Post release

Dear guests and partners!

Kherson International Economic Forum “Tavrian Horizons”

was held on November 15th , 2019

The forum is organized with the support of:

Tavrian Horizons 2019 it is:

participants
heads of diplomatic missions
countries of the world

Belgium

Belarus

Great Britain

Greece

Georgia

India

Italy

Canada

Qatar

People's Republic of China

The Republic of Lithuania

Moldova

Norway

The Slovak Republic

Slovenia

Turkey

On November 15th, 2019, the largest economic event of the Kherson region took place – the International Economic Forum “Tavrian Horizons” in the only historical chateau of Ukraine – Prince Trubetskoy.

This year, the Forum brought together representatives of 8 diplomatic missions, people’s deputies of Ukraine, representatives of international financial and donor organizations, domestic and foreign investment companies, banking institutions and civil society institutions.

The forum was moderated by the Head of the Kherson Regional State Administration Yuriy Husyev.

The Head of Kherson Regional State Administration Yuriy Husyev noted the significant investment potential of the Kherson region. So, the region has a developed agro-industrial complex, a favorable location in terms of transport logistics, unique tourist pearls.

In addition, world-wide processing companies, such as Chumak, Inagro, Danon, and Cargill, are successfully operating. He noted that the potential for increasing processing capacities is extremely high, therefore, the project on creating an effective and innovative irrigation restoration system with the inclusion of key players in this sector is a priority and has the support of the President of Ukraine.

He emphasized that Kherson region is a transport and logistics hub in the south of Ukraine. Kherson International Airport operates in the region, which operates scheduled flights to Istanbul, Kiev, and from December Ryanair launches new routes to the European cities of Krakow, and subsequently Vienna. He noted that Kherson Airport was included in the list of pilot regional airports for which IFC experts will develop a model of public-private partnership.

He noted that the Kherson Commercial Sea Port is a pilot project for the concession of a state enterprise of the Ministry of Infrastructure of Ukraine, which opens up great opportunities for private investors to create a powerful transport and logistics hub.

Negotiations are also ongoing with investors to attract investment in the Skadovsk Commercial Sea Port, as well as the restoration of ferry services from Zonguldak.

He emphasized that 2 transit international corridors pass through the region, therefore, the restoration and creation of high-quality road infrastructure, in particular under the Agreement concluded between the Prime Minister of Ukraine and the EBRD in this direction, is a priority for us. It is planned to attract investors to the construction of concession roads. In addition, the field of alternative energy is dynamically developing due to the high level of solar insolation and wind energy.

In addition, the Head of Kherson regional state administration noted that the Kherson region could become a free economic zone in the future.

Gennadiy Chyzhykov, chairman of the Ukrainian Chamber of Commerce and Industry, noted that investments start from people and a favorable business climate. He noted that the Chamber of Commerce and Industry of Ukraine is ready to continue cooperation with the Regional State Administration so that the Kherson region becomes the flagship of economic growth of Ukraine. Mr. Chyzhykov noted the priorities of the organization that he leads, in particular, are improving the business climate, developing SMEs and assisting in the process of entering new markets of the world, as well as attracting investors.

Elena Voloshyna, Head of the IFC Operation in Ukraine, said that the Kherson region, namely the concession project of the SE “Kherson Commercial Sea Port”, is a pilot project of the International Finance Corporation. She emphasized that 40 potential investors are considering investment opportunities in the concession project, in particular, from China, Europe, Arab countries and, of course, Ukraine. In addition, Elena, noted that IFC fruitfully cooperates with the enterprises of the region and expressed the willingness of the corporation to continue working in Kherson region.

Mark Magaletsky, EBRD Vice President in Ukraine, noted that the European Bank for Reconstruction and Development in Ukraine is financing large-scale investment projects in the Kherson region, such as the construction of a 250 MW wind farm in the Chaplynka district.

