100 Projects for Bashkortostan
If you have a great idea, you need 50 million rubles or more to implement it, but if you have only one-fifth of that amount, you could try putting your idea into practice in Bashkortostan. To celebrate the Republic’s centennial, its Chamber of Commerce and Industry (CCI) has proposed implementing 100 business projects by that momentous date. Ideas may be suggested by both Russian and foreign legal entities, and the winners will receive financing, government support on a large number of issues, plus media coverage.
In 2019, the Republic of Bashkortostan will be celebrating its centennial and it intends to usher in the anniversary with a hundred new investment projects.
Bashkortostan’s CCI entrepreneurial campaign was launched in October 2016 and will last for three years. Its principal aim is to aid businesses in promoting their projects, which will simultaneously result in improving the Republic’s investment climate and the quality of life. The Chamber’s experts are confident that attracting private investments will provide Bashkortostan with new manufacturing enterprises and new jobs. Businesses, in turn, will get the green light for their projects – their ‘anniversary’ status will help to speed up approval of the preliminary permissions.
In addition, the projects that make it into the top 100 will receive assistance in raising finances, in getting their facilities connected to utilities, and in selling – and exporting – their products. As a bonus, the campaign participants will receive media coverage, which will increase the image and reputational value of their businesses.
“Bashkortostan has never seen such a large-scale entrepreneurial campaign. The project has been initiated by businesses for businesses,” Bashkortostan’s CCI says. “The Chamber of Commerce and Industry will serve as the main communication platform.”
Any individual entrepreneurs and Russian or foreign legal entities intending to implement an investment project in Bashkortostan in 2017 to 2019 may participate in the project. The project must be economically efficient and financially feasible, with capital investments of no less than 50 million rubles. Another condition is having own finances of no less than 20% of the project’s cost.
Applications may be submitted on the campaign’s official website, www.100rb.ru.
President of Bashkortostan Rustem Khamitov actively supports the initiative proposed by the Chamber of Commerce and Industry. Mr. Khamitov has expressed his willingness to participate personally in reviewing the applications and to control implementation of the investment projects.
KPMG, a big international group of companies offering audit, consulting and tax services, is a partner of the entrepreneurial initiative proposed by Bashkortostan’s CCI. An agreement on mutually beneficial cooperation between Bashkortostan and KPMG was signed on 13 October 2016 in New Delhi, during the BRICS Business Forum.
The agreement with KPMG stipulates that its experts assess the investment projects participating in the entrepreneurial campaign, provide advice, assistance in developing and implementing joint programs, and raise financing for their implementation.
Bashkortostan is already receiving project applications from entrepreneurs. “The applications are very diverse. This is exactly what we wanted: The investment activity has been stirred up in a good way,” says Azat Fazlyev, president of Bashkortostan’s CCI. “People do not apply with their current projects, which they would’ve implemented in any case; they have rifled through their portfolios and are submitting projects that had been shelved for various reasons, including insufficient financing. Surprisingly, nearly half the projects are in agriculture. It appears that the sanctions have boosted investors’ interest in this sphere.”
Bulat Asadullin, vice president of Bashkortostan’s CCI, believes that the region has a large number of so-called dormant projects, that is, ones that are currently in the passive stage, and if the initiative succeeds in waking up at least some of them, it will be a good result. “We will be glad of any projects, irrespective of the sector in which they will be implemented. And if, besides the entrepreneur’s tasks, this project fulfils our global task, that is, improves Bashkortostan’s socioeconomic situation, then we are going the same way!” Bulat Asadullin says. “It is important to note that the beautiful number 100 is far from the final figure. We will happily work with a larger number of projects. This will confirm the true success of our campaign.”