is a substation 6 kW - railway station Electricity supply in the property of «Pavlohrad Buddetal», Ltd «Pavlohrad 2» - 3 km

The offered territory can also be used for placing industrial production facilities. dia.dp.gov.ua 47 2.3. Construction

Construction materials production

(sheet glass / Coated galvanized steel)

Land plot location: Kolomiitsevska Str., Kryvyi Rih. Neighboring land plots: «Transmash», Ltd (repair and maintenance of machinery Land plot and equipment for industrial use, non-specialized wholesale trade), information DTEK «Dniprooblenergo», (electric power supply), «Disa-Nafta», Ltd (production of reﬁned petroleum products, non-specialized wholesale trade), public buildings.

Form of land plot transfer Auction (for sale and rent)

Kryvyi Rih City Council Administrator (communal property)

Land plot characteristics substation 150/35/10 kW Area 15.14 ha, Green-ﬁeld

• Industrial land • 11.02 - for placement and operation substation Intended use 150/6 kW «GPP-2» of the main facilities of the processing, machine-building and other industries

Cadastral number 1211000000:04:381:0060

Distance to the railway station «Kryvyi Rih-Sortuvalny» – 2 km, nearest transport national highway Н-11 – 7 km, corridors regional highway Р-74 – 1 km, Т0434 – 2 km GDS SPS boiler station Engineering infrastructure

potential connection to the nearest water Kryvyi Rih supply point – 0.3 km, Ø 225 mm, Water supply reserve capacity of 225 m/h; Р -74 - IP «Kryvbas» pumping station – 0.5 km 1 km

connection to the existing water discharge Т0434 – 15.4 hа Water discharge system – 2 km, sewage pumping 2 km station (SPS) – 0.2 km railway station operating gas pipeline – 0.8 km, Ø 530 mm, «Kryvyi Rih-Sortuvalny» – power reserve 5,000 m/h, gas distribution Gas supply 1 km station (GDS) – 0.8 km, power reserve – 5000 m/h Kryvyi Rih Airport – 39 km connection to substations: Н - 11 – Electricity supply • substation 150/35/10 kW – 0.9 km, 7 km • substation 150/6 kW «GPP-2» – 0.65 km

The offered territory can also be used for placing industrial production facilities.

48 dia.dp.gov.ua 2.3. Construction

Construction of residential and non-residential buildings

Land plot location: Slobozhanske urban-type settlment, Dnipro district. Land plot Neighboring land plots: public buildings of Slobozhanske urban-type settlement, information farms, forest belts, regional highway T0405.

Form of land plot transfer For sale

Administrator Private person

Land plot characteristics

Area 30 hа, Green-ﬁeld substations substations KTP-66 «GNS-2»- 6/0.4 kW 35/6/0.4 kW agricultural land (it is possible to change Intended use the purpose of the land owner - from 3 to 6 months) gas pipe

existing water line- 100 m Cadastral number 1221455800:02:017:0336 supply

railway station «193 km» – 5 km, Distance to the substation European rout Е50 – 1 km, regional «Greenhouse nearest transport highway Т0405 – 10 m, airport «Pidhorodnie» – Combine» 35/6 - 1.5 km corridors 4 km, the Dnieper river – 9 km Slobozhanske urban-type settlement

Т0405 - 10 m 30 hа Engineering infrastructure Е50 - potential connection point to existing water 1 km Water supply supply – 60 m

connection to sewage facility of Slobozhanske airport Water discharge «Pidhorodnie» - urban-type settlment – 100 m 4 km Gas supply connection to existing gas network – 100 m railway station «193 km» - 5 km connection to substations: Dnipro • complete transformer Electricity supply substation KTP-666 6 / 0.4 kW – 0.6 km; • substations «GNS-2» – 35/6/0.4 kW – 1 km the Dnieper • substation «Greenhouse Combine» 35/6 – 1.5 km river 9 km

dia.dp.gov.ua 49 2.4. Services sector

The service sector occupies 40% of the region's economy, bringing the region to the second place among the Ukrainian regions (9% of the Ukrainian indicator). The growth of Dnipropetrovsk region services sector in 2017 was 10.8%.

