Khmelnytskyi REGION - INVESTMENT PASSPORT

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ІNVESTMENT PASSPORT of Khmelnytskyi oblast

Khmelnytskyi

STATE AGENCY FOR INVESTMENT AND NATIONAL PROJECTS OF UKRAINE


STATE AGENCY FOR INVESTMENT AND NATIONAL PROJECTS OF UKRAINE KHMELNYTSKYI REGIONAL STATE ADMINISTRATION KHMELNYTSKYI REGIONAL CENTER FOR INVESTMENT AND DEVELOPMENT 2013


GREETINGS

Investment passport of Khmelnytskyi region is created by the State Agency for Investment and National Projects of Ukraine in collaboration with Khmelnytskyi Regional State Administration. It contains qualitative up-to-date comprehensive information on competitive advantages and investment opportunities of the region; it aims at disclosure and realization of its investment potential. We hope that the publication would be not only a source of information for business but would also allow raising investment attractiveness of the region, would become the effective tools to set business contacts with potential investors, would favour making positive decisions on investing in Khmelnytskyi region. State Agency for Investment and National Projects of Ukraine

The high investment attractiveness of Khmelnytskyi region is conditioned by its favourable geographic location, considerable recourse and personnel potential, dynamic development of economic, social and liberal sectors. Society and authorities have jointly created the Regional Development Strategy of Khmelnytskyi region to 2020 in accordance with the best European models. Currently 283 enterprises of the region received investment from 41 countries. Our products are exported to almost 100 countries. We have clearly defined the partnership in state and private sectors. The authorities are open to effective and mutually beneficial cooperation with domestic and foreign investors. We hope that due to the joint efforts of government and editorial staff of this publication you will have a clear picture of the diverse heritage of Khmelnytskyi region and will easily be guided in finding the information you need. Welcome to Khmelnytskyi region! Khmelnytskyi Regional State Administration

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COMPETITIVE ADVANTAGES OF THE REGION

• Powerful energy sector: there is Khmelnytskyi NPP; construction and putting into operation of the third and fourth power generating unit is expected. • Considerable industrial potential: there are more than 1,300 enterprises in the industrial sector; 1,826 agricultural and 1,290 farm enterprises are engaged in agroindustrial activity, almost 7,000 small and medium enterprises operate in the market. • Diversified agriculture (crops sector, livestock sector, poultry farming, sheep breeding, bee keeping, fish breeding) and competitive food and processing industries. • Significant natural resources and mineral deposits (water and land resources, forest resources, more than 300 fields and displays of minerals, 9 springs of mineral water). • Favourable investment climate: foreign investors contributed 130 mln USD into the economy of the region in 2008-2011. • Developed tourist, recreation and resort infrastructure with great development potential. • Considerable scientific and educational potential: 20 higher educational institutions of all levels of accreditation and forms of ownership; scientific and pedagogical staff of all universities is engaged in research and innovation activities; training of human resources is provided by 34 state vocational schools. • Reach cultural environment: there are Starytskyi Music Drama Theatre, Dyven puppet show, Kut mono-theatre, regional Philharmonic Society, a symphony orchestra, 25 museums, about 945 libraries, cultural educational institutions. • Multinational population: people of 90 nationalities live in peace and harmony in the region.

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CONTENTS

SECTION 1. DESCRIPTION OF THE REGION 1.1. Geography and climate.....................................................................................................................8 1.2. Demography.......................................................................................................................................9 1.3. Human resources...............................................................................................................................9 1.4. Education...........................................................................................................................................10 1.5. Property.............................................................................................................................................10 1.6. Economic potential..........................................................................................................................11 1.7. Success stories..................................................................................................................................14 1.8. Transport and communications...................................................................................................15 1.9. Socio-cultural sphere......................................................................................................................16 SECTION 2. INVESTMENT OFFERS 2.1. Priority spheres for investment....................................................................................................20 2.2. National projects in the region....................................................................................................20 2.3. Strategic regional projects.............................................................................................................20 2.4. Industrial property and land plots...............................................................................................21 SECTION 3. CONTACTS.............................................................................................................................26

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THE FOLLOWING INFORMATION AND SOURCES WERE USED WHILE DRAFTING THE INVESTMENT PASSPORT • • • • • • •

Ukraine’s Regions Competitiveness Report 2012 (http://www.feg.org.ua) State Statistics Committee of Ukraine (http://www.ukrstat.gov.ua) Khmelnytskyi Region Statistics Administration (http://www.km.ukrstat.gov.ua/ukr/ index.htm) Khmelnytskyi Region Statistical Yearbook 2012 Khmelnytskyi Regional State Administration (http://adm.km.ua) Ukraine's Investment Atlas 2013, the Agency Regional Investment Attractiveness Rating 2013, Kyiv International Institute of Sociology, Institute for Economic Research and Policy Consulting, the Agency

DEPARTMENT FOR INVESTMENT POLICY AND REGIONAL DEVELOPMENT

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KHMELNYTSKYI OBLAST

Investment passport of the region

Section 1. DESCRIPTION OF THE REGION

Geography and climate

Education Economic potential Ratings

Human resources Demography

Transport and communications

Khmelnytskyi oblast Success stories Property Socio-cultural sphere


1.1. Geography and climate MAP OF THE REGION

AREA OF THE REGION – 20.6 thousand km² ALTITUDE ABOVE SEA LEVEL - central part – 270-370 m (Podillia Eminence) - north – 200-250 m - north-west – up to 329 m (Volyn Eminence) - south-west – 409 m (Tovarovyi mountain range) - south – 121 m PRECIPITATION From 638 to 700 mm a year. Moderately continental climate.

