IVANO-FRANKIVSK CITY

IVANO-FRANKIVSK CITY INVESTMENT MANIFEST

This document is intended for potential Ukrainian and foreign investors seeking to invest in the City’s social and economic entities.

2015

IVANO-FRANKIVSK CITY. Investment Manifest

CONTENTS

Introduction 1

............................................................................................................................................... 3

About the City ............................................................................................................................................................ 5

1.1.

1.2.

1.3.

General Information ............................................................................................................................................ 5 Historical Information ............................................................................................................................................. 7 Legislative and Executive Branches of the City ............................................................................................... 7

2

Key Activities of the City Government ..................................................................................... 11

2.1.

2.2.

2.3.

2.4.

2.5.

2.6.

2.7.

General Information ............................................................................................................................................. 11 Education and Culture ........................................................................................................................................... 12 Health Care ............................................................................................................................................................. 15 Social Protection .................................................................................................................................................... 16 Construction. Urban Development and Architecture .......................................................................... 17 Transport and Road Infrastructure ............................................................................................................ 18 Housing and Utilities Sector ............................................................................................................................... 19

3

Social and Economic Development and Potential of the City .................................................... 22

3.1.

3.2.

3.3.

3.3.1.

3.3.2.

3.4.

Demographics, Employment and Incomes of Population. Development of Small Businesses ......... 22 Industrial Sector ........................................................................................................................................................ 25 Investment and Foreign Economic Activities ................................................................................................. 28 Foreign Investments ................................................................................................................................................. 28 Foreign Economic Activity of Companies and Organizations ......................................................................... 31 Retail and Catering .............................................................................................................................................. 33

4

Tourism ..................................................................................................................................................................... 34

5

Budget Profile ....................................................................................................................................................... 36

5.1.1. Introduction to Ivano-Frankivsk Budget ............................................................................................................. 36

6

Regulation of Investing Activities in the City ................................................................................. 39

7

Regulation of Privatization and Lease of Municipal Property and Land ...................................... 43

7.1.

7.1.1.

7.1.2.

7.1.3.

7.2.

7.2.1.

7.2.2.

7.2.3.

Regulation of Land Relations .................................................................................................................................... 43 Procedure of Municipal Land Sale .................................................................................................................... 44 Procedure of Lease of Municipal Land ............................................................................................................... 46 Rental Fee Calculation Mechanism .................................................................................................................. 47 Regulation of Change of Ownership and Availability of Municipal Property .......................................... 48 Privatization of Municipal Property ................................................................................................................... 49 Lease of Municipal Property ............................................................................................................................. 50 Rental Fee Calculation Mechanism .................................................................................................................. 52

8

Rating History of the City .............................................................................................................................. 52

9

List of the City’s Investment Projects .................................................................................................... 53

10

Available production areas ............................................................................................................................ 58

2

IVANO-FRANKIVSK CITY. Investment Manifest

Introduction This document is intended for potential Ukrainian and foreign investors seeking to invest in the City’s social and economic entities. The investment manifest describes the City’s social and economic sectors, key activities of the City’s leadership, specifics of the regulatory environment relating to investments, regulations concerning land issues and use of municipal property.

Key drivers of the City’s investment attractiveness: Proximity to the European Union and main European consumers.

Access to the Ukrainian and the CIS markets; established traditions of commercial relations with both Europe and Russia, and the CIS countries.

High quality of life compared with other Ukrainian regions; good recreational and tourism potential, attractive cultural and tourism sectors.

Substantial resource potential of the region.

Skilled workforce, which is easily adaptive to the market.

High level of education and well trained workforce (special educational institutions train employees for the manufacturing, trade, financial and tourism sectors, etc).

Highly developed communication and transport infrastructure; accessibility of railways for economic entities; operating international airport with a high development potential.

Privileged regime of the local government for investors, transparent administrative procedures, comprehensive support for investment projects.

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IVANO-FRANKIVSK CITY. Investment Manifest

Key social and economic figures of the City for 2010-2014 vs. Ukraine’s national indicators are given in the table below.

TABLE 1. KEY FIGURES OF THE CITY’S SOCIAL AND ECONOMIC DEVELOPMENT 2010

2011

2012

2013

2014

Growth*, %

241.1

241.7

243.7

245.6

247.8

100.9

1,981.0

2,258.0

2,533.0

2,702.0

2,918.0

108.0

2.9

5.1

7.4

6.4

7.4

115.6

Sales of goods at manufacturer’s prices, UAH millions

2,954.3

4,294.9

3,819.2

3,997.6

4,263.6

106.7

Foreign direct investments as at period-end, USD millions

113.7

199.2

188.9

338.7**

505.3

149.2

Foreign trade turnover, USD millions

392.5

385.9

420.0

466.9

431.2

92.4

Residential property commissioned, thousand sq. m.

202.7

297.2

209.5

284.6

381.3

134.0

Retail sales, UAH millions

2,558.4

3,400.6

3,887.7

4,225.8

4,881.2

115.5

Average sales of industrial products per capita, UAH

12,253.4

17,769.5

15,671.7

16,277.1

17,205.8

105.7

471.6

824.2

775.2

1,379.3

2,039.2

147.8

1,627.8

1,596.8

1,723.4

1,901.1

1,740.1

91.5

840.7

1,229.4

859.7

1,158.9

1,538.7

132.8

10,611.4

14,069.5

15,952.8

17,206.0

19,698.1

114.5

Monthly average salary, UAH

2,239.0

2,633.0

3,026.0

3,265.0

3,480.0

106.6

Average sales of industrial products per capita, UAH****

23,282.8

29,186.6

30,748.4

29,809.5**

27,850.5

93.4

976.6

1,081.7

1,195.6

1,280.3

1,069.6

83.5

2,450.3

3,309.0

3,369.0

3,088.0

2,522.7

81.7

204.0

206.2

236.0

246.9

226.9

91.9

5,998.4

7,593.0

8,887.7

9,449.2

10,183.7

107.8

Description

IVANO-FRANKIVSK: Population as at period-end, thousands Monthly average salary, UAH Arrears of salaries as at period-end, UAH millions

Foreign direct investments per capita, USD Foreign trade turnover per capita, USD Total area of residential property commissioned per 1000 of residents, sq. m.

Retail sales per capita, UAH

UKRAINE:

Foreign direct investments per capita, USD Foreign trade turnover per capita, USD Total area of residential property commissioned per 1000 of residents, sq. m.

Retail sales per capita***, UAH

* ** *** ****

growth in 2014 vs. similar period of the previous year adjusted data excluding temporarily occupied territories of the Autonomous Republic of Crimea and Sevastopol City excluding temporarily occupied territories of the Autonomous Republic of Crimea and Sevastopol City, and а part of anti-terrorist operation area Source: Executive Committee of Ivano-Frankivsk City Council, the State Statistics Committee

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IVANO-FRANKIVSK CITY. Investment Manifest

1 ABOUT THE CITY 1.1. General Information Ivano-Frankivsk City is an administrative, economic and cultural centre of Ivano-Frankivsk Oblast and Precarpathian region of Ukraine. The City is located in southern west of Ukraine, 15-300 km from borders with Poland, Romania, Hungary and Slovakia.

Ivano-Frankivsk is the city of regional significance; it has a high industrial and economic, and scientific potential, and good possibilities to develop interregional and international relations. The City’s potential is underpinned by the vicinity of the Carpathians, which is a unique area for tourism and recreation.

ВОЛИНСЬКА

РІВНЕНСЬКА

ЧЕРНІГІВСЬКА СУМСЬКА

ЖИТОМИРСЬКА

ЛЬВІВСЬКА

КИЇВСЬКА

ТЕРНОПІЛЬСЬКА ІВАНОФРАНКІВСЬКА ЗАКАРПАТСЬКА

ХМЕЛЬНИЦЬКА

ЧЕРНІВЕЦЬКА

ВІННИЦЬКА

ПОЛТАВСЬКА

ХАРКІВСЬКА

ЛУГАНСЬКА

ЧЕРКАСЬКА КІРОВОГРАДСЬКА

ДНІПРОПЕТРОВСЬКА

МИКОЛАЇВСЬКА

ЗАПОРІЗЬКА

ОДЕСЬКА ХЕРСОНСЬКА

АР КРИМ

FIGURE 1. LOCATION OF THE CITY IN UKRAINE; THE CITY MAP

5

ДОНЕЦЬКА

IVANO-FRANKIVSK CITY. Investment Manifest

The City’s area is 83.73 sq. km There are 5 towns subordinate to the Ivano-Frankivsk City Council, namely Krykhivtsi, Vovchynets, Ugornyky, Mykytyntsi, Khryplyn. The City is not divided into districts.

The population of the Ivano-Frankivsk City Council area is 247.8 thousand. The share of the City’s population in the Ukraine’s total population is 0.58%.

The City is connected with motor and rail roads with European and CIS countries. The Ivano-Frankivsk International Airport is suitable for all types of aircrafts. The distances from Ivano-Frankivsk City to the borders are as follows: Romania (Porubne customs station) — 180 km; Poland (Mościska customs station) — 200 km; Slovakia (Uzhgorod customs station) — 300 km; Hungary (Chop customs station) — 320 km.

The biggest number of working population is employed in sectors, such as industry, education, wholesale and retail trade.

The City has official connections with 22 foreign local governments; it is a member city of the Association of Ukrainian Cities, which has close relations with the Council of European Municipalities and Regions, the International Union of Local Authorities and the organization of sister cities; it is a member city of the international forum of historic centres, a full member of the Energy Efficient Cities Initiative, which is a collective member of the Energy Cities European Association; it is a signatory of the Covenant of Mayors, a European Commission initiative seeking to unite European local authorities in a voluntary association to jointly fight global warming; it is a member of the International Forum of Historic Cities in Graz (Austria); it is a member of the Ring of the European Cities of Iron Works Association, with Ybbsitz (Austria) as a forging hub; it is a member of the Partner Cities National Society, which is established in the framework of UNDP/MGSDP. The City is one of four Ukrainian cities awarded with the Diploma, the Honourable Flag, and the Plaque of Honour of the Council of Europe. In 2015, the City was among five nominees for the Europe Prize, the highest award by the Parliamentary Assembly of the Council of Europe.

In 2012, a quality management system was implemented in the Executive Committee of the IvanoFrankivsk City Council, which is compliant with ISO 9001:2008 and DSTU ISO 9001:2009.

Viktor Anushkevychus, the City Mayor, and the executive bodies of the Ivano-Frankivsk City Council have been ranked first in the Ukrainian publicity rating.

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IVANO-FRANKIVSK CITY. Investment Manifest

Today, the City is one of the most dynamic municipalities in the region, with both its economic and social sectors developing robustly

1.2. Historical Information The Ivano-Frankivsk City (until 1939: Stanyslaviv; until 1962: Stanyslav) emerged in late 17th century.

The official day of the City’s foundation is 7 May 1662, on which the settlement and the fortress were granted the Magdeburg rights, allowing three communities (the Ukrainian and Polish, the Jewish, and the Armenian) to establish own self-governments.

During January-May 1919 Stanyslaviv was the capital of the Western Ukrainian People’s Republic. After the World War II, the City became an industrial centre with numerous production facilities, cultural, education and medical institutions, and banks.

1.3. Legislative and Executive Branches of the City The City administration, through which the city community exercises the right for local government, includes: territorial community of the Ivano-Frankivsk City (with territorial communities of the towns of Vovchynets, Krykhivtsi, Mykytyntsi, Ugornyky and Khryplyn); the Ivano-Frankivsk City Council, the councils of towns of Vovchynets, Krykhivtsi, Mykytyntsi, Ugornyky and Khryplyn;

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IVANO-FRANKIVSK CITY. Investment Manifest

the Ivano-Frankivsk City Mayor, mayors of Vovchynets, Krykhivtsi, Mykytyntsi, Ugornyky and Khryplyn towns; executive bodies of the Ivano-Frankivsk City Council, executive bodies of Vovchynets, Krykhivtsi, Mykytyntsi, Ugornyky and Khryplyn town councils; bodies of self-organization of population in the Ivano-Frankivsk City, which include bodies of selforganization of population in Vovchynets, Krykhivtsi, Mykytyntsi, Ugornyky and Khryplyn towns.

The Ivano-Frankivsk City territorial community exercises its right for self-government both directly and through the Ivano-Frankivsk City Council and its executive bodies.

The City Council may allow bodies of self-organization of population to act in the city. These are representative bodies established by the citizens lawfully residing in the City. Their objectives are as prescribed by the Law of Ukraine On Bodies of Self-Organization of Population.

The Ivano-Frankivsk City Council

is a body of local self-government representing the Ivano-Frankivsk City territorial community and territorial communities of towns subordinate to the Council, namely Vovchynets, Krykhivtsi, Mykytyntsi, Ugornyky and Khryplyn. On behalf and in the interests of the communities, the Council performs functions of local self-government as per the Constitution of Ukraine, the Laws of Ukraine On Local Self-Governments in Ukraine, On Status of Local Council Deputies, the European Charter of Local Self-Government and other acts of law. The Ivano-

Frankivsk City Council operates pursuant to Article 26 of the Law of Ukraine On Local Self-Governments in Ukraine.

