Address of Head of the Republic of Mari El Markelov L.I.
to the Legislative Assembly of the Republic of Mari El
and Members of the Government of the Republic of Mari El Titled
"Investment Climate and Investment Policy of the Republic of Mari El"
Dear Colleagues,
In recent years, the Government of the Republic of Mari El has been
devoting considerable attention to creating conditions for attracting
investments into the Republic's economy and successful implementation of
new investment initiatives in the territory if the Republic.
The main directions of development of the region are defined in the
Strategy of the long-term social and economic development of the Republic
of Mari El, approved by the Government of the Republic of Mari El on
August 31st 2007 No.214.
By key macroeconomic indicators characterizing the dynamics of social
and economic development for the period from 2001 to 2012, the Republic of
Mari El was consistently ranked
among the fastest growing regions of Privolzhskiy Federal District, including
by "index of physical volume of industrial production", the most important
indicator of industrial development.
INDUSTRIAL PRODUCTION INDEX IN 2012, %
115.6
112.3
107.1
104.5
100.2 101.5
104.1 104
Ulyanovsk Region
Saratov Region
Samara Region
Penza Region
100.5
Nizhni Novgorod Region
Chuvash Republic
Udmurt Republic
Republic of Tatarstan
Republic of Mordovia
Republic of Mari El
Republic of Bashkortostan
Privolzhskiy Federal District
Russian Federation
101.1
102.8
Orenburg Region
103.3
Kirov Region
107.1
106.1
Perm Territory
104.1
102.6
Growth rate of product output was stable, new products were mastered,
which is largely the result of technical re-equipment and modernization of
production, accumulation of experience in competitive markets.
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Changes in the growth rate of industrial production of the Republic of
Mari El, Privolzhskiy Federal District of the Russian Federation, according to
data for the period from 2001 to 2012, indicate more than two times higher
average annual growth rate of industrial production of the Republic of Mari El
(The Republic of Mari El - 109.3%, Privolzhskiy Federal District - 104.4%,
Russian Federation - 103.9%).
Stable growth of industrial production can be explained by the
outrunning investments in fixed capital. Average growth rates for the period
from 2001 to 2012 were as follows: in the Republic of Mari El - 114.8%, in
Privolzhskiy Federal District - 108.2%, in the Russian Federation - 108 5%.
Investments in fixed capital totalled 30.6 billion roubles in 2012
(110.1% compared with 2011). Foreign investments totalled 33.7 million
dollars (an increase of 5.2 times compared to 2011).
Volume of investments in the fixed capital
bn. rubles
40
30.6
26.9
35
22.3
30
25
20
7.7
15
10
1.7
5
0
2000 г.
2005 г.
2010 г.
2011 г.
2012 г.
Annual investments in fixed capital, made by enterprises and
organizations of the Republic (except the budget funds) are not less than 80%
of the total investments.
By many indicators characterizing social and economic development,
the Republic of Mari El occupies a leading position in the Russian Federation
and Privolzhskiy Federal District. This fact was confirmed by average growth
rate of gross regional product, calculated for 11-year period (from 2001 to
2011): the Republic of Mari El - 105.3%, Privolzhskiy Federal District 104.8%, Russia - 105.2%. in the Republic of Mari El - 105.3%, Privolzhskiy
Federal District - 104.8%, the Russian Federation - 105 2%.
High growth rates of social and economic indicators of the Republic are
confirmed by data per capita.
For example, the gross regional product per capita grew 9.2 times in 11
years (2000 - 2011), industrial production per capita (2000 - 2012) grew-11.6
times, volume of investment in fixed capital per capita grew 19.2 times.
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Prior to 2012, growth rates of GRP, industrial, agricultural products,
commissioning of housing per capita in the Republic of Mari El were the
highest among the regions of Privolzhskiy Federal District.
Growth rate of GRP per capita, 2011 compared with 2000, times
10.0
9.2
8.0
8.0
8.7
8.0
7.1
6.6
8.0 7.9
7.1
6.8 6.6
8.6
8.1
7.3
6.5
6.1
6.0
4.0
Ulyanovsk Region
Saratov Region
Samara Region
Penza Region
Orenburg Region
Nizhni Novgorod Region
Kirov Region
Perm Territory
Chuvash Republic
Udmurt Republic
Republic of Tatarstan
Republic of Mordovia
Republic of Mari El
Republic of Bashkortostan
Privolzhskiy Federal District
0.0
Russian Federation
2.0
By growth rate of investment in fixed capital per capita for the period
from 2000 to 2012, the Republic of Mari El is among the leaders of
Privolzhskiy Federal District.