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AVERAGE TEMPERATURE January: - 4.2 Ñ°, July: +22.2 Ñ° SUNNY DAYS PER YEAR – 200 WATER RESOURCES OF THE REGION There are over 3 thousand rivers flowing within the area of the region. The largest rivers are Dnister, Pivdennyi Buh, Horyn, Sluch, Zbruch, Smotrych. There are 60 storage reservoirs in the region with the water volume of 153 mln m³, 1,799 ponds. The largest storage reservoirs are Dnistrovske and Shchedrynivske on Pivdennyi Buh river. The region ranks 6th in the country by water reserves in the region.


DESCRIPTION OF THE MAIN RIVERS WITHIN THE REGION Dnister'’s basin

stretch, km

water intake area, km²

Zbruch (total)

247

3330

Zbruch (within the

247

1301

area of the region) Zhvanchyk

699

147

1718

Muksha

51

321

Studenytsia

76

444

100

1196

48

337

Smotrych

Ushytsia Kalius

105

stretch, km

water intake area, km²

Horyn

151

3880

Sluch

119

2064

Khomora

118

1445

Kirchyk

46

Dnipro'’s basin

stretch, km

Ploska

30

128

Samets (Kudrianka)

25

92

Buzhok

72

709

Vovk

72

905

Ikva

57

515

Pivdennyi Buh'’s basin

1.2. Demography THE LARGEST CITIES

AGE STRUCTURE

Major cities

thou.pers.

Khmelnytskyi

265.0

Kamianets-Podilskyi

102.7

Shepetivka

43.4

Netishyn

36.7

Slavuta

35.6

Starokostiantyniv

34.9

60 years and elder 22.3%

16-59 years old 61.6%

0-15 years old 16.1%

POPULATION – 1314.0 thousand people (as of 01.01.2013)

827 water intake area, km²

GENDER Male – 46.3%

Female – 53.7%

1.3. Human resources WORKABLE POPULATION (%)

EMPLOYABLE POPULATION – 1310.8 thousand people

Younger than employable 16.1%

REGISTERED UNEMPLOYMENT RATE 2.1% (to the employable population)

Employable 58.6%

AVERAGE WAGE – UAH 2425.0 (for 2012 as of 01.01.2013)

Elder than employable 25.3%

DIVISION OF EMPLOYEES BY ECONOMIC ACTIVITIES employees total – 119.2 thousand people industry agriculture, forestry and fishery wholesale and retail trade; repair of transport facilities, motorbikes construction transport, agriculture, post and courier service real estate activities administrative and auxiliary services professional, scientific and technical activity health care, social assistance information and telecommunications temporary accommodation and catering other services education financial and insurance activities

7.2% 5.8% 3.2% 3.0% 1.7% 1.1% 1.0% 0.9% 0.5% 0.2% 0.2% 0

10

40.4%

21.9%

12.9%

20

30

40

50

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1.4. Education There were 853 comprehensive schools with 128.9 thousand pupils in 2012/2013 school year. Vocational technical schools amounted to 34 units with 14.3 thousand students. Training of personnel with higher education by professional orientation is carried out in 21 higher education institutions (HEI), among which 11 HEI have I-II accreditation levels, 10 HEI have III-IV accreditation levels. HEI are divided into types in the following way: •1 technical secondary school •3 specialized schools •2 academies •7 colleges •6 universities •2 institutes 43.2 thousand people have got an education in HEI of all the levels of accreditation. LEADING HIGHER EDUCATION INSTITUTIONS of ²²²-²V levels of accreditation - Kamianets-Podilskyi National University named after Ivan Ohienko - Khmelnytskyi National University LEADING COLLEGES AND SPECIALISED SCHOOLS - Kamianets-Podilskyi College of Engineering, Architecture and Design State Higher Educational Institution - Kamianets-Podilskyi College of Food Industry of the National University of Food Technologies - Shepetivka Vocational School of Podillia State Agrarian and Technical University - Kamianets-Podilskyi Industrial College State Educational Institution - Kamianets-Podilskyi Vocational Boarding School of Economic Planning - College of Podillia State Agrarian and Technical University - Kamianets-Podilskyi College of Food Industry of the National University of Food Technologies - Khmelnytskyi Centre of Vocational Education in Services State Educational Institution - Hrytsiv Art Higher training College No. 19 - Netishyn Professional College - Podillia Centre of Vocational Education

Training domains

Students

9

30

3400

7

50

6957

State Educational Institution - Yarmolyntsi Professional College - Higher Training College No. 36, Balyn village, Khmelnytskyi region - Professional Agrarian College of Forestry State Educational Institution - Slavuta Professional College State Vocational Educational Institution GRADUATES in 2012 Educational institutions

thou. people

HEI I-II levels of accreditation III-IV levels of accreditation Technical schools

1.9 10.4 8.1

Comprehensive II degree

14.1

III degree

9.1

1.5. Property HOUSING 25.6 m² per one resident of the region HOUSING STOCK Total housing stock — 33,861.6 thousand m² with private houses included – 32,638.6 thousand m² AVERAGE HOUSING COST (apartments) primary market – 680.6 $/m² secondary market – 785.3 $/m²

