Investment message of the Rostov Region Governor

Investment message of the Governor of the Rostov Region - 2018

Good afternoon, dear colleagues!

I welcome you to the annual governor investment message.

This year it is voiced in new conditions:

•     The President of Russia has identified 9 national development goals for the country until 2024.
•     We at the regional level have formed the Development Strategy of the Rostov Region until 2030.

The range of tasks is ambitious and very wide.

Therefore, I propose to look at investments in the broadest sense of the word.

What is an investment?

This is any investment of values ​​aimed at capital gains.

And what is capital?

These are financial, tangible and intangible assets - objects of intellectual property - and, of course, these are people, that is, human capital.

In all the fundamental strategic documents, the person is at the forefront:

•     all nine national goals of the country are connected with the person;
•     the main priority of the regional Strategy-2030 is also a person.

Investing in a person is considered one of the most profitable, but from the point of view of accounting, investments are not considered.

Yes, private investment pursues the sole commercial interest of the investor. But the state’s investments, in the final analysis, should ensure precisely the growth of the quality of life of people.

That is what I would like to emphasize in this message.

I'll start with a brief summary.

And according to tradition, I will voice them in the context of three policies: spatial, social and economic.

The first one.

We began to change the space. In the broad sense of the word.

Thanks to the World Cup, we not only acquired unique competencies, but also received a number of new infrastructure facilities:

•     Platov airport complex, with a record for the entire history of Rostov aviation - more than three million passengers in the first year of operation;
•     a sports cluster with a central link - the Rostov-Arena stadium,
•     modern transport and engineering infrastructure.

This is not only the popularization of sports, but also the opportunity to make a powerful leap in the economy of the region.

One cannot but recall other results of our work with investors:

•     the 4th power unit of the Rostov NPP was launched,
•     launched the implementation of 3 large investment projects in wind energy,
•     the gas distribution stations Gukovo and Shakhty-2 were reconstructed (these are 2 objects worth almost 5 billion rubles),
•     a high-pressure gas pipeline to the new airport was commissioned,
•     completed the construction of 69 km of railway tracks in the Millerovsky and Chertkovsky districts,
•     updated rolling stock of commuter trains,
•     preparatory work has begun on the construction of the Bagaevsky hydroelectric complex,
•     Engineering and transport infrastructure in cities and districts of the region are being modernized.

All the monotowns of the region - Gukovo, Donetsk, Zverevo - received the status of territories of priority social and economic development.

Second, social policy.

For the first time in 5 years, there has been a decrease in mortality, the region has entered the top ten in reducing mortality from respiratory diseases.

A new outpatient hemodialysis center has been opened in Volgodonsk. The creation of such centers in the Millerovsky and Salsky districts continues.

Since the beginning of the year, more than 2200 additional preschool places have been created. Reconstructed schools. A new school was built in Donetsk.

Several stadiums and training grounds were reconstructed in Azov, Rostov, Taganrog. According to the Gazprom-to-Children program, a fitness center was opened in Aksay. The construction of two complexes in the Oryol region and Novoshakhtinsk is ongoing.

Nearly 2 million square meters were commissioned. meters of housing (1.99 million sq. m according to the results of 11 months). We are already actively working on a housing construction program for the following periods.

Third, economic policy.

The 11-month industrial production growth index in the Don was 109%.

Despite the difficult weather conditions, Don agrarians harvested a traditionally high crop - more than 11 million tons of grain and leguminous crops (gross harvest - 11,062.5 thousand tons)

Retail trade grew by 3.4%, catering - by 5.6%, the volume of paid services to the population - by 2.8%.

Foreign trade turnover increased by almost 33% or by 2 billion 459 million US dollars compared with the same period in 2017 (10 months). This growth is one of the largest in the Russian Federation.

We are in third place in the country in terms of non-primary non-energy exports, and in seventh in terms of total exports. Among the 10 leading regions in terms of exports, we took first place in terms of growth in these indicators (142.4% increase in exports). And last year we held the same positions in terms of growth dynamics.

According to the results of the year, the gross regional product will cross the threshold of 1.4 trillion rubles.

In the past year, more than 200 investment projects were commissioned:

•     investments in these projects amounted to 26 billion rubles,
•     created 3 600 jobs.

