This document summarizes the economic development opportunities in Lviv, Ukraine. It outlines Lviv's strategic location as a regional center between Western and Eastern Europe, situated on major transport corridors. It also highlights Lviv's growing foreign direct investment, with the most invested sectors being food, finance, retail, and IT. Potential investment opportunities mentioned include industrial parks, business parks, airport cargo facilities, brownfield redevelopment sites, and a future exhibition center to serve as the international broadcasting center for the 2022 Winter Olympics.
How to select your new electronics manufacturing site in HungaryBalazs Csorjan dr.
Hungary has the largest electronics manufacturing industry in Eastern Europe, it's point to investigate the country when it's about electronics site selection.
How to select your new electronics manufacturing site in CEE?Balazs Csorjan dr.
An overview on electronics manufacturing locations in Central- and Eastern Europe.
To learn more, please visit our blog: http://manufacturinghungary.blogspot.hu/search/label/electronics
Carlo Lavalle - From place of residence to place of activity: Emerging data a...OECD CFE
Presentation by Carlo Lavalle, Joint Research Centre, European Commission at the OECD Workshop on Spatial Dimensions of Productivity, 28-29 March 2019, Bolzano.
More info: https://oe.cd/GFPBolzano2019
China vs Eastern Europe: comparison of manufacturing locationsBalazs Csorjan dr.
No question, China is the first word when it's about offshore manufacturing. But will China remain the superstar of manufacturing in the future? The following presentation tries to tint it, and compare China to another emerging location: Central- and Eastern Europe.
How to select your new electronics manufacturing site in HungaryBalazs Csorjan dr.
Hungary has the largest electronics manufacturing industry in Eastern Europe, it's point to investigate the country when it's about electronics site selection.
How to select your new electronics manufacturing site in CEE?Balazs Csorjan dr.
An overview on electronics manufacturing locations in Central- and Eastern Europe.
To learn more, please visit our blog: http://manufacturinghungary.blogspot.hu/search/label/electronics
Carlo Lavalle - From place of residence to place of activity: Emerging data a...OECD CFE
Presentation by Carlo Lavalle, Joint Research Centre, European Commission at the OECD Workshop on Spatial Dimensions of Productivity, 28-29 March 2019, Bolzano.
More info: https://oe.cd/GFPBolzano2019
China vs Eastern Europe: comparison of manufacturing locationsBalazs Csorjan dr.
No question, China is the first word when it's about offshore manufacturing. But will China remain the superstar of manufacturing in the future? The following presentation tries to tint it, and compare China to another emerging location: Central- and Eastern Europe.
The strategy of creating an industrial park in the Dnipro takes into account that the future park is an average city-type complex, so it focuses on the development and implementation of advanced developments in the field of information and communication, biological technologies, instrumentation, electronics, energy conservation and the use of alternative energy sources.
Electronics manufacturing clusters in Eastern Europe: an ultimate guideBalazs Csorjan dr.
Eastern European electronics clusters provide low-cost manufacturing, innovative supply chains and focused manufacturing skills, making easier to do business on the European market.
Alexander Lembcke - Roads, market access and regional economic development OECD CFE
Presentation by Alexander Lembcke, OECD at the OECD Workshop on Spatial Dimensions of Productivity, 28-29 March 2019, Bolzano.
More info: https://oe.cd/GFPBolzano2019
The strategy of creating an industrial park in the Dnipro takes into account that the future park is an average city-type complex, so it focuses on the development and implementation of advanced developments in the field of information and communication, biological technologies, instrumentation, electronics, energy conservation and the use of alternative energy sources.
Krakow, Poland: A Technology Hub for Central and Eastern EuropeJP Allen
A short presentation highlighting the reasons why Krakow, Poland has emerged as the leading technology destination in Central and Eastern Europe. By J.P. Allen (University of San Francisco) and Ramon Tancinco (Cisco Systems Poland).
What defines us is our desire to be the best. Since 2008 we have been ranked among the top 5 fastest growing economies in the EU, and going forward we are forecast to continue to rise above the EU average. Added to this, our can-do-approach has enabled us to jump eleven places since 2013 for the ease of starting a business to 11th place globally in the World Bank’s Doing Business Report.
