Investment policy

Rosvodokanal's investment policy is aimed at taking the services of water supply wastewater disposal to a whole new level by raising funds for the modernization and upgrading of the infrastructure of water and sewage utilities.

Rosvodokanal's investment programmes are based on the current tariffs and their adjustment forecasts. The dynamics of tariff change determines the investment payback period, which ranges from 15 to 25 years in the case of capital-intensive investment projects.

The sources of investment repayment are the water treatment plants’ tariff-generated income and the allocations from regional and municipal budgets.

The investment policy has three main thrusts:

1. Optimization of the existing water-supply and wastewater-disposal system under projects with short payback periods (up to 1 year) using low-cost technologies. Such projects include, without being limited to:

   • development and implementation of hydraulic models of process flows;
   • identification and liquidation of bottlenecks in the process flows of water-supply and wastewater-disposal services;
   • cost saving.
2. Implementation of long-term investment projects:
   • Modernization of infrastructure of water and sewage utilities;
     The modernization of infrastructure involves replacement of networks, pumping and other equipment, with new technology and materials used. This makes it possible to significantly reduce the costs of maintaining networks and equipment, electric power, etc.
     According to expert estimates, the cost of WSU infrastructure modernization in the city with a population of 1 mln is about $200 mln, with payback time of 15 to 25 years.
   • Infrastructure development in sync with urban development plans.
     Infrastructure development programmes provide for the engineering of new water-intakes, treatment facilities, networks, pumping stations, etc., which are necessary for construction site preparation as part of implementation of projects to develop new housing, industrial facilities and other properties.
3. Implementation of socially important projects, with no payback possible for a number of reasons. Such projects are financed using water treatment plants’ own funds or budget sources