RDF PROGRESS REPORT HEARING AT THE COMMITTEE MEETING OF THE REGIONAL PARLIAMENT

On April 12, the Regional Development Fund presented its progress report on its activities in 2017-2018 at a hearing organized by the Committee on Economic Policy of the People’s Khural (Parliament) of Buryatia in the Small Conference Room of the People’s Khural.

Boris Dymbrylov, RDF’s General Director, noted: “In 2018, the Fund successfully achieved all the planned targets. Moreover, every year we are systematically raising the bar twice as high on our main indicator — the volume of actual investment brought to the region”.

The main driver for reaching the targets was a meticulous search and selection of investors with the main criteria being the economic viability of the proposed projects and the analysis of financial capabilities of the applicants.

RDF is currently supporting 30 projects with the total investment of about 44 billion rubles (over 700 million USD). The Fund helped the Gusinoozersky Greenhouse Complex successfully pass the state expert evaluation and environmental assessment for its project involving the construction of a greenhouse complex in Gusinoozersk. The company has already received a permit to launch the construction. With Buryatia joining the Far Eastern Federal District, RDF is also helping the investor prepare an application to the Corporation for the Development of the Far East to receive federal funds to build a substation (220/10 kV) and a road.

The issue of converting agricultural lands to the category of industrial lands has been resolved successfully for Druza, LLC, which implements a project to build and operate the Egita fluorspar mine and mill in Eravna District. RDF jointly with the Forestry Agency of Buryatia helped the investor get forest lots to build the mine’s facilities. The Fund also helped resolve the issue of an abandoned heating pipeline and a quarry and remove them from the cadaster register by decision of the Eravna District Court.

RDF helped another investor planning to build a Leroy Merlin home improvement store resolve the issue with the federal lands leased by the Russian Railroad Company. In order to do it the Fund worked with the Federal Property Management Agency and its regional offices in Ulan-Ude and Irkutsk.

In addition to priority areas, RDF is constantly searching for new fields and investment niches. Among these are the creation of a manufacturing cluster to produce construction materials, a confectionery plant and a tea-packing factory, an industrial park including a pasta-making factory, a flour milling plant, a fodder plant, and a distillery, public-private partnerships, and concessions. New areas within the agro-industrial complex include fodder production, fish farming, cultivation of medicinal plants, berry farming, apiculture, and goat farms. RDF has already developed financial models and selected land lots for investment projects in these areas.

At the end of 2018, RDF was the first in Buryatia to organize and successfully hold the Investor Day, which garnered a lot of interest from among its participants and stakeholders. It has already brought some initial results — a South Korean company GEO Group has been selected to become a resident company in the Baikal Haven Special Economic Zone.

Another success story — a Moscow-based investor who visited Buryatia for the first time on the Investor Day became interested in the construction of a 4-star hotel with thermal spas on Lake Baikal.

Starting January 1, 2019, RDF is supporting projects with the total investment exceeding 3 million rubles (50,000 USD). It plans to work extensively with municipalities, regional development organizations, and business associations.