1. Round table discussion on creation of Industrial
Parks on the territory of Dnipropetrovsk region

2. 1
Content
The participants of round table discussion 2
Strategic aim on creation of IP 3
International experience in creation of IP 4
History development of IP in Ukraine 5
State mechanisms for attracting investments 6
Site for the IP location in the Dnipropetrovsk region 7
Energy infrastructure of IP “Pavlohrad” 8
Steps for creation of IP “Pavlohrad” 9
Energy infrastructure of IP “Kryvbas” 10
Steps for creation of IP “Kryvbas” 11

3. The participants of round table discussion
2
The Chairman of Dnipropetrovsk Regional Council – Udod Yevhen
Deputy Chairman of the Regional Council for the executive staff– Peregudov Volodymyr
RSA – Deputy Chairman of Dnipropetrovsk Regional State Administration – Molokov Stanislav
Deputy Mayor of Kryvyi Rih City Council – Svitlychnyi Oleksandr
Deputy Mayor of Pavlohrad City Council – Tykhonov Volodymyr
DIA – Director Gerasimenko Ivan
ORTEKSAN Consultancy LLC – Managing Partner– Berksan Buyukyıldız
DTEK – Head of Department of Sustainable Development - Hryb Viktoria
Dnipropetrovsk Regional Center for Investment and Development – Director Molodan Alim
SE Production Association Yuzhny Machine-Building Plant named after A.M. Makarov – Head of R&D Department – Dovhopol Oksana
SE Pavlohrad Mechanical Plant – Director Kyrychenko Volodymyr
BDO – Director of Development– Trykoz Oleh
PwC – Head of Dnipropetrovsk office – Volkova Olena
PwC – Head of Consulting Department – Tymkiv Oleh
EBA – Head of Dnipropetrovsk office Uschchapovska Kateryna
DCCI – President Zhmurenko Vitalii
Glass Trösch – Head of Glass Trösch in Ukraine and Moldova , director of LLC Ukrglas – Orlov Serhiy
Glass Trösch – Head of LLC Glass Trösch Dnipropetrovsk and Glass Trösch Kryvyi Rih – Yemets Yaroslav
Glass Trösch – Commercial Director of Glass Trösch in Ukraine and Moldova – Sorokun Serhiy
City Development Institution of Kryvyi Rih – Director Nahornyi Andrii

4. 3
Strategic aim on creation of IP is regional economy diversification
 industrial land
 Land is leased from Residents
with a subsequent right to
purchase
 not less than 15 hectares
 Availability of roads for cargo
transport and small remoteness
from roads of national significance
 Availability of railroads on the IP
territory and small remoteness
from freight train station
 Proximity to the airport
 Proximity to the river port
 Electricity
 Gas supply
 Water supply
 Potable water
 Non-potable water
 Water discharge
 A specialized company managing
the operation of the Industrial park
and providing services to the IP
residents
Industrial park is a specially organized territory for location of new facilities with
provision of state preferences, as well as the provision of infrastructure and managed
by a specialized company
Proper plot
for plant location
Transport
infrastructure
Engineering
infrastructure
Management company
The main components of Industrial Park

5. 4
International experience in creation of IP
World practice shows that at 1 hectare of
industrial park area has accounted for :
 from $1,0 to 5,0 mln. of investment.
 From 20 to 50 jobs.
Russia
207
Operating 51
Belarus
1
Black Sea
Poland
300
Czech Republic
144
Slovakia
38
Hungary
206 Romania
48
Bulgaria
14
Turkey
263
Operating 148
0
The Industrial Parks have been created and successfully operated in most
countries.
Ukraine
Country
Number of
established
enterprises
Number of created
jobs, (thsd.)
Number of IP
Russia 740 55,8 207/51
Poland 719 85,0
66 больших
(всего около 300)
Romania 572 49,4 48
Hungary 495 49,9 206
Czech Republic 416 47,1 144
Ukraine 0 0 0

6. 5
• History development of IP in Ukraine
 The state support is provided for 10 pilot IP projects,
which come into State Register.
 Implementation of these projects can attract about $2,5
investment over 5 years and create 40 ths. jobs.
The first government
initiative on creation of
IP.
Adoption of law, which
regulates the
operation of IP in
Ukraine.
In some regions the
local authorities have
initiated the process
of IP creation.
The Ministry for
Economic
Development is
forming the list for IP
inclusion into the
State Register.
2006 г.
2012 г.
2013 г.
2014 г.

