View
18
Download
0
Category
Preview:
Citation preview
The bnt Baltics-Belarus Business Opportunity Survey is published for general information purposes only and does not constitute advice of any kind. The publisher is not liable for any errors or misrepresentations.
www.bnt.eu 1
Baltics-Belarus Business Opportunity Survey
Belarus Estonia Latvia Lithuania
January 2017
www.bnt.eu
The bnt Baltics-Belarus Business Opportunity Survey is published for general information purposes only and does not constitute advice of any kind. The publisher is not liable for any errors or misrepresentations.
www.bnt.eu 2
© bnt attorneys-at-law 2017
Dear Reader,
The bnt Baltics-Belarus Business Opportunity Survey provides information about
upcoming investment projects in the Baltic States and Belarus.
With offices in Estonia, Latvia, Lithuania and Belarus, bnt attorneys-at-law covers this
region in all relevant areas of business law, including corporate/M&A, commercial and
contract law, litigation and arbitration, tax and administrative/procurement. For further
information on the projects presented, please contact our local offices. This publication
is for information only; bnt does not represent the project initiators.
General contact:
Lithuania: Linas Vadeika linas.vadeika@bnt.eu Latvia: Henning Jensen henning.jensen@bnt.eu Estonia: Liis Kelberg liis.kelberg@bnt.eu Belarus: Valeria Kazlovich valeria.kazlovich@bnt.eu
Contents:
Estonia.................................................................................................................................... 5
Construction of liquefied natural gas terminal ....................................................................... 6
Construction of “Gate Tallinn” retail park .............................................................................. 7
Construction of Tallinn prison ............................................................................................... 8
Construction of Peterburi Rd. shopping centre ..................................................................... 9
Development of green seaside residences ......................................................................... 10
Kalaranna residential development .................................................................................... 11
Pärnpuu-Pärnõie residential quarter ................................................................................... 12
Further Development of Ülemiste City ................................................................................ 13
Development of largest conference centre in Tallinn .......................................................... 14
Development of Tondi residential quarter ........................................................................... 15
New office building in Tallinn’s Freedom Square ................................................................ 16
The bnt Baltics-Belarus Business Opportunity Survey is published for general information purposes only and does not constitute advice of any kind. The publisher is not liable for any errors or misrepresentations.
www.bnt.eu 3
Development of Admiralty Basin surroundings ................................................................... 17
Construction of submarine railway tunnel (Tallinn – Helsinki) ............................................. 18
New residential quarter at the Noblessner harbour ............................................................. 19
Construction of tramway track extension to Tallinn airport .................................................. 20
Sale and reconstruction of Tallinn City Hall (Tallinna Linnahall) ......................................... 21
Spa/Hotel Ownership Opportunity (1/2) .............................................................................. 22
Spa/Hotel Ownership Opportunity (2/2) .............................................................................. 23
Development of shopping and entertainment centre........................................................... 24
Major EU financing for Estonia via “Rail Baltica” project ..................................................... 25
Latvia .................................................................................................................................... 26
Construction of Riga Northern Transport Corridor .............................................................. 27
Reconstruction of open-air festival stage ............................................................................ 28
The New Hanza City .......................................................................................................... 29
Reconstruction of New Riga Theatre .................................................................................. 30
Renovation and development project for Kaļķu Street ........................................................ 31
Transformation of Daugava Sports Stadium ....................................................................... 32
New logistics centre in Rāmava.......................................................................................... 33
Major EU financing for Latvia via “Rail Baltica” project ....................................................... 34
Business incubators will receive EUR 32.8 million .............................................................. 35
Construction of "Estonia-Latvia third 330 kv interconnection"…………………………………36
Renovation of Kemeri sanatorium ...................................................................................... 37
Wood transportation services in 2017-2018 ....................................................................... 38
Lithuania ............................................................................................................................... 39
Modernization of detention facilities .................................................................................... 40
Privatization of “Baltija” rest house in Palanga .................................................................... 41
Modernization of Lithuanian Zoo in Kaunas ........................................................................ 42
Reconstruction of the A14 Vilnius – Utena highway............................................................ 43
Vilnius Multifunctional Complex .......................................................................................... 44
The bnt Baltics-Belarus Business Opportunity Survey is published for general information purposes only and does not constitute advice of any kind. The publisher is not liable for any errors or misrepresentations.
www.bnt.eu 4
“Lithuanian Airports” seek investors ................................................................................... 45
Major upgrade of Klaipeda seaport ..................................................................................... 46
Major EU financing for Lithuania via “Rail Baltica” project................................................... 47
Belarus ................................................................................................................................. 48
Road resurfacing and construction ..................................................................................... 49
Manufacturing of ecobio microalgae-run mini heat power plants ........................................ 50
Joint Venture in Pharmaceuticals Production ..................................................................... 51
Favourable taxation regime: China-Belarus industrial park ................................................. 52
Favourable taxation regime: Belarusian High-Tech Park .................................................... 53
Joint Venture for Production of Railway and Large-size Casting......................................... 54
Pellet production with ancillary cogeneration at “Ivatsevichdrev” ........................................ 55
Investment in Biopharmaceuticals Production .................................................................... 56
Equipment for laser surgery manufacture ........................................................................... 57
Construction of nitrogen fertilizer complex at "Grodno Azot" OJSC .................................... 58
Multiple-Dwelling Residential Development construction .................................................... 59
Construction of stone-crushing plant with capacity of 4 mln. m3 ......................................... 60
Favourable conditions for business in Mogilevsky district ................................................... 61
Construction of plant for wind power stations ..................................................................... 62
Joint venture for production of modern heat exchangers .................................................... 63
Construction of hydroelectric power stations ...................................................................... 64
3D printers production ........................................................................................................ 65
Data storage device production .......................................................................................... 66
The bnt Baltics-Belarus Business Opportunity Survey is published for general information purposes only and does not constitute advice of any kind. The publisher is not liable for any errors or misrepresentations.
www.bnt.eu 5
Estonia Eesti
bnt Tallinn office Tatari 6, EE-10116 Tallinn Phone + 372 667 62 40 Fax + 372 667 62 41 info.ee@bnt.eu Contact Person(s): Partner Aet Bergmann Phone: +372 667 62 40 aet.bergmann@bnt.eu
The bnt Baltics-Belarus Business Opportunity Survey is published for general information purposes only and does not constitute advice of any kind. The publisher is not liable for any errors or misrepresentations.
www.bnt.eu 6
Estonia can now build a regional liquefied natural gas terminal At the beginning of October 2015, the Finnish government and the Finnish state enterprise Gasum announced their waiver of the right to build an LNG terminal in Finland. This means that Estonia can now take over construction of the regional terminal. The main part of the terminal construction, at approx. EUR 100 million, will be covered by the European Union. Finland will still continue to take part in the construction of the Baltic connector gas pipeline. In mid-October 2015, the Estonian Elering AS and the Finnish Baltic Connector Oy applied to CEF (Connecting Europe Facility) for co-financing. In Estonia, Alexela as well as Vopak E.O.S are interested in building the regional terminal. Alexela, which is planning to build the terminal in Paldiski, has already applied to the European Union for co-financing. Vopak E.O.S., whose project has been assessed as the most profitable by the European Commission working group, would build the terminal in Muuga harbour.
Construction of liquefied natural gas terminal
Completion expected in 2019 Executed by: Elering AS Baltic Connector Oy, Alexela, Vopak E.O.S., Tallinna Sadam AS. Value est.: EUR 500 million
The bnt Baltics-Belarus Business Opportunity Survey is published for general information purposes only and does not constitute advice of any kind. The publisher is not liable for any errors or misrepresentations.
www.bnt.eu 7
A large retail park to be constructed near the city of Tallinn. Gate Tallinn is a 62 ha land area that will be developed into the largest retail park in the eastern Baltic Sea region, featuring regionally-unique big-box stores and the first fashion outlet in the region. Retail parks and fashion outlets, offering a wider selection of goods and better prices than conventional shopping centres, are increasingly popular retail destinations in many emerging markets. The project has one of the best locations in the greater Tallinn area, lying on the main motorway out of Tallinn and the new ring road under construction. The site is bordered by Tallinn’s main commuter rail line and has its own railway station. The greater catchment area includes both southern Finland and St. Petersburg.
