Methodical recommendations for the implementation of the standard of activities of local governments on ensuring favorable investment climate in municipalities of the Republic of Dagestan.

In order to improve the performance of local authorities in attracting investments and creating favourable conditions for investment activities at the municipal level was developed a Standard of activities of local governments on ensuring favorable investment climate in the municipal unit (hereinafter – the Standard).

The standard was developed in accordance with the requirements of the standard of activities of Executive authorities on ensuring an investment climate in subjects of the Russian Federation, prepared by the Agency for strategic initiatives to promote new projects in partnership with the Russian public organization “Business Russia”, and also taking into account the best Russian and international practices of attracting investments at the municipal level.

The implementation of the Standard in the municipalities of the Republic of Dagestan will form a support system of investors and entrepreneurial development at the municipal level, as well as to regulate the order of interaction of bodies of local self-government, bodies of state power of the Republic of Dagestan, the Federal authorities and investors, in attracting investment.

The standard focuses on the following directions of activities of bodies of local self-government:

• formation of the performance management system to improve the investment climate at the municipal level;
• development of normative-legal base for investment activities;
• creation and development of infrastructure for investment activities;
• increase information transparency.

The standard contains 11 sections. It is the minimum required conditions for the formation of a favorable investment climate in the municipality.

1. The approval of the Head of municipal formation Investment strategy of the municipality to 2020.

In the municipality should be developed, validated and adopted for execution of the Investment strategy (strategy).

1. The investment strategy should determine the investment priorities of the municipality – the territory, industry, technology, advanced development, mastered types of products, works and services planned for implementation of investment projects.
2. The investment strategy must describe the interrelated goals, objectives, timeframes and resources targeted programs, individual projects and activities to ensure investment growth in the municipality.
3. The draft Investment strategy should be subject to public discussion.
4. Investment strategy approved by the Head of the municipality.
5. The investment strategy was adopted as a separate document.

2. Annual address of the head of administration of municipal formation “the Investment climate of the municipal formation” as part of the annual report on the activities of the municipal administration.

The head of the municipal administration is requested to present Annual address on the investment climate in the municipality, addressed to local governments, business, representatives of business associations.

In the Address it is proposed to reflect the results of implementation of socio-economic development of the municipality in terms of investment policy, determine new directions and priorities of the investment policy of the municipality, and report about key measures that need to be implemented next year in order to attract investment and improve business conditions in the municipality.

Investment message may be as a separate document and as part of the annual message of the Head of the municipality.
1. In the framework of the Investment strategy should be prepared a public report on the implementation of investment plans for the year.
2. Indicators of investment activity in the municipality must be:
• the volume of attracted domestic and foreign investment
• the dynamics of attracting investments
• the creation of new jobs
• dynamics of organizations
• the implementation of specific investment projects
3. A separate Chapter should be announced specific support measures, which the municipality is ready to offer to existing and potential investors to attract funding in strategically significant areas of the economy and individual production facilities.
4. In addition, there needs to be specified in General and the support measures in force at the regional level.
5. Together with the publication of the Investment strategy in the media, it is recommended that public speaking is the head of the municipality with a portion of the message devoted to investment, to business representatives and potential investors.

3. Creating and ensuring the functioning of the specialized section on investment activities of a municipality on the official website of the municipal administration.

The Internet is the main tool to ensure direct communication and feedback between government, business, investors and residents of the municipal area, involving all stakeholders in the implementation of policies to attract investment. The creation of a specialized Internet resource, which provides information useful to potential investors and conducive to the promotion of the municipality with the point of view of investment attractiveness, appears to be an integral element in improving the investment climate in territory of municipal education.
1. On the official website of administration of municipal formation proposes to create a dedicated section on investment activities of the municipality.
2. The online resource must provide a visual representation of investment possibilities of the municipal formation, the main directions of attracting investments into the economy of the municipality and infrastructure, and the collection and prompt consideration of complaints, appeals investors.
3. In section it is proposed to include:
— contact details of the Deputy head of the municipal administration, appointed to oversee the investment activities of, and employees of the administration who deal with issues of attracting investors, and accompany the implementation of investment projects, from the stage of experience of the investor with the municipal education before entering the facility into operation;
— regulatory framework that includes Federal, regional and municipal legislation on investment activities;
investment passport of the municipal entity;
— information about the investment attractiveness of the municipal district;
— the program of socio-economic development of the district with allocation section of the investment policy;
plan of creation of investment objects and infrastructure in the municipal district;
— systematic list of municipal land and property offered to the investors for placing of industrial and other objects;
— the order of investors ‘ interaction with officials and local authorities;
— description of measures to support investment and investment projects and the procedure to obtain them;
— information on plans and results of meetings of the Council on improving the investment climate, support of investment projects and expert selection of strategic projects at the head of the district administration, the minutes of its meetings;
— information on planned, ongoing and implemented on the territory of municipality investment projects;
— information about the channel (channels) of direct communication of investors and government of the municipal district;
— links to the investment portal of the Republic of Dagestan (http://investdag.ru).

