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. Last Updated: 07/27/2016

Regional Economic Digest



The regional fund of industry development and support posted results of the first stage of reforming "Pavlovskiy bus" and "Zavolzhskiy motor factory."

From January till August this year consulting firms worked at both factories to elaborate the reforming program.
The current problems of ZMZ are attributed to the fact that it works in close cooperation with "GAZ". In present the factory delivers up to 86% of motors to "GAZ". As the recent situation at "GAZ" is unstable, it affects ZMZ negatively. Thus, in the first quarter of 2000 the factory delivered motors at a loss. In the first half of the year the portion of profit for the products delivered to GAZ made only 60%.
The situation was improved due to the factory's wide dealers network, acting throughout Russia: the factory sold spare parts, non-ferrous cast products and other goods. Perspective plans stipulate increased production of spare parts.
In contrast to ZMZ, "Pavlosvskiy bus" makes final products. According to the consulting firm representatives, the cause for loosing financial stability is the huge investments, made within the recent three-four years, which were sometimes economically not grounded. As a result the factory was tied up in debts: By April 2000 the factory's debt amounted to RUR 700 million. The operation nearly stopped, but the factory managed to survive due to an efficient sales effort.
In cooperation with the factory management the consulting firms offered a program for reform: it stipulates that "Pavlovskiy bus" becomes the Russian leader in passenger bus production within several years. In 2000 the estimated volume of production will make 8,120 buses, 620 buses more than in 1999.

"Nizhegorodskiye Novosti" (Nizhniy Novgorod), 24.08.2000

The Nizhniy Novgorod regional arbitration court pronounced "Gormetrostroi" insolvent.

The arbitration court introduced the external management procedures immediately, avoiding the financial rehabilitation stage and debt freezing. The current debt of the factory amounts to RUR 111 million. The wear of main assets reached the critical level. The company could not find investors for technical refurbishment. All the above facts caused the arbitration court to accelerate introduction of external management to prevent the final collapse of equipment.
I.Korostyliev, external manager of the company, has to satisfy the creditors claims within a year, particularly the claims of the State Pension fund, which initiated the bankruptcy proceedings.

"Nizhegorodskaya Pravda" (Nizhniy Novgorod), 24.08.2000

The Legislative Assembly guaranteed the currency credit granted to "Nizhniy Novgorod fair" for a business- hotel construction.

From now on Nizhniy Novgorod region (whose debt tends to grow, according to the deputies) guarantees the $12,500 thousand debt granted by a Czech bank. The maturity period of the debt is 5 years.
B.Bessarab, general director of "Nizhniy Novgorod fair" is sure that company played it right. The 4-star business hotel for 220 people may be commissioned within 14 months and will certainly repay the money invested into construction, as there are no hotels of this kind in Nizhniy Novgorod.

"Nizhegorodskiy Rabochiy" (Nizhniy Novgorod), 24.08.2000


The Volgograd regional department of finance drew budget results for the first half of 2000.

In the first half of 2000 the consolidated budget gains of the Volgograd region amounted to RUR 4,162 billion, making 54% from the year plan. Compared to the first half of 1999, the budget gains increased by RUR 1,781 million. In the budget structure the portion of profit tax amounted to 33%, income tax - 19%, VAT - 10% and tax on property - 9%.
The budget expenditures amounted to RUR 4,227 million, RUR 1,738 million above the last year's. The plan on expenditures was met at 49%.
Financing of a number of budget issues increased several times over 1999. Thus, financing of social policy made 288.4% of the plan, financing of agriculture and fishing - 240.9%, environmental protection - 306%, transport and road maintenance - 235.6%.

The profit of the budget rose by RUR 563.8 million (35.6%) over 1999.
Practically every district of the Volgograd region reported the budget fulfillment rates from 100% to 190%. Only four areas of the region did not meet the plan on profits: Kalachayevskiy district (87%), Kletskiy district (81%), Sredneakhtubinsk (62%) and Octiabrskiy (59%) districts.

"Gorodskiye vesti" (Volgograd), 24.08.2000

"EcoPromInvest" (EPI Co, Moscow) to participate in the project for construction of the hard waste processing factory.

The Moscow company is being credited by the American company "Newark Capital Ventures Inc."
Last September the regional administration entered an agreement on cooperation with "EcoPromInvest". Recently the sides elaborate the feasibility study for the project, which stipulates construction of two factories.
Pursuant the agreement the regional administration would lease the two land plots with the total area of 40 and ready communications (electricity, gas, approach roads) to EPI Co on a free-of-charge basis and on constant use conditions. The leasing period is 49 years.
The sites for construction have been selected: one is located in Krasnoarmeisk district, the other - in Gorodishe. The objects will have the daily capacity of 500 tons. The approximate cost of the objects is $40 million.
The project will be financed by EPI Co. Besides, the company undertakes project and construction works, as well as equipment deliveries. The company will establish a subsidiary office in Volgograd, which will be entitled to execute construction and operation works.

"Gorodskiye vesti" (Volgograd), 24.08.2000


Victor Tolokonskiy, head of the regional administration, approved the project of the program for developing telephone communications in the rural areas in 2001-2005.

In present the regional telephone network consists of 616 stations with the total capacity of 178 thousand telephone numbers. The ration of telephone numbers per 100 people living in the rural area is low - slightly above 10 numbers (in Novosibirsk this ration of thrice as big).
The program for developing telephone communications in the rural areas for 2001-2005 stipulates installation of telephones in 50 villages of Barabinskiy, Karasukskiy, Novosibirsk and other districts; increasing the existing number of telephones in all areas of the Novosibirsk region; providing good quality of telephone connections at 80% of the regional territory.
The required volume of investments is estimated at RUR 400 million.

"Vecherniy Novosibirsk" (Novosibirsk), 24.08.00


Open mining "Chernigovets" exceeded the plan target for August by 10 thousand tons of coal.

The plan for stripping has been exceeded by 200 thousand cubic meters. The auto-stripping plan has been exceeded by 130 thousand cubic meters, the railway scheme stripping plan - by 50 thousand cubic meters. The total drilled area amounted to 65 thousand running meters, with the planned estimates at 63 thousand running meters.
The company continues with the technical refurbishment program. About $6 million has been allocated for new equipment purchase. In the beginning of the year the company acquired 6 "BelAZ" trucks with the capacity of 120 tons. The equipment wear averages to 80%: the most susceptible equipment was the drilling park, showing the 100% wear.
The company continues with the reconstruction of an enrichment factory. Currently a new sludge device, with no analogue in Russia, is being installed at the factory. The new device is said to increase the coal processing volume.

"Kuzbass" (Kemerovo), 24.08.00


Regular stockholders meetings are held in subsidiaries of Krasnoyarsk coal company.

The meetings are held to draw economic results for Berezovskiy, Nazarovskiy and Borodinskiy open mining pits and make perspective development plans. The representatives of the coal company will summon a press conference on the results of the shareholders meetings.

"Segodniashniaya gazeta" (Krasnoyarsk), 24.08.2000

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