How Decree No. 506 “On the Development of the Orsha District of the Vitebsk Region” Changes the Lives of Local Residents
The general interest in the Orsha district was focused in 2019 with the adoption of Decree No. 506 on the development of this region, which was signed by the President on December 31, 2018. Its implementation became a kind of experiment, which should demonstrate how increased attention to all spheres of life of a specific region can raise it to a completely new level, making it attractive for investment and comfortable for its residents. In case of success, the experience gained will be extended to other regions of the country.
— We planned the implementation of projects and the main volume of investments for 2019-2020 for the following list of enterprises: the Tool Plant, the Automatic Control Devices Plant (PAK Plant), "Legmash", "Orshaagroprommash", "Signal Equipment", the aircraft repair plant, and the flax mill, — notes **Sergey Pats, First Deputy Chairman of the Orsha District Executive Committee.**
The main difficulty encountered during this period is related to the lengthy preparatory stage. A significant amount of time is taken up by negotiations, business plan development, and design and estimate documentation, as well as other related work. In working with foreign investors, this is due to their meticulous approach and desire to anticipate all possible risks.
For example, the preparation of a contract worth 41.8 million euros, which in the endMarch was signed by representatives of OJSC "BELAZ" and the Italian company Danieli&C. Officine Meccaniche S.p.A., took about two years. A major project for the organization of a rolling production with an investment volume of about 90 million euros will be fully implemented by the end of 2023 on the premises of the PAK plant, which is part of the "BELAZ-Holding" holding company.
The district executive committee does not hide that a few years ago the PAK plant was one of the most problematic in the industrial complex of the district: until it became part of BELAZ's holding company in February 2019, there were no prospects for it. Point projects that local authorities tried to implement up to this moment with the support of the Ministry of Industry could not change the situation. For some time, the possibility of initiating bankruptcy proceedings was even considered for it. Now, the enterprise closely links its future with the new project. However, even before that, things were not standing still here. According to the deputy director of the enterprise, Anton Voronko, last year the production of containerized water deironing stations was mastered using modern materials and water treatment equipment that meets the requirements of world standards. Successes were also reflected in the figures: if at the end of 2018 the sales profitability at the PAK plant was minus 39.4 percent, then by 2020 the figure increased to plus 5.1 percent. The average monthly salary since the beginning of this year has been over 1.1 thousand rubles.
Positive changes are also noted by the workers themselves. Dmitry Titov, a milling machine operator, has been working at PAK for 30 years. According to him, much has changed for the better recently. Working conditions are gradually improving: wardrobes have been made, and the canteen, production, and utility rooms are being renovated.
"It is pleasant that this work began not from the director's office, but from the workshops. Of course, I would like a higher salary, but any reasonable person understands that it is impossible to do everything at once. Moreover, we see prospects that inspire confidence in the future of the plant, and therefore, the remuneration will also grow over time," - Dmitry Titov is convinced.
Similar transformations are happening at other enterprises of the Orsha regionindustrial cluster. For example, the machine-tool plant is implementing an investment project to organize the production of modern metal-cutting tools. "Legmash" is producing products for the oil and gas industry. A powerful design bureau and regular technical re-equipment allow the "Krasny Borets" machine-tool plant to maintain its strong position. The share of innovative products in the total sales volume at this enterprise is 57 percent. The third stage of modernization is underway at the flax mill. In 2020, a sewing workshop for the production of jeans and finished garments was organized here. Work continues on the bleaching section for cottonized short fiber, which will allow obtaining products that can be used for the production of yarns for domestic, medical, and sanitary-hygienic purposes, increase the volume of manufactured products, and enter new markets. This will positively affect the economic activity of the enterprise.
Another key driver of the Orsha region's economic growth is the region's logistical location. The multimodal industrial and logistics complex, which "Bremіno Group" is developing, is expected to fully unlock this potential. To date, the total investment in the project to create the "Bremіno-Orsha" special economic zone has exceeded 70 million rubles. Two phases have been commissioned, and the Orsha airfield has started operating, having already received more than a dozen aircraft. All this has led to a natural revival of service exports, which has already reached over 160 percent this year.