The Council is an elective body made up of deputies. There are 60 deputies in the Ivano-Frankivsk City Council: 30 elected in single-mandate electoral districts and 30 representing political parties. The City Council operates through sessions. The City Council sessions include plenary meetings and meetings of standing commissions. The sessions are convened by the City Mayor as required and in accordance with the law, but no less than once in a quarter.

The City Council’s standing commissions are set up at the session of a newly elected council for the period of its term for examination, preliminary review and preparation of issues within their competence. They oversee execution of the Council’s and its executive body’s resolutions, and facilitate execution of these resolutions in the City. It should be noted that under the laws on self-government, the City Council may establish temporary commissions to address specific issues.

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IVANO-FRANKIVSK CITY. Investment Manifest

Main mode of the standing commission’s operation is a meeting. The meetings are convened by the commission chair as required but no less than once in a quarter.

Currently, there are the following standing commissions in the Ivano-Frankivsk City Council: mandate commission, which addresses work of deputies, ethical issues, protection of human rights, interaction with law enforcement authorities and mass media; standing commission on finance, pricing and budgeting; standing commission on construction, architecture, land relations, environmental protection and rural development; standing commission on housing and utilities, transport and communications; standing commission on industry, entrepreneurship, strategic urban development, investments and tourism; standing commission on health care and social protection; standing commission on spiritual revival, science, education, culture, youth policy and sport; temporary commission on lease and privatization of municipal property, tenders and distribution of housing stock.

The Executive Committee is an executive body of the Ivano-Frankivsk City Council,

which is subordinate to and controlled by the City Council. The Executive Committee’s activities are regulated by the Law of Ukraine On Local Self-Governments and other regulations, under which and within its authority it may make decisions that are mandatory for all entities, institutions, and organizations regardless of their types of ownership, as well as for officials and individuals in the city. After expiration of the council’s term the Executive Committee retains its authority until a new executive committee is formed.

The City Mayor

is the supreme official of the city’s community, he/she presides at its meetings and heads the City Council’s Executive Committee ex officio. The City Mayor appoints and dismisses heads of departments, functions, enterprises, institutions and organizations, which are community property of respective territorial communities, except for heads of preschool, general education and non-school educational institutions.

Viktor Andryusovitch Anushkevychus was elected the IvanoFrankivsk City Mayor.

In 2002, Mr. Anushkevychus was firstly elected to the IvanoFrankivsk City Council, where he joined Our Ukraine election bloc. Eventually, he became the chair of the council’s supervisory commission on privatization and lease of community property.

In 2005, he became the chair of the regional organization of the Ukrainian People’s Party. He gained 50% of votes at mayor elections in 2006 and became the Ivano-Frankivsk City Mayor. In 2010, he was reelected for the second term.

The authority of the Ivano-Frankivsk City Mayor is established by Article 42 of the Law of Ukraine On Local Self-Government.

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IVANO-FRANKIVSK CITY. Investment Manifest

STRUCTURE Executive Committee of Ivano-Frankivsk City Council

CITY COUNCIL CITY MAYOR

EXECUTIVE COMMITTEE

Support Service

First City Mayor Deputy

City Council Secretary

Legal Department Accounting and Reporting Department Department for Law Enforcement Agencies, Defence and Mobilization

Urban Development and Architecture Department Capital Construction Function

Administrative Services Function (Ivano-Frankivsk Administrative Service Centre)

Housing Record-Keeping and Distribution Department

Department for Emergencies

Territorial Community Property Fund

Quick Response Service Finance Function

Deputy City Mayor

Economic and Integrational Development Function Trade Function Assistant to Deputy City Mayor

Land Relations Function

Assistant to First City Mayor Deputy

Deputy City Mayor

Family, Youth and Gender Policy Function Education and Science Function Culture Function Physical Culture and Sport Committee Historical Heritage Protection Office Children Service City Centre of Social Services for Family, Children and Youth Social Policy Department Central City Clinical Hospital Assistant to Deputy City Mayor

10

Office of Support for Deputies Internal Policy Office Expert and Analytics Office

Deputy City Mayor

Department of Utilities, Transport and Communication Assistant to Deputy City Mayor

小hief Administrative Officer

Function for Organizational and Information Activities and Control Staff Office General Office General Service Office Office for Appeals of Citizens Office of the State Register of Voters Software and IT Support Office Administrative Commission Archive City Centre for Public Order Community Groups Assistant to 小hief Administrative Officer

IVANO-FRANKIVSK CITY. Investment Manifest

2 KEY ACTIVITIES OF THE CITY GOVERNMENT 2.1. General Information The City government’s main task is to ensure welfare of the public, and sustainable and balanced development of the City. In order to contribute to the growth of economy, increase competitiveness and quality of life, and meet interests of all sectors of the territorial community the City government has developed Strategy to Increase Competitiveness and Develop Economy of Ivano-Frankivsk for the period of 2011-2015.

Under this Strategy, the City government’s efforts focus on economic development as strategic partnership, which contributes to increasing efficiency of the local economy by attracting investments to existing and new high-potential companies, and creating conditions for long-term growth. The economic development focuses on creating maximum benefits and jobs through the implementation of competitive advantages to ensure dynamic and more stable development as compared with other regions.

There have been determined three key drivers of the local economy growth (attracting investments into the real sector; development of small and medium businesses; creating comfortable environment for living), and three priority areas (core sectors of the processing industry; education, scientific research and innovative businesses; and tourism).

The investment potential of any municipality is determined by multiple factors, such as state of technical infrastructure, availability of buildings and suitable sites for construction, availability of skilled workforce, business climate in the City and the City’s image, scope and number of services provided by the City.

Given the Ivano-Frankivsk’s well developed industrial sector, the City has a certain potential to prepare attractive proposals for investors. The City is developing its traditional sectors of food-processing, engineering, and woodworking, which have already attracted significant foreign investments. A significant investment role is played by the City’s Khryplyn Investment and Industrial Area, which has attracted large foreign investors.

The priority in the Ivano-Frankivsk economy is small business sector, which is a substantial source of proceeds to the City budget, new jobs, and investments in the City’s economy. Recent years saw rapid growth of small and medium businesses in the City, expansion of their activities, increased number and improved quality of their services.

The state of the community infrastructure and continuous provision of utility services have a direct impact on the quality of life, which is a substantial factor not only for the City’s population and their welfare, but also for development of existing and future businesses. The structural units of the City Council’s executive committee ensure effectiveness of the communal services and implementation of the newest energy-saving technologies. During the recent years, the City government has focused on the quality of services, transparency and establishment of more responsible relations between the City’s government and the public. Ivano-Frankivsk was the first in Ukraine to open Administrative Service Centre for the City’s citizens in October 2010. The Centre includes 10 communal services, Licensing Centre

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IVANO-FRANKIVSK CITY. Investment Manifest

and Registration Chamber, which provides administrative services in accordance with the Register of Administrative Services. This increased substantially the quality of services provided to the public.

To provide effective services to taxpayers, the Taxpayer Service Centre at the Ivano-Frankivsk State Tax Inspectorate was established in June 2011. The Centre provides a range of services, such as issuing permission documents and provision of tax advice; there has also been improved the process of tax report acceptance.

The public has a free access to all premises of the City Council, they may attend sessions of the City Council, meetings of the Executive Committee and deputy commissions. The web-sites of the Executive Committee and the City Council provide regular updates on activities of the City Mayor, executive bodies and deputies.

The City Council and its Executive Committee focus on maintaining and improving material base of educational, cultural and health care facilities.

2.2. Education and Culture Education.

The City government’s efforts in the area of education and science are aimed at implementation of Education in Ivano-Frankivsk 2012-2015 programme, which objective is to develop high-quality, efficient and affordable education system based on the community requirements, individual interests and state needs, and which is established on spiritual values of the Ukrainian people.

Institutions of Higher Education

10 (36,000 students)

General schools

40 (23,300 pupils)

Non-school educational institutions

11 (11,700 pupils)

Pre-school institutions and study and fostering complexes

33 (8,400 children)

The City is an important education centre, where education is provided to not only the region, but also to entire Ukraine. There are 10 institutions of higher education with ca. 36 thousand students, with 2.5 thousand of them being foreign nationals. Popular are humanitarian, economic, medical and law education, with the demand rising for technical professions as well. The percentage of non-resident students in IvanoFrankivsk institutions of higher educations is rising gradually. There are five higher education institutions of accreditation levels ІІІ-ІV, with three of them being public and two of them being privately owned.

The network of general schools consists of 38 municipally owned full-time educational institutions (23 thousand pupils) and two private schools (0.5 thousand pupils). Driven by population growth seen in the past years, the number of pupils has been growing, thus contributing to increase in the number of educational institutions. The average number of pupils in a form (together with private schools) is 25-26.

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IVANO-FRANKIVSK CITY. Investment Manifest

Non-school educational institutions are represented with 11 scientific, esthetical, recreational, military and patriotic, and sport institutions, where over 11 thousand pupils (or over 50% of total number in the City) study.

There are 28 pre-school institutions and five study and fostering complexes with 8.4 thousand children in the City. There is also a network of private pre-school groups. The last year saw growth in both the number of groups in pre-school institutions, and number of children in groups, driven by increase in their number in the City. The City government has been consistently working to expand this network by renovating premises, constructing new facilities and returning former premises into the community ownership.

The City government’s efforts in the area of education focus on retaining and improving network of general education facilities, and implementing new standards of elementary and basic education. There has been created a presentation website of education in Ivano-Frankivsk City, and implemented a general electronic register of children to be admitted to the City’s preschool institutions.

The City’s education sector is actively cooperating internationally. Over 30 preschool, general and nonschool institutions have 36 partners in Poland, Lithuania, Germany, and France, with whom they have jointly conducted international events.

The City government is also undertaking to improve material base of education sector, reconstruct and overhaul premises, and ensure technical re-equipment, etc. The City is actively cooperating with NEFCO in the area of energy efficiency. The last year saw completion of Raising Energy Efficiency in Buildings of IvanoFrankivsk Education Institutions project in nine institutions funded with the city budget funds and NEFCO loan.

Culture. The City government’s efforts in the area of culture focus on increasing spiritual and

intellectual potential of the community, preservation of national and cultural heritage, ensuring public access to cultural assets.

Cultural institutions of club type

9

City’s centralized library system

19

Specialized elementary art schools

5

Other cultural institutions

2

Municipal creative groups

7

Creative groups

98

Art groups

20

The City government’s efforts focus on retaining and improving the existing network of cultural and art institutions, enhancing their material base, satisfying cultural and spiritual needs of the public, supporting talented youth, strengthening and expanding cultural and art relations. Main efforts focus on consolidation of the community, promotion of dialogue, charitable actions, national and patriotic events, and cultural work. There is a comprehensive programme Support and Development of Culture in IvanoFrankivsk 2012-2015, and Spiritual Life 2013-2015 programme.

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IVANO-FRANKIVSK CITY. Investment Manifest

The cultural institutions actively cooperate with the City’s civil society organizations, schools and gymnasiums, clubs and other organizations. Every year, the employees of cultural institutions undertake to introduce new interesting and meaningful events. To improve Ivano-Frankivsk image and attract tourists the City is actively developing festival tourism.

Given below are the most important art events in the City:

D. Sichynsky all-Ukrainian Contest of Choral Music; Dovbush-Fest Festival of Freedom; Holiday of Wine and Grape Festival; Peredzvin International Festival of Choral Music; Holiday of Blacksmiths International Blacksmith Festival; S. Nazarenko Fotoportret National Competition; Vasyl Barvinsky Regional Competition for Young Pianists; Mykola Lysenko Young Musicians Competition; Competition for Young Musicians Playing Wind and Percussion Instruments; I. Malanyuk all-Ukrainian Vocalist Competition; Vogni Ratushi International Children Festival of Arts; Talents of Galicia Children and Youth Festival of Arts; Vgoru Sertsya Festival of Christian City; Kolyada na Maizlyakh Christmas Festival; From Christmas to Easter Spiritual Music Fest; Fest – Festival of Variety and Sports Dance; Prykarpatsky Vernisazh Festival of Arts and Crafts; Svyato Khliba Fair-Exhibition; Carpathian Culinary Heritage Festival; Stanislavivska Marmulyada Festival; Melodies of Park City Festival of Arts.

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IVANO-FRANKIVSK CITY. Investment Manifest

2.3. Health Care The City government efforts in the health care area focus on management of medical institutions owned by the territorial community to ensure provision of affordable expert medical assistance to all individuals, and create conditions for development of physically and psychologically healthy individuals.