Volume of sold services in 2017

85.7 5.7 2.8 1.8 1.4 % out of the 0.9 0.8 0.8 total region’s volume region’s total

Total $ 13 526.2 mln

Wholesale and retail trade, $ 11 590.9 mln repair of motor vehicles and motorcycles

Transport, warehousing, postal $ 777.1 mln and courier activities

Operations with real estate $ 384.3 mln

Professional, scientiﬁc and technical activities $ 238.2 mln

Activities in the ﬁeld of administrative $ 189.8 mln and support services

Financial and insurance activities $ 113.9 mln

Information and telecommunications $ 105.7 mln

Provision of other services types $ 126.3 mln

50 dia.dp.gov.ua 2.4. Services sector

The dynamics of capital investments has a positive trend, demonstrating an increase of 10.6% compared to 2016.

Volume of services sector capital investments in 2017

33.3 28.4 19.2 11.5

% out of the 4.1 1.4 1.5

total region’s volume region’s total 0.6

Total $ 508.7 mln

Operations with real estate $ 169.3 mln

Activities in the ﬁeld of administrative $ 144.4 mln and support services

Wholesale and retail trade, $ 97.5 mln repair of motor vehicles and motorcycles

Transport, warehousing, postal $ 58.6 mln and courier activities

Professional, scientiﬁc and technical activities $ 7.5 mln

Financial and insurance activities $ 7.3 mln

Information and telecommunications $ 3.3 mln

Provision of other services types $ 20.8 mln

dia.dp.gov.ua 51 2.4. Services sector

The service sector ranks third in the region's foreign economic activity. The export of transport services demonstrates a huge demand, namely: the export of railway transport services increased by 148.4% compared to 2016, the export of road transport services by 73%.

Export branch structure in 2017 % out of the total % out of region's $ mln Total $ 130.1 mln 1.2 % out of Ukraine Ukraine volume

01 Transport services 41.4 0.7 31.8

Services in the ﬁeld of telecommunications, 38.5 2.3 29.6 02 computer and information services

03 Business services 17.1 2 13.2

04 Processing of material resources 12.7 0.9 9.7

05 Financial activity services 8.9 12 6.8

06 Travel services 7.0 2.7 5.4

07 Repair and maintenance services 3.6 1.5 2.8

08 Other services 0.9 1.1 0.7

52 dia.dp.gov.ua 2.4. Services sector

Import branch structure in 2017

% out of the total % out of region's $ mln Total $ 255.6 mln 4.8 % out of Ukraine Ukraine volume

01 Business services 78.9 9.8 30.9

Royalties and other services related 72.7 18.4 28.4 02 to the intellectual property usage

03 Transport services 38.3 3.3 15

04 Financial activity services 31.6 7.5 12.4

Services in the ﬁeld 05 of telecommunications, computer 11.0 2.6 4.3 and information services

06 Travel services 8.1 1 3.1

07 Repair and maintenance services 3.8 5.5 1.5

08 Other services 11.2 0.9 4.4

dia.dp.gov.ua 53 2.4. Services sector

Large enterprises in the service sector

Trade

Financial activities

Transport and logistic

IT-companies

54 dia.dp.gov.ua 2.4. Services sector

Information Technology (IT)

Dnipro is one of the largest IT-hubs in the country and makes the top 5 Ukraine cities in terms of the IT-industry development level. More than 170 IT-companies operate in the region. In addition to international IT outsourcing, which is sponsored by such well-known brands as Procter & Gamble, Santander, Iron Mountain, Siemens, AMD, AUTODESK, Swissquote, dozens of leading companies and start-ups are concentrated in the city, specialized training directions in universities are developed and hundreds of events related to the information technologies sphere are held. One of the largest international Ukraine IT-conferences - ITEM Business & Technology is held annually in Dnipro. The experts from companies-giants: Google, Facebook, Pinterest, Siemens, Microsoft, experts from the USA, Great Britain, Canada and Europe countries have already visited the Conference as speakers.

Dnipro IT-community has more than 7 000 professionals, 40% of them have the Senior level. With the current dynamics of market growth, it is expected that by 2025 it will double by the number of specialists. The main directions for which Dnipro IT-companies create products and work with customers are:

ﬁnancial industry (world banks); energy;

medicine; gaming and automotive industries;

e-commerce; security.