"The result could have been better, but the COVID-19 pandemic left its negative mark, significantly slowing down the implementation of the investment project and practically halting its next stage for a year.related to the creation of the largest shopping town in Belarus. It is planned to be implemented with Chinese partners. Now the work on this project is being reactivated. The planned investment volume is 62 million dollars, — stated Sergey Pats.
Among the largest projects is the construction of a new slaughterhouse at Orshaat the meat canning plant. The construction readiness of the facility is 84.1 percent. The volume of invested funds is 62.9 million rubles, or 63.2 percent of the estimated project cost. Its commissioning, scheduled for July 1, 2021, will be a significant event in the life of the entire district.
Changes are also evident in the social sphere of the district center and rural settlements of the district. New small architectural forms are appearing on streets and courtyards, landscaping of territories continues, construction of new social facilities, and housing construction.in the village. For example, on the eve of the New Year, ten residential buildings for employees of the agricultural enterprise "Borzdovka-Agro" were commissioned in the agrotown of Borzdovka. And this is only a small part of the large-scale work: local villagers gladly share details about the fact that gas was recently supplied here, a modern social and cultural center, a kindergarten and a school were opened after renovation, and now a large robotic dairy complex for 2 thousand head is being built near the village of Churilovo.
The residents of the village of Bolbasovo are happy to talk about their locality. Among the latest events is the "Olimp" stadium, which opened in the winter. Thorough repairs have turned it into a sought-after sports facility. "We simply don't have time to keep up with all the changes," says Lyudmila Kazantseva, director of the local school named after S. I. Gritsevets:
— I have lived here for a long time and I see how the village is changing before my eyes. This is essentially the result of recent years. Now we have wonderful courtyards. We have all the infrastructure. And the people themselves have become neater, they treat the created conditions with care. We are, of course, very happy and wish the residents of other regions the same rapid and good development.
DIRECT SPEECH
Oleg Matskevich, First Deputy Chairman of the Vitebsk Regional Executive Committee:
— The assessment of the effectiveness of the Program and its subprograms implementation in all areas of development (real sector of the economy, social sphere, housing and communal services, transport, etc.) is high. Qualitative indicators have also improved. The district operates with a net profit, which in 2020 amounted to 286 million rubles, an increase of 13 times compared to 2018. Sales profitability increased from 4.8 to 6.8 percent.
It is important not to slow down the pace. The task of developing transport and logistics services remains relevant – these are the export opportunities of the district. It has unique competitive advantages: location at the crossroads of transport flows, accessibility of all types of transport (rail, road, river, air).
Alsoby implementing new technologies, attracting investors, it is necessary to fully utilize the industrial potential of the region, and it is significant. We see how this complex has revived after the adoption of Decree No. 506. A number of problematic issues are gradually being resolved: re-equipping of production, production of competitive and export-oriented products, increasing production capacities, wage growth, preservation of labor collectives.
Great attention is paid to the involvement of unused property in economic circulation.
Systematic work in all directions brings serious returns, which allows the Orsha region to gain increasing socio-economic weight on a regional and republican scale.
FOR REFERENCE
♦ The district ranks 2nd in population among the regions of the Vitebsk region. More than 148 thousand people live and work here.
♦ From 2016 to 2020, the volume of investments and construction and installation works in the region increased 3.5 times.
♦ The large-scale set of measures for the implementation of the Orsha District Development Program includes 18 subprograms: 376 events are planned with a total funding of 2 billion 408 million rubles.
♦ Over the past three years, 56.6 percent of this amount has actually been invested, which is a sufficiently high rate.
President of Belarus Alexander Lukashenko:
— This is not just about Orsha. As I have already said, this is about the uniform distribution of productive forces throughout the country. We have 11 such medium-sized cities, and they are home to a significant portion – 15 percent of the population. The government, using Orsha as an example, was supposed to demonstrate systematic work with such regions. This includes identifying effective solutions for advanced development and subsequently applying them to the entire country.
