Russian Urban Housing Energy Efficiency Programme – Model Development Analyse the current state of the housing stock REPORT 0N TASK 1 ANALYSE THE CURRENT STATE OF THE HOUSING STOCK

PROJECT: «RUSSIAN URBAN HOUSING ENERGY EFFICIENCY PROGRAMME – MODEL DEVELOPMENT»

CONTRACT №: С22341/GEF2-2011-07-04

PREPARED FOR: THE EUROPEAN BANK FOR RECONSTRUCTION AND DEVELOPMENT

Moscow 2011

The Institute for Urban Economics (IUE) 1 Center for Energy Efficiency (CENEf) Housing Initiative for Eastern Europe (IWO) Institute Byvania (The Institute of Housing)

Russian Urban Housing Energy Efficiency Programme – Model Development Analyse the current state of the housing stock

Table of contents

Table of contents...... 2 List of Figures ...... 4 List of Tables ...... 6 List of abbreviations ...... 7 EXECUTIVE SUMMARY...... 8 INTRODUCTION ...... 17 SECTION 1. REVIEW OF THE CURRENT STATE OF THE HOUSING STOCK IN THE RUSSIAN FEDERATION ...... 19 1.1 Dynamic and Structure of the Housing Stock in the Russian Federation...... 19 1.2 Dynamics of the Level of Comfort of the Housing Stock in the Russian Federation ...... 25 1.3 Dynamics of the Needs for Capital Repairs and Capitally Repaired Housing Stock ...... 25 1.4 Volume and Pattern of Energy and Water Consumption by Residential Buildings ...... 30 1.5 Estimation of the Volumes and Conditions of Energy Savings Resulting from Capital Repairs of Residential Buildings ...... 34 1.6 Level of Affordability of Housing and Utility Services ...... 35 1.7 Cost of Capital Repairs of Apartment Buildings ...... 36 Conclusions ...... 39 SECTION 2. REGULATORY REQUIREMENTS TO CAPITAL REPAIRS OF APARTMENT BUILDINGS ...... 42 2.1 Regulatory Requirements to the Scope of Works on Capital Repairs of Residential Buildings ...... 42 2.2 Regulatory Requirements to Enhancement of Energy Efficiency of the Housing Stock as a Result of Capital Repairs ...... 45 Conclusions ...... 49 SECTION 3. CATALOGUE OF KEY MEASURES FOR CAPITAL REPAIRS OF RESIDENTIAL BUILDINGS ...... 50 3.1 Catalogue of measures for capital repairs of residential buildings ...... 50 3.2 Definition of packages of measures for capital repairs of residential buildings ...... 54 3.2.1. Package No 1 (minimum) ...... 55 3.2.2. Package No. 2 (realistic) ...... 59 3.2.3. Package No. 3 (energy - efficient) ...... 64 3.3 Resource saving as a result of implementation of packages of measures for capital repairs of residential buildings ...... 69 3.3.1. The procedure for estimating the amount of savings as a result of implementation of energy-saving and energy efficiency enhancement measures ...... 69 3.3.2. Estimation of the amount of utilities savings as a result of implementation of energy efficiency enhancement measures ...... 69 Conclusions ...... 72 SECTION 4. LONG-TERM FORECAST SCENARIOS FOR CAPITAL REPAIRS UNTIL 2030 ...... 74 The Institute for Urban Economics (IUE) 2 Center for Energy Efficiency (CENEf) Housing Initiative for Eastern Europe (IWO) Institute Byvania (The Institute of Housing)

Russian Urban Housing Energy Efficiency Programme – Model Development Analyse the current state of the housing stock 4.1 Description of key assumptions in scenarios ...... 74 4.2 «Sluggish Strategy» – baseline ...... 77 4.3 «Improvement Strategy» ...... 81 4.4 «Like in Europe» ...... 87 4.5 Comparison of scenarios ...... 91 Conclusions ...... 92 SECTION 5. CAPITAL REPAIRS IN THE REGIONS OF THE RUSSIAN FEDERATION .. 94 5.1 Quality of statictical data by regions ...... 94 5.2 The current situation about capital repairs by regions ...... 94 5.3 Evaluation of the scope of capital repairs and expenditures for capital repairs until 2035 by constituent entities of the Russian Federation ...... 100 Conclusions ...... 100 SECTION 6. EXPERT EVALUATION OF AVAILABILITY AND SCOPE OF GOVERNMENT OBLIGATIONS TO FINANCE CAPITAL REPAIRS OF APARTMENT BUILDINGS IN COMPLIANCE WITH THE HOUSING LEGISLATION OF THE RUSSIAN FEDERATION ...... 102 6.1 Obligations of the former landlord envisaged in the law on the housing stock privatization ...... 102 6.2 Persones responsible for implementation of capital repairs in apartment buildings, according to Law on privatization ...... 104 6.3 On the procedure of fulfilling the obligations of the former landlord with regard to capital repairs ...... 105 6.4 Judicial practice and its implications ...... 106 6.5 Option of the Constitutional Court of the Russian Federation ...... 107 6.6 Priority of stipulation of the Housing Code of the Russian Federation revisited...... 108 6.7 Recommendations on refinement of the legislation ...... 109 6.8 Evaluation of the amount of state obligations towards capital repairs of apartment buildings ...... 110 Conclusions ...... 119 ANNEX 1. STATISTICAL DATA ON THE STATE OF THE HOUSING STOCK ...... 120 ANNEX 2. DETAILED ESTIMATION OF SAVINGS FROM MEASURES IN EACH OF THE THREE STANDART PACKAGES ...... 129 ANNEX 3. AN EVALUATION OF EXPENDITURES FOR CAPITAL REPAIRS UNTIL 2035 ...... 139

The Institute for Urban Economics (IUE) 3 Center for Energy Efficiency (CENEf) Housing Initiative for Eastern Europe (IWO) Institute Byvania (The Institute of Housing)

List of Figures Figure 1.1 Factors determined the housing stock dynamics 20 Annual (average annual) growth of the housing stock floor space and Figure 1.2 21 dynamics of the dilapidated and unsafe housing share Figure 1.3 Distribution of buildings and residential area by year of construction in 2009 22 Distribution of residential area by year of construction in Russian regions in Figure 1.4 23 2009 Figure 1.5 Distribution of buildings by walling 24 Figure 1.6 Level of comfort of the municipal housing stock 25 Dynamics of the floor space of capitally repaired apartment buildings in 2000- Figure 1.7 26 2009 Dynamics of the floor space of capitally repaired premises in apartments in Figure 1.8 27 1970-2009 Floor space of capitally repaired apartment buildings in 2009, by RF Figure 1.1 28 constitutional entities Dynamics of the apartment buildings floor space by operating life, area of Figure 1.10 premises that need capital repairs, and average age of apartment buildings in 29 2000-2035 Figure 1.112 Dynamics of the area of facades and roofs capitally repaired in 2000-2009 30 Pattern of energy consumption in apartment buildings of the energy efficient Figure 1.12 31 neighborhood in Tyumen in 2009 Standard distribution of residential buildings by unit specific consumption of Figure 1.13 32 heat energy for heating purposes (“slope of wasteful energy consumption”) Correlation of unit specific energy consumption with year of construction of Figure 1.14 33 residential building Dynamics of requirements to thermal protection of buildings in USSR and Figure 1.15 then in depending on year of approval of the Building Code (SNiP) (the 33 1900-1945 data are estimates, 1954=100%) Rating of residential buildings of the energy efficient neighborhood in Tyumen Figure 1.16 34 by unit specific energy consumption and energy saving potential Figure 1.17 Share of rent and utility payments 36 Mechanism of financing capital repairs under projects implemented by the Figure 1.18 Fund for the Promotion of the Housing and Utility Sector Reform in 2008- 36 2010 Figure 1.193 Dynamics of capital repairs costs by type of work in 2007-2009 37 Figure 1.20 Capital repairs costs by regions of the Russian Federation in 2009 38 Factors determining the dynamics of the housing stock in the Russian Figure 4.1 76 Federation in 2005 - 2035 Change in the age structure of the housing stock in the Russian Federation in Figure 4.2 76 2000 - 2035 Scope of capital repairs of apartment buildings according to the "Sluggish Figure 4.3 78 Strategy Scenario" Scope of capital repairs by specific work items according to the "Sluggish Figure 4.4 80 Strategy" Figure 4.5 Expenditures for capital repairs according to the "Sluggish Strategy" scenario 80 Structure of financing capital repair costs according to the "Sluggish Strategy" Figure 4.6 81 scenario Scope of capital repairs of apartment buildings according to the Figure 4.7 84 "Improvement Strategy" scenario Figure 4.8 Scope of capital repairs by specific work items according to the "Improvement 84 The Institute for Urban Economics (IUE) Center for Energy Efficiency (CENEf) Housing Initiative for Eastern Europe (IWO) Institute Byvania (The Institute of Housing)

Russian Urban Housing Energy Efficiency Programme – Model Development Analyse the current state of the housing stock Strategy" scenario Expenditures for capital repairs according to the "Improvement Strategy" Figure 4.9 85 scenario Mechanism of financing capital repair costs according to the "Improvement Figure 4.10 86 Strategy" scenario Utility cost savings according to the "Improvement Strategy" scenario Figure 4.11 88

Scope of capital repairs of apartment buildings according to the "Like in Figure 4.12 89 Europe" scenario Figure 4.13 Expenditures for capital repairs according to the "Like in Europe" scenario 89 Structure of financing capital repair costs according to the "Like in Europe" Figure 4.14 90 scenario Figure 4.15 Utility cost savings according to the "Like in Europe" scenario 91 Percentage of dilapidated and unsafe residential buildings in the floor space Figure 5.1 96 of the housing stock Figure 5. 2 Specific weight of regions in the floor space of rehabilitated buildings in 2009 98 Figure 5.3 Unit cost of capital repairs (Rubles/ m2) 99

The Institute for Urban Economics (IUE) 5 Center for Energy Efficiency (CENEf) Housing Initiative for Eastern Europe (IWO) Institute Byvania (The Institute of Housing)

List of Tables Table 1.1 Energy consumption by RF population in 2009 (TOE thousand) 31 Table 2.1 Standard (required) specific heat transmission resistance of residential 47 buildings’ envelope Table 3.1 Catalogue of measures for improvement of heat conductivity (heat 50 insulation) of residential buildings' envelopes Table 3.2 Scope of works at heat-, water-, power- and gas supply systems in 52 residential buildings Table 3.3 Attributes of Model Apartment Buildings in Russia 54 Table 3.4 Unit cost of Package No. 1 of measures per one m2 of the total building 57 floor space Table 3.5 Unit cost of Package No. 2 of measures per one m2 of the total building 61 floor-space Table 3.6 Unit cost of Package No. 3 of measures per one m2 of the total building 66 floor-space Table 3.7 Comparison of savings from packages of measures implemented during 71 capital repairs of residential buildings (relative amount of savings on some utility resources per one m2 of the total building floor space) Table 4.1 Main estimation results based on the "Sluggish Strategy" scenario 77 Table 4.2 Main estimation results based on the "Sluggish Strategy" scenario 82

Table 4.3 Main estimation results based on "Like in Europe" scenario 87

Table 4.4 Comparison of main estimation results by scenarios for 2035 91

Table 6.1 Basic Data for National (The Russian Federation) Housing Stock Forecast 112 Table 6.2 Evaluation of the Amount of State Obligations towards Former Tenants 115 with regard to Capital Repairs in Apartment Buildings (Abs)

The Institute for Urban Economics (IUE) Center for Energy Efficiency (CENEf) Housing Initiative for Eastern Europe (IWO) Institute Byvania (The Institute of Housing)

List of abbreviations

СEEU Center for Efficient Energy Use EMCRHS Estimate Model for capital repairs of housing stock IDD Input distribution devices CFL Compact fluorescent lamp GSOP C per day of the heating period SNiP Building Code HWS Hot water supply CWS Cold water supply IRH Individual Residential Houses ESCO Energy Saving Company Gcal Gigacalorie (1 Gcal – 1163 kWh) TOE Tonne of Oil Equivalent KgCe Kilogram of Coal Equivalent 1 KGce= 8.133kWh TCN Regional Construction Norms

The Institute for Urban Economics (IUE) Center for Energy Efficiency (CENEf) Housing Initiative for Eastern Europe (IWO) Institute Byvania (The Institute of Housing)

EXECUTIVE SUMMARY

The section 1 includes an analysis of the current state of the RF housing stock performed on the basis of official statistical data. The dynamics of the housing stock’s total area has been analyzed; the structure of the housing stock has been evaluated in terms of service life of buildings, their walling material, level of amenities provision, and forms of ownership of residential premises. The data with regard to the volume of done works of capital repair of national and regional housing stocks has been analyzed. The results of evaluated demand for capital repairs have been set out herein. The indicators describing energy consumption by and energy efficiency of the housing stock have been included in this section; the energy saving potential has been evaluated. Expert analysis of statistics and other available data revealed the following situation: • The housing stock of the Russian Federation amounted to 19,650 thousand buildings of the total floor space 3,177 mln. m2 as of 2009 year end, of which quantity 2,293 mln. m2 (72%) accounted for urban settlements1. In 1990th, the rate of growth of the housing stock area became significantly slower and remained at the low level until 2005. Then this parameter began growing and reached the average level of the 1980th in 2007. Over the period from 2000 to 2009, the housing stock’s area has increased by 14%. The annual increase of the housing stock makes up about 3 %.

• The greater part of residential premises consists of housing units in apartment buildings (70 % of the housing stock’s total area). As of the end of 2009, the total number of apartment buildings (ABs) was estimated at 3,224 thousand buildings with the total area of 2,237 million sq. m. Individual buildings (IBs) equaled to 16,426 thousand units. Their total area was 974 million sq. m. • Substantial service life and increased wear are typical for Russia’s housing stock. • The average life of a building in Russia is estimated at 42 years; • In 2009 the service life surpassing 25 years had the buildings as follows: o 80.1% of IBs; o 75.8% of Abs • In 2009, the multi-apartment housing stock older than 25 years accounted for 1,416 mln. m2 and older than 40 years - for 751 mln. m2, or, in percentage terms, for 63% and 34% of the multi-apartment housing stock respectively. • 60% of residential premises served for more than a quarter of a century; • 90% of buildings in 43 regions of Russia was constructed before 1995; • Volumes of housing with the operating life exceeding 25 and 40 years will be systematically growing, and the average operating life of a residential building will increase up to 50 years by 2035.

1 Indicators characterizing the living conditions of the population are generated on the basis of statistical survey forms: No.1-zhilfond “The Housing Stock Data”, No.4-zhilfond “Data on Providing Residential Premises to Citizens”, No.1-KR “Data on Capital Repairs of the Housing Stock”. The Institute for Urban Economics (IUE) Center for Energy Efficiency (CENEf) Housing Initiative for Eastern Europe (IWO) Institute Byvania (The Institute of Housing)

Russian Urban Housing Energy Efficiency Programme – Model Development Analyse the current state of the housing stock • In 2009, 66-percent-wear had 6% of IBs and 8.7% of ABs (or 3.7% of the total area of residential buildings). • After 2005 the area of a dilapidated housing has been diminishing till it reached 80 million sq. m. in 2009. However, the growth of the area of an emergency housing stock has not been able to be kept down. In 2009, its area was 19.4 million sq. m. • In 2009, the proportions of IBs and ABs were 4.5% and 2.5%, respectively. • Most part of Russia’s housing stock - over 84% - is privately owned. In this Russia largely outpaces many developed countries. In fact, 97 % of IBs and 76% of housing units in ABs are reported to be in private ownership. • The housing stock in Russia has a rather high level of amenities. An average of 61.4% of housing is provided with all the amenities. In 2009, 89% of urban housing stock had access to water supply, 87% - to sewerage, 92% - to heat supply, and 80% - to hot water. • Russia’ housing stock of apartment buildings is in desperate need of capital repairs which stems from the fact that in the 1990s the volumes of housing stock’s capital repair dropped drastically. Yet there is an upward trend in place from 2008 when through the implementation of regional programmes – financed mostly by the Housing and Utilities Fund – the volume of capital repairs of apartment buildings has risen. Nevertheless, in 2009 the volume was 5.5 times below the level achieved in 1980. According to Rosstat, approximately 282.9 thousand apartment buildings (i.e. 9% of the total number of apartment buildings) needed capital repairs as at the beginning of 2009. Expert analysis revealed that these figures are based on the average operating life of an apartment building prior to capital repairs on it and equals almost 40 years. According to calculations made, as of 2009 the comprehensive capital repairs were required by: • 2,120-2,196 thousand apartment buildings with an average service life of 25 years (i.e., 1,314-1,361 million sq. m.); • 1,374-1,398 thousand apartment buildings with an average service life of 40 years (i.e., 645-660 million sq. m.). This level of demand for capital repairs will persist in future given that, annually, at least 2% of the total area of apartment buildings’ housing stock undergoes comprehensive capital repairs. If capital repairs are made at a slower rate, the demand for them will grow. • According to statistical reporting in 2009 capital repairs were carried out in 72.3 thousand apartment buildings, which accounts for 25.6% of the need for capital repairs estimated on the basis of Rosstat data. According to statistical reports in 2009 the costs of repairing the housing stock were estimated at 143.7 billion rubles (3.47 billion euro), including 137.5 billion rubles (3.32 billion euro) for capital repairs of apartment buildings. In 2009, the average cost of capital repairs per one square meter was 3.3 thousand rubles (79.6 euro). Under the regional programmes co-financed by the Housing and Utilities Fund the average unit cost of repair was 800 rubles (19.3 euro) in 2009, 810 rubles (18.6 euro) in 2010. This suggests that mostly selective works of capital repair took place. Uneven distribution of the scope of capital repairs among Russian regions in 2009. The leaders are , , and with a 25% share in all capital repairs. In 2009, 8.5% of the whole housing stock were capitally repaired in Chelyabinsk , 8% – in ; in 15 regions this parameter exceeded 3% and in 44 regions it was less than 1%. The Institute for Urban Economics (IUE) 9 Center for Energy Efficiency (CENEf) Housing Initiative for Eastern Europe (IWO) Institute Byvania (The Institute of Housing)

Russian Urban Housing Energy Efficiency Programme – Model Development Analyse the current state of the housing stock The aggregate energy consumption in the housing stock, including non-residential premises and consumption for the general needs of buildings can be estimated at the level of TOE 165 mln in 2009. The structure of energy consumption by Russia’s population is similar to that in European countries: heat makes up about 62% of the total energy consumption, hot water - 20%, other sources - about 19%. The specificity of the Russian heat consumption is that centralized supply dominates the supply of heat (56%) and the supply of hot water (69%) whereas the share of centralized supply in Europe is only 12%. The energy efficiency of the Russian housing stock is, on the whole, low: • In 2009, a specific consumption of all types of energy in a building was, on average, 47 kilograms of oil equivalent (KOE) per square meter (382.2 kWt*hour / m2 per year): • The indicators of energy efficiency of a building depend on a year of its construction. Reduced specific consumption of energy is typical for new buildings, because their thermal protection has been designed in line with new construction standards; • The energy efficiency of windows is estimated at 20-30% - for the entire housing stock and 30-40% in urban areas. As of 2009, the equipment of Russia’s housing stock of apartment buildings with meters was, on the whole, inadequate: • Communal heat energy meters are installed in 8% of apartment buildings (ABs), cold water meters - in 11% of ABs, hot water meters – in 7% of ABs, electricity meters – in 21% of ABs, and gas meters – in 0.9% of ABs. • Domestic heat energy meters are installed in 1% of housing units, cold water meters – in 22% of them, hot water meters – in 19% of apartments, electricity meters – in 80% of apartments, and gas meters – in 5% of apartments. Energy savings potential of apartment buildings is considered to be sufficiently high: that with regard to heat energy - 40%, electricity – 37%, natural gas -30%, water - 25%. Having achieved a complete use of energy saving potential the reduction of a specific consumption of energy down to 29.2 KOE/m2 per year, or by 40%, can be attained in all residential buildings. The section 2 reviews the regulatory and legal acts which contain the requirements to safety of buildings and to their energy efficiency. The lists of works and energy efficient measures performed within capital repairs of apartment buildings, as well as the requirements with regard to construction standard applied, when designing new buildings and developing the projects of capital repair of existing buildings, are included herein. • Relationships in the area of capital repairs are governed by a number of regulatory legal acts integrated in the Russian legislation. • Existing lists of capital repair works are not mandatory for owners of buildings. However, once they make their decision on capital repairs and on type of works within capital repairs, as a result of performance of relevant works, the observance of energy efficiency requirements and of requirements to equipping the buildings with meters of energy resources should be ensured. • Legislation of the Russian Federation establishes requirements to safety and energy efficiency of residential buildings over their service life. At the same time, those requirements cannot be applied to buildings which have been put into operation before

The Institute for Urban Economics (IUE) 10 Center for Energy Efficiency (CENEf) Housing Initiative for Eastern Europe (IWO) Institute Byvania (The Institute of Housing)

Russian Urban Housing Energy Efficiency Programme – Model Development Analyse the current state of the housing stock the former became effective, but the requirements can be applied when the rehabilitation or the capital repairs are taking place. After the adoption of Federal Law #261-FZ, capital repairs of buildings are correlated to and should comply with the standards of energy efficiency enhancement and energy saving. The law prohibits the commissioning of capitally repaired buildings and structures non-compliant with the requirements of energy efficiency and the requirements for use of the energy consumption meters. • Requirements contained within current construction standards and within sets of rules allow ensuring energy efficiency of buildings which are being constructed, repaired and rehabilitated. • There is a need not so much in developing new regulatory requirements with regard to capital repairs of apartment buildings, as in a larger harmonization of current regulatory requirements. The section 3 contains model lists of measures that can be carried out as part of capital repairs of buildings to reduce heat losses via walling and losses of utility resources in systems of heat-, water-, electricity-, and gas supply. There are three packages of measures to be performed within capital repairs of apartment buildings. These packages - baseline, realistic and energy efficient - vary according to tasks and cost of repair. The cost of each package of measures has been calculated for four most wide-spread types of apartment buildings. Herein are included the results of calculation of savings of various types of utility resources attained by means of implementing three different packages of measures in each of four types of apartment buildings On the basis of effective regulatory and legal documents and relying on available Russian and international practice the Consultant has put forward three packages of measures which may be implemented within capital repairs of apartment buildings, and which vary according to tasks and amounts of financial resources for capital repairs. These are baseline, realistic and energy efficient packages: • Package #1 (baseline) aims at supporting a building in a serviceable state. There are 15 measures included into the package. • Package #2 (realistic) is oriented towards the reduction of physical wear and tear and obsolescence, the enhancement of operational characteristics of a building, as well as the improvement of living conditions of residents. The total number of measures in this package is 20. • Package # 3 (energy efficient) will help to reduce physical wear and tear, and obsolescence, enhance operational characteristics of a building, and also considerably reduce consumption of energy resources and water, and improve living conditions of residents. Four most wide-spread, in Russia, types of apartment buildings have been chosen to calculate the cost of each of the packages. These packages differed by the number of floors, total area and other architectural characteristics and structural performance of a building. The unit cost of these packages of measures - which are recommended for implementation within capital repairs – varies according to the type of an apartment building, and is as follows: • For package # 1 – from 3,310.9 RUR/m2 to 1,516.2 RUR/m2; • For package # 2 – from 5,193 RUR/m2 to 2,849.1 RUR/m2; • For package # 3 - from 6,706.7 RUR/m2 to 4,056.7 RUR/m2. The Institute for Urban Economics (IUE) 11 Center for Energy Efficiency (CENEf) Housing Initiative for Eastern Europe (IWO) Institute Byvania (The Institute of Housing)

Russian Urban Housing Energy Efficiency Programme – Model Development Analyse the current state of the housing stock On the basis of the calculations it is clear that the highest unit cost of repair of each package is typical for low-rise buildings (those with up to 4 floors, and with total area of up to 750 m2), while the lowest unit cost of repair – for high-rise buildings (those with 13-16 and more floors). The calculations show that an average specific saving of utility resources (per one sq. m.) increases while passing from package #1 to package #3, and varies within the packages according to the type of a building. The higher value of specific saving of utility resources has been calculated for buildings with fewer floors. For buildings of the 1st type (with up to 4 floors) and for packages #1, #2, #3, respectively, the saving will be as follows: • Heat – 12.4%, 21.0%, 26.6% • Electricity – 7.7%, 7.7%, 10.5%; • Gas – 14%, 14%, 18%; • Water – 13%, 16%, 22%. For buildings of the 2nd type (with 5-8 floors) and for packages #1, #2, #3, respectively, the saving will be as follows: • Heat – 10.3%, 20.8%, 25.7%; • Electricity – 8.8%, 8.8%, 11.3%; • Gas – 12%, 12%, 15%; • Water – 10.5%, 13.0%, 17.5%. For buildings of the 3rd type (with 9-12 floors) and for packages #1, #2, #3, respectively, the saving will be as follows: • Heat – 10.5%, 20.6%, 24.4%; • Electricity – 8.0%, 8.0%, 10.3%; • Gas –10%, 10%, 12%; • Water – 8%, 10%, 13%. For buildings of the 4th type (with 13-16 floors) and for packages #1, #2, #3, respectively, the saving will be as follows: • Heat – 7.4%, 20.4%, 23.8%; • Electricity – 2.4%, 2.4%, 4.0%; • Gas – 8%, 8%, 9%; • Water – 5.5%, 7.0%, 6.5%. The section 4 reviews three scenarios of capital repair dynamics which differ from one another by planned annual volumes of capital repairs and the proportion of comprehensive repairs embracing energy saving measures: “Momentum Strategy”, “Enhancement Strategy”, “As in Europe”. For each scenario – with accepted assumptions – the demand for capital repairs of apartment buildings, the volume of undertaken capital repairs and the costs funded from various sources of financing have been calculated for a period until 2035. Analizing the needs in funding required for capital repairs and towards this end it reviews the following three scenarios for the capital repairs dynamics The Institute for Urban Economics (IUE) 12 Center for Energy Efficiency (CENEf) Housing Initiative for Eastern Europe (IWO) Institute Byvania (The Institute of Housing)

Russian Urban Housing Energy Efficiency Programme – Model Development Analyse the current state of the housing stock ⇒ "Sluggish Strategy", i.e. a scenario extrapolating existing trends in recent years in the field of capital repairs and serving as a "base line". In this scenario it is assumed that 2% of the total floor space of apartment buildings would undergo capital repairs each year, primarily those apartment buildings which have been in operation for 40 years, of which at least 50% should undergo comprehensive capital repairs according to plans which do not stipulate requirements with regard to reduction of energy consumption; ⇒ "Improvement Strategy", i.e. a scenario according to which it is assumed that starting from 2015 3% of the total floor space of residential buildings will undergo capital repairs each year, primarily apartment buildings which have been in operation for 40 years, of which at least 75% should undergo comprehensive capital repairs according to plans stipulating requirements with regard to reduction of energy consumption by at least 15%; ⇒ "Like in Europe", i.e. a scenario in which it is assumed that starting from 2015 4% of the total floor space of residential buildings will undergo capital repairs each year, of which at least 90% should undergo comprehensive capital repairs according to plans stipulating requirements with regard to reduction of energy consumption by at least 30%. All calculations were performed using a estimate model developed by the Consultant for capital repairs of housing stock in Russia. The comparison of estimation results in various scenarios reveals that: ⇒ According to the "Sluggish Strategy" scenario it is not possible to noticeably reduce the percentage of the floor space of apartment buildings which have been in operation for over 40 years and did not undergo comprehensive repairs. The implementation of this scenario leads to a situation when about a third part of the housing stock feels a steady need for comprehensive capital repairs. Yet the state of the housing stock is not improving. “Momentum Strategy” serves only to prevent the possibility of its noticeable deterioration. ⇒ The scenario “Enhancement Strategy” is essential to reduce the proportion of the housing stock - which does not need comprehensive repairs - down to 12%, while the implementation of the scenario “As in Europe” would help to make capital repairs to all the buildings of over 40 years before 2035.For this purpose the scopes of capital repairs must be at least doubled or even tripled as compared to the "Sluggish Strategy" scenario This can be achieved by increasing the percentage of the annually overhauled living space in apartment buildings to 3-4% and by increasing the percentage of comprehensive capital repairs to 75-90%; ⇒ Applying three different packages of capital repair measures has a rather moderate impact on the average unit costs of capital repairs per one m 2 The increment in expenditure on capital repairs according to the "Improvement Strategy" and "Like in Europe" scenarios is achieved mainly by an increase in physical quantities of capital repairs; ⇒ The implementation of the "Like in Europe" scenario alone will make it possible to practically and substantially improve the condition of apartment buildings and to implement capital repairs of all buildings in operation over 40 years and a major part of buildings in operation over 25 years until 2035. ⇒ This large-scale programme of capital repairs requires that the structure of their financing should be changed. Only a part of costs will be covered by way of introducing monthly mandatory payments to be made by residents. On the assumption that the amount of financing by governments at all levels is declining, and amid limited possibilities of financing the capital repairs via ESCO, the role of loans is becoming a determinant one. The Institute for Urban Economics (IUE) 13 Center for Energy Efficiency (CENEf) Housing Initiative for Eastern Europe (IWO) Institute Byvania (The Institute of Housing)

Russian Urban Housing Energy Efficiency Programme – Model Development Analyse the current state of the housing stock ⇒ With no budget financing or limited budget financing of capital repairs, the percentage of loans raised for these purposes, the debt service burden and the percentage of mandatory payments for capital repairs by the population will grow with the increasing percentage of buildings which have undergone capital repairs; ⇒ Savings on utility bills gained as a result of implementation of comprehensive capital repairs will allow to cover 11-18% of the total capital repair costs until 2035 within the period 2011- 2035 and, if the benefits from capital repairs are sustained for 25 years, 39-65% of the total capital repair costs may be recovered. Increase in the percentage of comprehensive capital repairs and implementation of institutional transformations allowing to significantly raise motivation for practical implementation of technically achievable energy saving benefits will substantially improve this indicator. The section 5 contains the results of the analysis of the 2009 statistical data on the area of dilapidated and emergency housing in the subjects of the Russian Federating, the total area of residential buildings which underwent capital repairs, and the unit cost of done capital repairs. The results of calculations of forecast evaluation of the volumes of capital repairs and the relevant costs for the period until 2035 for the subjects of the Russian Federation for each of three possible scenarios of capital repairs (divided into comprehensive repairs and selective repairs) has been included herein. The housing stock is unevenly distributed across the subjects of the Russian Federation. • The highest figures are encountered in Moscow, the , the and St. Petersburg. The lowest figures are encountered in the , the Chukotka Autonomous Okrug, the Republic of Altai, the and the Republic of . • The oldest housing stock among regions is in St. Petersburg (42 years), in the and (42 years), in the Trans-Baikal Krai, in the , in the Ivanovo Oblast and in the (41 years), in the , in the and in the (40 years). The "most recently built" housing stock is in the Republic of (19 years), in the Khanty-Mansijsk Autonomous Okrug (23 years), in the (25 years), in the Republic of Tatarstan (27 years), in the Yamalo-Nenets Autonomous Okrug, in the Republic of (28 years), in the Chuvash Republic and the Chukotka Autonomous Okrug (29 years). • Among the regions the highest percentages of unsafe and dilapidated housing stock are encountered in the Republic of Ingushetia (20.8%), Republic of (20.1%), Republic of Tuva (18.8%), Republic of Sakha-Yakutia (15.1%), the (11.1%) and the (10.1%). The lowest percentages of unsafe and dilapidated housing stock among federal districts are encountered in the (2.0%) and Southern Federal District (2.1%); Such figures being among regions for Moscow (0.3%), the Chechen Republic (0.4%), the Oblast (0.7%), St. Petersburg (0.7%), the (0.8%) and (0.9%) • The largest floor areas of buildings undergone capital repairs are encountered in Moscow (9.0%), for the Republic of Tatarstan (8.4%), for the Republic of Bashkortostan (6.7%), for the Chelyabinsk Oblast (5.6%) and for the (5.6%). The smallest renovated floor areas were encountered among the regions in the Karachayevo-Cherkessian Republic, the and the Republic of , the Stavropol Krai, the Tambov Oblast and the .

The Institute for Urban Economics (IUE) 14 Center for Energy Efficiency (CENEf) Housing Initiative for Eastern Europe (IWO) Institute Byvania (The Institute of Housing)

Russian Urban Housing Energy Efficiency Programme – Model Development Analyse the current state of the housing stock • According to statistical data, in 2009, the highest unit costs for capital repairs were registered in the Penza Region, the Kirov Region, the Arkhangelsk Region, the Novosibirsk Region, and the Krasnoyarsk Territory. The lowest unit costs were found in the Tomsk Region, the Republic of Tuva, the Chechen Republic and the Ivanovo Region. Although it is doubtful whether the statistical data on the cost of capital repairs could be considered reliable. • The forecast estimates of the volumes of capital repairs and the costs of capital repairs over the period until 2035 have been calculated for the subjects of the Russian Federation for three possible scenarios set out in Section 4. The section 6 is dedicated to the review of regulatory and legal documents with regard to state obligations toward capital repairs of apartment buildings, and to the practice of application of relevant documents. The recommendations on amending the law on privatization of housing stock have been proposed to ensure a more clear regulation of obligations of a former landlord of privatized premises. On the basis of the accepted assumptions, the amount of state obligations with regard to financing capital repairs of apartment buildings’ housing stock has been evaluated in monetary terms. The Russian Federation has found itself in an ambiguous legal situation with regard to the government obligations to finance capital repairs of apartment buildings. Expert evaluation of the current legislation with regard to the obligations of the former owner of privatized residential premises (the former landlord – the state or a municipality) in the context of financing capital repairs revealed the following: • The Constitutional Court arrived at a conclusion that "regulations governing the issues related to common property maintenance in an apartment building and establishing mandatory cost sharing for residential property owners in an apartment building for maintenance and repair of common property in an apartment building, are designed to maintain buildings in a state corresponding to sanitary and technical requirements and to meet the common interests of residential property owners and can not be regarded as violating the constitutional rights of the applicant." • The discrepancy between the Housing Code and the Law on Privatization as well as the absence of a procedure establishing obligations of former landlords (municipal and public authorities) entailed an unreasonably broad interpretation of Art. 16 of the Law on Privatization. It resulted in the emergence of the following public opinion: local self- governance bodies are obliged to conduct capital repairs of all apartment buildings, which had belonged to municipal (state) housing stock prior to privatization. This public opinion is reflected in the current judicial practices. • Article 16 of the Law on Privatization can not be currently applied in the meaning it had at the time of adoption and subsequent amendments. Application of Art. 16 of the Law on Privatization is possible only insofar as it is not contrary to the stipulations of the Housing Code of the Russian Federation on the procedure for implementation of capital repairs of apartment buildings (by resolutions of general meetings of residential property owners in apartment buildings) and Federal Law No. 131-FZ dated October 6, 2003 "On General Principles of Local Governance Organization in the Russian Federation", it means that not mandatory but eventual co-financing of expenditures on capital repairs of apartment buildings from the budget is established. In other words, municipalities have no obligation to, they rather can co-finance capital repairs of apartment buildings out of budget funds.

The Institute for Urban Economics (IUE) 15 Center for Energy Efficiency (CENEf) Housing Initiative for Eastern Europe (IWO) Institute Byvania (The Institute of Housing)

Russian Urban Housing Energy Efficiency Programme – Model Development Analyse the current state of the housing stock • Obligations of a former landlord to carry out capital repairs exist as long as the Law "On Housing Stock Privatization in the Russian Federation" is in force, and, as of today, it implies the period until March 1, 2013. • It is recommended to define the obligations of former landlords more precisely via making amendments to the Law on Privatization specifying the parties towards which such obligations emerge and the way and extent of fulfillment of such obligations. • According to the estimates, state obligations have not been met with regard to capital repairs of the total of 289 million sq. m. of apartment buildings (i.e. , 13% of apartment buildings’ housing stock) According to the estimates, as of the end of 2010, the amount of state obligations, in monetary terms, was as mentioned below: • 956 billion rubles towards capital repairs undertaken to eliminate dilapidation; • 1,444 billion rubles towards capital repairs which involved the fulfillment of requirement to energy efficiency improvement.

