Kiev, Ukraine, March 13, 2013
—IFC, a member of the World Bank Group, today announced new agreements with Ukraine’s Ministry for Regional Development and its Builders Confederation to simplify construction regulations and spur greater economic growth.
IFC’s Investment Climate for Agribusiness project will work with government officials and a group representing over 700 building companies and industry groups to analyze the construction permitting process and find ways to accelerate and simplify the system.
In Ukraine, it takes more than a full year – 375 days, on average – to get all the necessary approvals to build a simple grain storage facility. This often leaves farmers without much-needed storage facilities, resulting in grain losses, and explains why the country ranks 137th out of 185 countries in ease of dealing with construction permits, according to Doing Business 2013, a report prepared by IFC and the World Bank.
“The system regulating construction permits in Ukraine is old and very complex,” said Lev Partskhaladze, president of the confederation. “We hope that with IFC’s help and expert advice we will be able to make the necessary reforms, saving time and financial resources for businesses.”
Jesper Kjaer, Regional Head of IFC Advisory Services in Europe and Central Asia, said, “Our work aims to reduce the cost of doing business and generate investment, boosting the private sector and creating jobs. Simpler procedures for getting construction permits are a real step forward to enhance the investment climate and develop infrastructure, including in the agribusiness sector.”
IFC launched a three-year project in Ukraine last year, partnering with the Swiss Confederation, to help streamline agribusiness regulations in Ukraine, boosting economic growth and job creation. The focus areas for the project include streamlining regulations for post-harvest handling and storage investments, instilling modern food safety principles, registering agricultural inputs and increasing resource and energy efficiency.
About IFC
IFC, a member of the World Bank Group, is the largest global development institution focused exclusively on the private sector. We help developing countries achieve sustainable growth by financing investment, mobilizing capital in international financial markets, and providing advisory services to businesses and governments. In FY12, our investments reached an all-time high of more than $20 billion, leveraging the power of the private sector to create jobs, spark innovation, and tackle the world’s most pressing development challenges. For more information, visit
www.ifc.org
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