Construction of “Gate Tallinn” retail park
No significant dates included Executed by: Trigon Capital Value est.:
EUR 200 million
The bnt Baltics-Belarus Business Opportunity Survey is published for general information purposes only and does not constitute advice of any kind. The publisher is not liable for any errors or misrepresentations.
www.bnt.eu 8
A new prison to be constructed near Tallinn. Tallinn prison will be the third regional prison in Estonia along with those in Tartu and
Jõhvi, replacing the currently used but amortized Rummu and Tallinn prisons. The prison
will have the capacity to accommodate some 1300 prisoners. The closed area of the
Tallinn prison buildings is 61 100 m2 gross. Along with Tallinn prison, a new deportation
and internment centre will also be built near the prison.
Cell prison, detention centre, health department. 50 ha land in Rae on the outskirts of Tallinn, Soodevahe village and Veneküla village. The prison complex was designed by AS Amhold. If construction works proceed as planned, a modern prison complex will be completed by the end of 2018.
Construction of Tallinn prison
Initiated in 2012, completion expected at the end of 2018 Executed by: The Prisons Department of the Ministry of Justice; Fund Ehitus OÜ Value est.: EUR 73.9 million
The bnt Baltics-Belarus Business Opportunity Survey is published for general information purposes only and does not constitute advice of any kind. The publisher is not liable for any errors or misrepresentations.
www.bnt.eu 9
A large shopping centre is under construction in the city of Tallinn. The shopping centre is one of the most dynamic shopping developments in the Baltics as well as the newest and largest regional shopping centre project in Tallinn. The centre is located on the site of a former meat processing plant at the crossing of Peterburi Rd and Tartu Motorway, on the largest and most modern traffic junction in Tallinn within just a few minutes by car from the city centre and at the starting point of motorways to Tartu, Narva and Pärnu. The shopping centre will accommodate over 200 shops on ca 55 000 m2 of GLA. Building volume will total 130 400 m2. The shopping centre will also form part of a major public transport terminal, which is one of the most important infrastructure developments of the city in the near future, incorporating connections to the airport and to the future Rail Baltica international railway station in addition to local lines. The developer of the centre has announced that the preparation process has proceeded as planned. The 12 000 m2 entertainment complex of the centre has been covered by agreements and the surrounding infrastructure is finished. Construction works for the shopping centre began at the end of May 2014. Completion is expected in the fall of 2017.
Construction of Peterburi Rd. shopping centre
Construction started in May 2014 Executed by: Pro Capital Grupp (developer); Merko Ehitus (main contractor) Value est.: EUR 70 million
The bnt Baltics-Belarus Business Opportunity Survey is published for general information purposes only and does not constitute advice of any kind. The publisher is not liable for any errors or misrepresentations.
www.bnt.eu 10
Kopli Strand residential area up for development
As a result of a second public tender, this development project was finally sold to
Fund Ehitus. The city of Tallinn had been looking for a buyer for eight years.
The aim of the project is to open the urban space in the north-western direction, to
recondition the area by creating a safe high-quality living environment with the
required infrastructure and to enliven the city by adding new green areas. The site
is located on the Kopli peninsula, five kilometres from Tallinn Old Town and the
city centre. The development project area covers ca 17 ha; the area of the lot with
effective building rights is 6.6 ha.
The developer is planning to finish the project in 12 years. Construction work will
start in 2016. Since the area is divided into six quarters, it will be completed in
stages. Completion of the final stage is expected in 2026.
Development of green seaside residences
Completion of first stage expected in 2018 Completion of final stage expected in 2026 Executed by: Fund Ehitus Value est.: EUR 55–65 million.
The bnt Baltics-Belarus Business Opportunity Survey is published for general information purposes only and does not constitute advice of any kind. The publisher is not liable for any errors or misrepresentations.
www.bnt.eu 11
Development of luxury apartment buildings and marina. Kalaranna residential development project, located in the northern borough of Tallinn, foresees a series of luxury apartment buildings offering a sumptuous view of Tallinn’s coastline. The location – right next to the sea, Tallinn Old Town and city centre – is attractive and enjoys good access by both car and public transport. A detailed plan has already been partly established but not fully approved. The project is expected to be developed in one stage and will include a yacht marina. Overall, the project is targeted at upscale individual buyers who prefer to live in the proximity of a city centre and appreciate a sea view along with a completed quay that will provide moorings for private boats. The building volume of the development project covers 40 7802.
Kalaranna residential development
Establishment of detailed plan currently in progress Executed by: City Municipality of Tallinn Value est.: Total investment projected at EUR 58.68 million
The bnt Baltics-Belarus Business Opportunity Survey is published for general information purposes only and does not constitute advice of any kind. The publisher is not liable for any errors or misrepresentations.
www.bnt.eu 12
Luxury residential quarter near the town of Pärnu. The site is situated on the picturesque shore of the River Sauga, a five-minute drive by car from Pärnu city. The project is located in the immediate proximity of Pärnu city, in Audru borough, which is the biggest and most quickly developing part of Pärnu and famous for its historical events and monuments. A wonderful health resort, a famous golf course, and many other opportunities for spending a fine free time are located nearby. The quarter consists of 14 lots, each with an area of 1 502 m2 to 2 861 m2. Five lots are planned beside the River Sauga, with another nine lots on the other side of the nearest motorway. Electricity is connected and a detailed plan has been approved.
Pärnpuu-Pärnõie residential quarter
No significant dates indicated Executed by: PINDI Realia Group Value est.: area divided into two lots: Pärnpuu (2.12 ha) at EUR 108 649 and Pärnõie (2.45 ha) at EUR 76 693. The entire lot can be purchased for EUR 185 288.
The bnt Baltics-Belarus Business Opportunity Survey is published for general information purposes only and does not constitute advice of any kind. The publisher is not liable for any errors or misrepresentations.
www.bnt.eu 13
Ülemiste City, established on the site of the former Dvigatel factory, located in the middle of Tallinn Airport, the eastern branch of the railway and Tartu motorway, continues to evolve. Over the next 15 years, the business campus will be further developed as a multifunctional city space, which will provide ca 200,000 m2 office space (of which 70 000 m2 have been built since), 125 000 m2 apartment space and 125 800 m2 parking space. According to the developers, Ülemiste City can be regarded as an estimated billion euro development project. Under the new architectural design approved at the beginning of 2014, over the next 10-15 years Ülemiste City will become a fully-fledged modern quarter with integrated business and living environments and public services.
Further Development of Ülemiste City
No significant dates indicated Executed by: City Municipality of Tallinn Value est.: Not indicated
The bnt Baltics-Belarus Business Opportunity Survey is published for general information purposes only and does not constitute advice of any kind. The publisher is not liable for any errors or misrepresentations.
www.bnt.eu 14
An opportunity to take part in creating Estonia’s largest conference centre. Enterprise Estonia (Ettevõtluse Arendamise Sihtasutus) is planning to establish a multifunctional conference and exhibition centre, the largest in Estonia. Research by Enterprise Estonia showed several positive sides to Estonia that would attract a considerable number of international conferences to Estonia but a centre that would cover the needs of top-level major conferences is missing. According to the research, building the centre in Tallinn would cost EUR 65 million. The research recommended building a centre with a plenary hall of 5 000 m2, additional space and exhibition area of 5 000 m2. The research concluded that the best location would be Ülemiste City, Linnahall or the area between Noblessner and the Seaplane Harbour. However, entrepreneurs from Saaremaa are lobbying for the centre to be established in Saaremaa. Estonian Investment Corporation OÜ proposed that the conference centre could be built under the roof of Tallinn Airport. The next step is to find potential private investors in order to negotiate and find out how much the private sector is willing to invest and how big the state contribution should be.
Development of largest conference centre in Tallinn
Planned for completion by 2018 Executed by: Enterprise Estonia Value est.: EUR 65 million (incl. EUR 20 million contribution from E.E.)
The bnt Baltics-Belarus Business Opportunity Survey is published for general information purposes only and does not constitute advice of any kind. The publisher is not liable for any errors or misrepresentations.
www.bnt.eu 15
New residential block under construction in the city centre periphery of Tallinn. Tondi Quarter is one of the largest residential blocks in the Baltic States, located in Kristiine borough, a residential area in the city centre periphery of Tallinn. Building volume of the project will be 144 000 m2 including underground parking ca 28,000 m2. The unique project foresees impressive red brick buildings smoothly integrated with the modern architecture that will rise over the hill in the centre of the new block, providing a series of apartment and office buildings built on land plots historically occupied by barracks. The location is attractive for a residential area: close to the city centre but at a distance from main roads. The detailed plan has been established and construction works have started. The project is expected to be developed in five stages.