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Faculties

AVERAGE HOUSING COST (houses) in the city of Khmelnytskyi amounts to (considering the cost of a land plot) 500-700 $/m² (average area of a land plot is 8-12 hundred m²), in Khmelnytskyi suburbs – 200-400 $/m² (average area of a land plot is 10-15 hundred m²). AVERAGE RENT – HOUSING 1-roomed flats UAH 1000-3000 per month 2-roomed flats UAH 1400-3500 per month 3-roomed flats UAH 1500-4000 per month


AVERAGE RENT – OFFICE SPACE – UAH 40 per m² Rental charge of office facilities depending on a facility category: • Category «À» – UAH 60 per m² • Category «Â» – UAH 50 per m² • Category «Ñ» – UAH 40 per m² • Category «D» and «Å» – UAH 30 per m²

AVERAGE RENT – PRODUCTION FACILITIES – UAH 21-30 per m² AVERAGE RENT – STORAGE SPACE, WAREHOUSES – UAH 18-30 per m²

1.6. Economic potential PRIORITY SECTORS OF ECONOMY IN THE REGION Khmelnytskyi region has industrial and agricultural economic orientation. Priority sectors are agriculture, food industry, electric power engineering, mechanical engineering and constructional materials industry. Khmelnytskyi region has powerful industrial complex and amounts to almost 2 percents of gross regional product of Ukraine. EXPORT/IMPORT, COUNTRIES, BALANCE The region carried out foreign trade transactions in goods with the partners from 104 countries, in services – from 70 countries in 2012. Export and import volume of goods amounted respectively to 460.4 and 564.9 mln USD. Compared to 2011 the exports increased by 17.0 %, the imports – by 1.8 %. Red ink of foreign trade made up 104.5 mln USD. Within six months of 2013 the exports volume amounted to 249.6 mln USD and the volume of imports – to 222.1 mln USD. Compared to the same period of 2012 the exports increased by 20.9% and imports decreased by 18.1%. Black ink of foreign trade is 27.4 mln USD. Major partners in export of goods

Major partners in import of goods 40.2%

Russian Federation

29.3%

Russian Federation

9.0%

Germany

10.7%

Germany

Kazakhstan

5.0%

China

Poland

4.8%

Saudi Arabia

9.7% 8.1%

Moldova

3.7%

Italy

3.7%

Тurkey

4.0%

Spain

3.6%

Belarus

3.8%

Netherlands

3.7%

Egypt

2.6%

Belarus

2.2%

France

Czech Republic

2.1%

Romania

0

10

6.8%

Poland

20

30

40

50

3.1% 3.0% 0

5

10

15

20

25

30

Exports and imports volumes of services amounted to 40.5 mln USD and 11.1 mln USD respectively and compared to 2011 amounted to 118.4% and 77.1%. Black ink of foreign trade in services made up 29.4 mln USD. The following services dominated in the structure of export of services by economic activities: - business, professional and technical services – 56.4% - transport services – 35.1% Compared to 2011 volumes of repair services increased by 2.7 times, services in architecture, engineering and other technical sectors – by 2.5 times, computer services – by 1.9 times, transport services – by 35.4%, travelling services – by 11.5%, services in agriculture, mineral extraction, on-site products processing – by 9.3%. The largest share in the imports of services was made up by travelling services (43.7%), different business, professional and technical services (13.0%), transport services (11.4%).

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Major partners in export of services Russian Federation

Major partners in import of services 43.7%

Russian Federation

17.9%

Germany

Czech Republic

10

9.6%

Germany

5.0% 0

11.6%

Cyprus

7.2%

Poland

12.5%

Poland

11.8%

Finland

36.0%

7.8%

France 20

30

40

Goods exported inputs, equipment and machinery; electrical machinery plant products polymeric materials, plastics and plastic products farm products, animal products stoneware, gypsum ware, cement ware other goods

30.5%

8.3% 8.3%

0

50

20.6%

20.4% 11.9%

5

10

15

20

25

30

35

40

Goods imported inputs, equipment and machinery; electrical machinery polymeric materials, plastics and plastic products ferrous metal and metal works surface transport facilities excluding railway ones textile materials and textile goods other goods 15.0% 38.3%

6.4% 7.0% 10.5%

22.8%

PRODUCTS MANUFACTURED IN THE REGION Manufacturing of particular industrial products

Unit weigh of the region in the economy of Ukraine, %

Central heating boilers

24.2

Dresses and sundresses for women and girls

17.4

Cement

15.6

NPP generated electric power

15.2

Electricity and conductor low-voltage cables for the voltage up to 1,000 V

14.0

White crystal beet sugar

10.9

Trailers and semi-trailers (excluding habitable and touristic ones)

10.1

Suits for men and boys

9.1

Dairy butter

8.9

Metal reservoirs and tanks with the capacity of about 300 l

7.9

Undenaturated ethanol with alcohol content not less than 80%

7.2

Footwear

6.9

Liqueurs, sweet fruit liqueurs, alcoholature, other spirits

6.2

Precast structures’' units for the construction using cement,

5.6

concrete or granolith

12

Fat cheese

5.1

Nonalcoholic beverages

4.9


Pebbles, gravel, detritus and crushed stone

4.3

Ceramic building non-fire bricks

4.2

MAJOR COMPANIES LOCATED IN THE REGION Name Ukrelektroaparat PJSC Podilskyi Tsement PJSC

Khmelnytskyi maslosyrbaza PrJSC Shepetivka bakery sales depot PJSC Bakaliia PrJSC Teofipol Sugar Production Plant PJSC

