KYIV 2025 DEVELOPMENT STRATEGY
CENTURIES-OLD TRADITIONS, MODERN QUALITY OF LIFE KYIV 2025 DEVELOPMENT STRATEGY
INTRODUCTION
Oleksandr POPOV, Head of the Kyiv City State Administration
Dear fellow citizens! Dear Kyiv residents! I am happy to inform you that the development and discussion of the Kyiv City Development Strategy Until 2025 have been completed. Kyiv is the capital city of a modern European state with a thousand of years’ history and rich cultural traditions. As the head of the Kyiv City State Administration, I see my duty as helping to preserve the unique identity of our ancient city while securing high living standards for its residents. I am confident that the achievement of the set objectives is only possible through wise planning and the accurate implementation of the respective plans. This Strategy is the a document that sets out the main objectives for the development of Kyiv until 2025. KEY OBJECTIVES: • A considerable improvement in the living standards of Kyiv residents • Active growth of the city’s economy • Preservation of Kyiv’s unique historical and architectural identity STRATEGY DEVELOPMENT CRITERIA: • Mathematical precision. We have tried to fill our development plans with as many exact figures as possible to make them specific and measurable. • Transparency. The Draft Strategy is available for open access. The process of implementation of the Strategy’s provisions will be constantly monitored. The respective reports will be made available to Kyiv residents for inspection and correction. • Inheritance. While developing this Strategy, we took into account the mistakes of the past and identified the ways to remedy them. The Kyiv development plan will serve as a guideline for all representatives of the city’s authorities, both present and future. Many people worked on the development of this Draft Strategy: Kyiv residents and guests, private and public sector workers, retired persons and businessmen. During public hearings, we received over 4,000 proposals from Kyiv residents living in all of the city’s districts, specialists in the widest variety of fields. All the ideas were analyzed, systematized and incorporated in the final version of the document. The final version of the Draft Strategy is the result of joint efforts of all Kyiv residents. The creation of the Kyiv Development Strategy is an important step towards the resolution of the city’s problems. This is the way towards the achievement of modern standards of living, towards a decent future. Most importantly, we must accomplish the tasks before us. The success of the implementation depends on each and every one of us. We continue our dialogue with Kyiv residents. As before, everyone may submit their comments regarding the Strategy and their wishes as to the ways and methods of its implementation via the special section on the official website of the Kyiv City State Administration at: http://kmv.gov.ua/strategy.asp. I thank you all.
STATEMENTS MADE BY YOUNG KYIV RESIDENTS
MY KYIV IS THE CITY OF MY FUTURE “I love my city, and its name is Kyiv. We have greener leaves and bolder dreams. [...] I love my city and I have always loved it, Because it gave me inspiration! [...] But sometimes it seems to me That the city is tired and has no more strength. [...] And if I could change something now, I would do everything to make its soul blossom again. [...] But I still have the belief inside me, I believe that the dreams will come true. [...] I believe that my city will one day Shine bright as the best of necklaces, That we will always be happy in our city, And that we will never lose all our values...” (This is an interlinear word-by-word translation of a poem by Oleksandra A. Frolova, a student of class 10-Б(‘B’) in Gymnasium No. 287) “If someone asks me what my most favorite city is, I will say without hesitation that it is Kyiv. And not only because I was born, grew up and met my first friends here, but also because if one visits Kyiv at least one time, one will want to come back here again and again.” (Dariia I. Novokhatska, class 7-Б(‘B’), School No. 263) “Kyiv has enormous potential, but it does not fully exploit it. At present, our city is not only the center of social, political, public and economic life of Ukraine, but also a large European city with a unique history and amazing architectural sights, an important spiritual center of the entire continent. It is precisely Kyiv’s geopolitical location that secures its prospects of becoming the meeting site of two worlds – the West and the East. Our task is to make this statement not only an ambitious slogan, but also the foundation of our city’s development strategy for decades to come.” (Mariia D. Hryshchenko, class 11, School “Intellect”) “Our city is constantly changing: like a huge octopus, its underground railway system is spreading its tentacles – the new lines; its web of roads and highways impresses with its size; newly built bridges rise over the Dnipro River; and mirror-glass skyscrapers sprout up like mushrooms next to older well-known buildings. Some districts are even hard to recognize: their squares have been rebuilt, new road junctions have been created, new monuments have been erected. All this reminds me of a person who strives to look stylish and fashionable. Kyiv is also trying to keep up with the latest architectural fashions and maintain its status as a modern European capital. Some of the new ‘accessories’ do, of course, suit it well, while some others look simply comical. I think that the old architecture and the modern architecture should be blended in a very careful manner to preserve the unique atmosphere of our city.” (Anna Ivanovska, class 7-Г(‘G’), School No. 159) “Kyiv has always attracted artists. Not one painter has depicted its beauty, not one poet has praised its amazing ancient buildings. It seems to be an eternal city!” (Mykola O. Okhotnik, class 10-Б(‘B’), School No. 287) “Moving forward is always the right thing. Reaching new heights, developing the city, focusing on European trends, implementing wise reforms are necessary for the city’s existence.” (Veronika V. Volkova, class 11-A, School No. 161)
“As to the future, I think it is necessary to arrange the transport system, which currently creates the most annoying problems for nearly everyone in the morning and evening hours. Personally, I also wish to see people from all over the world striving to come hear to study, work, or stay forever, just like our fellow countrymen dream of going to Europe, the USA, etc. After all, we have all the necessary things, and it is simply much easier to go to another place where someone has already arranged everything than to change one’s own city for the better. But someone has to do this!” (Nataliia S. Sinkevych, class 11-A, School No. 238) “When I am asked about my vision of Kyiv, I answer that I want to see it as a city with unmatched architecture and a unique culture. I want to see Kyiv as a truly European city, prosperous for 90% of its residents. I want to see our city developed in accordance with the General Development Plan to preserve the historical authenticity of our city, and therefore, our country and our nation.” (Nataliia S. Neznanova, class 10-A, School No. 214) “In future, I see Kyiv as one of the main centers of international cooperation. Our city, located on the banks of the Slavutych [the ancient name of the Dnipro River], is gradually becoming an important center of international tourism. This is a prestigious achievement for any country and a reliable source of funding for the budget, which is particularly important in the context of the current situation in Ukraine. I find one of the prospects for my own professional future in the field of tourism services associated with the presentation of the cultural and historical heritage of Kyiv residents and all Ukrainians to the global community.” (Nataliia Slonodianiuk, class 10-A, School No. 301) “I hope the shopping mall building boom will soon come to an end, and businessmen will start investing their money in the construction of libraries, mini-theaters, and sport grounds. And each of us will find a convenient and easily accessible site for our pastime and leisure activities. Good roads will run not only in the city center; underground trains will run to the remotest districts, and new trolleybuses will quickly bring us to our destinations. All plants and factories will be moved out of the city – and we will enjoy the fresh air. Eco-cars will drive along our roads and purify the air, etc.” (Sofiia V. Adamenko, Class 10-Б(‘B’), School No. 84) “In this essay, I want to address all those people who do not appreciate what they have. Let us make our city even more beautiful than it is now. Perfection has no limits. I do not mean that we will get rid of all our problems in one go, but we will do so gradually. All together, we will bring our Kyiv to the European level.” (Yuliia M. Blashchuk, class 10-A, School No. 281) “[...] And my city has a lot of plans, A lot of countless plans, And I want so much To see them implemented. I do not know What the future holds, But I believe: Kyiv will flourish forever!” (This is an interlinear word-by-word translation of a poem written by Daryna M. Bondar, a student of class 8-A in Boarding Gymnasium No. 13)
THIS KYIV CITY DEVELOPMENT STRATEGY IS THE RESULT OF A SYNTHESIS OF IDEAS PRESENTED BY LEADING INDUSTRY EXPERTS, ANALYSTS, PUBLIC OFFICIALS, ACTIVISTS AND THE CITY COMMUNITY IN GENERAL
ACKNOWLEDGMENTS TO THE PARTICIPANTS IN THE DEVELOPMENT OFÂ THE KYIV CITY DEVELOPMENT STRATEGY Every idea submitted with the comments of our citizens, every expert opinion and every critical remark have helped us improve this document, crystallize our vision of the future and identify the key strategic objectives for the development of our city. The Strategy Development Consortium is grateful to all those who contributed their comments, ideas and remarks in the process of creating this Strategy, and particularly to the following individuals:
PUBLIC COUNCIL FOR KYIV STRATEGY DEVELOPMENT
UKRAINIAN AND INTERNATIONAL ORGANIZATIONS
Yurii S. Anistratenko Anatoliy V. Berkuta Viacheslav M. Bykovets Serhii P. Bronevytskyi Serhii N. Bubka Serhii A. Vovk Oksana M. Halenko Valerii M. Heiets Ihor A. Holubakha Viktoriia O. Hryb Olena A. Hromnytska Ihor A. Huzhva Vadym I. Denysenko Volodymyr V. Zhmutskyi Nataliia P. Zabolotna Jorge Zukoski Nataliia V. Izosimova Serhii M. Kvit Nelia M. Kukovalska Andrii V. Kulikov Kyrylo B. Kulikov Volodymyr M. Lavrenchuk Ihor V. Lysov Ella M. Libanova Mark I. Mahaletskyi Oleksandr V. Martynenko Vitaliy F. Moskalenko Serhii L. Osavoliuk Yuliia S. Palamarchuk Valentyn D. Parii Lev R. Partskhaladze Mykhailo B. Radutskyi Hryhorii M. Semchuk Larysa P. Skoryk Eduard S. Sokolovskyi Tamara T. Sulukhiia Olha V. Sumska Vladyslav Yu. Troitskyi Arseniy L. Finberg Serhii A. Tselovalnyk Dmytro A. Shymkiv Roman V. Shpek Nataliia Yaresko
Deutsche Gesellschaft fur Internationale Zusammenarbeit (GIZ) GmbH United States Agency for International Development (USAID) American Chamber of Commerce (ACC) Kyiv Cyclists Association, an NGO National Cultural-Art and Museum Complex Mystetskyi Arsenal, a state-run enterprise European Business Association International Finance Corporation (IFC) United Nations Development Programme Regional Council of Entrepreneurs in Kyiv Ukrainian Social Investment Fund Ukrainian Athletics Foundation
INDUSTRY EXPERTS Valerii F. Aleksandrov Andrii S. Antoniuk Yuliia Yu. Belinska Valerii P. Borzov Oleksandr P. Budia Armin Wagner Serhii S. Volkov Ivan M. Heliukh Kateryna O. Derhachova Serhii I. Dorotych Viktor O. Zotov Valeriia V. Kazban Oleksandr S. Kava Yevhen V. Kapinus Kostiantyn L. Kolesnikov Heorhii V. Lysychenko Yevhen Yu. Lyshanskyi Ivan Yu. Lun Oksana V. Melnychuk Viktor A. Miroshnychenko Volodymyr I. Nudelman Father Vitalii Yurii O. Pavlenko Milan M. Paievych
Vladyslav Yu. Radysh Iryna V. Skorniakova Oleh Yu. Skrypka Vasyl A. Stepanenko Otto O. Stoika Mykola I. Tyzhnenko
KYIV ACTIVISTS WHO CONTRIBUTED GREATLY TO DRAFT THE STRATEGY DEVELOPMENT Iryna Bondarenko Viktor Zahreba Tetiana Zhdanova Yevhen Petroshchuk Dmytro Serhiienko Volodymyr Chepovyi
SPECIAL ACKNOWLEDGMENTS TO MEMBERS OF THE WORKING GROUP FOR STRATEGY DEVELOPMENT FOR THEIR SIGNIFICANT CONTRIBUTIONS Svitlana I. Babinets Olha V. Bazarna Olha M. Bakun Viktor M. Bezotosnyi Liudmyla O. Bezruk Ihor V. Honcharenko Ihor M. Dovban Oksana I. Zbitnieva Volodymyr O. Kazachuk Dmytro O. Kalhanov Roman P. Kachur Oleh V. Kizlenko Roman V. Kostrytsia Andrii I. Lobach Leonid A. Matveiev Svitlana P. Nazarenko Alla V. Odintsova Oleh P. Svetlychnyi Yurii O. Smishchuk Oleh V. Sukhonos Iryna V. Shaidetska
STRATEGY DEVELOPMENT CONSORTIUM MEMBERS
Institute for Economics and forecasting at the Ukrainian National Academy of Sciences
Research Institute for City Social and Economic Development
CONTENTS INTRODUCTION • Introductory Word by KCSA Head Mr. O.P. Popov................ 1 • Statements made by young Kyiv residents........................ 2 • Acknowledgments to the participants in the development of the Kyiv city development Strategy............................... 4 • Vision, major initiatives and objectives........................... 6 • Vision and Mission of the City........................................ 8 • Stratedic development goals until 2025.......................... 9 “BIG MOVES” – KEY STRATEGIC INITIATIVES...................... 12 1. World-class infrastructure.......................................... 15 2. Lean energy system.................................................. 17 3. Made in Kyiv............................................................ 19 4. E-government.......................................................... 21 5. Cultural heights....................................................... 23 6. Dnipro pearl............................................................. 25 7. Healthy Kyiv resident................................................ 27 8. City center nearby.................................................... 29 9. International harbor for headquarters.......................... 31
KYIV’S CURRENT POSITION AND TRENDS............................ 73 • Swot-analysis............................................................ 74 • Demographic trends and challenges.............................. 75 • City business environment.......................................... 76 • Kyiv’s role in the development of Ukraine...................... 77 • Kyiv’s role and place in the international context............ 78 STRATEGY DEVELOPMENT METHODOLOGY........................... 79 • Strategy development principles.................................. 80 • Strategy development methodology............................. 81 • Analysis of comments from kyiv citizens and expert to their city’s strategy................................. 82 • Assumption used during strategy development............... 83 • Implementation risks and their prevention.................... 83 APPENDICES.................................................................. 84 • Target Strategy indicators........................................... 85 • Glossary of terms....................................................... 88
PRIORITIES BROKEN DOWN BY CITY DEVELOPMENT SECTORS... 32 1. Economic development, private entrepreneurship and investments.................... 34 • The city’s economy growth sectors.............................. 36 2. Transport................................................................ 37 3. Engineering infrastructure and utilities........................ 41 4. Ecology and environmental safety............................... 44 5. Tourism................................................................... 46 6. Public health care..................................................... 48 7. Education............................................................... 50 8. Social protection and safety....................................... 52 9. Labor market and employment.................................... 54 CITY DEVELOPMENT INDICATORS....................................... 57 STRATEGY IMPLEMENTATION PROGRAM............................. 58 • Approach to strategy implementation........................... 59 Further work with identified initiatives......................... 60 • Sources of financing.................................................. 61 • “Creating conditions” policy........................................ 62 • Governance system.................................................... 64 • Monitoring of implementation • Methodology of progress evaluation in strategy implementation...................................... 66 • Community involvement.......................................... 67 • Strategy relation to other documents and planning......... 68 • Territorial development.............................................. 69 • Development of city agglomeration.............................. 70 • Social responsibility................................................... 71 • Stages of Strategy implementation............................... 72
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VISION, MAJOR INITIATIVES AND OBJECTIVES
SUMMARY
WHAT WILL THE CITY OF THE FUTURE LOOK LIKE? DYNAMIC, ENCOURAGING INNOVATIONS
UNIQUE, PRESERVING AND DEVELOPING ITS IDENTITY
LIVABLE, IMPROVING ITS STANDARDS OF LIVING
OPEN FOR BUSINESS
CLEAR, HAVING A TRANSPARENT SYSTEM OF GOVERNANCE
GREEN AND WELL-BALANCED
KYIV ON AN INTERNATIONAL SCALE EUROPE’S GREENEST CAPITAL CITY
THE RECOGNIZED MEETING SITE OF THE WEST AND THE EAST
THE CITY WHICH ITS RESIDENTS PRIDE THEMSELVES ON
STRATEGIC INITIATIVES WORLD-CLASS INFRASTRUCTURE
EFFECTIVE ENERGY SYSTEM
Initiative 1: Transport and Engineering Infrastructure Upgrade
Initiative 2: Improvement of Kyiv’s Energy Efficiency
MADE IN KYIV Initiative 3: Stimulation of Innovations and Competitive Clusters
E-GOVERNMENT
CULTURAL HEIGHTS
DNIEPER GEM
Initiative 4: Implementation of Modern City Governance Technologies
Initiative 5: Creation of Unique Cultural Atmosphere
Initiative 6: Preservation and Development of Dnieper Riverside
HEALTHY KYIV RESIDENTS
CITY CENTER NEARBY
INTERNATIONAL HARBOR FOR HEADQUARTERS
Initiative 7: Systematic Promotion of Healthy Lifestyles
Initiative 8: Development of Polycentricity, Creation of New City Centers
Initiative 9: Hosting of Central and Regional Offices of International Organizations
STRATEGIC DEVELOPMENT OBJECTIVES • A twofold increase in Kyiv’s economic welfare indicator (gross regional product per capita) by 20251 • A considerable improvement to the major comfort-of-living indicators (a 1.8 increase in the comfort-of-living index2) 1. GRP in terms of the parity between the purchasing power and the prices in 2008, an increase in real terms as compared to 2008 2. As calculated using the below-described methodology, which has been developed and adjusted subject to the possibility of comparing statistical indicators with international data, for the purposes of the Kyiv City Development Strategy Until 2025 on the basis of data for 2009
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KYIV 2025: INNOVATIONS, UNIQUE IDENTITY, LIVABILITY VISION AND MISSION OF THE CITY
KYIV IN 2025 By 2025, Kyiv will become an innovation center of the Eastern European region with a strong competitive position and clear development priorities. This city has maintained and is developing its unique identity and its historical legacy. It constantly improves the standards of living for its residents and its own attractiveness for business. Its development will be implemented in close cooperation with businessmen and investors amid constant improvement of the system of governance and preservation of the city’s greenery. On an international scale, Kyiv will be described as (1) Europe’s greenest capital city, (2) the recognized meeting site of the West and the East, and (3) an environmentally friendly city which its residents pride themselves on.
MAJOR COMPONENTS
DYNAMIC, ENCOURAGING INNOVATIONS • The innovative development of 2-3 clusters ensuring the city’s unique identity and competitive strength, as well as a considerable contribution to the economy (at least 10% of the GRP) and to the employment rate (over 40,000 workplaces) • Support for innovative businesses on the basis of the city’s research and development complex • Engagement and retention of the best companies and professionals who possess competitive knowledge and technologies
UNIQUE, PRESERVING AND DEVELOPING ITS IDENTITY • Preservation of the city’s cultural and historical legacy and development of new sectors of its cultural life which will secure its attractiveness both for its residents and for tourists • Preservation and development of the city’s historical identity, ecosystem, landscape, architecture, urban environment, and historical values • The city’s development as a business and financial center rather than an industrial center
LIVABLE, IMPROVING ITS STANDARDS OF LIVING • Creation of livable conditions for living and engaging in business • Support for human capital development: competitive education in the most demanded areas in line with the highest world standards, improvement of public health and longevity in Kyiv • Environmental stability: economic growth without an increase in the environmental load
SUPPORTING COMPONENTS
OPEN FOR BUSINESS • Maximum use of non-budgetary sources of financing due to cooperation with private investors through the creation of a clear and transparent mechanism of interaction with the city’s authorities • Promotion of local business, small and medium-size business through the simplification of municipal standards and approval procedures, the creation of a single clear mechanism of cooperation with the city’s services • Stabilization of the city’s financial position (budget, debt level)
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CLEAR, HAVING A TRANSPARENT SYSTEM OF GOVERNANCE • Establishment of open local governance processes, transparent for both the general public and businesses, and regular reporting on the achieved progress • Technological development: an increase in the level of automation of internal processes and the processes of the authorities’ interaction with business representatives and the population • The availability and clarity of the rules of the game: guarantee of the accessibility of information required from the city authorities
GREEN AND WELL-BALANCED • Minimization of the effect of the city’s development process on its ecosystem, preservation of Kyiv’s vegetation and unique ecosystem • Development in strict compliance with the plan (in particular, with the general plan of territorial development and with the financial plan – the budget) • Decentralization of the city’s activity: creation of several new centers (the business center, the administrative center, the environmental and recreational center, etc.) • A well-balanced growth of agglomeration (city-oblast): coordination of the development of the economy, the infrastructure, and the adjacent territories
QUALITY OF LIFE = ECONOMIC WELFARE + LIVABILITY STRATEDIC DEVELOPMENT GOALS UNTIL 2025
ECONOMIC GROWTH GOALS
LIVABILITY IMPROVEMENT GOALS
• A nearly twofold increase in the city’s economic welfare (expressed as gross regional product per capita) by 20251 • A 6.5% average annual increase in the real GRP by 20252 • Approximation to the level of economically developed Eastern European capital cities
• A considerable improvement of the liveability the residents (a 1.8 increase in the liveability index3) • Approximation to the level of the quality of life in Eastern European capital cities
Fig. 1. Strategic development goals until 2025 GRP per capita index, Kyiv 2008 = 100
450 As of 2009
As planned for 2025
400
Warsaw
Prague
350 300
Moscow
Budapest
250
Warsaw
Prague
Budapest 200
Kyiv
a twofold increase +6.5% of the real GRP per year (2010-2025)
Moscow
150 100
St. Petersburg
Kyiv
50
St. Petersburg
0 90
100
110
120
130
140
150
160
170
180
a 1.8 increase
190 Livability index, Kyiv 2009 = 100
ECONOMIC GROWTH FEASIBILITY
LIVABILITY IMPROVEMENT FEASIBILITY
• According to the results for the year 2008, Kyiv is some 1015 years behind the other Eastern European capitals in terms of its economic development • The city has to build up its economic strength ahead of the cities it is compared with. This is an attainable goal, considering that the start is made from the lower base. • The last decades’ economic development experience of Prague, Budapest and Warsaw shows that the growth of the real GRP at an average annual rate of 5-8% is also possible in a long-term perspective. • In 2004-2009, the average annual rate of the real GRP growth in Kyiv stood at 5.7%, which was 3.2% higher than Ukraine’s GDP growth rate in the same period.
• Kyiv ranks the lowest among the comparison cities in terms of the quality of life, as determined on the basis of the adjusted composite index. • A critically bad situation is observed in the transport sector, in the housing and public utilities sector, and in the cultural sector. A similar bad situation is also observed in the healthcare sector and in the educational sector. The situation in the security sector is better than the average situation observed in the comparison group. • The quality of life of Kyiv residents will be improved through the creation of a reliable engineering infrastructure, a convenient transport system, a high-quality and affordable healthcare and education system and through the improvement of the city’s environmental situation.
1. Based on the GRP for 2008 in terms of the parity between the purchasing power and the prices 2. Real GRP growth for the period of 2010-2025 3. The livability index has been calculated using the methodology, which has been developed and adjusted subject to the possibility of comparing statistical indicators with international data, for the purposes of the Kyiv City Development Strategy Until 2025 on the basis of data for 2009
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ECONOMIC WELFARE AND LIVABILITY INDICATORS ARE MEASURED AND MONITORED STRATEGIC DEVELOPMENT GOALS UNTIL 2025 THE KEY STRATEGIC GOAL IS THE QUALITY OF LIFE AS THE COMBINATION OF ECONOMIC WELFARE AND THE LIVABILITY IN KYIV
ECONOMIC WELFARE
LIVABILITY
The key integrated indicator of the city’s economic welfare is the gross regional product (GRP) per capita. The auxiliary indicators are the population employment rate, the average salary / disposable income, and the ratio of income distribution in society.
For the purposes of an objective assessment of the level of the comfort of living in the city, a comparison of Kyiv with the comparison cities and the monitoring of the progress of improvements, an adjusted methodology for calculating livability index was developed on the basis of 21 indicators defining the situation in the key areas of the city’s activity.
Table 1. Comfort-of-living index Sector
Transport
Housing and public utilities
Current situation1
Current indicators (2009)
Future indicators (2025)
Length of public transport routes per 10,000 persons
9,6
16,1
Density of the street and main road network, km/sq. km.
2,1
2,8
Number of traffic victims, persons per km
2,3
1,2
Length of power distribution networks, km per 1,000 persons
4,2
9,4
Density of power distribution networks, km per sq. km.
13,9
40,0
Length of water pipelines, km per 1,000 persons
1,5
3,6
Density of water pipelines, km per sq. km.
5,0
15,3
Length of sewerage networks, km per 1,000 persons
0,9
3,0
Density of sewerage networks, km per sq. km.
3,1
12,8
Status indicator
Percentage of water losses in total consumption, % Healthcare Environment Education Security
Culture
20
5
Life expectancy at birth, years
72,7
79,8
Initial disease incidence rate, incidents per 1,000 persons
966,6
777,3
Harmful emissions, tonnes per sq. km. per year
333,0
250,0
Percentage of solid household waste processing, %
5
40
Students/teachers ratio
10,0
8,0
Quality of education (Newsweek), a ranking indicator
64,0
78,0
Number of crimes per 100,000 persons
12,8
8,5
Complex security ranking (EIU)
70,0
78,9
Number of visits to museums per resident
1,5
2,8
Number of visits to theatres per resident
0,4
1,2
Number of galleries2 per 100,000 persons
1,4
3,2
Livability index (Kyiv 2009 = 100)
100
181
KEY PERFORMANCE INDICATORS
INTERNATIONAL RANKINGS
The progress of implementation of the Strategy in all sectors of the city’s activity will be monitored in accordance with the key performance indicators (KPIs) developed for all the strategic initiatives. Target KPIs have been set for 2015 and 2025. The annual monitoring of progress in the achievement of the respective goals serves as the main means of implementing the Strategy and enables assessment of the performance of those who implement it. All KPIs shall be complied with in full.
International quality of life rankings prepared by Mercer and Economist Intelligence Unit (EIU) serve as an important factor affecting the image of the city in the international arena and enable assessment of how far Kyiv is lagging behind the world’s best quality of life standards. Importantly, the city’s goal is not the achievement of a certain place in an international ranking, but the narrowing of the quality of life index gap between the city and the comparison cities and global leaders. By 2025, Kyiv intends to enter the top 40 list of cities with the highest quality of life indicators and narrow the gap between itself and the leaders to 15-30%, as compared to the current gap of 50-90%.
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1. As compared with the comparison cities: Kyiv’s indicators are the same as or higher than the group’s average indicators – green, are 10% lower – yellow, are more than 10% lower – red. 2. Of significant public and private galleries as determined by a consensus among the industry experts.
“BIG MOVES” – KEY STRATEGIC INITIATIVES
OUR EFFORTS SHOULD BE FOCUSED ON INITIATIVES WITH MAXIMUM EFFECT “BIG MOVES” – KEY STRATEGIC INITIATIVES WHAT ARE THE PECULIARITIES OF THESE INITIATIVES? • The “Big moves” do not fall within the competence of a single sector, but require joint efforts of various executive entities of the city administration. • They have the biggest effect on the accomplishment of the mission of the city’s long-term development. • Their characteristic features are long implementation periods and large investments. • They do not always have a clear progress indicator and are usually characterized by a program of action.
WHY IS IT NECESSARY TO SINGLE OUT MAJOR INITIATIVES? • These initiatives require the engagement of a great many parties and city functions and the establishment of liability at a high level for the coordination of efforts. • The implementation of these initiatives requires an individual approach and working within the framework of project management with clearly defined goals and deadlines, with the outcome-based result planning and with the subsequent transfer of respective plans to functional departments.
