March 3, 2017: business delegation of Fővárosi Vízművek Zrt. (Budapest Waterworks, Hungary) visited the city of Taganrog to discuss a concession agreement with Taganrog Local Government to operate the local water supplier VODOKANAL.
Budapest Waterworks' General director Mr. Harangi, Hungarian company's director of regional operations Mr. Gombasegi, representative of Russian chamber of commerce in Austria and Hungary Mr. Merezhko, chairman of Donselkhozvodstroy Mr. Perelygin, deputy minister for housing and community amenities Mrs. Yaltyreva were received by Mr. Andrey Lisitsky at the Mayor's Office.
"Today we had a fruitful discussion at VODOKANAL with their specialists. I believe we have a chance to work together on interesting projects. Operating concessions is not easy, but we have necessary experience and expertise gained in other countries, such as Azerbaijan and Indonesia. As for Russia, we are confident of our advantage over Westeuropean companies due to a better knowledge of problems in former Soviet republics. We also know how to handle them", told Mr. Harangi.
In 2016 Budapest Waterworks established a Russian-Hungarian joint venture to invest into water-supply projects in Ural Mountains area.
Taganrog City Manager Andrey Lisitsky explained the municipality's point of view: "First of all we need to provide people with drinking water, which has not been good since Peter the Great's times, and to insure wastewater disposal services. Secondly there must be financial safety. Sadly, in Russia we frequently face bitter experience when a company invests some money, but then disappears without leaving a trace after reception of a budgetary subsidy. In third place the city needs a certain economic outlook. There are recently annexed areas in the north without sewer conduit - cost of this project is estimated at over 4.5 billion rubles. This puts the brakes on district's development and on the whole city's economy".
The first meeting between Taganrog officials and Budapest Waterworks representatives was limited to fact-finding. Both sides agreed to exchange information and study documentation before further concession talks. Mr. Harangi invited Mr. Andrey Lisitsky to visit Budapest to show how the company's water-supply facilities work.