Financial Support of Housing and Utilities Services Sphere

Abstract

Housing and utilities sector has remained a topical issue over a long period of time and is closely connected with governmental tasks of improving the quality of providing the population with social services and creating investments opportunities. The increase of the sector efficiency in terms of the regional specificity is affected by such factors: the state of the industrial infrastructure, the level of capital intensity of the operating productions, the features of financial support of the housing and utilities enterprises in Irkutsk Oblast. There are a number of features in the Irkutsk Oblast housing and utilities sector that restrict attraction of private investments. The government works out the projects of increasing their attractiveness with the aim of lowering the share of their participation in financing the sector. The most significant ways of developing the housing and utilities sector (HUS) in Irkutsk Oblast, presented ion the article, include the level of regional acceptability of the rate methods, increasing the quality of public-private cooperation, introducing the ways of lowering the HUS enterprises loan debts. All of them are being implemented depending on the possibility of supporting their effective financing. An issue is raised in the tariff policy about the negative effect of the short-term tariffs for services and products, which can lower the investment risks, a task that is hard to perform at the present time, not involving all types of services. Public-private cooperation can contribute to attracting private investors through making concession agreements that determine and establish mutual relations for defending their interests but strongly restricts the investors rights. The loan debts as a negative factor of attracting private investors in the HUS sphere slow down the development of the sector.