Ministry of Industry and Trade suggests shifting Zhatai Shipyard completion deadline from 2021 to 2023
The Ministry of Industry and Trade of the Russian Federation suggests shifting Zhatai Shipyard completion deadline from 2021 to 2023. According to the explanation note to the draft amendments into the relevant Decree of RF Government, the Ministry’s monitoring of the project’s progress reports revealed high risk of the deadline disruption. The schedule delay is attributed to a late attraction of required non-budget resources needed by Zhatai Shipyard for procurement of technological equipment. That, in its turn was caused by long obtaining of compensation guarantees from the Republic of Sakha (Yakutia) and the rejection of the Federal Agency for State Property Management (holds 82.19% of Zhatai Shipyard’s authorised capital) to approve tender on contracting for a loan from extrabudgetary sources needed to complete the project since Zhatai Shipyard JSC was included into a privatization plan of 2020-2022. Other causes of the deadline disruption are low pace of work of the main contractor due to lack of working capital; late transfer of fixed assets required for construction works; abnormally cold winter of 2020-2021; transport restrictions hindering supplies of construction materials from other regions of the country; personnel reduction due to coronavirus related constraints.
Therefore, the Ministry of Industry and Trade of the Russian Federation suggests postponing of the facility commissioning for 2023 through introduction of relevant amendments into the Decree of RF Government dated 18 June 2019 (No 775, “On providing budget investments to joint stock company Zhatai Shipyard”).
When fully operational, Zhatai Shipyard will be the key facility for modernization of the fleet operating in the Lena river basin and the Arctic areas of Yakutia (including participation in the Northern Delivery programme).
The project is estimated at RUB 5.75 billion. Initially approved structure of financing was as follows: RUB 4.1 billion from the federal budget, RUB 750 million to be invested by the Sakha Republic Development Corporation with the remaining RUB 894.5 million to be raised by Zhatai Shipyard JSC.