PRIORITY INVESTMENT DIRECTIONS
Valentyna Zatyshniak Director of DIA
Oleksandr Kolomiytsev Director of IIC INFRASTRUCTURE
Dnipropetrovsk region is the industrial and business center of Ukraine, which combines all kinds of transport:
Air transport - 2 international airports PERESHCHEPYNE (Dnipro, Kryvyi Rih). Cargo air terminal ATK «Yuzhmashavia» of SE «PA Yuzhny Machine-Building Plant named after O. Makarov» with the possibility of PIATYKHATKY PAVLOHRAD organizing air transportation by own cargo DNIPROPETROVSK aircrafts or accepting and servicing cargo REGION MEZHOVA aircrafts.
River-sea transport - 4 river ports with the SYNELNYKOVE possibility of cargo transportation for the ships of the river-sea type. 1 container Line "Dnipro-Constanta". KRIVIY RIH Rail transport: an extensive rail network connects all the industrial centers of the NIKOPOL region and has access to intermodal cargo transshipment transports and the main seaports of the country. Automobile transport: the territory is crossed by two European routes E-50 (Paris - Prague - Uzhhorod - Vinnytsia - Dnipro) and E-105 (Norway - Kharkiv - Novomoskovsk - Simferopol). There are 6 motor transport ports with customs services on the territory of the region. FDI IN THE ECONOMY OF DNIPROPETROVSK REGION
Dnipropetrovsk region is the main labor market in the south- Dnipropetrovsk region is one of the leading academic east part of Ukraine. centers of Ukraine.
• There are 1508 thousd. people of economically active In the region there are: population. • 53 higher educational institutions of all accreditation • The level of registered unemployment is 8,5% (30,7 thousd. levels, in which 119 thousd. students are studying; people). • 58 vocational students (23,7 thousd. students). • The total number of employees is 791 thousd. people (large Dnipropetrovsk region trains specialists in such spheres as: numbers are involved into industry, education, trade, health care spheres). • mining and metals sector; • During 2017, 37,5 thousand people were employed and it is • rocket production; the first place among the regions of Ukraine. • IT; • Average salary - UAH 8247 • medicine; • sphere of agrarian and industrial complex – UAH 5800; • chemical industry; • industry - UAH 8400; • construction and etc. • construction - UAH 6700; Educational institutions are open for cooperation with • service sector - UAH 9400. employers due to training of skilled workers. FDI IN THE ECONOMY OF DNIPROPETROVSK REGION
UKRAINE DNIPROPETROVSK REGION
USD bln USD bln 10,6 10,2 9,9 53,7 8,9 51,7 8,6 23,3% 48,2 21,2% 45,4 19,1% 40,7 22,1%* 16,6% 39,0 39,1 5,8 36,2 * % of the volume of Ukraine 9,8% 3,5 3,8
9,7% 9,7%
2010 2011 2012 2013 2014 2015 2016 2017 2010 2011 2012 2013 2014 2015 2016 2017
The largest investor countries II place according to the volume of FDI attracted USD bln USD bln
2011 2012 2013 2014 2015 2016 2017 2011 2012 2013 2014 2015 2016 2017
4,7 3,5 3,1 3,3 1,9 0,5 0,8 Netherlands Netherlands 11,4 9,3 8,7 9,0 7,0 6,2 6,3 41% 38% 36% 37% 27% 6% 13% 3,2 3,2 3,2 1,4 0,9 0,6 0,6 Germany Germany 5,0 5,3 4,5 2,9 2,1 1,6 1,8 64% 60% 71% 48% 43% 37% 33% 1,7 2,5 2,4 2,6 1,6 1,1 1,2 Cyprus Cyprus 9,6 12,7 15,9 17,7 12,8 10,2 10,0 18% 20% 13% 15% 13% 11% 12%
Other 19,4 21 22,6 24,1 18,8 18,2 21 Other 1 1 1,1 1,6 1,4 1,3 1,3 ECONOMY AND INVESTMENTS STRUCTURE
Foreign direct investments by the types of The volume of region sold industrial output by economic activity the types of economic activity
Construction Services Construction Services $ 208,4 mln $ 1524 mln $ 0,5 bln $ 12,3 bln 5,5 % (3,1% of Ukraine) 39,9% (5,7% of 1,7% (7,2% of 42,2% (10,9% of Ukraine) Ukraine) Ukraine)
$ 3,8 $ 28,2 bln bln 9,8 % 10,8 % out of the volume out of the volume of of Ukraine Ukraine
Industry
Agriculture $ 13,6 bln $ 1,85 bln Agriculture Industry 49,1% (15,3% of Ukraine) 7% (11,7% of Ukraine) $ 75,1 mln $ 2008 mln 2% (4,5% України) 52,6% (20,9% of Ukraine) INDUSTRY
The region's share in the total volume of industrial output in Ukraine is 15,3%
