The Legislative Duma of Tomsk Oblast

Performance report of the executive government of Tomsk Oblast for 2012 delivered
by Tomsk Oblast Governor Sergey Zhvachkin
at the 20th session of the Legislative Duma of Tomsk Oblast

Governor Sergey Zhvachkin The Governor greeted the deputies and guests at the 20th session of the Legislative Duma of Tomsk Oblast. The full text of the 2012 performance report of the executive government of Tomsk Oblast was distributed to the deputies beforehand.

In his speech the Governor dwelt upon the key problems of Tomsk Oblast and key challenges the Oblast government is facing today.

Excerpts from the Governor’s report follow
“When I took office as the Governor and gathered my team, I set myself a task to determine the growth potential of Tomsk Oblast and identify breakthrough areas for economic and social development of the region. I was to understand primary concerns of the people living in cities and rural areas.

I spoke about that, my dear colleagues, from this tribune on February 15 when you were considering investing me with the authority of the Governor of Tomsk Oblast. This analysis was completed last year. We have closed the organizational phase and come to the starting line.

The new form of government defines new execution standards
I shall remind you that last year we moved from the industry-based approach in government to a cluster-based one, integrated principles which rely on the system of links and ties rather than a dominant position of one industry over the other industries.

Today’s structure of the Oblast administration defines seven development clusters. They are “new economy”, traditional economy, investments, infrastructure, development of territories, social sphere, and government.

We have made government more transparent and engaged in discussions with civic institutions and subject matter experts. We have nine expert councils under nine Deputy Governors. There are 135 experts and 8 among them are deputies of the Tomsk Oblast Duma.

Cooperation between the government at all levels, business, academia, public associations – is key to breakthrough achievements in the economy and social sphere of Tomsk Oblast.

A breakthrough is exactly what our region needs. Even though we had relatively good social and economic indicators last year and showed to advantage on the map of Russia and the Siberian Federal District, that does not mean we should sit down and relax. New economic challenges have come that require extraordinary solutions.

Tomsk Oblast development results in 2012
Industrial output index was 102.5% vs 2011.
We exceeded the national average indicators in extractive industries. This economic sector of Tomsk Oblast grew 103.4% vs the national average of 101.1%.

At the same time Tomsk Oblast is not developing new petroleum provinces and on its background the oil and gas production sector of our neighbors in the East is growing very rapidly. Out of 129 oil and gas fields in Tomsk Oblast only 58 are being developed – less than a half. Twenty percent of approved reserves in our region “sit idle”. I have already tasked my team to get down to this problem. We should no longer tolerate such wasteful attitude towards our natural riches.

We are far ahead of our neighbors and the Russian average dynamics for production and distribution of electric energy, water and gas. Our region has demonstrated 112.6% growth whereas the national average is 101.2%. Last year Tomsk Oblast led in that sector among the regions of the Siberian Federal District.

We have good dynamics of completed housing per capita. It is above the national average. We are only behind Novosibirsk Oblast in the Siberian Federal District for completed housing per thousand people. Our research and educational complex put in a strong performance in 2012. The total amount of funding for our universities and academic institutes exceeded 25 billion rubles, which is 2 billion rubles more than in 2011. More than 12 billion rubles was spent on research work. More than half of that amount was invested by business.

The share of the “new economy” – knowledge economy – in the GRP of Tomsk Oblast has already reached 8%. That is 2.5 times higher than the national average.

Tomsk Oblast finished 2012 ranking the first in the Innovation Rating compiled by the Peterburgskaya Politika Foundation. I have no doubt that our Innovation Forum which took place just a week ago will only strengthen our position.

We worked hard last year to manage the consequences of a record drought. Our agricultural sector was able to complete 2012 at 95.7% growth vs 2011 – the best across Siberia and Russia.

The region spent more than 2.5 billion rubles of federal and regional money on the development of its agriculture. We managed to retain agricultural facilities in the Oblast districts. Seedtime and harvest were completed in time without interruptions. The government timely provided budget money for forage conservation, which helped keep livestock safe through the winter and ensure food security of the region.

Last year we completed another phase of the regional healthcare modernization program. Over two years 6.7 billion rubles was invested in this sector from the Compulsory Health Insurance Fund and consolidated budget. Funding of the national healthcare system in the region grew 21%.

Last year we allocated more than 350 million rubles from the budget of Tomsk Oblast to increase affordability of preschool education. More than 2,000 new places were created in nursery schools. However, it did not have much influence on the size of the nursery schools’ waiting lists.

The Oblast solicited around 700 million rubles from the federal budget for the development of general education. We built a stadium in Neliubino and an indoor synthetic ice rink in Strezhevoy.

