Upgrading utility infrastructure systems in the Russian Federation: Concession mechanisms

Abstract

In the Amur region (Russian Federation), the extent of wear and tear of engineering heating networks was 21 percent as of the year-end 2022, which was an average value for this region. In some cities of the region under study wear and tear reaches 72 percent. The current wear and tear of utility infrastructure systems substantially degrades the quality of utility services provided to the population and boosts the percentage of heat losses and accidents in heat networks. The goal of the research project is to devise an action plan to reduce the rate of accidents and the wear and tear of heat networks in the Amur region of the Russian Federation by developing a concession mechanism focused on upgrading utility infrastructure systems. Logical analysis of the regulatory legal framework, as well as analysis of qualitative and quantitative values of utility infrastructure systems (heat networks in the Amur region). The need for the mechanism of concession agreements was substantiated as a means of upgrading utility infrastructure systems. Actions are proposed to boost the funding of repair and replacement of utility infrastructure systems in the Russian Federation.