Development of Tondi residential quarter
First building completed in March 2015 Executed by: LAAM Kinnisvara OÜ, Pro Kapital Grupp AS Value est.: ca EUR 108.2 million
The bnt Baltics-Belarus Business Opportunity Survey is published for general information purposes only and does not constitute advice of any kind. The publisher is not liable for any errors or misrepresentations.
www.bnt.eu 16
A new office building with 10 770 m2 of office space in total will be constructed in Tallinn’s Freedom Square. A work entitled Kawe City won an architectural competition held by real estate company Kawe and Tallinn City Municipality. Kawe City will be a modern office building with conservative architectural language, in line with the older architecture of Freedom Square. At the moment, a detailed plan is under consideration. The architectural competition was largely meant to state the volume of the building, but the developers have promised to stick to the architecture in the construction phase as well.
New office building in Tallinn’s Freedom Square
No significant dates indicated Executed by: AS Kawe Group, City Municipality of Tallinn Value est.: Not indicated.
The bnt Baltics-Belarus Business Opportunity Survey is published for general information purposes only and does not constitute advice of any kind. The publisher is not liable for any errors or misrepresentations.
www.bnt.eu 17
Surroundings of the Admiralty basin at the heart of Tallinn will be turned into an outstanding city centre. Two leading real estate developers, OÜ Capital Mill and Delta-Max Group, are planning to invest a total of ca EUR 200 million in the most valuable plots in Tallinn to create 200 000 m2 of living and business area. Construction of a complex of four different looking buildings with a total cost of EUR 25 million and a total area of 25 000 m2 started in the fall of 2014. The complex, called Promenade House, will contain 120 luxury apartments and 4 000 m2 of commercial space at the street level. At the same time, an international architects’ office is finalising the other, much larger project at the Admiralty basin. The volume of this development will be over 150 000 m2 and the size of the investment EUR 120–150 million. The developer, Delta-Max Group, is mainly planning to build first class offices but possibly also several luxury rental apartments. Large and small investors are sought for this project.
Development of Admiralty Basin surroundings
No significant dates indicated Executed by: OÜ Capital Mill; Delta-Max Group Value est.: ca. EUR 200 million.
The bnt Baltics-Belarus Business Opportunity Survey is published for general information purposes only and does not constitute advice of any kind. The publisher is not liable for any errors or misrepresentations.
www.bnt.eu 18
The Tallinn to Helsinki tunnel is a proposed undersea tunnel that would span the Gulf of Finland and connect the Estonian and Finnish capitals. The length of the tunnel would be around 50 km, depending on the route taken. It would
significantly increase the carriage of passengers as well as goods between the two states
and connect the whole of Scandinavia into a single railway network. A submarine tunnel
would reduce the travel time between Tallinn and Helsinki to 30 minutes.
According to a feasibility study conducted by experts from Estonia, Finland and Sweden,
construction of a submarine tunnel between the two capitals, along with traffic
management, logistic centers and vehicles, would cost EUR 9-13 billion. A preliminary
study estimates the period of return to be around 35-40 years. About 40-50 per cent of
the construction costs should fall on the shoulders of the Estonian and Finnish
governments and the EU. The rest is expected from private investors.
Upon completion, the Tallinn-Helsinki tunnel would be the longest submarine tunnel in the world.
Construction of submarine railway tunnel (Tallinn – Helsinki)
Completion
expected 2030
– 2035
Executed by: City Municipality of Tallinn Value est.: EUR 9-13 billion
The bnt Baltics-Belarus Business Opportunity Survey is published for general information purposes only and does not constitute advice of any kind. The publisher is not liable for any errors or misrepresentations.
www.bnt.eu 19
A new residential quarter with 210 apartments will be built at Noblessner harbour. The Noblessner quarter is a unique residential development in Estonia - four residential buildings with commercial spaces on the ground floor will be built directly at the seaside, next to the Noblessner yacht harbour. The developer of the area with a size of 1.7 ha is Kalaranna Arenduse OÜ, a joint company established by AS Merko Ehitus and BLRT Grupp Aktsiaselts. The aim of the development is to create a human friendly environment with space and possibilities for different activities for people of any age. With squares, playgrounds, recreation areas, the area is open to the seaside. The public area of the quarter offers possibilities for organizing open air events. At the same time, local people can have their privacy in their inner courtyards. The first building will be finished by spring 2017.
New residential quarter at the Noblessner harbour
Completion of first building expected in 2017 Executed by: Kalaranna Arenduse OÜ;
The bnt Baltics-Belarus Business Opportunity Survey is published for general information purposes only and does not constitute advice of any kind. The publisher is not liable for any errors or misrepresentations.
www.bnt.eu 20
By tram from the city centre to the airport
Construction of the tramway track extension to Tallinn airport will start at the end of 2015. Estimated project cost is EUR 11.5 million. As a part of the project, a 100 metre tunnel will be built from the tramway terminal stop to the airport itself. The tramway extension will also pass through the planned public transport terminal as well as Ülemiste City. The length of the new tramway will be 2 km. Tallinna Linnatranspordi AS (public transportation company owned by the city of Tallinn) has already applied for funding from CEF (Connecting Europe Facility). The city of Tallinn will finance 15% of the total cost of the project. Completion of the project is expected at the end of 2017.
Construction of tramway track extension to Tallinn airport
Completion expected at the end of 2017 Executed by: AS Merko Ehitus Eesti KMG Inseneriehituse AS Value: EUR 11 million
The bnt Baltics-Belarus Business Opportunity Survey is published for general information purposes only and does not constitute advice of any kind. The publisher is not liable for any errors or misrepresentations.
www.bnt.eu 21
Parts of Tallinn City Hall to be sold to finance reconstruction of its concert hall
Tallinn City Hall, situated right next to Tallinn harbour, was built for the 1980 Moscow
Summer Olympics. The building consists of three parts: a concert hall situated in the middle
of the complex, an ice rink and a harbour on the north side. The building has not been used
since 2009.
The city of Tallinn has spent years looking for investors. Since there has been no success
so far, the owner has now decided to divide the building into smaller parts, which will then
be sold. The city of Tallinn is also planning to sell the surrounding plots. Money from sales
would be used for reconstruction of the concert hall.
Although the building is of value in terms of heritage conservation, the rules set out for it are
not too strict: extensions and alterations are possible, but the architectural appearance and
external finish have to be preserved. It is possible to add one to two floors to the north side
of the building. This space could then be used for commercial and business purposes. The
location of the building is also ideal for tourism. The state would like to see it as a new
representative conference centre.
Sale and reconstruction of Tallinn City Hall (Tallinna Linnahall)
Owner: city of
Tallinn
Estimated project value: aprox. EUR 65-75 million.
The bnt Baltics-Belarus Business Opportunity Survey is published for general information purposes only and does not constitute advice of any kind. The publisher is not liable for any errors or misrepresentations.
www.bnt.eu 22
Grand Rose Spa Hotel and Tallinn Viimsi Spa up for sale.
The Grand Rose Spa Hotel is a beautiful boutique spa hotel located on the island of
Saaremaa in Kuressaare city centre. Kuressaare can be reached by air or land transport all
year round. The hotel is one of the best spa hotels in the Baltics. It opened in 2007 following
extensive renovation of the historic building. It has 66 bedrooms, a full service 90 seat
restaurant and an extensive spa and sauna area.
Tallinn Viimsi Spa is located in the Viimsi suburb of Tallinn, 12 km from the city centre, near
the sea. In addition to regular hotel services it offers a wide range of leisure activities: the
Atlantis Waterpark (opened in 2015), a sport, health and sauna centre, a children’s indoor
playground, restaurants and a cinema. All the facilities (totally 16,500 m2) are
interconnected.
Both spas are operated on the basis of rental contracts (both with a possibility to terminate
or amend) and are for sale as a package. The package can be combined with the Toila spa
(see next page).
Spa/Hotel Ownership Opportunity (1/2)
No significant dates indicated Value est.: EUR 35 million.
The bnt Baltics-Belarus Business Opportunity Survey is published for general information purposes only and does not constitute advice of any kind. The publisher is not liable for any errors or misrepresentations.
www.bnt.eu 23
Toila Spa Hotel up for sale. The Toila Spa hotel is located on a high cliff near the Gulf of Finland, close to the well-
known Toila-Oru park, a couple of hours’ drive from Tallinn as well as from St. Petersburg.
It is situated in a pine forest and has a beautiful view to the sea.
Toila is a preferred vacation area among both Estonians and Russians mainly because of
its air quality, as the air is considered particularly healthy and suitable for healing purposes.
The hotel itself is a 9 storey building offering 158 rooms, containing a spa with swimming
pool and wellness centre, including several saunas, a restaurant with 120 seats and several
conference rooms (largest capacity approx 80 persons). The premises include 15 camping
houses and facilities for caravans.
