"Real Estate and Investments. Legal Regulation", the journal

Issue 4 (5) 2000

New Approaches in the Investment Practice of Moscow

Zholkov A.S., professor, academic of the Russian Academy of Natural Sciences

Recently in financial and investment practice of Moscow important positive modifications have taken place, which will positively influence the modifications of common market conditions. We talk of reorganization of investment activity, reflected in the order of the mayor of Moscow № 894 of August, 18 of the current year. With the purpose of density of resources for realization of urban building housing programs it is planned to realize a lot of economic and financial measures. It is detected that since September 1, 2000 strictly on the basis of decisions of an urban competitive commission on investment in construction and reconstruction of residential plants the selection of investors is realized on an extremely competitive basis. Thus the urban customer - investor in programs of the municipal housing construction is the Department of municipal housing and housing policy of Government of Moscow. It would be desirable to underline, that henceforth the living space transferred as a share of Prefecture on investment contacts, is a share of the city and this share is distributed by Department of municipal housing. Certainly, thus the need of administrative districts for square for resettlement of the citizens is taken into account. It is important to inform our readers, that in the indicated document the solutions about the cease, of the sale practice of sites under housing construction have been formulated since September 15, 2000.

To fulfill the order of the mayor of September 19, 2000 the decree of the Moscow Government №749 is passed. This document affirms a new composition of an urban competitive commission on investment of construction and reconstruction of residential plants and Provision on it.

The department of Extra-budgetary policy of construction of Moscow has to stop executing the function of the investor on plants included in the estimate of incomes and expenses of the target budgetary housing-investment fund of 2000, on which the investment contracts are concluded in due order. Thus the address enumeration of plants transferred for placing on a competitive basis is transmitted to an urban competitive commission. It is important to underline, that in this governmental order the size of square subject to transmission to the investors for the needs of a city, is defined from the expenditures on capital construction and real sale prices on housing. Thus additional encumbrances are taken into account as well, which are superimposed on the investors by the investment contracts.

We think, that this moment has an extremely important value. The matter is that at presence of the justified technique, capable to realize such approach, a possibility of real comparability of expenditures and results of investment practice occurs. It is doubtless, that it will open new possibilities for an amplification of the investor's interest in a sphere of the municipal economy development in Moscow.

Nowadays a group of scientists of the Council on study of productive forces of the Ministry of Economy of Russia and RAS (CSPF) under the management of A. N. Gladyshev is occupied with development of such methodical system.