Main Outline
The industrial complex of the region and the implementation of investment projects included in the Orsha District Development Program are under the special control of local authorities and the Government, as the inflow of taxes, budget filling, and increase in population income depend on them.— We planned the implementation of projects and the main volume of investments for 2019-2020 for the following list of enterprises: the Tool Plant, the Automatic Control Devices Plant (PAK Plant), "Legmash", "Orshaagroprommash", "Signal Equipment", the aircraft repair plant, and the flax mill, — notes **Sergey Pats, First Deputy Chairman of the Orsha District Executive Committee.**
The main difficulty encountered during this period is related to the lengthy preparatory stage. A significant amount of time is taken up by negotiations, business plan development, and design and estimate documentation, as well as other related work. In working with foreign investors, this is due to their meticulous approach and desire to anticipate all possible risks.
For example, the preparation of a contract worth 41.8 million euros, which in the endMarch was signed by representatives of OJSC "BELAZ" and the Italian company Danieli&C. Officine Meccaniche S.p.A., took about two years. A major project for the organization of a rolling production with an investment volume of about 90 million euros will be fully implemented by the end of 2023 on the premises of the PAK plant, which is part of the "BELAZ-Holding" holding company.
The district executive committee does not hide that a few years ago the PAK plant was one of the most problematic in the industrial complex of the district: until it became part of BELAZ's holding company in February 2019, there were no prospects for it. Point projects that local authorities tried to implement up to this moment with the support of the Ministry of Industry could not change the situation. For some time, the possibility of initiating bankruptcy proceedings was even considered for it. Now, the enterprise closely links its future with the new project. However, even before that, things were not standing still here. According to the deputy director of the enterprise, Anton Voronko, last year the production of containerized water deironing stations was mastered using modern materials and water treatment equipment that meets the requirements of world standards. Successes were also reflected in the figures: if at the end of 2018 the sales profitability at the PAK plant was minus 39.4 percent, then by 2020 the figure increased to plus 5.1 percent. The average monthly salary since the beginning of this year has been over 1.1 thousand rubles.
Positive changes are also noted by the workers themselves. Dmitry Titov, a milling machine operator, has been working at PAK for 30 years. According to him, much has changed for the better recently. Working conditions are gradually improving: wardrobes have been made, and the canteen, production, and utility rooms are being renovated.
"It is pleasant that this work began not from the director's office, but from the workshops. Of course, I would like a higher salary, but any reasonable person understands that it is impossible to do everything at once. Moreover, we see prospects that inspire confidence in the future of the plant, and therefore, the remuneration will also grow over time," - Dmitry Titov is convinced.
Similar transformations are happening at other enterprises of the Orsha regionindustrial cluster. For example, the machine-tool plant is implementing an investment project to organize the production of modern metal-cutting tools. "Legmash" is producing products for the oil and gas industry. A powerful design bureau and regular technical re-equipment allow the "Krasny Borets" machine-tool plant to maintain its strong position. The share of innovative products in the total sales volume at this enterprise is 57 percent. The third stage of modernization is underway at the flax mill. In 2020, a sewing workshop for the production of jeans and finished garments was organized here. Work continues on the bleaching section for cottonized short fiber, which will allow obtaining products that can be used for the production of yarns for domestic, medical, and sanitary-hygienic purposes, increase the volume of manufactured products, and enter new markets. This will positively affect the economic activity of the enterprise.
Crossroads of Interests
Production infrastructure and a favorable business environment are the main factors of investment attractiveness of the Orsha region, which the region uses for its growth. Currently, 31 new enterprises with foreign capital have been created in its territory. In 2018-2020, 14.9 million dollars of foreign investment were attracted. 15 new production facilities have been organized.Another key driver of the Orsha region's economic growth is the region's logistical location. The multimodal industrial and logistics complex, which "Bremіno Group" is developing, is expected to fully unlock this potential. To date, the total investment in the project to create the "Bremіno-Orsha" special economic zone has exceeded 70 million rubles. Two phases have been commissioned, and the Orsha airfield has started operating, having already received more than a dozen aircraft. All this has led to a natural revival of service exports, which has already reached over 160 percent this year.