Industrial branch structure Dynamics of industrial branch development
Other USD bln $ 2,8 bln 188,1 20,5% 184,3 116
94,3 82,6 Engineering
$ 0,6 bln 18,9 4,4% (%) (13,7%) 12,9 13,6 (13,7%) (15,3%) 28,6 31,6 $ 13,6 bln (16,8%) (16,3%)
49,1 % out of the regional volume 2013 2014 2015 2016 2017 Coal extraction
$ 0,8 bln 5,9% The largest enterprises of the industry
Electricity, gas Electricity supply Metallurgy Development of rocket and conditioned Metallurgical and space technology air supply production
$ 1,7 bln Iron ores extraction $ 5 bln 12,5% $ 2,7 bln 36,8% 19,9% Production of cast iron, Rocket and space Mining and metals sector steel and rolled technology production products INDUSTRY
In 2017, most of the region's industrial output was exported (53%)
Export structure of industrial products Import structure of industrial products Machinery and equipment Transport $ 0,1 bln Other $ 0,2 bln 1,8% (2,2%) $ 1,5 bln Mineral fuels 2,9% (26,6%) 32,1% Other $ 1,3 bln 30,3% (12% ) $ 0,2 bln 4,0 % Chemical products
Electric machines $ 0,2 bln 3% (13,3%) $ 0,2 bln $ 6,5 bln 4.3% (4,8%) $ 4,3 bln
87,8 % out of the 92,6 % out of the Metallurgical regional volume Pharmaceutical regional volume production products
$ 3,9 bln $ 0,3 bln 59,5% (38,8% ) 6,6% (7,2% ) Mineral products
$ 1,9 bln Products of mechanical 28,8% (47,7%) engineering Paper Polymeric materials $ 0,5 bln 10% (8%) $ 0,1 bln $ 0,4 bln 2,3% (13%) 8% (11,4%)
Dynamics of investment in the industrial sector USD mln 7860,2 7453,1 5870,8 3388,3 1878,2 1562,7 2008 2011 2012 2013 2014 2015 2016 2017 INDUSTRY
Priority investment directions
Abrasive materials 54%
Truck tires, automobile and agricultural machinery 100%
Conveyor belts and rubber technical goods 100%
Cardboard, corrugated cardboard 52%
Internal combustion engines 100%
Machine tools and robotic systems 98%
Heat pumps 100%
Household appliances 84%
Pumps and compressors 88%
Refrigerators, freezers 99% IMPORT PRODUCED
The largest enterprises of the services
Metallurgy Detergent manufacture Gas company Production of steel and alloys Tailoring SERVICES
The volume of services sold in 2017 is USD 12,3 bln The region's share in the total volume of Ukraine services sold is 10,9%
Services structure Dynamics of sold services USD mln Scientific and technical activities 102,5
$ 0,3 mln 108,8 112,2 Real estate operations 2,4% Other
$ 0,4 bln $ 0,6 mln 83,2 83,6 3,2% 4,9% 7,7 9,6 7,6 (9,2%) (9,4%) Transportation (9,1%) 11,1 12,3 $ 0,8 bln (10,2%) (10,9%) 6,5% $ 12,3 bln 2013 2014 2015 2016 2017
42,2% out of the regional volume The largest enterprises of the industry
Telecommunications Cargo air transportation
ІТ services Wholesale and retail trade Pridniprovska Railways
$ 10,2 bln 83% Logistic Logistic SERVICES
In 2017, 1.5% of all implemented services of the region were exported
Export structure of agricultural products Import structure of agricultural products
Other Other
$ 11,5 mln Transport services $23 mln 8,8% $41,4 mln 9% ІТ Financial activity 31,8% (0,7% of Ukraine) $11 mln $ 8,8 mln 4,3% (2,6%) Business service 6,8% (11,9%) $78,8 mln Financial 30,9% (9,8% of Ukraine) activity Services for the processing of material $31,6 mln resources $ 130,1 mln 12,4% (7,5%) $ 255,6 mln
$ 12,7 mln 1,2 % out of the 5,2 % out of the 9,7% (0,9%) volume of Ukraine volume of Ukraine
Royalties, intellectual Business services Transport service IT property
$ 17,1 mln $ 38,5 mln $38,4 mln $72,7 mln 13,1% (1,9%) 29,6% (2,3%) 15,0% (3,2%) 28,4% (18,4%)
Dynamics of investment in the services sector USD mln
1960,8 2535,4 1934 1756,5 1565,1 1523,9
2012 2013 2014 2015 2016 2017 SERVICES
Priority investment directions
• Creation of complex centers for cargo transshipment and storage (river, car, railway, aviation); • Creation of aviation-cargo HUB; • Carriage of the river-sea class; • Creation of port infrastructure; • Creation of automotive service infrastructure; • Business Aviation Development; • IT services; • Leasing of machinery and equipment.