City Central Clinical Hospital

In-patient clinic for 470 beds

City’s Children Hospital, Policlinic (a division of the hospital)

In-patient clinic for 150 beds (including that of the Policlinic)

City Clinical Maternity Hospital

In-patient clinic for 215 beds

City Clinical Hospital

In-patient clinic for 240 beds

City policlinics, including dentist clinics

6 institutions

Ambulance station

1 institution

The City is actively enhancing the quality of medical services. The extent of researches by diagnostic facilities is gradually increasing. The institutions implement new methods of treatment and diagnostics.

Based on study of best practices of European and U.S. hospitals, there has been opened a new admission room in the central clinical hospital, which also became an emergency unit. The quality of services for outpatients has been improved after opening a consulting policlinic, which is a new unit of the central clinical hospital. This contributed to improving quality of medical services. There are various efficient outpatient forms of medical services, which help reduce inflow of patients to inpatient clinics.

There are a range of target programmes approved in the City: Prevention of HIV Infection, Aid and Treatment for HIV Infected and Patients with AIDS, Prevention of Oncological Diseases Programme to 2016, Prevention and Treatment of Cardiovascular and Cerebrovascular Diseases Programme, Reproductive Health of Nation Programme, Healthy Teeth – Strong Health – Better Quality of Life Programme for 20142020, etc.

The City government undertakes to improve material base of medical institutions. With funding from various sources, the diagnostics and treatment equipment is procured. Overhauls in medical institutions of the City are performed consistently.

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IVANO-FRANKIVSK CITY. Investment Manifest

2.4. Social Protection The City government’s efforts in the area of social policy focus on social security and social protection of the people in need of state support. These efforts include overseeing compliance with respective laws, developing and implementing municipal social programmes, and supporting socially vulnerable groups of the public.

SOCIAL PROTECTION IS ENSURED BY: Family, Youth and Gender Policy Function Children Service City Centre of Social Services for Family, Children and Youth Social Policy Department Ivano-Frankivsk Territorial Centre of Social Services The St. Nicholas Town of Mercy Municipal Social and Rehabilitation Centre of Mother and Child Nigh stay house.

Assistance recipients registered (18.8 thousand)

Currently, one of the main objectives of the local government in the area of social protection is implementing European standards of social services, their targeting, simplifying document procedures.

Specifically, there has been implemented a unified procedure of reception of citizens within Improving System of Social Services project, which eliminated queuing.

An innovative approach to social services is represented with interdisciplinary teams, which provide integrated social services to people in difficult situations, who need assistance at home.

There has been established the Expert Council within the executive body of the Ivano-Frankivsk City Council, which main objective is to consider applications of the City’s residents requesting medical assistance.

The City government also undertakes to provide accommodation to internally displaced persons from temporarily occupied territories of Ukraine and areas affected by anti-terrorist operation.

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IVANO-FRANKIVSK CITY. Investment Manifest

2.5. Construction.

Urban Development and Architecture The work on adjustment of Ivano-Frankivsk master plan and historical and architectural key plan have been completed.

A consistent work on archaeological surveys and large-scale excavation is being performed in the City centre, giving new evidence on the City’s history and development, and structure. There is Cultural Heritage Protection Programme 2012-2015 developed and implemented in the City. There is an extensive archaeological survey of remnants of Stanislaviv Fortress. The recovery and tracing of ancient Stanislaviv fortress has been planned. The reconstruction work at Pototsky Palace buildings has been commenced.

Detail surveys of historical sites are performed with subsequent proposals for their adaptation. A comprehensive town hall reconstruction programme is being developed.

There has been resumed cooperation with the EU and the Council of Europe with participation of the Ministry of Culture of Ukraine within the COMUS project (Community-led Urban Strategies in Historic Towns), where Ivano-Frankivsk is one of pilot Ukrainian cities within the Council of Europe’s Eastern Partnership Facility.

Housing stock (as at 01.01.2015)

6.148 mln.m2

Supply of housing (as at 01.01.2015)

25.1 m2 per person

Multifamily buildings (2014)

81% of total area

Individual (manor) buildings (2014)

19% of total area

To improve the City’s transport infrastructure there is performed a road construction work. There are also overhaul work conducted at medical facilities, and construction and renovation work at educational facilities.

17

IVANO-FRANKIVSK CITY. Investment Manifest

Contrary to Ukraine in general, Ivano-Frankivsk maintains positive dynamics of residential construction (the indicator of the total area of residential property commissioned per 1,000 residents is one of the highest in Ukraine, exceeding Ukraine’s average level almost seven times.

Ivano-Frankivsk Oblast is the third by residential property commissioned after Kyiv and Lviv Oblasts.

2.6. Transport and Road Infrastructure Ivano-Frankivsk City is the key regional transportation hub. It is located on international railway line to the Romanian border and motor roads of state significance (international, national and regional roads), and which is a location of various passenger and cargo transportation facilities of different types.

The City’s external transport connections are represented with three modes: the air transport, the railways, and the motor transport. They connect the City with all regional centres of Ukraine, as well as with certain cities in Russia, Moldova, Poland, Czech Republic, and Slovakia.

There is Ivano-Frankivsk railway hub within the City, serving four directions: Lviv, Chernivtsi, Rahiv and Stryi.

18

IVANO-FRANKIVSK CITY. Investment Manifest

Key elements of Ivano-Frankivsk motor road hub are the following motor roads of state importance: N-09 NATIONAL MOTOR ROAD,

(Mukacheve – Ivano-Frankivsk – Rogatyn – Lviv (through Rakhiv);

N-10 NATIONAL MOTOR ROAD,

(Stryi – Ivano-Frankivsk – Chernivtsi – Mamalyga (to Chisinau);

N-18 NATIONAL MOTOR ROAD, (Ivano-Frankivsk – Buchach – Ternopil).

There are four bus stations and bus terminals in Ivano-Frankivsk. The bus stations and bus terminals are arrival and departure points of international, intercity and suburban routes.

The airport is located 4.4 km from the City. The airport has an international status since 1992 being an air gate to Precarpathian region. Ivano-Frankivsk airport is a class B airport being a diversion airport for the cities of Lviv and Chernivtsi. The airport is located 150-180 km from the borders with Poland, Slovakia, Romania, and Hungary.

Urban transport. Currently, there are 47 routes in the City served by small-capacity buses; two bus routes, and 10 trolleybus routes. The trolleybus routes and two bus routes are served by DKP Elektroavtotrans.

As at 1 January 2015, there were 56 trolleybuses and 6 buses on the entity’s balance sheet.

In 2011, EasyWay project was implemented in the City, which helps navigate in the City and gives advice on which mode of public transport to choose. Additionally, in 2015 there was implemented an innovation which helps city residents monitor traffic of small capacity buses and estimate their arrival time. This innovation makes use of urban transport easier, and allows for monitoring of schedule and bus traffic.

The City Council is responsible for use and maintenance of roads within the City; it allocates financing for road reconstruction and maintenance work.

2.7. Housing and Utilities Sector Housing and utilities is a complex sector encompassing housing, water supply and sewage, energy supply, heat supply, urban electric transport, urban amenities, road network, sanitary cleaning (street and building cleaning with disposal of solid household and food waste), greenery maintenance (gardening and floriculture), ritual services, repair and construction work, installation, overhaul and maintenance of lifts, capital construction, design and technology activities, etc.

19

IVANO-FRANKIVSK CITY. Investment Manifest

List of the City’s utility entities and their functions are given in the table below.

Municipal entities subordinate to the Department of Utilities, Transport and Communication Ivano-Frankivskteplokomunenergo State Urban Entity

Central heating and hot water supply

Ivano-Frankivskvodoekotechprom Municipal Entity

Water supply and sewage

Elektroavtotrans State Municipal Entity

Passenger transportation

Road Repair and Maintenance Service Municipal Entity

Building, repair, maintenance of roads, mechanized and manual cleaning

Misksvitlo State Enterprise

Outdoor lighting, maintenance of traffic lights

Emergency Service of ERC Municipal Entity

Emergency work at residential and nonresidential facilities

Municipal Ritual Service Municipal Entity

Ritual services, maintenance of cemeteries, monuments, etc.

Taras Shevchenko Culture and Recreation Park

Maintenance of municipal parks and lakes

Lift-Frankivsk Municipal Entity

Technical maintenance and repair of lifts

Tehchnical Centre Service-Avto Municipal Entity

Car parking

Poligon TPV Municipal Entity

Maintenance of solid domestic waste landfill Repair and maintenance work

Dyrektsiya Zamovnyka Municipal Entity

Management of housing stock

Municipal Inspectorate for Urban Amenities

Control over compliance with urban amenities-related regulations

General Settlement Centre Municipal Entity

Charging and control over utility payments

The Department of GSD, Transport and Communication oversees use of property of open joint-stock companies: ATP-0928 Open Joint-Stock Company

Disposal of solid domestic waste, sanitary cleaning

Zelene Gospodarstvo Open Joint-Stock Company

Amenities and greenery

20

IVANO-FRANKIVSK CITY. Investment Manifest

Due to unsatisfactory state of material base of the City’s housing and utility sector (i.e. housing stock, utility and transport infrastructure) the sector requires reforms. Key steps to develop and reform the City’s housing and utility sector are given in the following programmes: Reforms, Order, Development – a comprehensive programme to reform and develop Ivano-Frankivsk housing and utility sector for 2011-2015; Thermal modernization programme for Ivano-Frankivsk housing stock for 2013-2015; Road infrastructure modernization programme; Programme for development of public transport stops for 2013-2015; Bicycle infrastructure development and popularization of bicycles programme for 2015-2020; Cemetery maintenance programme.

The City government regularly revises tariffs for utility services to achieve balance between the financial capacity of the public and the cost of services. Currently, the tariffs have social nature and do not cover all costs of housing and utility entities. In addition, there is a practice of concluding long-term debt restructuring agreements with financially incapable consumers.

TABLE 2. RATIO OF TARIFFS FOR HOUSEHOLDS TO REAL COSTS, % Heat and hot water supply

Water supply and sewage

Maintenance of buildings and yards

2012

69.2

75.0 / 79.0

100.0

2013

68.4

74.0 / 77.0

98.2

2014

86.6

95.5 / 142.8

77.8

Description

The funds for modernization of the City’s housing sector, improvement of adjacent territories, repairs of inter-building driveways, and for overhaul and current repairs of the road infrastructure are regularly allocated from the City budget.

21

IVANO-FRANKIVSK CITY. Investment Manifest

The City government is actively seeking to raise funds from international financial institutions for reforms in the housing and utility sector. In 2014, the City signed an agreement with the European Bank for Reconstruction and Development to implement project “Modernization and rehabilitation of centralized district heating of Ivano-Frankivsk”. The rehabilitation of sewage treatment plants (including reconstruction of sedimentation tanks and construction of sand catchers, and power supply facilities for treatment plants) was financed with funds from the World Bank. In 2014, the Warld Bank and Ivano-Frankivskvodoekotechprom ME signed the Agreement to Implement Project “The Second Urban Infrastructure Development Project”. It is expected that under this Agreement the entity will receive funds to implement project “Construction of Sludge Treatment Facilities for Ivano-Frankivsk”. The City also participates in Demo Ukraina DH programme with the assistance of the Ministry of Regional Development, Construction and Communal Living of Ukraine as part of cooperation with NEFCO and the Swedish International Development Cooperation Agency (SIDA).

3 SOCIAL AND ECONOMIC DEVELOPMENT AND POTENTIAL OF THE CITY 3.1. Demographics, Employment and Incomes of Population. Development of Small Businesses 250

1,8 1,6

248

1,4

246

1,2

244

1

242

0,8 0,6

240

0,4

238

0,2

236

0 01.01.2011

01.01.2012

01.01.2013

01.01.2014

01.01.2015

City’s population (left scale) Natural population growth (right scale) Total population growth (right scale)

FIGURE 2. DYNAMICS OF IVANO-FRANKIVSK DEMOGRAPHICS, THOUSAND PEOPLE

22

IVANO-FRANKIVSK CITY. Investment Manifest

As at 01.01.2015 the population of Ivano-Frankivsk was 247.8 thousand people. Total and natural growth of the City’s population is underpinned by developed markets, availability of financial institutions, education, healthcare and culture facilities.

The population density indicator of Ivano-Frankivsk Oblast is higher than the country’s average. At the same time, if compared with other Ukrainian cities, the population density of Ivano-Frankivsk is low, which is explained by presence of five villages in the City Council area.

Starting from early 2014, the crisis in Ukraine’s economy has had a negative impact on the Ivano-Frankivsk labour market. However, the unemployment rate in the City was recorded at 1.98%, which is far lower than the official unemployment rate in Ukraine. As earlier, the rate of employment of Ivano-Frankivsk population remains high.

78

32,5

77

32 31,5

76

Average number of FTEs in the City, thousand people (left scale)

31

75

30,5

74

30

73

29,5

72

29

71

Share of average number of FTEs in total City’s population, % (right scale)

28,5

01

.0

1.

