Russia and France have officially registered the joint venture for the development of the North Caucasus tourism cluster.
The joint venture, called International Caucasus Development, will begin to work in February 2012. According to the shareholder agreement, which was signed by the parties, joint venture plans to bring in 2012 into the tourism cluster of up to 1 billion euros of investments.
The authorized capital of joint venture will be 10 million euros, of which 51% - will be the share of "NCR" corporation and 49% - of the French side. The Board of Directors will consist of four representatives from each of the parties and will be headed by a representative of the Russian side. Director General of Joint venture will be a representative of France. For a comprehensive assessment of investment projects under the joint venture will be established Technical Board, which would include leading experts from Russia and France.
The joint venture will carry out international coordinating role for the development of the concept and construction of the North Caucasus tourism cluster. The venture will create a system of sales of investment products, will develop business plans for the project and will involve foreign investors. Joint venture will also make a comprehensive review of all projects being prepared for implementation and will transfer them to international standards of quality in all parameters - economic, environmental, technical, social, infrastructure, architecture, etc.
According to the French side, this approach will allow Joint venture to raise up to 15-20 billion euros of foreign investments in the projects of North Caucasus Federal District.
The initiative of joint work in the North Caucasus belongs to the Russian and French presidents Dmitry Medvedev and Nicolas Sarkozy. On May 26, 2011 at Deauville, the two leaders made a statement in which the joint development of resorts in the North Caucasus has been identified as a strategic priority of the Franco-Russian strategic partnership.
In this initiative, on June 17, 2011 OJSC "Resorts of the North Caucasus" and Caisse des Depots et Consignations have signed a framework cooperation agreement, in September 2011 – pre-shareholder agreement and on 9 December 2011 in Brussels was signed a shareholder agreement establishing the joint venture. As a result the company was officially registered in Netherlands.
The project of the tourism cluster in the south of Russia in 2011-2020 includes the construction of five world-class mountain resorts: Lagonaki (Krasnodar Territory, the Republic of Adygea), Arkhyz (Karachay-Cherkessia), Elbrus-Bezengi (Kabardino-Balkaria), Mamison (Republic of North Ossetia - Alania), Matlas (Republic of Dagestan). The planned total length of ski runs will be almost 900 km and they will have 179 ski lifts. The hotels with varying comfort levels will accommodate 89 000 people. Daily throughput of the resorts will reach 150 500 people and each year the North Caucasus tourist cluster will be visited by 5 to 10 million tourists. The project involves phased implementation of over 330 thousand jobs in the region.
The total cost of the ski project is estimated at 451 billion rubles. The project is financed by a public-private partnership. Government invests via NCR 60 billion rubles in transport and utilities infrastructure, private business is financing the facilities of resort infrastructure.
Russian government is considering the inclusion of the coastal area of the Caspian Sea (Dagestan), Caucasus Mineral Waters (Stavropol Territory) and the Republic of Ingushetia to the North Caucasus tourism cluster project.