INVESTMENT PASSPORT OF TERNOPIL REGION TERNOPIL REGION IS THE CENTRE OF THE WESTERN UKRAINE area 13,800 sq.km population 1,059,200 thousand workforce 450,100 thousand 11.5% unemployed (ILO assessment) average monthly income 4716.00 UAH or 177.00 USD 17 districts, 4 towns of regional importance, 36 united territorial communities Ternopil region in the center of the Western Ukraine. It is situated on the crossroads of international routes and borders of Lviv, Ivano-Frankivsk, Rivne, Chernivtsi and Khmelnytskyi regions The distance from Ternopil to the closest regional centers is about 110-170 km, to Kyiv (capital) – 470km, to the borders with Poland, Slovakia, Hungary and Romania – from 220 to 350 km 2 TRANSPORT AND LOGISTICS INFRASTRUCTURE Railway infrastructure 43 train stations and 22 waiting rooms 777.3 km of track mileage, 634.3 km of operational track mileage, 139 km of electrified tracks railway density is 45.9 km/1 000 sq. km main directions: Kyiv, Lviv, Ivano-Frankivsk, Shepetivka, Chop, Chernivtsi, Kherson, Kharkiv, Odessa, Simferopol transit ways trains to Poland, Czech Republic, Slovakia, Bulgaria the main railway junctions: Ternopil, Chortkiv Road infrastructure 5,000 km of highways mileage, including 4,900 km of hard surfaced roads International transit ways: European: E50, Е85 International: М12, М19 National: Н02, Н18 Regional: Р05, Р24, Р25, Р26, Р32, Р39 Central train station and 23 coach stations Airway infrastructure Ternopil Airport refers to class 4 airport. It has a terminal with the capacity of 100 passengers per hour and border checkpoints for all countries. The airport is located 7.5 km south-west from Ternopil, 2000х42 m take-off strip, 2 platforms, able to receive Boeing B737, Airbus A319, A320 3 AGRO-INDUSTRIAL COMPLEX 27% agricultural share in regional gross value added 40% agricultural share in commodity export 77.7% total of agricultural land 1100 agricultural companies, including 620 farms one in three workers is employed in agriculture 73% plant growing 27% stockbreeding 35% processing and food production crop production is about 2.5 million tons annually 13,8% crop share in total exports or 38.7 million USD share of the major agricultural products output of in national production: 23,1% alcohol 10% sugar 6,6% meat and products 4% dairy products During the last 3 years 3 billion USD of capital investment were used for development of the agricultural sector, resulting in opening: 12 - modern elevators 9 modern vegetable stores 6 fruit stores 3 seed plants 11 livestock farms 4 soybean processing plants 4 2,400hectares of fruit plantations INDUSTRY 300 deposits of non-metallic minerals that make12% of the national total stock 42 areas of the explored underground water reserves available peat deposits 300 key industrial enterprises half of which belongs to food industry 12% of industry in gross value added 66% FDI invested in industry 35,000 people engaged in industry Based on Industrial Production Index 2016 the region was rated the 4th in Ukraine In 2016 the total cost of sold products and services made 15.7 billion UAH For the recent two years: 9 industrial enterprises were opened and restored 1.4 billion UAH of capital investments invested in production 20 enterprises were modernized and expanded their production capacity Future industry investment: engineering food industry mining industry construction materials production of readymade garments furniture production 5 TOURISM AND RECREATION Ternopil region is the heart of three traditional religions Saint Mary Spiritual Complex in Zarvanytsya (Tebovlia district) Holy Dormition Pochayiv Lavra (Kremenets district) Nuns’ Charnel in Yazlovets (Buchach district) hundred of wooden churches of different historical periods pre-Christian worship places: Rukomysh Cave Temple (Buchach district) Monastyrok Cave Temple (Borshchiv district) Bohit Mount (temple place, where the known statue of Zbrutsky Svyatovyd stood), Hermit’s Forest in Medobory Unique natural sites more than one hundred speleological places (caves, grottos and arcades): Optymistychna Cave, the largest cave in Europe and one of the world's largest gypsum caves and the second of limestone caves Verteba Cave, the unique underground museum of Tripoli culture Kryshtaleva Cave, the underground pearl of Podillia Mlynky Cave designed for adventure tourism 6 TOURISM AND RECREATION Historical and cultural potential one-third of the Ukrainian historical castles are located Ternopil region 4,000 historical, archeological, urban planning and architectural monuments, 185 of those are of national significance (one-tenth of all national monuments) Castles of Ternopil Region National Reserve Kremenets-Pochaiv and Berezhany national historical and architectural