Dagestan simplifies process of investment projects coordination

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Makhachkala, November 29, 2018. On November 26, the Committee on Agrarian Policy and Environmental Management of the republican Legislative Assembly gathered to a regular sitting chaired by the Committee head Asiyat Aliyeva. The deputy Speaker of the Legislative Assembly RD Makhmud Makhmudov, the parliament deputies, the heads of municipalities and investors attended the meeting to discuss the amendments to the Law of the Republic of Dagestan “On establishing criteria for the social, cultural and household facilities, the large-scale investment projects to accommodate (implement) which the land plots to the legal entities without bidding are leased”. It was noted that the draft law was submitted by the Head of Dagestan, Vladimir Vasilyev and proposed for adoption at the first or second readings.

The Minister of Economy and Territorial Development of the Republic of Dagestan Osman Khasbulatov informed in detail about the provisions of the law. Khasbulatov drew attention to the fact that, according to paragraph 1 of Article 3 of Law No. 94, the state-owned or municipal land is leased to the legal entities without bidding for the implementation of large-scale investment projects in the event that it possesses documented financial support for its implementation at least 60% of its value, but the project’s own funds are not specified. The proposed draft law provides for documentary evidence of financial support for their implementation in the amount of at least 20% of the investor’s own funds of the total project cost, the minister pointed out.

Speaking about the amendments to the law, Khasbulatov told about the differentiated categorization of the criteria made for the large-scale investment projects by territory, taking into account the types of economic activity of the projects. For some types of activities, the indicators of the number of additional jobs created during the implementation of the large-scale investment project in the context of territorial zones have been reduced. When analyzing the regulatory legal acts of other regions of Russia, it was revealed that in a number of regions such an indicator as the number of additional jobs was not generally taken into account when deciding whether to provide a land plot without bidding for the implementation of a large-scale investment project.
Monitoring in Dagestan revealed that the number of jobs created depends on the type of economic activity of the investment project.

According to Osman Khasbulatov, the adoption of this bill will greatly facilitate the implementation of the large-scale investment projects in Dagestan. Thus, the lease agreement for a land plot owned by the state or municipal government in accordance with this draft law will be concluded during the bidding process.

The speakers agreed that the draft law should be supported. The Committee members decided to submit the draft law to the Bureau for inclusion in the agenda of the upcoming parliamentary session.

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