KYIV 2025 DEVELOPMENT STRATEGY

KYIV 2025 DEVELOPMENT STRATEGY

CENTURIES-OLD TRADITIONS, MODERN QUALITY OF LIFEK

YIV

2025

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INTRODUCTION

Dear fellow citizens! Dear Kyiv residents!

I am happy to inform you that the development and discussion of the Kyiv City Development Strategy Until 2025 have been completed.

Kyiv is the capital city of a modern European state with a thousand of years’ history and rich cultural traditions. As the head of the Kyiv City State Administra-tion, I see my duty as helping to preserve the unique identity of our ancient city while securing high living standards for its residents.

I am confident that the achievement of the set objectives is only possible through wise planning and the accurate implementation of the respective plans. This Strategy is the a document that sets out the main objectives for the develop-ment of Kyiv until 2025.

KEY OBJECTIVES:• A considerable improvement in the living standards of Kyiv residents

• Active growth of the city’s economy

• Preservation of Kyiv’s unique historical and architectural identity

STRATEGY DEVELOPMENT CRITERIA:• Mathematical precision. We have tried to fill our development plans with as

many exact figures as possible to make them specific and measurable.

• Transparency. The Draft Strategy is available for open access. The process of implementation of the Strategy’s provisions will be constantly monitored. The respective reports will be made available to Kyiv residents for inspection and correction.

• Inheritance. While developing this Strategy, we took into account the mistakes of the past and identified the ways to remedy them. The Kyiv development plan will serve as a guideline for all representatives of the city’s authorities, both present and future.

Many people worked on the development of this Draft Strategy: Kyiv residents and guests, private and public sector workers, retired persons and businessmen.

During public hearings, we received over 4,000 proposals from Kyiv residents living in all of the city’s districts, specialists in the widest variety of fields. All the ideas were analyzed, systematized and incorporated in the final version of the document. The final version of the Draft Strategy is the result of joint efforts of all Kyiv residents.

The creation of the Kyiv Development Strategy is an important step towards the resolution of the city’s problems. This is the way towards the achievement of modern standards of living, towards a decent future. Most importantly, we must accomplish the tasks before us. The success of the implementation depends on each and every one of us.

We continue our dialogue with Kyiv residents. As before, everyone may submit their comments regarding the Strategy and their wishes as to the ways and meth-ods of its implementation via the special section on the official website of the Kyiv City State Administration at: http://kmv.gov.ua/strategy.asp.

I thank you all.

Oleksandr POPOV,

Head of the Kyiv City State Administration

STATEMENTS MADE BY YOUNG KYIV RESIDENTS

MY KYIV IS THE CITY OF MY FUTURE

“I love my city, and its name is Kyiv.We have greener leaves and bolder dreams.[...] I love my city and I have always loved it,Because it gave me inspiration![...] But sometimes it seems to meThat the city is tired and has no more strength. [...] And if I could change something now,I would do everything to make its soul blossom again.[...] But I still have the belief inside me,I believe that the dreams will come true.[...] I believe that my city will one dayShine bright as the best of necklaces,That we will always be happy in our city,And that we will never lose all our values...” (This is an interlinear word-by-word translation of a poem

by Oleksandra A. Frolova, a student of class 10-Б(‘B’) in Gym-nasium No. 287)

“If someone asks me what my most favorite city is, I will say without hesitation that it is Kyiv. And not only because I was born, grew up and met my first friends here, but also because if one visits Kyiv at least one time, one will want to come back here again and again.”

(Dariia I. Novokhatska, class 7-Б(‘B’), School No. 263)

“Kyiv has enormous potential, but it does not fully exploit it. At present, our city is not only the center of social, political, public and economic life of Ukraine, but also a large European city with a unique history and amazing architectural sights, an important spiritual center of the entire continent.

It is precisely Kyiv’s geopolitical location that secures its pros-pects of becoming the meeting site of two worlds – the West and the East. Our task is to make this statement not only an ambitious slogan, but also the foundation of our city’s development strategy for decades to come.”

(Mariia D. Hryshchenko, class 11, School “Intellect”)

“Our city is constantly changing: like a huge octopus, its underground railway system is spreading its tentacles – the new lines; its web of roads and highways impresses with its size; newly built bridges rise over the Dnipro River; and mirror-glass skyscrap-ers sprout up like mushrooms next to older well-known buildings. Some districts are even hard to recognize: their squares have been rebuilt, new road junctions have been created, new monuments have been erected. All this reminds me of a person who strives to look stylish and fashionable. Kyiv is also trying to keep up with the latest architectural fashions and maintain its status as a modern European capital. Some of the new ‘accessories’ do, of course, suit it well, while some others look simply comical. I think that the old architecture and the modern architecture should be blended in a very careful manner to preserve the unique atmosphere of our city.”

(Anna Ivanovska, class 7-Г(‘G’), School No. 159)

“Kyiv has always attracted artists. Not one painter has depicted its beauty, not one poet has praised its amazing ancient buildings. It seems to be an eternal city!”

(Mykola O. Okhotnik, class 10-Б(‘B’), School No. 287)

“Moving forward is always the right thing. Reaching new heights, developing the city, focusing on European trends, imple-menting wise reforms are necessary for the city’s existence.”

(Veronika V. Volkova, class 11-A, School No. 161)

“As to the future, I think it is necessary to arrange the transport system, which currently creates the most annoying problems for nearly everyone in the morning and evening hours. Personally, I also wish to see people from all over the world striving to come hear to study, work, or stay forever, just like our fellow countrymen dream of going to Europe, the USA, etc. After all, we have all the necessary things, and it is simply much easier to go to another place where someone has already arranged everything than to change one’s own city for the better. But someone has to do this!”

(Nataliia S. Sinkevych, class 11-A, School No. 238)

“When I am asked about my vision of Kyiv, I answer that I want to see it as a city with unmatched architecture and a unique culture. I want to see Kyiv as a truly European city, prosperous for 90% of its residents. I want to see our city developed in accordance with the General Development Plan to preserve the historical authenticity of our city, and therefore, our country and our nation.”

(Nataliia S. Neznanova, class 10-A, School No. 214)

“In future, I see Kyiv as one of the main centers of international cooperation. Our city, located on the banks of the Slavutych [the ancient name of the Dnipro River], is gradually becoming an important center of international tourism. This is a prestigious achievement for any country and a reliable source of funding for the budget, which is particularly important in the context of the current situation in Ukraine. I find one of the prospects for my own professional future in the field of tourism services associated with the presentation of the cultural and historical heritage of Kyiv residents and all Ukrainians to the global community.”

(Nataliia Slonodianiuk, class 10-A, School No. 301)

“I hope the shopping mall building boom will soon come to an end, and businessmen will start investing their money in the con-struction of libraries, mini-theaters, and sport grounds. And each of us will find a convenient and easily accessible site for our pastime and leisure activities. Good roads will run not only in the city cen-ter; underground trains will run to the remotest districts, and new trolleybuses will quickly bring us to our destinations. All plants and factories will be moved out of the city – and we will enjoy the fresh air. Eco-cars will drive along our roads and purify the air, etc.”

(Sofiia V. Adamenko, Class 10-Б(‘B’), School No. 84)

“In this essay, I want to address all those people who do not ap-preciate what they have. Let us make our city even more beautiful than it is now. Perfection has no limits. I do not mean that we will get rid of all our problems in one go, but we will do so gradually. All together, we will bring our Kyiv to the European level.”

(Yuliia M. Blashchuk, class 10-A, School No. 281)

“[...] And my city has a lot of plans,A lot of countless plans,And I want so muchTo see them implemented.I do not knowWhat the future holds,But I believe:Kyiv will flourish forever!”(This is an interlinear word-by-word translation of a poem

written by Daryna M. Bondar, a student of class 8-A in Board-ing Gymnasium No. 13)

THIS KYIV CITY DEVELOPMENT STRATEGY IS THE RESULT OF A SYNTHESIS OF IDEAS PRESENTED BY LEADING INDUSTRY EXPERTS, ANALYSTS, PUBLIC OFFICIALS, ACTIVISTS AND THE CITY COMMUNITY IN GENERAL

ACKNOWLEDGMENTS TO THE PARTICIPANTS IN THE DEVELOPMENT OF THE KYIV CITY DEVELOPMENT STRATEGY

Every idea submitted with the comments of our citizens, every expert opinion and every critical remark have helped us improve this document, crystallize our vision of the future and identify the key strategic objectives for the development of our city. The Strategy Development Consortium is grateful to all those who contributed their comments, ideas and remarks in the process of creating this Strategy, and particularly to the following individuals:

PUBLIC COUNCIL FOR KYIV STRATEGY DEVELOPMENT Yurii S. AnistratenkoAnatoliy V. BerkutaViacheslav M. BykovetsSerhii P. BronevytskyiSerhii N. BubkaSerhii A. VovkOksana M. HalenkoValerii M. HeietsIhor A. HolubakhaViktoriia O. HrybOlena A. HromnytskaIhor A. HuzhvaVadym I. DenysenkoVolodymyr V. ZhmutskyiNataliia P. ZabolotnaJorge ZukoskiNataliia V. IzosimovaSerhii M. KvitNelia M. KukovalskaAndrii V. KulikovKyrylo B. KulikovVolodymyr M. LavrenchukIhor V. LysovElla M. LibanovaMark I. MahaletskyiOleksandr V. MartynenkoVitaliy F. MoskalenkoSerhii L. OsavoliukYuliia S. PalamarchukValentyn D. PariiLev R. PartskhaladzeMykhailo B. RadutskyiHryhorii M. SemchukLarysa P. SkorykEduard S. SokolovskyiTamara T. SulukhiiaOlha V. SumskaVladyslav Yu. TroitskyiArseniy L. FinbergSerhii A. TselovalnykDmytro A. ShymkivRoman V. ShpekNataliia Yaresko

UKRAINIAN AND INTERNATIONAL ORGANIZATIONSDeutsche Gesellschaft fur Internationale Zusammenarbeit (GIZ) GmbHUnited States Agency for International Development (USAID)American Chamber of Commerce (ACC)Kyiv Cyclists Association, an NGONational Cultural-Art and Museum Complex Mystetskyi Arsenal, a state-run enterpriseEuropean Business AssociationInternational Finance Corporation (IFC)United Nations Development ProgrammeRegional Council of Entrepreneurs in KyivUkrainian Social Investment FundUkrainian Athletics Foundation

INDUSTRY EXPERTSValerii F. AleksandrovAndrii S. AntoniukYuliia Yu. BelinskaValerii P. BorzovOleksandr P. BudiaArmin WagnerSerhii S. VolkovIvan M. HeliukhKateryna O. DerhachovaSerhii I. DorotychViktor O. ZotovValeriia V. KazbanOleksandr S. KavaYevhen V. KapinusKostiantyn L. KolesnikovHeorhii V. LysychenkoYevhen Yu. LyshanskyiIvan Yu. LunOksana V. MelnychukViktor A. MiroshnychenkoVolodymyr I. NudelmanFather VitaliiYurii O. PavlenkoMilan M. Paievych

Vladyslav Yu. RadyshIryna V. SkorniakovaOleh Yu. SkrypkaVasyl A. StepanenkoOtto O. StoikaMykola I. Tyzhnenko

KYIV ACTIVISTS WHO CONTRIBUTED GREATLY TO DRAFT THE STRATEGY DEVELOPMENTIryna BondarenkoViktor ZahrebaTetiana ZhdanovaYevhen PetroshchukDmytro SerhiienkoVolodymyr Chepovyi

SPECIAL ACKNOWLEDGMENTS TO MEMBERS OF THE WORKING GROUP FOR STRATEGY DEVELOPMENT FOR THEIR SIGNIFICANT CONTRIBUTIONSSvitlana I. BabinetsOlha V. BazarnaOlha M. BakunViktor M. BezotosnyiLiudmyla O. BezrukIhor V. HoncharenkoIhor M. DovbanOksana I. ZbitnievaVolodymyr O. KazachukDmytro O. KalhanovRoman P. KachurOleh V. KizlenkoRoman V. KostrytsiaAndrii I. LobachLeonid A. MatveievSvitlana P. NazarenkoAlla V. OdintsovaOleh P. SvetlychnyiYurii O. SmishchukOleh V. SukhonosIryna V. Shaidetska

STRATEGY DEVELOPMENT CONSORTIUM MEMBERS

Institute for Econom-ics and forecasting at the Ukrainian National Academy of Sciences

Research Institute for City Social and Economic Development

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CONTENTS

INTRODUCTION

• Introductory Word by KCSA Head Mr. O.P. Popov ............... 1

• Statements made by young Kyiv residents ....................... 2

• Acknowledgments to the participants in the development

of the Kyiv city development Strategy .............................. 4

• Vision, major initiatives and objectives .......................... 6

• Vision and Mission of the City ....................................... 8

• Stratedic development goals until 2025 ......................... 9

“BIG MOVES” – KEY STRATEGIC INITIATIVES ..................... 12

1. World-class infrastructure ......................................... 15

2. Lean energy system.................................................. 17

3. Made in Kyiv ........................................................... 19

4. E-government ......................................................... 21

5. Cultural heights ...................................................... 23

6. Dnipro pearl ............................................................ 25

7. Healthy Kyiv resident ............................................... 27

8. City center nearby ................................................... 29

9. International harbor for headquarters ......................... 31

PRIORITIES BROKEN DOWN BY CITY DEVELOPMENT SECTORS... 32

1. Economic development,

private entrepreneurship and investments ................... 34

• The city’s economy growth sectors ............................. 36

2. Transport................................................................ 37

3. Engineering infrastructure and utilities ....................... 41

4. Ecology and environmental safety .............................. 44

5. Tourism .................................................................. 46

6. Public health care .................................................... 48

7. Education .............................................................. 50

8. Social protection and safety ...................................... 52

9. Labor market and employment ................................... 54

CITY DEVELOPMENT INDICATORS ...................................... 57

STRATEGY IMPLEMENTATION PROGRAM............................. 58

• Approach to strategy implementation .......................... 59

Further work with identified initiatives ........................ 60

• Sources of financing ................................................. 61

• “Creating conditions” policy ....................................... 62

• Governance system ................................................... 64

• Monitoring of implementation

• Methodology of progress evaluation

in strategy implementation ..................................... 66

• Community involvement ......................................... 67

• Strategy relation to other documents and planning ........ 68

• Territorial development ............................................. 69

• Development of city agglomeration ............................. 70

• Social responsibility .................................................. 71

• Stages of Strategy implementation .............................. 72

KYIV’S CURRENT POSITION AND TRENDS ........................... 73

• Swot-analysis ........................................................... 74

• Demographic trends and challenges ............................. 75

• City business environment ......................................... 76

• Kyiv’s role in the development of Ukraine ..................... 77

• Kyiv’s role and place in the international context ........... 78

STRATEGY DEVELOPMENT METHODOLOGY .......................... 79

• Strategy development principles ................................. 80

• Strategy development methodology............................. 81

• Analysis of comments from kyiv citizens

and expert to their city’s strategy ................................ 82

• Assumption used during strategy development .............. 83

• Implementation risks and their prevention ................... 83

APPENDICES ................................................................. 84

• Target Strategy indicators .......................................... 85

• Glossary of terms ...................................................... 88

VISION, MAJOR INITIATIVES AND OBJECTIVES

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SUMMARY

WHAT WILL THE CITY OF THE FUTURE LOOK LIKE?

KYIV ON AN INTERNATIONAL SCALE

STRATEGIC INITIATIVES

STRATEGIC DEVELOPMENT OBJECTIVES• A twofold increase in Kyiv’s economic welfare indicator (gross regional product per capita) by 20251

• A considerable improvement to the major comfort-of-living indicators (a 1.8 increase in the comfort-of-living index2)

1. GRP in terms of the parity between the purchasing power and the prices in 2008, an increase in real terms as compared to 20082. As calculated using the below-described methodology, which has been developed and adjusted subject to the possibility of comparing statistical indicators with

international data, for the purposes of the Kyiv City Development Strategy Until 2025 on the basis of data for 2009

UNIQUE, PRESERVING AND DEVELOPING ITS IDENTITY

LIVABLE, IMPROVING ITS STANDARDS OF LIVING

DYNAMIC, ENCOURAGING INNOVATIONS

OPEN FOR BUSINESS

CLEAR, HAVING A TRANSPARENT SYSTEM OF GOVERNANCE

GREEN AND WELL-BALANCED

WORLD-CLASS INFRASTRUCTUREInitiative 1: Transport and Engineering Infrastructure Upgrade

EFFECTIVE ENERGY SYSTEMInitiative 2: Improvement of Kyiv’s Energy Efficiency

MADE IN KYIVInitiative 3: Stimulation of Innovations and Competitive Clusters

E-GOVERNMENTInitiative 4: Implementation of Modern City Governance Technologies

CULTURAL HEIGHTSInitiative 5: Creation of Unique Cultural Atmosphere

DNIEPER GEMInitiative 6: Preservation and Development of Dnieper Riverside

HEALTHY KYIV RESIDENTSInitiative 7: Systematic Promotion of Healthy Lifestyles

CITY CENTER NEARBYInitiative 8: Development of Polycentricity, Creation of New City Centers

INTERNATIONAL HARBOR FOR HEADQUARTERSInitiative 9: Hosting of Central and Regional Offices of International Organizations

EUROPE’S GREENEST CAPITAL CITY

THE RECOGNIZED MEETING SITE OF THE WEST AND THE EAST

THE CITY WHICH ITS RESIDENTS PRIDE THEMSELVES ON

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KYIV 2025: INNOVATIONS, UNIQUE IDENTITY, LIVABILITYVISION AND MISSION OF THE CITY

KYIV IN 2025By 2025, Kyiv will become an innovation center of the Eastern European region with a strong competitive position and clear develop-

ment priorities. This city has maintained and is developing its unique identity and its historical legacy. It constantly improves the stan-dards of living for its residents and its own attractiveness for business. Its development will be implemented in close cooperation with businessmen and investors amid constant improvement of the system of governance and preservation of the city’s greenery.

On an international scale, Kyiv will be described as (1) Europe’s greenest capital city, (2) the recognized meeting site of the West and the East, and (3) an environmentally friendly city which its residents pride themselves on.

SUPPORTING COMPONENTS

MAJOR COMPONENTS

DYNAMIC, ENCOURAGING INNOVATIONS

• The innovative development of 2-3 clusters ensuring the city’s unique identity and competitive strength, as well as a considerable contribution to the economy (at least 10% of the GRP) and to the employment rate (over 40,000 workplaces)

• Support for innovative businesses on the basis of the city’s research and development complex

• Engagement and retention of the best companies and professionals who possess competitive knowledge and technologies

OPEN FOR BUSINESS • Maximum use of non-budgetary

sources of financing due to co-operation with private investors through the creation of a clear and transparent mechanism of interac-tion with the city’s authorities

• Promotion of local business, small and medium-size business through the simplification of municipal standards and approval procedures, the creation of a single clear mechanism of cooperation with the city’s services

• Stabilization of the city’s financial position (budget, debt level)

UNIQUE, PRESERVING AND DEVELOPING

ITS IDENTITY • Preservation of the city’s cultural and

historical legacy and development of new sectors of its cultural life which will secure its attractiveness both for its residents and for tourists

• Preservation and development of the city’s historical identity, ecosystem, landscape, architecture, urban envi-ronment, and historical values

• The city’s development as a business and financial center rather than an industrial center

CLEAR, HAVING A TRANSPARENT SYSTEM OF GOVERNANCE

• Establishment of open local gov-ernance processes, transparent for both the general public and busi-nesses, and regular reporting on the achieved progress

• Technological development: an increase in the level of automation of internal processes and the pro-cesses of the authorities’ interac-tion with business representatives and the population

• The availability and clarity of the rules of the game: guarantee of the accessibility of information required from the city authorities

LIVABLE, IMPROVING ITS STANDARDS OF LIVING

• Creation of livable conditions for living and engaging in business

• Support for human capital develop-ment: competitive education in the most demanded areas in line with the highest world standards, improvement of public health and longevity in Kyiv

• Environmental stability: economic growth without an increase in the environmental load

GREEN AND WELL-BALANCED • Minimization of the effect of the

city’s development process on its ecosystem, preservation of Kyiv’s vegetation and unique ecosystem

• Development in strict compliance with the plan (in particular, with the general plan of territorial development and with the financial plan – the budget)

• Decentralization of the city’s activity: creation of several new centers (the busi ness center, the administrative center, the environmental and recre-ational center, etc.)

• A well-balanced growth of agglome ration (city-oblast): coordination of the devel-opment of the economy, the infrastruc-ture, and the adjacent territories

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QUALITY OF LIFE = ECONOMIC WELFARE + LIVABILITYSTRATEDIC DEVELOPMENT GOALS UNTIL 2025

ECONOMIC GROWTH GOALS• A nearly twofold increase in the city’s economic welfare

(expressed as gross regional product per capita) by 20251

• A 6.5% average annual increase in the real GRP by 20252

• Approximation to the level of economically developed East-ern European capital cities

LIVABILITY IMPROVEMENT GOALS• A considerable improvement of the liveability the residents

(a 1.8 increase in the liveability index3)

• Approximation to the level of the quality of life in Eastern European capital cities

ECONOMIC GROWTH FEASIBILITY• According to the results for the year 2008, Kyiv is some 10-

15 years behind the other Eastern European capitals in terms of its economic development

• The city has to build up its economic strength ahead of the cities it is compared with. This is an attainable goal, consid-ering that the start is made from the lower base.

• The last decades’ economic development experience of Prague, Budapest and Warsaw shows that the growth of the real GRP at an average annual rate of 5-8% is also possible in a long-term perspective.

• In 2004-2009, the average annual rate of the real GRP growth in Kyiv stood at 5.7%, which was 3.2% higher than Ukraine’s GDP growth rate in the same period.

LIVABILITY IMPROVEMENT FEASIBILITY• Kyiv ranks the lowest among the comparison cities in terms

of the quality of life, as determined on the basis of the ad-justed composite index.

• A critically bad situation is observed in the transport sector, in the housing and public utilities sector, and in the cultural sector. A similar bad situation is also observed in the healthcare sector and in the educational sector. The situation in the security sector is better than the average situation observed in the comparison group.

• The quality of life of Kyiv residents will be improved through the creation of a reliable engineering infrastructure, a convenient transport system, a high-quality and affordable healthcare and education system and through the improve-ment of the city’s environmental situation.

90

0

50

250

300

350

400

450

St. Petersburg

St. Petersburg

a 1.8 increase Livability index,Kyiv 2009 = 100

GRP per capita index,Kyiv 2008 = 100

a twofold increase

+6.5% of the real GRP per year (2010-2025)

Moscow

Moscow

Budapest

Budapest

As of 2009 As planned for 2025

Warsaw

Warsaw

Prague

Prague

110 120 130 140 150 160 180 190

Kyiv

Kyiv

100 170

100

150

200

1. Based on the GRP for 2008 in terms of the parity between the purchasing power and the prices 2. Real GRP growth for the period of 2010-20253. The livability index has been calculated using the methodology, which has been developed and adjusted subject to the possibility of comparing statistical indicators

with international data, for the purposes of the Kyiv City Development Strategy Until 2025 on the basis of data for 2009

Fig. 1. Strategic development goals until 2025

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ECONOMIC WELFARE AND LIVABILITY INDICATORS ARE MEASURED AND MONITOREDSTRATEGIC DEVELOPMENT GOALS UNTIL 2025

THE KEY STRATEGIC GOAL IS THE QUALITY OF LIFE AS THE COMBINATION OF ECONOMIC WELFARE AND THE LIVABILITY IN KYIV

ECONOMIC WELFARE The key integrated indicator of the city’s economic welfare

is the gross regional product (GRP) per capita. The auxiliary indicators are the population employment rate, the average salary / disposable income, and the ratio of income distribu-tion in society.

LIVABILITYFor the purposes of an objective assessment of the level of the

comfort of living in the city, a comparison of Kyiv with the compari-son cities and the monitoring of the progress of improvements, an adjusted methodology for calculating livability index was devel-oped on the basis of 21 indicators defining the situation in the key areas of the city’s activity.

SectorCurrent

situation1 Status indicator Current indicators

(2009)Future indicators

(2025)

Transport

Length of public transport routes per 10,000 persons 9,6 16,1

Density of the street and main road network, km/sq. km. 2,1 2,8

Number of traffic victims, persons per km 2,3 1,2

Housing and public utilities

Length of power distribution networks, km per 1,000 persons 4,2 9,4

Density of power distribution networks, km per sq. km. 13,9 40,0

Length of water pipelines, km per 1,000 persons 1,5 3,6

Density of water pipelines, km per sq. km. 5,0 15,3

Length of sewerage networks, km per 1,000 persons 0,9 3,0

Density of sewerage networks, km per sq. km. 3,1 12,8

Percentage of water losses in total consumption, % 20 5

HealthcareLife expectancy at birth, years 72,7 79,8

Initial disease incidence rate, incidents per 1,000 persons 966,6 777,3

EnvironmentHarmful emissions, tonnes per sq. km. per year 333,0 250,0

Percentage of solid household waste processing, % 5 40

EducationStudents/teachers ratio 10,0 8,0

Quality of education (Newsweek), a ranking indicator 64,0 78,0

SecurityNumber of crimes per 100,000 persons 12,8 8,5

Complex security ranking (EIU) 70,0 78,9

Culture

Number of visits to museums per resident 1,5 2,8

Number of visits to theatres per resident 0,4 1,2

Number of galleries2 per 100,000 persons 1,4 3,2

Livability index (Kyiv 2009 = 100) 100 181

KEY PERFORMANCE INDICATORSThe progress of implementation of the Strategy in all sectors

of the city’s activity will be monitored in accordance with the key performance indicators (KPIs) developed for all the strate-gic initiatives. Target KPIs have been set for 2015 and 2025.

The annual monitoring of progress in the achievement of the respective goals serves as the main means of implementing the Strategy and enables assessment of the performance of those who implement it. All KPIs shall be complied with in full.

INTERNATIONAL RANKINGSInternational quality of life rankings prepared by Mercer and

Economist Intelligence Unit (EIU) serve as an important factor affecting the image of the city in the international arena and enable assessment of how far Kyiv is lagging behind the world’s best quality of life standards.

Importantly, the city’s goal is not the achievement of a certain place in an international ranking, but the narrowing of the qual-ity of life index gap between the city and the comparison cities and global leaders. By 2025, Kyiv intends to enter the top 40 list of cities with the highest quality of life indicators and narrow the gap between itself and the leaders to 15-30%, as compared to the current gap of 50-90%.

1. As compared with the comparison cities: Kyiv’s indicators are the same as or higher than the group’s average indicators – green, are 10% lower – yellow, are more than 10% lower – red.

2. Of significant public and private galleries as determined by a consensus among the industry experts.

Table 1. Comfort-of-living index

“BIG MOVES” – KEY STRATEGIC INITIATIVES

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OUR EFFORTS SHOULD BE FOCUSED ON INITIATIVES WITH MAXIMUM EFFECT“BIG MOVES” – KEY STRATEGIC INITIATIVES

WHAT ARE THE PECULIARITIES OF THESE INITIATIVES?• The “Big moves” do not fall within the competence of a single

sector, but require joint efforts of various executive entities of the city administration.

• They have the biggest effect on the accomplishment of the mission of the city’s long-term development.

• Their characteristic features are long implementation periods and large investments.

• They do not always have a clear progress indicator and are usu-ally characterized by a program of action.

WHY IS IT NECESSARY TO SINGLE OUT MAJOR INITIATIVES?• These initiatives require the engagement of a great many

parties and city functions and the establishment of liability at a high level for the coordination of efforts.

• The implementation of these initiatives requires an indi-vidual approach and working within the framework of project management with clearly defined goals and deadlines, with the outcome-based result planning and with the subsequent transfer of respective plans to functional departments.

