REGIONAL INVESTMENT STANDARD
The task to develop the Standard of Performance of the Executive Branch in Ensuring Favorable Investment Climate was expressed by the President of the Russian Federation V. V. Putin, Chairman of the Supervisory Board of the Agency of Strategic Initiatives, at the 10th International Investment Forum “Sochi-2011”.
The Standard is a basic set of requirements that, if successfully implemented, would help to enhance the inflow of investments to the regions and build infrastructure for the efficient communication between business and local authorities.The Standard sets forth a complex of measures aimed at raising regional investment attractiveness, protecting investors’ interests and enhancing the transparency of the entrepreneurs’ support system.
Today the Standard is successfully implemented in Primorsky Territory. It contains 15 sections.
Approval by the higher bodies of state authority of the subject of the Russian Federation of the Investment strategy of the region.
In Primorsky Territory, the Investment strategy of Primorsky Krai is approved by a Decision of Primorsky Territory Administration «On approval of the Investment strategy of Primorsky Krai till 2018».
The investment strategy of Primorsky Territory contains a wide range of information: it determines the investment attractiveness of the region, describes institutional environment and peculiarities of the work of governmental authorities, contains branch and territorial priorities of the region as well as aims and objectives of the state investment policy.
Mechanisms for implementation of the investment strategy and general principles of cooperation between the participants of the investment process are defined in the investment strategy of Primorsky Territory. An important section of the Investment strategy is a plan of activities on its implementation developed for the period till 2018.
The Plan is a compilation of key investment projects of the objects of infrastructure, construction and reconstruction of which is fixed in the existing plans and programmes of the Russian Federation on the territory of Primorye.
Based on the Plan developed in Primorsky Krai an investor can look through a full list of planned projects, assess their characteristics including deadlines for implementation and volume of investments.
Based on this information the investor can choose the most perspective projects, participation in which would be mutually beneficial for parties.
Annual address of the Top executive of the subject of the Russian Federation “Investment climate and investment policy of the subject of the Russian Federation”
The Top executive of Primorsky Territory – Governor of Primorsky Territory - makes an annual address to the members of legislative and executive bodies of the region about the investment climate.
The address reflects the result the of implementation of the Investment strategy, determines the main directions and priorities of the investment policy of the subject of the Russian Federation and informs about the key measures which should be implemented next year for the attraction of investments and improvement of conditions of doing business in the region.
A number of legal acts aimed at protecting investor's rights, defining the procedure of applying investors for security and assistance, forms of tax and financial support are adopted on the Russian Federation and Primorsky Territory.
Among normative legal acts regulating investment activity the regional laws «On State Support of Investment Activity in Primorsky Territory» (as amended on 30.04.2014); «On innovation activity on the territory of Primorsky Territory»; «On investment fund of Primorsky Territory» can be mentioned.
In Primorsky Territory investors are provided with tax benefits that is reflected in the regional laws: «On business property tax»; «On reduced rates tax on the profit of organizations payable to the territorial budget for certain categories of organizations»; «On establishing the tax rate of 0 per cent when applying the simplified tax system», «On establishing the tax rate of 0 per cent when applying the patent tax system».
There are special economic regimes in Primorsky Territory: the Free Port of Vladivostok, territories of advanced social and economic development, special economic zone. Within these regimes, an investor receives a number of preferences and privileges including the sphere of the tax burden, tariff duties, insurance payments and others.
Regulation of activity under the conditions of special economic regimes is accomplished with the Federal Laws «On the Free Port of Vladivostok»; «On the amendments being made to certain legislative acts of the Russian Federation due to the adoption of the Federal Law «On the Free Port of Vladivostok»; «On the territories of advanced social and economic development in the Russian Federation»; «On the amendments made to certain legislative acts of the Russian Federation due to the adoption of the Federal Law «On the territories of advanced social and economic development in the Russian Federation»; «On special economic zones in the Russian Federation».
For the purpose of the development of the institute of public-private partnership the Federal Laws «On concession agreements»; «On public-private partnership, municipal-private partnership in the Russian Federation and on amendments to certain legislative acts of the Russian Federation» were adopted.
The most important issue concerning investment project implementation is obtaining a plot of land to set up the new production process. In order to control this sphere «The Land Code of the Russian Federation» was adopted and at the regional level the law «On the land relations regulation in Primorsky Territory» was adopted.