The spa is currently operated on the basis of a rental contract (with possibility to terminate or amend). It can be combined with the Grand Rose and Viimsi spas (see previous page).
Spa/Hotel Ownership Opportunity (2/2)
No significant dates indicated Value est.: EUR 15 million. Together with Viimsi SPA/ Grand Rose Spa / Toila Spa: EUR 50 million.
The bnt Baltics-Belarus Business Opportunity Survey is published for general information purposes only and does not constitute advice of any kind. The publisher is not liable for any errors or misrepresentations.
www.bnt.eu 24
Sada Market shopping centre up for development
The centre is located in the heart of tourist Tallinn, very close to the Old Port and is the first
thing that catches the eye when disembarking cruise ships or yachts.
The number of passengers passing through the Old Port is increasing yearly. For that
reason and due to its current occupancy of 65.7%, this investment project shows promise in
terms of both consumers and real estate.
Sada Market consists of three buildings: building A with an area of 3,518m2, building B with an area of 4,628m2 and building C with an area of 2,013m2. Buildings A and B are a single unit which is connected with building C. The investment proposal applies to the entire property or just to a development project for area C. In 2011 a detailed plan for building four additional floors was approved and the development project is currently up for sale. According to real estate consultants approximate construction costs are likely to be around 6,700,000 euros.
Development of shopping and entertainment centre
No significant dates indicated Value: EUR 28 mln for the whole project or EUR 6 mln for the development project of the planned four additional floors, with approximate additional construction costs around 6.7 mln euros
The bnt Baltics-Belarus Business Opportunity Survey is published for general information purposes only and does not constitute advice of any kind. The publisher is not liable for any errors or misrepresentations.
www.bnt.eu 25
The “Rail Baltica” project opens the way for new construction related public procurement in the Baltic States. The “Rail Baltica” project aims to lay a new 1435 mm wide European standard railway line across the Baltic States,
replacing the old 1520 mm Russian railway line and providing south-north oriented integration into Europe’s railway
infrastructure. The track will span 728 km and will link Warsaw-Kaunas-Riga-Tallinn. This modern and
environmentally friendly railway will carry passengers at the speed of 170 km/h and cargo at the speed of 68 km/h. A
joint venture of the Baltic States, “RB Rail”, has been established to oversee realization of the project. In total the EU
has granted EUR 734 million for the whole project. EU financing is estimated to cover 85% of the whole project cost,
while the rest will be supplemented by the participant states.
Estonia hosts ca 200 kilometres of the entire Rail Baltic route with a cost appraised around EUR 1.3 billion. During
the first call for proposals Estonia applied for EUR 191 million, to be used for detailed design of railway alignment
plus environmental and other surveys. These funds enable the start of preliminary construction work on railway
embankments, overpasses and other objects required for railway transportation. A substantial role in this project in
addition to RB Rail AS will be carried out by the Estonian Technical Surveillance Authority and Rail Baltic Estonia
OÜ.
During the second half of 2016 negotiations with current real estate owners are likely to take place, in order to purchase the land necessary for construction. The most likely route passes through ca 750 immovable properties. The property acquisition process is planned to be carried out in 2017—2018. Construction of the railway itself is scheduled to begin by the end of 2018.
Major EU financing for Estonia via “Rail Baltica” project
The bnt Baltics-Belarus Business Opportunity Survey is published for general information purposes only and does not constitute advice of any kind. The publisher is not liable for any errors or misrepresentations.
www.bnt.eu 26
Latvia Latvija
bnt Rīga office Alberta iela 13, Rīga, LV-1010 Phone + 371 6777 05 04 Fax + 371 6777 05 27 info.lv@bnt.eu
Contact Person(s): Partner Theis Klauberg LL.M. Phone: +371 6777 05 04 theis.klauberg@bnt.eu
The bnt Baltics-Belarus Business Opportunity Survey is published for general information purposes only and does not constitute advice of any kind. The publisher is not liable for any errors or misrepresentations.
www.bnt.eu 27
Renovations and enhancements are being applied to the Pärnu motorway. The Riga Northern Transport Corridor is considered to be Riga’s largest transport infrastructure project in recent decades. Objectives of the project include diverting traffic from Riga city centre plus improving city centre environmental and living conditions. Construction of the Northern Corridor will connect Riga Freeport to the Trans European (TEN-T) road network, improve the transport infrastructure system in Riga and its metropolitan area and increase the city’s growth opportunities and international competitiveness. According to the Riga and Pieriga Mobility plan, the Northern Corridor is considered a priority project. Implementation of the project will result in a convenient high-speed motorway crossing Riga from east to west and bypassing the historic city centre. The overall planned length of the road is 30 km. The western part of the Northern Corridor will connect to the Riga bypass at Babite and will lead to the Riga – Jurmala – Ventspils motorway (junction at Priedaine). The eastern part of the Northern Corridor will connect to the Vidzeme motorway at Bergi. The Northern Corridor will be integrated into the network of Riga’s arterial streets with 9-12 multi-level junctions. The motorway will also cross the 0.4 km wide River Daugava.
Construction of Riga Northern Transport Corridor
Construction planned to commence from 2015 to 2018 Completion expected 2022 Executed by: Municipality of Riga (3 stages); Ministry of Transport (final stage) Value est.: EUR 1.4 billion
The bnt Baltics-Belarus Business Opportunity Survey is published for general information purposes only and does not constitute advice of any kind. The publisher is not liable for any errors or misrepresentations.
www.bnt.eu 28
Construction of Rail Baltica stretch in Latvia
Reconstruction of open air stage for the Latvian Song and Dance Festival. In mid-2007 Riga City Council announced a new international design competition. The competitors were expected to produce rational, structurally innovative and acoustically impeccable proposals for transforming the stage which would include a roof with a system of acoustic elements, partial transformation of choir stands, transformation of the spectator amphitheatre, construction of new stands in the rear part of the amphitheatre and installation of transformable spectator bench systems. An additional requirement was that in the periods between song festivals, the complex should be used for concerts and mass events involving advanced audio and video technologies. At the moment the winner of the international sketch competition for the song and dance festival open air stage reconstruction is Latvian architectural practice SIA Arhitekta J. Pogas Birojs. The open air stage should be ready for the next song and dance festival in 2018, so that the planned start of reconstruction was 2014.
Reconstruction of open-air festival stage
Construction commences 2014, completion expected by 2018. Executed by: Municipality of Riga Value est.:
EUR 28 million
The bnt Baltics-Belarus Business Opportunity Survey is published for general information purposes only and does not constitute advice of any kind. The publisher is not liable for any errors or misrepresentations.
www.bnt.eu 29
Construction of Hanza City financial centre. In the next five years New Hanza City will receive EUR 160 million investment to continue construction work under a new development plan. New Hanza City is planned to be a regional financial centre with office buildings for several financial institutions including the ABLV Bank central building. The new urban district will have six-floor office buildings, a museum, a park and two kinds of “park house” type apartment buildings. The area for the project is between Pulkveza Brieza, Hanzas, Skanstes and Sporta streets. The next five year plan includes constructing and installing piping, underground parking and the central part of the project which would include office buildings and the ABLV bank headquarters. Construction is planned to put into operation a number of building lots by 2033, although construction rates will depend on the situation in the real estate market. According to the authors of the project, the area will contain a number of office buildings, including the A / S "ABLV Bank" building, a four or five-star hotel, a conference centre, shopping gallery and entertainment area. Office buildings will occupy ca 100 000 m2 total area, the commercial and public area 20,000 m2 and the hotel 15 000 m2. The prospective development is located within the protected zone of the Riga historic centre.
The New Hanza City
Completion expected in 2033. Executed by: Pillar holding, ABLV Value est.: EUR 250 million 5 year investment plan 160 million
The bnt Baltics-Belarus Business Opportunity Survey is published for general information purposes only and does not constitute advice of any kind. The publisher is not liable for any errors or misrepresentations.
www.bnt.eu 30
An opportunity to expand the New Riga Theatre. The New Riga Theatre is a professional repertory theatre that provides innovative art corresponding to the requirements of the independently-thinking contemporary spectator both in content and form. In the course of time the historic building has been adapted for the needs of the theatre but today has become too small to be able to absorb the growing number of spectators. The New Riga Theatre will be provided with appropriate premises reconstructing the theatre complex of buildings in accordance with modern requirements, while maximizing respect for the historic atmosphere of the building. The New Riga Theatre needs modernization of the stage, the auditorium and adjacent space reconstruction. Area: 5 146 m2
Reconstruction of New Riga Theatre
Completion expected at the end of 2018 Executed by: Ministry of Culture Value est.: EUR 7 million
The bnt Baltics-Belarus Business Opportunity Survey is published for general information purposes only and does not constitute advice of any kind. The publisher is not liable for any errors or misrepresentations.
www.bnt.eu 31
AS Baltic RE Group in financial cooperation with ABLV Bank has invested EUR 28 million in historic buildings located in Riga Old Town. The intention of the investment is to make Kaļķu Street a family-friendly shopping street. Kaļķu Street buildings will be reconstructed and modernized for shopping street needs with a total leasable area of 14 000 m2. The shopping complex will include six items of real estate: Kaļķu Street 15, Kaļķu Street 12/14, Kaļķu Street 6 and (crossing the street) Kungu Street 1, Krāmu Street 2 and Šķūņu Street 19. In total the shopping street will consist of 19 buildings and the complex will have capacity for 35 different shops. Baltic AS RE Group CEO Giovanni Dalla Zonko emphasized that Riga will benefit from the transaction because it is the central city of the Baltic States with significant tourism potential.