The Institute for Urban Economics (IUE) 16 Center for Energy Efficiency (CENEf) Housing Initiative for Eastern Europe (IWO) Institute Byvania (The Institute of Housing)

Russian Urban Housing Energy Efficiency Programme – Model Development Analyse the current state of the housing stock

INTRODUCTION

The present report has been prepared in accordance with requirements set forth in the Terms of References for Consultancy Contract No: C22341/GEF2-2011-07-04 of July 18, 2011 concluded by the European Bank for Reconstruction and Development (hereinafter EBRD) and the Institute for Urban Economics under the Russian Urban Housing Energy Efficiency Programme – Model and Regulatory Framework Development (hereinafter Project). Project is implemented by the Institute for Urban Economics (IUE) of the Russian Federation in association with Center for Energy Efficiency (CENEf), Russia, Housing Initiative for Eastern Europe (IWO e.V.), Germany, and the Institute of Housing (Institute Byvania), Slovakia (hereinafter Consultant). In compliance with the Terms of Reference (ToR), Phase I of the Project envisages the development of mechanisms of financing and expert analysis of their potential impact on public expenditures and condition of the housing stock. The first Task under this Phase shall be the expert analysis of the current condition of Russian housing stock (Task 3.1, according to the ToR). Expert analysis shall comprise the following components: The analysis shall include: 1. A prognosis of the dynamics of the future requirements concerning the capital repairs, access to utilities and an increase of the energy efficiency of the housing stock. 2. The total cost forecast of repairing the housing stock in Russia to modern international standards. The costs should be broken down by type (capital, maintenance, operation), region and type of dwelling. The cost forecast should have a specified timeline for implementing the repairs. 3. Specification of the size of the state obligations concerning capital repairs of the housing stock resulting from the privatization of the housing stock in accordance with Article 158 of the Housing Code of the Russian Federation and Law No 1541-1 dated 4 July 1991 entitled ‘On the Privatization of the Housing Stock of the Russian Federation’. The present Report describes the results of the expert analysis. All analytical calculations and projections are based on the official statistics. In a number of cases we used the data of the Fund for the Promotion of the Housing and Utility Sector Reform. In addition, we took into account the requirements set forth in regulatory documents for the list of works and minimum effectiveness of works relating to capital repairs of residential buildings. On this base a list of key activities relating to capital repairs was composed, and such activities were divided into three packages. For each package expenditures were estimated with a breakdown by types of works and types of residential buildings, and the level of utility resources saving was assessed, which is attained through the implementation of these packages of activities. A scenario forecast was made for execution of works relating to capital repairs. Three scenarios of the scope of capital repairs and their dynamics were reviewed: “sluggish development strategy”, “improvement strategy” and “Like in Europe” strategy.

The Institute for Urban Economics (IUE) 17 Center for Energy Efficiency (CENEf) Housing Initiative for Eastern Europe (IWO) Institute Byvania (The Institute of Housing)

Russian Urban Housing Energy Efficiency Programme – Model Development Analyse the current state of the housing stock The forecast contains a schedule for repair works execution, distribution of expenditures time- wise and their breakdown by possible sources of financing. In addition, projected scope of works relating to capital repairs and relevant expenditures were estimated with regard to various regions of the Russian Federation. The expert analysis of Russian legislation, which specifies the obligations of the state (municipalities) as former landlords of residential premises in the privatized housing stock with regard to financing capital repairs of apartment buildings, revealed an ambiguous interpretation of the current legislation and discrepancies between the provisions of the Housing Code and the Law on Privatization of the Housing Stock, as well as highlighted the necessity of making amendments to the Law on Privatization to clarify the obligations of the former landlord. On the basis of statistical data and accepted assumptions the amount of state obligations towards capital repairs of apartment buildings, which were undertaken by the state, being the former landlord of privatized residential premises, have been calculated.

The Institute for Urban Economics (IUE) 18 Center for Energy Efficiency (CENEf) Housing Initiative for Eastern Europe (IWO) Institute Byvania (The Institute of Housing)

Russian Urban Housing Energy Efficiency Programme – Model Development Analyse the current state of the housing stock

SECTION 1. REVIEW OF THE CURRENT STATE OF THE HOUSING STOCK IN THE RUSSIAN FEDERATION

This section includes an analysis of the current state of the RF housing stock performed on the basis of official statistical data. The dynamics of the housing stock’s total area has been analyzed; the structure of the housing stock has been evaluated in terms of service life of buildings, their walling material, level of amenities provision, and forms of ownership of residential premises. The data with regard to the volume of done works of capital repair of national and regional housing stocks has been analyzed. The results of evaluated demand for capital repairs have been set out herein. The indicators describing energy consumption by and energy efficiency of the housing stock have been included in this section; the energy saving potential has been evaluated.

1.1 DYNAMIC AND STRUCTURE OF THE HOUSING STOCK IN THE RUSSIAN FEDERATION

The housing stock of the Russian Federation amounted to 19,650 thousand buildings of the total floor space 3,177 mln. m2 as of 2009 year end, of which quantity 2,293 mln. m2 (72%) accounted for urban settlements and 884 mln. m2 (28%) – for rural areas2. The housing stock included 3,224 thousand apartment buildings of the total floor space 2,237 mln. m2 and 16,426 thousand individual residential houses of the total floor space 974 mln. m2. In 2000-2009, the whole housing stock increased by 14%. Its dynamics determined by the commissioning and retirement of residential premises for different reasons (Fig. 1.1). The housing stock grew faster (+15.3%) in rural areas than in urban settlements (+13.5%), whereas the number of individual residential houses increased at a higher rate than the number of apartment buildings. In 2000, the rate of growth of the housing stock was 0.6% but in 2008-2009 this value came to 1.7-1.8% or 54-55 mln. m2 per annum. The average per capita housing occupational rate in 2009 amounted to 22.4 m2, however in urban settlements this figure accounted for 22.1 m2 vs. 23.1 m2 – in rural areas. As compared to 2000, the average per capita housing occupational rate increased by 17% not only due to the commissioning of completed housing but also as a result of population decline. The average size of the total floor space was approximately 700m2 in an apartment building and 60m2 – in an individual residential house. That is, according to the housing stock statistics, an average apartment building in Russia includes 14-16 apartments. The total area of the housing stock does not include country houses (dachas) and garden cottages for summer accommodation. It does not include non-residential premises in residential buildings either. The area of residential premises in a typical residential building makes up approximately 75% of the building floor space. The remaining percentage falls on common areas and non- residential premises. In other words, the floor space of residential buildings exceeds the housing stock floor space by approximately one third. Consequently, neither the floor space of residential buildings (72.5 mln. m2) nor the floor space of apartment buildings (59.9 mln. m2) commissioned in the Russian Federation in 2009 determine gain in the residential stock floor space due to housing production but the balance sheet indicator used to determine the current status of the housing stock – the growth of the housing stock due to newly constructed units.

2 Indicators characterizing the living conditions of the population are generated on the basis of statistical survey forms: No.1-zhilfond “The Housing Stock Data”, No.4-zhilfond “Data on Providing Residential Premises to Citizens”, No.1-KR “Data on Capital Repairs of the Housing Stock”. The Institute for Urban Economics (IUE) 19 Center for Energy Efficiency (CENEf) Housing Initiative for Eastern Europe (IWO) Institute Byvania (The Institute of Housing)

Russian Urban Housing Energy Efficiency Programme – Model Development Analyse the current state of the housing stock

Figure 1.1 Factors determined the housing stock dynamics

100000 Non-residential units moved to the residential category

Housing stock growth for other reasons 80000 Housing stock growth due to stock-taking 60000 New housing production

40000 Housing retired due to stock-taking

Housing demolished in line with the master plans 20000 Housing destructed in the result of natural disasters

thou.m2 0 Dilapidated and unsafe housing demolished

-20000 Housing retired for other reasons

Residential units moved to the non-residential category -40000 Housing stock growth -60000 20022003 2004 2005 2006 2007 2008 2009

Source: Rosstat data. Form“1-zhilfond” Besides newly constructed units, the housing stock grows in the result of moving non-residential premises to the category of residential ones, stock-tacking, and for other reasons. Only in case of the former the housing stock area actually grows. The area of residential premises decreases due to demolition of dilapidated and unsafe buildings, destructions caused by natural disasters, demolitions carried out in line with master plans and other town planning documentation, change of the residential premises status from residential to non-residential, retirement for any other reasons, as well as in the result of stock-tacking. Only in the first three cases buildings cease to exist. The rate of the residential premises growth due to moving non-residential premises to the residential category is 0.1-0.4% per annum. That is, the housing stock dynamics is essentially determined by the ongoing processes of housing production and demolition (Fig. 1.1). In 1990th, the rate of growth of the housing stock area became significantly slower and remained at the low level until 2005. Then this parameter began growing and reached the average level of the 1980th in 2007 (Fig. 1.2).

The Institute for Urban Economics (IUE) 20 Center for Energy Efficiency (CENEf) Housing Initiative for Eastern Europe (IWO) Institute Byvania (The Institute of Housing)

Figure 1.2 Annual (average annual) growth of the housing stock floor space and dynamics of the dilapidated and unsafe housing share

Source: Rosstat data Annual (average annual) growth ratio of the housing stock area and dynamics of the dilapidated and unsafe housing stock share. The house commissioning dynamics affected the distribution of residential buildings by operating life with the distribution curve dip in 1995-1999 (Fig. 1.3). Individual residential buildings whose operating life in 2009 exceeded 25 years accounted for 80.1%, apartment buildings of the same age – for 75.8%, whereas the total floor space of residential premises being in use for over 25 years – 60%. The less percentage of the last indicator is due to a noticeably larger average floor space available in newly built residential houses. The percentage of buildings constructed prior to 1995 exceeds 90% in 43 regions of Russia. Of this quantity, residential houses built prior to 1970 dominate (Fig. 1.4, Annex 1 table1). It is natural that a slower rate of housing production led to ageing of the housing stock, whereas quasi-capital repairs of the latter caused the growth of the share of dilapidated and unsafe housing up to 3.1%. The average age of Russian buildings equals to 42 years. This figure is significantly higher than the same indicator in Japan (30 years), comparable to the same indicator estimated for USA and Germany (44 years), but much lower than that in Great Britain (approx. 60 years)3. In 2009, 6% of individual residential houses and 8.7% of apartment buildings, both amounting to 3.7% of the floor space of all residential buildings, were deteriorated at more than 66%.

3 Promoting energy efficiency investments. Case studies in the residential sector. OECD/IEA. Paris. 2008. The Institute for Urban Economics (IUE) Center for Energy Efficiency (CENEf) Housing Initiative for Eastern Europe (IWO) Institute Byvania (The Institute of Housing)

Figure 1.3 Distribution of buildings and residential area by year of construction in 2009

Source: Rosstat data

After 2005 the area of dilapidated housing began going down and in 2009 it came to 80 mln. m2. However they failed to stop the growth of the unsafe housing share which amounted to 19.4 mln. m2 in 2009. The share of dilapidated and unsafe individual residential houses in 2009 equaled to 4.5%, whereas the share of apartment buildings – to 2.5%. The highest percentage of dilapidated and unsafe housing can be seen in the Republic of Ingushetia (20.8%), Republic of Dagestan (20.1%), Republic of Tyva (18.8%), Republic of Sakha (Yakutia) (15.1%), Magadan Oblast (11.1%), Astrakhan Oblast (10.1%), (9.9%), Nenets Autonomous District (9.4%), (9.1%), Republic of Komi (9.0%), Yamal-Nenets Autonomous District and Jewish Autonomous Oblast (8.6%). In 2009, 2.9 mln. m2 of dilapidated and unsafe housing (i.e. 2.9% of the total area of the dilapidated and unsafe housing stock) were demolished in the Russian Federation.

The Institute for Urban Economics (IUE) Center for Energy Efficiency (CENEf) Housing Initiative for Eastern Europe (IWO) Institute Byvania (The Institute of Housing)

Figure 1.4 Distribution of residential area by year of construction in Russian regions in 2009

Chukotka Autonomous District Yamal-Nenets Autonomous District St. Petersburg Republic of Dagestan Republic of Sakha (Yakutia) Republic of Tatarstan Republic of Bashkortostan Republic of Kaliningrad Oblast Oblast Southern Federal District Republic of Kalmykia Republic of Tyva Russian Federation Republic of Kabardino-Balkaria Chelyabinsk Oblast Far Eastern Federal District Perm Krai Siberian Federal District Vladimir Oblast Nenets Autonomous District Zabaikalski Krai Nizhni Republic of Krai Orlov Oblast Tver Oblast Ryazan Oblast Tambov Oblast Amur Oblast Jewish Autonomous Oblast

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

before 1920 1921-1945 1946-1970 1971-1995 after 1995 2009 Source: Rosstat data and Consultant’s estimates Over 84% of the residential stock in Russia is privately owned, of which quantity 81% became citizens’ ownership due to privatization. Individual residential houses accounted for 31% of the The Institute for Urban Economics (IUE) Center for Energy Efficiency (CENEf) Housing Initiative for Eastern Europe (IWO) Institute Byvania (The Institute of Housing)

Russian Urban Housing Energy Efficiency Programme – Model Development Analyse the current state of the housing stock residential stock in 2009. Most of these houses (97%) belong to citizens by the right of ownership. Privately owned apartments in apartment buildings account for 76%. The share of the private residential stock on the whole and especially the share of privately owned apartments in apartment buildings is much higher than in most developed countries, which makes it difficult for many households to get approval for carrying out capital repairs and implementing energy efficiency projects. Early in 2000th the share of privately owned housing accounted for 43% in Germany, 60% – in Japan, and 56% – in France. In the latter case, of this quantity, privately owned individual residential houses accounted for 80%, whereas only 25% of apartments in apartment buildings were citizens’ ownership. The share of social housing in apartment buildings made up 37%. Approximately only 20% of households in France reside in co-ownership housing, which is four (4) times less than in Russia4. Estimates by the number of buildings show that wooden individual residential houses, whose share in the housing stock comes to 47% (Fig. 1.5), prevail over all other residential buildings. Wooden houses along with apartment buildings account for 54% of the housing stock; however, the share of wooden houses in residential floor area comes to 21% only. Figure 1.5 Distribution of buildings by walling

Source: Rosstat data. Form“1-zhilfond”

Estimates by residential floor area show the domination of buildings made of brick and stone whose share in the total floor space of the housing stock comes to 40%. Prefabricated panel and block houses account for 25.8% and 5.4% of residential floor area respectively. The share of stone, brick, prefabricated block, and monolith houses is steadily growing, whereas the share of wooden and prefabricated panel houses is going down due to demolition and for other reasons.

4 Promoting energy efficiency investments. Case studies in the residential sector. OECD/IEA. Paris. 2008 The Institute for Urban Economics (IUE) 24 Center for Energy Efficiency (CENEf) Housing Initiative for Eastern Europe (IWO) Institute Byvania (The Institute of Housing)

1.2 DYNAMICS OF THE LEVEL OF COMFORT OF THE HOUSING STOCK IN THE RUSSIAN FEDERATION

The average nationwide share of comfortable housing (equipped with the systems of water supply, sewage disposal (sewerage), heating, hot water supply, gas supply or floor standing electrical stoves) comes to 61.4%. In 2000-2009, this share increased by 12 percentage points. The level of comfort in apartment buildings can fairly enough be defined through indicators of the municipal housing stock comfortability (Fig. 1.6). In 2009, 89% of the municipal housing stock were connected to the main water supply system, 87% - to the sewerage mains, 92% - to the heating mains, and 80% - to the hot water supply system. The lowest level of comfort can be seen in apartment houses built prior to 1920. Only 1- 2% of them are equipped with hot water supply. For houses built within 1921-1945 this share goes up to 45% and for those built within 1946-1970 comes to approximately 67%. Figure 1.6 Level of comfort of the municipal housing stock

Source: Rosstat data

1.3 DYNAMICS OF THE NEEDS FOR CAPITAL REPAIRS AND CAPITALLY REPAIRED HOUSING STOCK

The problem of the housing stock deterioration should be solved through its capital repairs and upgrade. In Russia, the main source of data on capital repairs of the housing stock is the statistical Form No.1-KR “Data on Capital Repairs of the Housing Stock” to be submitted by legal entities – management companies. This Form reflects mainly the scope of works and expenditures for capital repairs of apartment buildings. Only 5-10% of capital repairs account for individual residential houses. There are various definitions of what is capital repair of a residential building. Generally, it is understood as a package of repair and construction works aimed to eliminate defects in deteriorated building parts, to repair or replace them in order to restore the usability of the building with its performance characteristics being improved, which is to ensure an adequate level of the building reliability and comfort for living.

The Institute for Urban Economics (IUE) Center for Energy Efficiency (CENEf) Housing Initiative for Eastern Europe (IWO) Institute Byvania (The Institute of Housing)

Russian Urban Housing Energy Efficiency Programme – Model Development Analyse the current state of the housing stock Capital repairs can be comprehensive and selective. Comprehensive capital repairs cover the whole building or facility, deteriorated parts are replaced by new and the most up-to-date ones. Alteration of the building interior may be carried out at the same time so as to enhance the level of comfort. Selective capital repairs include the repairs or replacement of some building parts or a certain utility system, as well as the scope of other works that cannot be postponed until comprehensive capital repairs. Unfortunately, the Russian statistics does not distinguish comprehensive and selective capital repairs. Implicitly, the share of comprehensive repairs can be concluded from the ratio of the “floor space of capitally repaired premises in apartments” indicator to the “floor space of capitally repaired residential buildings”. This share grew up to 40% in 2009 (Fig. 1.7). According to the Year 2010 Report submitted by the state corporation “The Fund for the promotion of the Housing and Utility Sector Reform”, the share of comprehensive capital repairs in the Fund’s projects accounted for 13% in 20105. Since the average cost of capital repairs of residential building under the Fund’s projects amounted only to 800 RUR/m2 in 2009 vs. the average nationwide value under all capital repairs projects equal to 3,340 RUR/m2, it is evident that the share of comprehensive capital repairs in the nationwide statistics is higher than in the Fund’s projects. First of all, this is due to Moscow city program of apartment buildings capital repairs which is not co-financed by the Fund. Nevertheless the figure 40% for nationwide comprehensive capital repairs in 2009 obviously looks overstated. Figure 1.7 Dynamics of the floor space of capitally repaired apartment buildings in 2000- 2009

Source: Consultant’s estimates based on Rosstat data The operating life of buildings and facilities is determined by the endurance capability of the main load bearing structures: foundations, walls, ceilings. By the durability factor residential buildings divide into six groups, with the average operating life ranging from 15 to 150 years. Operating life of parts of residential buildings differs greatly. Thus, the minimum operating life

5 Year 2010 Annual Report of the state corporation “The Fund for the Promotion of the Housing and Utility Sector Reform”. The Fund for the Promotion of the Housing and Utility Sector Reform. 2011. The Institute for Urban Economics (IUE) 26 Center for Energy Efficiency (CENEf) Housing Initiative for Eastern Europe (IWO) Institute Byvania (The Institute of Housing)

Russian Urban Housing Energy Efficiency Programme – Model Development Analyse the current state of the housing stock of parts of a residential building prior to its capital repairs is defined as follows: from 30 to 80 years for foundations, walls, ceilings, frames, stairs, doorsteps; from 30 to 150 years for foundations; from 3 to 30 years for interior finishing; from 10 to 30 years for roofs, roofing, and entrance doors6. Depending on the materials of main building parts and operating conditions, the minimum duration of efficient use of residential buildings varies from 10 to 25 years prior to scheduled capital repairs and from 2 to 5 years prior to scheduled current repairs. The statistics gives two indicators for capital repairs: the “floor space of capitally repaired residential buildings” and the “floor space of capitally repaired premises in apartments”. The latter is also known as the “capitally repaired floor space in residential buildings” indicator used in some statistical publications, which causes confusion. In 1970-1980s, this indicator accounted for approximately 3% of the whole housing stock (Fig. 1.8). In 1990s the scope of works on capital repairs of the housing stock sharply went down. They began growing after establishing the Fund for the Promotion of the Housing and Utility Sector Reform in 2007; however, even in 2009 the scope of works on capital repairs of apartments was 3.2 times lower than in 1980. The rate of capital repairs of the housing stock reduced to 0.16-0.17% in the mid2000s and grew up to 0.55% in 2009, still remaining 5.5 times lower than in 1980. In 1970-80s residential buildings were capitally repaired once every 30 years on average, but in 1990-2000s – rarer than once every 100 years. It should be noted that capital repairs of apartments is not a meaningful indicator today because the most of apartments are privately owned and the owners do not submit information on capital repairs of their apartments. In the soviet time apartments were owned by the state. They were provided to citizens under tenancy agreements and housing organizations were responsible to carry out capital repairs of apartments and report on that to the state statistics authorities. Figure1.8 Dynamics of the floor space of capitally repaired premises in apartments in 1970- 2009

Source: Rosstatdata Fig. 1.9 (Annex 1 Table 2) shows uneven distribution of the scope of capital repairs among Russian regions in 2009. The leaders are Moscow, Tatarstan, and Bashkortostan with a 25% share in all capital repairs. In 2009, 8.5% of the whole housing stock were capitally repaired in Chelyabinsk Oblast, 8% – in Ivanovo Oblast; in 15 regions this parameter exceeded 3% and in 44 regions it was less than 1% (Annex 1 table 2).

6 Departmental building regulations ВСН 58-88 (р) (State Committee for Architecture and Town Planning Order No.312 as of 23.11.1988). The Institute for Urban Economics (IUE) 27 Center for Energy Efficiency (CENEf) Housing Initiative for Eastern Europe (IWO) Institute Byvania (The Institute of Housing)

Figure 1.9 Floor space of capitally repaired apartment buildings in 2009, by RF constitutional entities

Source: Consultant’s estimates based on Rosstat data According to the Rosstat’s data (Form No.1-KR “Data on Capital Repairs of the Housing Stock”), approximately 282.9 thousand apartment buildings (i.e. 9% of the total number of apartment buildings) needed capital repairs as at the beginning of 2009. The need for capital repairs can be estimated differently: by minimum, i.e. assuming that the average operating life of The Institute for Urban Economics (IUE) Center for Energy Efficiency (CENEf) Housing Initiative for Eastern Europe (IWO) Institute Byvania (The Institute of Housing)

Russian Urban Housing Energy Efficiency Programme – Model Development Analyse the current state of the housing stock an apartment building is 40 years or by maximum, i.e. assuming that the average operating life of an apartment building is 25 years. The size of the housing stock whose operating life exceeds 25 and 40 years will steadily grow and the average operating life of a residential building will extend to 50 years by 2035 (Fig. 1.10). The dynamics of buildings that need capital repairs will depend on the dynamics and the type of capital repairs in 2011-2035. The dynamics of the floor space that need capital repairs is estimated on the assumption that 2% of the apartment buildings floor space is capitally repaired every year under comprehensive capital repairs projects. Figure 1.101 Dynamics of the apartment buildings floor space by operating life, area of premises that need capital repairs, and average age of apartment buildings in 2000-2035

Source: Consultant’sestimates

The Consultant made estimates using the estimate model of capital repairs of housing stock, which takes into account the dynamics of the housing stock, its age structure, and capital repairs done before. In 2009, the residential space in apartment buildings of over 25 years accounted for 1,416 mln. m2 and 751 mln. m2 – in buildings whose age exceeded 40 years or, in percentage terms, 63% and 34% of the multi-apartment housing stock respectively. In the case when the operating life of an apartment building prior to capital repairs is taken as 40 years, 1,374-1,398 thousand apartment buildings or 645-660 mln. m2 required comprehensive capital repairs and 171-410 thousand apartment buildings or 80-193 mln. m2 required selective capital repairs in 2009. The figures of comprehensive capital repairs are higher because selective repairs of some building parts and utility systems dominated in 1990-2000s. The average value in the last range is comparable to the figure of 283 thousand apartment buildings stated in Form No.1-KR. It means that actually the need for capital repairs of apartment buildings is estimated on the basis of the average operating life of an apartment building prior to capital repairs equal to 40 years and considering selective capital repairs completed before. If the average operating life of an apartment building is taken 25 years, comprehensive capital repairs are required for 2,120-2,196 thousand apartment buildings or 1,314-1,361 mln. m2 , whereas selective capital repairs are The Institute for Urban Economics (IUE) 29 Center for Energy Efficiency (CENEf) Housing Initiative for Eastern Europe (IWO) Institute Byvania (The Institute of Housing)

Russian Urban Housing Energy Efficiency Programme – Model Development Analyse the current state of the housing stock required for 1,400-1,219 thousand buildings or 868-756 mln. m2. If the rate of comprehensive capital repairs is 2% of the apartment building floor space per annum, it is possible to keep the residential space subject to capital repairs close to Year 2009 level. With the less percentage value, the residential space subject to capital repairs will rise. In 2009 capital repairs were carried out in 72.3 thousand apartment buildings, which accounts for 25.6% of the need for capital repairs estimated on the basis of Rosstat data. Capital repairs of 60% (or 43.7 thousand) of apartment buildings were carried out with the support of the Fund for the Promotion of the Housing and Utility Sector Reform. The rest 28.6 thousand apartment buildings were repaired with the use of funds of regional and local budgets as well as owners of residential premises. The scope and type of capital repairs are regulated by Clause 3, Article 15 of Federal Law No.185-FZ “On the Fund for the Promotion of the Housing and Utility Sector Reform”. The statistics makes it possible to estimate the actual volumes only of repaired facades and roofs (Fig. 1.11)7. Figure 1.11 Dynamics of the area of facades and roofs capitally repaired in 2000-2009

Source: Consultant’s estimates based on Rosstat data

1.4 VOLUME AND PATTERN OF ENERGY AND WATER CONSUMPTION BY RESIDENTIAL BUILDINGS

Energy consumption by the RF residential buildings is registered within the two lines of the unified fuel and energy balance of Russia: “population (residential stock)” insofar as it applies to the energy use in the residential premises and “services provided” insofar as it applies to energy use by non-residential premises and for the general residential purposes. Energy consumption by the population in 2009 is given in Table 1.1. The non-residential and general purpose consumption account for 10-12% of the total residential consumption, i.e. the total 2009 residential consumption would be TOE 165 mln. Nearly 62% are accounted for by the heating, another 20% - by the hot water supply, while other needs account for approximately 19%. The structure of the EU energy consumption by the population is quite similar: heating – 67%, hot water supply – 18%, other needs – 15%. Russia’s distinguishing characteristic is that the heating (56%) and hot water supply (69%) are dominated by the central heating, while the same accounts for 12%8 only in Europe.

7 Statistical form “1-KP” contains data on capital repairs in physical units only with regard to facades, roofings and elevators. 8 Promoting energy efficiency investments. Case studies in the residential sector. OECD/IEA. Paris. 2008. The Institute for Urban Economics (IUE) 30 Center for Energy Efficiency (CENEf) Housing Initiative for Eastern Europe (IWO) Institute Byvania (The Institute of Housing)

Russian Urban Housing Energy Efficiency Programme – Model Development Analyse the current state of the housing stock Table 1.1 Energy consumption by RF population in 2009 (TOE thousand) Coal Petroleum Natural Other Electric Heating Total Share,

products gas fuels power % Heating 2,805 36,507 635 402 51,804 92,154 61.9% Hot water 449 8,040 449 20,330 29,268 supply 19.7% Other 13108 14047 27509 needs 355 18.5% Total 2,805 804 57,655 635 14,898 72,135 148,932 100.0% Share, % 1.9% 0.5% 38.7% 0.4% 10.0% 48.4% 100.0% Source: Consultant’s estimates

The pattern of energy consumption in residential buildings could be illustrated by a selection of the data on the 44 residential buildings of the energy efficient neighborhood in Tyumen (Fig. 1.12). It is dominated by the heating energy accounted for by 85.7%, followed by the electric energy consumption (13.7%), natural gas (0.5% only). Heating of the buildings accounts for 53.8%, ventilation - for 1%, hot water supply – for 30.6%, cooking - for 2.3%, lighting of the common areas - 0.8%, other – operation of the tenants’ and owners’ electrical appliances. Figure 1.12 Pattern of energy consumption in apartment buildings of the energy efficient neighborhood in Tyumen in 2009

Source: Consultant’ssestimates

An integral indicator of energy efficiency of residential buildings is unit specific consumption of all types of energy in the building for all purposes calculated to 1 m2 of the general area per annum. Average decline of unit specific consumption in Russia was minor: from 49 kgCe.m2 a year (398.5kWh/m2 a year) in 2000 to 47 kgCe.m2 a year (382.2 kWh/m2 a year) in 2009. Such decline recalculated to degree per day of the heating period was 9% only. Energy efficiency improvement was partially offset by enhancement of the housing quality, higher use of domestic appliances and growth of low-rise construction share.

The Institute for Urban Economics (IUE) 31 Center for Energy Efficiency (CENEf) Housing Initiative for Eastern Europe (IWO) Institute Byvania (The Institute of Housing)

Russian Urban Housing Energy Efficiency Programme – Model Development Analyse the current state of the housing stock Distribution of residential buildings on the basis of their energy efficiency level for heating purposes is described by the standard “slope of wasteful energy consumption” function (Fig. 1.13). Figure 1.13 Standard distribution of residential buildings by unit specific consumption of heat energy for heating purposes (“slope of wasteful energy consumption”)

900 800 700 600 least efficient 500 moderate efficiency 400 energy efficient 300 kWh/m2/year 200 100 0 0 3 10 20 31 47 60 76 81 85 number of apartment buildings

Source: Consultant’s estimates

Consultant’s many years of experience show that such functions of distribution of the building per their energy efficiency level are standard. They are comprised of three components. The first component describes lower unit specific consumption of the most energy efficient buildings constructed during the latest years under the new Building Code (SNiP). The second reflects practically linear distribution of the buildings by energy efficiency parameters in the middle part of the graph depending on the heat-retention properties of the buildings, number of floors, compactness, term and duration of operation, etc. The third – high unit specific consumption of a relatively small share of the least energy efficient buildings (as a rule, this is dilapidated and unsafe housing). This distribution corresponds to distribution of the buildings by year of construction including the differences in walling, the number of floors (Fig. 1.14) and distribution by time of tightening of the requirements to thermal protection of the constructed buildings (Fig. 1.15). As the energy balance of the residential buildings is dominated by heat energy consumption, it is only natural that the lowest unit specific energy consumption is characteristic of new buildings where heat insulation was designed in accordance with the requirements of SNiP 23-02-2003 “Thermal protection of buildings” and the Regional Construction Norms (TCN) and that are equipped with the bulk meters. On the contrary, unit specific energy consumption of the buildings of the earlier mass series is relatively high.

The Institute for Urban Economics (IUE) 32 Center for Energy Efficiency (CENEf) Housing Initiative for Eastern Europe (IWO) Institute Byvania (The Institute of Housing)

Figure 1.14 Correlation of unit specific energy consumption with year of construction of residential building

Source: CENEf’sestimates

Share of old buildings decreases and that of the new, more efficient buildings, increases as the new buildings are constructed and dilapidated buildings are demolished. Thus, the average- weighted specific energy consumption for heating purposes decreases accordingly. Heat energy losses of the existing residential buildings change due to degradation of the residential buildings’ envelope (as these deteriorate), as well as due to insulation and repair of the envelope within the framework of comprehensive capital repairs and equipment of the buildings with the metering and control units. Figure 1.15 Dynamics of requirements to thermal protection of buildings in USSR and then in Russia depending on year of approval of the Building Code (SNiP) (the 1900-1945 data are estimates, 1954=100%)

Source: Consultant’s estimates9

An important component of the capital repairs is equipment of the buildings and apartment with the meters. Coverage of the Russian apartment buildings with bulk meters in the mid-2009 was 8% in terms of heating, 11% - cold water supply, 7% - hot water supply, 21% - energy supply,

9Calculated in accordance with the data presented inYu.А.Matrosov.Energy Saving in Buildings.ProblemandSolutions.NIISF.2008. Italsopresentsareviewoftherequirementstothermalprotectionandclimatologyofthebuildings erected in the USSR in 1929, 1932, 1936, 1939, 1946, 1954, 1958, 1962, 1972, 1979, and then in Russia in 1999, 2003 and 2004. The Institute for Urban Economics (IUE) Center for Energy Efficiency (CENEf) Housing Initiative for Eastern Europe (IWO) Institute Byvania (The Institute of Housing)

Russian Urban Housing Energy Efficiency Programme – Model Development Analyse the current state of the housing stock 0.9% - gas supply. Coverage with apartment meters was 1% for heating, 22% for cold water supply, 19% for hot water supply, 80% for energy supply and 5% for gas.10 Capital repairs of the residential buildings in Russia use more and more energy efficient windows and heat insulation materials. In the European Union the energy efficient windows in 2004 was 47%, while in Germany and Austria – around 90%. Energy efficient windows share in Russia is around 20-30% in general and 30-40% in the cities.

1.5 ESTIMATION OF THE VOLUMES AND CONDITIONS OF ENERGY SAVINGS RESULTING FROM CAPITAL REPAIRS OF RESIDENTIAL BUILDINGS

Capital repairs under comprehensive energy-saving projects allow partial cutting of the “wasteful energy consumption slope” and significant reduction of the “red zone”. As heat energy accounts for 80-86% of the entire energy consumption by an apartment building, the principal objective of capital repairs is reduction of the heat energy consumption. The average energy saving potential of apartment buildings is equal to or exceeds the heat energy indicator by 40%, electric power – by 37%, natural gas – by 30%, water – by 25%. It is lower for the new buildings and is significantly higher for the older buildings (Fig. 1.16). Its relative value is affected by the number of floors in the building, material of the walls, its condition and quality of the heat and energy supply regulation. Figure 1.162 Rating of residential buildings of the energy efficient neighborhood in Tyumen by unit specific energy consumption and energy saving potential

Source: CENEf’sestimates

10 Residential sector and provision of everyday services to the population in Russia. 2010. Statistics Book. Rosstat. 2010. The Institute for Urban Economics (IUE) 34 Center for Energy Efficiency (CENEf) Housing Initiative for Eastern Europe (IWO) Institute Byvania (The Institute of Housing)

Russian Urban Housing Energy Efficiency Programme – Model Development Analyse the current state of the housing stock Average-weighted consumption of all energy types in the residential buildings equals 48.7 kgCe/m2/year. Full implementation of the energy saving potential may reduce unit specific energy consumption in all residential buildings to 29.2 kgCe/m2/year or by 40%. It is not only savings potential that is of importance but also the conditions of its implementation as a result of capital repairs. Heat energy consumption measurements taken in Moscow after comprehensive capital repairs of residential buildings showed that only one third of the potential is realized. While the expected energy saving is 40-60%11, actual saving is only 14-17%, i.e. approximately 30% of the design savings are lost during operation of a residential building. Comprehensive capital repairs projects must provide for reduction of the heating radiators’ surface. If it is ignored, then the design-level savings could be attained through a change of temperature charts in the controllers of the automatic control unit or the domestic heating plant. Experience of resetting the controller to a varied temperature chart shows that this measure may result in savings close to the design-level figures12. Furthermore, the experiment of full implementation of the designed energy saving measures showed that if thermostatic regulators are installed, heat energy consumption for heating purposes in the capitally repaired buildings exceeded the design level by 30-40% as the maximum setting of the thermostatic regulators is +26оС, these are not adjusted to the internal temperature degrees and are not used by households for temperature regulation in the residential buildings. Cost estimates of the capital repairs projects are overstated as they include excessive equipment. Thus, according to Mosgorekspertiza estimates, cost of an automatic control unit could be reduced three-fold13. Economic interest of both managing companies and owners of the residential premises in energy savings resulting from capital repairs are required to ensure full potential economy.

1.6 LEVEL OF AFFORDABILITY OF HOUSING AND UTILITY SERVICES

Possibility of introduction of additional payment for capital repairs largely depends on the existing level of affordability of housing and utility services. Share of such costs within the total expenditure of the population increased from 4.6% in 2000 to 8.7% in 2010. Over the last three years it increased for all income groups (Fig. 1.17).

11 А.М. Filippov. Energy efficiency balance of residential buildings. Theory and Practice. “Energosberezheniye”. No. 4, 2011. 12 V.I. Livchak and А.D. Zabegin. Bridging the gap between energy efficiency policy and actual saving of energy resources. «Energosberezheniye». No. 4, 2011. 13 Ibid. The Institute for Urban Economics (IUE) 35 Center for Energy Efficiency (CENEf) Housing Initiative for Eastern Europe (IWO) Institute Byvania (The Institute of Housing)

Figure 1.17 Share of rent and utility payments

Source: Consultant’s estimates based on Rosstat data

1.7 COST OF CAPITAL REPAIRS OF APARTMENT BUILDINGS

According to statistics, cost of capital repairs of the housing was RUR 143.7 bln in 2009, including RUR 137.5 bln – capital repairs of the apartment buildings. In 2003-2009 cost of capital repairs of the apartment buildings increased by 2.6 times. Given doubling of the construction work cost over this period, the expenditure growth rate in comparable values equals to 30%. According to the Fund for the Promotion of the Housing and Utility Sector Reform, expenditures for capital repairs of apartment buildings under the Fund’s projects in 2008 was RUR 57.9 bln, RUR 93.4 bln in в 2009 and RUR 70.6 bln in 2010. Of financing mechanisms, the Fund’s resources dominated, which share was increasing (Fig. 1.18). Figure 1.18 Mechanism of financing capital repairs under projects implemented by the Fund for the Promotion of the Housing and Utility Sector Reform in 2008-2010

Source: Year 2010 AnnualReportoftheStateCorporation “The Fund for the Promotion of the Housing and Utility Sector Reform”.The Fund for the Promotion of the Housing and Utility Sector Reform, 2011

The Institute for Urban Economics (IUE) Center for Energy Efficiency (CENEf) Housing Initiative for Eastern Europe (IWO) Institute Byvania (The Institute of Housing)

Russian Urban Housing Energy Efficiency Programme – Model Development Analyse the current state of the housing stock In 2009, prior to adoption of Law No.261 “On Energy Saving and Enhancement of Energy Efficiency”, the share of utility equipment in the capital repairs scope increased noticeably (Fig. 1.19).

