Private sector participation in the water and wastewater services industry

Definitions and models of control in water supply and sanitation industry. Concession model of control sanitation industry in international practice. Condition of networks and evolution of model. Research limitations and future research directions.

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37. Official website of LLC Novogor-Prikamye (Original: Официальный сайт ООО "Новогор-Прикамье"). [Online] Available through: http://www.novogor.perm.ru/index/0-71 (Accessed 10 April 2015).

38. Orlova E. O. (2010) Mechanism of investment interaction between business-structures and local authorities. E. O. Orlova, P. M. Sovetov. - Vologda. (Original: Механизм инвестиционного взаимодействия бизнес-структур и местного самоуправления. Э.О. Орлова, П.М. Советов. - Вологда: ИСЭРТ РАН.)

39. Perm city Administration decree "On concession agreement with limited liability company "Prikamye's new urban infrastructure" in relation to Perm's municipal property" № 96-P from 13.12.2012. SPS Consultant Plus. (Original: Постановление Администрации г. Перми "О заключении концессионного соглашения с обществом с ограниченной ответственностью "Новая городская инфраструктура Прикамья" в отношении муниципального имущества города Перми" № 96-П от 13.12.2012. СПС Консультант Плюс.)

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42. Private Sector Participation in Municipal Water Services in Central and Eastern Europe and Central Asia. OECD and World Bank, Conference WriteUp, April 10-11, Paris, 2002. [Online]. Available through: http://www.oecd.org/env/outreach/1942161.pdf (Accessed 09 August 2015).

43. Project "Clean Water". Government program of Ministry of economic development on 2009-2017 years. Official website of Ministry of economic development. (Original: Проект "Чистая вода". Государственная программа Министерства экономического развития на 2009-2017 годы. Официальный сайт Министерства экономического развития.) [Online]. Available through: http://www.economy.gov.ru/minec/main (Accessed 30 April 2015).

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45. Results of first stage (2004-2012) implementation of investment project "Complex program of water supply and sanitation facilities' building and reconstruction in Rostov-on-Don and south-west of Rostov region", Rostov-on-Don (Original: Итоги реализации первого этапа (2004-2012 гг.) комплексного инвестиционного проекта "Комплексная программа строительства и реконструкции объектов водоснабжения и водоотведения города Ростова-на-Дону и юго-запада Ростовской области", Ростов-на-Дону), 2013. [Online] Available through: http://www.evraziyskiy.ru/filedbdata/13654099218580/kompleksnayaprogramma2012.pdf (Accessed 21 April 2015).

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47. Sohail M., Cavill S. (2009) Public-private partnerships in the water and sanitation sector. Water Management, 163 Issue WM4. pp. 261-267.

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49. Svistunov N. (2004) Concessions - instrument of international investment projects' stirring up in Russia. Problems of theories and practice management. (Original: Концессии - инструмент активизации международных инвестиционных проектов в России. Проблемы теории и практики управления.) - № 3. pp. 75-80.

50. Tyrtyshov Y. P. (2003) Privatization of communal services. Foreign experience. LLC "Publisher "Limbus Press", - St Petersburg. (Original: Приватизация коммунальных служб. Зарубежный опыт. ООО "Издательство "Лимбус Пресс", - СПб.)

51. Varnavskiy V. G. (2004) Public-private partnership as a privatization alternative in infrastructure sector. (Original: Государственно-частное партнерство как альтернатива приватизации в инфраструктурном комплексе. ПТПУ.) № 2. pp. 47-52.