WORLD-CLASS INFRASTRUCTURE
EFFECTIVE ENERGY SYSTEM
Initiative 1: Transport and Engineering Infrastructure Upgrade
Initiative 2: Improvement of Kyiv’s Energy Efficiency
E-GOVERNMENT
CULTURAL HEIGHTS
Initiative 4: Implementation of Modern City Governance Technologies
Initiative 5: Creation of Unique Cultural Atmosphere
HEALTHY KYIV RESIDENTS
CITY CENTER NEARBY
Initiative 7: Systematic Promotion of Healthy Lifestyles
Initiative 8: Development of Polycentricity, Creation of New City Centers
MADE IN KYIV Initiative 3: Stimulation of Innovations and Competitive Clusters
DNIEPER GEM Initiative 6: Preservation and Development of Dnieper Riverside
INTERNATIONAL HARBOR FOR HEADQUARTERS Initiative 9: Hosting of Central and Regional Offices of International Organizations
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WORLD-CLASS INFRASTRUCTURE INITIATIVE 1: TRANSPORT AND ENGINEERING INFRASTRUCTURE UPGRADE CITY GOALS Innovative
Unique
Livable
Open for business
Having a transparent governance system
Green and well-balanced
WHY IS THIS IMPORTANT? The infrastructure is an important prerequisite for the city’s economic growth. The two main problems plaguing Kyiv’s transport and engineering infrastructure are their insufficient logistics and their seriously worn-out state. The insufficient infrastructure causes overloads, aggravates deterioration and sometimes makes basic service inaccessible to the city’s residents. The worn-out infrastructure leads to higher costs of the services (frequent repairs, excessive energy consumption in the networks and on sites), their lower quality (traffic jams and lower security level in the context of the transport infrastructure and loss of the product’s physical properties in the context of the engineering infrastructure), higher capital expenditures on upgrades (postbreakdown restorations), and a considerable deterioration in the quality of life of Kyiv residents. Fig. 2. Worn-out infrastructure Infrastructure Transformer substations Cable power transmission lines
Extent of wear
Infrastructure
Extent of wear
41%
Sewerage networks
30%
Main city sewer
99%
25%
Residential buildings
16%
Heating networks
52%
36%
Heat supply substations
Elevators in residential buildings
70%
Roads
85%
20%
Public transport stations
47%
75%
Road signs
74%
Water supply networks Water intake stations
Table 2. Required investments Type of infrastructure
Required investments, mln. euros1
Residential buildings and elevators
224
KEY INITIATIVE IMPLEMENTATION AREAS The projected economic growth and the rising demands of both the population and the enterprises will only increase the load on the city’s infrastructure. However, as demonstrated by the estimated project indicators (see Table 2), it will be simply impossible to build any new infrastructure facilities or repair the existing infrastructure facilities in the near future using only the currently available budget financing. So some projects will be implemented using external financing mechanisms (such as PPP2 (including concessions), co-financing, financing by international organizations, etc.).
UPGRADES OF RESIDENTIAL BUILDINGS AND ELEVATORS Residential buildings must be upgraded with the active participation of and control by their owners (including through the improvement of conditions and mechanisms for setting up apartment building co-owners associations, the implementation of systems for the actual recording of the provided resources and services). On top of that, complex projects associated with upgrades of residential buildings must also become attractive for investors, who will be able to recoup their investments from the actual energy consumption economy after the repairs without any additional losses for the people living in the building. The city’s main objectives will be the necessary regulatory environment (the harmonization of conflicting moments and the simplification of target financing and co-financing procedures in the context of municipal laws), an information campaign, accessible resource centers, and the economic stimulation of projects.
UPGRADES OF ENERGY SECTOR FACILITIES A majority of projects will be implemented in the context of the strategic initiative aimed at improving the city’s energy efficiency. The creation of high-quality economic and regulatory incentives (including transfers of respective facilities under concession arrangements) for the operators or power generation and distribution facilities, combined with the improvement of energy consumption accounting on the level of users and the stimulating tariff regulation, are the main prerequisites for the systemic modernization of heat and power infrastructure facilities at the expense of private investors. On top of that, a series of projects will be developed to create decentralized alternative energy resources.
UPGRADES OF SEWERAGE FACILITIES AND RECONSTRUCTION OF TREATMENT FACILITIES
Transport infrastructure (the key projects)
1 152
Transport infrastructure (the remaining desirable projects)3
2 101
Borrowed and investment resources will be raised for intake, distribution, drainage and treatment facilities with the stimulating tariff regulation system and clear quality requirements for respective products and services.
Total
3 906
UPGRADES OF TRANSPORT INFRASTRUCTURE FACILITIES
Heating and power systems
1 720
Sewerage facilities (including, treatment facilities)
810
KEY MEASURES Measures
Start
End
Upgrades of residential buildings
already started
Q4 2018
Upgrades of energy sector facilities
Q1 2012
Q4 2020
Upgrades of water and sewerage facilities
Q3 2012
Q4 2015
Upgrades of transport infrastructure facilities
already started
Q4 2018
The construction and further management of large-scale facilities (such as underground railway lines and stations, roads, tunnels) through PPP mechanisms and the engagement of only private investors for the implementation of other large-scale projects (the construction of parking lots) will become the main factors contributing to the improvement of the transport infrastructure. However, it will be impossible to achieve the goal of affordable, safe and convenient transport without other non-infrastructure measures aimed at changing the structure of the city’s passenger flows and the automated control system.
1. Estimated required investments as calculated on the basis of feasibility studies and similar projects 2. PPP – public private partnership 3. Not included in the total amount
15
EFFECTIVE ENERGY SYSTEM INITIATIVE 2: IMPROVEMENT OF KYIV’S ENERGY EFFICIENCY CITY GOALS Innovative
Unique
Livable
Open for business
Having a transparent governance system
Green and well-balanced
WHY IS THIS IMPORTANT?
Fig. 3. Energy efficiency of compared cities
Amsterdam Warsaw
3
7,12 4
Prague
4
1,84 1,02 7
Kyiv
0,44 22
MJ per euro of GRP
Investors will be invited and special-purpose loans with be raised from international organizations and foundations for the establishment of a centralized monitoring system for energy consumption and for a complex thermal sanitation and modernization of powerconsuming equipment and lighting. Individual energy sources are planned to be implemented at some utility enterprises where such measures will economically beneficial and socially acceptable.
ENERGY SAVING IN THE RESIDENTIAL SECTOR 5,80
Berlin
Budapest
Renewable energy
2
The city’s key strategic goal will be compliance with the all-European program 20/20/201 . Works under such a complex program will be carried out both by consumers (effective consumption) and by energy generation, transportation and energy distribution entities (lower expenditures and use of alternative sources). The key objectives will be as follows below:
ENERGY SAVING IN THE UTILITIES SECTOR
The seriously worn-out infrastructure and the growing consumer demand require the optimization of energy use and generation. Taking into account other cities’ results (see Fig. 3 below), Kyiv has a considerable potential for improving its energy efficiency.
Energy consumption in GRP
KEY INITIATIVE IMPLEMENTATION AREAS
0,47 % of total energy generation
The implementation of energy saving measures will enable an improvement in the quality of life of Kyiv residents and will free the infrastructure from the effects of the city’s further expansion. The implementation of such measures must have the following ultimate results: • Improvement of the quality of life (adequate heat and power supplies) of Kyiv residents • Stabilization and economy of expenses on utility services • Reduction of energy sector costs in the structure of the GRP and reduction of the cost of products manufactured by the city’s enterprises • Improvement of the regulatory environment for energy enterprises and energy service companies • Recycling of wastes and efficient use of vegetation wastes as energy resources • Reduction of the city’s dependence on natural gas supplies It is important to note in this context that these results can be achieved without any losses for either of the involved parties through the efficient use of those resources which are currently wasted.
KEY MEASURES
The experience in carrying out utility projects will enable demonstration of the effectiveness of such measures as the implementation of metering systems, complex thermal modernization, upgrading of distribution equipment, etc., both to the investors and to the residents. Residential sector projects must be co-financed by the investors among energy service companies and the people who live in respective buildings, with the city providing benefits and possible budget support at early stage of the program. The establishment of a transparent regulatory environment and economic incentives for residential buildings upgrade projects will make this sector attractive for energy service companies. The development of effective mechanisms (including apartment building co-owners association and other forms of residents associations) for the involvement of citizens for their active participation in and their control over such projects will not only assure the residents of the quality of respective works but will also provide guarantees for the investors.
GENERATION AND DISTRIBUTION FACILITIES Close cooperation with the city’s largest energy enterprises in the implementation of modern European standards of a heat and power engineering state will help the city to better understand the most pressing problems and remove respective regulatory obstacles. The promotion of joint investment projects involving energy generation modernization, including the promotion of the use of co-generation units, will allow the efficient use of the energy which is being wasted now. Intellectual mechanisms for making consumption forecasts will allow a considerable decrease in the number of excessive generation incidents and further heat and power losses.
ALTERNATIVE ENERGY SECTOR Start
End
Modernization of energy consumption at utility facilities
already started
Q4 2015
Active implementation of relevant mechanisms for upgrading residential buildings
Q1 2012
Q4 2018*
An increase in the use of alternative energy sources will be secured by the processing of solid household wastes and vegetation wastes. In a long-term perspective, private investments can be raised to introduce decentralized renewable energy sources.
Upgrades of the city’s energy generation and distribution facilities
Q3 2012
Q4 2021*
ENERGY EFFICIENCY STANDARDS
Implementation of renewable and alternative energy generation technologies
Q1 2012
Q4 2016*
Measures
*further works to be carried in accordance with the respective plans
In addition to the infrastructure upgrades, the city must bring its construction and transport sectors closer to European standards to ensure an economical use of its resources in future as well.
1. An agreement reached by the EU countries on reduction of greenhouse gas emissions by 20%, reduction of the GRP energy consumption by 20%, and the use of 20% renewable energy generation from green and alternative sources before 2020 2. Heat pumps, solar batteries, etc
17
MADE IN KYIV INITIATIVE 3: STIMULATION OF INNOVATIONS AND COMPETITIVE CLUSTERS CITY GOALS Innovative
Unique
Livable
Open for business
Having a transparent governance system
Green and well-balanced
WHY IS THIS IMPORTANT? No city can boast of being a leader in many sectors of the economy. A city can be a leader only in certain sectors where it has a competitive position. The best practices in the economic development of cities are associated with the creation of clusters, i.e. competition centers in sectors that are given priority. These sectors will yield considerable results, such as a contribution to the GRP, new jobs, the city’s innovative status on an international scale, and will establish the city’s international brand “Made in Kyiv”. The examples of such clusters include: banks in Zurich, IT engineering in Dublin, and agricultural trading in Chicago. The city has practical leverage to create such clusters through their identification and creation of the necessary conditions for the raising of investments and business activity development that will lead to the formation of a competitive sector.
KEY INITIATIVE IMPLEMENTATION AREAS The city cannot and should not independently determine the priority clusters. But support and promotion of projects, which have the greatest potential for the city and which have already found support among the business community and investors, will help Kyiv to achieve its ambitious GRP growth goals. At the same time, city residents’ comments and the city’s existing GRP structure demonstrate the priority status of the service industry, as well as certain hi-tech sectors. The examples of highly developed European cities also confirm the general tendency towards the relocation of mass industries beyond the boundaries of central cities. In order to finally identify the city’s priority sectors, the city’s long-term economic growth program needs to be developed and the selection of 2-3 clusters needs to be completed, subject to the remarks of the business community and the promising investors, as well as subject to the international experience in the identification and development of such clusters. Another important prerequisite for the implementation of the given initiative is the creation of favorable conditions for the development of business in general. The respective efforts must be focused on the improvement of the legal and regulatory environment and on the interaction between the business
Table 3. Kyiv’s potential competitive clusters for further elaboration Possible cluster options
Additional jobs
Contribution to GRP
Pharmaceutics and medical technologies
~ 70,000
15-20%
Engineering and precision engineering
> 50,000
~ 15%
Regional and international IT outsourcing
> 50,000
10-15%
Culture and tourism center
40,000-50,000
4-6%
Regional logistics center
40,000-50,000
~ 5%
~ 20,000
~ 3%
5,000-10,000
~ 1%
CIS and CEE commercial trading center (agricultural raw materials) Civil aviation research and educational center
KEY MEASURES Measures
Start
End
Development of an economic development program – identification of 2-3 competitive clusters, subject to the comments of business representatives and potential investors and subject to international practices
Q1 2012
Q4 2013
Creation of business incubators
Q1 2012
Q4 2013
Development of mechanisms for supporting clusters (such as, for example, a system of preferences, free zones, etc.)
Q1 2012
Q2 2014
Active attraction of investors to the selected clusters
Q1 2014
Q2 2015*
community and the city, on support for the development of entrepreneurship. On top of that, in order to develop the city’s competitive environment on the basis of a research and development complex, a system of business incubators will be created for the city’s innovative enterprises. In order to create an attractive environment for respective industry investors, regular trade fairs and start-up forums are planned to be held with the support of the city. The ideas of the most promising entrepreneurs will be promoted by the city in an international arena.
* further works to be carried in accordance with the respective plans
19
E-GOVERNMENT INITIATIVE 4: IMPLEMENTATION OF MODERN CITY GOVERNANCE TECHNOLOGIES
Livable
Open for business
Having a transparent governance system
Green and well-balanced
WHY IS THIS IMPORTANT? The “e-government” (EG) is the foundation of modern municipal governance. Its complex system affects both internal administration processes and interaction with the general public. The creation of the EG will result in a number of noticeable changes: • Simplification and facilitation of interaction between the population, the business community and the city services • Enhancement of the transparency of internal administration processes • Better controllability of the city governance system, possibility of visual monitoring of certain services • Lower costs associated with the maintenance of the administrative apparatus From the point of view of interaction with the general public, the EG is the logical continuation of the implementation of the “one-stop shop” principle, but it enables the minimization of the need for an individual’s personal presence and brings together many more services in one place. During its work with the population, the e-government will ensure: • Provision of official information, documents, templates, etc. • Two-way on-line communication • Possibility of the execution of legal and financial transactions • Accessibility of information generated by individual city administration functions and by the entire apparatus in general for the general public As to the improvement of internal city administration processes, the following points should be highlighted: • Coordination of individual city functions in an integrated well-adjusted system • Acceleration of information flows • Improvement of the controllability and reliability of internal processes • Organization of a system for monitoring operations of certain services, possibility of a timely and objective assessment of their performance
KEY MEASURES Measures
To adopt a good-quality approach to a change in city governance, respective tasks and problems of the city need to be identified for their consideration by the e-government. On top of that, it is necessary to understand the existing e-governance system implementation processes and to formulate the vision of the new respective processes. Upon completion of these preparatory works, the city will be able to set respective reasonable requirements and to start implementing the system, which, in combination of a change in the processes, may result, in particular, in the following changes:
SERVICE SYSTEM FOR INDIVIDUALS AND BUSINESSES There will be created a portal for servicing the city (an Internet portal, terminals at city services, integration with a call center), with the help of which one will be able to get all necessary information, ask question to KCSA representatives, file an application seeking to obtain some documents or change the address, pay fines, and learn about the current progress towards the implementation of certain approved program by the city government. Fig. 4. Development of a system of cooperation with individuals Traditional system “One-stop shop”
E-government
Individual/ business
Unique
Institution 1
Institution 1 SMS/MMS
Infrastructure
Innovative
KEY INITIATIVE IMPLEMENTATION AREAS
Terminal
Call center
Central server
Institution 2
Institution 2
Institution 1 Institution 2 Institution 3
City government
CITY GOALS
The minimization of personal presence for the execution of transactions requires the implementation of a digital signature system.
E-DOCUMENT FLOW To speed up the processing of requests, the documents flows between city authorities need to be automated. This will enable abandonment of the practice of step-by-step consideration of documents and the control over document flows at each stage.
INTEGRATION OF INFORMATION REGISTERS There will be created integrated databases and registers of investment projects designed for the transfer into lease of municipal real estate, etc., in order to improve the external and internal reporting and control processes.
Start
End
Initial analysis of internal requirements and processes
Q1 2012
Q2 2012
INTEGRATION OF CITY FUNCTIONS AND SERVICES
Creation of a portal for servicing the city
Q1 2012
Q2 2014
Implementation of e-document flows
Q4 2012
Q2 2014
Implementation of an integrated city management system
already started
Q4 2017
Systems for management of certain functions will be integrated and the operation of emergency services will be coordinated in order to optimize the solution of complex problems and facilitate interdepartmental interaction, and a special system will be created for gathering information about performance indicators of the city services.
21
CULTURAL HEIGHTS INITIATIVE 5: CREATION OF UNIQUE CULTURAL ATMOSPHERE
KEY INITIATIVE IMPLEMENTATION AREAS
CITY GOALS Innovative
Unique
Livable
INFRASTRUCTURE UPGRADES Open for business
Having a transparent governance system
Green and well-balanced
WHY IS THIS IMPORTANT? In the mid 20th century, Kyiv had the status of a cultural capital which is now lost. The numbers of museum- and especially theater-goers are constantly shrinking (see Fig. 5). Meanwhile, a public opinion survey has demonstrated Kyiv residents’ obvious wish to get back this status. Fig. 5. Museum and theater attendance statistics for Kyiv thous. people per year Theaters
1 000
Kyiv has a great cultural and historical legacy, but even its existing infrastructure requires considerable upgrades: • Repairs of the existing facilities, their renovation to meet modern requirements (for example, reconstruction of the Bilshovyk Cultural Center) • Opening of the renovated municipal museum of the city of Kyiv • Creation of a world-class cinema cluster in cooperation with state authorities on the basis of state- and municipally owned assets (the existing and new facilities, territories) • Creation of the blocks of culture near the Kyiv Pechersk Lavra monastery together with the Mystetskyi Arsenal and near the Mykhailivska Square together with St Sophia’s Cathedral, Mykhailivskyi Golden-Domed Cathedral and the historical hills of the Landscape Park (“Peizazhna Alleia”) (within the framework of the Kyiv city development plan), with the respective tourism and cultural infrastructure
RENOVATION OF CULTURAL ASSETS
500
0 2003
Museums
2004
2005
2006
2007
2008
2009
2010
The city’s culture is one of the key elements of its differentiation and attractiveness. Further development of its unique culture is required for the formation of material values and for the sustainable development of society, for an increase in the comfort of living. The city’s cultural policy may successfully unite various social strata and ease social tensions. Remarkable cultural events will attract both Kyiv residents and tourists, and this will bring a considerable contribution to the city’s economy. In order to revive this sector, a modern infrastructure will be created for Kyiv for the professional artistic community where talented Ukrainians and foreigners will be able to fully realize their artistic potential.
KEY MEASURES Measures
Start
End
Formation of a long-term calendar of cultural events
Q1 2012
Q2 2012*
Creation of an advisory board for the formation of the city’s cultural assets
Q1 2012
Q2 2012
Complex repairs and upgrades of the city’s cultural facilities
Q2 2012
Q4 2016
For the purposes of further development of the city’s cultural assets, favorable conditions need to be created for cooperation with private investors and sponsors: • Implementation of the public private partnership scheme and facilitation of private projects involving the reconstruction and the construction of the city’s new cultural facilities (private museums, theaters, concert halls, etc.) • Creation of a multifunctional modern concert and theater complex for an audience of over 5,000 people
ORGANIZATIONS OF SIGNIFICANT CULTURAL EVENTS The city’s hosting of cultural events will attract international artists to the city, will facilitate the development of modern arts, and will secure a place for Kyiv on the map of the world’s cultural centers. Such events include the following: • National festivals and dramatized shows • Cinema and theater festivals • A large variety of music festivals • Flower shows and cooking festivals • Fashion shows and auction sales
PROMOTION OF CULTURAL PRODUCTS The popularization of cultural products requires: • Formation of the city’s general theater repertoire subject to the variety of target audiences, for example, with the help of as advisory board consisting of leading experts in culture, artists and government representatives • Promotion of the city’s arts and cultural events on Kyiv’s tourism portal, in social networks and mailings (information about the events, facilities) • Inclusion of cultural events in the city’s tours and tour programs
* to be updated every five years
23
DNIEPER GEM INITIATIVE 6: PRESERVATION AND DEVELOPMENT OF DNIEPER RIVERSIDE CITY GOALS Innovative
Unique
Livable
Open for business
Having a transparent governance system
Green and well-balanced
WHY IS THIS IMPORTANT? The major element of the Kyiv landscape on a global scale is the coastal territories of the Dnieper River valley, a unique zone in the heart of the city and its competitive advantage. However, its potential is not fully exploited at present: the territory is not actually a wholesome recreational asset. Development of the territories in the Dnieper River valley will secure the following benefits for the city: • Realization of the potential of its unique landscape and scenery to create a highly attractive tourism and recreational zone • Restoration of one of the city’s fundamental symbols, preservation i. Muromets and retention of the environmental balance of the Dnieper River i. Lapukhavaty urban landscape i. Dolobetsky i. Trukaniv • Creation of new workplaces and additional i. Venitsiansky budget revenues proi. Velyky vided that investments are raised and the territories are used for i. Galerny recreational and enteri. Vodnykiv tainment purposes i. Zhukiv i. Kozachy The well-arranged i. Olzhyn high-class coastal territories will turn the city into a gem of an international level, into a leisure, tourism and sports center.
KEY MEASURES Start
End
Formation of the development concept and its coordination with the general public
Measures
already started
Q1 2012
An environmental and town planning evaluation and preparation of a detailed territory plan
Q2 2012
Q1 2013
Development of relevant projects for individual zones of the coastal territories
Q3 2012
Q2 2013
Selection of investors and developers
Q3 2012
Q2 2014*
Implementation of the projects, monitoring, an expert evaluation of the results
Q4 2012
Q4 2017*
* further works to be carried in accordance with the respective plans 1. Detailed territory plan
KEY INITIATIVE IMPLEMENTATION AREAS A large portion of the Right Bank riverside territories in the north (between Kurenivka District and Rybalskyi Island) and in the south (Telychka) is covered by industrial zones. Meanwhile, only a short and narrow riverside strip from Podil District to the Paton Bridge is used for recreational purposes. And even this part of the riverside has only several communications with the upper riverside edge. Island territories are also undeveloped: most of their coastal zones are not used in the interests of the city (even though the operational beaches are overcrowded in summertime) and are filled with occasional catering points.
DEVELOPMENT OF A UNIFORM DEVELOPMENT CONCEPT The non-systemic development of certain coastal territories will result in further destruction of the overall integrity of Dnieper River territories. A harmonious development process requires a uniform conceptual approach. Such concept must take into account both the unique environment and recreational potential and the economic attractiveness of individual territories. It has to be focused on the establishment of a harmonious development process for these functional sectors and thus mitigate the damaging effects of the uncontrolled development process. To develop such a concept, an international architectural competition has been organized for professional architect agencies. The panel of judges will consist of experts in Kyiv, as well as of experts in city planning, environment and business. The concept must be based on the following three basic principles: • A responsible attitude and the minimization of damages caused to the existing nature and landscape complex • Creation of a uniform harmonious functional vision of the territory’s development • Incorporation of Kyiv residents’ comments regarding the use of the territories for recreational, environmental and sports-andentertainment purposes The process transparent for the general public must also include public hearings on the concept.
SECURING FURTHER IMPLEMENTATION Upon the determination of the overall development concept for the Dnieper River zone, it will be necessary to develop its general layout at the level of the DTP , to form investment projects for individual territories, to attract investors and select contractors. At the implementation stage, it is important to take into account that the attractiveness of coastal territories creates a temptation to steer off the adopted concept in the course of its implementation. That is why, in addition to the unbiased choice of the investor, there should be established a rigid system of rules and the city’s control over compliance with the initial concept. If necessary, following the implementation of the first stage of projects, the concept may be reviewed with the use of the above-described competition mechanism. However, apart from the initial development of the territories, their improvement and the creation of the respective infrastructure, it is also critically important for the further preservation of this unique gem of Kyiv that the city’s community acts with due care and respect when using these territories. In addition to control measures and regulatory inspections, there must be a change in Kyiv residents’ self-perception from ‘users’ to ‘responsible owners’. Information campaigns and social advertisements will help to achieve this goal. In general, the implementation of this change depends directly on the city’s community.
25
HEALTHY KYIV RESIDENTS INITIATIVE 7: SYSTEMATIC PROMOTION OF HEALTHY LIFESTYLES CITY GOALS Innovative
Unique
Livable
Open for business
Having a transparent governance system
Green and well-balanced
WHY IS THIS IMPORTANT? Kyiv is now facing serious challenges associated with the deterioration of health of Kyiv residents: • An increase in sedentary types of activities in education and work • An increase in the popularity of “sofa-lying and computersitting sports” • An increase in the consumption of tobacco products and alcoholic beverages (accounting for the same share in the citizens’ expenditure structure as medicine), disregard for healthy food rules • A considerable lack of investments in the sport infrastructure The universally recognized global experience shows that strong health is formed not only with medical treatment, but primarily with preventive measures. This principles is one of the most important strategy components in the context of improvement of Kyiv residents’ health. The foundation of prevention is a healthy lifestyle. The promotion of healthy lifestyles is the main means of preventing disease. The implementation of measures aimed at promoting healthy lifestyles in developed European countries resulted in a drop in the numbers of deaths caused by cardiovascular diseases and an increase in the longevity by 10-15 years. An increase in the number of opportunities and infrastructure facilities for sports and recreational activities also has a considerable effect on the perception of the city’s comfort.
3,6
Ukraine (maximum)
20%
Heredity Medicine
20% 10%
A well-balanced approach in this sector will cover both immediate measures and complex programs, whose results will become visible in 5-10 years. The following are the examples of such measures:
CREATION OF NECESSARY CONDITIONS FOR FINANCING AND CO-FINANCING OF BASIC SPORTS FACILITIES Investors and the population will be engaged for the reconstruction and a gradual increase in the number of sports sites and basic infrastructure facilities.
PROMOTION OF HEALTHY LIFESTYLES Support will be provided for professional and amateur events, relevant media coverage opportunities will be created on the level of the entire city to promote HLS. The social responsibility of businesses will be established for the promotion of the HLS of their own workers and Kyiv residents in general.
IMPROVEMENTS IN HEALTHCARE SECTOR The effectiveness of the use of the existing resources will be improved, medical aid will be made affordable. Priority attention will be given to the development of primary healthcare.
KEY MEASURES Measures
Environment
The existing pump-room complexes will be repaired and new pump-room complexes will be put into operation, water supply and filtration systems will be upgraded.
0 Ukraine (average)
50%
Lifestyle
IMPROVEMENT OF DRINKING WATER QUALITY
1,5
Kyiv
Fig. 7. Factors affecting human health according to the World Health Organization
Standardized investment projects will be developed for the construction of multifunctional sports complexes.
2,3 2
Measures aimed at promoting healthy lifestyle for Kyiv residents have to be implemented in a well-balanced and well-focused manner. To this end, it is, first of all, necessary to develop a systemic approach adjusted to national social development programs, applicable laws and the city’s existing healthcare infrastructure.
CONSTRUCTION OF STATE-OF-THE-ART SPORTS COMPLEXES
Fig. 6. Number of sports facilities as per 1,000 residents 4
KEY INITIATIVE IMPLEMENTATION AREAS
Start
End
Creation of incentives for investors in the field of construction of sports infrastructure facilities
already started
Q4 2012*
PROMOTION OF NON-MOTOR TRANSPORT AS AN IMPORTANT COMPONENT OF MOBILITY SYSTEM
A large-scale promotion campaign and popularization of healthy lifestyles
already started
Q2 2014*
The biking infrastructure will be gradually integrated into the transport scheme and recreational sites.