As far as long-term partners of local companies are members of the Fortune 500 list, the level of quality of services and developments is of great importance. That is why Dnipro companies expertise is confirmed by international certification and ISO quality standards, such as: 9001, 27001, 9201: 2008 Microsoft Gold Certified Partner Accelerance, Progress Sitefinity also partners of Amazon web services, Google Cloud, certified GA-partner. Clients of Dnipropetrovsk region IT-enterprises are:

dia.dp.gov.ua 55 2.4. Services sector

Education

In the region there are 7 higher education institutions, which annually produce more than 1000 students in the areas related to IT: • National Technical University «Dnipro Polytechnic»; • Ukrainian State University of Chemical Technology; • Dnipropetrovsk National University of Railway transport named after Academician V.Lazaryan; • Oles Honchar Dnipro National University; • University of Customs and Finance; • State Higher Educational Institution Prydniprovsk State Academy of Civil Engineering and Architecture; • National Metallurgical Academy of Ukraine.

Dnipro universities are open to dialogue with the IT-business and specialized organizations, which contributes to increasing the IT-specialists number required for the market. So, as of September, 2018 Alfred Nobel University has opened a new specialty «Computer Science».

Average wages of programmers in Dnipropetrovsk region

Development

Software programming language Junior Software Software Senior software Engineer Engineer Engineer

Java $ 500 $ 1 700 $ 3 100

C#/.NET $ 575 $ 1 750 $ 2 775

PHP $ 600 $ 1 500 $ 2 700

JS $ 600 $ 1 825 $ 3 000

C++ $ 600 $ 2 000 $ 2 750

Information Source: www. dou.ua

56 dia.dp.gov.ua 2.4. Services sector

In the annual ranking of the best IT-services providers «The Global Outsourcing 100» for the year of 2017, there were 13 companies with ofﬁces in Ukraine, 5 of which have ofﬁces in Dnipropetrovsk region.

№ Name Web-site Logo

1 Epam www.epam.com

2 SoftServe www.softserve.ua

3 Luxoft www.luxoft.com

4 Ciklum www.ciklum.com

5 AMC Bridge www.amcbridge.com.ua

IT Dnipro Community www.itcluster.dp.ua is an open, public organization that counts 27 major Dnipro IT-companies. Today, community members are Archer Software, DataArt, Luxoft, Sitecore Ukraine, SoftServe, ISD, 111 Minutes, AMC Bridge, Dinarys, Exigen Services, Mobindustry, Yalantis, Level Up, Workrocks, WebiNerds, Daxx, iSKY.SOLUTIONS, RubyGarage, LANARS, Comparus, Civenty, Kaiiax, PF-Service, NuRD, Paciﬁc NorthWest, STEP Computer Academy, HeadWorks. IT Dnipro Community is working to implement systemic changes in Dnipropetrovsk region business environment, create favorable conditions for the IT-professionals work, development and improve the specialized education quality. In the last two years of successful and effective work, the community has implemented more than 10 projects, among which there are necessary to distinguish: analytical research of the Dnipro IT-market, IT Dnipro Conference and IT Biz MeetUp project, which not only promotes the IT-industry, but also improves region IT-Climat, interacting with IT-business.

dia.dp.gov.ua 57 2.4. Services sector

Transport and logistic infrastructure

Total amount of direct Transport sphere Volume of direct investments into services investment (cumulative sum) USD 63.8 mln USD 1.5 bln

Total amount of direct Transport sphere Capital investments investments into services in 2017 USD 55.4 mln USD 463.8 mln

Total amount Transport services Volume of services sold of services sol in 2017 USD 777 mln USD 777 mln

Total amount Transport sphere of export-import services

Export-import services Export Import Export Import in 2017

USD 41.4 mln USD 38.4 mln USD 130.1 mln USD 255.6 mln

Motor transport connection

The territory of Dnipropetrovsk region is BELARUS crossed by two European routes E50 (Paris - RUSSIA BELARUS Prague - Uzhhorod - Vinnytsia - Dnipro) and E105 Chernihiv (Kirkenes (Norway) Kharkiv - Novomoskovsk - POLAND Sumy RUSSIA POLAND Kyiv Simferopol). Three national highways H11 (Dnipro Kharkiv - Mykolaiv - Odesa), H08 (Dnipro - Kyiv), Poltava

H23 Kropyvnitskyi - Kryvyi Rih, Nikopol - SLOVAKIASLOVAKIA Dnipro Zaporizhzhia) connect Dnipropetrovsk region Kryvyi Rih MOLDOVA with the seaports, capital and the industrial HUNGARY Mykolaiv HUNGARY centers of the region. Odesa ROMANIA The largest transportation hub of the region is ROMANIA the city of Dnipro. The highways network SERBIA connects it with all towns and urban-type SERBIA settlement of the region and other regions of Ukraine. The volume of transported cargo in 2017 amounted to 328 mln tons.

