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We Are Bosses Of Our Land These are the words that can be said by managers of 12 enterprises in Kremenchuk - the first robins, so to say, of the final privatization who will have the parcels of Kremenchuk land in their perpetual ownership. The list was approved at the last session of the city executive council. The approved list contains some enterprises of oil-chemical and construction industries, a huge factory. Local government is interested to get funds from the land sales. The future owners seem not be stopped by rather high prices. As we were informed at UKRels regional office that fulfils privatization, the land prices established by experts are quite individual for each enterprise. The next stage is to conclude agreements with the city executive council on the land sales and final price establishing.
Land Should be Acquired Now In 1998 13 land parcels were bought by enterprises in Romny, Lebedyn, Putivl and Krolevetsky rayons of Sumy oblast. Total land area was 9.5 hectares; income revenue to the local budgets constituted 224000 UAH. During two months of 1999 local Radas have adopted decision to privatize 6 parcels. Nearly 20 more parcels, including 3 in Konotop, are in the pipeline for privatization. Under support of the oblast department of land resources UKRels specialists are carrying out active explanatory activity among businessmen on the benefits of private ownership in land, are executing expert market valuation of the land parcels being privatized. Seminars on these issues have been held in Sumy, Konotop, Okhtyrka. Soon such seminars will be held in Glukhiv and other settlements of Sumy region. The project will assist everybody interested to privatize their land parcels to undergo land parcel expert valuation, to prepare the required documents and to implement privatization. The land should be bought now when its market value is minimal. As the country is coming out of economic crisis, the prices for non-agricultural land will sufficiently grow.
Land Parcel Sales Have Begun Sales of non-agricultural land underneath privatized enterprises have begun in the oblast. 39 applications have been submitted. Tentative value of the land parcels total area of approximately 12 hectares will constitute 700 000 UAH which will be credited to the local budgets after agreements are signed. Before proceeding directly to the land parcel sales, department of land resources together with UKRels regional office have carried out big preliminary activity. In each rayon and city seminars have been held with participation of the local Rada deputies, entrepreneurs that wished to buy out the land underneath private enterprise. The biggest number of applications has been submitted in Snigyrivsky rayon, in Snigyrivka and Voznesensk. We feel the local government is interested to fill in the budget, to ease social tension. For example, the last session of Snihyrivska city Rada has approved sales of 6 parcel, total value of 14 000 UAH. Though the parcels are not big, each area measures dozens of square meters. In general, the area of the parcels to be sold varies from 9 sq. m to 7 hectares. Naturally, the price is different. In Voznesensk, for instance, 9 sq. m cost 700 UAH, and in Garbuzinsky rayon we've got an application for privatization of 7 hectares of land at the price over 200 000 UAH. Local Radas as well as entrepreneurs benefit. The Radas receive additional funds to the budget from the land sales and from annual land tax; businessmen get another possibilities to attract foreign capital, get credits on pledge of assets located at this land parcel. They have also right to resell the parcel, to transfer into heritage and to accomplish other civil-legal transactions according to the Law on Ownership. President of Ukraine has signed a Decree "On sales of non-agricultural land parcels", it was enacted on 03/04/99. In this connection oblast State administrations are preparing to adopt soon corresponding organizing and instructing documents.
Land Privatization Is Profitable
Recently UKRels project together with oblast department of land resources held a regional seminar in Slavuta. Participants to the seminar were heads of the Radas of Slavutsky, Starokostiantynivsky, Shepetivsky, Polonsky, Iziaslavsky rayons, Netyshyn city, businessmen and other concerned parties. V.Zhuk, Slavuta city Mayor, greeted the audience as a host and noted that land privatization in cities and other settlements will make possible to substantially fill in local budgets. The city has already got land monetary valuation in place, land parcels eligible for privatization have been selected. Privatization has great potential: this year our oblast could get 1.5 -2 million UAH from the parcels' sales into private ownership. Some managers of medium-scale and small enterprises have already addressed UKRels regional office, 22 have started this activity. 10 sales have been completed. Local budgets have got 27000 UAH revenue. So, the process has begun, as one says. Businessman D.Svetlusenko, who is engaged in appliances repair, mentioned that he learned much new at the seminar and will not delay using the right of the land parcel privatization, as he has to think of the future. Head of the rural Rada from Stary Kryvyn, not far from Netyshyn, noted that there were a lot of people wishing to acquire the land parcels to implement entrepreneurship. The owner is being born. Let us wish him success.