The largest enterprises of the services
International cargo transportation Banking services Trade ІТ services ІТ services AGRICULTURAL SECTOR
The volume of agricultural products sold in 2017 – USD 1,85 billion The region's share in the total volume of agricultural products in Ukraine – 11,7%
Structure of sold agricultural products Dynamics of sold agricultural products
USD mln Other 22,2 26 $ 91,3 mln 16,5 5% 20,2 Bird breeding Oil seeds 15,6
$ 169,9 mln $ 671,6 mln 9,2% 36,4% 1,8 1,85 1,6 (11,7%) 1,4 (10,9%) Food products (7,1%) 1,3 (6,9%) (6,1%) $ 178,8 mln 9,7% USD 1,85 bln 2013 2014 2015 2016 2017
7 % out of the regional The largest enterprises of the agricultural volume
Production of Agricultural Agricultural Сombined feed phosphorus- machinery machinery production Meat and meat containing mineral production production products fertilizers
$ 237,2 mln Oils and animal fats 12,8% $ 497,5 mln Feed 26,9% Meat of poultry, eggs Corn breeding concentrates AGRICULTURAL SECTOR
In 2017, nearly half of all agricultural products of the region was exported (46%)
Export structure of agricultural products Import structure of agricultural products
Other Other Fats and oils $ 51 mln $52,8 mln $50,5 mln Meat and by-products 12 % 31,1% (18,9% of Fats and oils 29,6% $ 11,7 mln Ukraine) $283,2 mln 2,8% (2,2%) 66,7% (6,1% of Ukraine) $ 178,2 Milk, eggs mln $ 14,8 mln $ 424,9 7,5 % out of the 3,5% (3%) mln regional 2,8 % out of the Cereal crops Meat and products volume
regional $ 64,1 mln $12,9 mln Fish and crustaceans 15,1% (1%) volume 7,2% (11,4%) $23,1 mln 13% (5,1%of Ukraine) Seeds and fruits of oil-plants Edible fruits and nuts $17,1 mln. 9,6% (4,7% of Ukraine) $21,8mln 12,2% (4,6% of Ukraine)
Dynamics of investment in the agricultural sector USD mln
150
136,4 100,3 110,8 83,2 79,6 75,1
2011 2012 2013 2014 2015 2016 2017 AGRICULTURAL SECTOR
Priority investment directions
Flour products 19%
Vegetables grown in closed soil 16%
Vegetable mixes 89%
Pet food 74%
Peanut 78%
Agricultural machines (seeders, plows, harrows) 94%
Machines or mechanisms for harvesting or 85% threshing of agricultural crops
Fertilizers containing nitrogen and phosphorus 75%
IMPORT PRODUCED The largest enterprises of the services
Cultivation of cereals and Processing of oil and Milk processing Yeast production Hamburger roll Cultivation of cereals and industrial crops grain crops industrial crops CONSTRUCTION
The region's share in the total amount of construction products in Ukraine – 7,2%
Structure of construction sphere Dynamics of construction sphere development
Building materials 18327,2 USD mln
$ 112 mln 17640,7 22% Installation of 8765,1 plumbing, heating 6926,7 6903,2 and air conditioning systems 523,6 471,4 497,3 $ 19,7 mln 1137,8 (6,0%) (6,8%) (7,2%) (6,5%) 927,6 4% (5,1%) USD 497,3 mln 2013 2014 2015 2016 2017 Construction of 1,7 % out of the roads and regional volume highways The largest enterprises of the industry $ 19,4 mln 4,2%
