Alexander Tsibulya,
Deputy Head of HTSPE Ltd. Moscow Office
The CNCP Programme is funded by the
which has made financial resources available for grant support for investment
projects which meet the Programme's aims and satisfy the following criteria:
New sustainable jobs, not less than 55% of which for personnel
that were formerly nuclear weapons specialists;
Sustainable commercial projects in the areas of manufacturing and
service provision or related to technology commercialisation;
Project applicants can apply for up to a £200,000 contribution from
CNCP. Other financial investors or collaborators are welcome. CNCP also
seeks to identify commercial partners from the UK for relevant projects;
Written approval that the proposed project is supported by the and the Closed Nuclear City's Administration.
When reviewing requests for project funding, the CNCP Steering Group
emphasizes the need to study the project's commercial potential to lay
a strong foundation for successful future development. Usually a project
proposal first receives funding for a market feasibility study and only
applies for full funding once that has been completed. Also important
is identifying projects where we can best ensure the sustainability of
the jobs being created for former weapons specialists being made redundant
from defence programmes.
We understand and accept how important it is that the jobs being created
be high-quality and correspond, where possible, with the expectations
of the qualified specialists for whom Rosatom is seeking to create alternative
employment. The Programme funds market research and preparation of business
plans for a number of products being proposed by scientists and technicians
from SCK (Seversk),
VNIIEF (Sarov), and
VNIITF (Snezhinsk). The business plans developed for some of these products
have already led to requests and approvals for additional CNCP Programme
funding. In addition, the business plans have been used to attract outside
investors. Western specialists have also been successfully involved in
independent evaluation of technologies from a number of the Closed Nuclear
Cities, which have been proposed for commercialisation. The proposed Russian
technologies have been reviewed and compared with similar technologies
from some of the world's leading companies and, when the outcomes of these
reviews are positive, additional funding to further develop the technology
is provided by the CNCP Programme.
At the same time, CNCP evaluates projects associated with high technology
commercialization. While these projects typically have huge potential
advantages, those advantages must be weighed against the often high cost
of start-up capital and risk. Therefore, our goal is to develop a diversified
portfolio for the Programme as a whole, where projects are distributed
over a balanced scale [lower cost, more jobs and lower risk] > [higher
cost, less jobs, higher risk]. We balance the risks of high technology
projects with less risky projects, such as those connected with the extension
of existing production. This allows a portfolio to be developed that has
an acceptable balance of risk/reward and allows the Programme as a whole
to achieve its objectives. The CNCP Programme has already supported a
number of projects proposed by small and medium size private enterprises
in Ozersk, Snezhinsk,
Sarov, Seversk,
Zheleznogorsk, Novouralsk.
The projects are considered in two stages. First the Closed City applicant
fills in the outline proposal and presents basic information about the
project. After a preliminary evaluation and approval of the project proposal
made by an appointed project supervisor (usually a Western expert), and
the coordinator of the "Nuclear Cities" programmes from Rosatom, the outline
proposal is presented for consideration to the Steering Committee in London.
If approved, the applicant has then to prepare a full proposal. Submission
of a market study report and a business plan alongside the proposal is
often a necessary condition. At this first stage, the Programme may allocate
a small grant for market research and business planning to support the
further development of the project concept. An outside expert or a company
interested in assessing the technical and market potential of the project
may also be invited at this stage. During this process, the applicant
keeps in regular contact with the project supervisor and representatives
from Moscow office of HTSPE Ltd. If a full proposal is
approved by the Steering Group in the second stage, the project is fully
funded. The applicant may have to fulfil certain conditions.
The contract for implementation of the project can be signed either through
CNCP's partnership with the ISTC or on the basis of a contract between
HTSPE Ltd. and the executor of the project. The first variant
is used more often for the projects implemented by Rosatom enterprises.
The second is usually used for the small and medium size business projects
supported by the Closed City Administrations. Project monitoring and auditing
is undertaken throughout each stage of the project's implementation and
for several years after completion.
For more information about CNCP grant aid projects please contact Alexander
Tsibulya, Deputy Head of HTSPE Ltd. Moscow Office alexts@cncp.ru.
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