BOOK
Municipal Water and Wastewater Services Reform in the Russian Federation
Sergey Ivanov | Sergey Sivaev | Ella Shalukhina
(2007)
Additional Information
Book Details
Abstract
Russia is going through a complicated period of transforming its economy with a focus on the expansion of private sector activity. This includes reforms in the field of municipal water supply and wastewater disposal. This report presents an analysis of the condition of the municipal water supply and wastewater systems in Russia in the early part of the 21st Century and tries to provide answers to the eternal questions: what are the causes of problems faced and what needs to be done to solve them? The objectives of the reform of Russia's Vodokanals are described, along with the regulatory framework governing the sector, including the way tariffs are regulated. The current condition of water and wastewater infrastructure is assessed. The most prominent examples of private sector involvement to date are examined. The report concludes with a short-range forecase of developments.
The report will be of interest to those wanting to understand the transformation processes taking place in Russia in the field of municipal water supply and wastewater disposal. It will also be of value to potential investors who are looking to take advantage of the favourable investment climate created recently in the country and who are considering possible long-term investment in the management, reconstruction and development of municipal water-related infrastructure.
Table of Contents
| Section Title | Page | Action | Price |
|---|---|---|---|
| Contents | 4 | ||
| List of abbreviations: | 6 | ||
| List of Figures: | 7 | ||
| List of Tables: | 7 | ||
| 1.Introduction | 8 | ||
| 1.1 Preamble | 8 | ||
| 1.2 About the authors | 8 | ||
| 1.3 General information about the Russian Federation | 8 | ||
| 1.3.1 Geographic location, territory and population | 8 | ||
| 1.3.2 Fresh water resources | 9 | ||
| 1.3.3 Constitutional formation and territorial administrative system | 9 | ||
| 1.3.4 Demographic structure | 9 | ||
| 1.3.5 Timeline of the main social and economic indices in Russia from 2000 to 2004 | 10 | ||
| 2.Institutional issues | 12 | ||
| 2.1 Background | 12 | ||
| 2.2 Objectives of Vodokanal reform | 12 | ||
| 2.2.1 Objectives at federal level | 12 | ||
| 2.2.2 Objectives at Vodokanal level | 12 | ||
| 2.2.3 Issues to be solved in the reform process | 13 | ||
| 2.3 Ownership and relationships between Vodokanals and their stakeholders | 16 | ||
| 2.3.1 General information | 16 | ||
| 2.3.2 Title to assets of municipal water supply and wastewater disposal systems | 16 | ||
| 2.3.3 Separation of ownership and operational responsibility with regard to water supply and wastewater networks | 16 | ||
| 2.3.4 Definitions of a consumer, subconsumer, contractor and user | 17 | ||
| 2.3.5 Regulation of technical, legal, financial and economic activities of a Vodokanal | 18 | ||
| 2.3.6 Other control measures | 23 | ||
| 2.4 Tariff regulation principles and procedures | 24 | ||
| 2.4.1 Analysis of current legislation | 24 | ||
| 2.4.2 Main definitions used in tariff regulation | 24 | ||
| 2.4.3 General principles of tariff regulation | 26 | ||
| 2.4.4 Powers of the RF Government in the field of tariff and surcharge regulation for water supply and wastewater disposal services | 26 | ||
| 2.4.5 The procedure for determining the operating environment of public utilities, whose modification impacts on the costs of their goods and services | 27 | ||
| 2.4.6 Methods of tariff regul | 27 | ||
| 2.4.7 Tariff regulation procedures | 27 | ||