2

1 01 01

.0

1.

2

2 01 01

.0

1.

2

3 01 01

.0

1.

2

4 01 01

.0

1.

2

5 01

4 3,5 3 Registered unemployment in the City, %

2,5 2 1,5

Registered unemployment in Ukraine, %

1 0,5 0

01

.

.

01

20

11 01

.

.

01

20

12 01

.

.

01

20

13 01

.

.

01

20

14 01

.

.

01

20

15

FIGURE 3. DYNAMICS OF KEY LABOUR MARKET INDICATORS (EXCLUDING SMALL BUSINESSES) IN IVANO-FRANKIVSK AND UKRAINE

23

IVANO-FRANKIVSK CITY. Investment Manifest

To eliminate professional and qualification imbalance in the labour market, increase competitiveness of those unemployed and provide employers with skilled workforce the Ivano-Frankivsk employment centre consistently cooperates with employers.

Despite the adverse economic environment, the pace of the labour market growth exceeded the country’s average. As at 01.01.2015 a monthly average salary of FTE was UAH 2,918.0. Unstable performance of certain companies in the City, low capacity utilization and delayed payments for services provided cause salary arrears. However, the ratio of arrears to monthly average salary fund in the City is low (i.e. under 4%).

TABLE 3. DYNAMICS OF SALARY INDICATORS IN IVANO-FRANKIVSK AND UKRAINE Description

Unit

2010

2011

2012

2013

2014

Monthly average salary

UAH

1,981.0

2,258.0

2,533.0

2,702.0

2,918.0

Growth rate of monthly average salary*

%

118.3

114.0

112.2

106.7

108.0

UAH millions

2.9

5.1

7.4

6.4

7.4

Monthly average salary

UAH

2,239.0

2,633.0

3,026.0

3,265.0

3,480.0

Growth rate of monthly average salary*

%

117,5

117,6

114,9

107,9

106,6

IVANO-FRANKIVSK

Salary arrears

UKRAINE

* YOY Source: Executive Committee of Ivano-Frankivsk City Council, the State Statistics Committee

The City’s labour market (excluding small businesses) is dominated by sectors such as industry, education, and wholesale and retail trade.

Recent years have seen active development of small businesses. As at 01.01.2015, there were registered 24.0 thousand businesses in the City, with 10.4 thousand of them being legal entities (including 3.1 thousand small businesses) and 13.6 thousand being individual entrepreneurs. In 2014, the number of operating small businesses per 10,000 of population increased by 2 having reached 128. This indicator exceeds two times the region’s average (55) and by 1/3 the Ukraine’s average (82).

24

IVANO-FRANKIVSK CITY. Investment Manifest

To facilitate and support local businesses the City has adopted Programme to Support Small Businesses in Ivano-Frankivsk for 2015-2016. Potential and existing businesses may receive free services at BusinessIncubator Entrepreneurship Development Centre of Ivano-Frankivsk, such as information support and advice on business matters. The City government closely cooperates with the Council of Entrepreneurs of the City Council, civil society organizations, business advocacy groups, companies, institutions, and organizations of all types of ownership to develop and support businesses and address business-related issues.

3.2. Industrial Sector The City’s economy is characterized with a diversified industrial sector, which contributes to relative resilience to changes in the country’s economic environment.

There are over 500 manufacturing companies in the City, with 150 of them having the status of ‘core companies’. In 2014, the share of the City’s industrial sector in Ivano-Frankivsk Oblast’s industrial sales was recorded at 18.3%.

5 000,00

160

4 500,00

140

4 000,00

Industrial sales in effective prices, UAH millions (left scale)

120

3 500,00

100

3 000,00 2 500,00

80

2 000,00

60

1 500,00

40

1 000,00

20

500,00

Industrial sales growth, % (right scale)

Industrial sales growth in Ukraine, % (right scale)

0

0,00 .

01

01

.2

1 01 .

01

01

.2

2 01 .

01

01

.2

3 01 .

01

01

.2

4 01 .

01

01

.2

5 01

Production of food, beverages and tobacco products Energy supply

Engineering Other

PICTURE 4. DYNAMICS OF KEY INDUSTRIAL SECTOR FIGURES IN THE CITY AND UKRAINE. STRUCTURE OF THE CITY’S INDUSTRIAL SECTOR

25

IVANO-FRANKIVSK CITY. Investment Manifest

The industrial sales are dominated by food, beverages and tobacco products (36.5%), energy supply (35.9%), and engineering (14.9%).

TABLE 4. STRUCTURE OF INDUSTRIAL SALES (PRODUCTS AND SERVICES) IN THE CITY BY KEY SEGMENTS, UAH MILLIONS Description

2010

2011

2012

2013

2014

Growth*, %

Extractive industry

11.1

4.4

3.5

4.0

5.9

147.4

Processing industry

1,605.7

2,371.4

2,137.0

2,296.9

2,699.2

117.5

Production of food, beverages and tobacco products

1,101.0

1,366.1

1,136.7

1,355.9

1,558.2

114.9

Textile production, manufacturing of clothing, leather goods, leather and other materials

10.0

38.2

12.4

10.2

10.7

104.8

Manufacturing of wood products, paper, and printing activity

72.5

89.3

98.3

80.8

88.0

108.9

Chemical and petrochemical industry

41.5

35.4

38.7

25.5

20.8

81.7

Production of other nonmetal mineral products

66.0

85.7

129.3

168.5

211.9

125.7

Metallurgical industry

48.1

63.1

58.8

57.2

63.4

110.9

Engineering

212.2

595.4

574.2

504.6

636.8

126.2

Production and supply of electric energy, natural gas, steam, conditioned air and water

1,337.5

1,926.5

1,678.7

1,696.7

1,558.6

91.9

Total

2,954.3

4,302.3

3,819.2

3,997.6

4,263.6

106.7

* 2014 vs. 2013

26

IVANO-FRANKIVSK CITY. Investment Manifest

PRODUCTION OF FOOD AND BEVERAGES One of key drivers of the City’s economy is food and beverages production companies. These companies have been steadily increasing their sales during the last years. The biggest companies in this sector are represented by ODO of Alcohol and Liquor Industry; bakeries (TDV Ivano-Frankivsk Bread-Baking Complex, Ligos LLC, Zaliznychna Pekarnya LLC); confectionery factories (VTKF Lasoschi OJSC, IvanoFrankivsk Flavouring Factory PJSC; meat factories (Ivano-Frankivsk Meat Factory PJSC); TDV Ivano-Frankivsk Miskmolokozavod, TDV Polonyna (dairy products), Imperovo Foods (egg powder).

To support local producers, there are 98 branded retail outlets, where the products are sold at manufacturer’s price. Additionally, the City conducts exhibition and fair events, and Buy Ivano-Frankivsk Products – Give Job to the City Residents promotional event.

ENGINEERING Availability of orders and markets in the EU contributes to increasing output of engineering and metallurgy companies, machinery repair entities, manufacturers of rubber and plastic products and furniture. The City’s engineering sector is represented by Ivano-Frankivsk Valve Plant PJSC (manufacturing pipe fittings for energy, oil and gas, chemical, metallurgical, water supply companies); Avtolyvmash Engineering Plant LLC (manufacturing equipment for processing solid household waste); Ivano-Frankivsk Locomotive-Repairing Factory (repairing rolling stock, manufacturing railcars); Ivano-Frankivsk BoilerWelding Factory SE (manufacturing industrial and household boilers), Pressmash OJSC (manufacturing presses); Ivano-Frankivsk Factory “Promprylad” PJSC (manufacturing devices and means for automatic control, gas counters); Inductor PJSC (manufacturing transformers, infrared heating equipment), etc.

There are also engineering companies with foreign investments: Electrolux Ukraine LLC (manufacturing automatic washing machines), Karpaty Production Association SE and Tyco Electronics Ukraine Limited, which manufacture electric cables for car manufacturing industry.

To discuss and address issues associated with operational activities of the City’s industrial companies, and to build effective dialogue between the City government and businesses, meetings of the City Mayor Advisory Council with participation of the companies’ management are conducted quarterly. The participants of the meetings discuss matters of cooperation and challenges faced by the companies, build contacts, facilitate creation of sectorial business clusters, exchange commercial offers and requests.

27

IVANO-FRANKIVSK CITY. Investment Manifest

3.3. Investment and Foreign Economic Activities

3.3.1. Foreign Investments

Ivano-Frankivsk has an advantageous geographical location (near the EU borders) and favourable investment climate. Representatives of other countries are highly interested in economic, cultural and tourism and recreational potential of the City, which is evidenced by regular visits of foreign delegations.

This contributes to building business contacts with economic divisions of foreign embassies in Ukraine.

As at 01.01.2015, Ivano-Frankivsk has official sister relations with 22 foreign cities of Poland, Hungary, Czech Republic, Russia, Romania, Belarus, Lithuania, Latvia, the United States, etc.

International investment projects being implemented in the City

22 projects

Official sister relations with cities in other countries

22 cities

Foreign direct investments per capita vs. national Ukrainian figure

190.7%

Investing countries

50 countries

Currently, there are 22 international projects being implemented in the City as part of programmes of the EU, the UN Development Programme, the World Bank, the European Bank for Reconstruction and Development, the Swedish International Development Cooperation Agency (SIDA), the Nordic Environment Finance Corporation (NEFCO), Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ), and cross border cooperation with sister cities.

In order to participate in calls for EU-financed projects, the City Council’s executive committee was reregistered in the PADOR on-line database. The registration of the executive committee as a potential applicant increased the project call and expanded City’s capacity to participate in International Technical Assistance projects.

28

IVANO-FRANKIVSK CITY. Investment Manifest

Ivano-Frankivsk maintains its investment attractiveness, which is evidenced by growing foreign investments in the City’s economy. In 2014, the amount of foreign direct investments (equity capital) was recorded at USD 246.2 million, which is the ever highest amount.

Over the entire investment history, foreign investors invested USD 505.3 million focusing mainly on processing industry and wholesale trade, which received over 90% of all investments by end-2014. The City’s FDI per capita indicator is much higher than the country’s average (USD 2,039.2 vs. USD 1,069.6).

200

600

180 500

160 FDI, USD millions (left scale)

140

400

120 100

300

FDI growth, % (right scale)

80 200

60 FDI growth in Ukraine (right scale)

40

100

20 0

0

0

0 1.

1.

20

11 0

0 1.

1.

20

12 0

0 1.

1.

20

13 0

0 1.

1.

20

14 0

0 1.

1.

20

15

2500 2000

City. FDI per capita, USD

1500 1000

Ukraine. FDI per capita

500 0

01

.0

2 1.

01

1 01

.0

2 1.

01

2 01

.0

2 1.

01

3 01

.0

2 1.

01

4 01

.0

2 1.

01

5

FIGURE 5. AMOUNT AND GROWTH OF FDI IN THE CITY

29

IVANO-FRANKIVSK CITY. Investment Manifest

Cities

FDI as at 31 December 2014, USD millions

2014 vs.

2013, %

FDI per capita as at 31 December 2014, USD

UKRAINE

45,916.0

80.5%

1,072.0

IVANO-FRANKIVSK

505.3

149.2

2,071.8

Lviv

841.4

76.4%

1120.5

Rivne

139.7

91.9%

567.1

Vinnytsya

123.8

86.1%

334.0

Lutsk

116

69.1%

543.3

Zhytomyr

96.6

80.8%

358.8

Khmelnitsky

32.7

87.8%

108.7

Chernivtsi

28.5

81.4%

89.5

Ternopil

15.6

79.0%

72.4

Investors represent 50 countries, primarily they are represented by non-residents of Cyprus (USD 440.7 million), British Virgin Islands (USD 24.7 million), Austria (USD 7.7 million), and the Russian Federation (USD 5.5 million), which overall share in total amount of foreign direct investments stands at 94.7%.

The industry sector entities received USD 367.6 million (77.8% of their total equity). The wholesale and retail trade companies, car and motorcycle repairing companies received USD 101.4 million (20.1%), the construction companies received USD 20.2 million (4%), and the real estate companies received USD 9.8 million (1.9%).

The companies with the biggest foreign direct investments are Imperovo Foods LLC (egg powders), Nordkalk Ukraine LLC (production of ornamental and building stone, limestone, gypsum and chalk), Sarrento-Technologies LLC (production of wooden containers), Evropeyski Standarty LLC (production of meat products), CPH Ukraine LLC (production of glue), etc.

The City actively supports and contributes to implementation of new important investment projects.

The City’s official website provides the list of investment projects of utility and industrial companies (in Ukrainian and English languages), as well as information on the City’s economic and investment potential, and opportunities at Khryplyn Investment and Industrial Area. The website also provides quarterly updated information on land plots and unused industrial premises available for implementing investment projects.

