In March 2016, the Government of the Chukotka Autonomous Region was established to stimulate the development of the region's economy, promote the creation of a favorable investment climate, develop mechanisms for implementing comprehensive measures to support entrepreneurship and reduction of administrative barriers to business of NO "Fund for Development of Economics and Direct Investments of the Chukotka Autonomous Region".
The main task of the fund is accompanied by a free, attracting and advising potential investors. Foundation ready to individually respond to business representatives on a number of issues. For example, what opportunities are provided to residents of Vladivostok advanced development territories or the free port, how to become a resident of the Beringovsky Development Priority Area, or how to obtain the status of a resident of the Free Port of Vladivostok, and can also give advice on how to properly draw up a business plan how to get the optimal state support for your investment Project and reduce administrative barriers, how to find a private investor, how to determine the most favorable conditions for financing a business.
“The Fund operates less than a year, but has already achieved significant results. As part of the promotion of the Beringovsky PDA, assistance is provided to future residents in the processing of applications, as well as consulting and coordination support for projects throughout their lives. For 10 months of work, 12 investment projects with announced investments of 15.2 billion rubles were drawn up and brought to realization and the creation of 1345 jobs with different skills. The projects worked out by the Fund have been implemented in the areas of mining (coal, gold, etc.), utilization of solid domestic waste, modernization of the city water treatment plant, modernization of the power plant, introduction of new technologies in wind power, processing of fish resources. Projects are implemented by representatives of both large and small and medium business segments. The forms of ownership of the PDA participants are presented both by individual entrepreneurs and peasant farms, and by companies (joint-stock or limited liability companies). Investments on the declared projects range from 500 thousand rubles to the sums in billions of rubles. In 2017, PDA “Beringovsky” assumes the successful implementation of previously implemented projects, the preservation of the significance and quality of the announced investment initiatives, the growth of the announced investments at 110% and the increase in the number of residents to 100% of the existing volume.
It is necessary to note the completion on December 28, 2016 of the formation of the first application by the Fund for the applicant to the residents of the free port of Vladivostok in the part of the CD Pevek. A potential resident announced a project to create and operate a well-maintained parking lot. The application is currently under consideration in JSC “Corporation for the Development of the Far East” and in February you can expect registration of the first resident of the free port, territorially located in the CD Pevek. The positive experience gained by the Chukotka Development Fund in the development of business plans and the launch of investment projects within the TOP Beringovsky will be used when working with residents of the free port of Vladivostok and other areas of the Fund’s work. Today there are already about 10 projects scheduled to be developed in the city district of Pevek. We plan to implement a good half of them already this year. The proposed activities for the development of the northernmost city of Chukotka Autonomous Region will be represented by the following types: the creation of a logistics and warehouse complex, the opening of a mini meat processing workshop, projects for the production of semi-finished and finished food products, the organization of a leisure center for children, the organization of a recreational and leisure center for residents City district and so on.
In July 2016, the Development Fund of the Chukotka Autonomous Region, along with representatives of the municipalities of the Region and representatives of business in the sphere of housing and communal services, managed to participate in a significant event organized by the Department of Industrial and Agricultural Policy of the Chukotka Autonomous Region. The event was aimed at the introduction of a unified approach and standards within the district when forming a list of public utility facilities that are promising for the potential use of concession agreement mechanisms. The outcome of the event for the Region is a long-term plan for the development of the housing and communal services sector, and for the Chukotka Development Fund the plan for working with potential customers for the purpose of supporting future investors.
In August 2016, the Fund took an active part in resolving a number of issues that arose when attempts were made to implement preferences in practice by residents of the PDA “Beringovsky” regarding customs benefits. Based on the results of joint meetings with the bodies of the Customs Administration in the territory of the Chukotka Autonomous Region, representatives of the JSC “Corporation for the Development of the Far East” and local self-government bodies, several proposals were made on amending the existing legislation, applications were submitted and the first results in the form of indulgences for residents of the PDA Located in the Far North.
On October 1, 2016, the management of the Chukotka Development Fund took part in the visiting session of the working group headed by Y.P. Chukotsky at the site of the Government of the Chukotka Autonomous Region in the city of Anadyr. Trutnev Deputy Chairman of the Government of the Russian Federation, Plenipotentiary Representative for the Far Eastern Federal Region. A high evaluation of the Fund’s activities in the direction of attracting residents of the PDA “Beringovsky” was received.
In October 2016, the Foundation provided for the first time a service for gratuitous preparation of a feasibility study submitted by an individual entrepreneur as part of a package of documents for obtaining state support in the form of subsidizing a portion of costs of SMEs related to the acquisition of equipment for the purpose of production modernization. In December, the application was approved by the Department of Finance, Economy and Property Relations, and the individual entrepreneur received state support in the form of cash.
