The first industrial park has received funding under the state programme to stimulate the development of industrial parks under the “Made in Ukraine” policy.
The programme provides funding of up to UAH 150 million to ensure the construction of the necessary infrastructure. Funds are provided on a non-refundable basis, covering up to 50% of the estimated cost of works such as land development or construction of engineering and transport infrastructure. The programme also provides for compensation of up to 50% of the cost of connecting to the power grid. For the de-occupied territories, the Government covers 80% of the cost.
An industrial park in the city of Dnipro was the first to receive such funding. The park’s management company requested UAH 150 million out of the required UAH 326.9 million to build a transformer substation.
“The launch of the state incentive programme for industrial parks is an important step towards restoring and developing Ukraine’s industrial potential and one of the key components of the “Made in Ukraine” policy. The programme helps attract investment in the real sector by providing support to investors. In return, they create new jobs and pay taxes. Estimates show that 1 hectare of an industrial park can create 50 new jobs, and $1 of public investment in the infrastructure of industrial parks can attract $6 of additional private investment,” said Yuliia Svyrydenko, First Deputy Prime Minister and Minister of Economy of Ukraine.
According to her, the programme provides for safeguards and clear requirements for applicants, which guarantees the efficient use of funds.
To protect the interests of the state, safeguards have been established: applicants are required to build at least 5,000 square metres of industrial buildings in the park within three years and to involve at least two participants. Funding is provided through escrow accounts with state-owned banks, which allows applicants to choose the most convenient bank for servicing.
The support of state-owned banks ensures transparency of the financing process and enables businesses to choose the most convenient terms of service.
This year, for the first time, the state budget allocated funds to stimulate industrial parks. This initiative was a response to the challenges posed by russia’s full-scale invasion. In total, one billion hryvnias have been allocated in the Ukrainian budget for this programme.
Ukreximbank, Oschadbank and Ukrgasbank are the Ministry of Economy’s partners in implementing the programme. (Government portal)