WORLD-CLASS INFRASTRUCTUREInitiative 1: Transport and Engineering Infrastructure Upgrade

EFFECTIVE ENERGY SYSTEMInitiative 2: Improvement of Kyiv’s Energy Efficiency

MADE IN KYIVInitiative 3: Stimulation of Innovations and Competitive Clusters

E-GOVERNMENTInitiative 4: Implementation of Modern City Governance Technologies

CULTURAL HEIGHTSInitiative 5: Creation of Unique Cultural Atmosphere

DNIEPER GEMInitiative 6: Preservation and Development of Dnieper Riverside

HEALTHY KYIV RESIDENTSInitiative 7: Systematic Promotion of Healthy Lifestyles

CITY CENTER NEARBYInitiative 8: Development of Polycentricity, Creation of New City Centers

INTERNATIONAL HARBOR FOR HEADQUARTERSInitiative 9: Hosting of Central and Regional Offices of International Organizations

151. Estimated required investments as calculated on the basis of feasibility studies and similar projects2. PPP – public private partnership3. Not included in the total amount

WORLD-CLASS INFRASTRUCTUREINITIATIVE 1: TRANSPORT AND ENGINEERING INFRASTRUCTURE UPGRADE

CITY GOALS

Innovative

Open for business

Having a trans parentgovernance system

Green and well-balanced

Unique Livable

WHY IS THIS IMPORTANT?The infrastructure is an important prerequisite for the city’s

economic growth. The two main problems plaguing Kyiv’s transport and engineering infrastructure are their insufficient logistics and their seriously worn-out state.

The insufficient infrastructure causes overloads, aggravates deterioration and sometimes makes basic service inaccessible to the city’s residents. The worn-out infrastructure leads to higher costs of the services (frequent repairs, excessive energy consumption in the networks and on sites), their lower quality (traffic jams and lower security level in the context of the transport infrastructure and loss of the product’s physical properties in the context of the engineering infrastructure), higher capital expenditures on upgrades (post-breakdown restorations), and a considerable deterioration in the quality of life of Kyiv residents.

KEY MEASURES

KEY INITIATIVE IMPLEMENTATION AREAS

The projected economic growth and the rising demands of both the population and the enterprises will only increase the load on the city’s infrastructure. However, as demonstrated by the estimated project indicators (see Table 2), it will be simply impossible to build any new infrastructure facilities or repair the existing infrastructure facilities in the near future using only the currently available budget financing.

So some projects will be implemented using external financing mechanisms (such as PPP2 (including concessions), co-financing, financing by international organizations, etc.).

UPGRADES OF RESIDENTIAL BUILDINGS AND ELEVATORSResidential buildings must be upgraded with the active participation

of and control by their owners (including through the improvement of conditions and mechanisms for setting up apartment building co-owners associations, the implementation of systems for the actual recording of the provided resources and services). On top of that, complex projects associated with upgrades of residential buildings must also become at-tractive for investors, who will be able to recoup their investments from the actual energy consumption economy after the repairs without any additional losses for the people living in the building.

The city’s main objectives will be the necessary regulatory environment (the harmonization of conflicting moments and the simplification of target financing and co-financing procedures in the context of municipal laws), an information campaign, accessible resource centers, and the economic stimulation of projects.

UPGRADES OF ENERGY SECTOR FACILITIESA majority of projects will be implemented in the context of the

strategic initiative aimed at improving the city’s energy efficiency. The creation of high-quality economic and regulatory incentives (including transfers of respective facilities under concession ar-rangements) for the operators or power generation and distribution facilities, combined with the improvement of energy consumption accounting on the level of users and the stimulating tariff regula-tion, are the main prerequisites for the systemic modernization of heat and power infrastructure facilities at the expense of private investors. On top of that, a series of projects will be developed to create decentralized alternative energy resources.

UPGRADES OF SEWERAGE FACILITIES AND RECONSTRUCTION OF TREATMENT FACILITIES

Borrowed and investment resources will be raised for intake, distribution, drainage and treatment facilities with the stimulating tariff regulation system and clear quality requirements for respec-tive products and services.

UPGRADES OF TRANSPORT INFRASTRUCTURE FACILITIESThe construction and further management of large-scale facilities

(such as underground railway lines and stations, roads, tunnels) through PPP mechanisms and the engagement of only private investors for the implementation of other large-scale projects (the construction of parking lots) will become the main factors contrib-uting to the improvement of the transport infrastructure. However, it will be impossible to achieve the goal of affordable, safe and convenient transport without other non-infrastructure measures aimed at changing the structure of the city’s passenger flows and the automated control system.

Type of infrastructure Required investments, mln. euros1

Residential buildings and elevators 224

Heating and power systems 1 720

Sewerage facilities (including, treatment facilities) 810

Transport infrastructure (the key projects) 1 152

Transport infrastructure (the remaining desirable projects)3 2 101

Total 3 906

Measures Start End

Upgrades of residential buildings already started Q4 2018

Upgrades of energy sector facilities Q1 2012 Q4 2020

Upgrades of water and sewerage facilities Q3 2012 Q4 2015

Upgrades of transport infrastructure facilities already started Q4 2018

Infrastructure Extent of wear

Transformer substa-tions 41%

Cable power trans-mission lines 25%

Heating networks 52%

Heat supply substa-tions 70%

Water supply networks 20%

Water intake stations 75%

Infrastructure Extent of wear

Sewerage networks 30%

Main city sewer 99%

Residential buildings 16%

Elevators in residen-tial buildings 36%

Roads 85%

Public transport stations 47%

Road signs 74%

Fig. 2. Worn-out infrastructure

Table 2. Required investments

17

EFFECTIVE ENERGY SYSTEMINITIATIVE 2: IMPROVEMENT OF KYIV’S ENERGY EFFICIENCY

WHY IS THIS IMPORTANT?The seriously worn-out infrastructure and the growing consum-

er demand require the optimization of energy use and generation. Taking into account other cities’ results (see Fig. 3 below), Kyiv has a considerable potential for improving its energy efficiency.

Amsterdam

Warsaw

Berlin

Prague

Budapest

Kyiv

Energy consumption in GRP

MJ per euro of GRP

2 5,80

3 7,12

4 1,84

4 1,02

7 0,44

22 0,47

% of total energy generation

Renewable energy

Fig. 3. Energy efficiency of compared cities

The implementation of energy saving measures will enable an improvement in the quality of life of Kyiv residents and will free the infrastructure from the effects of the city’s further expansion. The imple-mentation of such measures must have the following ultimate results:• Improvement of the quality of life (adequate heat and power

supplies) of Kyiv residents

• Stabilization and economy of expenses on utility services

• Reduction of energy sector costs in the structure of the GRP and re-duction of the cost of products manufactured by the city’s enterprises

• Improvement of the regulatory environment for energy enterprises and energy service companies

• Recycling of wastes and efficient use of vegetation wastes as energy resources

• Reduction of the city’s dependence on natural gas supplies

It is important to note in this context that these results can be achieved without any losses for either of the involved parties through the efficient use of those resources which are currently wasted.


The city’s key strategic goal will be compliance with the all-Eu-ropean program 20/20/201 . Works under such a complex program will be carried out both by consumers (effective consumption) and by energy generation, transportation and energy distribution entities (lower expenditures and use of alternative sources). The key objectives will be as follows below:

ENERGY SAVING IN THE UTILITIES SECTORInvestors will be invited and special-purpose loans with be raised

from international organizations and foundations for the establish-ment of a centralized monitoring system for energy consumption and for a complex thermal sanitation and modernization of power-consuming equipment and lighting. Individual energy sources are planned to be implemented at some utility enterprises where such measures will economically beneficial and socially acceptable.

ENERGY SAVING IN THE RESIDENTIAL SECTORThe experience in carrying out utility projects will enable

demonstration of the effectiveness of such measures as the implementation of metering systems, complex thermal modern-ization, upgrading of distribution equipment, etc., both to the investors and to the residents.

Residential sector projects must be co-financed by the inves-tors among energy service companies and the people who live in respective buildings, with the city providing benefits and possible budget support at early stage of the program. The establishment of a transparent regulatory environment and economic incentives for residential buildings upgrade projects will make this sector attrac-tive for energy service companies. The development of effective mechanisms (including apartment building co-owners association and other forms of residents associations) for the involvement of citizens for their active participation in and their control over such projects will not only assure the residents of the quality of respec-tive works but will also provide guarantees for the investors.

GENERATION AND DISTRIBUTION FACILITIESClose cooperation with the city’s largest energy enterprises in the

implementation of modern European standards of a heat and power engineering state will help the city to better understand the most pressing problems and remove respective regulatory obstacles. The promotion of joint investment projects involving energy generation modernization, including the promotion of the use of co-generation units, will allow the efficient use of the energy which is being wasted now. Intellectual mechanisms for making consumption fore-casts will allow a considerable decrease in the number of excessive generation incidents and further heat and power losses.

ALTERNATIVE ENERGY SECTORAn increase in the use of alternative energy sources will be

secured by the processing of solid household wastes and vegeta-tion wastes. In a long-term perspective, private investments can be raised to introduce decentralized renewable energy sources.

ENERGY EFFICIENCY STANDARDS In addition to the infrastructure upgrades, the city must bring its

construction and transport sectors closer to European standards to ensure an economical use of its resources in future as well.

1. An agreement reached by the EU countries on reduction of greenhouse gas emissions by 20%, reduc-tion of the GRP energy consumption by 20%, and the use of 20% renewable energy generation from green and alternative sources before 2020

2. Heat pumps, solar batteries, etc

KEY MEASURESMeasures Start End

Modernization of energy consumption at utility facilities

already started Q4 2015

Active implementation of relevant mechanisms for upgrading residential buildings Q1 2012 Q4 2018*

Upgrades of the city’s energy generation and distribution facilities Q3 2012 Q4 2021*

Implementation of renewable and alternative energy generation technologies Q1 2012 Q4 2016*

*further works to be carried in accordance with the respective plans

CITY GOALS

Innovative

Open for business



Unique Livable

19

MADE IN KYIVINITIATIVE 3: STIMULATION OF INNOVATIONS AND COMPETITIVE CLUSTERS

WHY IS THIS IMPORTANT?No city can boast of being a leader in many sectors of the

economy. A city can be a leader only in certain sectors where it has a competitive position.

The best practices in the economic development of cities are associated with the creation of clusters, i.e. competition centers in sectors that are given priority. These sectors will yield considerable results, such as a contribution to the GRP, new jobs, the city’s innovative status on an international scale, and will establish the city’s international brand “Made in Kyiv”.

The examples of such clusters include: banks in Zurich, IT engineering in Dublin, and agricultural trading in Chicago. The city has practical leverage to create such clusters through their identification and creation of the necessary conditions for the raising of investments and business activity development that will lead to the formation of a competitive sector.


The city cannot and should not independently determine the priority clusters. But support and promotion of projects, which have the greatest potential for the city and which have already found support among the business community and investors, will help Kyiv to achieve its ambitious GRP growth goals.

At the same time, city residents’ comments and the city’s ex-isting GRP structure demonstrate the priority status of the ser-vice industry, as well as certain hi-tech sectors. The examples of highly developed European cities also confirm the general tendency towards the relocation of mass industries beyond the boundaries of central cities.

In order to finally identify the city’s priority sectors, the city’s long-term economic growth program needs to be devel-oped and the selection of 2-3 clusters needs to be completed, subject to the remarks of the business community and the promising investors, as well as subject to the international experience in the identification and development of such clusters.

Another important prerequisite for the implementation of the given initiative is the creation of favorable conditions for the development of business in general. The respective efforts must be focused on the improvement of the legal and regula-tory environment and on the interaction between the business


Development of an economic development program – identification of 2-3 competitive clusters, subject to the comments of business representatives and poten-tial investors and subject to international practices

Q1 2012 Q4 2013

Creation of business incubators Q1 2012 Q4 2013

Development of mechanisms for supporting clusters (such as, for example, a system of prefer-ences, free zones, etc.)

Q1 2012 Q2 2014

Active attraction of investors to the selected clusters Q1 2014 Q2 2015*

Possible cluster options Additional jobs Contribution to GRP

Pharmaceutics and medical technologies ~ 70,000 15-20%

Engineering and precision engineering > 50,000 ~ 15%

Regional and international IT outsourcing > 50,000 10-15%

Culture and tourism center 40,000-50,000 4-6%

Regional logistics center 40,000-50,000 ~ 5%

CIS and CEE commercial trading center (agricultural raw materials)

~ 20,000 ~ 3%

Civil aviation research and educational center 5,000-10,000 ~ 1%

* further works to be carried in accordance with the respective plans

community and the city, on support for the development of entrepreneurship.

On top of that, in order to develop the city’s competitive en-vironment on the basis of a research and development complex, a system of business incubators will be created for the city’s innovative enterprises. In order to create an attractive envi-ronment for respective industry investors, regular trade fairs and start-up forums are planned to be held with the support of the city. The ideas of the most promising entrepreneurs will be promoted by the city in an international arena.

Table 3. Kyiv’s potential competitive clusters for further elaboration

CITY GOALS

Innovative

Open for business



Unique Livable

21

E-GOVERNMENTINITIATIVE 4: IMPLEMENTATION OF MODERN CITY GOVERNANCE TECHNOLOGIES

WHY IS THIS IMPORTANT?The “e-government” (EG) is the foundation of modern munici-

pal governance. Its complex system affects both internal admin-istration processes and interaction with the general public. The creation of the EG will result in a number of noticeable changes:• Simplification and facilitation of interaction between the

population, the business community and the city services

• Enhancement of the transparency of internal administration processes

• Better controllability of the city governance system, possibil-ity of visual monitoring of certain services

• Lower costs associated with the maintenance of the adminis-trative apparatus

From the point of view of interaction with the general public, the EG is the logical continuation of the implementation of the “one-stop shop” principle, but it enables the minimization of the need for an individual’s personal presence and brings together many more services in one place. During its work with the population, the e-government will ensure:• Provision of official information, documents, templates, etc.

• Two-way on-line communication

• Possibility of the execution of legal and financial transactions

• Accessibility of information generated by individual city ad-ministration functions and by the entire apparatus in general for the general public

As to the improvement of internal city administration pro-cesses, the following points should be highlighted:• Coordination of individual city functions in an integrated

well-adjusted system

• Acceleration of information flows

• Improvement of the controllability and reliability of internal processes

• Organization of a system for monitoring operations of certain services, possibility of a timely and objective assessment of their performance


To adopt a good-quality approach to a change in city governance, respective tasks and problems of the city need to be identified for their consideration by the e-government. On top of that, it is neces-sary to understand the existing e-governance system implementa-tion processes and to formulate the vision of the new respective processes. Upon completion of these preparatory works, the city will be able to set respective reasonable requirements and to start implementing the system, which, in combination of a change in the processes, may result, in particular, in the following changes:

SERVICE SYSTEM FOR INDIVIDUALS AND BUSINESSESThere will be created a portal for servicing the city (an Internet

portal, terminals at city services, integration with a call center), with the help of which one will be able to get all necessary infor-mation, ask question to KCSA representatives, file an application seeking to obtain some documents or change the address, pay fines, and learn about the current progress towards the implemen-tation of certain approved program by the city government.

Traditional system

Indi

vidu

al/

busi

ness

Infr

astr

uctu

re

City

go

vern

men

t

“One-stop shop” E-government

Institution 2 Institution 2

Institution 1 Institution 1

Institution 2 Institution 3 Institution 1

SMS/MMS Terminal

Central server

Call center

Fig. 4. Development of a system of cooperation with individuals

The minimization of personal presence for the execution of trans-actions requires the implementation of a digital signature system.

E-DOCUMENT FLOWTo speed up the processing of requests, the documents flows

between city authorities need to be automated. This will enable abandonment of the practice of step-by-step consideration of documents and the control over document flows at each stage.

INTEGRATION OF INFORMATION REGISTERSThere will be created integrated databases and registers of

investment projects designed for the transfer into lease of municipal real estate, etc., in order to improve the external and internal reporting and control processes.

INTEGRATION OF CITY FUNCTIONS AND SERVICESSystems for management of certain functions will be integrated

and the operation of emergency services will be coordinated in order to optimize the solution of complex problems and facilitate interde-partmental interaction, and a special system will be created for gath-ering information about performance indicators of the city services.


Initial analysis of internal requirements and processes Q1 2012 Q2 2012

Creation of a portal for servicing the city Q1 2012 Q2 2014

Implementation of e-document flows Q4 2012 Q2 2014

Implementation of an integrated city manage-ment system


CITY GOALS

Innovative

Open for business



Unique Livable

23

WHY IS THIS IMPORTANT?In the mid 20th century, Kyiv had the status of a cultural

capital which is now lost. The numbers of museum- and especially theater-goers are constantly shrinking (see Fig. 5). Meanwhile, a public opinion survey has demonstrated Kyiv residents’ obvious wish to get back this status.

2003

Museums

Theaters

0

1 000

thous. people per year

500

2004 2005 2006 2007 2008 2009 2010

Fig. 5. Museum and theater attendance statistics for Kyiv

The city’s culture is one of the key elements of its differen-tiation and attractiveness. Further development of its unique culture is required for the formation of material values and for the sustainable development of society, for an increase in the comfort of living. The city’s cultural policy may suc-cessfully unite various social strata and ease social tensions. Remarkable cultural events will attract both Kyiv residents and tourists, and this will bring a considerable contribution to the city’s economy.

In order to revive this sector, a modern infrastructure will be created for Kyiv for the professional artistic community where talented Ukrainians and foreigners will be able to fully realize their artistic potential.

CULTURAL HEIGHTSINITIATIVE 5: CREATION OF UNIQUE CULTURAL ATMOSPHERE

KEY INITIATIVE IMPLEMENTATION AREASINFRASTRUCTURE UPGRADES

Kyiv has a great cultural and historical legacy, but even its existing infrastructure requires considerable upgrades:• Repairs of the existing facilities, their renovation to meet

modern requirements (for example, reconstruction of the Bilshovyk Cultural Center)

• Opening of the renovated municipal museum of the city of Kyiv

• Creation of a world-class cinema cluster in cooperation with state authorities on the basis of state- and municipally owned assets (the existing and new facilities, territories)

• Creation of the blocks of culture near the Kyiv Pechersk Lavra monastery together with the Mystetskyi Arsenal and near the Mykhailivska Square together with St Sophia’s Cathedral, Mykhailivskyi Golden-Domed Cathedral and the historical hills of the Landscape Park (“Peizazhna Alleia”) (within the framework of the Kyiv city development plan), with the respective tourism and cultural infrastructure

RENOVATION OF CULTURAL ASSETSFor the purposes of further development of the city’s cultural

assets, favorable conditions need to be created for cooperation with private investors and sponsors:• Implementation of the public private partnership scheme

and facilitation of private projects involving the reconstruc-tion and the construction of the city’s new cultural facilities (private museums, theaters, concert halls, etc.)

• Creation of a multifunctional modern concert and theater complex for an audience of over 5,000 people

ORGANIZATIONS OF SIGNIFICANT CULTURAL EVENTSThe city’s hosting of cultural events will attract internation-

al artists to the city, will facilitate the development of modern arts, and will secure a place for Kyiv on the map of the world’s cultural centers. Such events include the following:• National festivals and dramatized shows

• Cinema and theater festivals

• A large variety of music festivals

• Flower shows and cooking festivals

• Fashion shows and auction sales

PROMOTION OF CULTURAL PRODUCTSThe popularization of cultural products requires:

• Formation of the city’s general theater repertoire subject to the variety of target audiences, for example, with the help of as advisory board consisting of leading experts in culture, artists and government representatives

• Promotion of the city’s arts and cultural events on Kyiv’s tourism portal, in social networks and mailings (information about the events, facilities)

• Inclusion of cultural events in the city’s tours and tour programs


Formation of a long-term calendar of cultural events Q1 2012 Q2 2012*

Creation of an advisory board for the formation of the city’s cultural assets Q1 2012 Q2 2012

Complex repairs and upgrades of the city’s cultural facilities Q2 2012 Q4 2016

* to be updated every five years

CITY GOALS

Innovative

Open for business



Unique Livable

25

DNIEPER GEMINITIATIVE 6: PRESERVATION AND DEVELOPMENT OF DNIEPER RIVERSIDE

WHY IS THIS IMPORTANT?The major element of the Kyiv landscape on a global scale

is the coastal territories of the Dnieper River valley, a unique zone in the heart of the city and its competitive advantage. However, its potential is not fully exploited at present: the ter-ritory is not actually a wholesome recreational asset.

Development of the territories in the Dnieper River valley will secure the following benefits for the city:• Realization of the potential of its unique landscape and

scenery to create a highly attractive tourism and recreation-al zone

• Restoration of one of the city’s fundamental symbols, preservation and retention of the environmental balance of the Dnieper River urban landscape

• Creation of new work-places and additional budget revenues pro-vided that investments are raised and the territories are used for recreational and enter-tainment purposes

The well-arranged high-class coastal territo-ries will turn the city into a gem of an international level, into a leisure, tour-ism and sports center.


A large portion of the Right Bank riverside territories in the north (between Kurenivka District and Rybalskyi Island) and in the south (Telychka) is covered by industrial zones. Meanwhile, only a short and narrow riverside strip from Podil District to the Paton Bridge is used for recreational purposes. And even this part of the riverside has only sev-eral communications with the upper riverside edge. Island territories are also undeveloped: most of their coastal zones are not used in the interests of the city (even though the operational beaches are over-crowded in summertime) and are filled with occasional catering points.

DEVELOPMENT OF A UNIFORM DEVELOPMENT CONCEPTThe non-systemic development of certain coastal territories will

result in further destruction of the overall integrity of Dnieper River ter-ritories. A harmonious development process requires a uniform concep-tual approach. Such concept must take into account both the unique environment and recreational potential and the economic attractive-ness of individual territories. It has to be focused on the establishment of a harmonious development process for these functional sectors and thus mitigate the damaging effects of the uncontrolled development process. To develop such a concept, an international architectural competition has been organized for professional architect agencies. The panel of judges will consist of experts in Kyiv, as well as of experts in city planning, environment and business. The concept must be based on the following three basic principles:• A responsible attitude and the minimization of damages caused

to the existing nature and landscape complex

• Creation of a uniform harmonious functional vision of the terri-tory’s development

• Incorporation of Kyiv residents’ comments regarding the use of the territories for recreational, environmental and sports-and-entertainment purposes

The process transparent for the general public must also include public hearings on the concept.

SECURING FURTHER IMPLEMENTATIONUpon the determination of the overall development concept for the

Dnieper River zone, it will be necessary to develop its general layout at the level of the DTP , to form investment projects for individual territo-ries, to attract investors and select contractors. At the implementation stage, it is important to take into account that the attractiveness of coastal territories creates a temptation to steer off the adopted concept in the course of its implementation. That is why, in addition to the un-biased choice of the investor, there should be established a rigid system of rules and the city’s control over compliance with the initial concept. If necessary, following the implementation of the first stage of projects, the concept may be reviewed with the use of the above-described competition mechanism.

However, apart from the initial development of the territories, their improvement and the creation of the respective infrastructure, it is also critically important for the further preservation of this unique gem of Kyiv that the city’s community acts with due care and respect when using these territories. In addition to control measures and regulatory inspections, there must be a change in Kyiv residents’ self-perception - from ‘users’ to ‘responsible owners’. Information campaigns and social advertisements will help to achieve this goal. In general, the implemen-tation of this change depends directly on the city’s community.


Formation of the development concept and its coordination with the general public


An environmental and town planning evaluation and preparation of a detailed territory plan Q2 2012 Q1 2013

Development of relevant projects for individual zones of the coastal territories Q3 2012 Q2 2013

Selection of investors and developers Q3 2012 Q2 2014*

Implementation of the projects, monitoring, an expert evaluation of the results Q4 2012 Q4 2017*


i. Muromets

i. Lapukhavaty

i. Trukanivi. Dolobetsky

i. Venitsiansky

i. Velyky

i. Galerny

i. Zhukiv

i. Vodnykiv

i. Olzhyn

i. Kozachy

1. Detailed territory plan

CITY GOALS

Innovative

Open for business



Unique Livable

27

WHY IS THIS IMPORTANT?Kyiv is now facing serious challenges associated with the

deterioration of health of Kyiv residents:• An increase in sedentary types of activities in education and work

• An increase in the popularity of “sofa-lying and computer-sitting sports”

• An increase in the consumption of tobacco products and alcoholic beverages (accounting for the same share in the citizens’ expenditure structure as medicine), disregard for healthy food rules

• A considerable lack of investments in the sport infrastructure

The universally recognized global experience shows that strong health is formed not only with medical treatment, but primarily with preventive measures. This principles is one of the most important strategy components in the context of improvement of Kyiv residents’ health. The foundation of prevention is a healthy lifestyle.

The promotion of healthy lifestyles is the main means of preventing disease. The implementation of measures aimed at promoting healthy lifestyles in developed European countries resulted in a drop in the numbers of deaths caused by cardiovas-cular diseases and an increase in the longevity by 10-15 years.

An increase in the number of opportunities and infrastruc-ture facilities for sports and recreational activities also has a considerable effect on the perception of the city’s comfort.


Measures aimed at promoting healthy lifestyle for Kyiv residents have to be implemented in a well-balanced and well-focused manner. To this end, it is, first of all, necessary to develop a systemic approach adjusted to national social development programs, applicable laws and the city’s existing healthcare infrastructure.

Fig. 7. Factors affecting human health according to the World Health Organization

50%

20%

20%

10%

Lifestyle

Environment

Heredity

Medicine

A well-balanced approach in this sector will cover both im-mediate measures and complex programs, whose results will become visible in 5-10 years. The following are the examples of such measures:

CREATION OF NECESSARY CONDITIONS FOR FINANCING AND CO-FINANCING OF BASIC SPORTS FACILITIES

Investors and the population will be engaged for the recon-struction and a gradual increase in the number of sports sites and basic infrastructure facilities.

PROMOTION OF HEALTHY LIFESTYLESSupport will be provided for professional and amateur events,

relevant media coverage opportunities will be created on the level of the entire city to promote HLS. The social responsibil-ity of businesses will be established for the promotion of the HLS of their own workers and Kyiv residents in general.

CONSTRUCTION OF STATE-OF-THE-ART SPORTS COMPLEXES

Standardized investment projects will be developed for the construction of multifunctional sports complexes.

IMPROVEMENT OF DRINKING WATER QUALITY The existing pump-room complexes will be repaired and new

pump-room complexes will be put into operation, water supply and filtration systems will be upgraded.

IMPROVEMENTS IN HEALTHCARE SECTORThe effectiveness of the use of the existing resources will be

improved, medical aid will be made affordable. Priority atten-tion will be given to the development of primary healthcare.

PROMOTION OF NON-MOTOR TRANSPORT AS AN IMPORTANT COMPONENT OF MOBILITY SYSTEM

The biking infrastructure will be gradually integrated into the transport scheme and recreational sites.

