The results of the work of the NGO “Chukotka AO Development Fund” as of April 1, 2017

The projects worked out by the Fund are implemented in the areas of mining (coal, gold, etc.), the utilization of solid domestic waste, the modernization of the water treatment plant in the city, the modernization of the power plant, the introduction of new technological solutions in wind and electricity, and processing of fish resources. These projects are implemented by representatives of large, as well as medium and small segments of the business. At the moment, one application is pending at JSC “Corporation for Development of the Far East.” In the preliminary study, the Fund has about ten projects in various sectors at various stages of readiness and with different deadlines for the planned launch of the project. For example: crop production, food processing, fishing, production of building materials, alternative energy, tourism, additional education. This year, it is forecasted an increase in the announced investments at the level of 110% from the figures of the previous year, and an increase in the number of residents to 100% of the existing volume.

On the territory of the Pevek urban district, as part of the Free Port of Vladivostok, there is one application for the assignment of resident status in the examination and two applications at the stage of preliminary preparation. There is also a list of about ten investment projects planned to be developed this year. The proposed activities for the development of the northernmost city of the Chukotka Autonomous Region will be represented by the creation of a logistics and warehousing complex, the opening of a mini meat processing workshop, the production of semi-finished and finished food products, the organization of an entertainment center for children, the organization of a recreational and leisure center for residents of the urban district and other.

In February, the Fund adopted a new version of the Charter with the addition of the powers of the regional guaranteeing organization (RGO). The platform is ready for the announcement of an unlimited competition on the selection of credit institutions for the purposes of cooperation since April 2017. Competitive selection is conducted for the purpose of concluding agreements in the sphere of providing the Fund with guarantees for small business entities on loans as a regional guarantee organization. This means that each credit institution that meets the minimum requirements of the Fund will be able to apply on a day-to-day basis for competitive selection on an individual basis and receive the Funds consent to cooperate within 5 days. The implementation of this mechanism will allow entrepreneurs of the Chukotka Autonomous Region to receive, at a lower cost, an alternative solution instead of pledging property on loans received from commercial banks that are partners of the Fund.

As part of the creation of mechanisms that implement the principles of public-private partnership in the district, the Fund gained experience in preparing the first in the district transaction of an initiative concession. To date, the transaction has been brought to the stage of operation of the facility by the concessionaire.

In 2017, the Fund provided a free-of-charge preparation of a feasibility study for five applicants. As a result, five start-up entrepreneurs will be able to apply for a grant issued by the Department of Finance, Economy and Property Relations for state support purposes. To date, the Fund has about five similar applications of business entities.

Since the beginning of the year, the Fund has started providing consulting and business planning services to business entities for the purpose of searching for investors and launching start-ups. To date, three business plans have been drawn up, which are used by the initiators to search for investments in the development of tourism and hothouse economy in the region. A presentation for the purpose of seeking the state support of the project in the field of folk crafts and preservation of the historical and cultural heritage of the small peoples of the Far North was also created for an individual.

On the implementation of the partner environment – for today the Fund has cooperation agreements: with the JSC “Corporation for Development of the Far East” on interaction in the field of attracting residents and providing them with consulting services; with regional offices of commercial banks for the purpose of increasing the availability of credit resources and increasing the financial literacy of business representatives; with the All-Russian public organization “Investment Russia” for the purpose of improving the quality and accessibility of services to find investors on an interactive international platform. A platform is being prepared for the conclusion of an agreement on partnership with the Development Fund of the Far East, JSC Corporation for the Development of Small and Medium-sized Entrepreneurship. In the process of signing an agreement with the Agency to attract investment from the Far East.

Fund87, 03.04.2017