Outsourcing to Ukraine. Country Overview. Webinar 13.01.10.Victor_Maznyuk
Ukrainian Hi-Tech Initiative made the general overview of the Ukrainian IT outsourcing services industry, including the history of IT industry development in Ukraine and some trends of the development of IT outsourcing market for 2010.
No other transport mode costs so little, yet produces so
many positive externalities as cycling does: improved
physical and mental health, reduced air and noise pollution,
low demand on scarce (urban) space, a small carbon
footprint, reduced fuel dependency etc. Investing in
sustainable transport modes, at the expense of car use, is not only good for the environment and quality of life, it can also give a significant boost to the economy.
The strategy of creating an industrial park in the Dnipro takes into account that the future park is an average city-type complex, so it focuses on the development and implementation of advanced developments in the field of information and communication, biological technologies, instrumentation, electronics, energy conservation and the use of alternative energy sources.
Electronics manufacturing clusters in Eastern Europe: an ultimate guideBalazs Csorjan dr.
Eastern European electronics clusters provide low-cost manufacturing, innovative supply chains and focused manufacturing skills, making easier to do business on the European market.
Alexander Lembcke - Roads, market access and regional economic development OECD CFE
Presentation by Alexander Lembcke, OECD at the OECD Workshop on Spatial Dimensions of Productivity, 28-29 March 2019, Bolzano.
More info: https://oe.cd/GFPBolzano2019
The strategy of creating an industrial park in the Dnipro takes into account that the future park is an average city-type complex, so it focuses on the development and implementation of advanced developments in the field of information and communication, biological technologies, instrumentation, electronics, energy conservation and the use of alternative energy sources.
Krakow, Poland: A Technology Hub for Central and Eastern EuropeJP Allen
A short presentation highlighting the reasons why Krakow, Poland has emerged as the leading technology destination in Central and Eastern Europe. By J.P. Allen (University of San Francisco) and Ramon Tancinco (Cisco Systems Poland).
What defines us is our desire to be the best. Since 2008 we have been ranked among the top 5 fastest growing economies in the EU, and going forward we are forecast to continue to rise above the EU average. Added to this, our can-do-approach has enabled us to jump eleven places since 2013 for the ease of starting a business to 11th place globally in the World Bank’s Doing Business Report.
Outsourcing to Ukraine. Country Overview. Webinar 13.01.10.Victor_Maznyuk
Ukrainian Hi-Tech Initiative made the general overview of the Ukrainian IT outsourcing services industry, including the history of IT industry development in Ukraine and some trends of the development of IT outsourcing market for 2010.
No other transport mode costs so little, yet produces so
many positive externalities as cycling does: improved
physical and mental health, reduced air and noise pollution,
low demand on scarce (urban) space, a small carbon
footprint, reduced fuel dependency etc. Investing in
sustainable transport modes, at the expense of car use, is not only good for the environment and quality of life, it can also give a significant boost to the economy.
Agencia de Desarrollo Wroclaw Agglomeration para INVATEfundacioninvate
Presentación realizada por Jan Zarski, de la Agencia de Desarrollo Wroclaw Agglomeration para la jornada “Pioneros en acción: oportunidades de inversión en Polonia”.
Executive summary
• A 534 ha Free Economic Zone situated in Kaunas, Lithuania, known as FEZ.
• Lithuania is a member of the European Union (EU) as well as a member of the Schengen area. (This
permits passport-free travel throughout the 26 countries of the Schengen area).
• Stable currency; since 2002, 3.45 Litas = €1. As from 1st January 2015, Euro replaces national currency.
• Businesses established within FEZ are totally tax-free for six years; for the next ten years, 50% reduction in
the rate of Corporation Tax. As the Lithuanian rate of Corporation Tax at present is 15%, the effective tax
rate for the first sixteen years of operation is 4.69%.
• Highly educated labour force.
• According to the World Bank, Lithuania is the seventeenth country in the world for “ease of doing
business”.
• Ability to obtain 1, 2, 3 year “temporary residence permits”, depending on individual circumstances.
• Ability to obtain Lithuanian citizenship after ten years of residence.
