Transcript of the beginning of the meeting:
Vladimir Putin: Mr Vinnikov, we will be discussing the full range of issues facing the region, but first I would like to hear your assessment of the progress made in investment projects. You have several good projects, first of all the one to set up a metallurgical cluster. There’s another issue linked closely with this cluster: the railway infrastructure without which the cluster would be difficult to develop. There are also good projects in timber processing and the fishing industry. Let’s begin with the largest project, the metallurgical cluster.
Alexander Vinnikov: Naturally, the metallurgical cluster is our largest project. As you said, this one above all envisages the construction of a mining and processing plant…
Vladimir Putin: Investment in it will total almost 23 billion roubles, won’t it?
Alexander Vinnikov: Yes, 23 billion roubles. As of today, more than 4 billion roubles have been spent already. The construction of the processing plant is expected to start soon, in April. It should be built within two years and commissioned in the fourth quarter of 2013. All the related organisational and technical issues have been settled. A number of facilities have already been built. The construction camp is almost completed. Two residential facilities have been constructed and another two are to be commissioned this year. A cafeteria with 350 seats was built just the other day. The plant’s administrative office has been completed. This makes me give a positive assessment of the construction and the use of funds.
Vladimir Putin: This enterprise will create about 2,000 new jobs?
Alexander Vinnikov: In all, taking into account the construction of the metallurgical plant to be built by 2016, the project creates about 3,000 jobs. The plant has already hired 450 members of its permanent staff. This year 1,500 people will be employed in construction work. We are supporting this project. I oversee the work of the headquarters that include working groups in charge of specific issues, above all, the coordination of work. This is why the regional government has heard no complaints concerning its work, at least from investors.
Vladimir Putin: What is the status of the railway? There is a bridge running over this area…
Alexander Vinnikov: A new railway station and an overpass are being built at the plant 5 kilometres from the Trans-Siberian Railway. Construction has already begun. Another infrastructure project is the bridge across the Amur River, which has already been designed. The design and the cost estimate have been completed and are being examined by the Russian State Expert Examination Agency. We expect to receive a positive evaluation in early May, by May 10. Investors are ready to start the construction in the second half of June. In this respect, I would like, on behalf of the investors, to invite you to take part in laying the foundation for this bridge. The construction project is far from being ordinary – you were in Khabarovsk and could see its scale. Funding issues have been resolved.
As for your instruction to the government of the Khabarovsk Territory, investors, and Russian Railways to look into the future compensation of the investors’ expenditures, we have submitted all proposals to Russian Railways, and they are considering them. I believe that a basic solution has been found in the form of long-term compensation through special transport fees. This is absolutely normal.
Vladimir Putin: What about timber processing?
Alexander Vinnikov: As for timber processing, there is the company Ekoles, which has had all its projects approved according to the applicable procedure and has received long-term leases for large forested areas. It has begun processing timber in the village of Budukan not far from our regional centre. Two major timber processing facilities are under construction.
As for their products, they will be manufacturing modern products, including glued laminated timber, various types of medium-density fibreboard and other materials, such as plywood and parquet flooring. This enterprise provides deep processing, and unprocessed timber, even simple square logs, will not be exported.
Vladimir Putin: That’s good. This will expand the range of construction materials available in the region.
Alexander Vinnikov: Certainly.
Vladimir Putin: By the way, the construction sector has recently shown a negative trend, including housing construction.
Alexander Vinnikov: Yes, Mr Putin, it did in the first quarter. I believe this is related to seasonal factors. For example, in 2009, the sector was growing at accelerating rates, which had a negative impact on the rates in the first quarter of 2010. We even had to contain the rates a bit. But there are no problems here, the statistics for the first half of the year will be fine.
Vladimir Putin: Understood. So you don’t see any threats in this area?
Alexander Vinnikov: None at all. Individual construction is increasing, and I believe this is a positive trend. Our region has the lowest price per square metre of housing in Russia – 23,300 roubles.
Vladimir Putin: Good.