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1 Cfpafer paef r.

Tyfaee: peefa 02/02/2010


Comprehensive Action Plan for
Modernization of Tutaev
(in Yaroslavl oblast)
MateriaIs for the Working Group
June 15, 2010
Cfpafer paef r. Tyfaee: peefa 02/02/2010
ey deveIopment goaIs of Tutaev are to diversify its
economy and generate empIoyment in the short and
Ionger term
The main goal of the Comprehensive nvestment Plan (CP)
for Tutaev is to:
stabiIize the core enterprise, support growth of
househoId incomes, and reduce strategic risks to the
monotown's economy.
Key objectives of the CP are to:
generate empIoyment in the short and longer term;
diversify the IocaI economy to reduce strategic threats to
the town;
increase revenues of the IocaI budget and strengthen
its self-sufficiency;
deveIop the tourism infrastructure and improve the
urban environment to support the development of small
business in the hospitality industry.
Notwithstanding its vibrant growth in the pre-crisis period,
the IocaI economy faced a difficuIt struggIe during the
crisis.
The town lost about 5,400 jobs, including about 1,700 jobs
eliminated at the town's core enterprise, the Tutaev Motor Plant
(TMP).
One consequence of the crisis and massive layoffs was a series
of public protests in late 2008 early 2009 which involved
several hundred people, and on January 18, 2009 the Yaroslavl
Rybinsk federal highway was blocked.
The reason behind these massive layoffs was excessive reliance
of the local economy on the Tutaev Motor Plant: the plant directly
provided about 17% of employment and besides a large number
of jobs in small business depended on contracts with the plant.
n addition, about 500 jobs at the Mendeleev Refinery (Slavneft JSC) and 200 jobs at other companies are currently jeopardized. f the
proposed Action Plan with the focus on attracting new medium businesses is not implemented, one could expect that the social
tensions in the town will increase further.
Cfpafer paef r. Tyfaee: peefa 02/02/2010
Notwithstanding its current probIems, Tutaev has a
potentiaI for deveIoping its own economy
Source: interviews and consultants' analysis
TraditionaI probIems for Russian monocities:
!oor competitiveness and Iow profitabiIity of traditional sectors;
Weak economic diversification, with the TMP accounting for 52%
in local production and 32% in local tax collections;
High IeveI of depreciation of production assets, with most "old
enterprises using obsolete technologies;
Workers are not skiIIed enough to operate modern equipment.
!robIems specific to Tutaev:
A Iarge proportion of residents are empIoyed outside the town
(about 30% of economically active population); high share of
government-paid workers;
SmaII size of the popuIation (41,000 peopIe) compared with other
developing industrial centers;
SmaII share of smaII business (about 10%) compared with the
20% average for the Yaroslavl oblast;
There is no bridge between the two parts of the town, and there is
no public transport in the town;
Low efficiency of the professionaI training system, which does
meet the needs of business.
AvaiIabiIity of a Iarge number of Iand pIots and compIeted
structures with connected infrastructure for industrial production,
availability of unutilized power capacities at TMP sites;
Large amount of agricuIturaI Iand in the district, withdrawn from
commercial use;
Convenient Iogistics: the town is located in the St. Petersburg
Nizhnii Novgorod transport corridor, close to the federal highway,
access to all types of transport (motor, river, railway);
!roximity to Iarge cities and markets; Tutaev is 30-40 km from
Yaroslavl and Rybinsk and 290 km from Moscow by the federal
highway;
Low cost of IocaI Iabor: 20-30% cheaper than in Yaroslavl;
ConsiderabIe amount of human resources: currently there are
4,000-5,000 workers in the town plus potentially 6,000 to 8,000
people (better skilled) who now have jobs in Yaroslavl and Rybinsk;
The town is Iocated in the western part of the GoIden Ring
tourist circuit (UglichMyshkinRybinskYaroslavl) with tourist
flows of about 120,000-130,000 people per year; existence of
attractive cultural and historical sites.
ey probIems !otentiaI for deveIopment
4 Cfpafer paef r. Tyfaee: peefa 02/02/2010
A key area in economic deveIopment of Tutaev is creating and
supporting enterprises in the medium business segment
Source: working group decisions under the project of preparing CIP for Tutaev
Main areas of
economic
deveIopment of
Tutaev
StabiIizing and supporting
the deveIopment of the
TM!