7. 6
Law of Ukraine “On
stimulation of
investment activity”
 Investor can perform investment activities for getting public benefits in the frameworks of law "On the industrial parks" and "On stimulation of
investment activity".
 In the course of investment activity on the territory of IP, it is possible to use benefits, which provide both laws.
Land Code of Ukraine – exempt from land auctions in the process land plot allocations of
state or municipal ownership for creation of IP and for IP’s participants as well as setting a
minimum term of the lease of land for 30 years.
Customs Code of Ukraine – exemption from duty on equipment and components, materials
for IP arrangements that are not produced in Ukraine
Tax Code of Ukraine – a gradual increase in the income tax rate from 0% to16% within 10
years.
Arrangement of IP at the expense of state and local budgets (up to 25% of the arrangement’s
costs)
Law of Ukraine “On
Industrial Parks”
Exemption from equity participation in infrastructure development of populated places (up
10 % of the total estimated construction cost).
State mechanisms for attracting investments
Investment
activity
IndustrialPark
Providing tax incentives for encouragement of creation and operation of industrial parks (not
developed).

8. 7
Sites for the IP location in the Dnipropetrovsk region
Dnipropetrovsk
Pavlohrad
Former landfill of YuMP
(Pavlohrad district)
Total area: 250 ha (with the possibility of
expandability)
Disposer: SE PA Yuzhny Machine-Building
Plant named after A.M. Makarov (Act of
permanent use)
Kryvyi Rih
Oktyabrskiy district
(Kryvyi Rih)
Total area: 34 га
Intended use: open land without
vegetation cover or with a slight vegetal
cover
Disposer: Kryvyi Rih City Council
 370 sites were analyzed, 3 priority investment sites were identified for a pilot IP placement.
 Key criteria for sites selection:
 area – more than 30 ha;
 industrial land;
 public / state property.

9. 8
Energy infrastructure of IP “Pavlohrad”
Gas
Existing Glas Trösch (I stage) Industrial Park (outlook)
Volume, m3/hour 13 000 7 000 21 000
The length of the gas
pipeline
L=1 km L=1 km
L=10,6 km
(from GDS “Ternivka”)
Costs, mln. UAH.*
(Design and construction)
1,912 1,912. 20,268
Electricity
Capacity, MW 50 MW 9 MW to 50 MW
Water supply
It is necessary to build wells on the territory of IP
Connection to the gas
supply
Electrical
substation PS
150/6/6 kV “PZTO”
GDS “Ternivka”
10,6 km
1 km
Pavlohrad
GDS
 As you organize IP it is need to develop a feasibility study for IP energy infrastructure on the territory of IP.
 According to our calculation, the existing volume of gas is provided by GDS in Pavlograd. In the winter period it is gathering of gas from GDS “Ternivka”.
 In the prospects for further development of Glas Trösch, and also IP and for sustainable provision the territory with gas, it is needed to carry out modernization of gas main line
section from GDS “Ternivka” with initial costs of UAH 20 mln.
Railway line
* Approximate data of PJSC “Dnipropetrovskgas”

