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Two new plants to be built in Polar advance-development territories

The project swill attract about $1.5 million in 2017-2018 and will offer about 35 new jobs

MURMANSK, April 13. /TASS/. Two new industrial facilities will be organized in the Murmansk region’s mono-industrial city Kirovsk after it was granted the status of an advance-development territory, the city’s head of the administration Sergei Svinin told the region’s governor.

"The facility for production of emulsion explosive components of the Sibirit type - Karelvzryvprom - is now already at the stage of construction in Koashva," the municipal official said. "And the advance-development territory’s another resident - KAMSS North-West - plans to organize the Kirovsk Mechanical Works plant."

Investments and jobs

The project on explosive components will attract investments of 90 million rubles (about $1.5 million) in 2017-2018 and will offer about 35 new jobs. The investor expects to receive the status of the advance-development territory’s resident, head of the city administration said.

The Kirov mechanical plant will service engines for equipment, used at enterprises working in the Murmansk region and in Russia’s North-West. The project is due to begin this year.

The Murmansk region’s Governor Marina Kovtun said during the meeting, the parameters, offered by the status of an advance-development territory, give big opportunities to attract to the region a good pool of investors. "The start was given, you have taken the challenge, and, I am sure, with support from the Murmansk region’s government and with support of the main industrial facility in the city we shall see great results," the governor said.

Preferences for residents

Earlier, the municipal official told TASS the status of the advance-development territory means quite a number of advantages to the residents. First of all - in fewer mandatory payments. For them by several times less become social payments, the income tax, and land and property taxes may be cancelled fully.

At the same time, the residents, hoping to enjoy these preferences, on their side are to meet certain requirements. For example, investments in a project should be not less than five million rubles during the first year (about $87,000) and the project should offer at least 20 new jobs. Another condition is the project should not be continuing, it should be absolutely new. However, the municipal head continued, some of the working businesses are interested in becoming residents, thus the city wants to initiate a respective change to the list of requirements, so that more businesses could become the residents.

Mountains and equipment

The general concept of Kirovsk’s development contains two directions - organization of a tourist-recreational cluster and a service center for mining equipment. The regional government told TASS the Khibiny tourist-recreational cluster is the Murmansk region’s biggest investment project in tourism. It is a public-private partnership project, where private investments are used for development of the recreational and cultural facilities, and the money from budgets is used for construction of required infrastructures.

The project has received the federal support. Private investments make 75%, and three-quarters of the remaining 25% will be financed from the federal budget, and the rest - from the regional budget.

Development of the mountain skiing center in Kirovsk is the starting and main project in organization of the Khibiny tourist-recreational cluster. An aerial cableway, connecting two slides of the Aikuaivenchorr Mountain was built in 2014. The total investment in the project is more than 500 million rubles (about $8.7 million). The system was made in Switzerland - it has 36 cabins and 36 chairs. The aerial cableway serves 2,400 people an hour.

Development of the mining industrial cluster in Kirovsk means organization in the city of a big center for repairing and servicing equipment used by the region’s mining companies - they are more than a dozen there. As the mining companies in the Murmansk region use similar mining equipment and since production is growing in the region, experts say about a stable market for selling and servicing mining equipment.

At the same time, the city has an advantageous geographic position: it is in the center of the Kola Peninsula, and the attractive cost of labor resource and prices for electric energy make organization of this center more than reasonable here. The planned amount of investments is about 300 million rubles (about $5.2 million).