Creating new industriaI
enterprises in the medium
business segment
ImpIementing SME
support programs
Beautification and
deveIoping the tourism
potentiaI of the town
Clearance of tax arrears in exchange for transfer of the ownership title in
vacant space and land plots to the regional administration to set up an
industrial park
Obtaining VEB guarantees for a Deutsche Bank loan in an amount of about
$170 million for upgrading production assets
Completing the first phase of the industrial park by 2012 to site new medium-
sized machine-building enterprises
Preparing land plots to site food processing and other manufacturing
operations, participating in activities related to government support for
infrastructure construction
Providing assistance to large and medium agricultural producers
Government support to investment activities of medium businesses
(subsidizing leasing payments, tax privileges)
A program for subsidizing educational expenditures
n the long range, setting up a special economic zone (SEZ) of industrial type
mplementing small business support programs (grants, subsidization of initial
installments under leasing arrangements, issuance of guarantees, connection
to power networks, etc.)
Educational programs for small businesses and new entrants in business
Reconstruction of main tourist sites
Engineering activities to provide technical capabilities for receiving motor
ships
Supporting small business in the hospitality industry
Cfpafer paef r. Tyfaee: peefa 02/02/2010
uring 010-01, about 4,100 new jobs are expected
to be created in the town
Hcm: e a cee pecmaeex ec-peme (ea c/x pemee) a meppmp Tymaeeca MP
Structure of changes in the number of jobs during 010-
01, thousand jobs
Net gain of jobs in the town is expected to reach 1,700 by
2012 and 3,000 jobs, by 2015.
The Iargest reductions of jobs are expected at the
Mendeleev Refinery (about 500 jobs). Also, some medium-
sized businesses and small retailers are at risk because of the
arrival of federal chain stores. The TMP does not plan any
further reductions.
InitiaIIy, newIy created jobs wiII be fiIIed by the currently
non-employed individuals (about 4,000 people) and at a later
stage a resource comprising those employed outside Tutaev
could be used (another 6,000-8,000 people).
If the CI! program is not impIemented, the number of new
jobs will decrease to 1,400-1,700 (1,500 for the industrial park,
1,000 for TMP, and 600-800 for SME), which will provide a net
gain of 300-600 jobs in the town by 2015.
1,4
009
1,0
TM!
,
Medium
enterprises
0,7
SmaII
business
1,4
01
4,1 - 1,1 = ,0
1,1
Reductions
(refinery and
others)
Number of new jobs (cumuIativeIy) 010 011 01 01 014 01 00 (estimate)
Core enterprise (TMP) 130 360 630 820 975 1010 25% 1200
Medium business 00 80 161 010 90 7% 800
Setting up and developing an industrial park 60 375 715 920 1090 1125 28% 1230
Setting up and developing an agro park 0 50 330 520 630 630 15% 820
Creating new enterprises 20 100 120 120 120 120 3% 250
Expanding existing enterprises 195 355 525 525 525 525 11% 700
Small business
18 40 4 619 694
17% 800
including in the tourism industry
0 56 80 112 140 186
5% 300
Work on beautification and development of the tourism potential
0 16 166 17 10 4
1% 0
Eliminated jobs 500 1000 1100 1100 1100 1100 27% 1300
ndividuals engaged in public works 1200 1000
TOTAL, new jobs 468 16 81 9 4014 4071 100% 480
TOTAL, net gain of jobs 1168 1623 1731 2439 2914 2971 3550
TOTAL, employment in the town (estimate), people 13568 14023 14131 14839 15314 15371 15950
6 Cfpafer paef r. Tyfaee: peefa 02/02/2010
ImpIementation of the CI! wiII reduce the TM! share in the IocaI economy to
4% and increase the town's baIance of payments by 14
*
biIIion per year
Source: estimates based on the presented business project proposals
By 2012, tax revenues of the local budget should increase 2.1-fold to 0.6 billion rubles and over the
next three years, to 0.8 billion rubles.

