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Modern economic POTENTIAL OF UKRAINE |
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Investment portrait of Kirovograd regionWith the aim of fulfilling the Presidential program "Ten steps toward people", a special agenda was formed to stimulate investments to the region's economy by local authorities. There was also a non-governmental investors' council organized under the aegis of the regional administration. On September 15-16, 2005 the regional administration organized an International investment forum within the framework of "Ukraine's investment image" in order to increase investments into the region's economy, promote local commodity production, scientific and technical research achievements, and broaden business relations. There were 49 international investors, 10 diplomats, 6 members of the Parliament, as well as local authorities and businessmen taking part in the forum. The "Single investment window" project was presented during the forum. Within the framework of that project both investors and recipients received the following services:
The schedule of investment activities for 2005-2006 had been worked out by the regional state administration. The next activity planned is the Forum on the issue of house-building. Regulatory environmentFavorable conditions for onset and accomplishment of business activities were arranged in the region:
Transport infrastructureThe advantageous geographical location of Kirovograd region – in the center of Ukraine led to the development of an advanced transport network for railway and motor transport. The territory is intersected by railway roads that connect the Donetsk Basin and the Carpathians, as well as industrial and agricultural southern regions with southwest and center of Ukraine. The railway road network is 936.9 km long. The density of the network is 25 km for each 1,000 square km. The most important directions are: Kiev – Dnepropetrovsk, Kharkov – Odessa, Kiev – Kherson, Znamenka – Nikolaev; international directions: Znamenka – Moscow, Dnepropetrovsk - St. Petersburg, Adler – Chisinau, Chisinau – Saratov, Simpheropol – Minsk, and Simpheropol – Polotsk. Kirovograd region has 10 highways that are 728.7 km long and connect Ukraine with other countries of the Commonwealth of Independent States as well as with Central and Southern Europe. The density of the network is 285.0 km for each 1,000 km. There are several arterial roads running through the region: Kiev – Odessa, Kirovograd – Nikolaev, Kiev – Dnepropetrovsk, Kharkov – Odessa, and Poltava – Chisinau The Kirovograd airport satisfies the requirements of the third degree of ICAO reqiurements. State enterprise “Ukrainian airlines” is also located in Kirovograd as well as two commercial companies, “URGA” and “Chaika”, which work for international airlines. “URGA” airline is a member of European Regional Airlines (ERA). To make a functional national transport network suitable for international transportation in Ukraine part of the arterial road Kiev – Odessa that is located on the region’s territory is now under reconstruction. The regional airport “Kirovograd” is suitable for airplanes in the Yak-40 and An-24 class. One of two runways (1,300 m) is operating. The other runway is forthcoming. It is 1,318 m long (designed length is 2,000 m). Investments are needed for out-fitting the runway to allow for use of airplanes of a higher class. CommunicationThe region has 44 enterprises (state and commercial), which provide communication services. The main communication companies are: Kirovograd’s branch of OJSC “Ukrtelecom”, branch of “Ukrainian mobile connection”, Kirovograd’s branch of Ukrainian-German enterprise “Infokom”, Kirovograd regional radio and television broadcasting center, Kirovograd department of Ukrainian state mail service company “Ukrpochta” (Ukrainian Post office). Mobile operators are: international Ukrainian-German-Dutch-Danish enterprise “Ukrainian mobile connection” and “Kievstar”. Throughout the area, there are optical fiber communication lines “South”, “East”, “Dnepr - Donetsk Basin” that now provide 1,080 digital circuits. Natural gas industry supplyProviding natural gas to the cities, towns and villages in the area is fulfilled by OJSC “Kirovogradgas”. In total there are 7 cities, 12 towns and 139 villages that are supplied with gas. An extension of street gas system at the end of 2004 was 3,326.4 km. Moreover, the single extension of the system in a quarter of the city (in yard) was 2,364.4 km. Gas pipelines and gas control points are in satisfactory technical condition and satisfy requirements of all documents for inspection, certification, safe and reliable use of buildings, constructions and gas service pipes. The program of the gas system for years 2006-2015 is developed in the region. Electric power supplyElectrical power potential of the region is presented by 5 power stations for general use, The largest of them is the branch of “Kremenchugskaya Hydroelectric Power Station” OJSC “UkrHydroEnergo” with 625.0 ths. kW of power, 4 local hydroelectric power stations that belong to OJSC “Kirovogradoblenergo” (Ternov, Gaivoron, Chervonokhutor, Novoarkhangelsk districts). Their mutual power is 12.25 ths. kW. Furthermore, electrical power is provided by electric power plants, electric generators and mobile power plants. A supply of electric power to the provinces is carried out by OJSC “Kirovogradoblenergo” that now has a monopoly in this sphere. Primary types of licensing in OJSC “Kirovogradoblenergo” are production, delivery, provision of