INVESTMENT PASSPORT OF DISTRICT, REGION

2017

1 WELCOME SPEECH

The investment passport of Berezhany district is composed by the Department of Economic Development of Berezhany District State Administration. It contains high- quality, actual and exhaustive information on competitive advantages, investment possibilities, materials about economic potential of the district with propositions to establish international cooperation for opening and realization of its investment potential. It provides information on investment objects and free land plots, indication of tourist routes and hotels, historical and architectural information, competitive advantages of investing in district economy. We hope that investment passport will be not only the source of information for business but also increase investment attractiveness of the district, will became an effective tool for establishibg business contacts with potential investors, will favour in positive decisions on investing in the territory of Berezhany district.

Berezhany District State Administration

2 COMPETITIVE ADVANTAGES

- availability of local natural and raw materials base (there are 35,100 hectares of agricultural land, 50 deposits of mineral resources on the area of 109.33 hectares);

- availability of real estate objects and land plots uninvolved in a production;

- unique historical, architectural and natural heritage (unique historical and architectural monuments, Nature Reserve fund);

- favourable natural and climatic conditions (for realization of investment projects in agro-industrial complex);

- educational basis for professional training in different branches of economy (there is Separated Department of National University of Life and Environmental Sciences of on the territory of Berezhany district);

- convenient transport communication (Berezhany district is situated in direct closeness to the transit centers of Western Ukraine and to the border crossing points with European countries);

- labour resources (11,885 persons of economically active population).

CONTENT

3 CHAPTER 1. DESCRIPTION OF THE DISTRICT

1.1 Short description of the project. 1.2 Demography and human resources. 1.3 Raw materials and resource potential. 1.4 Economic potential. 1.5 Transport infrastructure. 1.6 Success stories.

CHAPTER 2. PROPOSITIONS FOR THE INVESTORS

2.1 Priority branches for investment. 2.2 Strategic investment projects, wchich might be proposed to investors. 2.3. Free objects of realty. 2.4. Free land lots. 2.4.1. Free land lots for placing industrial parks. 2.4.2. Free land lots for renewable energy (growing of energy crops). 2.4.3. Free land lots for implementation renewable energy for placing wind and gelio stations.

CONTACT INFORMATION

CHAPTER I. DESCRIPTION OF THE DISTRICT

4 1.1. SHORT DESCRIPTION OF THE DISRTRICT

The territory of Berezhany district covers an area of 661 km2. It is situated in the west of Ternopil region and borders with Pidgaytsi, Kozova, districts of the region, Rohatyn district of Ivano-Frankivsk region and Peremyshlyany district of region. The distance to the city of Ternopil is 54 km, to the city of Ivano-Frankivsk – 105 km, to the city of Lviv – 100 km. The border points are: in the north – Krasnopushcha village, in the south – Slovyatyn, in the east – Sonyachne village, and in the west – Shaybivka village. Berezhany district is a part of Opillya geographical area, which is the highest and most split part of the Podillya Upland. The territory of the region is mostly flat with occasional high hills, which gradually turn into wide valleys. And only to the north of Berezhany – at the point of the watershed of the Zolota Lypa and the Narayivka rivers – like a strand stretches Berezhany mountanarous, hillaous and forested area. Here there is the highest point of the district – the Popelyha hill (448 m). The climate of Berezhany district, as that of any other district in the region, is formed under the influence of solar radiation, atmospheric circulation and other geographical factors. The duration of sunshine per year is 1,800 hours. The district

5 clearly expressed all seasons. Fluctuations in average monthly wind speeds are small – in the range of 2-3 m/s. 1.2. DEMOGRAPHY AND HUMAN RESOURCES

The territory of Berezhany district includes one city and 56 villages. The population is 40,844 people. Rural population - 21,154, the urban population - 19,690. Urban population - 49%, rural population - 51%.