Location

Type of activity

Khmelnytskyi

manufacturing of electric motors, generators and transformers

Humentsi village, cement production Kamianets-Podilskyi district Khmelnytskyi Shepetivka Khmelnytskyi

processing of milk, production of butter and cheese post harvesting activity non-specialized wholesale of foods, beverages and tobacco

Teofipol urban sugar production settlement, Teofipol district

Khmelnytskhas Gas Supply PJSC

Khmelnytskyi

distribution of gaseous fuels through local pipelines

Hermes LLC

Khmelnytskyi

non-specialized wholesale of foods, beverages and tobacco

Karat LLC

Khmelnytskyi

manufacturing of carpets

AVIS Agrarian Enterprise PJSC

Khmelnytskoblenerho PJSC Krasyliv Obolon PJSC Subsidiary

Humentsi village, poultry farming Kamianets-Podilskyi district Khmelnytskyi Krasyliv, Krasyliv district

electric power distribution production of nonalcoholic beverages; production of mineral water and other bottled water

Novator State Enterprise

Khmelnytskyi

manufacture of instruments and equipment for measurement, research and navigation

Sirius Extrusion LLC

Khmelnytskyi

manufacturing of plastic packing

Starokostiantyniv Diary Plant Subsidiary

Starokostiantyniv

processing of milk, production of butter and cheese

Akva-Rodos LLC

Slavuta

furniture production

Bud-farfor Slavutych Plant PJSC

Slavuta

manufacture of ceramic sanitary ware

Lotivka Elit LLC

Lotivka village, Shepetivka district

growing of cereals (except rice), leguminous crops and oil seeds

2004 Agrarian Company PE

Popivtsi village, Volochyisk district

growing of cereals (except rice), leguminous crops and oil seeds

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Volochyisk-Ahro LLC

Volochyisk, Volochyisk district

growing of cereals (except rice), leguminous crops and oil seeds

2001 Ukraina LLC

Teofipol urban growing of cereals (except rice), leguminous settlement, Teofipol crops and oil seeds district

Rum Ltd LLC

Khmelnytskyi

retail trade in fuel

TK-Olherd LLC

Khmelnytskyi

retail trade in fuel

Modul-Ukraine LLC

Kamianets-Podilskyi pig iron, steel and ferroalloys manufacturing

MAJOR FOREIGN INVESTORS In 2012 foreign investors contributed 20.3 mln USD of direct investment (stock capital) into the economy of the region. Since the beginning of investment 208.6 mln USD of direct investment (stock capital) was contributed into economy of the region as of December 31 2012. The economy of Khmelnytskyi region is invested by 41 countries. The countries-investors, comprising 90.5% of the total volume of direct investment include: •Netherlands – 122.8 mln USD •Cyprus – 20.3 mln USD •Poland – 14.3 mln USD •Virgin Islands – 9.1 mln USD

•Germany – 8.8 mln USD •Great Britain – 7.4 mln USD •Russian Federation – 6.1 mln USD 58.9%

Netherlands Cyprus

9.7%

Poland

6.9%

Virgin Islands

4.4%

Germany

4.2%

Great Britain

3.5%

Russian Federation

2.9% 0

10

20

30

40

50

60

VOLUMES OF DIRECT FOREIGN INVESTMENTS AT THE BEGINNING OF YEAR 2011 – 183.0 mln USD 2012 – 186.8 mln USD 2013 – 205.1 mln USD

1.7. Success stories Project’s specifics

Project’s initiator

Information on initiator

PODILLIA CEMENT PJSC Podillia cement PJSC, The shareholder is CRL Poland Products & implemented the innovative project Kamianets-Podilskyi Distribution B.V. Netherlands, Einsteinlaan to change moist cement production district, 26, 2289 CC Rijswik. for a dry one. Humentsi village (CRL Poland Products & Distribution B.V. Netherlands)

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Duvelsdorf Ukraine LLC approved manufacturing of agricultural machinery

WIX-Filtron LLC approves manufacturing and distribution of automotive filters for motorization, motor machinery and equipment Tin Impex LLC approved aluminium production. Steel and pig iron casting

Duvelsdorf Ukraine LLC, Khmelnytskyi, Kurchatov St. 8 (Duvelsdorf Handelsgesellschaft Mit Beschrankter Haftung)

The founder and owner is Duvelsdorf Handelsgesellschaft Mit Beschrankter Haftung, Im. Fort 10, Ottersberg-Bhf, Germany

WIX-Filtron LLC In 2005 the shareholders of Wix-Filtron (WIX Filters «Affinia LLC, representatives of AFFINIA Group i Group», New York) WIX-Filtron Sp.zoo, founded a new production enterprise in Khmelnytskyi region. Tin Impex LLC 29000, Ukraine, Khmelnytskyi, Svobody St. 36, of. 403

The company was founded October 26, 1998 as a subsidiary of the TIN IMPEX GMBH Titan and Non-Ferro Metalle German Limited Liability Company, December 15, 2004 it was reorganized into a Tin Impex Limited Liability Company.

