20 Large Investment Projects Implemented in Karelia within Past Years
OREANDA-NEWS. Measures of improvement of investment climate in Karelia were discussed at the panel session of the Ministry of Economic Development of the republic held on October, 24.
Sergey Alimpiev
The panel was held under the chairmanship of Valentin Chmil, Deputy Head of the Republic of Karelia and Minister of Economic Development of the Republic of Karelia. Representatives of business, science, the banking community, a number of heads of regional administrations, heads of ministries and state committees of the conomic bloc have taken part in the panel session. The main report was made by Sergey Alimpiev, Deputy Minister of Economic Development in charge of mobilization of investments.
As Sergey Alimpiev has told, this year, disregard of all economic difficulties, investment growth in the capital stock in Karelia is forecasted at the level of 102.1% to 2012 at absolute volume of investments exceeding 35 billion roubles.
More than 20 large investment projects in timber industry and mining, in the sphere of power engineering, manufacture of building materials, housing and communal services, trade and fish-breeding were brought to a successful conclusion in the republic in 2012-2013. More than 3400 jobs were created due to implementation of investment projects.
Among the symbolic projects Sergey Alimpiev has mentioned construction of Kalevala Woodworking Plant Ltd. producing oriented strand boards (OSB) in Petrozavodsk, construction of two minihydro power plants by Nord Hydro JSC in Ladoga Lakeside, opening of a new production mine built by famous German company Basalt AG in Kondopoga region, etc.
More than 60 applications of investors concerning options of investment cooperation, selection of industrial sites in the sphere of transport, power engineering, manufacturing activities, agriculture, manufacture of building materials, and tourism have been considered in the Ministry. As of October 1 the regional list totals 47 large investment projects launched or planned to be implemented in territory of the republic from 2012 to 2015 and in the subsequent periods. Сontinuation of implementation of previously announced investment projects on modernization of production facilities of enterprises is negotiated with prospective owners of Kondopoga and Segezha Pulp-and-Paper Plants, and Pitkaranta Pulp Mill.
Participants of the panel session of the Ministry of Economic Development
Within the scope of the St.Petersburg International Economic Forum held in June the Government of the Republic of Karelia has concluded the agreement with Mariprodukt JSC for implementation of the project of creation of the White Sea Bio-Technopark in Louhi Region, and the agreement with Northwest Development Corridor Inc. concerning implementation of the project of international importance on transport and logistics within the territory of the republic with 245 billion roubles of the total amount of investments. Under consideration are another 5 agreements with investors concerning implementation of large investment projects.
The new law of the Republic of Karelia On Support of Investment Activity is focused at expansion of granting the state support to investors in order to incite growth of investments into economy. The law expands the list of forms of the state support of investors, and provides the opportunity of using several forms of the state support by one investor. To develop the law it has been elaborated and adopted more than 20 various statutory acts.
To involve funds of the federal budget in co-financing of long-term and capital-intensive investment projects the Law on Investment Fund of the Republic of Karelia was adopted.
Within the scope of implementation of the program of deletion of administrative barriers in construction the work on creation of the multipurpose center of granting the state and municipal services with organization of a network of representations all over the republic working on a one-contact principle. Implementation of this project will allow to reduce the term of investment cycle in construction considerably.
On Sergey Alimpiev's estimation, general analysis of the situation in the sphere of investments indicates that the base complex of elements of the modern system of mobilization of investments has been formed and is developing in the republic. Improvement of investment climate is confirmed by results of the investment appeal rating of Russian regions performed annually by Expert RA Group of Rating Agencies. On results of research made in 2011-2012 Karelia's rating has grown. The main indicator of improvements in the investment climate has become general decrease in investment risks, and, thus, growth of the possibility of arrival of new investors in the region.
At the same time, unresolved key problems in the economy of Karelia lead to instability of investment development in the republic. Among these problems there are insufficient transport, power and municipal infrastructure for potential industrial sites of the region, lack of own financial resources for implementation of investment activities and lack of qualified workers and engineers.
At the panel session it was observed that considering the nature of existing problems, the investment policy of the republic in 2014-2017 will be, first of all, focused at formation of favorable investment climate with a view of creation of conditions for technological modernization of the economy, increase of economic potential of the republic, and elimination of infrastructural restrictions of economic growth.
One of directions of this activity will be introduction of the Activities Standard of Executive Bodies of the Region for maintenance of congenial investment climate, elaborated by the Strategic Initiative Agency in partnership with All-Russia Public Organization “Delovaya Rossiya” (Business Russia). The Standard provides presence of 15 components which scope focused at performance of benchmark terms that enable essential improvement of investment climate in the republic and provide growth of the inflow of investments.
With a view of mobilization of investments in the republic the new mechanism stipulated by the Federal Law About zones of territorial development in the Russian Federation will be used. According to this Law the order if the Governmental of Russia has approved the list of regions where creation of zones of territorial development is supposed. The list of 20 constituent entities of the Federation also includes the Republic of Karelia.
The zone of territorial development is created for the term of 12 years and assumes formation of favorable conditions for its residents for mobilization of investments in the economy of the territory through granting measures of the state support. Definition of regions of Karelia to be included in the zone of territorial development will allow to start development of the investment Strategy.
The panel session of the Ministry of Economic Development of the republic
Implementation of the Basic Directions of investment policy of the Government of the republic for 2011-2015 will also continue. Introduction of the Standard, creation of the zone of territorial development, implementation of the complex of regional measures on development of public infrastructure are expected to reduce essentially the influence of factors constraining investment development of the region by 2018. As a result of the measures taken in 2014-2017 creation and modernization of 13,500 workplaces is planned.
Konstantin Kharakozov, Chairman of the State Committee of the Republic of Karelia for Transport, and Vitaly Sergeyev, Deputy Minister of Construction, Housing and Communal Services, and Energy of the Republic of Karelia, have told about removal of infrastructural restrictions impeding economical development. One of the key projects in this sphere should be gas infrastructure development in southern regions of the republic providing not only construction of gas mains, but also construction of new boiler-houses and replacement of all thermal facilities. Another important direction of work is construction and repair of roads, including those that lead to operating and planned international automobile border-crossing points.
Director General of Byelomorsk Port Joint-Stock Company Andrei Kyachin and Deputy Director General of Petrozavodsk Municipal Systems Inc. Natalia Klemesheva have shared experience of implementation of investment projects in Karelia at the panel session.
Alexander Titov, Director of the Karelian Research Center of the Russian Academy of Science, and Yuri Saveliev, Director of the Institute of Economic Studies, have told about their vision of implementation of investment policy in Karelia.
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