Infrastructure and energy sector

Corporate brochure

Industry key-highlights

The energy sector and infrastructure are the backbone of the country's economy. These segments need significant and often regular investments from the state, local and foreign investors, and the result of investing extends to almost all sectors of the economy and social development.

In Belarus, road construction industry is actively developing: electrification of the railway (+316 km), the share of electrification of rail road facilities is more than 20%; construction of new and modernization of highways - over the past 5 years about 1,000 km of roads have been introduced; projects in the field of public utilities (modernization of wastewater treatment plants of Belarusian cities); implementation of the largest infrastructure project in Belarus (Chinese-Belarusian industrial park with the goal of creation a center for production of innovative and high-tech products); construction of the Belarusian Nuclear Power Plant (investment volume over $ 9 billion) and the development of renewable energy sources (over the past 5 years, the installed capacity has increased by 10 times and exceeded 170 megawatts).

Comprehensive programs for the development of the transport and tourism potential of Belarus have been adopted, which has a positive effect on the development of such industries as logistics (over the years the program has been implemented, more than 30 projects have been finished), tourism (the adoption of administrative liberalization measures (visa-free travel), which brought +200 thousand tourists ), entertainment and hospitality industry (since 2011 hotel sector in Minsk has been developed (+3 000 rooms), which led to an increase in the MICE segment, an increase in the number of guests accommodated (+ 68% by 2011, and in 2017 this figure reached 700 thousand guests per year (more than 75% of them were foreign guests).

Investment in the industry

The main source of funding is the state budget and state financial institutions, as well as foreign borrowing in such industries as energy and transport. The main trend in recent years in Belarus is the growing interest in attracting private capital and debt financing for project implementation, including public-private partnership.

The volume of investments in fixed assets in the energy sector over the past 5 years has exceeded USD 6.5 bn, which was directed both to the modernization of the existing energy sector and to the creation of new infrastructure connected to Belarusian nuclear power plant and the Chinese-Belarusian industrial park, and other projects in the energy sector (the construction of the first large hydropower plants, a solar park, and so on).

The volume of investments in the transport industry over the past 5 years has exceeded USD 9 bn, which were directed both to the development of the transport sector (updating the rolling stock of the Belarusian Railways, the national air carrier, road transport organizations), to the development of roadside infrastructure, logistics and warehousing.

Over the past 5 years, the volume of investments in HORECA sector has exceeded USD 1.2 bn, while the bulk of investments were directed towards the active development of hotel real estate (construction new hotels).

The volume of foreign investments on a private basis over last 3 years in energy, transport and HORECA has exceeded USD 450 mn. The main volume has been in transport (land and pipeline ones).

UNITER company competence in the industry

Uniter acts as an advisor to a number of the largest projects in Belarus in this field, actively participates in projects for the implementation of infrastructure projects that are important for the regions, and is ready to apply its experience in new projects.
The company's specialists have experience in participating in tourism projects: developing a feasibility study of a land plot in Baranovichi district of more than 60 hectares for a private foreign investor. The project comprises to create a tourist complex with its own tourist facilities, a hotel, a café. Pre-investment analysis of the development of tourism infrastructure (equestrian sport complex) in the Minsk region for a foreign investor from the Gulf countries.

In the energy sector, the company supports investment projects of various scales and specifics: preparing an information memorandum and attracting a financial co-investor to the project of construction a waste recycling plant with a hydrolysis unit in Slutsk for a national investor. UNITER prepares of a baseline feasibility study on biogas projects for water treatment plants in Slonim and Baranavichy for European Bank for Reconstruction and Development together with iC (a large European infrastructure projects advisor).

UNITER investment company has taken part in the support and management of investment projects: local advisory on a project carried out by EBRD and Nordic Investment Bank (NIB) for the reconstruction of wastewater treatment plants in five Belarusian cities (the project proceeds, total investment volume is more than USD 60 mn); preparation of a feasibility study on the modernization of water supply and wastewater management systems in the cities of Belarus for European Bank for Reconstruction and Development together with Poyry Finland Oy.

