1. Irina Zapatrina, Chairman of the Board, doctor of economic sciences 1

2.  Price regulation  Problems in the normative-legislative regulation of projects  Society’s attitude toward the participation of private investors in the sphere of living conditions  Excessive demands of municipalities and the government toward private partners  Decentralization of infrastructural sectors  Check-ups, risks for official personnel

3.  The government’s and municiplaity’s interest in PPP because of difficulties with budget financing  Experience with forming a pool of energy-saving investment projects (Swedish initiative)  Experience with creation of regional companies (Voda Donbassa)  Concept documents (concept of government regulation, concept of PPP in housing services, reform program in housing services, draft laws in PPP sphere.)  The presence of positive and negative examples of PPP  High potential in implementation of PPP projects/ the influence of the country’s situation on neighboring countries’ ecological conditions (common water sources)  Interest and qualification (mayors, guidance of enterprises)

4.  competition between operators and investors in the sphere of housing services is low  housing services systmes require a uniting of efforts from investors, operators, professional associations, and the government in order to create reform.  Delay in modernization of infrastructure negatively influences on the ecological conditions and makes the projects more expensive.

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8. 8 MotivationConstraints WRONG EXPECTATIONS StateNew energy efficient technologies Decreasing of budget support Loss of controllability Responsibility for reliability and quality Local govern- ment Escape from «headache» Attraction of financial resources, new technologies, management Loss of controllability of infrastructure Loss of «earnings» Impossibility to evaluate efficiency PrivateProfit, «Long business» Imperfection of regulation (tariffs, rules, strategies) Consu- mer Lack of understanding and related fears

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