STAVROPOL KRAI INVESTMENTS DEVELOPMENT
1. AREA STRATEGIC DEVELOPMET
2. INVESTMENT POLICY OF STAVROPOL KRAI
2.1. Investment behavior
2.2. Priorities of the investment activity
2.3. Innovation activity
3. FORMS OF STATE SUPPORT IN THE STAVROPOL KRAY
3.1. Regional investment legislation
3.2. Forms of state support for the subjects of investment activity
3.3. Forms of state support for small and medium-sized businesses
3.4. Forms of state support for the subjects of innovation activity
3.5. Forms of state support for businesses of agricultural sector
3.6. Tax benefits and preferences for the residents of regional parks
3.7. Mechanism of state guarantees and employment of Investment Fund
4. INFRASTRUCTURE OF THE INVESTMENT DEVELOPMENT IN THE STAVROPOL KRAY
5. REGIONAL INDUSTRIAL TOURISM RECREATIONAL AND TECHNOLOGical PARKS
1. AREASTRATEGICDEVELOPMET
The development of economy and social sphere of Stavropol krai is directed in accordance with Strategy of socio-economic development of Stavropol krai from 2020and until2025. The system of strategic planning, which includes 23sectoral strategies, 33 strategies and programs of the socio-economic development of the municipal and urban districts of the krai, settlement programs of the municipal districts of Krai, was formed in Stavropol krai.
The geographically clustered approach, as well as the development priorities of Krai’s industries and territories, were taken as a basis of the strategic documents.
The first step towards the strategic goals realization has been the adoption of the five-year development programin2010in Stavropol, which activities and target indicators are closely linked to the solution of the problems identified in Krai’s strategy.
The program is aimed at poverty overcoming, lifetime increase and new vacancies creating while increasing of the high technology products share produced in Krai. Implementation of the social, infrastructure and investment projects, which total funding need will amount hundreds of billion rubles, is planned as a part of the program in the period until 2015 in Krai’s territory.
Ministry of Economic Development of Stavropol krai developed programs of “Economy modernization, development of innovations, small and medium businesses, support for competition and investment climate improving in Stavropol krai” (hereinafter -the Program).The terms of Program performance are planned for 2013-2015.
The main objectives of the Program are to ensure sustainable socio-economic development of Stavropol krai, accelerated development of Krai’s backward and depressed areas through the local initiatives increasing, Krai’s economy transformation for the innovative development, improving of the investment climate in the krai, favorable conditions creating for the small and medium businesses development, reduction of the administrative barriers for business and improving of Krai’s economy competitiveness.
The Program financing is planned to be provided from the budget of Stavropol krai, budgets of the municipalities of Stavropol krai and extra-budgetary sources.
The volume of the budget funds of Stavropol krai directed on the Program implementation is planned in the amount of2,311,883.02rubles, including for the each year:
2013 year – 767381.14 thousand rubles;
2014 year– 770572.19 thousand rubles;
2015 year– 773929.69 thousand rubles.
The program includes several sub-programs:
1)”Positive image creating and propagation of Stavropol krai, favorable investment climate formation in Stavropol krai”.
2)”Municipal unit territories’ development of Stavropol krai, within the programs (projects) based on the local initiatives”.
3)”Administrative barriers reduction, optimization and improving public and municipal services quality in Stavropol krai”.
In addition to the programs listed above, the tools of the Krai’s economic modernization are the following Krai’s goal-oriented programs, approved by the Government of Stavropol Krai:
“Small and medium-sized businesses support in Stavropol krai for 2012-2015”;
“Socio-economic development of the eastern krais of Stavropol krai for 2012-2015”;
“Support for exhibitions, fairs and the presentation activities in Stavropol krai for 2010-2012″.
2. investment policy of the Stavropol kray
The Stavropol kray with its large resource potential is a fairly promising niche for investments into real economy. Over the period of several last years the positive dynamics of growth of investment in fixed assets, used for economic development and social services, persists.
