Petrozavodsk investment passport
 
 
 

Investment activities on the territory of Petrozavodsk Municipality during 9 months if 2010

Petrozavodsk municipality Administration has been increasingly raising the priority of investment activities in the economic development of the city. The goal of investments is not only to augment tax revenues but also to secure competition and favorable investment climate that are indispensable for large-scale improvements in the area of modernizing and innovative economic development during the crisis.

During the recent years, Petrozavodsk municipality has seen annual growth of investments in the faxed capital. Thus, in 2008, the amount of investments in the fixed capital made about 5,9 billion RUR, what was by 22,9% more than in 2007.

However, due to the global financial crisis, in 2009 investments in the fixed capital were driven down to 4,9% RUR (or 83% compared to 2008). Monitoring showed that some investment projects were temporarily suspended or slowed down.

For 9 months of 2010, the amount of investments in the fixed capital was 1937,3 m RUR, what is 100,0% of the similar period in 2009.

In January — September 2010, key investments (55,8%) were made in procuring machines, equipment and vehicles (40,1% during 9 months of 2010) as well as in civil construction and reconstruction — 26,2% (36,2% during 9 months of 2010).

During 6 months of 2010, the major sources of investments in the fixed capital were proprietary money of the enterprises (28,2%) and governmental money (36,0%). Their shares for 6 months of 2010 were 8,6% and 36,8% respectively.

By types of economic activities, investments during 6 months of 2010 were made in the following areas:

  • processing industries — 20,3%:
  • transportation and communication — 13,9%;
  • transactions with real estate, rent — 22,3%;
  • state management and social security — 14,9%;
  • education — 5,7%;
  • health care — 6,0%.

Creation of new jobs was a positive effect of investment projects. According to the estimates made by Petrozavodsk Administration, over 500 jobs will be created in 2010 thanks to the implementation of significant investment projects.

In 2010, a series of projects were implemented in the field of industrial production.

Project OOO “Jagoda Karelii” (Karelian Berries) aimed at establishing new food production from fruit and berries. A new modern factory on producing food from fruit and berries will be the largest factory of its kind in Russia. The production building has already been built, internal furnishing is being done, and equipment has been imported from Italy. Start of process equipment installation is planned for November.

OOO “DOK Karelia” project was launched on building the biggest OSB-board plant in Russia, and first stage of the construction will be completed in 2012.

Production facilities of ZAO “Petrozavodskmash” are still being modernized, including the unique units specializing on equipment for the nuclear power sector. Tailor-made equipment made by Italian firm STEEL MEC was procured, installed and put into operation within the project. It is intended for electroslag hard-facing of the main circulation pipe of a nuclear plant.

OOO “Torgovii Dom „Jarmarka“ is continuing modernization of production facilities aimed at increasing the volumes and range of goods, as well as at improving the quality.

OAO “Karelskii Myasokombinat” and OAO “Petrozavodskii Khlebozavod SAMPO” are also planning to modernize their equipment.

It has been planned to build a plant for manufacturing wooden two-storied panel-beam economy class houses with the capacity for 200 thousand sq. meters of dwelling annually.

Projects are being continued on modernizing municipal utilities (heating, water, power and gas supply).

Thus, in 2009 OAO “PKS” finished the first stage of reconstructing the water treatment plant and launched the construction of the second treatment unit. The project gets financial support from the Investment Fund of the RF and budgets of the Republic of Karelia and Petrozavodsk municipality. When it is completed in 2012, the quality of the water supplied to people will meet sanitary requirements.

“Karelskii” branch of OAO “TGK No. 1” is planning to implement a series of activities on preparing for large-scale reconstruction of Petrozavodsk CHP and modernizing pipelines.

Besides, within the investment program, OAO “PKS” builds a modern modular boiler-house in Solomennoye residential area. The following works have been completed: design, connection to the network, installation of power supply network, access road construction, foundations, and cold water supply networks. The boiler house building is under construction. Equipment has been ordered and soon will be delivered to the site

By 2012, a similar modular boiler house will be built in the area of Sulazhgora brick factory.

Cleanness and development of Petrozavodsk is one of the major objectives of Petrozavodsk Administration. Four new graders were bought for the winter of 2010–2011 as well as KAMAZ for maintaining the storm water drains and absolutely new machines, 4 multifunctional Kramer tractors made in Germany. Recently, the company also procured a new “vacuum cleaner” made in Holland for collecting litter in the streets, and two more graders. Sanitary cleaning of the city is also of great significance for the city.