• Land is subleased for a term of 99 years. Pursuant to the Land Law of Lithuania, if the sublessee has
erected buildings on the land then, after the end of 99 years, the sublease will be extended until the end
of the economic life of the buildings erected on the land. The life of the building can be further extended
by continued improvements.
Ukraine: more than just another outsourcing destination” by Alex Golod, InteticsIntetics
The presentation highlights the latest social and economic trends in the country, discusses why Ukraine is becoming a hot outsourcing destination based on its industry growth, its access to a skilled well educated talent pool, and the government support. Special emphasis is placed on the favorable environment for direct investments in next few years, as well as expected growth of M&A activity in the country. In conclusion, the argument is made that Ukraine will gain prominence as ITO and especially BPO hot destination within next 3 to 5 years.
4. Pan-European Transport Corridors
(TEN-T III/ V)
Between West and East (60 km to border with Poland), located on:
Pan-European Transport Corridor III: Germany-Poland-Ukraine (LVIV)-Russia (below),
Pan-European Transport Corridor V: Italy-Austria-Hungary-Ukraine (LVIV)-Russia
M06 Kyiv-Chop highway
Lines/ dots in yellow
stand for Roads/ border
crossings as projects in
pipeline for the near
future
6. Major Infrastructure Investments
Road:
– Toll-road Project Lviv – Krakivets 80 km to ling Kyiv-Chop
M06 Highway with A4 Dresden-Kyiv
Rail:
– Eurorail Project: European gauge 1435 mm rail link to
Polish/ Ukrainian Border
Air:
– Common Aviation Agreement in June 2014
– Increase number of low-cost flights
7. A Story of Growth: FDI
2nd in Ukraine by FDI volume
Most investment attractive region in
Ukraine
Cyprus, Poland, Austria, Germany, Denmark,
Sweden, US
Food, Financial services, Retail, Textile,
Machine Building, electronics, IT etc
Nestle, Carlsberg, Hartwall Group, CVG,
Austrian Airlines, Metro, Energie AG (AVE)
245.7
307.2
597.4
561.2
762.5
873.1
837.1
1113.4
1114.3
2005 2006 2007 2008 2009 2010 2011 2012 2013
8. Key conventional
sectors of Lviv
economy
Key clusters include IT/ BPO and
Tourism
Supporting clusters include Food,
Paper/ Print, Textile and
Radioelectronics
Average salaries
Low-skilled 120-200 euro
Engineers – 500 euro
Management – 1000+
Top management – 3000+
IT/ advanced SW developers
3000+
32%
22%
30%
6%
5%
5%
Food Industry
Machine Building
Chemical Industry
Metallurgy Industry
Light Industry
Energy, Gas, Water
9. Lviv rated…
CCC+ Positive
Upgraded in February 2013
uaBB (National scale)
+++
Little direct debt
Largest commercial center in
western Ukraine
---
Dependence on state
centralized budget distribution
system
Insufficient liquidity
Top 10 European Cities
of the Future 2012/13
– FDI Strategy
– Economic Efficiency
10. Competitive Advantage - HR
38 universities, institutes
and academies
Over 130 000 students
28 000 highly educated
graduates every year
Most students speak
foreign languages
(mainly English and
German)
11. Over 130,000 students an Asset
Number of Students of Higher Education in Lviv by
140 000
120 000
100 000
80 000
60 000
40 000
20 000
0
Specialties
1%
1%
1%
127,669
2%
3%
3%
4%
4%
4%
7%
8%
8%
22%
31%
Other
State governance
Architecture
Military sciences and security
Social sciences
Transportation
Education
Agriculture, forestry and fishing
Natural sciences
Mathematics and information studies
Culture and art
Law
Humanities
Medicine
Engineering
Economics, commercial activity
english
bulgarian
czech
polish
slovak
russian
germany
0 10 20 30 40 50 60 70 80 90
ян
в
Annual Number graduating student for BPO
sphere by Specialities(just example)
12. University Graduates
580 graduates with master degrees and diploma specialists
at the National University “Lviv Polytechnic” and over 500 graduates
from technical colleges
Field of study Major Qualification
Cybernetics and Systems
Science
Social Informatics
Computer Science and
Engineering
Information Management Systems Software Engineer
Information Technology Design Master of Automation and Computer Integrated Technologies
System design Master of Software Engineering
Artificial Intelligence Systems Master of Software Systems
Computer Systems and Networks
Programming Systems
Specialized Computer Systems
