Is Providing Public Utility Infrastructure a Business or Social Responsibility?
The wear on public utility infrastructure in the Russian Federation has topped the critical 70% mark in the main utility systems such as water supply, wastewater management, heating provision, etc. This high percentage increases the risk of accidents and technological breakdowns and undermines the uninterrupted supply of services to the population. The entire system should be renovated within 25 years, which requires replacement of 4% of the network on annual basis. At present, this figure stands at around 1%, leading to an unavoidable annual rise in emergency and routine repair costs. Global experience has shown the effectiveness of resolving these problems partly by attracting investors. Which global practices in managing public utility infrastructure would work in Russia? What parameters do national and federal projects need to take into account to increase funding to the sector? What changes are required in legislation to launch efficient investment in public utility infrastructure? Can investors fully resolve the problem of retrofitting the networks?
Lev Gorilovskiy, President, Polyplastic Group; Member of the General Council, Delovaya Rossiya (Business Russia)
Svetlana Bik, Executive Director, National Association of Concessionaires and Long-term Infrastructure Investors
Pavel Kurzaev, General Director, RKS-Management
Alexander Nikolayev, President, INTECO
Vasily Savin, Partner, Head of Power and Utilities, KPMG in Russia and the CIS
Maksim Tkachenko, Executive Director, Public-Private Partnership Development Center