OREANDA-NEWS. September 12, 2007. According to a decision taken by the City Hall of Izhevsk by results of an open tender for lease of the municipal heat supply assets, those facilities will be leased to LLC Udmurt Utility Systems (a subsidiary of OJSC Russian Utility Systems). A lease contract will be concluded for the term of one year with an option of subsequently signing a long-term lease for 25 years.

Udmurt Utility Systems will take on lease 547.8 km of urban quarter networks (in two-pipe terms), 136 central heating points, 22 individual heating points and 209 boiler houses.

When taking this decision, the tender committee took into consideration the experience of LLC Udmurt Utility Systems in operation and long-term development of heat supply facilities and in energy sales. Since 2006 the company has been operating Izhevsk main heat pipelines and since 2007 its zone of responsibility also includes urban quarter heat supply networks in the town of Sarapul. LLC Udmurt Utility Systems sells thermal energy to legal persons with municipal agencies and other entities being its main customers.

An important criterion in selection of the lessee was the volume of funds the company would be prepared to invest in improvement of the state of the leased assets. LLC Udmurt Utility Systems expressed its readiness to invest RUR 470.2 million until 2032. At the same time, support from the authorities will be required for the utility operator to break even.