Single-industry Towns Development Fund and the Republic of Tatarstan signed an agreement on co-financing the construction of infrastructure for the “Elabuga” distribution center

21 January 2020, Tuesday

The Single-industry Towns Development Fund will finance the construction of off-site networks for the future wholesale distribution center “Elabuga” of X5 Retail Group in the Republic of Tatarstan. The allocated funds will amount to almost 150 million rubles.

It is planned that the wholesale distribution center (WDC) for the X5 Retail Group with an area of ​​17,164 square meters in the city of Elabuga will be commissioned in the second quarter of 2020. Construction is carried out by Romex-Kuban OOO. The total investment in the project will amount to 976.7 million rubles. During the implementation of the project, 269 new jobs will be created.

With support of the Single-industry Towns Development Fund, an access road and off-site networks will be constructed for implementation of this investment project: water supply, sanitation, and electricity supply facilities. The cost of their construction is 192.4 million rubles, almost 150 million rubles of which - at the expense of the Fund and 42.4 million rubles - at the expense of the budget of the Republic of Tatarstan.

The construction of a logistics center and its infrastructure in Elabuga will allow expanding the range and affordability of food and essential goods for residents, reducing the costs of local producers for logistics and organizing the supply of goods and products to distributors.

The wholesale and distribution center will solve both economic and social problems, uniting market participants around itself - raw materials producers, finished goods manufacturers, companies involved in wholesale export-import deliveries, entrepreneurs in transportation and packaging sectors for various types of goods.

“The distribution center will take over the functions of pre-packaging, packaging, labeling, certification, and local labor resources will be involved in cooperation at each stage of the supply chain, said Farid Abdulganiyev, Minister of Economy of the Republic of Tatarstan. - We highly appreciate the commercial and social prospects of such projects, they will contribute to diversification of the economy of the single-industry town of Elabuga, and promotion of products of local producers, including small and medium-sized enterprises”.

Let us recall that the application for co-financing was signed by the President of the Republic of Tatarstan Rustam Minnikhanov and sent to the Fund on September 18, 2019. The authorized body for interaction with the Fund, which supervised the process of preparing and filing an application, is the Ministry of Economy of Tatarstan.

“Investments in construction of a distribution center are of strategic importance: the project has a favorable geographical location, this will ensure transport accessibility and connectivity with neighboring regions, provide goods to the entire Volga Federal District”, said Olga Makayeva, Deputy General Director of the Single-industry Towns Development Fund.

She also recalled that in addition to Elabuga, the Fund’s support measures today apply to other single-industry towns of the republic. Thanks to such cooperation, infrastructure projects are successfully implemented in the single-industry towns of Naberezhnye Chelny, Zelenodolsk and Nizhnekamsk with a total value of over 3.3 billion rubles, including more than 2.4 billion rubles from the Fund. This helps to attract investment in their economy and create new workplaces.

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