Free Means Devil's The prospects of the land reform in Poltava oblast are commented by G.Shary, head of the oblast department of land resources. … If a tumble-down house is being bought in the downtown at a cosmic price, that is, the land underneath this shabby construction is being bought and not the construction itself. If the price of a garage in Poltava center is $ 3.500, the same thing - this is not the value of the garage, but of the land. The land has been bought and sold for dozens of years. The process should be only legalized. People have bought and sold the land long ago. The same was during 70 years of the Soviet power. The process cannot be abolished by any law. The laws connected with the relations to property are eternal, they act and this is an objective reality. Today the Presidential Decree "On sales of non-agricultural land parcels" is ahead us. No Rada should give the land into permanent use free of charge. No good when a joint stock company, a private enterprise or a limited company get the land into permanent use and build a huge gas station on it. You can build, but please, buy the land under competitive conditions. According to the market valuation one sq. m land near a highway costs not less than $50. Today the situation is as follows: the company leases the land, builds an oil factory on it and says: " I'll return the land in 25 or 50 years." In 50 years three generations will change. No, better, gentlemen, let's do the other way: buy the land and develop it. Social issues should be resolved now and not in 50 years. Each karbovanets (hryvna) of capital investment should contain resolution of issues connected with the territory social development and land protection. Otherwise land use will be as in the proverb: "Free means devil's", as old people, our grandfathers and great grandfathers used to say.
Land Acquisition: Manifesting
Benefits UKRels Project promotes land market formation in Ukraine - a necessary component of the market economy - by rendering assistance to local self-government bodies and to private enterprises in learning economic benefits of private ownership in land as well as in the first land sales accomplishment. During six months of operation in Ivano-Frankivsk oblast 15 land parcels have been transferred into private ownership under assistance of the Project's specialists and cooperation with the local self-government and Derzhkomzem bodies. These entrepreneurs have become real bosses of the land parcels, because they've understood first of all the legal protection of their future rights, security for their capital investments, possibility to obtain investments and to dispose the land as they wish (to lease, to present as a gift, to sell, to mortgage, etc.). Having sold 8.5 hectares of non-agricultural land, the local governments have got 170500 UAH revenue to the local budgets.Kolomya and Kolomyisky rayon are the first. The companies and individual entrepreneurs have privatized 8 land parcels here. They are acquired for future construction. And what about price? Well, 200 sq.m at Viche Square in Kolomya cost 3300 UAH.
The Budget And The Owner Get Benefits
Recently sessions of the local Radas have approved "Provisions on the procedure of the land parcels' privatization to implement entrepreneurship". As it is known, the current legislation and corresponding Presidential Decrees provide land parcels' sales to legal and physical entities. Per estimation of the specialists, potential income to the local budgets from such sales all over Ukraine can reach beyond several billion UAH. Benefits from the land acquisition are evident for enterprises - having privatized the land parcel an enterprise or a private entrepreneur becomes its full owner and can independently dispose it: to sell the land parcel or its part, to lease it, to pledge as collateral in credit institutions, to incorporate into authorized capital of economic associations, etc. Besides, with the time the land does not lose its value, on the contrary, the land's value grows. Therefore land privatization today is the best capital investment for an enterprise. UKRels regional office renders free consultations to enterprises on land privatization issues, land parcel valuation as well as practical assistance to prepare materials required for implementation of privatization.
The Land - Into Ownership The process has started! A consultative program of the land privatization is picking up speed in the oblast. The program is implemented based on the intergovernmental agreement between USA and Ukraine. National lawyers, economists, real estate experts and appraisers work under the guidance of American specialists from the known companies TRG and Chemonics International. The mentioned companies have extensive experience in the field of development of enterprises and privatization in more than 90 countries all over the world. Activity of UKRels Project is supported by Presidential Administration, State Property Fund, State Committee of Ukraine on Architecture and Derzhkomzem. The project was initiated in November 1997. It has created 24 regional offices all over Ukraine, including Zakarpatska oblast. Enterprise land privatization was very slow in the oblast if compared with the other aspects of the land reform (for instance, during land reform citizens and collective enterprises have privatized near 22% of the total land in the oblast). Within the first months of the Project activity in Zakarpatie over 30 enterprises have bought out their land parcels into private ownership, total income revenue being 263 000 UAH.
The Early Bird Catches The Worm
This proverb was invented by a clever man. And it is quite true: formerly it was easy to privatize a parcel, to buy a tractor or to build up. The further the more expensive it will cost. Oles B., an entrepreneur from Kalush, is hesitating: is it expedient to spend money for acquisition of a parcel underlying a cafe if it can be leased? A neighbor experience gives a positive reply to this question. For instance, in Warsaw few years ago a land parcel was sold at a price of $2.00 /sq. m to construct a trading center. In a year its value was 125 times higher. And in a while the land nearby was sold at a price of $2000 /sq.m to construct a parking station. This is a vivid example on the possibilities opened by the land for the city - the land becomes a catalyst for economic development, investments and for new attractive objects that would change the city, bring new jobs and revive general economic activity. Naturally, the value of the urban land will grow as well. Here a simple law of economy is in place - money attracts money. An entrepreneur becomes a landlord, he develops the land and improves its attractiveness, and as a result new funds are attracted 
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Digest
of local newspaper publications about UKRels