Project CBC PL-BY-UA 2007-2013

The project under the Cross Border Cooperation Programme Poland-Belarus-Ukraine 2007-2013
“Enterprise development through making investment areas of the Municipality of Lubaczow accessible  and the recultivation of degraded areas of  Yavoriv and Novyi Rozdil districts”

THE MAIN OBJECTIVE OF THE PROJECT IS: Creating suitable conditions for enterprise development in borderland areas of Poland and Ukraine.

Partners:

Lead Partner: The Municipality of Lubaczow (PL)
Partner 1: The Gmina of Lubaczow
Partner 2: The Regional Council in Yavoriv
Partner 3: City Council in Novyi Rozdil
Partner 4: The Institute of Regional Development (Lviv, UA)


Objectives:

Specific objective 1: Making the investment areas of the Municipality and Gmina of Lubaczow attractive and accessible through building and modernization of technical and communication infrastucture.
Specific objective 2: Making the investment areas of Yavoriv Raion and the Town of Novyi Rozdil accessible through recultivation of post-industrial (sulphur) areas
Specific objective 3: Stimulating enterprise development in borderland areas by producing enterprise development policy and other relevant documents and setting up and building capacity of the enterprise development institutions..

To achieve the specific objective 1 „Making the investment areas of the Municipality and Gmina of Lubaczуw attractive and accessible through building and modernization of technical and communication infrastucture“ the following activities are foreseen:
1. Development of infrastructure in the investment area of the town of Lubaczуw (Lubaczуw subzone) – developing of town road km 0 + 000 – km 0 + 800- road infrastructure and water and sewer installation for areas located by Techniczna street in Lubaczуw.
2. Restoring the economic activity in post-sulfur areas in Basznia (The Gmina of Lubaczów) – rebuilding 2 segments of road infrastructure
a) Rebuilding of gmina’s road Basznia Dolna-  Kolejowa street km 0 + 000 – km 0 + 890
b) Rebuilding of gmina’s road Basznia Górna – Huta Kryształowa km 0 + 000 – km 4 + 490
3. Investment supervision over the investment assignments of the Municipality of Lubaczуw
4. Investment supervision over the investment assignments of the Gmina of Lubaczуw

To achieve the specific objective 2 “Making the investment areas of Yavoriv Rayon and the Town of Novyi Rozdil accessible through recultivation of post-industrial (sulfur) areas”, the following activities are foreseen:
1. Recultivation of the areas in Yavoriv.
a) Procurement procedure for award of contracts regarding implementation of this activity
b) Carry out a recultivation works of the area of 40 ha
c) Technical supervision of the works
d) Topographic and geodetic works (cadastral survey)                                   
e) Public presentation and discussion with local community
2. Recultivation/clearing the degraded areas in the Town of Novyi Rozdil (46,4 ha).
a) Procurement procedure for award of contracts regarding implementation of this activity
b) Carry out a recultivation works of the area of 46,4 ha
c) Technical supervision of the works
d) Topographic and geodetic works (cadastral survey)                                   
e) Public presentation and discussion with local community

To achieve  the specific objective 3 “Stimulating enterprise development in borderland areas by producing enterprise development policy and other relevant documents and setting up and building capacity of the enterprise development institutions” the following blocks of activities are foreseen:
1. Formulating of planning and strategic documents for investment areas
1.1 The surveys of external investors’ expectations and the potential of the area of Municipality and Gmina of Lubaczуw.
1.2 Strategic analysis of the recultivated areas and elaboration of the Concept Notes for industrial parks in Yavoriv Raion and Town of Novyi Rozdil.
1.3 Study of the impact of the planned industrial parks on the regional and industrial policies and accessibility of adjacent areas.
1.4 The study of scenarios and ways of solving the problem of ash heaps in Lviv and Ivano-Frankivsk oblasts focusing on enterprise development opportunities in the planned industrial parks.
1.5 Elaborating business plans of industrial parks in Yavoriv and Novyi Rozdil.
1.6  Preparing spatial planning documentation of industrial parks in Novyi Rozdil and Yavoriv, incl. zoning documentation. 
1.7 Preparing project and cost estimate documentation for constructing the road in Novyi Rozdil.
1.8  Studying the optimal models of public-private partnership for industrial parks (Yavoriv and Novyi Rozdil) infrastructure development

