Tomsk Municipal Utility Complex

cancelled

In December 2003 the municipality of Tomsk granted a 49 year lease and investment contract for the city’s water and wastewater infrastructure facilities to Russian company Tomsk Utility Systems (TUS). The contract was offered without a tender. TUS was expected to serve some 487,700 people in the city of Tomsk. Operating company Tomsk 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 had purchased a 50% stake in RKS, while RAO UES held on to its 25% share. In March 2007, the municipality of Tomsk terminated the 49 year contract with the TUS. The decision was made first by the Municipal Duma in October 2006. The reason cited by press was the TUS’ growing debt (1.2 billion ruble by February 2007) to the electricity provider "TomskEnergo" and the deteriorating quality of services, mainly heat and electricity supply services. The TUS, in its turn, claimed that municipality owned it about 600 million rubles. As a result of long-standing conflict situation and disagreements between the municipality and the Municipal Duma on one side and the private operator on the other the decision was made for the TUS to “peacefully” leave. The service provision for the effected services was handed over to the municipal unitary enterprises. None None