TMP
Agribusiness
Other
Manufacturing

TMP
Agri business
Other
Manufacturing

TMP
Agribusiness
Other
Manufacturing
008 01 01
.7
billion
17
billion
7
*
billion
Indicator 008 009 010 011 01 01 014 01 00
TM! share in the economy % 39% 51% 50% 46% 45% 44% 4% 40%
Tax revenues of the IocaI budget,
biIIion rubIes
0, 0,2 0,2 0,4 0, 0,6 0,7 0,8 0,8
Increase in the monotown's
baIance of payments, biIIion
rubIes
- - 1,4 3,4 7,0 10,4 13,0 14, 17,5
* The large growth is explained by the low base effect and considerable investments in
improving the capital/labor ratio of enterprises in the town
7 Cfpafer paef r. Tyfaee: peefa 02/02/2010
Source: data from business project proposals and several targeted programs of socioeconomic development that are under way in the Tutaev municipal district
The impIementation costs are estimated at RUR1.1 biIIion, of
which 7.4% wiII be financed by private investors
The share of the regional and local budgets in total financing will be 8.7%, while 18,0% will be sought from various federal sources.
8% of budgetary funds will be used for targeted support of medium-sized businesses; over 6%, for SME support programs; 9%, for
development of the tourism potential of Tutaev; and 1%, for the HCS sector and infrastructure.
CI! section
Number of new jobs
(cumuIativeIy)
Amount and key sources of investment expenditures
for 010-01, mIn rubIes
!er job
2011 2013 2015 TOTAL
Federal
budget
Regional
budget
Local
budget
Off-budget
funding
TM! Investment !rogram 360 820 1010 5136,0 0,0 0,0 0,0 5136,0 5,1
Medium business deveIopment 972 2210 2545 8266,3 1467,3 1064,3 0,0 5734,7 3,2
mplementation of projects related to setting up and developing an ndustrial
Park
375 920 1125 3425,0 923,0 967,0 0,0 1535,0 3,0
including creation of the ndustrial Park 5 15 25 1890 923,0 967,0 0,0 0,0
mplementation of projects related to setting up and developing an Agro Park 50 520 630 2000,0 255,0 45,0 0,0 1700,0 3,2
including a production and logistical complex 30 370 480 1200,0 0,0 0,0 0,0 1200,0 2,5
Targeted support of business projects 547 770 790 2841,3 289,3 52,3 0,0 2499,7 3,6
SME support program 140 279 419 341,3 317,1 18,1 2,1 4,0 0,8
Legal and organizational frameworks and research in the area of SME 0 0 0 7,7 7,1 0,6 0,0 0,0
Creation and development of infrastructure for SME support 30 50 70 147,7 138,9 8,5 0,3 0,0
nformation and counseling support for SMEs 0 0 0 8,5 7,9 0,6 0,0 0,0
Furthering competitiveness of SMEs and promotion of their products 0 0 0 2,4 2,4 0,0 0,0 0,0
Financial support to SMEs 110 229 349 154,0 141,0 7,2 1,8 4,0
Support to SMEs in the area of personnel training and retraining 0 0 0 21,0 19,8 1,2 0,0 0,0
Beautification and deveIopment of the tourism potentiaI 151 230 97 564,0 350,0 51,0 30,0 133,0 5,8
Waterfront infrastructure 20 0 42 225,0 168,0 30,0 22,0 5,0
Reconstruction of tourist sites 90 175 0 207,0 170,0 15,0 4,0 18,0
Development of the hospitality industry 15 55 55 110,0 0,0 0,0 0,0 110,0
mprovements in the area 26 0 0 22,0 12,0 6,0 4,0 0,0
HCS and infrastructure 0 0 0 655,9 479,1 95,8 36,0 45,0
Roads 0 0 0 21,9 15,3 3,3 3,3 0,0
SociaI poIicy 0 0 0 81,8 79,0 2,8 0,0 0,0
TOTAL FOR THE TUTAEV MOERNIZATION !ROGRAM 16 9 4071 1067 708 1 71 110 ,7
8 Cfpafer paef r. Tyfaee: peefa 02/02/2010
Structure and amount of funds requested from federaI
sources for financing CI!s
*
FederaI ministry /
program (program proposaI)
010 011-01 01-01
Total FB RB LB Off-bud. Total FB RB LB Off-bu Total FB RB LB Off-bud
I. Ministry of Economic eveIopment
(Subsidies for government support of SMEs, including peasant farms)
9 41 0 86 69 49 8 1 11 797 17 10 1 614
Cofinancing of the IocaI targeted program for SME deveIopment in
Tutaev (YarosIavI obIast)
45 41 2 0 1 114 104 6 1 3 183 172 10 1
Cofinancing from the regionaI targeted program eveIopment of
SMEs in YarosIavI ObIast for 010-01
4 4
Creating and deveIoping an industriaI park 77 77 2134 441 817 876 582 582
Targeted support of SME projects (budgetary funds are incorporated in
activities under the SME support program)
220 13 207 467 23 2 442 32 32
II. Ministry of RegionaI eveIopment 16 6 8 100 100 04 8 0 1081
Investment Fund of the Russian Federation 165 56 8 100 1244 169 25 1050