58 dia.dp.gov.ua 2.4. Services sector

Highway transportation ports

KHARKIV There are 6 highway transportation ports KYIV in the territory of the region: POLTAVA LUHANSK

KREMENCHUK • «Autoport Yuzhnyi», LLC; CHERKASY DONETSK • «Agrosoyuz-Terminal», LLC DNIPRO www.asterminal.com.ua; KRYVYI RIH ZHAPORIZHZHIA • «Metenergomash», LLC NIKOPOL MARIUPOL www.mem.dp.ua;

BERDIANSK RUSSIA MYKOLAIV • «Dnepr Logistic Service», LLC; AZOV SEA KHERSON • PE «Brok-Alliance»; YUZHNE MOLDOVA KERCH ODESA • Branch of Transport Service Center «Liski» CHORNOMORSK

FEODOSIA on Prydniprovska railway www.liski.ua which BLACK SEA SIMFEROPOL IZMAIL provide customs clearance, storage and SEVASTOPOL transshipment of goods.

Railway transportation service KHARKIV KYIV

The railway transportation is the main mode of POLTAVA LUHANSK Dnipropetrovsk region transport. By saturation CHERKASY KREMENCHUK DONETSK DNIPRO with railways, the region is the leader in the state, KAMIANSKE UKRAINE ZAPORIZHZHIA the network of railway tracks is 1 023.7 km. KRYVYI RIH The operator of the railway transportation NIKOPOL MARIUPOL service in Dnipropetrovsk region is the regional BERDIANSK RUSSIA AZOV branch «Prydniprovska Railway» owned by the MYKOLAIV KHERSON SEA YUZHNE MOLDOVA KERCH PJSC «Ukrainian Railways». The volume of ODESA CHERNOMORSK transported goods in 2017 amounted to 83 951.0 FEODOSIA BLACK SEA SIMFEROPOL thousand tons. IZMAIL SEVASTOPOL

Railway hubs

Dnipro branch of «Center of Transport Service «Liski» of the Ukrainian Railways Public Joint Stock Company www.liski.ua includes a network of rail freight terminals that offer: • customs complex with the representatives of state customs control, environmental and phytosanitary control; • arrival place of highway transport with cargo under customs control; • covered warehouse hangar type; • platform for the processing of heavy goods which, is equipped with gantry cranes (with the possibility of connecting an electromagnetic washer to unload metal from gondola cars); • platforms for processing 3-tons, 5-tons, 20-tons, 40-foot containers.

dia.dp.gov.ua 59 2.4. Services sector

All cargo facilities have the ability to simultaneously service rail and road vehicles. To meet the needs of customers, the department has production sites in such cities of Dnipropetrovsk region as: Kamianske, Pavlohrad, Novomoskovsk, Synelnykove and settlements: Pokrovka, Vasylkivka, Partyzanske.

River transport

From north to south, Dnipropetrovsk region KHARKIV KYIV

is crossed by the main water artery of the country POLTAVA

Dnipro LUHANSK the Dnieper river. KREMENCHUK CHERKASY The river port of the region are: DNIPRO DONETSK KAMIANSKE • «Ukrrichﬂot», JSSC UKRAINE ZAPORIZHZHIA www.urf.ua (Dnipro, Nikopol); KRYVYI RIH NIKOPOL MARIUPIL