Development of sports activities for children
already started
Q4 2014*
* further works to be carried in accordance with the respective plans
27
CITY CENTER NEARBY INITIATIVE 8: DEVELOPMENT OF POLYCENTRICITY, CREATION OF NEW CITY CENTERS CITY GOALS Innovative
Unique
Livable
Open for business
Having a transparent governance system
Green and well-balanced
WHY IS THIS IMPORTANT? The transition from the mono- to the polycentric model of Kyiv’s development is an important prerequisite for the city’s well-balanced and harmonious development both in economic and social terms. The creation of several city activity centers (the business center, the administrative center, the cultural and historical center, and the natural and recreational center) of the entire-city level of importance must facilitate the city’s further decentralization and the achievement of the following advantages: • Creation of new zones of rapid economic development outside the boundaries of the historical center • Development of the competition and self-sufficiency among the city’s districts, achievement of their multifunctionality • Improvement in the level of the comfort of living by bringing respective infrastructure facilities and workplaces to the places where Kyiv residents live • Reduction in the load of the historical center • Reduction in the traffic load through dispersion of the city’s transport flows, reduction in the number of daily long-distance travels • Dispersion of the pressure on the city’s infrastructure system In general, Kyiv must get close as much as possible to the image of “a walking-distance city”.
KEY MEASURES Measures
Start
End
Detailed elaboration of the General Plan: • First-stage implementation project • Zoning of certain territories and designing of certain city knots
already started
1Q 2013*
Development of a system of Kyiv state construction standards
already started
1Q 2013
Tender for the development and selection of a concept for the implementation of the Kyiv City project
1Q 2012
2Q 2012
Development of preferential mechanisms and benefits for the developers of new centers
1Q 2012
3Q 2012
Formation of the complex city planning program “City Center Nearby”, formation of a respective bank of projects
1Q 2012
1Q 2013
Implementation of the first stage of the Kyiv City project
1Q 2013
1Q 2018
Gradual decentralization of administrative functions outside of the boundaries of the historical center
1Q 2015
4Q 2019
* further works to be carried in accordance with the respective plans
KEY INITIATIVE IMPLEMENTATION AREAS New centers in Kyiv will be formed in compliance with the following principles of effective use of city territories: • Alternative centers will be developed within the city’s territory subject to the already existing infrastructure and the availability of transport routes to residential districts • Secondary development (including within the territories of industrial zones) will be given priority over primary development, which will make land use more effective and will preserve the green zones The formation of a decentralized city is a long-term process and is, first of all, reflected in a complex approach to the city development. One of the important projects to be implemented in the near future (2012-2020) will involve the creation of a modern business zone outside of the historical and cultural center (the Kyiv City project and the initiative “International Harbor for Headquarters”). These business zones must become sufficiently attractive not only for the purposes of hosting representative offices of international companies in the region, but also as high-quality locations for the existing local enterprises. It will be critically important to create not only large office spaces, but also the necessary services in the areas surrounding the business center which will be affordable for small and medium-size business representatives. Another important step towards the implementation of this initiative (2015-2020) will be the gradual decentralization of the location of the city’s administrative functions of both the city and individual state institutions which now occupy large spaces in buildings of the historical center which are not well-suited for this purpose. Fig. 8. Distribution of places of residence and workplaces in Kyiv in 2011
Left Bank 18% of workplaces 38% of Kyiv residents Right Bank 82% of workplaces 62% of Kyiv residents
On top of that, the following specific measures are planned to be carried out to support the overall city development in the context of dispersal of centers: • Restriction of further location of business real estate facilities in the historical center, adoption of the basic historical and architectural plan • Development of a project for the first-stage implementation of the General Plan, including with a particular focus on the reduction in commutation • Construction of the Podil-Voskresenka underground railway line covering the Troieshchyna residential district and construction of the city ring electric-train line • Priority location of modern business centers, shopping malls, hotels, exhibition centers and social infrastructure facilities on the left bank of the Dnieper rivers and in remote districts of its right bank The implementation of this initiative requires the creation of preferential mechanisms for those developers who facilitate achievement of the balance in the distribution of places of residence and workplaces through construction of commercial real estate facilities on the left bank and development of the territories of industrial zones in line with this Strategy and the General Plan.
29
INTERNATIONAL HARBOR FOR HEADQUARTERS INITIATIVE 9: HOSTING OF CENTRAL AND REGIONAL OFFICES OF INTERNATIONAL ORGANIZATIONS CITY GOALS Innovative
Unique
Livable
Open for business
Having a transparent governance system
Green and well-balanced
WHY IS THIS IMPORTANT? Incentives for international companies to locate their important central and regional functions in the city cover one or several scenarios for their presence: • Location of the central or regional headquarters • Location of one of the divisions (functions) of an international company • Location of the administrative center (the back office) The large-scale hosting of international companies will lead to: • Creation of a large number of new workplaces and higher competition in the labor market • Experience sharing in the local business community, development of innovations • Improvement of Kyiv’s status on the international arena, including its status of a city attractive for business and investments • Improvement of the city’s infrastructure and, in a long-term perspective, the city’s education quality • Increase in the city’s budget revenues Table 4. Salary levels and tax burdens in compared countries1
Country
Salary level for junior-level workers
Tax burden on the employer1
Ukraine
36
27%
Russia
60
14%
Hungary
77
27%
Poland
94
14%
Czech Republic
100
34%
KEY MEASURES Measures
Start
End
Creation of the city’s new high-quality business center (“Kyiv City”)
already started
4Q 2014*
Development of an international business promotion program
1Q 2012
4Q 2012
Simplification of the regulatory framework for foreign companies
1Q 2012
2Q 2013
Launch of an information campaign for international corporations
1Q 2012
4Q 2012*
Holding of investment forums
1Q 2015
implemented annually
KEY INITIATIVE IMPLEMENTATION AREAS Kyiv already has a number of considerable competitive advantages for the hosting of regional headquarters and separate functions of international companies. They include the following advantages: • The level of the employers’ social responsibility is lower than in the Czech Republic and Hungary (see Table 3) • Well-educated and relatively cheap (considering the productivity of labor) labor force • Convenient geographical location, well-developed transport communications and a visa-free regime for the citizens of most countries • The relatively high level of security, the low crime rate in the context of crimes against human health and life • A visa-free regime for a great many countries, direct air routes to most European countries (a total of over 90 regular direct air routes compared to 93 in Prague) However, despite its advantages, Kyiv has to demonstrate to international companies the stability, consistency and permanency of its intentions to develop into a modern city with the high level of business culture. An important signal in this context will be the construction of a modern business center with the high-class office infrastructure (“Kyiv City”). For this purpose, the respective territory will be selected (in accordance with the principle of dispersion of city activity centers laid down in the respective strategic initiative), a tender will be held for the development of the concept among recognized architectural bureaus in accordance with state territory planning and development standards, developers and investors will be engaged. Apart from this important project, the city will need to remedy some series drawbacks, in particular it will have to: • Simplify the approval system, as well as procedures for the registration and conduct of business • Create a simplified and transparent procedure for granting facilities for reconstruction and land plots for construction • Ensure the required capacity and reliability of the engineering infrastructure For further promotion of business, a system of preferences and benefits will be developed both for specialized sectors (within the framework of the respective strategic initiative for the development of competitive cluster) and for international business which will transfer significant functions to the city in general. Infrastructure-related and regulatory changes will become the foundation of a long-term information campaign about Kyiv’s advantages for international business which will convince corporations of the city’s attractiveness.
* further works to be carried in accordance with the respective plans 1. An effective social burden on employers (social deductions for workers) based on a four-level company model and the following number of workers: Level 1: 1 person, salary – 15,000 euros; 2: 6 persons, salary – 7,500 euros; 3: 25 persons, salary – 2,500 euros; 4: 65 persons, salary – 1,000 euros. In all countries, except Ukraine, the 4th-level salary is 185% higher.
31
PRIORITIES BROKEN DOWN BY CITY DEVELOPMENT SECTORS
THE CITY’S ACTIVITIES WILL BE IMPROVED AT THE EXPENSE OF PRIORITY SECTORS CITY DEVELOPMENT SECTORS
WHY EXACTLY THESE PRIORITIES? HOW THESE SECTORS DIFFER • Improvements in these sectors will secure the foundation for FROM THE “BIG MOVES”? the city’s activities and facilitate systemic improvements in the quality of life • Projects to be implemented in these sectors will cover a very wide range of population groups and will have most significant effect on Kyiv residents’ economy and comfort in a long-term perspective
• Unlike the “Big moves”, the sectors focus on individual industries, the management functions for which have already been formed at the local administration and where strategic tasks can be implemented with the help of the existing mechanisms, but this will require stricter control • Although certain individual tasks are associated with both the “Big moves” and the sectors, a considerable number of measures, which are critically necessary for the city’s quality activities, are not reflected in the key strategic initiatives. They are the focus of this section.
ECONOMIC DEVELOPMENT, PRIVATE ENTREPRENEURSHIP AND INVESTMENTS
TRANSPORT
ENGINEERING INFRASTRUCTURE AND UTILITY SERVICES
ECOLOGY AND ENVIRONMENTAL SAFETY
TOURISM
HEALTHCARE
EDUCATION
SOCIAL PROTECTION AND SAFETY
LABOR MARKET AND EMPLOYMENT
33
ECONOMIC DEVELOPMENT, PRIVATE ENTREPRENEURSHIP AND INVESTMENTS SECTOR 1
VISION OF FUTURE SITUATION IN THE SECTOR GROWING ECONOMY WITH PARTICULAR FOCUS ON THE INDUSTRY WITH HIGH ADDED VALUE, SMALL AND MEDIUM-SIZE BUSINESS AND THE CITY’S FAVORABLE INVESTMENT CLIMATE Advantages
Disadvantages
• GRP per capita and real GRP growth are higher than average for the country (the growth rate is 3.2% higher than in 2004-2009)
• A perceptibly smaller share of SME in the GRP structure as compared to the global level
• Center of capital investments (Kyiv receives 34% of Ukraine’s FDIs)
• According to its GRP and FDIs per capita indicators, Kyiv obviously lags behind other Eastern European capital cities used for comparison purposes
• Service-oriented economy (services account for 83% of the GRP)
• Unfavorable regulatory environment
• Large market
MAIN FACTS AND TASKS OF STRATEGIC PLAN Historically, Kyiv’s economy has been developing more dynamically than the national economy (on average, the real GRP growth rate is almost two times higher, while the GRP per capita indicator is almost three times higher). Kyiv accounts for 19% of Ukraine’s GRP, 18% of the country’s retail sales and 23% of all construction works. The structure of Kyiv’s economy mainly consists of service sectors (83%), such as finance, trade, real estate transactions and business services. Now, Kyiv accounts for one-fifth of the entire national economy. At the same time, in the context of its GRP per capita indicator, Kyiv lags behind the other cities used for comparison purposes. In 2010, Kyiv’s GRP per capita stood at 14,200 euros, which is 1.9 times lower than in Prague and 1.5 times lower than in Moscow and Warsaw. One of the city’s key strategic tasks is the improvement of its population’s economic welfare, and in particular the twofold increase in its GRP per capita indicator. In order to achieve such an ambitious goal, it is necessary to activate all GRP growth opportunities, especially private entrepreneurship and investments. Fig. 9. GRP per capita, EUR ’0001 Prague
27,2
Moscow
20,9
Warsaw
20,9
Budapest
14,3
Kyiv
14,2
St. Petersburg
13,6
Fig. 10. GRP structure, % 100% 24,4%
Others
16,6%
Trade, repairs
43,4%
Finance
15,6%
Real estate, business services
50%
0%
2009
KYIV AS A CITY OF ENTREPRENEURSHIP Entrepreneurship is considered to be the foundation of sustainable economic welfare and secures a considerable portion of jobs and public welfare. In EU countries, small business entities account for 98% of the total number of enterprises and more than a half of the total jobs. Their contribution to the economy exceeds 40%2. In Ukraine, small business entities account for some 47% of the total number of enterprises and 36% of the
34
total workplaces. At the same time, the small business accounts for less than 15%3 of the city’s total product sales. These data may reflect both the low productivity level of small enterprises and the existence of a large shadow sector. One way or the other, the figures demonstrate the sector’s strong potential that must become one of the driving forces of GRP growth. Today, private entrepreneurship faces a lot of problems in the context of its interaction with the city: a complicated regulatory and approval system, endless inspections and other formalities hamper business development and force some of the entrepreneurs to retreat to the shadow sector. Fig. 11. SME’s share in Kyiv’s economy as compared to average European indicators SME contribution, Kyiv 66% Medium-size
31%
49%
SME contribution, EU 27 67% 59% Medium-size 17% 18% Small
21% 19%
34% Small
25%
Micro
11% Employment rate
13% 2% GRP
Micro
29% Employment rate
22% GRP
To achieve its defined stable economic growth objective, Kyiv has to create a favorable business enabling environment. In this context, main efforts should be focused on the following tasks: • Simplification of administrative procedures relating to the opening, conduct and closing of business, as well as to the transfer of premises located on the ground floors in residential buildings from the residential fund to the non-residential fund (provided that a separate entrance is built and compliance is ensured with sanitary, environmental, fire safety and other standards). • Improvement of the single permit center to increase the accessibility and the quality of the city authorities’ services for businesses, the opening of several new centers. • Creation of a special service for support of small and medium-size businesses at the local administration with decentralized representative offices on the level of the city’s districts which will advise small and medium-size business representatives and collect district communities’ comments concerning entrepreneurial activities.
ECONOMIC DEVELOPMENT, PRIVATE ENTREPRENEURSHIP AND INVESTMENTS SECTOR 1 • Improvement of the coordination of the implementation of projects through the appointment of responsible persons from the management vertical, implementation of a project-based approach to management • Active participation of private sector entities in the planning of the city’s investment program, including through the holding of joint investment forums and other events Another provision of the Strategy will secure the concurrent process of strengthening the local economy and its investment potential. In a log-term perspective, the formation of a comprehensive local economic program will greatly affect the competitive strength of the local economy development.
PROMOTION OF INVESTMENTS Despite the growing dynamics of cumulative direct foreign investments, Kyiv lags behind the comparison group of cities with its FDI per capita indicator. Projects with a considerable share of foreign and local investments are only occasional exceptions from the standard practice of budget financing. Meanwhile, it is investments that may become the driving force of the city’s economic growth, as this happened in CEE countries. In order to create a favorable investment climate, Kyiv intends to establish effective cooperation with the representatives of both foreign and local investors. Apart from the urgent problems which require immediate solution (such as the transparency of land relations, the transparency and speeding-up of formal procedures), the city must launch the process of gradual simplification and improvement of its regulatory environment in cooperation with state regulatory authorities. Fig. 12. Cum FDIs per capita, EUR ’000 Budapest
ACTIVITIES OFFERING IMMEDIATE RESULTS
5,6
39,7
Warsaw Kyiv
Fig. 13. Cum FDIs in the city’s economy per capita, EUR ’000 42,5
Prague
MAIN ACTIVITIES AND TASKS OF TARGET PROGRAMS
3,6
15,4
2,5
5,6
1,2
0,9
Moscow 1,6 St. Petersburg 0,8
2006
1,6
2008
2010
An important step will be a change in the process of working with investments: • Change in the city’s investment planning process (inclusion in the investment program of not only budget-financed projects, but also of projects with mixed forms of financing, such as PPP, co-financing, etc.) • Change in the performance assessment system which will be based not on the result of the use of budget funds, but on the implementation of the investment program in general, including in the context of the private sector • Enhanced transparency of land relations in order to remove administrative barriers and lower the level of corruption in matters relating to the allocation of land plots • Improvement of the quality of the preparation of investment projects through the implementation of new standard forms, change of the role of engaged organizations
• Development a new investment process within the framework of the city’s executive authorities • Improvement of the function and the role of the local investment agency responsible for the improvement of the investment climate, promotion of the city’s investment potential and support for its investment projects • Conduct of an inventory and creation of the city’s register of investment projects • Holding of the first Kyiv Investment Forum in March 2012 with the participation of local and international investors
LONG-TERM DEVELOPMENT • Revision of administrative procedures, cancellation of unnecessary procedures and simplification of the other procedures • A radical upgrade of the program for the development of small and medium-size business • Development of a system for interaction between the entrepreneurs and the city on the basis of e-government platform • Setting-up of special services for support of entrepreneurs with representative offices in every district of the city • Creation of the geo-information system for investors and business representatives • Regular holding of the Kyiv Investment Forum, as well as other forums for interaction between government and private sector representatives
KEY DEVELOPMENT INDICATORS Indicator
Measurement unit
Current value4
% per annum
Target value 2015
2025
5.75
-
6.54
UAH ’000 per resident
61.9
164.0
401.9
Economic welfare indicator Average annual real GRP growth Indicators not included in the Liveability Index Nominal GRP per capita6 Cumulative direct foreign investments per resident Annual capital investments Share of micro and small enterprises in the city’s total product sales
’000 per resident
5.6
14.7
30.8
UAH ’000 per resident
5.2
11.2
16.8
%
15
20
35
1. In terms of the parity of the purchasing power 2. According to Eurostat data for 2008 3. According to data available from the State Statistics Service of Ukraine for 2010 4. The current values of the economic welfare indicator are given for 2009 (for comparison with other cities); the current values of the indicators that were not included in the liveability index are given for 2010 5. The current value represents the average growth in 2004-2009, while the target value represents the average growth in 2010-2025 6. Subject to the projected average annual deflator of 6.1% in 2010-2025
35
PRIORITY MUST BE GIVEN TO DEVELOPMENT OF HI-TECH INDUSTRIES THE CITY’S ECONOMY GROWTH SECTORS1
PROJECTED VOLUMES AND STRUCTURE OF KYIV’S GROSS REGIONAL PRODUCT BY TYPES OF ECONOMIC ACTIVITIES FOR A PERIOD OF 2011 TO 2025 A SUMMARY OF CONCLUSIONS MADE BY THE INSTITUTE FOR ECONOMICS AND FORECASTING AT THE ACADEMY OF SCIENCES OF UKRAINE
1
2
Research objectives
The Institute for Economics and Forecasting at the Academy of Sciences of Ukraine has prepared a research for forecasting the city’s economic development until 2025 and identifying its growth sectors. The research resulted in the determination of the projected volumes and structure of Kyiv’s GRP as broken down by separate industries.
Research methods
The projected GRP indicators and its structure were identified on the basis of the method of gradual linear approximation with subsequent adjustments for effects of labor and capital factors. The following two scenarios were considered: the basic scenario (the average annual GRP growth rate of 6.9% in 2010-2025) and the optimistic scenario (the average annual GRP growth rate of 7.2% in 2010-2025).
The main conclusion is that Kyiv’s most promising area for development is its hi-tech component. This will ensure high population growth and employment rates.
3
The following sectors must become the growth sectors: • Engineering and IT • Precision engineering and electronics • Pharmaceutical production • Food industry • Science, education and culture • Telecommunications • Trade and services
Conclusions
Fig. 14. Projected values (according to the basic scenario)
Fig. 15. Projected values (according to the optimistic scenario)
Kyiv’s GRP (actual and projected)
Kyiv’s GRP (actual and projected)
120
125 119,7 116,8
Average value: 106,9
115 110 105
111,5
110,7 105,8
104,4
102,7
110,3
109,3 108,5 107,9 107,3 106,8 106,4 106,0 105,6 105,3 105,1 104,8 104,6 104,4
100 95 90 85 80
36
81,7 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
% as compared to the previous year
% as compared to the previous year
125
120
119,7 116,8
Average value: 107,2
115 110 105
111,6
110,7 105,8
104,4
102,7
110,5
109,5 108,7 108 107,5 107 106,6 106,2 105,9 105,6 105,4 105,2 105,0 104,8
100 95 90 85 80
81,7 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
TRANSPORT SECTOR 2
VISION OF FUTURE SITUATION IN THE SECTOR AN ACCESSIBLE, RELIABLE, CONVENIENT AND MULTIMODAL TRANSPORT SYSTEM Disadvantages
Advantages • All types of public transport are developed • Public transport is now the main means of travel for more than a half of Kyiv’s population • Public transport is now the cheapest as compared to the other cities from the comparison group • Large sales market
• The infrastructure facilities, which was mainly built back in Soviet times, and most of the vehicles need to be replaced • The development of city with the single center, the population growth and the motorization increase have exhausted the capacity of the infrastructure • The city’s transport enterprises are in the red and are not attractive for investors • There are no biking infrastructure facilities or pedestrian areas in densely-populated districts
MAIN FACTS AND TASKS OF STRATEGIC PLAN Kyiv has all types of city transport. Public city transport is used by a considerable number of passengers and potentially stable cash proceeds. Disproportions in the development of the city and the construction of its transport infrastructure, the orientation of all transport flows to the single city center and the permanently low level of investments have resulted in the territorial inaccessibility of certain types of transport (approximately 20% of the city’s residents do not have access to the underground railway) and the exhaustion of the capacity of its fleet and infrastructure, and therefore, the excessive load during rush hours (see Fig. 16).
125%
120%
Underground railway crossings
Underground railcars
175%
175%
Buses
114%
Underground railway stations
200%
Trams
Fig. 16. Transport and infrastructure load during rush hours1 200% 150%
Roads
0%
Trolleybuses
100%
Large business centers lack 3/42 of the required parking lots, while the alternative transport infrastructure (bicycle and pedestrian routes) is either reduced in the interests of motor transport or is altogether lacking. A serious threat is posed to the reliability and predictability of public transport by the level of deterioration of its fleet and infrastructure. This situation worsens its reliability and poses a threat to the safety of its passengers. Thus, 80% of the underground railcars and 40% of the underground escalators
have exceeded their service life, while 33% of the trolleybuses, 82% of the trams, 20% of the tram rails and 19% of the cables are subject to retirement. 85% of the roadway covering need to be repaired, and 74% of the road signs need to be replaced. The worn-out roadway covering also considerably increases the risk of traffic accidents (see Fig. 17). Fig. 17. Kyiv’s traffic accident rate is one of the highest Number of victims per 1 sq. km. of the roadway3
3,2
3,0
2,3
1,6
1,2
1,2
Moscow
St. Petersburg
Kyiv
Budapest
Warsaw
Prague
The convenience of Kyiv’s transport does not comply with the world’s best standards. However, the public transport is relatively cheap (cost of travel vs. hourly wage) compared to the other cities from the comparison group. Thus, for example, the relative cost of an underground railway ride is 10% (Moscow – 14%, Budapest – 43%). Out of a total of 49, only three underground railway stations are accessible for disabled passengers, while the low-level floor is available only in 40% of the fleet of buses and trolleybuses and in the express tram cars. The near-term strategic task will be improvement of the transport situation in the city. The current average home-towork trip duration indicators must be reduced twofold, from 60-90 min. to 30-45 min. However, in order to really ensure empty roadways and fast travel, Kyiv needs to get comfortable and cost-efficient public transport and develop alternative means of transportation to re-distribute the city’s passenger flows (see Fig. 18). The targeted structure will be achieved through the supply of high-quality public transport and alternative means of travel, as well as regulatory and economic incentives for a reduction in the use of private motor cars3.
37
TRANSPORT SECTOR 2 Fig. 19. Kyiv residents’ most frequent comments regarding the Transport section of the Draft Strategy
Fig. 18. Changes in the Kyiv city transport use structure 2010
52%
Street navigation
48% 10% Bicycle stops
2025
50%
40%
10%4
PUBLIC TRANSPORT AS THE KEY PRIOTITY The accessibility of city transport will be secured with a particular focus on rail transport and express buses. The situation with the accessibility of public transport in Holosiivskyi District and Desnianskyi District will be improved through the construction of the fourth underground railway line (Zhuliany-Troieshchyna), the express tram line Troieshchyna-Osokorky and additional crossing knots and stations. The fleet will be upgraded, additional crossings and exits will be built at the most heavily loaded stations, new underground railway lines will be designed to accommodate 6-7-railcar trains. The underground railway will get symbolic or English-language navigation facilities and Internet coverage. The surface transport will be reconstructed with a particular priority to be given to the development of express bus routes and the creation of a fleet with a larger capacity and wider doors. Particular attention will be given to the use of trolleybuses (in view of the development of a branched overhead system) in other than main networks as an environmentally-friendly type of transport, with un upgrade of the fleet with the vehicles with a self-contained power supply system. The improved reliability and predictability will be achieved through the effective work of operators, which, in its turn, will be achieved through the division of operating and strategic functions between the city administration and the city management company, in particular: • The Kyiv City State Administration will focus its efforts on the regulatory system (tariffs with a wide range of options, general requirements) • There will be a single management company for exercising traffic control and managing transport infrastructure assets to identify the priorities and prepare technical maintenance and repair schedules, as well as dealing with other management-related matters • Operators (currently represented by separate utility companies) will focus on daily matters (infrastructure maintenance, daily exploitation of the fleet and the immovable property base) The management company will be guided in its operations by the clear understanding of the current and prospective supply sites (residential districts) and demand sites (workplaces) in the context of transport flows, subject to the city and regional development plans – the transport scheme is to be developed every three years. Judging from Kyiv residents’ comments regarding this Draft Strategy, the imbalance between the existing transport flows and the supply of transport services is the most frequent comment (see Fig. 19).
38
13%
Underground railway in Troieshchyna District 13%
14%
51%
Standardization of fixed-route minibuses Route changes
The improved comfort level of the surface public transport will be achieved through its easy accessibility for disabled passengers. A single universal ticketing and fee collection system will also be created.
PRIVATE TRANSPORT: MORE CARS, BUT EMPTIER ROADS Given the existing tendencies, it is impossible to deny that the number of private cars will continue to grow in the city. The projected motorization level will increase from 254 cars per 1,000 residents to 400 cars per 1,000 residents. To ensure the safety and comfort of the car transport, it is first of all necessary to optimize the use of the existing road infrastructure (for example, by creating an automated traffic control system) and to work actively to create the new roadway covering. The new road infrastructure will be created using the existing experience in the optimization of car flows: full-speed lanes, “pockets” for public transport, bicycle lanes, reserve lanes for turning left. However, the existing city development rate and some other barriers will get in the way of the expansion of the infrastructure to the level that will be able to meet the demand for personal car movements. In the given circumstances, the only way to solve the city’s traffic problem will be to facilitate a reduction in the use of cars in the same manner in which this is done in most European capitals. Meanwhile, according to the results of a poll conducted among Kyiv residents during the development of this Strategy in February-March 2011, most residents are ready to refrain from using their cars provided that the alternative in the form of high-quality public transport is available. Fig. 20. Kyiv residents are ready to welcome transport reforms Those who agree to… …refrain from using their cars often, provided that comfortable and cheap public transport is available 72% …have driving and parking in certain parts of the city restricted, provided that this will lead to a reduction in the number of traffic jams 64% …pay for using the roads, provided that their quality will improve 46%
Now, the average city resident uses his own car three times a day, and therefore, the city’s task is to create the necessary
TRANSPORT SECTOR 2 conditions for the reduction in the number of such trips to only 3 trips. This can be achieved through: • Introduction of high-quality alternatives in the form of comfortable and accessible public transport (including the construction of intercepting parking lots near transport nodes outside the city center) • Creation of the alternative transport infrastructure (especially in the context of short-distance trips) • Implementation of regulatory and economic incentives to restrict the use of personal cars (for example, by improving city center parking costs and procedure)
Average daily number of private car trips
Fig. 21. Scenarios for reducing the number of traffic jams through the regulation of the use of private cars 3,5
3,0
2010 Preferred 2025 scenario with no regulation of the use of private cars Pessimistic scenario
Empty roads
2,5
2,0
1,5 1,0 50%
2025 with the regulation of the use of private cars
100%
Traffic collapse
150% 200% 250% Traffic load on the roads, %
Apart from that, the transport infrastructure overload will be reduced due to the dispersion of daily transport flows following the creation of separate specialized city centers (the business center, the administrative center) outside the historical and cultural center.
