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Investment Activity in Magadan Municipality

In modern conditions one of the key factors for successful economic and social development of the city of Magadan is to attract investment in all areas of the city economy.

Creating a high investment attractiveness of the city and its industries will enable to increase the flow of investment to improve vital infrastructure, to create new jobs, to raise personal income, and to create a comfortable in-city environment for local citizens.

Investment activity in Magadan municipality is being carried out in the following areas:
- Providing investors with equal rights to receive municipal support in the field of investment activities;
- Participation of budgetary funds in funding of the projects aimed at developing life support infrastructure for the population of the urban district;
- Providing support in the form of municipal guarantees for investment projects in accordance with the territory development priorities;
- Ensuring openness and transparency in decision-making on the implementation of investment projects;
- Simplification of the procedures to support investment activity in Magadan municipality, including the selection of land plots for facilities construction;
- Control over the targeted use of the city budget and extra-budgetary sources.
In 2014, the investment in basic capital was used in the amount of 6,308.9 billion rubles, with an increase of 9.9% to 2013 level. The share of investments of the city in regional capacity was 16.5%.
Investment of the large and medium-sized enterprises amounted 4,668.6 million rubles. This being said, 48.1% of the total investment of large and medium-sized organizations was used on transport and communication, the second place was taken by public administration and military security (23.65%), followed by investment activity in production and distribution of electricity and water (9.5%), and in construction (4.2%).
Structure of investment into large and medium-sized enterprises basic capital
according to key assets types

 January - December 2014FYI compared to 2013, in relation to total
Millions of rubles % in relation to total
Basic capital investment4668,6100100
including:   
residencies468,610,08,6
buildings (apart from residential) and facilities 937,520,035,4
machinery, equipment, means of transport, tools and accessories  3059.965.746.7
 other202,64,39,3


Investment Activity in Magadan Municipality


Over the past five years, the volume of investment into basic capital for the development of economy and social sphere of the city increased by 1.5 times, from 4.0 billion rubles in 2009 to 6.3 billion rubles in 2014.
In 2014, the concept of investment activity in Magadan municipality to 2020 (hereinafter - the Concept) continued to develop. For this, Interdepartmental Investment Commission was created in Magadan Mayor Office in order to implement this concept. It is composed of representatives of industry (functional) departments of Magadan Mayor Office and Magadan City Duma deputies.
As part of the municipal support of investment processes the activity of the Investment Council under the Mayor's Office of Magadan is continuing. Each year, the Council holds selection of potential investment projects. Their benchmarks are formed, total and residential area of the construction objects is determined, their market value evaluated.
The relevant information about investment objects and conditions for their competitive selection is placed in the media, including radio, television and the official website of the Municipality of Magadan - http://www.magadangorod.ru/.
During the period of the Investment Council work under the Magadan Mayor's Office 12 investment projects have been implemented, including the construction and reconstruction of residential buildings with a total area of approximately 23.3 thousand square meters and the construction of two transformer substations, etc., totaling 681.75 million rubles in cost.
Apartments with total area of 9,893.7 square meters, obtained as municipal property, are given to the residents resettled from dilapidated housing as well as to orphans and children left without parental care.
In 2014, implementation of the investment contract on the project Reconstruction of Water Recreation Complex at 13-a Oktyabrskaya Street into Multifunctional Recreation, Entertainment and Shopping Center is being continued.
On the I Magadan International Investment Fair, held in July 2014, there were nine most important investment projects of Magadan municipality presented. Among these projects were: Construction of Tourist Center in the City of Magadan in the Old Veselaya Area , Construction of a Tourist Club in the City of Magadan in Primorskaya Street Area, Construction of a Multipurpose Sports Complex in the City of Magadan near the Magadan Highway, Construction of Downhill Ski Sport and Tourist Complex in Solnechny District, Construction of a Waste Recycling Plant in Magadan Municipality and four low-rise residential construction projects in Magadan – in Nagaevo Bay area, in Solnechny district, in Dukchinskoe highway area and in Klubnaya Street district.

A master - plan of the investment project Construction of the Year-Round Sport and Tourist Complex Solnechny.Magadan is being developed. This project was considered by the Federal Agency for Tourism of the Russian Federation Ministry of Culture in order to be included into the list of actions of the federal target program on Development of Domestic and Inbound Tourism in the Russian Federation for 2011-2018 years, as well as it was reviewed at the government meeting at Magadan Regional government with the participation of the First Deputy Minister for Development of the Far East.
In December of 2014 at the Economic Forum held in the Republic of Korea, Magadan municipality presented two investment projects: Construction of a Waste Recycling Plant in Magadan Municipality and Building an All-Season Sport and Tourist Complex Solnechny.Magadan.

One of the tools for the investment activity growth is to increase the volume of extra-budgetary funds raised for the municipal programs. The actual mobilization of extrabudgetary funds in 2014 amounted to 116.8 million rubles, including the following programs:
- Energy Conservation and Energy Efficiency Raise in Magadan Municipality for the years of 2010-2017 - 40.9 million rubles;
- Improving Road Safety in Magadan Municipality for the years of 2013-2015 - 45.9 million rubles;
- Small and Medium-sized Business Development in Magadan Municipality for the years of 2010-2016 - 11.7 million rubles;
- Improving Public Transport Services in Magadan Municipality for the years of 2012-2014 - 18.3 million rubles.

investicionnyy-pasport-2016-g.zip
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