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  • The Head of «Razvitie «Corporation» JSC Mikhail Savchenko: «Banks always would find money for the actual investor»

The Head of «Razvitie «Corporation» JSC Mikhail Savchenko: «Banks always would find money for the actual investor»
31.05.2016

Ruble devaluation led to the imported equipment prices rise resulted in an increase in the domestic investment value. Against this backdrop many investors chose to «take a break» in the implementation of the announced plans. Belgorod region is no exception in this trend. However, regional authorities see a positive trend in the economy assured in the near future the mass return of investors to their projects. Evidence of this is a series of projects in dairy farming as well as extensive work on the greenhouses construction of in the region. General Director of Belgorod region «Razvitie «Corporation» JSC which is in charge of the largest investment projects in the region, Mikhail Savchenko informed  «Abireg» on  how investors accommodate  to current conditions and what assistance can be granted by regional authorities.

- Tell us about the main projects corporation are working on now?

- Corporation administrates Group of companies «Green Valley» projects in the field of dairy farming.  Which now construct dairy farms on the territory of Korochansky and Shebekino districts of Belgorod region with an investment volume of more than 2.5 billion rubles. We have established good partnership relations with this company.

Additionally, fermented soybean protein production is organized in the region. The plant will be created in Shebekino district. The total budget for this project is about 300 million rubles. The fermented soy protein «Soykolak» - a feed additive with improved properties and a high content of proteins. Russian animal feed industry market is open for this product. It would partially solve the problem of import substitution and protein components will reduce the cost of feed production. We also have several other projects in various stages of implementation but due to agreements with the investor we have no comments on them till the certain stages of their implementation.

- What does the supervisory responsibility means, what aspects of interaction with investors it affects?

- We understand that it is difficult to start the project on the territory of an unknown region, so we are assisting investor’s localization in the region working with state and municipal authorities. First of all, it is timely assistance in solving certain tasks of the project: to get needed paper or to hold the necessary expertise. Each project has its own specifics and may have their own characteristic features and it is not always a financial support. Common efforts and clear communication provides synergy for speedy implementation of the project to life or even a good idea can get to "no". There is no single template. The main thing is to work out the decision in time to maintain financial efficiency of the project.

- How to solve the problem of projects financing ensuring now in expensive credit conditions.

-I would not shift all the problems at banks. If you have a project and a real initiator there will always be money for him. In addition one must understand that the bank is also a business and it is advantageous to most expensive invest their money. Most often this is the provision of credit. The bank in its turn is also adjusted to the market. Another thing is whether entrepreneurs are ready to use the money for such a price, as it is important to further development. There are difficulties associated with high credit rates, but there is a decrease already.

In addition to financial problems for investors the sales markets is a second equally important point. Now in most favorable conditions were companies whose projects are related to import substitution, there are broad prospects for them.

In general, investors start projects and banks are willing to lend a qualitative idea worked.

- How fast do you think investors can adapt to the situation?

- Situation in each industry differs. All depends on the foreign policy and the economy as well as the complexity of the production itself. If we take, for example, vegetable market, I think that by 2020 we will be able to close the market needs. This is quite a feasible task especially since the demand for these products is very large. Investors are now actively involved in the process of building greenhouses, while their appearance is not visible now in the majority they are in preparation. From the idea to its realization may take more than one month or and maybe more than one year. In the near future I predict a major boom in the construction of the greenhouses.

- Belgorod region announced the construction of 500 hectares of greenhouses. Some complexes have already been launched. Can you estimate how much work has already been done?

- I can say that now the plans have not changed, we believe the goal is achievable. Every year we put into operation the new greenhouse, now we have around 80 hectares. In the development stage of the project preparation and construction of about 200 hectares. This is something that with 90% probability will be built in the next few years. I think that they will launch a major leap forward in this sector. We have an understanding of how to bring the space up to 500 hectares. Most importantly, we know where it can be placed and what is needed; there are a number of investors with whom negotiations are in process.

When the problems began in the financial market, many scraped to projects. But none of the projects initiators did not abandon their commitments. Projects were suspended due to objective reasons. At a minimum investor had to recalculate its financial model taking into account the fact that most of the equipment supplied from abroad. Positive vector appeared a little more than six months ago when President Vladimir Putin at a meeting on the development of agriculture in Rostov-on-Don suggested the idea of ​​using FGC networks to reduce the cost of energy in greenhouse horticulture. This idea has become a new impetus to the industry development,  it has stimulated interest from major investors in the implementation of projects in this direction. Investors perked up now, I am sure they will bring their projects to the end.

- How has the cost per greenhouse hectare changed after equipment price rise?

- Project cost can vary greatly depending on the configuration. But we can say that in the pre-crisis years the construction of 1 hectare of greenhouses had to be from 100 to 250 million rubles. I cannot say that prices have increased, but it hardly can be built for 100 million. The average price ranges from 200-250 million rubles. At the same time each project may have different technological solutions. 

- Previously the media reported that Arkady Abramovich is interested greenhouse construction in Belgorod region. Is this true, and what kind of project is it?

- It makes no sense to hide the fact that «Sigma Capital» has established company «Greenhouse» specializing in horticulture in the Belgorod region. At the moment the project is in a detailed study stage. We hope that it will be implemented in our region.

- You are recently the representative to the Belgorod Regional Duma.  On what bills are working now?

- There are a lot of work directions. In my view the deputy is an intermediary between the people and the authorities. It is important that this activity was the most effective.  The deputy is not only the laws generator he, above all, the analyst and should be able to select and implement the right ideas in the law, wishes of those people who addresses him. I have been often addressed with requests. Now we generalize and systematize them to develop the right solution.

Based on Business Information Agency ABIREG.RU materials.

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