This initiative is part of the broader "Made in Ukraine" policy, designed to boost domestic production and attract investment.
Details of the State Program
The program offers substantial financial support, providing up to UAH 150 million to cover the construction of essential infrastructure for industrial parks. This funding is non-refundable and can cover up to 50% of the estimated costs associated with infrastructure development, including landscaping and the construction of engineering and transport facilities.
In addition to infrastructure support, the program also offers compensation of up to 50% for the costs of connecting to the power grid. For territories that have been recently de-occupied, the state increases its support, covering up to 80% of these costs.
First Beneficiary: Industrial Park in Dnipro
The industrial park in Dnipro is the first to benefit from this state program. The park's management company requested UAH 150 million out of a total required UAH 326.9 million to construct a transformer substation. This funding is expected to play a crucial role in the park’s development, providing necessary infrastructure that will, in turn, attract further private investment.
Impact and Future Prospects
Yulia Svyridenko, First Deputy Prime Minister and Minister of Economy, emphasized that the program is designed to promote investment in the real sector by providing substantial support to investors. In return, these investors are expected to create new jobs and contribute to tax revenues.
"Calculations show that 1 hectare of an industrial park allows for the creation of 50 new jobs, and $1 of public investment in the infrastructure of industrial parks attracts $6 of additional private investment," Svyridenko noted.
Program Safeguards and Implementation
To ensure the effective use of funds, the program includes several safeguards. Applicants must commit to constructing at least 5,000 square meters of industrial buildings within three years and must attract at least two participants to the park. The financing process is managed through escrow accounts in state banks, offering applicants flexibility in choosing their preferred bank.
The Ministry of Economy has partnered with Ukreximbank, Oschadbank, and Ukrgazbank to implement this program.
This initiative follows the government's approval in June 2024 of a mechanism designed to stimulate the creation of industrial parks, signaling a strong commitment to fostering industrial growth and economic resilience in Ukraine.