MYKOLAIV • «River port», PJSC RUSSIA Dnipro BERDIANSK NOVA KAKHOVKA www.rechport.pat.ua (Kamianske); AZOV YUZHNE KHERSON SEA • Freight terminal of «Aquarelle», LLC KERCH MOLDOVA ODESA SKADOVSK CHORNOMORSK www.aquarelle.net.ua (Dnipro). BILHOROD-DNISTROVKYI YEVPATORIA FEODOSIA IZMAIL The structure of «Ukrrichﬂot», JSSC includes BLACK SEA YALTA

a shipbuilding and shiprepairing enterprise, which REN SEVASTOPOL provides vessels with technical maintenance, grain elevator, which provides services for acceptance and shipping, concentration and storage of grain, oilseeds and industrial crops. The Container line «Tavria Line» is the ﬁrst Ukrainian line that delivers cargo in sea containers to the central region of Ukraine - Dnipropetrovsk region, using its own vessels. Tavria Line operates in the direction of Constanta (Romania) – Dnipro (cargo terminal «Aquarelle», LLC). The vessels of the «river-sea» type provide direct international cargo transportation with access to the Black, Marmara and Mediterranean seas. Moreover, a promising trend is actively developing - it is a cabotage transportation of containers between the ports of the Black Sea and river ports of the Dnieper river. The region has the largest river ports of Ukraine, which fully meets the needs of adjacent industrial regions in the transportation, storage of various cargoes: metal, grain, coal, raw materials for building materials, containers, etc. Dnipropetrovsk Investment Agency offers sites for investment projects in the ﬁeld of port infrastructure.

Air transport

In Dnipropetrovsk region there are two international airports and cargo terminal that connect the region with countries of the far and near abroad. The international airport «Dnipropetrovsk» (DNK) is «4C» class. Runway strip: length - 2850 m, width - 44 m. The international air transportations are carried out by aircrafts of Boeing, Airbus, Embraer, AN and others. The airport accepts helicopters and light aircraft of all types, around the clock.

60 dia.dp.gov.ua 2.4. Services sector

There is 1 operating terminal with a capacity of 700 passengers per hour. It is planned to reconstruct the airport complex to expand the geography of ﬂights and attract the world's leading airlines to the region. The international airport «Kryvyi Rih» (KWG) is «B» class, with a terminal for 200 passengers per hour. The cargo terminal of Aviation Transport Company «Yuzhmashavia» provides transshipment and customs clearance of goods. The Aviation Transport Company «Yuzhmashavia» has its own cargo aircraft. Dnipropetrovsk Investment Agency offers investment projects for the creation of a cargo HUB and business terminal in the territory of ATC «Yuzhmashavia» at the airport «Dnipro».

Pipeline transportation

In the territory of Dnipropetrovsk region there are main pipelines and compressor complexes for the transportation of ammonia, natural gas and oil, which are used by the enterprises of the region. This transport pipeline network makes it possible to provide the necessary raw materials for an enterprise producing fertilizers, chemical products, liquefied gas, as well as oil refining products, the import of which occupies a significant share of the Ukrainian market.

Communications

The telecommunication infrastructure is successfully developing in the region. There is a creation of ﬁber-optic and wireless data transmission channels, providing high-quality telecommunications services to all consumers in the region. The area is provided with mobile communication in GSM and CDMA. Most of the territories are covered by high-speed wireless Internet using 3G / 4G technology.

dia.dp.gov.ua 61 2.4. Services sector

Proposals for partners for investment business projects implementation

As a result of the analysis, based on expert opinion, world trends, as well as statistical data, it was found necessary to create the objects of logistics infrastructure in the region (air cargo hub, cargo handling and storage centers, automobile and port infrastructure). In the region, there is a growing demand for maritime transport services by river-sea vessels, business aviation and leasing of machinery and equipment.

Construction of the modern logistic HUB for Construction of modern business terminal for cargo handling on aviation and other types of services provision to VIP-passengers in the territo- transport in the territory of acting terminal station ry of acting aviation platform in the international in the international airport «Dnipropetrovsk» airport «Dnipropetrovsk»

Project initiator: Aviation Transport company Project initiator: Aviation Transport company «Yuzmashavia» SE «PA UMZ named after A.Makarov» «Yuzmashavia» SE «PA UMZ named after A.Makarov» Project amount: $ 2 mln Project amount: $ 7 mln Payback period (PP): 5 years Payback period (PP): 5 years Internal rate of return (IRR): 18% Internal rate of return (IRR): 18% Net present value (NPV): $ 0.6 mln Net present value (NPV): $ 1.8 mln Proﬁtability index (PI): 127% Proﬁtability index (PI): 126% EBIDA: $ 3.8 mln EBIDA: $ 14.6 mln

