Dmitry Kozak explained that there are no problems to finance federal projects in 2008 to 2010, but the difficulties will emerge starting from 2011.
Photo: Sergey Mikheev
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The Project Incapacity
Russia’s Regional Development Minister Dmitry Kozak acknowledged yesterday that the wealth of Investment Fund wouldn’t suffice even to finance the endorsed federal projects. In Kozak’s ministry, they are waiting for Finance Ministry to decide on the amount to be appropriated to Investment Fund from the budget of 2009 to 2011. The shortage at Investment Fund may reach 600 billion ruble by 2016, and in the Regional Development Ministry, they apprehend that a number of federal projects won’t be co-funded at all. The Investment Commission of the Fund will focus this week only on the regional projects, for which implementation the Finance Ministry has firmly promised to allocate 80 billion ruble a year.
Regional Development Ministry has faced material difficulties in part of financing the federal projects from Investment Fund. “The applications for co-financing big federal projects are incoming and there are quite a lot of them. But we have agreed not to consider them until, together with Finance Ministry, we determine the future filling of Investment Fund in September,” Regional Development Minister Dmitry Kozak acknowledged yesterday after the sitting of Government’s Presidium.
There are no problems with budget funding of federal projects in 2008 through 2010 but the difficulties will begin starting from 2011. “We are to see the perspectives for Investment Fund in 2011 and 2012 and up to 2020,” Kozak emphasized.
Despite that the government’s commission has chosen 20 projects and the plans are to inject 342 billion ruble into them from Investment Fund, no more than 8 billion ruble was spent to the effect in 2006 and 2007. Another 26.5 billion ruble was withdrawn from the Fund for the authorized capitals of Russia’s Venture Company and Russian Investment Fund of Information & Communication Technology.
Nowadays, the real problem of Investment Fund is that most of the undertakings that are being financed from it relate to elaborating feasibility studies for future great construction projects. But when their masterminds attempt to seek money for the actual construction, they will face money shortage. The deficit of Investment Fund will probably exceed 600 billion ruble by 2016, according to Finance Ministry.
www.kommersant.com
All the Article in Russian as of Aug. 05, 2008
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