ALTERNATIVE MOBILITY – AVAILABILITY OF OPTIONS The increase in pedestrian movements and the implementation of the bicycle infrastructure (in the areas with the respective relief) will, first of all, help to create an alternative to cars in the context of short-distance travel and to solve the “last mile” problem in residential districts. The respective efforts will be focused on the achievement of the following objectives: • Improvement of the pedestrian infrastructure, construction of high-quality pedestrian zones in residential districts • Construction of the bicycle infrastructure in the pilot city district, with its further expansion into Kyiv’s other districts (in particular, construction of bicycle roads, bicycle lanes, bicycle priority streets, crossings, intercepting bicycle parking lots in transport nodes) • Future creation of a safe, convenient and integrated network of visual (bicycle ways, bicycle lanes, bicycle parking lots) and non-visual (for example, traffic control on certain streets with priority given to bicyclists) components of the bicycle infrastructure throughout the city.
IMPLEMENTATION TOOLS There are two main tools for increasing the supply of surface transport: • Measures which require relatively small capital expenses and which are implemented with the help of regulatory changes: ||optimization of traffic flows (for example, one-way streets, separation of private car routes and public transport routes along different streets) ||separate lanes for public transport ||strict regulation of car parking in the city’s streets ||taxi standardization ||replacement of fixed-route minibuses with the buses with a larger capacity and wider doors • Measures which require considerable capital expenses to build the lacking infrastructure facilities (creation of new business and administrative centers at a distance from the existing historical and cultural zone, development of the underground railway infrastructure, surface transport routes, express tram and electric train routes, replacement or upgrade of the existing fleet, parking lots). The city is capable of implementing traffic flow optimization projects using its own resources. However, the construction of the lacking infrastructure is an extremely difficult task without the engagement of various forms of private capital. Thus, for example, major infrastructure projects (new city centers) will be developed with the participation of a number of investors in the context of relevant strategic initiatives. PPP arrangements will be used to build new underground railway lines and stations, as well as express tram tunnels and lines. Private-financing-only schemes will be used to build parking lots, upgrade transport stop facilities, upgrade the private operators’ fleets, and create bicycle parking lots.
MAIN ACTIVITIES AND TASKS OF TARGET PROGRAMS ACTIVITIES OFFERING IMMEDIATE RESULTS • Development of a complex city transport scheme • Optimization of traffic flows using: ||one-way streets ||separate lanes for public transport ||shifts of the working hours at state institutions, etc. • Improved street navigation processes and transport stop facilities • Taxi standardization • Spin-off of the management company from the Kyiv City State Administration • Creation of an integrated city traffic web-portal with updated information about routes and timetables, as well as a search tool for optimal routes to the destinations
39
TRANSPORT SECTOR 2
LONG-TERM DEVELOPMENT • Improved accessibility of the underground railway (construction of the 4th underground railway line) • Implementation of an automated traffic control system and a city traffic flow modeling system • Increased capacity of the underground railway (construction of additional passages and exits at stations) • Upgrade of the underground railway and surface transport fleet and infrastructure
• Gradual reduction in the street parking, construction of intercepting parking lots • Video surveillance on motorways with an automated offence control system • Developed pedestrian and bicycle infrastructure, starting with the pilot project to be implemented on the Left Bank • Improved accessibility of the road infrastructure (construction of new roads / junctions) • Complex covering for the city’s pedestrian infrastructure
KEY DEVELOPMENT INDICATORS Indicator
Measurement unit
Current value7
km per 10,000 persons
Density of the road and main road network Number of traffic accidents victims
Target value 2015
2025
9.6
11.6
16.1
km per sq. km.
2.1
2.35
2.8
persons per km
2.3
1.8
1.2
Public/private/ alternative
52/48/0
51/45/4
50/40/10
km per hour
23
30
40
%
85
67
<15
Liveability Index Length of public transport routes 5
Additional indicators Passenger flows broken down by types of transport Average speed of surface public transport and car transport during rush hours6 Total area of the roads that require repairs
40
1. Estimations made by the Strategy Development Group on the basis of information provided by the respective department of the Kyiv City State Administration. 2. The standard is 5-8 parking spaces per 100 sq. m. – DBN 360-92. 3. Number of victims – number of injured and dead, 2009. 4. The percentage has been calculated using the projected gender-age population structure, daily passenger flow volumes, bicycle sales dynamics, average 7 months per year suitable for riding a bicycle. 5. Taking into accounts forests, vegetation, water surfaces, developed and industrial territories. 6. According to the information available from the SMIlink analytical center (Yandex.Maps). 7. The current values of the Liveability Index are given for 2009 (for comparison with other cities); the current values of the additional indicators are given for 2010.
ENGINEERING INFRASTRUCTURE AND UTILITIES SECTOR 3
VISION OF FUTURE SITUATION IN THE SECTOR RELIABLE, HIGH QUALITY SYSTEM OF UTILITIES PROVISION Disadvantages
Advantages • Sufficient heat producing capacities
• Drastic wear of engineering infrastructure
• Relatively low energy consumption
• Depletion of distribution capacities (heating, power, sewage disposal networks) mainly due to intensive real estate development in the city
• Satisfactory availability of water pipelines
• Chronic arrear of infrastructure development in comparison with territories development pace • Significant shortage of funds for capital repairs and investments in the infrastructure proprietor – the city. • Inefficient residential property fund management and maintenance system which does not perform its functions.
MAIN FACTS AND TASKS OF STRATEGIC PLAN The city infrastructure is in a very difficult condition: water drainage system (including the city drainage channel and Bortnychi sewage treatment station) is almost completely worn out and poses an ecologic threat; heating networks are half worn out which fact causes more than 50 breakdown a day (in average during the heating season). The number of heating mains accidents is growing by approximately 6 per cent annually. The accidents cause serious harm to the road facilities. Most of the problems are connected with insufficient funding as the water supply and sewage disposal and heating tariffs do not cover even operational expenses leaving alone the investment component. Fig. 22. Share of operational expenses not covered by tariffs for the respective services. Water supply Heating Power supply
60% 53% 100%
Systematic insufficient funding of infrastructure networks causes significant resources losses during transportation and distribution, for example in water supply networks 1/5 of water is lost, in heating networks – 17 per cent of heat and in power supply networks 11 per cent of electric energy is lost. Insufficient capital projects funding dramatically influences residential property fund of the capital: 1/6 of all buildings in the capital is worn out more than 40 per cent. One third of elevators is in emergency state, 1000 elevators become unsafe each year. The condition of the sector requires immediate comprehensive actions. The principal strategic task is to provide the city with appropriate, affordable, high quality utility services.
Fig. 23. Water losses in the municipal water supply system, per cent 21
20
18 11
11 5
Prague
Kyiv
Budapest
St. Petersburg
Moscow
Warsaw
The work will be focused on three spheres: • Reconstruction and modernization of the existing capacities and networks. • Improvement of the residential property fund condition and quality of its maintenance. • Development of facilities and infrastructure network.
RECONSTRUCTION AND MODERNIZATION OF THE MUNICIPAL CAPACITIES – FIRST-RATE NETWORKS Now the reanimation of the municipal infrastructure requires significant amounts (for example, EUR 1 billion – for water supply and sewage disposal facilities, EUR 1.5 billion - for heating systems), and timeframes to complete the comprehensive reconstruction are 10-15 years. Thus the city has to immediately change the approach to the infrastructure facilities support and stop relying only on its own budget resources. Within the World-class infrastructure strategic initiative the situation should be resolved by attracting significant investments in the infrastructure through the following: • Cooperation with the existing private operators, forming of high quality economic and normative stimuli for active works aimed to the network modernization. • Engagement of grants and privileged loans from international organizations for commercially unattractive but socially important projects.
41
ENGINEERING INFRASTRUCTURE AND UTILITIES SECTOR 3 Priority directions for investments are the following: • Reconstruction of the sewage disposal facilities and waste treatment station; • Modernization of the city’s heating networks and heat substations; • Repairs of intake stations and selective modernization of critical components of water supply networks (for example, repairs of shutoff and control fittings). Subsequently infrastructure networks will be transferred to specialized private operators through PPP mechanisms with strict regulation of the investor’s obligations and tariff regulation.
IMPROVEMENT OF THE RESIDENTIAL PROPERTY FUND CONDITION AND QUALITY OF UTILITIES – COMFORTABLE CONDITIONS AND UTILITY EXPENSES SAVING Improvement of the residential property fund condition via carrying out comprehensive thermal modernization is one of the key tasks within the Improvement of Kyiv’s Energy Efficiency Initiative. Systematic works will be aimed at creation of regulatory conditions and attraction of private investors to houses reconstruction and modernization projects which will be able to return the invested funds at the expense of achieved energy savings. Moreover, the works will also be aimed at economic consumption as Kyivans are lagging behind their neighbors with respect to resources saving culture (for example Figure 24)
Fig. 24. Comparable water consumption is the most inefficient in Kyiv Water consumption, sq.m./person/year
41
47
Prague
Warsaw
59
Budapest
71
St. Petersburg
81
86
Moscow
Kyiv
Economic consumption will be closely connected with distribution of building and apartment meters which would allow the citizens to directly manage their utilities expenses. The same will be facilitated by gradual transfer of residential buildings and surrounding territories for management and maintenance of the inhabitants themselves (via such structures as apartment building co-owners association). Such structures would allow the local community to control expenses, quality of works and improvement of their territories on its own. At the moment, notwithstanding their advantages and transparency, these structures have certain technical complicacies and legislative drawbacks which must be corrected within 2-3 years. The management structures market will be developed and structured to so that it could propose high quality services on residential property fund and surrounding territories maintenance. But while management structures are not widely spread and 73 per cent of the city buildings are serviced by housing and public utilities the city must be provided with high quality servicing by the respective public services. Thus within the E-government Initiative it is planned to centralize monitoring service which would allow to improve the quality of servicing, prioritize problematic areas and determine zones requiring prompt repairs attracting budget funds, improve prompt call
KEY DEVELOPMENT INDICATORS Indicator
Measurement unit
Current value1
Km/1000 persons
Target value 2015
2025
4.2
5.0
9.4
Km/sq.km
13.9
16.7
40
Km/1000 persons
1.5
1.7
3.6
Liveability Index Length of power distribution networks Density of power distribution networks Length of water pipelines Density of water pipelines
Km/sq.km
5
5.7
15.3
Length of sewage disposal networks
Km/1000 persons
0.9
1.2
3
Density of sewage disposal networks
Km/sq.km
3.1
4.0
12.8
Per cent
20
15
5
Transformer substations wear
Per cent
41
25
<10
Heat networks wear
Per cent
52
30
<15
Desnyanska and Dniprovska intake stations wear
Per cent
75
45
<10
Percentage of houses worn more than 40 per cent
Per cent
16
10
<5
Percentage of water losses from total consumption Indicators not included in the liveability index
1. Current values from liveability index as of 2009 (with the purpose of comparison with other cities); current values of additional indicators are as of 2010.
42
ENGINEERING INFRASTRUCTURE AND UTILITIES SECTOR 3 response. Thus the principal tasks of the city within the residential property fund improvement goal will be the following: • Formation of the legislative basis and attraction of private investors to the buildings thermal modernization projects (Energy Efficiency Initiative). • Promotion of building and individual resources and energy metering systems (Energy Efficiency Initiative). • Improvement of regulatory conditions and reducing obstacles for apartment building co-owners associations establishment. • Centralization of monitoring services for servicing the municipal residential property fund (E-government Initiative). • Setting priorities for problematic areas and selective financing of critical repairs works.
ENGINEERING INFRASTRUCTURES DEVELOPMENT – LONG TERM PRIORITIES The planned economic growth, attraction of international companies and development of local business will significantly increase strain on the existing municipal infrastructure. While the availability of water supply networks (4.9 km/sq. km.) and heat generating capacities (3.7 Gcal-hr/person) is on adequate level with respect to the comparison cities, the availability of power supply distribution (13.8 km/sq.km) and sewage disposal networks (3.1 km/sq.km) is already lagging behind due to the disproportion between the infrastructure facilities construction and rapid city development. Fig. 25. Availability of certain engineering infrastructure, km/1000 persons 9,2
9,0
7,9
Power lines
9,4
4,2
Sewage disposal networks
Water supply networks
Prague
Budapest
Warsaw
St. Petersburg
Kyiv
3,3 Moscow
3,6 2,0
Prague
Budapest
1,5
1,4
1,2
Kyiv
St. Petersburg
Warsaw
Moscow
1,1
0,9
0,7
Warsaw
Kyiv
Moscow
1,0
3,0 2,1
Prague
Large-scale city development projects (for example construction of administrative and business complexes within the City Center Nearby Initiative will be focused on the use of already existing systems, secondary development with obligatory modernization of subordinate networks. The suggestions will be developed with regard to construction standards correction both to the extent of qualitative energy saving characteristics (within the Energy Efficiency Initiative) and obligatory reconstruction of subordinate networks. But subsequently the networks development should become a priority task of the city and its partners (private operators, representatives of specialized oblast and state structures). Within the framework of close cooperation there should be developed acceptable mechanisms to stimulate the development and enhance capacities of infrastructure objects, attraction of foreign grants and investments, promotion of solutions on fair tariff regulation and state-level modernization projects.
MAIN ACTIVITIES AND TASKS OF TARGET PROGRAMS ACTIVITIES OFFERING IMMEDIATE RESULTS • Drafting of project and attraction of funds to modernize water supply and sewage disposal systems. • Modernization of capacities of sewage collection and sewage treatment station reconstruction. • Repairs of intake facilities and water supply networks. • Preparation of project and transfer of power supply and heat distribution facilities to PPP. • Bringing of water consumption standard of 330 liters/day down to the actual level of 235 liters/day. • Creation of resource centers for citizens support within the framework of apartment building co-owners associations registration and management
LONG-TERM DEVELOPMENT • Improvement of legislative conditions and decrease of obstacles for apartment building co-owners associations establishment. • Creation of underground engineering networks planning map. • Bringing the quality of water in compliance with the SanPIN standards. • Development of funds attraction mechanisms and stimulation of the city infrastructure facilities development
1,8
Budapest St. Petersburg
The said measures aimed to the reconstruction of the existing networks and promotion of the economic resources consumption would allow to use existing facilities more efficiently.
43
ECOLOGY AND ENVIRONMENTAL SAFETY SECTOR 4
VISION OF FUTURE SITUATION IN THE SECTOR SUSTAINABLE DEVELOPMENT AND DECREASE OF ADVERSE EFFECT ON THE ENVIRONMENT Disadvantages
Advantages • Significant number of green planting, municipal landscape gardening system
• A heritage of non-functioning/dilapidated environmentally dangerous objects within the city boundaries
• The level of emissions polluting the atmosphere is the lowest among compared cities
• Outdated capital assets of the functioning environmentally dangerous enterprises
• CO2 emissions level is the lowest among the compared cities
• Exhaustion and shortage of the existing sanitary landfills for residential solid waste (RSW) utilization
• Low level of rubbish generation
• No control over green landscape level • Air pollution increase due to the growing number of vehicles being the principal CO2 emissions source.
MAIN FACTS AND TASKS OF STRATEGIC PLAN SAFEGUARDING OF MUNICIPAL GREEN PLANTING Kyiv had been historically developing as a green city. Kyivans take reasonable pride in this fact but lately due to unsystemic city development the landscape vegetation areas have shrunken. Even now more that 50 per cent of the city territory are covered with green planting of different types1: there are 122 parks, 379 public gardens, 80 boulevards. The main task which the city faces with respect to landscape gardening is the classification of the existing green planting, improvement of functional qualities and development of systemic approach to future property development with minimal damage to the city’s vegetation: • Within the Dnieper Gem Strategic Initiative a development concept will be created for a cascade of islands and riverside territories of the Dnieper, the city’s ecological center. • Development of the program for comprehensive green zone of Kyiv and municipal landscape gardening standards which will be used to fix boundaries of city forests, woodland parks, hydroparks and parks where the development will be strictly controlled. • Cultivation of vegetation on surrounding territories of the houses, especially in recent development areas. • Simplification of procedures for determination of territories as public gardens or other forms of green zones. • Improvement of the existing and development of the new culture and entertainment parks with possible transfer of certain park zones into concession with the purpose of infrastructure renovation with strictly limited conditions of usage.
44
DECREASE OF ADVERSE EFFECT ON THE ENVIRONMENT The concentration of hazardous substances in Kyiv atmosphere is the lowest among the compared Central and Eastern Europe countries. Among the polluting substances carbon oxides prevail (65 per cent).Emissions of hazardous substances into the atmosphere grow by 6 per cent annually. CO2 emissions in Kyiv are also the lowest among the compared cities yet they are rapidly increasing – by 7 per cent annually. Fig. 26. Air polluting agents emissions, ton/sq.km, 2009 Moscow
1 285
Warsaw
712
Prague
538
Budapest
474
Saint.-P. Kyiv
434 333
Fig. 27. CO2 emissions per year, kg/1 sq.km, 2009 Moscow
57 502
Warsaw
20 802
Prague
19 829
Saint.-P.
19 404
Budapest
18 801
Kyiv
12 446
Low level of emissions is based on the fact that during the last twenty years Kyiv had significantly reduced industrial emissions. Main sources of pollution are motor vehicles (82 per cent), followed by power plants (<14 per cent). Thus the goal of hazardous substances emissions reduction requires focusing not only on improvement of industrial conditions but also on facilitation of the car park upgrade engaging modern technologies of filtration and fuel consumption efficiency (as for the moment these are Euro 4 and Euro 5 standards). Besides decrease of motor vehicle transportation and transfer to public and alternative transport according to the respective transportation sector programs will help to significantly reduce emissions into the atmosphere.
ECOLOGY AND ENVIRONMENTAL SAFETY SECTOR 4 INCREASE OF THE CITY ENVIRONMENTAL SAFETY LEVEL
ECONOMY TRANSFER TO THE WORLD ECOLOGIC AND ECONOMICAL STANDARDS.
There still exist object in Kyiv which are extremely dangerous for human life and health and environment. These are Radikal plant, Energiya waste incineration plant, HPP-5, HPP-6, Darnytska HPP, Ekostandart CJSC, Zakhid State Enterprise, Radon plant, Dniprovska and Desnyanska water supply stations, residential solid waste (RSW) landfill No.5. Kyiv strategy provides for sanitizing of the most environmentally dangerous enterprises. The relative volume of garbage generation and concentration in Kyiv is among the lowest ones. At the same time only 5 per cent of RSW in Kyiv are recycled, which is much lower than in Warsaw and Prague, and the remaining 95 per cent are destroyed. The major part of garbage in Kyiv is utilized by burying at the landfills which are almost exhausted.
Economy transfer to the world ecologic and economical standards would ensure systematic ecologic policy of the city and prevent further environmental pollution by the enterprises. Accordingly Kyiv strategy is aimed at the creation of organizational, administrative and economical conditions for making the enterprises more environmentally friendly in such a way that would allow to increase the share of enterprises of all forms of ownership which work according to the ecologic and social management standards (ISO 14000, EMAS) and increase the share of products compliant with ISO standards. Besides, according to the purpose of Energy Efficiency Initiative Kyiv must ensure the fulfillment of the European 20/20/20 Program, including to the extent of greenhouse gases emissions reduction
Fig. 28. RSW generation per person per day, kg
Fig. 29. Garbage utilization by methods, per cent Destruction
Moscow
3,6
Kyiv
Warsaw
3,5
Moscow
5%
Saint.-P.
5%
Warsaw
62%
2,3
Prague 1,5
Kyiv Saint.-P.
1,2
Prague
Recycling
5%
81%
Kyiv development strategy provides for the following: • Regular creation of incentives to limit garbage dumping on landfills and transfer to such disposal methods as incineration and recycling. • Attraction of private capital for building of recycling facilities and provision of collection and removal services. • Focusing on facilitation and control over the participants of garbage collection, removal and recycling market. • Creation of infrastructure for separate collection and recycling of garbage engaging local and international private companies of the sector.
MAIN ACTIVITIES AND TASKS OF TARGET PROGRAMS ACTIVITIES OFFERING IMMEDIATE RESULTS • Creation of systems for atmosphere condition control. • Development of comprehensive Kyiv green belt program and municipal landscape gardening standards. • Create conditions for attraction of private investors in construction and equipping of garbage sorting stations.
LONG-TERM DEVELOPMENT • Re-equipment of water pipelines pumping stations; Bortnychi sewage treatment station; sewage disposal systems; waste water treatment facilities. • Sanitizing of the territories of enterprises suffering from pollution, removal outside of Kyiv and further utilization of dangerous substances. • Creation of appropriate conditions for attracting investments in the garbage recycling plants.
KEY DEVELOPMENT INDICATORS Indicator
Measurement unit
Current value3
Tons/sq.km/yr
Target value 2015
2025
333
275
2502
Per cent
5
20
40
Percentage of re-equipped systems of environmentally dangerous sewage disposal and waste water treatment facilities
Per cent
15
45
75
Percentage of regenerated polluted territories
Per cent
0
60
100
Share of the enterprises using ecologic and social management procedures (ISO 14000, EMAS)
Per cent
4
45
50
Sq.m/inhabitant
16
18
20
Liveability Index Dangerous substances emissions RSW recycling share Indicators not included in the liveability index
Availability of public green zones
1. All publicly available green belts, landscape and garden complexes, forests, limited use territories and countryside and gardening development. 2. Target value of emissions of the substances polluting the air is calculated for 2025 assuming that other strategic initiatives have been performed (for example, upgrade of the city power generation facilities, change of passenger flows in favour of public and alternative transport etc.) and preservation of the tendency to improve the characteristics of vehicle motors with regard to polluting elements emissions by 3 per cent per year. 3. Current values from liveability index as of 2009 (with the purpose of comparison with other cities); current values of additional indicators are as of 2010.
45
TOURISM SECTOR 5
VISION OF FUTURE SITUATION IN THE SECTOR ATTRACTIVE TOURIST CENTER MAKING SUBSTANTIAL CONTRIBUTION IN THE CITY’S ECONOMY Disadvantages
Advantages • Convenient geographic location between Europe and Russia and other CIS countries, as well as free visa regime
• Insufficient popularization of Kyiv as a tourist centre abroad
• City landscape and cultural and historical heritage sites attractive for tourists
• Lack of coherent marketing program and tourist proposal of the city
• Availability of high class sport infrastructure objects
• High prices for services while their quality is lower than in other eastern Europe cities
Now Kyiv is being visited by approximately 1 million of tourists (both from Ukraine and from abroad) which is much lower than the indexes for other Eastern European cities (see Fig. 30). Besides, Kyiv is lagging behind in terms of tourists number increase: for the period of 2000-2008 the average annual increase in Kyiv was 5.3 per cent while in Prague it reached 7.3 per cent, and in Warsaw – 8.2 per cent. The implementation of tourism development program will allow to raise average annual increase up to 6.3 per cent and reach the number of 2.6 million of tourists in 2025 (see Fig. 31).
CITY TOURIST APPEAL PROGRAM To achieve the above goals it is necessary to implement the comprehensive program of Kyiv tourist appeal increase and its promotion as a tourism center: • Uniform marketing image of the city which highlights its principal tourist proposals; • Active participation in 10 most influential international tourism fairs; • Inclusion of Kyiv into the tourism centers register of the most popular travel websites and leading international tourism operators; • Carrying out PR events: organization of press tours for foreign reporters, releases in specialized periodicals etc.; • Establishment of systematic cooperation with international programs and tourist cards (ISIC, transport operators alliances etc.) • Creation of official tourist portal supporting different foreign languages; The development of event tourism has significant tourists attraction potential: • Organization of major international sports events after the Euro-2012 Football Championship using available sports infrastructure; • Carrying out large-scale cultural events – festivals, exhibitions, contemporary art biennale etc.
46
Fig. 30. Number of incoming tourists (2009) million of people per year
INCREASE OF THE NUMBER OF TOURISTS
Creation of conditions and infrastructure for holding business and corporate conferences within the framework of the respective strategic initiative on attracting international organizations to Kyiv, increase of business tourism. Following the example of other cities, the reconstruction of the existing cultural and historical objects and creation of new heritage sites would help to attract tourists. Implementation of the riverside territory reconstruction according to the Dnieper Gem Initiative would also have positive effect on incoming tourism.
6
5,4
4,9 4,0
4
3,4
2
1,8 1,01
0 Budapest
Saint.-P.
Prague
Moscow
Warsaw
Kyiv
Fig. 31. Tourist number increase forecast2 million of people per year
MAIN FACTS AND TASKS OF STRATEGIC PLAN
3 +6,3%
2 1 0
1,0 1,1
2010
2,3 2,1 2,2 1,9 2,0 1,8 1,7 1,5 1,5 1,6 1,3 1,4
2012
2014
2016
2018
2020
2022
2,5 2,6
2024
INCREASE OF THE TOURISTS SOJOURN DURATION At the moment the average duration of tourists sojourn in Kyiv is 2.1 days which is a bit lower than in Budapest (2.3) or Saint-Petersburg (2.8). Target index for Kyiv shall be the return to mid-2000s level which was 3 days. To achieve the said target it is primarily necessary to develop and promote tours having increased duration and more intense program. The tourists who wish to organize their travel on their own should be provided with as much information as possible about the city and its sights – the number of recom-
TOURISM SECTOR 5 mended sightseeing places in Kyiv on the leading travel sites is ten times less than in Prague or Budapest.
TOURIST INFRASTRUCTURE IMPROVEMENT One of the primary tasks aimed to make tourists sojourn in Kyiv more convenient is the improvement of information support: • Inventory of tourism and recreation objects and selection of those which are most popular for tourists with the participation of tourist operators; • Creation of uniform guest of the capital tourist card allowing to use public transport and visit tourist institutions; • Creation of tourist information centers and outlets, installation of information terminals; • Besides, basic works aimed at spreading the city tourist infrastructure shall provide comfort for city guests while visiting principal tourist objects; • Creation of the main sightseeing and street names signs system in foreign languages; • Providing principal tourist locations with WC facilities. At the moment city hotels have approximately 10 thousand of rooms which is sufficient to satisfy current demand. However the growing number of tourists shall require setting into operation 500-700 rooms annually, thus until 2025 the number of rooms much reach 18 thousand taking into account the average annual load of the hotel room capacity increase from 33 per cent to average European level of 68 per cent. Presently the accommodation prices in Kyiv hotels is among the highest in Europe. Growing number of hotels and obligatory comfort category certification of hotels would allow to decrease prices and enhance tourist appeal of Kyiv.
MAIN ACTIVITIES AND TASKS OF TARGET PROGRAMS ACTIVITIES OFFERING IMMEDIATE RESULTS • Change of Kyiv tourism organization and management structure. • Development of the city tourist appeal program, city image and brand concept. • Creation of the official tourist portal. • Uniform tourist card of a city guest2. • Kyiv listing in Top-10 international travel websites and tourist agencies. • Liberalization of tourist routes approval procedures, especially bus routes.