In the region, the beginning of the development of new industries has been laid:

•     Wind energy: the construction of wind farms in conjunction with the Italian energy concern Enel and the Finnish Fortum, the launch of new production of components for wind farms.
•     Modern logistics: the first in Russia regional logistics center of Yandex.Market was opened in Aksaysky district, the French company FM Logistic, in addition to managing the wholesale and logistics center RosAgroMarket, is building another large warehouse complex.
•     The Ay-Plast company launched a project in Azov for the production of large-sized plastic containers and packaging.
•     In the Myasnikovsky district, the Rostov Molds Plant began work, a joint production of the Russian company PlastFactor and its Chinese partners.

Now about what has been done and what has not been done based on last year’s investment message.

•     A small-scale regional procurement portal has begun.

It registered over 5 thousand suppliers and made purchases worth more than 3 billion rubles.
Don enterprises received a platform for promoting products on the public procurement market, and budget savings on the portal exceeded 140 million rubles, or more than 5% of all small-volume purchases. I consider this to be our successful management decision, which, among other things, has not yet required budgetary expenditures.

•     Improved business support formats.

Priority is given to return measures of state support - guarantees and microloans at a preferential interest.

Since March, the regional business agency has been providing loans to industrial exporters at 5% per annum.

•     The program of preferential leasing for small and medium-sized businesses has started - up to 5 million rubles from 5% per annum.

    Demand for the services of a leasing company significantly exceeded supply, and I decided to capitalize on a regional company. And we will do it in 2019.

    The so-called “engineering subsidies” to compensate for the costs of technical connection to networks are still a priority. They, as before, are guaranteed. Residents of TOSED have special preferences here.

    In 2019, I instruct you to expand the special conditions applicable in Gukovo to residents of the Zverevo and Donetsk TOSERs. Also make suggestions on the possible expansion of the list of activities that claim to be cost-compensated.

•     The most popular form of investor support is tax incentives.

This year, 45 organizations received them as part of 70 investment agreements. According to preliminary estimates, the total amount of tax benefits will amount to 2.8 billion rubles. As you know, this amount is considerable, but this is also not the limit.

Of course, the provision of tax benefits to investors will continue.

•     Special investment contracts.

We have adjusted the regulatory framework and set the zero income tax rate to participants in federal special investment contracts. In addition, they can receive property tax benefits.

In July, in order to implement an investment project in the field of wind energy, a special investment contract was concluded between the Ministry of Industry of Russia, the Rostov Region, VINDAR RUS and Severstal. The production of wind towers, which has no analogues in Russia, has started.

•     Creating infrastructure for business.

Last year, the idea of ​​creating centers for creating entrepreneurs on the basis of universities was supported.

Five such centers have already been opened today, where future graduates can register as entrepreneurs, open a bank account, get a loan, and regularly receive the necessary advice.

The consultants in such centers are specialists in business support infrastructure facilities, representatives of banks, as well as tax service specialists.

I also instructed to ensure 100% coverage of all municipalities with the work of the IFC windows for business. The order has been completed, 67 additional windows have been created.

•     Implementation of target models to improve the business environment.

According to the results of 2017, we have fully completed 7 of 12 target models, the level of achievement of the target indicators is 95% (the average indicator for the Russian Federation is 92%).

Since 2018, data by region has been reset to zero. As of December, 6 out of 12 target models have been fully implemented, the level of achievement of the target indicators is 91% (the average Russian value is 89%).

    All sectoral authorities and administrations of municipalities must take comprehensive measures to implement the target models in full.

•     Reducing the administrative burden on the business.

The introduction of a risk-based approach in control and oversight activities continues: the number of “regional” inspections decreased by 10%, “municipal” - by 13%.

What is partially done.

•     Rates.

The business makes well-grounded claims against resource-supplying organizations in that they “stifle” their rates. Resource workers blame the PCT for strangling their tariffs. Disputes do not stop.

On my behalf, an audit of the costs of large resource-supplying and marketing organizations proposed for inclusion in tariffs was conducted. The general conclusion is that formally tariffs are economically justified.

However, we are not ready to agree with the validity of a number of expenses previously included in the gross necessary revenue. The regional tariff service sent a corresponding appeal to the FAS Russia.