In 2010, PMUE “Avtospetstrans” bought 9 new waste trucks, modern machines based on Volvo for collecting waste from new-type containers for separate waste collection.

Besides new machines and equipment, “Avtospetstrans” is going to get a process line for crashing bulk waste.

This year, at the expense of the budget of Petrozavodsk municipality the road to the landfill is being maintained.

Road maintenance is important for Petrozavodsk Administration.

This year, over 160 m RUR from the city and republican budgets have been allocated for that purpose. Roads were completely renovated at 17 sites (the area renovated made over 80 sq. meters), also capital repairs were made in Syktyvkarskaya str., where the driveway was extended.

Besides, in 2010, in the 264 million RUR were allocated from the federal budget for road maintenance in the framework of the Federal project “New Roads in the Cities of Unified Russia”. 115,9 thousand square meters of asphalt will be replaced on 17 city roads and yards.

Road quality requirements set by the Administration are high, and the guarantee is minimum 7 years.

In 2011, this practice will continue, and a tender has been announced for producing design estimates for “Capital repairs of Chapaeva str. “with all approvals and audit of the project.

In June 2010, repairs were resumed on Kukkovka-Drevlyanka road. The driveway is being extended at the last 500-meter-long section of the road, and new asphalt is being laid on the last two lanes. The amount of 75 million RUR was earmarked for that purpose.

Hotel infrastructure is actively developing on the territory of the municipality. In 2010, Petrozavodsk got a new hotel “Azimut” for 21 guests in Lunacharskogo str. (IE Lopatin A. V.), and hotel “Onezhskii Zamok” for 67 guests in Fedosova str. (OOO “Zelyonii Bereg”).

“Onego Palace” hotel for 103 guests is about to be completed. It is the largest tourist infrastructure project implemented during the recent decades, and it costs over 1 billion RUR. In September, a restaurant was opened (11th floor), and in November 9, 10, 12 and 13th floors are going to be commissioned (rooms). The rest of the floors will be  ready in 2011 (during the first quarter presumably). At present, personnel are undergoing training.

A project was launched in Petrozavodsk for the construction of two new hotels:

  • on Gagarina sq. (OOO “Concern „Piter“). A three-star hotel for 400 guests.Construction planned to be finished in 2012.
  • on Kirova sq. (OOO “Garant Service”). three-star hotel for 145 guests.Construction planned to be finished in 2012.

Another trend is active investment in high-profit projects in the area of services. In 2010, one can see the increase of the number of catering facilities. In 2009, 12 restaurants and bars were opened and reconstructed with the total capacity of 1004 persons, 6 more cafes were opened in 2010. In other words, the infrastructure which can effectively serve tourist needs on the territory is developing, and the rate of development is growing.

In order to promote sports on the territory of Petrozavodsk, the City Administration implements activities aimed at building sport facilities. In 2010, a tender was announced for developing the design for a roofed skating rink in Perevalka district.Construction is planned to be started in 2011. The Administration is also planning building universal sport and health promotion centers with swimming pools in Drevlyanka and Kukkovka residential areas.

In the area of health care quality improvement, Petrozavodsk Administration allocates money for repairs in municipal facilities and for procuring new high-tech equipment. With the aim to increase accessibility of medical services for people, a building in Selyonaja str. was renovated in 2010 for opening a doctor’s office of Policlinic for adults No. 1. In 2011, a GP office will be opened in the area of Ptitsefabrika.

Private investors are also realizing projects aimed at improving health services for people. Petrozavodsk treatment and diagnostic unit named after academician S. N. Fyodorov of St. Petersburg company “Microkhirurgija Glaza” (Eye microsurgery) is  eveloping a design for building the second part of the clinic in Varkausa nab. 1-b. OOO “Tsentr Kostno-Sustavnoi Patologii” (osteoarticular clinic) is reconstructing some premises in Chaikina str. 5 to be able to offer people a wider range of services.

Trade and service sector is actively developing on the territory of Petrozavodsk municipality. ZAO “Tander” annually expands a chain of corner hops “Magnit”.Construction of trade center “Ariana” started in Internatsialistov bul.

With the aim to more fully use the investment potential of Petrozavodsk municipality, a long-term municipal target program “Development of the Investment Climate in Petrozavodsk Municipality for 2009–2011” was launched in 2009.

The package of activities of the Program is targeted to implementing priority actions for social and economic development of the city. The program encompasses monitoring of investment processes, what contributes to timely responses to changes and achievement of development priorities.