The company has experience in supporting projects in HORECA sector: conducting a comprehensive study of the market of quick-service restaurants (including field research) with the goal of implementing a project, that comprises creation a fast food chain with the participation of an international operator by a foreign investor (Gulf countries); preparation of an information memorandum and presentation materials for a private Belarusian company in order to attract the franchise of a well-known chain of fast-food restaurants; conducting desk and field research of pizzeria markets, coffee houses for a private Belarusian investor..

The company activity in logistics and transport industry comprises participation in such large projects as: conducting a comprehensive industry study of the infrastructure of warehouse and cold logistics in Belarus for International Finance Corporation; preparation a feasibility study for a private Belarusian company to create a modern roadside service facility with a developed transport infrastructure (hotel, cafe, parking, other infrastructure) in the border area.

Disclaimer
These industry outlooks were prepared for informational purpose only and does not constitute an offer or solicitation of a strategic transaction. Points of view, forecasts and evaluations presented in these outlooks reflect our opinion as of the publication date and may be changed without notice. Although the information contained herein has been obtained from sources we believe to be reliable and although we ensured their accuracy as of the publication date, we cannot guarantee, expressly or impliedly, practicality of these outlooks regarding future events or current or future value evaluation. Any investment decision based on these outlooks should be made only at the discretion of the investor and UNITER or its employees or any third party shall not be responsible in any form and in no circumstances for any action of any party taken on the basis of these outlooks. Nor UNITER, nor any of its employees, nor any third party shall be responsible for losses that result from such actions.
Strategic advising for the China-Belarus Industrial Park “Great Stone.
Business plan of construction a trade and logistics complex in Minsk region(Azerbaijani investor, Kaspianstroyinvest).
Feasibility study of modernization a water supply systems and wastewater disposal in some cities of Belarus (Poyry, EBRD).
UNITER participates as a local advisor in the implementation of one of the largest EBRD projects in the municipal and environmental infrastructure in Belarus. Reconstruction and modernization of municipal wastewater treatment plants in the cities of Brest, Grodno, Vitebsk, Baranovichi and Slonim (2014-present).
Financial advising on the side of the investor in concluding a concession agreement between the Government of Belarus and the investor on the construction of a mining and processing complex on the basis of the Starobinsky potassium salt deposit.
Financial advising of Sokol Investment Company (a local company is established by Qatar Armed Forces Investment Portfolio) for the implementation of the project “construction a multifunctional complex on Pobediteley Avenue in Minsk”. The complex includes a 5-stars hotel managed by Mariott, sports infrastructure (managed by an international operator), a shopping area, cinemas, a wellness center, restaurants, parking, etc.) and current financial advising after implementation the project.
Research for Organization for Economic Cooperation and Development: Evaluation of State Entrepreneurship Support Policy.
Monitoring of the hotel real estate market, recreational and other related services for the management company of the Marriott hotel in Minsk.
A number of studies for the joint company for the development of the Chinese-Belarusian industrial park “Great Stone”, including the preparation of information teasers for the development of promising projects within the Industrial Park.
Development of a socio-economic analysis; organizational overview of public water supply; feasibility analysis, financial modeling (development of 5 financial models for Vodokanal operations) under the project “Modernization of water supply systems and wastewater disposal in five cities: Kobrin, Skidel, Smorgon, Pruzhany, Novogrudok”.
Advising the EBRD on the terms of the loan agreement: financial analysis of the current state of public water supply; analysis of modern methods of allocating funds used to make investments in water supply; analysis of methods of financing and accounting for investments in water supply for the preparation of an investment review of the company.
UNITER acts as a local financial advisor in the Municipal Sector Financing Framework Agreement and project management assistance, including the development of working documentation, procurement and technical supervision (for the EBRD): financing for the reconstruction of water utilities in Brest, Grodno, Baranovichi, Slonim, Vitebsk. Loan agreements have been concluded. Cooperation with SWECO and Poyry.