30

IVANO-FRANKIVSK CITY. Investment Manifest

3.3.2. Foreign Economic Activity of Companies and Organizations The companies in the City actively cooperate with 72 countries. Key export areas of the City’s economy are engineering, food processing industry and chemical industry, which contribute to over 80% of exports from the City.

500

1

450

0,9

400

0,8

350

0,7

300

0,6

250

0,5

200

0,4

150

0,3

100

0,2

50

0,1

0

Imported goods, USD millions Exported goods, USD millions Export/import coverage ratio, %

0

0

0 1.

1.

20

11 0

0 1.

1.

20

12 0

0 1.

1.

20

13 0

0 1.

1.

20

14 .

01

01

.2

0

15

Engineering

Food processing industry Chemical industry

Other

FIGURE 6. DYNAMICS OF FOREIGN TRADE TURNOVER IN THE CITY. THE EXPORT STRUCTURE

31

IVANO-FRANKIVSK CITY. Investment Manifest

Over the recent years, the structure of exports has remained virtually unchanged. In terms of goods, it is dominated by mechanical and electrical machinery (38.5%), products of animal origin (28.2%), products of chemical and related industry (15.0%). Imports are mainly represented with machinery, equipment and mechanisms, electrical equipment (41.8% of total imports), plastics and polymers (15.3%) and iron and steel products (18.8%).

The biggest industrial exporters are Imperovo Foods LLC, Karpaty Production Association SE, Electrolux Ukraine LLC, Tyco Electronics Ukraine Limited LLC, Ivano-Frankivsk Manufacturing and Commercial Clothing Enterprise “Galychyna” PJSC, etc.

An important factor of the City’s economy stability was focusing of the City’s companies on European markets. Specifically, in 2014 the exports to the EU countries was recorded at 46.9% of total exports. The biggest volumes of exports trade were with Jordan (18.3%), Romania (14.6%), Czech Republic (12.6%), Taiwan (7.5%), Italy (5%), Turkey (4.2%), and Poland (4.2%). Import of goods to Ivano-Frankivsk from the EU countries was recorded at 55.8% of the total volume. Countries with the biggest volumes of import were also represented by the U.S. (24.5%), Germany (13.1%), Poland and Italy (6.5% each), Hungary (6.1%), the Netherlands (5.6%), Saudi Arabia (5.1%), and Romania (4.3%).

For many years, one of the biggest foreign trade partners of the City was the Russian Federation. However, the imposition of trade restrictions in 2014 negatively affected exports to Russia (2014: USD 16.6 million, or 8.3% of all exports, which was more than 2x less than in 2013). The volume of imports from Russia to the City was insignificant (under 3% of total volume).

32

IVANO-FRANKIVSK CITY. Investment Manifest

3.4. Retail and Catering Before 2013, there was a steady trend of growing retail trade turnover in the City, which is a key indicator of purchasing capacity of Ivano-Frankivsk residents, thus allowing to estimate their real incomes.

In 2014, the retail turnover (including trade turnover of retail companies, estimated volume of sales at markets and by individual entrepreneurs) was recorded at UAH 9.6 billion, 2.9% less than in 2013.

However, this indicator per capita remains 1.8 times higher than the Ukraine’s average. The reduction in trade turnover was prompted by economic and financial crisis of 2014 (i.e. decelerated growth of average salary and decreased number of jobs).

THE SECTOR IS REPRESENTED BY: Retail outlets

1.6 thousand (total floor area: 156 thousand sq.m.)

Restaurant

634 entities (35.7 thousand seats)

Household services

390 entities

Markets, including:

15 markets (4.8 thousand trade places)

nonfood

6 markets

food

1 market

combined

8 markets

The growth of demand for consumer goods until 2014 and increased requirements of consumers to retail network drove increase in number of organized outlets, household service entities, and restaurants.

Specifically, even during rather difficult 2014 in terms of retail and catering development, the retail network expanded by 30 outlets, 15 restaurants, 9 household service entities, and 2 supermarkets. In 2014, there was commenced work to open a wholesale agricultural market.

33

IVANO-FRANKIVSK CITY. Investment Manifest

4

TOURISM

Ivano-Frankivsk City is a tourism centre of Precarpathian and one of the most interesting cities in terms of history and culture. The architecture and cultural heritage of the City has deep European roots and reflects our European cultural identity and uniqueness.

In order to improve Ivano-Frankivsk image and attract tourists the City has developed Programme of Tourism Sector Development for 2012-2015. The priority directions in tourism development is visitor and domestic tourism. Its development may be boosted by improvement of transport terminals (i.e. airport, station), proximity to borders, and favourable environmental conditions. An important factor in this connection is establishment of new tourist and excursion routes, folklore festivals and permanent events. Festival tourism is a priority in development of the City’s tourism sector as these events annually attract over 150 thousand visitors. The list of most important art events is given in Education and Culture section.

In partnership with Tourism Association of Ivano-Frankivsk (TAIF), there was published a travel guide in three languages (Ukrainian, English and Polish) titled Ivano-Frankivsk: Journey City and developed as part of East-European Pearls – Development and Popularization of Cross-Border Cultural Tourism project, a city map, and there were installed tourist signs and information boards along the tourist routes. To create new tourist attractions and develop infrastructure for bicycles and bike tourism, there was implemented a project titled Promotion of Cycling and Creation of Environmentally Friendly Bicycle Infrastructure in the Context of Euro-2012 in Ukraine. Create two intracity tourist routes Velo-Park 2011 and one external bicycle route Taras Shevchenko Culture and Recreation Park – Kozakova Dolyna Stow.

Also, Ivano-Frankivsk implementes the Рrogramme for development of cycling infrastructure and popularization of cycling in the city for 2015-2020.

34

IVANO-FRANKIVSK CITY. Investment Manifest

THE CITY’S TOURISM SECTOR IS REPRESENTED BY: Office for International Relations and Tourism of the Department of Economic and Integration Development within the structure of Executive Committee of the Ivano-Frankivst City Council Tour operators

11

Travel agencies

44

Hotel business

31 entities (hotels and motels for 1.3 thousand visitors)

Museums

5 institutions (Ivano-Frankivsk Regional Art Museum, Ivano-Frankivsk Regional Museum of Local Lore, Museum of Pre-Carpathian Liberation Movement, Oleksa Dovbush’ National Historic and Memorial Museum, Stepan Bandera Center of Patriotic Upbringing for Pupils and Youth)

In order to create an attractive image of Ivano-Frankivsk through promotion of tourism products on both domestic and foreign markets, there is an permanent campaign promoting the City under slogans ‘Ivano-Frankivsk is a Tourist Gate to the Carpathians’, ‘Tourist Capital of Precarpathian Region’, ‘City in the Centre of Europe’. The City’s tourism companies participate in international exhibitions, fairs, and forums. There is a yearly calendar of culture and arts, sport and tourist events to be conducted in the City. To address issues of tourism development and cooperate for creation of a promotional and attraction course, there have been held meetings of Tourism Alliance. The biggest tour operators in the City are Ivano-Frankivsktourist, Key PE, regional centre of tourism and local lore for pupils, NADIYA LLC, Galychanka-IF PE, and others.

The mobile application «I-F for tourists» has been designed for smartphones and tablets with the support of Swedish International Development Cooperation Agency (SIDA) and e-Governance Academy Estonia Thanks to the project «Eastern European pearls: development and promotion transboundary city cultural tourism products», co-funded by European Union under the “Poland-Belarus- Ukraine” Cross Border Cooperation Programme for 2007-2013, – audio tour guides on five languages have been created, as well as Strategy for cultural urban tourism development at the City development; also, the tourist guide of the City has been issued (separate editions in 3 languages), etc.

To attract investment to the tourism sector there were prepared projects of participation in national and international competitions and programmes, including Travel through Time project aimed at reconstruction of the Town Hall underground and creation of the city museum, and arrangement of a scenic viewpoint in the Town Hall.

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IVANO-FRANKIVSK CITY. Investment Manifest

5

BUDGET PROFILE

The principles of the budget system of Ukraine, its structure, legal principles of its functioning, the foundations of the budgetary process and intergovernmental relations, and responsibility for violations of budget legislation are prescribed by the Budget Code of Ukraine.

According to the Budget Code, the state is responsible for all national expenses, i.e. expenses for public administration, legislative, judicial and executive branches, international relations, fundamental and applied research, national defence, law enforcement, and other programmes of exclusive national importance. The City Council manages a substantial portion of social expenses. Segregation of expenses between budgets takes into account criteria of fullness of a service provided and its targeting.

Under the effective legislation, in order to execute delegated authority the local councils are assigned a number of national taxes and duties, including individual income tax, land charge, license and certificate fee, income tax of municipally owned corporations, local taxes and duties, etc. Under the Budget Code, the receipts from specific national taxes received in a jurisdiction of a local council are distributed between the central budget, regional budget and local budget, or remain in local budget in full. In addition, there are inter-budget transfers, i.e. funds, which are transferred between budgets on free and irrevocable basis.

The budget process in the City is regulated by Article 12 of the Budget Code.

The Finance Function of the City Council performs organizational and management duties in respect of the budget implementation, and coordinates stakeholders of the budget process. Treasury services are provided by the unit of the State Treasury of Ukraine.

Taxes, duties (mandatory payments) and other budget revenues are transferred directly to the budget account at the State Treasury, they may not be accumulated on accounts of collection authorities. The collection authorities ensure timely and full transfer of taxes and duties (mandatory payments), and other revenues to local budgets in accordance with the law.

The budget is performed in accordance with targets approved by the head of the Finance Function (until the targets are approved, a temporary target list for the respective period is approved). During the budget period, the head of the Finance Function ensures compliance of the budget target list with established budget appropriations.

5.1. Introduction to Ivano-Frankivsk Budget Ivano-Frankivsk budget is a budget of local self-government. The structure of the consolidated budget includes the City’s budget and budgets of five towns.

The budget process in the City is arranged in accordance with the Constitution of Ukraine, the Budget Code of Ukraine, the Law of Ukraine on the State Budget for a respective year, and other regulations. The City budget is approved within the term specified in Article 77 of the Budget Code of Ukraine (no later than two weeks after the Law on the State Budget is published).

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IVANO-FRANKIVSK CITY. Investment Manifest

The City budget is formed based on the Budget Code of Ukraine, inter-budget transfers approved for the City in the Law of Ukraine on the State Budget for a respective year and resolution of the Oblast Council on oblast budget for a respective year, budget requests of key spending units, budget incomes given the achievement of the City’s social and economic targets for the previous year, and estimated economic indicators for the current year.

Ivano-Frankivsk budget revenues are formed with tax receipts, non-tax receipts, capital transaction gains, special purpose funds and transfers. Tax receipts and official transfers are the core of the City budget revenues. The amount of tax receipts to the City budget was determined by pace of receipts from personal income tax and land fee (62.6% and 10.7% of the budget revenues excluding transfers in 2014). It should be noted that increase in tax receipts was driven by growing receipts from the single tax (11.2% of the budget revenues excluding transfers in 2014), underpinned by robust development of small businesses in the City.

TABLE 5. IVANO-FRANKIVSK BUDGET FIGURES 2012 (actual)

2013 (actual)

2014 (actual)

2015 (estimate)

TAX RECEIPTS, INCLUDING:

402.1

428.7

453.9

434.4

è

Individual income tax

294.5

315.5

327.8

244.9

è

property tax*, including:

Х

Х

Х

73.7

– land fee

55.8

52.5

56.2

66.9

single tax

38.0

48.0

58.8

59.8

Revenues

è

The excise tax on realization Agricultural retail excisable goods

57.7

Non-tax receipts, including:

46.1

47.9

52.5

61.9

own revenues of budgetary institutions

25.3

27.8

26.8

19.4

CAPITAL TRANSACTION GAINS, INCLUDING:

12.8

8.6

14.8

22.2

9.7

4.5

11.4

16.2

Funds from the sale of municipal property

3.2

4.0

3.4

6.0

Special-purpose funds

3.7

0.8

2.3

1.5

Funds of share participation in infrastructure development of the city

8.0

7.4

12.1

14.6

Total revenues excluding transfers

464.7

486.1

523.4

520.0

Transfers

401.6

367.3

474.1

689.4

Total revenues

866.3

853.4

997.5

1209.4

Total expenses

848.7

877.0

1,001.4

1106.7

è

è

proceeds from sale of land and intangible assets

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IVANO-FRANKIVSK CITY. Investment Manifest

In order to balance revenue and expense sides of the budget, and fund target expenses, the City receives official transfers from the central budget (47.5% of City budget revenues excluding transfers in 2014), intended mainly for social payments and assistance to vulnerable groups.

A part of official transfers to the City budget is represented with equalization grant from the central budget, as the Ministry of Finance estimates that the budget revenues are insufficient to finance respective expenses. It should be noted that the dependency of Ivano-Frankivsk budget on equalization grants in the period under review increased, with its share in 2014 standing at 21.1% of total revenues excluding transfers.