In addition, Mr. Mark noted that financing of the Kherson City Council project, worth a total of EUR 10 mln, has been completed, namely the development of the Kherson municipal infrastructure, the renewal of rolling stock and the development of the contact network, substations. Mr. Mark hoped that the previous loan agreement for financing the regional roads of the Kherson region, which was concluded during the forum in Mariupol, will be implemented.

Anatoliy Kinakh, President of the Ukrainian Non-Governmental Organization “Ukrainian Union of Industrialists and Entrepreneurs”, assured that the Kherson region has all opportunities for successful development, in particular in the direction of setting up industrial enterprises, namely processing of agro-industrial products. It will allow producing value-added products. Mr. Anatoly noted that the investment climate shapes the rule of law, equal transparent competition, and the ability of the state to protect the investor.

Dhruba Charan Panda, co-owner of Chumak PJSC, chairman of the board of directors of Delta Wilmar CIS LLC, noted that Kherson region has significant opportunities for the development of investment activities, both natural resources and human capital. In addition, Mr. Panda noted that Chumak PJSC plans to expand its own production capacities and export geography, as well as developing irrigation in the Kherson region.

Sergiy Sypko, president of the AGROFUSION group of companies, acquainted presented successful activities of the company in the Kherson region and noted that in order to ensure changes and increase the level of the investment climate, it is necessary to combat the “shadow” business and reduce pressure on the legal business by reducing the number of inspections. In addition, he noted that monopoly electricity and gas supply companies have discriminatory tariffs for industrial consumers. Mr. Sergiy noted that labor legislation requires changes because it does not take into account the specifics of the agro-industrial complex.

Torstein Jenssen, Senior Vice President of NBT AS, noted that Kherson region has significant potential in the wind energy sector. For example, NBT AS has been implementing a wind farm project in Chaplynka district for 2 years. In particular, 63 wind turbines with a capacity of 250 MW will be installed, the total investment will amount to 400 million euros, currently 800 people are working on the construction, mainly residents of the Kherson region.

In addition, Mr. Torsten noted that now the legislation of Ukraine in the field of alternative energy sources, namely in terms of establishing a “green” tariff for facilities that produce clean energy, is very favorable and expressed hope for the preservation of this vector of the state in the future.

Carl Sturen, General Director of the VINDKRAFT group of companies, noted that the investment climate in the Kherson region is very favorable and spoke about many years of positive experience in the Kherson region in various fields. In addition, he noted that the Kherson region has significant potential in the implementation of alternative energy facilities, in particular solar, wind and hydro. He noted that for 10 years he has been working towards the introduction of alternative energy facilities, namely the construction of wind farms and energy substations.

One of the Forum speakers was Volodymyr Kozyavkin, President of Kozyavkin Medical Technologies LLC. Mr. Volodymyr introduced the attendees to the highly effective treatment technology for patients with cerebral palsy, osteochondrosis and the consequences of injuries and organic damage to the nervous system. He noted that his method was developed more than 30 years ago, officially recognized by the Ukrainian government and, thanks to its effectiveness, gained wide international prestige.

In addition, Mr. Volodymyr noted that for the long-term development of medicine and tourism as highly profitable sectors of the economy, improving the level of tourism infrastructure, forming the image of the Genichesk district and the Arabat Spit as a unique territory for tourism, recreation and rehabilitation, as well as the development of aviation infrastructure in Kherson region. It is planned to attract investments in the project “Creation of a multifunctional rehabilitation center” InterMedicalEcoCity “on the territory of the Genichesk district.

The investment magnet “Innovative Irrigation” was presented to the participants by the director of the Department of Agro-Industrial Development of the Regional State Administration Oleksandr Palyvoda.

In particular, he noted that Kherson region is a region that, according to its climatic conditions, belongs to the risky farming zone, and in such irrigation conditions it is an integral and powerful factor in increasing agricultural productivity, the state and region insurance fund. Thanks to irrigation region has stable crops and is the undisputed leader in Ukraine in terms of production of fruit and vegetable products.

