Alexander Beletsky: "During the last year we have won the trust of our partners"
The General Director of the "Ural Industrial - Ural Polar" Corporation, talks about the key results of 2011.
For the Corporation, the most significant result of the last year in my opinion is the adjustment of the projects` ideology. Now the main task of each sub-project of the Corporation is the socio-economic impact and consequently the profit. Of course, we differ from other companies- we are engaged in the development of the territory. Our primary task is not only to build a power plant, but also to reduce the tariffs. You may ask us about every constructed object, and we will show you where the effect is achieved. For example, since the completion of the construction of the power plant in the village of Harp the tariffs have decreased by 15 percent. Incidentally, we completed and put into operation this power plant in a year, whereas prior to our construction, this was left for more than 5 years without conservation.
Over the period of the last year we have managed to win major confidence of the investors. Previously, many did not believe that specific construction objects will be commissioned on time. However, over the last year we have commissioned numerous objects. Independently we built residential houses, a fire station in Khanty-Mansiysk, and many more. But I believe that one of our biggest achievements is that we have managed to exclude the budgetary funds from the Northern latitudinal railway project (NLR). Therefore, we have confirmed the concept that eliminates the need for the federal budget.
I must say that the main problem of the NLR project was not the financial model, but the question of whether there were funds for the development of Federal target programs. Everyone knows that due to the economic downturn, many Federal programs were put on hold. To carry out budgets was very difficult. In this situation we could have waited and begged for the budget money by debating in offices. But instead we have decided to think of how to optimize the project in order to exclude the funding from the budget. That's what we have been doing. We have completely reworked the design documentation, involving leading Russian and foreign companies. As a result, the construction cost was decreased by more than a third. All of these actions fit into the designated ideology of the Prime Minister of Russia, that any major-project, except the solutions for a socio-territorial problems, should have a real payback period and a clear performance.
A full economic transparency of the project was confirmed when during the presidential visit to the Czech Republic the agreement on a strategic financing by the Czech and the Russian banks of the construction project «North latitudinal railway» was signed. The loan portfolio for the project will be at least 1.5 billion Euros of concessional financing, with the involvement of the government support from both countries.
Also I would especially like to mention the "Polar quartz" project. We had to resolve the problems which the old management announced completed, having mastered huge amounts of money. Two billion which were allocated to us were spent repaying credits taken by the former management, and today we are completing the construction of the first processing complex for 300 million. I highlight, that we are creating a production, which is a first of its kind in the country. These are the high-tech technologies, which the country's leaders are talking about.
With the adjustment of the ideology of the Corporation in the last year, we have also managed to break the psychological element. We believe that the shareholders - the subjects of the Russian Federation, represented by their executive agencies - should receive dividends on their investment. And in 2011 this task, albeit it in small amounts, was solved. The objective for the following year is to get at least a billion in profit. The new policy does not contradict the goals of regional development. For us, it does not matter that the payback period of the railway line will be 16 - 20 years. The main objective is that any project pays off, even if it is long term.
A logical consequence of the new ideology was the confidence raise in our Corporation. Now people understand that we do not rush with loud and empty ideas, but actually carry them out to a logical conclusion. Last year we have started from scratch a significant proportion of projects and so far we are ahead of schedule. For example, more than 2 billion rubles were invested in the construction of a bridge across the river Nadym, and by March-April 2012 people will be able to indentify its shape. In addition, we have attracted 14 billion rubles of investments for the construction of electric power facilities and are now in planning of more new construction sites.
Talking about our objectives for the next year, the first one will be to work with the investors on issues related to the geological exploration. Unfortunately these issues have already taken a long time, and provided no acceptable results so far. The major impact in this area is the economic downturn. Primarily investors are attracted to the projects with a shot payback period, whereas projects related to the geological exploration are usually long-term projects.
Therefore the goal for the first half of 2012 is to strengthen this work.
To highlight other objectives for the coming year, I stress the seriousness of our plans in the lumber industry. In addition, it was proposed to crisis manage the "Rezhnikel" and "Ufaleynickel". There is now a very difficult situation. The owner does not want to run the enterprise with the equipment from the 1930s, and with a huge debt ... All these factors may lead to a mass redundancy. The decision on this matter is not yet made, but if the task is posed, I think we will in fact do the crisis management. We will not abandon the staff!
Another line of work is associated with the means of communication. Already this year, in conjunction with Rostelecom, we have successfully begun to work on building of a fiber-optic line. In the long term we plan to offer a project to lay the cables in a single tunnel, which will make cities of the Urals Federal District more beautiful, and communication networks –fast and more reliable. Actually, Tyumen for example, already has a positive experience in this area and we are ready to take on the task of introducing this practice in other cities of the region.
We continue to work on sales of electricity and have recently purchased a small sales package of Ugra utility company. We are planning to bid on the privatization of YUTEK. For us, it may become a base for the expansion in all areas of energetics.
In conclusion, I would like to say that the year 2011 was a very successful one for the Corporation. I hope that all of the objectives for the next year will be reached.I take this opportunity to congratulate all of our colleagues, partners and everyone else with the New Year! Wishing you all lots of luck, happiness, plenty of good health and all the best!
Based on materials from the interview with news agency "ITAR-TASS - Ural"