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Home , ArcelorMittal Kryvyi Rih, Dnipropetrovsk Oblast, Kryvyi Rih, Mahdalynivka, Petrykivka, Synelnykove

CONSTRUCTION OF AMUSEMENT PARK,

PROJECTS INITIATED BY REGIONAL AUTHORITIES REGION Summary OF OPPORTUNITIES

 There are 20 water parks in , including 10 indoor and 10 seasonal aqua parks. Geographically water parks are located on the shores of the Black Sea and the , and partly on the west, north and east sides of Ukraine. At the same time central region of the country is still not covered with water park services.  The absence of water parks in the central region of the country shows the necessity of scaled amusement park that would become a center of youth and family recreation adapted for all income levels. Part of the park would be occupied by water activities.  Dnipropetrovsk is the most attractive region for doing business in Ukraine.  Dnipropetrovsk region occupies 5,3% of the country with a population of 7,3% of the country’s population. Region provides 10% of Ukraine's GDP and 11% of Ukrainian foreign trade turnover. In the Regional Competitiveness Rating it occupies the 2nd place.  Key attractiveness indicators of the amusement park construction in Kryvyi Rih city (Dnipropetrovsk region): . large population of the city (657,7 thousand people, 2nd place in the region, the 8th in the country). According to the experts it is reasonable to construct an amusement park next to the city with minimum 600 thousand inhabitants; . absence of this kind of entertainments in the city and the region as well; . absence of equipped beaches, sites for family recreation in the coastal zone of the city rivers; . large share of young people (target group of visitors): the share of kids and youth aged to 29 years old is 35% of the city’s resident population; . developed transport hub enables to cover the territory of more than 3,2 million people. 1,1 million people of them are potential and regular visitors and over 18% are preschoolers and schoolers who will attend the park on regular not only with parents but also on the year-round group visits organized by educational institutions; . the amusement park attendance, not only on weekends and holidays, but also during the week due to the shift work at key city’s enterprises. . readiness to spent 45,5 thousand UAH per year on entertainment (7,1% of real income of one inhabitant of Dnipropetrovsk region); . preference of citizens to spend money on entertainment in their home town is explained by the expensiveness of air tickets and visa problems when going abroad on weekends and dissatisfaction in entertainment services on the coast of the Sea of Azov and the Black Sea as well; . high tourism potential in the field of (see Annexes).  According to the size of the target group of visitors and the amount of money they spend on entertainment, the evaluative market size is 71,8 million Euro a year due to visits by Kryvyi Rih city’s inhabitants. On condition that the appropriate advertising campaign in other region’s major and regional centers of neighboring is provided, the income may increase to 281,6 million Euro due to visits by these cities’ inhabitants.  The Dnipropetrovsk Investment Agency (DIA) is studding actively all the proposals from potential partners who are interested to create effective business through the construction of large-scaled, unique theme park in Kryvyi Rih city.  We are open to cooperation and ready to discuss additional support in the project implementation and favorable conditions for the investor.  Cooperation should be mutually beneficial. Regional authorities are committed to: . provide the land on concessional terms. To assist in connecting the utilities; . provide effective help during the permitting procedures; . provide additional benefits under their authority.  For more detailed information please refer to the relevant sections of the presentation. 1 The center of Ukraine is not covered with REGION OF OPPORTUNITIES entertaining services (water and amusement parks)

Lighthouse Dream Island Terminal

Area: 0,3 ha Area: 2,4 ha Area: 2,1 ha Capacity: 250 people Capacity: 3 500 people Capacity: 1 300 people Jungle Price for 3 hours for adults: 8 Euro Price for 3 hours for adults: 13 Euro Price for 3 hours for adults: 12 Euro Limpopo for kids: 7 Euro for kids: 9 Euro for kids: 10 Euro Area: 1,1 ha Capacity: 1 500 people Area: 0,3 ha Price for 3 hours for adults: 11 грн. Capacity: 450 people for kids: 8 грн. Price for 3 hours for adults: 6 Euro for kids: 4 Euro Aqua Sferra (semi indoor)

Area: 1,1 ha Beach Brovary Capacity: 500 people Area: 1,4 ha Price for 3 hours for adults: 13 Euro Capacity: 2 000 people for kids: 9 Euro Price for 3 hours for adults: 11 Euro for kids: 9 Euro Cape of Good Hope

