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Shares of the Zhatai shipyard will be transferred to Yakutia, subject to completion of construction by the end of 2024

Click on the flag for more information about Russian Federation RUSSIAN FEDERATION
Friday, September 22, 2023, 07:00 (GMT + 9)

Previously, the head of the region appealed to the President of the Russian Federation with a request to transfer to the republic a federal stake in the enterprise

The Government of the Republic of Sakha (Yakutia) and Zhatai Shipyard JSC provided the Russian Ministry of Industry and Trade with written guarantees dated September 4 and September 19, 2023, respectively, on the completion of construction of a shipbuilding enterprise in the region by the end of 2024. They also guaranteed financing of the project in the required amount, control over the attraction of extra-budgetary funds and the progress of completing the investment project. Written guarantees and completion of construction on time are a condition for the transfer to Yakutia of shares of Zhatai Shipyard JSC, which are federally owned, follows from the explanatory note to the draft relevant resolution of the Russian government.

Source: Zhatai shipyard

As stated in the document published on the federal portal for posting draft regulatory legal acts, previously the deadline for putting the shipyard into operation was set in 2023. The maximum construction cost was approved in the amount of 5.75 billion rubles (USD 59.93 M), including 4.1 billion rubles of budget investments (USD 42.73 M). The remaining 1.64 billion rubles (USD 17.09 M) were raised from the funds of the Development Corporation of the Republic of Sakha (Yakutia) JSC (750 million rubles (USD 7.82 M)) and the own funds of Zhatai Shipyard JSC (894.5 million rubles ( USD 9.32 M)). In 2019-2021, federal funds were provided to Zhatai Shipyard JSC in full.

At the same time, the overall readiness of the facility as of June 2023 is 64% and, taking into account the pace of construction, by December 31, 2023 it will reach only 75-80%. In this regard, Zhatai Shipyard applied to the Ministry of Industry and Trade with a request to postpone the completion of the project to 2024.

Source: Zhatai shipyard

“Taking into account the above, as well as the compensatory measures being taken to complete the project in terms of construction and installation work and the supply of necessary equipment, the Russian Ministry of Industry and Trade proposes to change the commissioning date of the facility to 2024 by making appropriate changes to the resolution. Failure to meet the established deadlines for commissioning the facility will lead to the need to collect a penalty from the enterprise for failure to fulfill obligations under the agreement on the provision of budget investments, which will have an extremely negative impact on the financial condition of the company and, as a consequence, on the completion of the project,” the explanatory note says.

Currently, the draft government resolution is going through the stage of public discussions (until October 4, 2023) and anti-corruption examination (until September 26, 2023).

As PortNews reported, initially the construction of the Zhatai shipyard was planned to be completed in 2021, then the planned commissioning date for the shipyard was set at the end of 2023.

It is expected that the commissioning of the shipyard will ensure the creation of a modern river fleet for cargo transportation in the Lena Basin and in the Arctic zone, including along the Northern Sea Route (NSR). The facility is designed for the construction of up to 10 river and sea vessels annually. By 2036, they plan to build about 130 river vessels, as well as repair, modernize and dispose of watercraft.

Due to the lack of communication between the inland waterways of the Lena basin and other river basins, the construction and repair of river vessels is possible only at the shipyard in Yakutia. There is no alternative to the Zhatai shipyard in the region.

Source: PortNews (Translated from the original in Russian)

Информационно-аналитическое агентство — Portnews



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