electric power for consumers in Kirovograd and its districts with rates that are regulated by state law. Water supplyThe cities Kirovograd, Alexandria, Svetlovodsk, Znamenka, and villages of Kirovograd districts are supplied with water by the water-supply system “Dnepr - Kirovograd”, which was put into operation in 1973. The system was designed to produce 168 ths. cu. m of drinking water a day. An arterial water pipe 120 km long from the Kremenchug storage pond to Kirovograd represents a complex of hydro engineering constructions that contain siphon intakes, pumping stations, precipitation tanks, filters, reagent economy, electric networks and substations, pipe lines with an extension 240 km long, pipe canals and subsidiary constructions. Centralized water supply service is provided to all the cities in the region: Kirovograd – 88.6 %, Svetlovodsk – 81.3%, Znamenka – 76.8%, and Alexandria – 76.5% of the population. Demographic state of the labor-marketThe economically active population is about 500 ths. people, 325.5 ths. of them are urban inhabitants and 173.8 ths. - countrymen. Within the structure of economically active population 13.9% of citizens and 8.7% of countrymen have completed higher education, 1.6% of citizens and 3.8% of countrymen have basic higher education, 26.2% of citizens and 13.1% of countrymen have incomplete higher education. Development of foreign investment in the regionThere are 75 enterprises with foreign investments in the region. Their activity categories are: industry – 27; wholesale and retail trade – 24; real estate activities (lease and services for legal persons) – 5; agriculture, hunting, forestry – 8; building – 4; transport – 5; hotels – 1; and public utilities – 1. Investments to the economy of the region were made by 25 countries, which include the United Kingdom, Cyprus, British Virgin Islands, and the U.S.A. (90.9% of total investment volume belongs to these countries). The total volume of foreign investments by July, 1 2005 was USD 118.1 mn, including USD 12.6 mn in the first half of the year. Geography and natural resourcesKirovograd region is located in the central part of Ukraine, on the south of Pridnieprovskaya eminence, between the rivers Dnepr and Yuzhnyi Bug and borders on Nikolaev, Odessa, Vinnitsa, Cherkassy, Poltava, and Dnepropetrovsk regions. The region covers 24.6 ths. sq. km (4.1% of the territory of Ukraine). The region has 438 rivers with a total length over 5.5 ths. km including the Dnepr, Yuzhnyi Bug, Sinyuha, Ingulets, Ingul, Tyasmin, Yatran, and others. The section of Dnepr located in the area is transformed into “artificial seas” (the Kremenchug and Dneprodzerzhinsk storage ponds). The section of Dnepr between the storage ponds is known for its fluxes with pictorial sights of high grass groupments, an amazing world of birds and typical flood-land landscapes. Places like that are very rare, so this area is very unique. Kirovograd area is located on the border of two natural climatic zones – forest-steppe and steppe. The climate is mildly warm. The total territory of the forests is 114.6 ths. ha, including 132.3 ths. ha covered with trees that provide ecological water-protective, protective, health improvement and recreational functions. The Chernolesskiy national park is located on the region’s territory. In the steppe zone, the dendropark “Veselye Bokovenki” is situated on the flood-lands of the river Bokovenki. Sales of timber by the forestry enterprises are provided in the form of wood carving, furniture and parquet billets, as well as consumer goods. The real treasure of the region is its fertile black earth lands. Top-soil in the region reflects its location in transition lands from the South forest-steppe to North steppe. There are 50 different types of soils there. The black earth is the most fertile soil on the planet. It contains very powerful and enriched with organic substances humus that is slowly absorbed by the soil. By the level of natural soil fertility, Kirovograd area is the fourth best in Ukraine. On a 100 point scale of quality, the soil of this region scores 67 points. The region is located in the central part of the Ukrainian crystalline shell. This territory is still developing, and it has been developed through many metallogenic eras, which determine the genesis of many resources in the soil. There are 279 deposits of resources in the region. The mineral source of raw materials in the region consists of 15.7% fuel-energy minerals, 57.7% minerals for producing building materials, 26.6% ferrous materials, nonferrous metals, rare metals, and springs of mineral water. Ferrous and alloy metals: iron ores, titan, chrome, nickel, cobalt. Noble metals: gold. Radioactive elements and rare metals: uranium, lithium, beryllium, niobium, rubidium, tantalum. Non-metallic minerals: graphitic ores, abrading jacinth, primary and secondary kaolin, brown coal, shale oil, building stone, vermiculite, graphitic, kaolin, tripoli powder, natural stone, and facing stone. Major part of mineral resources are extracted through open cast, making favorable conditions for development of mining industry in the region. Only one third of the mineral deposits are now being exploited. An application of new technologies guarantees very good prospects for investors. Mineral resources of the soil make the area compatible with other regions. Gold - high-standard, ores of an easy enrichment type. There are more than 10 deposits discovered. In some deposits the consistence of gold is 400 g for a ton of stratum. The deposits of gold are a basis for developing gold-mining