    Work on the regulation and reduction of tariffs should be continued and carried out on an ongoing basis. This task is multifaceted, and it takes time to solve it.

Now about the tasks.

They are determined both for the coming year and for the next six years, both at the federal and regional levels.

As I mentioned:

•     The President approved 9 national development goals of the country, to achieve them, national projects were developed in 12 areas. Last week I approved regional projects in the framework of national projects.

National projects are information, including for business, about state plans: where large budget investments will go and what conditions will be created for private initiative.

•     Until the end of this year, we will consider the approval of the Strategy-2030, which is developed taking into account national goals and national projects. Specific projects and tools for their implementation have already been incorporated into government programs.

Such a concentration and such a systematic approach to goal-setting has never been before:

•     defined tasks
•     target indicators
•     calculated financing
•     everything is reflected in the draft regional budget, which will be adopted tomorrow by deputies of the regional parliament.

Now we have to organize these complex processes, the result of which will be the achievement of national goals.

And you and I have experience in solving such extremely complex non-standard problems.

In the framework of public discussions of Strategy 2030, he repeatedly said that the whole world is changing, and to be successful, we all will have to change too.

The rule is simple - change or lose.

I ask you to raise the hands of those who believe that it is necessary to change? This is not for the protocol ...

We must start the change with ourselves! With the launch of changes in the system of state and municipal government of the region, with the acquisition of new competencies.

    I instruct the deputy governors to prepare and, by the end of February, make proposals for the implementation of educational programs for the management teams of regional and municipal employees. The experience of the joint educational project of the Presidential Administration and the Agency for Strategic Initiatives can be taken as the basis.

    I am ready to support such proposals!

Today, we are largely hostages to a huge number of redundant and inefficient bureaucratic procedures. They burn our temporary resource.

New tasks while maintaining the size of the apparatus require no alternative cost reduction.

 

In recent years, work has been carried out at all levels of government to reduce administrative pressure on business. And I must say quite effectively:

•     the institution of the Ombudsman for the Protection of Entrepreneurs was created,
•     The number of business inspections has significantly decreased.

But at the same time, the pressure of inspectors on municipal and regional authorities has increased many times. What kind of performance can we talk about if entire departments work only on reports to supervisory structures?

At the same time, there are a lot of really relevant topics for the application of the efforts of control bodies - tariffs, shadow employment, shadow migration, gray salaries, and much more ... Obviously, there is something to think about.

 

Productivity is a key indicator of the performance of any organization in any field.

Today, according to this indicator, our country lags behind its global competitors. Labor productivity in Russia, Germany and the United States is 25, 49 and 60 dollars, respectively, for the hours worked. This is the data of the Organization for Economic Cooperation and Development for 2015.

It is no accident that in his address to the Federal Assembly, the President of Russia devoted a special place to the issues of productivity:

“In order to further change the structure of the national economy, increase its competitiveness, ... it is necessary to increase labor productivity on a new technological, managerial and personnel basis ... It is necessary to ensure that labor productivity ... grows at a rate of at least 5% per year ... The growth of labor productivity is also the growth of wages, and hence consumer demand, and this, in turn, is an additional driver for the development of the economy. All our actions should encourage companies to produce technically sophisticated products, to introduce more efficient technologies. ”

Increasing labor productivity is a key priority of the socio-economic development of Russia until 2024!

At the end of last year, we sent an application for the participation of the Rostov Region as a pilot region in a project to increase labor productivity.

During the year, the management of a number of Don enterprises was trained free of charge by experts from Rosatom and the Federal Competence Center. If our region wins the competition (until December 20), these enterprises will be able to apply for soft loans of up to 300 million rubles at 1% per annum for the modernization of production.

 

Often you can hear about the lack of free financial resources for entrepreneurs to invest.

However, according to the Central Bank of Russia, half a trillion rubles are stored on deposit accounts in banks of only our region and only residents and legal entities of the Rostov Region:

•     this is more than a third of GRP,
•     and exceed annual investment from all sources.

We can discuss the reasons for this concentration of free cash on deposits with banks. But, I assume that one of them is the lack of information on highly profitable market niches.