In 2016, the Fund participated in three meetings of the Government of the Chukotka Autonomous Region and about 15 working meetings on issues related to the implementation of measures and the development of business support mechanisms in the Region, as well as issues related to the promotion of investment projects.
In addition, several meetings were held with representatives of banking structures in the region, participated in meetings of working groups of local governments on matters in contact with the activities of the Fund, a meeting was held with representatives of the tax inspection on the application of preferences for residents of the PDA, The topics of the expansion of the services of the Russian Industry Development Fund, the Small and Medium Enterprise Development Corporation, the Human Capital Development Agency etc.
Undoubtedly, the most significant event of 2016 for the Foundation was participation in the Eastern Economic Forum. As part of the official delegation of the Government of the Chukotka Autonomous Region, the Director of the Foundation Olga Plotnikova attended a number of sessions, attended a plenary session with the participation of the President of the Russian Federation, attended negotiations and signed agreements of significance for the district. For the work of the Fund, a significant event was the signing of an agreement on partnership with the JSC “Corporation for the Development of the Far East” in the direction of attracting and advising potential residents of the PDA “Beringovsky” and the free port of Vladivostok (in the part of CD Pevek). It is necessary to note a useful exchange of experience with colleagues from the investment institutions of the development of the Far East and established contacts with representatives of a potential partner environment.
The Fund concluded several partnership agreements, including:
- in order to improve the availability of investment tools for the region’s business on interaction in the sphere of attracting residents and providing them with consulting services from JSC “Corporation for the Development of the Far East”;
- in order to increase the availability of credit resources and increase the financial literacy of business representatives with regional offices of commercial banks (PJSC Sberbank, JSC Rosselkhozbank, JSC ATB);
- in order to improve the quality and accessibility of investor search services on an interactive international site with the All-Russian Public Organization “Investment Russia”.
A platform is being prepared for the conclusion of an agreement on partnership with the Far East Development Fund, the Small and Medium Enterprise Development Corporation and the Far Eastern Investment Agency.
On the plans and the short term – I would like to note a few important points. The expected result of 2017 on the diversified development of the investment component of the Region economy was set at an optimistic level. To date, the Fund has 5 projects with potential investments of more than 250 million rubles. And the potential to create about 20 jobs. These projects are intended to receive grants from the Chukotka Autonomous District in the direction of supporting the investment component in the framework of regional development programs, for the purposes of applying to the Far East Development Corporation JSC and receiving the status of a resident of the PDA and free port of Vladivostok as well as those compiled for search purposes Private investor. Among the projects under consideration, it is planned to modernize and introduce alternative technologies in the electric power industry, improve the utilization of hazardous domestic wastes, create a greenhouse economy, develop the tourism sector, implement services in the field of additional education, etc.
In addition to the listed areas for 2017, the Government of the Chukotka Autonomous Region is responsible for the development of several other components of the long-term plan for the region’s development, including the launch of a regional guarantee organization on the basis of the Fund.
The status of the regional guarantee organization will allow the Fund to issue guarantees for small businesses to secure part of the loan obligations and will simplify the availability of small business crediting in the territory of the Chukotka Autonomous Region, reduce the cost of registration of collaterals and reduce barriers to credit resources. Upon the launch of the regional guarantee organization, the partnership will become accessible to the Corporation with the Corporation for the Development of Small and Medium-Sized Enterprises, which will increase the capacity of the Fund by approximately three times, according to expert estimates.
Currently, the development and development of a management company for the Anadyr industrial park has also been launched with the aim of providing ready-made sites for business with the option of a “single window”. In the paid use of business representatives for the organization of production or services will be offered as land for self-development under an individual plan, and ready-made warehouse or office space with a concomitant set of services for resource support and technical support.
In a close study, the creation of a regional base of business initiatives and expansion of the partnership environment in the direction of promoting investment projects in the region. In general, the planned activities are aimed at creating an equitable environment for positioning products of new industries within the frameworks of projects being designed, searching for investors, consulting and coordinating support in the territory of the region, etc. We invite entrepreneurs to cooperation and are open to constructive dialogue with various institutions of the investment environment. The Fund is aimed at fruitful cooperation in the field of implementing promising investment projects or business ideas. “- said Olga Plotnikova, Director of the Chukotka AR Development Fund.
In the near future, JSC “Corporation for the Development of the Far East” will employ a full-time employee in Pevek, whose mandate will include advising potential residents of the free port of Vladivostok on the advantages of residence and the preferences granted, the procedure for filing an application with JSC “Corporation for the Development of the Far East” Status of the resident, support of investment projects implemented by investors. The work of the representative of JSC “Corporation for Far East Development” will be carried out in close cooperation with local authorities and the Chukotka Development Fund, which will complement the work with opportunities to streamline administrative procedures and access to free services of the Fund in terms of writing business plans, searching for investors, structuring Projects, etc.
Fund87, January 17, 2017