HEALTHY KYIV RESIDENTSINITIATIVE 7: SYSTEMATIC PROMOTION OF HEALTHY LIFESTYLES


Creation of incentives for investors in the field of construction of sports infrastructure facilities

already started Q4 2012*

A large-scale promotion campaign and popular-ization of healthy lifestyles

already started Q2 2014*

Development of sports activities for children already started Q4 2014*


Ukraine (average)

Kyiv

0

2

4

Ukraine (maximum)

1,5

3,6

2,3

Fig. 6. Number of sports facilities as per 1,000 residents

CITY GOALS

Innovative

Open for business



Unique Livable

29

CITY CENTER NEARBYINITIATIVE 8: DEVELOPMENT OF POLYCENTRICITY, CREATION OF NEW CITY CENTERS

WHY IS THIS IMPORTANT?The transition from the mono- to the polycentric model of

Kyiv’s development is an important prerequisite for the city’s well-balanced and harmonious development both in economic and social terms. The creation of several city activity centers (the business center, the administrative center, the cultural and historical center, and the natural and recreational center) of the entire-city level of importance must facilitate the city’s further decentralization and the achievement of the following advantages:• Creation of new zones of rapid economic development out-

side the boundaries of the historical center

• Development of the competition and self-sufficiency among the city’s districts, achievement of their multifunctionality

• Improvement in the level of the comfort of living by bring-ing respective infrastructure facilities and workplaces to the places where Kyiv residents live

• Reduction in the load of the historical center

• Reduction in the traffic load through dispersion of the city’s transport flows, reduction in the number of daily long-dis-tance travels

• Dispersion of the pressure on the city’s infrastructure system

In general, Kyiv must get close as much as possible to the image of “a walking-distance city”.


New centers in Kyiv will be formed in compliance with the following principles of effective use of city territories:• Alternative centers will be developed within the city’s territory

subject to the already existing infrastructure and the availability of transport routes to residential districts

• Secondary development (including within the territories of industrial zones) will be given priority over primary development, which will make land use more effective and will preserve the green zones

The formation of a decentralized city is a long-term process and is, first of all, reflected in a complex approach to the city development. One of the important projects to be implemented in the near future (2012-2020) will involve the creation of a modern business zone outside of the historical and cultural center (the Kyiv City project and the initiative “International Harbor for Headquarters”). These business zones must become sufficient-ly attractive not only for the purposes of hosting representative offices of international companies in the region, but also as high-quality locations for the existing local enterprises. It will be critically important to create not only large office spaces, but also the necessary services in the areas surrounding the business center which will be affordable for small and medium-size business representatives.

Another important step towards the implementation of this initiative (2015-2020) will be the gradual decentralization of the location of the city’s administrative functions of both the city and individual state in-stitutions which now occupy large spaces in buildings of the historical center which are not well-suited for this purpose.

Left Bank18% of workplaces 38% of Kyiv residents

Right Bank82% of workplaces

62% of Kyiv residents

Fig. 8. Distribution of places of residence and workplaces in Kyiv in 2011

On top of that, the following specific measures are planned to be carried out to support the overall city development in the context of dispersal of centers:• Restriction of further location of business real estate facilities in the

historical center, adoption of the basic historical and architectural plan

• Development of a project for the first-stage implementation of the General Plan, including with a particular focus on the reduction in commutation

• Construction of the Podil-Voskresenka underground railway line covering the Troieshchyna residential district and construction of the city ring electric-train line

• Priority location of modern business centers, shopping malls, hotels, exhibition centers and social infrastructure facilities on the left bank of the Dnieper rivers and in remote districts of its right bank

The implementation of this initiative requires the creation of prefer-ential mechanisms for those developers who facilitate achievement of the balance in the distribution of places of residence and workplaces through construction of commercial real estate facilities on the left bank and development of the territories of industrial zones in line with this Strategy and the General Plan.


Detailed elaboration of the General Plan:• First-stage implementation project • Zoning of certain territories and designing

of certain city knots

already started 1Q 2013*

Development of a system of Kyiv state construc-tion standards

already started 1Q 2013

Tender for the development and selection of a concept for the implementation of the Kyiv City project

1Q 2012 2Q 2012

Development of preferential mechanisms and benefits for the developers of new centers 1Q 2012 3Q 2012

Formation of the complex city planning program “City Center Nearby”, formation of a respective bank of projects

1Q 2012 1Q 2013

Implementation of the first stage of the Kyiv City project 1Q 2013 1Q 2018

Gradual decentralization of administrative func-tions outside of the boundaries of the historical center

1Q 2015 4Q 2019


CITY GOALS

Innovative

Open for business



Unique Livable

31

INTERNATIONAL HARBOR FOR HEADQUARTERSINITIATIVE 9: HOSTING OF CENTRAL AND REGIONAL OFFICES OF INTERNATIONAL ORGANIZATIONS


Creation of the city’s new high-quality business center (“Kyiv City”)

already started 4Q 2014*

Development of an international business promo-tion program 1Q 2012 4Q 2012

Simplification of the regulatory framework for foreign companies 1Q 2012 2Q 2013

Launch of an information campaign for interna-tional corporations 1Q 2012 4Q 2012*

Holding of investment forums 1Q 2015 implemented annually


WHY IS THIS IMPORTANT?Incentives for international companies to locate their im-

portant central and regional functions in the city cover one or several scenarios for their presence: • Location of the central or regional headquarters

• Location of one of the divisions (functions) of an interna-tional company

• Location of the administrative center (the back office)

The large-scale hosting of international companies will lead to:• Creation of a large number of new workplaces and higher

competition in the labor market

• Experience sharing in the local business community, devel-opment of innovations

• Improvement of Kyiv’s status on the international arena, includ-ing its status of a city attractive for business and investments

• Improvement of the city’s infrastructure and, in a long-term perspective, the city’s education quality

• Increase in the city’s budget revenues


Kyiv already has a number of considerable competitive ad-vantages for the hosting of regional headquarters and separate functions of international companies. They include the follow-ing advantages:• The level of the employers’ social responsibility is lower than

in the Czech Republic and Hungary (see Table 3)

• Well-educated and relatively cheap (considering the produc-tivity of labor) labor force

• Convenient geographical location, well-developed transport communications and a visa-free regime for the citizens of most countries

• The relatively high level of security, the low crime rate in the context of crimes against human health and life

• A visa-free regime for a great many countries, direct air routes to most European countries (a total of over 90 regular direct air routes compared to 93 in Prague)

However, despite its advantages, Kyiv has to demonstrate to international companies the stability, consistency and per-manency of its intentions to develop into a modern city with the high level of business culture. An important signal in this context will be the construction of a modern business center with the high-class office infrastructure (“Kyiv City”). For this purpose, the respective territory will be selected (in accor-dance with the principle of dispersion of city activity centers laid down in the respective strategic initiative), a tender will be held for the development of the concept among recognized architectural bureaus in accordance with state territory plan-ning and development standards, developers and investors will be engaged.

Apart from this important project, the city will need to rem-edy some series drawbacks, in particular it will have to: • Simplify the approval system, as well as procedures for the

registration and conduct of business

• Create a simplified and transparent procedure for granting facilities for reconstruction and land plots for construction

• Ensure the required capacity and reliability of the engineer-ing infrastructure

For further promotion of business, a system of preferences and benefits will be developed both for specialized sectors (within the framework of the respective strategic initiative for the development of competitive cluster) and for international business which will transfer significant functions to the city in general.

Infrastructure-related and regulatory changes will become the foundation of a long-term information campaign about Kyiv’s advantages for international business which will con-vince corporations of the city’s attractiveness.

1. An effective social burden on employers (social deductions for workers) based on a four-level company model and the following number of workers: Level 1: 1 person, salary – 15,000 euros; 2: 6 persons, salary – 7,500 euros; 3: 25 persons, salary – 2,500 euros; 4: 65 persons, salary – 1,000 euros. In all countries, except Ukraine, the 4th-level salary is 185% higher.

CountrySalary level

for junior-level workers

Tax burden on the employer1

Ukraine 36 27%

Russia 60 14%

Hungary 77 27%

Poland 94 14%

Czech Republic 100 34%

Table 4. Salary levels and tax burdens in compared countries1

CITY GOALS

Innovative

Open for business



Unique Livable

PRIORITIES BROKEN DOWN BY CITY DEVELOPMENT SECTORS

33

THE CITY’S ACTIVITIES WILL BE IMPROVED AT THE EXPENSE OF PRIORITY SECTORSCITY DEVELOPMENT SECTORS

WHY EXACTLY THESE PRIORITIES?• Improvements in these sectors will secure the foundation for

the city’s activities and facilitate systemic improvements in the quality of life

• Projects to be implemented in these sectors will cover a very wide range of population groups and will have most sig-nificant effect on Kyiv residents’ economy and comfort in a long-term perspective

HOW THESE SECTORS DIFFER FROM THE “BIG MOVES”? • Unlike the “Big moves”, the sectors focus on individual in-

dustries, the management functions for which have already been formed at the local administration and where strategic tasks can be implemented with the help of the existing mechanisms, but this will require stricter control

• Although certain individual tasks are associated with both the “Big moves” and the sectors, a considerable number of measures, which are critically necessary for the city’s quality activities, are not reflected in the key strategic initiatives. They are the focus of this section.

EDUCATIONSOCIAL PROTECTION

AND SAFETYLABOR MARKET

AND EMPLOYMENT

ECOLOGY AND ENVIRONMENTAL SAFETY

TOURISM HEALTHCARE

ECONOMIC DEVELOPMENT, PRIVATE ENTREPRENEURSHIP AND INVESTMENTS

TRANSPORTENGINEERING INFRASTRUCTURE

AND UTILITY SERVICES

34

ECONOMIC DEVELOPMENT, PRIVATE ENTREPRENEURSHIP AND INVESTMENTSSECTOR 1

VISION OF FUTURE SITUATION IN THE SECTOR GROWING ECONOMY WITH PARTICULAR FOCUS ON THE INDUSTRY WITH HIGH ADDED VALUE, SMALL AND MEDIUM-SIZE BUSINESS AND THE CITY’S FAVORABLE INVESTMENT CLIMATE

Advantages

• GRP per capita and real GRP growth are higher than average for the country (the growth rate is 3.2% higher than in 2004-2009)

• Center of capital investments (Kyiv receives 34% of Ukraine’s FDIs)

• Service-oriented economy (services account for 83% of the GRP)

• Large market

Disadvantages

• A perceptibly smaller share of SME in the GRP structure as compared to the global level

• According to its GRP and FDIs per capita indicators, Kyiv obviously lags behind other Eastern European capital cit-ies used for comparison purposes

• Unfavorable regulatory environment

MAIN FACTS AND TASKS OF STRATEGIC PLAN

Historically, Kyiv’s economy has been developing more dynamically than the national economy (on average, the real GRP growth rate is almost two times higher, while the GRP per capita indicator is almost three times higher). Kyiv accounts for 19% of Ukraine’s GRP, 18% of the country’s retail sales and 23% of all construction works. The struc-ture of Kyiv’s economy mainly consists of service sectors (83%), such as finance, trade, real estate transactions and business services. Now, Kyiv accounts for one-fifth of the entire national economy.

At the same time, in the context of its GRP per capita indicator, Kyiv lags behind the other cities used for comparison purposes. In 2010, Kyiv’s GRP per capita stood at 14,200 euros, which is 1.9 times lower than in Prague and 1.5 times lower than in Moscow and Warsaw.

One of the city’s key strategic tasks is the improvement of its population’s economic welfare, and in particular the twofold in-crease in its GRP per capita indicator. In order to achieve such an ambitious goal, it is necessary to activate all GRP growth opportu-nities, especially private entrepreneurship and investments.

15,6%

43,4%

16,6%

24,4%Prague 27,2

Moscow 20,9

Warsaw 20,9

Budapest 14,3

Kyiv 14,2

St. Petersburg 13,60%

2009

Real estate, business services

Finance

Trade, repairs

Others100%

50%

Fig. 9. GRP per capita,EUR ’0001

Fig. 10. GRP structure, %

KYIV AS A CITY OF ENTREPRENEURSHIPEntrepreneurship is considered to be the foundation of sus-

tainable economic welfare and secures a considerable portion of jobs and public welfare. In EU countries, small business entities account for 98% of the total number of enterprises and more than a half of the total jobs. Their contribution to the economy exceeds 40%2. In Ukraine, small business entities account for some 47% of the total number of enterprises and 36% of the

total workplaces. At the same time, the small business accounts for less than 15%3 of the city’s total product sales. These data may reflect both the low productivity level of small enterprises and the existence of a large shadow sector. One way or the other, the figures demonstrate the sector’s strong potential that must become one of the driving forces of GRP growth.

Today, private entrepreneurship faces a lot of problems in the context of its interaction with the city: a complicated regulatory and approval system, endless inspections and other formalities hamper business development and force some of the entrepre-neurs to retreat to the shadow sector.

13%

31%

25%

18%

19%

22%

17%

21%

29%

34%

2%11%

66%

Employment rate

Employment rate

SME contribution, Kyiv SME contribution, EU 27

GRP

Small

Small

Medium-sizeMedium-size

MicroMicro

GRP

67%

49%

59%

Fig. 11. SME’s share in Kyiv’s economy as compared to average European indicators

To achieve its defined stable economic growth objective, Kyiv has to create a favorable business enabling environment. In this context, main efforts should be focused on the following tasks: • Simplification of administrative procedures relating to the open-

ing, conduct and closing of business, as well as to the transfer of premises located on the ground floors in residential buildings from the residential fund to the non-residential fund (provided that a separate entrance is built and compliance is ensured with sanitary, environmental, fire safety and other standards).

• Improvement of the single permit center to increase the ac-cessibility and the quality of the city authorities’ services for businesses, the opening of several new centers.

• Creation of a special service for support of small and medium-size businesses at the local administration with decentralized represen-tative offices on the level of the city’s districts which will advise small and medium-size business representatives and collect district communities’ comments concerning entrepreneurial activities.

35

ECONOMIC DEVELOPMENT, PRIVATE ENTREPRENEURSHIP AND INVESTMENTSSECTOR 1

PROMOTION OF INVESTMENTSDespite the growing dynamics of cumulative direct foreign in-

vestments, Kyiv lags behind the comparison group of cities with its FDI per capita indicator. Projects with a considerable share of foreign and local investments are only occasional exceptions from the standard practice of budget financing. Meanwhile, it is investments that may become the driving force of the city’s economic growth, as this happened in CEE countries.

In order to create a favorable investment climate, Kyiv intends to establish effective cooperation with the representatives of both foreign and local investors. Apart from the urgent problems which require im-mediate solution (such as the transparency of land relations, the trans-parency and speeding-up of formal procedures), the city must launch the process of gradual simplification and improvement of its regulatory environment in cooperation with state regulatory authorities.

Budapest

Prague 39,7

42,5 5,6

201020082006

3,62,5

1,61,2

0,9

Warsaw 15,4

Kyiv 5,6

Moscow 1,6

St. Petersburg 0,8

Fig. 12. Cum FDIs per capita, EUR ’000

Fig. 13. Cum FDIs in the city’s economy per capita, EUR ’000

An important step will be a change in the process of working with investments:

• Change in the city’s investment planning process (inclusion in the investment program of not only budget-financed projects, but also of projects with mixed forms of financing, such as PPP, co-financing, etc.)

• Change in the performance assessment system which will be based not on the result of the use of budget funds, but on the implementation of the investment program in general, including in the context of the private sector

• Enhanced transparency of land relations in order to remove administrative barriers and lower the level of corruption in mat-ters relating to the allocation of land plots

• Improvement of the quality of the preparation of investment projects through the implementation of new standard forms, change of the role of engaged organizations

• Improvement of the coordination of the implementation of projects through the appointment of responsible persons from the management vertical, implementation of a project-based approach to management

• Active participation of private sector entities in the plan-ning of the city’s investment program, including through the holding of joint investment forums and other events

Another provision of the Strategy will secure the concurrent process of strengthening the local economy and its investment potential. In a log-term perspective, the formation of a compre-hensive local economic program will greatly affect the competi-tive strength of the local economy development.

MAIN ACTIVITIES AND TASKS OF TARGET PROGRAMSACTIVITIES OFFERING IMMEDIATE RESULTS• Development a new investment process within the framework

of the city’s executive authorities

• Improvement of the function and the role of the local invest-ment agency responsible for the improvement of the invest-ment climate, promotion of the city’s investment potential and support for its investment projects

• Conduct of an inventory and creation of the city’s register of investment projects

• Holding of the first Kyiv Investment Forum in March 2012 with the participation of local and international investors

LONG-TERM DEVELOPMENT• Revision of administrative procedures, cancellation of unnec-

essary procedures and simplification of the other procedures

• A radical upgrade of the program for the development of small and medium-size business

• Development of a system for interaction between the entre-preneurs and the city on the basis of e-government platform

• Setting-up of special services for support of entrepreneurs with representative offices in every district of the city

• Creation of the geo-information system for investors and busi-ness representatives

• Regular holding of the Kyiv Investment Forum, as well as other forums for interaction between government and private sector representatives

Indicator Measurement unit Current value4Target value

2015 2025

Economic welfare indicator

Average annual real GRP growth % per annum 5.75 - 6.54

Indicators not included in the Liveability Index

Nominal GRP per capita6 UAH ’000 per resident 61.9 164.0 401.9

Cumulative direct foreign investments per resident ’000 per resident 5.6 14.7 30.8

Annual capital investments UAH ’000 per resident 5.2 11.2 16.8

Share of micro and small enterprises in the city’s total product sales % 15 20 35

1. In terms of the parity of the purchasing power2. According to Eurostat data for 20083. According to data available from the State Statistics Service of Ukraine for 20104. The current values of the economic welfare indicator are given for 2009 (for comparison with other cities); the current values of the indicators that were not included in the liveability index are given for 20105. The current value represents the average growth in 2004-2009, while the target value represents the average growth in 2010-20256. Subject to the projected average annual deflator of 6.1% in 2010-2025

KEY DEVELOPMENT INDICATORS

36

PRIORITY MUST BE GIVEN TO DEVELOPMENT OF HI-TECH INDUSTRIESTHE CITY’S ECONOMY GROWTH SECTORS1

PROJECTED VOLUMES AND STRUCTURE OF KYIV’S GROSS REGIONAL PRODUCT BY TYPES OF ECONOMIC ACTIVITIES FOR A PERIOD OF 2011 TO 2025A SUMMARY OF CONCLUSIONS MADE BY THE INSTITUTE FOR ECONOMICS AND FORECASTING AT THE ACADEMY OF SCIENCES OF UKRAINE

1 Research objectives

The Institute for Economics and Forecasting at the Academy of Sciences of Ukraine has prepared a research for forecasting the city’s economic develop-ment until 2025 and identifying its growth sectors. The research resulted in the determination of the projected volumes and structure of Kyiv’s GRP as broken down by separate industries.

2 Research methods

The projected GRP indicators and its structure were identified on the basis of the method of gradual linear approximation with subsequent adjustments for effects of labor and capital factors.

The following two scenarios were considered: the basic scenario (the average annual GRP growth rate of 6.9% in 2010-2025) and the optimistic scenario (the average annual GRP growth rate of 7.2% in 2010-2025).

3 Conclusions

The main conclusion is that Kyiv’s most promising area for development is its hi-tech component. This will ensure high population growth and employment rates.

The following sectors must become the growth sectors:• Engineering and IT

• Precision engineering and electronics

• Pharmaceutical production

• Food industry

• Science, education and culture

• Telecommunications

• Trade and services

80 80

85 85

90 90

95 95

100 100

105 105

110 110

115 115

120 120

125 125

116,8 116,8

2004 20042005 20052006 20062007 20072008 20082009 20092010 20102011 20112012 20122013 20132014 20142015 20152016 20162017 20172018 20182019 20192020 20202021 20212022 20222023 20232024 20242025 2025

105,8 105,8

110,7 110,7

119,7 119,7

104,4 104,4

81,7 81,7% a

s com

pare

d to

the

prev

ious

yea

r

% a

s com

pare

d to

the

prev

ious

yea

r

Kyiv’s GRP (actual and projected) Kyiv’s GRP (actual and projected)

Average value: 106,9 Average value: 107,2

102,7 102,7

111,5 111,6110,3 110,5109,3 109,5108,5 108,7107,9 108107,3 107,5106,8 107106,4 106,6106,0 106,2105,6 105,9105,3 105,6105,1 105,4104,8 105,2104,6 105,0104,4 104,8

Fig. 14. Projected values (according to the basic scenario)

Fig. 15. Projected values (according to the optimistic scenario)

37

TRANSPORTSECTOR 2

VISION OF FUTURE SITUATION IN THE SECTOR AN ACCESSIBLE, RELIABLE, CONVENIENT AND MULTIMODAL TRANSPORT SYSTEM

Advantages

• All types of public transport are developed

• Public transport is now the main means of travel for more than a half of Kyiv’s population

• Public transport is now the cheapest as compared to the other cities from the comparison group

• Large sales market

Disadvantages

• The infrastructure facilities, which was mainly built back in Soviet times, and most of the vehicles need to be replaced

• The development of city with the single center, the population growth and the motorization increase have exhausted the capacity of the infrastructure

• The city’s transport enterprises are in the red and are not attractive for investors

• There are no biking infrastructure facilities or pedestrian areas in densely-populated districts


Kyiv has all types of city transport. Public city transport is used by a considerable number of passengers and potentially stable cash proceeds. Disproportions in the development of the city and the construction of its transport infrastructure, the orientation of all transport flows to the single city center and the permanently low level of investments have resulted in the territorial inaccessibility of certain types of transport (ap-proximately 20% of the city’s residents do not have access to the underground railway) and the exhaustion of the capacity of its fleet and infrastructure, and therefore, the excessive load during rush hours (see Fig. 16).

Unde

rgro

und

railw

ay s

tati

ons

Unde

rgro

und

railw

ay c

ross

ings

Unde

rgro

und

railc

ars

Tram

s

Buse

s

Trol

leyb

uses

Road

s

114% 125% 120%

175% 175%200%

150%

0%

100%

200%

Fig. 16. Transport and infrastructure load during rush hours1

Large business centers lack 3/42 of the required parking lots, while the alternative transport infrastructure (bicycle and pedestrian routes) is either reduced in the interests of motor transport or is altogether lacking.

A serious threat is posed to the reliability and predictability of public transport by the level of deterioration of its fleet and infrastructure. This situation worsens its reliability and poses a threat to the safety of its passengers. Thus, 80% of the underground railcars and 40% of the underground escalators

have exceeded their service life, while 33% of the trolleybuses, 82% of the trams, 20% of the tram rails and 19% of the cables are subject to retirement. 85% of the roadway covering need to be repaired, and 74% of the road signs need to be replaced. The worn-out roadway covering also considerably increases the risk of traffic accidents (see Fig. 17).

Fig. 17. Kyiv’s traffic accident rate is one of the highest

Moscow

1,21,21,62,33,03,2

PragueSt. Petersburg Kyiv

Number of victims per 1 sq. km. of the roadway3

Budapest Warsaw

The convenience of Kyiv’s transport does not comply with the world’s best standards. However, the public transport is rel-atively cheap (cost of travel vs. hourly wage) compared to the other cities from the comparison group. Thus, for example, the relative cost of an underground railway ride is 10% (Moscow – 14%, Budapest – 43%). Out of a total of 49, only three under-ground railway stations are accessible for disabled passengers, while the low-level floor is available only in 40% of the fleet of buses and trolleybuses and in the express tram cars.

The near-term strategic task will be improvement of the transport situation in the city. The current average home-to-work trip duration indicators must be reduced twofold, from 60-90 min. to 30-45 min. However, in order to really ensure empty roadways and fast travel, Kyiv needs to get comfortable and cost-efficient public transport and develop alternative means of transportation to re-distribute the city’s passenger flows (see Fig. 18).

The targeted structure will be achieved through the sup-ply of high-quality public transport and alternative means of travel, as well as regulatory and economic incentives for a reduction in the use of private motor cars3.

38

TRANSPORTSECTOR 2

Fig. 18. Changes in the Kyiv city transport use structure

2025

2010 52%

50%

48%

40% 10%4

PUBLIC TRANSPORT AS THE KEY PRIOTITYThe accessibility of city transport will be secured with a particu-

lar focus on rail transport and express buses. The situation with the accessibility of public transport in Holosiivskyi District and Desnianskyi District will be improved through the construction of the fourth underground railway line (Zhuliany-Troieshchyna), the express tram line Troieshchyna-Osokorky and additional crossing knots and stations. The fleet will be upgraded, additional cross-ings and exits will be built at the most heavily loaded stations, new underground railway lines will be designed to accommodate 6-7-railcar trains. The underground railway will get symbolic or English-language navigation facilities and Internet coverage. The surface transport will be reconstructed with a particular priority to be given to the development of express bus routes and the cre-ation of a fleet with a larger capacity and wider doors. Particular attention will be given to the use of trolleybuses (in view of the development of a branched overhead system) in other than main networks as an environmentally-friendly type of transport, with un upgrade of the fleet with the vehicles with a self-contained power supply system.

The improved reliability and predictability will be achieved through the effective work of operators, which, in its turn, will be achieved through the division of operating and strategic functions between the city administration and the city man-agement company, in particular:• The Kyiv City State Administration will focus its efforts on

the regulatory system (tariffs with a wide range of options, general requirements)

• There will be a single management company for exercising traffic control and managing transport infrastructure assets to identify the priorities and prepare technical maintenance and repair schedules, as well as dealing with other manage-ment-related matters

• Operators (currently represented by separate utility com-panies) will focus on daily matters (infrastructure mainte-nance, daily exploitation of the fleet and the immovable property base)

The management company will be guided in its operations by the clear understanding of the current and prospective sup-ply sites (residential districts) and demand sites (workplaces) in the context of transport flows, subject to the city and regional development plans – the transport scheme is to be developed every three years. Judging from Kyiv residents’ com-ments regarding this Draft Strategy, the imbalance between the existing transport flows and the supply of transport services is the most frequent comment (see Fig. 19).

Fig. 19. Kyiv residents’ most frequent comments regarding the Transport section of the Draft Strategy

Bicycle stops

Standardization of fixed-route minibuses Route changes

Street navigation

Underground railway in Troieshchyna District

10% 13% 13% 14% 51%

The improved comfort level of the surface public transport will be achieved through its easy accessibility for disabled pas-sengers. A single universal ticketing and fee collection system will also be created.

PRIVATE TRANSPORT: MORE CARS, BUT EMPTIER ROADS

Given the existing tendencies, it is impossible to deny that the number of private cars will continue to grow in the city. The projected motorization level will increase from 254 cars per 1,000 residents to 400 cars per 1,000 residents. To ensure the safety and comfort of the car transport, it is first of all nec-essary to optimize the use of the existing road infrastructure (for example, by creating an automated traffic control system) and to work actively to create the new roadway covering. The new road infrastructure will be created using the existing experience in the optimization of car flows: full-speed lanes, “pockets” for public transport, bicycle lanes, reserve lanes for turning left. However, the existing city development rate and some other barriers will get in the way of the expansion of the infrastructure to the level that will be able to meet the demand for personal car movements.

In the given circumstances, the only way to solve the city’s traffic problem will be to facilitate a reduction in the use of cars in the same manner in which this is done in most Euro-pean capitals.

Meanwhile, according to the results of a poll conducted among Kyiv residents during the development of this Strategy in February-March 2011, most residents are ready to refrain from using their cars provided that the alternative in the form of high-quality public transport is available.

Fig. 20. Kyiv residents are ready to welcome transport reforms

…refrain from using their cars often, provided that comfortable and cheap public transport is available

…have driving and parking in certain parts of the city restricted, provided that this will lead to a reduction in the number of traffic jams

…pay for using the roads, provided that their quality will improve

72%

64%

46%

Those who agree to…

Now, the average city resident uses his own car three times a day, and therefore, the city’s task is to create the necessary

39

TRANSPORTSECTOR 2

conditions for the reduction in the number of such trips to only 3 trips. This can be achieved through: • Introduction of high-quality alternatives in the form of

comfortable and accessible public transport (including the construction of intercepting parking lots near transport nodes outside the city center)

• Creation of the alternative transport infrastructure (espe-cially in the context of short-distance trips)

• Implementation of regulatory and economic incentives to restrict the use of personal cars (for example, by improving city center parking costs and procedure)

Fig. 21. Scenarios for reducing the number of traffic jams through the regulation of the use of private cars

Aver

age

daily

num

ber o

f priv

ate

car t

rips

Preferred scenario

Pessimistic scenario

Traffic load on the roads, %

3,5

3,0

2,5

2,0

1,5

1,050% 100% 150% 200% 250%

Empty roads

Traffic collapse

2010

2025with no regulation

of the use of private cars

2025with the regulation

of the use of private cars

Apart from that, the transport infrastructure overload will be reduced due to the dispersion of daily transport flows following the creation of separate specialized city centers (the business center, the administrative center) outside the historical and cultural center.