Ivano-Frankivsk Dnipropetrovsk Area: 5,5 ha Kirovohrad Tsunami Capacity: 3 500 people Price for 3 hours for adults: 7 Euro Area: 1,0 ha Kryvyi Rih Aquarius for kids: 6 Euro Capacity: 500 people Price for 3 hours for adults: 12 Euro Area: 0,8 ha Treasure Island for kids: 8 Euro Capacity: 800 people Berdiansk Price for 3 hours for adults: 7 Euro Area: 6,0 ha for kids: 4 Euro Koblevo Kyrylivka Capacity: 1 500 people Odessa Price for 3 hours for adults: 8 Euro for kids: 7 Euro Area: 5,0 ha Capacity: 5 000 people Price for 3 hours for adults: 7 Euro Koblevo Attika Koktebel for kids: 6 Euro Area: 4,0 ha Area: 1,7 ha Saky Area: 4,4 ha Sudak Koktebel Capacity: 2 500 people Capacity: 700 people Capacity: 3 000 people Alushta Price for 3 hours for adults: 8 Euro Price for 3 hours for adults: 5 Euro Price for 3 hours for adults: 9 Euro Sevostopol for kids: 4 Euro for kids: 6 Euro Simeiz for kids: 5 Euro

Sea World Banana Republic

Area: 2,0 ha Area: 4,0 ha area, that is not covered by water parks’ Capacity: 2 000 people Capacity: 2 500 people services (more than 200 km to the Price for 3 hours for adults: 95 грн. Price for 3 hours for adults: 10 Euro nearest one (2,5 hours by car)) for kids: 65 грн. for kids: 7 Euro

indoor water parks Zurbagan Blue Bay Almond Grove seasonal water parks Area: 2,1 ha Area: 2,5 ha Area: 2,0 ha Capacity: 2 000 people Capacity: 2 000 people Capacity: 1 500 people Price for 3 hours for adults: 8 Euro Price for 3 hours for adults: 9 Euro Price for 3 hours for adults: 11 Euro for kids: 6 Euro for kids: 5 Euro for kids: 20 Euro

Note: Minimum prices are stated Source: Agency’s analysis based on the data of water parks’ official websites 2 Dnipropetrovsk region – a region of economic REGION opportunities OF OPPORTUNITIES  Advantageous economic and geographical position . the region is located in the center of Ukraine and borders upon 7 regions . the area of the region is 31,9 thousand km2 (5,3% of the territory of Ukraine)

 Developed infrastructure . advanced motor road network . vigorous railroad system . gas-main pipeline . presence of key country’s waterway ( river) . 2 international airports

 Developed industry  Skilled labor and scientific personnel . in the region, there are more than 700 large industrial . region’s population is 3,3 million people enterprises producing about 20% of all industrial sales in (7,3% of Ukrainian population), 56% of whom is Ukraine able-bodied population (1,85 million people) . there are over 80 higher educational institutions . about 10% of the world market of space services belongs of all directions and 63 institutions of vocational to the region and technical training in the region; the institutions prepare specialists of more than 250 professional directions

 Favorable conditions for agriculture  Reach source of raw materials . region's agricultural lands exceed the number of land . the region has 50% of the total mineral resources of range of EU countries, such as Austria, the resources of Ukraine and others (2,5 million hectares) . 40 types of minerals . moderate-continental climate . flat ground 3 Attractiveness of Dnipropetrovsk region REGION for doing business OF OPPORTUNITIES

Position of Dnipropetrovsk region in the competitiveness ranking Comments: of Ukrainian regions1 Kharkiv 4,19 Dnipropetrovsk 4,16 . Dnipropetrovsk region takes the 2nd place in the competitiveness ranking Donetsk 4,14 Kyiv 4,12 of Ukrainian regions (only Kharkiv region is ahead). Odessa 4,10 Zaporizhzhia 4,07 4,02 The region is a leader according to the market size indicator. Lviv 4,00 Volynska 3,99 3,98 . In 2011, GRP per capita in Dnipropetrovsk region was 48% higher than 3,98 the national figure (42 068 UAH). Vinnytsia 3,97 Mykolaiv 3,97 Zakarpatska 3,95 3,95 AR 3,94 3,94 Ivano-Frankivsk 3,93 3,93 Khmelnytsk 3,92 Ternopil 3,88 3,87 3,87 Kirovohrad 3,84 3,82