Automated Systems Software
Software Engineering
Automation and Control
Computer-based Control and Automation Systems Engineer with automated production control
Automated Process Control Electrical Engineer
Electronics
Micro- and Nanoelectronic Technologies and Equipment Electromechanical engineer
Electronic Devices and Equipment Engineer
Microelectronics Information Systems Master of Electrical Engineering
Physical and Biomedical Electronics Mechanical Engineers
13. Wage levels
Position
Average Salary in
Lviv/US$ per month (before
tax)
Workers 170-270
Plumbers, mechanics 300-370, up to 600
Unit accountants 500-700
Mid-level managers 550-740
Top-level managers 1050-1450
14. Our Offer
Attractive investment climate
Economic efficiency
Untapped market potential
Unique logistical solutions
Greenfield and Brownfield sites
Industrial park
Strategic partnerships
Trade with Lviv based manufacturers
Full support and friendly attitude
15. Current Investments
Shopping Centers
Forum Lviv - 60,000 sqm
Developer – Multi Development,
part of Blackstone Group
End of 2015
Leopolis - 80,000 sqm
Developer – Yeditepe
End of 2015
Office Centers, multifunctional
sports arena, industrial (Fujikura etc)
16. Sites for Hotel Development
Dobrobut Site – 1,5
hectares
Future
Hotel Land
Plot
Market
Square
Magnus
Shopping
Center
Opera
House
Svobody
Avenue –
Lviv’s
main
street
Possible development for 5-star
1000+ rooms hotel + conference/
convention facilities
Mitskevych Square Site – 0,5 hectare
17. Winter Olympic Games 2022
7 sport types/ 98
Events
13 competition
venues
Olympic village with
4,500 beds
Media village with
10,000 beds
International
Broadcasting Center
40,000m²
4,700 of sportsmen and
official bodies
Out of more than 80
countries
10,000 media
representatives
20,000 volunteers
19,000 persons of
security staff
1.6 mln. of tickets
Over 3 bln. of TV
audience
Venues Participants
Visitors
18. Lviv Exhibition Centre
(International Broadcasting Centre during
Winter Olympic Games 2022 )
Number of seats 40,000 m²
Sea level elevation 335 m²
Construction cost EUR 185 mln.
Construction duration 2014-2017
19. • City Center
•New Ryashivska St. due by
2012
5 km
• Lviv International Airport
• Airport Cargo Terminal 0 km
5 km •Major Rail Cargo Terminal
•Catchment area (50k
inhabitants) 1 km
•15 municipal bus and 1
trolley bus routes
Public
Transport
Business Park Project (I)
1
Next to the new Airport passenger terminal and its parking facilities.
20. •Options 10, 20, 30 ha
• GLA possible from 10k m2 Land
• Lviv City Council and other
authorities
• Total anchor tenancy at
least 5k m2
• IT/BPO companies to
move from existing
locations
Tenants
• In 3 to 5 years with over
50% ROI Exit
Business Park Project
21. Industrial Park Project (I)
25 hectares in industrial zone, expansion
• City Center
• A4 highway along the
site
8 KM
• Lviv International
Airport
• Airport Cargo Terminal
11 km
•Major Rail Cargo
4.5 km Terminal
• Catchment area (50k
inhabitants) 2 km
• 10 intercity and
municipal bus routes
Public
Transport
possible
24. Industrial Park Project (II)
Water
• D = 500
• €0.45/m3
Electricity
• €0.076/
kWh
Gas
• D=89
• €0.374/m3
25. …everyone else works with us
EBRD
World Bank
GTZ
IFC
KfW
NEFCO
USAID
European
Commission
UNESCO
CRDF
Monitor Group
26. Infrastructure
Purchase of used rolling stock
Construction and rehabilitation
Supply of equipment, new
technologies
Cogeneration
Repair and renovation
Construction of bicycle lanes
Heat Insulation
Waste treatment technologies
and equipment
• EBRD-funded Projects:
• Lviv Public Transport
Modernization – 38 mln euro
• Sykhiv Tramline Extention –
15 mln euro
• District Heating Modernization
– 30 mln euro
• Sludge Treatment – 22 mln
euro
• German government (KfW, GIZ):
• Historical Heritage
Rehabilitation
• Bicycle Infrastructure
• Energy Efficiency
• The World Bank and IFC:
• Water Supply
• Waste Management
• Energy Efficiency
European Commission
28. Waste management system
Shut down old landfill at least 30 mln euro
New waste treatment facility at least 40 mln euro
New landfill
Project Plan:
- Project location (landplot) secured – 2013
- IFC to structure transaction – 2014
- Startup of operations – 2015
29. Brownfields
№ Object Enterprise activity Total area
1. OJSC Financial-Leasing
Company «Electron-
Leasing»
leasing services 6 100 sq.
