At its meeting, the Expert Council of the Ministry of the North Caucasus Affairs of the Russian Federation for tourist-and-recreational special economic zones included in the North Caucasian tourist cluster, considered applications of potential residents of Arkhyz SEZ in the Karachay-Cherkess Republic, Armkhi and Tsoti SEZ in the Republic of Ingushetia and Veduchi SEZ in the Chechen Republic.

The First Deputy Minister of the Russian Federation for North Caucasus Affairs, Chairman of the Board of Directors of Joint-Stock Company Northern Caucasus Resorts Odes Baysultanov, the head of the Expert Council, drew the attention of residents of special economic zones – both current and interested in working in the resorts, on the need for further work in strict accordance with the business plans.

‘It is imperative that SEZ residents constructing hotels, restaurants, entertainment centers, tour desks and other facilities commission them in time, being reliable partners of the management company JSC NCR. It must not be allowed to limit the increase of tourist flow at our resorts due to the lack of accommodation and other facilities due to improper performance of investors’ obligations,’ Odes Baysultanov stressed. ‘When entering a special economic zone and claiming governmental tax incentives and preferences, a resident must ensure its financial viability, confirmed by money available in full, and be personally liable for the implementation of the declared project. This parity cooperation underlies the ideology of public-private partnership mechanism, on which the tourism cluster project in the North Caucasus is based,’ the First Deputy Minister of the Russian Federation for North Caucasus Affairs concluded.

The Expert Council considered and approved applications of two new residents of Veduchi SEZ – Pik and Vershina. The project by Pik LLC provides for the construction of a 3-star hotel resort for 86 rooms and 216 beds. The facility will also have a restaurant for 100 seats, a lobby and karaoke bars, entertainment and wellness area with pool, sauna and hammam. The second company, Vershina LLC intends to build a modern tourist base at the resort. In winter there will be a ski and snowboard equipment rental, and in summer – a mountain bike rental. A tour desk, where tourists of Veduchi ATRC can buy a guided ATV or Jeep tour to historical sites in the Chechen Republic. In the tourist base, there shall also be eight comfortable double rooms or an economy class hostel for 40 beds.

Investments by the new residents of Veduchi SEZ shall be more than RUB 471 million, including equity and borrowings attracted by Joint-Stock Company North Caucasus Development Corporation. The total of 100 new jobs shall be created.

Applications of two new residents of Arkhyz SEZ – Phoenix and Olympia – were approved with the investment in the development of hotel infrastructure of more than RUB 1.57 billion, and the first residents of Armkhi and Tsori SEZ — Global Tour and Turistichesky Tzentr LLC – for the construction and operation of leisure and hotel infrastructure with declared investment of about RUB 20.6 million, subject to the amendment of business plans as suggested by members of the Expert Council.

At the meeting of the Expert Council, a positive decision was made on the amendment of the business plan of the existing resident of Arkhyz SEZ Individual Entrepreneur Khalimat Azretovna Bolurova providing for adjustments to the number of facilities and implementation period of the cottage village construction project with the declared investment of about RUB 55 million. The application for amendment of the business plan of another current resident Veduchi LLC in the SEZ in the Chechen Republic was approved subject to the adjustment of the business plan in terms of clarifying the source of the project financing.