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Investment mechanism set up in Far East - EastRussia | Analytics of the East of Russia






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The Far East is tuned to an investment mechanism

KRDV is ready to automate the processes of support of investment projects

The system of interaction with business in the Far East created by the state in 2014-2016 should be further improved, Deputy Prime Minister - Plenipotentiary of the President in the Far Eastern Federal District Yury Trutnev announced at the end of December days of the Japanese and Chinese investor in Vladivostok. The Far East Development Corporation, which is responsible for investor relations, says that they are ready to automate the process of supporting investment projects, transfer more and more powers to the “subsidiary” management companies, and seek compromises for investors in dealing with authorities and state-owned companies, and protect their interests to the last - in court.

The Far East is tuned to an investment mechanism
Photo: Denis Tikhonov, Director General of the Far East Development Corporation, and Igor Afanasyev, Director General of Gazprom Refining Blagoveshchensk, sign an agreement on the implementation of the project in TOR, TASS / VEF-2017 photo bank
Special project TORA and Free Port
18-19 December in Vladivostok passed the days of the Japanese and Chinese investor, during which the Russian authorities talked with representatives of 38 foreign companies with a total annual turnover of $ 500 million wishing to invest in the Far East. For the sake of attracting investors, the state is ready to improve the existing preferential regimes - the territories of advanced development (TOR) and the free port of Vladivostok (SPV), said Deputy Prime Minister Plenipotentiary to the Far Eastern Federal District Yury Trutnev after the meetings. "For investors - residents of TOR, we have developed a good support mechanism: we have made tax breaks, created a regime of administrative support and assistance in building infrastructure. Investors who want to become residents of the free port of Vladivostok are less stringent requirements, therefore we have not provided for them administrative support But, speaking now with investors, you understand that, probably, such a mechanism needs to be done, ”said Yury Trutnev.

The Far East is a unique region in Russia: it has a significant share of the country's natural resources (from 20% of oil and gas to 55% of gold) and the capacious markets of the Asia-Pacific region, in which 55% of the world's population live, are very close. But the severe climatic conditions, the lack of modern infrastructure and high tariffs make investments in the Far East quite risky. Just to reduce the risks of investors, in 2014-2015 for the region, special conditions for investments were legally prescribed: investors significantly alleviate the tax burden and through various instruments help the implementation of projects on behalf of the state.

Over the past few years, 18 analogues of special economic zones have been created in the Far East - the territories of advanced development, where businesses are offered not only lower tax rates, but also sites with infrastructure. The preferential treatment of the free port of Vladivostok went far beyond Primorsky Krai and covered already 21 municipality in five regions of the Russian Federation. In 2015-2016, 26 new enterprises were put into operation in TOP and SPV. Until the end of this year, these figures will increase to 83 new enterprises - this is 146 billion rubles invested and 8 500 new jobs. Only in December 2017 new projects are put into operation: a pharmaceutical plant in the Khabarovsk Territory, a medical center in Vladivostok, mining enterprises in Chukotka, transport and logistics complexes and business centers, port coal terminals. Among the most large-scale Far Eastern construction projects in the near future are the Amur Gas Processing Plant of Gazprom worth 13 billion rubles, the Eastern Petrochemical Complex Rosneft worth 950 billion rubles, the modernization of the Baikal-Amur and Trans-Siberian railways of Russian Railways with investments of 650 billion rubles to 493.

Investors in the Far East are escorted by a special management company - the state-owned JSC Far East Development Corporation (KRED). The Corporation rents out land plots to residents and builds infrastructure for TOP sites - brings networks and roads to them, accompanies investors' projects on a daily basis, helping to solve administrative problems of the widest range. In the regions, subsidiaries of the KRDV have been established, which perform the same functions on the ground, working closely with residents. Since the beginning of the "new economic policy" in the Far East, the corporation has already received about 1000 applications from those wishing to conclude agreements on investment activities.

Agreements were signed with 399 investors in the free port (361,5 billion rubles of investments) and 205 - in the TOP (2,17 trillion rubles of investments), with plans to create new jobs around 75 000. The 81 application for the amount of 13,9 billion rubles is under consideration. By the end of 2017, the status of TOR and SPV residents will receive more than 600 companies.

Denis Tikhonov, Director General of the KRDV, says that the priority of the corporation remains attracting all new residents in the territory of advanced development and the free port of Vladivostok, despite the fact that their number has already exceeded 600. "Our task is to create a favorable climate for investors, which consists not only in accompanying, consulting, administrative and legal support, but also in infrastructure construction - this is no less significant criterion for business that comes to the TOP.It is also important to expand the scope of KRWA, and therefore, the sphere of support for residents, "- he said.

“The volume of work is growing,” Denis Tikhonov admits. “Based on this, the role of the“ subsidiary ”structures that work in the regions needs to be increased - some of the authority will be transferred to this level, such work has already begun. And we will strive for ever more automation of the business -processes within the corporation.Already now, visiting our website, you can fill in the tables for the business plan, the main document that we require for each application, by clicking a single button.The intermediary structures managed to set up a business on writing applications and znes plans for submission to the KRDV. To facilitate the use of site services will videopomoschnik forum and in the near future, as well as chat to directly contact the responsible experts KRDV for advice. They organized a call-center, which provides advisory support to residents. "

Now the scheme of interaction between business and government in the Far East looks like this. Concluding the investment agreement with the KRRD, the entrepreneur assumes responsibility for the fulfillment of the undertaken obligations - this is the set level of capital investments and tax revenues to the budgets of the respective territories. The state provides benefits, builds infrastructure, and the business undertakes to start the project within two years, provide engineering and design estimates, and then regularly report on the progress of the project. It is obvious that both the investor and the management company are very closely connected with this work: with the failure of one side to fulfill all the plans of the other are in jeopardy. That is why KRFV and investors have to constantly meet each other's friends. For example, at the stage of developing the planning documentation for TOP, many residents applied to the corporation for inclusion of their projects in the draft planning. The choice between observing formal deadlines and maximally taking into account the interests of residents was made in favor of the latter.

