MURMANSK, May 16. /TASS/. Two new residents with projects worth 58.5 million rubles ($950,000) joined the Kirovsk advance-development territory in the Murmansk Region, the city administration’s press service said.
"The advance-development territory in Kirovsk was organized about a year ago," the press service quoted Kirovsk’s Head of Administration Sergey Svinin as saying. "In 2017, three companies began working there, and another two residents have joined the territory in 2018."
Service and explosives
The new residents are companies Rolt Nord Service and UMPTEK, which implement the ski cluster projects. Their investments would make 58.54 million rubles. The projects will offer 88 new jobs.
The earlier residents are at different stages of implementing their investment projects. One of the companies, called Kompleks, working on complex utilization of ammunition, has prepared necessary paperwork. Another company, Reman, is still working on paperwork for a service center. A resident Nitro Sibir Zapolyarye has finished building a facility, where it will produce emulsion explosives - the company has practically reached the projected capacity.
Benefits for residents
Kirovsk’s official told earlier, the territory’s residents enjoy certain advantages. First of all, tax benefits. They have to pay much lower social and income taxes, may be not liable for land and property taxes.
At the same time, the residents, seeking preferences, have to meet certain conditions. For example, investments in a project should be not less than 5 million rubles ($80,800) during the first year and should offer at least 20 new jobs. Another condition is the project should be absolutely new. However, the official said, many businesses would want to become residents, and thus the city would initiate making changes to the list of requirements.
The general concept for Kirovsk’s development consists of two directions - a tourist cluster and a service center for mining equipment.
Mountains are waiting for tourists
According to the regional government, the Khibiny tourist-recreational cluster is the biggest tourist investment project in the Murmansk Region. It is a public-private partnership. Private money is invested in recreational and cultural facilities, while the budget’s investments are in infrastructures.
The project has received the federal support. Private investments will make 75%, and three-quarters of the remaining sum will be allocated from the federal budget and the rest - from the regional budget.
The opening and key project in making the Khibiny tourist-recreational cluster was the ski center in Kirovsk, where investments in the cableway are more than 500 million rubles ($8 million). The cableway serves 2,400 people an hour.
The ski complex is still under construction. Soon, there will appear an ice arena, a leisure center and a spa hotel.
Service center
The developing mining industrial cluster in Kirovsk will have a big service center for the equipment, which the region’s mining companies - more than ten - are using. As the mining companies in the Murmansk Region use similar equipment, and the production is growing, the market of equipment services is rather stable. Besides, Kirovsk is situation in the Kola Peninsula’s center, the city’s labor and energy costs are attractive for a center of the kind.
The project will also attract small and medium businesses to production of equipment, technologies and services for the mining industry. The project thus will localize the mining equipment’s service, making the process more effective.