An extraordinary meeting of the Legislative Assembly Committee on the industrial and innovative policy and entrepreneurship was held on 24 April 2014 on the site of the Titanium Valley SEZ.
The meeting was attended by deputies of the Legislative Assembly of Sverdlovsk region, representatives of public authorities, the administration of Verkhnaya Salda urban district, and also by representatives of resident companies.
The planned question on the agenda – progress in executing works at the Titanium Valley special economic zone.
The visit began with a site tour. Artemy Kyzlasov, Director General of Titanium Valley SEZ OJSC, showed the visitors around and commented upon construction progress with the main infrastructure facilities of the special economic zone – the external gas line, production/fire-protection and potable water mains, as well as civil construction plans for the current year, as readiness of infrastructure facilities is one of the basic conditions for residents entering the sites of the special economic zone.
Are the construction work schedules being observed? What is the efficiency of budget investments? What was the basis for choosing the site? How is the economic and political situation in the world affecting residents’ plans? How will personnel be prepared? How is project financing progressing? Is the attraction of private investment possible? Who are the residents now, and at what stage are the works? Discussion of project realization matters started on the tour bus, and gradually moved to the site of the special economic zone.
As A. Kyzlasov explained, construction of infrastructure facilities and site development goes at a pace allowed by current financing. At present, the project is financed only from the regional budget, and so there are some delays to the building schedule. Federal resources, of course, will allow project realization to speed up, but to make it happen, regional financing liabilities must be executed in full.
Sergey Lednov, Director of Business Development for the VSMPO-AVISMA Corporation OJSC, in charge of project realization for the project resident VSMPO-New Technologies LLC in the special economic zone, confirmed that infrastructure construction rates, in many respects, define the activity of residents. “Last year, we saw that construction of infrastructure facilities and site mobilization works had moved into the active phase. Accordingly, from our side, we have updated our business plan, and now intensive works for project development are in progress. We are planning that by the middle of 2015, all necessary services will be brought to our site, and the production building will be constructed. We hope that financing terms and construction rates will be maintained.”
But how, considering the uneasy economic and political situation in the world, are relations with the Boeing Corporation being maintained? This question in one form or another interested all the guests at the meeting.
Artemy Kyzlasov explained that at present, they are holding detailed discussions with the Boeing Corporation: calculations of cost and options for building industrial facilities on the site of the special economic zone are ongoing. It is expected that the decision will be made at the end of May at a meeting of the Corporation Board of Directors. Sergey Lednov also confirmed that the Company on its side is working over the project, and conducting consultations with Boeing concerning, specifically, the choice of equipment.
The possibility of attracting off-budget resources and private investment to the project is one more matter which was discussed in detail by participants at the meeting. Representatives of the deputy body, for their side, expressed readiness to actively promote the resolution of this matter.
Summing up the results of the meeting, the chairman of committee of the Legislative Assembly on industrial and innovative policy and business, Albert Abzalov, proposed to deputies to recommend that Titanium Valley SEZ OJSC continues works on achieving the target values of efficiency indicators for the functioning of the special economic zone, and attraction of residents and other investors, including for activities in realization of SEZ infrastructure facilities; and the Government of the Sverdlovsk region should adhere to the project financing plan for 2014-2016 approved by the Law on the Sverdlovsk region budget.