Figure 1.19 Dynamics of capital repairs costs by type of work in 2007-2009

Source: Rosstat data Moscow was the leader of the regional structure of the capital repairs costs followed far behind by the rest of the regions (Fig. 1.20, Annex 1 table 3). Moscow accounted for 15% of the total costs. The first 10 regions accounted for 45% of the total capital repairs costs in 2009 while the last 40 accounted for 17% only. Scale of upgrade of the apartment buildings to enhance the level of comfort for living is minor. In 2009, 307.8 thousand m2 of the total floor space of residential buildings were commissioned after upgrade in the RF (in 2008 – 200.7 thousand m2), which accounted for 1.0% of the total floor space commissioned in 2009 (net of individual residential houses).

According to Form No.1-KR “Data on Capital Repairs of the Housing Stock”, the average per 1 m2 cost of capital repairs was RUR 3.3 thousand in 2009 (in 2008 – RUR 2.7 thousand). According to the Fund’s data, the average unit specific cost of repair of 1 m2 of residential space was RUR 490 in 2008, RUR 800 in 2009 and RUR 810 in 2010. This means that mainly selective capital repairs (87%) were performed under the Fund’s projects. Thus, according to the Rosstat data, the nationwide average unit specific cost of facades repair in 2009 was RUR 1,033, roof repair – RUR 814, utility equipment repair - RUR 1,401 and of structural elements repair and replacement - RUR 224. Information on unit specific cost of capital repairs for the RF regions is not reliable. Result of division of the capital repairs costs into the scope of such repairs in some regions significantly exceeds new construction cost14. The average unit specific cost for Russia in 2009 was RUR 3,341 while for Moscow where comprehensive capital repairs dominated - RUR 5,517. According to the official statistics, only in three Russian regions the average unit specific cost of capital repairs was lower than the figure given by the Fund for the Promotion of the Housing and Utility Sector Reform.

14 Housing and Public Utility Services for the Population. 2010. Rosstat. М. 2010. The Institute for Urban Economics (IUE) 37 Center for Energy Efficiency (CENEf) Housing Initiative for Eastern Europe (IWO) Institute Byvania (The Institute of Housing)

Figure 1.20 Capital repairs costs by regions of the Russian Federation in 2009

Source: Rosstat data

The Institute for Urban Economics (IUE) Center for Energy Efficiency (CENEf) Housing Initiative for Eastern Europe (IWO) Institute Byvania (The Institute of Housing)

CONCLUSIONS

1. The housing stock of the Russian Federation amounted to 19,650 thousand buildings of the total floor space 3,177 mln. m2 as of 2009 year end, of which quantity 2,293 mln. m2 (72%) accounted for urban settlements.Over the period from 2000 to 2009, the housing stock’s area has increased by 14%. The annual increase of the housing stock makes up about 3 %. 2. The greater part of residential premises consists of housing units in apartment buildings (70 % of the housing stock’s total area). As of the end of 2009, the total number of apartment buildings (ABs) was estimated at 3,224 thousand buildings with the total area of 2,237 million sq. m. Individual buildings (IBs) equaled to 16,426 thousand units. Their total area was 974 million sq. m. 3. Substantial service life and increased wear are typical for Russia’s housing stock. • The average life of a building in Russia is estimated at 42 years; • In 2009 the service life surpassing 25 years had the buildings as follows: o 80.1% of IBs; o 75.8% of Abs • In 2009, the multi-apartment housing stock older than 25 years accounted for 1,416 mln. m2 and older than 40 years - for 751 mln. m2, or, in percentage terms, for 63% and 34% of the multi-apartment housing stock respectively. • 60% of residential premises served for more than a quarter of a century; • 90% of buildings in 43 regions of Russia was constructed before 1995; • Volumes of housing with the operating life exceeding 25 and 40 years will be systematically growing, and the average operating life of a residential building will increase up to 50 years by 2035. • In 2009, 66-percent-wear had 6% of IBs and 8.7% of ABs (or 3.7% of the total area of residential buildings). • After 2005 the area of a dilapidated housing has been diminishing till it reached 80 million sq. m. in 2009. However, the growth of the area of an emergency housing stock has not been able to be kept down. In 2009, its area was 19.4 million sq. m. • In 2009, the proportions of IBs and ABs were 4.5% and 2.5%, respectively. 4. Most part of Russia’s housing stock - over 84% - is privately owned. In this Russia largely outpaces many developed countries. In fact, 97 % of IBs and 76% of housing units in ABs are reported to be in private ownership. 5. The housing stock in Russia has a rather high level of amenities. An average of 61.4% of housing is provided with all the amenities. In 2009, 89% of urban housing stock had access to water supply, 87% - to sewerage, 92% - to heat supply, and 80% - to hot water. 6. Russia’ housing stock of apartment buildings is in desperate need of capital repairs which stems from the fact that in the 1990s the volumes of housing stock’s capital repair dropped drastically. Yet there is an upward trend in place from 2008 when through the implementation of regional programmes – financed mostly by the Housing and Utilities Fund – the volume of capital repairs of apartment buildings has risen. Nevertheless, in 2009 the volume was 5.5 times below the level achieved in 1980.

The Institute for Urban Economics (IUE) Center for Energy Efficiency (CENEf) Housing Initiative for Eastern Europe (IWO) Institute Byvania (The Institute of Housing)

Russian Urban Housing Energy Efficiency Programme – Model Development Analyse the current state of the housing stock • According to Rosstat, approximately 282.9 thousand apartment buildings (i.e. 9% of the total number of apartment buildings) needed capital repairs as at the beginning of 2009. Expert analysis revealed that these figures are based on the average operating life of an apartment building prior to capital repairs on it and equals almost 40 years. According to calculations made, as of 2009 the comprehensive capital repairs were required by: • 2,120-2,196 thousand apartment buildings with an average service life of 25 years (i.e., 1,314-1,361 million sq. m.); • 1,374-1,398 thousand apartment buildings with an average service life of 40 years (i.e., 645-660 million sq. m.). • This level of demand for capital repairs will persist in future given that, annually, at least 2% of the total area of apartment buildings’ housing stock undergoes comprehensive capital repairs. If capital repairs are made at a slower rate, the demand for them will grow. 7. According to statistical reporting in 2009 capital repairs were carried out in 72.3 thousand apartment buildings, which accounts for 25.6% of the need for capital repairs estimated on the basis of Rosstat data. According to statistical reports in 2009 the costs of repairing the housing stock were estimated at 143.7 billion rubles (3.47 billion euro), including 137.5 billion rubles (3.32 billion euro) for capital repairs of apartment buildings. In 2009, the average cost of capital repairs per one square meter was 3.3 thousand rubles (79.6 euro). Under the regional programmes co-financed by the Housing and Utilities Fund the average unit cost of repair was 800 rubles (19.3 euro) in 2009, 810 rubles (18.6 euro) in 2010. This suggests that mostly selective works of capital repair took place. Uneven distribution of the scope of capital repairs among Russian regions in 2009. The leaders are Moscow, Tatarstan, and Bashkortostan with a 25% share in all capital repairs. In 2009, 8.5% of the whole housing stock were capitally repaired in Chelyabinsk Oblast, 8% – in Ivanovo Oblast; in 15 regions this parameter exceeded 3% and in 44 regions it was less than 1%. 8. The aggregate energy consumption in the housing stock, including non-residential premises and consumption for the general needs of buildings can be estimated at the level of TOE 165 mln in 2009. The structure of energy consumption by Russia’s population is similar to that in European countries: heat makes up about 62% of the total energy consumption, hot water - 20%, other sources - about 19%. The specificity of the Russian heat consumption is that centralized supply dominates the supply of heat (56%) and the supply of hot water (69%) whereas the share of centralized supply in Europe is only 12%. 9. The energy efficiency of the Russian housing stock is, on the whole, low: • In 2009, a specific consumption of all types of energy in a building was, on average, 47 kilograms of oil equivalent (KOE) per square meter (382.2 kWt*hour / m2 per year): • The indicators of energy efficiency of a building depend on a year of its construction. Reduced specific consumption of energy is typical for new buildings, because their thermal protection has been designed in line with new construction standards; • The energy efficiency of windows is estimated at 20-30% - for the entire housing stock and 30-40% in urban areas. 10. As of 2009, the equipment of Russia’s housing stock of apartment buildings with meters was, on the whole, inadequate:

The Institute for Urban Economics (IUE) 40 Center for Energy Efficiency (CENEf) Housing Initiative for Eastern Europe (IWO) Institute Byvania (The Institute of Housing)

Russian Urban Housing Energy Efficiency Programme – Model Development Analyse the current state of the housing stock • Communal heat energy meters are installed in 8% of apartment buildings (ABs), cold water meters - in 11% of ABs, hot water meters – in 7% of ABs, electricity meters – in 21% of ABs, and gas meters – in 0.9% of ABs. • Domestic heat energy meters are installed in 1% of housing units, cold water meters – in 22% of them, hot water meters – in 19% of apartments, electricity meters – in 80% of apartments, and gas meters – in 5% of apartments. 11. Energy savings potential of apartment buildings is considered to be sufficiently high: that with regard to heat energy - 40%, electricity – 37%, natural gas -30%, water - 25%. Having achieved a complete use of energy saving potential the reduction of a specific consumption of energy down to 29.2 KOE/m2 per year, or by 40%, can be attained in all residential buildings.

The Institute for Urban Economics (IUE) 41 Center for Energy Efficiency (CENEf) Housing Initiative for Eastern Europe (IWO) Institute Byvania (The Institute of Housing)

SECTION 2 REGULATORY REQUIREMENTS TO CAPITAL REPAIRS OF APARTMENT BUILDINGS This section reviews the regulatory and legal acts which contain the requirements to safety of buildings and to their energy efficiency. The lists of works and energy efficient measures performed within capital repairs of apartment buildings, as well as the requirements with regard to construction standard applied, when designing new buildings and developing the projects of capital repair of existing buildings, are included herein.

2.1 REGULATORY REQUIREMENTS TO THE SCOPE OF WORKS ON CAPITAL REPAIRS OF RESIDENTIAL BUILDINGS

Relation in the sphere of capital repairs are regulated by a number of legal acts of the Russian legislation. Among such acts are: • Housing Code of the Russian Federation, the Town Planning Code of the Russian Federation; • Federal Law No.184; • FZ dated 27 December, 2002 “On Technical Regulation”; • Federal Law No.384-FZ dated 30 December, 2009 “Technical Regulations on Buildings and Structures Safety”; • Federal Law No.261-FZ “On Energy Saving and Enhancement of Energy Efficiency and on Amendment of Certain Legislative Acts of the Russian Federation” dated 23 November, 2009; • Rules of maintenance of common property in an apartment building approved by the RF Government Decree No.491 dated 13 August, 2006. Meaning of “capital repairs” is to a certain degree defined in Article 48.1 of the RF Town Planning Code, which establishes that capital repairs of capital constructions are repairs that affect structural and other characteristics of integrity and safety of such facilities. Previously, the legislation (Federal Law No.185-FZ dated 21 July 2007 “On the Fund for the Promotion of the Housing and Utility Sector Reform”) understand capital repairs of apartment buildings as performance of the work provided for by the said Federal Law (Article 15.3) required for elimination of defects of the worn structural elements of common property of the apartments owners (hereinafter referred to as common property of the apartments owners), including restoration or replacement thereof for the purposes of enhancement of the operating characteristics of such common property of the apartment owners. This law does not regulate the relations of capital repairs of apartment buildings. Its subject-matter is the procedure of co- financing of capital repairs of the buildings repaired within the framework of the regional and municipal programs approved under this law only. Article 15.3 of the Federal Law “On the Fund for the Promotion of the Housing and Utility Sector Reform” establishes types of work performed in capital repair of apartment buildings (these are discussed in more detail below). Under Article 15.3.3.1 of FZ-185, types of work performed in capital repair of apartment buildings referred to in Article 15.2 of FZ-185 must be performed in compliance with the energy efficiency requirements applicable to apartment buildings commissioned after capital repairs in accordance with the legislation on energy saving The Institute for Urban Economics (IUE) Center for Energy Efficiency (CENEf) Housing Initiative for Eastern Europe (IWO) Institute Byvania (The Institute of Housing)

Russian Urban Housing Energy Efficiency Programme – Model Development Analyse the current state of the housing stock and enhancement of energy efficiency provided that the permits for capital repairs of the apartment buildings were issued subsequent to enactment of the energy efficiency requirements. According to Article 15.3.2 of the Federal Law “On the Fund for the Promotion of the Housing and Utility Sector Reform”, capital repairs of apartment buildings covered by the municipal and regional target programs must include installation of collective (bulk) meters to measure resource consumption and of control units (thermal energy, hot and cold water, electric power, gas), with the exception of the cases when a relevant apartments building is equipped with such meters and control units. Standard schedule of the work performed in capital repairs is provided for by Article 15.3 of FZ -185 and includes: 1. Repair of the in-building utility systems: electric power, heating, gas, water supply and sewage disposal; 2. Repair or replacement of the elevators equipment recognized unfit for operation, repair of elevator shafts, if required; 3. Roof repairs; 4. Repair of the basements that are common property of the apartment owners; 5. Thermal insulation and repair of the facades; 6. Installation of collective (bulk) meters and control units of the in-building utility systems (thermal energy, hot and cold water, electric power, gas); 7. Repair of the apartment buildings’ foundations, including pile-supported, located in the regions of Extreme North and equivalent areas. Another scope of works on capital repairs of apartment buildings is presented in Resolution No.170 dated 27 September, 2003 of the RF Gosstroi “On Approval of the Rules and Norms of Housing Operation”. According to Attachment No.8 to the said Resolution, the standard schedule of work on capital repairs of the housing stock includes: 1. Examination of the residential buildings (including total examination of the housing stock) and development of the design and cost estimate documentation (regardless of the repair work period); 2. Repair and construction works to replace, restore elements of residential buildings (except full replacement of the stone and concrete foundations, bearing walls and frames); 3. Modernization of residential buildings in the course of capital repair thereof (alteration based on subdivision of multi-room apartments, construction of additional kitchens and bathrooms, living area expansion on account of service areas, improvement of the living area’s solar exposure, liquidation of windowless kitchens and entrances to the apartments through kitchens, including, if required, inbuilt or attached areas for staircases, bathrooms or kitchens); replacement of stove heating by central heating, including construction of boiler rooms, heating lines and heating stations; roof- mounted and other autonomous thermal energy sources; re-equipment of the stoves for gas or coal; installation of cold and hot water supply, sewerage, gas supply systems, including connection to the existing trunk networks if the distance between the inlet point and the point of connection to the trunk systems is less than 150 m, construction of exhaust ducts, feed water pumps, boiler rooms; comprehensive replacement of the existing central heating, hot and cold water supply systems (including mandatory use

The Institute for Urban Economics (IUE) 43 Center for Energy Efficiency (CENEf) Housing Initiative for Eastern Europe (IWO) Institute Byvania (The Institute of Housing)

Russian Urban Housing Energy Efficiency Programme – Model Development Analyse the current state of the housing stock of the upgraded heating equipment and plastic, reinforced plastic piping, etc. and prohibition to install steel piping); installation of electrical stoves instead of gas or wood/coal stoves; installation of elevators, garbage chutes, pneumatic garbage removal systems in the buildings with the upper-storey staircase landing elevation of at least 15 m; transfer of the existing power supply system to higher voltage; repair of common TV aerials, connection to the telephone and radio networks; installation of house intercoms, electrical locks, installation of the fire safety and smoke removal control equipment; automation of the elevators, heating boiler houses, heating systems, utility equipment; redevelopment of yard territories (paving, asphalting, landscaping, installation of the fencing, wood-sheds, equipment of playgrounds and utility areas). Repair of roofs, facades, pre-fabricated buildings joints up to 50%. 4. Heat insulation of residential buildings (enhancement of thermal protection properties of the enclosing structures, installation of triple-glazing window frames, construction of external airlocks); 5. Replacement of the intra-neighborhood utility networks; 6. Installation of bulk meters to measure heat energy consumption for heating and hot water supply, consumption of cold and hot water per building, as well as installation of apartment hot and cold water meters (if utility networks are replaced); 7. Rebuilding of the non-ventilated overlapping roofs; 8. Field supervision by the design institutes of the residential buildings capital repairs, including full or partial replacement of the floors and redevelopment; 9. Technical supervision if the local government, organizations have established divisions of technical supervision of capital repairs of the housing stock; 10. Repair of the inbuilt premises in buildings. Both schedules are not mandatory for the owners of the premises in apartment buildings as the schedule of works on capital repairs of the apartment building given in Article 15 of the Federal Law “On the Fund for the Promotion of the Housing and Utility Sector Reform” becomes mandatory only if apartment buildings are included in the municipal and regional target programs. The schedule of works on capital repairs of apartment buildings specified in the Rules and Norms of Housing Operation approved by Resolution No.170 dated 27 September, 2003 of the RF Gosstroi in accordance with the requirements of Article 4 of Federal Law No.184-FZ dated 27 December 2002 “On Technical Regulation” does not regulate the requirements. Federal law # 384-FZ “Technical Regulations on Safety of Buildings and Structures” (Article 36) established as follows: • Safety of buildings and structures during their service life should be ensured on the basis of technical maintenance, routine inspections and checks, and (or) via the procedures of monitoring the state of their foundation, structural units, engineering systems and via routine overhaul of a building and its structures; • Parameters and other characteristics of structural units and engineering systems of a building or a structure, in the course of its service life, should meet the requirements of design documents; • Operation of buildings and structures should be arranged in such a manner as to ensure the compliance of buildings and structures with the requirements to their energy

The Institute for Urban Economics (IUE) 44 Center for Energy Efficiency (CENEf) Housing Initiative for Eastern Europe (IWO) Institute Byvania (The Institute of Housing)

Russian Urban Housing Energy Efficiency Programme – Model Development Analyse the current state of the housing stock efficiency, and the requirements to equipping buildings and structures with the meters of energy resources over their entire service life of buildings and structures. By Federal Law # 384-FZ (Article 6) the Government of the Russian Federation establishes a list of national standards and sets of rules (parts of such standards and sets of rules), which should be applied in a mandatory manner in order to ensure the observance of baseline requirements to safety of buildings and structures, and of processes of designing (surveying), construction, assembling, adjustment, operation, disposal (demolition) of buildings and structures. The requirements to buildings and structures set out by Federal Law #384 are not applied until takes place the rehabilitation or the capital repair of a building or a structure put into operation before such requirements became effective (Article 42, FZ# 384). Thus, legislation of the Russian Federation does not establish a mandatory list of works to be performed within capital repairs, but this envisages the requirements which ensure, in a mandatory manner, the safety of buildings over their service life, while energy efficiency of buildings is reckoned among safety issues.

2.2 REGULATORY REQUIREMENTS TO ENHANCEMENT OF ENERGY EFFICIENCY OF THE HOUSING STOCK AS A RESULT OF CAPITAL REPAIRS

Once FZ-261 has been passed, capital repairs of the buildings became closely tied to the energy efficiency and energy saving enhancement norms. Under Article 11 of FZ-261 the requirements to energy efficiency of the buildings and structures must include: requirements to separate parts of the buildings, structural elements of the buildings and structures and to the properties thereof, to the devices and technologies employed within the buildings and structures, as well as the requirements to the technologies and materials included in the design documentation and employed in construction, refurbishment, capital repairs of the buildings and structures that ensure prevention of non-rational use of energy resources in the process of capital repairs of the buildings and structures, as well as in the process of operation thereof. All requirements of the new energy efficiency legislation requirements are applicable to the capitally repaired buildings. Capital repairs, together with refurbishment are often the legal circumstance and the turning point that signifies application of the new requirements to the building. Article 11.6 of FZ-261 prohibits commissioning of the capitally repaired buildings and structures non-compliant with the requirements of energy efficiency and the requirements for use of the energy consumption meters. Article 11.7 of FZ-261 specifies that the developers must ensure compliance of the buildings and structures with the requirements of energy efficiency and the requirements for use of the energy consumption meters by selection of the optimal architectural, functional and technological, structural and engineering and technical solutions and due implementation thereof in capital repairs. Article 11.10 of FZ-261 states that if non-compliance of a building, structure or separate elements or structures thereof with the requirements of energy efficiency and (or) requirements to installation of the energy consumption meters due to non-compliance by the developer with the said requirements, if identified, owner of the building or structure, owners of apartments in an apartment building shall have the right to demand, at their discretion, of free-of-charge elimination within a reasonable term of the identified non-compliance or compensation of the costs of elimination of the identified non-compliance. Such requirement could be imposed on the developer in the event of identification of the said fact of non-compliance during the period The Institute for Urban Economics (IUE) 45 Center for Energy Efficiency (CENEf) Housing Initiative for Eastern Europe (IWO) Institute Byvania (The Institute of Housing)

Russian Urban Housing Energy Efficiency Programme – Model Development Analyse the current state of the housing stock when, according to the energy efficiency requirements, compliance therewith must be ensured at the stage of design, construction, refurbishment, capital repairs of the building or structure. Under Article 13.7 of FZ-261 apartment buildings commissioned since 01 January, 2012 upon capital repairs must be equipped with the individual heat meters if such installation is possible. Owners of energy consumption meters must ensure due operation of such meters, security and timely replacement thereof. The State shall implement measures targeting compliance with the requirements for due maintenance of the apartment buildings, supplementing Article 7.22 of the RF Code of Administrative Offences. Article 37 of FZ-261 introduces amendments to the Code of Administrative Offences of the Russian Federation: Article 9 was supplemented by Chapter 9.16, under which non-compliance in the course of capital repairs of buildings and structures with the energy efficiency requirements, requirements of equipment with the energy consumption meters shall entail an administrative fine on the officials in the amount of RUR 20,000-30,000; persons engaging in non-corporate business – from RUR 40,000 to RUR 50,000; legal entities – from RUR 500,000 to RUR 600,000. Requirements of the new energy efficiency legislation shall be applied to the buildings that underwent capital repairs. Prior to 2011, the basic levels of buildings heat insulation were regulated by SNiP 23-02-2003 introduced by the Gosstroi of Russia in 2003 “Thermal protection of buildings”. An annex to the above document – SP Code 23-101-2004 “Design of thermal protection of the buildings” was issued in 2004. Under such regulatory documents, capital repairs, refurbishment, as well as new construction of residential buildings must be carried out in accordance with the enhanced requirements for thermal protection of the buildings’ envelope. SNiP 23-02-2003 “Thermal protection of the buildings” and SP 23-101-2004 “Design of thermal protection of the buildings” establish the regulatory requirements to: 2 ⇒ reduced heat transmission resistance of the building envelope (Rо , m ∙ºС); ⇒ thermal capacity of the building envelope and premises inside during the cold period of the year; ⇒ protection of the building envelope from excessive moistening; ⇒ air permeability of the enclosures and premises of the buildings; ⇒ prevention of moisture condensation on the internal surfaces of the buildings envelope; ⇒ unit specific indicator of heat energy consumption for heating of the buildings; ⇒ enhancement of energy efficiency of the buildings subsequent to capital repairs or refurbishment, as well as of the newly constructed buildings. Given the new regulatory requirements, the required heat transmission resistance of the envelope must be not less that the regulatory value, which depends on ºС·per day of the heating period (GSOP, ºС·per day). Use of the GSOP indicator accounts for the climatic factor for various regions of the Russian Federation. Standard (regulated) values of heat transmission resistance of the residential building’s envelopes depending on the value of ºС·per day of the heating period are given in Table 2.1.

The Institute for Urban Economics (IUE) 46 Center for Energy Efficiency (CENEf) Housing Initiative for Eastern Europe (IWO) Institute Byvania (The Institute of Housing)

Table 2.1 Standard (required) specific heat transmission resistance of residential buildings’ envelope Envelope type ºС·per day of the heating Regulated (required) values of period, GSOP specific heat transmission resistance of the envelopes, m2·ºС/W

External walls 2,000 2.1 4,000 2.8 6,000 3.5 8,000 4.2 10,000 4.9 12,000 5.6 External doors 2,000 1.3 4,000 1.7 6,000 2.1 8,000 2.5 10,000 2.9 12,000 3.4 Windows and balcony doors 2,000 0.3 4,000 0.45 6,000 0.6 8,000 0,7 10,000 0.75 12,000 0.8 Attic floors, as well as the floors over non- 2,000 2.8 heated basements 4,000 3.7 6,000 4.6 8,000 5.5 10,000 6.4 12,000 7.3 Roofs 2,000 3.2 4,000 4.2 6,000 5.2 8,000 6.2 10,000 7.2 12,000 8.2 Source: SNiP 23-02-2003 “Thermal protection of buildings”

As per Article 15 of FZ-261, upon capital repairs a state construction supervision agency in accordance with the rules for determination of energy efficiency of apartment buildings approved by the authorized federal body of executive power and requirements to which are established by the Government of the Russian Federation, shall determine energy efficiency class of the apartments buildings. Energy efficiency class of the apartment building being commissioned is stated in the report of the state construction supervision agency on compliance of the constructed, refurbished, capitally repaired apartment building with the energy efficiency requirements. Energy passports for buildings and structures commissioned after capital repairs may be developed on the basis of design documentation. Requirements to the rules for determination of energy efficiency class of apartment buildings are established by the RF Government Resolution No.18 dated 25 January, 2011 “On approval of the Rules for establishment of energy efficiency requirements of buildings and structures and requirements to the rules for determination of energy efficiency class of apartment buildings”. According to Part 1, these requirements apply to refurbished or capitally repaired buildings. According to Part 2, energy efficiency requirements for the capitally repaired buildings are The Institute for Urban Economics (IUE) Center for Energy Efficiency (CENEf) Housing Initiative for Eastern Europe (IWO) Institute Byvania (The Institute of Housing)

Russian Urban Housing Energy Efficiency Programme – Model Development Analyse the current state of the housing stock established on a differentiated basis, depending on the capital repairs type. However, Part 7 of the RF Ministry for Regional Development Resolution No.262 dated 28 May 2010 “On Energy Efficiency Requirements of Buildings and Structures” states that for the refurbished buildings and economy-class dwellings reduction of the regulated unit specific energy consumption for the heating and ventilation purposes by energy efficiency Class B ("high") must be 15% of the basic level from 2016 and additional 15% from 2020 on. Another provision is that reduction of unit specific water consumption in residential buildings must not exceed 175 l/person by 2020, including hot water – 80-85 l/person. Part 1 of the Resolution in question established that the requirements are the minimal allowable and must be observed in designing, expert assessment, construction, acceptance and operation of new, refurbished, capitally repaired and upgraded heated residential buildings. There is a contradiction between the two documents reviewed above: Government Resolution No.18 dated 25.01.2011 states that the energy efficiency requirements applicable to the capitally repaired buildings are differentiated depending on the capital repairs type while the Order of the RF Ministry for Regional Development sets rigid objectives with regard to reduction of the unit specific consumption of resources upon capital repairs. As a result of capital repairs, as provided for by Clause 14 of Decree No.262 dated May 28, 2010 of the RF Ministry of Regional Development, a building must be equipped with: 1) Heating devices used in common areas of the energy efficiency class not less than the first two (if such class is identified); 2) Elevators of the energy efficiency class not less than the first two (if such class is identified); 3) Central heating controllers installed at the inlet to the building, structure, as well as along the facade or part of the building; 4) Thermostates and heat energy consumption meters installed at heating devices of the vertical heating systems, thermostates and heat transfer agent flow meters in the horizontal heating systems in apartments of the total floor space of up to 100 sq.m, or heat meters in apartments of a larger floor space; 5) Hot water supply automatic heat exchangers installed at the inlet to the building or part of the building; 6) Electric engines for the ventilation systems, elevators, water transport within the local heating, hot and cold water supply, air conditioning systems. 7) Energy and water meters installed at the inlet to the building, in apartments, common areas and leased areas; 8) Devices optimizing operation of the ventilation systems (air channels of the windows or walls that ensure automatic supply of the outdoor air as required, exhaust air recovery systems for heating of the induced air, use of recirculation); 9) Pressure regulators of the cold and hot water supply systems at the inlet to the building, structure (for apartment buildings – at the inlet to the building, apartments, common areas); 10) Devices of automatic temperature reduction in the public buildings premises during the non-business hours in the winter period; 11) Devices ensuring reduction of the peak load within the refrigeration supply system by using the refrigerated floors for cold accumulation in the night time; The Institute for Urban Economics (IUE) 48 Center for Energy Efficiency (CENEf) Housing Initiative for Eastern Europe (IWO) Institute Byvania (The Institute of Housing)

Russian Urban Housing Energy Efficiency Programme – Model Development Analyse the current state of the housing stock 12) Energy-efficient lighting in common areas; 13) Equipment ensuring switching off of the lighting in the common areas in the absence of people (motion sensors, switches); 14) Power factor correction units; 15) Door brakes (in apartment buildings – all doors in the common areas); 16) Second door for the entrance airlocks ensuring the minimum thermal energy loss, or revolving doors; 17) Window brakes (for apartment buildings – in common areas; apartments). In this regard, by Resolution #262, issued by the RF Ministry of Regional Development on May 28th, 2010, a vast list of energy saving measures within capital repair works is established. It is worthy of note that certain contradictions exist between various legislative acts which regulate the relations with regard to capital repairs. Thus, for example, the Government’s Resolution #18, dated January 25th of 2011, states that the requirements to energy efficiency of buildings - which underwent capital repairs – vary according to the type of capital repair, while Resolution #262, dated May 28th of 210, strictly assigns the task of achieving the reduction of specific consumption of energy via capital repairs. In the event that similar conflicts occur, one should be, normally, governed by the principle of priority of legislative acts with a higher legal status. In this particular case, the RF Government’s Resolution has a higher legal status.

CONCLUSIONS

1. Legislation of the Russian Federation establishes requirements to safety and energy efficiency of residential buildings over their service life. At the same time, those requirements cannot be applied to buildings which have been put into operation before the former became effective, but the requirements can be applied when the rehabilitation or the capital repairs are taking place. 2. Existing lists of capital repair works are not mandatory for owners of buildings. However, once they make their decision on capital repairs and on type of works within capital repairs, as a result of performance of relevant works, the observance of energy efficiency requirements and of requirements to equipping the buildings with meters of energy resources should be ensured. 3. Requirements contained within current construction standards and within sets of rules allow ensuring energy efficiency of buildings which are being constructed, repaired and rehabilitated. 4. There is a need not so much in developing new regulatory requirements with regard to capital repairs of apartment buildings, as in a larger harmonization of current regulatory requirements.

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Russian Urban Housing Energy Efficiency Programme – Model Development Analyse the current state of the housing stock

SECTION 3. CATALOGUE OF KEY MEASURES FOR CAPITAL REPAIRS OF RESIDENTIAL BUILDINGS

This section contains model lists of measures that can be carried out as part of capital repairs of buildings to reduce heat losses via walling and losses of utility resources in systems of heat-, water-, electricity-, and gas supply. There are three packages of measures to be performed within capital repairs of apartment buildings. These packages - baseline, realistic and energy efficient - vary according to tasks and cost of repair. The cost of each package of measures has been calculated for four most wide-spread types of apartment buildings. Herein are included the results of calculation of savings of various types of utility resources attained by means of implementing three different packages of measures in each of four types of apartment buildings

3.1 CATALOGUE OF MEASURES FOR CAPITAL REPAIRS OF RESIDENTIAL BUILDINGS

In order to fulfill requirements for energy efficiency and structural heat conductivity after capital repairs of residential buildings a package of energy saving measures must be implemented and energy-efficient building services must be installed. An indicative catalogue of energy saving measures allowing to reduce heat loss through structural heat transmission which can be implemented during capital repairs of residential buildings is specified in Table 3.1. Activities shown in Table 3.1 are stipulated by effective regulatory legal documents on the improvement of energy performance in buildings after capital repair works on them (figures for the reduced total heat transfer and reduced total thermal resistance of building envelopes grow; unit specific consumption of thermal energy in buildings for heating purposes declines). The above-mentioned regulatory legal documents are as follows: ⇒ Building Codes 23-02-2003 «Thermal Protection of Buildings»; ⇒ Building Codes 23-101-2004 «Designing Thermal Protection of Buildings»; ⇒ Order #262 by the Ministry for Regional Development of the RF, dated 28.05.2010 «On Requirements to Energy Efficiency of Buildings, Structures and Facilities»; ⇒ Order #61 by the Ministry for Regional Development of the RF, dated 17.02.2010 «On the Approval of a Tentative List of Energy Saving and Energy Efficiency Improvement Activities». All activities shown in Table 3.1 are technically feasible. Table 3.1 Catalogue of measures for improvement of heat conductivity (heat insulation) of residential buildings' envelopes No. of Description of activity Effect of implementation Applied technologies, activity equipment and materials 1 Thermal insulation of floors and 1) Reduction of transmission heat loss Energy-efficient insulation basement walls contacting soil through floors and basement walls materials (polyurethane, foam 2) Reduction of frost penetration into boards, polystyrene boards, floors and basement walls (increase mineral wool slabs) of operating life)

2 Thermal insulation (insulation) and 1) Reduction of transmission heat loss Energy-efficient insulation and waterproofing of garret floors through garret floors waterproofing materials 2) Reduction of frost penetration into garret floors (increase of operating life) The Institute for Urban Economics (IUE) 50 Center for Energy Efficiency (CENEf) Housing Initiative for Eastern Europe (IWO) Institute Byvania (The Institute of Housing)

Russian Urban Housing Energy Efficiency Programme – Model Development Analyse the current state of the housing stock No. of Description of activity Effect of implementation Applied technologies, activity equipment and materials 3) Reduction of moisture penetration (water leaks) into residential and non- residential rooms of a building 3 Heat insulation of external walls: 1) Reduction of transmission heat loss "Suspended ventilated facade"- 3.1 Thermal insulation of external through external walls technics; slabs of mineral wool walls by insulation plates with 2) Reduction of heat consumption to or polystyrene foam subsequent plastering warm up cold outdoor air infiltrating 3.2 Thermal insulation of external into a building through external walls walls using suspended ventilated 3) Reduction of frost penetration into facades external walls (increase of operating 3.3 Thermal insulation of external life) walls by spraying polyurethane foam (PU foam) or an asbestos- perlite mixture 4 Repair and sealing of external wall 1) Reduction of heat consumption to "Insulated joint"-technics; heat- joints warm up cold outdoor air infiltrating insulation gasket seals, joint into a building through external wall fillers, mastic compounds joints 2) Reduction of frost penetration into external walls 5 Repair of existing windows, single and/or double glazing in wooden window casements 5.1 Installation of seal gaskets 1) Reduction of heat consumption to Seal gaskets of polyurethane between window casements and warm up cold outdoor air infiltrating foam; glue with increased water building walls into a building through leakages in resistance window apertures

5.2 Installation of third window panes Reduction of transmission heat loss or application of a film on panes in through windows existing timber window frames 6 Installation of state-of-the-art energy- 1) Reduction of transmission heat loss State-of-the-art energy-efficient efficient triple glazed windows in through windows triple-pane windows in PVC plastic window frames 1) Reduction of heat consumption to frames warm up cold outdoor air infiltrating into a building through leakages in window apertures 7 Sealing (insulation) of external door 1) Reduction of heat consumption to Seal gaskets of polyurethane apertures with the installation of door warm up cold outdoor air infiltrating foam; automatic door closers closers (providing automatic door into a building through leakages in closing) door apertures or through open doors 8 Installation of heat-reflecting screens Reduction of transmission heat loss behind heating radiators through external walls (reduction of heat energy wasted to warm walls behind heating radiators) Source: Consultant

The scope of energy saving and the payback period of each activity shown in Table 3.1 depends on the following factors: ⇒ Climatic conditions of the region where buildings are located (number of degree-days of the heating season); ⇒ Effective tariffs for thermal energy and other resources in the region where buildings are located. The experience of the Consultant (OOO CENEf) based on the energy auditing of residential buildings in various Russian regions proves that the following activities (shown in Table 3.1) have the shortest payback period:

