1. Lviv Economic
Development
12.06.2014

2. Strategic Location in Eastern
Europe

3. Ukraine’s Leading Regional Center

4. Pan-European Transport Corridors
(TEN-T III/ V)
Between West and East (60 km to border with Poland), located on:
Pan-European Transport Corridor III: Germany-Poland-Ukraine (LVIV)-Russia (below),
Pan-European Transport Corridor V: Italy-Austria-Hungary-Ukraine (LVIV)-Russia
M06 Kyiv-Chop highway
Lines/ dots in yellow
stand for Roads/ border
crossings as projects in
pipeline for the near
future

5. 7 Border-Crossing Points
 Well-developed border-crossing infrastructure

6. Major Infrastructure Investments
 Road:
– Toll-road Project Lviv – Krakivets 80 km to ling Kyiv-Chop
M06 Highway with A4 Dresden-Kyiv
 Rail:
– Eurorail Project: European gauge 1435 mm rail link to
Polish/ Ukrainian Border
 Air:
– Common Aviation Agreement in June 2014
– Increase number of low-cost flights

7. A Story of Growth: FDI
2nd in Ukraine by FDI volume
Most investment attractive region in
Ukraine
Cyprus, Poland, Austria, Germany, Denmark,
Sweden, US
Food, Financial services, Retail, Textile,
Machine Building, electronics, IT etc
Nestle, Carlsberg, Hartwall Group, CVG,
Austrian Airlines, Metro, Energie AG (AVE)
245.7
307.2
597.4
561.2
762.5
873.1
837.1
1113.4
1114.3
2005 2006 2007 2008 2009 2010 2011 2012 2013

8. Key conventional
sectors of Lviv
economy
Key clusters include IT/ BPO and
Tourism
Supporting clusters include Food,
Paper/ Print, Textile and
Radioelectronics
Average salaries
Low-skilled 120-200 euro
Engineers – 500 euro
Management – 1000+
Top management – 3000+
IT/ advanced SW developers
3000+
32%
22%
30%
6%
5%
5%
Food Industry
Machine Building
Chemical Industry
Metallurgy Industry
Light Industry
Energy, Gas, Water

9. Lviv rated…
CCC+ Positive
Upgraded in February 2013
uaBB (National scale)
+++
 Little direct debt
 Largest commercial center in
western Ukraine
---
 Dependence on state
centralized budget distribution
system
 Insufficient liquidity
 Top 10 European Cities
of the Future 2012/13
– FDI Strategy
– Economic Efficiency

10. Competitive Advantage - HR
 38 universities, institutes
and academies
 Over 130 000 students
 28 000 highly educated
graduates every year
 Most students speak
foreign languages
(mainly English and
German)

11. Over 130,000 students an Asset
Number of Students of Higher Education in Lviv by
140 000
120 000
100 000
80 000
60 000
40 000
20 000
0
Specialties
1%
1%
1%
127,669
2%
3%
3%
4%
4%
4%
7%
8%
8%
22%
31%
Other
State governance
Architecture
Military sciences and security
Social sciences
Transportation
Education
Agriculture, forestry and fishing
Natural sciences
Mathematics and information studies
Culture and art
Law
Humanities
Medicine
Engineering
Economics, commercial activity
english
bulgarian
czech
polish
slovak
russian
germany
0 10 20 30 40 50 60 70 80 90
ян
в
Annual Number graduating student for BPO
sphere by Specialities(just example)

12. University Graduates
580 graduates with master degrees and diploma specialists
at the National University “Lviv Polytechnic” and over 500 graduates
from technical colleges
Field of study Major Qualification
Cybernetics and Systems
Science
Social Informatics
Computer Science and
Engineering
Information Management Systems Software Engineer
Information Technology Design Master of Automation and Computer Integrated Technologies
System design Master of Software Engineering
Artificial Intelligence Systems Master of Software Systems
Computer Systems and Networks
Programming Systems
Specialized Computer Systems
Automated Systems Software
Software Engineering
Automation and Control
Computer-based Control and Automation Systems Engineer with automated production control
Automated Process Control Electrical Engineer
Electronics
Micro- and Nanoelectronic Technologies and Equipment Electromechanical engineer
Electronic Devices and Equipment Engineer
Microelectronics Information Systems Master of Electrical Engineering
Physical and Biomedical Electronics Mechanical Engineers

13. Wage levels
Position
Average Salary in
Lviv/US$ per month (before
tax)
Workers 170-270
Plumbers, mechanics 300-370, up to 600
Unit accountants 500-700
Mid-level managers 550-740
Top-level managers 1050-1450

14. Our Offer
 Attractive investment climate
 Economic efficiency
 Untapped market potential
 Unique logistical solutions
 Greenfield and Brownfield sites
 Industrial park
 Strategic partnerships
 Trade with Lviv based manufacturers
 Full support and friendly attitude

15. Current Investments
Shopping Centers
Forum Lviv - 60,000 sqm
Developer – Multi Development,
part of Blackstone Group
End of 2015
Leopolis - 80,000 sqm
Developer – Yeditepe
End of 2015
Office Centers, multifunctional
sports arena, industrial (Fujikura etc)

16. Sites for Hotel Development
Dobrobut Site – 1,5
hectares
Future
Hotel Land
Plot
Market
Square
Magnus
Shopping
Center
Opera
House
Svobody
Avenue –
Lviv’s
main
street
Possible development for 5-star
1000+ rooms hotel + conference/
convention facilities
Mitskevych Square Site – 0,5 hectare

