Parco industriale “Great Stone”
Great Stone Industrial Park is a territorial unit of Belarus with the status of special economic zone and special regime for doing business. The Park offers easy access to International Highways M1/E30 and M4, International Airport (included into the Park territory), International Railways and the capital of Belarus with its labour and scientific potential. Great Stone Park is designated for high-tech industrial and business activities, including research and development, manufacturing and assembly, warehousing and logistic facilities. Park tax benefits, free customs regime within the countries of EAEU, including Russia and Kazakhstan and close cooperation with Lithuania (Kaunas FEZ) open market opportunities for 183 million of customers.
1) Background information
Currently, Park development is based on high-tech manufactures in the spheres of mechanical engineering, electronics & telecommunication, fine chemistry, biotechnology, pharmaceuticals, new materials, logistics, e-commerce and big data processing & storage. The list is not limited. We are focused on innovative manufacture with high export potential.
At the very beginning, logistics was the Great Stone growth engine. The project on the construction of logistic sub-park is implementing by the biggest owner of ports and vessels in the world — China Merchants Group. First objects of the logistic sub-park (total area is 100 000 sq. m), such as administrative building, exhibition centre and 3 warehouses (18 000 sq. m each) have already been completed. Thus, due to beneficial location and developed logistic system Great Stone Park is considered as a key element within the concept of Silk Road Economic Belt.
Nevertheless, Great Stone Park is not only industrial area. In the future perspective it is going to be eco-city with comfortable conditions of living for up to 200,000 citizens. Next year we are planning to build first apartment building for up to 144 flats. Later on, kindergartens, schools, hospitals, sport and recreation centres and so on will be built. However, to keep the status of eco-city, any activity in the Park shall correspond to high ecological standards. Thus, it is possible to say that any eco-friendly and innovative manufacture is welcome in Great Stone Park.
2) Management structure
One of the biggest advantages of Industrial park related to “one-stop service” opportunities. If required, any resident needs to apply to single authority – Park Administration – for any administrative procedures, such as company registration, licencing, construction permits and so on. If requested by the Park Administration, any public authority shall arrive at the Park territory in order to support residents. Moreover, Park Administration has the right to cancel any unauthorized inspection organised by any authorities.
Industrial Park Development Company is located at the same building as Park Administration and responsible for construction of infrastructure, land plot allotment and attraction of investors. Moreover, it provides investors services on water, gas, electricity, internet supply and other facilities. Thus, such management structure makes it easier for foreign investors to adapt in new country, protect their rights and simplify any administrative procedures.
3) Tax benefits and other incentives
Currently, regime for doing business in Great Stone can be considered as one of the best in the whole territory of EAEU. It is impossible to write down all benefits and incentives offered for the Park residents. However, some of them are listed below.
a) Tax benefits:
- the Park residents are fully released from profit tax during 10 years from the moment when the first profit appears, after that they will have 50% discount of the existing rate until 2062;
- full exemption from real estate until 2062;
- full exemption from land tax until 2062;
- full deduction of VAT paid for purchased (imported) goods (works, services) or property rights in order to create the Park objects;
- free from “import” VAT in relation to goods made from imported raw materials in case they are distributed on the territory of EAEU;
- released from tax on dividends within 5 calendar years, from the moment when the first profit appears.
a) Labour (including foreign labour) attraction:
- income tax for individuals is 9% compared to 13% in Belarus;
- allocations to the social protection fund at the amount that exceed average salary in Belarus (that is 400 USD) can be unpaid at the consent of employee;
- no need to pay state duty for attraction of foreign labour;
c) Customs procedures:
- customs regime of free customs zone;
- no need to pay customs fees (VAT and customs duty) for components and equipment;
- no need to pay customs fees (VAT and customs duty) for raw and other materials in case of export of finished goods outside the Customs Union (Belarus, Russia, Armenia Kazakhstan, Kyrgyzstan) or in case of absence of analogue materials in the EAEU;
- simplified customs procedures and “bonded area”.
d) other incentives:
- no deadlines for completion of foreign trade operations;
- possibility to open foreign bank accounts without permits of National bank;
- no obligation to have obligatory procurement procedures and free pricing for goods (services) during the construction process;
- no need for certification of goods and materials for construction at the territory of the industrial park and so on.
However, the most important to be mentioned is the grandfather clause applied to Great Stone investors within the following 10 years.
4) Current results
Park development (total area is 91.5 sq km) is going on step by step. Currently, we are focused on the first-stage territory (8.5 sq. km) and its starting point (3.5 sq. km).
The following objects of infrastructure of starting point has already completed: main roads with hard surface (modern roads with 4-6 lanes and 13 km in length, including traffic lights, bikeways and sidewalks), engineering pipelines, water supply facilities, water intake facilities, water intake pumping stations, gas supply facilities, electric sub-station, networking and lightening. Moreover, entire infrastructure was built in short terms that is twice faster that must be. In 2017, we are planning to continue construction of infrastructure on the full area of the first-stage territory (8.5 sq. km).
Office building (12 000 sq m) was constructed for Park Administration and Industrial Park Development Company in order to provide investors with “one-stop” service. Construction of the first standard manufacturing building (8 000 sq m) for any manufacture without specific requirements have already finished. We are going to continue constriction of other manufacturing buildings.
Basically, construction and development of the Industrial Park is going on much faster than it was planning to be.
5) Offers
First, Great Stone offering land plots for their lease (up to 99 years) or ownership. It is a single opportunity in Belarus to buy a land. Any site is connected to all necessary infrastructure and Industrial Park Management Company provide the investor with connection points. It is also responsible for removal of wood and scrubs on the territory of resident`s land plot as well as levelling of the territory. Thus, the site is ready for construction.
Secondly, understanding that not every investor is ready to come to “green field”, Industrial Park Management Company has already built its first objects – office building and standard manufacturing building. In 2017 one more manufacturing building are going to be built. They are offered for lease or purchased by the Park residents or investors.
Lastly, Industrial Park Management Company can build any building at the requirements of the investor. Thus, customized approach to any investor is one of the ideas of the Park development.
6) Residents
Currently 13 residents (including Kronospan, Zoomlion, ZTE, Huawei) and 22 companies from different parts of the world are operating on the Park territory. More than 1 sq. km of land plots have already reserved by the existing residents for manufacturing or logistic purposes. The investments announced by the Park's residents exceed 700 million dollars. Moreover, more than 50 agreements of intent were concluded with potential investors.
7) Scientific potential
The last point to be mentioned is the scientific environment that is being developed in Great Stone Park. Together with Academy of science the innovation centre and the centre of commercialisation of scientific results has been created. The construction of the building is under design. To support start-ups and other innovative and efficient projects Venture Fund for up to 20 million dollars was created by the Industrial Park Development Company.