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Russian Urban Housing Energy Efficiency Programme – Model Development Analyse the current state of the housing stock 1. Repairs (heat insulation) of outside entrance doors with installation of door closers (enabling to automatically close doors). The average payback period of this activity is 1.4-1.8 years depending on types (construction series) of residential buildings. 2. Installation of heat reflecting screens behind heating devices in apartments and common areas (staircases). The average payback period of this activity is 2.1-5.7 years depending on types (construction series) of residential buildings. In the course of capital repairs the energy-saving measures to improve heat-retention properties of enclosing structures must be combined with installation of utility meters in buildings and also with activities to reduce the loss of utility resources in heat-, water-, electricity- and gas-supply systems. An indicative list of measures allowing to reduce loss of utility resources in heat-, water-, electricity- and gas-supply systems which can be implemented during capital repairs of residential buildings is specified in Table 3.2. Table 3.2 Scope of works at heat-, water-, power- and gas supply systems in residential buildings No. of Description of activity Effect of implementation Applied technologies, activity equipment and materials 1 Repair (replacement) of utility systems Steel pipes for heating inside a building in basements or attic systems. Pipe-lines made of floors, including: cross-linked polyethylene, repair of heating pipes in a building 1) Reduction of heat loss in heating polybutene, polypropylene with thermal insulation; pipes for cold and hot water repair of pipes of the hot water sup- 2) Reduction of heat loss in pipes of supply systems, sanitation ply system in a building with the the hot water supply system systems and gas-supply installation of a water pressure 3) Reduction of hot water discharge systems. regulator at the inlet; due to system cooldown (in case of Shutoff and control valves no hot water draw-off at nighttime or (valves, gate valves, cold repair of pipes of the cold water sup- daytime) and hot water pressure ply system in a building with the 4) Reduction of physical depreciation regulators). installation of a water pressure regu- and extension of operating life of State-of-the-art energy- lator at the inlet; heating systems, hot and cold water efficient insulation repair of pipes of the sanitation supply systems, sanitation systems materials. (sewage) system inside a building; and gas-supply systems repair of pipes of the gas-supply system inside a building; 2 Complete makeover (total replacement) Steel pipes for heating of in-building utility services, including: systems. Pipe-lines made of Refurbishment of pipes of in- cross-linked polyethylene, building heating systems (pipes in 1) Reduction of heat loss in heating polybutene, polypropylene the basement and/or in the attic, riser pipes for cold and hot water pipes, heating radiators) 2) Reduction of heat loss in pipes of supply systems, sanitation Refurbishment of pipes of in- the hot water supply system systems and gas-supply building hot water supply systems 3) Reduction of hot water discharge systems. (pipes in the basement and/or in the due to system cooldown (in case of Shutoff and control valves attic, standpipes) no hot water draw-off at nighttime or (valves, gate valves). Refurbishment of pipes of in- daytime) State-of-the-art energy- building cold water supply systems 4) Reduction of physical depreciation efficient insulation (pipes in the basement and/or in the and extension of operating life of materials. attic, standpipes) heating systems, hot and cold water Refurbishment of pipes of in- supply systems, sanitation systems building sanitation systems (pipes in and gas-supply systems the basement and/or in the attic, standpipes) Refurbishment of pipes of in- building gas-supply systems (pipes in the basement and/or in the attic, riser pipes) 3 Installation of hot water return lines in the 3) Reduction of hot water discharge Plastic pipelines; circulating hot water supply systems due to system cooldown (in case of pump; water meter for no hot water draw-off at nighttime or return hot water metering

The Institute for Urban Economics (IUE) 52 Center for Energy Efficiency (CENEf) Housing Initiative for Eastern Europe (IWO) Institute Byvania (The Institute of Housing)

Russian Urban Housing Energy Efficiency Programme – Model Development Analyse the current state of the housing stock No. of Description of activity Effect of implementation Applied technologies, activity equipment and materials daytime) 4 Installation of an automated heating 1) Automatic heat medium Pump unit for delivery system control unit (replacement of parameters control in the heating sys- water mixing with mixing valves in a building) tem (keeping the temperature curve of automatic equipment the heating system at a preset level) (controller, temperature 2) Reduction of firing rate in the sensors, flow controller, heating system (eliminating excessive differential pressure building heating in the transitional controller) season) 5 Installation of an automated single-buil- 1) Automatic heat medium Modular automated ready- ding heat distribution and metering parameters control in the heating sys- to-operate heat distribution station (replacement of mixing valves in a tems and hot water supply systems and metering stations building) (keeping the temperature curve of the heating system and hot water temperature at a preset level) 2) Reduction of firing rate in the heating system (eliminating excessive building heating in the transitional season) 3) Reduction of firing rate in the hot water supply system 6 Installation of balancing valves in riser 1) Elimination of risers Manual or automatic pipes of the heating system maladjustment in building heating balancing valves systems 2) Reduction of heat energy consumption in a building 7 Installation of thermostatic control valves 1) Improvement of comfort Control valves and (temperature regulators) on heating conditions in rooms thermostatic heads radiators 2) Reduction of heat energy (thermostatic regulators) consumption for heating purposes 8 Replacement of physically worn out in- Reduction of physical wear and building power supply systems (electrical extension of operating life of power wiring) and input distribution devices supply systems 9 Replacement of electric bulbs in public Reduction of electricity consumption Compact fluorescent lamps; spaces (staircases, stair flights, external for public space lighting LED lighting fixtures lighting of entrances) by energy-saving lighting fixtures 10 Installation of occupancy sensors in Reduction of electricity consumption State-of-the-art efficient public spaces for public space lighting control gears; occupancy 2) Automatic public spaces sensors illumination control 11 Installation of single-building utility meters (heat energy meters, cold and hot water meters, electricity and natural gas meters) including: single-building heat energy consumption meters (heat meters) 1) Reduction of payment for thermal single-building hot water energy consumed (for management consumption meters (hot water companies and individuals) meters) 2) Reduction of payment for hot single-building cold water water consumed (for management consumption meters (cold water companies and individuals) meters) 3) Reduction of payment for cold single-building multirate electronic water consumed (for management electricity meters with enhanced companies and individuals) accuracy (minimum 2.0) 4) Reduction of payment for single-building natural gas electricity consumed (for consumption meters (gas meters) management companies and individuals) 5) Reduction of payment for natural gas consumed (for management companies)

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Russian Urban Housing Energy Efficiency Programme – Model Development Analyse the current state of the housing stock Source: Consultant

In addition to the activities described in Tables 3.1 and 3.2, measures without the energy-saving effect must be implemented during capital repairs of residential buildings which are aimed at improving living conditions of residents in apartment buildings. Such measures include: ⇒ repair (upgrade) or a complete replacement of elevator equipment found unsuitable for further use. If necessary, elevator shafts are to be repaired as part of this measure; ⇒ improvement of public spaces (repair of stairwells, painting walls and whitewashing ceilings of public spaces). If necessary, garbage chutes are to be repaired as part of this measure; ⇒ repair of water disposal systems (storm water pipes) in the buildings.

3.2 DEFINITION OF PACKAGES OF MEASURES FOR CAPITAL REPAIRS OF RESIDENTIAL BUILDINGS

Subject to tasks to be tackled during capital repairs of buildings and depending on availability of financial resources allocated for repair works standard packages of measures can be defined. In this study three standard packages of measures are applied by Consultant which can be implemented during capital repairs of residential buildings. To calculate the cost of each package of measures/activities, four most popular types of apartment buildings were selected. Their architectural and construction attributes are shown in Table 3.3: Table 3.3 Attributes of Model Apartment Buildings in Russia Attributes of Model Type 1 of buildings Type 2 of Type 3 of Type 4 of Apartment Buildings buildings buildings buildings Number of floors of a up to four 4 floors 5−8 9−12 13−16 (or higher) building inclusive Total area of a building, 452−750 2413−4817 6078−9024 3945−10255 2 м Number of entrances 1−2 4−6 1−3 1−2 (front-entrance doors):

Area of the attic floor 183−587 556−1223 552−1136 623−1387 Basement area 123−495 560−972 419−1136 545−799 Window and balcony 133,8 474−726 1851−2143 2617 door space External walls area 306 1020−2296 4538 3865 Predominant external brick brick, reinforced brick, reinforced brick, reinforced walling material concrete slabs concrete slabs concrete slabs

Unit costs (i.e. costs per one m2 of the total floor space of a building) were estimated for each measure within three standard packages. In addition, costs of construction and erection (installation) works were taken into account for each activity. Costs associated with preparation of design and estimate documentation for capital repairs of buildings and contingencies were outlined as a separate component of each package.

The Institute for Urban Economics (IUE) 54 Center for Energy Efficiency (CENEf) Housing Initiative for Eastern Europe (IWO) Institute Byvania (The Institute of Housing)

Russian Urban Housing Energy Efficiency Programme – Model Development Analyse the current state of the housing stock 3.2.1. Package No 1 (minimum) This package is designed to implement measures necessary to maintain a building in a condition suitable for further operation. It includes the following activities: 1. Measures designed to improve heat retention properties (heat insulation) of enclosing structures of buildings. Such measures include: ⇒ repair of roofs (with insulation and waterproofing); ⇒ repair of basements (with basement floor insulation); ⇒ repair (sealing) of joints in combination with painting and plastering of external walls; ⇒ installation of sealing gaskets between window frames and walls of a building (with the installation of a third window pane or application of a film); ⇒ repair of front-entrance door with the installation of door closers (providing automatic door closing). If necessary, a second door may be installed at wind- porches in building entrances as part of this measure; 2. Measures to improve heating systems of buildings allowing to control the firing rate for heating and thereby to reduce heat loss due to imbalance of supply and demand (in a building). Such measures include: ⇒ installation of an automated heating system control unit instead of mixing valves in a building; 3. Measures designed to reduce physical wear and to extend operating life of in-building utility services located in the attics or basements of buildings, including: ⇒ repair of heating pipes in a building with thermal insulation; ⇒ repair of pipes of the hot water supply system in a building with the installation of water pressure regulators at the inlet; ⇒ repair of pipes of the cold water supply system in a building with the installation of water pressure regulators at the inlet; ⇒ repair of pipes of the sanitation (sewage) system inside a building; ⇒ repair of pipes of the gas-supply system inside a building; 4. Measures to replace physically worn out in-building electrical networks (wiring) and equipment of input distribution devices. If necessary, reactive power compensation devices when operating electric motors of pumping equipment and/or elevators may be installed as part of this measure; 5. Low-cost energy-saving measure to replace electric bulbs in public spaces by energy- efficient lighting fixtures; 6. Measures designed to install single-building utility meters (heat energy meters, electricity meters, cold and hot water meters and natural gas meters) including: ⇒ a single-building heat energy consumption meter; ⇒ a single-building hot water consumption meter; ⇒ a single-building cold water consumption meter;

The Institute for Urban Economics (IUE) 55 Center for Energy Efficiency (CENEf) Housing Initiative for Eastern Europe (IWO) Institute Byvania (The Institute of Housing)

Russian Urban Housing Energy Efficiency Programme – Model Development Analyse the current state of the housing stock ⇒ single-building multirate electronic electricity meters with enhanced accuracy (minimum 2.0); ⇒ a single-building natural gas consumption meter; 7. Measure designed to repair (upgrade) or replace elevator equipment. The total number of activities in Package No. 1 (minimum) is 15. Unit costs of measures as part of Package No. 1 for four types of residential buildings are described in Table 3.4.

The Institute for Urban Economics (IUE) 56 Center for Energy Efficiency (CENEf) Housing Initiative for Eastern Europe (IWO) Institute Byvania (The Institute of Housing)

Table 3.4 Unit cost of Package No. 1 of measures per one m2 of the total building floor space Number of floors Measur up to four 4 Five- to eight- Nine- to Thirteen- to Description of activity ement floors in a storeyed twelve- sixteen- unit building buildings storeyed storeyed buildings buildings Repair of roofs (with insulation and Rubles/ 814.5 264.4 174.1 140.9 waterproofing); m2 Repair of basements (with basement Rubles/ 474.1 210.3 131.2 81.2 floor insulation); m2 Repair (sealing) of joints in Rubles/ 255.2 292.9 289.7 230.2 combination with painting and m2 plastering of external walls;

Installation of sealing gaskets between Rubles/ 368.1 143.0 197.2 213.9 window frames and walls of a m2 building (with the installation of a third window pane or application of a film); Repair (sealing) of front-entrance Rubles/ 10.1 3.9 1.3 0.4 doors with the installation of door m2 closers (providing automatic door closing).

Repair (replacement) of utility Rubles/ 464.4 154.6 63.7 46.7 systems inside a building in m2 basements or attic floors, including: Repair of heating pipes in a building 159.1 55.0 21.8 16.0 with thermal insulation; pipes of the hot water supply system 100.7 29.0 13.8 10.1 in a building with the installation of water pressure regulators at the inlet; pipes of the cold water supply system 68.2 23.5 9.4 6.9 in a building with the installation of water pressure regulators at the inlet; pipes of the sanitation (sewage) 68.2 23.5 9.4 6.9 system inside a building; pipes of the gas-supply system inside 68.2 23.5 9.4 6.9 a building; Installation of single-building utility Rubles/ 232.2 36.2 19.3 17.0 meters, including: m2 a single-building heat energy 176.0 27.4 14.6 12.9 consumption meter (heat meter); a single-building hot water 14.3 2.2 1.2 1.1 consumption meter (hot water meter) a single-building cold water 12.4 1.9 1.0 0.9 consumption meter (cold water meter) a single-building multirate 8.5 1.3 0.7 0.6 electronic electricity meter with enhanced accuracy (minimum 2.0); single-building natural gas 20.9 3.2 1.7 1.5 consumption meters (gas meters) Installation of an automated heating Rubles/ 208.9 112.6 88.6 90.5 system control unit (replacement of m2 mixing valves in a building) Replacement of electric bulbs in Rubles/ 7.2 4.9 2.5 0.9 public spaces by energy-saving m2 lighting fixtures

The Institute for Urban Economics (IUE) Center for Energy Efficiency (CENEf) Housing Initiative for Eastern Europe (IWO) Institute Byvania (The Institute of Housing)

Russian Urban Housing Energy Efficiency Programme – Model Development Analyse the current state of the housing stock Number of floors Measur up to four 4 Five- to eight- Nine- to Thirteen- to Description of activity ement floors in a storeyed twelve- sixteen- unit building buildings storeyed storeyed buildings buildings Replacement of physically worn out Rubles/ 326 250 192 180 in-building electrical networks m2 (wiring) and equipment of input distribution devices.

Repair (upgrade) or replacement of Rubles/ 1,009 519 365 elevator equipment m2 Costs of design and estimation Rubles/ 150 150 150 150 documentation and contingencies m2 ditto % 4.5 5.7 8.2 9.9 Total unit cost of measures as part Rubles/ 3,310.9 2,632.3 1,828.2 1,516.2 of Package No. 1 (minimum) m2

Source: Consultant's estimates

Analysis of Table 3.4 reveals that: 1. The total unit cost of measures as part of Package No. 1(minimum) amounts: ⇒ for residential buildings of Type 1 (up to 4 floors inclusive) to 3,310.9 Rubles/m2; ⇒ for residential buildings of Type 2 (5 to 8 floors) to 2,632.3 Rubles/m2; ⇒ for residential buildings of Type 3 (9 to 12 floors) to 1,828 Rubles/m2; ⇒ for residential buildings of Type 4 (13 to 16 floors) to 1,516.2 Rubles/m2; 2. The following are the most cost intensive measures for buildings of Type 1: ⇒ Repair of roofs (garret floors) with insulation and waterproofing; The unit cost of this activity amounts to 814.5 Rubles/m2 (25% of the total unit cost of measures as part of Package No. 1); ⇒ Repair of basements (with basement floor insulation). The unit cost of this activity amounts to 474.1 Rubles/m2 (14.3% of the total unit cost of measures as part of Package No. 1); ⇒ Repair of in-building utility services in basements or attics. The unit cost of this activity amounts to 464.4 Rubles/m2 (14% of the total unit cost of measures as part of Package No. 1); 3. The following are the most cost intensive measures for buildings of Type 2: ⇒ Repair (upgrade) or replacement of elevator equipment. The unit cost of this activity amounts to 1,009 Rubles/m2 (38% of the total unit cost of measures as part of Package No. 1); ⇒ Repair (sealing) of joints in combination with painting and plastering of external walls; The unit cost of this activity amounts to 292.9 Rubles/m2 (11.1% of the total unit cost of measures as part of Package No. 1); ⇒ Repair of roofs (garret floors) with insulation and waterproofing. The unit cost of this activity amounts to 264.4 Rubles/m2 (10% of the total unit cost of measures as part of Package No. 1);

The Institute for Urban Economics (IUE) 58 Center for Energy Efficiency (CENEf) Housing Initiative for Eastern Europe (IWO) Institute Byvania (The Institute of Housing)

Russian Urban Housing Energy Efficiency Programme – Model Development Analyse the current state of the housing stock 4. The following are the most cost intensive measures for buildings of Type 3: ⇒ Repair (upgrade) or replacement of elevator equipment. The unit cost of this activity amounts to 519 Rubles/m2 (28.3% of the total unit cost of measures as part of Package No. 1); ⇒ Repair (sealing) of joints in combination with painting and plastering of external walls. The unit cost of this activity amounts to 289.7 Rubles/m2 (15.8% of the total unit cost of measures as part of Package No. 1); ⇒ Installation of sealing gaskets between window frames and walls of a building (with the installation of a third window pane or application of a film). The unit cost of this activity amounts to 197.2 Rubles/m2 (10.7% of the total unit cost of measures as part of Package No. 1). 5. The following are the most cost intensive measures for buildings of Type 4: ⇒ Repair (upgrade) or replacement of elevator equipment. The unit cost of this activity amounts to 365 Rubles/m2 (24% of the total unit cost of measures as part of Package No. 1); ⇒ Repair (sealing) of joints in combination with painting and plastering of external walls. The unit cost of this activity amounts to 230.2 Rubles/m2 (15.8% of the total unit cost of measures as part of Package No. 1); ⇒ Activity named "Installation of sealing gaskets between window frames and walls of a building (with the installation of a third window pane or application of a film)". The unit cost of this activity amounts to 213.9 Rubles/m2 (14.1% of the total unit cost of measures as part of Package No. 1). 6. For buildings of Type 1 the activity named "replacement of electric bulbs in public spaces by for energy-efficient lighting fixtures" is distinguished by the minimum discounted cost. The unit cost of this activity amounts to 7.2 Rubles/m2 (0.2% of the total unit cost of measures as part of Package No. 1); 7. For buildings of Type 2, 3 and 4 the activity named "repair of front-entrance doors with installation of door closers (providing automatic door closing" is distinguished by the minimum discounted cost. In which case: ⇒ The unit cost of this activity amounts to 3.9 Rubles/m2 for buildings of Type 2 (0.15% of the total unit cost of measures as part of Package No. 1); ⇒ The unit cost of this activity amounts to 1.3 Rubles/m3 for buildings of Type 3 (0.07% of the total unit cost of measures as part of Package No. 1); ⇒ The unit cost of this activity amounts to 0.4 Rubles/m4 for buildings of Type 4 (0.03% of the total unit cost of measures as part of Package No. 1);

3.2.2. Package No. 2 (realistic) This package is aimed at implementing measures necessary to reduce wear and tear of buildings, to improve buildings performance as well as to improve living conditions for residents. Package No. 2 (realistic) includes the following activities: 1. Measures designed to improve heat retention properties (heat insulation) of enclosing structures of buildings. Such measures include: ⇒ repair of roofs (with insulation and waterproofing);

The Institute for Urban Economics (IUE) 59 Center for Energy Efficiency (CENEf) Housing Initiative for Eastern Europe (IWO) Institute Byvania (The Institute of Housing)

Russian Urban Housing Energy Efficiency Programme – Model Development Analyse the current state of the housing stock ⇒ repair of basements (with basement floor insulation); ⇒ repair (sealing) of joints in combination with painting and plastering of external walls; ⇒ Installation of state-of-the-art energy-efficient triple glazed windows in plastic window frames; ⇒ repair of front-entrance doors with the installation of door closers (providing automatic door closing). If necessary, a second door may be installed at wind- porches in building entrances as part of this measure; In this case, the activity named "Installation of sealing gaskets between window frames and walls of a building (with the installation of a third window pane or application of a film) as part of the above Package No. 1 is substituted by a more efficient measure named "Installation of state-of-the-art energy-efficient triple glazed windows in plastic window frames." 2. Measures to improve heating and hot water supply systems in buildings allowing to control the firing rate for heating and hot water supply. In this case, heat loss due to imbalance of supply and demand (in a building) is reduced. Such measures include: ⇒ Installation of an automated single-building heat distribution and metering station (instead of mixing valves in a building). In this case, the activity named "Installation of an automated heating system control unit instead of mixing valves in a building" as part of the above Package No. 1 is substituted. 3. Installation of hot water circulation line in the hot water supply system. 4. Installation of heat-reflecting screens behind heating radiators in a building. 5. Measures designed to reduce physical wear and to extend operating life of in-building utility services located in the attics or basements of buildings (same measures as in Package No. 1). 6. Measures to replace physically worn out in-building electrical networks (wiring) and equipment of input distribution devices. If necessary, reactive power compensation devices when operating electric motors of pumping equipment and/or elevators may be installed as part of this measure. 7. Low-cost energy-saving measure to replace electric bulbs in public spaces by energy- efficient lighting fixtures. 8. Measures designed to install single-building utility meters (heat energy meters, electricity meters, cold and hot water meters and natural gas meters). Same measures as in the above Package No. 1. 9. Measure designed to repair (upgrade) or replace elevator equipment (elevators). 10. Repair of drainage pipes (storm water pipes). 11. Measures to improve public spaces, including: ⇒ repair of stairwells; ⇒ painting of walls and whitewashing of ceilings in public places; ⇒ repair of garbage chutes in buildings.

The Institute for Urban Economics (IUE) 60 Center for Energy Efficiency (CENEf) Housing Initiative for Eastern Europe (IWO) Institute Byvania (The Institute of Housing)

Russian Urban Housing Energy Efficiency Programme – Model Development Analyse the current state of the housing stock The total number of types of works to be implemented as part of Package No. 2 (realistic) is 20. The unit cost of works included in Package No. 2 for residential buildings with different total floor space and different number of storeys is specified in Table 3.5.

Table 3.5 Unit cost of Package No. 2 of measures per one m2 of the total building floor- space Description of activity Measur Number of floors ement up to four 4 Five- to eight- Nine- to Thirteen- to unit floors in a storeyed twelve- sixteen- building buildings storeyed storeyed buildings buildings Repair of roofs (with insulation and Rubles/ 814.5 264.4 174.1 140.9 waterproofing); m2 Repair of basements (with basement Rubles/ 474.1 210.3 131.2 81.2 floor insulation); m2 Repair (sealing) of joints in Rubles/ 255.2 292.9 289.7 230.2 combination with painting and m2 plastering of external walls;

Installation of state-of-the-art energy- Rubles/ 1118.4 765.7 1149.2 1143.9 efficient triple-glazed windows in m2 plastic window frames (energy- efficient triple-pane windows in PVC- frames) Repair (sealing) of front-entrance Rubles/ 10.1 3.9 1.3 0.4 doors with the installation of door m2 closers (providing automatic door closing).

Repair (replacement) of utility Rubles/ 464.4 154.6 63.7 46.7 systems inside a building in m2 basements or attic floors, including: Repair of heating pipes in a 159.1 55.0 21.8 16.0 building with thermal insulation; pipes of the hot water supply 100.7 29.0 13.8 10.1 system in a building with the installation of water pressure regulators at the inlet; repair of pipes of the cold water 68.2 23.5 9.4 6.9 supply system in a building with the installation of water pressure regulators at the inlet; pipes of the sanitation (sewage) 68.2 23.5 9.4 6.9 system inside a building; pipes of the gas-supply system 68.2 23.5 9.4 6.9 inside a building; Installation of single-building utility Rubles/ 232.2 36.2 19.3 17.0 meters, including: m2 a single-building heat energy 176.0 27.4 14.6 12.9 consumption meter (heat meter); a single-building hot water 14.3 2.2 1.2 1.1 consumption meter (hot water meter) a single-building cold water 12.4 1.9 1.0 0.9 consumption meter (cold water meter) single-building multirate 8.5 1.3 0.7 0.6 electronic electricity meters with enhanced accuracy (minimum 2.0); single-building natural gas 20.9 3.2 1.7 1.5 consumption meters (gas meters) The Institute for Urban Economics (IUE) 61 Center for Energy Efficiency (CENEf) Housing Initiative for Eastern Europe (IWO) Institute Byvania (The Institute of Housing)

Russian Urban Housing Energy Efficiency Programme – Model Development Analyse the current state of the housing stock Description of activity Measur Number of floors ement up to four 4 Five- to eight- Nine- to Thirteen- to unit floors in a storeyed twelve- sixteen- building buildings storeyed storeyed buildings buildings Installation of an automated single- Rubles/ 818.6 303.8 217.9 228.0 building heat distribution and m2 metering station (replacement of mixing valves in a building). Installation of hot water return lines in Rubles/ 303.5 73.5 45.0 46.5 the hot water supply systems m2 Installation of heat-reflecting screens Rubles/ 42.1 20.2 25.2 34.2 behind heating radiators m2 Replacement of electric bulbs in Rubles/ 7.2 4.9 2.5 0.9 public spaces by energy-saving m2 lighting fixtures Replacement of physically worn out Rubles/ 326 250 192 180 in-building electrical networks m2 (wiring) and equipment of input distribution devices.

Repair (upgrade) or replacement of Rubles/ 1,009 519 365 elevator equipment m2 Repair of water disposal systems Rubles/ 14.6 10.0 5.0 1.7 (storm water pipes) in the buildings. m2 Improvement of public spaces (repair of Rubles/ 204 279 242 217 stairwells, painting walls and m2 whitewashing ceilings of public spaces, repair of garbage chutes). Costs of design and estimation Rubles/ 150 150 150 150 documentation and contingencies m2 ditto % 2.9 3.9 4.7 5.3 Total unit cost of measures as part Rubles/ 5,193.0 3,808.6 3,201.2 2,849.1 of Package No. 2 (realistic) m2 Source: Consultant's estimates

Analysis of Table 3.5 reveals that: 1. The total unit cost of measures as part of Package No. 2 (realistic) amounts: ⇒ for residential buildings of Type 1 (up to 4 floors inclusive) to 5,193 Rubles/m2; As compared to the above Package No. 1 the total unit cost of measures has grown by 1,882.1 Rubles/m2 (56%); ⇒ for residential buildings of Type 2 (5 to 8 floors) to 3,808.6 Rubles/m2; As compared to the above Package No. 1 the total unit cost of measures has grown by 1,176.3 Rubles/m2 (45%); ⇒ for residential buildings of Type 3 (9 to 12 floors) to 3,201.2 Rubles/m2. As compared to the above Package No. 1 the total unit cost of measures has grown by 1373.2 Rubles/m2 (43%); ⇒ for residential buildings of Type 4 (13 to 16 floors) to 2,849.1 Rubles/m2; As compared to the above Package No. 1 the total unit cost of measures has grown by 1,332.9 Rubles/m2 (47%); 2. The following are the most cost intensive measures for buildings of Type 1: ⇒ Installation of state-of-the-art energy-efficient triple-glazed windows in plastic window frames (energy-efficient triple-pane windows in PVC-frames). The unit

The Institute for Urban Economics (IUE) 62 Center for Energy Efficiency (CENEf) Housing Initiative for Eastern Europe (IWO) Institute Byvania (The Institute of Housing)

Russian Urban Housing Energy Efficiency Programme – Model Development Analyse the current state of the housing stock cost of this activity amounts to 1,118.4 Rubles/m2 or 22% of the total unit cost of measures as part of Package No. 2; ⇒ Installation of an automated single-building heat distribution and metering station instead of mixing valves in a building. The unit cost of this activity amounts to 818.6 Rubles/m2 or 15.7% of the total unit cost of measures as part of Package No. 2; ⇒ Repair of roofs (garret floors) with insulation and waterproofing. The unit cost of this activity amounts to 814.5 Rubles/m2 or 15.6% of the total unit cost of measures as part of Package No. 2; 3. The following are the most cost intensive measures for buildings of Type 2: ⇒ Repair (upgrade) or replacement of elevator equipment. The unit cost of this activity amounts to 1,009 Rubles/m2 or 26.5% of the total unit cost of measures as part of Package No. 2; ⇒ Installation of state-of-the-art energy-efficient triple-glazed windows in plastic window frames (energy-efficient triple-pane windows in PVC-frames). The unit cost of this activity amounts to 765.7 Rubles/m2 or 20.1% of the total unit cost of measures as part of Package No. 2; ⇒ Installation of an automated single-building heat distribution and metering station instead of mixing valves in a building. The unit cost of this activity amounts to 303.8 Rubles/m2 or 8% of the total unit cost of measures as part of Package No. 2; 4. The following are the most cost intensive measures for buildings of Type 3: ⇒ Installation of state-of-the-art energy-efficient triple-glazed windows in plastic window frames (energy-efficient triple-pane windows in PVC-frames). The unit cost of this activity amounts to 1,149 Rubles/m2 or 35.8% of the total unit cost of measures as part of Package No. 2; ⇒ Repair (upgrade) or replacement of elevator equipment. The unit cost of this activity amounts to 519 Rubles/m2 or 16.2% of the total unit cost of measures as part of Package No. 2; ⇒ Repair (sealing) of joints in combination with painting and plastering of external walls. The unit cost of this activity amounts to 289.7 Rubles/m2 or 9% of the total unit cost of measures as part of Package No. 2; 5. The following are the most cost intensive measures for buildings of Type 4: ⇒ Installation of state-of-the-art energy-efficient triple-glazed windows in plastic window frames (energy-efficient triple-pane windows in PVC-frames). The unit cost of this activity amounts to 1,143.9 Rubles/m2 or 40.1% of the total unit cost of measures as part of Package No. 2; ⇒ Repair (upgrade) or replacement of elevator equipment. The unit cost of this activity amounts to 365 Rubles/m2 or 12.8% of the total unit cost of measures as part of Package No. 2; ⇒ Repair (sealing) of joints in combination with painting and plastering of external walls. The unit cost of this activity amounts to 230.3 Rubles/m2 or 8% of the total unit cost of measures as part of Package No. 2;

The Institute for Urban Economics (IUE) 63 Center for Energy Efficiency (CENEf) Housing Initiative for Eastern Europe (IWO) Institute Byvania (The Institute of Housing)

Russian Urban Housing Energy Efficiency Programme – Model Development Analyse the current state of the housing stock 6. For buildings of Type 1 the activity named "replacement of electric bulbs in public spaces by energy-efficient lighting fixtures" is distinguished by the minimum discounted cost. The unit cost of this activity amounts to 7.2 Rubles/m2 or 0.13% of the total unit cost of measures as part of Package No. 2; 7. For buildings of Type 2, 3 and 4 the activity named "repair of front-entrance doors with installation of door closers (providing automatic door closing)" is distinguished by the minimum unit cost. In which case: ⇒ The unit cost of this activity amounts to 3.9 Rubles/m2 for buildings of Type 2 (0.1% of the total unit cost of measures as part of Package No. 2); ⇒ The unit cost of this activity amounts to 1.3 Rubles/m3 for buildings of Type 3 (0.04% of the total unit cost of measures as part of Package No. 2); ⇒ The unit cost of this activity amounts to 0.4 Rubles/m4 for buildings of Type 4 (0.01% of the total unit cost of measures as part of Package No. 2);

3.2.3. Package No. 3 (energy - efficient) This package is aimed at implementing measures necessary to reduce wear and tear of buildings, to improve buildings performance as well as to significantly reduce energy resources and water consumption. Part of measures forming Package No. 3 (energy-efficient) is aimed at improvment of living conditions of residents). Package No. 3 ( (energy-efficient)) includes the following activities: 1. Measures designed to improve heat retention properties (heat insulation) of enclosing structures of buildings. Such measures include: ⇒ repair of roofs (with insulation and waterproofing); ⇒ repair of basements (with basement floor insulation); ⇒ heat insulation of external walls; ⇒ Installation of state-of-the-art energy-efficient triple-glazed windows in plastic window frames; ⇒ repair of front-entrance doors with the installation of door closers (providing automatic door closing). If necessary, a second door may be installed at wind- porches in building entrances as part of this measure; The activity named "Repair (sealing) of joints in combination with painting and plastering of external walls" which was included in the above mentioned Packages No. 1 and No. 2 is substituted by a more efficient measure named "Heat insulation of external walls." 2. Measures aimed at a complete reconstruction (replacement) of in-building utility services. Such measures include: ⇒ complete reconstruction of the heating system (replacement of pipes with thermal insulation in basements or attics; replacement of riser pipes and supply lines to heating radiators; replacement of radiators in the apartments and public spaces); ⇒ complete reconstruction of in-building hot water pipes (replacement of pipes in basements; replacement of riser pipes of the hot water supply system; installation of pressure regulators at the inlet);

The Institute for Urban Economics (IUE) 64 Center for Energy Efficiency (CENEf) Housing Initiative for Eastern Europe (IWO) Institute Byvania (The Institute of Housing)

Russian Urban Housing Energy Efficiency Programme – Model Development Analyse the current state of the housing stock ⇒ complete reconstruction of in-building cold water pipes (replacement of pipes in basements; replacement of riser pipes of the cold water supply system; installation of pressure regulators at the inlet); ⇒ complete reconstruction of pipes of the in-building sanitation system (replacement of pipes in basements; replacement of riser pipes of the sanitation (sewage) system); ⇒ complete reconstruction of pipes of the in-building gas supply system (replacement of pipes in basements; replacement of riser pipes of the gas supply system); 3. Measures to improve heating and hot water supply systems in buildings allowing to control the firing rate for heating and hot water supply. In this case, heat loss due to imbalance of supply and demand (in a building) is reduced. Such measures include: ⇒ Installation of an automated single-building heat distribution and metering station (instead of mixing valves in a building). 4. Measures to improve heating systems in the buildings allowing to control firing rate for heating both separately by risers of the heating system and directly in residential rooms (apartments) of a building. Such measures include: ⇒ Installation of balancing valves in riser pipes of the heating system. This measure allows to control the firing rate separately by risers of the heating system (eliminates maladjustment of risers of the heating system in a building); ⇒ Installation of thermostatic control valves (temperature regulators) on heating radiators in the apartments of a building. This measure allows to adjust the firing rate directly on heating radiators in the apartments of a building. 5. Installation of hot water circulation line in the hot water supply system. 6. Installation of heat-reflecting screens behind heating radiators in a building. 7. Measures to replace physically worn out in-building electrical networks (wiring) and equipment of input distribution devices. If necessary, reactive power compensation devices when operating electric motors of pumping equipment and/or elevators may be installed as part of this measure. 8. Low-cost energy-saving measure to replace electric bulbs in public spaces by energy- efficient lighting fixtures. 9. An energy-saving measure consisting of installation of occupancy sensors in public spaces. This measure allows to automatically control light intensity in public spaces. 10. Measures designed to install single-building utility meters (heat energy meters, electricity meters, cold and hot water meters and natural gas meters). Same measures as in the above Packages No. 1 and No. 2. 11. Measure designed to repair (upgrade) or replace elevator equipment (elevators). 12. Repair of drainage pipes (storm water pipes). 13. Measures to provide public amenities. Same measures as in the above Package No. 2.

The Institute for Urban Economics (IUE) 65 Center for Energy Efficiency (CENEf) Housing Initiative for Eastern Europe (IWO) Institute Byvania (The Institute of Housing)

Russian Urban Housing Energy Efficiency Programme – Model Development Analyse the current state of the housing stock The total number of types of works to be implemented as part of Package No. 3 (energy- efficient)) is 23. The unit cost of works included in Package No. 3 for residential buildings with different total floor space and different number of storeys is specified in Table 3.6. Table 3.6 Unit cost of Package No. 3 of measures per one m2 of the total building floor- space Number of floors Measur up to four 4 Five- to eight- Nine- to Thirteen- to Description of activity ement floors in a storeyed twelve- sixteen- unit building; buildings; storeyed storeyed buildings; buildings; Repair of roofs (with insulation and Rubles/ 814.5 264.4 174.1 140.9 waterproofing); m2 Repair of basements (with basement Rubles/ 474.1 210.3 131.2 81.2 floor insulation); m2 Heat insulation of external walls: Rubles/ 967.8 1,131.5 1,193.7 894.6 m2 Installation of state-of-the-art energy- Rubles/ 1118.4 765.7 1149.2 1143.9 efficient triple-glazed windows in m2 plastic window frames (energy- efficient triple-pane windows in PVC- frames) Repair (sealing) of front-entrance Rubles/ 10.1 3.9 1.3 0.4 doors with the installation of door m2 closers (providing automatic door closing).