Renovation and development project for Kaļķu Street
No significant dates indicated Executed by: AS Baltic RE Group, ABLV Bank Initial investment for development EUR 28 million
The bnt Baltics-Belarus Business Opportunity Survey is published for general information purposes only and does not constitute advice of any kind. The publisher is not liable for any errors or misrepresentations.
www.bnt.eu 32
By investing EUR 47 million, Daugava Sports Stadium will be reconstructed as a culture and sport event amphitheatre. Daugava Sports stadium will be reconstructed to fit higher quality standards and to increase the capacity of the amphitheatre. The existing seating is only for 5000. The goal is to make the stadium more attractive for big concerts and national pastime events. The objective of the reconstruction is to make an amphitheatre in Riga centre for high profile sports, music and dance events and also the hosting venue for national dance and song festivals. Project planning has just begun and the necessary preparation work for the renovation and EU fund allocation are in implementation stages.
Transformation of Daugava Sports Stadium
Expected start of reconstruction 2017 Executed by: VSIA Culture and Daugava Sports Centre Value est.: EUR 47 million
The bnt Baltics-Belarus Business Opportunity Survey is published for general information purposes only and does not constitute advice of any kind. The publisher is not liable for any errors or misrepresentations.
www.bnt.eu 33
Sanitex is establishing a new high-tech logistics centre in Rāmava with storage space of up to 41200 m2. Sanitex has received a loan of EUR 17.4 million from SEB Bank for company development. The SEB Bank loan together with additional resources will constitute EUR 25 million, a sum to be invested in buying property and building a new, high-tech logistics centre. The centre will increase the quantity and quality of warehousing and logistic services in the Baltic States and will create 500 jobs. The centre will provide excise warehouse services and ease efficient handling of merchandise.
New logistics centre in Rāmava
No significant dates to indicate Executed by: Sanitex group Value est.: EUR 25 million
The bnt Baltics-Belarus Business Opportunity Survey is published for general information purposes only and does not constitute advice of any kind. The publisher is not liable for any errors or misrepresentations.
www.bnt.eu 34
The “Rail Baltica” project opens the way for new construction related public procurement in the Baltic States. The “Rail Baltica” project aims to lay a new 1435 mm wide European standard railway line across the Baltic States, replacing the old 1520 mm Russian railway line and providing south-north oriented integration into Europe’s railway infrastructure. The track will span 728 km and will link Warsaw-Kaunas-Riga-Tallinn. This modern and environmentally friendly railway will carry passengers at the speed of 170 km/h and cargo at the speed of 68 km/h. A joint venture of the Baltic States, “RB Rail”, has been established to oversee realization of the project. In total the EU has granted EUR 734 million for the whole project. EU financing is estimated to cover 85% of the whole project cost, while the rest will be supplemented by the participant states. The “Rail Baltica” environmental impact evaluation report has been discussed and accepted at all municipal public hearings. During the period from April to November 2015, cooperation between local government and citizens groups resulted in more specific track location: an approximately 300 metre wide possible railway track location has narrowed to a 60 metre wide corridor. Overall there have been more than 1000 electronic and face to face consultations to ensure the route is suitable for everyone.
Major EU financing for Latvia via “Rail Baltica” project
The bnt Baltics-Belarus Business Opportunity Survey is published for general information purposes only and does not constitute advice of any kind. The publisher is not liable for any errors or misrepresentations.
www.bnt.eu 35
Latvian Investment and Development Agency (LIAA) will provide funding for new regional companies and startups. Investment aims to support creation and development of new and competitive businesses in
Latvia’s regions. LIDA will provide businesses with an entrepreneurial environment plus
consultations and advice in general and on specific business matters. Available funding will
consist of EUR 25.7 million in regional development field and EUR 7.1 million for startups,
overall a great possibility to start business in Latvia.
Business incubators will receive EUR 32.8 million
No significant dates to indicate Executed by: LIAA Value est.: EUR 32.8 mil.
The bnt Baltics-Belarus Business Opportunity Survey is published for general information purposes only and does not constitute advice of any kind. The publisher is not liable for any errors or misrepresentations.
www.bnt.eu 36
Design and construction opportunity for 180 kilometres of high voltage electricity transmission in Latvia Joint Stock Company “Augstsprieguma tīkls” has announced procurement for the design and construction of a high voltage electricity transmission line from the capital, Riga, to the Estonian border. The “Estonia-Latvia third 330 kV interconnection” project will ensure the stability and security of the electricity supply network within the Baltic region, while additionally allowing Latvian electricity consumers to acquire access to electric energy from the considerably cheaper Scandinavian energy market, an opportunity rendered impossible by the current electricity distribution network. The initiative, which has been awarded the status of being of national interest, falls within both Latvian and European electricity network development plans and is forecast to be fully implemented by 2020. The cost of the new development is estimated at approximately 100 million EUR, with a 63 million EUR grant from Connecting Europe Facility funds.
Design and construction of “Estonia-Latvia third 330 kV interconnection”
Deadline for applications: 13 January 2017 Executed by: Joint Stock Company “Augstsprieguma tīkls” Value: EUR 100 million
The bnt Baltics-Belarus Business Opportunity Survey is published for general information purposes only and does not constitute advice of any kind. The publisher is not liable for any errors or misrepresentations.
www.bnt.eu 37
Renovation works of the historically renowned sanatorium located in Kemeri to be completed by 2019 Representatives of Jurmala City Council and Park Hotel Kemeri have signed a memorandum of intent confirming their concrete determination to invest up to 35 million EUR in renovation works to Kemeri sanatorium, a real estate complex significantly decayed over recent decades due to minimal government support towards its maintenance. The memorandum has been deemed crucial for obtaining funds from the European Union, thus ensuring the success of the project. Similarly, the local municipality will contribute 11.23 million EUR towards the overall improvement of Kemeri, with specific attention to regenerating the adjacent park, improving the local road network, as well as other crucial infrastructure projects core to the further socio-economic development of the city of Jurmala.
Renovation of Kemeri sanatorium
Completion expected by 2019 Executed by: Limited Liability Company “Park Hotel Kemeri”; Municipality of Jurmala Value: EUR 35 million
The bnt Baltics-Belarus Business Opportunity Survey is published for general information purposes only and does not constitute advice of any kind. The publisher is not liable for any errors or misrepresentations.
www.bnt.eu 38
Opportunity to provide wood transportation services for “Latvian State Forests” Joint Stock Company “Latvian State Forests” (LSF) has announced procurement for providing wood transportation services within the Republic of Latvia in 2017. LSF currently maintains over a million hectares of forest within Latvia. This means that the contract will grant transportation rights for a truly substantial yearly volume, with the maximum quantity of timber amounting to almost three million cubic metres.
Wood transportation services in 2017-2018
Deadline for applications: 30 January 2017 Executed by: Joint Stock Company “Latvian State Forests” (AS “Latvijas valsts meži”) Value: EUR 23,437,440
The bnt Baltics-Belarus Business Opportunity Survey is published for general information purposes only and does not constitute advice of any kind. The publisher is not liable for any errors or misrepresentations.
www.bnt.eu 39
Lithuania Lietuva
bnt Vilnius office Kalinausko str. 24, LT-03107 Vilnius Phone +370 5 212 16 27 Fax +370 5 212 16 30 info.lt@bnt.eu
Contact Person(s): Partner Frank Heemann LL.M. Phone: +370 5 212 16 27 frank.heemann@bnt.eu
The bnt Baltics-Belarus Business Opportunity Survey is published for general information purposes only and does not constitute advice of any kind. The publisher is not liable for any errors or misrepresentations.
www.bnt.eu 40
A public-private partnership to modernize detention facilities in Lithuania. In July 2014 the Lithuanian Government approved a new detention facilities modernisation programme with a scheduled deadline for 2022. The programme involves construction of a new detention facility on the outskirts of Vilnius and construction of new detention facilities in Šiauliai, Klaipėda and Panevėžys on a PPP basis. Vilnius detention facility, with 1620 beds (29 000 m2), will be the first to tender out. It is expected that a new detention facility near Vilnius will be built and the inmates currently held in Lukiškės prison (located in the city centre) will be moved out. After this project, the next project in the pipeline is Šiauliai detention facility, with 800 beds. The government is prepared to invest a large portion of budget funds, but private co-investors are also sought. Any interested investors are invited to join the government in investing their funds and executing the project as a PPP. The plan is for the partnership to last for 22 years, during which the private partner will develop and maintain the infrastructure and the government, in return, will pay an annual fee of EUR 13 million. After the partnership, the government takes over ownership of the infrastructure.