1.8. Transport and communications Geopolitical location of the region in terms of transport routes linking the main industrial regions of Ukraine (capital, Kharkiv, Prydniprovia, Donbas) and Russia as well as Black Sea ports with western Ukraine and countries of Central and Western Europe is of a particular importance to the region. MAJOR MOTORWAYS Highways of the region pass from north to south and from west to east through the regional centre. The largest motor traffic centres of the region are Khmelnytskyi, Starokostiantyniv, Shepetivka. Operational length of motor roads is over 7 thousand km. The region is crossed by the international motor road Stryi - Ternopil - Vinnytsia - Kirovohrad - Znamianka and national motor road Zhytomyr - Chernivtsi (H0Ç). AIRPORTS Khmelnytskyi Airport is located in 7 km southwest of Khmelnytskyi. The total area of the land plots comprised by the airdrome is 134.2 ha, including airfield of 13.2 ha. Khmelnytskyi airport has the capacity for international air transportation. There is a check-point for crossing the state border of Ukraine. RAILWAY NETWORK Khmelnytskyi is an important transport centre; it has communication with the European railway network, in particular with the European capitals: Moscow, Prague, Bratislava, Warsaw, Budapest, Belgrade. The services of freight and passenger traffic are provided by over 50 railway stations. The largest rail interchanges in the region are Shepetivka and Hrechany located in Khmelnytskyi. The railway network of the region crosses the region from north to south and from west to east; it administratively belongs to the South-Western railway.

BUS ROUTES DIAGRAM from Khmelnytskyi

Brest

Warsaw Prague

Lutsk Ternopil Lviv Іvano-Frankivsk

Rivne

Kyiv Zhytomyr

Kharkiv

Khmelnytskyi

Chernivtsi

Vinnytsia

Donetsk

Chisinau Оdesa

Sevastopol

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BUS TERMINALS Khmelnytskyi bus station No. 1 is certified as the II-category bus station; it services intercity and international bus routes. There are also III-category bus station in the city No. 2 and No. 3 servicing intercity and suburb routes. In Kamianets-Podilskyi, Netishyn, Slavuta, Starokostiantyniv and Shepetivka there are III-category but stations servicing suburb, city and international routes. TRANSPORT MAP

1.9. Socio-cultural sphere MAJOR HEALTH CARE INSTITUTIONS There are 77 medical institutions for 11.6 thousand beds in Khmelnytskyi region. The network of outpatient clinics numbers 295. CULTURE, SPORT, ÒOURISM There 3 professional theatres, 24 museums, 944 libraries, 1,176 clubs in Khmelnytskyi region. Major leisure and recreation spots Name

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Description

Khmelnytskyi City Community Centre (Khmelnytskyi, Proskurivska St. 43)

The building of the city community centre was erected in Õ²Õ c.; it is a historical memorial located in the centre of Khmelnytskyi city; it seats 550 spectators. There are 24 amateur groups, including: Veselka dance group, Uspikh group of ballroom and modern dance, Nadvechiria veterans' choir, bandura players chapel, Dzerkalo Vsesvitu theatre, Namysto master folk dance group.

Kamianets-Podilskyi City Community Centre (Kamianets-Podilskyi, Shevchenko St. 20)

City community centre is a centre of cultural activities of local inhabitants and visitors. Its auditorium seats 900 spectators; there is a dress circle and a stage with orchestra pit. There are 40 clubs including 8 amateur and 3 model groups, 15 amateur associations and clubs, cinema and photo workshop etc.


Shepetivka City Community Centre (Shepetivka. Karl Marks St. 54)

The community centre is the centre of communication, recreation and development of creativity of the inhabitants of the city; it has considerable material and technical resources and the concert hall which sits 603 spectators. There are 16 vocal and choral, instrumental, choreographic and theatrical clubs. Five groups have Amateur and Model honorary title.

Amusement park named after Mykhailo Chekman

It is a large central park of Khmelnytskyi city. The area is 55.2745 ha. Within its area one can find a small zoo, rides and recreation corners.

MUSEUMS Excursion tours by different museums show you round the cultural history of Khmelnytskyi region, local traditions of old times and present-day achievements. Khmelnytskyi Regional Museum of Local History (founded in 1929) number 64,993 museum exhibits. The collection of Khmelnytskyi Regional Art Museum (founded in 1986) numbers almost 7 thousand exhibits and presents creative work of almost fifty modern Ukrainian painters. The basic fund of Khmelnytskyi Regional Literature Museum (founded in 1993) numbers 4,877 exhibits. The museum includes Anna Akhmatova literature memorial museum. The museum is located in the former estate of her aunt Anna Erazmivna Vakar. Mezhybizh State Historical and Cultural Reserve includes the castle of ÕIV- ÕVI c., the palace of ÕV² c., the church of 1586, walls with towers of ÕV² c. and adjacent area. The main fund includes 5,548 exhibits. The castle dated back to Õ²V-Õ²Õ c., is one of the oldest fortifications of the Western Podillia. Maietok Samchyky Palace and Park ensemble is one of the largest brilliant works of architecture and landscape design of Ukraine. The main fund of the museum collection consists of 2,221 exhibits. There is the only one in Ukraine Japanese room and Chinese room with the refrigerator of 1725; the park with the area of 19 ha of 1801, the second in the Eastern Europe Gothic linden lane and Sad v Murakh open greenhouse; the reserve numbers over 260 rare trees and shrubs; Staryi Palats dated 1725 with interesting caves; palace halls with stucco interior moulding is one of the best palaces in the Art of XVIII-Õ²Õ c. in Ukraine. Regional Literature Memorial Museum named after M. Ostrovskyi is a unique model of Soviet architecture. The main fund of the museum collection includes 17 thousand exhibits. In 1989 the museum was recorded in the World's Museums International Catalogue. NATURAL RESERVES Khmelnytskyi region comprises 269 areas and sites of nature reserve fund: 39 preserves including 15 state preserves, 198 nature memorials, including 4 state ones, Kamianets-Podilskyi Botanic Garden, 7 reserve holes, 24 parks-memorials of landscape design including 8 state ones, one UNESCO memorials – Struve Arc, its 3 of four sites in Ukraine are located in Khmelnytskyi region. Podilski Tovtry National Natural Reserve 129 sites of natural reserve fund are protected by the State within the area of Podilski Tovtry National Natural Park including the parks and estates of different preservation levels as well as cultural and historical value; 2,977 species of plants from different climatic zones grow in the Park including 521 species of trees and shrubs; shrubbery and gramineous flora – 395 species of fruiters, 620 species of tropical plants, 111 species of medicinal plants of local and wild flora, 19 archaeological monuments, over 302 memorials of history and architecture. Male Polissia National Natural Park It was created to preserve valuable natural complexes and heritage sites of the eastern part of Male Polissia, which is of environmental, scientific, aesthetic, recreational and health-improving value. Khmelnytskyi region ranks one of the first among the regions of Ukraine by the number of nature reserve fund sites. Kamianets National Historical and Architectural Reserve It is included in the nomination Seven Wonders of Ukraine. Kamianets-Podilskyi is the city which preserved the spirit of the Middle Ages. The old city functions like unique architectural complex of 121 ha being separated for the rest of the city's districts by Smotrych river deep canyon Smotrych.