2.1. Investment behavior
At year-end 2011, 106.7 billion rubles of fixed asset formation were used for development of the economy and social sphere of kray in all organizations, that is, when compared to 2010, more by 9.7%. Over 2011 large organizations have used 61.0 billion rubles of fixed asset formation or 99.9% by 2010.
Investments in non-financial assets of large and medium-sized organizations amounted to 64.7 billion rubles in 2011, 99.2% of which accrued to fixed asset formation (in 2010 – 99.3%).
19.5% of the total investments in fixed assets in 2011 accrued to the manufacturing activities, 18.4% – to transport and communications, 14.7% – to agriculture, 13.7% – to production and distribution of electrical power, gas and water. Among the means used to develop production industries, investments in the chemical production hold the largest percentage – 10.5%, production of food including beverages and tobacco – 5.9%.
In 2011 the regional economy received 553.8 million US dollars of foreign investments that is 7.6 times more than in 2010. 52.6% of which accrues to direct foreign investments and 47.4% to other investments.
The bulk of investments (76.5%) belongs to the electricity generation organizations having branch network in other constituent entities of the Russian Federation. The largest volume (81.6%) of other investments (loans) was granted to enterprises of electric power industry, 8-10% for each – manufacturing enterprises and distributive trades. It is expected that in 2012-2013 the positive trend of growth in investment will override.
With the exception of region-wide level, investment policy in the Stavropol kray is also implemented at the municipal level.
According to the results of competitive selection of programs (projects) of municipal unit territory development of the Stavropol kray, based on the local initiatives, 33 municipal units were recognized as the winners. Total project financing from all sources amounted to 76.3 million rubles, including the regional budget funds – 63.2 million rubles, the municipal budget – 7.4 million rubles, extra-budgetary sources – 5.7 million rubles.
296 programs of socio-economic development of the municipal unit settlements of the Stavropol kray have been drawn up, the total number of projects is more than 2600, 763 (29%) of which – social projects, 782 (30%) – investment projects and 1072 (41%) – infrastructural projects. The implementation of planned activities will allow to create 38 926 new jobs by 2016.
In 2010 as part of 7 investment projects, the objects, total cost of which amounted to more than 26.6 billion rubles, were set in operation. More than 1,000 jobs were created.
2.2. Priorities of the investment activity
The following activities have the highest priority in the investment policy of the Stavropol kray:
· modernization and technological upgrading of enterprises, implementation of energy-saving and resource-saving technologies;
· production of import-substituting and export-oriented products;
· production of pharmaceutical, science-intensive and high-technology products;
· creation and development of regional industrial, tourists-recreation and technological parks, and related engineering and transport-logistics infrastructure;
· construction of new, reconstruction and development of existing health and recreation facilities in the Caucasian Mineralnye Vody region;
· production and high-level processing of agricultural products with the creation of high value-added products;
· development of infrastructure to support small and medium-sized businesses, including businesses in the sphere of science and technology;
· rational use of natural resources, disposal, recycling of biological, domestic and industrial waste;
· implementation and development of innovative and energy-saving technologies in the sphere of construction and production of building materials from local raw materials;
· construction and development of commercial, transport, agro-industrial and terminal-warehousing logistics centers;
In order to create a systematic approach for the implementation (monitoring) of accumulated investment projects in the kray, the Stavropol kray Government approved the lists of investment projects of four levels subject to their relevance for kray and the level of control over their execution. The total number of projects is 1796 for a total amount of 639.0 billion rubles, the number of created jobs – more than 71,500.
In compliance with the lists, control over the implementation of investment projects of different levels is assigned to the Vice-Chairman of the Government of the Stavropol kray, the heads of executive authorities of the Stavropol kray and the heads of administrations of municipal districts and urban districts of the Stavropol kray, the heads of municipal unit settlements of the Stavropol kray in supervised activities.
2.3. Innovation activity
Stavropol kray is a region with developed industrial and agricultural complexes, transport and telecommunications infrastructure, large number of institutions of higher education, advantageous geopolitical location; it has the objective preconditions for rapid formation of an innovative economics and real possibility to become a center of innovative activity in the North Caucasian Federal District.
