Irina Makieva "Krasnokamensk has every chance to obtain PDA status

"Krasnokamensk has every chance to obtain Priority Socio-Economic Development Area (PSEDA) status", - commented the head of RF Government Commission on Economic Development and Integration Irina Makieva, following the results of the visiting session `of the Commission’s Working Group on Modernizing Mono Cities.

A visit of the Working Group on Modernizing Mono Cities to the "Uranium Capital" of Russia is another result of the joint efforts of the Government of Zabaikalsky Krai and ARMZ Uranium Holding Co., aimed at the development of Krasnokamensk. Earlier Krasnokamensk was listed as single-industry municipalities of the 1st category.

"We support applications for PSEDA status only from the territories with real investors and real projects, as well as having the infrastructure required to attract them, where next to the backbone enterprise, stable small and medium businesses may appear. We have witnesses these projects here, as well as the most serious intentions of the investors,"- said Irina Makieva.

The working day of the Commission began with a detailed acquaintance with the implemented and promising investment projects. In particular, Irina Makieva visited meat-packing plant Daursky and rape processing factory under construction, as well as the construction site of the second phase of municipal wastewater treatment facilities. Then the final meeting was held at the office of the city’s backbone enterprise Priargunsky Industrial Mining and Chemical Union (PJSC PIMCU, a part of the control loop of ARMZ Uranium Holding Co. / JSC Atomredmetzoloto). It was attended by the Governor of Zabaikalsky Krai Konstantin Ilkovsky, General Director of ARMZ Uranium Holding Co. Vladimir Verkhovtsev, and heads of Russian and foreign companies planning to invest in the creation of new enterprises in Krasnokamensk.

"Krasnokamensk is a modern city that lives a full and active life. Today PIMCU is working at full speed, and our task is not to replace the uranium chain, but using the existing capacities and infrastructure, and PSEDA framework, to maximize the industrial development of the city. This will allow us to move away from dependence on the world uranium prices, "- said the head of the region.

The main project to support stable development of PIMCU for decades to come is the construction of the uranium mine No.6. It was introduced by the First Deputy Chairman of the Government of Zabaikalsky Krai Alexei Chemetov. He said: "Our main goal is to show the government working group that without preservation of the core industry the substitute industries will not have any multiplier effect. Speaking about substitute industries, we stress the fact that Krasnokamensk is a special mono city, and it must be approached with special solutions." Using the example of meat-packing plant Daursky, he told about the effectiveness of the decisions made with regard to the state support - compensation for the cost of equipment and interest rate on loans raised for the reconstruction of the meat-packing plant. Indeed, the enterprise is successfully developing, and currently designing pig farm for 4400 sows worth about 1.5 billion rubles.

General Director of ARMZ Uranium Holding Co. Vladimir Verkhovtsev said that the socio-economic development program of Krasnokamensk is being implemented under the agreement between Rosatom and the Government of Zabaikalsky Krai. He also presented investment projects aimed at setting up new industrial facilities, implemented by ARMZ Uranium Holding Co. in cooperation with Russian and foreign investors. These include the construction of a cement plant, timber processing plant, coal-chemical project, expansion of CHP capacity. "Frankly, some investors are expecting land and income tax relief, which will be provided in case Krasnokamensk obtains PSEDA status. These arrangements will significantly simplify and speed up the process of creating new enterprises here, "- said Vladimir Verkhovtsev.

Tomtorskoye rare-earth metal ore project, implemented by Polymetal has already started. Project investments will amount to 110 million dollars. Details were given by General Director of Krasnokamensk Hydrometallurgical Plant Alexander Zarubin: "The main factors to choose Krasnokamensk as our site were the availability of necessary electricity, heat and steam capacities at PIMCU, as well as presence of utilities and possibility to connect to them. Sufficient capacity of Krasnokamensk railway station enables us to accept ore trains and dispatch finished products, including export deliveries. Of course, the availability of qualified personnel is also important."

Pre-feasibility study for the cement plant has been already prepared; the construction is scheduled to begin in 2016. Coal-derived diesel fuel and wood processing projects are actively studied. According to the Chinese investors attending the meeting, the main advantage of Krasnokamensk is its proximity to the border, which opens up a wide market. 

The meeting concluded with preliminary decisions on the procedure of government funding of engineering infrastructure and utilities. "We believe that the construction of the second phase of water treatment facilities should be carried out with involvement of the Fund for the Development of Housing and Public Utilities, and concessional financing with involvement of the Fund for Modernization of Mono Cities will be available for the construction of the third phase of the treatment facilities, after the new investment projects have been started. As to power grids and water lines, the suggested procedure is as follows: after 900 new jobs have been created, government funding of up to 1 billion rubles can be expected,"- explained the head of the Working Group on Modernizing Mono Cities Irina Makieva.