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Mezhybizh State Historical and Cultural Reserve The fortress is Mezhybizh's gem, its extraordinary memorial. The history of the structure dates back to remote ages, it has a merited place among medieval fortresses of the world. Samchyky State Historical and Cultural Reserve Samchyky Estate palace and park ensemble is one of the most brilliant work of architecture and landscape design in Ukraine of the mature classicism. Among estate ensembles of Ukraine Samchyky Estate is attractive by its building that preserved the same appearance as it had at the end of XVIII – the beginning of XIX centuries. SANATORIUMS In the region there are 16 health-improving establishments, 13 sanatoriums, 1 sanatorium-preventorium, 2 recreation centres and other recreational establishments. The most famous ones are the following: • Sataniv State Resort is located in the largest in Europe Podilski Tovtry National Natural Park with its unique natural phenomenon Tovtry Range mixed with a picturesque valley and river landscape of Zbruch river. In 1970-1978 one of the largest springs of mineral water in Europe of Naftusia type was discovered and studied here; it was named Zbruchanska. • Makiv Local Resort with mineral water of Myrhorodska type which asserted reserves amounts to 60 m³ per day and mineral water of Naftusia type which asserted reserves amounts to 43 m³ per day, actual utilization – 2 m³ per day. HOTELS Adamant Hotel and Restaurant Complex 5* 3/1 Kuprin All.) Kolizei Hotel and Restaurant Complex 4* (1A Chkalov St.) Lybid Plaza Hotel 4* (21 Kamianetska St.) Sobkoff Hotel and Restaurant Complex 4* (15/1 Prybuzka St.)

www.coliseum.km.ua www.lybid-plaza.ua www.sobkoff.com

Yanisol Hotel 3* (40-à Svobody St.)

www.yanisol.com.ua

Vik-Zhan Hotel 3* (5/1 Berezneva St.)

www.vik-jan.com.ua

Kleopatra Hotel 4* (39/2 Ohienko St., Kamianets-Podilskyi) 7 Days Hotel 3* (4 Soborna St., Kamianets-Podilskyi) Medzhybizkyi Zamok Hotel 4* (1/1 B. Khmelnytskyi St.,

www.kleopatra-kp.com www.7dniv.ua -

Trebukhivtsi village) Paradiz Hotel 3* (72 Hrushevskyi St., Krasyliv)

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www.paradis.km.ua


KHMELNYTSKYI OBLAST

Investment passport of the region

Section 2. INVESTMENT OFFERS

Industrial property and land plots

Priority spheres

Іnvestor

National projects in the region

Strategic regional projects


2.1. Priority spheres for investment 1. 2. 3. 4.

of construction materials 5. Agriculture 6. Touristic, recreation and resort infrastructure

Mechanical engineering and metal working Food and processing industry Electric-power industry Extractive industry, manufacturing

2.2. National projects in the region - «NEW LIFE» – opening of a new regional perinatal centre (23.05.2013). - «ENERGY OF NATURE» – implementation of projects in biomass energy utilization and energy saving. - «OPEN WORLD» – providing of comprehensive schools of Khmelnytskyi region with informationcomputer technology and multimedia equipment as well as access to Internet network. - «GREEN MARKETS» – creation of modern wholesale market of agricultural products in Khmelnytskyi region. - «CLEAN CITY» – implementation of the project of construction of solid domestic waste processing plant in Khmelnytskyi. - «INDUSTRIAL PARKS OF UKRAINE» – creation of Slavuta and other industrial parks. - «TIMELY ASSISTANCE» – creation of unified regional operational dispatching service applying GPRS technology in the functioning of emergency service.

