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Single-Industry cities and PSEDA

Single-Industry cities

The Project office for Single-Industry Cities Development was established in accordance with the Decree by the Government of the Republic of Bashkortostan. The same document regulates the structure of the office.
The purpose of the Project Office is design and control of the project activities aimed at creating favorable conditions for investment attraction, acceleration of the social and economic development as well as ensuring comfortable environment for the residents of the single-industry municipal entities of the Republic of Bashkortostan.

The Project office was organized to provide implementation of the projects for strategic development area of “Single-Industry cities” as a part of project-oriented management system integration in the Republic of Bashkortostan.

Note:

In accordance with the minutes of the meeting of the Presidium of the Council under the President of the Russian Federation on Strategic Development and Priority Projects from the 13th of July, 2016, the “Single-Industry cities” direction is included in the list of the main areas of strategic development of the Russian Federation until 2018 and for the period until 2025 to form a pilot set of priority projects and programs.

The aim of single-industry cities modernization is to create new production complexes, attract investment, improve the quality of life and create new jobs. To achieve such results by using different mechanisms of state support that are stated in the following document -  “General list of the of the Single-Industry support measures”.

The List was developed by the Ministry for Economic Development of the Russian Federation in collaboration with the Ministry for Industry and Trade of the Russian Federation, Ministry for Labor of the Russian Federation, task group for the Single-Industry cities Modernization attached to the Government Commission on Economic Development and Integration, Single-Industry Cities Development Fund, Agency for Strategic initiatives, Industry Development Fund, Housing and Utility sector Fund, several agencies, state-owned banks and public organizations.

PSEDA

In accordance with the Federal Act №473-FZ “On the Priority Social and Economic Development Areas of the Russian Federation” there is a special legal framework for business developing on the territory of the PSEDAs that provides tax and other preferences.

The Government of the Russian Federation includes the cities of Belebey, Kumertau, Blagoveshchensk, Neftekamsk, Beloretsk in the list of territories of advanced social and economic development.

Currently, in the Republic of Bashkortostan, work is being carried out to obtain the status of PSEDA by the single-industry towns of Uchaly.

Support measures from the non-commercial organization “Singe-Industry cities development fund”

  • financing the infrastructure objects, necessary for new investment projects implementation, up to 95% at the fund’s expense
  • the Fund participates in the investment project implementation and assists in the investment project preparation: shareholding in the authorized capital or a loan from 100 million rubles up to 1 billion at the 5% rate for a period up to 8 years.
  • building and education of the group of managers for Single-Industry cities development projects
  • implementation of Project office functions by appointing a development line manager for each single-industry city

The procedure of co-financing of the construction of the infrastructure objects by the Fund

  • sending the information on the project and the infrastructure objects requirements to the Working group on the Modernization of the Single-Industry Cities attached to the Governmental Commission for the Economic Development and Integration (hereinafter – the Working group)
  • obtaining of the positive decision from the Working group on the opportunity of cooperation with the Fund (on financial support to the Single-Industry City)
  • concluding the General Cooperation Agreement with the Single-Industry Cities Development Fund
  • preparing of the documents for co-financing of the expenses of the Republic of the Bashkortostan and the municipal entity for infrastructure objects construction (hereinafter - Application), including establishing of a Working group and obtaining of the Governmental approval of the activities schedule, necessary for the Application preparation