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  • Appendix 1. Capital investments' estimation in economic activity "water collection, purification and distribution" by regions in 2003-2013
    • Table 1
    • Capital investments, thousands of roubles
    • 2003

      2004

      2005

      2006

      2007

      2008

      2009

      2010

      2011

      2012

      2013

      St Petersburg

      2 805 746

      4 299 674

      9 198 692

      7 249 449

      6 535 375

      8 481 949

      6 989 175

      7 288 042

      6 976 295

      8 280 060

      11 535 976

      Tatarstan

      192 379

      425 870

      324 847

      816 918

      542 410

      2 231 307

      409 262

      769 680

      966 547

      1 163 509

      988 742

      Sverdlovsk region

      84 668

      133 604

      78 504

      135 521

      1 299 217

      2 117 485

      1 669 262

      2 779 501

      1 423 040

      1 749 300

      1 505 062

      Perm region

      84 148

      69 238

      71 315

      174 569

      321 418

      327 285

      532 034

      496 849

      740 715

      409 545

      349 887

      Rostov-on-Don region

      228 095

      164 104

      756 171

      602 108

      862 402

      683 124

      1 035 420

      1 156 205

      757 212

      1 163 016

      856 446

      Krasnodar region

      307 899

      366 605

      124 074

      95 177

      256 773

      608 625

      377 925

      432 543

      682 952

      910 308

      1 144 152

      Russia (average)

      136 910

      155 400

      239 023

      276 177

      384 702

      544 674

      472 144

      550 355

      509 305

      554 861

      601 950

      • Table 2
        • Population, thousands of people
        • 2003

          2004

          2005

          2006

          2007

          2008

          2009

          2010

          2011

          2012

          2013

          St Petersburg

          4 656

          4 624

          4 600

          4 580

          4 571

          4 568

          4 581

          4 740

          4 899

          4 953

          5 028

          Tatarstan

          3 777

          3 772

          3 768

          3 761

          3 760

          3 762

          3 768

          3 784

          3 787

          3 803

          3 822

          Sverdlovsk region

          4 477

          4 448

          4 428

          4 409

          4 399

          4 395

          4 394

          4 308

          4 297

          4 307

          4 315

          Perm region

          2 813

          2 791

          2 769

          2 748

          2 730

          2 718

          2 708

          2 648

          2 633

          2 631

          2 634

          Rostov-on-Don region

          4 396

          4 365

          4 334

          4 303

          4 275

          4 254

          4 241

          4 284

          4 275

          4 260

          4 254

          Krasnodar region

          5 119

          5 106

          5 100

          5 096

          5 101

          5 121

          5 141

          5 214

          5 230

          5 284

          5 330

          Russia (average)

          1 746

          1 738

          1 732

          1 725

          1 720

          1 720

          1 719

          1 721

          1 721

          1 722

          1 726

          • Table 3
            • Capital investments per capita, roubles
            • 2003

              2004

              2005

              2006

              2007

              2008

              2009

              2010

              2011

              2012

              2013

              St Petersburg

              603

              930

              2 000

              1 583

              1 430

              1 857

              1 525

              1 537

              1 424

              1 672

              2 294

              Tatarstan

              51

              113

              86

              217

              144

              593

              109

              203

              255

              306

              259

              Sverdlovsk region

              19

              30

              18

              31

              295

              482

              380

              645

              331

              406

              349

              Perm region

              30

              25

              26

              64

              118

              120

              196

              188

              281

              156

              133

              Rostov-on-Don region

              52

              38

              174

              140

              202

              161

              244

              270

              177

              273

              201

              Krasnodar region

              60

              72

              24

              19

              50

              119

              73

              83

              131

              172

              215

              Russia (average)

              78

              89

              138

              160

              224

              317

              275

              320

              296

              322

              349

              • Appendix 2. Conditions of concession agreements in Perm and other cities
                • Criterion

                  Sydney

                  Buenos-Aires

                  Abidjan

                  Sofia

                  Brno

                  Bucharest

                  Lugansk

                  Almaty

                  Guinea

                  Perm

                  Involvement of international companies

                  N.A.

                  yes

                  N.A.

                  yes

                  yes

                  yes

                  no

                  no

                  N.A.

                  no

                  Contract term

                  25 years

                  30 years

                  20 years

                  25 years

                  25 years

                  N.A.

                  N.A.

                  N.A.