We continued construction of three swimming pools – two 25-meter pools in Asinovsky and Verkhneketsky Districts and a 50-meter pool in Tomsk.

A study revealed that the share of population who regularly exercise or play sport has grown and reached 16.5% today. However, only 4.4% of people with disabilities are involved in regular sport and physical activity. That is definitely not enough. My team is currently developing a program to improve access to grassroot sport by building multifunctional sports facilities and compensating people with disabilities, low-income families and large families for sport participation expenses.

We started developing a program to promote domestic and inbound tourism. The program is unique in that it is based on the development of the region’s infrastructure and projects launched by municipal entities.

Year 2012 was announced the Year of National History in Russia. We erected a monument to Tomsk people Heroes of the Patriotic War of 1812 to refresh the memory of our countrymen about the chapters of Russia’s war history and eternalize the memory of our ancestors in the Tomsk Infantry Regiment who fought against Napoleon in 1812.

In 2012 we completed four major investment projects

1. We carried out a grand renovation of the entire Bogashevo airport and just recently opened an international terminal with a border checkpoint. So far investments in the project have totaled 2.3 billion rubles. And the work has not been completed yet. Our next step is to extend the geography of commercial and charter flights, including domestic and interregional flights. We will also make the runway wider.

2. The Tomsk Branch of Territorial Generation Company 11 put in service a 16 MW and 20 Gcal/hour gas turbine. Investments in the project exceeded 1 billion rubles. The project provides new opportunities for the development of industrial and household facilities, creates new jobs, and implements new technologies, i.e. achieves all that we are striving for.

3. Another investment project completed in 2012 is construction of a 420 million rubles greenhouse facility in Tomsky District. The project provided many people with jobs and many households with affordable fresh organic vegetables right from the garden bed.

4. And the forth major project is a 300 million rubles hatchery at the Tomskaya Poultry Farm. The new hatchery will replace three old ones and its capacity will be 1.5 times higher. By taking the farm under its wing, the Siberian Agrarian Group proved that it can be cost efficient and kept people from losing their jobs.

Now let us talk about our plans
Our main goal in 2013 is to dramatically increase investments in the economy and social sphere.

The government should not command the industries but post “beacons” for the orientation of the business and create attractive conditions for investors.

We have already posted several “beacons”. They are big investment projects to be implemented in 2013 and further.

Our first “beacon” – “Development Institutes”
Breakthrough economic development is not possible without a dramatic revision of the regional investment policy and implementation of innovative approaches in the management system. The basis of our investment strategy is a budget-financed infrastructure organized and managed by modern development institutes. Investors will only invest in locations where they feel most comfortable.

To that end, together with Gazprombank and the Russian Academy of National Economy we are creating a priority investment project management center which will work to improve the effectiveness of critical investment projects for the social and economic spheres of Tomsk Oblast.

Second “beacon” is the project “Tomsk Universities – Global Status”
The research and educational complex of Tomsk Oblast has always achieved great results. And now our higher education system has an opportunity to receive a powerful boost.

The Russian Ministry of Education and Science launched a contest to identify top 15 Russian universities. No more than 40 universities meet the established criteria, among them three Tomsk universities. They are the National Research Tomsk Polytechnic University, the National Research Tomsk State University and the Tomsk University of Control Systems and Radio Electronics.

Third “beacon” is “Roads and Transport System”
If we want the economy of our region to really evolve, we must dramatically change the situation which has been created in our road sector for many years.

We should integrate our region in the transport system of Russia by developing our international airport, extending the period of inland navigation, and implementing a regional aviation program.

We should find ways to finance the Tomsk Oblast Transport Development Strategy for 2025, particularly private investments using public-private partnership mechanisms.

No less important is the task of turning our region from a blind alley, a dead end, into a transport hub to reduce freight costs and increase GRP through servicing transit transport, which will help attract investments in new territories. And we have made the first step in this direction. We resumed participation in the construction of a bridge over the Vakh River.

Fourth “beacon” – “Tomsk Gas for Tomsk People”
Last year we started implementing a regional gas supply program. We allocated 511 million rubles to six municipal entities for the development of design and estimate documentation.

The total amount of approved investments under this program exceeds 6 billion rubles. And the share of investments as such may even grow larger.

It goes without saying that natural gas plays a vital role in the development of remote locations. The program improves the quality of life of people and creates new jobs.

Fifth “beacon” – “Nuclear Breakthrough”
Seversk has virtually become a nuclear capital of Russia. Tomsk Oblast and Rosatom entered into an agreement to implement two grandiose investment projects worth 100 billion rubles in total at the site of the Siberian Chemical Combine in Seversk.

One of the projects is construction of a 12 billion rubles conversion facility. Execution of this project is scheduled for the end of this year.

