Ufa: Development Perspectives

The capital of Bashkortostan Repubic, Ufa city was founded in 1574 as a fortress after Bashkiria voluntarily joining the Russian state in the second half of XVI Century. (In 2007 the Republic solemnly celebrated the 450th anniversary of this event).

Today Ufa is one of the large industrial, scientific and cultural centers of Russia. The city occupies the territory of over 710 square kilometers and is home for over one million people representing more than one hundred nationalities and ethnic groups. Geographically, Ufa is located on the crossroads of transport thoroughfares that link European part of Russia with the Urals and Siberia. Moreover, the city is the center of a Russian regions which is the richest in natural resources. Such a location grants the city numerous opportunities to dynamically develop her economy and social sphere.

In 2007, the capital investment from all financing channels to the economy of the city exceeded 66 billion rubles, with the 28 per cent increase as compared to 2006. In 2008 we expect the capital investment in the city to reach 85 billion rubles with 11 per cent increase compared to the last year.

Industrial production sector is the leading and city-forming complex. Over 50 per cent of Bashkortostan Republic’s industrial potential is located in Ufa. We have approximately 200 large and medium-sized companies that produce instruments, machines, refine oil, work in chemical, foodstuff, recycling and other industries. The city companies have accumulated a potential of unique technologies in such spheres as aviation and machine-tools production, biology, solid state physics that allow to produce goods highly technological and competitive at international markets.

In 2007 the volume of industrial production was approximately 223 billion rubles. Within the first nine months of this year, industrial companies have produced goods and rendered services worth 226 billion rubles, which is 22 per cent higher than in the same period of the previous year. The foreign trade volume of Ufa businesses in 2007exceeded 1.5 billion US dollars, with 90 per cent share of export. Nearly 70 countries are trade partners of Ufa companies, including Germany, Italy, India, Poland, Slovakia, Kazakhstan and Ukraine.

An important role in municipal economy and social development is played by the construction complex. With every year, we increase the number of newly constructed and renovated items of industrial and social infrastructure. Thus, for the 450th anniversary of Bashkortostan voluntarily joining Russian state, unique objects have been designed and constructed: House of Peoples’ Friendship (Congress Hall), Ufa Arena ice hockey palace for 8400 spectators, horse racing track, Ufa International Airport complex. With commissioning of a new bridge across the Ufa river, another exit from the city was formed which significantly improved the traffic capacity of transport thoroughfares. Housing construction is developing rapidly in the city. Last year, 612 thousand square meters of housing was financed, constructed and commissioned in Ufa. In the first half of 2008, 441 thousand square meters of housing was commissioned, with 5 % increase as compared with the same period of last year.

Ufa municipality pays great attention to attracting foreign capital in the implementation of large investment projects. For example, next year we plan to commission MEGA multi-functional family center of IKEA company that originates from Sweden. The total amount of investment into the construction of 130-thousand square meter complex is 176 million US dollars, three thousand new workplaces will be created.

Sodruzhestvo company – a subsidiary of Meinl European from Austria – invests over 155 million US dollars into the construction of Park House retail and entertainment complex with the total area of 106 thousand square meters.

A three-hotel complex (Novotel, Apartotel and Business center) is constructed in downtown Ufa with the total area of over 27 thousand meters and more than 300 hotel rooms. The total investment will exceed 1 billion rubles, over 80 new workplaces will be created.

KREMLIN Group investment project of constructing a 5-star hotel according to European standards is underway. The total area of the hotel will amount to 14.5 thousand square meters. The investment into the project will reach 25 million US dollars.

Quinn Group from Ireland plans to construct a multi-functional family center with an aquapark and a hotel complex, as well as a business park in the city. The total value of the projects will reach approximately 230 million US dollars.

Avalon group of companies together with Raven fund from Great Britain will invest 80 million US dollars in the project of construction in Ufa of a technopark, the core of which will be A-class logistics terminal with the total area of 100 thousand square meters and 1500 new jobs for Ufa citizens.

World Bank for Reconstruction and Development and European Bank for Reconstruction and Development finance the construction of 3rd stage of waste water treatment facilities of UfaVodoKanal municipal company. The total investment will exceed 40 million US dollars. In addition, European Bank for Reconstruction and Development participates in the implementation of the project to install individual heating stations and heat energy meters in residential buildings of Ufa. The attracted loan equals to 10 million Euros with the loan period of 10 years.

