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About McGregor's Russian Activities

The Project:

The McGregor Model Forest is working with a consortium of highly experienced Canadian, Russian and international partners to deepen market influences in the Nanaiski Raion through the establishment and support of a number of commercially viable natural resource-based enterprises. The project's goal is to increase the region's capacity to identify and respond to market opportunities within its natural resource sector by increasing the skills of key business and government specialists and through the creation of new economic opportunities within the resource sector. Specifically within its natural resource sector, the project's objective is to improve the management, quality of output, range of goods and services, and its market reach, through the creation of new enterprises and /or the improvement of existing enterprises.  This will be accomplished with the provision of technical assistance in the areas of business planning, financial management, human resource management, training, marketing, strategic planning and strategic partnering between Canadian, Russian and international organizations.  Activities will be focused in five main areas:

  1. The development of value-added wood processing capacity to the region;
  2. The development of non-wood forest products enterprises;
  3. The development of a regional tourism strategy, infrastructure and enterprises;
  4. The development of commercial projects between Canadian and Russian indigenous peoples;
  5. The creation of specially protected areas.

Target Beneficiary Group:

The project will benefit existing and promising local professionals in each of the sectors identified.  Specific attention will be given to drawing strong business leaders from among the ranks of the Raion's women. The project will work with and include local economic development and resource planners in all aspects of the project's development and work to integrate qualities of good corporate citizenship into each project component.


Project Outcomes:

The immediate, measurable results of the project will be the following:

  • The creation of permanent employment;
  • The creation of seasonal employment;
  • The creation of a minimum of eight new business enterprises and/or augmentation of existing enterprises;
  • Increases in the productivity and product line of existing enterprises;
  • Greater involvement of women and indigenous peoples in economic development opportunities,
  • The creation of new business opportunities for Canadian interests across a number of economic sectors.

The project is designed for implementation over four years - from Spring 1999 to Spring 2003. Its budget is ~ $5 million of which the contribution from CIDA is ~ $3.5 million. The government of Khabarovsk Krai has pledged $750,000 to $1,000,000 from the Russian partner group.  Canadian partners will contribute a minimum of $750,000 in cash and kind over the life of the projects.

Justification:

The project site is the Nanaiski Raion, of the Khabarovsk Krai region of the Russian Far East (approximately the size of British Columbia).  The economy of the Nanaiski Raion is dominated by the forest industry, followed second by the fisheries sector. The history of forestry in the Raion was one of aggressive harvesting, usually followed shortly after by devastating forest fires. The result today is a forest that has been substantially transformed and degraded by over fifty years of careless forest practices. The Raion has only one value-added wood processing facility , which has operated precariously on and off for several years.  The main source of revenue within Russia's forest sector has been the export of raw logs, principally to Japan (95% of export market).

The productivity of its fishing sector (principally salmon), long a rich resource, has fallen precipitously in recent years and there are warnings that a collapse of the salmon harvest is at hand due to over-harvesting and poaching.

The official unemployment statistics show a level of approximately 30 - 35%, however if underemployed and those not receiving salaries were included the figure could easily rise to 60% or higher.   It is anticipated that this project will create the over 300 person months of employment in Canada, and will assist in creating over 1000 person months in Russia.

Contact:

Rick Heathman, CIDA Project Coordinator (McGregor Model Forest)

Phone: (250) 612-5843

Fax: (250) 612-5848

Email: rick.heathman@mcgregor.bc.ca

 

 

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