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INVESTMENT PROJECTS | "The Golden Ring of Moscow"

PROJECT “GOLDEN RING”

The complex concept of the project is worked out on the basis of the General plan of Moscow with due regard to the development of the territory of the Central Administrative District of Moscow, main principles of the development Program of tourism in Moscow for the period up to 2010.

The purpose of the project is to create in Moscow tourist recreational zone in the historical center with the advanced multifunctional modern infrastructure of tourist service for attraction of the Russian and foreign tourists and the further development of the city, as the center of the international tourism.


Location and development map of entertaining,
cultural and tourist services units

The central part of city has huge investment potential due to unique nature of cultural, historical and architectural heritage. The basis of an effective use of this territory is the development of tourist sphere, as this direction allows to take the most of its unique features.

Development of the tourist recreational zone is based on realization of about 100 inter- connected sub-projects, including about 65 objects for reconstruction, restoration and new construction, and also about 46 sites and objects of pedestrian zone formation.

For each of sub-projects an independent modelling process of realization was carried out and several models were constructed (each of them was independently optimized) - from "optimistic" up to "pessimistic" and the average variants were obtained.
Further there is a list of objects with the optimized calculated investment indicators and the integrated parameters of efficiency, obtained as a result of alternative modelling of objects.
It is necessary to note, that expenditures also include the engineering and infrastructure expenses at a rate of 15 - 30 % from cost of construction, and also taxes paid (in case if the profits are gotten). The city is ready to provide with communications supplies, construction of bridges and pedestrian zones.

The required volume of investments for realization of the Concept is 2,3 billion $.

One of the possible forms of cooperation for realization of commercially effective projects may be creation of the joint enterprises with city for construction and operation of objects. Besides, as the effective mechanism both from the financial point of view and from the point of view of relations with owners (including federal objects) project financing (and others) will act.

All the examined sub-projects can be divided into three groups in accordance with the degree of commercial effectiveness. Objects, which are of high current liquidity have a good parameter of profitability and are concerned the most effective. These are, for example, the Western Arrow of Island, hotel and multipurpose complex on the Sofia embankment. For these profitable objects (34 - 39 % annual in hard currency) stage-by-stage input, splitting into finer classification is possible, that considerably increases investment attractiveness of the objects.
Sub-projects which are less commercially effective are included into the second group. Realization of these sub-projects is possible either at partial financial participation of city, or at utilization of mechanisms of the project financing and concession. Unification of these objects into the united classification with more effective ones is also possible, as high parameters of objects from the first group are dependent on realization of less effective sub-projects.
The representative of objects from the second group is, for example, development of underground space along the China - city wall with restoration of Kosmodemianovskaya and Angular towers.

The third group includes objects, which are not the direct sources of the commercial income, however their development indirectly, but significantly influences the efficiency of commercial objects. The third group contains, first of all, projects of organization of squares and pedestrian zones etc. These objects also may be logic and natural addition to highly effective objects, otherwise they will be financed from the budget. As an example of a good alliance of sub-projects development of the Island aria construction of pedestrian bridges from the Cathedral of Christ the Savior and across the Drainage channel may he demonstrated.


• The concept of the program
• The main descriptions of the program
• The realization course of the program
• City Tourist Infrastructure
• The objective of the "Golden Ring of Moscow" Development Program
• Tourism in Moscow. Archives for 2003.
 
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