Appropriate regulatory base have been established. The Law of the Stavropol kray “On innovation activity in the Stavropol kray” includes the following forms of state support for innovative companies: grants, subsidies, tax advantages, investment tax credits.
The system of “innovative elevator” enabling support to innovative projects at all stages of their implementation – from a unique concept to establishing batch production of innovative products – was implemented. Thus, at the seed stage that includes the creation of product vision, pre-patent research, developing business plan for project implementation and organization of its own business, it is provided state support by business “incubation” and grants. At the “startup” stage that includes carrying out of applicable research and development activities, patenting, creation of the industrial product prototype and start of preproduction batch, microloans from non-profit organization “Microfinance fund for small and medium-sized businesses in the Stavropol kray” can be obtained by small and medium businesses of the Stavropol kray. Innovative companies get further development by submission of warranties of the state unitary enterprise of the Stavropol kray “Guarantee Fund for support of small and medium-sized businesses in the Stavropol kray” and state support in the form of subsidies allowing to compensate up to 80 percent of basic assets acquisition expenses.
In 2011-2012 state support in the form of grants and subsidies from the budget of the Stavropol kray in the amount of 80 million rubles was provided to 29 subjects of innovative activity.
The process of infrastructure creation to support innovation activity in the Stavropol kray is in progress, in particular, the following entities are set up and operate:
– NPO “Innovation and technology business center of the Stavropol kray”;
– State Unitary Enterprise of the Stavropol kray “Management company of investment and innovative development of the Stavropol Kray” on the basis of which were established: center for collective use of high-tech equipment and center for technology transfer;
– NPO “Venture capital investments promotional fund for small and medium-sized businesses in scientific and technical sphere of the Stavropol Kray” (Venture Capital Fund).
Yuzhny Nanotechnology Center is being established, one of the main investors of which is Fund for Infrastructure and Educational Programs OJSC RUSNANO.
In the Stavropol kray a number of projects is implemented; total value – 4.7 billion rubles and they are approved by OJSC RUSNANO for co-financing. One of such projects is “Industrial production of high-efficiency laser devices on the base of erbium garnets obtained from nano-sized oxide powder.” In the short term a new nanotechnology industry will produce a wide range of products applicable in: optics, electronics, instrumentation and fine mechanics, watches and laser industry. Lasers made on the base of yttrium aluminum garnet crystals are also widely used in cosmetology.
3. Forms of state support in the Stavropol kray
In the Stavropol kray in the sphere of government regulation of investment activities, the main objectives are increase of effectiveness of attracting investments into economy of the kray, creating a congenial investment climate and competitive growth of kray producers on the basis of implementation legal mechanisms of state support for all businesses.
3.1. Regional investment legislation
The most important instruments of state support for investment activities are stipulated by the laws of the Stavropol kray:
“On Property tax” (dated November 26, 2003 No. 44-ks);
“On innovation activity in the Stavropol kray” (dated March 11, 2004 No. 13-ks);
“On investment tax credit” (dated November 28, 2006 No. 83-ks);
“On investment activity in the Stavropol kray” (dated October 1, 2007 No. 55-ks);
“On the procedure for granting state guarantees in the Stavropol kray” (dated July 30, 2008 No. 54-ks);
“On the public-private partnership in the Stavropol kray” (dated October 12, 2009 No. 67-ks);
“On the regional industrial, tourist, recreational and technological parks” (dated December 29, 2009 No. 98-ks).
In the kray it is formed an integrated system of mechanisms of state support for entities of investment and innovation activity under implementation of which in 2011 support to small and medium-sized businesses totaling 1220.3 million rubles (federal funds – 987.3 million rubles, regional budget – 233 million rubles) was provided; such mechanisms include the following forms of support.