LONG-TERM DEVELOPMENT • Creation of a coordination body to manage tourism branch in cooperation with private tourist operators and representatives of related business spheres. • Update of the city tourist infrastructure, its adaptation to English-speaking audience. • Creation of the system of tourist information centers, outlets, stalls and terminals connected to the city tourist portal. • Construction of 8 thousand of hotel rooms.
KEY DEVELOPMENT INDICATORS Indicator
Measurement unit
Current value4
Number of museums visits per inhabitant
Visitors/ inhabitants
Number of theatres visits per inhabitant
Target value 2015
2025
1.5
1.8
2.8
Visitors/ inhabitants
0.4
1
1.2
Galleries/ 100 000 persons
1.42
2.6
3.22
Million persons
1
1.5
2.6
Days
2.1
3
3
Number of hotel rooms
Thousand
10
13
18
Average annual load of hotel room capacity
Per cent
33
56
68
Tourism income share in GRP
Per cent
0.7
2.5
Min. 2.5
Liveability Index
Number of galleries5 Indicators not included in the liveability index Incoming tourists number Average duration of sojourn
1. According to the number of visitors serviced in the city hotels. 2. Conservative calculated forecast of tourists in the city due to Euro-2012 shall be 250 000 persons. 3. A card that against a fixed payment enables a tourist to visit the main city sightseeing places free of charge or at a discount price. 4. Current values from liveability index as of 2009 (with the purpose of comparison with other cities); current values of additional indicators are as of 2010. 5. Important public and private galleries as agreed by branch experts.
47
PUBLIC HEALTH CARE SECTOR 6
VISION OF FUTURE SITUATION IN THE SECTOR AFFORDABLE, HIGH QUALITY AND EFFICIENT HEALTH CARE SYSTEM AIMED AT PRESERVATION AND RESTORATION OF HEALTH AND ACTIVE LONGEVITY OF KYIVANS
Disadvantages
Advantages
• Underdeveloped sphere of preventive healthcare and HLS promotion, lack of general recreational establishments
• Numerous healthcare facilities and medical staff • Quite high qualification of medical staff (by certain specializations) • Availability of high quality healthcare research centers at the national Academy of Medical Sciences, several big multi-discipline state and private high level medical centers
• Underdeveloped primary healthcare system, lack of primary healthcare staff • Inefficient use of resources, funding is not linked to the establishments needs and operational quality • Low quality of infrastructure, outdated buildings and equipment • Great share of private expenses, absence of joint funding mechanisms • Inefficient mechanisms for medical staff and medical establishments performance control
MAIN FACTS AND TASKS OF STRATEGIC PLAN DEVELOPMENT OF DISEASES PREVENTION AND HEALTHY LIFESTYLE (HLS) PROMOTION In the mortality structure of Kyivans cardiovascular diseases prevail – those which, according to international practices, may be significantly reduced in medium and long term prospective if preventive healthcare and HLS programs are implemented. Fig. 32. Mortality structure by particular types of diseases , 2009 Kyiv Prague Warsaw
72% 55% 52% Cardiovascular
33% Neoplasms
Digestive organs
6% 2% 5% 7% 7%
9%
Respiratory organs
The cardiac ischemia is one of the most widespread diseases in Kyiv, however, tobacco and alcohol expenses have the same share in the structure of Kyiv households expenses as private healthcare expenses being in average UAH 1500 per household per year. HLS spreading is hampered by the lack of proper infrastructure – treadmills and bicycle tracks, sports grounds, affordable swimming pools and gyms. Preventive healthcare and HLS promotion should be focused on the following aspects:
48
IMPROVEMENT OF HEALTH CARE SYSTEM RESOURCES USAGE EFFICIENCY Availability of medical staff and in-patient hospital beds in Kyiv is one of the highest among the compared cities
20% 33%
• Increase of opportunities and infrastructure for sports and active leisure; • HLS promotion (support of professional and amateur events, creation of all-city information causes to promote HLS, abstaining from bad habits, promotion of healthy diet); • HLS culture fostering from early age, inclusion of informative lessons in pre-school educational institutions; • Increasing of opportunities for cardiovascular, oncologic and contagious diseases.
Fig. 33. Availability of in-patient hospital beds
Fig. 34. Availability of medical staff
No. of beds/1000 persons
No. of medical staff2/1000 persons
1
Kyiv
11
Kyiv
Budapest
11
Budapest
Moscow Saint-P. 8
Prague Warsaw
6
20 22
10
Moscow
19
10
Saint-P.
19
Prague Warsaw
20 13
The existing system of self-accounting funding of healthcare establishments, low capacities usage level (in many spheres the number of one hospital bed usage days is 250-300 days per year), lengthy sojourn in an in-patient hospital (in average 12 days in Kyiv compared to 8.6 in the EU) and frequent instances
PUBLIC HEALTH CARE SECTOR 6 of medically ungrounded hospitalization exert great financial strain on the health care system which can be optimized. According to the estimates 8-10 per cent of the branch funding in Kyiv is allocated for primary health care while in leading health care systems this index is about 20-40 per cent. The system efficiency increase should be focused on the following aspects: • Priority development of primary health care, ensuring free choice of primary doctor; • Restructurization of in-patient hospitals bed fund, separation of non-core activities; • Limitation of excessive use of secondary and urgent health care services; • Implementation of contractual mechanisms of funding and health care establishments status modification; • Motivation of health care establishments managers and staff to increase performance and efficiency.
INCREASING AFFORDABILITY OF HEALTH CARE Kyiv is provided with PTFs to lesser extent than the compared cities. However the available facilities are used only by 70-85 per cent in central districts and 120-130 per cent in peripheral districts. Absence of joint funding mechanisms and substantial share of households private expenses (up to 40 per cent of total expenses according to the estimates) render health care, especially medicines, unaffordable for certain categories of citizens who need it. • Primary actions to improve affordability: • Development of family outpatient clinics and modern prenatal centers network; • Development of funding channels based on insurance; • Improvement of health care services quality by: • Implementation of medical standards, clinical protocols, formulary system and introduction of health care quality indicators; • Informatization of health care system;
• Remuneration depending on quality and volumes of providing medical services; • Integration of private medicine in general municipal medical sphere.
MAIN ACTIVITIES AND TASKS OF TARGET PROGRAMS ACTIVITIES OFFERING IMMEDIATE RESULTS • Creation and equipping of family outpatient clinics network; • Restructurization of in-patient hospitals bed fund, separation of non-core activities (provision of high quality nutrition, laundry and cleaning services etc.); • Implementation of actions to increase affordability of medicines; • Implementation of quality standards and indicators for medical assistance processes and results; • Implementation of regulated market of socially funded hightech medical services through establishing bids for government orders for services; • Modification of status and increase of autonomy of health care establishments, introduction of remuneration incentives.
LONG-TERM DEVELOPMENT • HLS promotion program, HLS infrastructure and health centers development; • Transfer to contractual funding of facilities with the payment depending on the number of persons and medical assistance quality in primary health care facilities and “per service” on secondary level; • Specialization of hospitals and laboratories to improve quality and cut expenses; • Development of joint funding mechanisms (health insurance funds, mandatory insurance).
KEY DEVELOPMENT INDICATORS Indicator
Measurement unit
Current value3
years
Target value 2015
2025
72.7
74.4
79.8
persons
966.6
898.9
777.3
Infant mortality up to the age of 1
Incidents/1 000 of newborn babies
7.5
6
4
Labour force mortality
Incidents/ 1 000 inhabitants
3.7
3.2
2.6
Share of expenses for primary health care within total health care expenses
Per cent
8-10
18-20
20-30
Implementation of contractual relations, changing approach to the funding
Liveability Index Expected lifespan at birth Primary morbidity Indicators not included in the liveability index
Yes/no
no
yes
yes
Average number of in-patient hospital bed work per year
Days
297
310
330
Average duration of in-patient treatment
Days
11
9
6
1. Including all establishments within the territory of Kyiv. 2. Doctors and nursing staff. 3. Current values for 2009.
49
EDUCATION SECTOR 7
VISION OF FUTURE SITUATION IN THE SECTOR HIGH-QUALITY, AFFORDABLE EDUCATION, CORRESPONDING TO MARKET DEMAND
Disadvantages
Advantages • Developed system of education and educational establishments infrastructure (except for pre-school facilities)
• Lack of educational infrastructure for pre-school facilities • Lack of material and technical capacities
• Wide coverage of schoolchildren with secondary education
• Absence of exhaustive evaluations of education quality and participation in the international monitoring research
• Availability of free of charge education in educational establishments
• Unsatisfactory social status of teachers • Use of capacities of certain educational establishments not for their intended purpose
MAIN FACTS AND TASKS OF STRATEGIC PLAN
measure to the extent of educational infrastructure availability enhancement. But in addition to municipal PEI this should be achieved through stimulation of private facilities, simplification of city-controlled standards (sanitary and epidemiological, fire safety etc.).
AFFORDABILITY OF EDUCATION Fig.35. Coverage with pre-school education1 Prague
86% 84%
Budapest
80%
Warsaw Saint-P. Kyiv Moscow
68% 63% 55%
Fig. 36. Coverage with school education2
Fig. 38. I-III grade schools load ratio, index4
Kyiv
99%
Kyiv
Prague
99%
Saint-P.
Warsaw
99%
Warsaw
101%
Prague
Saint-P.
99%
Moscow
101%
Kyiv
97%
Budapest
Budapest Moscow
112%
Moscow
110%
Saint-P.
91%
INFRASTRUCTURE AVAILABILITY Educational infrastructure availability is unequal throughout Kyiv. While there are no apparent problems with schools availability in the city (schools load level is the same as in compared CEE cities) kindergartens in Kyiv are heavily overloaded, even more than in Moscow. Thus the ratio of the number of children attending preschool facilities to the number of places in Kyiv pre-school facilities is 112%, and ratio of the number of places in PEI to the number of children aged 2-6 is only 72 per cent. Positive birth rate dynamics makes the issue of PEI availability critical in the short run. Creation of additional PEI is a principal
Warsaw Budapest
92%
Kyiv is the educational centre of Ukraine, the city has approximately 116 higher education institutions. By concentration of pupils of all levels per 1 000 inhabitants (290 pupils and students per 1000 inhabitants) Kyiv exceeds the compared CEE cities. Secondary education coverage in Kyiv is one of the highest among the compared cities (99 per cent), pre-school education is behind with 63 per cent coverage. To meet the demands of Kyiv educational institutions (EI) it is necessary to focus first of all on attracting sufficient number of pedagogical and academic staff.
50
Fig. 37. Kindergartens places use ratio, per cent3
16 930 7 465 5 905 4 848 4 384 3 377
QUALITY OF EDUCATION The quality of educational infrastructure in Kyiv is basically satisfactory, but there exist problematic areas. At the same time education quality in the city deteriorates as the key quality factor, the staff, is poorly motivated. 96,5% Schools are computerized (2010) 1:19 1 computer per 19 schoolchildren (2010) All schools have Internet connection, but using dial-up technology (2010) 168 schools have high-speed Internet connection ~30% (2010) 100%
~20% 101 schools have electronic libraries (2010) Approximately1/2 of schoolbooks are funded by parents (bought their own or paid for usage) 100 per cent are provided with computerized librarian 100% workplace ~50%
EDUCATION SECTOR 7 The average teacher’s salary in Kyiv is one of the lowest in the city and is 74 per cent of the average salary for all branches in the city. Low remuneration decreases the prestige of pedagogical profession and low education quality. As the result there is shortage of teaching staff, high turnover (12-18 per cent per years) and aging (23 per cent of teachers are persons beyond retirement age). Thus to increase the quality of education it is necessary to increase teacher’s salary, repair the available infrastructure objects by comprehensive thermal upgrade within the Energy Efficiency Initiative.
RELEVANCE OF EDUCATIONAL SERVICES Thus there are numerous higher education establishments in Kyiv, some of them being the best institutes and universities, they are not municipally governed and are managed on the state level. However among municipally governed EI there are many professional EI which are directly related to the labor market. At the moment the number of professional colleges is decreasing, in particular due to the fact that training specialties do not meet the requirements of potential students. Besides there is a wide gap between the market demands on non-production specialties and specialization of the graduates as there is shortage of specialists trained in servicing sphere. To solve this problem the city will initiate reforming of the existing centers and, if necessary, creation of new professional and technical education centers to meet the demands of non-production specialties, in particular, tourism, hotel and restaurant business (for example, basic accounting courses, finance, small enterprises management etc.). Other problems with education relevance are connected with education programs focused on quantity but not quality of training materials. Besides, the quality of manuals is low. The city will increase education relevance to social demands by implementing Kyiv Textbook program concentration on creation of additional and alternative manuals.
MAIN ACTIVITIES AND TASKS OF TARGET PROGRAMS ACTIVITIES OFFERING IMMEDIATE RESULTS • Creating 4 centers for professional and technical education for services and specialties in entrepreneurship spheres.
LONG-TERM DEVELOPMENT • Provide EI with a sufficient number of teaching staff; • Initiate programs for private PEI support and simplification of the regulatory framework; • Create 28,000 new places in PEI, through governmental and private funding; • Increase motivation and mitigate turnover of teaching staff by raising the remuneration level; • In the long term, taking into account demographic tendencies, open 30 new schools to meet future demand.
KEY DEVELOPMENT INDICATORS Indicator
Measurement unit
Current value5
Target value 2015
2025
10
10
8
64
68
78
Liveability Index Ratio of teachers/pupils in schools Education quality (Newsweek)
Rating
Indicators not included in the liveability index Ratio of PEI children/teachers
9
9
7
Ratio of professional and technical EI/teachers
21
20
18
Number of children in PEI/places in PEI, per cent
Per cent
112
100
92
Teacher's salary/average salary
Per cent
74
91
100
Teaching staff turnover ratio
Per cent
Number of EI requiring capital repairs Number of employed professional and technical EI graduates
Per cent
12
6
3
377
200
40
87
93
95
1. Number of places in pre-school educational institutions (PEI) for children aged 2-6 2. Number of schools and professional colleges pupils for children aged 6-18 3. Number of children/number of places. 4. School load index – number of pupils/number of teachers/number of schools. 5. Current values from liveability index as of 2009 (with the purpose of comparison with other cities); current values of additional indicators are as of 2010.
51
SOCIAL PROTECTION AND SAFETY SECTOR 8
VISION OF FUTURE SITUATION IN THE SECTOR INCREASED SAFETY AND SOCIAL PROTECTION OF POPULATION
Disadvantages
Advantages • Available state pension fund scheme • Available infrastructure for disabled adult individuals, disabled children, center for registration of people with NFA1 • Relatively low crime rate, including a low rate of crimes against person’s life and health
• Absence of a comprehensive understanding of the situation and needs of all socially vulnerable social groups in the city • Deterioration of the infrastructure for caring about disabled adult individuals, disabled children • Lack of facilities of the infrastructure for caring about disabled adult individuals in the psycho-neurological sphere, about people with NFA • Inefficient administration of benefits, absence of targeting • Obvious problem of youth crime rate among underage persons
MAIN FACTS AND TASKS OF STRATEGIC PLAN DEVELOPMENT OF A COMPREHENSIVE PROGRAM ON SUPPORT FOR SOCIALLY VULNERABLE GROUPS OF POPULATION Today, the city agencies do not have a comprehensive vision of the situation and needs of all socially vulnerable groups of population. Hence, the first step is to be a detailed revision of the social support sphere, study of the needs of all social groups that need social support within the framework of the city’s powers and authorities. According to the research results, a comprehensive action plan is to be developed in 2012 on provision of both direct assistance by the city and on development of cooperation with international and national organizations, and promotion of social responsibility among private companies in the city. Furthermore, activities in the individual spheres that have already been identified by the city agencies will not wait till the end of the process of the comprehensive program development and will be implemented without any delay.
basic consumer goods in partnership with private business and international organizations • organization of regular district fairs • creation of a network of social shops in partnership with private business Fig. 39. Breakdown of households (consisting of 3 persons) by total cash income3, % > 900 900–1440 1440–1980
0% Official minimum 2% subsistence level
1%
20%2
4% 10%
1980–2520
Actual minimum subsistence level
9%
2520–3060 3060–3600
12% 12%
3600–4110 10%
4110–4680 8%
4680–5220
7%
5220–5760
28%
over 57600
ASSISTANCE FOR DISADVANTAGES SOCIAL GROUPS Kyiv is a city with significant stratification of population in terms of income when incomes of one fifth of all Kyiv citizens are below the real minimum subsistence level. The main category of impecunious people is pensioners who account for 93% of Kyiv citizens with incomes lower than the poverty level. Although support for this group of citizens is the state’s responsibility, the city is to provide all possible assistance to this group: • simplification and acceleration of the process of granting approved benefits (for instance, utility services subsidies) • establishment of a social service for delivery of food and
52
AVAILABILITY OF SOCIAL INFRASTRUCTURE Table 5. Psycho-neurological foster homes for adult people 4
Foster homes
1605
Places in foster homes
98%
Use of facilities of foster homes in the psycho-neurological sphere
263
In queue for allocation
SOCIAL PROTECTION AND SAFETY SECTOR 8 Despite the availability of the basic social infrastructure, Kyiv experiences an acute shortage of institutions for caring about persons with psycho-neurological diseases. A similar situation is observed with regard to the infrastructure for caring about caring about persons with NFA. Whereas there are three such institutions designed for 485 persons, the estimated number of persons with NFA is at least thrice as many. The strategy of Kyiv provides for creation of new facilities of the social infrastructure to satisfy the city’s needs as well as activities aimed at social integration of persons with NFA.
DECREASED CRIME RATE Fig. 40. Number of registered crimes per 1,000 persons4 Prague 42,5
34%
20,2
Moscow
16,9
Saint-P.
5% 14–17
12,8
MAIN ACTIVITIES AND TASKS OF TARGET PROGRAMS ACTIVITIES OFFERING IMMEDIATE RESULTS
68,7
Warsaw
Kyiv
Fig. 41. Age breakdown of convicted individuals, %4
misdemeanor prevention, Safe City. Furthermore, an automated video surveillance system on streets and automobile roads that will be created with support of local and national law enforcement bodies will enable us to significantly increase the level of misdemeanor control and improve reaction of local agencies to emergency situations. The speed of response and resolution of emergency situations (that require involvement of several agencies) will also be considerably improved due to centralization of operations control agencies of the city and introduction of the latest technologies within the framework of the strategic initiative, E-government.
18–24
27%
25–29
34%
30+
Kyiv is one of the safest cities among the compared Central and Eastern European capitals with the lowest registered crime rate in the comparison group. At the same time, one should mention that the low comparison rate can to a certain extent result from the deficiencies of the mechanisms of official statistical reporting. Moreover, as experience of other European countries shows, the growth of tourism that is one of important strategic areas of the city’s activities can result in a disproportional increase of the crime rate in the absence of mechanisms of crime control and prevention. A larger part of crimes are not against a person – more than 50% of all crimes are aimed at property stealing. It creates the youth crime rate problem: the majority of crimes are performed by the youth (61% of convicted individuals are persons aged from 18 to 30). This age category accounts for more than 80% of all robberies and armed assaults, and 50% of grave crimes. To decrease the crime rate in the city, the Strategy of Kyiv provides for development of a comprehensive program on
• development of a comprehensive action plan on assistance for socially vulnerable groups of Kyiv citizens • establishment of a social service for delivery of food and basic consumer goods in partnership with private business and international organizations • construction of a psycho-neurological foster home for 300 patients in the sanatorium named after the First of May in Pushcha-Vodytsia
LONG-TERM DEVELOPMENT • development of an employment program for persons with NFA • creation of a network of social shops in partnership with private business • development of an accessible and financed by the city procedure for documents recovery for persons with NFA • development of a comprehensive program on misdemeanor prevention in Kyiv, Safe City • with support from the state and local law enforcement bodies, development and introduction of a system of video surveillance on streets
KEY DEVELOPMENT INDICATORS Indicator
Measurement unit
Current value6
Crimes/ 100 thousand persons Rating
Target value 2015
2025
12.8
11.0
8.5
70
72.8
78.9
0.41
0.38
0.33
places
0
200
500
%
230
150
100
Liveability Index Number of crimes EIU comprehensive safety rate Indicators not included in the liveability index International ratio of inequality of household incomes5 Number of workplaces for people with NFA Total number of persons for people with NFA in institutions for accommodation of people with NFA
1. No fixed abode 2. The actual minimum subsistence level for a family of three persons as calculated by IAC ORPS totals 2829 UAH as of 31.10.2008. 3. In 2008. 4. Data for 2009. 5. Gini International Incomes Distribution Index with values from 0 – equal to 1 – extremely contrasting. 6. The current values of the Liveability Index are given for 2009 (for comparison with other cities); the current values of indicators that were not included in the Index are given for 2010.
53
LABOR MARKET AND EMPLOYMENT SECTOR 9
VISION OF FUTURE SITUATION IN THE SECTOR ATTRACTIVE LABOR MARKET WITH EQUAL OPPORTUNITIES FOR MEN AND WOMEN
Disadvantages
Advantages • Unemployment rate lower than average for Ukraine • Average salary is 50–60% higher than average for Ukraine (in 2010 —53% higher)
• Kyiv compares poorly in terms of employment and salary with the reference Central and Eastern European cities
• Educated and qualified workforce
• Among the sectors that play the key role for city economy, Kyiv compares poorly in terms of labor productivity with the reference Central and Eastern European cities
• No discrimination between men and women in employment statistics
• Insufficiently young labor force (the age group of 15–35 accounts for 38% of all employees)
MAIN FACTS AND TASKS OF STRATEGIC PLAN INCREASED EMPLOYMENT RATE – RESULT THAT REQUIRES SUPPORT Fig. 42. Unemployment rate1
Fig. 43. Unemployment rate1, 2009
15% 10%
Ukraine
5% 0% 00
Kyiv 02
04
06
08
10
Kyiv
6,5%
Budapest
6,2%
Prague
3,1%
Warsaw
3,0%
Saint-P.
1,1%
Moscow
1,0%
Kyiv has a much lower unemployment rate compared to Ukraine in general. Statistical data confirm that it is a longterm trend explained by the special status of Kyiv as the capital city and center of Ukraine. At the same time, the unemployment rate in Kyiv is higher than average in the group of reference cities (Fig. 43). Hence, one of the strategic city development goals till 2025 will be the growth of employment rate of its citizens. Fig. 44. Employment structure in the main sectors, 2009
73%
Service sector
18%
Industry and construction
9%
Public sector
Fig. 45. Employment structure by employers, 2009 24%
Large enterprises
31%
Medium-size business
25%
Small business
11% 9%
Micro-entrepreneurs Public administration
The employment structure in Kyiv corresponds to the Gross Regional Product structure in terms of the main number of Kyiv citizens employed in the service sector. As to the main
54
employers, although average employers provide the largest number of workplaces in general, however it is small business together with micro-enterprises2 that offer more than one third of workplaces to employees. Implementation of individual strategic goals and sectors envisage the increase of the number of workplaces, for instance: • creation of workplaces in competing clusters, formation of small enterprises with the support from business incubators within the framework of the Made in Kyiv initiative; • increase of the number of service workplaces in the spheres of culture and tourism; • a significant increase of demand for professional workforce with creation of respective environment and involvement of international companies in Kyiv; • creation of better opportunities for entrepreneurial activities; • creation of innovative workplaces both for specialized and for regular labor workforce in the projects on reconstruction, modernization and city infrastructure development. The employment structure will continue to be concentrated in the service sphere. Industry workplaces will be re-oriented to the areas with high added value. As to employers, activities aimed at improving the entrepreneurial environment (especially innovative entrepreneurship) are to increase the share of small and micro-business. A relatively stable number of workplaces in the public administration sphere will facilitate a relative decrease of the share to 4–5% as a result of a general increase of the total number of workplaces I the city and optimization of the institutional power with introduction of the computerized systems of e-government . To receive the maximum effect from these initiatives, the city will have to ensure respective support and coordination of the labor market.
CREATION OF CONDITIONS FOR SALARIES GROWTH An average salary in Kyiv is constantly 50–60% higher than in Ukraine whereas compared to other Central and Eastern European capitals Kyiv is significantly weaker. Kyiv Development Strategy for the period ending 2025 pays special attention to the increased attractiveness of the labor market and activities aimed at stimulating salaries growth.
LABOR MARKET AND EMPLOYMENT SECTOR 9 Fig. 46. Nominal average monthly salary, Euro 400 Kyiv
990
Budapest
Ukraine
100
1 066
Warsaw
200
0 04
1 381
Prague
300
769
Moscow
551
Saint-P. 06
08
MAIN ACTIVITIES AND TASKS OF TARGET PROGRAMS
Fig. 47. Average monthly salary in 2009, Euro
10
291
Kyiv
Since in the market economy conditions, the salaries level is determined on the basis on demand for labor force and its supply, the city sees its key activities in this sphere as development of an economic base for creation of additional demand for workforce as well as improvement of the workforce qualification. Thus, within the education sphere, we are going to focus among other things on creation of professional and technical education centers, including the needs for those spheres where the highest demand in the future is envisaged. Besides, a significant role in the increase of an official average salary is to be played by a reduction of a shadow sector and legalization of salaries.
ACTIVITIES OFFERING IMMEDIATE RESULTS • Development and introduction of a system of professional training and continuous professional development courses • increased employment rate for the unemployed with the help of internship programs • introduction of a system of special trainings aimed at increasing the employment rate among women • accelerate procedure for employment of the unemployed with the help of vacancy fairs involving recruitment (staffing) agencies
LONG-TERM DEVELOPMENT • Development of the vacancies database of the employment center by 20% before 2025
CREATION OF EQUAL OPPORTUNITIES FOR EMPLOYMENT Fig. 48. Unemployment rate among men and women 10% Women 5%
0% 00
Men
01
02
03
04
05
06
07
In the structure of economically active Kyiv population, a ratio of men and women is close to one and is economically stable. Furthermore, in terms of the unemployment rate in Kyiv no discrimination between men and women is observed as well. Thus, with equal participation of men and women in labor force, a correlation between men and women among the unemployed is also approximately equal. In its long-term vision, Kyiv aspires to preserve the gander balance in the employment structure as well as to provide employment opportunities for certain social groups such unemployed women raising children.