2. Establishment of local development institutions
2.1 Survey relating to establishing public-private partnership (Yavoriv and Novyi Rozdil)
2.2 Appointing the Local Development Agency – joint action The Municipality of Lubaczуw, The Gmina of Lubaczуw
2.3 Setting up local economic development agencies in Novyi Rozdil and Yavoriv 
2.4 Training seminars for staff of local authorities and representatives of local NGOs
2.5 Specialized business training seminars on economic zones, investor relations, public-private partnerships for local authorities, NGOs and business support organizations – Module I. Investor Relations. 
2.6 Specialized business training seminars on economic zones, investor relations, public-private partnerships for local authorities, NGOs and business support organizations – Module II. Skills Development.
2.7 Setting up a cross-border Polish-Ukrainian network of industrial parks areas – joint action with the partners

To ensure the sound project implementation the project will be managed by experienced project managers, legal expert and auditors will assist and supervise them.

Project activities and results:

1. Development of infrastructure in the investment area of the town of Lubaczуw- Lubaczуw subzone
a) construction of town road km 0 + 000 – km 0 + 800- road infrastructure and water and sewer installation for areas located by Techniczna street in  Lubaczуw
b) Investment supervision over the construction  works
Result: building road and road infrastructure within the distance of 800m, utilities, electric network and storm water drainage. Within the implemented action, roads made from coated macadam together with draining layer and strengthening the ground of 68 cm are going to be implemented

2. Restoring the economic activity in post-suphur areas in Basznia (The Gmina of Lubaczуw) – rebuilding 2 segments of road infrastructure
a) Rebuilding of gmina’s road Basznia Dolna-  Kolejowa street km 0 + 000 – km 0 + 890
b) Rebuilding of gmina’s road Basznia Górna – Huta Kryształowa km 0 + 000 – km 4 + 490
c). Investment supervision over the works of the Gmina of Lubaczów
Result: rebuilt road (top layer of 442 m, 4 cm concrete wearing course of coated macadam for KR1 – 2,5 cm binding course of coated macadam for KR 1- 2,5 cm non-sortable aggregate layer 0/31.50), rebuilt road (top layer of 4 km 490,  4 cm concrete wearing course of coated macadam for KR1 – 2,5 cm binding course of coated macadam for KR 1 -  2,15 cm of the macadam surface 20/63; profiling the existing surface for created slopes – silt removal and stubbing slopes on both sides; replacement of tables, signs and bollards).

3. Recultivation of the areas in Yavoriv.

a) Procurement procedure for award of contracts regarding implementation of this activity
b) Carry out a recultivation works of the area of 40 ha
c) Technical supervision of the works
d) Topographic and geodetic works (cadastral survey)                                   
e) Public presentation and discussion with local community
Result: 40 ha will be recultivated, 1 social consultation.

4. Recultivation/clearing the degraded areas in the Town of Novyi Rozdil (46,4 ha).
a) Procurement procedure for award of contracts regarding implementation of this activity
b) Carry out a recultivation works of the area of 46,4 ha
c) Technical supervision of the works
d) Topographic and geodetic works (cadastral survey)                                   
e) Public presentation and discussion with local community
Result: 46,4 ha will be recultivated, 1 social consultation.

5. The surveys of external investors’ expectations and the potential of the area of Municipality and Gmina of Lubaczуw
The study will be a diagnostic analysis of investment potential in the Municipality and the Gmina of Lubaczуw based on the investment trends dominating in Polish economy at present. The study should include: a) the analysis of investment status in Poland (foreign and domestic), with identification of dominating trends and the description of tendencies occurring in economy, b) indicating and describing investment values of the Municipality and the Gmina of Lubaczуw (structural, social, other), c) indicating and describing structural, social and other limitations and identifying possible ways to overcome, d) indicating and describing at least three “best practices” in promoting investments in different places of similar social and economic structure to the Gmina and Municipality of Lubaczуw, including one example from other European country
Result: Study of investors’ expectations (1 report)

