The Moscow Department of Investment and Industrial Policy and the Moscow Investment Agency present you the next digest of the main investment events in the Russian capital.
All facilities built under the concession agreements will remain in the capital ownership, and businesses will be able to operate them during the term of the contracts. This form of public-private partnership is beneficial for both the city and entrepreneurs.
“Moscow signed two concession agreements in housing and utility infrastructure. The first one concluded for 20 years and 6 months. The investor will build two plants for drying and subsequent disposal of sewage sludge. The heat treatment product will be supplied to cement plants for use as solid biofuel. Investments in the creation of production will exceed RUB 27 bn,” said Vladimir Efimov, Deputy Mayor of Moscow for Economic Policy and Property and Land Relations.
Under the second one, a plant will be built in the city to remove nitrogen from sewage sludge and extract phosphorus for processing into fertilizer. The concession was contracted for 27 years. Investments in the project amount to RUB 8.4 bn.
“According to the largest in Moscow and the first in Russia road concession, the investor is building the northern understudy of Kutuzovsky Prospekt in the west of the capital – a toll free four-lane highway within the city. The volume of investments in the project is RUB 68 bn. The commissioning of the road is scheduled for 2023, the agreement was signed for 40 years,” said Vladislav Ovchinsky, Head of the Moscow Investment and Industrial Policy Department.
In addition, the first 25-year education concession was concluded last September. The investor will build a contemporary school in the Skolkovo innovation center. At least 150 will be working there and 825 people will be studying there at the same time. The total investment in the project will be more than RUB 2.2 bn.
Investors will build 4 shopping centers and 2 retail and office centers under the Program of stimulation of creation workplaces in different administrative districts of the capital. The volume of investments in projects will amount to almost RUB 23 bn. More than 6.400 new jobs will appear in the city.
Two industrial technoparks will be built in the Technopolis Moscow Special Economic Zone in Alabushevo and in the village of Krekshino. Investments in the construction and equipment of facilities will amount to about RUB 4.7 bn. In the future, 2.800 people will be able to work there.
Industrial technopark with an area of almost 21.000 m2 will be created near Mashkinskoye and Novoskhodnenskoye highways in Molzhaninovsky district. The investments in the project will be more than RUB 1 bn. At least 600 work places will appear in the technopark.
The business park in Butyrsky district will create 7.000 workplaces, and the retail and office center as a part of the Botanichesky Sad transport hub in the Rostokino district will create 4.500 workplaces. The investments in the projects will be RUB 15.5 bn. The buildings will be commissioned in 2024.
A business center and two educational institutions will be built on Shenogina Street in the Khoroshevo-Mnevniki district. The area of the business center will be 56.000 m2 and the area of the kindergarten and school will be almost 18.800 m2. Investments in projects will exceed RUB 9 bn. More than 1.700 workplaces will appear there.
The investor will build a business center in the Filevsky Park district, 1.400 people will be able to work there. An office building will be built according to world class A business center standards.
The city also signed agreements on the construction of a shopping center on Ochakovskoye Highway, a business center, a 1.000-seat school, and a 250-seat kindergarten on Ozernaya Street. More than 3.500 additional workplaces will appear in the district.
Since the beginning of the year, investors have been allocated 8 land plots for the implementation of large-scale investment projects. As a result, factories for the production of architectural concrete, high-tech electronic component base and microsystem equipment, a manufacture of construction products, as well as a logistics center, a technology park and an industrial cluster will appear in the capital. More than 9.000 workplaces will be created in Moscow. The total investment in production will amount to more than RUB 50 bn.
A new production building will be built in the Kosino-Ukhtomsky district. The factory will produce furniture for school, home and office. To implement the project, the city handed over to the investor a land plot of more than 2 hectares without bidding. The investments in the project will be RUB 280 m. The area of the facility will be 9.600 m2 and in the future 350 people will be able to work there. The new enterprise will produce about 500.000 units of products per year.
From January to June 2022, the city entered into lease agreements with developers for land plots with a total area of 8.5 hectares for the construction of 6 schools. New educational facilities will appear in the capital in 5 years and will occupy an area of over 50.000 m2. More than 3.000 children will be able to visit it.
In September 2020, the Moscow Government signed an agreement with ITELMA Group on construction of ZIL Technopark. According to it, the investor will reconstruct existing objects, as well as build the new ones.
“So, it is planned to create two buildings with a total area of 114.000 m2 on a plot of 4 hectares. There will be microelectronics and automotive components manufacturers, security information technology developers and other businesses. Thanks to the creation of the technopark, more than a thousand jobs will be in the city,” said Vladimir Efimov, Deputy Mayor of Moscow for Economic Policy and Property and Land Relations.
The Technopark has the status of an investment priority project, which gives the opportunity to reduce the regional part of the income tax from 17% to 13.5% and to reset the property tax.
“The volume of industrial production increased by 8.8% in the capital for the first 6 months of 2022 compared to the same period last year. In June alone, this indicator increased by 4.9% compared to the same month last year,” said Vladimir Efimov, Deputy Mayor of Moscow for Economic Policy and Property and Land Relations.
This growth is supported by the activity of manufacturing enterprises, which in the first six months increased output by 10.9% in annual terms, and in June – by 5.4%.
City’s enterprises in January – June this year increased production compared to the same period 2021 by 69% increased production of medical equipment, by 20.9% – textile products, by 6% – bakery and flour confectionery products.
“In January – June of this year the production of textile products increased by 20.9% compared to the same period of 2021, bakery and flour confectionery products - by 6%, and medical equipment – by 69%,” said Vladislav Ovchinsky, Head of the Moscow Investment and Industrial Policy Department.
Moscow has allocated RUB 21.9 bn to support businesses under sanctions. 10.800 capital companies, including import-substituting industries, scientific-research organizations, medical institutions, children's centers, catering enterprises and others will receive an assistance.
Since the beginning of 2022, the city has approved in total 900 applications for grants for a total amount of RUB 1.7 bn, subsidies to reduce rates on 8.000 loans for entrepreneurs in the amount of RUB 4.9 bn, subsidies to reduce rates under 435 factoring agreements for RUB 370 m and guarantees in the amount of RUB 15 bn for 1.500 business loans.
For 5 months of this year, more than 1.300 entrepreneurs received assistance from the city in the property and land sphere for RUB 14.2 bn. In total, almost 1.700 business representatives applied to the city with applications for various benefits in this area.
The interest rate on preferential loans decreased from 7% to 3% per annum. At the same time, the maximum loan amount is RUB 300 m, and the term of concessional financing is up to 3 years. There are 17 applications from companies worth more than RUB 2.4 bn under examination. Among these companies are developers of microelectronics, technologies for cleaning motor fuels, devices for data transmission, manufacturers of medicines, dietary supplements, cosmetics, etc.
As part of the anti-crisis support measures taken in the spring, the Moscow Government launched a soft lending program, including for the implementation of investment projects. Thus, concessional investment lending allows enterprises to receive support in the acquisition of equipment and rights to the results of intellectual activity, as well as in the implementation of projects aimed at creating or reconstructing industrial infrastructure in the capital. Each ruble allocated under the program allows enterprises to invest RUB 45 in production sites and the city's economy. At the end of July 2022, the rate on preferential investment loans reduced from 9% to 3%. It applies to both new loans and previously approved applications. The maximum loan amount has also been increased from RUB 1 to 3 bn.
The sausage manufacturer received a 5-years soft loan of RUB 100 m from the Moscow Fund for the Support of Industry and Entrepreneurship. These assets the company will direct to the development of export activities. The funds were provided at a preferential rate of 5.5% per annum.
“Thanks to the support measure, over the next 5 years, the manufacturer will increase exports by at least RUB 130 m, which will expand production, increase revenue and save jobs,” said Vladimir Efimov, Deputy Mayor of Moscow for Economic Policy and Property and Land Relations.
The city systematically provides loans up to RUB 300 m to enterprises at a rate below the bank’s rate. In 2021, manufacturers of the food, light and medical industries took advantage of this preference. The amount of issued loans reached RUB 1.1 bn.
More than 20 support measures have been implemented in Moscow to develop production and improve the efficiency of enterprises. Among them are subsidies that can be used to reimburse part of the cost of leasing or for technical connection to engineering networks, as well as to pay interest on loans for the purchase of equipment.
Thus, the revenues of metropolitan enterprises that used city subsidies grew on average 1.5 times faster than those that did not use them.
Among the support measures are tax incentives. Moscow assigns a special status of an investment priority project for investors, who create industrial complexes, objects in the field of education, culture, social services and implement public-private partnership projects. This status allows companies to reduce the regional tax burden by a quarter. Today, 13 enterprises use this preference.
For the first 6 months of 2022, the city sold more than 4.400 objects with a total value RUB 30.9 bn. More than half of them are car seats, which total price is RUB 1.1 bn. The purchase of non-residential premises is also popular. During this period, auctions were held for 467 objects worth RUB 10.5 bn.
From January to June, there were also 52 auctions for the sale and lease of land. In addition, 64 auctions were held for the right to place non-stationary commercial facilities: tents in parks, carts with drinks and ice cream, seasonal facilities, kiosks and vending machines.
Department of Investment and Industrial Policy of the City of Moscow
mos.ru/dipp
Moscow Investment Agency
investmoscow.ru
Supplier portal
www.zakupki.mos.ru
The digest archive is presented on Moscow Investment portal.
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