This is actually very beneficial:

•     for every million rubles of accrued salary - savings of 224 thousand rubles only on contributions to extra-budgetary funds,
•     full exemption from income taxes, land tax, property tax,
•     add to this soft loans, leasing from 5%, reduced interest on bank guarantees and sureties,
•     in addition, full special support for your projects under the patronage of the regional government and the governor personally.

There are, of course, questions.

For example, the exemption on payment of fees to extrabudgetary funds is valid for the first three years from the moment the city is assigned the status of TOSED. But the construction of production from scratch will take about three years. A large investor simply does not have time to take advantage of this benefit.

Another topic is tourism. It is identified as one of the regional priorities. Since this is a priority, it requires additional financial and labor resources.

Therefore, a decision was made to create a regional tourism development agency (funds are provided for in the 2019 budget). So far, small, but if we see positive dynamics at the end of the year, we will think about its development.

Recently, I supported the proposals of the Ministry of Economy to open entrepreneurship counseling and support centers in cities and regions of the region.

    Heads of administrations need to actively engage in this work, including the selection of locations for such centers.

A good idea is the pre-university registration centers for entrepreneurs. Given the national project on small and medium-sized enterprises, such centers should receive new development.

    I instruct the Ministry of Economic Development and the Ministry of Education to work out the question of creating such centers at Don colleges.

The next task - “Boiling Point” - is a space for teamwork, a coworking center of a new formation, a platform for discussions between entrepreneurs, engineers, scientists, teachers, students and graduate students, as well as government officials.

The ideologist of this movement is the Agency for Strategic Initiatives. We started to create such “boiling points” this year. In 2019, it is planned to open the first in the framework of cooperation with our core university DGTU.
Social politics.

As I have already noted, the central link in our strategic goals is man.

The tasks that we have to solve:

•     the introduction of a regional social standard guaranteeing the availability of high-tech medical care to every inhabitant, a universal set of social support measures, public safety and a barrier-free environment,
•     launch of the “social elevator” mechanism, which will allow our region to become a “magnet” for gifted youth,
•     development of new social institutions, primarily patronage and social entrepreneurship.

In the social sphere, as in government, reforms need to be implemented faster.

Why?

Because the social sphere is the object of our direct management.

The President approved the National Plan for the Development of Competition; at the regional level, we approved a roadmap for reducing the share of state organizations in various sectors of the economy and social sphere.

Why is this so important in the context of an investment message?

The social sphere for business is a new stable solvent demand from the state. At the same time, the state itself also benefits - operating costs for the maintenance of equipment and personnel are lower, the quality of services due to competition is higher.

    I entrust all the executors of the approved roadmap to ensure its timely and high-quality implementation.

Spatial policy.

Here our most important goals are:

•     development of the transport and logistics and engineering framework of the region,
•     conservation and development of the natural ecosystem,
•     spatial development of the region based on growth poles - the most prepared for intensive growth of territories, the development of which can have a significant stimulating effect on the economy of the region as a whole.

The concentration of human capital in modern developed agglomerations is a global trend.

Today, the Rostov agglomeration is defined as one of the centers of economic growth in the country. In the draft spatial development strategy, which is formed at the federal level, we occupy the third place in Russia in terms of population after Moscow and St. Petersburg.

The regional laws have already been adopted in the first reading:

•     “On the development of agglomerations in the Rostov region”,
•     "On the status of the administrative center of the Rostov region."

At the beginning of the year, these bills will be considered by deputies in the second, final reading.

It is necessary to continue to move in this direction. We must be the center of attraction for people. Smart migration, creating comfortable living conditions for people are key tasks in the framework of spatial policy.

A special role in the development of territories is played by local governments:

•     Permitting procedures for construction and territorial planning are still very problematic for the business - and this is your authority.
•     The creation of industrial parks, technology parks - the activity of all municipalities should obviously increase.

Of course, within the framework of spatial development, there are issues that municipalities alone cannot solve. For example, infrastructure.

Even priority development areas, which are designed to be a model of business conditions, have a ton of problems today:

•     The issue of energy supply of the TOSER Gukovo investment site remains relevant,
•     in Donetsk, issue number one is the provision of water supply and sanitation facilities,
•     Zverevo needs the construction of treatment facilities.

