THE ‘GOLDEN RING' PROJECT
The project's comprehensive concept is based on the
General Plan for the Development of the City of Moscow,
main concepts of the Urban Development Plan for the
Territory of the Central Administrative District in
Moscow and on main concepts of the Programme for the
Development of Tourism in Moscow up to 2010. The
project's concept is the development of the main ideas
contained in these documents.
The project aim is to create, in the
historical centre of Moscow, a tourist and recreational
zone with the well-developed multifunctional
state-of-the-art tourist service infrastructure. This
zone will attract Russian and foreign tourists and will
also facilitate further development of the city as the
world tourist centre.
The city's central area features a huge investment
potential which is due to its unique cultural,
historical, architectural and natural heritage. The
efficient use of this territory will be based on the
development of the tourist industry since this business
makes it possible to use the unique properties of the
territory in the most effective way.
The development of the tourist and recreational zone
involves implementing around 100 interrelated
sub-projects which cover around 65 buildings to be
renovated and constructed anew and also around 40 areas
and zones intended for pedestrians.
For each of the sub-projects, the implementation
process has been independently modelled. A number of
models have been created for each project (and each of
the models has been optimised independently), varying
from ‘optimistic' to ‘pessimistic', and some averaged
versions have been found.
Below a list of objects is quoted which contains
optimised calculated investment indicators and integral
efficiency parameters obtained by version modelling of
the projects' implementation.
The costs include, in particular, expenditures on
engineering works and infrastructure in the amount of 15
to 30 percent of the construction cost and also payable
taxes (in case of the project net profitability).
The city administration's contribution involves
construction of supply lines and bridges and also the
urban development of the city zones.
One of the co-operation forms, when
implementing commercially efficient projects, may
involve establishing enterprises (jointly with the city)
for constructing and operating objects. Also, the
project financing (ВООТ, etc.) may be an instrument
efficient from both the financial point of view and as a
way for establishing relations with owners (including
owners of federal property objects).
All sub-projects may be divided into three
groups differing by their commercial
efficiency. The most efficient group comprises the
objects which feature high profitability and
sufficiently high current liquidity. The Western Spit of
the Island and the hotel and multifunctional compound on
the Sofiiskaya embankment are examples of such objects.
Such objects featuring high profitability (annual
interest 34 to 39 percent in the hard currency) may be
commissioned in stages and divided into smaller lots
thus increasing the objects' investment attractiveness.
The second group contains less
efficient sub-projects. They can be implemented either
with partial financing from the city administration or
using mechanisms of project financing and concession.
Such objects can be combined in lots together with more
efficient objects inasmuch as the high indicators of the
objects included in the first group very frequently
depend on the implementation of less efficient
sub-projects. The urban development of the lots along
the Kitai-gorod wall and the restoration of the
Kosmodemian and Uglovaya towers are examples of the
objects included in the second group.
The third group comprises the objects which do not
ensure direct commercial profit but their development is
sufficiently important, though indirectly, for the
commercial objects' efficiency.
The third group mainly contains the
projects for the urban development of city squares,
pedestrian zones, etc. These objects can be a logical
and natural ‘complement' to highly efficient objects or
they may be financed from the city budget. The combined
sub-project for the development of the Island and for
the construction of pedestrian bridges from the
Cathedral of the Christ the Saviour and across the
Vodootvodniy channel is an example of such ‘alliance' of