FT! Housing: Subprogram Upgrading Communal Infrastructure
Facilities
256 135 60 30 31
III. HCS Reform Support Fund 19 7 8 14 81 7 8 1
IV. Ministry of AgricuIture
(State Program for Agriculture Development and Regulation of Markets for
Agricultural Produce, Primary Products, and Foodstuffs for 2008-2012)
07 1 04 79 11 61 6 0
V. Ministry of NaturaI Resources
(Federal Agency for Water Resources)
(Federal subsidies to co-finance state- or municipally-owned capital
construction assets in the regions)
181 16 8 6
VI. Ministry of HeaIth and SociaI eveIopment (Federal Employment
Service)
(Federal subsidies for additional activities to alleviate tensions in the labor
market. Federal subventions to exercise government powers in the area of
employment)
8 79 0 0
VII. Ministry of Transport (Federal Roads Agency)
(Federal subsidies to construct roads to/in new residential neighborhoods)
1
VIII. Ministry of Sports, Tourism, and Youth !oIicy (Federal subsidies to
regional governments to finance spending commitments)
16 9 1 11 111 90 8 10
IX. !rojects without budgetary funding 109 109 460 460 197 197
X. Ministry of Finance (Fiscal equalization grants from the federal budget or
budget loans)
66 0 160 70 197 197
TOTAL FOR ALL SOURCES 914 968 06 9 17 970 188 997 768 447 4 10 19
9 Cfpafer paef r. Tyfaee: peefa 02/02/2010
Funds additionaIIy requested from the MoF are expected to
be used for the foIIowing purposes:
Purchase of land plots and production facilities for setting up the industrial
park, with these to be transferred to government or municipal ownership
Co-financing of work related to the development of design specifications
and estimates for the industrial park
Co-financing of rehabilitation and construction of production, communal,
power, and transport infrastructure needed to implement business projects
10 Cfpafer paef r. Tyfaee: peefa 02/02/2010
ImpIementation of infrastructuraI initiatives wiII start from 011,
whiIe in 010 the focus wiII be on preparatory activities
Source: working group decisions under the project of preparing CIP for Tutaev
ey stages in impIementing the Comprehensive Investment !Ian for Tutaev
010
Stage 1: StabiIization of the situation and organizationaI
arrangements
011 - 01
Stage : ImpIementing
infrastructuraI initiatives
01 - 01
Stage : StabIe
deveIopment
Regulatory and administrative preparations to reduce existing barriers for
SME development
Activities to make amendments to the town's master plan
Adaptation of regional SME programs to local business projects, making
adjustments to the budgets
Detailed elaboration and launch of local retraining programs, elaboration
of programs for co-financing of training for businesses
Preparation and submission of requests for funding under federal
targeted and institutional programs
Stabilizing the situation at the TMP, including restructuring of tax arrears
and transfer of assets to regional ownership
Detailing of the industrial park project, commencement of work to attract
new companies (industrial park residents)
Attracting food processing companies to the existing sites, preparing
feasibility studies for connection to networks
Commencement of projects on beautification and tourism infrastructure
Optimizing municipal expenditures, including work related to communal
services
Carrying out the industrial park project
(provided that there is federal funding)
Completing key projects on preparing
infrastructure for tourism
Undertaking activities to attract and
provide systemic support to new
enterprises in machine building and
manufacturing of food products and
semi-prepared foods
Developing infrastructure for projects in
agribusiness
Pursuing activities on training and
retraining of staff under SME support
programs
Developing social policies and
pursing beautification on the basis
of increased local revenues
Continuing and expanding SME
support activities
Attracting new enterprises to the
industrial park and to the food
processing segment
11 Cfpafer paef r. Tyfaee: peefa 02/02/2010
ImpIementation of the CI! wiII resuIt in reducing dependence of
IocaI economy on the primary enterprise
Source: before 2015: calculations based on presented business projects, 2020:
estimate
Indicator
Meas.
