Kohtla-Järve: a promising industrial centre

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1 Kohtla-Järve: a promising industrial centre this project is funded by the european union

2 The town of Kohtla-Järve is situated in Ida- Virumaa, Estonia s most promising region in terms of capability for industrial growth. It is one of the five largest cities in Estonia. Kohtla-Järve is an industrial town, centre of an oil shale basin, holding a prominent place in our country s economy. Its geographical location is an important resource in itself. Kohtla-Järve is 150 kilometres away from Tallinn, Estonian capital. Tartu, the university centre, is 120 kilometres away. Estonia s eastern border and, at the same time, the eastern border of the European Union is 60 kilometres away. St. Petersburg, one of the largest metropolises in Europe, is 215 kilometres away from Kohtla-Järve. The motorway and the railroad connecting Tallinn with St. Petersburg and Moscow pass next to Kohtla-Järve. And the Sillamäe seaport is only 30 kilometres away from Kohtla-Järve. In one word, our city is located in the middle of a busy thoroughfare between Western and Eastern Europe with automobile, railroad, and sea transport links conveniently situated nearby. At the outset, Kohtla-Järve s industry was based on two main components oil shale mining and oil shale processing. They still play the key role in the city s economy and, moreover, of the whole region. The largest oil shale processing enterprise AS Viru Keemia Grupp is located directly in the city. AS Velsikol Eesti and AS Nitrofert are other large chemical factories. At the same time, other types of industries have developed in the city. Light industry is represented mainly by clothing factories, such as Baltika Grupp. AS Remeksi Keskus is a large enterprise producing fabricated metals and metalware. Production of building materials is developed in the city, e.g. AS Silbet. OÜ VKG Energia produces heat and electricity. The city houses a large number of small and medium-size enterprises involved in various types of industrial and commercial activities; their total amount is about People who are able and willing to work are always an important resource for developing any type of industry. Standards of industrial culture have been cultivated in Kohtla-Järve for decades; at present, the city possesses significant free resource of well-qualified workforce. Virumaa College of Tallinn University of Technology, located in Kohtla-Järve, is a major centre of vocational education in the city; it offers university education and secondary courses on various industry-related subjects. In addition to that, vocational secondary education can be obtained in Ida-Virumaa Centre of Vocational Education, located in the nearby parish of Jõhvi.

3 Industrial zones of Kohtla-JÄrve Kohtla-Järve s industry is mainly concentrated in two major industrial zones Järve and Ahtme. Currently operating enterprises, buildings and structures of the now defunct ones, and vacant areas intended for industrial use are located there. Free industrial resources of Kohtla-Järve industrial zones (approximate figures): 28 industrial buildings with the total area of over 45,000 m2; Electricity supply of over 25 MW; Thermal energy of over 530 MW; Compressed air energy resource of over 30 m³/ min (1800 m³/hour); Natural gas resource of over 15 million m³/year; Drinking water of over 4.5 million m³/year; Process water of over 3.8 million m³/year; EU funding is available for further professional development of the workforce. The boundary of Järve Industrial Zone Järve industrial zone is one of Estonia s largest zones; its total area is about 1400 hectares. As indicated by the city s general layout, about 450 hectares of Järve industrial zone are currently vacant. This area can be adapted for various kinds of industries with relative ease. Roughly 250 hectares of this area are located adjacent to one of the principal roads of the industrial zone Uus-Tehase street linked with the Tallinn-Narva motorway. The industrial zone has an extensive railroad network with the total length of 35 km; it provides for the rail transportation needs of both existing and future enterprises. Construction of new railroad links is possible on demand. The zone has the following production resources supplied by the enterprises located on its territory: water, sewage, waste water treatment (Järve Biopuhastus), heat and electricity (VKG Energia), electricity (Eesti Energia), and gas (Eesti Gaas). The boundary of territories incoming to Ahtme Industrial Zone Ahtme industrial zone occupies an area of 286 hectares. 60 of these is vacant territory. The zone has ready service and transportation links as well as ample resources of water, gas, and electricity. Ahtme zone is situated 3 km away from the Jõhvi- Tartu motorway. The railroad is located in Ahtme zone.