Results of Dnipropetrovsk region according to 12 components of the competitiveness index1 Index of global 4,16 4,37 competitivness Institutions 3,70 4,04

Infrastructure 3,99 5,03

Macroeconomic context 4,52 4,52 Health and 5,63 primary education 6,00 Higher education and training 4,73 5,10

Goods market efficiency 4,03 4,12

Labour market efficiency 4,85 4,93 Level of financial market 4,08 development 4,17 Equipment of new technologies 3,34 4,29 The region Market size 3,06 3,69 The best result among Level of business development 4,14 4,18 Ukrainian regions Average Innovation 3,30 3,44

Source: Agency’s analysis based on the data: 4 1 – The Report on Competitiveness of Ukrainian regions by The Foundation for Effective Governance http://competitiveukraine.org 2 – The State Statistics Committee of Ukraine REGION Market size, Kryvyi Rih city OF OPPORTUNITIES

Age structure of Kryvyi Rih city population1,2, Comments: thousand people  According to global practice the target audience of amusement parks  are children and youth under the 29 years old (46% of all visitors)3. to 9 65,8  Minimum gross income from visits by Kryvyi Rih city inhabitants is 135,3  10-19 58,8 possible of 744,6 million UAH (71,8 million Euro), as: 20-29 . 35% of the city’s population are potential visitors of aqua parks – 657,7 30-39 children and youth under 29 years old (230,3 thousand people)2. 98,7 thousand 105,6  . On average, one Kryvyi Rih city’s inhabitant receives 4 392 Euro of people 40-49 real income from wages per year and spends about 7% of this sum 50-59 2 90,4 103,1 on entertainment (312 Euro) . over 60  Most of the city’s working population derives their income by working on city-forming enterprises of and processing industry (including РJSC ArcelorMittal Kryvyi Rih, Southern GOK, GOK, Northern GOK, Central GOK, Sukha Balka, KZhRK).

Structure of spending of Dnipropetrovsk region’s Shift work schedule of these enterprises will provide high attendance to inhabitants2, % the park, not only on weekends and holidays, but on weekdays as well.

Food and beverages

11,2% Communal services, maintenance of 4,1% dwelling, transport and communications 4,8% Entertainment 7,1%  100% 53,8% Clothes and shoes 19,0% Other consumer spending

Non-consumer spending

Source: Agency’s analysis based on the data: 1 – The State Statistics Committee of Ukraine 2 – The Main Statistics Department in Dnipropetrovsk Region 3 – The Economic Impact of Theme Parks on Regions, by Michael Braun 5 REGION The potential of market increase OF OPPORTUNITIES

Age structure of the population of the area, that will be covered by the amusement park's services1,2, Comments: thousand people  Kryvyi Rih city is a developed transport hub of the region. to 9 The distance from Kryvyi Rih to major cities of Dnipropetrovsk region 317,8 653,0 10-19 and regional centers of neighboring regions does not exceed three 283,9 hours by car. So on condition that appropriate advertising campaign is 20-29 provided, the amusement park may potentially cover the territory with 3,2 3,2 million people population. million 30-39 476,4 509,8 people 40-49 This will allow to increase the gross income up to 2 920,3 million 50-59 UAH (281,6 million Euro), that is almost 2 times, due to increase of 436,2 497,5 quantity of potential park’s visitors up to 1,1 million people (children and over 60 youth under 29 year old)2. Note that over 18% of them are preschoolers and schoolers who will attend the park on regular not only with parents but also on the year-round group visits organized by educational institutions. The area which population will be covered by the amusement park’s services (major region’s cities and regional centers of neighboring oblasts) 3,2 million people Novomoskovsk

Dnipropetrovsk Dniprodzerzhynsk 998,1 Kirovohrad 248,4 48,2 242,4

Pokrovske 657,7 population, thousand people

Kryvyi Rih Zaporizhzhia 138 km (1.58h) distance from major cities 768,9 of Dnipropetrovsk region 657,7 to Kryvyi Rih (web-resource sit-trans.com) Ordzhonikidze 43,0 area, that will be covered by the water park's services 49,4 Nikopol

118,4 6 Source: Agency’s analysis based on the data: 1 – The State Statistics Committee of Ukraine 2 – The Main Statistics Department in Dnipropetrovsk Region REGION Absence of competition OF OPPORTUNITIES

Number of seats in culture and entertainment Comments: esteblishmenment1  There are no enough places of recreation for the city with TOTAL 12 459 population over 600 thousand people.