17. Winter Olympic Games 2022
 7 sport types/ 98
Events
 13 competition
venues
 Olympic village with
4,500 beds
 Media village with
10,000 beds
 International
Broadcasting Center
40,000m²
4,700 of sportsmen and
official bodies
Out of more than 80
countries
10,000 media
representatives
20,000 volunteers
19,000 persons of
security staff
1.6 mln. of tickets
Over 3 bln. of TV
audience
Venues Participants
Visitors

18. Lviv Exhibition Centre
(International Broadcasting Centre during
Winter Olympic Games 2022 )
Number of seats 40,000 m²
Sea level elevation 335 m²
Construction cost EUR 185 mln.
Construction duration 2014-2017

19. • City Center
•New Ryashivska St. due by
2012
5 km
• Lviv International Airport
• Airport Cargo Terminal 0 km
5 km •Major Rail Cargo Terminal
•Catchment area (50k
inhabitants) 1 km
•15 municipal bus and 1
trolley bus routes
Public
Transport
Business Park Project (I)
1
Next to the new Airport passenger terminal and its parking facilities.

20. •Options 10, 20, 30 ha
• GLA possible from 10k m2 Land
• Lviv City Council and other
authorities
• Total anchor tenancy at
least 5k m2
• IT/BPO companies to
move from existing
locations
Tenants
• In 3 to 5 years with over
50% ROI Exit
Business Park Project

21. Industrial Park Project (I)
25 hectares in industrial zone, expansion
• City Center
• A4 highway along the
site
8 KM
• Lviv International
Airport
• Airport Cargo Terminal
11 km
•Major Rail Cargo
4.5 km Terminal
• Catchment area (50k
inhabitants) 2 km
• 10 intercity and
municipal bus routes
Public
Transport
possible

22. Site Location and Layout

23. Networks and Connection Points
water
Sewage
Electricity Natural Gas

24. Industrial Park Project (II)
Water
• D = 500
• €0.45/m3
Electricity
• €0.076/
kWh
Gas
• D=89
• €0.374/m3

25. …everyone else works with us
 EBRD
 World Bank
 GTZ
 IFC
 KfW
 NEFCO
 USAID
 European
Commission
 UNESCO
 CRDF
 Monitor Group

26. Infrastructure
 Purchase of used rolling stock
 Construction and rehabilitation
 Supply of equipment, new
technologies
 Cogeneration
 Repair and renovation
 Construction of bicycle lanes
 Heat Insulation
 Waste treatment technologies
and equipment
• EBRD-funded Projects:
• Lviv Public Transport
Modernization – 38 mln euro
• Sykhiv Tramline Extention –
15 mln euro
• District Heating Modernization
– 30 mln euro
• Sludge Treatment – 22 mln
euro
• German government (KfW, GIZ):
• Historical Heritage
Rehabilitation
• Bicycle Infrastructure
• Energy Efficiency
• The World Bank and IFC:
• Water Supply
• Waste Management
• Energy Efficiency
 European Commission

27. Parking projects
Potential off-street parking sites
1. Mitsckevicha sq.
2. Osmomysla sq. (Dobrobut market)
3. Danyla Halyts’koho sq. (Puppet theatre)
4. Vynnychenka str. (Regional administration)
5. Universytets’ka str. (Franko university)

28. Waste management system
Shut down old landfill at least 30 mln euro
New waste treatment facility at least 40 mln euro
New landfill
Project Plan:
- Project location (landplot) secured – 2013
- IFC to structure transaction – 2014
- Startup of operations – 2015

29. Brownfields
№ Object Enterprise activity Total area
1. OJSC Financial-Leasing
Company «Electron-
Leasing»
leasing services 6 100 sq.
m
2. Concern “ELECTRON” tool-making facilities
and plastic production
6 000 -
sq. m
3. Ukrainian-Swiss Joint
Stock Company “VESNA”
clothes production 300 sq. m
4. OJSC “KONVEYER” Producing of lifting
transport equipment)
14 000
sq.m
5. OJSC “SVEMON-ZAHID” architectural and
engineering design
806 sq.m
6. Ltd “COMPANY DNISTER ” metal waste, ferrous
and nonferrous
metals treatment
1 700 sq.
m -
7. JSC “MAYAK” textile production,
production of
garments, fur
4 000 sq.
m
8. JSC “Lviv plant of milling
machines”
Production of metal-and
wood treatment
machines
20 500
sq. m

30. Lviv Meetings Industry (MICE) – Convention
Bureau
 Eastern Europe countries enjoy biggest growth rate at 11.3%
CAGR
Table 3.6: Number of Meetings per Region (ICCA Report year 2010 and year 1999-2008)
No Events
2000
No Events
2010
10 years
Growth % CAGR %
Asia & Middle East 734 1731 136% 10.0%
North America 754 995 32% 3.1%
Latin America 379 913 141% 10.3%
Australia 226 271 20% 2.0%
Africa 129 283 119% 9.1%
West Europe 2602 4196 61% 5.5%
Eastern Europe 277 725 162% 11.3%
N
Mean
Score
Std.
Deviatio
n
Prague 59 1,88 1,052
Lviv 59 2,76 1,406
Budapest 59 2,88 1,219
Warsaw 59 3,19 1,266
Belgrade 59 4,29 ,966
•The study proved Lviv’s potential to become an attractive MICE destination
•QuantumLeap, Austrian-based company identified to advise on MICE in Lviv
•Convention Bureau establishment among top priorities

31. Your Contact Person
Serhiy Kiral
Chief Investment Officer (CIO)
+380 50 3130221
serhiy.kiral@city-adm.lviv.ua
www.investinlviv.com