Results of the work of the NGO “Chukotka AR Development Fund” as of March 1, 2017

The work of the Fund with the residents of the PDA Beringovsky continues. It helps to formulate applications by residents and to support projects throughout their life. The result is 12 residents with announced investments of 15.2 billion rubles. At present, 170 jobs have been created for residents' projects and it is planned to create another 1294 workplaces in several stages. 422.5 million rubles have been developed by investment.

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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, the modernization of the power plant, the introduction of new technological solutions in wind and electricity, 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, the Foundation has several projects in various fields, for example: utilization of hazardous domestic waste, crop production, processing of food products, fishing, production of building materials. This year, it is forecasted that the announced investment will grow at the level of 110% of last year’s indicators, and the number of residents will increase 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 one application at the preliminary preparation stage. 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 others.

In February, the Fund adopted a new version of the Charter with the addition of the powers of the regional guaranteeing organization (RGO) and announced a tender for credit organizations in two parts – to conclude agreements on cooperation in the field of providing guarantees for small business entities on loans and for placement of guarantee capital in commercial deposits banks. The results will be announced on March 24, and if the contest is successfully completed, the Fund will start issuing guarantees at a low cost, which will allow entrepreneurs to increase the availability of credit funds with minimal costs for registration. As part of the creation of mechanisms that implement the principles of public-private partnership in the district, the Foundation 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 October last year, the Foundation for the first time provided a free-of-charge preparation of a feasibility study, which was submitted by an individual entrepreneur as part of a set of documents for obtaining state support. In December, an individual entrepreneur received approval from the Department of Finance, Economy and Property Relations on his application and received state support in the form of cash. To date, the Fund already has five such appeals from business entities.

Since the beginning of the year, the Foundation has started providing consulting and business planning services to business entities for the purpose of searching for investors and launching start-ups. To date, one business plan has been drawn up, which is used by the investor to search for investments in the development of tourism in the region. Also, a presentation was made for applying for the state support of the project in the field of folk crafts and preserving the historical and cultural heritage of the peoples of the Far North.

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 agreeing on a draft agreement with the Agency to attract investment from the Far East.

Fund87, March 1, 2017