unit
ActuaI !Ian
007 008 009 010 011 01 01 014 01 00
1 Share of workers at core enterprises in the total working-age population % 17% 16% 10% 10% 11% 11% 12% 12% 12% 12%
2 Share of workers at small enterprises in the total working-age population % 6% 6% 4% 5% 5% 6% 7% 8% 8% 8%
LeveI of registered unempIoyment in the municipaIity % % %* 8% 7% 6% 4% % % 1% 1%
4
Total number of newly created temporary jobs during implementation of the
projects (cumulatively)
people - - 1500 1200 1000

TotaI number of newIy created permanent jobs during impIementation of


the projects (cumuIativeIy)
peopIe - - - 1168 16 171 49 914 971 0
6 Average monthly wage of workers at large and medium enterprises rubles 9403 11521 10524 11800 13200 14800 16600 18600 20800 28000
7
Amount of goods, works, and services shipped/completed/provided by
enterprises in traditional industries
Mln
rubles
3733 3623 1462 2903 3321 6348 8292 9916 11316 15500
8
Share of traditional sectors in total local amount of shipped goods, completed
works and provided services
% 63% 58% 38% 55% 56% 51% 49% 48% 47% 47%
9
Amount of goods, works and services shipped/completed/provided by core
enterprises
Mln
rubles
2990 2906 1363 3464 4679 6356 8166 9671 11017 14000
10
Share of core enterprises in total local amount of shipped goods, completed
works and provided services
% 54% 51% 39% 51% 52% 46% 45% 44% 43% 40%
11
Share of small enterprises in total local amount of shipped goods, completed
works and provided services
% 6,3% 6,7% 9,5% 6% 6% 4% 4% 4% 5% 7%
12 Number of small enterprises in the municipality pieces 420 440 400 420 460 500 540 560 580 600
13 Amount of extra-budgetary investments
Mln
rubles
1732 4027 3341 1113 675 165 517
14
TotaI additionaI revenues from the projects deIivered to the municipaI
budget
Mln
rubles
106 171 69 9 89 448 600
15 Share of town's own revenues in total local budget revenues % 38% 53% 26% 29% 35% 40% 45% 50% 55% 60%
* Low average yearly unemployment rate in 2008 is explained by the fact that most individuals
who had been laid off in late 2008 received the unemployed status in 2009.
ANNEXES
!roject description
!roject
participants
Tutaev Motor Plant
Yaroslavl Oblast Government
ImpIementatio
n period
2010-2014
!roject
purpose
Thorough upgrading of operations for producing iron castings,
new-generation gearboxes, and heavy duty diesel engines using
state-of-the-art foreign technologies; assimilation of
manufacturing of new products for existing and potential clients
!roject
products
Sophisticated (3-6 categories of complexity) iron castings of
basic engine parts from grey and high strength cast iron with
modern specifications.
The new type and size range of gearboxes for medium and
heavy duty trucks manufactured in Russia and CS.
Heavy duty multipurpose diesel engines, classes V6, V8, V10,
V12, in the 4501500 hp range; gas-fired reciprocating engines
for cogeneration and power units.