Complete makeover (replacement) of Rubles/ 849.5 340.8 289.1 350.3 in-building utility services, including: m2

pipes of the heating system inside 479.8 208.7 213.7 276.1 a building; in-building pipes of the hot water 126.4 45.6 28.2 29.0 supply system in-building pipes of the cold 81.1 28.8 15.7 15.1 water supply system pipes of the sanitation (sewage) 81.1 28.8 15.7 15.1 system inside a building; pipes of the gas-supply system 81.1 28.8 15.7 15.1 inside a building; Installation of single-building utility Rubles/ 232.2 36.2 19.3 17.0 meters, including: m2 a single-building heat energy 176.0 27.4 14.6 12.9 consumption meter (heat meter); a single-building hot water 14.3 2.2 1.2 1.1 consumption meter (hot water meter) a single-building cold water 12.4 1.9 1.0 0.9 consumption meter (cold water meter) single-building multirate 8.5 1.3 0.7 0.6 electronic electricity meters with enhanced accuracy (minimum 2.0); single-building natural gas 20.9 3.2 1.7 1.5 consumption meters (gas meters) Installation of an automated single- Rubles/ 818.6 303.8 217.9 228.0 building heat distribution and m2 metering station (replacement of mixing valves in a building). Installation of hot water return lines in Rubles/ 303.5 73.5 45.0 46.5 the hot water supply systems m2

The Institute for Urban Economics (IUE) 66 Center for Energy Efficiency (CENEf) Housing Initiative for Eastern Europe (IWO) Institute Byvania (The Institute of Housing)

Russian Urban Housing Energy Efficiency Programme – Model Development Analyse the current state of the housing stock Number of floors Measur up to four 4 Five- to eight- Nine- to Thirteen- to Description of activity ement floors in a storeyed twelve- sixteen- unit building; buildings; storeyed storeyed buildings; buildings; Installation of heat-reflecting screens Rubles/ 42.1 20.2 25.2 34.2 behind heating radiators m2 Installation of balancing valves in ri- Rubles/ 111.9 30.6 24.0 27.5 ser pipes of the heating system m2 Installation of thermostatic control Rubles/ 198.1 91.0 121.4 170.2 valves (temperature regulators) on m2 heating radiators Replacement of electric bulbs in Rubles/ 7.2 4.9 2.5 0.9 public spaces by energy-saving m2 lighting fixtures Installation of occupancy sensors in Rubles/ 63.9 43.6 21.9 7.6 public spaces m2 Replacement of physically worn out Rubles/ 326 250 192 180 in-building electrical networks m2 (wiring) and equipment of input distribution devices.

Repair (upgrade) or replacement of Rubles/ 1,009 519 365 elevator equipment m2 Repair of water disposal systems Rubles/ 14.6 10.0 5.0 1.7 (storm water pipes) in the buildings. m2 Improvement of public spaces (repair Rubles/ 204 279 242 217 of stairwells, painting walls and m2 whitewashing ceilings of public spaces, repair of garbage chutes). Costs of design and estimation Rubles/ 150 150 150 150 documentation and contingencies m2 ditto % 2.2 3.0 3.3 3.7 Total unit cost of measures as part Rubles/ 6,706.7 5,018.8 4,523.1 4,056.7 of Package No. 3 (energy-efficient) m2

Source: Consultant's estimates

Analysis of Table 3.6 reveals that: 1. The total unit cost of measures as part of Package No. 3 (energy-efficient) amounts: ⇒ for residential buildings of Type 1 (up to 4 floors inclusive) to 6,706.7 Rubles/m2; As compared to the above Package No. 2 the total unit cost of measures has grown by 1513.7 Rubles/m2 (29%); ⇒ for residential buildings of Type 2 (5 to 8 floors) to 5,018.8 Rubles/m2; As compared to the above Package No. 2 the total unit cost of measures has grown by 1,176.3 Rubles/m2 (32%); ⇒ for residential buildings of Type 3 (9 to 12 floors) to 4,523.1 Rubles/m2. As compared to the above Package No. 2 the total unit cost of measures has grown by 1,321.9 Rubles/m2 (29%); ⇒ for residential buildings of Type 4 (13 to 16 floors) to 4056.7 Rubles/m2; As compared to the above Package No. 2 the total unit cost of measures has grown by 1,207.6 Rubles/m2 (42%);

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Russian Urban Housing Energy Efficiency Programme – Model Development Analyse the current state of the housing stock 2. The following are the most cost intensive measures for buildings of Type 1: ⇒ Installation of state-of-the-art energy-efficient triple-glazed windows in plastic window frames (energy-efficient triple-pane windows in PVC-frames). The unit cost of this activity amounts to 1,118.4 Rubles/m2 or 16.6% of the total unit cost of measures as part of Package No. 3; ⇒ Activity named "Heat insulation of external walls"; The unit cost of this activity amounts to 967.8 Rubles/m2 or 14.4% of the total unit cost of measures as part of Package No. 3; ⇒ Activity named "Complete reconstruction (replacement) of in-building utility services." The unit cost of this activity amounts to 849.5 Rubles/m2 or 12.6% of the total unit cost of measures as part of Package No. 3; 3. The following are the most cost intensive measures for buildings of Type 2: ⇒ Activity named "Heat insulation of external walls"; The unit cost of this activity amounts to 1,131.5 Rubles/m2 or 22.5% of the total unit cost of measures as part of Package No. 3; ⇒ Repair (upgrade) or replacement of elevator equipment. The unit cost of this activity amounts to 1,009 Rubles/m2 or 20% of the total unit cost of measures as part of Package No. 3; ⇒ Activity named "Installation of state-of-the-art energy-efficient triple-glazed windows in plastic window frames (energy-efficient triple-pane windows in PVC-frames)". The unit cost of this activity amounts to 765.7 Rubles/m2 or 15.2% of the total unit cost of measures as part of Package No. 3; 4. The following are the most cost intensive measures for buildings of Type 3: ⇒ Activity named "Heat insulation of external walls"; The unit cost of this activity amounts to 1,193.7 Rubles/m2 or 26.3% of the total unit cost of measures as part of Package No. 3; ⇒ Activity named "Installation of state-of-the-art energy-efficient triple- glazed windows in plastic window frames (energy-efficient triple-pane windows in PVC-frames)". The unit cost of this activity amounts to 1,149.2 Rubles/m2 or 25.4% of the total unit cost of measures as part of Package No. 3; ⇒ Repair (upgrade) or replacement of elevator equipment. The unit cost of this activity amounts to 519 Rubles/m2 or 11.4% of the total unit cost of measures as part of Package No. 3; 5. The following are the most cost intensive measures for buildings of Type 4: ⇒ Activity named "Installation of state-of-the-art energy-efficient triple- glazed windows in plastic window frames (energy-efficient triple-pane windows in PVC-frames)". The unit cost of this activity amounts to 1,143.9 Rubles/m2 or 28.2% of the total unit cost of measures as part of Package No. 3; ⇒ Activity named "Heat insulation of external walls"; The unit cost of this activity amounts to 894.6 Rubles/m2 or 22.1% of the total unit cost of measures as part of Package No. 3; The Institute for Urban Economics (IUE) 68 Center for Energy Efficiency (CENEf) Housing Initiative for Eastern Europe (IWO) Institute Byvania (The Institute of Housing)

Russian Urban Housing Energy Efficiency Programme – Model Development Analyse the current state of the housing stock ⇒ Repair (upgrade) or replacement of elevator equipment. The unit cost of this activity amounts to 365 Rubles/m2 or 8.9% of the total unit cost of measures as part of Package No. 3; 6. For buildings of Type 1 the activity named "Replacement of electric bulbs in public spaces by energy-efficient lighting fixtures" is distinguished by the minimum unit cost. The unit cost of this activity amounts to 7.2 Rubles/m2 or 0.11% of the total unit cost of measures as part of Package No. 3; 8. For buildings of Type 2, 3 and 4 the activity named "Repair of front-entrance doors with installation of door closers (providing automatic door closing)" is distinguished by the minimum unit cost. In which case: ⇒ The unit cost of this activity amounts to 3.9 Rubles/m2 for buildings of Type 2 (0.07% of the total unit cost of measures as part of Package No. 3); ⇒ The unit cost of this activity amounts to 1.3 Rubles/m3 for buildings of Type 3 (0.02% of the total unit cost of measures as part of Package No. 2); ⇒ The unit cost of this activity amounts to 0.4 Rubles/m4 for buildings of Type 4 (0.01% of the total unit cost of measures as part of Package No. 3).

3.3 RESOURCE SAVING AS A RESULT OF IMPLEMENTATION OF PACKAGES OF MEASURES FOR CAPITAL REPAIRS OF RESIDENTIAL BUILDINGS

3.3.1. The procedure for estimating the amount of savings as a result of implementation of energy-saving and energy efficiency enhancement measures Annual savings due to reduced loss of energy resources was defined as a change in the amount of loss of energy resources (heat, electricity, water, gas) before and after implementation of measures by the following formula: ∆Пээ = П0 - П1, (1), wherein ∆Пээ is the amount of savings due to reduced loss of energy resources in thousands of tons of coal equivalent; П0 is the loss of energy resources before the implementation of a measure in thousands of tons of coal equivalent; П1 is the loss of energy resources after the implementation of a measure in thousands of tons of coal equivalent; The savings estimation due to reduced loss is defined by the following formula: Зэп = ∆Пээ * Тээ (2), wherein Зэп - economic benefit from loss reduction in thousands of Rubles; ∆Пээ is the amount of savings due to reduced loss of energy resources in thousands of tons of coal equivalent; Тээ is the tariff for purchase of energy to compensate loss of energy in Rubles per ton of coal equivalent. (A scheduled tariff is applied for the period (year) of calculation).

3.3.2. Estimation of the amount of utilities savings as a result of implementation of energy efficiency enhancement measures The Consultant has developed 3 standard packages of expedient measures that should be implemented during capital repairs of residential buildings while benefits from each of the The Institute for Urban Economics (IUE) 69 Center for Energy Efficiency (CENEf) Housing Initiative for Eastern Europe (IWO) Institute Byvania (The Institute of Housing)

Russian Urban Housing Energy Efficiency Programme – Model Development Analyse the current state of the housing stock packages are described below. These estimates are based on the average figures achieved in the real practice of resource savings in apartment buildings. As the experience of capital repairs in the city of Moscow has shown, more significant amounts of savings as a result of packaged capital repairs of buildings can be achieved in practice, if apartment owners are substantially motivated. Heat energy savings can exceed 40%. However, more moderate estimates are quoted below. To estimate savings as a result of each package of measures, the most commonly encountered four types of apartment buildings in Russia were selected. The Consultant estimated savings per unit, i.e. savings per one m2 of the total floor space of a building for each measure within three standard packages. Comparison of savings from packages of measures implemented during capital repairs of residential buildings (relative amount of savings on some utility resources per one m2 of the total building floor space) is specified in table 3.7. A detailed estimation of savings from measures in each of the three standard packages is described in Annex 2

Table 3.7 shows that package #3 provides for the highest saving of utility resources. Besides, a specific size of savings is predetermined by the type of a building. Higher savings are typical for low-rise buildings (up to four floors). The more floors a building has the fewer specific saving of utility resources will be attained. The payback period of these packages will vary according to characteristics of a building (to the presence of a saving potential) and to tariffs for energy resources and water which differ considerably across regions. Besides, unit costs of implementing the same package of measures may vary 1.5-2 times depending on how many floors a building has. (See Section 3.2) This also significantly influences the payback period of capital repairs which are aiming at improved energy efficiency in apartment buildings. All these factors make the payback ranges excessively wide

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Table 3.7 Comparison of savings from packages of measures implemented during capital repairs of residential buildings (relative amount of savings on some utility resources per one m2 of the total building floor space)

Number of floors in a building up to four floors inclusive; 5 to 8 floors; 9 to 12 floors; 13 to 16 floors; without reference to the number Name of of storeys Heat Heat Heat package Elec Heat Elec Heat Elec Elec Elec ener - Gas Water - Gas Water - Gas Water ener - Gas Water ener - Gas Water - tricity energy tricity energy tricity - tricity - tricity gy gy gy % % % % % % % % % % % % % % % % % % % % Package 12.4 7.7 14.0 13.0 10.3 8.8 12.0 10.5 10.5 8.0 10.0 8.0 7.4 2.4 8.0 5.5 9.5 7.6 10.5 10.0 No. 1 Package 21.0 7.7 14.0 16.0 20.8 8.8 12.0 13.0 20.6 8.0 10.0 10.0 20.4 2.4 8.0 7.0 20.0 7.6 10.5 12.0 No. 2

Package 26.6 10.5 18.0 22.0 25.7 11.3 15.0 17.5 24.4 10.3 12.0 13.0 23.8 4.0 9.0 6.5 24.1 9.9 13.0 16.0 No. 3

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CONCLUSIONS

1. On the basis of effective regulatory and legal documents and relying on available Russian and international practice the Consultant has put forward three packages of measures which may be implemented within capital repairs of apartment buildings, and which vary according to tasks and amounts of financial resources for capital repairs. These are baseline, realistic and energy efficient packages: • Package #1 (baseline) aims at supporting a building in a serviceable state. There are 15 measures included into the package. • Package #2 (realistic) is oriented towards the reduction of physical wear and tear and obsolescence, the enhancement of operational characteristics of a building, as well as the improvement of living conditions of residents. The total number of measures in this package is 20. • Package # 3 (energy efficient) will help to reduce physical wear and tear, and obsolescence, enhance operational characteristics of a building, and also considerably reduce consumption of energy resources and water, and improve living conditions of residents. 2. Four most wide-spread, in Russia, types of apartment buildings have been chosen to calculate the cost of each of the packages. These packages differed by the number of floors, total area and other architectural characteristics and structural performance of a building. 3. The unit cost of these packages of measures - which are recommended for implementation within capital repairs – varies according to the type of an apartment building, and is as follows: • For package # 1 – from 3,310.9 RUR/m2 to 1,516.2 RUR/m2; • For package # 2 – from 5,193 RUR/m2 to 2,849.1 RUR/m2; • For package # 3 - from 6,706.7 RUR/m2 to 4,056.7 RUR/m2. On the basis of the calculations it is clear that the highest unit cost of repair of each package is typical for low-rise buildings (those with up to 4 floors, and with total area of up to 750 m2), while the lowest unit cost of repair – for high-rise buildings (those with 13-16 and more floors). 4. The calculations show that an average specific saving of utility resources (per one sq. m.) increases while passing from package #1 to package #3, and varies within the packages according to the type of a building. The higher value of specific saving of utility resources has been calculated for buildings with fewer floors. For buildings of the 1st type (with up to 4 floors) and for packages #1, #2, #3, respectively, the saving will be as follows: • Heat – 12.4%, 21.0%, 26.6% • Electricity – 7.7%, 7.7%, 10.5%; • Gas – 14%, 14%, 18%; • Water – 13%, 16%, 22%.

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Russian Urban Housing Energy Efficiency Programme – Model Development Analyse the current state of the housing stock For buildings of the 2nd type (with 5-8 floors) and for packages #1, #2, #3, respectively, the saving will be as follows: • Heat – 10.3%, 20.8%, 25.7%; • Electricity – 8.8%, 8.8%, 11.3%; • Gas – 12%, 12%, 15%; • Water – 10.5%, 13.0%, 17.5%. For buildings of the 3rd type (with 9-12 floors) and for packages #1, #2, #3, respectively, the saving will be as follows: • Heat – 10.5%, 20.6%, 24.4%; • Electricity – 8.0%, 8.0%, 10.3%; • Gas –10%, 10%, 12%; • Water – 8%, 10%, 13%. For buildings of the 4th type (with 13-16 floors) and for packages #1, #2, #3, respectively, the saving will be as follows: • Heat – 7.4%, 20.4%, 23.8%; • Electricity – 2.4%, 2.4%, 4.0%; • Gas – 8%, 8%, 9%; • Water – 5.5%, 7.0%, 6.5%.

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SECTION 4. LONG-TERM FORECAST SCENARIOS FOR CAPITAL REPAIRS UNTIL 2030

This section reviews three scenarios of capital repair dynamics which differ from one another by planned annual volumes of capital repairs and the proportion of comprehensive repairs embracing energy saving measures: “Momentum Strategy”, “Enhancement Strategy”, “As in Europe”. For each scenario – with accepted assumptions – the demand for capital repairs of apartment buildings, the volume of undertaken capital repairs and the costs funded from various sources of financing have been calculated for a period until 2035.

4.1 DESCRIPTION OF KEY ASSUMPTIONS IN SCENARIOS

It is not possible to exactly identify the demand for capital repairs in the long run. Several important factors influence the evaluation of demand for capital repairs of residential buildings, including but not limited to: ⇒ change in the age structure of the housing stock over time, including commissioning of new residential buildings and demolition of dilapidated and unsafe buildings and along with this the changes in the structure of the housing stock with regard to walling material, number of storeys, average number of apartments and changes in the percentage of apartment buildings; ⇒ intensity of capital repairs of buildings of different ages; ⇒ distribution of the scope of capital repairs between apartment buildings and private buildings; ⇒ regulatory time interval between capital repairs the degree of its complexity; ⇒ regulatory requirements for the minimum list of capital repairs and target indicators of efficiency, including the parameters of reliability, quality and energy-efficiency; ⇒ decision-making plans with regard to scopes and characteristics of capital repairs; ⇒ models of financing, availability of funding sources and financial constraints that determine the feasibility of capital repair programs and costs of debt financing for such purposes; ⇒ possible income flows by main sources of funding within each model and changes in costs of construction and erection works; ⇒ possibility of covering part of costs by means of savings on housing stock maintenance achieved as a result of capital repairs. Various combinations of the said factors may be encountered in the future. Therefore, for the purpose of analysis a "scenario approach" was chosen allowing to do a forecast for changes in the demand for capital repairs of residential buildings for a period until 2035 under different assumptions and to assess probable trends on the basis of an analysis of the degree of feasibility of such assumptions. In this study three scenarios for capital repairs were considered: ⇒ "Sluggish Strategy", i.e. a scenario extrapolating existing trends in recent years in the field of capital repairs and serving as a "base line". In this scenario it is assumed

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Russian Urban Housing Energy Efficiency Programme – Model Development Analyse the current state of the housing stock that 2% of the total floor space of apartment buildings would undergo capital repairs each year, primarily those apartment buildings which have been in operation for 40 years, of which at least 50% should undergo comprehensive capital repairs according to plans which do not stipulate requirements with regard to reduction of energy consumption; ⇒ "Improvement Strategy", i.e. a scenario according to which it is assumed that starting from 2015 3% of the total floor space of residential buildings will undergo capital repairs each year, primarily apartment buildings which have been in operation for 40 years, of which at least 75% should undergo comprehensive capital repairs according to plans stipulating requirements with regard to reduction of energy consumption by at least 15%; ⇒ "Like in Europe", i.e. a scenario in which it is assumed that starting from 2015 4% of the total floor space of residential buildings will undergo capital repairs each year, of which at least 90% should undergo comprehensive capital repairs according to plans stipulating requirements with regard to reduction of energy consumption by at least 30%. In each scenario the following indicators are to be monitored: ⇒ changes in the age structure of apartment buildings, their average age and the amount and percentage of the living space of apartment buildings which have been in operation for more than 25 years and more than 40 years; ⇒ scopes of capital repairs and comprehensive capital repairs; ⇒ housing stock in need of capital repairs by years of construction; ⇒ scopes of capital repairs of facades, roofs, utility services, including installation of meters as well as other types of work; ⇒ expenditures for capital repairs in total and by main types of works; ⇒ sources of financing of repair works and financial burden for the population; ⇒ amounts of energy savings in physical and monetary terms and possibilities to use savings to finance capital repairs; ⇒ possible limitations with regard to amounts of capital repairs financing. All calculations were performed using an estimate model of capital repairs of housing stock developed by the Consultant (EMCRHS) which takes into account the impact of all the above factors on changes in the housing stock and also the evolution of its age structure and scopes of capital repairs. The parameters of this model were evaluated using data for 2000 - 2010. In all scenarios the same assumptions were made as regards changes in the housing stock for the period until 2035. It is assumed that within 2011-2035 1,900 million m2 of residential space will be commissioned as newly constructed projects (Fig. 4.1). In the same period physical decommissioning of residential space, including dilapidated and unsafe housing, will amount to 450 million m2. As a result, the living space in 2035 will amount to 4,578 million m2. Given such housing stock increments, its age structure will change towards expansion in the number of buildings constructed after 2000. (Fig. 4.2). However, the percentage of residential buildings which have been in operation for more than 25 years and more than 40 years will persistently grow and with it the average age of the housing stock. The average age of apartment buildings taken by the living space will amount in 2035 to 49 years, while taken by the number

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Russian Urban Housing Energy Efficiency Programme – Model Development Analyse the current state of the housing stock of buildings it will amount to 60 years. By 2035, the buildings commissioned before 2010 will already be in operation for 25 years or more, while buildings commissioned before 1995 will be in operation for 40 years or more. Consequently, a rapid average age increment trend for apartment buildings will clearly tale place.

Figure 4.1 Factors determining the dynamics of the housing stock in the Russian Federation in 2005 - 2035

Source: Consultant's estimate

Figure 4.2 Change in the age structure of the housing stock in the Russian Federation in 2000 - 2035

Source: Consultant's estimate

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Russian Urban Housing Energy Efficiency Programme – Model Development Analyse the current state of the housing stock Other assumptions used in calculations made for three scenarios are described in respective sub- sections.

4.2 «SLUGGISH STRATEGY» – BASELINE

The percentage of capital repairs for the period 2008-2009 reached 1.4-1.6% of the total floor space of residential buildings, while the percentage of capital repairs of the living space reached 0.4-0.6%. The percentage of capital repairs of apartment buildings reached 1.9-2.0% of their total floor space in 2008-2009. It is assumed in the "Sluggish Strategy" scenario that the percentage of apartment buildings which have undergone capital repairs will amount to 2% of the floor space each year in the period from 2011 until 2035. It is assumed that the living space under capital repairs financed out of centralized funds (excluding capital repairs carried out by tenants themselves) will be distributed between apartment buildings and private buildings in the ratio of 95 to 5. Hereinafter data concerning apartment buildings are considered only.

In this scenario, the operating life of a building before capital repairs or the interval between capital repairs is assumed to be 40 years. Despite the fact that new regulations presuppose a wide range of capital repair items for each residential building, it is assumed in the "Sluggish Strategy" scenario that selective capital repairs will be retained. The percentage of comprehensive repairs will increase to 50% in 2013 and remain at that level until 2035. In this scenario, the regulatory requirements for the minimum list of capital repair works to target efficiency indicators are not fully met. Comprehensive capital repairs are carried out in accordance with Package No. 1 of measures described in Section 3. In case of selective capital repairs it is assumed that the unit cost of works will amount to 1,013 Rubles/m 2 in 2011 with subsequent indexation using the civil works cost escalation index. Unit capital repair costs for various types of works (design and estimate documentation, construction and repair works, repair and replacement of building structures, repair and replacement of building utility services) are fixed at the level of 2009 and adjusted using a civil works price index which gradually declines from 9% in 2010 to 2.5% by 2025 and then remains at this level. Cost parameters for comprehensive repairs are determined on the basis of repair costs in the course of implementation of Package No. 1 of measures. The practice of overrating capital repair costs is widely used. In order to reflect it in the model, a "corruption index" is applied as a multiplier of capital repair costs. It is assumed to be 20%. It is assumed that in the "Sluggish Strategy" scenario the two main sources of funding for capital repairs are budgetary expenditures and payments from population made in the form of mandatory monthly deductions for capital repairs. In this scenario it is assumed that there are limited possibilities to cover part of the costs through savings on housing stock maintenance gained as a result of capital repairs as part of ESCO and that it is not proposed to raise loans for capital repairs. The main estimation results based on the "Sluggish Strategy" scenario are presented in Table 4.1. Table 4.1 Main estimation results based on the "Sluggish Strategy" scenario Measureme 2000 2009 2015 2020 2025 2030 2035 nt unit Living space in million m2 2,761 2,237 2,349 2,475 2,615 2,772 2,949 apartment buildings Floor space of million m2 566 727 931 1,106 1,276 1,441 1,600 The Institute for Urban Economics (IUE) 77 Center for Energy Efficiency (CENEf) Housing Initiative for Eastern Europe (IWO) Institute Byvania (The Institute of Housing)

Russian Urban Housing Energy Efficiency Programme – Model Development Analyse the current state of the housing stock apartment buildings aged 40 years and older Floor space of million m2 1,079 1,370 1,596 1,770 1,912 2,002 2,181 apartment buildings aged 25 years and older Percentage of the floor % 25.9% 29.8% 31.1% 31.7% 31.6% 30.9% 29.5% space of apartment buildings aged over 40 years which did not undergo comprehensive repairs Capital repairs, total million m2 22.5 41.1 47.0 49.5 52.3 55.4 59.0 ditto, cumulative since million m2 22.5 282.2 552.7 795.0 1,050.8 1,321.6 1,609.2 2000 Comprehensive capital million m2 3.5 16.6 23.5 24.7 26.1 27.7 29.5 repairs ditto, cumulative since million m2 3.5 64.6 195.2 316.4 444.2 579.6 723.4 2000 Percentage of apartment % 0.8% 1.8% 2.0% 2.0% 2.0% 2.0% 2.0% buildings which have undergone capital repairs Percentage of % 0.1% 0.7% 1.0% 1.0% 1.0% 1.0% 1.0% comprehensive capital repairs of apartment buildings Cost of capital repair Rubles, 143.7 139.7 183.2 223.1 267.6 322.0 works on current basis billion Unit cost of capital Rubles/m2 3,340 4,192 5,057 5,677 6,158 6,778 repairs on current basis Expenditures of budgets Rubles, 139.2 84.6 95.7 92.0 72.1 28.2 at all levels and billion expenditures of the Fund for the Promotion of the Housing and Utility Sector Reform for capital repairs Expenditures of Rubles, 4.5 45.2 74.4 114.9 175.9 270.2 households on capital billion repairs Monthly payment of Rubles/m2 1.6 2.5 3.7 5.3 7.6 households for capital per month repairs Percentage of % 0.02% 0.14% 0.14% 0.15% 0.16% 0.18% households' expenditures on capital repairs in the total expenditure ESCOs' expenditures on Rubles, 2.9 4.0 5.0 6.2 7.5 capital repairs billion Loans for implemen- Rubles, 0.0 0.0 0.0 0.0 0.0 tation of capital repairs billion Utility services Rubles, 0.0 0.0 0.0 0.0 0.0 payment savings billion

Source: Consultant's estimate

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Russian Urban Housing Energy Efficiency Programme – Model Development Analyse the current state of the housing stock The scopes of capital repairs and comprehensive capital repairs are gradually increased following the increase in living space of the apartment buildings (Figure 4.3). However, the percentage of apartment buildings requiring comprehensive capital repairs will not be possibly reduced. Until 2025 it will even increase and only after that it will start slowly declining. Throughout the period from 2011 until 2035 it will be within the range of 30 to 35%. It means that around one-third of the housing stock is constantly in need of comprehensive capital repairs. Improvement of the housing stock condition stock is not taking place. The "Sluggish Strategy" may only allow to rule out the possibility of a noticeable deterioration in its condition. Figure 4.3 Scope of capital repairs of apartment buildings according to the "Sluggish Strategy Scenario"

Source: Consultant's estimate

The scope of facade repairs increases along with the renovated space of apartment buildings (Fig. 4.4). The scope of roof repairs remains stable for some time and then decreases as the percentage of apartment buildings with a greater number of storeys in the number of buildings to be repaired is growing. Availability of metering devices increases as comprehensive repairs are implemented during which, according to the requirements of Federal Law No. 261 single- buildings (bulk) meters and apartment meters are to be installed. A provision of Federal Law FZ No. 261 is taken into consideration according to which single-building meters are not installed in residential buildings with a heating demand of less than 0.2 Gcal/h. In this scenario the requirements of Federal Law FZ No. 261 regarding installation of metering devices in residential buildings by January 1 2012 are also not met. Equipping residential buildings with heat meters is extended until 2020.

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Figure 4.4 Scope of capital repairs by specific work items according to the "Sluggish Strategy"

а) scopes of facade repairs b) scopes of roof repairs

c) availability of single-building meters d) availability of individual apartment meters

Source: Consultant's estimate

Expenditures for capital repairs in the scenario named "Sluggish Strategy" are constantly growing after some decline and reach 322 billion Rubles by 2035 . (Figure 4.5). Figure 4.5 Expenditures for capital repairs according to the "Sluggish Strategy" scenario

Source: Consultant's estimate

The Institute for Urban Economics (IUE) Center for Energy Efficiency (CENEf) Housing Initiative for Eastern Europe (IWO) Institute Byvania (The Institute of Housing)

Russian Urban Housing Energy Efficiency Programme – Model Development Analyse the current state of the housing stock A slowdown in expenditure in 2012-2013 is associated with the transition to Package No. 1 of capital repair measures which unit costs, at an average, is lower than actual unit costs of programs carried out in the regions of the Russian Federation. In this scenario it is assumed that monthly payments by individuals for capital repairs are imposed in the amount of one Ruble/m2 with an annual increase by 5% in comparable prices and adjusted for inflation. As a result, by 2020 such payment on current basis would amount to 2.5 Rubles /m2 and by 2035 to 7.6 Rubles/m2. The percentage of expenditure on capital repairs in the expenditures of people living in apartment buildings amounts to approximately 0.15-0.18% (Table 4.1). Household expenditures on capital repairs do not lead to "crossing" the line of economic affordability. Figure 4.6 Structure of financing capital repair costs according to the "Sluggish Strategy" scenario

Source: Consultant's estimate

With a minimum use of the ESCO vehicle (simply due to the limited amounts of utility savings during the implementation of Package No. 1 of measures and due to a low proportion of comprehensive repairs) it is assumed that the remaining costs are covered from the budget (Figure 4.6). Average annual budget expenditures in 2011-2035 will be significantly lower than in 2008-2010. They do not exceed 100 billion Rubles per year and after 2025are gradually reduced to 28 billion Rubles. Cost savings on payments for utility services will amount by 2035 to 58 billion Rubles and the aggregate figure for 2011-2035 will amount to 604 billion Rubles or 11% of the total capital repair costs. As a summary of estimation results on the basis of "Sluggish Strategy" scenario, it should be noted that given a moderate financial load on the population and the budget, while keeping the percentage of overhauled apartment buildings at a level of 2% of their floor space, it will only be possible to keep the housing stock in a minimum acceptable condition for living without any noticeable improvements with one third of the living space of apartment buildings being in need of comprehensive capital repairs.

4.3 «IMPROVEMENT STRATEGY»

In the "Improvement Strategy" it is assumed that starting from 2015 3% of the total floor space of residential buildings will undergo capital repairs each year, primarily apartment buildings which have been in operation for 40 years, of which at least 75% should undergo comprehensive The Institute for Urban Economics (IUE) 81 Center for Energy Efficiency (CENEf) Housing Initiative for Eastern Europe (IWO) Institute Byvania (The Institute of Housing)

Russian Urban Housing Energy Efficiency Programme – Model Development Analyse the current state of the housing stock capital repairs according to plans stipulating requirements with regard to reduction of energy consumption. It is assumed that raising loans, in addition to budgetary expenditures and payments from the population, will become an important source of funding for capital repairs in the "Improvement Strategy" scenario. It is assumed in this scenario that monthly deductions for capital repairs are imposed on the population amounting to 2 Rubles/m2 in 2012 with a gradual increase to 5 Rubles/m2 by 2015 in comparable prices of 2011 and to 6.75 Rubles/m2 by 2035 in comparable prices of 2011 Such payment on current basis adjusted for inflation in 2020 amounts to 8.5 Rubles/m2 and by 2035 to 16.7 Rubles/m2. The main estimation results based on the "Improvement Strategy" scenario are presented in Table 4.2. Table 4.2 Main estimation results based on the "Sluggish Strategy" scenario Measure Factors ment 2000 2009 2015 2020 2025 2030 2035 unit Living space in apartment million 2,761 2,237 2,349 2,475 2,615 2,772 2,949 buildings m2 Floor space of apartment million 566 727 931 1,106 1,276 1,441 1,600 buildings aged 40 years m2 and older Floor space of apartment million 1,079 1,370 1,596 1,770 1,912 2,002 2,181 buildings aged 25 years m2 and older Percentage of the floor % 25.9 29.8 28.5 23.1 17.3 11.3 5.0 space of apartment buildings aged over 40 years which did not undergo comprehensive repairs Capital repairs, total million 22.5 41.1 70.5 74.2 78.4 83.2 88.5 m2 ditto, cumulative since million 22.5 282.2 606.2 969.7 1,353.4 1,759.5 2,191.0 2000 m2 Comprehensive capital million 3.5 16.6 52.8 55.7 58.8 62.4 66.3 repairs m2 ditto, cumulative since million 3.5 64.6 257.6 530.3 818.0 1,122.6 1,446.2 2000 m2 Percentage of apartment % 0.8 1.8 3.0 3.0 3.0 3.0 3.0 buildings which have undergone capital repairs Percentage of apartment % 0.1 0.7 2.3 2.3 2.3 2.3 2.3 buildings which have undergone comprehensive capital repairs Cost of capital repair Rubles, 143.7 393.4 626.5 771.8 925.0 1,112.4 works on current basis billion Unit cost of capital repairs Rubles/m 3,340 4,310 5,210 5,860 6,373 7,033 on current basis 2 Expenditures of budgets at Rubles, 139.2 81.2 62.9 48.6 37.6 29.1 all levels and expenditures billion of the Fund for the Promotion of the Housing and Utility Sector Reform for capital repairs

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Russian Urban Housing Energy Efficiency Programme – Model Development Analyse the current state of the housing stock Measure Factors ment 2000 2009 2015 2020 2025 2030 2035 unit Expenditures of Rubles, households on capital billion repairs 4.5 117.0 251.7 336.5 445.6 592.1 Monthly payment of Rubles/m 4.2 8.5 10.7 13.4 16.7 households for capital 2 per repairs month Percentage of households' % 0.02 0.36 0.49 0.43 0.41 0.40 expenditures on capital repairs in the total expenditure ESCOs' expenditures on Rubles, 9.6 13.0 16.3 19.8 23.9 capital repairs billion Loans for implementation Rubles, 202.3 20.2 32.6 40.5 45.8 of capital repairs billion Capital improvement loans Rubles, 36.4 58.8 72.8 82.5 90.4 servicing billion principal debt repayment Rubles, 20.2 32.6 40.5 45.8 50.2 billion interest payments Rubles, 16.2 26.1 32.4 36.7 40.2 billion Utility services payment Rubles, 14.2 43.8 82.0 129.1 186.3 savings billion Source: Consultant's estimate

The scopes of capital repairs will increase up to 74 million m2 by 2020 and to 89 million m2 by 2035 . Cumulatively for 2000-2035 capital repairs will cover an area of 2,191 million m2, this figure being 1,446 million m2 for comprehensive capital repairs (Table 4.2). This will reduce the percentage of the floor space of apartment buildings aged 40 years and older being in need of comprehensive capital repairs to 12% in 2035 . (Figure 4.7). Increasing the percentage of apartment buildings which have undergone capital repairs to 3% and the percentage of comprehensive repairs to 75% in contrast to the "Sluggish Strategy" scenario allows to substantially change the movement trend for the housing stock in need of capital repairs, however only with regard to apartment buildings with an operating life over 40 years (or last capital repairs implemented 40 years ago). As regards residential buildings with an operating life of more than 25 years, the percentage of the floor space of apartment buildings in need of capital repairs will also be reduced from 56% in 2010 to 28% in 2035 but it still remains significant.

The Institute for Urban Economics (IUE) 83 Center for Energy Efficiency (CENEf) Housing Initiative for Eastern Europe (IWO) Institute Byvania (The Institute of Housing)

Figure 4.7 Scope of capital repairs of apartment buildings according to the "Improvement Strategy" scenario

Source: Consultant's estimate

The scope of facade repairs and roof repairs is significantly higher than in the "Sluggish Strategy" scenario (Figure 4.8). However, in this scenario the requirements of Federal Law FZ No. 261 regarding installation of metering devices in residential buildings by January 1 2012 are also not met. Equipping residential buildings with heat meters will be accomplished in 2017.

