The Government of the Murmansk Region had an offsite meeting today chaired by Governor Andrey Chibis to consider the social and economic development programme for the Pechengsky Municipal District. The programme was created on the basis of a concept developed jointly by Nornickel, Kola MMC, the local government and the municipal authorities to facilitate the district’s sustainable development following the closure of Kola MMC’s smelting facilities in the town of Nikel.
“I am grateful to Nornickel and the management of Kola MMC,” said Murmansk Region Governor Andrey Chibis. — Closing the facility is not an easy story; it’s a very delicate and sensitive issue. Today we see that the process was carried out in good faith. A no less ambitious task lies ahead — to give the territory a new impetus for development in the interests of the local community. The main tool here will be the programme, which was signed off today. I can say that this is a striking example of public-private partnership“.
Effective until 2025, the programme includes around 50 initiatives with financing and responsible parties designated. It contains four main focus areas: new economy, social sector, housing and infrastructure upgrades, and comfortable urban environment.
“The support to be provided to the Pechengsky District under the development programme will help to build new economy and give a new lease of life to the municipality,” said Evgeny Borzenko, Vice President, Head of Nornickel’s Kola Division and CEO of Kola MMC. “The Pechengsky District will no longer be a single-industry dependent community. New opportunities are opening up, and the Company is doing its part by attracting new investors willing to develop their business in the area and invest in upgrading and building new infrastructure for the Pechengsky District.”
On the industry side, the programme includes projects to build a metallurgical mini-plant, abrasives manufacturing facilities, an eco-plant for processing recycled plastics, a trout farm and a dairy farm.
A promising growth area within the Pechengsky District’s new economy is tourism along with the hospitality industry. In particular, a Recreation and Extreme Sports Park and a walkable shopping zone will be built in Nikel.
The social sphere and utilities are also getting an overhaul. Nikel’s sports centres, community centre and polytechnic college will be refurbished. In Zapolyarny and Nikel, dilapidated buildings will be torn down, utilities systems will be optimised and new housing will be built. Fostering certain areas of cross-border cooperation is also on the agenda.
The total cost of the social and economic programme for the development of the Pechengsky Municipal District has been estimated at RUB 10 bn, RUB 7 bn of which will be covered by Nornickel.