With every year, Ufa becomes pretties and the life of her citizens – more comfortable. Nevertheless, the realities of today have ordered to introduce significant changes into the urban planning strategy. The problems that we are facing today are mainly caused by the previous stages of Ufa development. In the past, the foundation of new large parts of the city was based on the principle of residential and industrial districts, while the development of social, transport and engineering infrastructure lagged behind. Moreover, the large-scale introduction of typical high-rise apartment buildings contributed to the problem. The main part of the city is located on the meridionally stretched Ufa peninsula, with the industrial core situated in the Northern part of Ufa. This resulted in the predominance of longitudinal thoroughfares, most of which today have reached the limit of their capacity.

It should be noted that Ufa possesses tremendous planning and development potential. The access roads to the city have been constructed efficiently, especially from South and North. The elevation changes of the city terrain, surrounding landscapes are so beneficial that their preservation and incorporation into urban planning are the main tasks for local architects and construction workers.

This is why we have developed economic ground for the implementation of Ufa City Development Plan approved in 2006: the concept of infrastructure support of developing the industrial and technological complex on the territory of Ufa city municipal district. The “Infrastructure support of complex development of Ufa city municipal district of Bashkortostan Republic” project is the first large-scale project in the Republic’s history that envelops almost all aspects of the life of the city, based on the public-private partnership principles.

The total investment volume of the project, including its first and second stages amounts to 298 billion rubles, out of which 250 billion rubles are private investments. Ufa Municipality and the Government of the Republic are ready to invest together over 24 billion rubles. For the successful implementation of the project, federal governmental support in the volume of 24 billion rubles from the Investment Fund of the Russian Federation is envisaged.

Today, we actively perform the works on construction and reconstruction of transport network, including continuous movement clearways that connect various territorial zones and areas of the planned development. Finalization of construction of the lateral high-speed thoroughway from Volga M-7 federal interstate to Ural M-5 federal interstate along the constructed tunnel and new bridge over the Ufa river will allow to quickly lead the traffic out of Ufa peninsula territory to the external federal motorways and will open new sites for development of industrial, social and economic structure of the urban district. The total amount of investment into the transport infrastructure development approximately estimates to 28 billion rubles.

In order to provide the future residential, industrial and commercial areas with energy, fuel and other utilities, it is necessary to continue the construction and rehabilitation of the water-, heat- and power supply objects. The total amount of investment into this sector is almost 40 billion rubles.

The project envisages new housing construction on the sites in the eastern direction on the other bank of the Ufa river and the western direction on the other bank of the Belaya river.

In the eastern direction, the project envisages the formation of new low-rise residential areas for 86,500 people. The development area is around 21.6 thousand hectares with the housing capacity of over 3 million square meters, out of which more than 50 per cent will be distributed according to social schemes.

In the western direction, new districts with high-rise, middle-rise and low-rise houses will appear, designed with participation of international expert team. On the area of 3 thousand hectares, over 3 million square meters of housing for 102 thousand people will be constructed.

Another aim of the project is to clear the city of ramshackle buildings and items not corresponding to the urban planning regulation, on the area of 523 hectares. New large residential complexes with total area of over 2 million square meters will appear here.

In total, the project implementation will yield over 12 million square meters of housing and social infrastructure objects. The investment will exceed 88 billion rubles.

The project also envisages the development of industrial and technological potential, logistics and retail objects. Private investments will exceed 142 billion rubles. The largest projects are:
• Reconstruction and technical renovation of petrochemical complex: 41.9 billion rubles;
• Construction of Keller company brick factory: 1.2 billion rubles;
• Logopark–Ufa logistics center: 2.5 billion rubles;
• Saint–Gobain plaster slab production factory: 3.3 billion rubles;
• Lasselsberger ceramic tiles production factory: 4.8 billion rubles;
• Electrozavod transformer production factory: 4.8 billion rubles.

The project includes the creation of public service centers – large social complexes, among which are the following: Planeta multi-functional family center with aquapark (gross area of 80 thousand square meters), River World complex (gross area of 23 thousand square meters), Ufa City business center (gross area of 487 thousand square meters), and many other projects.

The implementation of the “Infrastructure support of complex development of Ufa city municipal district of Bashkortostan Republic” project envisages active participation of entrepreneurs in developing industrial production, housing construction, development of social and entertainment complexes. Creation of new roads, formation of construction sites, development of infrastructure utilities network will promote business development on the mutually beneficial basis.

The Republic of Bashkortostan enters the top three Russian regions in terms of minimal economic risks and favorable investment legislation, which is testified by the estimates of leading international rating agencies. From 2004 until now, Ufa rating has been upgraded three times and today is BB- with stable outlook. We gladly welcome you to cooperation!