Figure 4.8 Scope of capital repairs by specific work items according to the "Improvement Strategy" scenario

а) scopes of facade repairs b) scopes of roof repairs

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Russian Urban Housing Energy Efficiency Programme – Model Development Analyse the current state of the housing stock

c) availability of single-building meters d) availability of individual apartment meters

Source: Consultant's estimate

The above mentioned developments are achieved by means of substantial increase of expenditures on capital repairs according to "Improvement Strategy" scenario and will sustainably grow and amount to 627 billion Rubles in2020 and to 1,112 billion Rubles in 2035 on current basis (Figure 4.9). If the estimations are cleared of the "corruption factor", the costs would be reduced to 522 billion Rubles and 927 billion Rubles, respectively. Figure 4.9 Expenditures for capital repairs according to the "Improvement Strategy" scenario

Source: Consultant's estimate

The cumulative capital repair costs in 2011-2035 in the "Improvement Strategy" scenario (17,091 billion Rubles) exceed those in the "Sluggish Strategy"scenario by more than three times (5,275 billion Rubles). The implementation of such an ambitious program of capital repairs requires modification of the capital repairs financing structure. The introduction of a considerable monthly mandatory fee payable by the population allows to cover only part of the expenses. Under the assumption that the amounts of of budget expenditures at all levels will decline and given limited possibilities for financing capital repairs using ESCO vehicles the importance of loans will grow. In this scenario it was assumed that loans are extended for 10 years at 8% per annum. Part of the payments from the population will be used for debt service. The rest will form financial resources to raise loans or to directly use these savings for capital

The Institute for Urban Economics (IUE) 85 Center for Energy Efficiency (CENEf) Housing Initiative for Eastern Europe (IWO) Institute Byvania (The Institute of Housing)

Russian Urban Housing Energy Efficiency Programme – Model Development Analyse the current state of the housing stock repairs by-passing the banking system. By 2035 this resource base will equal to the borrowing demand in terms of volume (Fig. 4.10). Figure 4.10 Mechanism of financing capital repair costs according to the "Improvement Strategy" scenario

Source: Consultant's estimate

The percentage of expenditure on capital repairs of apartment buildings in the total expenditures of the population amounts to approximately 0.4-0.5%. This is comparable with the percentage of expenditures on natural gas. The cost savings on payments for utility services due to increasing use efficiency as a result of implementation of comprehensive capital repairs by 2035will amount to 186 billion Rubles. (Figure 4.11). Cumulatively for 2011-2035 these savings will amount to 1,880 billion Rubles or 11% of the cumulative capital repair costs (13% in the absence of corruption). If the economic benefit from savings on utility services is sustained for 25 years after 2035, 38% of the capital repair costs will be recovered by means of such savings during this period. Figure 4.11 Utility cost savings according to the "Improvement Strategy" scenario

Source: Consultant's estimate

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Russian Urban Housing Energy Efficiency Programme – Model Development Analyse the current state of the housing stock As a summary of estimation results on the basis of "Improvement Strategy" scenario, it should be noted that given a percentage of annually repaired apartment buildings being 3% and the percentage of comprehensive capital repairs being 75% and given a greater burden on the population to finance capital repairs and also given dynamic raising of borrowed funds to cover expenditures which by three times exceed the expenditures in the "Sluggish Strategy" scenario, it will be possible to provide for a persistent decrease of the percentage in the living space of apartment buildings aged over 40 years being in need of comprehensive capital repairs to 12% in 2035.

4.4 «LIKE IN EUROPE»

In the scenario under the code name "Like in Europe" it is assumed that from 20154% of the floor space of residential buildings will undergo capital repairs. Buildings which have been in operation over 25 years will fall within the capital repairs program under which 90% of the floor space will undergo comprehensive repairs in 2015 with implementation of Package No. 3 of measures for reduction of energy consumption. It is assumed that the required monthly payments on capital repairs from the population will remain the same as in the "Improvement Strategy" scenario. The main estimation results based on the "Like in Europe" scenario are presented in Table 4.3. The scopes of capital repairs will increase up to 99 million m2 by 2020 and to 118 million m2 by 2035 . Cumulatively for 2000-2035 capital repairs will cover an area of 2,952 million m2, this figure being 2,078 million m2 for comprehensive capital repairs (Table 4.3). This allows to decrease the percentage of the floor space of apartment buildings in need of comprehensive capital repairs which have been in operation for more than 40 years to zero in 2032 and to reduce such floor space in residential buildings in operation for more than 25 years to 14% by 2035 . (Fig. 4.12). According to this scenario, real significant improvement of the housing stock condition is achieved. Increasing the percentage of apartment buildings which have undergone capital repairs to 4% and the percentage of comprehensive capital repairs to 90%, in contrast to the "Improvement Strategy" scenario, will allow to bring all buildings in operation for over 40 years and most of the buildings in operation for over 25 years in line with up-to-date standards. Table 4.3 Main estimation results based on "Like in Europe" scenario Factors Measureme 2000 2009 2015 2020 2025 2030 2035 nt unit Living space in million m2 2,761 2,237 2,349 2,475 2,615 2,772 2,949 apartment buildings Floor space of million m2 566 727 931 1,106 1,276 1,441 1,600 apartment buildings aged 40 years and older Floor space of million m2 1,079 1,370 1,596 1,770 1,912 2,002 2,181 apartment buildings aged 25 years and older Share in the floor space % 51.9% 60.5% 58.6% 47.9% 33.1% 16.9% 4.4% of apartment buildings aged over 40 years which did not undergo comprehensive repairs Capital repairs, total million m2 22.5 41.1 63.4 99.0 104.6 110.9 117.9 ditto, cumulative since million m2 22.5 282.2 592.2 1,024.2 1,535.8 2,077.3 2,652.5 2000 Comprehensive capital million m2 3.5 16.6 47.6 89.1 94.1 99.8 106.2 The Institute for Urban Economics (IUE) 87 Center for Energy Efficiency (CENEf) Housing Initiative for Eastern Europe (IWO) Institute Byvania (The Institute of Housing)

Russian Urban Housing Energy Efficiency Programme – Model Development Analyse the current state of the housing stock Factors Measureme 2000 2009 2015 2020 2025 2030 2035 nt unit repairs ditto, cumulative since million m2 3.5 64.6 247.5 612.5 1,072.9 1,560.3 2,078.0 2000 Share of apartment % 0.8% 1.8% 2.7% 4.0% 4.0% 4.0% 4.0% buildings which have undergone capital repairs Share of comprehensive % 0.1% 0.7% 2.0% 3.6% 3.6% 3.6% 3.6% capital repairs of apartment buildings Cost of capital repair Rubles, 143.7 349.7 916.3 1,190.3 1,426.6 1,715.7 works on current basis billion Unit cost of capital Rubles/m2 3,340 4,283 5,291 5,957 6,487 7,169 repairs on current basis Expenditures of budgets Rubles, 139.2 81.2 62.9 48.6 37.6 29.1 at all levels and billion expenditures of the Fund for the Promotion of the Housing and Utility Sector Reform for capital repairs Expenditures of Rubles, 4.5 117.0 251.7 336.5 445.6 592.1 households on capital billion repairs Monthly payment of Rubles/m2 4.2 8.5 10.7 13.4 16.7 households for capital per month repairs Share of households' % 0.02% 0.36% 0.49% 0.43% 0.41% 0.40% expenditures on capital repairs in the total expenditure ESCOs' expenditures on Rubles, 14.1 33.9 42.9 52.2 63.3 capital repairs billion Loans for implemen- Rubles, 146.2 14.6 63.7 85.7 100.0 tation of capital repairs billion Capital improvement Rubles, 26.3 114.6 154.3 180.0 207.5 loans servicing billion principal debt Rubles, 14.6 63.7 85.7 100.0 115.3 repayment billion interest payments Rubles, 11.7 50.9 68.6 80.0 92.2 billion Savings on utility bills Rubles, 17.0 68.4 146.9 243.7 361.0 billion Source: Consultant's estimate

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Figure 4.12 Scope of capital repairs of apartment buildings according to the "Like in Europe" scenario

Source: Consultant's estimate

Such progress in the maintenance of apartment buildings can be achieved by the increase in expenditures for capital repairs according to the"Like in Europe" scenario up to 916 billion Rubles in 2020 and up to 1,716 billion Rubles in 2035 on current basis. (Fig. 4.13). Cumulative costs in 2011-2035 according to the"Like in Europe" scenario amount to 24,662 billion Rubles, which exceeds this figure from the "Improvement Strategy" scenario by 44% and which is 4.7 times higher as compared to the "Sluggish Strategy" scenario. Figure 4.13 Expenditures for capital repairs according to the "Like in Europe" scenario

Source: Consultant's estimate

The Institute for Urban Economics (IUE) Center for Energy Efficiency (CENEf) Housing Initiative for Eastern Europe (IWO) Institute Byvania (The Institute of Housing)

Russian Urban Housing Energy Efficiency Programme – Model Development Analyse the current state of the housing stock In this scenario it was assumed that all additional costs will be financed by raising loans, while maintaining payment conditions for the population according to the "Improvement Strategy" scenario. In this scenario the percentage of loans for capital repairs as wells as the percentage of payments from the population for capital repairs used for debt service is significantly higher (Fig. 4.14). Figure 4.14 Structure of financing capital repair costs according to the "Like in Europe" scenario

Source: Consultant's estimate

In order to reduce the percentage of loans to zero, mandatory payments from the population for capital repairs in 2020 should amount to 15 Rubles/m2 at 2011 values. Then, the percentage of expenses for capital repairs incurred by the population in the aggregate expenditures of tenants in apartment buildings will grow to 1.2% and exceed the portion of payments for electric energy. Due to a more extensive catalogue of energy saving measures in Package No. 3 the savings on utility payments as a result of use efficiency enhancement after implementation of comprehensive capital repairs will be increased to 361 billion Rubles by 2035 which exceeds the level of savings in the "Improvement Strategy" scenario by two times and the same figure in the "Sluggish Strategy" scenario by 6 times (Fig. 4.15). Cumulatively for 2011-2035 these savings will amount to 3,412 billion Rubles or 14% of the cumulative capital repair costs (16% in the absence of corruption in the course of capital repairs). If the economic benefit from savings on utility services is sustained for 25 years after 2035, 50% of the capital repair costs will be recovered by means of such savings during this period. In case of a serious motivation for practical implementation of technically achievable energy saving benefits from comprehensive capital repairs as part of Package No. 3 and in case of bringing heat energy savings up to 40% the savings on utility bills may be increased to 465 billion Rubles by 2035 and cumulatively for 2011-2035 up to 4,400 billion Rubles or up to 18% of the aggregate capital repair costs for the same period. Then, if such level of savings if maintained for 25 years after 2035, 65% of the total capital repair costs will be recovered.

The Institute for Urban Economics (IUE) 90 Center for Energy Efficiency (CENEf) Housing Initiative for Eastern Europe (IWO) Institute Byvania (The Institute of Housing)

Russian Urban Housing Energy Efficiency Programme – Model Development Analyse the current state of the housing stock Figure 4.15 Utility cost savings according to the "Like in Europe" scenario

Source: Consultant's estimate

As a summary of estimation results in the "Improvement Strategy" scenario it ought to be noted that in case of increment in the percentage of annually repaired apartment buildings up to 4% and in the percentage of comprehensive capital repairs up to 90% and given a substantial burden on the population to finance capital repairs and also given dynamic raising of borrowed funds to cover expenditures which cumulatively by three times exceed the expenditures in the "Sluggish Strategy" scenario, it will be possible to provide for a decrease in the percentage of the living space of apartment buildings aged over 40 years being in need of comprehensive capital repairs to zero by 2032 .

4.5 COMPARISON OF SCENARIOS

To compare various scenarios the results of scenario-related calculations have been summarized in Table 4.4 Table 4.4 Comparison of main estimation results by scenarios for 2035 Scenarios Measurement Factors unit "Sluggish "Improvement "Like in Strategy" Strategy" Europe" Share in the floor space of apartment % 29.5% 5.0% - buildings aged over 40 years which did not undergo comprehensive repairs Capital repairs, total Rubles, billion 59.0 88.5 117.9 ditto, cumulative since 2000 Rubles, billion 1,609.2 2,191.0 2,652.5 Comprehensive capital repairs Rubles, billion 29.5 66.3 106.2 ditto, cumulative since 2000 Rubles, billion 723.4 1,446.2 2,078.0 Share of apartment buildings which % 2.0% 3.0% 4.0% have undergone capital repairs Share of comprehensive capital repairs % 1.0% 2.3% 3.6% of apartment buildings Cost of capital repair works on current Rubles, billion 322.0 1,112.4 1,715.7 basis Unit cost of capital repairs on current Rubles/m2 6,777.5 7,032.9 7,169.4 basis Expenditures of budgets at all levels Rubles, billion 28.2 29.1 29.1 The Institute for Urban Economics (IUE) 91 Center for Energy Efficiency (CENEf) Housing Initiative for Eastern Europe (IWO) Institute Byvania (The Institute of Housing)

Russian Urban Housing Energy Efficiency Programme – Model Development Analyse the current state of the housing stock and expenditures of the Fund for the Promotion of the Housing and Utility Sector Reform for capital repairs Expenditures of households on capital Rubles, billion 270.2 592.1 592.1 repairs Monthly payment of households for Rubles, billion 7.6 16.7 16.7 capital repairs Share of households' expenditures on % 0.18% 0.40% 0.40% capital repairs in the total expenditure ESCOs' expenditures on capital repairs Rubles, billion 7.5 30.8 63.25 Loans for implementation of capital Rubles, billion 45.1 99.98 repairs Capital improvement loans servicing Rubles, billion 88.9 207.54 principal debt repayment Rubles, billion 49.4 115.30 interest payments Rubles, billion 39.5 92.24 Utility services payment savings Rubles, billion 57.8 186.3 361.02 Source: Consultant's estimate

Calculations made in this section help to estimate the required scope of repairs and costs involved. Calculations that will help to estimate the efficiency of various models of financing capital repairs will be made within the framework of Task 3 (or Task 3.3, according to the ToR).

CONCLUSIONS

Analizing the needs in funding required for capital repairs and towards this end it reviews the following three scenarios for the capital repairs dynamics: ⇒ "Sluggish Strategy", i.e. a scenario extrapolating existing trends in recent years in the field of capital repairs and serving as a "base line". In this scenario it is assumed that 2% of the total floor space of apartment buildings would undergo capital repairs each year, primarily those apartment buildings which have been in operation for 40 years, of which at least 50% should undergo comprehensive capital repairs according to plans which do not stipulate requirements with regard to reduction of energy consumption; ⇒ "Improvement Strategy", i.e. a scenario according to which it is assumed that starting from 2015 3% of the total floor space of residential buildings will undergo capital repairs each year, primarily apartment buildings which have been in operation for 40 years, of which at least 75% should undergo comprehensive capital repairs according to plans stipulating requirements with regard to reduction of energy consumption by at least 15%; ⇒ "Like in Europe", i.e. a scenario in which it is assumed that starting from 2015 4% of the total floor space of residential buildings will undergo capital repairs each year, of which at least 90% should undergo comprehensive capital repairs according to plans stipulating requirements with regard to reduction of energy consumption by at least 30%. The comparison of estimation results in various scenarios reveals that: 1. According to the "Sluggish Strategy" scenario it is not possible to noticeably reduce the percentage of the floor space of apartment buildings which have been in operation for over 40 years and did not undergo comprehensive repairs. The implementation of this scenario leads to a situation when about a third part of the housing stock feels a steady need for comprehensive The Institute for Urban Economics (IUE) 92 Center for Energy Efficiency (CENEf) Housing Initiative for Eastern Europe (IWO) Institute Byvania (The Institute of Housing)

Russian Urban Housing Energy Efficiency Programme – Model Development Analyse the current state of the housing stock capital repairs. Yet the state of the housing stock is not improving. “Momentum Strategy” serves only to prevent the possibility of its noticeable deterioration. 2. The scenario “Enhancement Strategy” is essential to reduce the proportion of the housing stock - which does not need comprehensive repairs - down to 12%, while the implementation of the scenario “As in Europe” would help to make capital repairs to all the buildings of over 40 years before 2035.For this purpose the scopes of capital repairs must be at least doubled or even tripled as compared to the "Sluggish Strategy" scenario This can be achieved by increasing the percentage of the annually overhauled living space in apartment buildings to 3-4% and by increasing the percentage of comprehensive capital repairs to 75-90%; 3. Applying three different packages of capital repair measures has a rather moderate impact on the average unit costs of capital repairs per one m 2 The increment in expenditure on capital repairs according to the "Improvement Strategy" and "Like in Europe" scenarios is achieved mainly by an increase in physical quantities of capital repairs; 4. The implementation of the "Like in Europe" scenario alone will make it possible to practically and substantially improve the condition of apartment buildings and to implement capital repairs of all buildings in operation over 40 years and a major part of buildings in operation over 25 years until 2035. 5. This large-scale programme of capital repairs requires that the structure of their financing should be changed. Only a part of costs will be covered by way of introducing monthly mandatory payments to be made by residents. On the assumption that the amount of financing by governments at all levels is declining, and amid limited possibilities of financing the capital repairs via ESCO, the role of loans is becoming a determinant one. 6. With no budget financing or limited budget financing of capital repairs, the percentage of loans raised for these purposes, the debt service burden and the percentage of mandatory payments for capital repairs by the population will grow with the increasing percentage of buildings which have undergone capital repairs; 7. Savings on utility bills gained as a result of implementation of comprehensive capital repairs will allow to cover 11-18% of the total capital repair costs until 2035 within the period 2011-2035 and, if the benefits from capital repairs are sustained for 25 years, 39-65% of the total capital repair costs may be recovered. Increase in the percentage of comprehensive capital repairs and implementation of institutional transformations allowing to significantly raise motivation for practical implementation of technically achievable energy saving benefits will substantially improve this indicator.

The Institute for Urban Economics (IUE) 93 Center for Energy Efficiency (CENEf) Housing Initiative for Eastern Europe (IWO) Institute Byvania (The Institute of Housing)

Russian Urban Housing Energy Efficiency Programme – Model Development Analyse the current state of the housing stock

SECTION 5. CAPITAL REPAIRS IN THE REGIONS OF THE RUSSIAN FEDERATION This section contains the results of the analysis of the 2009 statistical data on the area of dilapidated and emergency housing in the subjects of the Russian Federating, the total area of residential buildings which underwent capital repairs, and the unit cost of done capital repairs. The results of calculations of forecast evaluation of the volumes of capital repairs and the relevant costs for the period until 2035 for the subjects of the Russian Federation for each of three possible scenarios of capital repairs (divided into comprehensive repairs and selective repairs) has been included herein.

5.1 QUALITY OF STATICTICAL DATA BY REGIONS

The main source of information about capital repairs by constituent entities of the Russian Federation is the report form "1-КР". The data in this form are specified in value terms or in physical terms. Special conditions of data collection for this form presuppose "careful" data handling. For example, the floor space of apartment buildings which have undergone capital repairs is understood to be the total area of all apartments reduced by a factor for balconies and patio areas in apartment buildings which have undergone capital repairs. In case capital repairs of apartments were not implemented and only common property and public spaces were affected, a zero appears in the line named "floor space of residential buildings which have undergone capital repairs". In such a case, the situation may occur in which facade repairs, for example, may be reflected in the item "total floor space of residential buildings which have undergone capital repairs" or may not be reflected at all; it means that a situation may occur in which money is spent on capital repairs and the total floor space of renovated buildings is equal to zero. This situation is clearly exemplified by the data on the Republic of Ingushetia in which 9.2 million Rubles were spent on capital repairs and a zero appeared in the item "total floor space of residential buildings which have undergone capital repairs". Another border-line case is the Stavropol Krai in which considerable funds were spent on capital repairs, however only a small portion was spent on capital repairs in apartments. As a result, the calculated unit costs for capital repairs were strongly overstated (approximately 1.9 million Rubles/m2). For this reason exactly, capital repair costs in constituent entities of the Russian Federation in which unit costs exceeded 20,000 Rubles/m2 were excluded from consideration.

5.2 THE CURRENT SITUATION ABOUT CAPITAL REPAIRS BY REGIONS

The total floor space of residential buildings in the Russian Federation by the end of 2009 amounted to 3,176.6 million m2. The highest figures are encountered in the Central Federal District (908.2 million m2) and the Volga Okrug (668.8 million m2); Among the regions the highest figures are encountered in Moscow (214.0 million m2), the Moscow Oblast (197.4 million m2), the Krasnodar Krai (112.7 million m2) and St. Petersburg (109.9 million m2). The lowest figures are encountered in the Far Eastern Federal District (135.3 million m2) and the North Caucasian Federal District (165.3 million m2); Among the regions (okrugs) the lowest figures are encountered in the Nenets Autonomous Okrug (1.0 million m2), the Chukotka Autonomous Okrug (1.5 million m2), the Republic of Altai (3.8 million m2), the Jewish Autonomous Oblast (3.9 million m2) and the Republic of Tuva (4.0 million m2). The operating life of residential buildings, according to the Consultant's estimates, calculated by floor space of residential buildings with a breakdown by years of construction amounted on The Institute for Urban Economics (IUE) 94 Center for Energy Efficiency (CENEf) Housing Initiative for Eastern Europe (IWO) Institute Byvania (The Institute of Housing)

Russian Urban Housing Energy Efficiency Programme – Model Development Analyse the current state of the housing stock average to 35 years in Russia. The percentage of residential buildings in operation for 25 years or more is 64.5% and for buildings in operation for 40 years or more this figure amounts to 38.3%. The oldest housing stock among federal districts is in the North Western District (38 years); this figure for all federal districts ranging from 33 to 38 years. The oldest housing stock among regions is in St. Petersburg (42 years), in the Vladimir Oblast and Tula Oblast (42 years), in the Trans-Baikal Krai, in the Arkhangelsk Oblast, in the Ivanovo Oblast and in the Ryazan Oblast (41 years), in the Kaliningrad Oblast, in the Tambov Oblast and in the Tver Oblast (40 years). The "most recently built" housing stock is in the Republic of Ingushetia (19 years), in the Khanty-Mansijsk Autonomous Okrug (23 years), in the Chelyabinsk Oblast (25 years), in the Republic of Tatarstan (27 years), in the Yamalo-Nenets Autonomous Okrug, in the Republic of Sakha (28 years), in the Chuvash Republic and the Chukotka Autonomous Okrug (29 years). The floor space of dilapidated and unsafe housing stock in the Russian Federation at the end of 2009 amounted to 99.4 million m2 (or 3.1% of the total living space), including 80.1 million m2 of dilapidated housing stock and 19.3 million m2 of unsafe housing stock. The highest percentages of unsafe and dilapidated housing stock among federal districts are encountered in the North Caucasian Federal District (7.2%), in the Far Eastern Federal District (6.3%) and the Siberian Federal District (4.7%); Among the regions the highest percentages of unsafe and dilapidated housing stock are encountered in the Republic of Ingushetia (20.8%), Republic of Dagestan (20.1%), Republic of Tuva (18.8%), Republic of Sakha-Yakutia (15.1%), the Magadan Oblast (11.1%) and the Astrakhan Oblast (10.1%). The lowest percentages of unsafe and dilapidated housing stock among federal districts are encountered in the Central Federal district (2.0%) and Southern Federal District (2.1%); Such figures being among regions for Moscow (0.3%), the Chechen Republic (0.4%), the Kursk Oblast (0.7%), St. Petersburg (0.7%), the Stavropol Krai (0.8%) and Lipetsk Oblast (0.9%) (for more details see Fig. 5.1, Annex 1 table 3). The total floor space of residential buildings undergone capital repairs in 2009 in all constituent entities of the Russian Federation amounted to 43.0 million m2. The largest floor areas of buildings undergone capital repairs are encountered in the Volga Federal District (13.2 million m2 or 30.7%), the Central Federal District (9.5 million m2 or 22%); such figures being among the regions for Moscow (9.0%), for the Republic of Tatarstan (8.4%), for the Republic of Bashkortostan (6.7%), for the Chelyabinsk Oblast (5.6%) and for the Perm Krai (5.6%). The smallest floor areas of buildings undergone capital repairs were encountered in the North- Caucasian Federal District (1.5 million m2 or 3.5%), the Southern Federal District (2.3 million m2 or 5.4%) and the Far Eastern Federal District (2.4 million m2 or 5.5%); The smallest renovated floor areas were encountered among the regions in the Karachayevo-Cherkessian Republic, the Republic of Karelia and the Republic of Kalmykia, the Stavropol Krai, the Tambov Oblast and the Bryansk Oblast (Fig. 5.2, Annex1 table 5.2). The total capital repair costs in 2009 in all constituent entities of the Russian Federation amounted to 143.7 billion Rubles, incl. costs of capital repairs of apartment buildings amounting to 137.5 billion Rubles. Most of the funds (139.5 billion Rubles) were spent on repair and construction works, of which 9.6 billion Rubles were spent on replacement or repair of building structures, 60.2 billion Rubles were spent on repair or replacement of utility services, 26.3 billion Rubles were spent on facade repairs and 33.5 billion Rubles were spent on roof repairs.

The Institute for Urban Economics (IUE) 95 Center for Energy Efficiency (CENEf) Housing Initiative for Eastern Europe (IWO) Institute Byvania (The Institute of Housing)

Figure 5.1 Percentage of dilapidated and unsafe residential buildings in the floor space of the housing stock

The Republic of Ingushetia The Republic of Dagestan The Republic of Tuva The Republic of Sakha (Yakutia) The Magadan Oblast The Astrakhan Oblast The Sakhalin Oblast The Nenets Autonomous Okrug The Amur Region The The Jewish Autonomous Oblast The Khanty-Mansijsk Autonomous Okrug The The Arkhangelsk Oblast The Arkhangelsk Oblast (except for Autonomous Okrug) The Republic of Buryatia The Zabaikalye Krai North Caucasian Autonomous Okrug The Kirov Oblast Chelyabinsk Oblast The Far Eastern Federal District The The The Tula Oblast Chukotka Autonomous Okrug The Tyumen Oblast The Tomsk Oblast The Kaluga Oblast Krasnoyarsk Krai Republic of Altai The Siberian Federal District The Kemerovo Oblast Republic of Khakassia The Tver Oblast The Yaroslavl Oblast The The Perm Krai The Yamalo-Nenets Autonomous Okrug The Kostroma Oblast Republic of Marij El The Novgorod Oblast Republic of Karelia The Vladimir Oblast The Tambov Oblast The North-Western Federal District The Ryazan Oblast The Russian Federation The Urals Federal District The The Novosibirsk Oblast The Sarato v Oblast The Penza Oblast The Udmurtian Republic The Republic of North Ossetia-Alania The Oblast The Volga Federal District The Smolensk Oblast The Kabardino-Balkarian Republic The The Murmansk Oblast Republic of Kalmykia The Ivanovo Oblast The Kaliningrad Oblast Nizhni Novgorod Oblast The Altai Krai The Primorie Krai The Southern Federal District The Central Federal District The The Volgograd Oblast The The Republic of Adygeya The Bryansk Oblast Republic of The Tyumen Oblast (excl. KhMAD and YNAD ) Karachayevo-Cherkessian Republic The Moscow Oblast The The Chuvash Republic Republic of Tatarstan Republic of Bashkortostan The Oblast The Krasnodar Krai The The Lipetsk Oblast The Stavropol Krai City of St. Petersburg The Kursk Oblast The Chechen Republic Moscow % % % % % % 0 5 0 5 0 5 1 1 2 2

Source: Data by ROSSTAT The highest costs among federal districts are encountered in the Central Federal District (30.3%) and the Volga Federal District (23.2%); the highest costs among regions are encountered in Moscow (21,307 million Rubles), the Republic of Tatarstan (10,250 million Rubles), St. The Institute for Urban Economics (IUE) Center for Energy Efficiency (CENEf) Housing Initiative for Eastern Europe (IWO) Institute Byvania (The Institute of Housing)

Russian Urban Housing Energy Efficiency Programme – Model Development Analyse the current state of the housing stock Petersburg (7,162 million Rubles), the Republic of Bashkortostan (5,860 million Rubles) and the Sverdlovsk Oblast (5,668 million Rubles). The lowest costs among federal districts are encountered in the North Caucasian Federal District (3.4%), the Far Eastern Federal District (4.6%) and the Southern Federal District (5.8%); the lowest costs among the regions are encountered in the Republic of Kalmykia (16 million Rubles), in the Chechen Republic (42 million Rubles), in the Republic of Tuva (151 million Rubles), in the Karachayevo-Cherkessian Republic (179 million Rubles) and in the Magadan Oblast (229 million Rubles). The highest unit costs of capital repairs among federal districts in 2009 were encountered in the North-Western Federal District (5,302 Rubles/m2) and in the Central Federal District (4,609 Rubles/m2); such figures being among the regions for the Penza Oblast (18,326 Rubles/m2), for the Kirov Oblast (16,729 Rubles/m2), for the Arkhangelsk Oblast (16,721 Rubles/m2), for the Novosibirsk Oblast (15,138 Rubles/m2) and for the Krasnoyarsk Krai (14,881 Rubles/m2). The lowest unit costs among federal districts were encountered in the Urals Federal District (2,497 Rubles/m2), in the Volga Federal District (2,543 Rubles/m2) and in the Far Eastern Federal District (2,787 Rubles/m2); such figures being for the Tomsk Oblast (508 Rubles/m2), for the Republic of Tuva (644 Rubles/m2), for the Chechen Republic (813 Rubles/m2) and for the Ivanovo Oblast (888 Rubles/m2) (Fig. 5.3).

The Institute for Urban Economics (IUE) 97 Center for Energy Efficiency (CENEf) Housing Initiative for Eastern Europe (IWO) Institute Byvania (The Institute of Housing)

Russian Urban Housing Energy Efficiency Programme – Model Development Analyse the current state of the housing stock Figure 5.2 Specific weight of regions in the floor space of rehabilitated buildings in 2009 (%)

The Volga Federal District The Central Federal District The Siberian Federal District The Urals Federal District City of Moscow The Republic of Tatarstan The North-Western Federal District The Republic of Bashkortostan The Chelyabinsk Oblast The Perm Krai The Far Eastern Federal District The Southern Federal District The Sverdlovsk Oblast The Saratov Oblast The Ivanovo Oblast The Kemerovo Oblast The North-Caucasian Federal District The Republic of Dagestan The Rostov Oblast The Omsk Oblast

The Republic of Sakha (Yakutia) The Tomsk Oblast The Murmansk Oblast The Irkutsk Oblast The Chuvash Republic The Moscow Oblast The Zabaikalye Krai The Vologda Oblast The Primorie Krai The Tyumen Oblast The City of St. Petersburg The Lipetsk Oblast The Nizhni Novgorod Oblast The Republic of Mordovia The Astrakhan Oblast The Tver Oblast Republic of Adygeya The Tyumen Oblast (excl. KhMAD and YNAD) The Leningrad Oblast The Yaroslavl Oblast The Kaliningrad Oblast The Amur Oblast Republic of Tuva The Kaluga Oblast The Krasnoyarsk Krai The Udmurtian Republic The Vladimir Oblast The Volgograd Oblast The Belgorod Oblast The Sakhalin Oblast The Khanty-Mansi Autonomous Okrug Kamchatka Krai The Jewish Autonomous Oblast The Republic of Buryatia The Komi Republic The Tula Oblast The Novosibirsk Oblast Republic of Altai The Yamalo-Nenets Autonomous Okrug The Ulyanovsk Oblast The Kurgan Oblast The Pskov Oblast The Samara Oblast The Penza Oblast The Arkhangelsk Oblast The Novgorod Oblast The Khabarovsk Krai The Kostroma Oblast The Krasnodar Krai Chukotka Autonomous Okrug The Chechen Republic Republic of Khakassia The Kabardino-Balkarian Republic The Orenburg Oblast The Kirov Oblast Republic of Marij El The Altai Krai The Smolensk Oblast Nenets Autonomous Okrug The Ryazan Oblast The Magadan Oblast The Republic of North Ossetia - Alania The Kursk Oblast The Bryansk Oblast The Republic of Kalmykia The Tambov Oblast The Republic of Karelia The Stavropol Krai Karachayevo-Cherkessian Republic

% % % % % % % % 0 5 0 5 0 5 0 5 1 1 2 2 3 3

Source: Data by ROSSTAT

The Institute for Urban Economics (IUE) 98 Center for Energy Efficiency (CENEf) Housing Initiative for Eastern Europe (IWO) Institute Byvania (The Institute of Housing)

Figure 5.3 Unit cost of capital repairs (Rubles/ m2)

The Penza Oblast The Kirov Oblast The Arkhangelsk Oblast The Novosibirsk Oblast The Krasnoyarsk Krai The Magadan Oblast The Republic of Khakassia City of St. Petersburg The Chukotka Autonomous Okrug The Kabardino-Balkarian Republic The Kostroma Oblast The Belgorod Oblast The Pskov Oblast The Novgorod Oblast The Yamalo-Nenets Autonomous Okrug Khabarovsk Oblast The Ulyanovsk Oblast The Khanty-Mansi Autonomous Okrug The Yaroslavl Oblast The Volgograd Oblast The Tyumen Oblast The Tver Oblast Moscow The Leningrad Oblast The Northwestern Federal District The Vladimir Oblast The Tyumen Oblast (excl. KhMAD and YNAD) The Komi Republic The Central Federal District The Kurgan Oblast The Republic of Buryatia Nizhni Novgorod Oblast The Southern Federal District The Amur Oblast The Oryol Oblast The Russian Federation The North Caucasian Federal District The Udmurtian Republic The Republic of Kalmykia The Moscow Oblast The Kaliningrad Oblast The Siberian Federal District The Zabaikalye Krai The Republic of Tatarstan The Republic of Altai The Tula Oblast The Far Eastern Federal District The Primorye Krai The Sakhalin Oblast The Sverdlovsk Oblast The Volga Federal District The Urals Federal District The Astrakhan Oblast The Republic of Mordovia The Omsk Obl ast The Jewish Autonomous Oblast The Lipetsk Oblast The Voronezh Oblast The Irkutsk Oblast The Republic of Bashkortostan The Chuvash Republic Kamchatka Krai The Republic of Sakha (Yakutia) The Rostov Oblast The Kaluga Oblast The Vologda Oblast The Murmansk Oblast The Chelyabinsk Oblast The Kemerovo Oblast T he Perm Krai The Saratov Oblast Republic of Adygeya The Republic of Dagestan The Ivanovo Oblast The Chechen Republic The Republic of Tuva The Tomsk Oblast 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 2 4 6 8 0 2 4 6 8 0 1 1 1 1 1 2

Source: Data by ROSSTAT Unit specific costs of capital repairs shown in Fig.5.3 were calculated on the basis of statistical form “1-КР” published by Rosstat. We can only make guesses as to the reasons behind a considerable difference in the capital repair costs. The most likely reason is the deficiencies of methods for calculating indicators applied in the statistical form “1-КР” (this was referred to above, in sub-section 5.1), and mistakes committed when filling out a statistical reporting form.

The Institute for Urban Economics (IUE) Center for Energy Efficiency (CENEf) Housing Initiative for Eastern Europe (IWO) Institute Byvania (The Institute of Housing)

Russian Urban Housing Energy Efficiency Programme – Model Development Analyse the current state of the housing stock In addition, the reasons behind the differences in the cost of capital repairs across Russian regions are as follows: 1. Different budget support provided by regions (different financial potential for financing capital repair programmes) and differences in terms of accessibility of the assets of the Fund from the Promotion of the Housing and Utility Sector Reform; 2. Differences with regard to comprehensive nature of capital repairs of residential buildings; in the event of selective repairs costs are much lower; 3. Different technologies applied. Possibly, regions that recorded higher unit specific costs of capital repairs applied more expensive technologies for repairs and energy efficiency improvement of buildings, which contributed to the higher costs of capital repairs on similar size floor spaces; 4. Geographical location of regions. Cost of repairs in remote regions is higher due to higher cost of transportation of construction materials and construction and assembly works

5.3 EVALUATION OF THE SCOPE OF CAPITAL REPAIRS AND EXPENDITURES FOR CAPITAL REPAIRS UNTIL 2035 BY CONSTITUENT ENTITIES OF THE RUSSIAN FEDERATION

Within three proposed scenarios (See Section 4) the volumes of capital repairs for the period until 2035 were evaluated for the Russian Federation as a whole, and for its every subject, while distinguishing between comprehensive capital repairs and selective capital repairs (Tables 1, 2 and 3 of Annex 3). The forecast costs of capital repairs were also estimated for the subjects of the Russian Federation in prices of corresponding years. The results of the calculation are included in Table 4 of Annex 3. Scopes of capital repairs and costs of implementation were broken down by regions on the basis of average specific weights of each of the regions in the total scope of capital repairs in 2007- 2009. Consequently, the values obtained are based on assumptions made in the scenarios (Chapter 4) and on the distribution of scopes of capital repairs between constituent entities of the Russian Federation established in recent years.