                  10 years

                  49 years

                  Influence on tariffs

                  N.A.

                  yes

                  yes

                  yes

                  yes

                  yes

                  yes

                  N.A.

                  yes

                  no

                  Competition

                  yes

                  yes

                  yes

                  yes

                  yes

                  yes

                  no

                  N.A.

                  yes

                  no

                  Concessionaire

                  Suez

                  Suez

                  SODECI

                  Sofia's Water

                  BWK

                  Apa Nova

                  Lugansk Water

                  "J.V."

                  SEEG

                  Novogor-Prikamye

                  Share of local authorities

                  0%

                  0%

                  3%

                  23%

                  51%

                  16%

                  0%

                  48%

                  49%

                  0%

                  Share of private investor

                  100%

                  100%

                  97% (SAUR)

                  77% (Veolia Water)

                  49% (Suez)

                  84% (Veolia Water)

                  100%

                  52% (Veolia Water)

                  51%

                  100%

                  Investments

                  Aus $200 million

                  $1,05 billion annually

                  N.A.

                  €31 million

                  €61,7 million

                  $1 billion

                  500 million of hryvnias

                  $100 million

                  N.A.

                  ?18,9 billion

                  Result

                  +

                  +

                  +

                  +/-

                  +

                  +

                  -

                  -

                  +/-

                  ?

                  • Appendix 3. Main financial indicators of LLC Novogor-Prikamye's activity
                    • Table 1
                    • Balance sheet (2003-2013), thousands of roubles
                    • 2003

                      2004

                      2005

                      2006

                      2007

                      2008

                      2009

                      2010

                      2011

                      2012

                      2013

                      Assets

                      I. Non-current assets

                      20 953

                      41 241

                      96 721

                      250 680

                      314 322

                      554 110

                      1 061 578

                      1 266 521

                      1 681 961

                      1 949 045

                      5 032 490

                      including fixed assets

                      146

                      19 850

                      51 279

                      183 800

                      238 131

                      328 778

                      459 043

                      845 423

                      1 533 981

                      1 634 220

                      4 702 058

                      II. Current assets

                      122 504

                      227 721

                      550 608

                      693 572

                      1 100 937

                      1 504 768

                      1 621 290

                      2 009 681

                      2 446 876

                      2 971 523

                      2 943 069

                      including receivables

                      38 841

                      96 039

                      258 213

                      522 486

                      909 129

                      1 151 728

                      1 219 257

                      1 521 331

                      1 921 418

                      2 315 528

                      2 115 769

                      Liabilities

                      III. Equity

                      24 659

                      88 547

                      243 689

                      277 450

                      528 688

                      855 892

                      1 080 507

                      1 230 310

                      1 398 051

                      1 489 786

                      1 678 914

                      including retained income

                      24 647

                      88 535

                      243 677

                      277 438

                      528 676

                      643 328

                      851 584

                      1 000 310

                      1 168 051

                      1 259 786

                      1 448 914

                      IV. Long term liabilities

                      38

                      0

                      0

                      192 437

                      170 675

                      56 244

                      73 813

                      319 026

                      70 806

                      320 783

                      4 899 639

                      including debt

                      0

                      0

                      0

                      190 215

                      165 141

                      0

                      0

                      258 295

                      0

                      222 096

                      1 753 725

                      V. Short term liabilities

                      118 760

                      180 415

                      403 640

                      474 365

                      715 896

                      1 146 742

                      1 528 547

                      1 726 866

                      2 659 981

                      3 109 999

                      1 397 007

                      including debt

                      2 377

                      10 331

                      67 643

                      30 025

                      118 364

                      253 010

                      378 885

                      419 713

                      1 183 288

                      1 448 252

                      105 916

                      including payables

                      116 383

                      169 960

                      296 690

                      444 185

                      586 607

                      799 694

                      1 060 140

                      1 203 989

                      1 296 486

                      1 467 138

                      1 084 627

                      Balance

                      143 457

                      268 962

                      647 329

                      944 252

                      1 415 259

                      2 058 878

                      2 682 868

                      3 276 202

                      4 128 838

                      4 920 568

                      7 975 560

                      • Table 2
                        • Income statement (2003-2013), thousands of roubles
                        • 2003