KEY DEVELOPMENT INDICATORS Indicator
Measurement unit
Current value3
%
Target value 2015
2025
5.8
4.6
3
Euro/person
315
550
>1100
-
1.3
1.0
1.0
Indicators not included in the liveability index Unemployment rate for age groups 15–70 Average salary level Correlation between the unemployment rate of economically active women and the unemployment rate of economically active men
1. The unemployment rate according to the methodology of the International Labor Organization (ILO) based on the information provided by the State Statistics Service of Ukraine 2. Micro-enterprises are companies of private entrepreneurs with only one employee 3. Current data are given for 2010
55
KEY CITY DEVELOPMENT INDICATORS
CITY DEVELOPMENT INDICATORS
3,11
84
2025
84
2010
15,2
2025
95,7
Number of entering tourists3
2009
1
2025
2,6
mln persons
2025
2009
billion Euro
2,72
thousand hectares
2009
Investments (FDI1) cumulative
City area
mln persons
Population
MAIN STRATEGIC GOALS Average annual rate of real GRP growth
Livability index
2004–2008
2010–2025
2009
2025
5,7%
6,5%
100
181
SELECTED COMFORT OF LIVING INDICATORS
2009
333
2025
250
t/km2 per year
Emissions of harmful substances
2025
5
Students/teachers ratio
2009
10
2025
8
1. Foreign direct investments 2. Length of the public transport lines (bus + trolley bus + subway + tram) 3. Including internal and international 4. At birth
2010
16
2025
20
m2/citizen
Green zones per a citizen
2009
72,7
2025
79,8
years
16,1
20
Number of crimes
2009
12,8
2025
8,5
cases/1,000 persons
2025
2009
Life expectancy4
Museum visits by Kyiv citizens
2009
1,5
2025
2,8
times/year per 1 citizen
2,8
9,6
% of consumption
2025
2009
Water losses in city water supply pipes
students/teachers
2,1
Public transport lines2
km/1,000 persons
2009
km/km2
Street network density
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STRATEGY IMPLEMENTATION PROGRAM
PRIORITIES, PARTICIPATION OF ALL PARTIES AND UNIQUENESS AS STRATEGY BASIS APPROACH TO STRATEGY IMPLEMENTATION
THE STRATEGY OS TO ANSWER THE QUESTION “HOW” AFTER THE “WHERE” DIRECTION HAS BEEN DETERMINED, I.E. VISION Principles of Strategy Implementation
1
Priority identification instead of wishing to cover all aspects of the city’s vital activities
2
Creation of conditions for active participation of various entities in city development instead of staking on internal resources
3
Careful control of the entire implementation process and not only results
IDENTIFICATION OF PRIORITIES City development is a large-scale task. Development of such city as Kyiv is even larger-scale because this city is compared with individual European states. To receive visible results of the performed activities focus is extremely important. That is why, for instance, for each activity area presented in the Strategy only main projects are described. Furthermore, the Strategy itself mentions nine largest initiatives that have a significant impact on achievement of both qualitative (vision) and quantitative (key performance indicators) strategy goals: 1. Modernization of transport and engineering infrastructure 2. Support of efficient generation and careful use of energy resources 3. Provision of incentives for competitive economic clusters 4. Introduction of modern city administration technologies
“CONDITIONS CREATING” POLICY Kyiv is lagging significantly behind Eastern European capitals in terms of the majority of development parameters. In terms of economy, for instance, we are 10–15 years behind. However, our problems are not unique. Prague, Warsaw and Budapest 15 years ago experienced similar problems and have considerably succeeded in solving them, which was obvious, for instance, in a decrease of their gap with the capitals of developed countries by 30–50%. Such a development rate is possible only with the participation of the private sector, foreign investors and international financial institutions. The main elements of the conditions creating policy will be: • improvement of the investments planning process that will reflect all sources of financing • improvement of the business climate in the part where the city can influence it, e.g. the permit system for business • city’s support for investors and entrepreneurs in the spheres that can have the maximum impact on development of its economy, employment, budget and competitive power • creation of basic conditions for activities through development of the infrastructure, reform of the administration system, and international promotion of the city
CONTROL OF THE PROCESS, AND NOT ONLY RESULTS The ambitious and comprehensive goals of the Strategy require careful control not only of the final outcome but of the entire process and interim results. Furthermore, individual strategic projects can fall within the terms of reference of district administrations, structural units of the city administration and even individual government bodies. Thus, efficient oversight mechanisms are to be introduced at every level, including public control: • by city administration of activities of district administrations; • by central government bodies of fulfillment of delegated functions by local self-government bodies; • by citizens of activities of local self-government bodies.
5. Creation of unique cultural atmosphere 6. Preservation and development of the Dnieper nearshore zones 7. Promotion of healthy lifestyles 8. Creation of new business activities centers 9. Involvement of central offices of international companies and organizations For each strategic initiative and sector, a detailed action plan, projects and tasks were developed.
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STRATEGIC INITIATIVES – NOT SLOGANS BUT REAL PRIORITIES OF THE CITY FURTHER WORK WITH IDENTIFIED INITIATIVES
BEHIND EACH INITIATIVE THERE IS A DETAILED PLAN OF ACTIONS AND PROJECTS Each strategic initiative and a strategic sector include a set of actions performance of which is to facilitate improvement of the living standards in the capital. The Strategy document format does not give us an opportunity to go into details of all action plans, and hence it focuses on the most important and significant events. However, within the framework of the Strategy development on each initiative and strategic sectors, detailed action plans were drafted: Fig. 49. Example of a planning document for the strategic sector
All plans will have to include information about: • implementers responsible for implementation of certain events (at the level of a profile department of the city administration) • implementation timelines • resources (financial and non-financial) necessary to implement the activities Detailed elaboration of strategic initiatives and sectors will be carried out to the level of individual short-term actions that will enable the Kyiv City State Administration to monitor the tasks progress not on a yearly or quarterly but on weekly basis. Fig. 51. Illustration of the instrument for monitoring activities related to the strategy implementation
Where it is necessary to involve investors, a list of investment projects will be compiled for each initiative. Every project will contain the necessary information about: • Required project activities
60
• Tentative implementation timelines • Financial viability • Mechanism of interaction with the state (e.g. completely private financing, PPP or with partial co-financing by ordinary citizens of Kyiv) New project proposals will be regularly collected from all structural units of the city administration as well as from the city community with the help of a standard form of information collection. Such proposals have to contain both the information about the proposed idea and the primary evaluation of viability as well as the suggested mechanisms of financing: Fig. 50. Template for collection of information proposals for investment projects (brief and details forms)
Then, these proposals will be analyzed by the profile department of the city administration, selected and prioritized with the help of the city investment agency. The implementation plans and the list of investment projects will have a greater detalisation when they apply to the near future priorities (first phase of Strategy implementation) and will be more generalised for the further priorities. Going forward both plans and list of investment projects will be upgraded continuously with accounting for progress achieved and formation of new plans.
CITY DEVELOPMENT WILL OCCUR DUE TO INVESTORS, ENTREPRENEURS, COMMUNITY SOURCES OF FINANCING
CITY BUDGET IS NOT THE ONLY SOURCE OF FINANCING The current financial situation of Kyiv does not let us talk about its development-orientation. Incomes of Kyiv budget decreased compared to 2008, and city debts increased significantly. The structure of budget revenues is not diversified (60% of all incomes come from the individual income tax). At the same time, large payments to the state budget (~40% of all expenses) restrict the opportunities for development. Instead, the city administration has to involve all possible sources of financing and first of all – investments of the private economic sector: Current expenses
Capital costs related to city development / strategy implementation
Operating expenses
Social projects
Strategy priorities
Development of new areas
National projects
Local projects
City budget Aimed at ensuring work of the key sectors
City budget For financing key social projects
PPPs for financing the primary priority strategic projects
Private sector investments in new competitive areas
State Budget for supporting financing of the key city development projects
Co-financing of expenses with citizens on repairs and modernization of the housing and utilities sector
Share of the private sector in expenses
Different sources of financing will serve various purposes so that together they can completely cover all aspects of city development. Most activities related to the Strategy will be development into projects classified as follows:
BASIC AND SOCIALLY-ORIENTED PROJECTS Some socially-oriented projects that will ensure decent life for all groups of the city population (e.g. creation of a psychoneurological foster home) as well as individual projects that will independently create conditions necessary for the further attraction of investors and stimulation of business development (e.g. projects on reconstruction of the basic infrastructure facilities), unfortunately, are not commercially attractive for investors but they have to be implemented one way or another. These projects are in the focus of budget financing since the city is to guarantee sufficient living standards for all citizens of Kyiv.
PROJECTS HAVING HIGH STRATEGIC PRIORITY AND SOCIAL SIGNIFICANCE Such projects are commercially profitable and have a high strategic priority and social significance (e.g construction of the fourth subway line, an express streetcar line). Due to their high priority and social components, the city participation in such projects can be necessary both from the point of view of the permit support and as a guarantor of project risks that will facilitate quicker completion of the tasks. At the initial stages, for finalization of such projects and increase of the investors’ trust, the majority of projects will be presented in simple contractual forms such as DBOM (development, building, operation, maintenance). However, later more complex projects are planned that will involve the city and private investors on a partnership basis.
COMMERCIALLY ATTRACTIVE PROJECTS HAVING STRATEGIC PRIORITY Projects that will have the highest strategic priority (e.g. development of enterprises in the competitive spheres) will not require such active city participation but rather participation in
their development and promotion among the investors and local business as well as creation of respective permit environment and conditions for their implementation. The major driving force for such projects has to be local entrepreneurs and strategic investors.
PROJECTS THAT PARTIALLY OR COMPLETELY FALLING WITHIN POWERS AND AUTHORITIES OF GOVERNMENT BODIES Some projects that have the governmental effect and are related to the state authorities subordinate to the state, do not belong partially or completely to the powers and authorities of the city (e.g. projects on cooperation with the Ministry of Interior). Due to their significant strategic role, the city will actively promote them at the state level, develop cooperation with respective executive bodies and ensure necessary support. However, in the case of such large-scale projects, partial or complete financing will come from the State Budget.
PROJECT HAVING SIGNIFICANT IMPACT ON CONCENTRATED GROUP OF CITIZENS Projects that will have a direct and significant impact on the quality of life of a small concentrate group of citizens (e.g. thermo-modernization of houses, reconstruction and construction of new house territory objects such as sports grounds and parking places, etc.) will require partial involvement of Kyiv citizens. The interested citizens will be the best inspectors of the quality of performed works, and citizens’ participation will increase confidence of our investors in the long-term interest of local citizens and the absence of conflicts with them. An important change will be introduction of the process of investments planning, according to which the city investment program will also include projects with private financing (not only budget-financed). Besides, the oversight system will be changed as well, according to which the results of work of the city authorities will be evaluated also on the basis of the results of implementation of the general program, including projects involving extra-budgetary financing.
61
CITY HAS TO PROVIDE ALL POSSIBLE SUPPORT FOR STRATEGY FINANCING AND IMPLEMENTATION “CONDITIONS CREATING” POLICY Involvement of investors and implementation of economic development plans financed from the local budget will be possible only provided that the city creates adequate favorable conditions for functioning and attractiveness of the proposed projects.
“CONDITIONS CREATING” POLICY WILL BE FOCUSED ON THE FOLLOWING AREAS • development of cooperation with investors • improvement of conditions for functioning and development of local business • enhancement of stability of city economy
DEVELOPMENT OF COOPERATION WITH INVESTORS Involvement and cooperation with investors will be the priority task for the city. However, to establish efficient cooperation one will have first of all to return the investors’ trust in the government, to provide sufficient arguments confirming the serious intention to cooperate. In order to achieve these goals, the city will create an investment agency and simplify investment procedures and norms.
INVESTMENT AGENCY In the structure of the Kyiv City State Administration, a special agency will be created that will involve and cooperate with investors. The agency’s tasks will include: • detailed elaboration of investment projects: Within the framework of development of the city investment projects, the agency will analyze and structure investment proposals, identify the highest priority project that will then be forwarded for consideration to potential investors. • promotion of the city and its projects among potential investors Analytical work on the existing trends and wishes of potential investors, marketing work on promotion of the city and its projects (organization of advertising campaigns, participation in international investment events, organization of Kyiv Investment Forum, etc.) • provision of feedback for investors Collection of information from investors and formulation of recommendations on institutional reforms and improvement of municipal legislation
INVESTMENT PROCEDURES AND NORMS At present, the largest obstacles for investors are the land issue and permit procedures. Hence, the priority tasks from the point of view investors involvement for the city will be: • development of transparent land relations (zoning and land cadaster of the city, investor geo-information system, etc.) • simplification of registration and permit procedures (approval of design documentation, registration of land relations, etc.) • creation of the necessary legal basis within the framework of municipal legislation or other forms of cooperation with investors
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Improvement of normative environment and investment climate will not be a one-time reform but is to become an ongoing process. Collection of information about the necessary changes will be carried out through the available channels: • regular analysis of the main problems and requests submitted to the investment agency • preparatory meetings and round tables with investors’ representatives (both general and specific) • regular surveys conducted among a wider group of investors • other recommendations of the oversight investment board. Based on the collected recommendations, the leadership of the Kyiv City State Administration together with profile representatives of the city administration will develop projects on improving the normative regulatory environment and earmarked simplification of the existing processes. Although the most radical changes are to take places in the near future, the ongoing improvement process will create not only long-term compliance of the investment environment with the business needs but will also give a chance to the existing static system to adapt to the surrounding changes.
IMPROVEMENT OF LOCAL BUSINESS CONDITIONS Business interests often coincide with investors’ interests and thus activities addressed to investors will have a positive impact on Kyiv-based companies. However, local business, especially small and medium-sized enterprises that form the basis for the city stable economic development, has its own specific needs that the city has to address. According to the results of analysis of the current status of the city business climate, the most acute problems are: • absence of transparent procedures for land or real estate allocation and property registration, absence of understandable zoning • non-transparent and unclear permit procedures • absence of accessible mechanisms of financing, price of the existing loan resources Within the framework of its terms of reference, the city has to reduce these obstacles to the minimum. For instance, a permit service created according to the strategic economic sector and the office for support of entrepreneurship have to simplify and clarify the existing rules and norms and to facilitate implementation of the necessary permit procedures as much as possible (including the procedures for business opening and termination). Furthermore, these agencies have to take an active part in collection of information and formulation of recommendation on improvement of the existing municipal legislation. Thus, within the framework of revision of administrative procedures, the following changes are to take place: • elimination of excessive procedures and norms that remained from the past although the respective state normative requirements have been simplified • elimination and simplification of the existing administrative restrictions • development of simple and understandable procedures for
CITY HAS TO PROVIDE ALL POSSIBLE SUPPORT FOR STRATEGY FINANCING AND IMPLEMENTATION “CONDITIONS CREATING” POLICY changing of the status of premises from residential to nonresidential Moreover, in cooperation with the city architectural agencies, clear and understandable standards should be developed for construction works for the entrepreneurial needs (e.g. a standard form for personal entrance/exit of a building for the premises located on the ground floor of a residential house). Improvement of procedures should not be a one-time event but a standing program for the city, according to which the community’s wishes, data on requests submitted to the permit center as well as recommendations from other agencies of the city are to be analyzed by the profile department and on the bases of an annual report to form the foundation for further amendments of municipal legislation. As to the problems with the local budget financing, the city is planning to resume its cooperation with financial institutions and to significantly enhance accessibility of programs on granting beneficial micro-loans to enterprises.
Fig. 52. Structure of Kyiv budget incomes in 2010, % Other taxes and charges 10%
17%
Other sources
Individual income tax 14%
59%
Subsidies/ subventions
• improvement of efficiency of the existing sources: facilitation of the economy coming out of the shadow sector, simplification of the procedures for collection of taxes and penalties using the e-government opportunities; • budget planning: introduction of mid-term and long-term planning with annual revision of the goals taking into consideration the achieved results as well as clear prioritization of expenses and reduction of secondary programs • increase of the share of taxes collected in the city.
ENHANCEMENT OF STABILITY OF CITY ECONOMY Economic stability is one of the main preconditions of the qualitative economic development of the city. Although to a large extent it depends on circumstances beyond the city control (the national economic situation, international events, etc.) within its powers and authorities the city has to do everything possible. The city budget will be the main stabilization tool since unlike private investments the budget is controlled by the city and its revenues are strictly regulated and occur at the fixed intervals. Hence, budget financing in the first place is to create a stable basis for the city’s vital activities. Budget financing is to focus first of all on the following areas: • current expenses related to maintenance and operation of the city’s vital activities • capital investments in the key social projects • primary support for the private sector in strategic clusters development However, to make the budget an efficient instrument, the city has to improve its financial situation. Examples of other cities demonstrate several potential possible tools for recovery of the financial situation of Kyiv: • Diversification of budget incomes: city finances depend significantly on one source of incomes – in the structure of Kyiv budget revenues, more than a half is accounted for by the individual income tax. The city aspires to diversify its incomes base in order to enhance stability of its financial situation.
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EFFICIENT AND TRANSPARENT GOVERNANCE SYSTEM IS A NECESSARY CONDITION FOR CITY DEVELOPMENT GOVERNANCE SYSTEM
CITY GOVERNANCE PRINCIPLES The city governance system is to be based on universal principles that, as the world experience shows, will enable us to ensure its maximum efficiency. These principles are described in more detail below.
ORIENTATION TO CITIZENS AND BUSINESS The main goal of work of the city administration is provision of services to population, organizations and business. In practical terms within the framework of the Strategy, it means both simplification of the procedures for coordination, issuance of permits and documents, and creation of attractive conditions for investments and comfort living.
SUBSIDIARITY All tasks are to be assessed both at the lowest most remote from the center and closest to the population level. For instance, when there are no economic or other serious reasons, school education issues should be the responsibility of district administrations.
TRANSPARENCY AND CLARITY Citizens of the territorial community of Kyiv, business representatives and central government bodies should have all the necessary information about activities of local authorities such as: • publications in the mass media of the results of activities and budget expenses by the city and district administrations; • an open uniform register of all investment objects in the city, etc.
1 Vertical
• Reduction of the number of hierarchical levels (from average staff members to the head of administration) from eight to five. The number of managerial staff at all levels will not exceed 25% • optimization of vertical information flows (introduction of electronic documents circulation and respective restriction and controls as provided for by the E-Government initiative) 2 Horizontal
• Single legal entity • number of immediate subordinates of one manager – from 5 to 8 3 Internal
• centralization of administrative functions (accounting, work with personnel, analytical functions, IT procurements and so on) • elimination of duplication of powers and authorities by departments and offices Fig. 53. Areas of optimization of the executive body structure
1
2
MAIN AREAS OF IMPROVEMENT OF CITY GOVERNANCE INSTITUTIONS The system of city governance will be developed according to the aforementioned principles, including strategic initiatives (e.g. e-government introduction) and the necessary changes in interaction with the investors and business. In general, to facilitate the Strategy implementation the structure of city governance and internal process of its work will be optimized, and mechanism of external cooperation will be improved.
CITY GOVERNANCE STRUCTURE World experience shows that the majority of the systems of local self-government are dynamic – the mechanisms of election of representative bodies (city council, city mayor), appointment of the head of the executive body (performance of this role by the city mayor or appointment of a special head) can be changed. The target structure of the executive self-government body (city administration) is to facilitate efficient management of the city life:
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3
EFFICIENT AND TRANSPARENT GOVERNANCE SYSTEM IS A NECESSARY CONDITION FOR CITY DEVELOPMENT GOVERNANCE SYSTEM
IMPROVEMENT OF KEY PROCESSES For the purposes of comprehensive optimization of the process, first of all one will have to audit the existing processes and to identify opportunities for improvement stating the desired functions. This process is to precede development and introduction of the e-government system since the results of this audit will determine the target configuration of the information systems. The following areas should be mentioned among the main optimization activities:
BUDGETING AND PLANNING For successful Strategy implementation, a set of activities will be carried out to improve the planning system, namely: • introduction of long-term and mid-term planning cycle; • identification of financing priorities on the basis of strategic development goals; • use of innovative technologies for comprehensive collection of actual information and analytical work on preparation of the future budgets; • annual revision of mid-term goals taking into account with achieved results.
PROCUREMENTS The process of organization of procurements is important both from the point of view of saving the taxpayers’ money (centralization of procurements can save up to 15–20%) and from the point of view of increased transparency of government activities. • creation of a single body that coordinates the process of procurements for all local government bodies; • timely presentation of complete information at all procurement stages on the official web-site.
STRATEGIC PROJECTS MANAGEMENT Especially important large-scale project that require coordination among a large number of departments require special approach for successful implementation. To this end, the target model of management provides for creation of a special structural unit whose work will be based on the project management principles.
OPTIMIZATION OF INTERACTION WITH CITIZENS The main areas of improvement of cooperation with the citizens include increased transparency of work of the city government, provision of information about its activities, simplification of procedures. The targeted approach to provision of information to population is to form the basis for public control.
WITH BUSINESS In addition to the ‘e-government” that will also enable us to simplify several procedures, there is also a need to improve the business and investment climate – namely to decrease the number of permit documents and to simplify the permit issuance procedures.
WITH OTHER GOVERNMENT BODIES Kyiv development cannot be discussed separate from the surrounding territory. The issues related to interaction with Kyiv Oblast are described in more detail in the Section “Urban Agglomeration Development”.
PERSONNEL MANAGEMENT To improve the quality of work of local government bodies’ employees, the following is needed: • introduction of the target indicators system (strategic goals – management goal – department goal – employee’s goal) and their connection to the system of incentives and bonuses; • training and professional development especially with introduction of new information technologies Besides, in order to decrease the level of staff turnover (in the future- under 15%), the city has to guarantee fulfillment of all measures provided for by law to ensure social protection of civil servants.
INTERNAL COMMUNICATIONS AND REPORTING The target model of governance envisages improvement of information support for activities and decrease of bureaucratic load of personnel related to internal communications and reporting: • introduction of internal electronic documents flow; • restriction of the scope of issues that require documenting; • introduction of a centralized ERP-system for internal financial and managerial accounting and reporting.
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PROGRESS IS EVALUATED ANNUALLY BY THREE MAIN INDICATORS METHODOLOGY OF PROGRESS EVALUATION IN STRATEGY IMPLEMENTATION Table 6. Areas of monitoring of implementation of the Kyiv City Development Strategy Until 2025 Monitoring area
Contents
Evaluation method
Indicators of Strategy implementation • Economic growth goals
Key indicator: GRP/per capita Auxiliary: citizens’ employment, average salary/available income as well as the index of incomes distribution in the society
Basic level and strategic goals Annual dynamics monitoring Monitoring of the position with regard to reference cities
• Comfort improvement goals
Livability index –key indicators characterizing the situation in the sectors supporting the city’s vital activities
• Additional target indicators of individual sectors
Fulfillment of key indicators characterizing development of individual sectors of the city
Basic level and strategic goals Annual dynamics monitoring
Independent international evaluation
International indexes of evaluation of the comport of living / suitability for life of the main cities of the world: Mercer, Economist Intelligence Unit
Monitoring of the gap with reference cities (Budapest, Prague, Warsaw, Moscow, St. Petersburg) and the index levels
Community feedback
Polling (including anonymous) among: • city citizens • local business representatives • foreign investors
Basic level and dynamics of changes in opinions through annual sociological surveys, interviews and questionnaires
INDICATORS CHARACTERIZING QUALITY OF LIFE OF KYIV CITIZENS EVALUATION PERIODICITY: ANNUAL
COMMUNITY FEEDBACK EVALUATION PERIODICITY: WITH REGARD TO THE PUBLICATION DATE
In the first place, the quality of life will be monitored according to the indicators characterizing economic wellbeing and comfort of living as well as the key indicators characterizing development of individual strategic sectors. These indicators enable us to monitor Kyiv progress in time as well as the situation and the progress with regard to the group of reference cities.
Direct feedback will be based on the two main interest groups: • community – to identify the level of support of the course of city development and priorities for the future • business representatives/investors – to identify support for the course of the business environment development, the situation with competitive power at the international level and priorities for further improvement.
INDEPENDENT INTERNATIONAL EVALUATION EVALUATION PERIODICITY: ANNUAL International surveys of the comfort of living in cities are an important factor determining perception of a city in the international arena. Such indicators make it possible to evaluate Kyiv’s arrears from the world standards of the comfort of living. It is important to mention that the position in this rating is not as important as the gap with the world leaders in terms of the absolute value of the calculated comfort of living indicator. Thus, over the last ten years, Prague decrease its gap with New-York (basic level 100 according to the Mercer index) by 54%, but it came only seven positions higher in the rating (77–70).
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PARTICIPATION OF ALL COMMUNITY GROUPS IN STRATEGY IMPLEMENTATION WILL ENSURE CONTROL OF NOT ONLY RESULTS BY OF THE ENTIRE IMPLEMENTATION PROCESS / COMMUNITY INVOLVEMENT
FROM CONTROL TO PARTNERSHIP Focus on the community should become one of the key principles of functioning of the city government. That is why the quality of life was selected the target criterion of the Strategy. That is why Kyiv citizens should evaluate efficiency of the activities related to the Strategy implementation. However, control will not be limited to mere provision of information – in order to ensure achievement of ambitious strategic goals, Kyiv citizens and the city administration have to develop comprehensive partnership relations based on: • provision of understandable information; • feedback; • involvement in implementation. Fig. 54. Three components of partnership
FEEDBACK Work of the Strategy development demonstrated interest of Kyiv citizens in the city’s life and enabled us to work out several methods of comments collection. For ensuring efficient feedback in the future, the city will use the following mechanisms: • collection of information and its forwarding to the profile city authorities through the call-center and Internet-portal of the Strategy; • regulatory participation of the Kyiv City State Administration in interactive TV and radio programs where the citizens will be able to ask pressing questions; • regular polling (including anonymous) among citizens of Kyiv about individual initiative within the Strategy and the entire process of its implementation. The gathered information will not only for the basis for further actions but it will also enable the City Administration leadership to carry out informed evaluation of the work related to the Strategy implementation.
INVOLVEMENT IN IMPLEMENTATION INVOLVEMENT IN IMPLEMENTATION PROVISION OF INFORMATION
Kyiv citizens will not only observe but also have to take part in fulfillment of the strategic vision in practice: • involvement of the active youth of the city in implementation of strategic projects (the Youth Project Office program) • involvement of citizens of Kyiv in certain activities (e.g. the program on involvement of Kyiv citizens in improvement of landscaping and greenery planting in the near-house territory) • creation of a legal basis and mechanisms for co-financing of projects by the community with direct control of the final results quality.
FEEDBACK
PROVISION OF INFORMATION TO KYIV CITIZENS Timely provision of information to the citizens about the work of the Strategy will be carried out with the help of the following instruments: • generally accessible Internet-portal of the city Strategy that will regularly publish the results of projects implementation, investment competitions, planned activities and current news; • phone information service where the citizens can learn about the status of individual activities; • publication of information in the mass media about the progress in implementation of strategic projects; • publication of key indicators that will enable monitoring of the general progress of the Strategy implementation.
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STRATEGY – PROGRAM DEVELOPMENT DOCUMENT STRATEGY RELATION TO OTHER DOCUMENTS AND PLANNING
The source of financing of strategic activities can be both budget allocations and the private sector. The relation between the Strategy and budget is formed with the help of the budgeting mechanism shown below. Fig. 56. Relation between the Strategy and the city budget Cost of the strategic plan priorities
Target programs
Cost of target program
Activities and tasks of the target programs
Source of financing
General scheme of territorial planning in Ukraine Budget programs
Kyiv-2025 Strategy
Investment programme
Zoning plan
City budget
Target programs by sectors Sector 1
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Cost of budget program
General Plan
Detailed plan of territories
Socio-economic development programme
...
Strategy
Budget
Program of Economic Reforms in Ukraine in 2010–2014
RELATION BETWEEN STRATEGY AND BUDGET PLANNING
Loan
Fig. 55. Strategy relations to other program documents
Strategic planning of the city development can be determined as a comprehensive targeted process aimed at coordination of different professional and political ideas that facilitate achievement of the identified development goals.
Private sector
The long-term Kyiv City Development Strategy Until 2025 identifies the vision of the city for the following decades, sets forth strategic goals, outlines the principles of their achievement and offers an approach to organization and management of the implementation process. During the Strategy development, a detailed analysis of the key sectors was carried out, successful experience of other cities was used, and surveys were carried out among the community ad public opinions leaders. The Program on Economic Reforms in Ukraine for 2010– 2014, which identifies the reform areas for the entire country, is also a guiding document for the Kyiv City Strategy. At the same time, the Strategy has an immediate impact on formulation of the City General Plan that is a tool of its implementation in the part related to the territorial development planning. At the operational level, the Strategy is complemented by other more detailed documents that cover shorter planning periods. Below, there is a general scheme of the Strategy connections with other program documents.
