Why new projects of public-private partnership have not appeared in Rostov for a long time and whether Rostov needs new Rostselmash or Rostvertol, said Svetlana Kambulova, Deputy Head of Administration for Economics.

— Svetlana Anatolyevna, I would like to first talk about the fate of the famous Paramonovsk warehouses. Several years ago, an investor appeared at the facility (the Alliance-M company, 20% of which belongs to Yuzhny Capital LLC, President of FC Rostov Artashes Arutyunyants). At first there was a lot of information about his plans, but for a long time there has been silence around the project, nothing is happening on this territory. Is the project alive?

— Paramonovskie warehouses are a federal cultural heritage site. The investor tried to change the object of protection for a long time, went to court and lost.

Everything moves in small steps, which may not be so noticeable. The company completed the necessary work to preserve the window openings and took a number of emergency measures. All completed work was accepted by the Committee for the Protection of Cultural Heritage Sites of the Rostov Region.

Alliance-M LLC planned to develop design documentation for the preservation of the cultural heritage site. However, due to the current situation in the country related to the spread of a new coronavirus infection, the work of the design organizations was suspended, and the project was extended.

— But the investor says, at least in general terms, what he plans to do with the object? What to turn into?

— The project, which was presented at one of the investment councils under the administration of Rostov — if I am not mistaken in 2016 — has not changed. Then the investor said that it would be a public space with exhibition complexes. Today we have information that restoration will be carried out and the historical appearance will be restored. This is a federal monument.

— There are several very successful public-private partnership projects in Rostov. However, they were implemented quite a long time ago and since then there has been nothing new, despite the proposals from the administration. Why is that?

— The economic situation as never before requires the attraction of off-budget investments, and we really stake on a mutually beneficial partnership with investors. The priority projects are those in the sphere of public interest. So, on August 5, a decree was signed «On the approval of the list of objects in relation to which it is possible to conclude agreements on municipal-private partnership.» The list includes 12 objects — land plots for the possible construction of physical culture and sports complexes, park areas, kindergartens. These are potential investment proposals from promising and necessary projects for the city. The list of objects will be updated annually based on the actual needs of the municipality.

Immediately after the publication of this list, we received an appeal from the company with the intention to consider one of the sites for the construction of a dialysis center.

Today there are a number of initiatives and proposals that have been discussed for some time. We have several suggestions for the same cable car. Each potential investor has listened to us and is now trying to form his own vision of what the project should be.

At the same time, to everyone who comes to us with such a proposal, we say: «Everything that depends on the municipality will be done as soon as possible.» These are questions with the land, some kind of agreements, and so on.

In addition to the cable car, they came to us with a proposal for a smart city and smart stops, there are proposals for the installation of outdoor toilets, and so on.

Unfortunately, today we cannot boast of a concrete new project, according to which all preliminary stages have been passed.

— Several years ago, the administration said that it was planned to give the station square to the concession. Even the terms were called.

— This is still at the level of discussions. You understand, in order to formally form an initiative, which we will consider and then hold a tender on it, the investor must take into account all the risks, calculate whether a grant from the grantor is needed to implement the project, that is, calculate the financial and economic model and enter with an official appeal ... As it was, for example, with the initiative to build a surgical building of the Central City Hospital. An official proposal was received from the investor, but the proposed financial and economic model, the presented calculations were not approved. Having weighed all the pros and cons, we decided to implement this project at the expense of budget funds. And currently the design estimates are being adjusted.

— In your opinion, the absence of new PPP projects in Rostov is due to the fact that the most successful sections — the embankment and the Revolution Park — are already occupied, the lack of the necessary regulatory framework, or is it that the times are not right now?

— I think it's still a matter of the financial situation. The necessary regulatory framework, both at the federal level and at the regional and municipal levels, has been formed. In recent years, there have been a lot of regulatory acts that allow us to implement PPP projects. But every investor primarily considers the economy, the payback period of the project. In addition, such investments require free money. And the financial situation, which has developed not only in the Rostov region and Russia, but also in the world, now forces us to make well-considered decisions.

— The main package of private investments in Rostov has been associated with housing construction for many years. Sometimes the list is diluted with hotels and malls. In your opinion, is the absence of new production facilities in the list of investment projects a problem?

— Let's separate two concepts — investments in general and a list of investment projects. They are closely related, but they are still different things. If we take last year — statistics for 2020 are available only for the first quarter — then the volume of investments in the economy of Rostov amounted to 119 billion rubles. Of these, only 10 billion are those projects that are included in our investment list. And if we take investments in large and medium-sized enterprises, then housing construction accounts for only 10%. The main thing is the investments of our industrial enterprises.

Now let's take a list. It does not include all investment projects, but only those that the investor has declared himself and which have a need for one or another support from the city administration. Yes, today almost 40% of our list is residential construction. But this does not mean that these are all our investments. Last year, for example, in Rostov, two industrial projects were commissioned for a total of 905 million rubles.

— If you will allow me, I will reformulate the question. Does Rostov, in your opinion, need a conditionally new «Rostselmash» or «Rostvertol», or does the city already at that stage of development when it does not need city-forming giant factories?

— Rostov is not only the center of the agglomeration, but also of the South of Russia. The main industrial backbone in the city has been formed. Today we focus not on production facilities, but on high-tech production, support for start-ups, and innovation. In the conditions of the emergence of a new type of economy, much attention is paid to environmental issues; there is a tendency to locate production facilities outside the city limits.

Remember, ten years ago it was decided that all industrial enterprises should gradually move from the city center to the outskirts. As a result, Donskoy Tabak changed its location, and Rostvertol is also developing a new site near Bataisk.

— That is, we are talking about some kind of investment evolution?

— Yes. Speaking about investments, our strategy until 2035 clearly states that Rostov is a pole of innovative growth. This is how we position ourselves and place our stake on high-tech production and innovative development. It's about the same computer technologies.

— But I don’t remember any high-profile projects in this area in Rostov.

— Innovation sites have already been created on the basis of our leading universities, there is a cluster «Northern Constellation» and a number of other similar initiatives. There are actually many innovative projects. Technical developments are ongoing.

Last year we launched an innovative business accelerator. 60 projects went there, 20 entrepreneurs underwent training, 10 projects were graduated, and 3 eventually reached grant support. This is a good conversion, especially for innovation startups. The project turned out to be in demand and continued work this year. I am sure that there will be projects that will make a breakthrough, we have created all the conditions for this.

Again, Rostov, as the capital of the South and as a center of agglomeration, should rely on the development of high-tech and innovative industries, and not on the construction of another Rostselmash or Rostvertol in the city center or somewhere else on its territory. We have the largest enterprises that are known all over the world. These are flagships, and I am sure that they will continue to work and develop. Today, I see the development of the economy as a whole thanks to the growth of small business.

Source: www.donnews.ru