2.3. Strategic regional projects Name of the project

Construction of peat processing plant on PODILLIA-TORF SE raw materials base

Construction of glauconite extraction and concentration plant

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initiator

cost

term of

implementa- implementation stage tion

PODOLLTORF 16,055 6 years State thousand (72 Enterprise USD months)

Ukrainian Modern Technologies LLC

expected results

ready to be launched, business plan and investment offers are developed as well as preliminary feasibility study of the project

The whole point is the construction of the plant, buying of equipment, developing of the available resource base. The goal is the production of substrates, peat briquettes, pellets; creation of conditions to decrease unemployment rate in the region; to increase public and social funds' revenues; creation of jobs with high wages; providing social security to workers.

21,000 2.5 years all the thousand necessary USD permits and licenses are collected

Construction of glauconite extraction and concentration plant that would allow effective utilizing of glauconite-silica sand deposits located within the area of the region. Major items of production of the enterprise resulting from the investment project implementation would be the following: Glauconite concentrate (with 95% glaukonite content) Enriched glauconite (with 45-50% glauconite content).


Reconstruction of Khmelnytskyi Airport Project

Khmelnytskyi 107,500 thousand Airport USD, construction of hotel – 2,750 thousand USD

3 years

investment offer

- Development of international flights to Moscow, Krakow, Minsk; - Development of regular flights to Kyiv, Lviv, Warsaw; - Development of internal Ukrainian flights; - Recreation-related internal and international charter flights (Simferopol, Odesa, Sochi, Istanbul, Varna etc.); - Creation of modern international airport and its further development as an integral part of the transport infrastructure.

2.4. Industrial property and land plots Area

Location

Brief description INDUSTRIAL PROPERTY

159.45 ha (including 100 ha within city area)

Iziaslav city, a part of an area of a cantonment

It is not currently utilized. Ground-water level does not exceed 3 m. There are destroyed buildings (barracks and store premises) of the former cantonment. Destruction – 70-100%. The land plot is located near: - Kyiv-Chop highway M 06 (E 40); - national road – 101 km (Rivne city) and 88 km (Novhorod-Volynskyi city, Zhytomyr region); - railway – 0.8-1.0 km to the railway station (without access railway track); - Airports Khmelnytskyi – 105 km and Rivne – 101 km (Lviv international airport – 259 km); Infrastructure: electric supply (1,000-2,000 m to the nearest transformer); gas supply (1,000-1,500 m to the gas pipeline); water supply (500-800 m to the operational water pipeline). The land plot is valuated.

15.34 ha

Volochyisk, 15 Kotovskyi St.

Greenhouse complex. Available infrastructure of the area: electric, water, gas supply, sewerage system, access roads for trucks.

13.0 ha

Volochyisk, Kryvachyntsi Village Council outside Kryvachyntsi village

Former fattening complex (old perennial planting).

6.5 ha

Bilohiria district, Mokrovolia Village Council, Mokrovolia village

Purpose – agricultural lands, industrial premises and yards. Industrial premises are pull down to the foundation. Only electric supply is available. Dirt motor road. Railway communication – 4 km (the nearest communication point). Suggestions on purpose: commercial activities. Possible form of land plot transfer – lease with option to purchase.

5.8 ha

Kamianets-Podilskyi, Krypiakevych St.

Integral property complex of the former tobacco factory. Available infrastructure of the area: electric, water, gas, heating supply, sewerage system, access roads for trucks, access railway track.

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5.0 ha

Bilohiria district, Vorobiivka Village Council near Vorobiivka village

Purpose – agricultural lands, industrial premises and yards. State ownership. Possible form of land plot transfer – lease with option to purchase. Industrial premises are pull down to the foundation. Electrically supplied area – 380 m². Improved motor road. Distance to the nearest railway communication point – 3 km. Suggestions for the land plot utilization – commercial activities.

5.0 ha

Starokostiantyniv district, Derkachi village

This area was occupied by a stock-farm, there is a water supply. Approximate cost is 129,294.3 UAH. Transport infrastructure: - distance to the railway – 22 km; - distance to Khmelnytskyi – 72 km; - distance to one of the nearest arterial highway – 27 km.

4.5 ha

Letychiv district, Trebukhivtsi village, 34 Pershotravneva St.

The land plot with industrial premises of the former Mezhybizh Canning Factory PJSC of 4.5 ha belongs to Trebukhivtsi Village Council. It is not currently utilized. The owner of the premises changes almost every year. The land plot can be rent with option to purchase. The option of purchase by the investor of the integrated property complex from the private owner to create a new production infrastructure of the land plot. The area of the land plot can also be used for recreation zone – it is located near Pivdennyi Buh river. It is located in 1 km from Stryi-Ternopil-Kirovohrad-Znamianka motorway. Distance to the railway – 22 km.

2.8ha

Horodok, 39 Shevchenko St.

The area of the former Hover LLC property complex; there are capital buildings (purpose, area, communications): engineering shop of 5.8 thousand m²; blanking shop of 1.2 thousand m²; finished-products storage area – 0.5 thousand m²; the networks are provided (electric supply, sewerage system).

2.6 ha

Letychiv district, Stavnytsia village, 4 Lenin St. Medzhybizh Repair and Transportation Company PJSC

The land plot of 2.6 ha belongs to Medzhybizh Repair and Transportation Company PJSC (State Act on Property Rights). Industrial premises of 1,600 m², workshops – 700 m², barns – 1,200 m². The land plot can be purchased having arranged with the shareholders – owners if the integrated property complex. There is own substation, tank tower. The land plot is located near Stara Syniava-Khmelnytskyi motorway. Distance to the railway – 22 km. It is located in 3 km from Stryi-Ternopil-Kirovohrad-Znamianka motorway.