3.2. Forms of state support for the subjects of investment activity:
· providing tax advantages to the subjects of investment activity, residents of regional industrial and tourist – recreational parks;
· subsidies from the budget of the Stavropol kray to the subjects of investment activities implementing investment projects;
· preferential rental rates for the use of property owned by the Stavropol kray in accordance with the legislation of the Russian Federation and the legislation of the Stavropol kray;
· budgets investment in the development and creation of objects of external engineering infrastructure necessary for the investment project implementation;
· investment tax credits for the subjects of investment activities;
· state guarantees of the Stavropol kray on a competitive basis to the subjects of investment activities;
· issue of bonded loans, guaranteed target loans.
3.3. Forms of state support for small and medium-sized businesses:
· reimbursement of expenditures related to credit agreements;
· reimbursement of expenditures for fixed assets acquisition;
· grants to emergent entrepreneurs;
· compensation for advance payment under the lease agreement;
· indemnity for breach of adhesion contract;
· providing subsidies to exporting companies.
3.4. Forms of state support for the subjects of innovation activity:
· Providing grants to new small innovative companies of the Stavropol kray for start-up of innovative company, up to 500 thousand rubles;
· providing grants to existing innovative companies of the Stavropol kray in order to compensate for expenses or lost revenue due to production (realization) of goods, work execution, rendering of services, up to 5 million rubles;
· providing subsidies to the subjects of innovation activity in the Stavropol kray carrying out its activities in the field of information and telecommunications technologies, up to 2 million rubles.
3.5. Forms of state support for businesses of agricultural sector:
from federal and regional budgets:
§ grants for reimbursement of interest charges upon attracted credits (loans) for: investment businesses, received for a period from 2 to 10 years, short-term (up to 1 year); organizations performing industrial fish-breeding; for development of small pattern businesses;
§ grants to support the livestock breeding;
§ grants to support sheep breeding;
§ grants to support elite seed production;
§ grants for establishment and handling of perennial plantings;
§ grants to compensate for part of purchase costs for plants chemical protection agents;
§ grants to compensate for part of agricultural crop insurance costs;
§ grants to compensate for part of mineral fertilizers cost;
§ grants to activities aimed at providing housing for citizens of the Russian Federation living in rural areas, including young families and young professionals under the Federal Target Program “Social development of village till 2012.”
from regional budget:
§ grants for reimbursement of part of interest charges upon attracted credits for purchase of agricultural machinery and equipment;
§ grants to the subjects of agricultural sector of the kray to compensate for part of lease payments for the engineering products supplied under the financial lease (leasing) agreement;
§ grants to agricultural commodity producers for reimbursement of part of purchase cost of technical facilities and equipment for agricultural production;
§ grants for reimbursement of part of expenses for organics and ameliorants soil application;
§ grants for livestock products (including support of the citizens keeping the private subsidiary farming);
§ costs for hail suppression and chemical plant protection;
§ grants for activities under the regional special-purpose programs for:
development of dairy cattle breeding and increase of milk production;
development of beef cattle breeding;
development of wine growing and horticulture;
development of vegetable production;
development of agricultural land reclamation;
preservation and reproduction of agricultural lands fertility;
support for new-comer farmers;
development of family livestock farms on the base of peasant (farm) enterprises;
prevention from the emergence and spread of African swine fever virus.
3.6. Tax benefits and preferences for the residents of regional parks:
· reduction of tax rate on profit by 4.5% for the payback period of the investment project and by 2.5% after the payback period of the investment project;
· reduction by 95% of the rental rate for the use by infrastructure facilities publicly owned by the Stavropol Kray;
· property tax exemption for organizations located within the territory of the regional park;
· preferential terms for connection to engineering services;
· support of investment projects using “single window” principle;
· reduction in cost of rent and land buying-out in the areas of advanced economic growth (under industrial facilities: rent from 1% to 8% of the cadastral value, buying-out from 0, 15% to 40% of the cadastral value, for residents of the park: rent from 0.02 % to 1% of the cadastral value, buying-out from 0.02% to 10% of the cadastral value).
