Odessa Water Utility

active

In November 2003, the Odessa City council decided to grant a 49 year lease on Odessvodokanal (water utility) to Infox, a large Ukrainian holding company reportedly active mainly in the oil sector. The Infox committed to invest 500 million Hryvnja (or about $100 million) over the next 5-7 years for the rehabilitation and construction of new sewerage systems in the southern parts of Odessa city, finish construction of wastewater treatment plant, and other works. The City budget committed to put in additional 20 million Hryvnja for the 2003-2007 investment program with the funds coming mainly from the increased tariff. Over the investment period the lease payment for the use of the utility assets was set to be 1 Hryvnja/year. After the investment period Interfox would be paying Odessa City a full lease payment of about 9 million Hryvnja a year. According to the 2008 press release, the City Council has set up a committee which is currently evaluating the performance of water utility under lease contract. None None