Area

Location

Brief description LAND PLOTS

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55.6865 ha

Netishyn, northward from an apartment block of the city

The land plot is located in the area of motorways of city construction importance near the main Khmelnytskyi-Lviv highway. The land plot borders with the forest. Distance to the city – 800 m. The land plot is a municipal property of the local community and rent to Atommontazhservis LLC for apartment block and public buildings construction.

40.9 ha

Slavuta, Ya. Mudryi St. (the area of cantonment, training ground, No. 36 in master plan)

- no industrial premises and equipment; - water, heating and gas supply is in about 200 m; - electricity is supplied; - convenient access to Rivne-Horodyshche-Starokostiantyniv state motorway Ð05 of the third technical category; - 2 km to the branch line.


25.0 ha

Nova Ushytsia district, Otrokiv village

Geological studies of the land plot were not carried out, ground-water level is 7 m.

20.0 ha

Khmelnytskyi district, Kopestyn village

It is located along the detour road around the city of Khmelnytskyi (Ì12 international motorway). The landscape is plain. Distance to the nearest railway station – 3.5 km, to the centre of Khmelnytskyi city – 15 km.

20.0 ha

Shepetivka district, Novychka Village Council

Agricultural-purpose land plot. The land plot adjoins to the railway and motorway. The nearest Shepetivka-Polonne highway is approximately 1 km.

17.0 ha

Nova Ushytsia district, Zamikhiv village

Geological studies of the land plot were carried out; ground-water level is 7-10 m, gray gley soil.

16.0 ha

Starokostiantyniv district, Samchyky village

There are deposits of white clay within the area of the land plot, thus it can be offered to construct a porcelain of silica plant. Approximate cost is 2594879.92 UAH. Transport infrastructure: - distance to the railway – 10 km; - distance to Khmelnytskyi city – 60 km; - distance to one of the nearest arterial highway – 1 km.

15.18 ha

Polonne, Ac. Herasymchuk St., unnumb.

The land plot adjoins to the developed Novohrad-Volynskyi – Starokostiantyniv paved motorway and to South Western Railway line. Khomora river with Druzhnia tributary flow nearby. The land plot is surrounded by coniferous and deciduous woodland. Radon mineral water wells are located in this area. Mineral water-based medical institution can be constructed in this area.

7.0 ha

Vinkovtsi district, Hrymiachka village

Free state-owned agricultural-purpose land plot (utility yards)

5.5 ha

Kamianets-Podilskyi, Parkhomenko St.

The land plot is a broken polygon with a wide front-end line, convenient access, borders with railroad tracks, located at a considerable distance from residential buildings in an industrial area, the networks are available nearby.

5.0 ha

Horodok district, Kurivka village (outside the settlement)

Open land plot without any structures. The distance to the paved road – 3.0 km, distance to the town – 40 km, to the regional centre – 80 km. Distance to gas pipeline – 0.4 km; water pipeline tank tower) – 0.5 km, drilling of a well is possible; electric supply (substation) – 0.3 km. Intended for commercial agriculture.

2.0 ha

Khmelnytskyi, 79/1 Pilotska St.

For the construction of industrial facilities. Land category – industrial, transport, communication, power engineering, defence and other purpose lands.

1.8 ha

Khmelnytskyi, (5/1 Prybuzka St.)

For the construction of sports and health-improving facilities. Land category – recreational purpose lands.

1.0 ha

Khmelnytskyi, 17/1Ê Ternopilska St.

For the construction of public and industrial facilities. Land category – industrial, transport, communication, power engineering, defence and other purpose lands.

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KHMELNYTSKYI OBLAST

Investment passport of the region

Section 3. CONTACTS


KHMELNYTSKYI REGIONAL STATE ADMINISTRATION 1 Maidan Nezalezhnosti, Council Building (Budynok Rad), Khmelnytskyi 29005 Tel.: +38 (0382) 76 50 24 E-mail: regadm@adm-km.gov.ua Website: www.adm.km.ua KHMELNYTSKYI REGIONAL COUNCIL 1 Maidan Nezalezhnosti, Council Building (Budynok Rad), Khmelnytskyi 29005 Tel./fax: +38 (0382) 76 45 17 E-mail: oblrada@oblrada.km.ua Website: www.oblrada.km.ua KHMELNYTSKYI REGIONAL CENTER FOR INVESTMENT AND DEVELOPMENT 74 Kamianetska St. Khmelnytskyi 29013 Tel.: +38 (0382) 65 47 15 E-mail: khmelnytskyi.rcid@ukrproject.gov.ua Website: www.investcenter.km.ua KHMELNYTSKYI CHAMBER OF TRADE AND COMMERCE 109/1 Podilska St., Khmelnytskyi 29001 Tel./fax: +38 (0382) 78 53 69 Website: www.khmelcci.km.ua

CENTRE FOR ADMINISTRATIVE SERVICES OF KHMELNYTSKYI 16 Soborna St. Khmelnytskyi 29000 Tel.: +38 (0382) 70 27 71, +38 (0382) 65 85 13, +38 (0382) 76 43 41 E-mail: cnap@rada.khmelnytsky.com Website: www.cnap.khmelnytsky.com

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Department for Investment Policy and Regional Development 11 Velyka Zhytomyrska str., Kyiv, 01601 tel. +38 (044) 270 63 05 www.investukraine.com/uk/regions e-mail: region@ukrproject.gov.ua


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