SEX STRUCTURE

Key indicators of labor market in the Berezhany region Indicators Unit of 2015 2016 measurement Economically active population persons 11885 11717 Number of employeesofn economic activity – total persons 5205 2503

including: - - industry persons 455 219 - agriculture, forestry and fishery persons 211 107 - construction persons 132 133 Number of workplaces created in all sectors of places 629 312 economic activity including: - industry places 29 18 - agriculture, forestry and fisheries places 8 17 - construction places 9 7 Number of employees in public institutions persons 2964 1415 (excluding industries of culture)

The structure of employees by economic activities

6 According to the statistics the average monthly salary (as of January 1, 2017) is 3435 USD. In 1293 the district staff members, 92.9 is the average level in the region in the city - 3258 UAH. in 3316 full-time employees, 88.2 is the average level in the region. By 2016 the District Employment Service registered 1201 unemployed for 16 people, more than the same period last year (1185 people). Totally for this period in 1842 benefited from the services of the unemployed. At employment centers were registered 617 unemployed (as of 1 January 2017), for 25 people less than the same period last year (642 people).

1.3. RAW MATERIALS AND RESOURSE POTENTIAL

Raw materials and resource potential in Berezhany district (th. ha): agricultural resources 37.5 forest resources 29.5 water resources 0.931 minerals 0.109

There are 50 mineral deposits with the area of 109.33 hectares registered in Berezhany district, including: - 15 sand quarries with the area of 26.22 hectares; - 7 limestone quarries with the area of 19.94 hectares; - 13 clay quarries with the area of 18.88 hectares, suitable for production of bricks, tiles, pottery; - 14 stone quarries with the area of 23.09 hectares;

7 - 1 peat quarry with an area of 21.2 hectares on the territory of Berezhany City Council, which needs recultivation. Berezhany bentonite clay deposit with the stocks of 0,426 mln. tons, which is considered a state reserve, is not being developed yet. Quartz sands suitable for glass and construction production are also important. In particular, only Rohachyn deposit has been estimated for production of glassware; there is a possibility to develop Potutory deposits with approved reserves of almost 30 million tons of limestone. The outskirts of Berezhany are rich in minerals, especially construction materials. Limestone, which is good for facing material and used for lime burning, is extracted by open method. The extraction of sand and clay are lead on an industrial scale. District construction companies and enterprises can be fully provided with all kinds of raw materials out of their own mineral resources. Reserves of cement raw materials (limestone, clay, gypsum) are identified and evaluated in Berezhany district.

Water resources The river system of Berezhany district is represented by the Zolota Lypa, Narayivka, Bybelka rivers and their creeks, which belong to the group of small rivers of the dissected plains. The river network is quite developed, its average density within the district is 0.47 km / km². In general, the hydronetwork density is higher in the northern part of the district. In the past, the area was rich in ponds, now they are much less in number. The largest of the ponds in the district is Berezhany Pond. Its area is 240 hectares, and the volume of water is 4.3 million m³. Quite large in the district scale is Urman Pond. There is also a pond near the villages of Potutory, Vilkhovets and other settlements, but they are of small size. In terms of hydrogeology, the district is a part of the Volyn-Podillya artesian basin, characterized by the spread of groundwater horizons system in Paleozoic, Mesozoic and Cenozoic sediments. Fresh water is available to a depth of 300-400 m. Mineral water deposits can be found within the district, although they are still not well- explored. Exploration works of the “Ukrheoksiptazhminvod” in Lityatyn village detected sulfurated waters containing 17 mg/l of hydrogen sulfide with the mineralization of 2.8 g/l. The predominant elements of their salt composition is calcium sulfate.

Forest resources The total area of forest land in Berezhany district is 16,548 thousands hectares. The existing wood-burning potential timber production but needs alternative energy is 10-12 thousand cubic meters / ha.

