17:32 19.06.2020


Big win. Why investors came to the regions

4 min read
Big win. Why investors came to the regions

Ivan Gerasymenko,  Advisor to the Head of Dnipropetrovsk Regional State Administration


In early June, Minister of Infrastructure Vladyslav Kryklii paid a visit to Dnipropetrovsk region. Together with the leaders of the region, he visited several important facilities. They can be conditionally divided into new - successful, and old - crisis ones.

Successful modern stories provide for attracting investments, development of united territorial communities and decentralization. However, there are facilities, both in the territory of  Dnipropetrovsk region and throughout Ukraine, which were founded in Tsarist times and still functioning today. They rather survive than live, though. Today these enterprises are either idle or minimally loaded with orders. But in due time their workings out and production were famous far beyond the borders of Ukraine.

Here are two examples. Major representatives of the machine-building industry are the Dnipro Electric Locomotive Plant and Dnipropetrovsk Diesel Locomotive Repair Plant. Both today have multimillion tax debts and wage arrears.

The Dnipro Electric Locomotive Plant is included into the list of facilities subject to privatization in 2020. And in the report on the activities of the Dnipropetrovsk Diesel Locomotive Repair Plant for 2019, the causes of its problems are described in details, while there is a clear understanding that exactly investments will provide sustainable development of production.

These two plants of the mechanical engineering industry can become magnets for investors if breathing new life into them. Developments and new technologies in the field of railway engineering will always be in demand and relevant. The state investment policy should be directed at them, and the region, in turn, is ready to lobby for this direction.

At the same time, successful projects have been implemented by Zelenodolsk city united territorial community. Favorable geographical position, as well as cooperation between local business and authorities made the investments possible right now, not at a later date without crisis and pandemics.

Let’s follow some examples. In the shortest possible time, the Marianske Solar Power Station, and the River Transshipment Terminal of "Nibulon" agricultural company have been launched in Apostolovsky district. These facilities are the stories of success and prospects. Workplaces, millions of budget revenues, optimization of work processes for each of the areas, image dividends for the region as a whole.

"Zelenodolsk" Branch of  JSC JV "NIBULON":

- about 120 new workplaces;

- 5 million hryvnias to the budget;

- unloading of regional roads by 12.5 thousand trucks per year due to the transportation of products by water;

- 11 million hryvnias of investment in the development of the community.

Characteristics of the Marianske Solar Power Station in figures:

- more than 1.5 million hryvnias to the budget annually;

- production of 14.8 million kWt of electricity per year that will provide about 8 thousand households;

- reduction by 16 thousand tons of CO2 emissions into the atmosphere.

The station will provide for selling the solar energy at the "green tariff" and will pay off to investors within 4 years.

By the way, recently the elevator of a large investment and construction company Kadorr Group will be opened in Piatykhatky district of Dnipropetrovsk region, which once again shows the desire of investors to develop the agricultural industry.

Going back to mechanical engineering. Such enterprises are hundreds of qualified specialists, an extensive production and research base. Huge orders for goods and services could be carried out at their facilities. However, technologies and equipment have been outdated, and debts do not allow developing and moving forward.

The experience of creating the industrial and technological parks on inefficiently used territories of plants is interesting. These are quite extensive areas. By creating conditions for attracting investors (tax benefits, for example), the government stimulates the arrival of private companies and, consequently, the development of the territories. This includes the improvement and renewal of the infrastructure of enterprises, as well as the attraction of innovations and modern scientific developments.

The global market is unstable and volatile. The coronavirus crisis has hit all spheres of life of the state. However, one cannot deny the success of the Ukrainian regions development, the Dnipropetrovsk region, in particular.  The desire of all levels of government to attract investments and implement successful global practices in the budget-forming sectors should be the main priority of economic activity.