A Council on the investment climate improvement functions in Primorsky Territory on a regular basis. The Council is headed by the Governor of Primorsky Territory V.V. Miklushevsky.
The Council is an advisory coordinating body that works out recommendations on the arrangement of interaction between executive bodies and participants of the investment process, on the reduction of administrative burden, on state support of investment processes and on other issues.
In this regard the following Development Institutes work today in Primorye:
- The Primorsky Territory Governor’s Council for Investment Attraction to the Economy of Primorsky Territory;
- Public Advisory Council on economic policy in Primorsky Territory;
- Public Advisory Council on tariffs in Primorsky Territory.
A specialized organization for investment attraction provides 'one-stop shop' regime for the cooperation of investors with other institutions and authorities. The functions of such organization also include the promotion of investment opportunities and projects of the region in Russia and abroad, presentation of interests of the subject in the projects of the public-private partnership as well as assistance in setting up project teams for the support and implementation of specific investment projects «on a turnkey basis».
The crucial condition when choosing territories for establishing new industries is the availability of prepared industrial sites, industrial and technological parks, business incubators, cluster development centers and other infrastructure facilities.
Primorsky Territory has a number of such territories. They are industrial sites where one can allocate production, Innovative business incubators on the basis of the VSUES (Vladivostok State University of Economics and Service) and the FEFU (Far Eastern Federal University), the Center for collective use“Biotechnology and genetic engineering”, the Center for collective use “Small boat park for riverside and coastal investigations” and other facilities.
Availability of mechanisms of vocational training and retraining with specialization in those lines of the profession which correspond to the investment strategy of the region and the investors’ requirements.
The success of an investment project depends on the availability of resources for its implementation. The most important resources are human resources.
Primorsky Territory is ready to meet any of the investors' requirements in highly-qualified staff. We have established the mechanism of vocational training and retraining with specialization in those lines of the profession which correspond to the investment strategy of the region and investors’ requirements.
A regional labor market demand forecast is developed in Primorsky Territory, it is based on the investigation of investors' needs for a period of no less than 7 years.
In accordance with their requirements investors can choose a manager according to different education levels and current spheres of training existing in educational institutions of the region using contact information of educational institutions on the investment portal of Primorsky Territory and staff database according to the levels of professional education in Primorsky Territory.
Investors can choose a manager according to different levels of education and spheres of training using contact information of educational institutions.
The main purpose of the portal is to create a favorable investment climate in Primorsky Territory and attract the attention of business and investors for investment projects in the country.
The website contains general information about the region, including geographical location, natural resources, and demography. Acquainted with the regional investment standard, investment legislation, as well as various statistical information.
A key section of the website, which is of greatest interest to potential investors is the section "Investment environment." Investment projects are classified according to the priority areas of socio-economic development of Primorsky Territory: the mineral resources, agriculture, transport and logistics systems, the scope of tourism and recreation, as well as industry and housing.
Each project is placed on the site, contains information about the initiator of the project, location, and main characteristics, the required amount of investment.
Also, you can follow the news of investment activity, to get acquainted with the various presentation materials.
Organization of support of investment projects on the principle of "one window" is performed in order to improve the efficiency and effectiveness of the investment activity in the economy of Primorsky Territory and in order to implement the requirements of the Standard of the activities of the executive authority of the subject of the Russian Federation for ensuring a favourable investment climate in the region.
Adoption of the subject of the Russian Federation of the investment declaration of the region by the top executive.
The investment declaration is signed by the Governor of Primorsky Territory V.V. Miklushevsky. The document determines the main principles of executive authorities' activities in ensuring favorable investment climate.
The core principles include the following:
- Equality — a non-discriminatory treatment of all subjects of entrepreneurial and investment activities within the framework of previously agreed upon and public system of priorities;
- Involvement — participation of the subjects of entrepreneurial and investment activities in the process of decision making by the executive authorites of Primorsky Territory as well as in the assessment of their implementation;
- Transparency — general access to the documented information of the executive authorites of Primorsky Territory (with the exception of the restricted-accessinformation);
- Bestpractices—orientation on the best practice of interaction between the executive authorities of Primorsky Territory and subjects of entrepreneurial and investment activitiesfrom the perspective of the subjects of entrepreneurial and investment activities.
In Primorsky Territory, the investments are not subject to nationalization and may not be subject to requisition or confiscation apart from those cases and according to the procedures as required by the Law.
