In opening the plenary meeting of the Second Interregional Forum of the Biggest North Caucasus Companies “How to Make Investment Intentions Reality?” in Kislovodsk on October 26, Alexander Khloponin outlined the main goals of the government programme for the development of the North Caucasus until 2025.

Alexander Khloponin said that the drafting of the programme had reached the final stage and the document is be submitted to the Government by December 1, 2012. It consists of two parts, one social, one economic. The social part of the programme is aimed at resolving acute problems in education and healthcare and achieving the national average in these areas.

"We must change the situation of children attending school in three shifts. This affects the quality of general education," the Deputy Prime Minister said. "People must also have full access to medical services in their regions."

The economic goals are to find new instruments to attract investment and to create new investment projects.

"The first issue concerns the implementation of anchor projects that are already underway in the North Caucasus Federal District," Khloponin told the forum participants. "The Government must contribute to these projects by developing the energy, road and transport infrastructure and also by lifting the administrative barriers standing in the way of business people trying to implement these projects."

The second goal is to develop tourism, which is an important sector in the North Caucasus but rather complex in terms of implementation, the plenipotentiary said. However, there is a state company, North Caucasus Resorts, which was set up to develop a resort cluster in the North Caucasus, whose charter capital is to be increased from 15 billion to 60 billion roubles. The Government will invest in the development of the internal and external infrastructure, while private investors will finance the construction of hotels and entertainment facilities.

The third issue concerns localisation, Khloponin said. In Soviet times, the North Caucasus only had plants that assembled military equipment and civilian vehicles. The Russian Government is considering placing aircraft manufacturing facilities and companies that will produce equipment for large corporations in the North Caucasus.

Another major goal is to bolster the development of small and medium-sized businesses. Khloponin said that the North Caucasus Development Corporation should play a major role in this area, working with medium-sized companies.

About 180 representatives of the largest companies in the North Caucasus as well as regional authorities attended the forum.