The Stavropol region and Northern Caucasus’ national republics have come up with a joint concept aiming to create the area’s own ‘Silicon Valley,’ portal Venture Business News reports.

Under plan, the program will be a private-public partnership (PPP) requiring an investment of an estimated $1.1bn. When the ‘Valley’ is launched the program developers reportedly expect annual sales of about $1.3+bn with prospective production projects’ payback periods “ranging from two to seven years.”

The ‘Valley’ project is said to focus on hi-tech production of silicon to be used in solar energy, the source said.

The regions that have signed off on the concept reportedly include the Republic of North Ossetia-Alania (planning to make photovoltaic cells), the Stavropol region (p-Si production), Kabardino-Balkaria (single-crystalline silicon), Karachaevo-Cherkessia (multicrystal silicon), and Dagestan (solar modules).

The ‘Valley’ project is assumed to cover a total area of 49 hectares and will be created “on a par investment basis from each party.”

According to Kommersant data, the program concept will be discussed with federal authorities at the very end of August; the signing of a binding agreement among the regions is scheduled for mid-September.