WSU reform model

The model for transforming the Vodokanal municipal unitary enterprises proposed by Rosvodokanal is based on the best international practices, with time-proven solutions used.

Rosvodokanal proposes a model whereby the municipal corporation remains the owner of the water-supply and sewerage assets, with a private operator contracted to manage, modernize and upgrade the assets under a concession agreement.

Rosvodokanal's activities are to be conducted in two stages:

Stage 1.

Execution of a contract for a short-term (under 1 year) lease on the assets of municipal water and sewage utilities.

Within its term, the Contract provides for:

• cataloguing, registration and tagging of municipal WSU assets;
• development and implementation of a Work Programme aimed at the liquidation of bottlenecks in the process flow of provision of services of water supply and wastewater disposal;
• development and implementation of a hydraulic model of process flow, to enable optimization of the water-supply system;
• implementation of a cost-saving programme based on low-cost technologies;
• development of a long–term Investment Programme aimed at improving the quality of services provided and the performance of Vodokanal's activities.

Stage 2.

Execution of a Concession Agreement for a term of 15-49 years to manage the municipal WSU assets, to implement a long-term Investment Programme to modernize and upgrade water-supply and wastewater-disposal systems.

Within its term, the agreement provides for:

• attraction of long-term investment;
• implementation of the long–term Investment Programme aimed at improving the quality of services provided and the performance of Vodokanal's actitivities.