Construction of Construction of railways and residential and Supplies of galvanized underground non-residential steel $ 20,7 mln Installation works buildings
4,2% $ 27,2 mln $ 298,3 mln 6,6% 60% CONSTRUCTION
In 2017, construction products were exported to $ 364 million, representing 10.5% of Ukraine's total exports of construction products
Export structure of construction products Import structure of construction products
Goods made of stone, Goods made of stone, plaster, cement plaster, cement $ 3,8 mln Ceramic products $ 38,8 mln 10,1% (4,3% of Ukraine) 42,4% (13,2% of $ 23,8 mln 26,0% (8% of Ukraine) Ukraine) USD 91,6 USD 38 mln mln 2 % out of the 0,5 % out of the Ceramic products regional volume
regional volume $ 23,2 mln 61% (16,8% of Ukraine) Glass and glassware
$ 29,0 mln Glass and glassware 31,7% (6,7% of $ 11 mln Ukraine 28,9 % (8% of Ukraine)
Investments in the construction industry USD mln
270,1 329 356 346,5 208,4 271,2 295
2011 2012 2013 2014 2015 2016 2017 CONSTRUCTION
Priority investment directions
Sheet glass 100%
Coated galvanized steel 100%
Mineral wool, glass wool 79%
Asphalt products (ruberoid) 55%
Roof tile 100%
IMPORT PRODUCED
The largest enterprises of the services
Production of Concrete production Glass containers production Production of PVC profile Paint production double-glazed windows GREEN ECONOMY
Green tariff in Ukraine is a state program that stimulates the alternative energy development.
According to this program, the state in the person of State Enterprise «Enerhorynok» buys electricity received from alternative sources at more favorable rates.
Tariff for solar energy
Until the end 01.01.2017- 01.01.2020- 01.01.2025- of 2016 31.12.2019 31.12.2024 31.12.2029
0,16 EUR/kWh 0,15 EUR/kWh 0,14 EUR/kWh 0,12 EUR/kWh OPPORTUNITIES
We offer our partners the best opportunities for green energy facilities location.
In our portfolio there are land plots from 6 to 84 ha for solar energy. We also offer 4 prospective land plots for small hydro-electric power station placement. PROMISING SOLAR POWER STATIONS
BABAIKIVKA 7 MWt TSARYCHANKA PAVLOHRAD DISTRICT 5 MWt
AULY VERHNODNIPROVSK 5 MWt DISTRICT PAVLOHRAD DISTRICT VERKHNE DNIPROPETROVSK 7 MWt REGION
SOLONE MYKOLAIVKA DISTRICT 40 MWt
SOLONIANSKE TOMAKIVKA DISTRICT 3 MWt
TOMAKIVKA 42 MWt PROMISING HYDRO-ELECTRIC POWER STATIONS
ZLATOUSTIVSKE Reservoir (150 kWt)
KRASNYNSKE Reservoir DNIPROPETROVSK (120 kWt) REGION
KRYVYI RIH SOFIIVKA DISTRICT DISTRICT
KARACHUNSKE NIKOPOL Reservoir DISTRICT SHOLOHIVSKE (220 kWt) Reservoir (300 kWt) IMPLEMENTED PROJECTS OF DNIPROPETROVSK REGION
Construction of the hydro-electric power station in Vasylkivka united territorial community
Planned capacity: 100 kWh
Investment amount: EUR 191 thousd.
