Belkomur
The brief characteristics of the Project "The complex programme for industrial and infrastructural development of the Republic of Komi, the Perm Region and the Arkhangelsk Oblast"
Project goal: The complex programme provides for implementation of the investment business projects in the regions and the Solikamsk-Arkhangelsk Railway Link Project that will allow to eliminate infrastructural dead-ends, provide an access to the currently idle timber resources and create a new shorter transit track to connect the Ural and Siberia with the Russian northern ports, as well as the new deepwater section construction project for the Arkhangelsk Sea Port.

The project will be implemented as public-to-private partnership.
The basic principles of public-to-private partnership within the framework of the
complex programme implementation:
- The state undertakes to fund the main line designing and construction;
- The railway will remain the public property after the complex programme has been
implemented;
- The private investors will undertake to fund designing and realization of the local
industrial projects from their internal or borrowed assets;
- The newly constructed or renovated projects will remain the investor's property after
the complex programme has been implemented.
The basic project goals:
- Renovation or construction of new businesses and operations in the Republic of Komi;
- Renovation or construction of new businesses and operations in the Perm Krai
- Construction of a new sea port deepwater section in the Arkhangelsk Oblast
- The Solikamsk-Arkhangelsk Railway Main Line Construction Project (the Belkomur Project)
- The total amount of project investment will be over RUR 350 bln.
The general financing and economic
details |
| Total amount of investment: |
RUR bln. |
350 |
| RF Investment Fund assets/ private investors' assets: |
RUR bln. |
75/275 |
| Gross growth in industrial production: |
RUR bln. per year |
90 |
| More jobs: |
Number |
25 000 |
| Payback periods of the projects: |
|
|
| private investment/RF Investment Fund |
years |
3 - 15/6,5 |
| Incomes in all of the budgets: |
RUR bln. per year |
25 |
| IRR (internal rate of return) |
% |
27 |
The brief characteristics of the project participants:
Republic of Komi:
- Total amount of investment up to 2012 года: over RUR 110.0 bln.
- 23 mln. tons of freight flow per year (2006)
- Increased industrial output up to 2010-2012: over RUR 20 bln. more
- Freight flow increased by 40-50% up to 2010-2012
The projects planned for implementation in the Republic of Komi:
- The Yarega Mining Chemical Complex Construction Project with the capacity of
650,000 tons of ore p.a.
- The Vorkuta Project: bottom-line development of the Vorkuta Coal Field
- The business construction project for high-level dressing of bauxite ore in the
Mid-Timan Area (Close Corporation Komi Aluminium)
- The Step Project: primary process equipment renovation and reconstruction for JSC
Mondi Business Paper-Syktyvkar Pulp and Paper Mill
- The pulp and paper mills construction projects in the Udora and Troitsk-Pechorsk
Districts
The Perm Krai (the Bereznikovo-Solikamsk Industrial Hub):
- Total amount of investment up to 2012: over RUR 120 bln.
- Industrial production volume to be increased by over RUR 20 bln. up to 2010-2012.
- The freight flow to be increased by 30-40 % up to 2010-2012.
The projects planned in the Perm Krai:
- The JSC Ural Potassium Project: potassium chloride production capacity to be increased
by 6.2 mln. tons.
- The JSC Sylvinite Project: potassium chloride production to be increased by 1 mln. tons.
- The Newsprint Process Line Construction Project for JSC Solikamskbumprom
- The Chlorine and Potassium Hydroxide Production Project for Soda Chlorite, Ltd.
- The A-brand Soda Ash and Cement Production Project for JSC Bereznikovsky Soda Mill
The Archangelsk Oblast:
- The deepwater port:
- Annual freight flows: 30 mln. tons.
- Total amount of public and private investment: RUR 45 bln.
- Number of jobs: over 9,000
- Admission of ships with deadweights of over 70,000 tons
- The construction project for a 55 km railway link to the port. The project has
been integrated in The Russian Railway Transport Development Strategy up to 2030.
The project will create tens of thousands of more jobs and attract over RUR 25 mln. as
annual tax incomes in all budget levels. The total amount of investment to be tied up in
regional development is estimated at RUR 350 bln., the private investment being RUR 275
bln.

The amount of freight flows after the railway line commission taking into account all of
the projects integrated in the Complex Programme (the new and renovated ones):
Solikamsk-Syktyvkar: 25 mln. tons p.a.
Syktyvkar-Solikamsk: 5.7 mln. tons p.a.
Syktyvkar-Arkhangelsk: 20.5 mln. tons p.a.
Arkhangelsk-Syktyvkar: 1.5 mln. tons p.a.
Arkhangelsk Port: 5 mln. tons p.a. (container transportation)
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