Message from the Acting Governor of Voronezh region A.V. Gusev
Voronezh Regional Duma and the executive bodies of the state
Voronezh region authorities
"Investment climate and investment policy of Voronezh region"
At a meeting of the State Council on 12.27.2017 the President of the Russian Federation noted that “... increasing investment, entrepreneurial activity is, of course, an economic task, it is the basis of economic growth and strengthening the tax revenue base of the regions, but it is in the full sense of the word political task. Because this is what creates real resources, increases resources for the development of health care, education, the social sphere in general, for the implementation of improvement programs and the improvement of the urban environment, the implementation of environmental projects.”
Over the past three years, the volume of total investments in the country has decreased by 7.9%. At the same time, in 21 regions, on the contrary, the increase of investments in the main capital was recorded. Voronezh region falls into this category. Investment development of the Voronezh region shows stability over the past 5 years: positive trends of annual growth in the volume of investments in the main capital are remained (Fig. 1).
I. Results of work
In the framework of the Investment Strategy of the Voronezh Region until 2020, the regional government is implementing a set of measures aimed to create conditions for mobilizing domestic and increasing the flow of external investment resources into the regional economy, expanding sources of investment for business projects, and developing regional infrastructure using public-private partnership mechanisms.
The implementation of the Strategy to increase the investment attractiveness of the Voronezh Region allowed increasing by 1.6 times the annual volume of investments in the Voronezh Region (in the Russian Federation - by 26.9%) for the last 5 years (2013–2017, at current prices).
In 2017, the investment sphere of the region maintained a positive trend - investment activity in the region has been growing over the past 8 years. This is the longest period of growth in the modern history of the region, which has been achieved. At the end of 2017, the volume of investments in the Voronezh region amounted to 294.2 billion rubles. The index of physical volume of investments in the main capital in 2017 to the level of 2016 was 100.1% (in the Russian Federation - 104.4%), to the level of 2012 - 121.9% (in the Russian Federation - 94.1%).
The implementation of complex of measures to create comfortable conditions for doing business and stimulating investment activity ensured the leading position of the Voronezh Region in the national rating, which characterizes the investment development of the constituent entities of the Russian Federation. Voronezh region ranked 7th among 85 constituent entities of the Russian Federation in 2018 (8th place in 2017). In the Central Federal District - 3 place. For the last two years, growth in the rating by 16 positions has been achieved.
II. Goals and objectives of the investment policy
The strategic goal of the region’s investment policy is to improve the investment climate, ensuring the inflow of investments to the region, achieving sustainable economic growth and raising the standard of life of the population. Decomposition of the strategic goal defines the following set of investment development objectives for the Voronezh region:
- increase of economic and economic independence of the region;
- obtaining the maximum possible budget revenue;
- solving social tasks and problems (creating new jobs, increasing the level of wages in certain industries)
- elimination of disproportions in the development of branches of economic activity;
- optimization of the existing production structure;
- ensuring a reliable and stable financial base of the region.
The main objectives in the field of investment policy of the Voronezh region are:
1) In the development of industrial and consumer markets, the development of small and medium enterprises:
- improving the competitiveness of the regional industrial-agricultural production complex;
- promoting the development of small and medium-sized businesses of the Voronezh region to increase their competitiveness;
- an increase in the share of innovative enterprises, the development of high-tech industries;
- creation of conditions for the most complete satisfaction of the demand of residents and guests of the Voronezh Region for consumer goods, catering services and personal services at affordable prices while ensuring the quality and safety of their purchase and consumption;
- Ensuring a favorable state of the environment, rational environmental management.
2) In the sphere of development of the infrastructure complex:
- providing investors with an accessible infrastructure for locating production and other facilities;
- reducing the cost of connecting to the engineering infrastructure;
- creation of an information infrastructure of investment activity, formation and promotion of the image (brand) of the Voronezh region as an open region, favorable for investment activities.
3) In the area of human capital development:
- development of effective mechanisms for vocational training and retraining in specialties that meet the needs of investors in the Voronezh region.
4) In the area of developing the institutional environment and increasing the effectiveness of the activities of state bodies:
- reduction of terms and simplification of conciliation and permitting procedures for the implementation of investment projects;
- availability of an effective system of state support of investment projects.
