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March 16, 2020

Moscow to sign first off-set contract in food industry

Moscow has announced a tender for the conclusion of an offset contract, which involves the creation, modernization or development of the production of food products for children and pregnant and lactating women, supplied through the milk distribution points of the capital.

"The base conditions of the tender are the volume of investments not less than 2.1 billion rubles into the production, which will produce 38 items of food products: milk, juices, fruit, vegetable, meat and meat puree, porridges, cottage cheese, kefir, sour-milk mixture, as well as dry mixture. Delivery to the city will be carried out from 2022 for 8 years. The initial (maximum) price of the contract is 30.6 billion rubles", - said the Deputy Mayor of Moscow on Economic Policy and Property and Land Relations Vladimir Yefimov.

Offset contract as a form of interaction with investors has proved its viability: offset for the purchase of baby food will be the fourth for the capital. The total volume of investments under the three signed contracts is 9.8 billion rubles, while the volume of supply is 41 billion rubles.

"All offset contracts concluded earlier showed efficiency in terms of budget savings: their initial (maximum) prices as a result of competitive procedures were reduced by 31.6% in total," - said the head of the Metropolitan Department of Investment and Industrial Policy Alexander Prokhorov.

Moscow has concluded the first two contracts in pharmaceutics. Under them new plants are being built in the city to produce medicines for the treatment of cancer, cardiology, endocrine and immune diseases. The third offset, signed with Gemamed at the end of last year, envisages the creation in the city of almost one hundred percent import-substituting production of medical products for stomatized patients. Subsequently, both medicines and medical devices will be supplied to the capital city.

"Offset contract is the purchase of goods for state needs with counter investment commitments to localize their production. Its main purpose is to stimulate private investment in the creation of new enterprises or modernization of existing facilities in Moscow. The offset is concluded for the period of up to 10 years, the minimum volume of investments - 1 billion rubles, the supplied goods should be of Russian origin", - explained the director of the City Agency for Investment Management Leonid Kostroma.

In the future, in addition to health care and food industry, the capital plans to conclude offset contracts in such industries as transport engineering, machinery for housing and communal services, IT-equipment.

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