10. 9
Inclusion of IP
into State
Register
Launch of IP
 Dnipropetrovsk RSA
 DTEK:
 Development of target
concept of the industrial
park with the participation
and financial support of
DTEK.
Selection of Management
Company and creation of
IP
 Dnipropetrovsk RSA:
 Carrying out of competition
to select a management
company;
 conclusion of the contract
with the winner for the
creation and operation of
industrial park.
 Specialized
departments of RSA:
 Submit documents
package into
Stateinvestproject for
inclusion into the
register of industrial
parks.
Arrangement of IP
 Management Company:
 Concludes a contract
with participants on
carrying on economic
activity within the
industrial park territory.
 Management Company:
 Connection to the
engineering infrastructure.
Development of the
concept of IP creation
 YuMZ:
 RSA
 transfer of the land plot
(250 ha) from the usage
of YuMZ into industry
reserve lands for IP
creation.
Preparation of land
plot
Executing steps at the moment
Steps for creation of IP “Pavlohrad”
4 months 2 months 2 months 1 months n/a n/a
April May June July August
1
2014
1
2 3 4 5 6
2
3
4
Signature of memorandum with anchor participant of IP - Glass Trösch on 4.06.2014
Receiving of cadastral parcel number



11. 10
Energy infrastructure of IP “Kryvbas”
Electrical substation
Water supply
system
Gas
Canalization
Energy supply
Types of resources
Unit
of
meas
ure
Un.of measure/ 1
ha of territory hour
Hours per
day
Days per
year
Requirement for territory
Per hour Per day Per year
Water supply system
and water discharge
m3 3,1 8 260 105,6 844,8 219 648
Gas supply m3 2,1 8 260 71,5 572 148 720
Energy consumption
kW/p
er
hour
Maintenance of necessary capacity is possible after its determination and
development of project design documentation.
Characteristics of the land plot
The total land area 34,07 ha
Category of land Lands of industrial purpose
Communications There are no network engineering - power lines, main gas
lines, waterlines and other communications. The figure
shows the predefined connection point to the existing
utility networks.
Transport
infrastructure
 close location to the acting railroad track.
 Distance from the land plot to:
- Kryvyi Rih international airport – 35 km;
- Roads of national significance Н11 (Dnipropetrovsk
– Mykolaiv (via Kryvyi Rih) - 5,5 km;
- Roads of national significance H23 (Kirovohrad –
Kryvyi Rih-Zaporizhzhya) - 11,5 km.
Information about the
presence of especially
valuable ;ands on a
land plot
None. Ground investigation for compliance verification
with article 150 of the Land Code of Ukraine was not
conducted.

12. Inclusion of IP into State
Register
Launch of IP
Selection of Management Company
and creation of IP
 Kryvyi Rih City Council:
 1.1. Preparation of the draft
decision of the city council to
organize and hold a tender for
selection of the management
company *
 1.2. Carrying out of
competition to select a
management company;
 1.3. conclusion of the contract
with the winner for the creation
and operation of industrial park
 Kryvyi Rih City
Council :
 Submits documents
package for inclusion
into the register of
industrial parks.
Arrangement of IP
 Management Company:
 Concludes a contract
with participants on
carrying on economic
activity within the
industrial park territory.
 Management Company:
 Connection to the
engineering infrastructure.
* Выполняемые на данный момент этапы
Steps for creation of IP “Kryvbas”
6 months 2 months n/a n/a
March April June
2014
1
1 2 3 4
2
May July August
April May
1.1 1.2 1.3

13. Project financing
Offer of project financing for creation of Industrial park in the Dnipropetrovsk region from
Eximbank of Turkey
• State guarantee or warranty of one of Ukrainian banks
• loan amount to $ 300 mln.
• no more than 85% of project cost
• Bearing the date of 10 years
• % loan depending on the amount and submitted guarantees
• contractor for the project should be Turkish company
Commercial Banks of Ukraine, which can act as guarantor:
• PrivatBank
• UkrExim Bank
• Raiffeisen Bank Aval
• UkrSotsBank
• ProminvestBank
• VTB
• ОТР Bank
• Delta-Bank
Credit terms: