Expenses for Titanium Valley SEZ in 2013 will be budgeted by the Region

The Governor Evgeniy Kuyvashev allocated 500 million Rubles for construction of the special economic zone “TitaniumValley”. These days the project is being stipulated in Davos. So, the Sverdlovsk Region fulfils its liability to co-finance the SEZ project according to the Agreement with the RF Ministry of Economic Development and Trade.

Construction works in Titanium Valley SEZ have already started. At the moment 8.5 km main gas pipeline (500 mm in diameter) is being built. At the same time the office and 6.5 km fencing are under construction. The facilities are being connected to the power network: a substation 110/10 with the capacity up to 40 MW.

The Titanium Valley SEZ Management Company has been assigned for 2013 with the following task: to put into operation all the infrastructure needed to start production at the production sites of the first SEZ residents. The 500 million Rubles from the regional budget will be allocated for these tasks. By the end of the year the site will be connected to gas, power and water supply systems, equipped with sewage system, customs infrastructure and roads.

It is planned that the first-order infrastructure within the territory of the special economic zone will be erected in five years’ time. According to the project the costs for construction of the first-order facilities in SEZ will amount to 21 billion Rubles, of which 6.3 billion will be funded by the region.
It should be kept in mind that previously the RF Ministry of Economic Development and Trade approved the co-financing scheme drawn up by the Sverdlovsk Region Government. This scheme suggests that almost half of theTitaniumValleycontraction costs should be taken up by the federal budget. As follows from the plans of SEZ managers 1.3 billion Rubles will be loaned from credit institutions. The rest of the amount stated will be divided the following way: 51 % – federal financing and 49 % – regional financing.

The release was drawn by the Governor’s Department for Information Policy.