NEED FOR STRATEGIC PLANNING
Investments
STRATEGY PLACE IN CITY DEVELOPMENT PLANNING: RELATION TO OTHER PLANNING DOCUMENTS
Sector 2
Sector ...
Sector N
Budgeting requires identification of goals, tasks and indicators by the officials to measure efficiency of budget funds spending. These elements of the budget program are to be based on the strategy of city development. A budget program is a totality of activities aimed at achieving the goal following from the Strategy with the help of budget funds. Such activities are identified and implemented by the manager of budget funds within the respective terms of reference. A budget program is presented in the form of a document regulating budget funds spending for the purposes of strategy implementation and being the main mechanism of such implementation with the help of budget financing.
GENERAL OLAN AS MAIN TOOL OF STRATEGY IMPLEMENTATION TERRITORIAL DEVELOPMENT
KYIV TODAY: TERRITORIAL DEVELOPMENT OPPORTUNITIES The size of Kyiv territory is 84,000 ha, including: • 21% territory under residential and public buildings • 7% industrial, municipal and warehousing facilities • 9% territory under the transport infrastructure objects • 52% landscape and recreation zones, planted land • 7% water surface • 4% agricultural and other lands The city has about 6,400 hectares of territorial resources for various types of construction works, which accounts for approximately 8% of Kyiv territory.
GENERAL PLAN IS A DOCUMENT ENSURING CITY DEVELOPMENT FOR IMPLEMENTATION OF KYIV DEVELOPMENT STRATEGY The general development plan details the Kyiv-2025 with regard to territorial development identifying the areas of city development according to the strategic priorities: • identifies the priority conditions for creation of vial activities environment • identifies the boundaries and areas of development of the territories • details development of engineering, transport and social infrastructures • defines the regime of development preserving cultural and historical heritage • identifies activities aimed at improving the environment and the quality of city ecology • formulates a transparent and foreseeable plan of city development for potential investors
GOALS OF KYIV TERRITORIAL DEVELOPMENT One of the main goals of Kyiv city territorial development is a stable and balanced development and rational use of limited land resources. In terms of stable territorial development planning, the city aspires to achieve the following results: • creation of a balanced load on the engineering and transport infrastructure, provision of the first-class infrastructure for citizens of Kyiv • improvement of the comfort of living • improvement of the environmental situation and reduction of greenhouse gas emissions • increase of Kyiv’s attractiveness for tourists • decrease of social inequality in the city • creation of quality advantages and improvement of convenience of the use of public transport compared to individual transport
THE STRATEGY CONSISTS OF FIVE FUNDAMENTAL PRINCIPLES OF TERRITORIAL DEVELOPMENT Priority areas of Kyiv territorial development are provided for in the Strategy taking into consideration the requirements for stable development and social responsibility. These are: 1. Compactness • preservation of the city boundaries till 2025 and city develop-
ment making it “deeper, higher, denser” protecting the green zones both inside and outside the city • priority of secondary construction over primary construction first of all as a result of reconstruction of the existing objects • harmonious complex real estate development, poly-functional constructions that are to ensure higher self-sustainability of individual neighborhoods and city districts 2. City development as a cultural and business center • regeneration, renovation and re-orientation of institutional territories and industrial zones • creation of a “new city” – development of poly-centricity of several new centers of business activities (e.g. the Kyiv-City business center on the left bank) • support of the balance of dwelling and labor attraction, reduction of commuter migration • development of the public environment involving the citizens, including support for creation of various community selforganization forms (such as an apartment building co-owners associations) as a precondition of care about the city 3. Balanced agglomeration development • coordination of the territorial development “from general to particular” – coordination of development of Ukraine, oblast, Kyiv • balanced distribution of areas of specialization and spheres of economic activities based on the existing competitive advantages and resources of the city and oblast • development of joint projects and a plan of joint actions of the city and oblast • joint identification of territories for settlement and prospective construction 4. Responsibility to the future generations • Creation and development of the “old city”, protected cultural and tourist zone in the historical Kyiv areas • support for complex construction – construction of health care, sports, engineering and transport infrastructure, centers of business activities in the new construction areas • preservation and expansion of green zones • comprehensive approach to renovation of the street environment (compliance with safety requirements, esthetic convenience, cleanness) 5. Strategic planning of city construction activities • General City Plan, zoning and other territorial planning tools are to ensure implementation of the main strategic projects • ensuring transparency with the help of creation of the information system from the objects of investments and city development issues • development of a quality dialog with the local communities of the city, their involvement in the city development activities • creation of a city construction cadaster – the uniform system database of standards and norms, functional zones, real estate and infrastructure objects, and land resources of the city All the aforementioned principles play a crucial role in the General Plan development, formulation of the city construction policy, support for the complex construction regime, maintenance and renovation of the city territory approximating it to the “open city” concept.
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CITY WILL DEVELOP IN HARMONY WITH THE OBLAST DEVELOPMENT OF CITY AGGLOMERATION
KYIV IN THE OBLAST CONTEXT Kyiv Oblast occupies a territory with the size of 2,810,000 hectares, which makes 4.7% of the territory of Ukraine. The size of population is 1,849,600 persons (3.7% of the population of Ukraine), out of which urban population accounts for 58% and rural – for 42.1%. Fig. 57. Kyiv Oblast territory
At the same time, Kyiv is a separate administrative unit of governmental subordination and does not belong to the oblast. The city size is nearly one and a half time higher than that of the oblast in terms of population, and its territory accounts for less than 3% of the oblast territory.
COORDINATION OF DEVELOPMENT WITH THE OBLAST WILL ENSURE HARMONIOUS DEVELOPMENT Kyiv development will take place in harmony with the oblast that will ensure mutually beneficial cooperation and coordination of Kyiv’s activities with the oblast, development in the interests of both preventing negative consequences of uncoordinated activities.
KYIV AGGLOMERATION IS THE SINGLE CITY CONSTRUCTION SYSTEM The planned model of Kyiv development in the long-term perspective is seen as an open city construction system – Kyiv agglomeration. The main center of this system is Kyiv, and the sub-centers will be formed at the level of satellite cities. In the territory of Kyiv agglomeration, there are enough resources to place objects of high-tech production and services sector, housing, transport, municipal and recreational construction.
SET OF DEVELOPMENT ACTIONS REQUIRE COORDINATION OF ACTIONS OF THE CITY AND OBLAST To support joint interests of Kyiv and Kyiv Oblast the following steps are envisaged in the territorial planning: • balanced development of the system of settlement in Kyiv and Kyiv Oblast • integration in the single system of transport infrastructure of Kyiv and the oblast • development of a joint system of engineering infrastructure of Kyiv and the oblast in order to ensure reliability of its functioning and increase quality of provision of services to the population and business • coordinated development of the social and municipal infrastructure of Kyiv and the oblast
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• coordination of environmental policy • development with preservation of historical welfare of the single tourist potential of the region creating the image of a world-scale capital city.
MOST IMPORTANT ACTIVITIES REQUIRING COORDINATED ACTIONS OF THE CITY AND OBLAST RELATED TO FIVE DEVELOPMENT AREAS • The goal for development of the joint settlement system is: ||development of the objects of labor, cultural and general, recreational attraction of the population ||creation of territories for the infrastructure establishment and development ||increase of the investment attractiveness of the region • economic cooperation between the city and the oblast has to take into consideration the main competitive advantages and resources: ||unique transit potential resulting from the crossing of three international transport corridors ||availability of the necessary areas and infrastructure close to the main transport hubs ||availability of the necessary professional, science and research resources ||closeness to residential buildings, possible impact on the comfort of average citizens of the enterprises of some economic branches ||cost of the available labor resources • for the purposes of integration of transport infrastructure, the following will be coordinated: ||routes of the city and suburb public transport ||construction of logistic centers and terminals in the oblast territory to free Kyiv from truck traffic ||completion of construction of the Large Circular Road ||creation of the system of backup main exists from Kyiv or the most busy roads, construction of chord transit highways ||creation of five transport change junctions with parking places (park and drive), their connection to the city by outof-street express transport (e.g. rail routes) • for the purposes of development of the joint engineering infrastructure system, the following is envisaged: ||distribution of functions between the city and oblast to create engineering infrastructure for the suburb citizens ||allocation of sites and construction of garbage processing plants in the oblast territory • placement of objects in the oblast territory that require large areas as well as sanitary and epidemiological conditions for the use (treatment and recreation institutions, rest homes, sanatoriums, large sports and recreation objects) for development of a joint system of social and municipal infrastructure • implementation of coordinated environmental policy envisages: ||allocation of territories for planting common for Kyiv and the oblast ||technological re-equipment and movement of certain industrial objects beyond the city boundaries to the oblast territory.
CITY GROWTH WILL BE SOCIALLY BALANCED SOCIAL RESPONSIBILITY
SOCIAL RESPONSIBILITY IS AN IMPORTANT ELEMENT OF KYIV CITY DEVELOPMENT STRATEGY Along with the economic growth, an important priority of Kyiv development is achievement of high standards of living for all its citizens. In the course of transformations provided for in this Strategy, it is very important to take into consideration the impact of the implemented measures on vulnerable social groups and to ensure availability mechanism for mitigation of the outcomes of Strategy implementation for such social groups. The key areas of ensuring socially responsible growth: • Reduction of the gap in the incomes level. One of the key priorities of social policy of the city is to decrease the gap between the rich and poor citizens of the city and to create a sustainable middle class. In view of this, Kyiv strives to develop as a city of opportunities aiming at ensuring development of entrepreneurship, creating competitive environment for employers win the professional labor market, improving the opportunities to receive education that will be in high demand. • addressed subsidies on the use of public transport and water supply, sewerage and heating services. The system of public transport in Kyiv requires significant changes in order to increase the quality of its services and accessibility. One of the sources of financing of the necessary changes is supposed to be a gradual transition to the market price-setting principles. Monetization of benefits and addressed subsidies on the use of public transport for citizens with low incomes will make the public transport services accessible for such citizens, and they will become a more efficient mechanism of social protection than travel privileges.
Reform of the water supply, sewerage and heating sectors provided for in the strategy implies involvement of private investors. It will inevitably lead to liberalization of price-setting. As in the case of public transport, addressed subsidies are proposed to ensure social protection of the most vulnerable social groups. • Social integration. This area reflects Kyiv’s commitment to ensuring the principle of social equality in the city development process. Socially vulnerable groups of population are to be integrated in the society and enjoy equal rights. The city will monitor social equality indicators, ensure access of socially vulnerable social groups to social privileges, employment opportunities, etc. For the most vulnerable categories of population, addressed assistance will be provided. • Affordable dwelling. A serious challenge for the city is provision of decent dwelling conditions for its citizens. The level of provision of the dwelling fund for citizens of Kyiv is far behind the level of European cities. At the same time, complete provision of social dwelling for everyone will not be possible even until 2025. The priority in resolution of this problem will be place on development of the service housing market. • Provision of social infrastructure objects for citizens. Support of high standards of living and harmonious city development are impossible without ensuring a high level of the social infrastructure services. In view of the present misbalance between demand for and supply of such services as well as the expected growth of Kyiv population, the city aims to provide enough schools, nursery schools, health centers and hospitals for its citizens by 2025 taking into consideration the needs of individual districts and the principles of sustainable development of territories.
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STRATEGY WILL BE IMPLEMENTED DURING 15 YEARS IN THREE STAGES STAGES OF STRATEGY IMPLEMENTATION The scope of tasks to be solved is very large and in order to achieve the vision goals, the implementation process is to be organized in several stages. The strategy will be officially reconciled and approved – it is the first check point. The next check point will be an international event – Euro 2012, which is the most important tool of city promotion, including promotion among the investors. The following three check points – 2015, 2020 and 2025 – are the end of the stages of Strategy implementation. Orientation to 2015 and 2025 are presented in figures in the form of key city development indicators. It is important to mention that despite this connection, progress monitoring will be carried out on an annual basis.
STAGE 1. CAPITAL CITY STANDARD – LAYING THE FOUNDATION FOR DEVELOPMENT 2011–2015
STAGE 2. EMERGENCE OF COMPETITIVE CENTER – GROWTH IN PRIORITY AREAS 2016–2020
STAGE 3. DEVELOPMENT OF INTERNATIONAL CENTER – WITH CITY’S COORDINATION PARTICIPATION 2021–2025
• Forming the basis (approval of the basic projects, creation of respective structural implementation units, compilation of a register of investment projects, adaptation of internal normative base of Kyiv to the Strategy requirements) • Clean city and cozy common area (introduction of programs on house amenities and near-house territories, start of the program of thermo-modernization of the residential fund, works on the city landscape gardening and beatification of public areas) • Cultural and tourism center (promotion of the city at the international level as an attractive tourist route, including the use of Euro-2012 as the unique platform for promotion and development of a new city’s cultural and tourist offer) • Modern transport and infrastructure (active works on optimization of the existing systems, replacement and modernization of the rolling stock of public transport, repairs and reconstruction of the city’s engineering infrastructure objects) • The city open for business (reform of the city governance system, normative base and promotion of investment projects) • Start the development of the economic competitiveness programmes...
• ...continue competitive development (support for and development of priority economic areas, city’s competitive clusters) • Healthy citizens (support for healthy lifestyles among Kyiv citizens, completion of the health care system reform) • Poly-centric city (creation of separate business, natural recreation and later – administrative centers of the city) • International business center (promotion of the city in the international arena as a business center, creation of necessary conditions for involvement of international companies)
• Free economic development regime (economic development due to local business and international investments) • Further development of social programs in the city, promotion of social responsibility in business community • Further work on the support programs (use of the introduced mechanisms for further improvement of business and investment environment in the city, promotion of the necessary changes at the national level)
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KYIV’S CURRENT POSITION AND TRENDS
KYIV’S STRENGTHS DETERMINE SIGNIFICANT DEVELOPMENT POTENTIAL SWOT-ANALYSIS
GENERALIZED SWOT-ANALYSIS FOR KYIV Fig. 58. SWOT-analysis methodology
S
O
TRENGHTS
PPORTUNITIES
W
EAKNESSES
T
HREATS
STRENGTHS • economic and financial center of Ukraine, “center of gravity” for capital and resources • highly qualified workforce, significant concentration of science and research personnel • relatively (compared to the Eastern European capitals) cost of living • high loyalty and city’s emotional appeal1 among the citizens • relatively high level of personal safety • the lowest level of atmosphere emissions of pollutants among the compared cities
WEAKNESSES • very worn-out engineering and transport infrastructure • insufficient transparency and unpredictability for investors and economic agents • unfavorable environment for business development – a large number of procedures, permits and oversight bodies • low popularity of active life style, deterioration of health indicators among the citizens, a sustainable trend toward the growth of consumption of alcohol and tobacco • chaotic real estate development and continued loss of the historical appearance of the city • absence of a clear focus on competition in the sphere of future economic development • weakly differentiated base of the budget incomes, growing withdrawals to the State Budget that limit budget financing of the city development
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1. According to the results of the conducted opinions survey
OPPORTUNITIES • the capital city status and concentration of resources – an opportunity to use of the economy of scale for the purposes of city development • unrealized tourist potential, including the huge cultural and historical heritage – history, architecture, green zones, the Dnieper River and its surroundings • free visa regime of Ukraine and immediate proximity to two large economic impact centers (EU and Russia) • relatively low level of economic development, numerous unused opportunities in the service market compared to the developed countries • inefficient use of territories (including industrial and institutional zones (within the city • availability of a large shadow sector in economy – a potential for increased budget incomes • large number of universities and education opportunities • direct air traffic with the scale comparable to the developed CEE capitals
THREATS • high corruption level • continued political instability • limited opportunities of the city to influence issues at the national level, first of all regarding the budget and investment spheres • dispersal of priorities and unclear division of responsibility during the Strategy implementation • deterioration of citizens’ health indicators, insufficiency of the current education, workforce of the developing industries • absence of proper positioning and promotion of the city in the international arena
MIGRATION TRENDS WILL INCREASE IMPACT ON DEVELOPMENT DEMOGRAPHIC TRENDS AND CHALLENGES
KYIV DEMOGRAPHIC TRENDS Table. 7. Demographic assumptions Population
2008
20251
- permanent
2 724,2
3,1
- actual
3 144,3
3,7
- daily
3 490,3
4,0
Suburb
969,9
1,1
Kyiv
According to the current forecast of the Institute of Demography and Social Research of the National Academy of Sciences of Ukraine, the permanent population of Kyiv by 2025 will increase by 14%. Fig. 59. Growth of Kyiv population, thousand persons 27
Net migration
27 25
17
Net natural growth 5
-1 -3 -5 -8 1995 1997 1999
5
8
22
25 20
11
2001
2003
2005
2007
2009
Before 2008, the natural growth of population in Kyiv was negative characterized by high indexes of mortality and low birth rate, especially during the 1990s economic crisis period. Today, the situation began to improve, and since 2008 the natural growth of population has been positive. Fig. 60. Net migration increase, persons per year per 1,000 citizens 20 Prague 10
Kyiv St.Petersburg Moscow Warsaw
0
-10 2004
Budapest
2005
2006
2007
2008
Being the largest center of economic activities in Ukraine, Kyiv annually receives a large number of migrants, and ~10% of the current Kyiv population was formed as a result of migration during the last 15 years. At the same time, the level of immigration (mainly internal) was and still is one of the highest among the compared cities (Fig. 60), which can be explained by a significant difference between the level of economic wellbeing of Kyiv and other regional of Ukraine and a comparatively liberal migration policy of the city. The main challenges for Kyiv with the continued current demographic trends will be: • increased load on the engineering and transport infrastructure of the city • socio-cultural integration of new citizens of the city • preservation of the ethno-national balance in all districts of the city
GLOBAL DEMOGRAPHIC TRENDS RELATED TO KYIV CITY DEVELOPMENT Sub-national migration. Traditional immigration centers with national economy development become donors for other regions. It is especially typical for mega-cities in the developing markets (e. g. Mexico City), which lost the status of the single economic center of the country as a result of the growth of economic activities in the regions and faced the problem of internal competition for labor resources. Economic development of Ukrainian regions can lead to a decrease of the inflow of talented staff to Kyiv. Prevention activities: increased opportunities for self-realization, first of all by means of activities in the sector of Economic Development, Private Entrepreneurship and Investments. International migration and competition of talented staff. Cities involve population from other cities/countries with poorer opportunities and worse living conditions and hence often lose highly qualified professionals to more convenient and developed places. The risk is in the decrease of staff qualifications because of immigration of staff with lower qualification. To ensure economic development in the knowledge economy spheres, an ability to involve best talents to the city is a precondition for success. Kyiv needs to implement a focused policy on involvement and retention the most highly qualified professionals in the city, for instance, by means of simplification of procedures for getting a job permit as well as creation of zones with increased comfort of living. Prevention activities: full-scale implementation of strategic initiatives International Harbor for Headquarters and Made in Kyiv. Formation of agglomerations. The leading cities become economic centers of agglomerations that include satellite cities requiring coordinated development and consideration of specific feature of agglomeration in the process of infrastructure development. During development and implementation of the Strategy, Kyiv has to take into account its status of a leading center of a multi-million agglomeration (see the section on agglomeration development). Prevention activities: implementation of activities provided for in the Section Development of Agglomeration.
1. In millions according to the forecast prepared by the Institute of Demography and Social Research of the National Academy of Sciences of Ukraine.
75
CURRENT NORMS AND PRACTICE CREATE SIGNIFICANT OBSTACLES FOR BUSINESS AND INVESTORS CITY BUSINESS ENVIRONMENT Position‘121
National level
Business conduct easiness
152 (out of 183)
Legal system Sovereign rating
Loan granting
24
Bank regulation
Innovative business financing
Taxes payment
181
Majority of taxes at the national level, centralized taxation administration
Rates of some taxes (tourism, property tax)
Business opening
112
List of procedures, general regulation
Administration of procedures, registration of foreign direct investments
Work with permits
180
Types of activities subject to licensing, permits introduced only by laws
Some permit authorities at a local level, some permits and approvals introduced by local administration bodies
Real estate registration
166
General regulation
Administration of registry maintenance procedures
Protection of investors
111
Corporate and stock exchange legislation
None
International trade
140
Customs bodies managed at the national level
None
Contracts implementation
44
Court system and legislation
None
Business termination
156
General regulation
Administration of procedures
Non-financial
Financial
Criterion
City level
— Balance of the roles of the city level and the national level
Kyiv as the capital and economic center of Ukraine attracts a large number of both national and international companies. Thus, nearly all 100 largest Ukrainian companies2 are present in Kyiv, and 39 of them have their headquarters here. The city’s strategic location with regard to trade ways and its relative openness for foreign companies make it an attractive regional center in the CEE and CIS. One should mention specifically that Kyiv accounts for 34% of foreign direct investments in Ukraine, and 20% of all capital investments in 2009. Besides, Kyiv has a sufficiently developed layer of small and mid-size business, which covers more than 60% of employment and nearly 50% of the city’s GRP. Unfortunately, the existing situation in many cases was created not due to but despite the obstacles posed on the way of business development by various normative regulations, procedures and inspections. Thus, according to the index of business conduct easiness Ukraine and Kyiv together with it are at a lower stage of development and during the last year they came down from the 149th to 152nd position. In terms of some parameters, Ukraine is the last in the world. With regard to the majority of indicators, the country’s position is determined by the situation in the largest city and thus this position is applicable for Kyiv as the city. Whereas the investment and business climate to a large extent is determined by national policy and regulations on the basis of several parameters, the city role is also important, especially with regard to procedures for business opening and termination, permit system, property rights registration. Not only national restrictions but also permit procedures and inspections carried out by the city disable opening or legal functioning of some enterprises (e.g. opening of an object by an international hotel operator required collection of 652 signatures and lasted for three years; permit procedures for placement of a logo of another company on the building where it rented its office lasted for eighteen months), and uncoordinated work of city services disrupts the work of companies. Local norms, inspections and other obstacles present signifi-
76
cant problems for small business in the city. These problems depress development and sometimes push a significant part of activities to the shadow sector. Thus, European small business on average is thrice more productive than in Kyiv (based on the results of comparison of the shares of employment and impact on the GNP/GRP). On the part of external investors and foreign companies inequality of rights in interaction with local agencies can often be observed compared to local companies that result in significant restriction of foreign investments in the city. The most visible problems of investors and business today are related to: • absence of transparent procedures for land or real estate allocation and property registration, absence of understandable zoning • non-transparent and unclear permit procedures • absence of accessible mechanism of financing, price of the available loan resources • accessibility of quality and reliable infrastructure To support local companies and to attract foreign companies and investors to the city, a number of activities is planned in the Strategy aimed at improving the existing situation: • simplification of procedures and norms within the scope of the city’s terms of reference. Creation of accessible and efficient mechanisms of interaction between the city and business (permit centers in every city district), and between the city and investors (city investment agency) • development of the system of motivation for Ukrainian and foreign companies and investors that will implement projects within the framework of nine main strategic initiatives of Kyiv city development and creation of the city competitive clusters (after their approval within the Made in Kyiv initiative) • renovation of the existing and creation of new infrastructure objects for business (including creation of new business centers of the capital city within the City Center Nearby initiative)
1. According to the World Bank’s Ease of Doing Business Index 2012 published in June 2011 2. According tot eh rating of 100 largest Ukrainian companies published in Top 100, July 2011
KYIV HAS TO PRESERVE ADVANCED ECONOMIC DEVELOPMENT PACE KYIV’S ROLE IN DEVELOPMENT OF UKRAINE
KYIV’S ROLE IN UKRAINIAN ECONOMY – OUTRUNNING GROWTH
Fig. 64. Average annual real GRP (GDP) growth in 1996–2007, % +3,3
Kyiv is the key center of economic activities in Ukraine, its financial and investment center. Thus, with the share of population being 6% of the total Ukrainian population, the city share in Ukraine’s GDP is 19%. Furthermore, Kyiv accounts for 18% retail sales in the country and 23% of all construction works. Due to the high level of economic activities, the level of city’s wellbeing is much higher than average in Ukraine. Fig. 61. Kyiv’s role in Ukrainian economy, % of the total (2009)
Fig. 62. GDP (GRP) per capita, thousand UAH, 2009 61
6
Population
х3
19
GDP
20
34
FDI Capital investments
20
Kyiv
+1,9
+1,3
5,1
4,8 3,2
Prague
Chech Republic
Budapest
7,9 4,6
3,5
Hungary
Warsaw
Poland
KYIV AS EDUCATION AND INNOVATIONS CENTER Historically, Kyiv has a powerful science and education base that will form the foundation for innovative city development. The city has 69 out of 350 higher education institutions of accreditation grades 3–4 training 560,000 students (~20% city population). Fig. 65. Kyiv’s share in science and education system of Ukraine in 2009
Ukraine
The dynamics of Kyiv’s economic development are also constantly ahead the general Ukraine’s indicators: an average annual growth rate of Kyiv’s economy in 2004–2009 was 5.7%, which is 2.3 times higher than the growth of rate of national economy during the same period (2.5%).
Higher education institutions Levels 1–2 Higher education institutions Levels 3–4 Number of students
9%
% of average for Ukraine (some indicators)
20% 25%
Research and technical specialists
In order to achieve the identified goals, Kyiv’s GRP should grow by 6.5%1 per year until 2025, which is 1.5–2.5 % higher than the expected rate of Ukraine’s economic development.
International conferences
39% 33%
A vast base of science and education institutions and Kyiv’s leading roles in research and innovative activities in Ukraine enable us to implement the program of Kyiv city development on the basis of investment-innovative model.
KYIV AS ADMINISTRATIVE AND CULTURAL CENTER OF UKRAINE Fig. 63. Real GRP (GDP) growth rate, % 20%
Kyiv
10% 2004
The status of the capital city and location of central government bodies in Kyiv charge the city with additional requirements concerning support in fulfillment of their functions but simultaneously facilitate Kyiv’s development as the center of business tourism, forums and conferences.
Ukraine 2005
2006
2007
2008
2009
2010
The experience of development of some Eastern European capital cites also demonstrates the outrunning growth of capital economies compared to national economies, which fact confirms ambitiousness but still reality of the planned development rate.
1. In 2010–2025
77
DEVELOPMENT BASED ON UNIQUENESS – GUARANTEE OF DECENT PLACE IN EUROPE KYIV’S ROLE AND PLACE IN INTERNATIONAL CONTEXT
KYIV’S ROLE IN INTERNATIONAL CONTEXT – EAST AND WEST MEETING PLACE SOME GLOBAL TRENDS THAT KYIV CAN SUCCESSFULLY USE Business globalization. Among many trends and instances of globalization, especially important potential for Kyiv is offered by: • outsourcing of various business part in the regions with low costs • “regionalization” of management, i.e. placement of regional headquarters closer to the sales markets • growth of passenger and cargo flows International specialization. To attract investments and create competitive environment, countries and cities specialize in the niches where they have first-class expertise or advantages in expenses (or both). Individualization of tourism. With development of information technologies, tourism becomes less and less “standardized” when a tourist uses available information about cities, sightseeing places and local events plans an individual travel. Fig. 66. Kyiv’s location in global transport flows
OPPORTUNITIES FOR CREATION OF UNIQUE KYIV’S POSITION Kyiv’s location in the geographic center of Europe creates numerous opportunities for economic development and fulfillment of Kyiv’s potential as a cultural and tourist center. The main potential clusters for using Kyiv’s advantages can be as follows: • International cultural tourism where Kyiv’s potential is significantly underused • Business and conference-tourism. For citizens of the majority of countries, entrance to Kyiv is visa-free, and a flight from the majority of European states, Near Eat and Middle Asia takes not more than 3–4 hours. • Passenger and freight transport, logistics (first of all, air companies, provided there is infrastructure development) creation of an international logistic center • center of international companies’ headquarters, especially regional centers of global corporations and firms operating on the CIS markets At the same time, one has to take into consideration that implementation of all ambitions projects is based on the opportunity to attract capital and talented staff to the city. In this sphere, all modern cities compete both with other cities in the region and with global metropolises.