and gold reprocessing branches in the region. Uranium – nearly all deposits of uranium in Ukraine are located in Kirovograd region. Quantity wise the amount of uranium is enough for providing atomic fuel for Ukraine for a long term. Chrome – Central Pobuzhye, Golovanevskiy district is the only region with chrome roes. Chrome deposits are discovered or forecasted in 15 spots. Secondary kaolin – high quality raw materials for metallurgical, ceramic, chemical industries, for making bricks. Vermiculite – mineral that due to its qualities can be used in agriculture, building, power generating, freezing, oil chemistry, shaft mining, woodworking industry, and motor-car construction. Shale oil – the only deposit in Ukraine – Bovtisskoe - is located in Alexanrovskiy region. This deposit is unique because of the amount of oil. While reproducing the oils it is possible to use a wasteless technology. Brown coal – used in heat-and-power and chemistry engineering. Decorative-facing stone – the region has unique supplies of ultra strong stone facing of variable colors and tints - black, pink, grey, red. Its decorative quality is very close to the world etalon samples. These are Precambrian minerals of crystal foundation: granite, labradorite, and carnotite. Natural building stone – geologic consistence of the region provides enormous resources of this mineral. Here are granite, quartzite, magmatite and many other minerals provided by the crystal shield. There are 66 explored deposits. 28 of them are under exploitation. Tourism and recreationTourism is starting to play an important role in the region’s economic and social development. It is happening due to the high recreational, historic and cultural potential of Kirovograd region. There are 158 natural reserves situated in the region. 23 of them are sponsored by the state. They are the "Chernolesskiy" landscape reserve, "Monastyrskiy" natural reserve, "Cherniy Les (Black Forest) Marshlands" hydrological reserve, "Onufrievskiy" park, "Hutor Nadezhda", etc. Radon mineral water deposits are one of the most famous natural assets of the region (total stock - 433 cu. m per day), including the Znamenskoe deposit (408 cu. m per day, estimated time - 50 years). There is a regional balneological clinic situated in Znamenka. This clinic posses all instruments of modern Ukrainian balneology: radon, coniferous, sea, iodide-bromine and oxygen baths, miscellaneous medical showers, in-water spine stretching, balsam-based inhalations, electropathy, magneto therapy, heat cure, laser therapy, ultrasound techniques, manual therapy, etc. At the moment, this clinic possesses a four-story building which is out of use and needs some reconstruction. This building could be an attractive investment location for developing recreational business in the region. Today there are 20 licensed tourist agencies, 66 institutes and resorts, and 18 hotels in the region. One of the most interesting places of interest in the region is Svetlovodsk which has all the necessary assets to attract tourists - water resources, picturesque landscape, and rich historic and cultural assets. There are 12 resorts situated in this town, three mini-hotels are in the final stage of the construction. A local yacht club frequently organizes regattas. There are 6 restaurants, 17 bars, and 48 cafeterias in the town. Investing in the local tourist infrastructure, creating Svetlovodsk regional landscape reserve, building new resorts, outdoor recreation infrastructure development (tennis courts, golf clubs, etc) could be of interest for both national and foreign investors. One of the tourist infrastructure development's priorities is building international travel corridors and a network of traffic arteries. Local authorities are open to cooperating with investors and ready to render them assistance when investing in this field. Another priority is country-side tourism development in the region, namely on the banks of the Sinyuha, Yuzhnyi Bug, and Yantar rivers. It opens the prospective of hunting tourism and sport fishery development. At the present time, hunting fauna includes over 70 species. The most important ones in a practical sense are moose, red and axis deer, wild boar, roe deer, hair, fox, marten, partridge, bald-coot, goose, wild duck and quail. The regional council of Ukrainian hunters and fishers' society has approximately 1,865.9 ths. hectares of appendages of a property, including 65.0 ths. hectares of the forests, 1,747 ths. hectares of the fields and three game husbandries. There are three resorts on this territory that include 3 resorts with 17 hunting lodges (36 beds), 24 feed stores, 3,080 feeding areas, 17 shooting towers, etc. Another project that is worth interest is the reconstruction of the St. Elisabeth fortress in Kirovograd that dates back to the second half of the XVI century and the organization of excursions for tourists there. This project envisages building a museum dedicated to the history of the fortress and the city of Elisavetgrad, construction of war heroes memorial, creating historic theme parks, snack bars, and gift shops. Another interesting project is the construction of a small motel of 30 rooms decorated as a country house from the late XIX century near the museum-reserve "Hutor Nadezhdy". It will help organizing full board recreation in the country side with additional fishery services. The development of tourism in the region is carried out in accordance with Kirovograd region's tourism development program 2002-2010 that foresees improvements in local tourism management and informational support. |