CONCLUSIONS

The housing stock is unevenly distributed across the subjects of the Russian Federation. • The highest figures are encountered in Moscow, the Moscow Oblast, the Krasnodar Krai and St. Petersburg. The lowest figures are encountered in the Nenets Autonomous Okrug, the Chukotka Autonomous Okrug, the Republic of Altai, the Jewish Autonomous Oblast and the Republic of Tuva. • The oldest housing stock among regions is in St. Petersburg (42 years), in the Vladimir Oblast and Tula Oblast (42 years), in the Trans-Baikal Krai, in the Arkhangelsk Oblast, in the Ivanovo Oblast and in the Ryazan Oblast (41 years), in the Kaliningrad Oblast, in the Tambov Oblast and in the Tver Oblast (40 years). The "most recently built" housing stock is in the Republic of Ingushetia (19 years), in the Khanty-Mansijsk Autonomous Okrug (23 years), in the Chelyabinsk Oblast (25 years), in the Republic of Tatarstan (27 years), in the Yamalo-Nenets Autonomous Okrug, in the Republic of Sakha (28 years), in the Chuvash Republic and the Chukotka Autonomous Okrug (29 years).

The Institute for Urban Economics (IUE) 100 Center for Energy Efficiency (CENEf) Housing Initiative for Eastern Europe (IWO) Institute Byvania (The Institute of Housing)

Russian Urban Housing Energy Efficiency Programme – Model Development Analyse the current state of the housing stock • Among the regions the highest percentages of unsafe and dilapidated housing stock are encountered in the Republic of Ingushetia (20.8%), Republic of Dagestan (20.1%), Republic of Tuva (18.8%), Republic of Sakha-Yakutia (15.1%), the Magadan Oblast (11.1%) and the Astrakhan Oblast (10.1%). The lowest percentages of unsafe and dilapidated housing stock among federal districts are encountered in the Central Federal district (2.0%) and Southern Federal District (2.1%); Such figures being among regions for Moscow (0.3%), the Chechen Republic (0.4%), the Kursk Oblast (0.7%), St. Petersburg (0.7%), the Stavropol Krai (0.8%) and Lipetsk Oblast (0.9%) • The largest floor areas of buildings undergone capital repairs are encountered in Moscow (9.0%), for the Republic of Tatarstan (8.4%), for the Republic of Bashkortostan (6.7%), for the Chelyabinsk Oblast (5.6%) and for the Perm Krai (5.6%). The smallest renovated floor areas were encountered among the regions in the Karachayevo-Cherkessian Republic, the Republic of Karelia and the Republic of Kalmykia, the Stavropol Krai, the Tambov Oblast and the Bryansk Oblast. • According to statistical data, in 2009, the highest unit costs for capital repairs were registered in the Penza Region, the Kirov Region, the Arkhangelsk Region, the Novosibirsk Region, and the Krasnoyarsk Territory. The lowest unit costs were found in the Tomsk Region, the Republic of Tuva, the Chechen Republic and the Ivanovo Region. Although it is doubtful whether the statistical data on the cost of capital repairs could be considered reliable. • The forecast estimates of the volumes of capital repairs and the costs of capital repairs over the period until 2035 have been calculated for the subjects of the Russian Federation for three possible scenarios set out in Section 4.

The Institute for Urban Economics (IUE) 101 Center for Energy Efficiency (CENEf) Housing Initiative for Eastern Europe (IWO) Institute Byvania (The Institute of Housing)

SECTION 6. EXPERT EVALUATION OF AVAILABILITY AND SCOPE OF GOVERNMENT OBLIGATIONS TO FINANCE CAPITAL REPAIRS OF APARTMENT BUILDINGS IN COMPLIANCE WITH THE HOUSING LEGISLATION OF THE RUSSIAN FEDERATION

This section is dedicated to the review of regulatory and legal documents with regard to state obligations toward capital repairs of apartment buildings, and to the practice of application of relevant documents. The recommendations on amending the law on privatization of housing stock have been proposed to ensure a more clear regulation of obligations of a former landlord of privatized premises. On the basis of the accepted assumptions, the amount of state obligations with regard to financing capital repairs of apartment buildings’ housing stock has been evaluated in monetary terms.

6.1 OBLIGATIONS OF THE FORMER LANDLORD ENVISAGED IN THE LAW ON THE HOUSING STOCK PRIVATIZATION

The Russian Federation has found itself in an ambiguous legal situation with regard to the government obligations to finance capital repairs of apartment buildings.

On the one hand, the Housing Code adopted in 2004 shifted such obligations to owners of residential and non-residential premises in apartment buildings. On the other hand, the law “On Privatizing the Housing Stock in the Russian Federation” is still effective and contains provisions envisaging the obligations of the former (prior to privatization) landlord (the state) to finance capital repairs. The obligations of the former landlord (the owner or the person/entity authorized by the owner) of the privatized housing stock with regard to capital repairs of apartment buildings are set forth in Article 16 of the RF Law # 1541-I, dated July 4, 1991, “On Privatizing the Housing Stock in the Russian Federation” (hereinafter the Law on privatization). The initial edition of the Law on privatization entitled citizens to privatize residential premises in buildings that needed to undergo capital repairs, “as a rule, after the landlord has conducted capital repairs”. Meanwhile, subject to citizens’ approval, an appropriate pecuniary compensation could be paid to them for the repairs, which have never been conducted by the landlord.15 However, the procedure of such pecuniary compensation for non-conducted capital repairs of a building has never been applied in practice. One and a half year after the adoption of the Law on privatization the initial provision of the legislation was replaced by a new one envisaging that the privatization of residential premises in buildings, which needed to undergo capital repairs, should be conducted according to the general

15 Resolution # 1582-1, issued by the Supreme Soviet of the RSFSR on July 4, 1991, “On Enactment of the RSFSR Law ‘On Privatizing the Housing Stock in the Russian Federation’” (clause 5) committed the Council of Ministers of the RSFSR, Councils of Ministers of the republics within the RSFSR to establish a procedure for calculating the cost of residential premises purchased by citizens, as well as the type and nature of compensation envisaged by Article 16 of the Law on privatization.

The Institute for Urban Economics (IUE) Center for Energy Efficiency (CENEf) Housing Initiative for Eastern Europe (IWO) Institute Byvania (The Institute of Housing)

Russian Urban Housing Energy Efficiency Programme – Model Development Analyse the current state of the housing stock privatization regime and the vague “as a rule” definition should be replaced by an imperative provision that “the former landlord shall retain an obligation to conduct capital repairs of a building in compliance with the standards for maintenance, operation and repairs of the housing stock”. In this wording Article 16 of the Law on privatization has been effective from January 1993 through the present day. This provision shall become ineffective on March 1, 2013, along with the whole Law on privatization. From that day on the outstanding obligations of the former landlords will be terminated for the lack of legal grounds for them. The only exception will be civil cases accepted prior to March 1, 2013 for court trial with accusations against former landlords of their failure to meet the requirements of Article 16 of the Law on privatization. The obligation to conduct capital repairs of apartment buildings set forth in the Law on privatization cannot be viewed as an obligation of the state proper. As a rule, during the housing stock privatization the function of a landlord was performed by local self-governance bodies or municipal enterprises/ institutions created by those bodies. Only housing premises in Moscow and St. Petersburg (which are federal-level cities) and an insignificant number of residential premises owned by the Russian Federation or subjects of the RF had specific landlords – the Russian Federation, subjects of the RF or state-owned enterprises/institutions created by them. Therefore, it is necessary to understand the obligations set forth in Article 16 of the Law on privatization in the broad meaning – as obligations of public legal entities, rather than in the narrow meaning (as government obligations). The plenary session of the Supreme Court of the Russian Federation held in 1993 made the necessary clarifications for courts with regard to application of the Law on privatization. At that point of time courts had no questions about implementation of capital repairs of apartment buildings, hence, the resolution of the plenary session of the Supreme Court of the RF did not cover any issues relating to capital repairs of apartment buildings to be conducted by the former landlords16. We believe, that this can be explained by the fact that at that point of time the Housing Code of the RSFSR and the RF Law # 4218-I, dated December 24, 1992, “On Basics of Federal Housing Policy” were applicable and they were based on the following approach: “state and public authorities, enterprises, institutions, organizations and officials are obliged to take care of the integrity of the housing stock and its improvement”. Capital repairs of apartment buildings, in which some part of apartments had been privatized by citizens, were conducted subject to a resolution by local self-governance bodies and financed exclusively from local budgets. The adopted new Housing Code of the Russian Federation established (in compliance with Article 210 of the Civil Code of the Russian Federation) an obligation for owners of premises to bear the burden of expenditures on maintaining the common property in apartment buildings (Article 39) and provided for the necessity to pass a decision on capital repairs at a general meeting of owners of premises in an apartment building. As a result, discrepancies between the new provisions and Article 16 of the Law on privatization surfaced.

16 Resolution #8, dated August 24, 1993, issued at the Plenary Session of the Supreme Court of the Russian Federation, “On Certain Aspects of Application of the Law of the Russian Federation ‘On Privatizing Housing Stock in the Russian Federation’ by Courts”.

The Institute for Urban Economics (IUE) 103 Center for Energy Efficiency (CENEf) Housing Initiative for Eastern Europe (IWO) Institute Byvania (The Institute of Housing)

6.2 PERSONES RESPONSIBLE FOR IMPLEMENTATION OF CAPITAL REPAIRS IN APARTMENT BUILDINGS, ACCORDING TO LAW ON PRIVATIZATION

At present, there is no certainty as to who is to be considered a former landlord in two-level municipalities: a municipal district or a settlement within a municipal district. The problem is that upon the expiration of the transition period of reforming the local self-governance system, after January 1, 2006 local self-governance bodies in municipal districts ceased to bear any responsibility for providing residential premises to citizens under social tenancy (naim) agreements on the territory of settlements and responsibility for the maintenance of residential premises in the municipal housing stock. Issues relating to making arrangements for the construction and maintenance of the municipal housing stock were included in the local agenda of settlements within municipal districts.17 According to the Law on privatization, a former landlord retains an obligation to conduct capital repairs of a building. At the same time, settlements cannot retain any such obligation, since formally it was established for municipal districts rather than for settlements. However, neither settlements nor municipal districts have an obligation to address such a local-importance issue as financing or co-financing capital repairs of buildings out of the funds of respective budgets. Moreover, Federal Law # 258-FZ, dated December 29, 2006 has supplemented the Federal law “On General Principles of Local Self-Governance in the Russian Federation” with Article 141 enacted on January 1, 2007, which stipulated that “local self-governance bodies of a settlement are entitled to…conduct financing and co-financing of capital repairs of residential buildings that had been owned by municipalities prior to March 1, 2005.” City districts (okrugs) enjoy similar rights.18 Therefore, the financing of capital repairs of the aforesaid apartment buildings is not an obligation of either settlements, which are an integral part of municipal districts, or of municipal districts and city okrugs. Based on the provisions of the Federal Law “On General Principles of Local Self-Governance in the Russian Federation”, local self-governance bodies in a settlement are entitled (but not obliged) to “implement the financing of capital repairs of buildings from the local budget revenues, excluding such revenues as inter-budgetary transfers allocated from the budget system of the Russian Federation, as well as local tax revenues resulting from additional transfers of a portion of federal and regional level tax revenues to local budgets”. We believe that court rulings that obligate local self-governance bodies to conduct capital repairs of apartment buildings contradict the foregoing provisions of the Federal Law “On General Principles of Local Self-Governance in the Russian Federation”. Depending on who was the owner of residential premises at the moment of privatization, the status of a former landlord can be assigned to a municipality, or to the Russian Federation or a subject of the Russian Federation. For example, if a municipality accepted a building from another public legal entity19 or a state-owned enterprise (a former state-owned enterprise), in the process of defining obligations under Article 16 of the Law on privatization it shall be necessary to find out the following: who was a landlord and when he was a landlord for the citizens who privatized residential premises in a respective building; were any funds allocated to the

17 Clause 6, Part 1 of Article 14 of the Federal Law #131-FZ, dated October 6, 2003, “On General Principles of Local Self-Governance in the Russian Federation”. 18 Clause 5, Part 1 of Article 161 of the same Law. 19 As provided for in Resolution # 3020-1 issued by the Supreme Soviet of the RF, dated December 27, 1991, “On Delimitation of State Property of the Russian Federation into Federal Property, State Property of the Republics within the RF and Municipal Property”. The Institute for Urban Economics (IUE) Center for Energy Efficiency (CENEf) Housing Initiative for Eastern Europe (IWO) Institute Byvania (The Institute of Housing)

Russian Urban Housing Energy Efficiency Programme – Model Development Analyse the current state of the housing stock municipality for the purpose of financing capital repairs of the buildings that had been handed over to the municipality?20 Without finding out the aforesaid facts it will be unreasonable to put in any claims against a municipality with regard to implementation of capital repairs. If the Russian Federation as the former owner of the housing stock (a landlord for citizens who privatized residential premises) handed over residential premises to a new owner – municipalities, and fulfilled its obligations to citizens via allocating funds to municipalities for implementation of capital repairs of residential premises and common property in apartment buildings, the obligation (as provided by Article 16 of the Law on privatization) to actually conduct, rather than just to finance capital repairs is assigned to municipalities.21 This is important for understanding whom the former landlords can hold responsible for the fulfillment of the obligation to conduct capital repairs.

6.3 ON THE PROCEDURE OF FULFILLING THE OBLIGATIONS OF THE FORMER LANDLORD WITH REGARD TO CAPITAL REPAIRS

The procedure of finalizing the obligations of the former landlord with regard to capital repairs of an apartment building in the process of privatization of residential premises in this building, which needs to undergo capital repairs, was not defined either in 1993 or later. Agreements on privatization of residential premises in state or municipal housing stock did not describe the condition of apartment buildings at the moment of privatizing particular residential premises (did not specify whether they needed to undergo capital repairs or not), nor did they specify whether the former landlord had an obligation to the former tenant of particular premises with regard to conducting capital repairs of the apartment building. The process of privatization of apartments in Russia has dragged on for almost twenty years (and has not been completed so far!). Therefore, some apartments in apartment buildings could have been privatized at the moment when there was no need in capital repairs, and, accordingly, the former landlord had no obligation to conduct capital repairs of the premises that were being privatized by the former tenants at that particular moment. In other words, in one and the same apartment building a municipality might have an obligation to conduct capital repairs for one group of the former tenants and have no such obligations to other tenants. Everything depended on the concrete time of apartment privatization (before or after the date defined as a standard date for implementation of capital repairs). As a result of sales-purchase of privatized premises, very frequently the former tenants are no longer the owners of those premises. Accordingly, neither the state, nor a municipality has any obligations to the new owners. Therefore, it remains quite a problem to find out whether a local self-governance body (or a state power body) has any obligation to conduct capital repairs of a particular building, and there is no established procedure (order) for resolving this problem. The fact that there is no established procedure for the implementation of Article 16 of the Law on privatization, as well as the fact that for a long time only local self-governance bodies were engaged in capital repairs of apartment buildings within the framework of municipal programs, and financing of repairs was implemented with local budget funds, contributed to the creation of public opinion that capital repairs of absolutely all apartment buildings in Russia (exclusive of those built with private investors’ money) should be conducted by the state (municipalities). As a

20 In accordance with the Statute on the procedure of transfer of socio-cultural and utility facilities from federal ownership into the ownership of the subjects of the Russian Federation and municipalities, which was approved by Resolution # 235 (clause 7) issued by the Government of the Russian Federation, dated March 7, 1995. 21 See resolution #А60-41270/2008-С1of the Court of Arbitration of Sverdlovskaya Oblast, dated April 27, 2009. The Institute for Urban Economics (IUE) 105 Center for Energy Efficiency (CENEf) Housing Initiative for Eastern Europe (IWO) Institute Byvania (The Institute of Housing)

Russian Urban Housing Energy Efficiency Programme – Model Development Analyse the current state of the housing stock result, owners of premises in apartment buildings did not put forward themselves any initiatives with regard to capital repairs (renovations) of the common property they owned.

6.4 JUDICIAL PRACTICE AND ITS IMPLICATIONS

After the adoption of the new Housing Code of the Russian Federation, in the process of implementation of Article 16 of the Law on privatization numerous problems emerged in the context of conducting capital repairs of an apartment building by the former landlord. For example, there are different judicial practices with regard to the obligation of the former landlord to conduct capital repairs of the building (or absence of such an obligation) in cases when the need to conduct capital repairs was recognized only after the privatization of residential premises already started. In 2007, the Supreme Court of the Russian Federation concluded that “the liability of the former landlord (state power body or local self-governance body) to conduct capital repairs of residential premises in an apartment building, which was not fulfilled by the former landlord as at the moment of privatization of residential premises by the citizen occupying the premises shall be preserved until the obligation is met”. A number of important conclusions can be made on the basis of this judicial clarification: • An obligation of the former landlord to conduct capital repairs of an apartment building shall be preserved only it appeared and was not fulfilled before the residential premises were privatized by a particular citizen; • The former land lord shall not assume the responsibility for overall capital repairs of the whole building because capital repairs of some part of premises that were obtained not via privatization (under civil law contracts on sales-purchase, exchange, by way of gift, inheritance, as well as in case of non-residential premises) should be financed only by the owners of those premises. The former landlord shall be responsible for capital repairs only in the share equal to the share of privatized residential premises, in which the former tenants and their family members continue to reside as at the moment of implementation of repairs, as well as for capital repairs of the premises that are still owned by the former landlord. However, these conclusions are only the result of interpretation and are not contained in the foregoing clarification. Therefore, we deem it necessary to emphasize that Article 16 of the Law on privatization is rather vague as regards the realization of the obligation of the former landlord to conduct capital repairs of the building, which was needed at the moment of privatization, in cases when one part of tenants had privatized residential premises prior to the recognition of the necessity of capital repairs of the building, whereas other tenants privatized the premises after such recognition. The existing judicial practice of courts of first instance is as follows: When citizens (owners of apartments, and in certain cases – tenants of municipal residential premises) go to the court to institute a legal action against a municipal administration demanding to oblige the latter to conduct capital repairs of an apartment building, quite frequently courts satisfy such lawsuits referring to the Law on privatization. In such situations it does not matter to the court whether all owners of premises in this building are at the same time the former tenants of the premises they occupy, or whether there are privately owned non-residential premises in the building or not. Moreover, another fact is not taken into consideration, namely – the fact that as at the moment of privatization of many apartments in the building it did not need capital repairs, and during many years after the privatization of these apartments their owners failed to The Institute for Urban Economics (IUE) 106 Center for Energy Efficiency (CENEf) Housing Initiative for Eastern Europe (IWO) Institute Byvania (The Institute of Housing)

Russian Urban Housing Energy Efficiency Programme – Model Development Analyse the current state of the housing stock address themselves the issue of proper maintenance and repairs of the common property belonging to them in the building. Although according to the Housing Code, all owners of premises in the building bear joint responsibility for the condition of the building, courts pass unreasonable rulings on implementation of capital repairs by local self-governance bodies using the local budget funds. Based on the information supplied by local self-governance bodies, the number of lawsuits filed by citizens demanding to force municipalities to implement capital repairs using budget funds is on the rise in the cities where courts ruled to have buildings repaired using budget funds and such rulings were executed. The possibility to conduct repairs using budget funds leads to the following: owners of premises in individual buildings refuse to hold general meetings on issues relating to capital repairs and to invest their savings in the improvement of the building’s condition. Such an attitude affects the process of making decisions on not only capital repairs, but also on current repairs: on the inclusion of current repairs in the list of works under an agreement with the management organization and establishment of an appropriate amount of payment for the building maintenance. Owners’ unwillingness to finance repairs results in the deterioration of condition of apartment buildings, which, in its turn, instigates citizens – tenants of municipal apartments to file lawsuits against a municipality demanding that the latter should conduct capital repairs of apartment buildings using budget funds. Some management organizations abuse the desire of owners and tenants to pay as little as possible for the maintenance of their building for the purposes of mala fide competition. They propose to apartment owners a list of works that does not envisage current repairs, and do not include in the amount of payments expenditures on responding to emergencies. And this is a common problem for all municipalities. At lawsuits filed by citizens, courts obligate municipalities to finance capital repairs of buildings, in which 80-90% of premises are privately owned, using budget funds.

6.5 OPTION OF THE CONSTITUTIONAL COURT OF THE RUSSIAN FEDERATION

In order to get deeper insight into the existence and extent of obligations of public-law entities with regard to financing capital repairs of apartment buildings in accordance with the provisions of the housing legislation of the Russian Federation it is necessary to examine the opinion of the Constitutional Court of the Russian Federation in relation to compliance with the Constitution of the Russian Federation of the provisions of Art. 158 of the Housing Code of the Russian Federation as to the necessity of imposition of capital repair costs on residential property owners in apartment buildings. Specifically, when considering an application challenging the constitutionality of Art. 158 of the Housing Code of RF as to the expenditures of residential property owners in an apartment building for capital repairs22, the Constitutional Court of the Russian Federation pointed out23

22 By decision of the Proletarsky District Court of the city of Rostov-on- dated May 30, 2008 which took legal effect on August 14, 2008 the action of citizen V.A. Knyazev and other claimants to the Department of Municipal Property and Public Amenities of Proletarsky District of the city of Rostov-on-Don for capital repairs of an apartment building at the expense of the city budget was dismissed. In this case, with reference to Art. 16 of the Law on Privatization, to Article 158 of the Housing Code of the Russian Federation and to Article 210 of the Civil Code of the Russian Federation the court ruled that upon fulfilment of obligations by the former landlord with regard to capital repairs of an apartment building, a residential property owner in an apartment building is obliged to bear expenses associated with maintenance of property owned and to share expenses associated with common property maintenance in an apartment building in proportion to his (her) share in the common property by making payments for maintenance and repair of residential property. 23 Ruling No. 540-O-O of the Constitutional Court of RF dated April 22, 2010 "On refusal to accept for consideration the complaint filed by citizen Vladimir Aleksandrovich Knyazev against violation of his constitutional The Institute for Urban Economics (IUE) 107 Center for Energy Efficiency (CENEf) Housing Initiative for Eastern Europe (IWO) Institute Byvania (The Institute of Housing)

Russian Urban Housing Energy Efficiency Programme – Model Development Analyse the current state of the housing stock that "the challenged regulations as such governing the issues related to common property maintenance in an apartment building and establishing mandatory cost sharing for residential property owners in an apartment building for maintenance and repair of common property in an apartment building, are designed to maintain buildings in a state complying with sanitary and technical requirements and to meet the common interests of residential property owners and can not be regarded as violating the constitutional rights of the applicant listed in the complaint." In another case involving contestation of constitutionality of Article16 of the Law on Privatization due to uncertainty about the conditions under which the responsibility of former landlords for capital repairs of old housing stock emerges, the Constitutional Court of the Russian Federation arrived at a conclusion24 that Art. 16 of the Law on Privatization establishing that in case of privatization of residential properties occupied by individuals in buildings requiring capital repairs, the responsibility of former lendlords remains to carry out capital repairs of buildings in accordance with regulations for maintenance, operation and repair of the housing stock, is intended to protect the property and housing rights of such individuals and can not be regarded in itself as violating constitutional rights of the applicant. This conclusion should be interpreted as acknowledgement of legitimacy of the said regulation by the Constitutional Court of the Russian Federation. The Constitutional Court of the Russian Federation25 pointed out that in accordance with Part 3 of Article 158 of the Housing Code of the Russian Federation the obligation to defray the costs of capital repairs of apartment buildings applies to all residential property owners in such buildings from the moment of commencement of ownership of residential property in such buildings. According to the Constitutional Court of the Russian Federation, this regulation defines in more detail the general provision of Art. 210 of the Civil Code of the Russian Federation whereby an owner bears the burden of maintaining his property, unless otherwise provided by law or contract, and does not stipulate specific amounts of fees for maintenance and repair of residential property and does not violate any constitutional rights of the applicant in itself. However, the Constitutional Court of the Russian Federation pointed out in the following that: "In addition, it should be taken into consideration that according to Art. 16 of the Law of the Russian Federation dated July 4, 1991 "On Housing Stock Privatization in the Russian Federation" (as amended on December 29, 2004) in case of privatization of residential properties occupied by individuals in buildings requiring capital repairs, the responsibility of former landlords remains to carry out capital repairs of buildings in accordance with regulations for maintenance, operation and repair of the housing stock." Meanwhile, it is not defined by the Constitutional Court of the Russian Federation how regard is to be had to this provision.

6.6 PRIORITY OF STIPULATION OF THE HOUSING CODE OF THE RUSSIAN FEDERATION REVISITED

Adoption of the Housing Code was not accompanied by amendments to the Law on Privatization with regard to responsibilities of former landlords (the state or municipalities) for capital repairs of apartment buildings that were in need of capital repairs at the moment of privatization of apartments. As a result, from March 1, 2005 the provisions of Art. 16 of the Law

rights by Article 158 of the Housing Code of the Russian Federation and Paragraph 1, Part 2 of Article 2 of the Federal Law "On Enactment of the Housing Code of the Russian Federation." 24 Ruling No. 1334-O-O of the Constitutional Court of RF dated October 19, 2010 "On refusal to accept for consideration the complaint filed by citizen Vladimir Aleksandrovich Knyazev against violation of his constitutional rights by Article 16 of the Law of the Russian Federation "On Housing Stock Privatization in the Russian Federation." 25 Ruling No. 453-O-O of the Constitutional Court of RF dated June 19, 2007 "On refusal to accept for consideration the complaint filed by citizen Vladimir Aleksandrovich Knyazev against violation of his constitutional rights by Part 3 of Article 158 of the Housing Code of the Russian Federation." The Institute for Urban Economics (IUE) 108 Center for Energy Efficiency (CENEf) Housing Initiative for Eastern Europe (IWO) Institute Byvania (The Institute of Housing)

Russian Urban Housing Energy Efficiency Programme – Model Development Analyse the current state of the housing stock on Privatization started being in sharp discord with the regulations of the new Housing Code of the Russian Federation (hereinafter referred to as HC RF). The main contradiction is that: – The Law on Privatization established sole responsibility of the former landlord to carry out capital repairs of apartment buildings (i.e. evaluation of the necessity of capital repairs, decision-making on implementation of capital repairs, selection of contractors, contracting, funding from the budget); – Under the new Housing Code all residential property owners in an apartment building are responsible for the condition of common property in an apartment building, including decision-making on repairs at a general meeting of residential property owners in an apartment building and on the allocation of costs for such repairs in proportion to the share in the floor space owned by such owners (Articles 39, 44, 158 and others of HC RF). Consequently, a former landlord may no longer carry out capital repairs of a particular apartment building all by itself without violating the regulations of HC RF. Such a decision may be taken only at a general meeting of residential property owners in an apartment building. In accordance with Part 1 of Art. 4 of Federal Law No. 189-FZ dated December 29, 2004 "On Enactment of the Housing Code of the Russian Federation" pending bringing laws and other regulations valid on the territory of the Russian Federation into line with the Housing Code of the Russian Federation, the laws and other regulatory legal acts (including the Federal Law "On Housing Stock Privatization in the Russian Federation") shall apply insofar as they do not contravene the Housing Code of the Russian Federation and the Federal Law "On Enactment of the Housing Code of the Russian Federation." Therefore, despite the current judicial practice (see Paragraph 6.4 of this Section), it seems that for identification of the existing obligations of public-law entities and their extent with regard to financing capital repairs of apartment buildings pursuant to the provisions of the housing legislation of the Russian Federation and by virtue of express indication in Part 1 of Article 4 of Federal Law No. 189-FZ dated December 29, 2004 "On Enactment of the Housing Code of the Russian Federation", the provisions of Art. 30, 39, 44 and 158 of the Housing Code of the Russian Federation which regulate procedures for carrying out and financing of capital repairs of apartment buildings are superior in their legal status to the provisions of Art. 16 of the Law "On Housing Stock Privatization in the Russian Federation."

6.7 RECOMMENDATIONS ON REFINEMENT OF THE LEGISLATION

In order to solve the problem of definition of the existing obligations of local authorities such as former landlords with regard to capital repairs, it is necessary to amend Article 16 of the Law on Privatization. In these amendments the responsibilities of former landlords must be specified as well. For example: • It should be clarified that the obligation of the former landlord exists only towards former tenants of municipal accomodation who concluded an agreement on privatization of residential property with the former landlord and that it does not apply to residential property owners whose ownership emerged on other grounds; • It should be indicated that the responsibility of a former landlord for co-financing of capital repairs of apartment buildings exists only towards a former tenant of municipal accomodation in respect of which it is established that at the time of its privatization the apartment building was already in need of capital repairs; • It should be established that the responsibility of a former landlord consists not in conducting but in financing of capital repairs of an apartment building and that only in

The Institute for Urban Economics (IUE) 109 Center for Energy Efficiency (CENEf) Housing Initiative for Eastern Europe (IWO) Institute Byvania (The Institute of Housing)

Russian Urban Housing Energy Efficiency Programme – Model Development Analyse the current state of the housing stock proportion relating to residential properties towards the owner of which the obligation of the former landlord is established; • One should proceed from the premise that the obligation of the former landlord is to be fulfilled only if a resolution is adopted by the general meeting of residential property owners in a given apartment building on implementation of capital repairs and their cost.

6.8 EVALUATION OF THE AMOUNT OF STATE OBLIGATIONS TOWARDS CAPITAL REPAIRS OF APARTMENT BUILDINGS

Based on the analysis conducted, we can say that the current legislation does not give an unequivocal answer to the question whether the state has any liabilities with regard to capital repairs of apartment buildings (ABs) that were previously in state or municipal ownership. However, this question is regularly raised both by representatives of elected bodies of state power and, at a broader level, by the community. Wishes/demands to recognized “state debts” with regard to the under-repair of ABs transforms into a tool of political struggle, especially so in the election race. One of the proposed concepts for financing capital repairs envisages that “state debts” should be viewed as a substantial integral part of financing allocated for future repairs, and it is suggested that the size of state liabilities with regard to each individual AB must be evaluated26. As evidences from judicial practices, courts are not inclined to deliberate on whether the former landlord has any liabilities with regard to each individual former tenant. When citizens’ law suits are filed in courts, the latter make decisions obligating municipal administrations to conduct capital repairs of the whole apartment building, rather than to allocate funds for repairs proportionately to the share of each former tenant. Hence, the society expects that the state shall conduct (finance) capital repairs of ABs that were formerly owned by the state or municipality. We cannot rule out the possibility that in light of new legislative requirements to the energy performance of ABs, which have already undergone capital repairs, expectations with regard to the size of “state debts” will comprise not only the cost of capital repairs (that contribute to the rehabilitation of the building design properties), but also the implementation (in the process of capital repairs) of all activities envisaged by the law with regard to the enhancement of energy efficiency of ABs. This section pursues the goal of evaluating the costs that the state will have to bear (in terms of the order of magnitude), provided that it wishes to meet the public expectations and decides to recognized its “debts” with regard to capital repairs of the privatized housing stock. State obligations with regard to capital repairs of apartment buildings arose in January of 1993 when became effective the amendments to the law of the Russian Federation # 1541-I “On Privatization of Housing Stock in the Russian Federation” 27 enacted on July 4th, 1991. Those amendments refer to the obligations of former landlords of privatized residential premises towards capital repairs.

26 As proposed by the Chamber of Industry and Commerce of the Russian Federation.

27 Article 16 of the revised law establishes that “privatization of the residential premises, which are occupied by individuals and need capital repairs, should take place in accordance with current law. Meanwhile, a landlord maintains his / her responsibility to undertake capital repairs in accordance with standards of maintenance, operation and repair of the housing stock”. The Institute for Urban Economics (IUE) 110 Center for Energy Efficiency (CENEf) Housing Initiative for Eastern Europe (IWO) Institute Byvania (The Institute of Housing)

Russian Urban Housing Energy Efficiency Programme – Model Development Analyse the current state of the housing stock The amount of state obligations has been evaluated on the basis of the accepted assumption according to which the capital repairs should take place after 25 years, at the latest, following a building’s commissioning. In other words, the amount of capital repairs in, for example, 1980 should not be below the amount of residential housing commissioning 25 years before the reference year, i.e. in 1965. Difficulties with the evaluation stemmed from the fact that statistical data on apartment buildings started to be included only into the statements for 2005 and into those for subsequent years. Yet in what concerns relevant indicators only three-year figures are available. Besides, the statistical statements entirely lack a number of indicators which are necessary for fulfilling the work, such as, for instance, the amount of privatized residential premises in apartment buildings. As a result of this, the amount of state obligations towards capital repairs in apartment buildings has been evaluated as follows: 1. Evaluation of the demand for capital repairs and of the amount of actual capital repairs across the housing stock as a whole; 2. Evaluation of the demand for capital repairs and of the amount of actual capital repairs of apartment buildings; 3. Evaluation of the amount of privatized residential premises in apartment buildings in which the state obligations with regard to capital repairs have not been met. The basic data having been used for calculations - as well as the results of evaluation of the need for capital repairs across the housing stock as a whole – is summarized in Table 6.1. The Table shows that from 1970 to 1984 the amount of capital repairs of Russia’s housing stock several times exceeded those determined on the basis of the 25-year cycle as mentioned above. In 1985, the actual amount of capital repairs was, for the first time, below the expected one. In the ensuing years, the gap between actual and expected amounts of capital repairs has been only widening. As of the end of 1990, the actual amounts of capital repairs were almost half as much as the expected ones28. As of the end of 2010, the total amount of outstanding capital repairs reached 874.3 million sq. m. The actual amount of capital repairs made up 30.7 million sq. m. across the housing stock. Thus, even with a threefold increase in the amount of works, the problem of outstanding capital repairs could not be completely solved any earlier than after 29 years. The assumptions, as listed below, have been used when evaluating the demand for capital repairs in apartment buildings: • In 1989 through 2004 the area of apartment buildings’ housing stock has been defined as 68% of the total area of housing stock (the average value for the period from 2005 to 2010 for which relevant statistical data is available); • The amount of capital repairs of apartment buildings in 1989 through 2007 has been defined as 92.6% of the total amount of capital repairs of housing stock (the average value for the period from 2008 to 2010 for which relevant statistical data is available); • Experts determined the amount of privatized residential premises in apartment buildings to make up 95% of annually privatized residential housing.

28By way of an indirect proof of the validity of the approach - we assumed to evaluate the demand for capital repairs - serves an indication at page 213 of a statistics digest entitled “The National Economy of RSFSR in 1990” to the fact that the amount of allocations for capital repairs that year made up only half of what was required to maintain the housing stock in line with regulatory documents. The Institute for Urban Economics (IUE) 111 Center for Energy Efficiency (CENEf) Housing Initiative for Eastern Europe (IWO) Institute Byvania (The Institute of Housing)

Russian Urban Housing Energy Efficiency Programme – Model Development Analyse the current state of the housing stock The results of evaluation of state obligations towards capital repairs of apartment buildings are presented in Table 6.2. The Table shows that: • As of the end of 2010, the demand for capital repairs of apartment buildings was 482 million sq. m. (i.e. , 22% of apartment buildings’ housing stock), • State obligations have not been met with regard to capital repairs of the total of 289 million sq. m. of apartment buildings (i.e. , 13% of apartment buildings’ housing stock) According to the estimates, as of the end of 2010, the amount of state obligations, in monetary terms, was as mentioned below: • 956 billion rubles towards capital repairs undertaken to eliminate dilapidation; • 1,444 billion rubles towards capital repairs which involved the fulfillment of requirement to energy efficiency improvement.