ALTERNATIVE MOBILITY – AVAILABILITY OF OPTIONS

The increase in pedestrian movements and the implemen-tation of the bicycle infrastructure (in the areas with the respective relief) will, first of all, help to create an alternative to cars in the context of short-distance travel and to solve the “last mile” problem in residential districts. The respective efforts will be focused on the achievement of the following objectives:• Improvement of the pedestrian infrastructure, construction

of high-quality pedestrian zones in residential districts

• Construction of the bicycle infrastructure in the pilot city district, with its further expansion into Kyiv’s other districts (in particular, construction of bicycle roads, bicycle lanes, bi-cycle priority streets, crossings, intercepting bicycle parking lots in transport nodes)

• Future creation of a safe, convenient and integrated network of visual (bicycle ways, bicycle lanes, bicycle parking lots) and non-visual (for example, traffic control on certain streets with priority given to bicyclists) components of the bicycle infrastructure throughout the city.

IMPLEMENTATION TOOLSThere are two main tools for increasing the supply of surface

transport:• Measures which require relatively small capital expenses and

which are implemented with the help of regulatory changes:

|| optimization of traffic flows (for example, one-way streets, separation of private car routes and public transport routes along different streets)

|| separate lanes for public transport

|| strict regulation of car parking in the city’s streets

|| taxi standardization

|| replacement of fixed-route minibuses with the buses with a larger capacity and wider doors

• Measures which require considerable capital expenses to build the lacking infrastructure facilities (creation of new business and administrative centers at a distance from the existing historical and cultural zone, development of the underground railway infrastructure, surface transport routes, express tram and electric train routes, replacement or up-grade of the existing fleet, parking lots).

The city is capable of implementing traffic flow optimization projects using its own resources. However, the construction of the lacking infrastructure is an extremely difficult task without the engagement of various forms of private capital. Thus, for example, major infrastructure projects (new city centers) will be developed with the participation of a number of investors in the context of relevant strategic initiatives. PPP arrangements will be used to build new underground railway lines and sta-tions, as well as express tram tunnels and lines. Private-financ-ing-only schemes will be used to build parking lots, upgrade transport stop facilities, upgrade the private operators’ fleets, and create bicycle parking lots.

MAIN ACTIVITIES AND TASKS OF TARGET PROGRAMS ACTIVITIES OFFERING IMMEDIATE RESULTS• Development of a complex city transport scheme

• Optimization of traffic flows using:

|| one-way streets

|| separate lanes for public transport

|| shifts of the working hours at state institutions, etc.

• Improved street navigation processes and transport stop facilities

• Taxi standardization

• Spin-off of the management company from the Kyiv City State Administration

• Creation of an integrated city traffic web-portal with up-dated information about routes and timetables, as well as a search tool for optimal routes to the destinations

40

TRANSPORTSECTOR 2

LONG-TERM DEVELOPMENT• Improved accessibility of the underground railway (construc-

tion of the 4th underground railway line)

• Implementation of an automated traffic control system and a city traffic flow modeling system

• Increased capacity of the underground railway (construction of additional passages and exits at stations)

• Upgrade of the underground railway and surface transport fleet and infrastructure

• Gradual reduction in the street parking, construction of intercepting parking lots

• Video surveillance on motorways with an automated offence control system

• Developed pedestrian and bicycle infrastructure, starting with the pilot project to be implemented on the Left Bank

• Improved accessibility of the road infrastructure (construc-tion of new roads / junctions)

• Complex covering for the city’s pedestrian infrastructure


2015 2025

Liveability Index

Length of public transport routes km per 10,000 persons 9.6 11.6 16.1

Density of the road and main road network5 km per sq. km. 2.1 2.35 2.8

Number of traffic accidents victims persons per km 2.3 1.8 1.2

Additional indicators

Passenger flows broken down by types of transport Public/private/ alternative 52/48/0 51/45/4 50/40/10

Average speed of surface public transport and car transport during rush hours6 km per hour 23 30 40

Total area of the roads that require repairs % 85 67 <15

1. Estimations made by the Strategy Development Group on the basis of information provided by the respective department of the Kyiv City State Administration.2. The standard is 5-8 parking spaces per 100 sq. m. – DBN 360-92.3. Number of victims – number of injured and dead, 2009.4. The percentage has been calculated using the projected gender-age population structure, daily passenger flow volumes, bicycle sales dynamics, average 7 months per year

suitable for riding a bicycle.5. Taking into accounts forests, vegetation, water surfaces, developed and industrial territories.6. According to the information available from the SMIlink analytical center (Yandex.Maps).7. The current values of the Liveability Index are given for 2009 (for comparison with other cities); the current values of the additional indicators are given for 2010.


41

ENGINEERING INFRASTRUCTURE AND UTILITIESSECTOR 3

VISION OF FUTURE SITUATION IN THE SECTOR RELIABLE, HIGH QUALITY SYSTEM OF UTILITIES PROVISION

Advantages

• Sufficient heat producing capacities

• Relatively low energy consumption

• Satisfactory availability of water pipelines

Disadvantages

• Drastic wear of engineering infrastructure

• Depletion of distribution capacities (heating, power, sewage disposal networks) mainly due to intensive real estate development in the city

• Chronic arrear of infrastructure development in compari-son with territories development pace

• Significant shortage of funds for capital repairs and investments in the infrastructure proprietor – the city.

• Inefficient residential property fund management and maintenance system which does not perform its functions.


The city infrastructure is in a very difficult condition: water drainage system (including the city drainage channel and Bort-nychi sewage treatment station) is almost completely worn out and poses an ecologic threat; heating networks are half worn out which fact causes more than 50 breakdown a day (in aver-age during the heating season). The number of heating mains accidents is growing by approximately 6 per cent annually. The accidents cause serious harm to the road facilities.

Most of the problems are connected with insufficient fund-ing as the water supply and sewage disposal and heating tariffs do not cover even operational expenses leaving alone the investment component.

100%

53%

60%

Fig. 22. Share of operational expenses not covered by tariffs for the respective services.

Water supply

Heating

Power supply

Systematic insufficient funding of infrastructure networks causes significant resources losses during transportation and distribution, for example in water supply networks 1/5 of water is lost, in heating networks – 17 per cent of heat and in power supply networks 11 per cent of electric energy is lost.

Insufficient capital projects funding dramatically influences residential property fund of the capital: 1/6 of all buildings in the capital is worn out more than 40 per cent. One third of elevators is in emergency state, 1000 elevators become unsafe each year.

The condition of the sector requires immediate comprehen-sive actions. The principal strategic task is to provide the city with appropriate, affordable, high quality utility services.

Fig. 23. Water losses in the municipal water supply system, per cent

Moscow WarsawPrague Budapest St. PetersburgKyiv

21 2018

11 11

5

The work will be focused on three spheres:• Reconstruction and modernization of the existing capacities

and networks.

• Improvement of the residential property fund condition and quality of its maintenance.

• Development of facilities and infrastructure network.

RECONSTRUCTION AND MODERNIZATION OF THE MUNICIPAL CAPACITIES – FIRST-RATE NETWORKS

Now the reanimation of the municipal infrastructure requires significant amounts (for example, EUR 1 billion – for water supply and sewage disposal facilities, EUR 1.5 bil-lion - for heating systems), and timeframes to complete the comprehensive reconstruction are 10-15 years. Thus the city has to immediately change the approach to the infrastructure facilities support and stop relying only on its own budget resources.

Within the World-class infrastructure strategic initiative the situation should be resolved by attracting significant invest-ments in the infrastructure through the following:• Cooperation with the existing private operators, forming

of high quality economic and normative stimuli for active works aimed to the network modernization.

• Engagement of grants and privileged loans from internation-al organizations for commercially unattractive but socially important projects.

42




2015 2025

Liveability Index

Length of power distribution networks Km/1000 persons 4.2 5.0 9.4

Density of power distribution networks Km/sq.km 13.9 16.7 40

Length of water pipelines Km/1000 persons 1.5 1.7 3.6

Density of water pipelines Km/sq.km 5 5.7 15.3

Length of sewage disposal networks Km/1000 persons 0.9 1.2 3

Density of sewage disposal networks Km/sq.km 3.1 4.0 12.8

Percentage of water losses from total consumption Per cent 20 15 5

Indicators not included in the liveability index

Transformer substations wear Per cent 41 25 <10

Heat networks wear Per cent 52 30 <15

Desnyanska and Dniprovska intake stations wear Per cent 75 45 <10

Percentage of houses worn more than 40 per cent Per cent 16 10 <5

1. Current values from liveability index as of 2009 (with the purpose of comparison with other cities); current values of additional indicators are as of 2010.

Priority directions for investments are the following:• Reconstruction of the sewage disposal facilities and waste

treatment station;

• Modernization of the city’s heating networks and heat substations;

• Repairs of intake stations and selective modernization of critical components of water supply networks (for example, repairs of shutoff and control fittings).

Subsequently infrastructure networks will be transferred to specialized private operators through PPP mechanisms with strict regulation of the investor’s obligations and tariff regula-tion.

IMPROVEMENT OF THE RESIDENTIAL PROPERTY FUND CONDITION AND QUALITY OF UTILITIES – COMFORTABLE CONDITIONS AND UTILITY EXPENSES SAVING

Improvement of the residential property fund condition via carrying out comprehensive thermal modernization is one of the key tasks within the Improvement of Kyiv’s Energy Ef-ficiency Initiative. Systematic works will be aimed at creation of regulatory conditions and attraction of private investors to houses reconstruction and modernization projects which will be able to return the invested funds at the expense of achieved energy savings.

Moreover, the works will also be aimed at economic con-sumption as Kyivans are lagging behind their neighbors with respect to resources saving culture (for example Figure 24)

Fig. 24. Comparable water consumption is the most inefficient in Kyiv

Moscow KyivPrague Budapest St. PetersburgWarsaw

41 4759

86Water consumption, sq.m./person/year

8171

Economic consumption will be closely connected with dis-tribution of building and apartment meters which would allow the citizens to directly manage their utilities expenses. The same will be facilitated by gradual transfer of residential build-ings and surrounding territories for management and mainte-nance of the inhabitants themselves (via such structures as apartment building co-owners association). Such structures would allow the local community to control expenses, quality of works and improvement of their territories on its own. At the moment, notwithstanding their advantages and transpar-ency, these structures have certain technical complicacies and legislative drawbacks which must be corrected within 2-3 years. The management structures market will be developed and structured to so that it could propose high quality services on residential property fund and surrounding territories main-tenance.

But while management structures are not widely spread and 73 per cent of the city buildings are serviced by housing and public utilities the city must be provided with high quality servicing by the respective public services. Thus within the E-government Initiative it is planned to centralize monitoring service which would allow to improve the quality of servicing, prioritize problematic areas and determine zones requiring prompt repairs attracting budget funds, improve prompt call

43


response.Thus the principal tasks of the city within the residential

property fund improvement goal will be the following:• Formation of the legislative basis and attraction of private

investors to the buildings thermal modernization projects (Energy Efficiency Initiative).

• Promotion of building and individual resources and energy metering systems (Energy Efficiency Initiative).

• Improvement of regulatory conditions and reducing obstacles for apartment building co-owners associations establishment.

• Centralization of monitoring services for servicing the mu-nicipal residential property fund (E-government Initiative).

• Setting priorities for problematic areas and selective financ-ing of critical repairs works.

ENGINEERING INFRASTRUCTURES DEVELOPMENT – LONG TERM PRIORITIES

The planned economic growth, attraction of international companies and development of local business will significantly increase strain on the existing municipal infrastructure. While the availability of water supply networks (4.9 km/sq. km.) and heat generating capacities (3.7 Gcal-hr/person) is on adequate level with respect to the comparison cities, the availability of power supply distribution (13.8 km/sq.km) and sewage disposal networks (3.1 km/sq.km) is already lagging behind due to the disproportion between the infrastructure facilities construction and rapid city development.

Fig. 25. Availability of certain engineering infrastructure, km/1000 persons

Moscow

Moscow

Moscow

Kyiv

Warsaw

Kyiv

Prague

Prague

Prague

Budapest

Budapest

Budapest

Warsaw

Kyiv

St. Petersburg

St. Petersburg

St. Petersburg

Warsaw

3,3

1,0

0,7

9,4

3,6

3,0

9,2

2,0

9,0

1,5

7,9

1,4

1,1

4,2

1,2

0,9

Pow

er li

nes

Wat

er s

uppl

y ne

twor

ksSe

wage

dis

posa

l net

wor

ks

2,11,8

The said measures aimed to the reconstruction of the existing networks and promotion of the economic resources consumption would allow to use existing facilities more ef-ficiently.

Large-scale city development projects (for example con-struction of administrative and business complexes within the City Center Nearby Initiative will be focused on the use of already existing systems, secondary development with obliga-tory modernization of subordinate networks.

The suggestions will be developed with regard to construc-tion standards correction both to the extent of qualitative energy saving characteristics (within the Energy Efficiency Initiative) and obligatory reconstruction of subordinate net-works.

But subsequently the networks development should become a priority task of the city and its partners (private operators, representatives of specialized oblast and state structures). Within the framework of close cooperation there should be de-veloped acceptable mechanisms to stimulate the development and enhance capacities of infrastructure objects, attraction of foreign grants and investments, promotion of solutions on fair tariff regulation and state-level modernization projects.

MAIN ACTIVITIES AND TASKS OF TARGET PROGRAMS ACTIVITIES OFFERING IMMEDIATE RESULTS• Drafting of project and attraction of funds to modernize

water supply and sewage disposal systems.

• Modernization of capacities of sewage collection and sewage treatment station reconstruction.

• Repairs of intake facilities and water supply networks.

• Preparation of project and transfer of power supply and heat distribution facilities to PPP.

• Bringing of water consumption standard of 330 liters/day down to the actual level of 235 liters/day.

• Creation of resource centers for citizens support within the framework of apartment building co-owners associations registration and management

LONG-TERM DEVELOPMENT• Improvement of legislative conditions and decrease of

obstacles for apartment building co-owners associations establishment.

• Creation of underground engineering networks planning map.

• Bringing the quality of water in compliance with the SanPIN standards.

• Development of funds attraction mechanisms and stimula-tion of the city infrastructure facilities development

44

ECOLOGY AND ENVIRONMENTAL SAFETYSECTOR 4

VISION OF FUTURE SITUATION IN THE SECTOR SUSTAINABLE DEVELOPMENT AND DECREASE OF ADVERSE EFFECT ON THE ENVIRONMENT

Advantages

• Significant number of green planting, municipal land-scape gardening system

• The level of emissions polluting the atmosphere is the lowest among compared cities

• CO2 emissions level is the lowest among the compared

cities

• Low level of rubbish generation

Disadvantages

• A heritage of non-functioning/dilapidated environmen-tally dangerous objects within the city boundaries

• Outdated capital assets of the functioning environmen-tally dangerous enterprises

• Exhaustion and shortage of the existing sanitary landfills for residential solid waste (RSW) utilization

• No control over green landscape level

• Air pollution increase due to the growing number of vehicles being the principal CO

2 emissions source.

MAIN FACTS AND TASKS OF STRATEGIC PLANSAFEGUARDING OF MUNICIPAL GREEN PLANTING

Kyiv had been historically developing as a green city. Kyivans take reasonable pride in this fact but lately due to unsys-temic city development the landscape vegetation areas have shrunken. Even now more that 50 per cent of the city territory are covered with green planting of different types1: there are 122 parks, 379 public gardens, 80 boulevards. The main task which the city faces with respect to landscape gardening is the classification of the existing green planting, improvement of functional qualities and development of systemic approach to future property development with minimal damage to the city’s vegetation:• Within the Dnieper Gem Strategic Initiative a development

concept will be created for a cascade of islands and riverside territories of the Dnieper, the city’s ecological center.

• Development of the program for comprehensive green zone of Kyiv and municipal landscape gardening standards which will be used to fix boundaries of city forests, woodland parks, hydroparks and parks where the development will be strictly controlled.

• Cultivation of vegetation on surrounding territories of the houses, especially in recent development areas.

• Simplification of procedures for determination of territories as public gardens or other forms of green zones.

• Improvement of the existing and development of the new culture and entertainment parks with possible transfer of certain park zones into concession with the purpose of infrastructure renovation with strictly limited conditions of usage.

DECREASE OF ADVERSE EFFECT ON THE ENVIRONMENT

The concentration of hazardous substances in Kyiv atmo-sphere is the lowest among the compared Central and Eastern Europe countries. Among the polluting substances carbon oxides prevail (65 per cent).Emissions of hazardous substances into the atmosphere grow by 6 per cent annually. CO

2 emissions

in Kyiv are also the lowest among the compared cities yet they are rapidly increasing – by 7 per cent annually.

Fig. 26. Air polluting agents emissions, ton/sq.km, 2009

Fig. 27. CO2 emissions

per year, kg/1 sq.km, 2009

Moscow Moscow1 285 57 502

20 802

19 829

19 404

18 801

12 446

712

538

474

434

333

Warsaw Warsaw

Prague Prague

Budapest Saint.-P.

Saint.-P. Budapest

Kyiv Kyiv

Low level of emissions is based on the fact that during the last twenty years Kyiv had significantly reduced industrial emissions. Main sources of pollution are motor vehicles (82 per cent), followed by power plants (<14 per cent). Thus the goal of hazardous substances emissions reduction requires focusing not only on improvement of industrial conditions but also on facilitation of the car park upgrade engaging modern technologies of filtration and fuel consumption efficiency (as for the moment these are Euro 4 and Euro 5 standards). Besides decrease of motor vehicle transportation and transfer to public and alternative transport according to the respective transportation sector programs will help to significantly reduce emissions into the atmosphere.

45

ECOLOGY AND ENVIRONMENTAL SAFETYSECTOR 4



2015 2025

Liveability Index

Dangerous substances emissions Tons/sq.km/yr 333 275 2502

RSW recycling share Per cent 5 20 40


Percentage of re-equipped systems of environmentally dangerous sewage disposal and waste water treatment facilities Per cent 15 45 75

Percentage of regenerated polluted territories Per cent 0 60 100

Share of the enterprises using ecologic and social management procedures (ISO 14000, EMAS) Per cent 4 45 50

Availability of public green zones Sq.m/inhabitant 16 18 20

1. All publicly available green belts, landscape and garden complexes, forests, limited use territories and countryside and gardening development.2. Target value of emissions of the substances polluting the air is calculated for 2025 assuming that other strategic initiatives have been performed (for example, upgrade of

the city power generation facilities, change of passenger flows in favour of public and alternative transport etc.) and preservation of the tendency to improve the charac-teristics of vehicle motors with regard to polluting elements emissions by 3 per cent per year.

3. Current values from liveability index as of 2009 (with the purpose of comparison with other cities); current values of additional indicators are as of 2010.

INCREASE OF THE CITY ENVIRONMENTAL SAFETY LEVEL

There still exist object in Kyiv which are extremely danger-ous for human life and health and environment. These are Radikal plant, Energiya waste incineration plant, HPP-5, HPP-6, Darnytska HPP, Ekostandart CJSC, Zakhid State Enterprise, Radon plant, Dniprovska and Desnyanska water supply sta-tions, residential solid waste (RSW) landfill No.5. Kyiv strategy provides for sanitizing of the most environmentally dangerous enterprises.

The relative volume of garbage generation and concentra-tion in Kyiv is among the lowest ones. At the same time only 5 per cent of RSW in Kyiv are recycled, which is much lower than in Warsaw and Prague, and the remaining 95 per cent are destroyed. The major part of garbage in Kyiv is utilized by burying at the landfills which are almost exhausted.

Recycling

Destruction

Fig. 28. RSW generation per person per day, kg

Fig. 29. Garbage utiliza-tion by methods, per cent

Moscow Kyiv3,6 5%

3,5 5%

2,3 5%

1,5 62%

1,2 81%

Warsaw Moscow

Prague Saint.-P.

Kyiv Warsaw

Saint.-P. Prague

Kyiv development strategy provides for the following:• Regular creation of incentives to limit garbage dumping on

landfills and transfer to such disposal methods as incinera-tion and recycling.

• Attraction of private capital for building of recycling facili-ties and provision of collection and removal services.

• Focusing on facilitation and control over the participants of garbage collection, removal and recycling market.

• Creation of infrastructure for separate collection and recy-cling of garbage engaging local and international private companies of the sector.

ECONOMY TRANSFER TO THE WORLD ECOLOGIC AND ECONOMICAL STANDARDS.

Economy transfer to the world ecologic and economical stan-dards would ensure systematic ecologic policy of the city and prevent further environmental pollution by the enterprises.

Accordingly Kyiv strategy is aimed at the creation of organi-zational, administrative and economical conditions for making the enterprises more environmentally friendly in such a way that would allow to increase the share of enterprises of all forms of ownership which work according to the ecologic and social management standards (ISO 14000, EMAS) and increase the share of products compliant with ISO standards. Besides, according to the purpose of Energy Efficiency Initiative Kyiv must ensure the fulfillment of the European 20/20/20 Pro-gram, including to the extent of greenhouse gases emissions reduction

MAIN ACTIVITIES AND TASKS OF TARGET PROGRAMS ACTIVITIES OFFERING IMMEDIATE RESULTS• Creation of systems for atmosphere condition control.

• Development of comprehensive Kyiv green belt program and municipal landscape gardening standards.

• Create conditions for attraction of private investors in con-struction and equipping of garbage sorting stations.

LONG-TERM DEVELOPMENT• Re-equipment of water pipelines pumping stations; Bort-

nychi sewage treatment station; sewage disposal systems; waste water treatment facilities.

• Sanitizing of the territories of enterprises suffering from pollution, removal outside of Kyiv and further utilization of dangerous substances.

• Creation of appropriate conditions for attracting invest-ments in the garbage recycling plants.

46

TOURISMSECTOR 5

VISION OF FUTURE SITUATION IN THE SECTOR ATTRACTIVE TOURIST CENTER MAKING SUBSTANTIAL CONTRIBUTION IN THE CITY’S ECONOMY

Advantages

• Convenient geographic location between Europe and Rus-sia and other CIS countries, as well as free visa regime

• City landscape and cultural and historical heritage sites attractive for tourists

• Availability of high class sport infrastructure objects

Disadvantages

• Insufficient popularization of Kyiv as a tourist centre abroad

• Lack of coherent marketing program and tourist proposal of the city

• High prices for services while their quality is lower than in other eastern Europe cities

MAIN FACTS AND TASKS OF STRATEGIC PLANINCREASE OF THE NUMBER OF TOURISTS

Now Kyiv is being visited by approximately 1 million of tour-ists (both from Ukraine and from abroad) which is much lower than the indexes for other Eastern European cities (see Fig. 30). Besides, Kyiv is lagging behind in terms of tourists number increase: for the period of 2000-2008 the average annual increase in Kyiv was 5.3 per cent while in Prague it reached 7.3 per cent, and in Warsaw – 8.2 per cent.

The implementation of tourism development program will allow to raise average annual increase up to 6.3 per cent and reach the number of 2.6 million of tourists in 2025 (see Fig. 31).

CITY TOURIST APPEAL PROGRAMTo achieve the above goals it is necessary to implement the

comprehensive program of Kyiv tourist appeal increase and its promotion as a tourism center:• Uniform marketing image of the city which highlights its

principal tourist proposals;

• Active participation in 10 most influential international tourism fairs;

• Inclusion of Kyiv into the tourism centers register of the most popular travel websites and leading international tour-ism operators;

• Carrying out PR events: organization of press tours for for-eign reporters, releases in specialized periodicals etc.;

• Establishment of systematic cooperation with international programs and tourist cards (ISIC, transport operators alli-ances etc.)

• Creation of official tourist portal supporting different for-eign languages;

The development of event tourism has significant tourists attraction potential:• Organization of major international sports events after the

Euro-2012 Football Championship using available sports infrastructure;

• Carrying out large-scale cultural events – festivals, exhibi-tions, contemporary art biennale etc.

Creation of conditions and infrastructure for holding busi-ness and corporate conferences within the framework of the respective strategic initiative on attracting international organizations to Kyiv, increase of business tourism. Following the example of other cities, the reconstruction of the existing cultural and historical objects and creation of new heritage sites would help to attract tourists. Implementation of the riverside territory reconstruction according to the Dnieper Gem Initiative would also have positive effect on incoming tourism.

Fig. 30. Number of incoming tourists (2009)

Moscow

5,44,9

4,03,4

1,81,01

WarsawPragueBudapest

mill

ion

of p

eopl

e pe

r yea

r

Saint.-P. Kyiv

0

2

4

6

Fig. 31. Tourist number increase forecast2

2010 2012 2014 2016 2018 2020 2022 2024

mill

ion

of p

eopl

e pe

r yea

r

0

1

2,62,52,32,22,12,01,91,81,71,61,51,41,3

1,5

1,11,0

2

3+6,3%

INCREASE OF THE TOURISTS SOJOURN DURATIONAt the moment the average duration of tourists sojourn in

Kyiv is 2.1 days which is a bit lower than in Budapest (2.3) or Saint-Petersburg (2.8). Target index for Kyiv shall be the return to mid-2000s level which was 3 days.

To achieve the said target it is primarily necessary to develop and promote tours having increased duration and more intense program. The tourists who wish to organize their travel on their own should be provided with as much information as possible about the city and its sights – the number of recom-

47

TOURISMSECTOR 5



2015 2025

Liveability Index

Number of museums visits per inhabitant Visitors/ inhabitants 1.5 1.8 2.8

Number of theatres visits per inhabitant Visitors/ inhabitants 0.4 1 1.2

Number of galleries5 Galleries/ 100 000 persons 1.42 2.6 3.22


Incoming tourists number Million persons 1 1.5 2.6

Average duration of sojourn Days 2.1 3 3

Number of hotel rooms Thousand 10 13 18

Average annual load of hotel room capacity Per cent 33 56 68

Tourism income share in GRP Per cent 0.7 2.5 Min. 2.5

1. According to the number of visitors serviced in the city hotels.2. Conservative calculated forecast of tourists in the city due to Euro-2012 shall be 250 000 persons. 3. A card that against a fixed payment enables a tourist to visit the main city sightseeing places free of charge or at a discount price.4. Current values from liveability index as of 2009 (with the purpose of comparison with other cities); current values of additional indicators are as of 2010.5. Important public and private galleries as agreed by branch experts.

mended sightseeing places in Kyiv on the leading travel sites is ten times less than in Prague or Budapest.

TOURIST INFRASTRUCTURE IMPROVEMENTOne of the primary tasks aimed to make tourists sojourn in

Kyiv more convenient is the improvement of information sup-port:• Inventory of tourism and recreation objects and selection of

those which are most popular for tourists with the participa-tion of tourist operators;

• Creation of uniform guest of the capital tourist card allowing to use public transport and visit tourist institutions;

• Creation of tourist information centers and outlets, installa-tion of information terminals;

• Besides, basic works aimed at spreading the city tourist infrastructure shall provide comfort for city guests while visiting principal tourist objects;

• Creation of the main sightseeing and street names signs system in foreign languages;

• Providing principal tourist locations with WC facilities.

At the moment city hotels have approximately 10 thousand of rooms which is sufficient to satisfy current demand. How-ever the growing number of tourists shall require setting into operation 500-700 rooms annually, thus until 2025 the number of rooms much reach 18 thousand taking into account the average annual load of the hotel room capacity increase from 33 per cent to average European level of 68 per cent.

