National Projects Designed to Draw Billions in FDI

Ukraine’s State Agency for Investment and National Projects is spearheading the country’s investment reforms while also developing and promoting key large scale projects that offer outstanding investment appeal. Through these National Projects, the agency aims to increase total FDI in Ukraine to US$72 billion (€54.5 billion) by 2013.

The National Projects are designed not only to modernise Ukraine and create exciting new investment opportunities but also to implement the agency’s investment reform process. Ukraine’s investment climate is already improving rapidly thanks to the agency’s efforts to promote simplified procedures and world class standards.

Ukraine’s National Projects, designated as having strategic importance for the nation, reflect Ukraine’s drive to establish a dynamic free market economy. All National Projects are intended to be commercially viable and funded 80% by the private sector. To get these projects off the ground, Ukraine’s government is financing feasibility studies, providing building land, streamlining bureaucratic procedures, and in some cases offering state guarantees.

Key national projects

Ukraine now has 11 National Projects and expects to launch three more later this year. The current National Projects are a new LNG terminal to bring liquefied gas from Azerbaijan to Ukraine and beyond; the “Olympic Hope 2020” project to upgrade Ukraine’s tourism and sports infrastructure as part of the country’s bid to host the 2022 Winter Olympics; “New Life”, a healthcare programme for mothers and infants; the “Clean City” project to implement modern waste disposal systems that convert waste to fuel and other useful materials; the “Open World” project to upgrade Ukraine’s education system by introducing a new “4G” national Internet infrastructure to help promote Internet learning; the “Energy of Nature” drive to develop renewable energy; the “Affordable Housing” project to promote quality low cost housing; the “Air Express” high speed rail link between Kiev and Boryspil International Airport; “Danube Corridor”, designed to stimulate shipping and related services in the Danube basin; “Quality Water”, an effort to ensure reliable supplies of pure drinking water throughout the country; and “City of the Future”, to encourage cutting edge urban development.

Ukraine is not new to implementing large scale infrastructure projects successfully, as the country’s preparations for the Euro 2012 soccer championships demonstrate. To support this high profile event which will draw the world’s attention to Ukraine, the country has managed to complete new airport services, stadiums and infrastructure on time, including repairing more than 2,000 km of roads and building new highways.

Ukraine has also already made progress on its National Projects. In December 2011, Ukraine’s President, Viktor Yanukovych, commented, “Ukraine’s National Projects are necessary to trigger Ukraine’s development in the years to come. Among the most successfully implemented to date are ‘Energy of Nature’, ‘New Life’ and ‘Open World’. For the ‘Energy of Nature’ project, for example, last year we have built two solar energy plants in the Crimea, and the Azovsky wind park is already operating. These are the most significant alternative energy projects in Ukraine in the 20 years since independence. The National Projects are a unique opportunity to demonstrate to the world that Ukraine is a viable and reliable place to invest and do business.”

State Agency cutting red tape, ensuring transparency

The State Agency for Investment and National Projects will make sure the National Projects are a success by improving access to the Ukraine market for international investors, upgrading Ukraine’s business climate, cutting bureaucratic red tape, and implementing a transparent and enforceable regulatory environment.

The National Projects are also meant to demonstrate that it is possible to complete major projects in Ukraine that are free from corruption. Eliminating corruption is a top priority for the State Agency for Investment and National Projects, whose mission statement says, “Our work is part of the process of rebuilding the national image of our country that has been so badly tarnished over the past decade.” The agency can guarantee full transparency and openness concerning all its key management decisions, an open process for selecting partners for National Projects, and tender procedures that meet the highest international standards.

In fact, the State Agency for Investment and National Projects is Ukraine’s ambassador of change. The agency is making the world aware of Ukraine’s vast, untapped potential and exceptional investment attractions and is helping to position Ukraine as one of the world’s most promising choices for FDI in the coming years.