m
2. Concern “ELECTRON” tool-making facilities
and plastic production
6 000 -
sq. m
3. Ukrainian-Swiss Joint
Stock Company “VESNA”
clothes production 300 sq. m
4. OJSC “KONVEYER” Producing of lifting
transport equipment)
14 000
sq.m
5. OJSC “SVEMON-ZAHID” architectural and
engineering design
806 sq.m
6. Ltd “COMPANY DNISTER ” metal waste, ferrous
and nonferrous
metals treatment
1 700 sq.
m -
7. JSC “MAYAK” textile production,
production of
garments, fur
4 000 sq.
m
8. JSC “Lviv plant of milling
machines”
Production of metal-and
wood treatment
machines
20 500
sq. m
30. Lviv Meetings Industry (MICE) – Convention
Bureau
Eastern Europe countries enjoy biggest growth rate at 11.3%
CAGR
Table 3.6: Number of Meetings per Region (ICCA Report year 2010 and year 1999-2008)
No Events
2000
No Events
2010
10 years
Growth % CAGR %
Asia & Middle East 734 1731 136% 10.0%
North America 754 995 32% 3.1%
Latin America 379 913 141% 10.3%
Australia 226 271 20% 2.0%
Africa 129 283 119% 9.1%
West Europe 2602 4196 61% 5.5%
Eastern Europe 277 725 162% 11.3%
N
Mean
Score
Std.
Deviatio
n
Prague 59 1,88 1,052
Lviv 59 2,76 1,406
Budapest 59 2,88 1,219
Warsaw 59 3,19 1,266
Belgrade 59 4,29 ,966
•The study proved Lviv’s potential to become an attractive MICE destination
•QuantumLeap, Austrian-based company identified to advise on MICE in Lviv
•Convention Bureau establishment among top priorities
31. Your Contact Person
Serhiy Kiral
Chief Investment Officer (CIO)
+380 50 3130221
serhiy.kiral@city-adm.lviv.ua
www.investinlviv.com
Editor's Notes
Міжнародний трансляційний центр (“IBC”) буде тимчасовим центром для
трансляторів під час Ігор. Досвід попередніх ігор показує, що зали для
торгівельних ярмарків надають добрі умови для використання як “IBC”.
Таким чином, рекомендується поєднати потребу для олімпійського “IBC” з
середньотерміновими планами побудувати торгівельно-ярмарковий центр.
Сьогодні Львову не вистачає великих та сучасних місць для виставок і йому
потрібноо зробити центр ярмарків та конгресів незалежно від Ігор. Потрібна
наявність місця для “IBC” складає 40,000 кв.м., які можна розташувати у
чотирьох виставкових залах. “IBC” надасть добрі робочі умови для засобів
масової інформації із-за близкості до місць змагань та наявності окремих
шляхів доступу. Додатковий багатоповерховий автопаркинг може доповнити
високопрофільну територію “IBC”/торгівельного ярмарку, яка буде відповідати
не тільки вимогам МОК , але також зробить Львів визнаним місцем для
проведення конференцій та виставок. Місце розташування та дизайн “IBC” з
його 5-ма виставковими залами дозволить робити певний розвиток етапами,
які будуть досягатися незалежно від подання заявки на проведення Ігор.
