Oschadbank Joined the Program to Stimulate Industrial Parks.

The Ministry of Economy of Ukraine announced the signing of the third agreement within the framework of the "State Incentive for the Creation of Industrial Parks" program. Oschadbank became the third state bank to join this initiative.

According to the Ministry of Economy, managing companies of industrial parks can now apply to Oschadbank for state support in two directions: infrastructure development and cost compensation for connecting to engineering and transport networks.

"The first direction involves providing non-repayable financial aid for the development of industrial parks' infrastructure. This includes, in particular, road construction, the laying of communication lines, and the provision of gas, water, and electricity supply. The second direction involves compensating for the costs of connecting to engineering and transport networks, particularly electrical ones. This will reduce the financial burden on project initiators and accelerate the commissioning of parks. During the martial law period, the compensation only concerns the connection to electrical networks," the agency reported.

Industrial parks help reduce the Time from idea to production start, optimize logistics, and lower initial barriers for businesses. The government's goal is to increase the share of the processing industry in Ukraine's GDP to 20-25%.

To stimulate the creation of industrial parks, 1 billion hryvnias have been allocated from the state budget. The funds are provided to park managing companies for the development of engineering and transport infrastructure and compensation for the cost of connecting to electrical networks.

"Managing companies will be able to execute larger-scale projects since the maximum stimulation amount has increased from 60 to 150 million hryvnias, with a 50-50 co-financing ratio. Managing companies of industrial parks from de-occupied territories will be able to implement projects with 80-20 co-financing. Some safeguards have also been introduced. Each applicant must construct at least 5000 square meters of industrial buildings and attract at least 2 participants within 3 years. All incentives will be provided through escrow accounts that will be opened in state banks," reported the Ministry of Economy.