6. Strategic analysis of the recultivated areas and elaboration of the Concept Notes for industrial parks in Yavoriv Raion and Town of Novyi Rozdil.
The Concept Notes are obligatory for creation and registration of the industrial parks according to the Ukrainian legislation and should provide information on the legal framework for industrial park creation and perspectives for it‘s development. The study will consists of 3 parts. The part 1 (common part for Novyi Rozdil and Yavoriv) will contain general overview and analysis of the current status of the industrial parks in Ukraine. The part will also outline forecast on the most probable scenarios for the development of the industrial parks in Lviv Oblast, risks with the industrial parks development (political, economic, legal etc.). Part 2. Perspectives of the industrial park in Yavoriv for the period of 10 years. The part should include description and analysis of the infrastructure (gas, electricity, roads, sewage, water supply and waste facilities), investment process and investment support institutions in Yavoriv Raion, priorities of the industrial policy of the oblast, analysis of the existing enterprises and level of business development in the area. Part 3 will provide perspectives on the industrial park in Novy Rozdil in a format similar to Yavoriv (part 2). Elaboration of the Concept Notes will include one stakeholder panel with relevant economic development institutions, authorities and other stakeholders, where preliminary Concept Notes should be discussed.  
Result: Strategic analysis (1 report) and 2 Concept Notes for industrial parks in Yavoriv Raion and town of Novyi Rozdil, 1 social consultation.

7. Study of the impact of the planned industrial parks on the regional and industrial policies and accessibility of adjacent areas.
The study will provide analysis of the impact of the planned industrial parks on the existing and planned regional development, ecological and industrial strategies at local, raion, and oblast level. The study will assess impact of industrial parks, their relevance to and links with regional and national industrial policies. The study will analyze how industrial parks could impact existing and planned ecological strategies and programmes in Lviv oblast. It should outline possible scenarios and a roadmap for the safe disposal of chemical residues (hudrons) located in the close proximity to the planned industrial parks. Possible multiplicator effect for the adjacent post-industrial areas (accessibility, perspective of enterprise development, extension of the industrial parks) will be explored. The study will produce policy recommendations that will be discussed with relevant stakeholders during the stakeholder panel and local community of Novyi Rozdil during the public hearing. Outcomes of the panel should be incorporated into the study report. The study will be used to ensure industrial park sustainability through possible policy interventions, incl. extension of the industrial parks to adjacent areas, and to minimize environmental risks for the industrial parks.
Results: 1 report on the impact of the planned industrial parks on the regional and industrial policies, 1 roadmap for the safe disposal of chemical residues located in close proximity to the industrial park area in Novyi Rozdil, 2 social consultations.

8. The study of scenarios and ways of solving the problem of ash heaps in Lviv and Ivano-Frankivsk oblasts focusing on enterprise development opportunities in the planned industrial parks.
The study will analyze one of the options for possible anchor industries to be located in the industrial parks identified by project partners. Possible anchor enterprises should provide synergy with the existing industrial activities in the region and, ideally, use waste from industrial processes, thus contributing to the sustainable development of the cross-border area. Ash produced by power stations in Dobrotvir (Lviv Oblast) and Burshyn (Ivano-Frankivsk Oblast) was identified as a possible input for processing in the industrial parks in Novyi Rozdil and Yavoriv. Waste product in Ukraine, stored in open-air heaps, ash is being actively used for industrial processing in Poland. The study will assess economic potential of ash heaps for use by enterprises in the industrial parks in Novyi Rozdil and Yavoriv. A round table discussion with relevant stakeholders should be organized, outputs from the discussion – incorporated to the study report. The study should clarify possible anchor industries related to ash use. The study will be non-commercial and used in business plan development for the industrial parks.    
Result: 1 report, 1 social consultation

9. Elaborating business plans of industrial parks in Yavoriv and Novyi Rozdil
Elaborating business plans will facilitate proper selection of Managing Institutions of planned industrial parks as per Ukrainian Law. The business plans will provide the operational model of the park, balancing the long term interests of the stakeholders and ensuring maximum positive impact on regional economic development. The business plans will be elaborated following the UNIDO recommendations for business plans‘ content and should provide a holistic picture of the planned industrial parks, i.e. requirements for engineering communications, roads and other logistic infrastructure, analysis of legal basis for investors’ attraction and for placement of industrial enterprises in the parks, calculations of necessary further capital investments to parks. Business plans will be produced in the interests of local communities. The plans will not constitute business plans for commercial entities. Business plans will be subject to consultation with local communities (public hearings in Novyi Rozdil and Yavoriv) and approval by the local authorities.
Result: 2 business plans containing requirements for engineering communications, roads and other logistic support of the plots; The business plans approved by local authorities; 2 social consultations.

