Russian Ministry of Regional Development submits draft strategy of NCFD development to government

A draft strategy prepared by the Ministry of Regional Development upon the initiative of Alexander Khloponin, ambassador in North Caucasus Federal District and RF vice-Premier, has been submitted to the government, reports Tatiana Konischeva, representative of the Ministry. The Ministry considers three basic scenarios of North Caucasus development: slow, basic and optimum.

The strategy stipulates the implementation of the optimum scenario, in two stages: starting priority projects and improvement of investment environment in 2010-2012, and a phase of active growth in 2013-2025, writes the newspaper "Vedomosti" today.

The strategy plans to develop a tourist and recreation complex of the NCFD - clusters of health and recreation tourism, mountain tourism and beach tourism.

In addition, it is necessary to develop the transport infrastructure. The authors of the strategy consider it necessary to restore railway communication with the Transcaucasia countries, such as Georgia, Armenia and Azerbaijan. On the Caspian Sea shore - from Makhachkala to Derbent - it is proposed to build sea passenger terminals and port facilities in order to develop passenger and freight transportation.

Also, it is necessary to increase the number of banks in North Caucasus, and to this end to establish "more loyal norms of equity capital" for small regional organizations.

The strategy also proposes the creation in the NCFD regions of territorial development zones in which companies may be granted privileges, subsidies, guarantees, simplified rent, and special tariffs on insurance payments.

The strategy must be implemented, in the opinion of the authors, by the North Caucasus Institute of Development, similarly to the Vnesheconombank (external economy bank) (VEB). Each North Caucasus region must have its own agency on attracting investments, which is going to be a branch office of the North Caucasus Institute of Development or its daughter company, runs the strategy.