Energy resources

8 There are 25 lands for the construction of wind and of helio stations. Building plots ranging from 3.8 to 140 hectares, the average area - 20-30 hectares of land located outside the settlements at a distance of not less than 500 meters from residential buildings, altitude ranges from 360 to 430 meters above sea level. All sites have the ability to connect to the power grid from 10 kV to 35 kV. Also, the district is 110 kV transmission line. Slope areas to the southwest, northwest direction or horizontal. Near enough wind potential of the territory where wind power is: average 6-9m / s, the maximum average of 8-14 m / s, maximum 11-20m / s.

1.4. ECONOMIC POTENTIAL The analysis of economic potential of the district indicated on the expedience of investments in and development of the followings industries of economy: - industry of food and non-food sector (modernization of capital equipment with the purpose of production of new competitive products); - industry of agricultural complex (production, processing of agricultural production, formation of agricultural service cooperatives); - development of tourism, recreational and other infrastructure objects.

There are 12 industrial enterprises on territory of Berezhany district:

No Name of enterprise Type of production 1 Asndryiv R.Т. PE bakery products 2 Flyuk PE bakery products 3 Prodservis JV LLC pasta, oil, vinegar 4 Krona LLC canned fruits and vegetables 5 Ahrospetshosp PE canned fruits and vegetables, juices 6 Pidvysoke Construction Materials Plant lime, construction sand, lime flour, carbonate LLC rocks, gravel 7 Khrystyna LLC corrugated packaging 8 Potutory woodworking factory LLC lumber, artificial parquet 9 Sanza Top LLC wood products 10 Uspikh LLC lumber, artificial parquet 11 Kenner-Ukraine LLC metal and plastic constructions 12 Second repair factory of communications repair and maintenance of transmission facilities SE equipment

11 enterprises with a foreign capital carry out their activity on territory of Berezhany district: Zhyva Zemlya of Potutory LLC, Sanza Top JV LLC, Ekoprod-invest LLC, BOSS VKF LLC, Ukrellada LLC, UkrLytEksport LLC, Luba International

9 Ukraine LLC, Intehrokomerts PE, Palma Cuba LLC, Maderas Ukraine SE, Dukat-Euro LLC. The largest investor in Berezhany district is Sanza Top JV LLC with the amount of foreign direct investments of 798.0 thousands Euro. The volume of exports in the district during 2016 was - 2300.0 thousand dollars USA. Imports of goods not carried out. As a result of the introduction of measures to substitution of natural gas in the district it has been created the market of solid fuels in such amounts each year: 2400 cubic meters of firewood, or 1.2 tons of wood; - 0,6 thousands tons of briquettes or pellets; - 1200 tonnes of wood grafts.

1.5. TRANSPORT INFRASTRUCTURE

A transport network of the district includes a 228.6 km operating length of motorways of state value with hard surface, 176.6 km of communal roads with hard surface, and 29 km of railways. Regular passenger transportations is carried out in the district by a 21 subject of entrepreneurial activity, including 1 – legal and 20 physical entities. The rout network of the district consists of 32 routes, including: 3 city, 16 suburban, 13 intercity and interregional routes with 27 busses.

1.6. SUCCESS STORIES

10 Name of the project (company) The main points of the project EU/UNDP “Community Based Implemented 4 microprojects during 2015-2016 by NGOs of Approach to Local Development implementing measures of energy saving Project” (III stage) EU/UNDP “Community Based By ASC “Krinichki” implemented 2 microprojects during Approach to Local Development 2015-2016 years by purchasing agricultural machinery and so Project” (III stage) on. Initiating of creation agricultural During 2016 year were formed regional agricultural service service cooperatives cooperative “Krynychky”, agricultural service cooperative “Goduvalnytsja” and milk collection point in the village Kurjany. Contest from the state fund for During 2016 year was implemented 13 projects of total sum regional development 6234,0 thousands hryvnyas State Fund for Social Development During 2016 year was implemented 3 project of the total sum 2147,55 thousands hryvnyas Most of the action was of economic benefit and was aimed at reducing energy consumption. Following the activity decrease energy consumption to 232.051 tons of standard fuel and achieved economic effect from the introduction in the amount of: - 1,42 mln. hryvnyas. Innovations introduced annually at the expense of budget funds; - 0,429 mln. hryvnyas. Annually in the implementation of innovation at the expense of donors. - 1,849 mln. hryvnyas - the total economic impact.

