On July 31, the Ministry of Economy of Ukraine concluded the second agreement on cooperation within the framework of the state program "State stimulation of the creation of industrial parks".

Ukrgazbank became the second state bank to join the program. Support for industrial parks is part of the "Made in Ukraine" policy initiated by President Volodymyr Zelensky.

Thanks to this, the initiator of creation or the management company of industrial parks can apply for state incentives in two key areas.

The first direction provides non-repayable financing for the maintenance of industrial parks and the construction of the necessary engineering and transport infrastructure. This includes roads, communication lines, gas, water and electricity supply. This will greatly facilitate the development of industrial parks and contribute to the creation of attractive conditions for investors.

The second direction provides an opportunity to receive compensation for the costs of connection to engineering and transport networks. This compensation will reduce the financial burden for project initiators and facilitate the faster commissioning of industrial parks. We would like to remind you that during the martial law, compensation is provided exclusively for the connection of utilities.

Every dollar invested in industrial parks brings significant private investment and creates new jobs, which are critical to economic recovery.

In the near future, the Ministry of Economy will conclude a similar agreement with another state bank. This will expand opportunities for attracting state funding and support for industrial park projects, will contribute to their development and increase the competitiveness of the Ukrainian economy at the international level.

Today, 86 industrial parks have already been registered, created in almost all regions of Ukraine. 60 of them have defined managing companies, 10 have participants, and 16 have other entities. During the first and second quarter of 2024, 11 industrial parks were included into the Register, which exceeds the figure for 2022. Also this year, 5 parks have been excluded.

The state budget of Ukraine for 2024 provides 1 billion UAH for stimulating the creation of industrial parks. In March 2024, the Procedure for using budget funds was approved. The updated Procedure provides for the provision of funds on a non-refundable basis (50% of the estimated cost) to the management companies of industrial parks for the arrangement or construction of engineering and transport infrastructure, as well as reimbursement of 50% of the cost of connecting to electrical networks.

Management companies will be able to implement larger-scale projects, as the maximum amount of incentives has been increased from UAH 60 to 150 million, while the co-financing of works will take place in a ratio of 50 to 50. Managing companies of industrial parks from de-occupied territories will be able to implement projects with co-financing of 80 to 20.

Certain preventive measures are also introduced. Each applicant undertakes to build at least 5 000 square meters of industrial buildings on the territory of the industrial park within 3 years and to attract at least 2 participants. All incentives will be provided through escrow accounts to be opened by applicants in state-owned banks.

Reference source: http://surl.li/kgvdvm