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National Bank: Whole Belarus to Become Free Economic Zone
The implementation of Decree #1 will boost creation of a free economic zone
(FEZ) almost on the whole territory of Belarus, Piotr Prokopovich, Chairman
of the Board of the National Bank of Belarus, told media on January 30.
Piotr Prokopovich reminded that on November 13, 2007 at the session on the
draft forecast of the socio-economic development, budget and major monetary
guidelines for 2008 the President of Belarus Alexander Lukashenko
commissioned the Council of Ministers and the National Bank to take measures
to attract investments (foreign and domestic) in order to secure high
economic growth in the country.
A joint working group has been set up to fulfill the commission. The group
is engaged in elaborating clarifying regulations , several of which has
already been adopted. In particular, the President of Belarus signed Decree
#1 “On stimulating the production and selling of goods and services” on
January 28.
“Its implementation will practically create all the conditions to set up a
free economic zone on the whole territory of Belarus. The matter concerns
the majority of the regional towns and agro-towns, villages. Large towns and
Minsk do not come within the Decree,” Piotr Prokopovich said.
“We are eager to attract foreign and domestic investments to set up new
companies in the regions. The aforesaid will enhance the living standard in
small towns and rural settlements,” he underlined.
Transit Earnings of Belarus Up 18 Percent to $1.9bn in 2007
In 2007, Belarus’ earnings from transit grew by 18 percent in comparison
with 2006 and totaled
$1.9 billion.
The result has been reached due to joint efforts of the Transport and
Communication Ministry, the State Border Committee and the State Customs
Committee aimed at developing the transport infrastructure, perfecting legal
instruments and removing certain administrative barriers contributed to
boosting many parameters. In 2007 the number of foreign automobiles in
transit via Belarus increased by 32 percent in comparison with 2006, the
transit cargo traffic by 7 percent, passenger trips by railroad by 5
percent, flights of foreign aircraft by 20 percent.
In January-November 2007 the export of services of automobile, railway and
airline transport swelled by 25.1 percent, with over $1.2 billion channeled
into Belarus. In particular the volume of automobile transport services rose
by 36.3 percent to $441.5 million, railway transport by 18.5 percent to
$639.8 million, airline transport by 24.6 percent to $135.7 million.
The foreign trade surplus over the period amounted to $924.4 million (25.1
percent up). In 2008 the export of transport services is supposed to be
raised by 70 percent, with the foreign trade surplus of transport services
secured at $1.66 billion.
Hyatt Starts Building Hotel in Minsk
Hyatt, one
of the world’s premier hotel companies, has started building a five-star
hotel in Minsk. Around $60 million will be poured into the new hotel, which
will have 240 rooms. The project is supposed to be accomplished within two
years.
The hotel
is supposed to be built near Komsomolskoye Lake. The hotel will have only
7-8 storeys in order not to affect the view on the lake. The construction of
another five-star hotel near the Palace of the Republic is supposed to start
soon. Well-known company Kempinski will take part in building it.
According
to Viktor Nikitin, Minsk’s Chief Architect, foreign investors show huge
interest in building various objects in Minsk. “All in all, we have around
20 major investment projects in the stock,” said Minsk’s Chief Architect.
Heineken N.V. Purchases Brewery Company in Belarus
Heineken
will reportedly acquire Syabar's Cypriot parent company from a consortium
led by Detroit Investments Limited (Cyprus) from the International Finance
Corporation.
Heineken
said that the Belarusian beer market is showing double-digit growth, with
annual consumption at almost 4.5 million hectoliters and estimated per
capita consumption at 45 liters.
"Belarus is
a fast-growing market, and this will give us an excellent platform from
which to grow the Heineken brand as well as our imported Russian brands,''
Nico Nusmeier, the Dutch beermaker's president for central and eastern
Europe, said in the statement.
The Syabar
brewery has been operational since October 2005 following the reconstruction
of a state-owned brewery and employs 280 staff. The company produces the
brand Bobrov, number two in the Belarus market, and the recently introduced
premium brand Syabar.
Sales
volume in 2007 is estimated at 600,000 hectoliters, compared to 370,000
hectoliters in 2006, with the technical production capacity at 1.1 million
hectoliters with the possibility of going up to 2.1 million hectoliters.
