Oftentimes concession agreements are about the only option for, say, sorting out municipal water supply and sewage systems that have not been repaired in decades. What is currently holding back full-fledged concessions being entered into across the country and what changes are in the works to remove these obstacles? The Analytical Center expert Dmitry Khomchenko commented on the situation in an interview for Rossiyskaya Gazeta.
There are examples of successful concession agreements for thermal energy supply
There are examples of successful concession agreements for thermal energy supply, the expert believes. The most successful concession agreements entered into this year include thermal energy supply projects in the Khanty-Mansi autonomous district, Vladimir oblast and in Yakutia.
“But there are bad examples as well. Thus the administration of Moscow Oblast is trying to use force to terminate a concession agreement that was entered into several years ago and that has since been performed successfully just to expand treatment capacity in a neighboring municipality,” says Dmitry Khomchenko.
In any cases, concessions, as a relatively new tool for long-term investments, are going to demonstrate their effectiveness over the next few years.
Source: Rossiyskaya Gazeta