Creation of logistics center for storage and Creation of logistic infrastructure on the land transportation of agricultural products plot, which is free from construction and located «GREEN MARKET» on the area of 97 ha along the E-105 highway

Project initiator: DIA Project initiator: «VelLCV», Ltd Project amount: $ 8 mln Project amount: $ 5.5 mln Payback period (PP): 5 years (company resources $ 2.75 mln) Internal rate of return (IRR): 22% Payback period (PP): 5.7 years Net present value (NPV): $ 3.3 mln Internal rate of return (IRR): 14% Proﬁtability index (PI): 142% Net present value (NPV): $ 6 mln EBIDA: $ 19 mln Proﬁtability index (PI): 112% EBIDA: $ 6 mln

62 dia.dp.gov.ua 2.4. Services sector

Land plots for the investment projects implementation

Construction of air-cargo HUB

modern business terminal

Land plot location: Airdrome, ATK «Yuzmahavia», Dnipro. Land plot Neighboring land plots: International airport «Dnipropetrovsk», Aviatorske information urban-type settlement.

Form of land plot transfer Creation of a join venture

Aviation Transport Company Administrator «Yuzmahavia» SE «PA UMZ named after A. Makarov»

Land plot characteristics

Area 20.9 ha, Brown-ﬁeld

• own ﬂeet of cargo air transport; • navigation software; Transport 20.9 hа • aircrafts maintenance engineering; infrastructure • customs terminal; • airstrip, highways and railways lines.

Intended use air transport services

Cadastral number 1221486200:01:002:0109 Н-08 - Dnipro Distance to the 1 km national highway Н-08 – 1 km, nearest transport distance to Dnipro – 5 km corridors Dnipro - International

5 km airport «Dnipropetrovsk» Engineering infrastructure

Water supply 20.9 hа

Water discharge is available and does not require Gas supply additional investments

Electricity supply

dia.dp.gov.ua 63 2.4. Services sector

Construction of an agricultural aviation airdrome

Land plot location: Petropavlivka village council, Petropavlivka district. Land plot Neighboring land plots: State vocational and technical school «Mezhova vocational information school», agricultural land (shares).

Form of land plot transfer Auction (for sale, for rent)

Dnipropetrovsk Regional State Administrator Administration (state property)

Land plot characteristics

Area 19 ha, Green-ﬁeld substation Raitsenter 35/10 kW - 2 km Intended use industrial land

GDS Cadastral number 1223855100:01:001:7162

railway station «Brahynivka» – 2 km, Distance to the European route Е50 – 0.5 km, nearest transport power transmission regional highway Т0424 – 4 km, corridors line 35/10 kW the Samara river – 6 km

Engineering infrastructure

Water supply well Petropavlivka urban-type settlement

Water discharge collector

distance to the nearest gas distribution the Samara station (GDS) is 2.5 km, to the existing gas river – 6 km Gas supply pipeline – 2.5 km (high power), 19 hа reserve – 55 000 m/ hour Т0424 - 4 km Е50 - 0.5 km distance to the existing power transmission railway station Electricity supply line 35/10 kW – 5 m, connection to the «Brahynivka» – 2 km substation Raitsenter 35/10 kW – 2 km

64 dia.dp.gov.ua 2.4. Services sector

Creation of agricultural logistics objects *

Land plot location: Pryvokzalna Str., Vilnohirsk. Land plot Neighboring land plots: «Sandero», Ltd, (non-specialized wholesale trade), information subsidiary enterprise of «Vilnohirsk elevator» «Zahotzerno», Ltd, shop «Building materials», railway station «Vilnohirsk», railway track, public buildings.

Form of land plot transfer Auction (for sale, for rent)

Vilnohirsk City Council Administrator (communal property)

Land plot characteristics

Area 0.44 ha, Green-ﬁeld substation 150/35/10 kW

Intended use industrial land

Cadastral number 1210200000:01:036:0001

railway station «Vilnohirsk» – 0.13 km, existing gas Distance to the pipeline regional motorway Т0415 – 0.5 km, nearest transport International airport «Dnipropetrovsk» – corridors 100 km 0.44 hа water Engineering infrastructure

potential connection to centralized water Water supply supply – 0.1 km, Ø 200 mm, reserve Vilnohirsk capacity 100 m/ h Т0415 - connection to the existing sewage 0.5 km Water discharge collector – 0.13 km, Ø 600 mm

connection to the existing gas pipeline – 0,44 hа 0.032 km, Ø 100 mm, reserve capacity - Gas supply 2 000 m/ h, gas distribution station (GDS) – 3.0 km, reserve capacity 2 000 m/h railway st. «Vilnohirsk» - International airport 0.13 km «Dnipropetrovsk» - connection to a substation Electricity supply 100 km 150/35/10 kW – 0.1 km

