Program of rehabilitation, modernization and optimization of the water supply systems operated "Yugvodokanal" as part of the concession agreement entered into in respect of water and sanitation sector of Krasnodar region
|The amount of funding ||
3.414 billion rubles. (2018)
|Terms for realization ||
|Contract form ||
public-private partnership (concession)
Since the year of 2008 OJSC "Evraziyskiy" together with its subsidiary "Yugvodokanal" has been working on implementing a large-scale investment program in the Krasnodar region, which became the basis of a concession agreement signed in 2010 with the regional administration. This program of rehabilitation, modernization and optimization of water and sanitation sector a number of cities of the Azov-Black Sea coast is aimed at significant improving for the quality and stability of service provision of drinking water. The relevance of the project is due to the fact that the degree of deterioration of municipal water and wastewater infrastructure in the region is more than 70%, and the sources for large-scale investments in the budget of the region and municipalities do not exist. Implementation of the project with the involvement of the private investor will update the fixed assets, as well as to solve the problems of centralized water supply for more than one million people (about one-fifth of the population of the region).
The Project was initiated by the administration of Krasnodar region that has entered into the concession period of 30 years signing the contract with “Yugvodokanal”. Under the terms of the concession agreement "Yugvodokanal" Co Ltd is to perform safety upgrades and reconstruction of the largest water points Krasnodar region. Within the terms of the concession the objects include four groups water mains in Kuban area, and they are Tamanskiy, Troitskiy, and Eiskiy and Arkhipo-Osipovskiy water main conduits.
The concession agreement provides for the implementation of an investment program in two phases: from 2011 to 2018., and from 2019 to 2040. The amount of funding for the first phase of the project is 3.4 billion rubles. The size of capital investment by the concessionaire will be more than 2.118 billion rubles. The major part will be provided from the credit funds. It is assumed that the implementation of some activities will be brought low, and other sources in the amount of about 1.3 billion rubles. In the second stage the investment by "Yugvodokanal" Co Ltd will be included in the medium-term (within five-year period) of production or investment programs.
The financing scheme for the complex program of rehabilitation, modernization and optimization of the water supply systems operated by "Yugvodokanal" Co Ltd as part of the concession agreement on water and sanitation sector of Krasnodar region
In 2011 for the concession obligations to the project up to 30.9 million rubles were delivered.
To attract credit resources and to promote clear accountability "Evraziyskiy" prepared the procedure of te reorganization within "Yugvodokanal" in which in 2011 the subsidiary LLC "UVK -Krymsk» and «UVK-Novorossiysk " were allocated.. For thw year of 2012 an allocation of the branch "SochiVodokanal." is scheduled.
Up-to date within the program guidelines the main efforts are directed towards the development of construction documents, as well as external financing and contractors. A great number of measures are scheduled including:
- implementation of technical, financial, social and environmental assessment of the project with the assistance of international experts has done;
- negotiations on a syndicated loan Vnesheconombank and the EBRD have been carried;
- a competition to select a developer's for the duration of the concession agreement has been held.
In 2011 a number of measures were carried out to improve the water supply in Novorossiysk and Gelendzhik areas, including:
- the cutting and putting into operation through the siphon Afipsky canal have been carried, as well as the water well has been constructed and the transfer to the remote control within 25 artesian wells done;
- a new pump unit on the second lift station, located in the main treatment plant in Oktyabrsky settlement was implemented, thus it will allow reducing energy consumption and operating costs of the company within several times;
- replacement of metal water pipe networks into plastic for distributing water in Oktyabrsky settlement at Eisk done;
- the recutting for 2500 meters of pipe with a diameter of 1000 mm at the water main in the area Oktyabrsky at Leningradskiy District near Starominskaya Stanitsa made.
It is scheduled to invest about 600.0 million rubles in 2012 for the fulfillment of the obligations under the programme.