Perm City Water Services Project

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The private company NOVOGOR-Prikamye started its operations in "Permvodokanal" (municipal water supply enterprise of the Perm city) on December 1, 2003. According to the agreement with Perm City administration, Permvodokanal assets were transferred under the lease contract to NOVOGOR-Prikamye. Former utility staff was transferred to NOVOGOR-Prikamye as well. Initially the lease was for 1 year, and the second 49 year lease agreement was signed on February 11, 2005. In line with the lease agreement the private company was expected to invest US$50 million over the lease period, including no less than US$20 million in the first five years for the renovation and development of water supply and sewerage systems. The total lenght of the network was 2054 km, of which water -1096 km, sanitation -957.8 km. The city of Perm was home to 1.1 million inhabitants in 2003. Perm was one of the largest industrial cities of Russia and the capital of the Perm province. The city was located 800 miles east of Moscow, on the Kama river. NOVOGOR-Prikamye entered into another 30 year lease contract for the water utility in the city of Berezniki located in the same province on February, 2005. NOVOGOR-Prikamye started operations in another water utility in the city of Krasnokamsk since December 1, 2006. The operator NOVOGOR-Prikamye was a specialized public utility company of Interros in 2003. It became a subsidiary of OJSC Russian Utility Systems (RKS) on January 17, 2007, that in turn was a part of Integrated Energy Systems (IES Holding). 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.interros.ru/eng/contacts/ 11/10/04 an e-mail sent to "Interros" to clarify % private http://www.roscomsys.ru/nov-prikamje.html http://novogor.perm.ru/ http://www.ebrd.com/projects/psd/psd2007/36462.htm In 2008, the EBRD Board approved a RUR 1.5 billion (US$60.35 million) loan to Novogor-Prikamye for priority investments into essential infrastructure assets with the aim to enhance efficiency, quality, and cost effectiveness of provision for municipal water and wastewater services to the residents of Perm.