Investment activities on the territory of Petrozavodsk during 9 months of 2009

Under the current conditions the key factor for the economic and social development of Petrozavodsk is attraction of investments. The key goal of the City Administration is to secure investment attractiveness of the area, enhance the infrastructure, create new jobs and increase the income of people.

The investment policy of Petrozavodsk Administration rests upon the following principles:

• Support to investment activities on the territory;
• Securing equal rights for all investors for getting support from the municipality in investment activities;
• Use of budget resources for financing projects aimed at the development of the infrastructure of the city;
• Support in the format of municipal guarantees for the implementation of investment projects in compliance with the priorities of the city development;
• Information transparency and publicity in making decisions on implementing investment projects;
• Simplifying procedures for supporting investment activities on the territory of Petrozavodsk including selection of land parcels for construction.

Implementation of those principles has contributed to annual increment of investments in capital assets. In the end of 2008, the amount of investments in capital assets stood at 5,9 billion RUR, what is 22,9% more than in 2007.

 

Dinamics of investments into capital assets (billion RUR)

 

However, due to the global financial crisis, there is some decrease of investments in capital assets in 2009 compared to the similar period in 2008. Thus, in 9 months the amount of investments made 66,9% compared to the similar period in 2008 (2167,5 m RUR, what makes 29,4% of the total volume of investments in capital assets in the republic).

Most investments in capital assets came in transactions with real estate, rent and services (25,2% of the total amount of investments), generation and distribution of electricity, gas and water (13,5%) and processing industry (12,5%).

 

Investment structure by sources of financing (%)

Compared to the similar period of 2008, the share of budget resources increased by 16 percent in 2009 (36,8%). This money was used for implementing a series of municipal social and infrastructure projects.

As much as 69,6 million RUR were spent for designing and building different facilities listed in the targeted investment program.

The republican targeted investment program financed construction and reconstruction of facilities located on the territory of Petrozavodsk in the sum of 11,6 million RUR, and 207,7 million RUR arrived from the federal budget for the same purpose.

For the intensive development of the territory it is important to implement projects aimed at comfortable environment for the residents what implies the development of the social sector (health care, education and sports).

In August 2009, Petrozavodsk satellite of St. Petersburg branch of Eye Microsurgery clinic named after S. N. Fyodorov completed the reconstruction of the 1 st floor of the building in Varkausa str. 16.

At present, design estimates are being evaluated by state authorities for the construction of a new perinatal center that was developed in 2009 at the expense of the budget of Petrozavodsk.

Reconstruction of Yunost stadium continued in 2009. A skate-park was constructed with the money from a charitable fund Novoye Pokoleniye, and a sport ground was built with artificial turf. Design documents were prepared for the construction of an extension to the Boxing Center (total cost 106,6 m RUR) and construction of a sport center in the area of the flood plain of the Neglinka River (total cost 348,0 m RUR).

Balanced development of each and every sphere of life in the city is indispensable for its successful overall development, and power, heating, gas and water supply are second to none in this respect. At present, large investment projects and programs are under implementation for this purpose, and they secure engineering resources for the city.

Electricity deficit has been almost covered thanks to investment programs of Karelskii branch of TGK-1, Karelenergo branch of OAO MRSK Severo-Zapad, and heating is being supplied to the area.

The issue of gas supply to the region is being solved in the framework of the program Gas Supply to the Regions of Russia by OAO Gasprom for 2008–2010.

The project Clear Water is of great importance. Its implementation will not only solve the problem of providing people with high-quality drinking water, but it will also allow increasing the capacity of water supply and waste water management.

In 2009, resources were attracted from the federal budget in the amount of 303,8 million RUR for the reconstruction of water treatment plant, and in 2010–2012 the investments in this project from the federation will total to 237,6 million RUR, and 69,9 million RUR more will be provided from the budget of the Republic of Karelia.

For further development of the investment potential of the territory, Petrozavodsk City Administration has developed a targeted program Development of Investment Climate of the City of Petrozavodsk for 2009–2011, which defines actions of Petrozavodsk City Administration and participants of investment activities aimed at establishing measures and rules — unified and clear for all — for increasing investment attractiveness of the city and for building up conditions for developing business and infrastructure of the city.