Blagoveshchensk Municipal Utility complex (electricity, water, heating)

active

Prospective

The municipality of Blagoveshchensk, through a direct negotiation, granted an 11 month extendable lease contract for the city’s water and wastewater utility (Vodokanal) and heating utility (Gorteploset) to Amur Utility Systems (AKS), the newly created subsidiary of Russian Utility Systems (RKS), in August 2003. Following water and heating utilities, electricity utility (Gorelectroset) was leased to the AKS under the same contract as well. The AKS began operations in all three sectors in August 2003 and was operational as of 2007. Electricity distribution accounted for 29% of activity of AKS, water and wastewater for 13 %, heating for 55%, and other activities for 3% in 2006. AKS was expected to serve some 223,700 people in the city of Blagoveshchensk, the capital of the Amurskaya Oblast (Amur Province). The city major and AKS signed “municipal request for investment and rehabilitation” agreement on July 29 2004, for the development of municipal electricity, water, and heating infrastructure in the city of Blagoveshensk. 2 days earlier, on July 27, AKS won the contest to get such an agreement by proposing its investment plan amounting to 31 million $US (900 million rubels) for 15 years. AKS was one of the 4 contestants. In 2004, the RKS was ready to invest about 6 million $US (173 millions rubels) into urgent municipal infrastructure issues in the city of Blagoveshensk: about 3 millions $US (90 million rubels) for water and sanitation, 1.7 millions $US (50 million rubels) for heating, more than 343 thousand $US (10 million rubels) on electricity, and more than 760 thousand $US (22 million rubels) on other needs. RKS was created on May 29, 2003 by RAO Unified Energy Systems (25%), GazpromBank (25%), Interros (10%), Kuzbassrazrezugol (10%), Renova (10%), EvrazHolding (10%), and Evrofinans (10%). By the end of 2005 privately held company Integrated Energy Systems (KES) had purchased a 50% stake in RKS, while RAO UES held on to its 25% share. As of 2007, Integrated Energy Systems (KES) held 75% of RKS, with RAO UES holding 25%. As of 2007 RKS was present in 13 regions within Russia: Altai and Perm Territories; Amur, Bryansk, Vladimir, Kirov, Rostov, Sverdlovsk, Tambov, Tver and Tomsk regions; and Republics of Karelia and Udmurtia. The company provided comprehensive power, gas, water and heat supply services. In May 2008, through a public auction, RAO UES sold its 25% stake in the RKS to Indville Management Ltd., an affiliate of IES-Holding, thus giving Integrated Energy Systems a 100% stake in the company. http://www.amurcomsys.ru/ http://www.roscomsys.ru/

Energy

World Bank Group

Project

Water Supply and Storage, Hydro, Power Generation (CCGT), Government, Power Transmission