Preparing investment project for state support under the requirements of the ministry of economic development and trade
- Financial Consulting
- Investment banking
- Investor relations (IR)
In order to receive support from the state, preparation of an investment project and investment proposal has to meet the requirements of the Ministry of Economic Development and Trade of Ukraine. Due to the complexity of this work and its importance for achieving results – attracting funding, it makes sense to refer to specialists who have deep knowledge in the specifics of such activities.
Experts of Pro Capital Investment have profound and successful experience in this field. We offer services for the development of investment proposals and investment projects based on the standards and requirements of the Ministry of Economic Development and Trade. Documents developed by us comply with all aspects of the accepted forms and requirements, reflecting the benefits of your project, which will become the basis for its successful implementation and the key to attracting public support.
The Ministry of Economic Development and Trade within the Law of Ukraine “On investment activity” and the State Program for revitalization of economic development for 2013-2014 (hereinafter – the Program, approved by the Decree of the Cabinet of Ministers on 27.02.2013, #187), approved a list for state support, including:
- financing (co-financing) of state and local budgets,
- provision of government (local) guarantees to secure obligations on loans and credits,
- compensation (total or partial) of interest on loans.
The Ministry also developed a procedure for preparation and submission of projects which presumes a specific form for its implementation. At the same time, the preliminary stage of investment project development is the creation of a project (investment) proposal which is also executed according to a strict form. These forms for proposals and projects are approved by the Ministry of Economic Development (respectively, # 724 dated 19.06.2012 and # 1279 of 13.11.2012, the latter contains the guidelines).
Structure of the investment proposal and the investment project, as required by the Ministry of Economic Development and Trade (the structure is in pdf format – uploaded via link)
Searching for sources of financing for investment project implementation, managers of private companies usually do not consider options related to support from the state. The main reason for this is lack of information about this opportunity to attract the required funds. Thus, as of 01.01.2013 a law which established the legal framework to stimulate investments to create new jobs in the priority sectors of the economy has been in force in Ukraine. Moreover, the State program to intensify economic development during 2013-2014 has been implemented and has been operating in Ukraine for almost a year (hereinafter – the Program, approved by the Decree of the Cabinet of Ministers on 27.02.2013, # 187) which outlines criteria for state support. The list of tasks of public policy for 2013-2014 indicates stimulation of investment projects in priority sectors of the economy, including through allocation of funds for implementation of capital expenditure.
Thus, the priority of the sector of your project becomes a major criterion for its compliance with the Program requirements. Priority sectors of the economy are approved by the Cabinet of Ministers. According to the Act dated 17.08.2013, # 843-p, the specified sectors of the Ukrainian economy include agriculture, housing and machine building complexes, manufacturing industry, transport, resort and recreational infrastructure, tourism. Each sector contains certain directions. For example, agriculture includes production of biofuels; the housing sector and transport infrastructure – technical re-equipment of the industry (in particular, the housing sector – heat and water supply). At the same time, important aspect for all industries is focus on import substitution. In addition, the above law includes criteria relating to the total estimated cost of the project, the number of new jobs for production workers and average wages of these workers. If your company's investment project meets the above criteria (falls under these legal acts), you can count for public support. However, it is important to consider that an essential step in its preparation is creation of an investment project and an investment proposal.