Luganskvoda

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In August 2008, Rosvodokanal (RVK) of Russia assumed full operational control of Luganskvoda, a water supply and sanitation utility serving a population of approx. 6.1 million people in Lugansk Oblast, eastern Ukraine. The concession was awarded for a period of 25 years on a rehabilitate, operate and transfer basis. In late 2007, the regional government of Lugansk launched a public tender for the concession of Luganskvoda. RVK was the sole bidder. The regional government of Lugansk awarded the concession to RVK in March 2008. The project reached closure in August 2008, the date at which Rosvodokanal assumed full operation of the utility's assets. The date of signing of the concession contract was not available from public sources. Under the terms of the concession, RVK made an investment commitment of US$102 million, to be implemented over five years (2008-2012). The company was expected to finance this program through the issuance of a RUB1.75 billion bond, which took place in July 2008 and which received a BB- rating from rating agency Fitch.