Krasnodar City Water Utility

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On October 4, 2006 the municipality of the city of Krasnodar and the company Krasnodar Vodokanal, part of the private holding Rosvodokanal (RVK), signed 25 year lease agreement for the assets of municipal water utility. Previously, Krasnodar Vodokanal had a short term operating agreement for the same utility from December 7, 2005. Krasnodar Vodokanal’s “Investment program” for 2007-2011 was approved by the city government. During the 5 years Krasnodar Vodokanal was expected to invest into facilities $127.9 million. The company Rosvodokanal (RVK) was created in 1949. In 2003, it became a part of Alfa Group Consortium, one of Russia’s largest privately owned financial-industrial conglomerates, with interests in oil and gas, commercial and investment banking, asset management, insurance, retail trade, telecommunications, technology, as well as other industrial-trade and special-situation investments. Rosvodokanal was undertaking projects in various parts of Russia, namely in Orenburg, Barnaul, Krasnodar, Tyumen, Tver, Kaluga, and Kaluga region. In addition, it was about to underatake projects in large cities in Ukraine. Krasnodar was a city in Southern Russia on the Kuban River with population of 754,000 people (2007). It was the administrative center of Krasnodar Krai (also known as Kuban). in 2008, Rosvodokanal obtained a loan from the IFC for RUB624 million or $25 million and another loan from the EBRD for RUB 5.6 billion or $224 million to support its obligations under the six long term lease contracts and investment agreements with the municipalities. The EBRD/IFC loan provided financing to implement 5-year investment programs in each city in which RVK operated in 2007 and the acquisition of new utilities. http://www.alfagroup.org/ http://www.a-1.com/en/ http://www.rosvodokanal.ru/03.html Updates received from the IFC Investment Officer Sergei Mytarev smytarev@ifc.org Investment committment is for 2007-2011