BRDO Head: It is necessary to harmonize legislation in a lot of fields for industrial parks development

industrialni-parky-366x260An improvement of regulatory policy, problematics and development prospects of the industrial parks network became a discussion topic during the roundtable “Industrial property and Industrial parks” organized by the Ukrainian Building Community on March 21. The Head of Better Regulation Delivery Office (BRDO) Oleksiy Honcharuk was the moderator of discussion.

Ukrainian leading experts in the field of industrial parks development in Ukraine participated in the discussion. In particular, the Chairman of Verkhovna Rada Committee on Industrial Policy and Entrepreneurship Viktor Halasyuk, the Vice Chairman of Verkhovna Rada Committee on Construction, Urban Development, Housing and Communal Services Petro Sabashuk, the Head of Association of Industrial Parks of Ukraine Ihor Nikolin and others took part in the round table meeting. The BRDO Construction Sector Analytical expert Serhij Seredyuk also attended in the discussion panel.

By UNIDO (The United Nations Organization on Industrial Development) definition, industrial park is a land divided on segments by pre-engineered plan, with the building (or without), with single infrastructure for group of manufacturers’ common use.  Historians think that the Trafford Park in English Manchester is the first specially created industrial park. It was founded by Ernest Hall in 1896. The businessman prepared and created the transport and engineering infrastructure on the 10 hectare territory and started to sell and farm out prepared lands for manufacturers. Here, in Trafford Park, Henry Ford opened his first plant in Europe in 1910.

Nowadays, the leaders of this trend are highly developed industrialized countries: the United States with nearly 400 parks, as well as Germany and China, where this specific real property segment has become much more perspective in comparison with separate offices and storage facilities. For example, industrial parks provide 18% of Hungarian industrial production, generating production release of 6 billion US dollars annually and creating more than 110 000 jobs.

The members of the roundtable “Industrial property and Industrial parks” in Kyiv discussed world experience and prospects of industrial parks in Ukraine. Prominent attention was paid to the analysis of the existing legislative framework to intensify the process of attracting investments in this segment. Particularly, in the issues of legislative harmonization in construction field. Separately, it was noted the necessity of solving the regulation problem related to the opening and development of the network of parks in Ukrainian realities. This issue is closely related to the implementation of the draft law #2844 on removal of the regulatory barriers for the development of industrial parks network in Ukraine.

The first Ukrainian concept on the creation of industrial parks network was developed in 2006, but, in fact, the activity in this field was started nearly three years ago with the adoption of the Law “On Industrial Parks” in 2012. During that period, 12 industrial parks have been registered in Ukraine, and only 4 of them (according to the Association of Industrial Parks experts) are really operating. It is the Lviv Industrial Park ‘Ryasne-2’, Korosten Industrial Park, Svema Industrial Park in Shostka and “Solomonovo” in Transcarpathia. Another ones stay at the project stage.

“The problem of industrial parks development is intersectoral. This issue needs the legislation harmonization in many fields – land development, building, taxation, etc. Better Regulation Delivery Office (BRDO) experts have the necessary experience in organizing the effective co-operation between different government authorities, experts and business representatives to analyze the existing regulatory framework and develop necessary changes,” the Head of BRDO Oleksiy Honcharuk stated.

Summarizing  the roundtable results, the participants agreed to continue professional and special consultations to solve the problems, which are the barriers for the development of the industrial parks network, in an efficient way.

According to experts, the creation of specialized zones for industrial development can provide up to 20% of economy growth. Moreover, the creation of such industrial parks in Eastern Ukraine will help not only to renovate the economic potential of our country, but also to speed up the solving of many social and economic problems of the region.