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Minsk authorities project to draw $1 billion in direct foreign investment this year

The Minsk City Executive Committee projects to draw $1 billion in direct foreign investment and spend $760 million of it this year, deputy head Alyaksandr Barysenka said at a news conference on Wednesday.

Mr. Barysenka said that he personally held negotiations with around 40 delegations representing potential foreign investors in the last three months, which he noted yielded 10 protocols of intent and other accords.

A total of 10,000 billion rubels ($3.46 billion) in investment is projected to be drawn into "the city's economy" in 2010. Companies under the control of the city executive committee are to account for 4,900 billion rubels, an increase of 25 percent compared with 2009.

Of the projected investment, 1,200 billion rubels will go toward modernization projects at enterprises and 6,000 billion rubels toward construction work, with 45 to 46 percent of it to be spent on housing construction.

Mr. Barysenka said that modernization projects would be carried out at the Belkamunmash company that makes streetcars and trackless trolleys, the Minskrybpram fish company, the Minsk Vegetable Plant and state dairy companies.

He said that the city authorities also plan to use Chinese credit lines to fund projects envisaging the construction of road interchanges, a waste recycling plant and a house-building integrated plant. The city executive committee prepared a total of 27 draft projects that could be financed by China, the official said, noting that Chinese loans, expected to be granted for a period of 10 to 15 years at an annual interest rate of three percent, are very lucrative. //BelaPAN