Presently the accommodation prices in Kyiv hotels is among the highest in Europe. Growing number of hotels and obliga-tory comfort category certification of hotels would allow to decrease prices and enhance tourist appeal of Kyiv.

MAIN ACTIVITIES AND TASKS OF TARGET PROGRAMS ACTIVITIES OFFERING IMMEDIATE RESULTS• Change of Kyiv tourism organization and management

structure.

• Development of the city tourist appeal program, city image and brand concept.

• Creation of the official tourist portal.

• Uniform tourist card of a city guest2.

• Kyiv listing in Top-10 international travel websites and tour-ist agencies.

• Liberalization of tourist routes approval procedures, espe-cially bus routes.

LONG-TERM DEVELOPMENT• Creation of a coordination body to manage tourism branch

in cooperation with private tourist operators and representa-tives of related business spheres.

• Update of the city tourist infrastructure, its adaptation to English-speaking audience.

• Creation of the system of tourist information centers, out-lets, stalls and terminals connected to the city tourist portal.

• Construction of 8 thousand of hotel rooms.

48

PUBLIC HEALTH CARESECTOR 6

VISION OF FUTURE SITUATION IN THE SECTOR AFFORDABLE, HIGH QUALITY AND EFFICIENT HEALTH CARE SYSTEM AIMED AT PRESERVATION AND RESTORATION OF HEALTH AND ACTIVE LONGEVITY OF KYIVANS

Advantages

• Numerous healthcare facilities and medical staff

• Quite high qualification of medical staff (by certain specializations)

• Availability of high quality healthcare research centers at the national Academy of Medical Sciences, several big multi-discipline state and private high level medical centers

Disadvantages

• Underdeveloped sphere of preventive healthcare and HLS promotion, lack of general recreational establishments

• Underdeveloped primary healthcare system, lack of pri-mary healthcare staff

• Inefficient use of resources, funding is not linked to the establishments needs and operational quality

• Low quality of infrastructure, outdated buildings and equipment

• Great share of private expenses, absence of joint funding mechanisms

• Inefficient mechanisms for medical staff and medical establishments performance control

MAIN FACTS AND TASKS OF STRATEGIC PLANDEVELOPMENT OF DISEASES PREVENTION AND HEALTHY LIFESTYLE (HLS) PROMOTION

In the mortality structure of Kyivans cardiovascular diseases prevail – those which, according to international practices, may be significantly reduced in medium and long term prospective if preventive healthcare and HLS programs are implemented.

Fig. 32. Mortality structure by particular types of diseases , 2009

Kyiv

Prague

Warsaw

72%

55%

52%

20%

33%

33%

6%

5%

7%

2%

7%

9%

Cardiovascular Neoplasms Digestive organs

Respiratory organs

The cardiac ischemia is one of the most widespread diseases in Kyiv, however, tobacco and alcohol expenses have the same share in the structure of Kyiv households expenses as private healthcare expenses being in average UAH 1500 per household per year.

HLS spreading is hampered by the lack of proper infrastruc-ture – treadmills and bicycle tracks, sports grounds, affordable swimming pools and gyms.

Preventive healthcare and HLS promotion should be focused on the following aspects:

• Increase of opportunities and infrastructure for sports and active leisure;

• HLS promotion (support of professional and amateur events, creation of all-city information causes to promote HLS, ab-staining from bad habits, promotion of healthy diet);

• HLS culture fostering from early age, inclusion of informative lessons in pre-school educational institutions;

• Increasing of opportunities for cardiovascular, oncologic and contagious diseases.

IMPROVEMENT OF HEALTH CARE SYSTEM RESOURCES USAGE EFFICIENCY

Availability of medical staff and in-patient hospital beds in Kyiv is one of the highest among the compared cities

Fig. 33. Availability of in-patient hospital beds

Fig. 34. Availability of medical staff

Kyiv1

No. of beds/1000 persons

11

11

10

10

8

6

Budapest

Moscow

Saint-P.

Prague

Warsaw

Kyiv

No. of medical staff2/1000 persons

20

22

19

19

20

13

Budapest

Moscow

Saint-P.

Prague

Warsaw

The existing system of self-accounting funding of healthcare establishments, low capacities usage level (in many spheres the number of one hospital bed usage days is 250-300 days per year), lengthy sojourn in an in-patient hospital (in average 12 days in Kyiv compared to 8.6 in the EU) and frequent instances

49

PUBLIC HEALTH CARESECTOR 6



2015 2025

Liveability Index

Expected lifespan at birth years 72.7 74.4 79.8

Primary morbidity persons 966.6 898.9 777.3


Infant mortality up to the age of 1 Incidents/1 000 of newborn babies 7.5 6 4

Labour force mortality Incidents/ 1 000 inhabitants 3.7 3.2 2.6

Share of expenses for primary health care within total health care expenses Per cent 8-10 18-20 20-30

Implementation of contractual relations, changing approach to the funding Yes/no no yes yes

Average number of in-patient hospital bed work per year Days 297 310 330

Average duration of in-patient treatment Days 11 9 6

1. Including all establishments within the territory of Kyiv.2. Doctors and nursing staff.3. Current values for 2009.

of medically ungrounded hospitalization exert great financial strain on the health care system which can be optimized.

According to the estimates 8-10 per cent of the branch fund-ing in Kyiv is allocated for primary health care while in leading health care systems this index is about 20-40 per cent.

The system efficiency increase should be focused on the following aspects:• Priority development of primary health care, ensuring free

choice of primary doctor;

• Restructurization of in-patient hospitals bed fund, separa-tion of non-core activities;

• Limitation of excessive use of secondary and urgent health care services;

• Implementation of contractual mechanisms of funding and health care establishments status modification;

• Motivation of health care establishments managers and staff to increase performance and efficiency.

INCREASING AFFORDABILITY OF HEALTH CAREKyiv is provided with PTFs to lesser extent than the compared

cities. However the available facilities are used only by 70-85 per cent in central districts and 120-130 per cent in peripheral districts.

Absence of joint funding mechanisms and substantial share of households private expenses (up to 40 per cent of total expenses according to the estimates) render health care, espe-cially medicines, unaffordable for certain categories of citizens who need it.• Primary actions to improve affordability:

• Development of family outpatient clinics and modern prena-tal centers network;

• Development of funding channels based on insurance;

• Improvement of health care services quality by:

• Implementation of medical standards, clinical protocols, formulary system and introduction of health care quality indicators;

• Informatization of health care system;

• Remuneration depending on quality and volumes of provid-ing medical services;

• Integration of private medicine in general municipal medical sphere.

MAIN ACTIVITIES AND TASKS OF TARGET PROGRAMS ACTIVITIES OFFERING IMMEDIATE RESULTS• Creation and equipping of family outpatient clinics network;

• Restructurization of in-patient hospitals bed fund, separa-tion of non-core activities (provision of high quality nutri-tion, laundry and cleaning services etc.);

• Implementation of actions to increase affordability of medi-cines;

• Implementation of quality standards and indicators for medical assistance processes and results;

• Implementation of regulated market of socially funded high-tech medical services through establishing bids for govern-ment orders for services;

• Modification of status and increase of autonomy of health care establishments, introduction of remuneration incen-tives.

LONG-TERM DEVELOPMENT• HLS promotion program, HLS infrastructure and health cen-

ters development;

• Transfer to contractual funding of facilities with the pay-ment depending on the number of persons and medical assistance quality in primary health care facilities and “per service” on secondary level;

• Specialization of hospitals and laboratories to improve qual-ity and cut expenses;

• Development of joint funding mechanisms (health insurance funds, mandatory insurance).

50

EDUCATIONSECTOR 7

VISION OF FUTURE SITUATION IN THE SECTOR HIGH-QUALITY, AFFORDABLE EDUCATION, CORRESPONDING TO MARKET DEMAND

Advantages

• Developed system of education and educational estab-lishments infrastructure (except for pre-school facilities)

• Wide coverage of schoolchildren with secondary educa-tion

• Availability of free of charge education in educational establishments

Disadvantages

• Lack of educational infrastructure for pre-school facilities

• Lack of material and technical capacities

• Absence of exhaustive evaluations of education qual-ity and participation in the international monitoring research

• Unsatisfactory social status of teachers

• Use of capacities of certain educational establishments not for their intended purpose

MAIN FACTS AND TASKS OF STRATEGIC PLANAFFORDABILITY OF EDUCATION

Fig.35. Coverage with pre-school education1

Fig. 36. Coverage with school education2

Prague Kyiv86% 99%

84% 99%

80% 99%

68% 99%

63% 97%

55% 92%

Budapest Prague

Warsaw Warsaw

Saint-P. Saint-P.

Kyiv Budapest

Moscow Moscow

Kyiv is the educational centre of Ukraine, the city has approxi-mately 116 higher education institutions. By concentration of pupils of all levels per 1 000 inhabitants (290 pupils and students per 1000 inhabitants) Kyiv exceeds the compared CEE cities.

Secondary education coverage in Kyiv is one of the highest among the compared cities (99 per cent), pre-school education is behind with 63 per cent coverage. To meet the demands of Kyiv educational institutions (EI) it is necessary to focus first of all on attracting sufficient number of pedagogical and academic staff.

INFRASTRUCTURE AVAILABILITYEducational infrastructure availability is unequal throughout

Kyiv. While there are no apparent problems with schools avail-ability in the city (schools load level is the same as in com-pared CEE cities) kindergartens in Kyiv are heavily overloaded, even more than in Moscow.

Thus the ratio of the number of children attending pre-school facilities to the number of places in Kyiv pre-school facilities is 112%, and ratio of the number of places in PEI to the number of children aged 2-6 is only 72 per cent. Positive birth rate dynamics makes the issue of PEI availability criti-cal in the short run. Creation of additional PEI is a principal

measure to the extent of educational infrastructure availability enhancement. But in addition to municipal PEI this should be achieved through stimulation of private facilities, simplifica-tion of city-controlled standards (sanitary and epidemiological, fire safety etc.).

Fig. 37. Kindergartens places use ratio, per cent3

Fig. 38. I-III grade schools load ratio, index4

Kyiv Moscow112% 16 930

7 465

5 905

4 848

4 384

3 377

110%

101%

101%

91%

Saint-P. Saint-P.

Warsaw Prague

Moscow Kyiv

Budapest Warsaw

Budapest

QUALITY OF EDUCATIONThe quality of educational infrastructure in Kyiv is basically

satisfactory, but there exist problematic areas. At the same time education quality in the city deteriorates

as the key quality factor, the staff, is poorly motivated.

96,5% Schools are computerized (2010)

1:19 1 computer per 19 schoolchildren (2010)

100%All schools have Internet connection, but using dial-up technology (2010)

~30%168 schools have high-speed Internet connection (2010)

~20% 101 schools have electronic libraries (2010)

~50%Approximately1/2 of schoolbooks are funded by parents (bought their own or paid for usage)

100%100 per cent are provided with computerized librarian workplace

51

EDUCATIONSECTOR 7



2015 2025

Liveability Index

Ratio of teachers/pupils in schools 10 10 8

Education quality (Newsweek) Rating 64 68 78


Ratio of PEI children/teachers 9 9 7

Ratio of professional and technical EI/teachers 21 20 18

Number of children in PEI/places in PEI, per cent Per cent 112 100 92

Teacher's salary/average salary Per cent 74 91 100

Teaching staff turnover ratio Per cent 12 6 3

Number of EI requiring capital repairs 377 200 40

Number of employed professional and technical EI graduates Per cent 87 93 95

1. Number of places in pre-school educational institutions (PEI) for children aged 2-6 2. Number of schools and professional colleges pupils for children aged 6-183. Number of children/number of places.4. School load index – number of pupils/number of teachers/number of schools. 5. Current values from liveability index as of 2009 (with the purpose of comparison with other cities); current values of additional indicators are as of 2010.

The average teacher’s salary in Kyiv is one of the lowest in the city and is 74 per cent of the average salary for all branch-es in the city. Low remuneration decreases the prestige of pedagogical profession and low education quality. As the result there is shortage of teaching staff, high turnover (12-18 per cent per years) and aging (23 per cent of teachers are persons beyond retirement age).

Thus to increase the quality of education it is necessary to increase teacher’s salary, repair the available infrastructure objects by comprehensive thermal upgrade within the Energy Efficiency Initiative.

RELEVANCE OF EDUCATIONAL SERVICESThus there are numerous higher education establishments

in Kyiv, some of them being the best institutes and universi-ties, they are not municipally governed and are managed on the state level. However among municipally governed EI there are many professional EI which are directly related to the labor market. At the moment the number of professional colleges is decreasing, in particular due to the fact that training spe-cialties do not meet the requirements of potential students. Besides there is a wide gap between the market demands on non-production specialties and specialization of the gradu-ates as there is shortage of specialists trained in servicing sphere. To solve this problem the city will initiate reforming of the existing centers and, if necessary, creation of new profes-sional and technical education centers to meet the demands of non-production specialties, in particular, tourism, hotel and restaurant business (for example, basic accounting courses, finance, small enterprises management etc.).

Other problems with education relevance are connected with education programs focused on quantity but not quality of training materials. Besides, the quality of manuals is low. The city will increase education relevance to social demands by implementing Kyiv Textbook program concentration on creation of additional and alternative manuals.

MAIN ACTIVITIES AND TASKS OF TARGET PROGRAMS ACTIVITIES OFFERING IMMEDIATE RESULTS• Creating 4 centers for professional and technical education

for services and specialties in entrepreneurship spheres.

LONG-TERM DEVELOPMENT• Provide EI with a sufficient number of teaching staff;

• Initiate programs for private PEI support and simplification of the regulatory framework;

• Create 28,000 new places in PEI, through governmental and private funding;

• Increase motivation and mitigate turnover of teaching staff by raising the remuneration level;

• In the long term, taking into account demographic tenden-cies, open 30 new schools to meet future demand.

52

SOCIAL PROTECTION AND SAFETY SECTOR 8

VISION OF FUTURE SITUATION IN THE SECTOR INCREASED SAFETY AND SOCIAL PROTECTION OF POPULATION

Advantages

• Available state pension fund scheme

• Available infrastructure for disabled adult individuals, disabled children, center for registration of people with NFA1

• Relatively low crime rate, including a low rate of crimes against person’s life and health

Disadvantages

• Absence of a comprehensive understanding of the situa-tion and needs of all socially vulnerable social groups in the city

• Deterioration of the infrastructure for caring about dis-abled adult individuals, disabled children

• Lack of facilities of the infrastructure for caring about disabled adult individuals in the psycho-neurological sphere, about people with NFA

• Inefficient administration of benefits, absence of targeting

• Obvious problem of youth crime rate among underage persons

MAIN FACTS AND TASKS OF STRATEGIC PLANDEVELOPMENT OF A COMPREHENSIVE PROGRAM ON SUPPORT FOR SOCIALLY VULNERABLE GROUPS OF POPULATION

Today, the city agencies do not have a comprehensive vision of the situation and needs of all socially vulnerable groups of population. Hence, the first step is to be a detailed revision of the social support sphere, study of the needs of all social groups that need social support within the framework of the city’s powers and authorities. According to the research results, a comprehensive action plan is to be developed in 2012 on provision of both direct assistance by the city and on develop-ment of cooperation with international and national organiza-tions, and promotion of social responsibility among private companies in the city.

Furthermore, activities in the individual spheres that have already been identified by the city agencies will not wait till the end of the process of the comprehensive program develop-ment and will be implemented without any delay.

ASSISTANCE FOR DISADVANTAGES SOCIAL GROUPS Kyiv is a city with significant stratification of population in

terms of income when incomes of one fifth of all Kyiv citi-zens are below the real minimum subsistence level. The main category of impecunious people is pensioners who account for 93% of Kyiv citizens with incomes lower than the poverty level. Although support for this group of citizens is the state’s responsibility, the city is to provide all possible assistance to this group:• simplification and acceleration of the process of granting

approved benefits (for instance, utility services subsidies)

• establishment of a social service for delivery of food and

basic consumer goods in partnership with private business and international organizations

• organization of regular district fairs

• creation of a network of social shops in partnership with private business

Fig. 39. Breakdown of households (consisting of 3 persons) by total cash income3, %

3060–3600

3600–4110

4110–4680

4680–5220

5220–5760

over 57600 28%

7%

8%

10%

12%

12%

9%

10%

4%

2%

20%2

1%

0%

2520–3060

1980–2520

1440–1980

900–1440 Official minimum subsistence level

Actual minimum subsistence level

> 900

AVAILABILITY OF SOCIAL INFRASTRUCTURE

4 Foster homes

1605 Places in foster homes

98% Use of facilities of foster homes in the psycho-neurological sphere

263 In queue for allocation

Table 5. Psycho-neurological foster homes for adult people

53

SOCIAL PROTECTION AND SAFETY SECTOR 8



2015 2025

Liveability Index

Number of crimes Crimes/ 100 thousand persons 12.8 11.0 8.5

EIU comprehensive safety rate Rating 70 72.8 78.9


International ratio of inequality of household incomes5 0.41 0.38 0.33

Number of workplaces for people with NFA places 0 200 500

Total number of persons for people with NFA in institutions for accommodation of people with NFA % 230 150 100

1. No fixed abode 2. The actual minimum subsistence level for a family of three persons as calculated by IAC ORPS totals 2829 UAH as of 31.10.2008. 3. In 2008.4. Data for 2009.5. Gini International Incomes Distribution Index with values from 0 – equal to 1 – extremely contrasting.6. The current values of the Liveability Index are given for 2009 (for comparison with other cities); the current values of indicators that were not included in the Index are

given for 2010.

Despite the availability of the basic social infrastructure, Kyiv experiences an acute shortage of institutions for caring about persons with psycho-neurological diseases.

A similar situation is observed with regard to the infrastruc-ture for caring about caring about persons with NFA. Whereas there are three such institutions designed for 485 persons, the estimated number of persons with NFA is at least thrice as many.

The strategy of Kyiv provides for creation of new facilities of the social infrastructure to satisfy the city’s needs as well as activities aimed at social integration of persons with NFA.

DECREASED CRIME RATE

34%

5%

27%34%

Fig. 40. Number of registered crimes per 1,000 persons4

Fig. 41. Age breakdown of convicted individuals, %4

Prague 68,7

42,5

20,2

16,9

12,8

Warsaw

Moscow

Saint-P.

Kyiv 30+25–2914–17 18–24

Kyiv is one of the safest cities among the compared Central and Eastern European capitals with the lowest registered crime rate in the comparison group. At the same time, one should mention that the low comparison rate can to a certain extent result from the deficiencies of the mechanisms of of-ficial statistical reporting. Moreover, as experience of other European countries shows, the growth of tourism that is one of important strategic areas of the city’s activities can result in a disproportional increase of the crime rate in the absence of mechanisms of crime control and prevention.

A larger part of crimes are not against a person – more than 50% of all crimes are aimed at property stealing. It creates the youth crime rate problem: the majority of crimes are performed by the youth (61% of convicted individuals are persons aged from 18 to 30). This age category accounts for more than 80% of all robberies and armed assaults, and 50% of grave crimes.

To decrease the crime rate in the city, the Strategy of Kyiv provides for development of a comprehensive program on

misdemeanor prevention, Safe City. Furthermore, an automat-ed video surveillance system on streets and automobile roads that will be created with support of local and national law en-forcement bodies will enable us to significantly increase the level of misdemeanor control and improve reaction of local agencies to emergency situations.

The speed of response and resolution of emergency situa-tions (that require involvement of several agencies) will also be considerably improved due to centralization of operations control agencies of the city and introduction of the latest technologies within the framework of the strategic initiative, E-government.

MAIN ACTIVITIES AND TASKS OF TARGET PROGRAMS ACTIVITIES OFFERING IMMEDIATE RESULTS• development of a comprehensive action plan on assistance

for socially vulnerable groups of Kyiv citizens

• establishment of a social service for delivery of food and basic consumer goods in partnership with private business and international organizations

• construction of a psycho-neurological foster home for 300 patients in the sanatorium named after the First of May in Pushcha-Vodytsia

LONG-TERM DEVELOPMENT• development of an employment program for persons with

NFA

• creation of a network of social shops in partnership with private business

• development of an accessible and financed by the city pro-cedure for documents recovery for persons with NFA

• development of a comprehensive program on misdemeanor prevention in Kyiv, Safe City

• with support from the state and local law enforcement bodies, development and introduction of a system of video surveillance on streets

54

LABOR MARKET AND EMPLOYMENT SECTOR 9

VISION OF FUTURE SITUATION IN THE SECTOR ATTRACTIVE LABOR MARKET WITH EQUAL OPPORTUNITIES FOR MEN AND WOMEN

Advantages

• Unemployment rate lower than average for Ukraine

• Average salary is 50–60% higher than average for Ukraine (in 2010 —53% higher)

• Educated and qualified workforce

• No discrimination between men and women in employ-ment statistics

Disadvantages

• Kyiv compares poorly in terms of employment and salary with the reference Central and Eastern European cities

• Among the sectors that play the key role for city economy, Kyiv compares poorly in terms of labor productivity with the reference Central and Eastern European cities

• Insufficiently young labor force (the age group of 15–35 accounts for 38% of all employees)

MAIN FACTS AND TASKS OF STRATEGIC PLANINCREASED EMPLOYMENT RATE – RESULT THAT REQUIRES SUPPORT

Fig. 42. Unemployment rate1

Fig. 43. Unemployment rate1, 2009

15%

10%

5%

0%

00 02 04 06 08 10

Kyiv 6,5%

6,2%

3,1%

3,0%

1,1%

1,0%

Budapest

Prague

Warsaw

Saint-P.

Moscow

Kyiv

Ukraine

Kyiv has a much lower unemployment rate compared to Ukraine in general. Statistical data confirm that it is a long-term trend explained by the special status of Kyiv as the capital city and center of Ukraine.

At the same time, the unemployment rate in Kyiv is higher than average in the group of reference cities (Fig. 43). Hence, one of the strategic city development goals till 2025 will be the growth of employment rate of its citizens.

Fig. 44. Employment structure

in the main sectors, 2009

Fig. 45. Employment structure

by employers, 2009

9% 9%Public sector Public administration

Industry and construction Micro-entrepreneurs

Small business

Medium-size business

Large enterprises

Service sector

18% 11%

73%

24%

25%

31%

The employment structure in Kyiv corresponds to the Gross Regional Product structure in terms of the main number of Kyiv citizens employed in the service sector. As to the main

employers, although average employers provide the largest number of workplaces in general, however it is small business together with micro-enterprises2 that offer more than one third of workplaces to employees.

Implementation of individual strategic goals and sectors en-visage the increase of the number of workplaces, for instance:

• creation of workplaces in competing clusters, formation of small enterprises with the support from business incubators within the framework of the Made in Kyiv initiative;

• increase of the number of service workplaces in the spheres of culture and tourism;

• a significant increase of demand for professional workforce with creation of respective environment and involvement of international companies in Kyiv;

• creation of better opportunities for entrepreneurial activi-ties;

• creation of innovative workplaces both for specialized and for regular labor workforce in the projects on reconstruction, modernization and city infrastructure development.

The employment structure will continue to be concentrated in the service sphere. Industry workplaces will be re-oriented to the areas with high added value. As to employers, activities aimed at improving the entrepreneurial environment (espe-cially innovative entrepreneurship) are to increase the share of small and micro-business. A relatively stable number of workplaces in the public administration sphere will facilitate a relative decrease of the share to 4–5% as a result of a general increase of the total number of workplaces I the city and op-timization of the institutional power with introduction of the computerized systems of e-government .

To receive the maximum effect from these initiatives, the city will have to ensure respective support and coordination of the labor market.

CREATION OF CONDITIONS FOR SALARIES GROWTH An average salary in Kyiv is constantly 50–60% higher than

in Ukraine whereas compared to other Central and Eastern Eu-ropean capitals Kyiv is significantly weaker. Kyiv Development Strategy for the period ending 2025 pays special attention to the increased attractiveness of the labor market and activities aimed at stimulating salaries growth.

55

LABOR MARKET AND EMPLOYMENT SECTOR 9



2015 2025


Unemployment rate for age groups 15–70 % 5.8 4.6 3

Average salary level Euro/person 315 550 >1100

Correlation between the unemployment rate of economically active women and the unemployment rate of economically active men - 1.3 1.0 1.0

1. The unemployment rate according to the methodology of the International Labor Organization (ILO) based on the information provided by the State Statistics Service of Ukraine

2. Micro-enterprises are companies of private entrepreneurs with only one employee 3. Current data are given for 2010

Fig. 46. Nominal average monthly salary, Euro

Fig. 47. Average monthly salary in 2009, Euro

400

300

100

200

0

04 06 08 10

Prague 1 381

1 066

990

769

551

291

Warsaw

Budapest

Moscow

Saint-P.

Kyiv

Kyiv

Ukraine

Since in the market economy conditions, the salaries level is determined on the basis on demand for labor force and its supply, the city sees its key activities in this sphere as develop-ment of an economic base for creation of additional demand for workforce as well as improvement of the workforce qualification. Thus, within the education sphere, we are going to focus among other things on creation of professional and technical education centers, including the needs for those spheres where the highest demand in the future is envisaged. Besides, a significant role in the increase of an official average salary is to be played by a reduction of a shadow sector and legalization of salaries.

CREATION OF EQUAL OPPORTUNITIES FOR EMPLOYMENT

Fig. 48. Unemployment rate among men and women

10%

5%

0%

00 0401 0502 0603 07

Men

Women

In the structure of economically active Kyiv population, a ratio of men and women is close to one and is economically stable. Furthermore, in terms of the unemployment rate in Kyiv no discrimination between men and women is observed as well.

Thus, with equal participation of men and women in labor force, a correlation between men and women among the unem-ployed is also approximately equal.

In its long-term vision, Kyiv aspires to preserve the gander balance in the employment structure as well as to provide em-ployment opportunities for certain social groups such unem-ployed women raising children.

MAIN ACTIVITIES AND TASKS OF TARGET PROGRAMS ACTIVITIES OFFERING IMMEDIATE RESULTS• Development and introduction of a system of professional

training and continuous professional development courses

• increased employment rate for the unemployed with the help of internship programs

• introduction of a system of special trainings aimed at in-creasing the employment rate among women

• accelerate procedure for employment of the unemployed with the help of vacancy fairs involving recruitment (staff-ing) agencies

LONG-TERM DEVELOPMENT• Development of the vacancies database of the employment

center by 20% before 2025

57

KEY CITY DEVELOPMENT INDICATORS

CITY DEVELOPMENT INDICATORS

Population

Street network density

Average annual rate of real GRP growth Livability index

City area

Public transport lines2

Emissions of harmful substances

Investments (FDI1) cumulative

Water losses in city water supply pipes

Students/teachers ratio

Green zones per a citizen

Number of entering tourists3

Life expectancy4

Number of crimes

Museum visits by Kyiv citizens

2,72

2,1

84

9,6

333

15,2

20

10

16

1

72,7

12,8

1,5

3,11

2,8

6,5%5,7% 181100

84

16,1

250

95,7

5

8

20

2,6

79,8

8,5

2,8

2009

2009

2010–20252004–2008 2009 2025

2009

2009

2009

2010

2009

2009

2010

2009

2009

2009

2009

2025

2025

2025

2025

2025

2025

2025

2025

2025

2025

2025

2025

2025

mln

per

sons

km/k

m2

thou

sand

he

ctar

eskm

/1,0

00

pers

ons

t/km

2 per

yea

r

billi

on E

uro

%

of c

onsu

mpt

ion

stud

ents

/tea

cher

sm

2 /cit

izen

mln

per

sons

year

sca

ses/

1,00

0 pe

rson

sti

mes

/yea

r pe

r 1 c

itiz

en

1. Foreign direct investments 2. Length of the public transport lines

(bus + trolley bus + subway + tram) 3. Including internal and international 4. At birth

MAIN STRATEGIC GOALS

SELECTED COMFORT OF LIVING INDICATORS

STRATEGY IMPLEMENTATION PROGRAM

59

PRIORITIES, PARTICIPATION OF ALL PARTIES AND UNIQUENESS AS STRATEGY BASIS APPROACH TO STRATEGY IMPLEMENTATION

THE STRATEGY OS TO ANSWER THE QUESTION “HOW” AFTER THE “WHERE” DIRECTION HAS BEEN DETERMINED, I.E. VISION

Principles of Strategy Implementation

1 Priority identification instead of wishing to cover all aspects of the city’s vital activities

2Creation of conditions for active participation of various entities in city development instead of stak-ing on internal resources

3 Careful control of the entire implementation process and not only results

IDENTIFICATION OF PRIORITIESCity development is a large-scale task. Development of such

city as Kyiv is even larger-scale because this city is compared with individual European states. To receive visible results of the performed activities focus is extremely important. That is why, for instance, for each activity area presented in the Strat-egy only main projects are described.