10. Preparing spatial planning documentation of industrial parks in Novyi Rozdil and Yavoriv, incl. zoning documentation.
The documentation should contain description of the area layout plan and specific characteristics of the individual land plots within the parks and precise specifications of the infrastructure within the plots and in the park in general. The plan will also specify and outline technical characteristics of the legally required transport and social infrastructure, incl. transport loads on roads, emergency service access routes, social facilities etc.
Result: 2 plans

11. Preparing project and cost estimate documentation for constructing the road to the panned industrial park in Novyi Rozdil.
This road will provide access to the industrial park territory and will connect it to the existing road network in the region. Project and cost estimate documentation will be developed by a licensed Ukrainian company and will take into account the relevant spatial planning requirements for building and development of industrial park in Novyi Rozdil and it‘s business plan.
Result: 1 project and cost estimate documentation

12. Studying the optimal models of public-private partnership for industrial parks (Yavoriv and Novyi Rozdil) infrastructure development.
This study will provide mechanisms, models, and operational solutions for the infrastructural components of the industrial parks in Yavoriv and Novyi Rozdil. In particular, the study will analyze legal, organizational and financial mechanisms for public-private partnership:
1) Analysis of juridical aspects of establishing PPP according to Ukrainian and European law/legislation
2) Development of PPP scenarios for Novyi Rozdil according to the business plan of the industrial park
3) Development of PPP scenarios for Yavoriv according to the business plan of the industrial park
4) Preparation of extended SWOT analysis of PPP scenarios for each territory and development of recommendations for the optimal option
5) In case of the positive outcome of the SWOT analysis and, if requested by local authories, provision of support in drafting the necessary legal documents.
Round table discussion of the preliminary study results should be organized, its outcomes incorporated into the study report.
Result: 1 report, 1 social consultation

13. Appointing the Local Development Agency – joint activity The Municipality of Lubaczуw, The Gmina of Lubaczуw.
Polish project partners will set up a non-profit local development agency with focus on Lubaczow area (municipality and gmina). The LDA will focus on increasing economic activity in accessible investment areas of the Municipality and the Gmina of Lubaczуw, closer economic links with other regions and countries, in particular Ukraine, promoting  the economic potential of the area, incl. sulphur and peat deposits available in the Lubaczow area.
Result:  LDA registered as a legal non-profit entity in KRS.

14. Setting up local economic development agencies in Novyi Rozdil and Yavoriv.
Novyi Rozdil and Yavoriv will set up LEDA as non-profit legal entities. The agencies will focus on increasing economic activity in the respective areas, primarily by investment promotion, SMEs development and area promotion activities. During  the project they will also support the respective local authorities in preparation of relevant studies, etc. 2 social consultations (stakeholder panel, public presentation) are planned in both Novyi Rozdil and Yavoriv.
Result: 2 agencies set up, 4 social consultations.

15. Training seminars for staff of local authorities and representatives of local NGOs.
Local administration staff responsible for economic development, local council deputies from the economy-related commission, representatives of the LEDAs set up within the project, representatives of local NGOs active in the community development will participate in the training sessions. The sessions will improve general management competences, provide knowledge on economic development instruments and develop relevant soft skills. The detailed scope of training sessions will be developed based on training needs analysis (TNA) that will cover both Polish and Ukrainian project stakeholders. A special Training Materials Compendium will be developed prior to the training seminars based on TNA with necessary training materials. 12 two-days training sessions for 30 participants are foreseen. Participants will receive consulting support after trainings. Training sessions will build capacity of partner local authorities and local project stakeholders in the area of local economic development and will facilitate networking among them.
Result: 30 representatives of local project stakeholders have been trained, min. 150 training hours delivered, 1 training materials compendium produced. 

16. Specialized business training seminars on economic zones, investor relations, public-private partnerships for local authorities, NGOs and business support organizations – Module I. Investor Relations.

