The state will invest in the creation of infrastructure for two phases of the Bila Tserkva Industrial Park
The state is investing in the development of industry in regions. The first and second phases of the ‘Bila Tserkva’ industrial park have secured government support under the ‘Made in Ukraine’ program. The investments will be directed toward the creation of technical and transport infrastructure to meet the growing needs of the industrial park’s residents. Under the program’s conditions, the state covers up to 50% of the costs for water supply and sewage network construction projects, the construction of new electrical networks, and the capital repair of road surfaces.
State funding is provided under the obligation to commission production buildings with a total area of over 10,000 square meters and to attract four participants to the industrial park within three years from the date of signing the state incentive agreement.
Kyiv, October 14, 2024. — The initiators of the creation of the ‘Bila Tserkva’ and ‘Bila Tserkva 2’ industrial parks, namely the companies ‘IP Bila Tserkva 1’ LLC and ‘IP Bila Tserkva 2’ LLC, have received state funding for the development of technical and transportation infrastructure as part of the ‘Made in Ukraine’ program. The relevant orders were signed by Ukraine’s Deputy Minister of Economy, Vitalii Kindrativ.
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The co-financing from the Ministry of Economy and the applicant company is distributed on a 50/50 ratio. When a manufacturing company decides to become a resident of an industrial park, it arrives at a fully prepared industrial site where tax and customs incentives are already in place,» Vitalii Kindrativ, said.
The procedure for providing funds for the development of industrial parks was approved by the Resolution of the Cabinet of Ministers of Ukraine on June 4, 2024, No. 644. This resolution outlines the amount of state funding available. The state may co-finance up to 50% of project costs, with the remaining 50% covered by the applicant’s own funds or local budgets. State incentives can be provided to a single applicant for each type of state support, with the total amount not exceeding 150 million UAH.
In the two phases of the Bila Tserkva Industrial Park, 50% of the project costs for constructing a water supply and sewage network, and the new construction of electrical networks will be financed by the state budget. State incentives will also be directed towards the implementation of the capital road surface repair project and other infrastructure improvements at the industrial site located at 150-B and 150-G Independence (Nezalezhnosti) Avenue in Bila Tserkva, Kyiv region.
The total investment for the implementation of projects related to the construction of technical infrastructure and the capital repair of the road surface amounts to 292 million UAH, of which the state co-financing share is 146 million UAH.
One of the key conditions for receiving state co-financing is the obligation of the initiators of the industrial parks — ‘IP Bila Tserkva 1’ LLC and ‘IP Bila Tserkva 2’ LLC — to commission production buildings with a total area of over 10,000 square meters and to attract at least four participants to the industrial park within three years from the date of signing the state incentive agreement. If these requirements are not met, the budgetary funds must be returned to the Ministry of Economy for subsequent transfer back to the state budget in accordance with the established legal procedures.
The supervision of construction work is carried out by a consultant engineer, who approves the certificates of completed work. These certificates, along with payment documents, serve as the basis for the authorized bank to transfer a portion of the state-allocated funds from the escrow account to the account of the construction contractor. The authorized bank managing the investment process is ‘Ukrgasbank’ JSC.
According to the calculations of the Ministry of Economy of Ukraine, every dollar invested in the infrastructure of an industrial park is expected to generate 10 to 20 dollars of private investment in production facilities, equipment, and technologies, while creating approximately 50 to 100 jobs per hectare. This makes the industrial park an accelerator of regional economic growth, following the example of developed countries.
ADDITIONAL INFORMATION
The ‘Bila Tserkva’ industrial park, covering over 24 hectares, was included in the register of industrial parks on April 13, 2018. The ‘Bila Tserkva 2’ industrial park, spanning more than 34 hectares, was added to the same registry on October 4, 2018. Both projects are part of UFuture holding company. The goal of these industrial parks is to establish the infrastructure and conditions necessary for sustainable industrial development in Ukraine.