Statistics of attracting investments (01.2009-06.2009)

Under modern conditions the key factor of economic and social development of Petrozavodsk is attraction of investments. The key goal of the City Administration is to build up investment attraction of the city, its industries and territories, what will allow increasing amounts of investments aimed at achieving planned economic and social conditions, such as economic growth, improvement of infrastructure, creation of new jobs, increase of people’s income and achieving norms established in national projects.

Investment policy of the Administration of the district rests upon the following principles:

• Support to investment activities on the territory of the district;
• 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;
• 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;
• Control over proper use of resources from the city budget and non-budget sources.

During the recent years, there has been annual increment of investments in the capital assets (2006–2008). Thus, in 2008 the amount of investments made about 5,9 billion RUR, what is 22,9% more than in 2007.

However, due to the global financial crisis, there has been some decrease of investments in capital assets in 2009 compared to the similar period in 2008.

In January — June 2009, 1280,9 m RUR of investments were made in capital assets for developing the economy and social sector, what is 64,6% of the amount of January — June 2008. Petrozavodsk gets 26,6% of the total amount of investments in capital assets in the republic.

Monitoring of investment activities on the territory of the municipality showed that implementation of some investment projects is either suspended or slowed down compared to initial planning. The key reasons for such a situation are the lack of proprietary resources for different projects among the investors and more stringent conditions for obtaining loans imposed by banks.

The profile of investments by investment types vividly demonstrates the deficit of proprietary resources.By the end of the first 6 months of 2009, the share of own resources of enterprises in the total amount of investments made 26,7%, given that in 2008 that figure was 41%.

Profile of investments by the sources of financing

Most investments in capital assets are made in buildings (besides dwelling houses) and constructions — 40,0% and machines, equipment, and transport — 38,2%.

Most investments in capital assets in January — June 2009 were made in transactions with real estate, rent and services (22,6% of the total amount of investments in the municipality, state management, military defense, compulsory social services (19,3%) and production industries (16,1%).

Compared to January — June 2008, the amount of investments in extracting mineral deposits grew by 94,0 times, hotels and restaurants (by 11,0 times), production industries (by 2,1 times), agriculture, hunting and forestry (by 24%), and provision of other municipal, social and personal services (by 4,1%).

In comparison with January — June 2008, investments in capital assets in health care and social services decreased (by 92,1%), as well as in construction (by 90,3%), production and distribution of electricity, gas and water (by 82,2%), wholesale and retail trade, repairs of automobiles, motorbikes, electric appliances and personal belongings (by 78,6%), financial operations (by 74,3%), fishing and fish farming (by 59,5%), transactions with real estate, rent and service provision (by 53,4%), education (by 43,7%), transport and communication (by 17,9%), state management, military defense, and compulsory social services (by 11,9%).

As of 01.07.09, the targeted investment program of Petrozavodsk municipal district continued financing the reconstruction of the city motorway Kukkovka — Drevlyanka for the sum of 56,14 million RUR. In total, the targeted investment program of Petrozavodsk municipal district financed construction projects for the sum of 60,38 million RUR (29,2% of the yearly amount) in the first 6 months of 2009.

City motorways are being repaired at the expense of the money allocated from the republican and municipal budgets.

Administration of the municipality pays special attention to the reconstruction of water and wastewater plants. An agreement was signed with the Ministry of Regional Development of the Russian Federation on getting resources from the federal budget in the amount of 308,0 RUR for the reconstruction of water treatment plant. Due to the high cost of projects on the reconstruction of water and wastewater plants (2 billion RUR), efforts are made to attract international financial and credit organizations.

During the first 6 months of 2009, OAO TGK No. 1 continued the reconstruction of Petrozavodsk combined heating plant and completed the reconstruction of a section of heating mains in the area of Komsomolskii Avenue.

A project has been developed for the investment program of the branch Karelskii OAO TGK-1 for the development of heating system in Petrozavodsk for 2008–2015 with the total amount of investments over 1500,0 million RUR. Implementation of the activities included in the program will allow almost complete solution of the issue of heating in the municipality.

The issue of gasification of the municipality is being solved in the framework of the program Gasification of Regions of Russia by OAO Gasprom for 2008–2010. The program includes construction of a distribution gas pipeline in the area of Sulazhgora brick works. A layout is being developed for gas distribution networks for private homes in the area of Universitetskaya str.