                          2004

                          2005

                          2006

                          2007

                          2008

                          2009

                          2010

                          2011

                          2012

                          2013

                          Sales

                          88 329

                          1 068 240

                          1 272 619

                          2 612 564

                          3 051 145

                          3 385 897

                          3 704 867

                          4 203 041

                          4 685 244

                          4 913 367

                          4 381 579

                          Costs of goods sold

                          47 410

                          776 523

                          920 872

                          2 013 576

                          2 348 055

                          2 472 341

                          2 940 075

                          3 395 151

                          3 814 420

                          4 374 146

                          3 972 268

                          Gross profit (loss)

                          40 919

                          291 717

                          351 747

                          598 988

                          703 090

                          913 556

                          764 792

                          807 890

                          870 824

                          539 221

                          409 311

                          Commercial expenses

                          7 640

                          104 476

                          162 614

                          261 058

                          340 147

                          484 842

                          530 339

                          553 221

                          554 750

                          0

                          0

                          Earnings (losses) before interests and taxes

                          33 279

                          187 241

                          189 133

                          337 930

                          362 943

                          428 714

                          234 453

                          254 669

                          316 074

                          539 221

                          409 311

                          Interests to receive

                          0

                          1 808

                          7 072

                          10 315

                          20 376

                          5 844

                          578

                          327

                          11 194

                          9 812

                          25 888

                          Interests to pay

                          21

                          226

                          1 245

                          13 692

                          38 388

                          23 128

                          45 780

                          49 614

                          40 619

                          114 246

                          164 638

                          Other income

                          15

                          149 901

                          291 800

                          399 683

                          386 687

                          681 919

                          749 338

                          241 716

                          361 121

                          80 761

                          225 676

                          Other expenses

                          445

                          248 821

                          293 160

                          520 823

                          399 811

                          674 819

                          683 036

                          299 778

                          418 160

                          174 907

                          266 174

                          Earnings (losses) before taxes

                          32 828

                          89 903

                          193 600

                          213 413

                          331 807

                          423 088

                          255 554

                          148 060

                          229 610

                          340 641

                          230 063

                          Taxes paid

                          8 141

                          25 956

                          49 494

                          44 950

                          82 667

                          45 173

                          13 572

                          11 452

                          48 772

                          51 077

                          32 925

                          Net profit (loss)

                          24 649

                          63 888

                          151 680

                          159 361

                          251 238

                          327 204

                          212 305

                          150 152

                          169 842

                          261 577

                          189 127

                          • Appendix 4. Data used for a comparative analysis of financial indicators of LLC Novogor-Prikamye and other companies
                            • Table 1
                            • Financial indicators of companies (2010-2013)
                            • Veolia Water (millions of euro)

                              Ekaterinburg (thousands of roubles)

                              2010

                              2011

                              2012

                              2013

                              2010

                              2011

                              2012

                              Assets

                              51 511

                              41 067

                              38 477

                              36 242

                              12 059 672

                              13 703 681

                              15 210 342

                              Equity

                              10 895

                              8 540

                              8 498

                              9 683

                              6 135 669

                              7 099 747

                              8 337 403

                              Long term liabilities

                              22 507

                              17 629

                              15 121

                              12 140

                              4 507 366

                              4 890 054

                              4 887 410

                              Short term liabilities

                              18 110

                              14 898

                              14 858

                              14 419

                              1 416 638

                              1 713 880

                              1 985 528

                              Sales

                              34 787

                              22 482

                              23 239

                              22 315

                              4 126 606

                              4 706 214

                              5 178 416

                              Profit on sales

                              2 120

                              572

                              711

                              491

                              1 344 485

                              1 446 591

                              1 679 162

                              Net profit

                              872

                              -488

                              404

                              -135

                              985 257

                              919 130

                              832 504

                              Rostov-on-Don (thousands of roubles)

