The Republic of Sakha (Yakutia) Productive Forces, Transport and Power Industry Complex Development Scheme by 2020

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The Sakha Republic (Yakutia) has adopted and is implementing a strategic plan of long-term social and economic development of the region — Scheme of Complex Development of Productive Forces, Transport and Power Industry of the Sakha Republic (Yakutia) by 2020, fundamental regulations of which were supported by the Russian Federation Government.

Documents on the strategic development (Table 1)

The Sakha Republic (Yakutia) is among first Far Eastern RF subjects that has worked out a long-term development document. The scheme correlates with intra-branch strategies of development of key directions of Russian federation economy, such as RF Energy Strategy, General Scheme of RF Power Engineering Facilities Location until 2020, RF Transportation Strategy until 2020, RF Railroad Transportation Development Strategy until 2020, Program of launching an integrated system of gas production, transporting, and supply in Eastern Siberia and Far East considering the possibility of exporting gas to Chinese and other APR markets.

The scheme was approved by all federal ministries and authorities, branch committees of the State Duma and the Council of Federation at RF Federal Assembly, and synchronized with development strategies of the largest national companies: “RAI EES Rossii Unified Energy Systems”, “HydroOGK”, “Gazprom”, “RZHD Russia's Railways”, “Surgutneftegaz”, “Polyus”, “Mechel Steel Group” and others.

Present and long-term expected situation in the world's and Russian markets testifies for high demand for existing and potential raw and mineral resources of Yakutia. In this sense the Scheme provides that sub-branches within mining and fuel-energy industries will continue being the backbone of Yakutia's economy.

Based on this, we have figured out strategic priorities of economic development, consisting in: providing environment for sustainable work of the existing basic industry branches; creation of new sub-branches of mining and developing fuel-and-power industries based on the implementation of a number of major investment projects; accelerated development of transport and power infrastructure.

Main directions of region development scheme (Table 2)

By 2020 the Sakha Republic (Yakutia) is to become a region with sustainable developing economy, and gross regional product making over 1 trln RUR, its real growth in 2020 making 2.8 times compared to 2005. Economic growth, in its turn, will let us raise population's income 3.6 times by 2020 and solve major issues in social sector.

GRP dynamics by 2020 (Table 3)

For the Scheme implementation in the Republic a Five-Year Plan of Social and Economic Development in 2007-2011 was adopted, as well as 24 state targeted programs involving main directions of economic and social sphere development.

Completion of the first task of the strategic priorities - stabilization of work of the existing basic branches of Yakutia's economy - is provided via updating technological patterns: switching to underground diamond mining; developing gold-bearing fields instead of stream placers; using new methods of ore processing aimed at involving poorer mineral deposits; more advanced processing of raw materials in gold-antimony industry, development of diamond-cutting and jewellery industry, timber processing and agricultural production.

Yakutia's priority projects by 2020 (Table 4)
Basic projects major projects (Table 5)

The second of the Scheme's strategic priorities is the creation of new budget-forming branches of Yakutia's economy.

Namely these branches have to provide 250 percent growth of the Republic's GRP by 2020. Their creation involves implementation of a whole series of large investment projects.

Realization of projects within the Scheme will require total investments of RUR 2.5 trln. And the larger part of it falls on the assets brought by business structures (76%).

New economy branches projects launch (Table 6)

Specific feature of the Sakha Republic (Yakutia) strategy is forming large industrial clusters with an enhanced interregional effect: in Southern Yakutia, North-Eastern Yakutia, and Western Yakutia.

Each of the cluster-projects planned for implementation is a package involving wide range of mineral resources and their rough processing products, together with power engineering and transportation infrastructures.

Most important condition of these projects implementation and speeding up economic growth is active application of state-private partnership tools.

Territorial clusters (Table 7)

Southern Yakutia is becoming a nodal centre for infrastructure development of the whole Far East. Highways, railroads, oil pipes, gas pipes, and power bridge are going to cross the territory of Southern Yakutia. The project is based on 4 clusters and unites business plans of 8 companies under one model. Based on uranium fields it is planned to build Elkonsky mining and metallurgical plant. This will be the atomic cluster of the project.

Coal and iron ore mining will lay the ground for South Yakutian mining and metallurgical enterprise. This will be the coal-metallurgical cluster.

Based on apatite's deposits Seligdarsky mining and chemical plant will be constructed. Laying gas and oil pipes will make possible oil and gas processing. This will be the chemical cluster. Compulsory condition for all these projects implementation is infrastructure creation: construction of Kankunskaya HPS, HV-lines, railways and motorways.

Complex Development of Southern Yakutia investment project is going to receive state funding from the Russian Federation Investment Fund. A corresponding order was issued by the RF Government (No. 21 from Januarg 17, 2008).

South Yakutia complex development investment projects (Table 8)

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