"The result could have been better, but the COVID-19 pandemic left its negative mark, significantly slowing down the implementation of the investment project and practically halting its next stage for a year.related to the creation of the largest shopping town in Belarus. It is planned to be implemented with Chinese partners. Now the work on this project is being reactivated. The planned investment volume is 62 million dollars, — stated Sergey Pats.
Everything Matters
Along with achievements in the industrial sector of the economy, there are also notable accomplishments in the agro-industrial complex of the Orsha region. According to Andrey Konstantinov, Deputy Chairman - Head of the Department for Agriculture and Food of the District Executive Committee, due to the construction of modern dairy farms, breeding farms, the completion of modernization, and the strengthening of the material and technical base, growth in agriculture is ensured, and the capacities of processing enterprises are utilized.Among the largest projects is the construction of a new slaughterhouse at Orshaat the meat canning plant. The construction readiness of the facility is 84.1 percent. The volume of invested funds is 62.9 million rubles, or 63.2 percent of the estimated project cost. Its commissioning, scheduled for July 1, 2021, will be a significant event in the life of the entire district.
Changes are also evident in the social sphere of the district center and rural settlements of the district. New small architectural forms are appearing on streets and courtyards, landscaping of territories continues, construction of new social facilities, and housing construction.in the village. For example, on the eve of the New Year, ten residential buildings for employees of the agricultural enterprise "Borzdovka-Agro" were commissioned in the agrotown of Borzdovka. And this is only a small part of the large-scale work: local villagers gladly share details about the fact that gas was recently supplied here, a modern social and cultural center, a kindergarten and a school were opened after renovation, and now a large robotic dairy complex for 2 thousand head is being built near the village of Churilovo.
The residents of the village of Bolbasovo are happy to talk about their locality. Among the latest events is the "Olimp" stadium, which opened in the winter. Thorough repairs have turned it into a sought-after sports facility. "We simply don't have time to keep up with all the changes," says Lyudmila Kazantseva, director of the local school named after S. I. Gritsevets:
— I have lived here for a long time and I see how the village is changing before my eyes. This is essentially the result of recent years. Now we have wonderful courtyards. We have all the infrastructure. And the people themselves have become neater, they treat the created conditions with care. We are, of course, very happy and wish the residents of other regions the same rapid and good development.
DIRECT SPEECH
Oleg Matskevich, First Deputy Chairman of the Vitebsk Regional Executive Committee:
— The assessment of the effectiveness of the Program and its subprograms implementation in all areas of development (real sector of the economy, social sphere, housing and communal services, transport, etc.) is high. Qualitative indicators have also improved. The district operates with a net profit, which in 2020 amounted to 286 million rubles, an increase of 13 times compared to 2018. Sales profitability increased from 4.8 to 6.8 percent.
It is important not to slow down the pace. The task of developing transport and logistics services remains relevant – these are the export opportunities of the district. It has unique competitive advantages: location at the crossroads of transport flows, accessibility of all types of transport (rail, road, river, air).
Alsoby implementing new technologies, attracting investors, it is necessary to fully utilize the industrial potential of the region, and it is significant. We see how this complex has revived after the adoption of Decree No. 506. A number of problematic issues are gradually being resolved: re-equipping of production, production of competitive and export-oriented products, increasing production capacities, wage growth, preservation of labor collectives.
Great attention is paid to the involvement of unused property in economic circulation.
Systematic work in all directions brings serious returns, which allows the Orsha region to gain increasing socio-economic weight on a regional and republican scale.
FOR REFERENCE
♦ The district ranks 2nd in population among the regions of the Vitebsk region. More than 148 thousand people live and work here.
♦ From 2016 to 2020, the volume of investments and construction and installation works in the region increased 3.5 times.
♦ The large-scale set of measures for the implementation of the Orsha District Development Program includes 18 subprograms: 376 events are planned with a total funding of 2 billion 408 million rubles.
♦ Over the past three years, 56.6 percent of this amount has actually been invested, which is a sufficiently high rate.