4 Investing: general guidelines In the event of investor s interest in a more detailed acquaintance with Kohtla- Järve s industrial zones, they should contact the Town Government staff. To start production activities, an investor needs to: perform general layout planning if an object significantly affecting the environment is being constructed; perform detailed layout planning of the purchased property if utilization purpose will have to be changed; submit a project of constructing necessary buildings if utilization purpose is not being changed (commercial or industrial land). The project serves as basis for application to obtain a construction permit. After construction is complete, the Town Government issues an operation permit. Performing assessment of environmental effect Environmental effect is either direct or indirect impact on human health and well-being, natural environment, cultural heritage and/or property, supposedly accompanying the activity in question. Assessment of environmental effect is performed in a situation when application for construction permit or its alteration is submitted and when the reason for the requested construction permit or its alteration is an activity that is expected to have significant effect on environment. Significant effect on environment Environmental effect is considered significant if it can potentially upset the ecological balance at the place of operation, cause irreversible changes to the environment or create a threat to human health and well-being, cultural heritage and/or property. Activity causing significant effect on environment Some examples of activity causing significant effect to the environment are as follows: 1) oil processing except when oil is only used to produce lubricating substances; 2) gasification or liquefaction of coal or oil shale in cases where daily consumption of raw material is equal to or exceeds 500 tonnes; 3) construction of a thermal power plant or other calcining plant in cases where its rated thermal capacity is equal to or exceeds 300 megawatt; 4) construction, closure or decomissioning of a nuclear power plant or other nuclear facility with the exception of a scientific research equipment intended to produce or process fissionable materials or materials for nuclear fusion in cases where its maximum thermal capacity does not exceed one kilowatt of constant thermal load; 5) production or enrichment of nuclear fuel, processing of exposed nuclear fuel, or handling used nuclear fuel or radioactive waste; 6) construction of a temporary or permanent depository of nuclear fuel or radioactive waste; 7) production of substances in industrial volumes by way of chemical processing in cases where several units of equipment are sequentially and functionally connected and are used to produce organic and inorganic basic chemicals, phosphoric, nitric or potash fertilizers, whether simple or complex, substances protecting plants or biocides, medicines through a chemical or biological process, or explosives; 8) production of paper or cardboard with the production capacity of at least 200 tonnes per day, or production of pulp from wood or similar fibrous materials; 9) use of ground water equal to or exceeding 10 million cubic metres per year; 10) combustion, chemical processing or storage of hazardous waste; 11) combustion or chemical processing of non-hazardous waste exceeding 100 tonnes per day or constructing a land fill for non-hazardous waste if its total volume exceeds 25,000 tonnes; 12) closure of a land fill if its area is at least 1.5 hectares; 13) construction of a poultry, pig or cattle farm intended for raising at least 85,000 broilers or 60,000 chickens, 3,000 fattened pigs with each one s calculated weight exceeding 30 kilos, 900