                              St Petersburg (thousands of roubles)

                              2010

                              2011

                              2012

                              2013

                              2010

                              2011

                              2012

                              Assets

                              5 502 842

                              6 095 053

                              7 068 569

                              7 577 994

                              127 685 809

                              155 176 602

                              175 880 233

                              Equity

                              1 718 658

                              1 597 024

                              1 615 391

                              1 690 172

                              110 325 956

                              137 677 360

                              152 804 118

                              Long term liabilities

                              3 024 356

                              3 897 470

                              4 873 243

                              4 375 705

                              8 661 023

                              7 538 918

                              10 040 384

                              Short term liabilities

                              759 828

                              600 559

                              579 935

                              1 512 117

                              8 698 830

                              9 960 324

                              13 035 731

                              Sales

                              3 551 741

                              3 843 688

                              3 877 037

                              4 234 983

                              20 059 571

                              22 797 415

                              23 649 007

                              Profit on sales

                              695 922

                              627 439

                              730 188

                              860 022

                              2 365 558

                              2 944 168

                              4 102 656

                              Net profit

                              170 221

                              63 168

                              52 367

                              74 781

                              378 973

                              403 784

                              1 073 604

                              • Table 2
                                • Financial analysis results (2010-2013)
                                • Russia

                                  Veolia Water

                                  Ekaterinburg

                                  Indicator

                                  2010

                                  2011

                                  2012

                                  2013

                                  2010

                                  2011

                                  2012

                                  2013

                                  2010

                                  2011

                                  2012

                                  Return on sales

                                  8,0%

                                  7,3%

                                  6,0%

                                  4,7%

                                  6,1%

                                  2,5%

                                  3,1%

                                  2,2%

                                  32,6%

                                  30,7%

                                  32,4%

                                  Return on equity

                                  3,6%

                                  2,6%

                                  2,0%

                                  0,7%

                                  8,0%

                                  -5,7%

                                  4,8%

                                  -1,4%

                                  16,1%

                                  12,9%

                                  10,0%

                                  Return on assets

                                  2,6%

                                  1,9%

                                  1,5%

                                  0,5%

                                  4,1%

                                  1,4%

                                  1,8%

                                  1,4%

                                  11,1%

                                  10,6%

                                  11,0%

                                  Debt to equity proportion

                                  0,38

                                  0,36

                                  0,37

                                  0,38

                                  3,73

                                  3,81

                                  3,53

                                  2,74

                                  0,97

                                  0,93

                                  0,82

                                  Long term liabilities to equity proportion

                                  14,9%

                                  14,4%

                                  14,5%

                                  15,7%

                                  43,7%

                                  42,9%

                                  39,3%

                                  33,5%

                                  37,4%

                                  35,7%

                                  32,1%

                                  Rostov-on-Don

                                  St Petersburg

                                  2010

                                  2011

                                  2012

                                  2013

                                  2010

                                  2011

                                  2012

                                  Return on sales

                                  19,6%

                                  16,3%

                                  18,8%

                                  20,3%

                                  11,8%

                                  12,9%

                                  17,3%

                                  Return on equity

                                  9,9%

                                  4,0%

                                  3,2%

                                  4,4%

                                  0,3%

                                  0,3%

                                  0,7%

                                  Return on assets

                                  12,6%

                                  10,3%

                                  10,3%

                                  11,3%

                                  1,9%

                                  1,9%

                                  2,3%

                                  Debt to equity proportion

                                  2,20

                                  2,82

                                  3,38

                                  3,48

                                  0,16

                                  0,13

                                  0,15

                                  Long term liabilities to equity proportion

                                  55,0%

                                  63,9%

                                  68,9%

                                  57,7%

                                  6,8%

                                  4,9%

                                  5,7%

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