The Governor of Primorsky Krai and executive authorities of Primorsky Territory guarantee the following to the subjects of investment activity:
- comfortable conditions for conducting entrepreneurial activity on the territory of Primorsky Territory;
- protection of investments, rights and interests;
providing equal opportunities in obtaining state support of investment activities;
- safety of entrepreneurial and investment activities on the territory of Primorsky Territory;
-providing equal rights in conducting investment activities;
- transparency and openness of the procedure of decision-making concerning the provision of state support of investment activity;
- refraining from additional encumbrances with financial obligations not connected with the implementation of an investment project and not established under the legislation of the Russian Federation and Primorsky Krai;
- a right to challenge the decisions and actions (inactions) of governmental authorities, local self-government authorities and their public officials in court;
- stability for investorsimplementinganinvestment project is guaranteed during the period of the provision of state support;
- the investor's possibility to participate in realization of state policy in the field of investment activities on the territory of Primorsky Territory through advisory boards under the Governor of Primorsky Territory;
- if during the implementation of investment projects any “deadlock situations” occur, such projects are reviewed at the meeting of the Council for Investment Attraction to Primorsky Territory with personal participation of the Governor of Primorsky Territory.
Investors receive state support including:
- granting tax benefits in the part paid to the territorial budget according to the legislation of the Russian Federation and Primorsky Territory;
- implementation of investment projects according to the principles of public-private partnership as well as by concluding concession agreements according to the legislation of the Russian Federation and Primorsky Territory;
- providing land plots with necessary infrustructure within industrial parks.
Assessment of the regulatory impact (ARI) is a set of certain tools, techniques, and procedures that enable public authorities or officials to develop adequate policy in different spheres and implement it into practice.
Procedures of assessment of the regulatory impact (ARI) of the adopted and to be adopted normative legal acts touching upon the entrepreneurial activity are applied in Primorsky Territory. Carrying out the ARI aims at the elimination of administrative burdens at the stage of preparation of the draft of a normative legal act (hereinafter referred to as NLA).
The Department of the economy and entrepreneurial development of Primorsky Territory is defined as the authorized body for the implementation of the ARI procedure in the region. The Department fulfills functions of regulatory and informational and methodological support of the ARI procedure, quality control of performing procedures and preparation of conclusions about the ARI in the defined sphere.
Additional information about the competency profiles can be obtained upon the request of the Department of the economy and entrepreneurial development.
In order to improve the effectiveness of the activity of state civil employees and employees of specialized organizations on work with investors, the models of their competence are being established. The models define the requirements for employees' knowledge, skills, and values.
A system of complex assessment of the competence and improvement of qualification of state employees of executive bodies of Primorsky Territory taking part in the implementation of state programs and (or) providing measures of state support for the investment activity on its territory is set in Primorsky Territory. Moreover, the competence model of the employees of the ANO «Primorye Investment Agency» is accepted.
The inclusion of representatives of the consumers of energy resources into the line-up of the executive body of the subject of the Russian Federation in the sphere of the State regulation of tariffs — Regional Energy Commission (REC) and setting up a collective advisory body under REC, including representatives of the business community.
The cost of resources necessary for the production of goods and services on a particular territory is the most important factor influencing the opportunity of business development in a certain region. The cost of energy resources forms a considerable part of the product cost, significantly reflects on the price of finished goods.
Business community should have a possibility to govern the tariff policy. A Public Council on tariff policy is formed under the Department on tariffs of Primorsky Territory. Furthermore, a list of organizations, societies, government bodies and local self-government authorities, the representatives of which are invited to take part in the work of the Public Council is approved.
For the legal support of the activity in this field the resolution «On formation of a Public Council on tariff policy of Primorsky Territory under the Department on tariffs of Primorsky Territory» is adopted.
The Public Council considers in advance the most important issues related to the regulation of tariffs in Primorsky Territory. The Department on tariffs allocates information about planned Council meetings and issues for discussion.
Proposals for Public Council consideration can be sent to the e-mail address of the Department (email@example.com).
A channel for direct communication between investors and regional administration provides equal assets of the subjects of entrepreneurial and investment activity to the settlement of questions by state officials as well as control of results and terms of examination of the specified questions and problems.
Using the channel for direct communication every investor has a possibility to ask the Governor of Primorsky Territory V.V. Miklushevsky as well as Heads of core-business departments a question.
The use of the channel for direct communication in Primorsky Territory is carried out via the Investment internet-portal of Primorsky Territory as well as by turning to the Governor via personal reception.