4. The presence of the section “Investment policies” in the program socially-economic development of the municipality.

In the municipality was developed, approved and accepted the program socially-economic development, which is a comprehensive system of targets for socio-economic development of the municipality, establish effective ways and means to achieve these targets, including research and development, production, socio-economic, organizational-economic, financial, investment measures, linked resources, performers and timing.

The program is proposed to include a section on investment activity that defines the system of measures of the institutional, legal, organizational and financial nature, aimed at ensuring conditions for sustainable socio-economic development, improvement of investment attractiveness and strengthen the position of the municipality.

— goals, objectives of the investment policy of the municipality, the target indicators reflecting the degree of achievement of objectives;
— the plan of measures aimed at achieving the goals of the investment policy of the municipality;
— vision of current competitive advantages and weaknesses of municipal formation (relation to other municipalities) from the point of view of investment attractiveness;
assessment of the potential growth points of the economy of the municipality, including the identification of priority directions of investment activity on the territory of the municipality.

5. The adoption of legal acts providing for the granting of privileges and preferences on tax payments to the local budget to investors implementing investment projects on the territory of the municipality.

In the municipality proposes to create a regulatory legal framework for investment activities in accordance with the legislation of the Russian Federation on investment activities.

1. In the municipality proposes to adopt normative acts establishing main directions of the participation of the municipality in investing activities, including the creation of favorable conditions for development of investment activities by:

• determine the order of applications of investors for protection and assistance, including the procedure for appealing against illegal investors decisions and actions of local authorities;
• protect the interests and rights of investors, including protection against unfair competition and the restriction of market access;
• determination of clear criteria and procedures for obtaining support;
• direct involvement of local authorities in investment activities in the framework of the development, approval and financing of investment projects;
• the allocation of funds to local budgets for financing the investment projects;
• expert examination of investment projects;
• establish the subjects of investment activities benefits on payment of local taxes, the rent for land plots and other charges;
• granting to subjects of investment activities which do not contradict the legislation of the Russian Federation with privileged conditions for the use of land and other natural resources owned by the municipality;
• involvement in the investment process temporarily suspended and laid up construction projects owned by municipalities.

2. It is proposed to provide constant monitoring of norms of Federal and regional legislation to ensure compliance with municipal legislation to the norms and innovations.

3. These rules may be contained in different normative legal acts of the municipality and information of such documents is offered in an accessible, coherent form to elucidate on the official website of the municipality in the dedicated section on investment activities.

6. The establishment of the Council (or other authority) to improve the investment climate, support of investment projects and expert selection of strategic projects at the head of the municipal administration.

In the municipality proposes to create a public deliberative body — the Council (or other authority) to improve the investment climate, support of investment projects and expert selection of strategic projects (hereinafter – the Council), in whose work are going to head of the municipal administration, representatives of local authorities, business, investors, representatives of business associations and experts.

The presence of the Council will align and coordinate the actions of business and government in improving the investment climate, and will also ensure the involvement of investors in the development and implementation of policies to attract investment, public examination of investment projects, consideration of initiatives of the business community.

The main objectives of the Council is proposed to include:

-development of recommendations for municipal support of investment projects and processes, stimulation of investment activity on the territory of the municipality;
-development of recommendations on the organization of interaction of local governments and participants of the investment process, including recommendations to reduce administrative barriers impeding the implementation of such cooperation;
-development of proposals on priority directions of development of the municipality;
-consideration of results of realization of the investment projects including failed and unsuccessful, analysis of failures in implementation.

It is recommended that the Council is under the head of administration of municipality.

It is recommended that the Approval of the Council, including the procedure for its formation, is approved the head of administration of municipal formation.

The Council meeting is proposed to conduct publicly and openly. It is proposed to provide the possibility of personal participation in the meetings of investors who are not members of the Council. Minutes of meetings showing all the adopted decisions will be publicly available on the official website of the municipality in the dedicated section on investment activities. 