| 2.4.8 Procedure for review and approval of the investment programme, surcharges to tariffs and connection charges | 28 | ||
| 2.4.9 Validity period of tariffs and surcharges | 29 | ||
| 2.4.10 Pre-schedule review of tariffs and surcharges | 29 | ||
| 3. Analysis of the municipal water supply and sewerage systems in Russia and the policy of the Russian government on their reconstruction | 32 | ||
| 3.1 General information | 32 | ||
| 3.2 Engineering performance condition of the municipal water supply and sewerage systems in Russia | 32 | ||
| 3.2.1 Water intakes, waterworks and wastewater treatment facilities and pumping stations | 32 | ||
| 3.2.2 Water supply and sewerage networks | 33 | ||
| 3.2.3 Water losses and incident rates | 35 | ||
| 3.3 Economic indices of the water supply and wastewater sector in Russia | 37 | ||
| 3.3.1 Volume of services rendered to consumers | 37 | ||
| 3.3.2 Cost of services rendered to consumers | 37 | ||
| 3.3.3 Time history of average tariffs for water supply and sewerage services | 38 | ||
| 3.3.4 Fixed asset costs of municipal water supply and sewerage systems in the RF | 38 | ||
| 3.3.5 Personnel | 39 | ||
| 3.4 Housing programme | 39 | ||
| 4. Private sector participation in management of the water supply and wastewater disposal systems | 44 | ||
| 4.1 General information | 44 | ||
| 4.2 Obstacles in the way of private sector participation | 45 | ||
| 4.2.1 General description of the problems | 45 | ||
| 4.2.2 Political risks related to the cancellation of contractual relationships and non-fulfilment of obligations by authorities | 45 | ||
| 4.2.3 The availability of unregistered property | 46 | ||
| 4.2.4 Inadequate tariff regulation | 46 | ||
| 4.2.5 Lack of long-term financing | 46 | ||
| 4.2.6 Weaknesses and imbalances in local budgets | 47 | ||
| 4.2.7 Underestimating the risk of investment cost demands | 47 | ||
| 4.2.8 Low personal income and affordability of tariffs | 47 | ||
| 4.2.9 Conclusion | 48 | ||
| 4.3 Rossijskiye kommunalnyje sistemy, OJSC (RKS) | 48 | ||
| 4.4 Evrazijskoye vodnoye partnerstvo, LLC (EVP) | 49 | ||
| 4.4.1 General information | 49 | ||
| 4.4.2 Strategy | 50 | ||
| 4.4.3 Main activities in 2004 and 2005 | 50 | ||
| 4.4.4 Project OmskVodokanal, OJSC | 50 | ||
| 4.4.5 Project Vodokanal, OJSC in Rostov-on-Don | 51 | ||
| 4.5 Novogor-Prikamye, LLC (new city infrastructure of Prikamye) | 51 | ||
| 4.5.1 General information | 51 | ||
| 4.5.2 Key performance indicators for 2 | 52 | ||
| 4.5.3 Main financial and economic indicators for 2004 | 52 | ||
| 4.5.4 Development strategy for the water supply system | 53 | ||
| 4.5.5 Investment programme | 54 | ||
| 4.5.6 Development programme for Novogor-Prikamye, LLC from 2005 to 2009 | 54 | ||
| 4.5.7 Operational principles of Novogor-Prikamye | 56 | ||
| 4.5.8 Novogor-Prikamye’s social responsibility | 57 | ||
| 4.5.9 Social reporting as a reflection of the company’s social responsibility | 58 | ||
| 4.6 Rosvodokanal, OJSC (RVK) | 58 | ||
| 4.6.1 General information | 58 | ||
| 4.6.2 Mission, vision and objective | 59 | ||
| 4.6.3 Rosvodokanal-Consulting | 59 | ||
| 4.6.4 Projects | 59 | ||
| 4.6.5 MHE reform in Orenburg | 59 | ||
| 4.6.6 Rosvodokanal suggestions for reforms to Russia’s water supply and sewerage facilities (WSSF) | 60 | ||
| 4.6.7 Financing sources for the investment programme, in which Rosvodokanal participates | 61 | ||
| 5. Perspectives on the reforms to Russia’s water supply and sewerage sector | 62 | ||
| 5.1 Assessment of the general situation | 62 | ||
| 5.2 Short-range forecast | 63 | ||
| 6. Conclusions | 64 | ||
| 6.1 Concluding remarks | 64 | ||
| Appendix 1 | 65 |