3.7. Mechanism of state guarantees and employment of Investment Fund
Significant means to support business activity in the kray, start of new enterprises, development of contemporary engineering and social infrastructure in the kray, are state guarantees of the Russian Federation for credits obtained by legal entities registered and performing their statutory activity within the territory of the North Caucasian Federal District (hereinafter – state guarantees of the Russian Federation).
In 2011, the kray acquired state guarantees of the Russian Federation for the implementation of four investment projects in the amount of 8 737.6 million rubles.
Measures aimed at obtaining state guarantees of the Russian Federation on credits for implementation of another 4 investment projects of the Stavropol kray in 2012 are being taken. Total amount of obtained state guarantees in 2012 is estimated at 18 billion rubles, the total number of created jobs – 4561.
Activities aimed at attracting budgetary provisions of Investment Fund of the Russian Federation are carried out. Thus, to establish required infrastructure for implementation of four investment projects in the Stavropol kray in 2010, it was attracted funds of Investment Fund of the Russian Federation in the amount of 3248 million rubles. Total amount of investment outlay totals to 13,901 million rubles. Following the results of implementation of investment projects 1502 jobs will be created.
4. INFRASTRUCTURE OF THE INVESTMENT DEVELOPMENT IN THE STAVROPOL KRAY
“The management company of investment and innovative development in the Stavropol kray” – assistance in the investment process organization and the development of innovation activity, management of the regional industrial, tourist, recreational and technological parks in the Stavropol kray, support of investment projects in the “single window” mode;
“Guarantee Fund for support of small and medium-sized businesses in the Stavropol kray” provides access for small and medium-sized businesses, organizations, forming the infrastructure for support of small and medium-sized businesses in the Stavropol kray, to credit resources by establishing a system of guarantees (warranties).
“Microfinance Fund for small and medium-sized businesses in the Stavropol kray” grants loans to small and medium-sized businesses in the Stavropol kray.
“Venture capital investments promotional fund for small and medium-sized businesses in scientific and technical sphere of the Stavropol kray” develops venture (risk) financing infrastructure for small and medium-sized businesses in the Stavropol kray. This is one of the elements of the regional innovation system which supports innovative projects implemented by small and medium-sized businesses in the Stavropol kray in the sphere of science and technology on the principles of public-private partnership.
Euro Info Centre provides information and consulting services on the goods promotion (works, services) to the European and other foreign markets for small and medium-sized businesses of the kray.
Business incubator of the Stavropol kray supports small businesses at the early stage of their activity (up to three years) carried out by providing premises by lease and services that are necessary to conduct business activities.
Chamber of Commerce and Industry of Stavropol krai helps to find business-partners, prepares business plans and renders assistance in investment projects implementation.
5. REGIONAL INDUSTRIAL TOURISM RECREATIONAL AND TECHNOLOGical PARKS
Economic policy of the Stavropol kray has a cluster orientation and stimulates the growth of investment by accelerated development zones and mechanisms of state support of investment and innovation activity. Therefore, milestones of economic development are aimed at territorial and cluster management.
Primary importance is given to the infrastructure projects on basis of public-private partnership. These are projects on the establishment of regional industrial, tourism and recreation, and technological parks.
Currently, in the Stavropol kray it was created 11 new zones of advanced economic growth: of industrial, petrochemical, agro-industrial, tourist and recreational specialization (regional industrial parks within the territory of the cities of Nevinnomyssk, Budyonnovsk, Georgievsk, Mikhaylovsk, Izobilnensky, Trunovsk, Novoaleksandrovsk, municipal districts, as well as regional industrial parks “Pharmaceuticals”, “Helios,” “Alexandrovsky” in the Stavropol kray and the regional tourism and recreation park in the resort city of Zheleznovodsk of the Stavropol kray).
Decision on establishment of regional industrial park “Kislovodsk solar power station” was made.
At the present time, there are 19 residents of regional parks with projects, total value of which 61 418.1 million rubles, intending to create more than 9211 new jobs, implementation of the projects is planned for 2012-2014.