INVESTMENT PASSPORT OF ZBARAZH DISTRICT TERNOPIL REGION 2 ZBARAZH WELKOMING ADDRESS Investment passport of Zbarazh District was created by the Department of Economic and Agroindustrial Development of Zbarazh District State Administration. It contains high-quality, relevant and comprehensive information about competitive advantages and investment opportunities of the region and is aimed at disclosure and realization of its investment potential. We hope that the publication will be not only a source of information for business, but will also increase the investment attractiveness of the area, will become an effective tool for establishing business contacts with potential investors, facilitate the adoption of positive decisions concerning the investment on the territory of Zbarazh district. Zbarazh District State Administration 3 COMPETITIVE ADVANTAGES OF THE DISTRICT The favorable geographical position: Zbarazh district is located in close proximity to transit centers of western Ukraine and border crossings with European countries; - Favorable climatic conditions for realization of investment projects in agro- industrial complex; -Unique tourist potential: monuments of architecture and nature reserve fund; - Significant natural resource potential: 60,846 hectares of arable land, 69,86 hectares of mineral deposits; - Bodied resource capacity: 32,1 thousand of economically active population of the working age. 4 WELKO CONTENT MING ADDRESS ADDRE SECTION 1. DESCRIPTION OF THE DISTRICT 1.1. The natural-geographic and climatic conditions 1.2. Demography and human resources 1.3. Raw material resource potential 1.4. Main indicators of economic and social development 1.5. Economic potential 1.6. Transport infrastructure 1.7. Education 1.8. Social and cultural sphere 1.9. History of success SECTION 2. OFFERS FOR INVESTORS 2.1. Priority areas for investment 2.2. Strategic investment projects 2.3. Available land section /2.4. Real estate SECTION 3. CONTACT INFORMATION 5 SECTION 1 DESCRIPTION OF THE AREA 1.1 NATURAL - GEOGRAPHIC AND CLIMATIC CONDITIONS Zbarazh district is located in the northeast of Ternopil region. It belongs to the northern part of central agro-climatic area of the region, or to so cold “Kholodne Podillia”. The construction of the surface of the district is a rolling plain, significantly raised above the sea level. Most of the territory has the absolute height of 350-400 meters. Tovtry ridge and Avratynska height, which are the watershed of the Dniester and the Prypiat’ rivers basins, are the most notable elements in the area orography. The highest point is Mount Zubov near the village of Dobrovody with the height of 432 meters, Prince Mount - 406 meters, Castle Hill - 388 meters. The main river of Zbarazh district is the Hnizna with the length of 73 km. The Horyn’ refers to the basin of the Prypiat’ River, and the Hnizna refers to the basin of the Dniester. The hydrological regime of rivers is connected with the springs depending on the season, atmospheric precipitations and groundwater. 6 The distance from Zbarazh to the regional centre Ternopil is 22 kilometers. The motorway and the railway line of national importance towards Kyiv passes through the area. 1.2. DEMOGRAPHY AND HUMAN RESOURCES The population is 58,1 thousand people. In the area there are 75 villages and 68 hamlets. The average salary is 2546 hryvnas. AGE STRUCTURE pensioneers 16,1% children 15,3% working 68,6% age population 6111 people work at the enterprises of the district: in industry – 830 people;-age population in agriculture - 816 people; in trade - 352 people; in construction - 89 people; in transport – 76 people: in non-productive sphere - 3948 people. The structure of employees by economic activities 7 non-productive 64,6% sphere industry 13,6% agriculture 13,3% trade 5,8% construction 1,5% transport 1,2% 0,0% 10,0% 20,0% 30,0% 40,0% 50,0% 60,0% 70,0% 1.3 RAW AND RESOURCE POTENTIAL Land resources The total land area is 86.3 thousand hectares.72,7 thousand hectares or 82% belong to the farmland. The arable land occupies 71,7% of the total area, perennial plants – 1,8%, hayfields – 1,8% and pastures – 7,6%. 9,4 thousand hectares or 11% of the area account for roads, streets, buildings, water, wetlands, forests, shrubs and other lands. Forests The total area of the lands of the district unified state forest fund is 7,9 thousand hectares. In particular, forest land area occupies 7,6 thousand hectares and ground under shrubs is 0,3 thousand hectares. The type of the forest cover is deciduous and coniferous. Thanks to forestation and reforestation forest cover has increased in recent years. The total reserve of timber has increased. The species composition of plantations has been improved, including the increased proportion of pin breeds and boled oak. Aquatic resources The length of the river Hnizna on the district territory is 30 