Furthermore, the Strategy itself mentions nine largest initia-tives that have a significant impact on achievement of both qualitative (vision) and quantitative (key performance indica-tors) strategy goals:

1. Modernization of transport and engineering infra-structure

2. Support of efficient generation and careful use of energy resources

3. Provision of incentives for competitive economic clusters

4. Introduction of modern city administration tech-nologies

5. Creation of unique cultural atmosphere

6. Preservation and development of the Dnieper near-shore zones

7. Promotion of healthy lifestyles

8. Creation of new business activities centers

9. Involvement of central offices of international companies and organizations

For each strategic initiative and sector, a detailed action plan, projects and tasks were developed.

“CONDITIONS CREATING” POLICY Kyiv is lagging significantly behind Eastern European

capitals in terms of the majority of development parameters. In terms of economy, for instance, we are 10–15 years behind. However, our problems are not unique. Prague, Warsaw and Budapest 15 years ago experienced similar problems and have considerably succeeded in solving them, which was obvious, for instance, in a decrease of their gap with the capitals of developed countries by 30–50%. Such a development rate is possible only with the participation of the private sector, foreign investors and international financial institutions.

The main elements of the conditions creating policy will be: • improvement of the investments planning process that will

reflect all sources of financing

• improvement of the business climate in the part where the city can influence it, e.g. the permit system for business

• city’s support for investors and entrepreneurs in the spheres that can have the maximum impact on development of its economy, employment, budget and competitive power

• creation of basic conditions for activities through develop-ment of the infrastructure, reform of the administration system, and international promotion of the city

CONTROL OF THE PROCESS, AND NOT ONLY RESULTS

The ambitious and comprehensive goals of the Strategy require careful control not only of the final outcome but of the entire process and interim results. Furthermore, individual strategic projects can fall within the terms of reference of district administrations, structural units of the city administra-tion and even individual government bodies. Thus, efficient oversight mechanisms are to be introduced at every level, including public control: • by city administration of activities of district administra-

tions;

• by central government bodies of fulfillment of delegated functions by local self-government bodies;

• by citizens of activities of local self-government bodies.

60

STRATEGIC INITIATIVES – NOT SLOGANS BUT REAL PRIORITIES OF THE CITY FURTHER WORK WITH IDENTIFIED INITIATIVES

BEHIND EACH INITIATIVE THERE IS A DETAILED PLAN OF ACTIONS AND PROJECTS

Each strategic initiative and a strategic sector include a set of actions performance of which is to facilitate improvement of the living standards in the capital. The Strategy document format does not give us an opportunity to go into details of all action plans, and hence it focuses on the most important and significant events. However, within the framework of the Strategy development on each initiative and strategic sectors, detailed action plans were drafted:

Fig. 49. Example of a planning documentfor the strategic sector

All plans will have to include information about: • implementers responsible for implementation of certain

events (at the level of a profile department of the city administration)

• implementation timelines

• resources (financial and non-financial) necessary to imple-ment the activities

Detailed elaboration of strategic initiatives and sectors will be carried out to the level of individual short-term actions that will enable the Kyiv City State Administration to monitor the tasks progress not on a yearly or quarterly but on weekly basis.

Fig. 51. Illustration of the instrument for monitoring activities related to the strategy implementation

Where it is necessary to involve investors, a list of invest-ment projects will be compiled for each initiative. Every proj-ect will contain the necessary information about:• Required project activities

• Tentative implementation timelines

• Financial viability

• Mechanism of interaction with the state (e.g. completely private financing, PPP or with partial co-financing by ordi-nary citizens of Kyiv)

New project proposals will be regularly collected from all structural units of the city administration as well as from the city community with the help of a standard form of information collection. Such proposals have to contain both the informa-tion about the proposed idea and the primary evaluation of viability as well as the suggested mechanisms of financing:

Fig. 50. Template for collection of information proposals for investment projects (brief and details forms)

Then, these proposals will be analyzed by the profile depart-ment of the city administration, selected and prioritized with the help of the city investment agency.

The implementation plans and the list of investment projects will have a greater detalisation when they apply to the near fu-ture priorities (first phase of Strategy implementation) and will be more generalised for the further priorities. Going forward both plans and list of investment projects will be upgraded continuously with accounting for progress achieved and forma-tion of new plans.

61

CITY DEVELOPMENT WILL OCCUR DUE TO INVESTORS, ENTREPRENEURS, COMMUNITY SOURCES OF FINANCING

Different sources of financing will serve various purposes so that together they can completely cover all aspects of city devel-opment. Most activities related to the Strategy will be develop-ment into projects classified as follows:

BASIC AND SOCIALLY-ORIENTED PROJECTSSome socially-oriented projects that will ensure decent life

for all groups of the city population (e.g. creation of a psycho-neurological foster home) as well as individual projects that will independently create conditions necessary for the further attraction of investors and stimulation of business development (e.g. projects on reconstruction of the basic infrastructure facili-ties), unfortunately, are not commercially attractive for investors but they have to be implemented one way or another. These projects are in the focus of budget financing since the city is to guarantee sufficient living standards for all citizens of Kyiv.

PROJECTS HAVING HIGH STRATEGIC PRIORITY AND SOCIAL SIGNIFICANCE

Such projects are commercially profitable and have a high strategic priority and social significance (e.g construction of the fourth subway line, an express streetcar line). Due to their high priority and social components, the city participation in such projects can be necessary both from the point of view of the per-mit support and as a guarantor of project risks that will facilitate quicker completion of the tasks.

At the initial stages, for finalization of such projects and increase of the investors’ trust, the majority of projects will be presented in simple contractual forms such as DBOM (develop-ment, building, operation, maintenance). However, later more complex projects are planned that will involve the city and private investors on a partnership basis.

COMMERCIALLY ATTRACTIVE PROJECTS HAVING STRATEGIC PRIORITY

Projects that will have the highest strategic priority (e.g. development of enterprises in the competitive spheres) will not require such active city participation but rather participation in

their development and promotion among the investors and local business as well as creation of respective permit environment and conditions for their implementation. The major driving force for such projects has to be local entrepreneurs and strategic investors.

PROJECTS THAT PARTIALLY OR COMPLETELY FALLING WITHIN POWERS AND AUTHORITIES OF GOVERNMENT BODIES

Some projects that have the governmental effect and are related to the state authorities subordinate to the state, do not belong partially or completely to the powers and authori-ties of the city (e.g. projects on cooperation with the Ministry of Interior). Due to their significant strategic role, the city will actively promote them at the state level, develop cooperation with respective executive bodies and ensure necessary support. However, in the case of such large-scale projects, partial or com-plete financing will come from the State Budget.

PROJECT HAVING SIGNIFICANT IMPACT ON CONCENTRATED GROUP OF CITIZENS

Projects that will have a direct and significant impact on the quality of life of a small concentrate group of citizens (e.g. thermo-modernization of houses, reconstruction and construc-tion of new house territory objects such as sports grounds and parking places, etc.) will require partial involvement of Kyiv citizens. The interested citizens will be the best inspectors of the quality of performed works, and citizens’ participation will increase confidence of our investors in the long-term interest of local citizens and the absence of conflicts with them.

An important change will be introduction of the process of investments planning, according to which the city investment program will also include projects with private financing (not only budget-financed). Besides, the oversight system will be changed as well, according to which the results of work of the city authorities will be evaluated also on the basis of the results of implementation of the general program, including projects involving extra-budgetary financing.

CITY BUDGET IS NOT THE ONLY SOURCE OF FINANCING The current financial situation of Kyiv does not let us talk about its development-orientation. Incomes of Kyiv budget decreased

compared to 2008, and city debts increased significantly. The structure of budget revenues is not diversified (60% of all incomes come from the individual income tax). At the same time, large payments to the state budget (~40% of all expenses) restrict the opportunities for development.

Instead, the city administration has to involve all possible sources of financing and first of all – investments of the private economic sector:

Current expenses Capital costs related to city development / strategy implementation

Operating expenses Social projects Strategy priorities Development of new areas National projects Local projects

City budget Aimed at ensuring work

of the key sectors

City budget For financing

key social projects

PPPs for financing the primary priority strategic projects

Private sector investments in new

competitive areas

State Budget for supporting financing

of the key city development projects

Co-financing of expenses with citizens on repairs and modern-ization of the housing

and utilities sector

Share of the private sector in expenses

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CITY HAS TO PROVIDE ALL POSSIBLE SUPPORT FOR STRATEGY FINANCING AND IMPLEMENTATION “CONDITIONS CREATING” POLICY

Involvement of investors and implementation of economic development plans financed from the local budget will be possible only provided that the city creates adequate favorable conditions for functioning and attractiveness of the proposed projects.

“CONDITIONS CREATING” POLICY WILL BE FOCUSED ON THE FOLLOWING AREAS • development of cooperation with investors

• improvement of conditions for functioning and development of local business

• enhancement of stability of city economy

DEVELOPMENT OF COOPERATION WITH INVESTORS

Involvement and cooperation with investors will be the priority task for the city. However, to establish efficient coop-eration one will have first of all to return the investors’ trust in the government, to provide sufficient arguments confirming the serious intention to cooperate. In order to achieve these goals, the city will create an investment agency and simplify investment procedures and norms.

INVESTMENT AGENCYIn the structure of the Kyiv City State Administration, a spe-

cial agency will be created that will involve and cooperate with investors. The agency’s tasks will include: • detailed elaboration of investment projects:

Within the framework of development of the city investment projects, the agency will analyze and structure investment proposals, identify the highest priority project that will then be forwarded for consideration to potential investors. • promotion of the city and its projects among potential investors

Analytical work on the existing trends and wishes of poten-tial investors, marketing work on promotion of the city and its projects (organization of advertising campaigns, participa-tion in international investment events, organization of Kyiv Investment Forum, etc.) • provision of feedback for investors

Collection of information from investors and formulation of recommendations on institutional reforms and improvement of municipal legislation

INVESTMENT PROCEDURES AND NORMSAt present, the largest obstacles for investors are the land

issue and permit procedures. Hence, the priority tasks from the point of view investors involvement for the city will be: • development of transparent land relations (zoning and land

cadaster of the city, investor geo-information system, etc.)

• simplification of registration and permit procedures (approval of design documentation, registration of land relations, etc.)

• creation of the necessary legal basis within the framework of municipal legislation or other forms of cooperation with investors

Improvement of normative environment and investment climate will not be a one-time reform but is to become an on-going process. Collection of information about the necessary changes will be carried out through the available channels: • regular analysis of the main problems and requests submit-

ted to the investment agency

• preparatory meetings and round tables with investors’ repre-sentatives (both general and specific)

• regular surveys conducted among a wider group of investors

• other recommendations of the oversight investment board.

Based on the collected recommendations, the leadership of the Kyiv City State Administration together with profile representatives of the city administration will develop projects on improving the normative regulatory environment and ear-marked simplification of the existing processes. Although the most radical changes are to take places in the near future, the ongoing improvement process will create not only long-term compliance of the investment environment with the business needs but will also give a chance to the existing static system to adapt to the surrounding changes.

IMPROVEMENT OF LOCAL BUSINESS CONDITIONS

Business interests often coincide with investors’ interests and thus activities addressed to investors will have a positive impact on Kyiv-based companies. However, local business, especially small and medium-sized enterprises that form the basis for the city stable economic development, has its own specific needs that the city has to address.

According to the results of analysis of the current status of the city business climate, the most acute problems are: • absence of transparent procedures for land or real estate

allocation and property registration, absence of understand-able zoning

• non-transparent and unclear permit procedures

• absence of accessible mechanisms of financing, price of the existing loan resources

Within the framework of its terms of reference, the city has to reduce these obstacles to the minimum. For instance, a per-mit service created according to the strategic economic sector and the office for support of entrepreneurship have to simplify and clarify the existing rules and norms and to facilitate implementation of the necessary permit procedures as much as possible (including the procedures for business opening and termination).

Furthermore, these agencies have to take an active part in collection of information and formulation of recommendation on improvement of the existing municipal legislation. Thus, within the framework of revision of administrative procedures, the following changes are to take place: • elimination of excessive procedures and norms that re-

mained from the past although the respective state norma-tive requirements have been simplified

• elimination and simplification of the existing administrative restrictions

• development of simple and understandable procedures for

63

CITY HAS TO PROVIDE ALL POSSIBLE SUPPORT FOR STRATEGY FINANCING AND IMPLEMENTATION “CONDITIONS CREATING” POLICY

changing of the status of premises from residential to non-residential

Moreover, in cooperation with the city architectural agen-cies, clear and understandable standards should be developed for construction works for the entrepreneurial needs (e.g. a standard form for personal entrance/exit of a building for the premises located on the ground floor of a residential house).

Improvement of procedures should not be a one-time event but a standing program for the city, according to which the community’s wishes, data on requests submitted to the permit center as well as recommendations from other agencies of the city are to be analyzed by the profile department and on the bases of an annual report to form the foundation for further amendments of municipal legislation.

As to the problems with the local budget financing, the city is planning to resume its cooperation with financial institu-tions and to significantly enhance accessibility of programs on granting beneficial micro-loans to enterprises.

ENHANCEMENT OF STABILITY OF CITY ECONOMY

Economic stability is one of the main preconditions of the qualitative economic development of the city. Although to a large extent it depends on circumstances beyond the city control (the national economic situation, international events, etc.) within its powers and authorities the city has to do every-thing possible.

The city budget will be the main stabilization tool since unlike private investments the budget is controlled by the city and its revenues are strictly regulated and occur at the fixed intervals. Hence, budget financing in the first place is to create a stable basis for the city’s vital activities. Budget financing is to focus first of all on the following areas: • current expenses related to maintenance and operation of

the city’s vital activities

• capital investments in the key social projects

• primary support for the private sector in strategic clusters development

However, to make the budget an efficient instrument, the city has to improve its financial situation. Examples of other cities demonstrate several potential possible tools for recovery of the financial situation of Kyiv:

• Diversification of budget incomes: city finances depend significantly on one source of incomes – in the structure of Kyiv budget revenues, more than a half is accounted for by the individual income tax. The city aspires to diversify its incomes base in order to enhance stability of its financial situation.

Fig. 52. Structure of Kyiv budget incomes in 2010, %

Other taxes and charges Individual income tax

Other sources Subsidies/subventions

10% 17% 14% 59%

• improvement of efficiency of the existing sources: facili-tation of the economy coming out of the shadow sector, simplification of the procedures for collection of taxes and penalties using the e-government opportunities;

• budget planning: introduction of mid-term and long-term planning with annual revision of the goals taking into con-sideration the achieved results as well as clear prioritization of expenses and reduction of secondary programs

• increase of the share of taxes collected in the city.

64

EFFICIENT AND TRANSPARENT GOVERNANCE SYSTEM IS A NECESSARY CONDITION FOR CITY DEVELOPMENT GOVERNANCE SYSTEM

CITY GOVERNANCE PRINCIPLES The city governance system is to be based on universal

principles that, as the world experience shows, will enable us to ensure its maximum efficiency. These principles are described in more detail below.

ORIENTATION TO CITIZENS AND BUSINESS The main goal of work of the city administration is provision

of services to population, organizations and business. In prac-tical terms within the framework of the Strategy, it means both simplification of the procedures for coordination, issuance of permits and documents, and creation of attractive conditions for investments and comfort living.

SUBSIDIARITYAll tasks are to be assessed both at the lowest most re-

mote from the center and closest to the population level. For instance, when there are no economic or other serious reasons, school education issues should be the responsibility of district administrations.

TRANSPARENCY AND CLARITYCitizens of the territorial community of Kyiv, business

representatives and central government bodies should have all the necessary information about activities of local authorities such as: • publications in the mass media of the results of activities

and budget expenses by the city and district administra-tions;

• an open uniform register of all investment objects in the city, etc.

MAIN AREAS OF IMPROVEMENT OF CITY GOVERNANCE INSTITUTIONS

The system of city governance will be developed according to the aforementioned principles, including strategic initia-tives (e.g. e-government introduction) and the necessary changes in interaction with the investors and business. In general, to facilitate the Strategy implementation the struc-ture of city governance and internal process of its work will be optimized, and mechanism of external cooperation will be improved.

CITY GOVERNANCE STRUCTUREWorld experience shows that the majority of the systems

of local self-government are dynamic – the mechanisms of election of representative bodies (city council, city mayor), appointment of the head of the executive body (performance of this role by the city mayor or appointment of a special head) can be changed.

The target structure of the executive self-government body (city administration) is to facilitate efficient management of the city life:

1 Vertical

• Reduction of the number of hierarchical levels (from aver-age staff members to the head of administration) from eight to five. The number of managerial staff at all levels will not exceed 25%

• optimization of vertical information flows (introduction of electronic documents circulation and respective restriction and controls as provided for by the E-Government initiative)

2 Horizontal

• Single legal entity

• number of immediate subordinates of one manager – from 5 to 8

3 Internal

• centralization of administrative functions (accounting, work with personnel, analytical functions, IT procurements and so on)

• elimination of duplication of powers and authorities by departments and offices

Fig. 53. Areas of optimization of the executive body structure

2

3

1

65

EFFICIENT AND TRANSPARENT GOVERNANCE SYSTEM IS A NECESSARY CONDITION FOR CITY DEVELOPMENT GOVERNANCE SYSTEM

IMPROVEMENT OF KEY PROCESSES

For the purposes of comprehensive optimization of the process, first of all one will have to audit the existing processes and to identify opportunities for improvement stating the desired functions. This process is to precede development and introduction of the e-government system since the results of this audit will determine the target configuration of the information systems. The following areas should be mentioned among the main optimization activities:

BUDGETING AND PLANNINGFor successful Strategy implementation, a set of activities

will be carried out to improve the planning system, namely: • introduction of long-term and mid-term planning cycle;

• identification of financing priorities on the basis of strategic development goals;

• use of innovative technologies for comprehensive collection of actual information and analytical work on preparation of the future budgets;

• annual revision of mid-term goals taking into account with achieved results.

PROCUREMENTS The process of organization of procurements is important

both from the point of view of saving the taxpayers’ money (centralization of procurements can save up to 15–20%) and from the point of view of increased transparency of govern-ment activities. • creation of a single body that coordinates the process of

procurements for all local government bodies;

• timely presentation of complete information at all procure-ment stages on the official web-site.

PERSONNEL MANAGEMENTTo improve the quality of work of local government bodies’

employees, the following is needed: • introduction of the target indicators system (strategic goals –

management goal – department goal – employee’s goal) and their connection to the system of incentives and bonuses;

• training and professional development especially with intro-duction of new information technologies

Besides, in order to decrease the level of staff turnover (in the future- under 15%), the city has to guarantee fulfillment of all measures provided for by law to ensure social protection of civil servants.

INTERNAL COMMUNICATIONS AND REPORTINGThe target model of governance envisages improvement of

information support for activities and decrease of bureaucratic load of personnel related to internal communications and reporting: • introduction of internal electronic documents flow;

• restriction of the scope of issues that require documenting;

• introduction of a centralized ERP-system for internal finan-cial and managerial accounting and reporting.

STRATEGIC PROJECTS MANAGEMENTEspecially important large-scale project that require coordi-

nation among a large number of departments require special approach for successful implementation. To this end, the target model of management provides for creation of a special struc-tural unit whose work will be based on the project management principles.

OPTIMIZATION OF INTERACTION WITH CITIZENS

The main areas of improvement of cooperation with the citizens include increased transparency of work of the city government, provision of information about its activities, sim-plification of procedures. The targeted approach to provision of information to population is to form the basis for public control.

WITH BUSINESSIn addition to the ‘e-government” that will also enable us

to simplify several procedures, there is also a need to improve the business and investment climate – namely to decrease the number of permit documents and to simplify the permit issu-ance procedures.

WITH OTHER GOVERNMENT BODIESKyiv development cannot be discussed separate from the

surrounding territory. The issues related to interaction with Kyiv Oblast are described in more detail in the Section “Urban Agglomeration Development”.

66

PROGRESS IS EVALUATED ANNUALLY BY THREE MAIN INDICATORS METHODOLOGY OF PROGRESS EVALUATION IN STRATEGY IMPLEMENTATION

Monitoring area Contents Evaluation method

Indicators of Strategy implementation

• Economic growth goals Key indicator: GRP/per capita Auxiliary: citizens’ employment, average salary/available income as well as the index of incomes distribution in the society

Basic level and strategic goals Annual dynamics monitoring Monitoring of the position with regard to reference cities

• Comfort improvement goals Livability index –key indicators char-acterizing the situation in the sectors supporting the city’s vital activities

• Additional target indicators of individual sectors

Fulfillment of key indicators character-izing development of individual sectors of the city

Basic level and strategic goals Annual dynamics monitoring

Independent international evaluation International indexes of evaluation of the comport of living / suitability for life of the main cities of the world: Mercer, Economist Intelligence Unit

Monitoring of the gap with reference cities (Budapest, Prague, Warsaw, Moscow, St. Petersburg) and the index levels

Community feedback Polling (including anonymous) among: • city citizens

• local business representatives

• foreign investors

Basic level and dynamics of changes in opinions through annual sociological surveys, interviews and questionnaires

INDICATORS CHARACTERIZING QUALITY OF LIFE OF KYIV CITIZENS

EVALUATION PERIODICITY: ANNUAL In the first place, the quality of life will be monitored ac-

cording to the indicators characterizing economic wellbeing and comfort of living as well as the key indicators charac-terizing development of individual strategic sectors. These indicators enable us to monitor Kyiv progress in time as well as the situation and the progress with regard to the group of reference cities.

INDEPENDENT INTERNATIONAL EVALUATION

EVALUATION PERIODICITY: ANNUAL International surveys of the comfort of living in cities are an

important factor determining perception of a city in the inter-national arena. Such indicators make it possible to evaluate Kyiv’s arrears from the world standards of the comfort of living.

It is important to mention that the position in this rating is not as important as the gap with the world leaders in terms of the absolute value of the calculated comfort of living indica-tor. Thus, over the last ten years, Prague decrease its gap with New-York (basic level 100 according to the Mercer index) by 54%, but it came only seven positions higher in the rating (77–70).

COMMUNITY FEEDBACK

EVALUATION PERIODICITY: WITH REGARD TO THE PUBLICATION DATE

Direct feedback will be based on the two main interest groups: • community – to identify the level of support of the course of

city development and priorities for the future

• business representatives/investors – to identify support for the course of the business environment development, the situation with competitive power at the international level and priorities for further improvement.

Table 6. Areas of monitoring of implementation of the Kyiv City Development Strategy Until 2025

67

PARTICIPATION OF ALL COMMUNITY GROUPS IN STRATEGY IMPLEMENTATION WILL ENSURE CONTROL OF NOT ONLY RESULTS BY OF THE ENTIRE IMPLEMENTATION PROCESS / COMMUNITY INVOLVEMENT

FROM CONTROL TO PARTNERSHIPFocus on the community should become one of the key prin-

ciples of functioning of the city government. That is why the quality of life was selected the target criterion of the Strategy. That is why Kyiv citizens should evaluate efficiency of the activities related to the Strategy implementation. However, control will not be limited to mere provision of information – in order to ensure achievement of ambitious strategic goals, Kyiv citizens and the city administration have to develop comprehensive partnership relations based on: • provision of understandable information;

• feedback;

• involvement in implementation.

INVOLVEMENT IN IMPLEMENTATION

PROVISION OF INFORMATION

FEEDBACK

Fig. 54. Three components of partnership

PROVISION OF INFORMATION TO KYIV CITIZENSTimely provision of information to the citizens about the

work of the Strategy will be carried out with the help of the following instruments: • generally accessible Internet-portal of the city Strategy that

will regularly publish the results of projects implementation, investment competitions, planned activities and current news;

• phone information service where the citizens can learn about the status of individual activities;

• publication of information in the mass media about the progress in implementation of strategic projects;

• publication of key indicators that will enable monitoring of the general progress of the Strategy implementation.

FEEDBACKWork of the Strategy development demonstrated interest

of Kyiv citizens in the city’s life and enabled us to work out several methods of comments collection. For ensuring efficient feedback in the future, the city will use the following mecha-nisms: • collection of information and its forwarding to the profile

city authorities through the call-center and Internet-portal of the Strategy;

• regulatory participation of the Kyiv City State Administration in interactive TV and radio programs where the citizens will be able to ask pressing questions;

• regular polling (including anonymous) among citizens of Kyiv about individual initiative within the Strategy and the entire process of its implementation.

The gathered information will not only for the basis for further actions but it will also enable the City Administration leadership to carry out informed evaluation of the work related to the Strategy implementation.

INVOLVEMENT IN IMPLEMENTATIONKyiv citizens will not only observe but also have to take part

in fulfillment of the strategic vision in practice: • involvement of the active youth of the city in implementa-

tion of strategic projects (the Youth Project Office program)

• involvement of citizens of Kyiv in certain activities (e.g. the program on involvement of Kyiv citizens in improvement of landscaping and greenery planting in the near-house terri-tory)

• creation of a legal basis and mechanisms for co-financing of projects by the community with direct control of the final results quality.

68

STRATEGY – PROGRAM DEVELOPMENT DOCUMENT STRATEGY RELATION TO OTHER DOCUMENTS AND PLANNING

STRATEGY PLACE IN CITY DEVELOPMENT PLANNING: RELATION TO OTHER PLANNING DOCUMENTS

The long-term Kyiv City Development Strategy Until 2025 identifies the vision of the city for the following decades, sets forth strategic goals, outlines the principles of their achieve-ment and offers an approach to organization and management of the implementation process. During the Strategy develop-ment, a detailed analysis of the key sectors was carried out, successful experience of other cities was used, and surveys were carried out among the community ad public opinions leaders.

The Program on Economic Reforms in Ukraine for 2010–2014, which identifies the reform areas for the entire country, is also a guiding document for the Kyiv City Strategy. At the same time, the Strategy has an immediate impact on formula-tion of the City General Plan that is a tool of its implementa-tion in the part related to the territorial development plan-ning.

At the operational level, the Strategy is complemented by other more detailed documents that cover shorter planning periods. Below, there is a general scheme of the Strategy con-nections with other program documents.

Program of Economic Reforms in Ukraine in 2010–2014

General scheme of territorial planning in Ukraine

General Plan Kyiv-2025 Strategy

Detailed plan of territories

Zoning plan

Target programs by sectors

Sector NSector ...Sector 2Sector 1

Socio-economic development programme

City budgetInvestment programme

Fig. 55. Strategy relations to other program documents

NEED FOR STRATEGIC PLANNING Strategic planning of the city development can be deter-

mined as a comprehensive targeted process aimed at coordina-tion of different professional and political ideas that facilitate achievement of the identified development goals.

RELATION BETWEEN STRATEGY AND BUDGET PLANNING

The source of financing of strategic activities can be both budget allocations and the private sector. The relation be-tween the Strategy and budget is formed with the help of the budgeting mechanism shown below.