Oleksandr Palyvoda also outlined the development of irrigation in the region and spoke about the creation of an investment platform with the expansion of irrigation to 600 k ha of irrigated land.

Increasing of irrigated area will give a positive effect for Kherson region. First of all, the gross domestic product will increase by UAH 6 billion, productivity will increase in 2–4 times, 30 k people will receive new jobs, increasing of revenues to budgets of all levels.

During the event, Ihor Syrota, Director General of PJSC Ukrhydroenergo, spoke about the company’s promising projects, focusing on the construction of the Kakhovka HPP-2. Despite the relatively small share of hydropower in the overall balance of the region, Ukraine lacks regulatory capacities. The correction of the situation will help the commissioning of new hydropower plants and PSPs. The construction of the Kakhovska HPP-2 will allow increasing the total installed capacity of the Kakhovka hydroelectric complex by 250 MW by installing new hydropower units, while ensuring additional electricity production to cover demand in the peak zone of the load schedule and reduce the production of electric energy in the base and half-peak zones of the daily load schedule.

The construction of the Kakhovka HPP-2 is provided for by the Energy Strategy of Ukraine for the period until 2035. The installation of additional units will increase the use of runoff of the Kakhovka hydroelectric complex to 95%, and thus increase electricity production. The construction of the Kakhovka HPP-2 is a significant contribution to the reliability of the United Energy System and the energy independence of Ukraine, Mr. Ihor noted.

Within the framework of the Forum, Volodymyr Garashchenko, the head of the Kherson branch of the State Administration “Seaports of Ukraine” introduced the technical characteristics of the State Enterprise “Kherson Commercial Sea Port” and noted that the concession is a form of public-private partnership, in which the state or local community provides a private investor – to the concessionaire for a fee the right to create, build and manage a concession for a specified period. So, SE “KCSP” is a pilot project in the framework of the strategic development of the port industry. Since 2015 it has been going through a difficult concession path. “The concessionaire, mainly on its own, bears the commercial risk of the project, the property is temporarily transferred to the management of the concessionaire, remains in state ownership. At the end of the contract, it is returned to the state along with all facilities built or modernized by the investor in the implementation of the concession project”, Volodymyr said.

In addition, he noted that the deadline for submitting applications for participation in the concession tender is December 6, 2019.

Within the framework of the Forum 6 memorandums on cooperation and realization of investment projects were concluded, in particular:

1. Memorandum of Cooperation between Kherson Regional State Administration and LLC “Kozyavkin International Rehabilitation Clinic” in the field of implementation of the investment project “Creation of multifunctional rehabilitation center” InterMedicalEcoCity” on the territory of the Henichesk district of Kherson region

The signing of the memorandum will help to unite efforts for the long-term development of medicine and tourism as highly profitable sectors of the economy, improving the level of tourist infrastructure, as well as the formation of the image of Henichesk district and Arabat Spit, in particular, as a unique territory for tourism, recreation and rehabilitation.

Creation of a rehabilitation center using the Kozyavkin Method (Intensive Neurophysiological Rehabilitation System) will provide medical rehabilitation to adults and children suffering from cerebral palsy, chronic diseases of the nervous system, musculoskeletal and parotid infections and rehabilitation on an ongoing basis.

The implementation of the project will allow the creation of a modern specialized hospital for 250 inpatient beds. Over 700 new jobs will be created during the project period, which will increase the employment of the population in the region. Estimated personal income tax revenues from local budgets are expected to be UAH 8.0 million annually.

To complete the first phase of construction of the complex and commissioning is needed (according to preliminary estimates) about $ 25.0 mln USA for the final works.

