The Ministry of Economic Development expects to unify the creation and monitoring of investment programs in housing and utilities. According to the ministry, this should relieve pressure on business and attract private investment in the sector. Meanwhile, experts and the business community warn the opposite could happen: the new rules create redundant procedures, duplicate existing requirements and limit funding sources, thereby delaying the approval of investment programs and, consequently, the modernisation of the housing and utilities sector. The draft rules de-facto contradict the government’s plans for accelerated modernisation of the utilities sector, although the tougher procedures will make it impossible for investors to flexibly extend and delay programs.
Arina Dovzhenko, a Partner and Head of the Real Estate & Construction Practice at Nordic Star Law Offices, commented for Kommersant newspaper on what is important for attracting concessionaires to the housing and utilities sector.
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