Strategy Cost of the strategic plan

priorities

Cost of target program

Source of financing

Cost of budget program

Target programs

Activities and tasks of the target programs

Budget programs

Inve

stm

ents

Priv

ate

se

ctor

Loan

Budg

et

...

Fig. 56. Relation between the Strategy and the city budget

Budgeting requires identification of goals, tasks and indica-tors by the officials to measure efficiency of budget funds spending. These elements of the budget program are to be based on the strategy of city development.

A budget program is a totality of activities aimed at achiev-ing the goal following from the Strategy with the help of budget funds. Such activities are identified and implemented by the manager of budget funds within the respective terms of reference.

A budget program is presented in the form of a document regulating budget funds spending for the purposes of strategy implementation and being the main mechanism of such imple-mentation with the help of budget financing.

69

GENERAL OLAN AS MAIN TOOL OF STRATEGY IMPLEMENTATION TERRITORIAL DEVELOPMENT

KYIV TODAY: TERRITORIAL DEVELOPMENT OPPORTUNITIES

The size of Kyiv territory is 84,000 ha, including: • 21% territory under residential and public buildings

• 7% industrial, municipal and warehousing facilities

• 9% territory under the transport infrastructure objects

• 52% landscape and recreation zones, planted land

• 7% water surface

• 4% agricultural and other lands

The city has about 6,400 hectares of territorial resources for various types of construction works, which accounts for approxi-mately 8% of Kyiv territory.

GENERAL PLAN IS A DOCUMENT ENSURING CITY DEVELOPMENT FOR IMPLEMENTATION OF KYIV DEVELOPMENT STRATEGY

The general development plan details the Kyiv-2025 with regard to territorial development identifying the areas of city development according to the strategic priorities: • identifies the priority conditions for creation of vial activities

environment

• identifies the boundaries and areas of development of the territories

• details development of engineering, transport and social infrastructures

• defines the regime of development preserving cultural and historical heritage

• identifies activities aimed at improving the environment and the quality of city ecology

• formulates a transparent and foreseeable plan of city develop-ment for potential investors

GOALS OF KYIV TERRITORIAL DEVELOPMENT One of the main goals of Kyiv city territorial development is

a stable and balanced development and rational use of limited land resources. In terms of stable territorial development plan-ning, the city aspires to achieve the following results: • creation of a balanced load on the engineering and transport

infrastructure, provision of the first-class infrastructure for citizens of Kyiv

• improvement of the comfort of living

• improvement of the environmental situation and reduction of greenhouse gas emissions

• increase of Kyiv’s attractiveness for tourists

• decrease of social inequality in the city

• creation of quality advantages and improvement of convenience of the use of public transport compared to individual transport

THE STRATEGY CONSISTS OF FIVE FUNDAMENTAL PRINCIPLES OF TERRITORIAL DEVELOPMENT

Priority areas of Kyiv territorial development are provided for in the Strategy taking into consideration the requirements for stable development and social responsibility. These are:

1. Compactness • preservation of the city boundaries till 2025 and city develop-

ment making it “deeper, higher, denser” protecting the green zones both inside and outside the city

• priority of secondary construction over primary construction first of all as a result of reconstruction of the existing objects

• harmonious complex real estate development, poly-functional constructions that are to ensure higher self-sustainability of individual neighborhoods and city districts

2. City development as a cultural and business center • regeneration, renovation and re-orientation of institutional

territories and industrial zones

• creation of a “new city” – development of poly-centricity of several new centers of business activities (e.g. the Kyiv-City business center on the left bank)

• support of the balance of dwelling and labor attraction, reduc-tion of commuter migration

• development of the public environment involving the citizens, including support for creation of various community self-organization forms (such as an apartment building co-owners associations) as a precondition of care about the city

3. Balanced agglomeration development • coordination of the territorial development “from general to

particular” – coordination of development of Ukraine, oblast, Kyiv

• balanced distribution of areas of specialization and spheres of economic activities based on the existing competitive advan-tages and resources of the city and oblast

• development of joint projects and a plan of joint actions of the city and oblast

• joint identification of territories for settlement and prospec-tive construction

4. Responsibility to the future generations • Creation and development of the “old city”, protected cultural

and tourist zone in the historical Kyiv areas

• support for complex construction – construction of health care, sports, engineering and transport infrastructure, centers of business activities in the new construction areas

• preservation and expansion of green zones

• comprehensive approach to renovation of the street environ-ment (compliance with safety requirements, esthetic conve-nience, cleanness)

5. Strategic planning of city construction activities • General City Plan, zoning and other territorial planning tools

are to ensure implementation of the main strategic projects

• ensuring transparency with the help of creation of the information system from the objects of investments and city development issues

• development of a quality dialog with the local communities of the city, their involvement in the city development activities

• creation of a city construction cadaster – the uniform system database of standards and norms, functional zones, real estate and infrastructure objects, and land resources of the city

All the aforementioned principles play a crucial role in the General Plan development, formulation of the city construction policy, support for the complex construction regime, mainte-nance and renovation of the city territory approximating it to the “open city” concept.

70

CITY WILL DEVELOP IN HARMONY WITH THE OBLAST DEVELOPMENT OF CITY AGGLOMERATION

KYIV IN THE OBLAST CONTEXTKyiv Oblast occupies a territory with the size of 2,810,000

hectares, which makes 4.7% of the territory of Ukraine. The size of population is 1,849,600 persons (3.7% of the population of Ukraine), out of which urban population accounts for 58% and rural – for 42.1%.

Fig. 57. Kyiv Oblast territory

At the same time, Kyiv is a separate administrative unit of governmental subordination and does not belong to the oblast. The city size is nearly one and a half time higher than that of the oblast in terms of population, and its territory accounts for less than 3% of the oblast territory.

COORDINATION OF DEVELOPMENT WITH THE OBLAST WILL ENSURE HARMONIOUS DEVELOPMENT

Kyiv development will take place in harmony with the oblast that will ensure mutually beneficial cooperation and coordination of Kyiv’s activities with the oblast, development in the interests of both preventing negative consequences of uncoordinated activities.

KYIV AGGLOMERATION IS THE SINGLE CITY CONSTRUCTION SYSTEM

The planned model of Kyiv development in the long-term perspective is seen as an open city construction system – Kyiv agglomeration. The main center of this system is Kyiv, and the sub-centers will be formed at the level of satellite cities.

In the territory of Kyiv agglomeration, there are enough resourc-es to place objects of high-tech production and services sector, housing, transport, municipal and recreational construction.

SET OF DEVELOPMENT ACTIONS REQUIRE COORDINATION OF ACTIONS OF THE CITY AND OBLAST

To support joint interests of Kyiv and Kyiv Oblast the following steps are envisaged in the territorial planning: • balanced development of the system of settlement in Kyiv and

Kyiv Oblast

• integration in the single system of transport infrastructure of Kyiv and the oblast

• development of a joint system of engineering infrastructure of Kyiv and the oblast in order to ensure reliability of its functioning and increase quality of provision of services to the population and business

• coordinated development of the social and municipal infra-structure of Kyiv and the oblast

• coordination of environmental policy

• development with preservation of historical welfare of the single tourist potential of the region creating the image of a world-scale capital city.

MOST IMPORTANT ACTIVITIES REQUIRING COORDINATED ACTIONS OF THE CITY AND OBLAST RELATED TO FIVE DEVELOPMENT AREAS • The goal for development of the joint settlement system is:

|| development of the objects of labor, cultural and general, recreational attraction of the population

|| creation of territories for the infrastructure establishment and development

|| increase of the investment attractiveness of the region

• economic cooperation between the city and the oblast has to take into consideration the main competitive advantages and resources:

|| unique transit potential resulting from the crossing of three international transport corridors

|| availability of the necessary areas and infrastructure close to the main transport hubs

|| availability of the necessary professional, science and research resources

|| closeness to residential buildings, possible impact on the comfort of average citizens of the enterprises of some economic branches

|| cost of the available labor resources

• for the purposes of integration of transport infrastructure, the following will be coordinated:

|| routes of the city and suburb public transport

|| construction of logistic centers and terminals in the oblast territory to free Kyiv from truck traffic

|| completion of construction of the Large Circular Road

|| creation of the system of backup main exists from Kyiv or the most busy roads, construction of chord transit highways

|| creation of five transport change junctions with parking places (park and drive), their connection to the city by out-of-street express transport (e.g. rail routes)

• for the purposes of development of the joint engineering infrastructure system, the following is envisaged:

|| distribution of functions between the city and oblast to cre-ate engineering infrastructure for the suburb citizens

|| allocation of sites and construction of garbage processing plants in the oblast territory

• placement of objects in the oblast territory that require large areas as well as sanitary and epidemiological conditions for the use (treatment and recreation institutions, rest homes, sanatoriums, large sports and recreation objects) for develop-ment of a joint system of social and municipal infrastructure

• implementation of coordinated environmental policy envisages:

|| allocation of territories for planting common for Kyiv and the oblast

|| technological re-equipment and movement of certain industrial objects beyond the city boundaries to the oblast territory.

71

CITY GROWTH WILL BE SOCIALLY BALANCED SOCIAL RESPONSIBILITY

SOCIAL RESPONSIBILITY IS AN IMPORTANT ELEMENT OF KYIV CITY DEVELOPMENT STRATEGY

Along with the economic growth, an important priority of Kyiv development is achievement of high standards of living for all its citizens. In the course of transformations provided for in this Strategy, it is very important to take into consid-eration the impact of the implemented measures on vulner-able social groups and to ensure availability mechanism for mitigation of the outcomes of Strategy implementation for such social groups.

The key areas of ensuring socially responsible growth: • Reduction of the gap in the incomes level. One of the key

priorities of social policy of the city is to decrease the gap between the rich and poor citizens of the city and to cre-ate a sustainable middle class. In view of this, Kyiv strives to develop as a city of opportunities aiming at ensuring development of entrepreneurship, creating competitive en-vironment for employers win the professional labor market, improving the opportunities to receive education that will be in high demand.

• addressed subsidies on the use of public transport and water supply, sewerage and heating services. The system of public transport in Kyiv requires significant changes in order to increase the quality of its services and acces-sibility. One of the sources of financing of the necessary changes is supposed to be a gradual transition to the market price-setting principles. Monetization of benefits and addressed subsidies on the use of public transport for citizens with low incomes will make the public transport services accessible for such citizens, and they will become a more efficient mechanism of social protection than travel privileges.

Reform of the water supply, sewerage and heating sectors provided for in the strategy implies involvement of private investors. It will inevitably lead to liberalization of price-set-ting. As in the case of public transport, addressed subsidies are proposed to ensure social protection of the most vulner-able social groups. • Social integration. This area reflects Kyiv’s commitment

to ensuring the principle of social equality in the city development process. Socially vulnerable groups of popula-tion are to be integrated in the society and enjoy equal rights. The city will monitor social equality indicators, ensure access of socially vulnerable social groups to social privileges, employment opportunities, etc. For the most vulnerable categories of population, addressed assistance will be provided.

• Affordable dwelling. A serious challenge for the city is provision of decent dwelling conditions for its citizens. The level of provision of the dwelling fund for citizens of Kyiv is far behind the level of European cities. At the same time, complete provision of social dwelling for everyone will not be possible even until 2025. The priority in resolution of this problem will be place on development of the service housing market.

• Provision of social infrastructure objects for citizens. Support of high standards of living and harmonious city development are impossible without ensuring a high level of the social infrastructure services. In view of the pres-ent misbalance between demand for and supply of such services as well as the expected growth of Kyiv population, the city aims to provide enough schools, nursery schools, health centers and hospitals for its citizens by 2025 taking into consideration the needs of individual districts and the principles of sustainable development of territories.

72

STRATEGY WILL BE IMPLEMENTED DURING 15 YEARS IN THREE STAGES STAGES OF STRATEGY IMPLEMENTATION

The scope of tasks to be solved is very large and in order to achieve the vision goals, the implementation process is to be organized in several stages. The strategy will be officially reconciled and approved – it is the first check point. The next check point will be an international event – Euro 2012, which is the most important tool of city promotion, including promotion among the investors.

The following three check points – 2015, 2020 and 2025 – are the end of the stages of Strategy implementation. Orientation to 2015 and 2025 are presented in figures in the form of key city development indicators. It is important to mention that despite this connection, progress monitoring will be carried out on an annual basis.

STAGE 1. CAPITAL CITY STANDARD – LAYING THE FOUNDATION

FOR DEVELOPMENT

2011–2015

• Forming the basis (approval of the ba-sic projects, creation of respective struc-tural implementation units, compilation of a register of investment projects, adaptation of internal normative base of Kyiv to the Strategy requirements)

• Clean city and cozy common area (in-troduction of programs on house ameni-ties and near-house territories, start of the program of thermo-modernization of the residential fund, works on the city landscape gardening and beatification of public areas)

• Cultural and tourism center (promo-tion of the city at the international level as an attractive tourist route, including the use of Euro-2012 as the unique plat-form for promotion and development of a new city’s cultural and tourist offer)

• Modern transport and infrastructure (active works on optimization of the existing systems, replacement and mod-ernization of the rolling stock of public transport, repairs and reconstruction of the city’s engineering infrastructure objects)

• The city open for business (reform of the city governance system, normative base and promotion of investment projects)

• Start the development of the economic competitiveness programmes...

STAGE 2. EMERGENCE OF COMPETITIVE

CENTER – GROWTH IN PRIORITY AREAS

2016–2020

• . . .continue competitive develop-ment (support for and development of priority economic areas, city’s competitive clusters)

• Healthy citizens (support for healthy lifestyles among Kyiv citizens, comple-tion of the health care system reform)

• Poly-centric city (creation of separate business, natural recreation and later – administrative centers of the city)

• International business center (pro-motion of the city in the international arena as a business center, creation of necessary conditions for involvement of international companies)

STAGE 3. DEVELOPMENT OF INTERNATIONAL CENTER –

WITH CITY’S COORDINATION PARTICIPATION

2021–2025

• Free economic development regime (eco-nomic development due to local business and international investments)

• Further development of social programs in the city, promotion of social responsi-bility in business community

• Further work on the support programs (use of the introduced mechanisms for further improvement of business and investment environment in the city, promotion of the necessary changes at the national level)

KYIV’S CURRENT POSITION AND TRENDS

74

KYIV’S STRENGTHS DETERMINE SIGNIFICANT DEVELOPMENT POTENTIAL SWOT-ANALYSIS

GENERALIZED SWOT-ANALYSIS FOR KYIV

Fig. 58. SWOT-analysis methodology

STRENGHTS WEAKNESSES

THREATSOPPORTUNITIES

STRENGTHS • economic and financial center of Ukraine, “center of gravity”

for capital and resources

• highly qualified workforce, significant concentration of sci-ence and research personnel

• relatively (compared to the Eastern European capitals) cost of living

• high loyalty and city’s emotional appeal1 among the citizens

• relatively high level of personal safety

• the lowest level of atmosphere emissions of pollutants among the compared cities

WEAKNESSES • very worn-out engineering and transport infrastructure

• insufficient transparency and unpredictability for investors and economic agents

• unfavorable environment for business development – a large number of procedures, permits and oversight bodies

• low popularity of active life style, deterioration of health indicators among the citizens, a sustainable trend toward the growth of consumption of alcohol and tobacco

• chaotic real estate development and continued loss of the historical appearance of the city

• absence of a clear focus on competition in the sphere of future economic development

• weakly differentiated base of the budget incomes, growing withdrawals to the State Budget that limit budget financing of the city development

OPPORTUNITIES • the capital city status and concentration of resources – an

opportunity to use of the economy of scale for the purposes of city development

• unrealized tourist potential, including the huge cultural and historical heritage – history, architecture, green zones, the Dnieper River and its surroundings

• free visa regime of Ukraine and immediate proximity to two large economic impact centers (EU and Russia)

• relatively low level of economic development, numerous unused opportunities in the service market compared to the developed countries

• inefficient use of territories (including industrial and insti-tutional zones (within the city

• availability of a large shadow sector in economy – a poten-tial for increased budget incomes

• large number of universities and education opportunities

• direct air traffic with the scale comparable to the developed CEE capitals

THREATS • high corruption level

• continued political instability

• limited opportunities of the city to influence issues at the national level, first of all regarding the budget and invest-ment spheres

• dispersal of priorities and unclear division of responsibility during the Strategy implementation

• deterioration of citizens’ health indicators, insufficiency of the current education, workforce of the developing indus-tries

• absence of proper positioning and promotion of the city in the international arena

1. According to the results of the conducted opinions survey

75

MIGRATION TRENDS WILL INCREASE IMPACT ON DEVELOPMENT DEMOGRAPHIC TRENDS AND CHALLENGES

KYIV DEMOGRAPHIC TRENDS

Table. 7. Demographic assumptions

Population 2008 20251

Kyiv

- permanent 2 724,2 3,1

- actual 3 144,3 3,7

- daily 3 490,3 4,0

Suburb 969,9 1,1

According to the current forecast of the Institute of Demog-raphy and Social Research of the National Academy of Sciences of Ukraine, the permanent population of Kyiv by 2025 will increase by 14%.

Fig. 59. Growth of Kyiv population, thousand persons

-5

1995 2009

Net migration

Net natural growth

200720052003200119991997

-8 -1 -3

5 58

11

17

27 27

2522 25

20

Before 2008, the natural growth of population in Kyiv was negative characterized by high indexes of mortality and low birth rate, especially during the 1990s economic crisis period. Today, the situation began to improve, and since 2008 the natural growth of population has been positive.

Fig. 60. Net migration increase, persons per year per 1,000 citizens

Prague

Warsaw

Budapest

MoscowSt.Petersburg Kyiv

20

-10

10

0

2004 2005 2006 2007 2008

Being the largest center of economic activities in Ukraine, Kyiv annually receives a large number of migrants, and ~10% of the current Kyiv population was formed as a result of migra-tion during the last 15 years.

At the same time, the level of immigration (mainly internal) was and still is one of the highest among the compared cities (Fig. 60), which can be explained by a significant difference between the level of economic wellbeing of Kyiv and other regional of Ukraine and a comparatively liberal migration policy of the city.

The main challenges for Kyiv with the continued current demographic trends will be: • increased load on the engineering and transport infrastruc-

ture of the city

• socio-cultural integration of new citizens of the city

• preservation of the ethno-national balance in all districts of the city

GLOBAL DEMOGRAPHIC TRENDS RELATED TO KYIV CITY DEVELOPMENT

Sub-national migration. Traditional immigration centers with national economy development become donors for other regions. It is especially typical for mega-cities in the devel-oping markets (e. g. Mexico City), which lost the status of the single economic center of the country as a result of the growth of economic activities in the regions and faced the problem of internal competition for labor resources. Economic development of Ukrainian regions can lead to a decrease of the inflow of talented staff to Kyiv. Prevention activities: in-creased opportunities for self-realization, first of all by means of activities in the sector of Economic Development, Private Entrepreneurship and Investments.

International migration and competition of talented staff. Cities involve population from other cities/countries with poorer opportunities and worse living conditions and hence often lose highly qualified professionals to more con-venient and developed places. The risk is in the decrease of staff qualifications because of immigration of staff with lower qualification. To ensure economic development in the knowl-edge economy spheres, an ability to involve best talents to the city is a precondition for success. Kyiv needs to implement a focused policy on involvement and retention the most highly qualified professionals in the city, for instance, by means of simplification of procedures for getting a job permit as well as creation of zones with increased comfort of living. Prevention activities: full-scale implementation of strategic initiatives International Harbor for Headquarters and Made in Kyiv.

Formation of agglomerations. The leading cities become economic centers of agglomerations that include satellite cities requiring coordinated development and consideration of specific feature of agglomeration in the process of infra-structure development. During development and implementa-tion of the Strategy, Kyiv has to take into account its status of a leading center of a multi-million agglomeration (see the section on agglomeration development). Prevention activi-ties: implementation of activities provided for in the Section Development of Agglomeration.

1. In millions according to the forecast prepared by the Institute of Demography and Social Research of the National Academy of Sciences of Ukraine.

76

CURRENT NORMS AND PRACTICE CREATE SIGNIFICANT OBSTACLES FOR BUSINESS AND INVESTORS CITY BUSINESS ENVIRONMENT

Kyiv as the capital and economic center of Ukraine attracts a large number of both national and international companies. Thus, nearly all 100 largest Ukrainian companies2 are present in Kyiv, and 39 of them have their headquarters here. The city’s strategic location with regard to trade ways and its relative openness for foreign companies make it an attractive regional center in the CEE and CIS. One should mention specifically that Kyiv accounts for 34% of foreign direct investments in Ukraine, and 20% of all capital investments in 2009. Besides, Kyiv has a sufficiently developed layer of small and mid-size business, which covers more than 60% of employment and nearly 50% of the city’s GRP.

Unfortunately, the existing situation in many cases was created not due to but despite the obstacles posed on the way of business development by various normative regulations, procedures and inspections. Thus, according to the index of business conduct easiness Ukraine and Kyiv together with it are at a lower stage of development and during the last year they came down from the 149th to 152nd position. In terms of some parameters, Ukraine is the last in the world. With regard to the majority of indicators, the country’s position is determined by the situation in the largest city and thus this position is applicable for Kyiv as the city.

Whereas the investment and business climate to a large extent is determined by national policy and regulations on the basis of several parameters, the city role is also important, especially with regard to procedures for business opening and termination, permit system, property rights registration.

Not only national restrictions but also permit procedures and inspections carried out by the city disable opening or legal functioning of some enterprises (e.g. opening of an object by an international hotel operator required collection of 652 signa-tures and lasted for three years; permit procedures for placement of a logo of another company on the building where it rented its office lasted for eighteen months), and uncoordinated work of city services disrupts the work of companies.

Local norms, inspections and other obstacles present signifi-

cant problems for small business in the city. These problems depress development and sometimes push a significant part of activities to the shadow sector. Thus, European small business on average is thrice more productive than in Kyiv (based on the results of comparison of the shares of employment and impact on the GNP/GRP). On the part of external investors and foreign companies inequality of rights in interaction with local agencies can often be observed compared to local companies that result in significant restriction of foreign investments in the city.

The most visible problems of investors and business today are related to: • absence of transparent procedures for land or real estate al-

location and property registration, absence of understandable zoning

• non-transparent and unclear permit procedures

• absence of accessible mechanism of financing, price of the available loan resources

• accessibility of quality and reliable infrastructure

To support local companies and to attract foreign companies and investors to the city, a number of activities is planned in the Strategy aimed at improving the existing situation: • simplification of procedures and norms within the scope

of the city’s terms of reference. Creation of accessible and efficient mechanisms of interaction between the city and business (permit centers in every city district), and between the city and investors (city investment agency)

• development of the system of motivation for Ukrainian and foreign companies and investors that will implement projects within the framework of nine main strategic initiatives of Kyiv city development and creation of the city competitive clusters (after their approval within the Made in Kyiv initiative)

• renovation of the existing and creation of new infrastructure objects for business (including creation of new business centers of the capital city within the City Center Nearby initiative)

1. According to the World Bank’s Ease of Doing Business Index 2012 published in June 2011 2. According tot eh rating of 100 largest Ukrainian companies published in Top 100, July 2011

Criterion Position‘121 National level City level

Business conduct easiness 152 (out of 183) Legal systemSovereign rating

Fina

ncia

l Loan granting 24 Bank regulation Innovative business financing

Taxes payment 181Majority of taxes

at the national level, centralized taxation administration

Rates of some taxes (tourism, property tax)

Non-

finan

cial

Business opening 112 List of procedures, general regulation Administration of procedures, registration of foreign direct investments

Work with permits 180 Types of activities subject to licensing, permits introduced only by laws

Some permit authorities at a local level, some permits and approvals introduced by local administration bodies

Real estate registration 166 General regulation Administration of registry maintenance procedures

Protection of investors 111 Corporate and stock exchange legislation None

International trade 140 Customs bodies managed at the national level None

Contracts implementation 44 Court system and legislation None

Business termination 156 General regulation Administration of procedures

— Balance of the roles of the city level and the national level

77

KYIV HAS TO PRESERVE ADVANCED ECONOMIC DEVELOPMENT PACE KYIV’S ROLE IN DEVELOPMENT OF UKRAINE

KYIV’S ROLE IN UKRAINIAN ECONOMY – OUTRUNNING GROWTH

Kyiv is the key center of economic activities in Ukraine, its financial and investment center. Thus, with the share of population being 6% of the total Ukrainian population, the city share in Ukraine’s GDP is 19%. Furthermore, Kyiv accounts for 18% retail sales in the country and 23% of all construction works.

Due to the high level of economic activities, the level of city’s wellbeing is much higher than average in Ukraine.

Fig. 61. Kyiv’s role in Ukrainian economy,

% of the total (2009)

Fig. 62. GDP (GRP) per capita, thousand UAH,

2009

6

19

34

20

61

20

Population

GDP

FDI

Kyiv Ukraine Capital investments

х3

The dynamics of Kyiv’s economic development are also constantly ahead the general Ukraine’s indicators: an average annual growth rate of Kyiv’s economy in 2004–2009 was 5.7%, which is 2.3 times higher than the growth of rate of national economy during the same period (2.5%).

In order to achieve the identified goals, Kyiv’s GRP should grow by 6.5%1 per year

until 2025, which is 1.5–2.5 % higher than the expected rate of Ukraine’s

economic development.

Fig. 63. Real GRP (GDP) growth rate, %

2004

Kyiv20%

10%Ukraine

20102005 2006 2007 2008 2009

The experience of development of some Eastern European capital cites also demonstrates the outrunning growth of capital economies compared to national economies, which fact confirms ambitiousness but still reality of the planned development rate.

Fig. 64. Average annual real GRP (GDP) growth in 1996–2007, %

5,1 4,8

7,9

3,2 3,54,6

Prague Budapest Warsaw Chech Republic

Hungary Poland

+1,9 +1,3

+3,3

KYIV AS EDUCATION AND INNOVATIONS CENTER Historically, Kyiv has a powerful science and education base

that will form the foundation for innovative city development. The city has 69 out of 350 higher education institutions of accreditation grades 3–4 training 560,000 students (~20% city population).

Fig. 65. Kyiv’s share in science and education system of Ukraine in 2009

39%

25%

20%

9%

33%

Higher education institutions Levels 1–2

Higher education institutions Levels 3–4

Number of students

Research and tech-nical specialists

International conferences

% of average for Ukraine (some indicators)

A vast base of science and education institutions and Kyiv’s leading roles in research and innovative activities in Ukraine enable us to implement the program of Kyiv city development on the basis of investment-innovative model.

KYIV AS ADMINISTRATIVE AND CULTURAL CENTER OF UKRAINE

The status of the capital city and location of central govern-ment bodies in Kyiv charge the city with additional require-ments concerning support in fulfillment of their functions but simultaneously facilitate Kyiv’s development as the center of business tourism, forums and conferences.

1. In 2010–2025

78

DEVELOPMENT BASED ON UNIQUENESS – GUARANTEE OF DECENT PLACE IN EUROPE KYIV’S ROLE AND PLACE IN INTERNATIONAL CONTEXT

KYIV’S ROLE IN INTERNATIONAL CONTEXT – EAST AND WEST MEETING PLACE SOME GLOBAL TRENDS THAT KYIV CAN SUCCESSFULLY USE

Business globalization. Among many trends and instances of globalization, especially important potential for Kyiv is offered by: • outsourcing of various business part in the regions with low costs

• “regionalization” of management, i.e. placement of regional headquarters closer to the sales markets

• growth of passenger and cargo flows

International specialization. To attract investments and create competitive environment, countries and cities specialize in the niches where they have first-class expertise or advan-tages in expenses (or both).

Individualization of tourism. With development of informa-tion technologies, tourism becomes less and less “standard-ized” when a tourist uses available information about cities, sightseeing places and local events plans an individual travel.