2. Memorandum of Cooperation between Kherson Regional State Administration and PJSC “CHUMAK” on investment development.

The implementation of this memorandum will increase the volume of foreign and domestic investments involved in the economy of Kherson region, will contribute to the development the region’s infrastructure. The Memorandum provides:

  • increasing of capacities of PJSC “CHUMAK” for processing of tomatoes;
  • introduction of programs to support farms in order to stimulate the increase of areas for growing vegetables, in particular tomatoes, to ensure their own production programs of the enterprise;
  • participation in the development of irrigation systems for the needs of farmers in Kherson region;
  • increasing of capacities of PJSC “CHUMAK” for production of pasta and mayonnaise;
  • gradual introduction in the production of energy-saving projects;
  • ensuring decent social standards and decent wages for the employees of PJSC “CHUMAK”, as well as creating new jobs in accordance with the perspective development plan of the enterprise;
  • adherence to the implementation of social programs to support the local community.

3. Memorandum of Cooperation between the Kherson Regional State Administration and the AGROFUSION Group of Companies on the implementation of an investment project for the construction of a complex for deep processing of tomatoes in the Chaplinka district of Kherson region.

The purpose of the memorandum is to implement an investment project for the construction of a complex for deep processing of tomatoes in the Chaplinka district, using the latest technologies and best modern experience. The implementation of the project will help to increase the favorable conditions for the economic development of the region and the modernization of the material and technical base of the agro-industrial complex, increase the production of agricultural products with a high share of added value.

The estimated production capacity of the plant is 250.0 thousand tons of tomatoes per year.

As a result of the project, it is planned to create about 300 jobs (including 135 seasonal).

4. Memorandum of Cooperation between Kherson Regional State Administration and PJSC “Ukrhydroenergo” on realization of the investment project “Construction of Kakhovka HPP-2”

The purpose of the memorandum is the implementation of the investment project “Construction of Kakhovka HPP-2 with a capacity of 250 MW in the territory of Beryslav district”, which will contribute the increasing of energy generating capacities for reliable generation and supply electricity to industrial consumers and the population. It will increase the efficiency of the integrated energy system in Ukraine. European energy system, reducing imports of energy resources. Today the capacity of the Kakhovka hydroelectric power plant is 334.8 MW.

To optimize the operation of the Kakhovka Hydroelectric Plant it is necessary to increase its installed capacity by introducing additional hydroelectric units. The installation of additional units will increase the utilization of runoff by all Kakhovka HPP turbines by up to 95%, and thus increase electricity production.

5. Memorandum of Cooperation and Partnership between Kherson Regional State Administration and OZRA INTERNATIONAL TRADING LLC.

The conclusion of the memorandum will activate the development of socio-economic, investment activities, attract foreign and domestic investment, develop infrastructure in the region.

It is planned to implement an investment project for the construction of an asphalt mix production plant with a capacity of 240-360 tons per hour and attracting 1,5 mln euros of investment. Implementation of the project is scheduled for March 2020.

6. Memorandum of cooperation and partnership between the Kherson Regional State Administration and LLC Agroport Ukraine.

The conclusion of the memorandum will contribute to the implementation of the investment project Agrarian Technopark Agroport South in the Kherson region. It’s aim is increasing the promotion and image of the Kherson region, attracting investments in the agricultural sector, adapting agricultural producers and their farms to current market conditions, creating innovative objects of modern market infrastructure, attracting investments in its development and the formation on its basis of new business projects in the Kherson region and the southern regions of Ukraine.

In accordance with the aforementioned memorandum, cooperation between the Kherson Regional State Administration and LLC Agroport of Ukraine provides for:

  • design and creation in the Kherson region of innovative infrastructure for domestic and foreign participants of the agricultural market of all forms of ownership;
  • development of innovative infrastructure in the agro-industrial sector as a single complex and one of the promising and large-scale investment projects of the Kherson region to provide an additional impetus to the development of other sectors of the regional economy;
  • establishment and implementation of coordinated informational support for agribusiness entities in attracting investments, exchanging technologies and organizing the marketing of products (goods, objects of intellectual property rights and services);
  • conducting proactive and mutually agreed work to expand the circle of partners and improve the investment image of the Kherson region.