Payback period: 4 -5 years CONSTRUCTION OF HYDRO-ELECTRIC POWER STATION
Stages of project implementation
1 The lease contract conclusion for the hydro month construction and land plot
1 Obtaining technical specifications for connection to month the electricity grid from «DTEK» Dniprooblenergo», PJSC
2 Mini hydro-electric power plant designing and month project coordination
6 Mini hydro-electric power plant construction and month commissioning
6 Organize safe usage month of mini hydro-electric power plant IMPLEMENTED PROJECTS OF DNIPROPETROVSK REGION
Construction of solar power station
Planned capacity: 10 MW
Investment amount: EUR 10,5 mln
Payback period: 6 years HOW TO GET A «GREEN TARIFF»
1. Development 2. Registration 3. Registration of 4. Development of 5. Obtaining of project of legal entity - the land title feasibility study. Possibility Technic feasibility study up to 1 month (leasing agreement) of facility connecting to Specifications (business plan) - - 6-12 months electrical networks for electrical from 1 month networks connection - up to 2 months
9. Installation and 8. Acquisition of 7. Development of 6. Pre-project 10. Connection adjustment of equipment. Delivery project engineering to electrical equipment - from 3-4 months documentation - 2- design - up to networks - 1-2 1 month 3 months 1 month months
11. Acquisition of 12. Registration of 13. Expert examination electricity producers membership in the of the "local 14. Approval of license - up to 1 month wholesale electricity component" up to the green tariff - market - up to 1 month 1 month 1-2 months
17. Operation and straight-line 16. Electricity sale on a 15. Electricity sale agreement maintenance of the generation facility green tariff up to 1 month ENERGY SERVICE AGREEMENT
Targeted financing of Financing of utility expenses energy saving programs
BUDGET (owner of the services)
Adoption of energy-saving technologies
MUNICIPAL BUILDINGS ENERGY SERVICE COMPANY MARKET POTENTIAL
In accordance with the requirements of Directive 2012/27/EU, budgetary institutions should play a leading role in energy efficiency issues.
The number of capable facilities (Buildings of budgetary institutions) – ≈3000
Necessary investments – UAH 11 bln
It is possible to provide reduction of gas consumption by budgetary institutions by 210 million m3 per year
IMPLEMENTATION STAGES OF ENERGY SERVICES FOR BUDGETARY INSTITUTIONS
Selection of potential energy service facilities and determination of energy consumption baseline level at the energy service facility
Consumption adoption of basic level
Adoption of essential terms of energy service agreement
Conducting the energy services purchase
Energy service agreement conclusion
Energy services payment
Signing the act of equipment transfer into ownership RESULTS OF ENERGY SERVICE AGREEMENTS IMPLEMENTATION
• Reduction of natural gas consumption – 240 000 thousd. m3;
• Cost saving UAH 1,5 bln per year
• Creation of new jobs – 15000;
• Avoiding of gas dependence (State program);
• Ecological state improvement through the CO2 emissions reduction; • Obtaining an independent alternative stable energy source at budgetary facilities of increased importance;
• Getting a stable temperature according to the sanitary norms (elimination of underheating);
• Budget saving due to the room automatic temperature adjustment (elimination of overheating);
• Cost reduction due to the reduction of heating pipeline length;
• Reduction of the electrical energy consumption;
• Avoidance of using emergency-dangerous and obsolete boilers. INDUSTRIAL PARK «PAVLOHRAD»
Logistic № City 1 Dnipro 2 Kharkiv 3 Mariupol 4 Mykolaiv Kyiv 5 Pavlohrad
6 Zaporizhzhia 2
Е-50 5 1
Е-50 Transport km 6 Airport Dnipro 93 3 4 Sea port Mariupol 193 Sea port Mykolaiv 466 River port Dnipro 90
Railway station 4 Existing routes Railway connections Pavlohrad 1 Е-50 Brest–Prague–Kosice–Ternopil–Dnipro-Makhachkala Railway station 1 Е-105 Kirkenes-Orel-Kharkiv-Dnipro –Yalta Pavlohrad 2 Н-08 Boryspil-Zaporizhzhia Railway station 86 Dnipro cargo INDUSTRIAL PARK «PAVLOHRAD»
0% Import duties on equipment
0% Land tax
EUR 250 Rent on hectare per year
Perfect logistics
Highly qualified staff
Execution of all necessary documentation by the management company INTEGRATION MECHANISM INTO INDUSTRIAL PARK
The participant Preparation of the provides the necessary technical management company documentation The analysis of the (MC) with the business potential participant plan and the financial condition development strategy and company audit of the enterprise for are carried out. the next 5 years.
