Transcript Presentation

THE MURMANSK REGION INVESTMENT
STRATEGY UP TO YEAR 2020 AND
FOR THE PERIOD UP TO YEAR 2025
Ground for elaboration of Investment Strategy
Amplification of principal provisions of the Murmansk Region Social and Economic
Development Strategy up to year 2020 and for the period up to year 2025
Shaping system of long-term objectives for investment activity as well as the most efficient
ways of their achievement
Implementation of May’s Decrees of the President of the Russian Federation
Amplification of principal provisions of the North-West Federal District Social and Economic
Development Strategy for the period up to year 2020
Implementation of the National Arctic policy of the Russian Federation, including The
Strategy of Development of the Arctic Zone of the Russian Federation and National Security
Protection for the period up to year 2020
Implementation of the Standard of activities of the executive authorities of the subject of the
Russian Federation on the provision of congenial investment climate in the region
2
Fixed capital investments behavior
90
25,8
26,5
30
80
70
21,9
25
21,2
20,6
60
20
16,5
50
15
40
30
10
20
41,7
38,6
56,0
72,4
79,6
0
46,8
5
10
2008
2009
2010
2011
2012
2013
Volume, bn roubles
0
As percentage of Gross Regional Product
Note: evaluated data used for the period of 2013.
3
Branch analysis of the Murmansk region development
Priority economic activities
Mining industry
Aquaculture, fisheries and fish processing
Tourism
Organizations’ fixed capital investments structure behavior (exclusive of
small business entities) by economic activities (in percents vs total)
4
Murmansk region positions in the international and Russian
ratings and in investment climate reports
In the Russian regions investment attractiveness rating the region was referred to IC5
group (average investment attractiveness - second level)
The 4th place in the North-West Federal District according to the 2012-2013 Russian
regions investment-grade rating
The 11th place among 39 Russian regions in the rating for the index of conditions for
small and medium business development
The city of Murmansk held the 26th place In the World Bank’s Doing business
international rating
The 43rd place among 83 Russian regions in the rating of regions for development of
private-public partnership (PPP)
5
SWOT analysis of Murmansk region investment attractiveness
S (STRENGTHS)
Advantageous geographical location
Availability of the only year-round deep-water sea port in the western part of the
Arctic Zone of the Russian Federation along with an access railway and an export
processing zone at the port territory as well as nuclear-power icebreakers base of
“Atomflot”, high transportation and transit potential
Abundance, unique character and diversity of the natural resources base
High industrial development level
Energy redundancy
Export-oriented regional economy
Unique tourism and recreation potential, profuse cultural and historical heritage of
the Laaps and the Kola Bay coast dwellers.
High-quality nature of human capital
Significant groundwork in the sphere of high technologies which have reference to
the key drivers for development of new technological mode
Relative maturity of effective system of work with investors
Accumulated experience and possibilities to manufacture ecological product
О (OPPORTUNITIES)
Consolidation of role and significance of Arctic areas and natural resources in the
system of global economic policy and international commerce
Development of Murmansk transport hub and positioning of the hub as a western
junction point of the Northern Sea Route
Retargeting of the regional economy towards new markets, first of all towards the
Asia-Pacific region
Positioning of Murmansk region as a Strategic Center for development of the Arctic
Zone of the Russian Federation
Consistent increase of energy efficiency of the regional economy and social sphere
Promotion of realization of the home consumers’ market potential
Intensification of near-border cooperation
Attraction of qualified migrants, investments, technologies and labor management
procedures to the regional economy and social sphere.
Introduction of advanced forms of spatial development into the regional economy
Transformation of the social services sector into a new driver for consistent growth
of the regional economy
Initiation of intradepartmental, intraregional and international environmental and
innovative projects
W (WEAKNESSES)
High risks for economic activity and uncomfortable living conditions
High physical and functional depreciation of fixed funds
Export-oriented raw-material developmental pattern
Dependence of the leading mining industry manufacturers on the policy of the
holding companies located beyond the region’s territory
Large part of black oil fuel in the fuel and energy balance structure
Low development potential of the consumer goods and services production sector
and low home market capacity
Militarized nature of the Murmansk region territory and of adjacent offshore zones
Unsteadiness of demographic processes; tensity and imbalance of the labor market
Inadequate commercialization of findings of investigations and scientific research
Increase of the national internal debt of Murmansk region
Existence of ecological problems
Т (THREATS)
Crisis phenomena in the global economy
Intensification of the international legislative, technological and other limitations for
Arctic development
Extension of economic penalties towards the Russian Federation in the near term
Existence of the powerful centers of attraction of the financial, migration and
innovation flows in the neighboring regions of Russia and the countries of FennoScandinavia.
