Russian Water Industry Remains at Crossroads

One of the major problems in Russia is the need for a full-scale reform of the Russian water industry.

According to the Russian authorities, between 35 % to 60 % of total reserves of drinking water in Russia currently do not meet sanitary standards, with 40 % of surface and 17 % of underground spring water considered as impotable.

Moreover, the level of pollution in Russian rivers and lakes from agricultural and industrial waste exceeds all the minimum standards. Nearly 11 million people in Russia do not have access to safe drinking water, while around 50 million people drink water with high iron levels.

The current status of the Russian water supply system leaves much to be desired. According to local experts, almost 30 % of all the Russian water pipes need to be replaced in the near future, however only 1.5 % of them are replaced each year.

An average project that involves the reconstruction of water pipes has a payback period of eight years. If the project starts from now, this period increases up to 12 years, which is too long for the Russian economy. However, even if the volume of repair works was to be increased several times, this would still not be sufficient to solve the problem of delivering clean water to consumers. At present, the Russian water-economic complex requires constant budget investments to at least keep it in its present condition and to prevent further deterioration. According to analysts’ estimates, most of the Russian water pipes should be changed during the next two or three years due to their emergency condition. At the same time, according certain analysts, the only way out of this situation is to apply modern technologies to boost (повышать) water supply.

The reform of the sector of housing and public utilities has been in progress for more than 10 years now. The Russian Government first focused its efforts on the problems of the public-service sector in 1997, when an RF Presidential Decree was passed, called “On the reform of the housing and utilities sector in the Russian Federation”.

The primary objective of reforming and modernizing the utilities, as set by the Government of the Russian Federation, is to put in place conditions for bringing the public utility infrastructure to conformity with the quality standards that ensure comfortable living conditions. So, the main tasks are:

– to modernize public utility infrastructure facilities;

– to improve the performance of management of public utility infrastructure facilities;

– to attract of funds from extra budgetary sources (including the funds of private investors, credit funds and savings of citizens) to finance the projects to modernize the facilities of public utility infrastructure.

VII. Read the text “Housing and Utilities Reform: Get Ready to Economize” and choose the right answer to the following questions:

1. The chief objective of the program in the housing and utilities sector is … the domination of the local monopolies.

a) to strengthen b) to weaken c) to develop

2. The share of privatized housing in the total volume of the housing stock in Russia is … percent.

a) 35 b) 45 c) 55

3. In Russia … of tap water gets lost before it reaches homes.

a) 35 to 45 % b) 55 to 65 % c) 75 – 95 %

4. In the USA … percent of tap water is lost.

a) 12 b) 20 c) 42

5. In Japan … percent of tap water is lost.

a) 11 b) 21 c) 41

6. One water-supply worker in Russia serves … persons.

a) 300 b) 1,500 c) 1,700

7. In St. Petersburg the installation of water and gas meters in homes costs …

a) about $ 350 b) $ 350 c) over $ 350 per apartment

8. The Russians would rather prefer ….

a) to stop paying for electricity, gas and water consumption

b) to save electricity, gas and water

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