Due to uneven inflow of receipts to the City budget and financing protected and priority expenses being accompanied by temporary cash gaps, the Ivano-Frankivsk City Council raises loans from the State Treasury Service of Ukraine every year.

The City budget funds are expensed as long as revenues and loans from general treasury account are received. The City budget expenses have social nature. A significant amount of funds are allocated to priority expenses, primarily protected items (89.5-92.3% of general fund revenues during 2012-2014), specifically salaries for personnel of public institutions, payroll tax, procurement of energy, food and medicines, transfers to the public and to local budgets.

If the budget expenses exceed its revenues (given the difference between repayment of loans to the budget and provision of loans from the budget) the City budget is formed with surplus, and with deficit otherwise. The deficit is financed with balances, or internal or external borrowings. During the recent years, the budget has not had a steady trend of deficit or surplus. For instance, the City budget was executed with surplus in 2012, whereas in 2013 it had a deficit of UAH23.6 million, which decreased to UAH 3.9 million in 2014.

The draft City budget for 2015 has been created when tax and budget laws are being revised. Its key figures have been determined based on the Budget Code of Ukraine (as amended by the Law of Ukraine No 79-VIII dated 28.12.2014 and titled On Amendments to the Budget Code of Ukraine Relating to Reforming of Inter-Budget Relations), the Tax Code of Ukraine (as amended by the Law of Ukraine No 71-VІІІ dated 28.12.2014 and titled On Amendments to the Tax Code of Ukraine and Certain Legislative Acts Relating to Tax Reform), the Law of Ukraine On the State Budget of Ukraine 2015, and other legislative acts. In addition, the City budget parameters have been determined in accordance with adjusted economic and social indicators for 2015 using statistical, tax and financial reports, and calculations of respective City Council units.

The current budget period will be rather challenging given the need of businesses to adapt to new economic and legal circumstances, and persisting risks in the national economy. The City budget revenues for 2015 excluding transfers have been set at UAH 391.9 million (74.9% of actual revenues in 2014), with those of the budget’s general fund set at UAH349.9 million (86.4% of revenues in 2014), and those of the budget’s special-purpose fund set at UAH 42.0 million (35.4%).

The planned amount of City budget expenses for 2015 has been set at UAH 1,001.5 million (100% of actual amount in 2014). Decrease in planned expenses is witnessed in the special-purpose fund (by 34.2%), whereas the growth of the general fund expenses in 2015 has been 9%.

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IVANO-FRANKIVSK CITY. Investment Manifest

6

REGULATION OF INVESTING ACTIVITIES IN THE CITY

GENERAL LEGAL AND SOCIAL FRAMEWORK OF INVESTING ACTIVITIES are specified in the Law of Ukraine On Investing Activities. The Law stipulates for

equal protection of rights, interests and property of investors regardless of their type of ownership, and for ensuring robust environment for investing in Ukraine, development of international business cooperation and integration.

Under the Law of Ukraine On Investing Activities, investments are all material and intellectual assets that are invested in economic and other entities, as result of which profit (income) is generated or social effect is achieved.

Investments in property, plant and equipment, and in inventories are made in a form of capital expenditures.

Investees may be represented with any property, including fixed assets and working capital in all economic sectors, securities, special deposits, science and technology products, intellectual property, other property items, and property rights.

Investors and participants of investing activities may be Ukrainian and foreign individuals and legal entities, and sovereign states.

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IVANO-FRANKIVSK CITY. Investment Manifest

Investors determine goals, directions, types and volumes of investments; they contract any participants of investing activities, including through competitive tendering.

Key legal document, which regulates relations between participants of investing activities is agreement (contract).

Foreign investing activities are regulated based on goals, principles and provisions of the Law of Ukraine On Regime of Foreign Investing and the Economic Code of Ukraine; in addition, important legal documents regulating relations between participant of investing activities from different countries are international agreements on promotion and mutual protection of investments. Such agreements ensure fair treatment of investments and their protection within jurisdiction of other country. .

Under the Law of Ukraine On Regime of Foreign Investing, foreign investments may be made in the following forms: participation in equity of companies established jointly with Ukrainian individuals or legal entities, or acquisition of interest in a going concern; establishment of entities fully owned by foreign investors, branches and other divisions of foreign legal entities, or full acquisition of a going concern; acquisition of real or movable property not prohibited by Ukrainian law, including buildings, apartments, premises, equipment, vehicles, and other property through direct ownership or through shares, bonds and other securities; acquisition of land use rights and rights for exploiting natural resources in Ukraine independently or jointly with Ukrainian individuals or legal entities; acquisition of other property rights; business activities based on production sharing agreements; other forms not prohibited by Ukrainian law, including without establishment of a legal entity on the basis of agreement with Ukrainian economic entities.

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IVANO-FRANKIVSK CITY. Investment Manifest

Except for cases stipulated by laws of Ukraine and international agreements of Ukraine, foreign investors are subject to national regime of investing and other economic activities.

Foreign investments in Ukraine may not be nationalized. Public authorities may not expropriate foreign investments (except under emergency situations such as national disasters, accidents, epidemics, etc).

Such expropriation may be executed based on resolution of agencies authorized to do so by the Cabinet of Ministers of Ukraine.

Certain economic entities that implement foreign investment projects under state programmes to develop high-priority industries, social sector and territories, may be entitled to certain privileges.

The Law of Ukraine On Collective Investment Institutions regulates social relationships arising from [or in conjunction with] collective investment, when creating and operating collective investment entities, providing guarantees of securities’ ownership and protecting the rights of the stock market operators.

The Law of Ukraine On the Elimination of Discrimination in the Taxation of Business Entities Formed Using Domestic Property and Funds ensures competition between economic entities with no foreign participation and those with it, provision of government support to domestic producers, and enforcement of constitutional rights and freedoms of Ukrainian citizens. Specifically, under Article 1 of the Law, economic entities or other legal entities with foreign ownership, their branches, offices, divisions, including permanent representative offices of non-residents, regardless of form and time of investment are subject to national currency exchange regulation and taxation regimes established for economic entities with no foreign ownership.

Regulation and support for investing activities in the City. To ensure economic growth, promote competition, investments, job creation, development of modern industrial and market infrastructure the City Council has approved a Comprehensive Programme to Develop Investing Activities for 2013-2015. Under this programme, if an investor decides to cooperate with the City, he may expect support in relation to: registration of the business; obtaining approvals and permits through simplified procedure; construction of new or expansion of existing facilities; support in hiring skilled employees, and making contacts with local suppliers; privileged regime of levying local taxes; promotion of products and services through the official web-site and mass media.

In 2006, in order to attract investments to high-priority sectors, ensure modernization of existing facilities and creation of up-to-date production, transport and market infrastructure in the City, there was created an investment development area on the basis of the Khryplyn industrial hub – a Khryplyn Investment and Industrial Area (KIIA).

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IVANO-FRANKIVSK CITY. Investment Manifest

FIGURE 7. LOCATION OF KIIA

KIIA is located in south-eastern part of the City on an area of 612 ha. The area, which includes industrial facilities and utility and transport infrastructure is 300 ha. There are extension railways, motor roads and utilities, such as gas, water supply, sewage, electric energy, and communication.

In March 2007, there was established a KIIA Development Council, which was a permanent City Mayor board with participation of municipal officials, businessmen and representatives of the civil society. The Council’s key objective is to determine the area development directions, and address issues associated with economic activity in the area.

There has been composed an inventory of a portion of KIIA land (276) free of structures and buildings, with a list of land plots and their owners drawn up. However, there are certain issues with establishing investment site, as the land plots should be bought out from their owners. There are also some limitations due to the fact that there are irrigation system on a portion of KIIA land. The disposal procedure is lengthy and requires certain expenses. On the City’s web-site (http://www.mvk.if.ua/chrpv/, http://www.mvk.if.ua/vilplo/) you may find KIIA presentation and information on available land and land allocation, investment sites, available premises at enterprises of Ivano-Frankivsk. There are six investment sites on KIIA territory. In addition, there are five land plots in Kalush road-adjacent area proposed for social investment projects.

There are entities established by foreign strategic investors operating in KIIA, such as Electrolux Ukraine LLC and Tyco Electronics Ukraine Limited LLC. Robust business activities of these companies is a successful model to attract new investors and establish suppliers, component manufacturers, etc.

The adoption of the Law of Ukraine On Industrial Parks has contributed significantly to investment attractiveness of available land plots in the City and subordinate towns. The City Mayor has created a task force on industrial parks, which has elaborated plans to register the parks in the City.

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IVANO-FRANKIVSK CITY. Investment Manifest

7 REGULATION OF PRIVATIZATION AND LEASE OF MUNICIPAL PROPERTY AND LAND Regulation of alienation, use and disposal of municipal land and property is an exclusive authority of respective local government. Under the Law of Ukraine On Local Self-Government, the authority of a local government includes: making decision on alienation in accordance with effective legislation; approving local privatization programmes, and a list of municipal property prohibited from being privatized; determining expediency, procedure and terms of privatization of municipal property; deciding on acquisition of privatized property; on inclusion of earlier privatized assets into municipal property, where a respective purchase and sale agreement was terminated or invalidated; on concession of municipal property; on creation, liquidation, reorganization, and conversion of municipal entities in a respective territorial community; deciding on delegation of certain authority to manage municipal property of a respective territorial community, determining the scope of these authority and terms of its enforcement.

7.1. Regulation of Land Relations The Ivano-Frankivsk territorial community owns all land in the City, except for private and stateowned land.

The Land Relations Function of the Executive Committee of the Ivano-Frankivsk City Council is responsible for regulation of land relations, effective management of municipal land and other land at the disposal of local government.

Worth mentioning is the transparency of the Land Relations Function’s services. There are information and procedure leaflets, where information on service providers, their location, working hours, list of required documents, deadlines, cost, etc. may be found. .

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IVANO-FRANKIVSK CITY. Investment Manifest

7.1.1. Procedure of Municipal Land Sale Land plots owned by the Ivano-Frankivsk territorial community or property rights for them are sold as separate assets on a competitive basis (at land auctions), except for cases specified in the Land Code of Ukraine (Article 134).

The land sale procedure has been determined by Resolution 1774-54 dated 26.05.2015 of the City Council.

Acquisition of leased land Individuals or legal entities seeking to acquire leased land (or permanently used land), where their real property is located (“the applicants”) submit application to the City Council through the Administrative Service Centre. At the applicant’s request and with consent of the City Council, the land acquisition may be performed on an installment plan, but for no more than five years. The applicant also encloses documents specified in Annex to Resolution 1774-54 of 26.05.2015.

Based on consideration of the application and respective documents, the Land Relations Function of the Executive Committee of the Ivano-Frankivsk City Council prepares and submits for consideration a draft resolution of the City Council.

To measure value of a land plot, the City Council makes a decision on its expert monetary valuation. The Land Relations Function issues an extract from the respective resolution and prepares a draft agreement on advance payment (being part of the total payment for the land plot), which would be issued to the applicant by the Administrative Service Centre. After receiving the extract from the City Council resolution and the draft agreement on the advance payment, the applicant signs it, has it registered at the Land Relations Function and makes payment within a month upon registration of the agreement on advance payment.

After receiving funds under the agreement on advance payment, the Land Relations Function convenes a commission to assign contract on a competitive basis to perform an expert monetary valuation of the land plot.

The land valuation reports are subject to review. After receiving the land valuation report issued in accordance with the contract, and an inquiry by a unit of the State Tax Service in Ivano-Frankivsk into existence (or absence) of land charge arrears, the Land Relations Function prepares a draft resolution on sale of the land plot.

The resolution on sale of municipally owned land plot is a basis for conclusion and notarization of the land plot sale agreement. A land lease agreement is terminated once the resolution on sale of the land plot has been approved. The applicant is notified of the City Council resolution on sale of the land plot by the Land Relations Function.

The buyer is the owner of the land plot starting from the moment of its registration in the State Register of Rights to Immovable Property. In case of instalment plan, a ground for state registration of the property right is a proof of payment of the first instalment of no less than 50% of the land plot value.

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IVANO-FRANKIVSK CITY. Investment Manifest

COMPETITIVE SALE OF LAND PLOTS (LAND AUCTIONS) Land sales have a form of auction upon which a sale agreement or a lease agreement with the participant (the winner) of the auction, who offered the highest price or highest fee, is concluded.

The Land Relations Function is responsible for arrangement of land auctions. Its actions in this connection include the following: selection of municipally owned land plots and preparation of land assets for sale at auctions (to ensure this process there has been approved a Documentation Procedure to grant permission of drafting a land use design to allocate land plot and prepare land assets for sale at land auctions. Resolution 1249-38 of 18.10.2013 of the Ivano-Frankivsk City Council); procurement of service to elaborate land use design, evaluate land, and assign a manager of land auction on a competitive basis (these services are procured in accordance with public procurement laws; if these laws are not applicable, the services are procured on a basis of competitive bidding under Resolution 1060-35 of 14.05.2013 and Resolution 1249-38 of 18.10.2013 of the City Council); carrying out land auction and concluding a sale (lease, superficies, feefarm) agreement.