Modernization of detention facilities
Completion expected by 2022 Executed by: Ministry of Justice; Lithuanian Prison Department Value est.: EUR 40 million for new facility in Vilnius; ≈ EUR 290 million for the whole programme.
The bnt Baltics-Belarus Business Opportunity Survey is published for general information purposes only and does not constitute advice of any kind. The publisher is not liable for any errors or misrepresentations.
www.bnt.eu 41
Privatization of desirable real estate on the Baltic Sea coast. “Baltija” is the biggest rest and treatment complex in the Lithuanian resort town of Palanga, which includes different levels of hotels: the 2 star “Vyturys” hotel (conference room, health service facilities and rehabilitation centre), the 3 star “Zilvinas” hotel (24 rooms, tennis courts, aesthetics and beauty centre), the „Estetic Italia Baltic” aesthetics and beauty centre and the “Baltija” rehabilitation centre . At the moment, services are not available, as the buildings have not been renovated. The government decided to dispose of the shares in the complex to the Ministry of Economy. The market value of buildings, structure and other assets is ca EUR 6 million. This will be the value of the registered capital of a new company which will restructure the state-owned enterprise. After restructuring, the Ministry of Economy will decide on transfer of the complex to the State Asset Fund, which in turn will start the process of privatization.
Privatization of “Baltija” rest house in Palanga
No significant dates indicated; Executed by: State Asset Fund Value est.: EUR 6 million.
The bnt Baltics-Belarus Business Opportunity Survey is published for general information purposes only and does not constitute advice of any kind. The publisher is not liable for any errors or misrepresentations.
www.bnt.eu 42
An optimistic future for the unmodernized Lithuanian Zoo. The Kaunas City Council has approved a detailed plan for modernization of the city zoo. According to the Ministry of Environment, which is the acting manager of the building, this decision opens the way for EUR 11.5 million EU financial support. According to the company “Project Training centre”, which performed a feasibility study on the zoo’s modernization, modernization would require an injection of EUR 29 million. The EUR 11.5 million is just for the first step. Kaunas zoo houses some 2020 animals, many of them belonging to endangered species. The zoo is a candidate for membership of the European Association of Zoos and Aquaria, involved in the European breeding programme of rare and endangered animals. Area of zoo: 15.6 ha.
Modernization of Lithuanian Zoo in Kaunas
No significant dates indicated Executed by: Kaunas City Council, Ministry of Environment Value est.: EUR 11.5 million.
The bnt Baltics-Belarus Business Opportunity Survey is published for general information purposes only and does not constitute advice of any kind. The publisher is not liable for any errors or misrepresentations.
www.bnt.eu 43
Highway A14 connecting the cities of Vilnius and Utena is in need of reconstruction: a PPP project is initiated to supply it. Lithuanian parliament has approved a PPP project for reconstructing and maintaining 72.15 km of highway No A14 road that connects the capital city with the city of Utena. The partnership is estimated to last for 10-15 years, reconstruction itself taking place in the period 2017-2019. Built over 80 years ago, highway A14 is one of the worst maintained roads in the country. Reconstruction of the highway is imminent as Vilnius continues to expand in the direction of Utena and car traffic increases. Lithuanian parliament has confirmed the budget of EUR 170 million (EUR 60 million for
the construction and EUR 110 million for the later maintenance.
At the moment the Lithuanian Road Administration under the Ministry of Transport and
Communications is in the process of drafting conditions for the procurement. First draft of
technical specifications and other documents are expected at the beginning of 2017.
Reconstruction of the A14 Vilnius – Utena highway
Project duration: 10-15 years Executed by: Lithuanian road administration. Value est.:
EUR 170 million
The bnt Baltics-Belarus Business Opportunity Survey is published for general information purposes only and does not constitute advice of any kind. The publisher is not liable for any errors or misrepresentations.
www.bnt.eu 44
The race is on for financing a new multifunctional complex for sports, health, education and culture in Vilnius. In September 2016 Vilnius Municipality Administration published a public tender for a Design-Build-Finance-Operate (DBFO) concession contract for Vilnius Multifunctional Complex.
The new infrastructure will include: - stadium with 15,000 seats; - Lithuanian Sports Museum; - sports facilities for non-formal education; - cultural educational centre and library infrastructure with an area of 1,600 sq. metres; - kindergarten, accommodating at least 300 children.
Vilnius Multifunctional Complex
Currently in procurement Executed by: Vilnius City Municipality Administration Estimated investment costs: EUR 88 million
The bnt Baltics-Belarus Business Opportunity Survey is published for general information purposes only and does not constitute advice of any kind. The publisher is not liable for any errors or misrepresentations.
www.bnt.eu 45
Preparations are under way for state owned company “Lithuanian Airports” to enter into a concession agreement with a private investor. Possible concessionaires are already being sought. The government has approved a plan for “Lithuanian Airports” to enter into a concession arrangement. The state-owned company needs private investment to expand and modernise the airport infrastructure and operational efficiency as demand for air travel keeps steadily growing in Lithuania. In exchange for private investment, the concessionaire would gain the privilege of operating the infrastructure and carrying out commercial activities at Vilnius (VNO), Kaunas (KUN) and Palanga (PLQ) airports for up to 20-25 years. The state would keep ownership of all infrastructure objects. No solid estimates are available yet as to the value of the concession agreement.
“Lithuanian Airports” seek investors
Concession agreement expected to be entered in until 2019 Executed by: Lithuanian Airports Value est.:
-
The bnt Baltics-Belarus Business Opportunity Survey is published for general information purposes only and does not constitute advice of any kind. The publisher is not liable for any errors or misrepresentations.
www.bnt.eu 46
Klaipeda seaport channel to be deepened to 17 m. by 2020 Currently the Klaipeda seaport channel is 15 metres deep. That is, two metres less than
Riga seaport and one metre less than Ventspils seaport. The current depth of Klaipeda
seaport restricts the size and loading of big carrier ships entering the port. With a depth of
17 metres, by 2020 Klaipeda seaport could service virtually any carrier ship operating in
the Baltic Sea.
In the period between 2017 and 2020, Klaipeda seaport is planning to procure
construction works (most likely a series of public procurement procedures) worth some
EUR 330 million.
Major upgrade of Klaipeda seaport
Completion expected by 2020 Executed by: Klaipeda seaport Value est.: EUR 330 million
The bnt Baltics-Belarus Business Opportunity Survey is published for general information purposes only and does not constitute advice of any kind. The publisher is not liable for any errors or misrepresentations.
www.bnt.eu 47
The “Rail Baltica” project opens the way for new construction related public procurement in the Baltic States and The “Rail Baltica” project aims to lay a new 1435 mm wide European standard railway line across the Baltic States,
replacing the old 1520 mm Russian railway line and providing south-north oriented integration into Europe’s railway
infrastructure. The track will span 728 km and will link Warsaw-Kaunas-Riga-Tallinn. This modern and
environmentally friendly railway will carry passengers at the speed of 170 km/h and cargo at the speed of 68 km/h. A
joint venture of the Baltic States, “RB Rail”, has been established to oversee realization of the project. In total the EU
has granted EUR 734 million for the whole project. EU financing is estimated to cover 85% of the whole project cost,
while the rest will be supplemented by the participant states.
Construction is under way in Lithuania, with the track from Warsaw to Kaunas already completed and an extension
from Kaunas to the Latvian border next in line and expected to be done by 2025. The total length of the line in
Lithuania will amount to 264 km. The state has appointed state owned enterprise “Lietuvos Geležinkeliai“ AB to
oversee realization of the project in Lithuania. Lithuania’s Ministry of Transport has received a EUR 105.9 million
grant directly from the EU in addition to a EUR 25.4 million share from the Baltic States “RB Rail” joint venture.
