Private sector participation in the water and wastewater services industry - Дипломная работа

Private sector participation in the water and wastewater services industry Table of Contents 1. Introduction 1.1 Research Background 1.2 Research Objective and Research Plan 1.3 Scientific Novelty and Practical Applicability of the Study 1.4 Research Structure 2. Literature Review and Theoretical Framework 2.1 Definitions and Models of Control in Water Supply and Sanitation Industry 2.2 Concession Model of Control in Water Supply and Sanitation Industry in International Practice 2.3 Models of Control in Water Supply and Sanitation Industry in Russia 3. Research Design and Methodology 4. Case Study of Control in Water Supply and Sanitation Industry in Perm Part 1: Condition of Networks and Evolution of Control Model 4.1 Condition Characteristic of Water Supply and Sanitation Facilities in Perm 4.2 Control Model’s Evolution in Perm’s Water Supply and Sanitation Industry 4.3 Analysis of Lease Contract in Water Supply and Sanitation Industry in Perm 4.4 Description of the Concession Contract for Water Supply and Sanitation Industry in Perm 5. Case Study of Control Model in Water Supply and Sanitation Industry in Perm Part 2: Comparative Analysis 5.1 Comparison of Concession Contacts Conditions 5.2 Financial Analysis of LLC Novogor-Prikamye 6. Discussion 7. Conclusion 7.1 Results and Findings 7.2 Research Limitations and Future Research Directions References Appendix 1. Capital investments’ estimation in economic activity water collection, purification and distribution by regions in 2003-2013 Appendix 2. Conditions of concession agreements in Perm and other cities Appendix 3. Main financial indicators of LLC Novogor-Prikamye’s activity Appendix 4. Data used for a comparative analysis of financial indicators of LLC Novogor-Prikamye and other companies 1. Introduction 1.1 Research Background Development of any community has to be supported by an effective provision of its vital functions. An essential part of such functions is providing citizens, authorities and business with water supply and sanitation facilities. In many countries, particularly in Russia and other post-soviet nations, the government traditionally controlled the whole sector. However, by the end of XX century, the technical condition of water supply and sanitation networks had become very poor. This fact was principally caused by a constant underinvestment in water and wastewater facilities and low government’s motivation for an effective management. As a result, a high wear and tear causes a great number of damages on networks and poor quality of drinking water. Modernization of water supply and sanitation facilities requires a great amount of investments, which could not be fully afforded by any local authorities (Orlova, 2010). Therefore, many experts argue that the problem of poor networks’ condition should be resolved with private sector involvement (Cowdery, 2000; Gregory, 2010; Baumert and Bloodgood, 2004; Svistunov, 2004; Goriachiy, 2011; Karaoglanov, 2008; Varnavskiy, 2005,2007; Cairo and Frangione, 2006). These claim that long-term agreements, such as lease or concession, could attract private investments into the sector. According to these lease or concession agreements, management of water and wastewater facilities should be transferred to the private company, while control and regulation over the services are partly kept by the authorities. research water supply sanitation However, other experts point out that interaction of public and private sectors in this industry is ineffective and transferring water supply and sanitation services to the concession would only add to the problem (Dovlatov and Kanivec, 2014; Saliev, 2010; Frank, 2008; Gomez, 2013). Indeed, by virtue of their specificity, companies providing water and wastewater utilities are local monopolies and their privatization is impossible because of their social and strategic significance. Therefore, there is no common view on how and by whom water and wastewater facilities should be managed and controlled. In this study we intend to define whether existing model of control in this industry is effective or not on the case of the real region. 1.2 Research Objective and Research Plan The objective of this research is to define the ways of optimising a control model of water supply and sanitation systems in the municipality of Perm, Russia. A crucial part of the research is dedicated to identifying the problems in model of management and control in water supply and wastewater industry in Perm. The city in question has a population of about one million citizens. Its water supply and sanitation facilities were devolved to a private company via lease contract in 2004, and then this contract was transferred to a concession agreement in 2013. Perm was chosen as a case study because of its extremely high level of wear and tear of networks - around 77-100% (Bukina, 2013). Moreover, its model of control in the industry changed from government’s management to lease contract and then to