* The offered territory can also be used for placing elevator construction.

dia.dp.gov.ua 65 2.4. Services sector

Creation of a logistics center, a river port, an elevator

(transportation by river-sea vessels, port infrastructure creation)

Land plot location: Luibymivka Village Council, Dnipro district, beyond the village Land plot boundaries. information Neighboring land plots: the Dnieper river, Petrovskyi stone quarry, abandoned farms, summer cottages, beams, agricultural lands.

Form of land plot transfer For sale

Administrator Private person

Land plot characteristics gas pipe line – Area 14 ha, Green-ﬁeld 0.8 km

agricultural land (there is a possibility Intended use of changing the land intended use by the owner – from 3 to 6 months)

Cadastral number 1221484000:04:001:0323 substation «Dibrova» Distance to the 35/10 – 2.2 km national highway Е105 – 14 km, nearest transport the Dnieper river – 0.1 km, Dnipro – 12 km Luibymivka Village Council corridors Dnipro – 12 km

the Dnieper river - 0.1 km Engineering infrastructure

Water supply well

Е105 – Water discharge collector 14 km

distance to the nearest gas pipeline Gas supply 14 hа is 0.8 km, low power

distance to the substation «Dibrova» Electricity supply 35/10 – 2.2 km

66 dia.dp.gov.ua 2.5. Industrial parks

Industrial parks are one of the most common types of free economic zones, created in both economically developed countries and emerging states.

It is checked by international experience and time-proved mechanism of economy industrialization, attraction of large investors to the region, advanced technologies, local producers support, employment rehabilitation and balanced regional development.

The transparent land relations, existing engineering and transport infrastructure, local preferences are guaranteed to a potential investor while placing production facilities in industrial parks of Dnipropetrovsk region.

dia.dp.gov.ua 67 2.5. Industrial parks

Industrial park «PAVLOHRAD»

Engineering, chemical and light industry, construction materials production, logistics complex, electronics, IT-technologies

Land plot Project location: Pavlohard district. information Initiator resources for project implementation: land plot.

Contract on conducting economic Mechanism activity within IP «PAVLOHRAD» or cooperation (sublease)

Dnipropetrovsk Regional State Initiator Administration (State property)

Land plot characteristics 250 ha, with the possibility of expanding Area to 1 000 ha gas station Intended use Industry land substation 150/6/6 kW Cadastral number 1223581800:03:001:0010 water supply connection railway station. «Pavlohrad-2» – 1 km, unit Distance to the European route Е50 (М-04) – 1 km, nearest transport International airport corridors «Dnipropetrovsk» 93 km, River port Dnipropetrovsk – 90 km. IP Managing SE «Investment-Innovation Center» Pavlohrad district company

railway station. Engineering infrastructure «Pavlohrad-2» – 1 km Water supply 205 thousd. m/ h

Water discharge 500 thousd. m/ h Е50 – International airport 1 km Gas supply 3 thousd. m/ h «Dnipropetrovsk» - 93 km Electricity supply reliability category – II Voltage in the network – 6 kW 250 hа Electricity supply Estimated power: • beam – 500 kW; • power – 5 000 kW.

68 dia.dp.gov.ua 2.5. Industrial parks

Industrial park «INNOVATION FORPOST»

Engineering, instrument making, transport innovations center

Project location: Slobozhanskyi Ave., Dnipro. Land plot Initiator resources for project implementation: land plot, engineering and information transport communications.