As construction progresses, the state appointed enterprise “Lietuvos Geležinkeliai” AB is constantly organising public procurement to acquire materials, work and services from private suppliers. The elections of 2016 brought significant political change: the previous board of directors of “Lietuvos Geležinkeliai” AB was withdrawn by one of the first decrees of a newly appointed Minister of Transport and Communications – Rokas Masiulis.
Major EU financing for Lithuania via “Rail Baltica” project
The bnt Baltics-Belarus Business Opportunity Survey is published for general information purposes only and does not constitute advice of any kind. The publisher is not liable for any errors or misrepresentations.
www.bnt.eu 48
Belarus Беларусь
bnt Minsk office Revolutsionnaya str. 9 - 40, BY-220030 Minsk Phone +375 17 203 94 55 Fax +375 17 203 92 73 info.by@bnt.eu Contact Person(s): Partner Alexander A. Ließem Phone +375 17 203 94 55 alexander.liessem@bnt.eu
The bnt Baltics-Belarus Business Opportunity Survey is published for general information purposes only and does not constitute advice of any kind. The publisher is not liable for any errors or misrepresentations.
www.bnt.eu 49
Two roads are to be built in Belarus on the basis of public-private partnership projects.
The first project involves the M10 (the road from the border of the Russian Federation – Gomel –
Kobryn – 543 km). The road has 2-4 traffic lanes and the length is 74.6 km. The M10 is an
international road and provides the shortest connection between EU states, Belarus and the Russian
Federation. The payback on investments will be carried out from budget funds and payments by
transport users.
The second project is a trunk road in Gomel with a bridge across the river Sozh. The length of the
road is 41.35 km, while the length of the bridge is 408.9 m. The project will be realized according to
the BOT (Build-Operate-Transfer) model. Payback on investments will be carried out from payments
by transport users, profit from use of roadside infrastructural objects (e.g. motels, trading facilities) and
from budget funds.
Road resurfacing and construction
Significant dates:
2016-2018 (M10)
Executed by:
Ministry of
Transport and
Communications
Value est.: EUR 312 million (road M10) EUR 170 million (trunk road Gomel)
The bnt Baltics-Belarus Business Opportunity Survey is published for general information purposes only and does not constitute advice of any kind. The publisher is not liable for any errors or misrepresentations.
www.bnt.eu 50
The project is intended to launch manufacturing of ecobio biomass-run (microalgae) mini heat power plants. It is worth implementing because biomass fuel conversion technology is energy efficient, resource saving and environmentally-friendly. Additionally, one of the main reasons for locating production in Belarus is the availability of highly skilled scientific and engineering personnel.
Manufacturing of ecobio microalgae-run mini heat power plants
Sector: Biotechnologies Significant dates: Executed by: “Great Stone” Industrial Park Value est.: EUR 22.8 million
The bnt Baltics-Belarus Business Opportunity Survey is published for general information purposes only and does not constitute advice of any kind. The publisher is not liable for any errors or misrepresentations.
www.bnt.eu 51
Opportunity to gain a foothold in the Belorussian pharmaceutical market. This project involves creation of a joint venture for production of drugs complying with international standards for drug release in the form of tablets or capsules, and sterile packaged powders for preparation of a solution for infusion on the basis of RUE “Belmedpreparaty”. Foreign investors’ share will be 75 % and the share of RUE “Belmedpreparaty” 25 %. Investor preferences include: - developed transport infrastructure (the enterprise is located within 0.5 km from the railway station and 1.5 km from a motorway); - developed trademark; - in-depth network of commercial relations; - demand for production on the Belarusian market; - registered licences and patents.
Joint Venture in Pharmaceuticals Production
No significant dates indicated Executed by: National Agency for Investment and Privatization of the Republic of Belarus (NAIP); RUE Belmedpreparaty Value est.: EUR 15.3 million
The bnt Baltics-Belarus Business Opportunity Survey is published for general information purposes only and does not constitute advice of any kind. The publisher is not liable for any errors or misrepresentations.
www.bnt.eu 52
An industrial park offering exceptional conditions for manufacturers is being established near Minsk. The China-Belarus industrial park is located within 25 km. from Minsk, near the national airport and offering a favourable taxation regime for its residents. Companies incorporated in the Park territory that attract over EUR 4 million in investment with an approved business plan may enjoy a favourable tax and customs regime. The second largest Chinese corporation ZTE joined the China-Belarus industrial park in January 2014. As announced on 25 November 2013 ZTE corporation, Huawei and Lenovo are planning to join the China-Belarus industrial park and launch electronics production lines there.
Favourable taxation regime: China-Belarus industrial park
Planned to operate until 2062 Executed by: Industrial Park Development Company, CJSC; China-Belarus Park Administration. Value est.: -
The bnt Baltics-Belarus Business Opportunity Survey is published for general information purposes only and does not constitute advice of any kind. The publisher is not liable for any errors or misrepresentations.
www.bnt.eu 53
A high-tech industrial park is being established in Minsk, attracting modern technology enterprises. The Belarusian Hi-Tech Park (HTP) provides a favourable business environment for its IT and software development residents. Although HTP is located in Minsk, it is not necessary to incorporate a company within its boundaries. After submitting a business plan relevant for the industry, a company registered in Belarus may obtain HTP resident status. At present nearly 134 companies have already become HTP residents, including such leading companies as EPAM Systems, HTC Belarus, Itransition, Sberbank-Technology. Residents of the park are granted numerous tax and customs preferences.
Favourable taxation regime: Belarusian High-Tech Park
No significant dates indicated Executed by: Hi-Tech Park Administration Value est.: -
The bnt Baltics-Belarus Business Opportunity Survey is published for general information purposes only and does not constitute advice of any kind. The publisher is not liable for any errors or misrepresentations.
www.bnt.eu 54
Joint venture for production of metallurgical products. This project involves the manufacture of high-quality rolling stock casting and large-size casting mostly for the Belarusian and Customs Union market. The joint venture will be incorporated in the “Mogilev” free economic zone, which grants significant benefits for its residents
Joint Venture for Production of Railway and Large-size Casting
No significant dates indicated Executed by: OJSC “Belarusian Autoworks” (“BELAZ”) Value est.:
EUR 182 million
The bnt Baltics-Belarus Business Opportunity Survey is published for general information purposes only and does not constitute advice of any kind. The publisher is not liable for any errors or misrepresentations.
www.bnt.eu 55
… The European market for pellets is expected to grow from 15 million tons (in 2012) to 38 million tons (in 2025). In order to ensure these indicators, new pellet production with capacity of some 8 million tons should be established by 2025. Taking into account the profitable geographic location of JSC “Ivatsevichdrev” and predicted significant growth of pellet consumption in EU countries, it makes sense to restructure the wood particle board shop (now closed down) in favour of pellet production (the plan is to use only raw materials storage, so that construction of a new production building is required).
Pellet production with ancillary cogeneration at “Ivatsevichdrev”
Sector: Forestry and woodworking industry Significant dates: 2015-2025 Executed by: OJSC “Ivatsevichdrev” Value est.: 55.2 Mln Dollars
The bnt Baltics-Belarus Business Opportunity Survey is published for general information purposes only and does not constitute advice of any kind. The publisher is not liable for any errors or misrepresentations.
www.bnt.eu 56
An opportunity to establish biopharmaceutical production facilities. The project aims at construction of a biopharmaceuticals (e.g. antisera, probiotics) production plant. The plant will be located in the Great Stone Industrial Park – a site for a favourable tax regime. Currently no biopharmaceutical products are produced in Belarus. An agreement on mutual market authorization of pharmaceuticals certificates will be adopted within the Common economic area of Russia, Belarus and Kazakhstan by the end of 2014. Belarusian companies will obtain easy access to the Russian and Kazakh pharmaceutical markets. Coupled with Russia’s plans to increase biopharmaceutical consumption by 8.3% by 2020, an investment now may provide an excellent high-profit and low-risk opportunity. Development of pharmaceuticals production is considered to be one of the economic focuses of the Belarussian Government. Estimated payback periods range between 4-7 years.
Investment in Biopharmaceuticals Production
No significant dates indicated Executed by: Industrial park “Great Stone” Value est.: Greenfield investment
The bnt Baltics-Belarus Business Opportunity Survey is published for general information purposes only and does not constitute advice of any kind. The publisher is not liable for any errors or misrepresentations.
www.bnt.eu 57
This project seeks production of high-tech equipment for laser surgery in the
Great Stone Industrial Park (favourable taxation zone).