CHAPTER II. PROPOSITIONS FOR THE INVESTORS

2.1. PRIOPITY BRANCHES FOR INVESTMENT

 Development of highly productive industrial complex;  Development of highly productive agro-industrial complex;  Introduction of resource- and energy-saving technologies;  Development of modern infrastructure of Berezhany and rural areas;  Reconstruction of engineering networks of housing communal sphere;  Development of natural environmental protection infrastructure;  Development of heathcare, educational, physical educational and sports objects;  Development of tourist and recreational complex.

11 2.2 STRATEGIC INVESTMENT PROJECTS, WCHICH MIGHT BE PROPOSED TO INVESTORS List of strategic investment projects No Project title Initiator Estimated value Brief description 1. Building solar wind parks in the area of Berezhanska Estimated cost of The project will enable the use of alternative energy source. In the Berezhany district local state investment is 620 Berezhany district are 25 land plots for construction of wind solar power administration th.dollars/1 ha, the plants expected capacity of 1 ha – 0,5 Mvt of electricity 2. Creating a regional uility company to Berezhanska 872,5 Create a non-profit road enterprise that will carry out repair local roads and repair local roads in the Berzhany area. local state thousands dollars will be controlled by the local community of the Berezhany district.This administration will be an alternative to state institutions, that do not provide quality and efficient repair of roads. 3. Organization the collection of solid Berezhanska 210,0 Starting centralized collection of solid waste (garbage) of private houses waste (garbage) in a rural area of the local state thousands dollars located in rural areas and creating for this purpose utility company Berezhany district administration controlled by the local community of the Berezhany district. 4. Modernization of existing and Berezhanska 102,55 For the first time initiated a complete modernization of the existing system installation of new outdoor lighting in local state thousands dollars of outdoor lighting of roads and streets of settlements area using the latest residential areas of Berezhany district administration LED lighting. 5. Resumption of the industrial area Berezhanska In the Berezhany district there are exist a number of industrial companies, local state that currently do not work. Existing infrastructure, facilities, production administration lines. 6. Reconstruction of livestock complex Berezhanska 200 Saved premises in good conditions: 4 bam-row type column, column type (by cattle) and auxiliary facilities local state thousands dollars concrete floor, a total area of 7045 m 2. Existing infrastructure: (access administration roads, water and energy) 7. Building capacity for the production of Berezhanska 150 Existing wells: in Zhukvska village Council in the amount of pieces of packaged drinking water low hydrogen local state thousands dollars water debit from 4 to 10 m3/h. Chemical composition of water: chloride - sulphide mineralized and medical administration 19-21 mg / dm3, sulfates 29,4-30,6mh / dm3 iron - 0,17-0,2mh / dm3. At the city council Berezhany 5 wells of debit from 6 to 20 m3 / h. Hmichnyy composition of water, chlorides - 3,8-4,0mh / dm3, sulfates 12,6mh / dm3 Iron - 0.1 mg / dm3 cations: Mg - 17,5-17,6 mg / dm3 Na - 26 1 mg / dm3, Ca - 30-52 mg / dm3 2.3. FREE OBJECTS OF REALTY The complex of the Berezhany Glass factory Lepkyh street,33, 47501, Berezhany, Ternopil region, Ukraine - area of production and support facilities - 12100 square meters, including manufacturing 6000 m2. , auxiliary - 6100m2;

- allocated area of land ( ownership) - the act of a private property on 9,91 ha;

-available all communications electricity, gas, water

13 Complex of the JSC “Micron” Zolochivska street,30, 47501, Berezhany, 30, Ternopil region, Ukraine - area of production and auxiliary buildings - 16,000 square meters, including industrial-8000 m2., auxiliary-8000m2; -the total area of allocated land plot (ownership) rent for 35 years is 8.3 ha; - there are all communications – electricity, gas and water supply (there are two wells and water tower); - there is saved production base, equipment, administrative offices, warehouses. Available mechanical workshop stored communication transformer substation. There are 8,3 hectares.