East-West axis

South-North axis

~ 3-hour air traffic zone

Main transport flows directions

Fig. 66. Kyiv’s location in global transport flows

OPPORTUNITIES FOR CREATION OF UNIQUE KYIV’S POSITION

Kyiv’s location in the geographic center of Europe creates numerous opportunities for economic development and fulfill-ment of Kyiv’s potential as a cultural and tourist center.

The main potential clusters for using Kyiv’s advantages can be as follows: • International cultural tourism where Kyiv’s potential is

significantly underused

• Business and conference-tourism. For citizens of the ma-jority of countries, entrance to Kyiv is visa-free, and a flight from the majority of European states, Near Eat and Middle Asia takes not more than 3–4 hours.

• Passenger and freight transport, logistics (first of all, air companies, provided there is infrastructure development) creation of an international logistic center

• center of international companies’ headquarters, especial-ly regional centers of global corporations and firms operat-ing on the CIS markets

At the same time, one has to take into consideration that implementation of all ambitions projects is based on the op-portunity to attract capital and talented staff to the city. In this sphere, all modern cities compete both with other cities in the region and with global metropolises.

KYIV WILL COMPETE IN THE INTERNATIONAL ARENA WITH OTHER CITIES

Attraction of talented staff. A breakthrough in the economic development, especially in “knowledge economy” is impossible without involvement of the best national and international talented specialists, the majority of whom have a chance to choose the geography of application of their talents. An ability to attract the best talents is the key condition for success. Kyiv has to create conditions for attraction and reten-tion of the best Ukrainian talents as well as first-class interna-tional specialists.

Attraction of investments. Investments form the basis for economic development, and to attract them, the city has to implement the maximum support policy. High-quality infrastructure, comfort of living, simple and clear regulations attract investors. Successful examples of investment projects reduce the perception of investment risk and facilitate further investments.

STRATEGY DEVELOPMENT METHODOLOGY

80

POSSIBILITY OF RESULTS MEASUREMENT – CRUCIAL PRINCIPLE OF THE STRATEGY STRATEGY DEVELOPMENT PRINCIPLES

OPINIONS OF EXPERTS AND CITIZENS ARE AS IMPORTANT AS STATISTIC DATA ANALYSIS STRATEGY DEVELOPMENT METHODOLOGY

MEASURABILITYThe key principles is that all goals of the Kyiv City Develop-

ment Strategy Until 2025 have clear quantitative or qualita-tive presentation that enable us to monitor the progress of its implementation and discipline all implementers.

SUSTAINABILITYThe development strategy is not a program of a single sprint

dash, but a long-term city development marathon based on the sustainable development principles that will enable us to pass the city to the future generations with a resource base that makes possible the further improvement of living standards.

FAIRNESSThe development strategy is oriented to involvement of all

groups of citizens in social and economic processes and provi-sion of proper living conditions for everyone.

AMBITIOUSNESSThe Kyiv City Development Strategy Until 2025 provides for a

qualitative breakthrough in the city development and approxi-mation of the living standards to the leading Eastern European capitals.

PRAGMATISM/PRACTICABILITY The strategy initiatives are ambitious but at the same time

realistic and aimed at improving the specific parameters of the quality of Kyiv citizens’ life.

Directions for action. Strategic initiatives of city develop-ment are formulated as specific tasks with the clearly identi-fied responsibility, goals and implementation timelines.

OPENNESS/TRANSPARENCY During the Strategy development, opinions of all key stake-

holders, first of all Kyiv citizens, were taken into consideration.

Fig. 67. Sources of information used for development of the Kyiv City Development Strategy Until 2025

• surveys conducted among citizens of Kyiv and suburbs (February 2011, 1,600 respondents)

• public discussion of the strategy, including through the Kyiv Strategy 2025 portal

• 4,400 citizens of Kyiv who pro-vided their comments to the first version of the document

• 200 collective appeals

• 200 commenters on the Strategy page on the Facebook

• comments, feedback and proposals published in the mass media

• experience of develop-ment of eastern European capitals

• world trends of urban agglomerations develop-ment

• survey conducted among more than 30 experts and public opinion leaders

• opinions of more than 100 representatives of busi-ness, government, civil society and international organizations

• statistic data on the cur-rent situation in the sec-tors of city’s vital activities

• comparative analysis of the group of similar cities

• public hearings on amend-ments to the Strategy

• evaluation of individual parts of the final version of the Strategy by profile experts

Public opinion

Comments from Kyiv citizensDiscussion in mass media

KYIV CITY DEVELOPMENT STRATEGY UNTIL 2025

Expert evaluation

First version of the Kyiv City Development Strategy Until 2025

Expert opinion Data analysisInternational experience and trends

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81

STRATEGY DEVELOPMENT – MULTI-STAGE AND MULTI-FACETED PROCESS STRATEGY DEVELOPMENT METHODOLOGY

Public discussions

Programs development

and implementation

Development of the city’s future

vision

Formulation of initiatives

and goals for individual sectors

ADVISORY BOARD OF THE PROJECT

ORGANIZATION OF DRAFTING WORK

CONSORTIUM OF KYIV CITY DEVELOPMENT STRATEGY • Kyiv City State Administration • Efficient Governance Fund • The Boston Consulting Group • The Word Bank• The Cities Alliance • Institute of Economy and Forecasting of the National

Academy of Sciences of Ukraine • Institute of Demography and Social Research of the Na-

tional Academy of Sciences of Ukraine • Ukrainian Center of Economic and Political Research

named after Razumkov • Institute of Kyiv General Development Plan • R&D Institute of Social and Economic Development of the City • Research Institute for City Social and Economic Development

Work on the City Development Strategy started with creation of the authors consortium that included the leading inter-national and Ukrainian organizations and expert institute. On the part of Kyiv City State Administration we created a working group of representatives of all main sectors of the city’s vital ac-tivities that will be responsible for the Strategy implementation.

Special attention was paid to including public opinion. A specially created Public Council at its monthly meetings

discussed the main interim results. The Council consists of more than 40 public opinion leaders, political actors, representatives of culture, business, sports, and mass media.

The main goal of the council’s work is to present expert and public options. During the period of the consortium’s works, two large-scale surveys were carried out: 1) survey of 1,600 randomly selected citizens of Kyiv and suburbs 2) survey of more than 30 experts – representatives of the

public, business and government. The survey results had an immediate impact on formulation of priorities that were included in the Strategy. Brief summary of results is resented in the Appendix to this document.

STAGES OF DRAFTING WORKAt the initial stages, analysis of the city’s current situation

was carried out to compare it with similar cities, vision of the city’s future and its mission was developed, public discussion was organized and implementation program developed.

The first version of the Strategy published on May 31, 2011 became the first step and gave an opportunity to the public and experts to present their comments on the shortcoming and omissions of the draft document. For six months, comments and proposals came through the organized discussions and round tables as well as through the wider methods of informa-tion collection (call-center, special mail box, dedicated points of comments collection of the city agencies, etc.)

Besides, during this period mechanisms of implementation of the Strategy initiatives were developed, plans for individual goals were finalized, and the most promising investment proj-ects were analyzed and selected so that after approval of the Strategy, implementation activities could be started at once.

Based on the public comments, a database of more than

7,000 was created and taken into consideration to revise some parts of the Strategy, after which the final wordings were proofread by recognized external experts to whom the project team is very grateful for their assistance (see the Section “Ac-knowledgements for participation in Strategy development).

Fig. 68. Organization of work on the Strategy development: wide involvement of government, experts and community

Analysis of the current

situation

Strategy approval by Kyiv City Council

Strategy implementation

Stage 1

January 2011 2012

Stage 2 Stage 3 Stage 4 Stage 5

82

FINAL VERSION OF STRATEGY IS BASED ON WISHES OF KYIV CITIZENS AND EXPERT COMMENTS ANALYSIS OF COMMENTS FROM KYIV CITIZENS AND EXPERT TO THEIR CITY’S STRATEGY

The city strategy is to reflect wishes and ideas of its citizens since it is their wellbeing that the city government should be oriented to. That is why the comments provided by Kyiv citizens during consid-eration of the first draft of the document were extremely important for the strategy development. During six month, more than 4,400 citizens provided approximately 7,300 comments1.

In the course of detailed analysis, Kyiv citizen’s appeals were first divided in general that contained no specific proposals, and specific with the proposals answering the What? Where and How? questions. Specific proposals were divided into strategic that required complex and stage-by-stage implementation, and opera-tional calling for specific and rather simple actions.

During the final analysis stage, operational comments were divided in priority that with insignificant expenses will lead to the most visible results(quick wins), and other that are also necessary

but require a more complex approach and will give a less signifi-cant general result.

Strategic comments were carefully analyzed with regard to the main sections of the Strategy.

The main comments concerned the transport sector, environ-ment (including green energy production), health care (including healthy lifestyles), and the housing and utilities sector (including insulation and increased energy efficiency of the housing sector).

Unfortunately, some comments could not be included into any group but all of them were carefully analyzed and some of them also lead to the changes in certain sections of the final document2.

Furthermore, during the discussion process of the first ver-sion of the documents we received many proposals concerning specific description in the strategy implementation section, and more detailed information about the financing mecha-nisms. Although the majority of strategy initiatives were developed on the basis of a pragmatic approach, the aforemen-tioned comments emphasized the need for a more detailed consideration of the implementation issues.

Eventually, Kyiv citizens’ comments resulted in the most significant changes of the document: • finalization of the “vision” of the city and its mission with a focus

on “green” development (preservation of the city’s landscape and recreation territories and plants) and city development according to the principles of sustainable development of territories.

• addition of a separate strategic initiative on energy resources conservation and increased role of renewable sources in the city’s energy balance – Effective Energy System

• significant improvement of goals and approaches to the trans-port sector development, focus on sustainable mobility

• significant improvement of the economic sector, increased attention to small and medium-size business

• revision and more detailed elaboration of the Strategy Imple-mentation Program section

• finalization of information on the most promising investment projects, their presentation in the form of a separate Appendix

22%

15%

15%

13%

Fig. 70. Areas of strategic comments provided by Kyiv citizens

Transport

Environment

Health care

Housing and utilities sector

Education 5%

Social protection 4%

Tourism 6%

Economy and business 5%

City governance 4%

Employment 0%

Other 11% 1. Approximately 7,000 comments to the Strategy from 4,400 respondents were received from various sources

2. E.g. proposals on moving the administrative center outside the historical and cultural zone were included in the City Center Nearby initiative, and comments on nationalization of some private companies and removal of some markets were not included in the Strategy.

Relevance to the Strategy

sections

General

Fig. 69. Comments from Kyiv citizens were carefully revised in three stages

>4 400comments1

Specific

Strategic

Operational49%

30%

19% Other proposals

11%

Quick wins

8%

51%

Sources Comments database General or specific comments

Strategic or operational

proposals

Finalization level

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83

CONDITIONS OF STRATEGY IMPLEMENTATION ASSUMPTION USED DURING STRATEGY DEVELOPMENT

1. SUCCESSION IN STRATEGY IMPLEMENTATION A city development strategy is a long-term policy document

that reflects vision of the city development by the public. Many areas of long-term development require significant mobi-lization of resources. Achieving of the goals identified for the city is possible with consistent implantation of the approved Strategy regardless of the city government changes.

2. BALANCE OF POWERS AND AUTHORITIES OF NATIONAL GOVERNMENT AND LOCAL GOVERNMENTS /LOCAL SELF-GOVERNMENT BODIES

Today, the balance of powers and authorities of the national and local government gravitates toward centralization. Pow-ers of local self-government bodies where possible should be expanded to provide the Strategy implementers with necessary tools to influence the key spheres of the city life (e.g. execu-tive bodies controlling municipal rules and norms, tariff setting and taxation, etc.)

3. STABILITY OF TAXATION SYSTEM AND BUDGETING IN THE PART RELATED O DISTRIBUTION OF RESOURCES BETWEEN LOCAL AND NATIONAL LEVELS

Strategy implementation requires investment of certain resources calculated on the basis of the available system of taxation and budgeting. Significant changes in these systems can influence the speed and quality of implementation of individual initiatives and the Strategy in general.

4. IMPLEMENTATION OF ECONOMIC REFORMS PROGRAM Kyiv strategy in several sectors is based on national regula-

tion. Development of situation in Kyiv to a large extent will depend on the reforms implemented at the national level (e.g. state regulation in the part related to creation of favorable investment climate, health care reform).

5. UNCHANGED VISA AND MIGRATION REGULATIONS The demographic situation in Kyiv depends very much on

migration. Some strategic initiatives of the city development are based on openness of the current visa regime. Significant changes in regulation of these spheres can have significant effect on implementation of the city development strategy.

The key risks for the Kyiv City Development Strategy include:

Measures taken by Kyiv City State Administration to eliminate the risks:

Lack of qualified and motivated specialists necessary for the Strategy implementation. This risk can be related to implementation of both individual activities and management of the projects of Strategy implementation in general.

Based on the results of work on Strategy development, a project office on Strategy implementation was created consisting of the members of KCSA working group who demonstrated their best qualities as well as external specialists.

Unclear division and identification of responsibilities in the KCSA team. This risk can emerge both at the managers and at the implementers level.

A group of persons was identified who are responsible for the project in general and for the individual areas, and an adequate incentives program was offered.

Inability to improve the regulatory environment and conditions for business conduct in order to attract investments.

KCSA is working on simplification of the regulatory field, the system of city governance will be reformed, a single permit center will be created and a new system for stimulating structural units will be formed to improve the business climate in respective spheres.

Dependence on national regulation in the spheres of improving the investment climate, health care, development of concession mechanisms, etc.

The city will actively facilitate deregulation, and promote respective initiatives at the national level.

Insufficient financing of the key infrastructure projects.

Along with the budget financing, we actively involve private investors’ funds on mutually beneficial terms (including the PPP forms), and conditions are created for convenient co-financing of projects by citizens.

A tentative character of evaluation of the required financial resources and timelines for implementation of activities provided for in the Strategy.

The working group was striving to achieve the maximum possible precision in identification of financial needs and implementation periods. These indicators will be adjusted when new information is received.

Force majeure, political instability and global shocks such as financial crisis, energy crisis, and the like.

During the Strategy development, a conservative approach was used in forecasts, and global trends were taken into consideration. The formulated vision will remain relevant even after the unforeseen circumstances occur.

NEED FOR CONTROL AND ACTIVE RISKS MANAGEMENT IMPLEMENTATION RISKS AND THEIR PREVENTION

APPENDICES

85

TARGET STRATEGY INDICATORS

AREA INDICATOR MEASUREMENT UNITS CURRENT

VALUE TARGET VALUE

Strategic goals Average annual growth of real GRP %/year 5.73 6.53

Strategic goals Livability index4 Integrated index 100 181

General Resident population5 mln persons 2.726 3.11

General City area thousand ha 846 84

Economy Nominal GRP per capita thousand UAH/citizen 61.92 401.97

Economy Cumulative foreign direct investments per one resident citizen

thousand euro/citizen 5.62 30.8

Economy Capital investments per year thousand UAH/citizen 5.22 16.8

EconomyShare of small companies in sales of city’s products

% 152 35

Transport Length of public transport lines8 km/10 000 persons 9.61 16.1

TransportDensity of street-motor roads network9 km/km2 2.11 2.8

Transport Number of traffic victims persons/km 2.31 1.2

TransportDistribution of passengers flow by types of transport

Public/private/alternative share

52/48/02 50/40/10

TransportAverage speed of movement of overland public and automobile transport during rush hours10

km/hour 232 40

Transport Size of roads requiring repairs % 852 <15


Length of electricity distribution networks

km/1 000 persons 4.21 9.4


Density of electricity distribution networks

km/km2 13.91 40


Length of water supply pipes km/1 000 persons 1.51 3.6


Density of water supply pipes km/km2 51 15.3


Length of sewerage network km/1 000 persons 0.91 3


Density of sewerage network km/km2 3.11 12.8


Share of water losses from general consumption

% 201 5


Degree of wear of electric transformer substations

% 412 <10


Degree of wear of heating networks % 522 <15


Degree of wear of Desnianska and Dniprovska intake stations

% 752 <10

86



VALUE TARGET VALUE


Share of buildings worn out by more than 40%

% 162 <5

Environment Emissions of harmful substances t/km2/year 3331 250

Environment Share of solid household waste processing

% 51 40

Environment Share of re-equipped systems of environmentally unsafe sewerage and cleaning constructions

% 152 75

Environment Share of regenerated polluted territories

% 02 100

Environment Share of companies using the envi-ronmental and social management procedures (ISO 14000, EMAS)

% 42 50

Environment Generally accessible existing green zones

m2/citizen 162 20

Culture Number of visits to museums per a citizen

visitors/city citizens 1.51 2.8

Culture Number of visits to theaters per a citizen

visitors/city citizens 0.41 1.2

Culture Number of galleries11 galleries/ 100,000 persons

1.421 3.22

Tourism Number of entering tourists12 mln persons 16 2.6

Tourism Average stay duration days 2.16 3

Tourism Number of rooms in hotels thousand pcs. 106 18

Tourism Average annual rooms loading % 336 68

Tourism Share of incomes from tourism in GRP % 0.72 min. 2.5

Health care Life expectancy at birth years 72.71 79.8

Health care Primary disease frequency persons 966.61 777.3

Health care Mortality rate at employable age cases/1,000 citizens 3.76 2.6

Health careShare of expenses on primary medical assistance in general health care expenses

% 8–106 20–30

Health careIntroduction of contractual relations, changed approaches to financing

yes/no no6 yes

Health careAverage number of work of a bed in a hospital

days 2976 330

Health careAverage duration of treatment in a hospital

days 116 6

Health careMortality rate among children during the first year of life

cases/1,000 newborn 7.56 4

87



VALUE TARGET VALUE

Education Students/teachers ratio in schools 101 8

Education Quality of education (Newsweek) rating 641 78

Education PEI children/teachers ratio 92 7

Education Students/teachers ratio in vocational training educational institutions

212 18

Education PEI number of children/PEI number of places ratio (%)

% 1122 92

Education Teacher’s salary/average salary % 742 100

Education Turnover index of pedagogical staff % 122 3

Education Number of educational institutions in need for capital repairs

3772 40

Education Number of employed graduates of vocational training educational institutions

% 872 95

Safety Number of crimes crimes/

100,000 persons 12.81 8.5

Safety EIU complex safety rating rating 701 78.9

Social protection International household incomes inequality index

- 0.412 0.33

Social protection Number of workplaces for persons with NFA

places 02 500

Social protection General number of persons with NFA to the number of persons in institutions for person with NFA

% 2302 100

Labor marketUnemployment rate among persons aged 15–70

% 5.82 3

Labor market Average salary level euro/person 3152 >1 100

Labor market

Unemployment rate ratio among economically active women to Unemployment rate ratio among economically active men

- 1.32 1

1. Current value of the indicators included in the liveability index for 2009 for the purposes of comparison with other cities 2. Current value for 2010 3. Current value – average annual increase for 2004–2009, target value for 2010–2025 4. The livability index calculated using the methodology that was developed and adapted taking into consideration the possibility of caparison of statistic indicators with international data for

the purposes of the Kyiv City Development Strategy Until 2025 based on the data for 2009. 5. According to the estimates of the Institute of Demography and Social Research of the National Academy of Sciences of Ukraine in 2011. The difference from the 2008 estimates used for the

General Plan purposes is insignificant – 3.14 mln persons. 6. Current value for 2009 7. Including the estimated average annual deflator for 2010–2025 totaling 6.1% 8. Length of the public transport lines (bus + trolleybus + subway + tram) 9. Including forests, landscaped areas, water mirror, built-up and industrial territories 10. According to the analytical center SMlink (Yandex Maps) 11. Significant public and private galleries as agreed upon by the experts in this sphere 12. Including internal and international entering tourists

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GLOSSARY OF TERMS

NOTION DEFINITION

20/20/20 An agreement reached by the EU cities on reduction of greenhouse gas emissions by 20%, reduction of the GRP energy consumption by 20%, and the use of 20% renewable energy generation from green and alternative sources before 2020.

Computerized Traffic Control System (CTCS)

A set of software and technical tools and means aimed at ensuring safety of automobile and pedestrian flows movement, reducing transport delays and improving environment using the color light signaling, video control, traffic sensors, etc.

Agglomeration

A compact cluster of settlement, mainly urban, that sometimes fuse together and that are united in a complex multi-component dynamic system with intensive production, transport and cultural connections. The boundaries of urban agglomerations are defined as the extreme points of com-muter migrations. There are monocentric and polycentric agglomerations.

Business incubator

An organization the main task of which is to support small newly created firms and starter com-panies that want but cannot start their own business. A business incubator can be autonomous, i.e. an independent economic unit with the rights of a legal entity, or it can act as part of a technological park (in this case, it can be called a “technol-ogy incubator”).

Budget

A balance of the planned incomes and expenditures of a city for a certain period (a year). A city budget contains: • a list of expenditure programs: on education, on health care, and so on;

• a list of sources of incomes.

Gross Regional Product (GRP)

A sum of gross added values of goods and services newly created by the region residents. The vol-ume of the added value by types of economic activities is calculated in terms of the basic prices, i.e. they do not include taxes on products but they include subsidies on products.

Secondary health care and sanitary assistance

Health care services provided by health care specialists on an outpatient basis and in general hospitals. This notion does not include, on the one hand, provision of primary medical assistance (provided on an outpatient basis by general practitioners) and, on the other hand, provision of technology intensive health care services in hospitals of the general national and regional level.

General Plan (Layout)

Urban planning documentation defining urban planning of the territory development of towns and villages. The General Plan is the main urban construction document that in the interests of population and the state identifies: • conditions for creation of environment for vital activities;

• areas and boundaries of development of territories of towns and villages;

• territory zoning;

• development of engineering, transport and social infrastructures;

• urban construction requirements for preservation of historical and cultural heritage artifacts and natural territories under special protection, environmental and sanitary wellbeing.

Public-private partnership (PPP)

A totality of the forms of mid-term and long-term cooperation between the state and business for resolution of socially important tasks on mutually beneficial terms. Involvement of private business by state and (or) municipal bodies for provision of technical services, maintenance, reconstruction, modernization or construction of new social infrastructure objects and provisions of public services using such objects with division of risks, competencies and responsibility as provided for in the contract and all normative documents applicable at the moment of signing thereof.

Budget deficit The amount of excess of the expenses of the city treasury over its incomes during each budget year calculated as percentage of expenses.

PEI Pre-school educational institutions.

E-document flow The use of special computer software for creation, exchange, approval, storage and registration of documents.

E-government (EG) The use of modern information technologies for organization of work of government bodies and their interaction with citizens (G2C), business (G2B), other government bodies (G2G) and their employees (G2E).

89

GLOSSARY OF TERMS

NOTION DEFINITION

ERP (Enterprise Resource Planning)

An integrated system based on information technologies for management of internal and external resources of an organization (significant physical assets, financial, material, technical and human resources). The system goal is to facilitate information flows among all departments inside the organization and to provide information support for communication with other organizations.


A set of sub-areas that ensures functioning of an engineering infrastructures and residential houses, creates amenities and comfort for citizens’ living and staying in them by providing a large range of housing and utility services.

HLS Healthy lifestyle.

Investment climate A totality of social, economic, political and financial factors that determine the level of attrac-tiveness of the investment market and the size of investment risk.

Engineering infrastructure

Engineering systems, networks or communications – the systems that support vital activities of consumers (citizens, housing and utilities, industrial enterprises). They include water supply, sewage, electricity, heat, gas and cold supply as well as phone communications.

Traffic victims The number of injured and dead people.

KPI (Key Performance Indicators)

An evaluation system that helps an organization to measure achievement of strategic and tactical (operational) goals on the basis of clearly defined, measured and coordinated indicators. Their use enables an organization to evaluate its situation and help to assess strategy implementation.

PTF Prevention and treatment facility.

Small business Business with the number of employees up to 50, and turnover up to 70 million hryvnias

Gini International Incomes Distribution Index

A measure of the inequality of a distribution of incomes in the society demonstrating the level of deviation of the actual volume of distribution of citizens’ incomes from the line of their equal distribution. Its value for equal distribution is 0, and for absolute inequality, it is 1. The growth of Gini index means a disorder in the reproduction process in the sphere of distribution and re-distribution of the gross added value.

Micro-enterprises Companies belonging to private entrepreneurs with only one employee.

SMB Small and medium-size business.

Multimodal transport system

Transport infrastructure, transport companies, transport facilities and the management system in general used for transportation of passengers and (or) cargos to the point of destination by two or more types of transport. Types of transport may be used in different combinations.

EI Educational institutions.

Optimization of transport flows with the help of regulatory measures

Redirection of all vehicles that simultaneously take part in traffic on a certain part of the street and road network aimed at improving traffic efficiency – enhance safety, average technical speed of movement and convenience through changing some rules of functioning of the transport system

Persons with NFA Persons with no fixed abode.

Primary health care and sanitary assistance

A totality of medical, social, sanitary and hygienic activities carried out at the primary level of contact of individual persons, families and social groups with the health care agencies. The main functions include ensuring the first contact with the health care system, providing the basic medical and prevention assistance as well as assisting patients in coordination and integration of health care services. Such assistance is carried out mainly by therapists, pediatricians, general practitioners, family physicians, medical assistants and nurses.

Subsidiarity principle Organizational and legal principle, according to which the tasks are to be carried out at the as low, small or the most remote from the center level as makes their performance possible and efficient.

Foreign direct investments (FDI)

Foreign investments that are high enough to enable the investor to establish efficient control of the company management and create long-term interest in successful functioning and develop-ment of this company. According to the IMF methodology, these are international vestments that cover ten or more percent of shares with a right to vote.

90

GLOSSARY OF TERMS

NOTION DEFINITION

SanPIN Sanitary Regulations and Standards.

Medium-size business Business with a number of employees up to 250, and turnover up to 100 million hryvnias.

Average annual load of the hotel room capacity

A coefficient calculated as a total annual number of nights when rooms were occupied divided by the total number of rooms multiplied by the number of days in a year.

City development strategy

A document that sets forth the main goals and tasks fir the city, the most important strategic development areas and the principal activities aimed at achieving the identified goals. The strategy is related to the following financial and program documents: • target programs, each of which is a totality of activities aimed at tasks solving – means to

fulfill the vision of the sector/city development;

• budget programs, each of which is a totality of activities aimed at achieving a goal following from the strategy with the help of budget funds. Activities are identified and implemented by the manager of budget funds within the respective terms of reference.

Below, there are elements of a strategic plan on the example of the Transport and Transport Infra-structure sector.

Strategy

Target program

Budget program

Improved living standards

Enhanced mobility and development of transport infrastructure

Guaranteed accessibility, traffic capacity, higher quality/comfort

Roads construction/maintenance

Reconstruction of certain road X, bridge Y, ...

Reconstruction of road X-Y, span 1, 2

Design specifications and estimates

Strategic Plan goals

Strategic Plan priorities

Strategic Plan tasks

Target Program goals

Target Program tasks and activities

Budget Program goals

Budget Program tasks

DOCUMENT

15 y

ears

3-5

year

s1-

3 ye

ars

EXAMPLE USED TERMS

Insurance medical assistance

Financing of medical assistance from a priory created funds formed on the basis of payments by citizens, companies and the state. The insurance object is a risk related to the costs resulting from occurrence of the insurance event (a disease, a need for medical assistance). The model is based on a priory accumulation of small payments from individual insurance policy holders and their payment to individual policy holders in the case of occurrence of the insurance event. A health insurance scheme is one of the insurance forms.

Tourist card of a city guest

A card that against a fixed payment enables a tourist to visit the main city sightseeing places free of charge or at a discount price.

CEE Central and Eastern Europe.

KYIV 2025 DEVELOPMENT STRATEGY

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