The other project is creation of a pilot facility with a BREST-3000 reactor and its own nuclear fuel cycle.

Sixth “beacon” – “Nursery School for Every Kid”
One of the May decrees of the Russian President says that the 3-to-7-year-old children waiting lists for nursery schools should be cleared completely before 2016.

Tomsk is currently building two new nursery schools. Nine municipal entities are preparing to build 15 more preschool education institutions. Those will be financed through public-private partnership. They will be started this year.

In 2014-2015 we will fully clear the waiting lists for nursery schools for kids older than 3 years. Around 4,000 children are on such waiting lists today.

Seventh “beacon” – “Tomsk Embankments”
This is a project for integrated development of the area within the city taking into account the city’s historical and cultural heritage. The project aims at creating a modern city environment through utilizing reclaimed river land and implementing a new transport scheme.

The Tomsk Embankments project will be executed in cooperation with the universities such as the Tomsk State University, Siberian State Medical University, Tomsk Polytechnic University, and Tomsk University of Control Systems and Radio Electronics. They have working plans to build on the new ground a student campus with stadiums, dorms, cafes, academic buildings and laboratories.

The Tomsk Embankments project will turn the face of the city to the river. A new city skyline will feature a big hotel complex, new congress halls, exhibition centers, mordern shopping malls and office buildings. Gazprom already announced that it would participate in the project to modernize the Ushaika River embankment. We also rely on financial support from the federal budget.

Eighth “beacon” – “Akadempark”
This is what Tomsk people have never had and what they go to the neighboring regions – Kemerovo Oblast and Krasnoyarsky Krai – for. That is accessible and comfortable winter sport infrastructure.

On a 240 ha ground we will merge the existing and build new sports facilities such as mountain and cross-country ski trails, modern ski jumps and a 10,000 seat multi-purpose transformer hall.

Ninth, and last, “beacon” – “Economy of Nature”
We will make absolutely clear and transparent the rules of the game in our forests and water bodies. Hunting, fishing, forest fruit picking and processing should become a standalone industry.

I will not give any numbers. There are just not any. We have lost the system of tracking our plant and wildlife resources. The licensing procedure has not evolved since the Stone Age, it seems. We have almost run out of legal purchasing centers for berries, mushrooms, fish, and furs. For such a region as Siberia the situation has gone beyond the reach of reason.

Once we develop modern tracking methods and calculate the amount of plant and wildlife resources that could be used without negative impact on the nature, we will get down to developing specific projects, creating business plans, and attracting investors. I assure you that we are able to set this situation right. We have already made first systemic steps in that direction such as long-term budget-financed target programs for the development of forestry and the procurement activity. At the end of last year we created a Fishery Committee of Tomsk Oblast to support our strategic initiatives. The Committee is soon publishing its program.

We will continue supporting investment projects currently implemented by business at their facilities. I will name six such projects.

The first is construction of a 3 million tons per year oil refinery in Semiluzhki.

The second project is construction of a factory producing high-capacity LEDs and energy efficient lighting systems.

Late last year Suibur started building a BOPP film facility at the site of Tomskneftekhim. The cost of the project is estimated at 2.5 billion rubles. The line will be fully ramped up as early as this year. The project will make Tomsk Oblast a leading domestic producer of a cutting edge packaging material for the food industry.

The fourth investment project is construction of a 4G LTE systems manufacturing facility. The investors – a Tomsk-based research and manufacturing company Micran and Nokia Siemens Networks – plan to start it up already this year. The total amount of investments is 1.5 billion rubles.

The same amount – 1.5 billion rubles – will be invested in a logistics center which will be the largest beyond the Urals. The ramp-up is scheduled for 2015. It is a very important project for people living in rural areas. It will boost the development of rural manufacturing enterprises, private farms, forest fruit picking industry, and the region’s food sector in general.

And one more investment project which may be not as rich in terms of investments but not in the least less important for the strategic development of our agricultural complex. I am talking about the construction of a 500 million rubles dairy complex in the Belostok Cooperative in Krivosheinsky District. The investor plans to start it up already this year.

Dear colleagues, I would like to remind you that year 2012 was announced the Year of National History in Russia. And I have no doubt that the steps to the future of Tomsk Oblast that we made in 2012 were indeed historic.

And this year shall also be busy with preparations to the celebration of three anniversary dates. In 2014, Tomsk Oblast is turning 70 years old, Tomsk Guberniya is turning 210 years old, and Tomsk is celebrating its 410th birthday. And I am sure, the high socioeconomic indicators and the results of all current investment projects will become a well-deserved gift for the people of Tomsk Oblast for the triple anniversary.

Dear colleagues, thank you for attention!

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