km. 48 streams carry their water to the river Hnizna. The length of the Horyn’ river within the area is 19 km. The total area of ponds is 321,5 hectares and the total area of artificial reservoirs is 28,3 hectares. Minerals 8 Natural building materials such as sandstone and carbonate rocks and loess loams are the most common among the minerals in the district. Particularly noteworthy are limestone of Tovtry ridge - organic limestones. The power of limestone sometimes reaches 60 meters. In the northern part of the area there are Sarmatian limestone deposits that are moving further north in chalk. There are deposits of quartz sand on the lands of Chernyhivtsi, Zarubyntsi, Novyky and Ivanchany and deposits of building stone in Dobryvody and Kokhanivka. JSC "Ternopil Karieroupravlinnia" holds the development of Sarmatian limestone in pits located in the territories of Kydantsi and Staryi Zbarazh. Significant deposits of clay are effectively used in the production of bricks. Currently, production is carried out on Vyshnivets brick factory of building materials and Zaruddia brick factory. 1.4 MAIN INDICATORS OF ECONOMIC AND SOCIAL DEVELOPMENT OF THE DISTRICT Basic indicators of social and economic development of Zbarazh district Name of indicator Units of measurement 2014 2015 2016 year year year 1 2 3 4 5 The volume of industrial products mln hryvnas 383,4 311,3 503,3 The volume of livestock production mln hryvnas 129,4 126,8 150,8 The volume of crop production mln hryvnas 388,1 380,3 452,4 Foreign direct investments thousand of US dollars 233,3 147,0 150,0 The volume of capital investments mln UAH 73,9 106,2 150,0 The volume of construction works thousand of UAH 4096,0 3141,0 7000,0 Export volume thousand of US dollars 12828,5 21284,4 4400,0 Import volume thousand of US dollars 970,2 474,2 800,0 The volume of retail turnover mln UAH 128,0 125,0 132,0 The volume of sales of services mln UAH 12,2 17,0 15,0 The size of the average monthly salary UAH 2192,0 2546,0 3302,7 1.5. ECONOMIC POTENTIAL The industrial sector of the district is represented by14 enterprises of different industries. The largest industrial enterprises are Ltd. "Zbarazh Sugar Plant", JSC "Ternopil quarry", Zbarazh institution VC-63, PE "Graphite"and SE “Zarubynci distillery”. 34 farms and limited liability companies (LLC) are operating in the agricultural sector of the district economy. The enterprises with foreign investments such as LLC “Agrocommunity "Yevishovitse-Ukraine" and LLC “Agroproduct Schwarzwald” are successfully operating in the district and are renting 4.9 and 0.6 thousand hectares of agricultural 9 land. There is a tendency to increase domestic investment in agricultural area in recent years. Good results from year to year are reached by farm "Kolosok", LLC “Podillya”, LLC “Slavutych” , PE "Good Samaritan" which respectively cultivate 2900, 2900, 1300 and 4500 hectares of land. 9 enterprises with foreign investments are registered in the district, 6 of which are engaged in production activities. There are 204 employees in these enterprises. Direct investments in the area are 233,3 thousands US dollars. The volume of capital investments is 50 millions UAH, and 6,4 million UAH are invested in housing construction. Foreign trade turnover of the district is 16900 thousands US dollars. Export is 16000 thousand US dollars, import is 900 thousands US dollars. The main group of products that form the structure of export consists of the production of bioethanol and sugar. 1.6. TRANSPORT INFRASTRUCTURE Zbarazh district is located in a favorable economic location. Motorway Brest- Chernivtsi is the main corridor connecting the western part of Belarus with Romania, the Balkan countries and Mediterranean countries. The length of highways is 374,5 km, including paved roads with the length 262,3 km and dirt roads – 112,2 km. The roads of national importance occupy 37,8 km, local roads – 231,9 km. The length of railway track is 26 kilometers. Distance from the district center to Ternopil by highway is - 24 km, by railway - 22 km. 1.7 EDUCATION 25 pre-schools, which are owned by communities and 51 secondary school are fully functioning in the district. 5458 students study in secondary schools. Zbarazh regional boarding school for children with small and damped forms of tuberculosis functions in the district. The educational process is provided by 977 teachers. Three extracurricular educational institutions work in Zbarazh: the district municipal house of children and teenagers, the station of young technicians and the children’s sports school. 1.7 EDUCATION1.7 EDUCATIONCAT 1.8 SOCIAL AND CULTURAL SPHERE ION In the area there are two hospitals, center of primary health care, 14 ambulatories, 9 obstetrical units, 42 first aid stations. Bed fund of hospitals has not changed for the last six years and is 285 beds, as per 10 thousand population - 48.5.