Expansion of the import products and services in the home market
Drift of the high-qualified personnel to other regions and countries
Potential reduction of the growth rate of the raw materials sector of Murmansk
region
An imminent conflict between individual activities based on competition for
exploitation of various nature resources within the same geo-locations
Risks of transboundary transfer of oil and gas pollutants to the territory of
Murmansk region and adjacent water space of the Barents Sea
Non-sustainability development of small and medium businesses, related to high
risks for economic activity and uncomfortable living conditions and necessitate to
assume special targeted measures on the part of the Governments of the Russian
Federation and Murmansk region in order to provide state support to the regional
economy
Risk of availability of credit resources most notably for small and medium
businesses
6
Scenarios of implementation of various strands of investment
policy in Murmansk region (TOWS analysis)
W (WEAKNESSES)
S (STRENGTHS)
О (OPPORTUNITIES)
Т (THREATS)
SO
ST
"Maxi-Maxi" strategies, use of strong areas for maximum output from the
"Maxi-Mini" strategies, use of strong areas for threats minimizing
provided opportunities
(target scenario)
(faster growth scenario)
Priority development under the conditions of the world economy revival and growing
Endue Murmansk region with attributes of a metropolitan city in the Arctic Zone of demand at the world markets particularly for the products and services produced in
Murmansk region.
the Russian Federation and the Arctic region as a whole.
Murmansk region is a business, operational and strategic center of the Arctic Zone of
the Russian Federation and "Arctic gateways of Russia". Intensive development and
introduction of perspective institutional, organizational and technological innovations,
inclusive of: high-level and waste-free technologies for processing water biological
resources and marine genetic resources;
energy- and resource-saving technologies;
technologies for adaptation to the global climatic changes of any nature;
technologies for use of the renewable energy sources;
nanotechnologies;
technologies for creation of new construction materials adapted to Arctic conditions;
other technological innovations.
Spatial structure optimization of the regional economy, particularly of a network of the
financial and public non-financial institutions for development (export processing
zones, regional clusters, priority and territorial development zones, technology
transfer centers, technological parks, centers for energy-saving facilitation, business
incubators, industrial parks, sophistication and mastership centers etc.) as well as of
innovative infrastructure components in whole.
WO
WT
"Mini-Maxi" strategies, weak areas minimization through use of the
"Mini-Mini" strategies, weak areas and threats minimization
provided opportunities
(stabilization scenario)
(base scenario)
Overcoming (minimization) of the negative consequences of the global economy
Stabilization and holding of the gained positions, shaping of the terms for a deceleration and shaping of the terms for a starting breakthrough at a stage of the
starting breakthrough at a stage of the repeated global economy growth under repeated global economy growth,
the conditions of restricted investment resources, aggravation of competition Abandonment of the raw materials export model backed by extension of mining and
along with absence of growth of the demand at the world markets and high simple raw materials processing, low rates of infrastructure modernization and
volatility of the same.
deterioration of competitive ability of manufacture which in total results in a decreasing
Orientation towards infrastructural and institutional rearrangement of the regional trend of the GRP growing rate under the conditions of investment activity fall, priceeconomy before the boosted breakthrough in the moment when the global related competition increase and reduction of demand for the Murmansk region output
economy will start growing
at the key markets. Orientation of the regional investment policy towards time efficient
Orientation of the regional investment policy towards costs reduction and the control ensuring rapid localization and subsequent elimination of the negative
regional economy competitive growth by means of technical and technological re- phenomena.
equipment, decrease of energy and resources consumption by the manufacture,
improvement of the power and transportation complexes, development of
management practices, advancement of professional qualifications and extension
of competencies of the intellectual resources based on human development
programs.