Once the City Council has made a decision on formation of land plots and preparing land assets for land auctions, and granting permission to draft land use designs, the commission (which is established under the Annex to Resolution 1774-54 of 26.05.2015 of the City Council) selects contractors to make up land use designs, evaluate land and carry out land auctions. According to the results of the competitive selection, the City Council assigns a manager of land auction, and its date and venue.

The land auction is carried out in accordance with Article 135-138 of the Land Code of Ukraine. The agreement of sale, lease, superficies, feefarm is concluded on the day of the auction. The City Mayor signs the agreement as an auction organizer (in absence of the City Mayor, the agreement is signed by the City Council Secretary).

The auction history and information on land plots sold may be found on the Land Relations Function website.

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IVANO-FRANKIVSK CITY. Investment Manifest

7.1.2. Procedure of Lease of Municipal Land Lease of municipally owned land plots is governed by City Council’s Regulation 1446-45 of 19.06.2014 titled On Lease of Municipally Owned Land Plots in Ivano-Frankivsk. This Regulation sets up a procedure of conclusion and execution of land lease (sublease) agreements, their supplementary agreements, a procedure of collection of land charge for municipally owned land plots in Ivano-Frankivsk.

Municipally owned land plots may be leased by Ukrainian individuals and legal entities, foreign nationals and stateless individuals, foreign legal entities, international associations and organizations, sovereign states, and other legally qualified entities. Lease of land may be short term (no more than 5 years) and long-term (no more than 50 years). The term of the land lease agreement is determined given the urban planning requirements, and commercial, production, business and other leaseholder’s needs (as per application and land use documents), and the public need in the leaseholder’s land plot.

Transfer of municipally owned land plots to leasehold is performed based on a resolution of the IvanoFrankivsk City Council, or an agreement of sale of the right of lease (if lease right is sold) through conclusion of a land plot lease agreement.

Land plots are leased based on results of land auctions, except for cases specified by the law. Municipally owned land plots, which are not subject to sale at land auctions, are tranferred to leasehold based on the Ivano-Frankivsk City Council decisions. The decisions are based on applications and land use design documents, and specify type of land plot use (its functional purpose).

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IVANO-FRANKIVSK CITY. Investment Manifest

Drafting land lease (sublease) agreements, and supplementary agreements to them is responsibility of the Land Relations Function of the Executive Committee of the Ivano-Frankivsk City Council.

To reach understanding on substantial terms of lease (sublease) agreement, a draft is prepared, which is provisionally approved by future leaseholder (subleaseholder) by signing and sealing (if available).

Preparation of draft is performed when the leaseholder’s approval for the amount of rental fee is available.

The draft lease (sublease) agreement is prepared during 10 working days after all necessary documents have been received by the Land Relations Function.

The rental fee is calculated in accordance with the rental fee calculation form applicable for municipally owned land, which monetary value has been determined, and based on extract from the statutory monetary valuation technical documentation.

Before drafting a lease agreement, the land use design documentation is prepared (i.e. draft land use design and technical documentation of land use design to establish boundaries of the land plot on site).

When all required documents are available, the Land Relations Function drafts a City Council resolution to be considered at next session. Once the City Council approves lease of the land plot (or in case of positive result of land auction or tender), the land lease agreement with land plot delivery certificate in three copies are submitted for signature by the City Mayor.

If the right for land lease is acquired through competitive bidding, the land lease agreement is executed based on minutes of the bidding or the land auction.

The leaseholder submits the land lease agreement signed by the City Mayor to the Registration Service of Ivano-Frankivsk Directorate of the Ministry of Justice for its state registration. The transfer of land plots to leaseholders is based on a land plot delivery certificate signed by the leaseholder and the lessor, and endorsed by the Land Relations Function. The leaseholder shall submit within five days after state registration of the land lease agreement a copy of the agreement to the State Tax Inspectorate in the Ivano-Frankivsk City.

The list of land plots leased and available for lease is given on the website of the Land Relations Function.

7.1.3. Rental Fee Calculation Mechanism The amount, indexation, form, terms of payment, change of rental fee, and responsibility for failure to pay it are specified in the lease agreement. The procedure and specifics of charging and paying rental fee are prescribed by the Tax Code of Ukraine. The amount of rental fee depends on type of land plot utilization and takes into account the area of the City it is located in, and the statutory monetary valuation. The rates of the annual rental fee are given in Annex 4 to Regulation on Lease of Municipally Owned Land in Ivano-Frankivsk.

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IVANO-FRANKIVSK CITY. Investment Manifest

7.2. Regulation of Change of Ownership and Availability of Municipal Property The municipal property includes: integral property complexes of municipally owned enterprises, which owner is the Ivano-Frankivsk City Council or the Executive Committee of the IvanoFrankivsk City Council (“the municipally owned enterprises�); and divisions (branches, workshops, units) of municipally owned enterprises; non-residential buildings (structures, premises) and other individually designated property under operating management or commercial disposal of municipal entities, establishments and organizations if such buildings (structures, premises) and other individually designated property are not used in accordance with objectives of these entities, establishments and organizations; ownerless property, which has been recognized under the Ukrainian law the property of Ivano-Frankivsk territorial community; assets, which are municipal property, and which have not been transferred into operating management or commercial disposal of entities, establishments and organizations; buildings (structures, premises), which construction is currently in progress, which are property of Ivano-Frankivsk territorial community, and which have remained not commissioned for a long period of time due to unavailability of financing for their completion.

The lessor of municipal property is the Executive Committee of the Ivano-Frankivsk City Council.

The municipally owned property (except for residential assets) is managed by the Municipal Property Fund of the Ivano-Frankivsk territorial community.

Worth mentioning is the information transparency of administrative services. There are information and procedure leaflets, where information on service providers, their location, working hours, list of required documents, deadlines, cost, etc. may be found.

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IVANO-FRANKIVSK CITY. Investment Manifest

7.2.1. Privatization of Municipal Property To ensure social and economic development, and inflow of budget proceeds there have been developed the Municipal Property Privatization Concept and the Municipal Property Privatization Programme for 2015-2017, which were approved by City Council’s Resolution 168-X of 14.04.2011 and Resolution 167852 of 24.02.2015 respectively.

The authority responsible for municipal property privatization is the Municipal Property Fund of the Ivano-Frankivsk territorial community, which ensures privatization of the municipal assets taking into account legislation of Ukraine, resolutions of the Ivano-Frankivsk City Council, the Privatization Programme and other regulations relating to privatization and property valuation. The City Council has an exclusive authority to approve the Privatization Programme. The Executive Committee of the City Council is delegated authority to allow alienation of vehicles and other individually designated property (except for non-residential premises) through auctions, which residual value does not exceed UAH 20 thousand.

The assets of the Ivano-Frankivsk territorial community, which may be included into the Privatization Programme are: integral property complexes (including those leased); non-residential premises (including those leased); individually designated property (including that leased); construction in progress; stakes owned by the territorial community.

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IVANO-FRANKIVSK CITY. Investment Manifest

There is a published list of assets to be privatized through auctions, and the list of municipal properties to be privatized through direct acquisition. These lists are part of the Municipal Property Privatization Programme.

The municipal property may be privatized through direct acquisition, auction, or competitive bidding.

The buyers of municipal property may not be legal entities with government interest of more than 25%, public authorities, employees of privatization agency, and other entities, which under the effective legislation cannot engage in entrepreneurial activities.

The Municipal Property Fund of the Ivano-Frankivsk territorial community arranges independent valuation of privatization targets with respective valuators determined on a competitive basis. The valuation of a privatization target is performed in accordance with the Law of Ukraine On Valuation of Property and Ownership Rights, and Professional Valuation Activities in Ukraine.

The valuator opinion in form of City Council’s resolution as submitted by the Municipal Property Fund of the Ivano-Frankivsk territorial community (with consideration of proposals and observations of the City Council’s temporary commission on lease and privatization of municipal property, competitive bidding and distribution of housing stock) is submitted for approval at the City Council’s session.

The Municipal Property Fund takes a range of measures to ensure transparency of privatization process, such as publication of announcements of competitive biddings (auctions) and details of privatization in mass media (periodicals, radio and television) in compliance with the Programme and information law requirements.

The owners of privatized assets have a priority right for long-term lease (of no less than 10 years) of land plots occupied by them with subsequent purchase of these land plots according to the laws of Ukraine, if it is not directly prohibited by the City Council.

7.2.2. Lease of Municipal Property At local level, the issues of municipal property lease, methodology for computing rental charges and for using respective proceeds, procedures of carrying out tenders for lease of municipal property is regulated by the City Council’s Resolution 201 of 17.04.2007 titled On Amendments to Regulations Concerning Lease of Property Owned by Ivano-Frankivsk Territorial Community. The integral property complexes of municipally owned enterprises and their divisions (branches, workshops, units) are leased under the procedure specified by the Law of Ukraine On Lease of Public and Municipal Property.

Legal entities and individuals seeking to lease a specific asset should submit an application for approval to the Municipal Property Fund. The applicant should also enclose properly certified copies of required documents. The application is provisionally considered by the Municipal Property Fund. If the application meets regulatory requirements, the Municipal Property Fund refers the application for consideration by the Executive Committee’s commission on lease of non-residential premises and privatization of municipal property (“the Commission”). The Commission, established by order of the City Mayor, is an advisory body of the City Council’s Executive Committee. If the Commission has no grounds to reject application or to examine the issue in more detail, the Commission recommends the City Council’s

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IVANO-FRANKIVSK CITY. Investment Manifest

Executive Committee to approve a resolution on transfer of a municipal asset into applicant’s leasehold.

Basing on the Commission’s recommendations set forth in the minutes of the Commission’s meeting the Municipal Property Fund drafts an Executive Committee’s resolution to be approved at the next meeting of the Executive Committee. The Executive Committee of the City Council approves transfer of a specific asset into leasehold of a specific legal entity or individual.

Only draft resolutions, which concern lease of municipal property not affected by the above Regulation, and draft resolutions on lease of municipal property or extension of lease agreements for over three years, and draft resolutions on preferential rental fee charging or writing off rental fee receivables are submitted for consideration by the City Council.

A resolution of the City Council or the Executive Committee of the City Council on transfer of a specific asset into leasehold of a specific legal entity or individual is a basis for conclusion of an agreement on lease of that asset with that legal entity or individual.

The initiator of lease may be a municipal enterprise, establishment or organization, under which operating management or at which commercial disposal the respective asset is, and which was not used when the respective proposal was submitted. The proposal of lease is executed as a letter addressed to the City Mayor. The initiator encloses a brief description of the asset, proposals on possible use of the asset, and requirements to leaseholder. The proposal of lease should be approved by head of a respective unit (function) of the Executive Committee, responsible for management of that municipal enterprise, establishment or organization.

The proposals of lease are submitted directly to the Municipal Property Fund. If required, the Municipal Property Fund collects additional information on the asset and prepares proposals for transferring that asset into leasehold on a competitive basis.

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IVANO-FRANKIVSK CITY. Investment Manifest

7.2.3. Rental Fee Calculation Mechanism The rental fee is determined based on Methodology of Calculation and Order of Use of Rental Fee Derived from Lease of Property Owned by Ivano-Frankivsk Territorial Community approved by the Ivano-Frankivsk City Council, which is effective at the moment of the lease agreement conclusion.

RATING HISTORY OF THE CITY

8

On 07.05.2009, Credit-Rating, an authorized national credit rating agency, assigned a

uaBBB+ credit rating to the

Ivano-Frankivsk City.

The City’s credit rating indicates its SUFFICIENT creditworthiness as compared to other Ukrainian obligors or debt liabilities. This level of creditworthiness is affected by adverse changes in commercial, financial and economic conditions.

A “+” modifier indicates intermediary category in relation to the standard rating categories (grades). A stable outlook indicates that there are no anticipated reasons to change the rating in the course of the year.

The national rating scale allows for measuring credit risks in the Ukrainian economy with no regard to sovereign risk. It is intended for use by issuers of securities, borrowers, financial institutions, brokers and investors in the Ukrainian financial market.

The rating is based on analysis of the City’s economic and financial indicators, demographic data, labour market data, information on its debt obligations, municipal property and long-term plans.

CREDIT RATING HISTORY Date Credit rating Outlook Rating action

07.05.2009

12.11.200919.12.2014

19.06.2015

uaBBB+

uaBBB+

uaBBB+

Stable

Stable

Stable

Assignment

Affirmation

Affirmation

TABLE 6. RATING HISTORY OF THE CITY (CREDIT RATING)

52

IVANO-FRANKIVSK CITY. Investment Manifest

National rating agency “Credit Rating“ assigned October 16, 2015 rating of investment attractiveness for Ivano-Frankivsk city. At the same time, current credit rating of the City, assigned by National Rating Scale envisages HIGHT INVESTMENT ATTRACTIVENESS of the City, compared with other entities subject to rating procedure. Investment attractiveness rating has been assigned at uaINV4 level.

