INFRASTRUCTURE

• In February 2019 Member of the National Investment Council of Ukraine, Korean Posco International acquired 75% share of a grain terminal in Mykolayiv. An agreement has been signed with the Ukrainian logistics operator Orexim Group, entitling Posco International to operating rights over the terminal. The facility is capable of shipping 2.5 mln tons of grain a year. Posco International was the first Korean company owning a grain terminal abroad. Team of the Office of the National Investment led the project from the initial negotiation to the completion stage. Moreover following the successful deal Posco International recently asked for ONIC’s assistance to extend its presence in Ukraine. Currently, ONIC team works closely with Posco International, Ministry of Infrastructure, and Ukrainian Sea Ports Authority on anther investment in port infrastructure.

• In February 2020 member of the National Investment Council of Ukraine and one of the top 3 global port operators DP World acquired a controlling stake in TIS port terminal. DP World Ukraine has undertaken to develop TIS port in several dimensions, including setting up industrial park similar to DP World flagship project Jebel Ali Free Zone. Team of the Office of the National Investment council enabled the project implementation by unlocking the initial stage of negotiations with the high-level stakeholders.

• The Law on concessions – adopted by the Parliament and signed by the President, October 2019. ONIC team was actively involved in initiating the law, drafting and finalizing the text thereof. ONIC team played a pivotal role in advocating the draft law within the Parliamentary Committee on Economic Policy and the Office of the President.

   

  • Qatari terminal operating company QTerminals has won a concession tender for Olvia seaport in Mykolaiv Oblast. As a result, Ukraine will receive $140 million in investment in the next five years, as well as another $3.3 million every year as a concession fee from QTerminals, a paycheck 16 times larger than the port’s profits in 2019.

   

  • The Risoil-Kherson company has won the concession tender for the Kherson Commercial Port. The company undertook to invest about UAH 300 million. In addition, Risoil-Kherson will invest more than UAH 18 million in local infrastructure.

RENEWABLE ENERGY

• Member of the National Investment Council, GE, and EuroCape Ukraine LLC, a subsidiary of independent renewable energy company LongWing Energy SCA, invested into the first phase of the Zaporizhya wind farm. Overall EuroCape and GE investment in wind project in Ukraine is valued at $ 400 million and includes construction of 500 MW wind energy facilities. The debt financing of $150 million is provided by Overseas Private Investment Corporation with P. Morgan as hedge provider. ONIC negotiated and built dialogue with the state entity “Energorynok” as a counterparty under the PPA. ONIC team played a crucial role in reaching agreement on principal terms of the PPA such as dispute resolution clause and direct agreements. ONIC actively advocated for the project within the Ministry of Energy and the Administration of the President of Ukraine.

• In January 2019 Norwegian investor NBT launched a construction of 250 MW windfarm in the Kherson region of southern Ukraine, which is the largest wind park in Ukraine. The project was also supported by the EBRD by arranging a syndicated loan. Overall NBT investment in wind project in Ukraine is valued at $ 400 million. The project includes construction of 54 wind power installations with total capacity of 250 MW. Notably the signing ceremony for the EBRD-NBT with the participation of the President of Ukraine P.Poroshenko took place at the Meeting of the National Investment Council in Davos, on January 23, 2019. ONIC team pushed for the project within the Ministry of Energy, state entity “Energorynok” and the Administration of the President of Ukraine.

CLEAN NUCLEAR

• In May 2019 Member of the National Investment Council HOLTEC constructed Ukraine’s Central Spent Fuel Storage Facility (CSFSF), valued over $250 million. The CSFSF, designed for 100-year service life, will receive and store used fuel in a robust confinement system shipped from nine of Ukraine’s reactors. The project contributes substantially to replacement of coal-fired plants with “walk away” safe nuclear reactors.

OIL AND GAS UPSTREAM

• ONIC advocated for a legislation to liberalize the oil and gas upstream and to unblock electronic tenders for subsoil use and production sharing agreements (PSA). The efforts resulted in successful tenders for hydrocarbon production in July 2019, attracting over $430 million investment commitment from American, Canadian and Ukrainian companies. In result of the tender consortium with Vermilion Energy (Canada) received 2 lots, Aspect Energy (USA) obtained 1 lot, Geo Alliance received 1 lot. The winners will invest into well drilling during 5 years. Investors will hold up to 70% of the compensation of the exploration expenses while the share of the state will reach 12 to 35%

AGRO

• Dacsa Bunge Ukraine, a company with 100% foreign investment founded by Member of the National Investment Council, the American company Bunge, one of the largest global agricultural commodities suppliers and the leading corn processor in Europe Dacsa Group (Spain), in December 2020 commissioned a new plant (in Vinnytsya region) for processing of corn with an annual designed capacity of 100 thousand tons per year. The total investment of the project is $14 million. New plant is equipped with modern Italian machinery for processing corn into flour and cereal with a total capacity of 300 t per day and 80% of finished products are planned to be sold for export.

• Member of the National Investment Council, American food corporation Cargill, and  Ukrainian stevedoring company MV Cargo, commissioned in September 2019 new grain terminal in port Pivdennyi – Neptun. The project was implemented with the support of EBRD and IFC and the estimated cost was $150 million. Terminal capacity is 5 million tons of grain per year. It can store up to 290,000 tons of grain at a time in a flat storage warehouse together with 14 silos bins. In 2019/2020 Neptun has transshipped over 2.5 million tons of agricultural commodities.

MANUFACTURING

• In May 2018, a world’s leading producer of sport equipment, Head, signed $80 million deal to build a new plant in Vinnitsa, Ukraine. ONIC team led all stages of the project and organised a number of meetings between the Head top-executives and the Presidents of Ukraine P. Poroshenko and V. Zelenskyy to secure a high-level support for the project.

• Member of the National Investment Council, ArcelorMittal Kryvyi Rih, started construction of a new pellet plant last fall. The investment in the construction project amounted to $250 million. The new pelletizing plant will annually produce 5 million tons of iron ore pellets. Its construction will enable AMKR to decommission two operating sinter shops. The commissioning of the pelletizing plant and upcoming reconstruction of the blast furnace No. 9 will contribute to a significant reduction in coke consumption in sinter and blast furnace production and, as a result, a decline in pollutant emissions. The project implementation, along with the closure of the two sinter shops and reconstruction of the sinter shop No. 2, will enable AMKR to reduce the total volume of pollutant emissions by 78 thousand tons. Total СО2 emissions will drop by 800 thousand tons per annum.

• Kostal Ukraine LLC is part of the KOSTAL Group, a family company with a 100-year history, on summer 2020 started construction of a new plant (second in Ukraine) for the production of mechatronic products. TFor the implementation of the project, 13 million euros of investment will be attracted for the construction of the plant and another 26 million to equip it with the necessary equipment. The new plant will create 900 jobs in the region. Over 14 years of existence in Ukraine, the company has created a staff of highly qualified employees and has established itself as a reliable supplier for well-known automotive companies such as FORD, VW, Daimler, BMW, Renault, Skoda, Seat, Porsche, Audi, Lamborghini.

For General Information, Contacts or Investment Support, please email us at: office@nicouncil.org.ua

Address:

Office of the National Investment Council 1
1 Bankova St, 01220
Kyiv, Ukraine

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