7
Objectives and indicators of Investment Strategy
Principal objective of Investment Strategy:
ensuring the maximum rate of investments inflow to the Arctic Zone of the Russian Federation
Creation of institutional conditions for consistent growth and development
Infrastructure’s development
Ensuring the human resources investment activity
Providing innovation-based development of economy and social sphere of Murmansk region
Technical reequipment and modernization of priority sectors and development of newly
created activities
Target description
Gross regional output per capita (th. rubles)
Murmansk region position in the Russian regions investment attractiveness rating
by the National rating agency
2016
493
IC4 group (average
investment
attractiveness – first
level)
2020
982
IC3 group (high
investment
attractiveness – third
level)
2025
2018
IC2 group (high
investment
attractiveness –
second level)
Murmansk region position in the Russian regions investment rating by the Expert RA
(rating agency)
«3B1 – reduced
potential – moderate
risk» group
«3В1 – reduced
potential – moderate
risk» group
«2А – average
potential – minimum
risk» group (top ten
positions)
among first 15 cities
among first 12 cities
among first 10 cities
98.4
201.3
469.5
Murmansk city position in regard of business environment in the Doing business
international rating by the World Bank
Fixed capital investments volume (exclusive of budgetary funds, bn rubles)
8
Objectives and indicators of Investment Strategy
Objective 1. Creation of institutional conditions for consistent growth and
development (comprised of 24 tasks)
Achieved by measures implementation towards:
improvement of investment process management system;
improvement of the regional investment legislation;
developing regional programs and projects, and making changes in the existing
programs;
increasing the information transparency of the investment process;
Improvement of cooperation among state, regional and municipal government’s
mechanisms;
reducing the administrative barriers;
supporting small, medium and innovative enterprise.
Target description
Implementation efficiency assessment of the introduced components of the investment Standard of activities of
the Murmansk region executive bodies on the provision of congenial investment climate in the region on the part
of the community of entrepreneurs (points)
Implementation efficiency assessment of the program for support of small and medium business in Murmansk
region on the part of the community of entrepreneurs (points)
Turnover of the products and services produced by the small enterprises, inclusive of micro-enterprises and
private entrepreneurs (% against total)
Number of small and medium business entities operating at the territory of Murmansk region (% against basic)
Volume of direct foreign investments (% against basic)
The ration between the national debt volume of Murmansk region and the total annual regional budget income
volume (exclusive of the uncompensated receipts volume, % against basic)
PPP development level (%)
2016
7
2020
8
2025
8
7
8
8
124
160
2.1 fold
112.4
130
150
120
80
130
70
150
69
55
77
88
9
Objectives and indicators of Investment Strategy
Objective 2. Infrastructure’s development
(comprised of 16 tasks)
Achieved by measures implementation
towards:
transport infrastructure
power infrastructure;
information and telecommunications
infrastructure;
social infrastructure;
communal infrastructure.
Target description
2016
2020
2025
Index of the fixed funds replacement (%)
6.5
14.3
16.4
Deadline for the consumers connection (up to 150 kW) starting with receipt of an application for utility
connection and up to the date of signing a certificate on utility connection (days)
45
40
40
Maximum number of procedures necessary for getting a building permit for a standard capital construction
object for administrative and social use
13
11
11
Maximum term of accomplishment of all of the procedures necessary for getting a building permit for a
standard capital construction object for administrative and social use (days)
90
56
56
Maximum number of stages (procedures) necessary for utility connection to the electric-power
infrastructure facilities
6
5
5
10
Objectives and indicators of Investment Strategy
Objective 3. Ensuring the human resources
investment activity (comprised of 19 tasks)
Achieved by measures implementation
towards:
implementationion of forecast & planning for
regional labor market development;
ensuring a balance in the regional labor market;
human investment, retraining and enhancement of
competencies of the economically active
population
Target description
2016
2020
2025
Proportion of students in the state (municipal) general educational institutions which have an opportunity to
study according to the principal up-to-date requirements, against total number of students (percents)
88
96
97
Proportion of full-time graduates of the professional educational institutions, which were employed within
one year after finishing education in the obtained specialty (profession), against total number (percents)
51.1
55.9
56.4
Proportion of high-qualified employees against total number of qualified employees in the region (percents)
30.6
33.3
36.6
11
Objectives and indicators of Investment Strategy
Objective 4. Providing innovation-based
development of economy and social sphere of
Murmansk region (comprised of 7 tasks)
Achieved by measures implementation towards:
creating and developing mechanisms of complex
support of innovative activities at all stages of the
innovation process;
development of the innovative infrastructure,
including the support infrastructure for small and
medium enterprise;
coordinating the regional cluster initiatives.
