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New Social Projects
 
In early 2006, Khanty-Mansi Autonomous Okrug Government and SPD signed a Cooperation Agreement for 2006-2008 in Khanty-Mansiysk. Pursuant to this Agreement, SPD’s investment to realization of community projects and sponsorship in the region will total $7 million during 2006-2008.

New major community projects planned by SPD include purchase of equipment for local hospital and other community infrastructure facilities in the Salym village, and share participation in the rehabilitation of the Geology, Oil and Gas Museum in Khanty-Mansiysk.

In 2006 SPD launched a new educational project in Salym. The Company will finance grants for graduates of Salym high schools to pay for the tuition at higher educational establishments in the Urals Federal District. The grants will be awarded on a competitive basis. Yet another project, again on a competitive basis, for extending microcredits in support of small businesses in the Salym village, is also contemplated.

The social performance of the Company does not pass unnoticed. In 2005, in its first appearance at the Black Gold of Yugra, an annual contest held between the oil production companies of the okrug, SPD won the award in the category For Social and Economic Partnership. SPD intends to keep up the effort and be always open to society, and responsive to the needs and problems of the region where it operates.

By definition, social investment requires openness and dialogue with the authorities and society at large, at all levels. SPD maintains close contact and partner relations with the district and okrug authorities, and engages the local community in the dialogue. A public committee has been in existence since 2003, which includes people from SPD, the local authorities and community. At its meetings held every two months, the committee discusses the progress of SPD’s social projects in Salym.

 
The company wants to better know the opinion of the local residents as it chooses new targets for its social investment. At the end of each year, SPD holds a contest, where organisations in Salym and nearby settlements can propose investment projects, on a competitive basis. The proposals must satisfy the prerequisites set by SPD in their Social Investment guideline. SPD, together with the public committee, evaluate the proposals and make the financing decision. This approach helps to improve the knowledge of the demand for social investments.


Prerequisites from SPD’s Social Investments guideline:
· NO one-off grants to any individual
· NO payments or other services to any organisation for political purposes
· NO payments to religious organisations
· NO social investments that benefit only one, or a few, ethnic groups in an ethnically divided community
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