Kirov Water Utility

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In November 2003 the Kirov municipality granted a short term lease contract for 11 month for the city’s water and wastewater infrastructure facilities to Russian company Kirov Utility Systems. In November 2004 the contract was extended to a 15 year lease and investment agreement. The contract was offered without a tender. The private investor committed in 2004 to invest some $US 20 million over the 15 years. Kirov Utility Systems was expected to serve some 502,900 people in the Kirov region, located in the North Eastern part of European Russia. Since July 2005, Kirov Utility Systems operated heating systems in the city of Kirov and Kirovo-Chepetsk. Operating company Kirov Utility Systems was a subsidiary of Joint Stock Company Russian Communal Systems (RKS). 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 (IES-Holding)had purchased a 50% stake in RKS, while RAO UES held on to its 25% share. In July 2006, IES-Holding increased its shareholding in OJSC Russian Utility Systems to 75%. In May 2008, through a public auction, RAO UES sold its 25% stake in the RKS to Indville Management Ltd., an affiliate of In November 2003 the Kirov municipality granted a short term lease contract for 11 month for the city’s water and wastewater infrastructure facilities to Russian company Kirov Utility Systems. In November 2004 the contract was extended to a 15 year lease and investment agreement. The contract was offered without a tender. The private investor committed in 2004 to invest some $US 20 million over the 15 years. Kirov Utility Systems was expected to serve some 502,900 people in the Kirov region, located in the North Eastern part of European Russia. Since July 2005, Kirov Utility Systems operated heating systems in the city of Kirov and Kirovo-Chepetsk. Operating company Kirov Utility Systems was a subsidiary of Joint Stock Company Russian Communal Systems (RKS). 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 (IES-Holding)had purchased a 50% stake in RKS, while RAO UES held on to its 25% share. In July 2006, IES-Holding increaseD its shareholding in OJSC Russian Utility Systems to 75%. 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.roscomsys.ru/r5.html Е-mail: secr@kcs.kirov.ru