5 sows, 450 milk cows, 600 units of beef cattle or 900 units of young cattle aged 24 months or younger; 14) surface mining of minerals on the area greater than 25 hectares, underground mining or machine mining of peat; 15) construction of terminals for chemical products in cases where their gross tonnage exceeds 5,000 cubic metres of category D or C chemicals, 500 cubic metres of category B chemicals, or 50 cubic metres of category A chemicals; Assessment of environmental effect is arranged by the person or company that plans the activity and wishes to implement it (hereinafter referred to as investor). Investor is also responsible for the expenses incurred in connection with the assessment of environmental effect. Performing general layout planning Making a general layout plan is compulsory when a site is selected for an object that bears significant spatial impact. The size of a land property for an object bearing significant spatial impact is defined in a general layout plan by the county governor in conference with the corresponding municipality and approved by the Minister of Regional Affairs. An object bearing significant spatial effect as defined by present legislation is an object creating traffic streams, amounts of polluting substances, a number of visitors, a need for raw material or workforce at the site of the planned object that are substantially different from those existing previously and that have an impact on a large area. The list of objects bearing significant spatial impact is established by the national government. An approved general layout plan serves as basis for drawing up a detailed layout plan in an area requiring compulsory detailed layout planning as well as for land management and issue of project conditions outside areas of compulsory detailed layout planning. General layout planning determines the need and order of performing detailed planning; it also reveals economic possibilities of implementing the general layoung plan. The outcome of strategic assessment of environmental effect is taken into account when general layout planning is performed. Performing detailed layout planning The objectives of detailed layout planning are as follows: 1) dividing the planned area into sections; 2) establishing the right of construction in the area; 3) demarcation of the building area, i.e. the section that can be used to construct buildings according to the right of construction in the area; 4) defining areas to build roads and arrange street traffic and, if necessary, defining an existing or prospective road located on the land owned by а private-law legal entity as a public road in the order prescribed by the Law on Road Management; 5) defining principles of landscaping and land improvement; 6) defining gaps between structures; 7) defining location of pipelines, networks, and other engineering structures; 8) defining ecological requirements for implementing actions intended in the plan and, when necessary, defining buildings which require an assessment of ecological impact to be carried out when making a building project; 9) where appropriate, proposing adjustment, alteration, or termination of the protection mode for protected areas and separate objects; 10) where appropriate, proposing a protection mode for areas and separate objects;

6 11) where appropriate, defining development areas that are deemed valuable in terms of human environment and determining regulations for their protection and use; 12) where appropriate, defining essential architectural guidelines for buildings; 13) defining the need for easement; 14) where appropriate, defining areas of defence importance; 15) establishing regulations and conditions reducing criminal hazards; 16) defining the scope of other limitations regarding real estate in the prospective area ensuing from laws and other legislation. The right of construction in the area determines: 1) the purpose(s) of the area s use; 2) the maximum permissible number of buildings in the area; 3) the maximum permissible size of the area under development; 4) the maximum permissible height of buildings. An approved detailed layout plan serves as basis to form new cadastral units and to alter the boundaries of existing cadastral units along with the existing obligation of performing the detailed planning. Along with the existing obligation of performing the detailed layout planning, a building project is made based on the approved detailed layout plan in the order prescribed by the Law on Construction (RT I, 2002, 47, 297; ПАЭ, 2003, 9). At the time of making a detailed layout plan, a strategic assessment of environmental effect is performed if required in cases listed in Article of the Law on Assessment of Environmental Effect and System of Environmental Management. In such cases, detailed layout planning must take into account the outcome of the strategic assessment of environmental effect.

7 Web links to Estonian legislative acts to assist investors LAW ON PLANNING RT I 2002, 99, 579; LAW ON CONSTRUCTION 1 RT I 2002, 47, 297; LAW ON ASSESSMENT OF ENVIRONMENTAL EFFECT AND SYSTEM OF ENVIRONMENTAL MANAGEMENT 1 RT I 2005, 15, 87; COMMERCIAL LAW RT I 1995, 26-28, 355; LAW ON LAND REFORM RT I 1991, 34, 426; RT I 2001, 52, 304; 93, 565; 2002, 11, 59; 47, 297 ja 298; National Government decree no.198 LIST OF OBJECTS BEARING SIGNIFICANT SPATIAL IMPACT National Government decree no.224 PRECISE INVENTORY OF FIELDS OF ACTIVITY WHICH REQUIRE CONSIDERATION OF THE NEED FOR PERFORMING AN ASSESSMENT OF ENVIRONMENTAL EFFECT RT I 2005, 46, 383; REGULATIONS AND GUIDELINES FOR SUPPORT OF CLUSTER DEVELOPMENT RTL 2008, 70, 996; RTL 2009, 25, 320;

8 Links to web resources containing additional information for investors Land Department Commerce Register Register of Buildings Assistance for entrepreneurs General layout plan of the city of Kohtla-Järve Development programme for the industrial zone of Kohtla-Järve s Järve section This publication has been produced with the assistance of the European Union. The contents of this publication are the sole responsibility of project EstRuClusters Development partner Kohtla-Järve Town Government and can in no way be taken to reflect the views of the European Union.

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