Consumers of
project
products
Engine works and car makers in Russia and Belarus
Structure of
investment
expenditures
Activities
MiIIion
rubIes
Project works 965
Purchase of primary and ancillary equipment 3922
Equipment installation and checkout 249
TotaI 5136
Forms of
government
support
Clearance of tax arrears to the regional and local budgets out of
receipts from selling unutilized land plots and premises for
setting up the industrial park
Provision of a VEB guarantee for an amount of about 5,100
million rubles (US$170 million in the ruble equivalent in
accordance with the CBR exchange rate) to back a Deutsche
Bank loan for purchasing German-made equipment
ey project indicators
Amount of investments TotaI 010 011-
01
01-
01
AII sources: 5136 874 3165 1097
- FederaI budget 0 0 0 0
- RegionaI budget 0 0 0 0
- LocaI budget 0 0 0 0
- Extra-budgetary sources 5136 874 3165 1097
For reference:
SaIes revenues 9,654 million rubles in 2015
!rofit (Ioss) before tax
2,273 million rubles in 2015
!ayback period 4 years
!roject impacts
TotaI 010 011-
01
01-
01
New jobs 1 010 130 500 380
Tax payments 3 589 320 866 2403
incIuding to the IocaI
budget
1 056 77 256 723
!roject on Reengineering of !roduction Operations at the TM!: information sheet (project passport)
Stage of activity
010 011 01 01 014
1 4 1 4 1 4 1 4 1 4
!roject works, incIuding R&
!urchase of primary and anciIIary equipment
Equipment instaIIation and checkout
!ersonneI training
Certification of production operations
Commencement of production
ey impIementation stages of the !roject on Reengineering of !roduction
Operations at the Tutaev Motor !Iant
!roject description
!roject
participants
Yaroslavl ndustrial Park
Yaroslavl Oblast Government
ImpIementatio
n period
2010-2015
!roject
purpose
Set up an industrial park on the basis of assets of the Tutaev
Motor Plant and attract 10-12 new enterprises, each employing
up to 250 workers on average.
!roject
products
Production and administrative facilities of class B with a total
floor space of 219,300 sq. m., transport, power and services
infrastructure facilities located on land plots totaling 39.7 ha.
Supply of electrical/thermal energy, water, natural gas, sewage
services, parking, warehousing and logistical services
Consumers of
project
products
(markets)
Small and medium enterprises in light to medium duty machine
building targeting spare parts markets and capable of providing
stable production output, long-term demand for their products,
ease of manufacturing and high consumer properties of the
products.
Structure of
investment
expenditures
Activities
MiIIion
rubIes
Buyout of basic assets (land plots and production
premises)
600
Project works 82
Preparation of the construction site,
communication lines, connections to resource
supply sources
168
Construction (rehabilitation or capital repairs) of
production facilities
2 946
TotaI 3 796
Forms of
government
support
Financing of infrastructure construction, issuance of government
guarantees to residents of the park to take out loans for
equipment purchases; granting tax privileges to residents with
respect to taxes going into the regional budget.
ey project indicators
Amount of investments TotaI 010 011-
01
01-
01
AII sources 1890 632 1258 0
- FederaI budget 923 482 441 0
- RegionaI budget 967 150 817 0
- LocaI budget 0 0 0 0
- extra-budgetary sources 0 0 0 0
For reference:
MoE 441 0 441 0
MoF 482 482 0 0
SaIes revenues 1,333 million rubles in 2015
!rofit (Ioss) before tax
-158 million rubles in 2015
!ayback period 12.1 years
!roject impacts
TotaI 010 011-
01
01-
01
New jobs 25 0 10 15
Tax coIIections (incIuding
resident companies)
2122 12 422 1688
incIuding to the IocaI
budget
82 6 21 55
Tutaev IndustriaI !ark !roject (without resident companies): information sheet (passport)
Stage of activity
010 011 01 01 014 01
1 4 1 4 1 4 1 4 1 4 1 4
SeIection of a consuItant and signature of the contract (CI!
