Hungary keen on hotel construction in Augustow Canal

GRODNO, 30 July (BelTA) – The Hungarian company is interested in the construction of two hotels in the Augustow Canal on the territory of the future free economic zone Grodnoturinvest, BelTA learnt from Deputy Head of the FEZ Grodnoinvest Alexander Ponomarev.

In his words, potential investors show deep interest in the development of the infrastructure in the future free economic zone. The talks have already been held with one of the well-known companies of Budapest. Businessmen showed readiness to take part in the construction of two hotels with the budget of €4-8 million for each. The negotiations with other businessmen are underway as well.

The project of the FEZ Grodnoturinvest has already undergone all necessary coordination and has been submitted to the Presidential Administration. The total area of the free economic zone is 5749.9 hectares. The FEZ will consist of four sectors – the Augustow Canal, the Neman River; Radzivilki; Sopotskin and Svyatsk. As soon as all necessary documents are signed, a special legal regime will come into force on the territory, with the relevant customs and tax concessions.

Tax burden for the FEZ residents will be reduced by more than 70%. They will be exempted from profit tax within five years from the declaration of profit, real estate tax, VAT from the sales of own-produced goods (services), local taxes and duties. Economic agents will be free from customs duties and VAT in the import of goods, materials, equipment and component parts to the customs territory of the Republic of Belarus.

The major condition for the implementation of investment projects in the FEZ Grodnoturinvest is their focus on the development of the tourist industry and infrastructure. Investment should make up at least €200,000. Concrete proposals have been prepared for potential investors.

Alexander Ponomarev stressed that the development of the engineering and transport infrastructure of the future FEZ will be financed from the national budget and the FEZ Grodnoinvest development fund.