The training seminars will be organized for Polish stakeholders of the project (local authorities, NGOs, business support organizations, project staff), with participants from Ukraine also attenting. The module will provide information on core concept for economic development, incl. industrial parks, public-private partnerships, regional economic developmetn instruments, etc. Module I will specifically cover topics related to investor relations (investment promotion, attracting foreign investors, servicing investors, negotiations with investors, etc.). 
Result: 20 project staff members and project stakeholders trained

17. Specialized business training seminars on economic zones, investor relations, public-private partnerships for local authorities, NGOs and business support organizations – Module II. Skills Development.
The training seminars will be organized for Polish stakeholders of the project (local authorities, NGOs, business support organizations, project staff), with participants from Ukraine also attenting. The module will provide information on core concept for economic development, incl. industrial parks, public-private partnerships, regional economic developmetn instruments, etc. Module II will specifically cover topics related to soft skills development required for investment promotion and investor relations (negotiations skills, communication skills, understanding legal frameworks, customer segmentation).
Result: 20 project staff members and project stakeholders trained

18. Setting up a cross-border Polish-Ukrainian network of industrial parks areas – joint action with the partners.
Partners plan to establish a network of industrial parks in the cross-border area to co-ordinate further industrial parks development activities and cross-border enterprise collaboration activities. Study of the clusters in other European countries in industries defined as priorities for Novyi Rozdil and Yavoriv industrial parks will be conducted. 1 round table with experts on industrial parks from Poland and Ukraine and project partners and stakeholders will be organized.
Result: 1 network formed, 1 report, 1 social consultation. 

19.  Creating and maintaining the websites.
Within the project, a project trilingual (PL, UA, EN) website will be set up. This website will not only contain information about the project activities (in particular project news and events) but also a database of existing industrial investment projects going on in the region as well as a database of the potential investment offers of the local companies and authorities. The portal will aim to become a gateway for the industrial investors to the region, thus creating a pipeline of expression of interest in the planned industrial parks on the both Ukrainian and Polish sides.
To ensure the organizational durability of the project’s results, the project foresees setting up several institutions, namely Local Economic Development Agencies (Town and Gmina Lubaczow, Novyi Rozdil, Yavoriv). These institutions are business support organizations, but their tasks and goals differ due to differences in the conditions in respective areas. That is why the project foresees development of 3 web-sites (one for each institution), which will be focused on their defined target groups and specialization according to the surveys conducted and social consultations held earlier in the proejct.
Result: 3 separate web sites and 1 common project site

20. Organizing 2 conferences (launching and final)  for 100 participants each conference.
Participants in the conferences will represent local authorities (Ukrainian and Polish), experts in industrial parks and economic development, NGOs (Ukrainian and Polish), business support organizations, business, governmental bodies relevant to the topics of the project, journalists, local communities, including those working at the national or European level. 
Result: 2 conferences conducted, 200 persons participated

21. Joint promotional activities.
Production of investment promotion packages for Novyi Rozdil and Yavoriv with printed brochures and online rich media versions of the brochures. Presentational materials for both Novyi Rozdil and Yavoriv industrial parks will be printed.
Result: 1 brandbook developed, 1000 full-colour presentational materials for industrial parks developed, 3 websites promoted, 3 billboards creation and during 10 months placed on the roads and in the airport, 12 publications in the local newspapers and 3 adverts on the local TV made,1  promotion film produced, 1000 printed investment promotion brochures, 2 online rich media investment ptomotion brochures, 2 press-tours for 40 journalists (each tour) organized

22. Project management (project and financial coordination, visits to partners, project audit).
Regular meetings of the project partners teams working on the project. Working meetings with experts involved in studies preparation with project partners and project stakeholders to discuss the studies and their further use in the project activities. Reporting to the Joint Technical Secretariat. The Lead Partner will be assisted by qualified advisors to ensure proper understanding of the project circumstances on the Ukrainian side of the project. 
Result: Smooth project implementation

The project will have a positive impact on target groups. Local authorities will will benefit from improved accessibility and availability of investment infrastructure, policy documents, and local economic development agencies that will provide support for investment promotion and SME development activities of local authorities. With a number of training activities planned in the project, local authorities will improve capacity of their staff and local stakeholders. The investors will benefit from investment infrastructure developments, improved investment support from local authorities and local economic development agencies as well as from strategic documents produced in the project by understanding economic development focus of Lubaczуw, Novyi Rozdil and Yavoriv.