14 Construction of the motor company Ltd “Berezhany avtotrans” Zolochivska street, 47501, Berezhany, 30, Ternopil region, Ukraine - area of production and auxiliary buildings - 4650 m2;

- allocated area of land (ownership) - to rent '39 3.5ha;

- available all communications - electricity, gas, water.

- the territory is fenced with reinforced concrete slabs Around automobile gas filling station, located on the territory of its own power substation, water tower

15 Reconstruction Stockbreeding complex (for cattle) 47533,village Saranchuky, Ternopil region, Ukraine In the village Saranchuky, Berezhany district, there are exist inoperative Stockbreeding complex (for cattle) with auxiliary facilities. It includes: - 4 byres of 4 lines type; concrete ceiling of column type. Total area - 7045 m²; - administrative building - 510m²; - sawmill building - 177 m² ; - silage pit, manure pit; - the territory of complex - 5 ha; - asphalt paths, threshing floor’s territory, warehouses buildings.

Access to transport infrastructure 1 km from the railway station Potutory. 300 metres from the grain stocks of “Agrocultura” (Landkom). 12 km from the Berezhany. 55 km from the Ternopil region.

16 2.4. FREE LAND PLOTS

2.4.1. for placing industrial parks № Location Within exact local council Land plot area Cadastral number, or № (district or settlement) (hectare) geographic coordinates 1. Berzhany district Berezhanska city council (outside the city) 23,0 6120410100:01:001:0659 2. 43.8447 6120410100:01:001:0661 3. 47.4395 6120410100:01:001:0660

2.4.2. for renewable energy (growing of energy crops)

№ Location Within which Land Cadastral number, or The status of Previous use Type of (district or settlement) local council plot area geographic the land of the land energy crops (hectare) coordinates plot 1. Berzhany district Bozhykivska 28,4405 6120486700:01:001:10 land state hay willow village council 16 property (land 2 Berzhany district Bozhykivska 12,1304 6120486700:01:001:1 reserve, pasturage 2. village council 020 landplots of 3 Berzhany district Lapshynska 17,6934 6120483000:01:001:0 each category hay 3. village council 202 of land that are 4 Berzhany district Lapshynska 46,04 49°29'23,22"North not given hay 4. village council 24°55'47,19" East ownership or 5 Berzhany district Bischivska 19,0691 6120480600:01:001:2 use by arable 5. village Council 256 individuals or legal entities) 6 Berzhany district Posuhivska 27,2 49°25'32,00" North pasturage 6. village Council 24°57'45,14" East 7 Berzhany district Urmanska 12,2447 6120489100:04:003:0 pasturage 7. village Council 124 2.4.3. for implementation renewable energy for placing wind and gelio stations

