2005 - 2006 - Pinsent Masons Water Yearbook 2012

THE RUSSIAN FEDERATION PART 2: COUNTRY ANALYSIS
Freshwater
Annual availability (1998) 4,312.7km³
Per capita 29,115m 3
Annual withdrawal (1994) 77.1km³
Domestic 19%
Industrial 62%
Agriculture 20%
Financing
In 1995, revenues received from the abstraction of water were US$7.8 million per km³ of freshwater
collected, compared with expenditure on the maintenance, repair and use of networks of US$19.5
million per km³. This is equivalent to a cost recovery of 40%, and points to total spending of US$1.88
billion in 1995. Financing of measures concerning the use and protection of fresh water sources is
provided by: the federal budget (18%), the budgets of member states of the Federation (16%), local
budgets (18%), resources of enterprises (53%), environmental funds and other sources (5%).
Groundwater
Annual availability (1998) 788.0km³
Per capita 5,320m³
Privatisation prospects
Three contracts have been awarded to WTE, part of Austria’s EVN, one involving Suez. VE is
involved in the construction of a sludge treatment plant for St Petersburg worth €70 million.
At the same time, a number of Russian water utilities have been emerging. The following companies
were noted by Global Water Intelligence (August 2004, P15): JSC Russian Utility Systems (RKS) was
formally registered in May 2003 and has some 50 short-term contracts for communal services with
municipalities and regions. JSC Russian Communal Investments (RKI), a subsidiary of Bazovyi
Element, operating in Nizhnii, Novgorod Oblast and some cities of Irkutsk Oblast, Krasnoyarsk Krai
and Buriatia. Alfa Eco (Alpha) is present in Orenburg, Krasnoyarsk and Voronezh. Novogor (Russia
New Municipal Systems, part of Interros) took over the water utility of Perm.
A new private sector emerges
A survey carried out in June 2004 by the OECD, found that private water supply and sanitation
enterprises were operating in 38 municipalities in Russia, meaning that they potentially address 17.7
million people or 16.6% of the urban population. At least 15 contracts for the delegated management
of major WSS assets have already been concluded, serving 8.7 million people, or 8.2% of the urban
population. Other information (other than from a report in Global Water Intelligence in 2004) on these
activities is somewhat incomplete at present.
Company Water & sewerage activities
RUS 52 contracts in 16 regions
RKI 10 municipalities in Krasnodarskij Krai (region)
CES-Multyenergetika 45 municipalities in Perm and Sverdlovsk, and Syktyvkar (Komi Republic)
Novogor-Prikamye Perm, Berezniki
Rosvodokanal Orenburg
Syzranvodokanal Syzran Municipality and Syzran district
Russian Utility Systems (RUS) was set up by RAO, UES and Gazprom in 2003. In the spring of
2004, Gazprom sold its shares to an undisclosed buyer and in June 2005, CJSC Integrated Energy
Systems (IES, Russia) acquired 35% of RUS. IES is primarily interested in power generation and
energy services and has no other water interests. RUS has 52 short term lease type contracts in 16
regions for water, communal heating, gas and electricity supply, serving 4.5 million people. Revenues
for the year ending 31 st June 2004 were R14 billion (US$480 million). Six water contracts have been
signed to date: Blagoveshchensk (Amur Utility Systems, 214,000 people); Volgograd (Volgograd Utility
Systems, 780,000 people); Kirov (Kirov Utility Systems, 15 year lease, US$20 million capex, 465,000
people); Kachkanar (Sverdlovsk Utility Systems); Tambov (Tambov Utility Systems, 292,000 people)
and; Tomsk (Tomsk Utility Systems, 480,000 people).
170 Pinsent Masons Water Yearbook 2005 – 2006