Industrial Park Development Company of Industrial Great Stone Park has been being on everyone's lips from the very beginning. The reason is clear: if all goes according to plan, the project will enable Belarus to become one of the key platforms of One Belt, One Road initiative that in the future will bring annual multibillion infusions into the economy of the country. The results of work in 2015 and tasks for the current year Koroteev Kirill, First Deputy Director General of Industrial Park Development Company told.
– Kirill, is it possible to highlight an event, which in 2015 became a landmark for Great Stone Industrial Park?
– I think it is the coming to the park of China Merchants Group and the beginning of the project to create a logistics sub-park. For us, it means the emergence of a real chance to participate in One Belt, One Road initiative and everything connected with it.
Now the future Silk Road infrastructure is being under formation. Many people talk about that, holding various forums, meetings. However, there is no precise route, how it will develop, as well as there is no clarity on its nodal points. Yes, there are several of sea and land variations. It is more or less clear with the sea route, but there are plenty of opportunities to the land route.
It is understandable that some states, such as Russia, will participate in any case. Participation of others is undecidable. Everyone wants to be a part of the Silk Road, and not just an element, but the key platform. In the meantime, our park is ranged as the nodal point. With the coming of China Merchants Group it is more likely to become such an important part of the Silk Road, because Belarus is not just a territory, through which cargo will be passed, here their processing will take place, production of goods. That is, it will be a real point in the economic belt of the Silk Road.
To increase our chances, we will initiate an intergovernmental agreement between Belarus and China and one of the countries of the Baltic region on transcontinental cooperation in the field of logistics. If all goes according to plan, it will give us a link, which we lack of – the sea. By the way, China Merchants Group established a joint venture with Lithuanian Railways. Also this year the project of purchasing of a port will be actively worked out in detail. And all this is under One Belt, One Road initiative.
– If we talk about the project realization in terms of the park construction as a whole, what has been done in the past year?
– We were focused on building of engineering and transport infrastructure, the construction of which was carried out under the conditions of concurrent design. In the past year, project documentation was developed and passed the state examination regarding the construction of roads and utilities, as well as five sites of engineering structures. We are talking about water intake facilities of the 1st elevation, 2nd elevation pumping plant, sewerage and rainwater pumping stations, rainfall treatment facility, and centralized boiler. The documentation for water and wastewater treatment facilities of the utility fluids, designed to meet the increasing demands for the level of waste removal.
– Do you have enough time to be ready on time?
– We are building on a tight schedule – twice as fast as normative time limits for construction. The roadbed has been practically laid down and pipelines and networks within the boundaries of red lines of seven streets of the starting area of the park with a total length of 13 km. I will not go deep into details about what we are doing now, but I will say that the completion of the construction of civil engineering is planned in this October.
– By whose forces is the construction being conducted?
– On average per year 150 units of equipment and 400 people were involved in the construction. Moreover, about 90 pieces of equipment and 320 people were from Belarusian contractors. As you know, the general contractor for construction is China CAMC Engineering Corporation, OJSC, which is included in Sinomach concern. The subcontractors are Building Trust No.3 OJSC of the Order of the October Revolution, Minskpromstroy, Beltransstroy and Belgazstroy. Our JSC has been implementing the project.
– And if we talk about the work performed in terms of money?
– At the expense of the Chinese-Belarusian management company, in 2015 the design and construction works were done to the amount of $ 48 million. Due to the technical and economic assistance of China, the construction works of the transformer substation and power lines were financed in the amount of $ 6.4 million.
– It is everything clear with the results; let us talk about the plans for the current year. What are the main goals do you personally set to achieve?
– Objective number one is that registered residents should start the construction. It is very important for us. China Merchants CHN-BLR Commercial and Logistics Company CJSC is close to it, which, as I have mentioned, will build the logistics sub-park. The project provides for warehousing, transportation by air, rail and road transport, distribution, handling and processing of goods, customs and trade. During the year it is planned to build 100 sq. m of real estate, draw approximately $ 90 million. A very high pace has been declared, and a lot of risks. However, the investor is ready for this. While vertical preparatory works are being done, the ground is being leveled. As soon as the weather permits, the construction will start.
– How are the other residents doing?
– Tszyuysin Malt Technology LLC is getting down to designing, while we are dealing with matters of the ground. Let us recall, it is a project for the production of brewing malt with a capacity of 300 thousand tonnes with total investments of $ 112 million. This project is rather interesting due to its absolute exports of finished products to China, the obligations of which have been already taken by the investor.
Zumlion Bel-Rus manufacturing entity will be the next. Specialized equipment Zumlion is supposed to be produced in Belarus, including construction, transit concrete mixers, truck-mounted concrete pumps, truck cranes, equipment for cleaning of roads. The concrete range is now being determined, then there will be the specification for the design. But the land has been already given to them, and it is a high degree of readiness. The similar situation is with Chengdu Sindzhu Silk Road Development (production of supercapacitors, as well as equipment and materials for rail transport in the park. — Comm. BelTA), which is now conducting a number of different pre-design studies, but they definitely assure that this year they will launch the implementation.