From 2016 a common market for pharmaceuticals and medical equipment will be introduced within the Eurasian Economic Community so Belarusian companies will obtain easy access to other community members’ markets (in particular, Russia and Kazakhstan).
The share of domestic production of medical equipment and furniture in Belarus is only 18%; the rest is imported.
The estimated payback period is 5 years.
Equipment for laser surgery manufacture
No significant dates indicated Executed by: “Great Stone” Industrial Park Value est.:
EUR 16.5 million
The bnt Baltics-Belarus Business Opportunity Survey is published for general information purposes only and does not constitute advice of any kind. The publisher is not liable for any errors or misrepresentations.
www.bnt.eu 58
This project aims for construction of a nitrogen fertilizer complex and creation of a joint
venture on the basis of Open Joint Stock Company “Grodno Azot” (currently 99.9% is in
state ownership).
Grodno Azot OJSC is the leading fertilizer manufacturer in Eastern Europe with a quality
management system confirmed by the Belarusian state authorities and bureau
VERITAS.
Among the advantages of the investment project are:
- a strong brand;
- easy access to the Eurasian Economic Community market;
- European rail track availability.
Construction of nitrogen fertilizer complex at "Grodno Azot" OJSC
No significant dates indicated Executed by: “Great Stone” Industrial Park Value est.: EUR 1.2 billion
The bnt Baltics-Belarus Business Opportunity Survey is published for general information purposes only and does not constitute advice of any kind. The publisher is not liable for any errors or misrepresentations.
www.bnt.eu 59
Low-rise housing development with infrastructure elements on the bank of the River
Ptich, located 7 km from Minsk, capital city of Belarus
This project foresees construction of a multifunctional complex with the following facilities: 29
townhouses; restaurant area; hotel area; 6 cottages; 8 bathhouses; sports and recreation centre
with swimming pool; shopping and recreation centre; 2 five-storey blocks of flats with business
offices, recreational landscape zone with water bodies and aquatic facilities and other relevant
facilities
Land has been assigned for permanent use.
A pre-investment feasibility study has been drafted and the architectural concept of the complex
developed. A preliminary geological survey has been carried out.
The kick-off investment amount for the mobilization period and for the first construction stage
(2016-2017) is about € 20 million.
Multiple-Dwelling Residential Development Including Social and
Cultural Facilities construction
Significant dates: 2015 – 2019 Executed by:
ITC Engineering
(private
company)
Value est.: EUR 89 million
The bnt Baltics-Belarus Business Opportunity Survey is published for general information purposes only and does not constitute advice of any kind. The publisher is not liable for any errors or misrepresentations.
www.bnt.eu 60
Due to current international political and market conditions, consumers in the Russian Federation are showing a strong demand for Belarusian crushed rock products, including products from the "Glushkevichi" crushed stone plant. This suggests promising prospects for export growth in nearby regions of the Russian Federation - Bryansk, Smolensk, Kaluga and Moscow.
Construction of stone-crushing plant with capacity of 4 mln. m3
Sector: Mining industry None significant dates indicated; Executed by: Gomelobldorstroy Value est.:
USD 108 million
The bnt Baltics-Belarus Business Opportunity Survey is published for general information purposes only and does not constitute advice of any kind. The publisher is not liable for any errors or misrepresentations.
www.bnt.eu 61
South-eastern regions of Mogilevsky district attract investment by offering additional preferential terms and conditions.
In the above-mentioned area, an opportunity has arisen to implement investment projects which can be partly financed by OAO Development Bank of the Republic of Belarus and public funds. Benefits foreseen include, e.g., taxation preferences, lower insurance payments for employers and tax credits. Potential exists for building new factories or investing in existing factories involved in natural resources and agricultural raw materials processing. At present, investors from the USA, Germany and Russia are operating successfully in Mogilevsky district.
Favourable conditions for business in Mogilevsky district
Significant dates:
1 July 2015 -
31 December 2020
Executed by:
OAO Development
Bank of the
Republic of
Belarus;
Mogilevsky
oblispolkom;
Ministry of
architecture and
building, etc.
Value est.:
-
The bnt Baltics-Belarus Business Opportunity Survey is published for general information purposes only and does not constitute advice of any kind. The publisher is not liable for any errors or misrepresentations.
www.bnt.eu 62
This project aims for construction of a plant for production and installation of wind power
stations within of the “Grodnoinvest” free economic zone. This implies substantial tax
advantages for residents.
The plan is to produce all the component and replacement parts for wind power stations as well as to assemble/install them. Organizing the production process requires new production facilities with a total area of 10 000 m. The preliminary plan is to produce 25 wind power stations a year. The Republic of Belarus guarantees the purchase of all the energy generated by them. Moreover, the purchase price will
be increased by multiplying factors applied to the electricity rate.
Construction of plant for producing and installing
wind power stations
No significant dates indicated Executed by: Administration of “Grodnoinvest” free economic zone Value est.: EUR 20 million
The bnt Baltics-Belarus Business Opportunity Survey is published for general information purposes only and does not constitute advice of any kind. The publisher is not liable for any errors or misrepresentations.
www.bnt.eu 63
An opportunity to invest in production of heat exchangers with “Nocolok”® technology The project aims to create an enterprise that produces aluminum heat exchangers with a view to
replacing foreign suppliers in Belarus. Marketing research on heat exchangers in Belarus and Russia,
project feasibility, technical and economic characteristics of equipment and raw materials as well as a
project business plan have already been prepared. Available infrastructure: Belarusian rail, road and
electricity networks, water and gas pipelines, site (110 000 sq.m.), buildings, warehouses and
logistics terminals (220 000 sq.m.).
Prospective domestic market share: 90%. Profit margin: 15.1% in 2019.
Tax, customs and other preferences are granted within Free Economic Zones
Joint venture for production of modern heat exchangers for automotive and agriculture machinery
No significant dates indicated Executed by: Joint-Stock
Company “BATE” –
managing company
of the Holding
“Automotive
components”
Value est.: EUR 10.7 million
The bnt Baltics-Belarus Business Opportunity Survey is published for general information purposes only and does not constitute advice of any kind. The publisher is not liable for any errors or misrepresentations.
www.bnt.eu 64
Projects envisage construction of hydroelectric power stations in the following regions: • Nemnovskaya hydroelectric power station on the Neman river in Grodno region with capacity of 20 MW. • Orsha hydroelectric power station on the river Dnieper in Vitebsk region with capacity of 5.1 MW. • Mogilev hydroelectric power station on the river Dnieper in Mogilev region with capacity of 5.1 MW. • Shklovskaya hydroelectric power station on the river Dnieper in Mogilev region with capacity of 4.9 MW. The Republic of Belarus guarantees the purchase of all energy generated by these hydroelectric power stations and will at its own expense construct the power transmission lines required to secure power supply to the Belarusian electric power system. In addition, the Republic of Belarus guarantees payment for energy at preferential tariffs and conclusion of investment agreements granting benefits for investors.
Construction of hydroelectric power stations
No significant dates indicated Executed by: State Unitary Enterprises “Grodnoenergo”, “Vitebskenergo”, “Mogilevenergo”; Ministry of Energy Value est.: EUR 26.3 – 125.5 million
The bnt Baltics-Belarus Business Opportunity Survey is published for general information purposes only and does not constitute advice of any kind. The publisher is not liable for any errors or misrepresentations.
www.bnt.eu 65
An opportunity to create an innovative 3D printing plant.
The main consumers of 3D printers are the automobile industry, medicine, education, the jewellery industry. The plan is to export 3D printers to the Commonwealth of Independent Counties, BRIC Countries (Brazil, Russia, Austria and China), Eastern Europe. The plant will be established in the “Great Stone” Industrial Park, which grants significant tax, customs and other benefits for its residents.
3D printers production
No significant dates indicated. Executed by: Great Stone Industrial Park Value est.: EUR 19.1 - 90.7 million
The bnt Baltics-Belarus Business Opportunity Survey is published for general information purposes only and does not constitute advice of any kind. The publisher is not liable for any errors or misrepresentations.
www.bnt.eu 66
Investment in production of data storage devices. The plan is to create the first data storage device plant in Belarus. The demand for data storage devices in the domestic market is rapidly growing. At the moment all data storage devices are imported, with an annual growth rate of 28 percent. The devices produced will be sold in the Belarusian market and exported to other Customs Union states. The estimated payback period is 6-8 years. Production profitability is 13-17%. The plant will be established in the “Great Stone” Industrial Park, which grants significant tax, customs and other benefits for its residents.
Data storage device production
No significant
dates indicated.
Executed by: Great Stone
Industrial Park
Value est.: EUR 45.5 - 273.1 million
Recommended