Authorities in the Republic of Bashkortostan and company Alrai Group Holding Limited have signed an agreement in Ufa to carry out an investment project implying use of biotechnologies of the 4-5th generation, news agency Bashinform reports citing regional authorities.

Under the agreement, the company is to build a complex to process 400,000 tons of wheat of the fourth class and other products using new biotechnologies for production of gluten, starch and biopolymers. The complex is to be located in the region’s Karmaskalinsky municipal district.

Under the project, the parties are to form an agricultural complex that is to farm up to 150,000 hectares of lands in the North-East district of the region, growing grains and potato. Besides processing the agricultural goods, the complex using its newest technologies is to use solid waste resources for growing vegetables in the closed ground.

The investment projects are reportedly to be carried out in two stages. About $505m is to be raised in 2011-2013, and $360m is to be invested in 2013-2014. A total of 1,500 local jobs are to be created under the project.

The authorities in Bashkortostan, in their turn, have agreed to provide the investor benefits package, including tax exemptions and beneficial rates for rented lands.

The parties intend to set up a project firm, with 85% shares in it to be controlled by Alrai Group. Another 15% is to be contributed by the Bashkortostan Government in the form of infrastructure facilities for water and energy supply. Under the agreement, within three years after starting using the facilities, the investor is to pay back these expenses into the regional budget through buying out shares in the JV.