reserves architectural monuments: the central town of Kremenets and Berezhany, Buchach Town Hall, Koropets Palace in Monastyrska region and Bilokrynytsia Palace in Kremenets district, Rai Hunting Cottage in Berezhany district, Vyshnivets Palace and park in Zbarazh district Natural and recreational potential 200,000 hectares of recreational landscapes 419 areas and places of nature reserve: Dniester Canyon, the longest canyon in Europe Dzhurinsky Waterfall, the highest plain waterfall in Ukraine Medobory Nature Reserve Kremenets Mountains and Dniester Canyon national parks 123 nature reserves, 456 nature sites, 14 parks, the sites of landscape art, 9 arboretums, Kremenets Botanical Garden 7 ACADEMIC AND CULTURAL POTENTIAL Ternopil region is one of the leading academic centers in Ukraine 821 secondary institutions with 106,000 pupils 583 pre-schools and educational complexes and institutions with 1,900 children institutions for vocational education with 10,000 pupils 30 institutions of higher education, of which 3 are of national status with 44,800 students 12 basic education schools, 14 high schools, 7 lyceums, 3 colleges, 15 schools specialized in advanced study of particular subjects 16 research institutions with over 3,000 specialists Regional Intercollegiate startup center in Ternopil Ivan Puluj National Technical University, being the first in western Ukraine Regional art events include more than 35 international, national, regional festivals and events Fayne Misto International Music Festival Dzura Fest National Book Festival Dzvony Lemkivshchyny, National Festival of Lemky Culture Borshchiv Vyshyvanka Regional Folk-Arts Festival Bratyna Art and Local History Festival Malanka Folk Ritual Event local castles’ celebrations 8 INVESTMENT POTENTIAL OF THE REGION 49.0 million USD of direct investments 5.5 million USD increase in non-residents’ capital Structure of foreign invesment capital in region share (31/12/2016) 37 investor countries 15,0 66,1 More than 70% FDI comes from partners from: 8,9 Germany – 26,5% 5,6 Czech Republic – 15,3% Belgium – 12,1% 3,6 Estonia– 10,1% 0,8 Industry Transport, Cyprus – 7,8% Agriculture, foresty an fish industry Administrative services Real estate transactions Other Successful projects: Schroeder LLC, Belgium Knauf Gips Scala LLC, Germany MB Stellar LLC, Estonia SE Bordnetze–Ukraina LLC, Germany Mikohen – Ukraina LLC, Cyprus Dobra Voda JSC, Czech Republic 9 FOREIGN ACTIVITIES 605.5 million USD of goods and services 329.6 million USD, turnover 275.9 million USD, including 287.8 million USD including 270.2 million USD commodity export commodity import 103 EXPORT PARTNER COUNTRIES SALDO +53.7 million USD 82 IMPORT PARTNER COUNTRIES GEOGRAPHIC STRUCTURE OF COMMODITY EXPORT GEOGRAPHIC STRUCTURE OF COMMODITY IMPORT Other Other Hungary Switzerland 29,0 30,7 3,4 Germany 1,8 1,9 China 4,6 India 3,0 Lithuania 4,9 Belarus 7,3 Poland Germany Poland 47,8 55,3 10,3 10 FOREIGN ACTIVITIES COMODITY STRUCTURE OF EXPORTS COMODITY STRUCTURE OF IMPORT 13,4 17,3 1,81,5 1,8 3,2 7 4,9 4,8 5,8 3,7 46,6 3,6 35,5 12,8 3,3 2,8 1,8 1,8 15,4 Electrical equipment Cereals 11,2 Meat Electrical equipment Seeds and fruits of oil plants Boilers, machinery, instruments and mechanicals Fats and oils of animal or vegetable origin Polimers and plastic Furniture Energetically materials, petroleum and refining products Protein substances Fish and crustaceans Wood and wood products Milk, eggs, honey Land vehicles exept railway Processed vegetables Organic chemical compounds Other Ferrous metals products Fertilizers Other 11 COOPERATION WITH INTERNATIONAL ENTERPRISES WITH FOREIGN DONOR ORGANIZATIONS, PROGRAMS CAPITAL AND PROJECTS 12 BUSINESS ASSISTANCE ProZorro electronic procurement system (www.prozorro.gov.ua) The system relies on the principle "everyone can see everything” and any information on procurement is publicly available The main advantages of the electronic system are: saving public money and time efficiency available to any business entities transparency on every stage of tendering objective and impartial evaluation of tenders no corrupt abuse non-discrimination of participants USAID Program "Leadership in Economic Governance" (LEV) (www.lev.org.ua) The program aims at improving business environment, joint efforts of governmental bodies, businessmen, experts and scholars in preparing a draft of legal acts for development and growth of SMEs Main achievements : development strategy and implementation plan for small and medium businesses in Ternopil region for 2016-2020 assistance in developing events strategy through a series of seminars, workshops, trainings, round tables for SME on topical issues with leading experts, scientists, successful businessmen 13 BUSINESS ASSISTANCE Public