Investment potential of the construction industry of the Pskov region

Investment potential of the construction industry of the Pskov region

02 Distinctive features of the Region Western gateway To Russia High potential for business development Proximity to the Baltic Sea ports Comfortable transport accessibility Proximity to major markets of European Union Proximity to the major markets of Russia-Moscow and Saint-Petersburg Affordable infrastructure Comfortable conditions for life Availability of human resources Federal project of SEZ IPT Moglino

03 Convenient transport accessibility Unique location St. Petersburg Pskov 280 km Highways Key arterial roads Rail network Major transport Entry Exit Junctions Tallinn-Pskov 360 km Key cities Riga Pskov 300 km Moscow Velikie Luki 450 km Moscow Pskov 750 km

04 Characteristics of the sphere of housing construction of the Pskov region Commissioning of residential buildings in 2009-2014., sq. m Dynamics of the volume of work performed by kind of economic activity "Construction", USD 191789 149756 177749 214657 184649 105 145 160 161 185 2010 2011 2012 2013 2014 Percentage to the previous year 2010 2011 2012 2013 2014 (in constant prices): 71,5% 125,7% 89,1 % 97,1% 115,9% 279 Totally in the region there are 279 construction companies The average cost of housing in the primary market in 2014,USD per 1 m2 850 790 725 640 600 The material of the external walls of houses (2014) Lightweight concrete blocks House panel Brick house Ленинградская область Тверская область Новгородская область Смоленская область Псковская область

05 Characteristics of the production of building materials The production of basic building materials Name 2012 2013 2014 Nonmetallic building materials, thousand m3 1465 1800 1322 Timber,m2 151,1 144,8 118 The blocks window,thousand m2 12 14,5 10,4 Blocks door, thousand m2 133,1 133,2 118,4 Designs and details of precast concrete,th m3 76,9 90,8 110 The index of industrial production construction materials and other nonmetallic mineral products% 104,1 105,8 95,3 2011 2012 2013

06 The potential of the Pskov region in the production of building materials Government support Favorable conditions for doing business Skilled manpower Sites for business Sales potential Affordable prices resources There are opportunities for cooperation production Transport links to major centres of demand The availability of raw materials in the region

07 Measures of state support In order to support housing construction designed The state program "Provision of population with quality housing and housing services for 2014-2020" Areas of support: 1. The housing development 2. Reconstruction of engineering infrastructure 3. State financing of capital repairs of the housing stock Investor 4. Providing for the construction of engineering prepared by the state land 5. The state order for the construction of housing 6. Tax benefits

08 Favorable conditions for business development Individual support of an investor at all stages of project implementation Special support measures in strategic sectors (tax privileges, subsidies) Support of small and medium enterprises (subsidizing, microloans, sales support) Provision of infrastructure (opportunity to join investment programs in the housing and utility sector) Quick search for land plots Property tax Benefit property tax Profit tax Benefit profit tax Tax privileges are provided for 5 years

09 Human resources All students 27632 people. Graduates in 2014 2380 people. 43% SVE 57% HPE Professional education 22 regional institutions of secondary vocational education and 12 regional institutions of higher education, Number of specialties - 80 530 Pskov 670 Tolyatti 750 Kaluga 875 Lipetsk 950 St. Petersburg engineer-technologist Average annual salary, USD 410 Pskov 625 Tolyatti 650 Kaluga 760 Lipetsk 700 St. Petersburg working specialties Main areas of professional training 30% of graduates engineering, 30% of workers Architecture and construction Industrial and civil construction The construction and operation of buildings and constructions construction of roads Graduates of the specialty "Construction"- 748 people. Examination and management of real estate architecture transport construction

10 Investment sites Investment site in Pskov region We offer investment sites of various type for production location in any area of Pskov region Amount of investment sites in the region «greenfield» - 118 «brauwnfield» -36 Quick search for land plots Individual support of an investor at all stages of project implementation Moglino SEZ Developed land sites Built up office space We offer developed land plots of variable sizes to anchor tenants, OEMs and large scale manufacturers who wish to build themselves Investment grade office space of variable sizes with requisite facilities & amenities Single / Multi-tenanted pre-built industrial units of various sizes offered to investors

11 Available infrastructure Price for technological connection to power supply grid, USD 530 270 180 140 The tariff for cold water 285 USD/1000 м3 St Petersburg 80 St Petersburg region Tver Gas tariff, USD/1000m3 75 70 Pskov The price of electricity (110kV) 50 USD МВт/ч Kaluga Lipetsk Pskov The tariff for thermal energy 20 USD/Gcal

12 Market construction materials in Russia Market capacity of production of construction materials (2014) $ 22.5 billion CAPACITY CONSTRUCTION MATERIALS MARKET IN RUSSIA (2014) $ 9,5 billion The main directions of the import substitution Volume ratio of domestic and import production of market Domestic production Imports 30% 70% floor coverings ceramic tile gypsum plasterboard wallpaper paintwork material heat-insulating dry construction mixes brick cement 20 22 Domestic production,% 65 80 80 95 90 75 90 Structure of consumption of construction materials 2013 30% 10% 60% construction companies Construction and maintenance crews private customers

13 Opportunities for business location in the production of construction materials Production of panels and other designs for large-panel housing Production of ceramic bricks Manufacture of ceramic tiles Production of precast concrete structures and parts High-level processing production Manufacture of wooden frame-panel block Manufacture of metal products, steel, iron, nonferrous metals, alloys

14 Construction materials production in Moglino SEZ Pskov already produces concrete and reinforced concrete cellular and commercial concrete, concrete grout timber ceramic tiles bricks building lime building board On-site available raw materials: Industrial wood, peat, lime, sand, plaster, high- and low-melting clay, raw materials for mineral colors Construction materials production Construction materials cluster 40 ha Land lots from 1 ha of various configuration

15 The potential for sales Increased demand for construction materials Government support to increase the annual volume of housing of economy class The trend towards the construction of houses and cottages In Pskov, St. Petersburg and the Leningrad region is planned largescale housing construction Need to replace the housing stock in Pskov The substitution of goods Proximity to major Russian and European centres of production and consumption: the Scandinavian countries, Germany, France, Italy and Belarus.

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