KYIV WILL COMPETE IN THE INTERNATIONAL ARENA WITH OTHER CITIES South-North axis
East-West axis
~ 3-hour air traffic zone Main transport flows directions
78
Attraction of talented staff. A breakthrough in the economic development, especially in “knowledge economy” is impossible without involvement of the best national and international talented specialists, the majority of whom have a chance to choose the geography of application of their talents. An ability to attract the best talents is the key condition for success. Kyiv has to create conditions for attraction and retention of the best Ukrainian talents as well as first-class international specialists. Attraction of investments. Investments form the basis for economic development, and to attract them, the city has to implement the maximum support policy. High-quality infrastructure, comfort of living, simple and clear regulations attract investors. Successful examples of investment projects reduce the perception of investment risk and facilitate further investments.
STRATEGY DEVELOPMENT METHODOLOGY
POSSIBILITY OF RESULTS MEASUREMENT – CRUCIAL PRINCIPLE OF THE STRATEGY STRATEGY DEVELOPMENT PRINCIPLES MEASURABILITY
AMBITIOUSNESS
The key principles is that all goals of the Kyiv City Development Strategy Until 2025 have clear quantitative or qualitative presentation that enable us to monitor the progress of its implementation and discipline all implementers.
The Kyiv City Development Strategy Until 2025 provides for a qualitative breakthrough in the city development and approximation of the living standards to the leading Eastern European capitals.
SUSTAINABILITY
PRAGMATISM/PRACTICABILITY
The development strategy is not a program of a single sprint dash, but a long-term city development marathon based on the sustainable development principles that will enable us to pass the city to the future generations with a resource base that makes possible the further improvement of living standards.
The strategy initiatives are ambitious but at the same time realistic and aimed at improving the specific parameters of the quality of Kyiv citizens’ life. Directions for action. Strategic initiatives of city development are formulated as specific tasks with the clearly identified responsibility, goals and implementation timelines.
FAIRNESS The development strategy is oriented to involvement of all groups of citizens in social and economic processes and provision of proper living conditions for everyone.
OPENNESS/TRANSPARENCY During the Strategy development, opinions of all key stakeholders, first of all Kyiv citizens, were taken into consideration.
OPINIONS OF EXPERTS AND CITIZENS ARE AS IMPORTANT AS STATISTIC DATA ANALYSIS STRATEGY DEVELOPMENT METHODOLOGY Fig. 67. Sources of information used for development of the Kyiv City Development Strategy Until 2025 Public opinion • surveys conducted among citizens of Kyiv and suburbs (February 2011, 1,600 respondents) • public discussion of the strategy, including through the Kyiv Strategy 2025 portal
International experience and trends • experience of development of eastern European capitals • world trends of urban agglomerations development
Expert opinion
Data analysis
• survey conducted among more than 30 experts and public opinion leaders • opinions of more than 100 representatives of business, government, civil society and international organizations
• statistic data on the current situation in the sectors of city’s vital activities • comparative analysis of the group of similar cities
First version of the Kyiv City Development Strategy Until 2025 • comments, feedback and proposals published in the mass media
• 4,400 citizens of Kyiv who provided their comments to the first version of the document • 200 collective appeals • 200 commenters on the Strategy page on the Facebook
• public hearings on amendments to the Strategy • evaluation of individual parts of the final version of the Strategy by profile experts
Discussion in mass media
Comments from Kyiv citizens
Expert evaluation
WWW
KYIV CITY DEVELOPMENT STRATEGY UNTIL 2025 80
STRATEGY DEVELOPMENT – MULTI-STAGE AND MULTI-FACETED PROCESS STRATEGY DEVELOPMENT METHODOLOGY
ORGANIZATION OF DRAFTING WORK ADVISORY BOARD OF THE PROJECT CONSORTIUM OF KYIV CITY DEVELOPMENT STRATEGY • Kyiv City State Administration • Efficient Governance Fund • The Boston Consulting Group • The Word Bank • The Cities Alliance • Institute of Economy and Forecasting of the National Academy of Sciences of Ukraine • Institute of Demography and Social Research of the National Academy of Sciences of Ukraine • Ukrainian Center of Economic and Political Research named after Razumkov • Institute of Kyiv General Development Plan • R&D Institute of Social and Economic Development of the City • Research Institute for City Social and Economic Development Work on the City Development Strategy started with creation of the authors consortium that included the leading international and Ukrainian organizations and expert institute. On the part of Kyiv City State Administration we created a working group of representatives of all main sectors of the city’s vital activities that will be responsible for the Strategy implementation. Special attention was paid to including public opinion. A specially created Public Council at its monthly meetings discussed the main interim results. The Council consists of more than 40 public opinion leaders, political actors, representatives of culture, business, sports, and mass media. The main goal of the council’s work is to present expert and public options. During the period of the consortium’s works, two large-scale surveys were carried out: 1) survey of 1,600 randomly selected citizens of Kyiv and suburbs 2) survey of more than 30 experts – representatives of the public, business and government. The survey results had an immediate impact on formulation of priorities that were included in the Strategy. Brief summary of results is resented in the Appendix to this document.
STAGES OF DRAFTING WORK At the initial stages, analysis of the city’s current situation was carried out to compare it with similar cities, vision of the city’s future and its mission was developed, public discussion was organized and implementation program developed. The first version of the Strategy published on May 31, 2011 became the first step and gave an opportunity to the public and experts to present their comments on the shortcoming and omissions of the draft document. For six months, comments and proposals came through the organized discussions and round tables as well as through the wider methods of information collection (call-center, special mail box, dedicated points of comments collection of the city agencies, etc.) Besides, during this period mechanisms of implementation of the Strategy initiatives were developed, plans for individual goals were finalized, and the most promising investment projects were analyzed and selected so that after approval of the Strategy, implementation activities could be started at once. Based on the public comments, a database of more than 7,000 was created and taken into consideration to revise some parts of the Strategy, after which the final wordings were proofread by recognized external experts to whom the project team is very grateful for their assistance (see the Section “Acknowledgements for participation in Strategy development).
Fig. 68. Organization of work on the Strategy development: wide involvement of government, experts and community Stage 1
Analysis of the current situation
January 2011
Stage 2
Stage 3
Development of the city’s future vision
Public discussions
Formulation of initiatives and goals for individual sectors
Programs development and implementation
Stage 4
Stage 5
Strategy approval by Kyiv City Council
Strategy implementation
2012
81
FINAL VERSION OF STRATEGY IS BASED ON WISHES OF KYIV CITIZENS AND EXPERT COMMENTS ANALYSIS OF COMMENTS FROM KYIV CITIZENS AND EXPERT TO THEIR CITY’S STRATEGY The city strategy is to reflect wishes and ideas of its citizens since it is their wellbeing that the city government should be oriented to. That is why the comments provided by Kyiv citizens during consideration of the first draft of the document were extremely important for the strategy development. During six month, more than 4,400 citizens provided approximately 7,300 comments1. In the course of detailed analysis, Kyiv citizen’s appeals were first divided in general that contained no specific proposals, and specific with the proposals answering the What? Where and How? questions. Specific proposals were divided into strategic that required complex and stage-by-stage implementation, and operational calling for specific and rather simple actions. During the final analysis stage, operational comments were divided in priority that with insignificant expenses will lead to the most visible results(quick wins), and other that are also necessary
The main comments concerned the transport sector, environment (including green energy production), health care (including healthy lifestyles), and the housing and utilities sector (including insulation and increased energy efficiency of the housing sector). Unfortunately, some comments could not be included into any group but all of them were carefully analyzed and some of them also lead to the changes in certain sections of the final document2. Furthermore, during the discussion process of the first version of the documents we received many proposals concerning specific description in the strategy implementation section, and more detailed information about the financing mechanisms. Although the majority of strategy initiatives were developed on the basis of a pragmatic approach, the aforementioned comments emphasized the need for a more detailed consideration of the implementation issues.
Fig. 69. Comments from Kyiv citizens were carefully revised in three stages General or specific comments
Comments database
Sources
Strategic or operational proposals Strategic
>4 400 comments1
Specific
30%
49%
Operational
General
19%
but require a more complex approach and will give a less significant general result. Strategic comments were carefully analyzed with regard to the main sections of the Strategy. Fig. 70. Areas of strategic comments provided by Kyiv citizens 22%
Transport Environment
15%
Health care Housing and utilities sector Tourism
15%
Education Economy and business
13% 6% 5% 5%
Social protection
4%
City governance
4%
Relevance to the Strategy sections
Quick wins
WWW
51%
Finalization level
8% Other proposals
11%
Eventually, Kyiv citizens’ comments resulted in the most significant changes of the document: • finalization of the “vision” of the city and its mission with a focus on “green” development (preservation of the city’s landscape and recreation territories and plants) and city development according to the principles of sustainable development of territories. • addition of a separate strategic initiative on energy resources conservation and increased role of renewable sources in the city’s energy balance – Effective Energy System • significant improvement of goals and approaches to the transport sector development, focus on sustainable mobility • significant improvement of the economic sector, increased attention to small and medium-size business • revision and more detailed elaboration of the Strategy Implementation Program section • finalization of information on the most promising investment projects, their presentation in the form of a separate Appendix
Employment 0% Other
82
11%
1. Approximately 7,000 comments to the Strategy from 4,400 respondents were received from various sources 2. E.g. proposals on moving the administrative center outside the historical and cultural zone were included in the City Center Nearby initiative, and comments on nationalization of some private companies and removal of some markets were not included in the Strategy.
CONDITIONS OF STRATEGY IMPLEMENTATION ASSUMPTION USED DURING STRATEGY DEVELOPMENT 1. SUCCESSION IN STRATEGY IMPLEMENTATION A city development strategy is a long-term policy document that reflects vision of the city development by the public. Many areas of long-term development require significant mobilization of resources. Achieving of the goals identified for the city is possible with consistent implantation of the approved Strategy regardless of the city government changes.
2. BALANCE OF POWERS AND AUTHORITIES OF NATIONAL GOVERNMENT AND LOCAL GOVERNMENTS /LOCAL SELF-GOVERNMENT BODIES Today, the balance of powers and authorities of the national and local government gravitates toward centralization. Powers of local self-government bodies where possible should be expanded to provide the Strategy implementers with necessary tools to influence the key spheres of the city life (e.g. executive bodies controlling municipal rules and norms, tariff setting and taxation, etc.)
3. STABILITY OF TAXATION SYSTEM AND BUDGETING IN THE PART RELATED O DISTRIBUTION OF RESOURCES BETWEEN LOCAL AND NATIONAL LEVELS Strategy implementation requires investment of certain resources calculated on the basis of the available system of taxation and budgeting. Significant changes in these systems can influence the speed and quality of implementation of individual initiatives and the Strategy in general.
4. IMPLEMENTATION OF ECONOMIC REFORMS PROGRAM Kyiv strategy in several sectors is based on national regulation. Development of situation in Kyiv to a large extent will depend on the reforms implemented at the national level (e.g. state regulation in the part related to creation of favorable investment climate, health care reform).
5. UNCHANGED VISA AND MIGRATION REGULATIONS The demographic situation in Kyiv depends very much on migration. Some strategic initiatives of the city development are based on openness of the current visa regime. Significant changes in regulation of these spheres can have significant effect on implementation of the city development strategy.
NEED FOR CONTROL AND ACTIVE RISKS MANAGEMENT IMPLEMENTATION RISKS AND THEIR PREVENTION The key risks for the Kyiv City Development Strategy include:
Measures taken by Kyiv City State Administration to eliminate the risks:
Lack of qualified and motivated specialists necessary for the Strategy implementation. This risk can be related to implementation of both individual activities and management of the projects of Strategy implementation in general.
Based on the results of work on Strategy development, a project office on Strategy implementation was created consisting of the members of KCSA working group who demonstrated their best qualities as well as external specialists.
Unclear division and identification of responsibilities in the KCSA team. This risk can emerge both at the managers and at the implementers level.
A group of persons was identified who are responsible for the project in general and for the individual areas, and an adequate incentives program was offered.
Inability to improve the regulatory environment and conditions for business conduct in order to attract investments.
KCSA is working on simplification of the regulatory field, the system of city governance will be reformed, a single permit center will be created and a new system for stimulating structural units will be formed to improve the business climate in respective spheres.
Dependence on national regulation in the spheres of improving the investment climate, health care, development of concession mechanisms, etc.
The city will actively facilitate deregulation, and promote respective initiatives at the national level.
Insufficient financing of the key infrastructure projects.
Along with the budget financing, we actively involve private investorsâ&#x20AC;&#x2122; funds on mutually beneficial terms (including the PPP forms), and conditions are created for convenient co-financing of projects by citizens.
A tentative character of evaluation of the required financial resources and timelines for implementation of activities provided for in the Strategy.
The working group was striving to achieve the maximum possible precision in identification of financial needs and implementation periods. These indicators will be adjusted when new information is received.
Force majeure, political instability and global shocks such as financial crisis, energy crisis, and the like.
During the Strategy development, a conservative approach was used in forecasts, and global trends were taken into consideration. The formulated vision will remain relevant even after the unforeseen circumstances occur.
83
APPENDICES
TARGET STRATEGY INDICATORS
AREA
INDICATOR
MEASUREMENT UNITS
CURRENT VALUE
TARGET VALUE
%/year
5.73
6.53
Integrated index
100
181
Strategic goals
Average annual growth of real GRP
Strategic goals
Livability index4
General
Resident population5
mln persons
2.726
3.11
General
City area
thousand ha
846
84
Economy
Nominal GRP per capita
thousand UAH/citizen
61.92
401.97
Economy
Cumulative foreign direct investments per one resident citizen
thousand euro/citizen
5.62
30.8
Economy
Capital investments per year
thousand UAH/citizen
5.22
16.8
Economy
Share of small companies in sales of cityâ&#x20AC;&#x2122;s products
%
152
35
Transport
Length of public transport lines8
km/10 000 persons
9.61
16.1
Transport
Density of street-motor roads network9
km/km2
2.11
2.8
Transport
Number of traffic victims
persons/km
2.31
1.2
Transport
Distribution of passengers flow by types of transport
Public/private/ alternative share
52/48/02
50/40/10
Transport
Average speed of movement of overland public and automobile transport during rush hours10
km/hour
232
40
Transport
Size of roads requiring repairs
%
852
<15
Housing and public utilities
Length of electricity distribution networks
km/1 000 persons
4.21
9.4
Housing and public utilities
Density of electricity distribution networks
km/km2
13.91
40
Housing and public utilities
Length of water supply pipes
km/1 000 persons
1.51
3.6
Housing and public utilities
Density of water supply pipes
km/km2
51
15.3
Housing and public utilities
Length of sewerage network
km/1 000 persons
0.91
3
Housing and public utilities
Density of sewerage network
km/km2
3.11
12.8
Housing and public utilities
Share of water losses from general consumption
%
201
5
Housing and public utilities
Degree of wear of electric transformer substations
%
412
<10
Housing and public utilities
Degree of wear of heating networks
%
522
<15
Housing and public utilities
Degree of wear of Desnianska and Dniprovska intake stations
%
752
<10
85
TARGET STRATEGY INDICATORS
AREA
INDICATOR
MEASUREMENT UNITS
CURRENT VALUE
TARGET VALUE
%
162
<5
t/km2/year
3331
250
Housing and public utilities
Share of buildings worn out by more than 40%
Environment
Emissions of harmful substances
Environment
Share of solid household waste processing
%
51
40
Environment
Share of re-equipped systems of environmentally unsafe sewerage and cleaning constructions
%
152
75
Environment
Share of regenerated polluted territories
%
02
100
Environment
Share of companies using the environmental and social management procedures (ISO 14000, EMAS)
%
42
50
Environment
Generally accessible existing green zones
m2/citizen
162
20
Culture
Number of visits to museums per a citizen
visitors/city citizens
1.51
2.8
Culture
Number of visits to theaters per a citizen
visitors/city citizens
0.41
1.2
Culture
Number of galleries11
galleries/ 100,000 persons
1.421
3.22
Tourism
Number of entering tourists12
mln persons
16
2.6
Tourism
Average stay duration
days
2.16
3
Tourism
Number of rooms in hotels
thousand pcs.
106
18
Tourism
Average annual rooms loading
%
336
68
Tourism
Share of incomes from tourism in GRP
%
0.72
min. 2.5
Health care
Life expectancy at birth
years
72.71
79.8
Health care
Primary disease frequency
persons
966.61
777.3
Health care
Mortality rate at employable age
cases/1,000 citizens
3.76
2.6
Health care
Share of expenses on primary medical assistance in general health care expenses
%
8â&#x20AC;&#x201C;106
20â&#x20AC;&#x201C;30
Health care
Introduction of contractual relations, changed approaches to financing
yes/no
no6
yes
Health care
Average number of work of a bed in a hospital
days
2976
330
Health care
Average duration of treatment in a hospital
days
116
6
Health care
Mortality rate among children during the first year of life
cases/1,000 newborn
7.56
4
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TARGET STRATEGY INDICATORS
AREA
INDICATOR
MEASUREMENT UNITS
CURRENT VALUE
TARGET VALUE
101
8
641
78
Education
Students/teachers ratio in schools
Education
Quality of education (Newsweek)
Education
PEI children/teachers ratio
92
7
Education
Students/teachers ratio in vocational training educational institutions
212
18
Education
PEI number of children/PEI number of places ratio (%)
%
1122
92
Education
Teacher’s salary/average salary
%
742
100
Education
Turnover index of pedagogical staff
%
122
3
Education
Number of educational institutions in need for capital repairs
3772
40
Education
Number of employed graduates of vocational training educational institutions
%
872
95
Safety
Number of crimes
crimes/ 100,000 persons
12.81
8.5
Safety
EIU complex safety rating
rating
701
78.9
Social protection
International household incomes inequality index
-
0.412
0.33
Social protection
Number of workplaces for persons with NFA
places
02
500
Social protection
General number of persons with NFA to the number of persons in institutions for person with NFA
%
2302
100
Labor market
Unemployment rate among persons aged 15–70
%
5.82
3
Labor market
Average salary level
euro/person
3152
>1 100
Labor market
Unemployment rate ratio among economically active women to Unemployment rate ratio among economically active men
-
1.32
1
rating
1. 2. 3. 4.
Current value of the indicators included in the liveability index for 2009 for the purposes of comparison with other cities Current value for 2010 Current value – average annual increase for 2004–2009, target value for 2010–2025 The livability index calculated using the methodology that was developed and adapted taking into consideration the possibility of caparison of statistic indicators with international data for the purposes of the Kyiv City Development Strategy Until 2025 based on the data for 2009. 5. According to the estimates of the Institute of Demography and Social Research of the National Academy of Sciences of Ukraine in 2011. The difference from the 2008 estimates used for the General Plan purposes is insignificant – 3.14 mln persons. 6. Current value for 2009 7. Including the estimated average annual deflator for 2010–2025 totaling 6.1% 8. Length of the public transport lines (bus + trolleybus + subway + tram) 9. Including forests, landscaped areas, water mirror, built-up and industrial territories 10. According to the analytical center SMlink (Yandex Maps) 11. Significant public and private galleries as agreed upon by the experts in this sphere 12. Including internal and international entering tourists
87
GLOSSARY OF TERMS
NOTION
DEFINITION
20/20/20
An agreement reached by the EU cities on reduction of greenhouse gas emissions by 20%, reduction of the GRP energy consumption by 20%, and the use of 20% renewable energy generation from green and alternative sources before 2020.
Computerized Traffic Control System (CTCS)
A set of software and technical tools and means aimed at ensuring safety of automobile and pedestrian flows movement, reducing transport delays and improving environment using the color light signaling, video control, traffic sensors, etc.
Agglomeration
A compact cluster of settlement, mainly urban, that sometimes fuse together and that are united in a complex multi-component dynamic system with intensive production, transport and cultural connections. The boundaries of urban agglomerations are defined as the extreme points of commuter migrations. There are monocentric and polycentric agglomerations.
Business incubator
An organization the main task of which is to support small newly created firms and starter companies that want but cannot start their own business. A business incubator can be autonomous, i.e. an independent economic unit with the rights of a legal entity, or it can act as part of a technological park (in this case, it can be called a “technology incubator”).
Budget
A balance of the planned incomes and expenditures of a city for a certain period (a year). A city budget contains: • a list of expenditure programs: on education, on health care, and so on; • a list of sources of incomes.
Gross Regional Product (GRP)
A sum of gross added values of goods and services newly created by the region residents. The volume of the added value by types of economic activities is calculated in terms of the basic prices, i.e. they do not include taxes on products but they include subsidies on products.
Secondary health care and sanitary assistance
Health care services provided by health care specialists on an outpatient basis and in general hospitals. This notion does not include, on the one hand, provision of primary medical assistance (provided on an outpatient basis by general practitioners) and, on the other hand, provision of technology intensive health care services in hospitals of the general national and regional level.
General Plan (Layout)
Urban planning documentation defining urban planning of the territory development of towns and villages. The General Plan is the main urban construction document that in the interests of population and the state identifies: • conditions for creation of environment for vital activities; • areas and boundaries of development of territories of towns and villages; • territory zoning; • development of engineering, transport and social infrastructures; • urban construction requirements for preservation of historical and cultural heritage artifacts and natural territories under special protection, environmental and sanitary wellbeing.
Public-private partnership (PPP)
A totality of the forms of mid-term and long-term cooperation between the state and business for resolution of socially important tasks on mutually beneficial terms. Involvement of private business by state and (or) municipal bodies for provision of technical services, maintenance, reconstruction, modernization or construction of new social infrastructure objects and provisions of public services using such objects with division of risks, competencies and responsibility as provided for in the contract and all normative documents applicable at the moment of signing thereof.
Budget deficit
The amount of excess of the expenses of the city treasury over its incomes during each budget year calculated as percentage of expenses.
PEI
Pre-school educational institutions.
E-document flow
The use of special computer software for creation, exchange, approval, storage and registration of documents.
E-government (EG)
The use of modern information technologies for organization of work of government bodies and their interaction with citizens (G2C), business (G2B), other government bodies (G2G) and their employees (G2E).
88
GLOSSARY OF TERMS
NOTION
DEFINITION
ERP (Enterprise Resource Planning)
An integrated system based on information technologies for management of internal and external resources of an organization (significant physical assets, financial, material, technical and human resources). The system goal is to facilitate information flows among all departments inside the organization and to provide information support for communication with other organizations.
Housing and public utilities
A set of sub-areas that ensures functioning of an engineering infrastructures and residential houses, creates amenities and comfort for citizens’ living and staying in them by providing a large range of housing and utility services.
HLS
Healthy lifestyle.
Investment climate
A totality of social, economic, political and financial factors that determine the level of attractiveness of the investment market and the size of investment risk.
Engineering infrastructure
Engineering systems, networks or communications – the systems that support vital activities of consumers (citizens, housing and utilities, industrial enterprises). They include water supply, sewage, electricity, heat, gas and cold supply as well as phone communications.
Traffic victims
The number of injured and dead people.
KPI (Key Performance Indicators)
An evaluation system that helps an organization to measure achievement of strategic and tactical (operational) goals on the basis of clearly defined, measured and coordinated indicators. Their use enables an organization to evaluate its situation and help to assess strategy implementation.
PTF
Prevention and treatment facility.
Small business
Business with the number of employees up to 50, and turnover up to 70 million hryvnias
Gini International Incomes Distribution Index
A measure of the inequality of a distribution of incomes in the society demonstrating the level of deviation of the actual volume of distribution of citizens’ incomes from the line of their equal distribution. Its value for equal distribution is 0, and for absolute inequality, it is 1. The growth of Gini index means a disorder in the reproduction process in the sphere of distribution and redistribution of the gross added value.
Micro-enterprises
Companies belonging to private entrepreneurs with only one employee.
SMB
Small and medium-size business.
Multimodal transport system
Transport infrastructure, transport companies, transport facilities and the management system in general used for transportation of passengers and (or) cargos to the point of destination by two or more types of transport. Types of transport may be used in different combinations.
EI
Educational institutions.
Optimization of transport flows with the help of regulatory measures
Redirection of all vehicles that simultaneously take part in traffic on a certain part of the street and road network aimed at improving traffic efficiency – enhance safety, average technical speed of movement and convenience through changing some rules of functioning of the transport system
Persons with NFA
Persons with no fixed abode.
Primary health care and sanitary assistance
A totality of medical, social, sanitary and hygienic activities carried out at the primary level of contact of individual persons, families and social groups with the health care agencies. The main functions include ensuring the first contact with the health care system, providing the basic medical and prevention assistance as well as assisting patients in coordination and integration of health care services. Such assistance is carried out mainly by therapists, pediatricians, general practitioners, family physicians, medical assistants and nurses.
Subsidiarity principle
Organizational and legal principle, according to which the tasks are to be carried out at the as low, small or the most remote from the center level as makes their performance possible and efficient.
Foreign direct investments (FDI)
Foreign investments that are high enough to enable the investor to establish efficient control of the company management and create long-term interest in successful functioning and development of this company. According to the IMF methodology, these are international vestments that cover ten or more percent of shares with a right to vote.
89
GLOSSARY OF TERMS
NOTION
DEFINITION
SanPIN
Sanitary Regulations and Standards.
Medium-size business
Business with a number of employees up to 250, and turnover up to 100 million hryvnias.
Average annual load of the hotel room capacity
A coefficient calculated as a total annual number of nights when rooms were occupied divided by the total number of rooms multiplied by the number of days in a year.
City development strategy
A document that sets forth the main goals and tasks fir the city, the most important strategic development areas and the principal activities aimed at achieving the identified goals. The strategy is related to the following financial and program documents: • target programs, each of which is a totality of activities aimed at tasks solving – means to fulfill the vision of the sector/city development; • budget programs, each of which is a totality of activities aimed at achieving a goal following from the strategy with the help of budget funds. Activities are identified and implemented by the manager of budget funds within the respective terms of reference. Below, there are elements of a strategic plan on the example of the Transport and Transport Infrastructure sector.
1-3 years
3-5 years
15 years
DOCUMENT
Strategy
Target program
Budget program
EXAMPLE
USED TERMS
Improved living standards
Strategic Plan goals
Enhanced mobility and development of transport infrastructure
Strategic Plan priorities
Guaranteed accessibility, traffic capacity, higher quality/comfort
Strategic Plan tasks
Roads construction/maintenance
Target Program goals
Reconstruction of certain road X, bridge Y, ...
Target Program tasks and activities
Reconstruction of road X-Y, span 1, 2
Budget Program goals
Design specifications and estimates
Budget Program tasks
Insurance medical assistance
Financing of medical assistance from a priory created funds formed on the basis of payments by citizens, companies and the state. The insurance object is a risk related to the costs resulting from occurrence of the insurance event (a disease, a need for medical assistance). The model is based on a priory accumulation of small payments from individual insurance policy holders and their payment to individual policy holders in the case of occurrence of the insurance event. A health insurance scheme is one of the insurance forms.
Tourist card of a city guest
A card that against a fixed payment enables a tourist to visit the main city sightseeing places free of charge or at a discount price.
CEE
Central and Eastern Europe.
90