Ніяких постійних заходів не потрібно для тимчасової трансформації у “IBC”.
Після Ігор “IBC” знову буде використовуватися як торгівельно-ярмарковий
центр або для конференцій.
Головний прес-центр (“МРС ”) є центральним робочим місцем для акредитованої
писемної преси та фотокореспондентів, які висвітлюють Ігри. У той час,
коли “IBC” потребує велику територію на одному рівні, “МРС ” може бути
розташований у багатоповерховому офісному приміщенні загальною площею у
20,000 кв.м. Львівський “МРС ” можна розташувати у новому офісному будинку,
що прилягатиме до північної сторони “IBC”. Після Ігор будинок може надати
гнучкі для використання офісні площі.
Місто уклало договори на залучення кредитних коштів від ЄБРР на суму 38 млн. дол. США на реконструкцію міських вулиць та пов’язаних мереж, покращення інфраструктури громадського транспорту вздовж трамвайних ліній, проектування доріг і управління рухом.
13 жовтня 2011 року міжміською радою Львова та FHI Development 360 LLC (USAID)булопідписано Меморандумщодоспівробітництва в рамках ПрограмирозвиткуППП з метою підготовки пропозиції для реалізаціїінвестиційного проекту всферіпаркування. Започатковано співпрацю з NEFCO з метою залучення до 2 млн. грн. кредитних коштів в рамках проекту “Пільгове кредитування енергозбереження“ та підписано угоду з IFC щодо надання консалтингових послуг та підготовці стратегії поводження з ТПВ у містіЛьвові
The city has signed two agreements with EBRD on credit funds for reconstruction of city streets and related utilities, improvement of public transport infrastructure along tramway lines, road projection and traffic management
On October, 13, 2011 Lviv City Council and FHI Development 360 (USAID) signed Memorandum of Understanding on cooperation in frames of PPP Development Program (P3DP) aiming to prepare proposals on investment project implementation in a parking sphere. Lviv established cooperation with NEFCO with an aim to involve UAH 2 mln. of credit funds in frames of the project “Concessional Lending of Energy Conservation” and signed an agreement with IFC on providing consulting services and preparation of the Strategy on Solid Based Waste Treatment in Lviv.
В рамках стратегії розвитку електротранспорту закуплено близько 20 од. тролейбусів, є потреба у додатковій купівлі 50 тролейбусів та 40 трамвайних вагонів
В рамках запровадження на громадському транспорті системи безготівкової оплати за проїзд проведено конкурсний відбір партнера з досвідом формування та експлуатації таких систем, триває процес обговорення з транспортними операторами та створення спільного підприємства
В рамках збереження історичного ядра міста, занесеного до спадщини ЮНЕСКО, узгоджено проект створення пішохідно-паркувальних зон з контрольованим запуском та випуском транспортних засобів. На даний момент вже проведено конкурс на одну паркувальну зону, визначено переможця – комунальне підприємство. Опрацьовується питання оголошення конкурсу на ще 2 паркувальні зони, активно йде пошук інвесторів для комунального підприємства
Активно розвивається система управління рухомим складом громадського транспорту та автоматична система керування дорожнім рухом. В місті обладнано центр керування рухом, з якого вже керується робота 10 світлофорних об’єктів, в планах підключення до центру всіх діючих світлофорних об’єктів, а також нових. Окрім цього в центрі є окремі робочі місця для диспетчерів, які контролюватимуть рух громадського транспорту. На даний момент вже встановлено близько 400 пристроїв навігації на автобуси, а також близько 60 пристроїв навігації на рухомому складі електротранспорту
Міська влада активно сприяє розвитку тролейбусної та трамвайної мереж. Вже кінцево погоджено питання будівництва стратегічної для міста трамвайної колії до найбільш населеного спального району Сихів. Трамвайна лінія з високою провізною здатністю дасть можливість ефективно обслуговувати наявні значні пасажирські потоки
Черговим етапом реформи громадського транспорту є створення виділених смуг громадського транспорту, відокремлених фізичними пристроями, як початкової форми формування системи швидких автобусних перевезень. Облаштування таких смуг дозволить підвищити ефективність громадського транспорту, а, відповідно, і його привабливість для пасажирів