Belarus’
High-Tech Park to Sign Deal with Lyons Financial Solutions in 1Q
The
Belarusian Park of High Technologies plans to sign an investment agreement
with South Africa’s architectural and construction company Lyons Financial
Solutions in the first quarter of 2008, the director of the administration
of the park, Valery Tsepkalo, told media recently.
“We are at
the final phase preceding the signing. The deal will cover the construction,
management, and functions of the customer. We are now in talks with Lyons
Financial Solutions over technicalities,” Valery Tsepkalo said.
The
High-Tech Park does not speed up the talks, as the need for investment is
not pressing. “We have attracted investment to finance the design and
construction project from our residents. This work will take another six
months. Serious investment will be required only when the final
architectural project has been approved,” he added.
South
Africa’s Lyons Financial Solutions was awarded a contract to act as the
strategic investor in Belarus’ Park of High Technologies in December 2007.
The
High-Tech Park covers 50 hectares in the northeast of Minsk, Belarus’
capital city. The High-Tech Park will enjoy special preferential conditions
for 15 years. The Decree of President Alexander Lukashenko exempted
residents of the High-Tech Park from taxes on revenues and sales of
commodities, work and services, as well as intellectual property rights, and
profit tax. The area under the High-Tech Park is to be exempted from the
land tax for at least three years, and key assets and facilities of the
companies registered in the High-Tech Park will be exempted from the real
estate tax. Residents of the High-Tech Park are to enjoy reduced VAT, import
duties on production equipment, offshore duty, rent rates, etc. Please,
visit
http://www.park.by/en for more details.
Belarusian-Indian IT Centre to Be Set Up in 2008
The
Belarusian-Indian centre of information technologies will be set up on the
base of the High-Tech Park in 2008, Ambassador Extraordinary and
Plenipotentiary of India to Belarus Rajendra Kumar Tyagi told recently the
press conference.
He noted
that last year, a team of Indian experts paid a visit to Belarus to discuss
the setting up of a training centre on the base of the Belarusian High-Tech
Park. In May-June this year, the Indian specialists will arrive in Belarus
to take part in the official opening of the centre, the ambassador noted.
India has a great experience in the sphere of information technologies and
it is ready to share experience with the Belarusian side, the diplomat
highlighted. Belarus has skilled workforce to develop IT sphere
successfully. A team of the Indian specialists will work in the centre, Mr. Rajendra
Kumar Tyagi noted. At present, the sides are discussing the terms of their
work and other organizational issues.
According
to the head of the diplomatic representation, at present Belarus and India
are implementing a wide and successful program of the scientific
cooperation. The countries carry out joint research programs. In line with
the special exchange program, 10 young scientists may take part in the joint
research projects of both the states. Moreover, annually Belarusian students
may have period of probation in India.
Motovelo to Roll Out Pilot Batch of European-Design
Motorcycles in August-September
In August-September 2008, JSC Motovelo will start experimental production of
motorcycles designed by Europe’s leading engineering company Renfrew Group
(UK), Alexander Muravyev, ATEC Holding GmbH Director, recently told to
media. Austrian company ATEC Holding GmbH owns JSC Motovelo at present.
ATEC Holding GmbH invited Renfrew Group specialists to visit Minsk for
negotiations concerning the fast development of modern designs for Minsk
motorcycles. The sides discussed preliminary ideas for future motorcycles.
“By May 2008 we hope to get a prototype of the new motorcycle. In
August-September we will start pilot production,” said Alexander Muravyev.
“The new motorcycles will be available to customers as part of the 2009
line-up”.
In line with Decree # 354 “Certain issues concerning open joint-stock
company Motovelo” of July 26, 2007, as well as conditions stipulated by the
contract for selling JSC Motovelo shares ATEC Holding GmbH undertook to keep
Motovelo specialized in manufacturing motorcycles and bicycles, keep the
company’s trademark and to invest at least $20 million in the company’s
development in 2007-2012. “It is the minimum figure. We will invest as much
as necessary to achieve the set goals. $20 million is just a start,” said
Alexander Muravyev.
Minsk Motorcycle and Bicycle Plant was founded in November 1945. It was
converted into a joint-stock company in 1999. The company offers various
kinds of bicycles, road and sports motorcycles, cargo power buggies, as well
as bicycle trailers, exercise bikes, wheelchairs, spare parts for
motorcycles and bicycles. On January 23, 2007, the State Property Committee
of Belarus and Austrian company ATEC Holding GmbH signed a contract for
selling 99.7 percent of the company’s authorized fund. |
