View
213
Download
0
Category
Tags:
Preview:
Citation preview
Region at Glance
Region at Glance
0 – Moscow-3 – GMT
Time difference:
3.35 mln. peoplePopulation:
Nizhny NovgorodCapital of the region andPrivolzhsky federal district(14 regions)
76 600 sq. km. Area:
Geographical position: Centre of the European part of RussiaDistance from Moscow – 400 km
RUSSIA
MoscowNizhny Novgorod Region
UNESCO included the city of Nizhny Novgorod in the list of 100 cities of the world’s historical and cultural heritage
Automotive industry
IT
Petro-chemical industry
FMCG production and distribution
Science and education
Strategic Priorities
Regional Development Strategy up to 2020
Competitive Advantages
Unique geographical position
Well-qualified human resources
Manufacture skills and traditions
Centre of research and development
Comfortable business environment
Regional investment policy
Economy in Figures 2009 vs.2004GRP growth rate:
Foreign trade turnover growth:
Foreign investment growth:
219,2%
224,6%
327,9%
Components of GRP
Structure of Industry
1,5%
14,6%
19%
54,1%
63,1%
98%
0 10 20 30 40 50 60 70 80 90 100
Tempered glass
Autobuses
Commercial lorries
Steel tubes
Newsprintpaper
Passenger cars
Region Share in Russian’s Output
Foreign Investors FIATSeverstal
Freudenberg
OMK
LiebherrProcter&Gambl
eKnauf
DanfossLanxess
A.RaymondA.S.Creation
BranoCIEB
Saint-GobainIngersol-Rand
Intel
RettenmaierLugas
Saint-Gobain, Stora Enso
SolvayBASFSiburLukoilValeo
IntelCoca ColaHeinekenOndulineKnorr-BremseStadaBaselGAZ
Asahi GroupEurope FoodsSchottCaterpillarTrosifolBericap
Competitive Advantages
NIZHNYNOVGOROD
Russia’s CrossroadCROSSROAD OF INTERNATIONAL TRANSPORTATIONCORRIDORS EU TEN №2 & “NORTH – SOUTH”
MOSCOWMINSK
WARSAWBERLIN
VLADIVOSTOK
EKATERINBURG
TEGERAN
HELSINKI
ST.PETERSBURG
Transport Infrastructure
More than 12 thousand km of highways with the density 5 times higher than the
average in Russia1300 km of railroad with the triple density as compared with the Russia’s
averageNizhny Novgorod – Moscow – Saint-Petersburg via “Sapsan”Federal logistic centre (1 out of 11) with container facilities by Russian
Railways (RZD) up to 2014
River ports and about 900 km of water waysWater connection with the Baltic, White, Azov, Black, Caspian Sees
International airport to be reconstructed up to 20163 hours duration regular flight “Nizhny Novgorod – Frankfurt/Main
(Germany)”– 5 times per week
Largest Consumer Market in Russia
508184,3Within 1000 km zone
244143Within 500 km zone
Saint – Petersburg
MoscowNizhny
NovgorodDistance
Number of inhabitants, mln.
Access to OEMs and Autocomponents’ Market
Nizhny Novgorod
Level of unemployment
14,3 13,311,1
14,1
36
0,79 0,74 0,61 0,79 1,98
0
5
10
15
20
25
30
35
40
2005 2006 2007 2008 2009
Number of unemployed, thos Level of unemployment, %
Education, R&D and Employment
18 higher schools and universities 99 trade and polytechnic collages 190 thousand of students in 2008/2009 228 foreign students in 2008/2009 Primary, secondary and higher education for foreign citizens
First Intel division in Eastern Europe was founded in Nizhny Novgorod
About 100 scientific, educational, R&D institutions and 50 thousand people engaged
Strategic research institutions: Federal Nuclear Centre, Research Institution of Measuring Systems, Institution of Applied Physics of the Russian Academy of Science, Research Institution of Radio Engineering
Investment InfrastructureInvestment council headed by the Governor of the Nizhny Novgorod Region: - Includes representatives of controlling, supervising and regulating authorities- Gives «green light» to an investment project- Determines measures of state support – priority status- Solves problems related to a project implementation
Ministry of investment policy:- Supports investors implementing investment projects in the region inlc. land site search- Gathers permissive documents - Manages activities of the Investment Council and Board of Investors of the Nizhny Novgorod
RegionBoard of Investors headed by the Governor of the Nizhny Novgorod Region : - Thematic forum for discussion with the Governor on investment projects’ implementation problems
Legislation & ProceduresFederal law:Federal law of July 9, 1999 No.160-FZ: “Foreign investment in the Russia Federation.” Nizhny Novgorod region investment law: Regional law of December 31, 2004 No180-Z: “State support for investment activity in Nizhny Novgorod region.”
Measures of State Support
-13,5%2,5%16%Incentive rate
1,5%--1,5%Land tax
0%--0%Incentive rate
1,1%1,1%-2,2%Property tax
0%0%-0%Incentive rate
-17,5%2,5%20%Profit tax
MunicipalRegionalFederal
Budget levelsTax rateTax
Financial and administrative support to be provided according to the Regional law of December 31, 2004 No180-Z: “State support for investment activity in Nizhny Novgorod region.”
Tax incentives:
Duration: 5 + 2 years
The Investor can fix the date when the incentives are put into action Documentation: Investment agreement, regional law to ratify Investment
agreementProcedure timing: apr. 4 months
DzerzhinskDzerzhinsk
Dzerzhinsk Industrial ParkArea of industrial park: 400 Ha
Distance to Moscow: 350 km to Dzerzhinsk: 9 km to Nizhny Novgorod: 5 km
Located along the Federal Highway M-7 "Volga" (Moscow - Kazan)
Nizhny Nizhny NovgorodNovgorod
Residents: Danfoss, production of heating equipmentA. Raymond, production of plastic fastenersLANXESS, production of additives for rubber industry
Dzerzhinsk Industrial ParkCategory of the land site: suitable for industrial usage and construction
Distance to the nearest residential area (buffer area): more than 500 m
Sites within the park shall be configured as per residents’ requirements
Topographic map: appendix 1
Ground analysis: appendix 2
Land site surfacing and uprooting: to be done by the authorities*
* the subject of investment agreement between Investor and the authorities: appendix 3
Dzerzhinsk Industrial Park
Land site acquisition:
Variant #2:leasing for the construction period and buy out
Cost of land rent: 110 000 RUR. per hectare per yearAverage construction period: 2 yearsDocumentation: lease contract Procedure timing: apr. 3,5 months
Buy out cost of land: 561 000 RUR. per hectare One time payment Documentation: purchase contract
Land site acquisition:
Variant #1: purchasing after tender procedure
Cost of land: 561 000 – 800 000 RUR. per hectare One time paymentDocumentation: purchase contractProcedure timing: apr. 4,5 months
Decision on the variant of land site acquisition to be made by Investor
Dzerzhinsk Industrial ParkGas supply: connection and operation costs
Connection fee: 0 RUR
Wholesale price for natural gas: 2 804 RUR per 1 000 m3Tariff for gas transfer: 380 RUR 69 kop. per 1 000 m3Extra charge on gas transfer: 55 RUR 11 kop. per 1 000 m3Extra charge for supply and sales: 77 RUR 25 kop. per 1 000 m3Total: 3217 RUR 05 kop. per 1 000 m3Total: 3217+VAT=3796 RUR 12 kop. per 1 000 m3
Annual value per 5,6 mln m3: 21 000 258 RUR*
Tariffs are regulated by Federal Tariffs Agency
*in the prices of the year 2010
Quality of gas (gas unit - 1 000 m3):temperature +200Cpressure 101,325 kPa humidity 0%calculated combustion heat 7 900 kcal/m3
Dzerzhinsk Industrial ParkElectric power supply: connection and operation costs
Connection fee: 8 900 RUR per kW excl. VAT Electricity supplier’s tariffs valid for the electricity supplying company OAO “Nizhegorodskaya Sbytovaya Company”:
1270,001050,001050,00RUR/МW per month- energy rate
646552647738647755RUR/МW per month- power rate
Double-rate tariff***:2
340027102550RUR/MWh4000 - 5000 hrs
266024102130RUR/MWh5000 - 6000 hrs
256022502010RUR/MWh6000 - 7000 hrs
Single-rate tariff (with annual hours of the declared power consumption)**:1
MV 2(10kV)*MV 1(35kV)*HV (110 kV)*
Voltage RangesUnit of Measurement
Consumers Groups
*The data on electricity cost depends on the voltage**The fee will depend on the number of hours to be consumed during a year. We assume that the industrial enterprise as the Continental company plans will consume 4 – 5/ 5-6/ 6-7 thos. hours per year. This will depend on the technological process and should be defined by the engineers of Conti. ***It’s also possible to pay for the power consummated and additionally for the energy. The optimal variant should be calculated basing upon the production process.
Government of the Nizhny Novgorod Region
Ministry of Investment Policy
Tel.: +7 (831) 411-82-16inter@invest.kreml.nnov.ru
www.government-nnov.ru www.mininvest.ru
Recommended