– So, there are mostly Chinese companies …
- So far, yes. But, for example, the Belarusian company Nano Pectin, which plans to build a plant for the production of pectin using a new technology, is also in the process of designing and elaboration of funding sources. There are a number of Belarusian companies that are ready to implement projects in the field of pharmaceutics, which also study the issues of residency.
– Are there any chances that in the near future companies with European capital will enter the park?
– There are some chances, but European companies tend to come to the finished product. And it is not just about built infrastructure and preferential terms. In Germany, there are numerous industrial parks with attractive conditions. For Europeans it is important to have a cluster policy, for example, a manufacturer of medicines could immediately see form whom it is more advantageously to buy raw materials and components. Chinese companies are ready to finance the “field”, they are willing to take big risks.
– Based on what strategy are you working with Europe now?
– Hard work should be done in order to make European companies come to the park, and operate there seriously, not just with point production of something as a pure formality. Today, we are building up our relations with Germany, with the consultants of the Bavarian chemical cluster, which includes corporations such as Basf, Bayer. We work with the German government. Now it is necessary to certify the park. Environmental certificates, certificates of quality are very important to the Europeans. Therefore, despite the fact that our park is at the stage of design and construction, we want to invite experts and get the required certificates. And this will be one of the competitive advantages of the park in our market in the eyes of Europeans. All the necessary conditions, as well as deployment of the activities of the first companies, including the same industry should be created in order to make really high-tech and innovative enterprises enter the park.
– How does the current difficult situation in the world economy influence the coming of investors?
– It will be wrong to say that it does not effect at all. But, for example, Chinese companies will invest even in a crisis, because they realize that there is a rise after a recession, they see the future, and we lack of it. It is a bit harder to deal with Europeans, but it has not been easy even before the crisis.
– Are you planning to change the development strategy of the park?
– Of course, we as a management company should keep abreast of any developments, understand the situation and make the right decisions. We are not going to change the development strategy with investors, because even despite the difficult economic situation in the world, we have certain offers – about 20 signed actual agreements of intent.
The administrative and residential construction is another matter. Soon we will present our initiative to the government on reduction of the amount of planned of housing and office space construction. Now we want to concentrate on the industrial development. The ground is in demand, there are several concrete projects.
– Are there any changes in terms of legal regulation of activity of the park?
– Our goal is to do everything possible to attract profitable investors. And we understand that some concessions to the existing demands are needed. Working group under the Ministry of Economy is therefore created, a draft decree with innovative, experimental approaches is being prepared. It is a bit early to talk about them in detail, but I will say that we have thoroughly studied the experience of our neighbors, who have gone far in terms of competent incentives and attraction of investors. We paid particular attention to successful experience, such as Dubai free economic zone, which is now very actively developing. Unfortunately, Belarus can not afford direct financing of construction, so we have to follow the path of other incentives.
– In your opinion, if all the proposals in the document are adopted and implemented, will the conditions for doing business in Great Stone Industrial Park be competitive as compared with the similar projects in the Eurasian region?
– In fact, we are now quite competitive. But in the draft decree, we put innovative and even experimental approaches that will allow us to create a more competitive mode. In fact, investors are looking for not just benefits and preferences, but stability, reduction of administrative barriers, clear arrangement for co-operation with the state, minimization of bureaucratic procedures. Unfortunately, today, despite the fact that we have the administration of the park, which should operate on the one stop principle, we are still far from the international standards of work with investors. The decree is aimed at the resolution of these issues.
– What other plans and objectives have been identified for 2016?
– In addition to the creation of engineering and transport infrastructure in the current year the objects of the first residents and related buildings will be built. So, by the end of 2016 on the launch pad of the park, 13 kilometers of roads will have ben ready, as well as electricity supply, gas and water supply, sewerage and communications network will have been arranged. From engineering structures there are also planed to be: local water intake, pumping stations, treatment plants of household effluents and rainwater runoff. In addition, a transforming plant of 110/10 kV 50 MW will be put into operation. With a high degree of readiness we plan to build logistics facilities of the sub-park.
The issues of sustainable housing will be solved; the Chinese side has proposed to build several residential buildings in the park area at the expense of technical and economic assistance of China.
– And if we talk not only about the construction?
– We will continue to popularize the project. Without the constant promotion people begin to forget that there is such a Belarusian park. We work with embassies, and now we no longer just talk about what will happen, but about what have been already done there: the infrastructure, the first residents, who have not just received this status, but who have concluded the contracts, received the land, and carried out the first investment. Signing of the contract and becoming a resident on paper is actually nothing, but everything becomes more serious when money relationship begins.
We also plan to start working with the world's leading media. We will start small – with the press the audience of which is a potential investor.
We plan to actively participate in exhibitions. We mainly focus on China; the second market of our interest is the European Union. However, exhibitions in other countries re not left without our attention.
The next step is entering the organization of free economic zones of the industrial parks, for example, of the World Federation of Free Economic Zones.
We are carrying out a point work with Chinese companies. We do not just participate in forums and fairs, we get in contact with a specific list of the firms that previously have showed interest in cooperation with the park. We visit, tell and try to convince that today in Belarus it is better than ever.
Source: BelTA