III. Instruments for achieving regional investment policy objectives
The main instruments for attracting investments are organizational and financial measures of state support of investors:
1. Organizational support of all stages of the investment project.
2. Improving business conditions.
3. Optimization of procedures for obtaining permits.
4. The provision guarantees for investment projects at the expense of the objects of the regional pledge fund and the funds of the regional budget on a competitive basis of state (region).
5. Providing investors with subsidies from the regional budget to pay part of the interest for using loans from Russian credit institutions attracted for investment projects.
6. Co-financing at the expense of the regional budget the construction of engineering infrastructure facilities, the provision of subsidies for reimbursement of costs for services for technological connection to the power grids.
7. Granting privileges on property tax of organizations, income tax in the part to be credited to the regional budget.
8. Providing investors with preferential conditions for the use of land and other natural resources that do not contradict federal legislation, including in industrial parks of the Voronezh Region.
IV. Implementation of the initiatives of the government of the Voronezh region in the field of investment
In order to improve the investment climate and business conditions, the following main areas are implemented:
1. Introduction of Investment Standards and creation of the necessary set of measures and institutions to support investment activities, including regional industrial parks, provision of measures of financial support to investors, organization of work on the full support of investment projects on the principle of "one window".
2. Development of the Institute for the protection of investors' rights.
To protect the rights and legitimate interests of investors in the Voronezh region, coordinating and advisory bodies have been formed to address investment development issues in interdepartmental cooperation, and an institution has been created to protect the rights of entrepreneurs. The activities of the Council to Improve the Investment Climate of the Voronezh Region are aimed at attracting investment in the economy of the Voronezh Region, taking into account the observance of the economic, social and environmental interests of the population of the Voronezh Region. In 2017, six meetings of the Council were held, 16 issues affecting the activities of investors, and law enforcement regimes were considered.
3. Elimination of excessive administrative barriers.
In order to reduce individual procedures, as well as optimize the processes of permits and approvals in the implementation of investment projects, 20 issues were considered at 6 meetings of the Headquarters for the Reduction of Administrative Barriers in the Voronezh Region in 2017. As a result of organized work to eliminate redundant administrative barriers, the terms for conducting registration and permitting procedures were significantly reduced (the time for registration of legal entities was reduced from 14 to 7 days, registration of property rights from 12 to 4 days, obtaining a building permit from 423 to 87 days).
4. Implementation of the target models of simplifying business procedures.
In 2017, 12 target models were introduced in the region, which generally cover the main areas affecting the investment climate:
- procedures for registration of real estate rights and cadastral registration,
- connections to supply networks,
- support of small and medium enterprises,
- supervisory activities,
- ensuring the interaction of government with the business community.
In each Target Model, evaluation factors are identified and target indicators for their implementation are set. At the end of 2017, the overall implementation rate of the target models in the Voronezh Region was 97% (on average in the Russian Federation - 92%). The region was included into the 2nd group “Regions with the level of achievement above the average” (from 4 groups).
5. The formed system of state (regional) support for investment activity has created the conditions for the successful implementation of 80 particularly important investment projects in the region. The total investment in these projects is 318 billion rubles. During the implementation of these investment projects, 15,600 new jobs were created. In 2017 alone, more than 2,570 new high-performance jobs were created.
Calculations of the Department of Economic Development of the region showed that by the end of 2017, the indicator of the volume of investments for 1 ruble of state support of investment activity for the whole range of investment projects amounted to 15.6 rubles. Based on 1 ruble of regional support, tax revenues for the whole range of investment projects at the end of 2017 amounted to 3.06 rubles (which is 76 kopecks more than last year).
These results indicate real positive changes in improving the investment climate and issues important for business.
For reference: The main measures of state (regional) support of investment activities in 2017 were:
- tax concessions on property tax and income tax (850.5 million rubles);
- subsidies for reimbursement of expenses for the creation of engineering and transport infrastructure facilities (290.44 million rubles);
- reimbursement of expenses for the payment of interest on the use of loans (9.56 million rubles).
6. Infrastructure investment support
6.1. Industrial parks
The network of industrial parks operating in the Voronezh Region (Maslovsky, Liskinsky, Bobrovsky and “Perspektiva”) provides investors with an accessible infrastructure for locating production and other facilities, as well as reducing the cost of connecting to engineering infrastructure.
In total, in the operating industrial parks of the region, taking into account small and medium-sized businesses, 92 residents were placed and 4378 jobs were created.
Thus, on the territory of industrial parks, the international corporations Siemens (Germany), OFS (USA), Nutreco (the Netherlands), Agrostroi Pelkhrimov JSC (Czech Republic), as well as domestic companies Voronezhselmash LLC (agricultural machine building), LLC USK “Specstaltekhmontazh” (metal constructions), LLC “Vybor-OBD” (construction industry), LLC “Grand Line-Center” (metal processing) have already marked their production facilities. In addition to the operating enterprises, it is planned to locate a number of productions.
The amount of funding from the regional budget in the construction of the infrastructure of the industrial park Maslovsky for the period 2012-2017 amounted to 1,912.22 million rubles (in 2017 - 46.00 million rubles). The regional budget funds were used to work on the creation of the following infrastructure in the park:
- power supply systems (transformer and distribution substations with electric networks),
- on-site gas supply networks, water supply and wastewater treatment facilities (water supply network, storm water network and household sewage network),
- highways, as well as for design and exploration work.
The created objects of municipal and transport infrastructure are used by residents of the park.
In the framework of the federal program of reimbursement of expenses of regional budgets for the creation of infrastructure of industrial parks, in accordance with the Russian Government Resolution No. 1119 of 30.10.2014, 306.43 million rubles were attracted from the federal budget for the development of the Maslovsky industrial park (including in 2016). - 102.53 million rubles, in 2017 - 203.9 million rubles). In 2018, within the framework of this agreement with the Ministry of Industry and Trade of the Russian Federation, 264.96 million rubles will be received subsidies from the federal budget.
6.2. Development of the territory of advanced socio-economic development (hereinafter - TASED)
In the Voronezh region, a territory of advanced socio-economic development (hereinafter referred to as TASED) has been created within the borders of a single-industry municipality (mono town) of an urban settlement - the city of Pavlovsk, Voronezh Region.
The creation of Pavlovsk TASED on the territory of the urban settlement will allow to place in the city at least 20 new productions whose work will guarantee the stability of the socio-economic development of the city, and TASED residents will receive preferential terms of doing business with the application of lower rates for insurance premiums - 7, 6% (for non-residents 30%), benefits on income taxes (no more than 5% during the first five years, no more than 12% during the next five years), land tax (0%), as well as preferential tax duties on the import of foreign goods in TASED. By 2020, it is planned to attract 11.2 billion rubles of investments. The anchor project will be the construction of a meat processing plant with an investment volume of more than 10 billion rubles. Budget expenses for the creation of the transport and engineering infrastructure of the Pavlovsk TASED will amount to 1.5 billion rubles.
7. Development of public-private partnership.
Currently, a list of 31 projects implemented and planned for implementation on the principles of PPP in the areas of housing and communal services (objects of heat and water supply), transport (light rail), sports (sports complexes), culture (tourist and recreation cluster in Ramon) and ecology (waste recycling) worth more than 9 billion rubles.
In 2018 on the territory of the city of Voronezh implementation of the project "Sports Cluster in the city of Voronezh" is planned with a total cost of 235.6 million rubles. This is the first agreement in the Russian Federation on public-private partnership in the field of sports.
Also, a list of 53 objects of housing and communal services, sports and transport of municipal form of ownership, in respect of which it is planned to conclude concession agreements, is generated in the period 2017-2020.
The regulatory legal framework of the municipalities of the Voronezh Region is fully harmonized with the requirements of the current federal legislation in the field of PPP.
V. Promising areas of work on investment development of the Voronezh region
The following are the most promising areas of investment development work in the Voronezh Region for 2018:
Together with the creation of TASED on the territory of other mono towns of the Voronezh region (Semiluki and Rossosh) for the period 2018-2027, it is planned to diversify the economy of monotowns, create 30 thousand new jobs, attracting 336 billion rubles of investments in fixed capital.
1) Creating a special economic zone "Center".
An application for the creation of a special economic zone is currently being considered by the Ministry of Economic Development of the Russian Federation.
The total area of the planned SEZ is 220 hectares, of which, in accordance with the special area planning project, 70 hectares are provided for engineering and transport infrastructure facilities, 150 hectares for sites for residents' facilities. Thus, 15-20 enterprises can be accommodated in the SEZ.
Creating a special economic zone of industrial type "Center" on the territory of the Voronezh region with the subsequent development of the "branch network" of the SEZ in the municipal districts of the region in the period 2018-2027 will attract 200 billion rubles of investment, receive an additional 108 billion rubles of tax payments budgets of all levels; create 25 thousand new jobs. During the period 2018-2021, 2.9 billion rubles will be allocated from the budget of the Voronezh Region to create the transport and engineering infrastructure of the SEZ.
2) Continuation of the implementation of target models to simplify business procedures, including at the municipal level.
In 2018, it is planned to continue the implementation of target models by the executive authorities of the region, as well as to replicate the successful experience of testing the target models of “cadastral registration of land plots” and “issuing building permits” in Voronezh, Semiluksky, Ramonsky and Novousmansky districts on the territory of all municipal districts area. In these areas, measures were taken to switch to the electronic provision of services for the issuance of a land development plan for the land plot (GPZU) - up to 30% of the total volume of issued GPZU.
Particular attention in terms of simplifying business procedures in the coming years will be given to work on eliminating excessive administrative barriers and reducing the duration of registration and permitting procedures, which will allow (according to the national rating methodology) to reduce the time for registration of legal entities from 11 to 5 days, registration of property rights - from 9 to 4 days, obtaining a building permit from 87 to 40 days.
3) Actualization of investment passports of municipal districts of the region, which will allow defining new investment sites, as well as outline an action plan for their infrastructure support.
4) Development of a network of industrial parks, including the creation of investment sites for small businesses with the ability to easily connect to the energy and utility networks and the minimum time for starting production.
It is assumed that:
- further attraction of budget financing for the infrastructure arrangement of industrial parks in the Voronezh Region - up to 200 million rubles annually (as part of the federal program for reimbursing regional budgets for creating infrastructure of industrial parks);
- assignment of the official status of "industrial park" to new investment areas of the region, which will be developed at the expense of private investors.
Industrial parks with a total area of 364 hectares are planned in the following areas:
- Novousmansky (113 hectares, production of agricultural machinery and equipment);
- Rossoshansky (14 hectares, manufacturing industry);
- Semiluksky (30 ha, metallurgy, metalworking);
- Kashirsky (164 hectares, processing of agricultural products);
- Ramon (50 hectares, production of national crafts).
The development of a network of industrial parks for the period 2018-2027 will allow to:
• create conditions for the placement of at least 30 new industries;
• additionally attract into the regional economy at least 40 billion rubles of investments due to the placement of new industries;
• create 4 thousand new jobs.
5) Preparation and implementation of the “Plan of negotiation with investors”, the results of which ensuring the deployment of new industries in the region is planned. To do this, changing the approach to work is planned. As the analysis shows, only 10% of investors with whom meetings were held, make a positive decision on investments. A plan is currently being developed that includes negotiations and meetings with potential investors, which include media events,
6) Improving measures to support investors in terms of creating tax preferences for residents of the priority development area, reducing the redemption value of land in the industrial parks of the region. It is also necessary to optimize the provision of regional property as a pledge, state guarantees to investors.
The special attention of the government of the Voronezh region will be directed to the following activities:
- creation of tax preferences (in terms of taxes on profits and property of organizations) for residents of priority development areas, as well as for investors implementing public-private partnership projects (at least 500 million rubles);
- reduction of the redemption value of land in the industrial parks of the region (by at least 40%);
- optimization of procedures and reduction of the cost of providing regional property as a pledge, state guarantees to investors (from 1 to 0.01%);
- exemption from property tax in terms of the newly acquired equipment of enterprises engaged in the modernization of production (the amount of benefits is expected to be 1.5 billion rubles).
The Voronezh Region has geographic advantages of location, scientific potential and a favorable investment climate conducive to the development of business in the region and the preservation of socio-economic sustainability. These factors will help preserve the stability of the region and ensure a decent standard of living for the population of the Voronezh region.