Forbes Ukraine has published a rating of best cities for business. This year, the magazine has analyzed 25 social criteria in 25 centres of Ukrainian regions. This rating reflects attractiveness of Ukrainian cities for businesses operating in the consumer market, and takes into account criteria, such as human capital, buying capacity, business climate, economic sustainability, infrastructure, and business health. The Ivano-Frankivsk City in this rating has been ranked the 9th.

9

LIST OF THE CITY’S INVESTMENT PROJECTS Currently, the City’s administration is implementing two top priority projects, which are strategically important for technology upgrade and development in the City and which will improve Ivano-Frankivsk attractiveness as a place for residence and business, and will ensure high standards of living for the residents. Potential investors are offered projects and to take part in Ivano-Frankivsk’s development.

CONSTRUCTION OF MULTI-PURPOSE SPORTS AND RECREATIONAL COMPLEX This project features construction of a state-of-the-art multi-purpose sports and recreational complex based on a community facility ‘Municipal Central Stadium “Rukh”’. The complex offers a possibility to engage in various sports activities in one place, and conduct competitions ranging from amateur to international levels. The project will allow for improvement of the sports environment, make the city residents engaged in sports activities, and popularize healthy lifestyle. The target audience is represented with all groups, i.e. children, teens, youth, adults, and seniors.

53

IVANO-FRANKIVSK CITY. Investment Manifest

The complex will feature a stadium with track and field lanes; a warm-up area with a 200-meter athletic track with discus/hammer and javelin throwing, and shot put sectors; a reserve full-size training football field; a roofed sports and administrative complex, a sports (football) club building, a recreational and entertainment centre with car parking; and a 150-bed hotel.

Estimated cost of construction of “Multi-Purpose Sports and Recreational Complex with a 150-bed hotel in Ivano-Frankivsk City” is UAH 250,216.5 thousand.

Main field and track arena based on existing stadium “Rukh”, UAH thousand

69,900

Warm-up area, UAH thousand

2,528

Playing sports area, UAH thousand

2,076

Reserve full-size training football field, UAH thousand

1,260

Roofed structure with track and field gyms and administrative and amenity premises 45,935 (5000 m2 хUAH 9,187), UAH thousand

Roofed structure with multi-purpose hall for competitive sports and calisthenics, boxing, and wrestling sections (6000 m2 хUAH 9,187), UAH thousand

55,122

Sports (football) club building, (2500 m2 хUAH 9,187), UAH thousand

22,967.5

Recreational and entertainment structure, (4000 m2 хUAH 9,187), UAH thousands

36,748

150-bed hotel, UAH thousand

13,680

TOTAL

250 216,5

The land plot for designing and construction of the complex is located between V. Chornovola Street and P. Doroshenko Street, and T. Shevchenko municipal park in Ivano-Frankivsk City. This allocated land plot hosts municipal stadium “Rukh” with adjacent territory. There are no structures on the land plot.

The designed complex will form a building-up in the block within the mentioned streets. This complex will contribute to formation of a sports and recreational area in the vicinity of the municipal park featuring sports grounds, parking areas for visitors and hotel guests. Underground parking garages for 300 lots will be located under the complex’s buildings. There will be planted ornamental trees and bushes, vegetation zones and flower gardens; the driveways and footpaths, pavements and playgrounds will be paved. .

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IVANO-FRANKIVSK CITY. Investment Manifest

КОНЦЕПЦІЯ РЕКОНСТРУКЦІЇ ІСНУЮЧОГО СТАДІОНУ "РУХ" З БУДІВНИЦТВОМ БАГАТОФУНКЦІЙНОГО СПОРТИВНО-ВІДПОЧИНКОВОГО КОМПЛЕКСУ В М. ІВАНО-ФРАНКІВСЬКУ

ЕКСПЛІКАЦІЯ 1. Головна легкоатлетична арена на базі існуючого стадіону "РУХ"; 2.Розминочна зона - 7900м2 з розташуванням: - 200 метрової бігової доріжки, - місця для метання диска/молота, - місця для метання спису, - місця для штовхання ядра; 3. Ігрова зона - 4700м2 з розташуванням 4-х багатофункційних відкритих майданчиків для ігрових видів спорту: - міні футболу, - гандболу, - флорболу, - баскетболу, - волейболу, - тенісу;

7

9

1

4. Запасне тренувальне повнорозмірне футбольне поле.

5. Споруда закритого типу з розташуванням тренувальних залів з легкої атлетики та адміністративно-побутовими приміщеннями загальною площею - 5000м2

4

6. Споруда закритого типу з розташуванням універсального залу для ігрових видів спорту та спортивних секцій з гімнастики, боксу, боротьби; загальною площею 6000м2;

5

8 9

7. Споруда спортивного (футбольного) клубу з приміщеннями: - техніко-інформаційного центру, - кімнати допінг-контролю, - медичного блоку, - суддівських приміщень, - залу засідань, - кімнати офіційних технічних осіб; загальною площею - 2500м2

6 2

3

7 928,76 м2

4 764,05 м2

9

КОНЦЕПЦІЯ РЕКОНСТРУКЦІЇ ІСНУЮЧОГО СТАДІОНУ "РУХ" З БУДІВНИЦТВОМ БАГАТОФУНКЦІЙНОГО СПОРТИВНО-ВІДПОЧИНКОВОГО КОМПЛЕКСУ В М. ІВАНО-ФРАНКІВСЬКУ

8. Споруда відпочинковорозважального призначення з розташуванням: - приміщень спортивної реабілітації, - сауни з басейном, - масажних, - залу для фітнесу - 400м2, - тренажерного залу - 400м2, - ресторану на 200 місць; загальною площею - 4000м2; 9. Готель на 150 місць Підземні паркінги під спорудами комплексу на 300місць

ВИД 1

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IVANO-FRANKIVSK CITY. Investment Manifest

REHABILITATION OF THE POTOTSKY PALACE, A 18-19TH CENTURY MONUMENT OF ARCHITECTURE Today, an important issue in the area of the City’s cultural heritage protection is preservation of the Pototsky Palace, which is an important historical building and a 18-19th century monument of architecture. Bringing new life to the building may be achieved through its adjustment to needs and demands of the public. The work on a project to adjust the palace to current City’s needs is underway, aiming at creation on its basis an exhibition and museum complex, which will feature exhibition areas, information and media section, a library, a film, photo and video library, a research area, etc. After completion of the project the Complex will be in line with the City’s cultural strategy, and will represent a tourist attraction and a cultural centre.

The palace is favourably located in the City, bordering on recreational, public and administrative, commercial and residential areas. The complex offers a convenient transport connection, as there are several public transport stops within a walking distance. There is also a good pedestrian connectivity with the city centre and the marketplace. Delimitation of the complex with remnants of a rampart and a three-meter wall creates a cozy atmosphere in the palace’s ward, which is a favourable feature for creation of a public and cultural centre.

There are seven major buildings on the complex’s territory, which had various roles in the system of a military hospital (they were built in the 19th century). Currently, the former Pototsky Palace is in bad condition: the buildings are in dire condition, with some being in emergency state. The structures require examination to determine sequence of their dismantling or reinforcement. It is expedient to dismantle one-storey structures.

It is urgent to carry out adaptation, rehabilitation, reconstruction and conversion of both the individual structures and the complex in general.

The top priority rehabilitation target is the left avant-corps at the entrance gate, as it is in best condition and faces the City directly. At the first stage, this zone should be separated from other areas. One of the avant-corpses may be already used as an exhibition facility (e.g. as a commercial gallery). Examinations and measurements of other structures, and dismantling of temporary and low-value structures may be carried out concurrently. Simultaneously, there may be performed design work for the hotel, a recreational and service building, and connection with utilities. Obviously, the examination will reveal architectural and archeological findings, which will be included into the complex’s context after respective preservation.

THE SECOND STAGE

will feature repair and reconstruction of a two-storey (so-called ‘Surgical’) building, and a three-storey building. These buildings will host expositions of the Museum of Private Collections (individual exhibitions), and the work to create the museum of the city’s architecture, and the centre of actual art may be partially commenced. The first avant-corps may host an information and media centre, where the pool of art projects will be created.

THE THIRD STAGE will feature reconstruction of the main palace building and construction of the hotel and recreational building (with restaurant and cinema hall).

THE LAST STAGE will include opening of the northern wall with entrance area, and relocation

of sections of the Museum of Arts and the Museum of the City Architecture to the main palace building of the Pototsky Museum. In addition, the arrangement of the park will be completed and the Centre’s activities will be launched.

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IVANO-FRANKIVSK CITY. Investment Manifest

Upon completion of the project, the Complex will include the following: the Pototsky Period Museum, the museum of the city architecture with the city’s model; the museum of private collections; the centre of children’s art studios; the centre of contemporary or actual art; a private commercial gallery; and a photostudio. Each of these will have their own infrastructure; however, the exhibition areas may be used commercially, except for permanent expositions of the architecture museum, the Pototsky Period Museum, the commercial gallery, certain sections of regional arts museum and the museum of contemporary art.

Integrated, yet independent, will be the projects related to the Complex’s commercial infrastructure: the hotel, the restaurant, the café, the bookshop and the souvenir gift shop, and studio premises.

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IVANO-FRANKIVSK CITY. Investment Manifest

AREAS AVAILABLE FOR PRODUCTION FACILITIES

10

To facilitate and improve interaction with the business the City’s administration publishes information on available production areas of the City’s industrial enterprises, which may be attractive for businesses.

The State represented by the Cabinet of Ministers of Ukraine, under management of the State Concern “Ukroboronprom”

PJSC “Ivano-Frankivsky Zavod “Promprylad””

PJSC ”Rodon”

PJSC ”IFAZ”

public

private

private

private

201, Galytska Str., IvanoFrankivsk

23, Ak. Sakharova Str. IvanoFrankivsk

225, Vovchynetska Str., Ivano-Frankivsk

E.Kovoval Str., Ivano-Frankivsk

lease

lease

lease, sale

lease

Previous use of the facility

manufacturing

electronic device workshop

manufacturing

manufacturing

Possible use of the facility

manufacturing, warehousing

manufacturing

manufacturing, offices

manufacturing

Number of storeys in the building hosting the area

1

4

4 sections containing 3 storeys in each

1

Storey(s), on which the area is located

1

2-3

3 storeys

1

10.3

2.5

65.8

3.9

rectangular

rectangular

rectangular

part of the manufacturing building

6.8

4.8

6 (manufacturing), 3 (offices)

Availability of gas supply or distance to medium-pressure gas pipeline/ gas distribution substation, meters

yes

no

yes

no

Availability of power supply, or distance to electrical grid, meters

yes

yes

yes

yes

Availability of water supply or distance to water pipeline, meters

yes

yes

yes

yes (near the building)

Availability of sewerage or distance to sewage network, meters

yes

yes

yes

yes

Availability of heating and its type

no

possible connection to municipal network and to enterprise’s boiler house

no

no

Availability of access railway or distance to railway freight station, kilometers

3 km

2.5-3 km

5 km

3,5 km

Availability of access motor road

yes

yes

at lateral road

yes

Olexiy Yevgenovytch Verkhovtsev. Chief Engineer.

Phone: (099) 304-88-31

Yaroslav Bogdanovytch Dobrovolskyi. First Deputy Chairman of the Board.

Phone: (0342) 75-05-92

Yaroslav Yaroslavovytch Kaspruk. Chairman of the Supervisory Board. Phone: (0342) 72-32-29; (067)-217-75-00

Ponyuk Yaroslav Ivanovich. Chief Engineer Phone (0342) 77-57-30, (050) 338-98-28

Owner, asset holder

Type of ownership Location of available areas Proposal for investor

Area features

Floor area (thousand sq. m.)

Area shape Premises height, meters Utilities

Access roads

Contact persons

58

INVESTMENT MANIFEST DESIGNED IN COOPERATION WITH THE RATING AGENCY CREDIT-RATING AND IVANO-FRANKIVSK AUTHORITY

Views presented within the document refer to situation as of the date of issue. The document represents introductory material.

The present information is based on sources deemed reliable, however Credit-Rating LTD is released from responsibility for the accuracy of the information. Taking the above, contents of the present document could not be considered as such substituting any independent core analysis procedure.

«Credit-Rating» has been working on the Ukrainian market since 2001 as an authorised credit rating agency providing for assignment of ratings under National Rating Scale. Since the beginning of its activity on the Ukrainian market, «Credit-Rating» has assigned over 1200 ratings.

1, Mezhygirska Str. Kiev 04070 Phone.: +38 (044) 490 25 50 Fax: +38 (044) 490 25 54 e-mail: office@credit-rating.com.ua

The Executive Committee of Ivano-Frankivsk City Council 21, Grushevskogo Str. Ivano-Frankivsk