The complex of necessary measures taken by the Government of the
Republic of Mari El, using of considerable intellectual and human capacity
allowed now to diversify the economy of the Republic, and created a
favourable investment climate and support from investors contribute to the
realization on the territory of the republic of several new projects aimed at the
modernization of production, the production of new products for the
Republic.
Currently investment projects in agriculture are successfully
implemented in the Republic. The most significant of these for the national
economy is "Construction, reconstruction and modernization of the sixth,
seventh and eighth stages of poultry production complex "Akashevskaya
Poultry Farm" with total cost of 24.5 billion roubles.
Industrial enterprises of the Republic implement the number of major
investment projects:
"Production of automotive components" - LLC Teklas, total cost of 250
mn. rubles;
"Development of production" - PJSC science and production enterprise
Tavrida Electric, total cost 373 mn. roubles;
"Expansion of production" - LLC Mariiskiy Oil Refinery, total cost 60
billion roubles;
"Technological re-equipment” - PJSC Ariada, total cost 320 mn.
roubles;
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"Modernization of production" - JSC Mariiskiy Pulp and Paper Mill,
total cost 200 mn. roubles;
"Organization of production of fuel pellets” - LLC Russian Pellet, total
cost 415.1 mn. roubles;
"Technical re-equipment" - JSC Mariiskiy Machine Building Plant",
total cost 674.1 mn. roubles and others.
The Government of the Republic of Mari El pays considerable attention
to the formation of an effective investment policy, attracting investments into
the economy of the Republic, and creation of favourable conditions for
business. An effective legal framework was created in the Republic, which
provides support and the rights of investors, according to which tax
preferences, subsidies and other government support measures are provided at
the republican level. Regional legislation is adaptively changing due to
changes in federal legislation in the sphere of investments and offers from
potential investors.
In order to implement a package of measures aimed at improving the
investment attractiveness of the Republic and protection of investors, the
Republic of Mari El has developed the Standard of government agencies of
the constituent unit of the Russian Federation to ensure a favourable
investment climate in the region.
At present, work is being done in the Republic to implement the
requirements of the Standard and active cooperation in this regard with the
Autonomous non-commercial organization "Agency for Strategic Initiatives
on Promoting New Projects" and the Ministry of Regional Development of
Russia, which performs an independent expert review, confirming
implementation of Standard's requirements in regions.
In the Republic, State support is provided in the implementation of
investment projects aimed at the technical renovation of production facilities
and manufacturing of new types of products.
For example, 15 companies that implement 18 investment projects,
which were recipients of the state support of the Government of the Republic
of Mari El in 2012, received subsidies of more than 48 million roubles.
Overall since 2001, more than 2.9 thousand new jobs were created in
investment projects that received State support from the Government of the
Republic of Mari El. 42 enterprises that implement 78 investment projects
received subsidies. The total amount of paid subsidies amounted to 280.7
million roubles. Total project cost was 7.9 billion roubles, and the amount of
attracted credit resources for the implementation of projects totalled more
than 4.5 billion roubles. Taxes paid to the consolidated budget of the Republic
of Mari El totalled 2.28 billion roubles (8.7 roubles of taxes to the republican
budget per 1 rouble of State support).
Special attention is paid to the State support of small and medium
enterprises.
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Financial support of small and medium enterprises in the Republic of
Mari El is provided within the framework of implementation of the republican
target program "Development of Small and Medium Enterprises in the
Republic of Mari El in the period from 2012 to 2020", as well as within the
framework of grant support of the Head of Republic of Mari El on
modernization of production facilities.
In 2012, 170 million roubles from the budget was allocated for these
purposes. As a result, 177 investment projects implemented by small and
medium businesses, were supported. Recipients of support created about 650
new jobs, attracted investments in fixed capital equal to 420 million roubles,
and payments to the budgets of all levels and off-budget funds totalled more
than 700 million roubles.
Institutions of supporting investment and entrepreneurial activity, as
well as small and medium-sized enterprises actively work and develop in the
Republic.
In order to support small and medium enterprises, the Chamber of
Commerce of the Republic of Mari El actively works in the Republic. Centre
for Coordination Support of Export-oriented Small and Medium enterprises
works on the basis of the Chamber, as well as Independent non-profit
organization Business Incubator of the Republic of Mari El, Republican Fund
for Supporting Small and Medium Enterprises." In Q4 2013, it is expected to
commission a new building to host the business incubator in Yoshkar-Ola
with the total area of 3 thousand square meters.
This year Fitch Ratings agency confirmed the long-term rating of our
Republic, assigned in the previous year, with a "stable" investment forecast.
Effectiveness of the work of the Government of the Republic of Mari El
on creating favourable conditions for attracting investments is also
demonstrated by the rating of investment attractiveness of Russian regions in
the period from 2010 to 2011, prepared by leading Russian rating agency
Expert RA. According to the rating results, the Republic of Mari El was
awarded the second place in the Russian Federation in the "Safe area"
category (the first three regions with minimal risk for investments).
Activities of the executive agencies of the Republic of Mari El to
ensure favourable investment climate in the Republic of Mari El are based on
the following principles:
Equality: non-discriminatory approach to all subjects of business and
investment activities within the predetermined and public system of priorities;
Involvement: participation of business and investment entities in the
preparation of decisions, affecting their interests, which are taken by the
executive agencies of the Republic of Mari El, and in assessing the
implementation of these decisions;
Transparency: mandatory publication in the media of regulatory and
legal acts, approved by the Republic of Mari El and other documents affecting
entrepreneurial activity;
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Best practices: taking into account interests of business and investment
activities in the formation of the Republican investment policy, introduction
of best practices of interaction of executive agencies with business and
investment entities on improvement of the administrative procedures.
The strategic objective of the investment policy of the Republic of Mari
El is development of priority sectors, improving basic conditions for attracting
investments, creating development institution, attraction of investments to the
economy, including by attracting federal funding and private investments,
human capital development, small and medium-sized enterprises, creation of
communication platform for interaction between business and the government,
and other activities.
At the end of 2013, it is planned to officially launch investor support
systems and systems of supporting investment projects using "one window"
principle between the government agencies of the Republic, local selfgovernment bodies and investors, which provides a balance of interests of all
participants in the investment process.
In the sphere of institutional environment development and improving
effectiveness of government agencies of the Republic, it is provided to
optimize terms of providing land for investment projects in accordance with
effective legislation, as well as other conciliation and licensing procedures in
the implementation of projects.
Significant work is planned to be done on improving the
competitiveness of industry, agriculture, small and medium enterprises of the
Republic, including in conditions of accession of Russia to the WTO, as well
as on creation and development of modern transport, engineering and social
infrastructure.
It is planned not only to increase the volume of investments, but also to
change quality of investments aimed at diversification of the regional
economy, development of high-tech industries, increasing the competitiveness
of produced goods and services, as well as the further development of the
infrastructure necessary for the successful implementation of projects in the
territory of the Republic.
Investments in construction infrastructure must facilitate balanced
territorial development of municipal entities of the Republic taking into
account development of already formed clusters (production of electrical
equipment, commercial refrigeration equipment, woodworking, etc.), as well
clusters which are created at the moment (production of automotive
components). Given the specialization of municipal entities of the Republic,
development of the economic potential of the territories is also provided by
active development of agricultural holdings in the Republic and increasing
volume of cultivation and processing of crops.
In order to place new enterprises in the territory of the Republic it is
provided to form prospective development areas and industrial parks,
including the Southern Industrial Area of the city of Yoshkar-Ola.
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To solve the problem of transport accessibility of the Southern
Industrial Area, design and estimate documentation of the transport highway
Kirova St. - Stroiteley St., with passing over the river Malaya Kokshaga will
be prepared.
The development of this industrial area is planned on conditions of the
public-private partnership. From the republican and local budgets, as well
from attracted funds, it is planned to create and develop on this territory the
engineering infrastructure, connecting utility networks and roads directly to
the available land plots, intended for placement of new enterprises, and
construction of industrial facilities at the expense of private investors.
It is planned to provide to prospective investors land plots prepared for
construction of new industrial facilities with ready utility networks, which
should significantly reduce business costs associated with the implementation
of projects in the Republic, as well as reduce time of their construction and
agreement of permits. After completion of construction of enterprises the land
plots under buildings and other lands belonging to the sites will be provided
to investors for ownership.
Preparation of priority investment projects ("development points") will
be continued with division to the already implemented projects which require
monitoring of their implementation, project which are in the stage of active
implementation, and projects planned for implementation.
The third group of projects will be given maximum attention. Currently
it is necessary to know the needs of investors in the creation and development
of transport, engineering and social infrastructure and synchronize their
creation with plans of investors and the long-term plan to create the necessary
infrastructure for investors, formed annually since 2013.
The task of attracting investments into the economy of the Republic
requires development in addition to promising investment areas of YoshkarOla city, all municipal entities of the Republic.
In this regard, systematic work to attract investors and preparation of
investment sites will be carried out in the municipal entities of the Republic.
Municipal entities are responsible for forming land plots and preparation of
design and estimate documentation, necessary for the development of
investment areas.
In order to attract investments by municipal entities of the Republic, it
is proposed to create special working groups, which tasks will include
coordinating activities on implementation of the investment policy and
investment projects in their territory. Co-chairs of these groups will be
representatives of the Government of the Republic of Mari El, assigned to
municipal entities, or heads of government agencies of the Republic of Mari
El and heads of administrations of municipal entities of the Republic.
Their function will include ensuring creation of favourable entrepreneurial
climate in the municipal entity, as well as efforts to attract investors and
support of investment projects in all stages of their implementation.
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Measures of the road map to encourage local governments to attract
investment and building tax capacity are developed.
Government support will be continued for enterprises implementing
promising investment projects in the territory of the Republic, aimed at the
modernization of production, mastering and manufacturing new products, and
supporting small and medium enterprises, including peasant economies and
farms within the framework of the program to support small businesses and
grants of the Head of the Republic of Mari El to modernize production
facilities. In addition to that, cooperating with interested Russian and foreign
companies, banks and insurance companies will be continued on cooperation
and attracting investments in the economy of the Republic of Mari El.
It is planned to pay considerable attention to the development of
agricultural enterprises, including those working in the sphere of field of
poultry, meat and dairy production, as well as growing vegetables.
Development of agricultural holdings will be continued.
"Akashevskaya poultry farm" LLC in 2014 - 2015 will continue
implementation of the investment project on construction of the first sow farm
of level I and II in Privolzhskiy Federal District for breeding meat chicken
with capacity of 158.7 million hatching eggs per year.
In the course of implementation of the project, production facilities will
be built in Sernur, Soviet, Morki and Noviy Toryal districts, which will give a
new push to development of infrastructure of the areas of the Republic of
Mari El.
The total volume of investments for the project of Akashevskaya
poultry farm LLC (stages from 1 to 8) will be 32.9 billion roubles. As a result,
production of meat will be 225.4 thousand tons in live weight, and over 3,000
jobs will be created.
Promotion of the region is one of the priority tasks of the Government
of the Republic of Mari El. In this connection, it is planned to hold a series of
events on the territory of the Republic aimed at creation of a positive
investment image of the Republic of Mari El, branding of products produced
in the Republic, facilitating implementation of investment initiatives and the
promotion of products and services of enterprises and organizations of the
Republic, as well as positioning of the Republic as a promising partner and an
open region favourable for investments and comfortable living.
In this regard, it is planned to support foreign economic activity of the
enterprises of the Republic, placement of publications and positive
information about the Republic in the Russian and foreign media, holding of
public events on investment activity and a number of other activities in the
territory if the Republic.
Republic of Mari El has significant tourism and recreational potential.
Natural and recreational resources, objects of cultural and historical heritage
are located in the territory of the Republic, and various cultural, social and
sports events, including with participation of foreign representatives, are held
there.
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In 2013, the Tourism Council of the Republic of Mari El started to
work. Its tasks include intensifying activities of formation of internal tourism
product together with the interested organizations, development of tourism
infrastructure, advertising and information support of tourist activity of the
Republic, creation of the image of the Republic as a friendly territory for
inbound and domestic tourism, as well as integration of the Republic of Mari
El in the Russian and international tourist markets.
The following are main activities planned for implementation in the
Republic under the program for the development of tourism:
- Creating a modern regulatory framework and the foundations of the
system of State regulation of the tourism industry;
- Development of tourism infrastructure;
- Information and analytical support of the development of tourism;
- Promotion of the Republic of Mari El as a tourism destination in
domestic and international tourism markets;
- Scientific and staffing assistance of the tourism sector.
In the area of human capital development, the implementation of
effective mechanisms will be continued, aimed at training and retraining in
the professions, corresponding to the needs of the Republic's economy and
investors. In this regard, the program of complex development of vocational
education in the Republic of Mari El by 2020 was developed and approved by
the Republican Coordinating Council for training skilled workers and
professional, as well as the forecast of needs of the regional labour market in
specialists of various professions (for 7 years).
The Republic of Mari El has already become the territory of effective
interaction between business, government and society, as well as international
cooperation.
Adopted efficient legislation of the Republic of Mari El in the sphere of
investor support, implemented programs and support mechanisms of investors
allow implementation of economic and social projects with high efficiency,
maintaining social and economic stability in the region.
Investors that implement projects in the territory of the Republic of
Mari El, are guaranteed for the full protection of investments, minimal risks in
the implementation of projects and assistance in the implementation of
initiatives at all levels of government.
As one of the tools for the implementation of investment projects in the
country, as well as projects of complex development of territories in the
Republic, it is planned to apply the principle of public-private partnership
involving off-budget funding from private investors and development
institutions.
The main directions and priorities of the investment policy of the
Republic of Mari El are as following:
1) Formation of areas of prospective development;
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2) Attracting investors by each municipal entity of the Republic of Mari
El, preparation of investment sites suitable for placement of industrial,
agricultural and other purposes facilities;
3) Development of the investment infrastructure (investment sites,
industrial parks of introduction and manufacturing types, business incubators,
collective access centres, representative offices of credit and insurance
companies, etc.) and its individual components in each municipal entity of the
Republic;
4) Creation and development of "priority development" clusters and
territories of industrial and production type in municipal entities with high
production development potential, as well as tourism and recreation clusters;
5) Increased volume of construction of engineering and transport
infrastructure necessary for the implementation of investment projects, as well
as construction of housing;
6) Employee training in accordance with the needs of the economy and
the needs of potential investors;
7) State support by the Government of the Republic of Mari El of
promising investment projects, including small and medium enterprises;
8) Positioning the Republic of Mari El as an investment-attractive
region and branding of the Republic, as well as products and services
produced (provided) by the enterprises of the Republic;
9) Creation of the registry of promising investment projects of the
Republic of Mari El (points of economic growth), monitoring of the progress
of these projects, and assisting in the implementation of these projects by the
Government of the Republic of Mari El if necessary;
10) Development of domestic tourism, as well as tourism and
recreational infrastructure;
11) Filling of the information space with information on investment
activity;
12) Establishing a specialized organization on attracting investments
and investor relations;
13) Support of investment projects on the territory of the Republic of
Mari El on the principle of the "one window";
14) Implementation of the investment strategy of the Republic of Mari
El by 2020.
Key measures to be implemented in 2014, are as follows:
1) Achieving growth rate of investments in fixed capital not less than
107.4% compared with 2013 in comparable prices (40.8 billion roubles in
absolute terms);
2) Creation not less than three thousand jobs through the
implementation of investment projects;
3) Launching of implementation on the territory of the Republic at least
10 new major investment projects totalling at least 500 million roubles;
4) Creation of the registry of promising investment projects of the
Republic of Mari El, planned for implementation in 2014;
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5) Establishing an industrial park in the Southern industrial area of
Yoshkar-Ola city;
6) Administrative support of projects in the "single window" mode.
The main directions for attracting investments in the Republic of Mari
El are based on existing competitive advantages of the country, as well as
orientation on modernization and development of traditional and new types of
economic activities.
The implementation of the above objectives will ensure implementation of
the strategy of social and economic development of the Republic.
______________