The corporation is ready, Denis Tikhonov continues, for the sake of increasing the effectiveness of the work of investors to take on all the risks of interaction with authorities, including about the construction of infrastructure. To this end, he acknowledges, it is often necessary to solve the most complicated issues with network owners - Gazprom, Federal Grid Company, and the search for a compromise is not an easy task, which can be handled only by another state structure such as the KRDV. For example, it was thanks to a compromise with FGC that it was possible to connect residents to new power grids in the Komsomolsk TOP on the Parus site, the Khabarovsk TOR on the Rakitnoye site and the Nadezhdinskaya TOR at the most favorable tariff is twice cheaper than in the average by region.

Now in the Far East in an active phase is 134 infrastructure object: 21 is built, 59 is being built, 54 is being designed. Residents were given about 80 technical conditions for connection to infrastructure facilities under construction in the areas of advanced development. "Any complicated tasks related to the design, the need to establish tariffs for the service for technological connection, directly the object of construction, or, for example, the need to go through linear objects on the lands of the forestry fund of the Russian Federation, are settled by providing connection on a temporary basis," explains Denis Tikhonov. According to him, the entire infrastructure is built taking into account the applications of residents and according to the approved plan-schedule. The total amount of planned investments is about 70 billion rubles. The preparation for the creation of infrastructure facilities started in 2016, and to date the KRRF has concluded key agreements for the provision of TOP sites with all the necessary resources: water, water disposal, gas, electricity and, where necessary, heat energy. The main commissioning of infrastructure facilities, including those under technological connection agreements, is planned for 2018 year.

Since the platforms of TOR were created in different years, for some of them, as, for example, in the industrial park "Kangalasy" in Yakutia, all the issues with infrastructure have long been resolved. In the Nadezhdinskaya TOR, where 36 resident enterprises are registered, most of them are TOR, applicants have been provided with power supply since September 2017, the water supply networks will be built in 2018. In the Komsomolsk PDA, nine of the 19 investment projects planned for Holdomi and Parus sites still need networks. According to the first agreement on the connection to the electricity supply networks was concluded, an agreement on gas supply is being concluded. On the second in October, the procedure for selecting a contractor for the construction of the 7,5-kilometer gas pipeline was launched. Motorways with a total length of more than 13 km, centralized water supply, sewage systems and a heat supply system based on thermal waters of 20 km length will appear in the TOR "Kamchatka". In TOR "Bolshoy Kamen" (Primorye), a central heat point is being built to provide 1100 with apartments for the construction of the residential complex "Sixth" for employees of the Zvezda shipbuilding complex. In November, construction sites were provided with power supply networks. The technical conditions for connecting to the 30 heat supply networks of high-rise buildings in the Solnechny, Fifth, and Green neighborhoods were obtained. In addition, an individual tariff was received for the reconstruction and construction of water supply and sanitation systems.

Another difficult issue is the allocation of land for investment projects. "Even corporations sometimes find it difficult to form a land plot and get the necessary permits and approvals, and to solve the problem one has to resort to the help of a higher-level management." What to speak about entrepreneurs who alone can not simply overcome such difficulties, "the head of the KRDV notes. "It is necessary to change the town planning regulations in such a way that the land for the projects of the KRVV was" for future use "or quickly stood out from the array that exists in the cadastre and can be used," Denis Tikhonov believes. "The corresponding draft has been prepared and sent to the government of the Russian Federation" .

The general director of the plant for the production of acrylic paints LLC "BIGE" (Yakutia) Andrei Neustroev believes that the preferences given by the territories of advanced development make it possible to increase the profitability of the project, which affects the cost of production and its competitiveness in the domestic and foreign markets. The investor, who came with the project of the acrylic paint factory, was "incubated" in the Yakutia technopark, and then became a resident of the TOP, launched the plant and plans to expand production. Now the plant supplies paint to all construction companies of the republic and even sells it to other regions of the Far Eastern Federal District.

"The advantages of TOP are obvious: the first is free connection to infrastructure facilities, last year we started construction, and this year we finished and immediately connected to gas and electricity networks to start our activities," says Andrey Neustroev. As additional bonuses that allow the business to expand and replenish the ranks of residents of the TOP, the businessman names tax benefits for pension payments, benefits on income taxes, and serious information support for residents in the media.

"The creation of a TOP provides a powerful impetus for business development, the mechanism of TOP is effective and should be a solution to the problem of single-industry towns, but of course, the development depends on the residents themselves. We are given great opportunities, but everyone decides how to dispose of them," Director of OOO "Mercy Agro Primorye" Oleg Zubakhin. The company - the anchor investor of the Mikhailovsky TOR in Primorye, having reached the stage of growth, has shifted from the development of infrastructure for production to the construction of social infrastructure. Without people, everything else will not be viable, and tax benefits allow businesses to develop successfully and quickly, to pay decent salaries to employees, "said Oleg Zubakhin.
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