The agreement on the The agreement on land plot lease and economic activity is Management concluded. Company services provision is concluded. PREFERENCES FOR INVESTORS
Existing state and local preferences:
. Import of equipment operating on renewable energy sources for own production and if similar equipment is not produced in Ukraine. VAT exemption (20%) . Import of energy conservation equipment, components and materials which have no analogues in Ukraine. . Import of technical means working on alternative fuels, which have no analogues in Ukraine. . IT products supply.
. Investors, who operate under the agreement of production sharing; . Equipment for arrangement of industrial, scientific and technological Exemption from taxation of parks, which is not produced in Ukraine; import customs duty . Equipment operating on the renewable energy sources and energy conservation equipment which is not produced in Ukraine; . Materials, blocks and devices for agroindustrial complex, which is not produced in Ukraine.
Local preferences . Preferences for property tax; (on the resolution of local . Preferences for rental rate on land authorities) . Preferences for land tax. FREE TRADE AGREEMENTS
UKRAINE Concluded 16 FTAS that extend to 45 countries CIS Acting: as of September ,20, CANADA 2012, mutual agreements are Signed: July,11, 2016 valid from 1994 to 2006 Ratified by the Verkhovna Rada: March, 14, 2017 Aim: liberalization of trade in goods Ratified by the Senate of Canada: May, 18, 2017 Population: about 245 mln Entered into force: August, 1, 2017 Aim: liberalization of trade in goods + public procurements Population: about 35 mln EUROPEAN FREE TRADE ASSOCIATION (Iceland, Liechtenstein, GENERALIZED SYSTEM OF EU (28 MEMBER COUNTRIES) Norway, Switzerland) PREFERENCES (GSP) Acting: previously as of January, 1, 2016, unbalanced Acting: June, 1, 2012 Canada, EU (*), Japan, preferences for Ukrainian exporters Aim: liberalization of trade in Turkey and the United States Aim: liberalization of trade in goods + services + public goods + services + public procurements + legislative approximation and procurements (*) GSP two years after the economic integration with the EU Population: 13 mln start of the FTA with the EU Population: about 500 mln (January 1, 2016) NEGOTIATIONS Aim: liberalization of trade MONTENEGRO COMPLETED in goods MACEDONIA Acting: As of January, 1, 2013 Israel Aim: liberalization of trade in Acting: as of July,5, 2001 Negotiations are goods + services Aim: liberalization of trade in continuing Population: 0,62 mln goods Population: about 2,1 mln Turkey, Serbia
From February 1, 2018, Ukraine became a party to the Pan-Euro-Med Convention - increasing access for Ukrainian exporters to the markets of 24 parties INVESTOR SUPPORT TOOLS
Dnipropetrovsk Regional Investment Agency DIA administrates and Investment and Dnipro Development provides support on Innovation Center Agency activities of potential investors in the region PAVLOHRAD DISTRICT at all stages of investment project implementation – from the Pavlohrad Agency stage of land plot selection and passing DNIPROPETROVSK REGION of Economic of licensing procedures to the Development construction of new object and start of KRYVYI RIH work. DISTRICT
Kryvyi Rih City Development The DIA’s mission is to provide Institute NIKOPOL Nikopol Agency for Regional Development a solid foundation for stable DISTRICT development of Dnipropetrovsk region, which is built on the basis of open, mutually beneficial cooperation and serves as a base for strengthening the reputation of the region as a reliable partner. INTERACTIVE INVESTMENT MAP DNIPROPETROVSK REGION
AGRICULTURE 199 Land plots 3 598 hа Total area
INDUSTRY 144 Land plots 969 hа Total area
ALTERNATIVE ENERGY 5 Land plots 333 hа Total area 354 5 300 hа LOGISTICS Land plots 4 Land plots 124 hа Total area
INDUSTRIAL PARKS 3 Land plots 326,47 hа Total area THANK YOU FOR ATTENTION!
Dnipropetrovsk Regional Investment Agency Investment and Innovation Centre
Address: 2, O. Paul Ave., office 538, Address: 12, Sviatoslav Khorobryi Str, office Dnipro city, Ukraine 303-309, Dnipro city, Ukraine Tel.: +38 067 504 05 05 Tel.: +38 056 742 86 87
+38 056 742 86 21 E-mail: [email protected] E-mail: Dnipro city, Ukraine
Web: www.iic.in.ua Web: www.dia.gov.dp.ua