Master)
SeIection of a design organization and signature of the
contract
eveIopment of design specifications and estimates for
!hases 1 and rehabiIitation, state assessment of the
project
eveIopment and approvaI of the project business pIan
!urchase of Iand pIots and reaI estate assets by the
YarosIavI obIast government (with simuItaneous cIearance
of TM! tax arrears)
Adoption of a decision on federaI financing (receiving a
subsidy from MoE)
IncIusion of the Tutaev IndustriaI !ark !roject in the Iist of
priority investment projects in YarosIavI obIast
SeIection of a prime contractor for construction and
instaIIation works and signature of contract
!hase 1 rehabiIitation
!hase rehabiIitation
eveIopment of design specifications and estimates for
!hase construction, state assessment of the project
!hase construction (4 sites)
eveIopment of design specifications and estimates for
!hase 4 construction, state assessment of the project
!hase 4 construction
eveIopment of design specifications and estimates for
!hase construction, state assessment of the project
!hase construction
SeIection of and signature of faciIity Iease contracts with
resident companies of the industriaI park
Organization of production operations and warehousing
faciIities by resident companies
ey impIementation stages of the Tutaev IndustriaI !ark !roject
Agro !ark !roject (without residents): information sheet
!roject description
!roject
participants
Yaroslavl ndustrial Park
Yaroslavl Oblast Government
ImpIementatio
n period
2010-2012
!roject
purpose
Provide support to small rural businesses: improve access of
small agribusinesses to credit and subsidies and increase the
level of equipment availability to farms. Create new jobs in rural
localities.
!roject
products
Provision of services on leasing land plots with utility system
connections for siting processing facilities for agricultural
produce, services on leasing warehouse premises, and a set of
infrastructural services.
Consumers of
project
products
(markets)
Social Catering Factory located in the Tutaev municipality in the
area adjacent to the Agro Park. Also it is expected that the line
of products produced in the Agro Park will be included in the
product mix of food retailers in Yaroslavl oblast and neighboring
regions.
Structure of
investment
expenditures
Activity
MiIIion
rubIes
Buyout of land plots 1,5
Project works 28,5
Preparation of the construction site,
communication lines, connections to resource
supply sources
90,0
Construction (rehabilitation or capital repairs) of
production facilities, purchase of equipment
180,0
TotaI 300,0
Forms of
government
support
Financing of infrastructure construction, granting tax privileges
with respect to taxes going into the regional budget, provision of
land plots
ey project indicators
Amount of investments TotaI 010 011-
01
01-
01
AII sources: 300 30 270 0
- FederaI budget 255 20 235 0
- RegionaI budget 45 10 35 0
- LocaI budget 0 0 0 0
- extra-budgetary sources 0 0 0 0
For reference:
MoF 255 20 235 0
SaIes revenues 311 million rubles in 2015
!rofit (Ioss) before tax
40.5 million rubles in 2015
!ayback period 5 years
!roject impacts
TotaI 010 011-
01
01-
01
New jobs
Tax payments
incIuding to the IocaI
budget
Stage of activity
010 011 01
1 4 1 4 1 4
!roject works
!reparation of the construction site, communication Iines,
connections to resource suppIe sources
Construction (rehabiIitation or capitaI repairs) of production and
auxiIiary premises
Acquisition of primary and anciIIary equipment
Equipment instaIIation and checkout
!ersonneI training
Certification of production operations
Commencement of service deIivery
ey impIementation stages of the Agro !ark !roject
SociaI Catering Factory !roject in the Tutaev municipaI district: information sheet
!roject description
!roject
participants
Sodexo Eurasia company
Yaroslavl Oblast Government
ImpIementation
period
2010-2012
!roject
purpose
Set up a system for manufacturing quality products for
providing food to social sector establishments on the
basis of a centralized industrial method
!roject
products
Ready chilled meals and frozen semi-prepared meat,
poultry, cereal and vegetable foods for preparing meals
for kids and youths at preschools, general education
schools, primary and secondary vocational education
establishments, higher education institutions, health
facilities, and other social sector establishments.