It is proposed to control the execution of instructions and recommendations of the Council.

7. Development and annual updating of the plan of creation of investment objects and infrastructure in the municipality

1. In terms of creating investment objects and infrastructure in the municipality (hereinafter – the Plan) it is proposed to merge the list of major infrastructure facilities construction and reconstruction which are fixed in the existing plans and programs of the Russian Federation, subject of the Russian Federation and municipal education, including a public-private partnership, investment programs of subjects of natural monopolies and economic entities with state and / or municipal participation. Thus for each object we propose to define the sources and size of financing (or an indication of the lack of confirmation of funding; the planned deadlines and actual condition (stage of preparation or execution).

2. The Plan proposes to specify the planned construction (reconstruction) of investment projects with indication of the required capacity of energy consumption.

3. The plan is published on the website of the municipality in the dedicated section on investment activities and investment on the official bilingual Internet portal of the Republic of Dagestan (www.investdag.ru).

8. The adoption of the head of the municipal formation of the investment passport of the municipality.

Investment passport is a comprehensive newsletter, aimed at potential investors, who receive complete and accurate information about the investment climate of the municipality to assess the attractiveness of equity investments.

In the investment passport of the municipal formation proposes to include the following sections:

— General information about the municipality;
— indicators of socio-economic development of the municipality: the economy, local budget, labor market, level and quality of life, scientific-technical base and others;
— prospects for socio-economic development of the municipality;
— competitive advantages of the municipality;
— investment infrastructure of the municipality;
— normative legal acts of the municipality, governing the investment process;
— municipal support of investment activities (guarantees and benefits);
— activities and services in support of investment projects;
— proposals on investment projects;
— contact information.

9. The conduct regulation of all facilities that are the property of the municipality, either subordinate municipal unitary enterprises and institutions in the course of working with investors.

In order to systematize and optimize the list of services provided to investors during implementation of investment activity on the territory of municipal formation administrations are requested:

1. To develop a “roadmap” for working with investors, starting from the moment of application of the investor to the administration of the municipality to object input in operation, including the provision of land and connection to utilities, owned by municipalities, including dates and list of required documents.

The investment projects proposed to be undertaken in a single information system and according to uniform procedures providing for the availability of a common database of projects, registration of information about all stages of interaction with the initiators of the projects, analysis of financial indicators, results of interaction of subjects of entrepreneurial and investment activities with municipal and state authorities.

2. To identify procedures which are unnecessary, and to identify opportunities to reduce them.

3. To analyze the timing of the issuance of permits and to determine the possibility of their reduction.

4. Together with providers to consider the possibility of granting preferences to investors of the receipt of the installment payment for the technological connection to the networks owned by municipalities.

5. To contribute to the legal framework of the municipal formation corresponding changes in the elimination of unnecessary procedures and shortening the issuance of permits.

10. A channel of direct communication of investors with the Head of administration of municipal formation, to operational decisions arising in the process of investment problems and issues.

In order to improve efficiency and enhance coordination of activities on attraction of investment resources, and also for interaction with investors, the Head of administration of municipal formation personally responsible for attracting investment and working with investors.

1. For the operational decisions arising in the process of investment problems and issues it is proposed to create a channel of direct communication of investors with the Head of administration of municipal formation.

2. Through the organization of a channel of direct communication are proposed to ensure:
— equal access of subjects of entrepreneurial and investment activities to resolve the issues municipal officials appropriate to the level;
— monitoring the results and terms of consideration of a given business entities issues and problems
Channels of direct communication, in particular, can serve:
— “hot line” for the subjects of investment activities;
— electronic reception on the official website of the municipality in the dedicated section on investment activities.

11. Training and professional development of employees responsible for attracting investments and work with investors.

For the purposes of training and advanced training of employees of municipal entities responsible for attracting investments and work with investors, it is proposed to include them in the composition of the Council (or other authority) to improve the investment climate, support of investment projects and expert selection of strategic projects at the head of the municipal administration, should be sent to seminars, conferences, “business School” and other themed events, dedicated to investment and working with investors held by the Executive authorities and organizations of business support infrastructure.

Download guidelines for implementation of the standard of activities of local governments on ensuring favorable investment climate in municipalities of the Republic of Dagestan

Download regulation on the implementation of the standard of activities of local governments on ensuring favorable investment climate in municipalities of the Republic of Dagestan