Partners responsibilities:

Lead Partner – The Municipality of Lubaczуw
Activity 1 Development of infrastructure in the investment area of the town of Lubaczуw
Activity 5 The surveys of external investors’ expectations and the potential of the area of Municipality and Gmina of Lubaczуw (PL)
Activity 13 Appointing the Local Development Agency – joint activity The Municipality of Lubaczуw, The Gmina of Lubaczуw 
Activity 16 Specialized business training seminars. Module I. Investor Relations  (PL)
Activity 18 Setting up a cross-border Polish-Ukrainian network of industrial parks areas – joint action with the partners
Activity 19 Creating and running websites
Activity 21 Joint promotional activities (PL, UA)
Activity 22 Project management (PL,UA)

The Gmina of Lubaczуw
Activity 2 Restoring the economic activity in post-sulfur areas in Basznia (The Gmina of Lubaczуw) – rebuilding 2 segments of road infrastructure
Activity 5 The surveys of external investors’ expectations and the potential of the area of Municipality and Gmina of Lubaczуw
Activity 13 Appointing the Local Development Agency – joint activity The Municipality of Lubaczуw, The Gmina of Lubaczуw 
Activity 17 Specialized business training . Module II. Skills Development
Activity 18 Setting up a cross-border Polish-Ukrainian network of industrial parks areas – joint action with the partners
Activity 19 Creating and running websites
Activity 21 Joint promotional activities
Activity 22 Project management

Regional (Raion) Council of Yavoriv

Activity 3 Recultivation of the areas in Yavoriv
Activity 9 Elaborating business plans of industrial parks in Yavoriv and Novyi Rozdil
Activity 10 Preparing spatial planning documentation of industrial parks in Novyi Rozdil and Yavoriv, incl. zoning documentation
Activity 12 Studying the optimal models of public-private partnership for industrial parks (Yavoriv and Novyi Rozdil) infrastructure development
Activity 14 Setting up local economic development agencies in Novyi Rozdil and Yavoriv
Activity 18 Setting up a cross-border Polish-Ukrainian network of industrial parks areas – joint action with the partners
Activity 19 Creating and running websites
Activity 21 Joint promotional activities
Activity 22 Project management

City Council in Novyi Rozdil
Activity 4 Recultivation/clearing the degraded areas in the Town of Novyi Rozdil
Activity 9 Elaborating business plans of industrial parks in Yavoriv and Novyi Rozdil
Activity 10 Preparing spatial planning documentation of industrial parks in Novyi Rozdil and Yavoriv, incl. zoning documentation
Activity 11 Preparing project and cost estimate documentation for constructing the road to the panned industrial park in Novyi Rozdil
Activity 12 Studying the optimal models of public-private partnership for industrial parks (Yavoriv and Novyi Rozdil) infrastructure development
Activity 14 Setting up local economic development agencies in Novyi Rozdil and Yavoriv
Activity 18 Setting up a cross-border Polish-Ukrainian network of industrial parks areas – joint action with the partners
Activity 19 Creating and running websites
Activity 21 Joint promotional activities
Activity 22 Project management

The Institute of Regional Development (Lviv, UA)
Activity 6 Strategic analysis of the recultivated areas and elaboration of the Concept Notes for industrial parks in Yavoriv Raion and Town of Novyi Rozdil
Activity 7 Study of the impact of the planned industrial parks on the regional and industrial policies and accessibility of adjacent areas
Activity 8 The study of scenarios and ways of solving the problem of ash heaps in Lviv and Ivano-Frankivsk oblasts focusing on enterprise development opportunities in the planned industrial parks  
Activity 9 Elaborating business plans of industrial parks in Yavoriv and Novyi Rozdil
Activity 10 Preparing spatial planning documentation of industrial parks in Novyi Rozdil and Yavoriv, incl. zoning documentation
Activity 12 Studying the optimal models of public-private partnership for industrial parks (Yavoriv and Novyi Rozdil) infrastructure development
Activity 14 Setting up local economic development agencies in Novyi Rozdil and Yavoriv
Activity 15 Training seminars for staff of local authorities and representatives of local NGOs
Activity 18 Setting up a cross-border Polish-Ukrainian network of industrial parks areas – joint action with the partners
Activity 19 Creating and running websites
Activity 20 Organization 2 conferences (launching and final)
Activity 21 Joint promotional activities
Activity 22 Project management

The project action plan: