Russian Government Approves Ulyanovsk Region's Application for Construction of Production Infrastructure in Zavolzhye Industrial Park and PSEZ “Ulyanovsk”
The region will receive a loan of 2.54 billion rubles. Deputy Prime Minister Marat Khusnullin announced this decision at a meeting of the Presidium of the Government Commission for Regional Development in the Russian Federation on 7 October.
He said, “The Ulyanovsk region's application has been approved; it involves construction of industrial parks, which is international practice. Such parks have significant economic potential and create additional jobs. As a result, they contribute significantly to the region's economic development.”
The project involves construction of production facilities with a total area of 47.9 thousand square meters in Zavolzhye Industrial Park and Port Special Economic Zone for high-tech enterprises. According to the Ulyanovsk Region Development Corporation, private investments into the projects will total 2.7 billion rubles. More than 1200 new high productivity jobs will be created for residents of the region.
“We seek to reduce investors' capital expenditures during the initial phase of the project. Most enterprises are placed in well-prepared buildings that have all necessary infrastructure. People are cautious about capital investments, but are also ready to expand their production facilities. They have markets and demand for their products. The investors come to the region, install equipment, hire personnel, start working. Later on, when they realize that there are no risks left, they begin to build their own enterprises,” explained Aleksey Russkikh, Governor of Ulyanovsk Region.
The Governor also added that the region would continue using this mechanism and was planning to apply for an infrastructure loan to create the Volga's embankment in Ulyanovsk. This will be done as soon as all necessary arrangements are completed, including bank stabilization.
In addition, the Ministry of Construction and Architecture of Ulyanovsk Region has already sent an application for a loan of 1.2 billion rubles to develop transport infrastructure in the South-West microdistrict. The document is pending review.
As a reference:
Infrastructure public budget loans are issued at 3% interest for a period of 15 years. All registered projects go through expert assessment at the federal level.