Consumers of
project
products
(markets)
Educational establishments in Yaroslavl oblast and, in
particular, in the Tutaev municipal district
Structure of
investment
expenditures
Activity
MiIIion
rubIes
Project works 66,0
Construction and installation works 159,0
Supply of manufacturing equipment to the
Social Catering Factory
225,0
Construction of logistical terminals and
auxiliary premises
300,0
Upgrading school kitchens 450,00
TotaI
Forms of
government
support
Financing of infrastructure construction, granting tax
privileges with respect to taxes going into the regional
budget, provision of land plots
ey project indicators
Amount of investments TotaI

AII sources: 1200 0 0 0


- FederaI budget 0 0 0 0
- RegionaI budget 0 0 0 0
- LocaI budget 0 0 0 0
- extra-budgetary sources 1200 80 920 200
SaIes revenues 2,112.1 million rubles in 2015
!rofit (Ioss) before tax
278.7 million rubles in 2015
!ayback period 5 years
!roject impacts
TotaI

New jobs 480 0 370 110


Tax payments 225 0 52 173
incIuding to the IocaI
budget
21 0 5 14
Stage of activity
010 011 01
1 4 1 4 1 4
!roject works
!reparation of the construction site, communication Iines,
connections to resource suppIe sources
Construction (rehabiIitation or capitaI repairs) of production
premises
Acquisition of primary and anciIIary equipment
Equipment instaIIation and checkout
!ersonneI training
Certification of production operations
Commencement of manufacturing
ey impIementation stages of the SociaI Catering Factory !roject
1 Cfpafer paef r. Tyfaee: peefa 02/02/2010
TM!
IndustriaI park
Tutaev: Investment Map
Source: analysis performed during
preparation of the CIP
3
3
12
5
6
7
11
10
4
9
8
2
2
Existing industrial enterprises
(other than TMP)
Potential sites for production
operations
Potential buildings for siting production
operations
Existing food processing enterprises
Potential sites for food processing
enterprises
Potential zones for residential and
administrative construction
N S
Cfpafer paef r. Tyfaee: peefa 02/02/2010
The main focus of retraining programs wiII shift to the
needs of business
Source: decisions of the working group for preparing CIP for Tutaev
Education and
retraining
programs
Support to the
unempIoyed
!roactive training
Retraining for the
unempIoyed
Proactive training programs to be carried out
together with enterprises that plan to lay off workers
Professional courses for new entrants to
business
Currently there is a project under way to set up a
retraining center on the basis of Vocational
School No. 41
The CP incorporates training of up to 100 people
every year under the small business program
Support to
business
Subsidizing
educationaI
expenditures
Targeted educationaI
programs
Targeted professional training programs, as
requested by enterprises, delivered on the basis of
the Association of Higher Learning nstitutions in
Yaroslavl Oblast
Program for subsidizing direct expenditures of
enterprises for training of their staff (internships and
education outside the region, educational
certificates)
The CP envisages coverage of internship costs for
10 individuals (360,000 rubles per person)
Cfpafer paef r. Tyfaee: peefa 02/02/2010
aroslavl Oblast Government
To manage impIementation of the Tutaev program, the CI! irectorate wiII be
set up within the regionaI government and a Coordinating CounciI at the
IocaI IeveI
Source: decisions of the working group under the project of preparing CIP for Tutaev
Governor of the
region
eputy Governor of
the region
CI! irectorate
(within the Economic
Development Dept)
mplementing organizations
at the regional government
Agency for nvestment Projects,
Yaroslavia Guarantee Agency, and
others
Tutaev Coordinating
CounciI
Entity RoIe in CI! impIementation management
Governor Define strategic goals
Communicate with federal government
eputy Governor
Detail strategic goals and objectives
General organization of work for monotowns in the region
Coordinate work between various entities involved in the
CP implementation process
Exercise oversight over achievement of strategic goals
irectorate for
Comprehensive
Investment !Ians
(CI!s)
Design and implement regional programs for monotowns
under their CPs
Communicate with federal agencies at the working level
Prepare annual budgets and requests for federal funding
Coordinate work of local administrations
Monitor CP implementation indicators
ImpIementing agencies
at the regionaI
government
mplement business support programs
mplement infrastructural projects
Marketing of investment projects
Provide advisory and analytical support for Yaroslavl oblast
government
Tutaev Coordinating
CounciI
Coordinate work of the municipalities related to CP
implementation at the local level
Work with investors and existing businesses
Provide advisory and analytical support
Administration of
the Tutaev
municipal district
Administration of
the town of Tutaev
Representatives of
TMP, business
community, and
municipal council
New entities Existing entities