 Infrastructure of the city in culture, sport and recreation is represented by: . 3 theaters, . 3 museums, Palaces 7 439 . 3 cinemas, of Culture . Kryvyi Rih State Circus, . 15 Palaces of Culture, . 17 stadia, . 2 ice skating rinks, . 13 indoor and 2 outdoor pools; Cinemas 2 069 . 3 major night clubs.

 None of the coastal zones of the city’s rivers has equipped beaches or reservations for family recreation.

Theatres 1 151  In spite of presence of multifunctional entertainment complexes such as Union and Sun Gallery, not a single part of them is given to water activities.

 Nevertheless most of the citizens of Dnipropetrovsk region prefer to entertain themselves in their hometowns. This is caused by following reasons: Circus 1 800 1) a trip to Europe on weekends is difficult to obtain: . the share of expenses on airline tickets (round trip departing from Boryspil International Airport) is 90-100% of the amount that one resident spends on entertainment on average per year; . duration of visa processing; . additional transport expenses to get to the Boryspil Airport (since most of international flights departs from there).

2) dissatisfaction in services comparing with their cost, provided by health resorts of the Sea of Azov and the Black Sea, causes the refusal on these forms of recreation in spite of geographical proximity and relative cheapness.

1 – Economy Department of the Executive Committee of the Kryvyi Rih City Council 7 REGION Amusement park positioning OF OPPORTUNITIES

PRELIMINARILY. IN ORDER TO DISCUSS

 The proposed park is positioned as: . A complex offering a full range of high quality services in the field of entertainment for visitors of all ages, preferences and income levels. . Unique multifunctional object capable to provide all necessary framework for inhabitants and guests of the city. . Concept and design of entertainment complex will meet the peculiarities of the city and the region as a whole.

 The park is designed both for individuals and corporate clients as well.

 The following is being provided for inhabitants and city visitors: . Individual and group water park and amusement park visits. . Entertainment events (discos, shows, animated presentations). . Rent of aquapark’s or amusement park’s accommodation for business events. . Rent of advertising space in the complex. . Public catering in cafes, bars, restaurants. . Cafes, restaurants, bars tenancy to carry out celebrations and corporate events.

The amusement park offers a wide range of services for different groups of clients that ensure the stability of revenue base. The uniqueness of services will form stable demand and price leading for the investor1.

1 – Expected profit margins, investment and payback period will be determined only after a complex infrastructure is final approved 8 Expected site for an amusement park REGION in Kryvyi Rih city OF OPPORTUNITIES

PRELIMINARILY. IN ORDER TO DISCUSS

Comments:

 Disposition next to large apartment blocks.

 Disposition close to infrastructure (Sun Gallery shopping mall).

 Architectural environment provides visual accessibility to the complex.

 Territory has a “calm” relief with a slight height difference.

 Convenient pedestrian and vehicle accessibility.

 Disposition next to active highways.

Coordinates (Google maps) Road Infrastructure Distance Latitude 47.951573 to the site Longitude 33.440831 Highway 600 m Area 38,9 hа Bypass road 2 km Landowner The city’s authority Subway station 550 m The land status Not in use

Source: Department of Urban Planning and Architecture of the Executive Committee of the Kryvyi Rih City Council 9 The project’s unicity. REGION OF OPPORTUNITIES Preliminarily. In order to discuss WATER PARK with various water attractions, able to attract fans of extreme water slides ANIMATION, DISCO, PARTIES and couples with small children

1

4 5

SHOPS, CAFES

3 THEME PARK Unique amusements in the context of operating mining companies (for example virtual museum with 2 panoramic view of pits with the effect AMUSEMENT PARK of real presence; railroad that will cross the whole site) for all ages and income levels

10 REGION Mutual beneficial partnership OF OPPORTUNITIES

The fundamental principle of future partnership is obtaining mutual advantage from partnership

PRIVATE INVESTOR REGIONAL GOVERNMENT

 Carrying out the business analysis and risks  Providing the investor with all necessary management. information for optimal decision making.