Industrial park Contract on conducting «INNOVATION FORPOST» Mechanism economic activity within or cooperation IP «INNOVATION FORPOST» (lease)

Dnipro City Council Initiator (communal property)

Land plot characteristics

Area 50 hа

Intended use Industry land

Cadastral number 1210100000:04:006:0125 river port – 3.8 km 3 railway stations within a radius of 3 km, Distance to the Dnipro European rout Е50 – 4 km, railway station nearest transport «Nyzhnodnip- Regional highway Т0410 – 0.1 km, International airport corridors «Dnipropetrovsk» – rovsk-vuzol» – 3.1 km the Dnieper river – 1.5 km 21.2 km

IP Managing is not selected company

Engineering infrastructure

Water supply pumping water supply and water disposal are in the territory Water discharge Kashtanova Str.

the city of Kharkiv Slobozhanskyi Ave. territory of gas distribution stations (GDS) of low Gas supply «Interpipe NTRP», PJSC and medium pressure are in the territory Stolietov Str.

the Dnieper Electricity supply 24 MW is in the territory river

dia.dp.gov.ua 69 2.5. Industrial parks

Industrial park «KRYVBASS»

Engineering, logistics, construction materials

Land plot Project location: Fabrychna Str., Kryvyi Rih. information Initiator resources for project implementation: land plot.

Mechanism Contract on conducting economic for cooperation activity within IP «KRYVBASS» (lease).

Kryvyi Rih City Council Initiator (communal property)

Land plot characteristics sewage pumping Area 26.03 hа station – 0.8 km substation Intended use Industry land «Shovkopriadna fabryka (ShPF)-150» Cadastral number 150/35/10 kW – 0.05km 1211000000:04:381:0056

Distance to the railway station «Kryvyi Rih - Sortuvalnyi» – 2 km, nearest transport national highway Н-11 – 5.5 km, corridors regional highway Р-74 – 1 km, Т0434 – 0.8 km

IP Managing GDS is not selected company

Engineering infrastructure

potential connection to the existing water Kryvyi Rih Water supply Р-74-1 km pipe Ø225 mm, 1 MPa – 1 km

connection to Kryvyi Rih sewage 26 hа Water discharge facility – 2 km, sewage pumping station – 0.8 km Т0434 – connection to the existing network - 0.8 km Gas supply throughput of 5500 m³ / h – 2 km, gas distribution station (GDS) – 1.9 km airport railway station Kryvyi Rih – «Kryvyi Rih - 35 km Sortuvalnyi» – 1 km connection to substations: • substation «Shovkopriadna fabryka Electricity supply (ShPF)-150» 150/35/10 kW – 0.05 km; Н-11 – • substation «BPF-150» 150/35/10 kW – 2.5 km 7 km

70 dia.dp.gov.ua About DIA

Dnipropetrovsk Regional Investment Agency has eight years of experience in maintaining investors in the region. DIA services were used by such companies as: Glass Trösch, Caparol, Maïsadour Semences, Brukland and others. The main task of the Agency is to assist investors in the projects implementation in the region.

In the framework of cooperation and partnership, DIA:

Provides primary analytical information, which is necessary to make investment decisions. Carries out the initial plot selection in accordance with the investors’ needs (the Agency database has more than 449 plots with total area of 4 797 ha). Makes investment project implementation road map. Provides services of personal investment manager. Assists in selection of potential partners with corresponding competence (the Agency has the Competence Database, which accounts for more than 1 000 companies).

The large companies, which have already used DIA's services:

dia.dp.gov.ua 71 Useful Links

DIA investment portal www.dia.dp.gov.ua Section «Doing Business» contains detailed and up-to-date information on starting business, investor support, land allocation.

iGov electronic government services portal www.igov.org.ua

System of open electronic procurement – Prozorro www.prozorro.gov.ua

Administrative services centers (ASC) www.e-services.dp.gov.ua

The Main Directorate of General Ofﬁce of State Fiscal Service in Dnipropetrovsk Region www.dp.sfs.gov.ua The website provides information on customs posts, taxpayer service centers and the taxation system (Electronic Payer Cabinet www.cabinet.sfs.gov.ua)

In publication it was used data obtained from the State Statistics Service of Ukraine, the Main Directorate of General Office of State Fiscal Service in Dnipropetrovsk Region, as well as regional enterprises official open sources (enterprises official websites).

72 dia.dp.gov.ua Dnipropetrovsk Regional Investment Agency

2, O. Paul Ave., ofﬁce 538, Dnipro city

tel.: +38 (056) 742 86 87 e-mail: [email protected]

DIA.DP.GOV.UA

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