MINSK, 14 March (BelTA) – The infrastructure of the future Belarusian-Chinese industrial park will cost $5-6 billion for the first 10-15 years, Kirill Koroteyev, Head of the Central Office for Investments of the Belarusian Economy Ministry, told media on 14 March.
The funding will be provided without any guarantees from Belarus. It is a risky project that explores capabilities of the Belarusian-Chinese companies using guarantees and preferences provided by the Belarusian side, said the official.
Land allocation preferences are the key ones. All the land plots inside the park will be provided to the Belarusian-Chinese company. The land plots can be provided gradually in line with the approved general layout. Land can be provided for free for up to 99 years or can be handed over into private ownership at 50% of the land register’s value. The entire area (80 square kilometers) may cost about $650 million. If the company is willing to buy it, the share of the Belarusian side will be 40%.
Tax preferences will be granted to park residents and to the management company. One of them is an income tax respite for ten years since the registration. Exemption from real estate tax on properties located in the park, exemption from land tax, local fees is an option, too.
The future company to administer the industrial part will be founded by the holding company Horizont (40%) and the Chinese corporation CAMCE (60%). The Belarusian side will not lose control over the park because all decisions will be made by a board of directors.
Kirill Koroteyev dispelled rumor 600,000 Chinese workers will be employed to build the park. In point of fact the investment offer prepared by Horizont specified the figure as “600,000 employees”. It is the figure the park’s development is supposed to achieve in 30 years. The feasibility study that specifies the figure is a very crude document, said Kirill Koroteyev.
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