    The task of line ministries is to move much faster in all these matters. It is in 2019, under the created regulatory conditions, to create a situation in which the dynamics in solving issues should change qualitatively. Please report back to me on this task before February 1, 2019.

Dear leaders of the authorities, ask yourself the question - what have you done for the development of the TOSEDs, so that they develop more dynamically? This is our competitive advantage, and we must use it.

Separately about the road infrastructure.

Knowing the limited opportunities of municipalities, I decided on the minimum level of co-financing of expenditure obligations related to the construction and reconstruction of roads - 1% from the local budget, 99% from the regional budget (from January 1, 2019).

Budget funds are a common way to maintain the pace of road repair and construction. At the same time, there are positive examples of public-private partnerships in road construction. For example, Western high-speed diameter in St. Petersburg. We can have this bypass Aksai.

We are not going to recklessly transfer free toll roads, but if there is a demand for high-speed toll roads, I think we should deal with this issue. If you have a well-organized and equipped alternative road, this is a prerequisite that must be observed.

    And here, all relevant ministries, together with municipalities, need to analyze the need for such paid understudies.

A separate topic is expanding the capacity of our seaports. They are very popular among businesses due to competitive pricing conditions. And it is provided for:

•     and in the new May Decree of the President,
•     and in our regional development strategy,
•     and in the spatial development strategy of our country.

    I consider it necessary for the relevant sectoral authorities and heads of municipalities to work out joint action plans with port owners.

Another important task for the near future is the implementation of the territorial model for the integrated development of the Platov aeropolis, the territory of the old airport and the left-bank zone in Rostov-on-Don.

In general, the task of comprehensive development and the creation of a comfortable urban environment is becoming extremely topical, taking into account the national priorities defined by the President of Russia. There are plenty of positive examples in the capital and in the world.

    Here I look forward to systematic joint proposals from the Ministry of Construction and Territorial Development, all interested ministries and departments, as well as the heads of the respective territories.

    In this regard, I consider it unacceptable to make precise adjustments to the general plans of municipalities adopted without taking into account the decisions taken on the integrated development of the territory of our entire region.

    I decided to create the Inter-Agency Council for the Development of Territories in 2019.

Now all the heads and ministers will need to defend on the board the advisability of all major budget investments (construction, reconstruction, overhaul) and the validity of localization of private investment projects on their territory.

And the council will make decisions, guided by the approved strategic documents.

The development of the territory of our region, an increase in its degree of connectedness, cannot be realized without improving and modernizing the transport infrastructure.

At the same time, the most important direction is high-speed inter-agglomeration railway communication, and the second is the project of a high-speed highway through the Rostov Region.

A separate task is to work with mobile operators to provide all major roads with high-quality mobile communications and mobile Internet. This will serve as an additional factor for the development of roadside services, as well as caravanning.

Another important area is a well-thought-out system for positioning the region in the media space.

Rostov Region is a very attractive region for work, life and self-realization. It is necessary that potential partners in the country and abroad know this.

    The Department of Information Policy of the Government of the region, together with all ministries and departments, as well as development institutions of our region, needs to implement measures to promote the existing potential of the Don Region.

Forming Strategy-2030, we were in constant dialogue with experts, municipalities, business, civil society institutions, and youth. In order to achieve everything that I just said, we need to continue active interaction and fruitful cooperation.

    I give an order to each branch body responsible for national projects to work out supervised regional projects with local authorities and invited experts.

    This must be done using the tools and approaches of our regional concept of "Seven I": investment, infrastructure, institutions, intelligence, innovation, industrialization, initiative.

What I would like to change. I would suggest taking the initiative first. The initiative of each person, not only the leader, in solving the tasks that need to be done.

In conclusion, I would like to thank everyone for their active year, and the business community for their reliable expert position, which allows them to compare the decisions made with your current needs.

Separate words of gratitude to all our fellow countrymen. You are the main factor in the success and development of our field. Thank you for your work.

I ask you to submit an action plan for the implementation of the investment message to me for approval until January 20, 2019.

Once again, I want to note that the time has come when non-standard solutions are required to fundamentally improve the economic, social and managerial environment.

Let me remind you - our goal: "Rostov Region is a leader region."

I am confident that we are in our power to ensure high rates of development of the Don economy and better work in the social sphere.

Thanks for attention.