№ № Location Slope Coordinates Altitude, m Area, Distance to the hectare power lines 1 49°19'22,94" 24°59'16,50" near village Bozhykiv * southwestern 326 27 10kV - 1,0 km 1 North East 2 49◦19'55,10" 25◦00'23,35" 10kV - and 1,1km near village Bozhykiv west 322 23,2 2 North East 35 kV - 0,8 km 3 Near village Voloschyna of the 49°18'09,14" 24°59'07,85" west 353 35,4326 10kV - 1.58 km 3 Bozhykivska village council North East 4 Near village Voloschyna of the 49°17'57,89" 25°01'28,39" south west 335 21,6226 10kV - 0,9 km 4 Bozhykivska village council * North East 5 Near village Voloschyna of the 49°17'52,10" 25°01'39,28" southeast 298 15,5539 10kV - 1,0 km 5 Bozhykivska village council North East 6 near village Molohiv of the 49°21'20,83" 24°52'23,16" southeast 414 160,0 10kV - 2,6 km 6 Mechyschivka village council North East 7 49°21'37,88" 24°50'47,21" near village Mechyschiv horizontal 436 44,8765 10kV - 1.75 km 7 North East 8 49°26'11,57" 24°47'14,42" near village Kurjany southeast 338 32,0 10kV - 0,5 km 8 North East 9 near village Dulyaby of the 49°29'54,59" 24°44'14,85" horizontal 403 107,1194 10kV - 1,4 km 9 Narayivka village council North East 1 near village Potochany of the 49°34'53,20" 24°52'12,07" horizontal 407 39,78 10kV - 1,2 km 10 Rekshynska village council North East 1 49°23'10,89" 24°57'09,77" near the village Vilhovets * south west 370 38,84 11 North East 1 49°22'45,18" 24°57'43,07" 10kV - 0,8 km near the village Vilhovets * south west 351 8,5328 12 North East 35 kW - 0.35 km 1 49°22'45,53" 24°57'50,29" near the village Vilhovets * south west 362 16,8429 13 North East 1 49°24'17,20" 24°56'16,78" 10kV - 0,9 km near the village Vilhovets * south west 409 28,4128 14 North East 35kV - 0,2 km

18 1 49°26'06,86" 25°01'10,13" 10kV - 0,3km, near the village Shybalyn southeast 373 56,0511 15 North East 110kV - 0,2km 1 near the village Lityatyn 49°23'49,83" 25°00'29,24" southern 328 42,0592 10kV - 0,8 km 16 North East 1 near the village Saranchuky 49°18'53,93" 25°02'52,61" southeast 271 15,9039 17 North East 1 near the village Saranchuky 49°18'35,93" 25°02'12,35" southeast 271 80,5592 10kV - 1,5km 18 North East 1 near the village Saranchuky 49°18'18,07" 25°01'51,90" southeast 271 44,05 19 North East 2 49°24'05,45" 24°56'57,42" 35kV passing near the village Posuhiv* horizontal 401 20,4128 20 North East through the area 2 49°31'09,10" 24°59'26,17" near the village Zhukiv horizontal 350 12,0436 10kV - 2,4 km 21 North East 2 nearby villages Shybalyn and 49°25'49,88" 25°03'04,84" south west 382 42,4 35kV - 1,0km 22 Komarivka * North East 2 49°31'28,75" 24°50'24,80" near the village Verbiv plain, western 398 3,848 10kV - 0,05km 23 North East 2 49°32'33,66" 24°51'20,20" near the village Verbiv south west 352 14,7728 10kV - 0,50m 24 North East 2 49°32'08,09" 24°49'44,89" near the village Verbiv south west 358 7,6536 10kV - 0,05m 25 North East

Note: Area №4 transferred for use for commercial agricultural production by 2023, except that the prospects for its use of renewable energy needs; section №1, 11, 12,13,14,20,22 are operative learning and making feasibility studies for the device helioelektrostantsiy Limited Liability Company "Design and Research Institute" EnerhoInzhProekt ", tel. / Fax +38 044 569 93 61 +38 044 569 93 62, [email protected]

19 CONTACT INFORMATION

BEREZHANY DISTRICT STATE ADMINISTRATION 15, ShevchenkoStr, Berezhany, Ternopil region, 47501 Tel.: (03548) 02-11-78, 02-12-78, e-mail: [email protected] web-сайт: http://www.oda.te.gov.ua/berezhanska

DEPARTMENT OF ECONOMIC DEVELOPMENT OF BEREZHANY REGIONAL ADMINISTRATION 15, ShevchenkoStr, Berezhany, Ternopil region, 47501 Tel.: (03548) 02-12-61, 02-12-62, e-mail: [email protected]