time to invest in moscow - wko.at · time to invest in moscow december 2019 . 2019 | moscow city...

TIME TO INVEST IN MOSCOW

December 2019

2019 | Moscow City Investment Agency | 2

Moscow is one of the world’s largest agglomerations

Capital investments in Moscow in 2018

14% Moscow share in total

investments in Russia

~$37.3 bn (₽ 2,4 tn)

+107% Against 2010

Population of Moscow agglomeration

$160 bn (₽ 10.4 tn) in 2018

20 million including Moscow – 12.6 m people

14% of Russia’s total population

Accumulated Foreign Direct Investments

$248 bn

~50% The share of Moscow in accumulated FDI

of the Russian Federation

Consumption in Moscow agglomeration


Foreign Direct Investments in Moscow

$ 248bn

Total accumulated FDI

* Excluding the statistics of countries from which the repatriation of capital (Cyprus, etc.)

accounts for a substantial portion of FDI

by countries*, USD bn (as of 1 July 2019) European Cities and Regions

of the Future Ranking

(FT - fDi Intelligence)

12

6

>25

468 cities and

regions

2014/2015 2016/2017 2018/2019

294 cities

301 cities

Germany 8.0

Finland 4.7

France 4.2

Italy 3.6

Austria 3.4

Sweden 2.3

United States 2.1

UK 1.6


New Support Mechanism for Industry& Hitech Sector

Industrial complex Technopark

Special status for existing enterprises

Industrial complex Technopark Industrial park

17-25%

25%

Regional tax

burden

reduction*

* income tax, land tax and land rent benefits

Investment priority project to create

Industrial park


Support Already Granted

49 industrial complexes

including:

Companies supported:

36 technoparks

10 anchor residents of technoparks

Investment,*

USD 1.5 bn (₽ 95 bn)

Sales revenue,**

USD, 7.3 bn (₽ 476 bn)

Number of jobs,

‘000 people 103.4

* for the last 5 years

** 2016, 2017 years

105companies

+ 9 Investment

Priority Projects investment

$370 m (₽24 bn)

1 car manufacturer

status Renault Russia

+


Sites for Localization: Technoparks and SEZ

36 technoparks

>$800 m of investments (₽ 53 bn)

>42 000 jobs

>1 950 residents

Wide area of specialization:

Preferential rental conditions Tax benefits for anchor residents

Special tax and customs conditions

47% Regional tax burden reduction

Income tax (regional)*

Property tax*

Land tax* Transportation tax*

0%

Free customs zone

Preferential terms for land purchase

SEZ Technopolis Moscow

207ha

SEZ area

62 Tenants

$380 m Investments

*- benefits validity period is 10 years Free utility connection

(₽ 23.9 bn)


Moscow – PPP development leader of Russia

$14.5 bn

volume of PPP project contracts from 2013 to November 2019

1 st place in PPP development rating of Russian regions 2016 – 2019

INCLUDING:

$ 1 bn Concession projects

$ 7.4 bn Life Cycle Contracts (LCC)

$ 3.7 bn Long-term contracts with an investment component

$ 2.1 bn Corporate PPP

$ 275 m Real estate lease with Investment commitments


Concessions: Northern Relief Road for Kutuzovsky Prospekt

10.3 km

Road length

40 years

Concession term

$638 m

Financing

The first intracity road concession in Moscow

Investors: Management company LEADER (owned by NPF Gazfond, Gazprom), Sovereign Funds of Saudi Arabia, Qatar,

Bahrain, China, Russian Direct Investment Fund


2 years

construction time

$50 m

Investments: (no city investments)

Creation of a modern cable way over the river between

2 metro stations in the North-West district of Moscow

Concessions: Cable way consession

During the period from May to December 2019,

it is planned to hold an open tender and conclude

a concession agreement with the winner.

Tender bidders: Consortium headed by Bartholet (Switzerland), Consortium of REGION Group and POMA (France)


1.8 m sq. m

permitted capital

construction volume

Construction of Transport Hubs (TH)

>$11.1 bn (₽ 700 bn)

estimated private investment in TH

at metro and urban railway lines and stations, both existing and under construction

≈9 m sq. m TH town planning potential

19 TH already transferred to investors

$2.1 bn (₽ 134 bn)

expected capital expenditures of private investors

Investors: PIONEER Group, TASHIR Group, MR Group, Enka, REGIONS Group, RG-Development etc.


Life-Cycle Contracts

Efficient tool of budget cost optimization – life-

cycle contracts (LCC) stipulating the product supply

and service

Metro Surface transport Utilities Healthcare

Supply volume 1,576 metro cars 436

busses 300

trams 300 e-busses

33,578 heat

counters

18 angiographs

Contract time 30 years 7 years 30

years 15 years 12 years 10 years

Contract value USD 5.4 bn USD 112

m USD

865 m USD 297

m USD 486

m USD 40 m

$7.2 (₽470 bn)

Value of concluded LCCs

Main application area: Public transport renewal

Investors: Transmashholding, GAZ Group, JSC KAMAZ, ROSTEC, ROSTELECOM etc.


Offset Contracts:

Public procurement with investment commitments

Priority areas for offset contracts:

Supply price reduction;

Import substitution, guaranteed

supplies;

New jobs and tax basis growth.

Solvent consumer;

Long-term sales guarantee;

Sole supplier register inclusion.

+ for Moscow: + for Investor:

Medicines and

medical devices

Utilities

equipment/vehicles

Computer& Telecom

equipment Public transport

vehicles Equipment/

machines/ facilities


Offset Contracts: Moscow’s experience

Up to

10 years

Contract term

>$16 m volume of investment in construction,

upgrading and/or production engineering

Key conditions of Contracts

Russian-made goods procurement

Already concluded:

2 contracts

Drugs supply

(53 INN incl. 27

imported INN)

$138 m

Private investments

(₽ 8.8 bn)

$502 m

Supply volume


Moscow Investment Portal

>3.0 thous. of objects

at auction

>5.3 thous. of objects at

investment map

64 services for

business

17 Online

services

The largest specialized information portal

for investments;

A single entry point and a business

navigator;

Convenient online services;

An effective feedback mechanism

from business (direct line);

A single trading platform with information

about all urban property put up for auction;

Ability to apply online for support

measures.

time to invest in moscow - wko.at · time to invest in moscow december 2019 . 2019 | moscow city...

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