Volgograd water concession signed

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Volgograd water concession signed

The City of Volgograd (Russia) and Water supply concessions LLC have signed the concession agreement for the city's water communal infrastructure system.

Water supply concessions LLC has been established by a group of investors to carry out the water PPP project. The firm beat out competition form Krasnodar Vodokanal, which was the other firm involved in the tender process.

The Liniya Prava law firm has advised Volgograd Administration, which organized the tender process. Andrey Novakovskiy, Managing Partner of Liniya Prava and head of the firm's PPP practice, stated:

"This is a unique large-scale project in the sphere of water supply and water disposal in Russia. Moreover, this is the first full-fledged concessionary tender conducted pursuant to the new requirements of the law on concession agreements in the sphere of housing services and utilities as amended in 2014."

The project involves the development of the Volgograd water and wastewater treatment plant. It also involves, among others, the development and reconstruction of 193-km-long water supply network and 42-km-long sewer network and the reconstruction of 72 water supply pump stations and 41 water disposal pump stations. The concessionaire will also ve responsible for the maintenance of other water and wastewater treatment plant facilities for a period of 30 years.

The total project investment is estimated at RUB65.13 billion (US$1.2 billion), of which RUB58.03 will be for the development of the city's water and waste-water treatment plant.

Volgograd is an important industrial city and the administrative center of Volgograd Oblast, Russia. It is situated on the western bank of the Volga River. The city has a population about one million inhabitants.

Throughout the last two weeks we have reported on several water & waste PPP projects globally:

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