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Utility sector of Russia: reform results and development prospects

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  • T. Shakirov

Abstract

This paper presents an analysis of the reform of the municipal services sector in the most important areas for the last 6 years: reasons for the tariffs growth; municipal property management; impact of limit indexes on the public utilities sector; the financial condition of enterprises; wear of some objects of the community infrastructure; results of the private sectors activities; attracting private investments. The current governments measures on the reforming of the municipal services sector have been analyzed. The analysis of the PPP contracts in the utilities sector (above 60 contracts) has shown that they practically do not contain serious investment obligations of private operators. The explanation to this lies in the opaque and politicized tariff policy of the state, which makes investment risks unacceptably high. On the whole, the analysis has shown that though business does go into the utilities sector, investment projects are still very few: it especially concerns the water and heat supply sector. Moreover, if in the years of 1990 -2000 objects, built during the Soviet era, have not exhausted their resources and the government had time for experiments in the municipal services complex, now it is necessary to take measures that will definitely change the municipal services sector of the country, will attract private investments, management resources, will improve the quality of services. Otherwise, it is already in the near future, that we can predict the total collapse of the municipal services complex.

Suggested Citation

  • T. Shakirov, 2012. "Utility sector of Russia: reform results and development prospects," Public administration issues, Higher School of Economics, issue 3, pages 147-158.
    • Handle: RePEc:nos:vgmu00:2012:i:3:p:147-158
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