 Expert knowledge and technologies.  Providing land on concessional terms. Assistance in service lines providing.  Investments in construction.  Providing effective assistance to the  Competence in business management of process of all necessary approvals for the the sector. project.

 Additional benefits under government authority.

 Benefits from successfully functioning  Extra jobs creation. business.  Providing population with unique services.  Strong positioning of a company for further business expansion in Ukraine. INTERESTS  Additional return to the budget at the expense of taxes.  Creation of advanced experience and image raising.  The youth’s interest formation in the field of water sports.  Securing the image of a social-responsible company.

11 REGION Project’s implementation schedule OF OPPORTUNITIES

PRELIMINARILY. IN ORDER TO DISCUSS Comments

 One of the key phase of the project implementation Year 1 Year 2 within the time limit is the agreement process before Procedures Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 construction and installation works start. Preparation and permits issuance for carrying out of construction  The municipal authorities secure the optimization both and installation works before construction and installation works and after Development and coordination of coordination of separate elements of working project and technical documents documents with the relevant supervising bodies by means of: Construction of the main constructive elements . assigning curators for a project passing through the permitting system; Equipment and materials purchase . organization of an effective system of monitoring of Balancing and commissioning project co-ordination; of the equipment . providing effective assistance to the process of all necessary approvals for the project. Set in operation

12 REGION Annex. High industrial tourism potential (1/4) OF OPPORTUNITIES

Kryvyi Rih contains more than 90% of all reserved in Ukraine. Kryvyi Rih is the unique city. Only on its territory 7 mining companies are operating: . PJSC Northern Mining and Processing Plant (Northern GOK) . PJSC Central Mining and Processing Plant (Central GOK) . PJSC Inhulets Mining and Processing Plant (Inhulets GOK) . PJSC Southern Mining and Processing Plant (Southern GOK) . PJSC EVRAZ Sukha Balka . PJSC Kryvyi Rih Iron Ore Plant (KZhRK) . New Kryvyi Rih Plant (NKGOK) of PJSC ArcelorMittal Kryvyi Rih

Central GOK’s territory Flooded granite pit

The photographs by Igor Kvochka http://fotki.yandex.ru/users/kvochka 13 REGION Annex. High industrial tourism potential (2/4) OF OPPORTUNITIES

Gleiuvatsky opencast mine depth – 388 m, length – 4,1 km, width – 1,6 km

Central GOK is the only enterprise in Ukraine, which uses both open and underground mining methods

Southern GOK opencast mine depth – 370 m, length – 3 km, width – 2,5 km

Southern GOK today is the most promising mining enterprise in Ukraine

The photographs by Igor Kvochka http://fotki.yandex.ru/users/kvochka 14 REGION Annex. High industrial tourism potential (3/4) OF OPPORTUNITIES

Pershotravnevyi opencast mine depth – 400 m, length – 3,1 km, width - 2,5 km Fact: The depth of the Pershotravnevyi opencast mine is 400 meters. The height of the Eiffel Tower is 324 meters. If you put a tower on the bottom of the Pershotravnevyi mine, even its tip will not be seen above the surface

Annivskyi opencast mine depth – 275 m, length – 1,2 km, width – 5,3 km

Fact: There were taken 1 559 067 945 m3 of rock mass or 44 544 798 dump-cars from the quarries of the Northern GOK by rail transport. So many trains can circle the Earth 16 times around the equator.

The photographs by Igor Kvochka http://fotki.yandex.ru/users/kvochka 15 REGION Annex. High industrial tourism potential (4/4) OF OPPORTUNITIES

Inhulets opencast mine depth - 415 m, length – 3,0 km, width – 2,5 km

Fact: Inhulets GOK’s pit is the deepest in the territory of Ukraine

The photographs by Igor Kvochka http://fotki.yandex.ru/users/kvochka 16 REGION Contact information OF OPPORTUNITIES

Dnipropetrovsk Investment Agency (DIA) Address 49004, Ukraine, Dnіpropetrovsk, 2 Kirova prospect, office 538 Tel +38 056 742 86 87 +38 056 742 86 21 Fax +38 056 742 86 87 E-mail [email protected] Web www.dia.dp.ua

Dnipropetrovsk

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