Target description
2016
2020
2025
Proportion of organizations introducing technological innovations against total number of assessed
organizations (percents)
11,5
13,7
14,5
A share of output from high-technology and science-intensive industries against gross region output
(percents)
13.5
16,0
18,1
12
Objectives and indicators of Investment Strategy
Objective 5. Technical reequipment and modernization of
priority sectors and development of newly created
activities (comprised of 17 tasks)
Achieved by measures implementation towards:
mining complex
fishing complex
agro-industrial complex
commercial exploitation of hydrocarbon potential of arctic
continental shelf
tourism and recreation
Target description
Index of production associated with “Mining operations” activity (% against basic)
Index of production associated with “Metallurgical production and finished metal products manufacture”
activity
(% against total)
Index of production associated with “Production of transport means and equipment” activity (% against
basic)
A share of newly created activities in the production structure (% against basic)
Volume of artificial fish breeding by fish-farming enterprises (th. tons)
Growth rate of home and inbound tourist flow in Murmansk region (% against total)
Growth rate of volume of the fee-based tourism-associated services rendered to the citizens in Murmansk
region (% against basic)
2016
2020
2025
111.5
150
4 fold
106.3
130
190
135.6
2 fold
4.3 fold
-
-
34.7
38.4
83.9
98.9
-
156.4
2 fold
108.0
122.8
145.2
13
Formation of clusters and allocation of industrial growth centers
New energy cluster
(Purpose: diversification of energy balance of the region, the
expansion of electricity production based on renewable
sources)
Cluster of Nordic design and traditional crafts
(Purpose: development of small and micro enterprises in the service sector, national and art
crafts, ensuring the release of their products outside the regional market)
Regional maritime service cluster
(Purpose: creation of a service core to ensure maritime navigation along the Northern Sea Route)
Manufacturing and transport and logistics cluster
(Purpose: increase in export of transport services based on a year-round deep-sea hub integrated into the international transport system)
Tourism and recreation cluster
(Purpose: development of branded tourist products (travel brands) of Murmansk region and improvement of the competitiveness of the industry of tourism and recreational services
in the international market)
Fish industry cluster
(Purpose: preservation and enhancement of the resource potential of fisheries and implementation of measures for the modernization and commissioning of new capacities for deep processing
of aquatic biological resources, and marine biotechnologies with the new technological and organizational basis)
2014-2016
2017-2020
2021-2025
Educational cluster
(Purpose: development of continuing and further education system, formation of motivational incentives, retraining and enhancement of competencies of the economically active population)
Mining and chemical and metallurgical cluster
(Purpose: the revival of a rare metal industry of Russia based on the mineral resource base of the Murmansk region)
Technological cluster for Arctic offshore mining
(Purpose: allocation of leading positions to Murmansk region in the field of service, personnel and technological support in hydrocarbon production on the continental
shelf of the Barents Sea)
Arctic technology innovation cluster
(Purpose: adaptation of existing and emerging technologies to the Arctic conditions and bringing
them to the stage of commercial appeal and commercial operation)
Export-oriented food cluster
(Purpose: entry into Russian and foreign markets with
a recognizable brand of organic foods under the
"premium” brand)
Financial mechanisms for the implementation
of the Investment Strategy
Total financial costs on the implementation of the Strategy (including activities and
investment projects) are 449 billions rubles, including costs from federal, regional
and municipal budgets as well as extra-budgetary funds
billions rubles
Financing sources:
government programs of the Russian
Federation and Murmansk region
277,3
145,5
private investments
foreign investments
RB
4,0
22,1
MB
FB
EBF
15
Expected results of implementation of the Investment Strategy
The city of Murmansk would take place in first among first 10 cities
of Russia in regard of business environment in the international and
Russian ratings
Murmansk region would play a leading role in realization
of the national interests of the Russian Federation in the
Arctic region
Murmansk would strengthen positions of head
scientific, skilled, cultural, business and financial
center of the Arctic, as well as leading core of
maritime activities service providing in the Arctic
Zone of the Russian Federation
16
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