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Russian Urban Housing Energy Efficiency Programme – Model Development Analyse the current state of the housing stock

Table 6. 1: Basic Data for National (the Russian Federation) Housing Stock Forecast29. Housing stock at the Commissioned Other changes Housing stock at the Evaluated demand for capital repairs of housing stock as a beginning of the year (1) housing stock (2) (3) end of the year whole

At the New Capital Removal of At the

beginning demand repairs dilapidated end of of the (4) done and the

Total Total Total Total year (5) emergency year housing Rural areas Rural areasRural areasRural areasRural Urban areasUrban areasUrban areasUrban areasUrban (6) 1945 263 12,2 269 1946 269 9,5 275 1947 275 10,6 281 1948 281 12,3 287 1949 287 13,1 293 1950 293 15,5 316 1951 316 18,4 322 1952 322 18,4 343 1953 343 20,8 359 1954 359 22,0 377 1955 377 21,8 390 1956 390 27,5 425 1957 425 34,3 460 1958 460 45,8 497 1959 497 50,8 535 1960 535 63,5 571 1961 571 59,0 37,6 21,4 -2,2 606 1962 606 57,5 36,6 20,9 -1,6 641 1963 641 55,5 35,3 20,2 -2,7 674 1964 674 52,7 33,6 19,1 -4,2 703

29 Source: Goskomstat (Federal State Statistics Service), statistics digests “The National Economy in RSFSR” for 1956-1990; Rosstat (formerly, Goskomstat), statistics digests: “Russia’ Statistical Yearbook”, “Residential Sector and Consumer Servicing of Population in Russia”, “Construction in Russia”, forms of statistical statements: 1-CR (capital repairs) and 1-HS (housing stock). The Institute for Urban Economics (IUE) 113 Center for Energy Efficiency (CENEf) Housing Initiative for Eastern Europe (IWO) Institute Byvania (The Institute of Housing)

Russian Urban Housing Energy Efficiency Programme – Model Development Analyse the current state of the housing stock

1965 703 54,9 37,8 17,1 -4,5 737 1966 737 55,7 38,1 17,6 -5,5 769 1967 769 64,4 44,1 20,3 -9,9 803 1968 803 56,1 38,4 17,7 -3,5 838 1969 838 57,4 39,3 18,1 -3,6 874 1970 874 58,6 43,1 15,5 -5,8 911 - 12,2 44,4 - 1971 911 59,3 44,8 14,5 -6,6 949 - 9,5 43,7 - 1972 949 59,8 45,1 14,7 -6,5 988 - 10,6 43,0 - 1973 988 61,5 46,4 15,1 -5,4 1 029 - 12,3 42,4 - 1974 1 029 61,6 46,5 15,1 -6,5 1 069 - 13,1 41,7 - 1975 1 069 61,9 46,5 15,4 -6,5 1 109 - 15,5 41,1 - 1976 1 109 59,7 45,7 14,0 -8,7 1 146 - 18,4 43,7 - 1977 1 146 60,5 46,2 14,3 -6,2 1 186 - 18,4 46,4 - 1978 1 186 59,9 45,8 14,1 -6,8 1 225 - 20,8 49,3 - 1979 1 225 55,6 42,3 13,3 -6,3 1 261 - 22,0 52,4 - 1980 1 261 59,4 45,0 14,4 -15,0 1 861 1 291 570 - 21,8 55,7 - 1981 1 861 1 291 570 59,3 43,5 15,8 -13,3 -9,5 -3,8 1 907 1 325 582 - 27,5 53,1 - 1982 1 907 1 325 582 61,2 44,3 16,9 6,8 0,7 6,1 1 975 1 370 605 - 34,3 50,6 - 1983 1 975 1 370 605 63,3 45,0 18,3 -4,3 -1,0 -3,3 2 034 1 414 620 - 45,8 48,2 - 1984 2 034 1 414 620 62,5 44,2 18,3 -8,5 -4,2 -4,3 2 088 1 454 634 - 50,8 46,0 1,9 2,9 1985 2 088 1 454 634 62,6 44,1 18,5 -12,6 -6,1 -6,5 2 138 1 492 646 2,9 63,5 43,8 1,9 20,7 1986 2 138 1 492 646 66,2 47,3 18,9 -2,2 -0,3 -1,9 2 202 1 539 663 20,7 59,0 38,8 1,9 39,0 1987 2 202 1 539 663 72,8 52,7 20,1 -13,8 -5,7 -8,1 2 261 1 586 675 39,0 57,5 38,0 1,9 56,6 1988 2 261 1 586 675 72,3 52,6 19,7 -13,3 -7,6 -5,7 2 320 1 631 689 56,6 55,5 35,7 1,9 74,5 1989 2 320 1 631 689 70,4 50,8 19,6 -11,4 -2,8 -8,6 2 379 1 679 700 74,5 52,7 32,2 1,9 93,1 1990 2 379 1 679 700 61,7 43,8 17,9 -15,7 -2,8 -12,9 2 425 1 720 705 93,1 54,9 29,1 1,9 117,0 1991 2 425 1 720 705 49,4 35,1 14,3 -25,4 -5,9 -19,5 2 449 1 749 700 117,0 55,7 19,7 1,9 151,2 1992 2 449 1 749 700 41,5 31,0 10,5 1,5 -1,1 2,6 2 492 1 779 713 151,2 64,4 22,2 1,9 191,5 1993 2 492 1 779 713 41,8 32,3 9,5 12,2 24,9 -12,7 2 546 1 836 710 191,5 56,1 22,8 1,9 222,9 1994 2 546 1 836 710 39,2 30,7 8,5 18,8 12,6 6,2 2 604 1 880 724 222,9 57,4 9,0 1,9 269,4 1995 2 604 1 880 724 41,0 32,1 8,9 0,0 -0,7 0,7 2 645 1 911 734 269,4 58,6 11,7 1,9 314,4 1996 2 645 1 911 734 34,3 26,2 8,1 -3,3 -0,2 -3,1 2 676 1 937 739 314,4 59,3 7,3 3,9 362,5

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Russian Urban Housing Energy Efficiency Programme – Model Development Analyse the current state of the housing stock

1997 2 676 1 937 739 32,7 24,6 8,1 1,3 0,4 0,9 2 710 1 962 748 362,5 59,8 6,4 2,9 413,0 1998 2 710 1 962 748 30,7 23,5 7,2 -2,7 -2,5 -0,2 2 738 1 983 755 413,0 61,5 4,9 2,7 466,8 1999 2 738 1 983 755 32,0 24,2 7,8 -9,0 -6,2 -2,8 2 761 2 001 760 466,8 61,6 4,1 2,3 522,0 2000 2 761 2 001 760 30,3 23,1 7,2 -4,3 -4,1 -0,2 2 787 2 020 767 522,0 61,9 3,8 2,2 577,9 2001 2 787 2 020 767 31,7 24,3 7,4 3,3 0,7 2,6 2 822 2 045 777 577,9 59,7 4,8 2,2 630,6 2002 2 822 2 045 777 33,8 26,2 7,6 -2,8 -2,2 -0,6 2 853 2 069 784 630,6 60,5 27,6 1,9 661,6 2003 2 853 2 069 784 36,4 28,3 8,1 -4,4 -4,3 -0,1 2 885 2 093 792 661,6 59,9 29,5 1,9 690,1 2004 2 885 2 093 792 41,0 32,3 8,7 -9,0 -10,1 1,1 2 917 2 115 802 690,1 55,6 19,7 2,4 723,6 2005 2 917 2 115 802 43,6 34,1 9,5 -5,6 -20,3 14,7 2 955 2 129 826 723,6 59,4 25,5 2,1 755,4 2006 2 955 2 129 826 50,6 40,6 10,0 -2,6 -6,6 4,0 3 003 2 163 840 755,4 59,3 23,3 1,9 789,5 2007 3 003 2 163 840 61,2 47,5 13,7 -4,2 -1,5 -2,7 3 060 2 209 851 789,5 61,2 30,4 2,6 817,7 2008 3 060 2 209 851 64,1 49,0 15,1 -8,1 -8,0 -0,1 3 116 2 250 866 817,7 63,3 50,3 2,3 828,4 2009 3 116 2 250 866 59,9 43,8 16,1 1,1 -0,8 1,9 3 177 2 293 884 828,4 62,5 43,0 2,9 845,0 2010 3 177 2 293 884 58,4 43,7 14,7 -6,4 -3,3 -3,1 3 229 2 333 896 845,0 62,6 30,7 2,6 874,3 Notes: An empty cell implies that relevant data is absent from statistical statements. (1) Before 1980 no statistical records with regard to the housing stock’s area in rural areas have been kept. (2) Expert evaluation of the amount of commissioned housing stock in urban areas from 1961 through 1974 on the basis of the five-year data and of that for the last year of the five-year period. (3) Defined as the result of subtraction of the housing stock’s area at the year-end from the sum of the housing stock’s area at the beginning of the year and the amount of annual commissioning; other changes embrace: a) changes due to inventory, b) changes due to the transfer of residential premises to a category of non-residential ones, and vice versa, c) physical removal, etc. (4) Newly emerging demand for capital repairs determined on the basis of the amount of commissioned housing stock 25 years ago. (5) Expert evaluation of data for the period from 1970 through 1984 on the basis of the five-year data and of that for the last year of the five-year period; from 2002 and further on the data is presented according to the form 1-CR (capital repairs) of statistical statements. (6) Data for 1984-1995 is defined as a minimum value on the basis of actual data from 1996 through 2010.

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Table 6.2: Evaluation of the Amount of State Obligations towards Former Tenants with regard to Capital Repairs in Apartment Buildings (ABs) 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 Basic data and basic assumptions Housing stock’s area at the year-end, total 2379 2425 2449 2492 2546 2604 2645 2676 2710 2738 2761 - including the area of ABs’ housing stock Share of ABs’ area in total area of housing stock Amount of capita repairs, total housing stock 32 29 20 22 23 9 12 7 6 5 4 - including the amount of capital repairs of ABs Share of ABs’ capital repairs in total capital repairs Annually privatized premises, total housing stock 1 2 6 128 274 112 72 57 56 46 39

Evaluation of ABs’ housing stock area 1617 1649 1665 1694 1731 1770 1798 1819 1842 1861 1877

Evaluation of the demand for capital repairs, ABs - Demand or capital repairs as of the beginning of the year 51 55 64 83 105 121 150 178 209 241 277 - Newly arising need 36 37 38 44 38 39 40 40 41 42 42 - Capital repairs done 30 27 18 21 21 8 11 7 6 5 4 - Removal of dilapidated and emergency housing 1 1 1 1 1 1 1 3 2 2 2 - Demand for capital repairs as of the year-end 55 64 83 105 121 150 178 209 241 277 313 Demand for capital repairs defined as a share of housing stock’s 3% 4% 5% 6% 7% 8% 10% 11% 13% 15% 17% area Evaluation of privatized premises in ABs Annually privatized premises, ABs 0 2 6 122 260 107 68 54 53 44 37 Premises privatized in ABs, on an accrual basis 0 2 8 130 390 496 565 619 672 716 753 Area of privatized premises as a share of ABs’ housing stock 0% 0% 0% 8% 23% 28% 31% 34% 36% 38% 40% area Evaluation of state obligations towards former tenants with regard to capital repairs Privatized premises in ABs which need capital repairs, 0% 0% 0% 0% 2% 2% 3% 4% 5% 6% 7% expressed in % of ABs’ area - the same, expressed in mln. sq. m. 0 0 0 8 27 42 56 71 88 106 126

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Russian Urban Housing Energy Efficiency Programme – Model Development Analyse the current state of the housing stock

Housing stock’s area which regard to which there have been 19 34 48 63 80 98 118 state obligations to undertake capital repairs from 1993

Table 6.2 (follow-up): Evaluation of the Amount of State Obligations towards Former Tenants with regard to Capital Repairs in Apartment Buildings (AB). 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Basic data and basic assumptions Housing stock’s area at the year-end, total 2787 2822 2853 2885 2917 2955 3003 3060 3116 3177 3229 - including the area of ABs’ housing stock 2020 2059 2083 2114 2148 2179 Share of ABs’ area in total area of housing stock 68% 69% 68% 68% 68% 67% Amount of capita repairs, total housing stock 4 5 28 30 20 26 23 30 50 43 31 - including the amount of capital repairs of ABs 44 41 29 Share of ABs’ capital repairs in total capital repairs 88% 96% 96% Annually privatized premises, total housing stock 42 62 68 42 69 89 78 36 31 63 41

Evaluation of ABs’ housing stock area 1895 1919 1940 1961 1983 2020 2059 2083 2114 2148 2179 Evaluation of the demand for capital repairs, ABs - Need for capital repairs as of the beginning of the year 313 350 385 399 411 429 445 463 474 471 471 - Newly arising demand 42 41 41 41 38 41 41 42 43 42 42 - Capital repairs done 4 4 26 27 18 24 22 28 44 41 29 - Removal of dilapidated and emergency housing 1 1 1 1 2 1 1 2 2 2 2 - Demand for capital repairs as of the year-end 350 385 399 411 429 445 463 474 471 471 482 Demand for capital repairs defined as a share of housing stock’s 18% 20% 21% 21% 22% 22% 22% 23% 22% 22% 22% area Evaluation of privatized premises in ABs Annually privatized premises, ABs 40 59 65 40 66 85 74 34 29 60 39 Premises privatized in ABs, on an accrual basis 793 852 916 956 1022 1106 1180 1215 1244 1304 1343 Area of privatized premises as a share of ABs’ housing stock 42% 44% 47% 49% 52% 55% 57% 58% 59% 61% 62% area Evaluation of state obligations towards former tenants with regard to capital repairs The Institute for Urban Economics (IUE) 117 Center for Energy Efficiency (CENEf) Housing Initiative for Eastern Europe (IWO) Institute Byvania (The Institute of Housing)

Russian Urban Housing Energy Efficiency Programme – Model Development Analyse the current state of the housing stock

Privatized premises in ABs which need capital repairs, 8% 9% 10% 10% 11% 12% 13% 13% 13% 13% 14% expressed in % of ABs’ area - the same, expressed in mln. sq. m. 147 171 189 201 221 244 265 277 277 286 297 Housing stock’s area which regard to which there have been 139 163 181 192 213 236 257 269 269 278 289 state obligations to undertake capital repairs from 1993

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CONCLUSIONS

1. The Constitutional Court arrived at a conclusion that "regulations governing the issues related to common property maintenance in an apartment building and establishing mandatory cost sharing for residential property owners in an apartment building for maintenance and repair of common property in an apartment building, are designed to maintain buildings in a state corresponding to sanitary and technical requirements and to meet the common interests of residential property owners and can not be regarded as violating the constitutional rights of the applicant." 2. The discrepancy between the Housing Code and the Law on Privatization as well as the lack of procedure to establish the obligations of former landlord (municipal and public authorities) have resulted in an unjustifiably broad interpretation of Art. 16 of the Law on Privatization, as evidenced by the current judicial practice. 3. Article 16 of the Law on Privatization can not be currently applied in the meaning it had at the time of adoption and subsequent amendments. Application of Art. 16 of the Law on Privatization is possible only insofar as it is not contrary to the stipulations of the Housing Code of the Russian Federation on the procedure for implementation of capital repairs of apartment buildings (by resolutions of general meetings of residential property owners in apartment buildings) and Federal Law No. 131-FZ dated October 6, 2003 "On General Principles of Local Government Organization in the Russian Federation", it means that not mandatory but eventual co-financing of expenditures on capital repairs of apartment buildings from the budget is established. 4. Obligations of a former landlord to carry out capital repairs exist as long as the Law "On Housing Stock Privatization in the Russian Federation" is in force, now until March 1, 2013. 5. The obligations of former landlords may be defined more exactly by making amendments to the Law on Privatization specifying the parties towards which such obligations emerge and the way and extent of fulfilment of such obligations. 6. According to the estimates state obligations have not been met with regard to capital repairs of the total of 289 million sq. m. of apartment buildings (i.e. , 13% of apartment buildings’ housing stock)

According to the estimates, as of the end of 2010, the amount of state obligations, in monetary terms, was as mentioned below:

• 956 billion rubles towards capital repairs undertaken to eliminate dilapidation; • 1,444 billion rubles towards capital repairs which involved the fulfillment of requirement to energy efficiency improvement.

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ANNEX 1. STATISTICAL DATA ON THE STATE OF THE HOUSING STOCK Table 1. Distribution of residential area by year of construction in Russian regions in 2009 (%) RF subjects/regions The year of comissioning before 1921-1945 1946-1970 1971-1995 after 1995 1920 Russian Federation 5.0 10.5 44.2 28.2 12.1 Central Federal District 6.2 12.8 46.1 25.1 9.8 Belgorod Oblast 4.2 8.5 40.4 31.6 15.3 Bryansk Oblast 2.5 8.9 52.3 29.1 7.1 Vladimir Oblast 10.5 20.0 35.5 24.1 10.0 Voronezh Oblast 2.9 9.0 51.4 29.1 7.7 Ivanovo Oblast 5.8 21.4 49.0 19.0 4.9 Kaluga Oblast 3.4 11.3 50.2 23.6 11.6 Kostroma Oblast 4.0 11.9 46.2 31.2 6.7 Kursk Oblast 2.8 6.6 67.6 20.1 3.0 Lipetsk Oblast 12.1 10.9 37.0 30.5 9.4 Moscow Oblast 6.0 14.1 34.8 20.6 24.6 Oryol Oblast 0.9 4.3 48.9 38.6 7.3 Ryazan Oblast 15.8 17.7 43.0 17.2 6.4 Smolensk Oblast 0.4 5.0 61.2 28.6 4.8 Tambov Oblast 6.5 12.9 47.2 27.4 6.0 Tver Oblast 8.5 22.5 41.3 20.7 7.1 Tula Oblast 10.2 14.3 50.5 19.7 5.3 Yaroslavl Oblast 14.8 21.1 36.9 20.3 6.9 City of Moscow 5.7 15.4 41.8 7.0 30.2 North-West Federal District 9.0 14.8 40.1 23.6 12.6 Republic of Karelia 5.3 14.0 55.6 16.2 8.8 Republic of Komi 7.0 10.5 39.3 30.1 13.1 Arkhangelsk Oblast 15.3 20.0 31.2 26.5 6.9 Vologda Oblast 13.3 16.5 36.6 22.8 10.7 Kaliningrad Oblast 0.2 39.9 21.0 22.9 16.0 Leningrad Oblast 8.2 9.0 39.2 21.2 22.5 Murmansk Oblast 5.1 19.8 59.7 8.7 6.7 Novgorod Oblast 8.8 16.3 47.8 18.9 8.3 Pskov Oblast 1.3 9.0 46.6 35.3 7.8 City of St. Petersburg 9.6 6.1 52.1 5.5 26.8 Nenetsky autonomous okrug/district 1.2 6.7 51.8 30.8 9.6 South Federal District 4.9 9.2 41.4 30.3 14.2 Republic of Adygeya 2.6 6.1 42.5 38.4 10.4 Republic of Kalmykia 2.1 5.9 50.0 28.4 13.6 Krasnodar Krai 4.2 10.3 39.7 30.2 15.6 Astrakhan Oblast 9.9 9.3 43.4 26.6 10.8 Volgograd Oblast 4.8 11.3 45.1 29.8 9.0 Rostov Oblast 5.6 10.0 48.8 27.4 8.2 North Caucasus Federal District Republic of Dagestan 8.1 8.4 26.4 31.4 25.7 Republic of Ingushetia 0.5 6.4 17.2 22.2 53.7 Republic of Kabardino-Balkaria 0.5 4.1 41.1 42.6 11.8 Republic of Karachayevo- Cherkessia 4.1 12.8 37.1 37.3 8.6 The Institute for Urban Economics (IUE) Center for Energy Efficiency (CENEf) Housing Initiative for Eastern Europe (IWO) Institute Byvania (The Institute of Housing)

Russian Urban Housing Energy Efficiency Programme – Model Development Analyse the current state of the housing stock RF subjects/regions The year of comissioning before 1921-1945 1946-1970 1971-1995 after 1995 1920 Republic of North Ossetia-Alania 3.3 13.0 28.0 39.0 16.6 Republic of 0.4 2.4 32.1 38.4 26.7 Stavropol Krai 5.1 6.8 50.2 27.4 10.6 Volga Federal District 3.8 8.7 43.6 30.6 13.4 Republic of Bashkortostan 1.2 3.2 43.8 31.1 20.7 Republic of Marii El 1.8 7.2 41.4 35.0 14.6 Republic of Mordovia 5.2 9.4 45.4 30.2 9.8 Republic of Tatarstan 0.8 3.9 40.1 33.1 22.1 Republic of 2.3 5.0 36.3 38.7 17.7 Republic of Chuvashiya 0.7 5.4 37.9 42.5 13.5 Perm Krai 6.5 10.3 46.0 26.5 10.6 Kirov Oblast 3.6 9.2 45.1 34.3 7.8 Nizhniy Novgorod Oblast 5.2 15.8 48.7 21.7 8.6 Orenburg Oblast 2.2 9.5 36.5 37.6 14.2 Penza Oblast 2.7 12.0 46.8 30.4 8.2 Samara Oblast 4.1 11.3 49.1 23.8 11.7 Saratov Oblast 12.3 10.5 40.4 28.9 7.9 Ulyanovsk Oblast 2.6 12.1 54.6 24.4 6.2 Urals Federal District 6.6 13.2 44.7 23.3 12.1 Kurgan Oblast 5.9 9.9 44.1 31.6 8.5 Sverdlovskaya Oblast 10.2 17.6 46.5 16.0 9.7 Tyumen Oblast 4.9 7.6 35.5 31.4 20.6 Chelyabinsk Oblast 4.1 13.0 48.3 23.2 11.5 Khanty-Mansiisk autonomous okrug/district 0.3 3.0 20.3 39.5 36.9 Yamalo-Nenetsky autonomous okrug/district 0.2 3.3 13.4 51.2 31.9 Siberia Federal District 3.5 10.0 46.7 29.4 10.4 Republic of Altai 2.7 6.5 40.2 28.6 21.9 Republic of Buryatiya 8.0 8.9 34.9 30.4 17.8 Republic of Tyva 1.1 8.4 52.3 25.3 12.9 Republic of Khakasia 3.1 10.4 51.0 27.4 8.1 Altaisky Krai 2.0 9.5 45.3 33.3 9.8 Zabaikalsky Krai 4.9 18.6 34.7 33.0 8.8 Krasnoyarsk Krai 6.6 13.9 39.0 31.1 9.3 Irkutsk Oblast 8.4 12.0 46.2 26.0 7.4 Kemerovo Oblast 1.3 7.1 57.7 24.1 9.8 Novosibirsk Oblast 1.8 9.7 51.2 29.0 8.4 Omsk Oblast 1.3 5.2 49.8 32.1 11.6 Тоmsk Oblast 2.3 9.2 43.2 28.6 16.6 Far East Federal District 1.6 6.7 51.0 29.8 10.8 Republic of Sakha (Yakutia) 0.5 4.4 26.0 45.2 23.8 Kamchatsky Krai 0.1 8.8 54.5 29.8 6.8 2.5 7.5 60.4 21.5 8.1 Khabarovsk Krai 0.6 6.7 70.3 15.0 7.5 Amurskaya Oblast 3.2 7.4 55.4 29.0 4.9 Magadan Oblast 0.0 4.8 58.3 35.4 1.5 Sakhalin Oblast 0.1 13.4 53.0 24.5 9.0 Jewish autonomous Oblast 0.1 5.6 47.9 43.9 2.5 Chukotka autonomous okrug/district 0.1 1.0 37.3 15.5 46.1

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Russian Urban Housing Energy Efficiency Programme – Model Development Analyse the current state of the housing stock

Table 2. Data on capital repairs of the housing stock in 2009, by subjects of the Russian Federation Proportion of buildings subjected Total floor space of RF subjects/regions to capital repairs in Total cost of buildings subjected to the total floor space capital repairs capital repairs of residential buildings thousand м2 % million rubles 1 2 3 4

Russian Federation 43,014.3 1.4 143,687.1 Central Federal District 9,457.9 1.0 43,590.6 Belgorod Oblast 198.6 0.5 1798.8 Bryansk Oblast 6.2 0.0 1,226.2 Vladimir Oblast 208.7 0.6 1,095.7 Voronezh Oblast 621.9 1.1 1,301.3 Ivanovo Oblast 1,998.8 7.9 17,74.0 Kaluga Oblast 228.2 0.9 385.9 Kostroma Oblast 64.0 0.4 605.6 Kursk Oblast 8.6 0.0 1,509.0 Lipetsk Oblast 537.0 1.8 1,229.2 Moscow Oblast 653.5 0.3 2,034.7 Oryol Oblast 224.3 1.2 749.6 Ryazan Oblast 19.0 0.1 1,444.4 Smolensk Oblast 20.9 0.1 996.6 Tambov Oblast 4.4 0.0 1,311.9 Tver Oblast 379.2 1.0 2,372.8 Tula Oblast 121.1 0.3 339.7 Yaroslavl Oblast 301.5 1.0 2,108.4 City of Moscow 3,862.3 1.8 21,306.8 North-West Federal District 2,919.4 0.9 15,479.3 Republic of Karelia 3.6 0.0 315.5 Republic of Komi 122.4 0.6 594.0 Arkhangelsk Oblast 75.3 0.2 1,259.4 Vologda Oblast 644.5 2.1 1,048.4 Kaliningrad Oblast 260.3 1.2 808.7 Leningrad Oblast 302.9 0.7 1,641.3 Murmansk Oblast 764.1 3.9 1,181.9

The Institute for Urban Economics (IUE) 122 Center for Energy Efficiency (CENEf) Housing Initiative for Eastern Europe (IWO) Institute Byvania (The Institute of Housing)

Russian Urban Housing Energy Efficiency Programme – Model Development Analyse the current state of the housing stock Proportion of buildings subjected Total floor space of RF subjects/regions to capital repairs in Total cost of buildings subjected to the total floor space capital repairs capital repairs of residential buildings thousand м2 % million rubles 1 2 3 4

Novgorod Oblast 74.1 0.4 663.4 Pskov Oblast 89.8 0.5 804.6 City of St. Petersburg 582.4 0.5 7,162.2 Nenetsky autonomous okrug/district 20.3 474.1

South Federal District 2,305.7 0.8 8,343.1 Republic of Adygeya 373.5 3.4 424.7 Republic of Kalmykia 5.1 0.1 16.2 Krasnodar Krai 63.7 0.1 3331.3 Astrakhan Oblast 399.4 1.9 973.1 Volgograd Oblast 206.5 0.4 1,425.1 Rostov Oblast 1,257.6 1.4 2,172.7 North Caucasus Federal District 1,515.9 0.9 4,952.7 Republic of Dagestan 1,404.8 3.1 1,454.7 Republic of Ingushetia 0.0 0.0 9.2 Republic of Kabardino-Balkaria 48.7 0.3 473.4 Republic of Karachayevo-Cherkessia 0.2 0.0 178.5 Republic of North Ossetia-Alania 8.8 0.0 306.3 Republic of Chechnya 52.1 0.4 42.4 Stavropol Krai 1.3 0.0 2,488.2 Volga Federal District 13,223.6 2.0 33,386.2 Republic of Bashkortostan 2,862.4 3.3 5,859.7 Republic of Marii El 38.1 0.2 816.2 Republic of Mordovia 416.6 2.1 1,002.3 Republic of Tatarstan 3,628.2 4.3 1,0249.7 Republic of Udmurtia 219.6 0.7 716.4 Republic of Chuvashiya 666.9 2.3 1,329.3 Perm Krai 2,408.1 4.3 2,839.7 Kirov Oblast 46.0 0.2 769.7 Nizhniy Novgorod Oblast 453.1 0.6 1,709.5 Orenburg Oblast 46.7 0.1 1,136.0 Penza Oblast 77.3 0.2 1,416.2 Samara Oblast 81.4 0.1 2,191.4

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Russian Urban Housing Energy Efficiency Programme – Model Development Analyse the current state of the housing stock Proportion of buildings subjected Total floor space of RF subjects/regions to capital repairs in Total cost of buildings subjected to the total floor space capital repairs capital repairs of residential buildings thousand м2 % million rubles 1 2 3 4

Saratov Oblast 2,182.9 3.5 2,562.4 Ulyanovsk Oblast 96.2 0.3 787.6 Urals Federal District 5,362.9 2.0 13,390.9 Kurgan Oblast 92.9 0.5 397.0 Sverdlovskaya Oblast 2,230.1 2.3 5,668.1 Tyumen Oblast 626.9 0.9 3,990.8 Chelyabinsk Oblast 2,413.1 3.0 3,335.0 Khanty-Mansiisk autonomous okrug/district 185.1 0.6 1,337.6 Yamalo-Nenetsky autonomous 98.8 1.0 857.2 okrug/district Tyumen Oblast (exclusive of Khanty- Mansiisk and Yamalo-Nenetsky 342.9 1.1 1,796.0 autonomous okrugs/districts) Siberia Federal District 5,862.8 1.4 17,950.7 Republic of Altai 112.4 3.0 317.5 Republic of Buryatiya 124.6 0.7 503.4 Republic of Tyva 234.6 5.9 151.2 Republic of Khakasia 49.9 0.5 614.0 Altaisky Krai 36.4 0.1 2,798.0 Zabaikalsky Krai 649.9 3.0 1,864.5 Krasnoyarsk Krai 220.9 0.4 3,287.6 Irkutsk Oblast 716.7 1.4 1,479.5 Kemerovo Oblast 1,949.7 3.2 2,684.0 Novosibirsk Oblast 116.9 0.2 1,769.3 Omsk Oblast 882.0 2.0 2,090.7 Тоmsk Oblast 768.9 3.5 391.0 Far East Federal District 2,366.1 1.7 6,593.7 Republic of Sakha (Yakutia) 819.3 4.3 1,420.1 Kamchatsky Krai 184.3 2.4 336.7 Primorsky Krai 642.5 1.6 1,788.1 Khabarovsk Krai 69.7 0.2 573.9 Amurskaya Oblast 256.8 1.4 884.0 Magadan Oblast 17.0 0.4 229.0 Sakhalin Oblast 185.6 1.6 515.1

The Institute for Urban Economics (IUE) 124 Center for Energy Efficiency (CENEf) Housing Initiative for Eastern Europe (IWO) Institute Byvania (The Institute of Housing)

Russian Urban Housing Energy Efficiency Programme – Model Development Analyse the current state of the housing stock Proportion of buildings subjected Total floor space of RF subjects/regions to capital repairs in Total cost of buildings subjected to the total floor space capital repairs capital repairs of residential buildings thousand м2 % million rubles 1 2 3 4

Jewish autonomous Oblast 136.1 3.5 313.1 Chukotka autonomous okrug/district 54.8 3.6 533.6

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Table 3. Data on the crumbling and unsafe housing stock in the subjects of the Russian Federation and on capital repairs in 2009 Crumbling and unsafe housing as Region’s share in the total floor Unit specific costs of capital repairs a proportion of the total floor space of residential buildings space of the regional housing stock subjected to capital repairs

% % Russian Federation 3.1 3340.5 Central Federal District 2.0 21.99 4608.9 Belgorod Oblast 2.4 0.46 9056.8 Bryansk Oblast 1.7 0.01 Vladimir Oblast 3.5 0.49 5249.9 Voronezh Oblast 1.1 1.45 2092.6 Ivanovo Oblast 2.3 4.65 887.5 Kaluga Oblast 5.2 0.53 1691.0 Kostroma Oblast 3.8 0.15 9459.2 Kursk Oblast 0.7 0.02 Lipetsk Oblast 0.9 1.25 2289.0 Moscow Oblast 1.5 1.52 3113.8 Oryol Oblast 2.5 0.52 3342.2 Ryazan Oblast 3.2 0.04 Smolensk Oblast 2.5 0.05 Tambov Oblast 3.2 0.01 Tver Oblast 4.5 0.88 6258.0 Tula Oblast 5.9 0.28 2806.2 Yaroslavl Oblast 4.4 0.70 6993.9 City of Moscow 0.3 8.98 5516.7 North-West Federal District 3.2 6.79 5302.2 Republic of Karelia 3.6 0.01 Republic of Komi 9.0 0.28 4852.7 Arkhangelsk Oblast 7.9 0.18 16720.8 Vologda Oblast 6.0 1.50 1626.6 Kaliningrad Oblast 2.3 0.61 3106.9 Leningrad Oblast 3.0 0.70 5418.6 Murmansk Oblast 2.3 1.78 1546.9

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Russian Urban Housing Energy Efficiency Programme – Model Development Analyse the current state of the housing stock

Novgorod Oblast 3.6 0.17 8948.7 Pskov Oblast 1.0 0.21 8963.8 City of St. Petersburg 0.7 1.35 12297.5 Nenetsky autonomous okrug/district 9.4 0.05 South Federal District 2.1 5.36 3618.5 Republic of Adygeya 1.8 0.87 1137.2 Republic of Kalmykia 2.3 0.01 3158.5 Krasnodar Krai 1.0 0.15 Astrakhan Oblast 10.1 0.93 2436.2 Volgograd Oblast 2.0 0.48 6902.5 Rostov Oblast 1.8 2.92 1727.7 North Caucasus Federal District 7.2 3.52 3267.2 Republic of Dagestan 20.1 3.27 1035.6 Republic of Ingushetia 20.8 Republic of Kabardino-Balkaria 2.4 0.11 9713.3 Republic of Karachayevo-Cherkessia 1.5 0.00 Republic of North Ossetia-Alania 2.5 0.02 Republic of Chechnya 0.4 0.12 812.6 Stavropol Krai 0.8 0.00 Volga Federal District 2.5 30.74 2524.7 Republic of Bashkortostan 1.2 6.65 2047.1 Republic of Marii El 3.7 0.09 Republic of Mordovia 1.7 0.97 2405.6 Republic of Tatarstan 1.3 8.43 2825.0 Republic of Udmurtia 2.6 0.51 3261.9 Republic of Chuvashiya 1.3 1.55 1993.2 Perm Krai 4.2 5.60 1179.2 Kirov Oblast 6.8 0.11 16728.8 Nizhniy Novgorod Oblast 2.3 1.05 3773.0 Orenburg Oblast 4.4 0.11 Penza Oblast 2.8 0.18 18325.6 Samara Oblast 2.0 0.19 Saratov Oblast 2.8 5.07 1173.8 Ulyanovsk Oblast 1.1 0.22 8190.8 The Institute for Urban Economics (IUE) 127 Center for Energy Efficiency (CENEf) Housing Initiative for Eastern Europe (IWO) Institute Byvania (The Institute of Housing)

Russian Urban Housing Energy Efficiency Programme – Model Development Analyse the current state of the housing stock

Urals Federal District 3.1 12.47 2497.0 Kurgan Oblast 6.0 0.22 4273.6 Sverdlovskaya Oblast 1.9 5.18 2541.7 Tyumen Oblast 5.7 1.46 6366.3 Chelyabinsk Oblast 6.7 5.61 1382.1 Khanty-Mansiisk autonomous okrug/district 8.4 0.43 7225.3 Yamalo-Nenetsky autonomous okrug/district 3.9 0.23 8673.9 Tyumen Oblast (exclusive of Khanty-Mansiisk and 1.6 0.80 5237.4 Yamalo-Nenetsky autonomous okrugs/districts) Siberia Federal District 4.7 13.63 3061.8 Republic of Altai 4.7 0.26 Republic of Buryatiya 7.6 0.29 4038.9 Republic of Tyva 18.8 0.55 644.4 Republic of Khakasia 4.6 0.12 12303.7 Altaisky Krai 2.2 0.08 Zabaikalsky Krai 7.2 1.51 2868.9 Krasnoyarsk Krai 5.0 0.51 14880.7 Irkutsk Oblast 8.1 1.67 2064.4 Kemerovo Oblast 4.7 4.53 1376.7 Novosibirsk Oblast 2.9 0.27 15137.5 Omsk Oblast 1.4 2.05 2370.5 Тоmsk Oblast 5.4 1.79 508.4 Far East Federal District 6.3 5.50 2786.8 Republic of Sakha (Yakutia) 15.1 1.90 1733.3 Kamchatsky Krai 4.4 0.43 1827.0 Primorsky Krai 2.2 1.49 2783.1 Khabarovsk Krai 2.3 0.16 8240.0 Amurskaya Oblast 9.2 0.60 3442.2 Magadan Oblast 11.1 0.04 13445.0 Sakhalin Oblast 9.9 0.43 2774.9 Jewish autonomous Oblast 8.6 0.32 2300.9 Chukotka autonomous okrug/district 5.7 0.13 9744.5

The Institute for Urban Economics (IUE) 128 Center for Energy Efficiency (CENEf) Housing Initiative for Eastern Europe (IWO) Institute Byvania (The Institute of Housing)

ANNEX 2. DETAILED ESTIMATION OF SAVINGS FROM MEASURES IN EACH OF THE THREE STANDART PACKAGES

Table 1 Package No. 1 of measures to be implemented during capital repairs of residential buildings Acti- Number of floors in a building vity up to four floors inclusive; 5 to 8 floors; 9 to 12 floors; 13 to 16 floors; without reference to the No. number of storeys Description of activity Heat Elect Gas Water Heat Elect Gas Water Heat Elect Gas Water Heat Elect Gas Water Heat Elect Gas Water ener- ricit ener- ricit ener- ricit ener- ricit ener- ricit gy y gy y gy y gy y gy y

% % % % % % % % % % % % % % % % % % % % 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 1 Repair of roofs (with insulation and 0.2 0.0 0.0 0.0 0.2 0.0 0.0 0.0 0.2 0.0 0.0 0.0 0.1 0.0 0.0 0.0 0.2 0.0 0.0 0.0 waterproofing) 2 Repair of basements (with 0.2 0.0 0.0 0.0 0.2 0.0 0.0 0.0 0.1 0.0 0.0 0.0 0.1 0.0 0.0 0.0 0.1 0.0 0.0 0.0 basement floor insulation) 3 Repair (sealing) of joints in 0.4 0.0 0.0 0.0 0.3 0.0 0.0 0.0 0.3 0.0 0.0 0.0 0.1 0.0 0.0 0.0 0.3 0.0 0.0 0.0 combination with painting of external walls;

4 Installation of sealing gaskets 0.3 0.0 0.0 0.0 0.3 0.0 0.0 0.0 0.2 0.0 0.0 0.0 0.2 0.0 0.0 0.0 0.3 0.0 0.0 0.0 between window frames and walls of a building (with the installation of a third window pane or application of a film) 5 Repair (sealing) of front-entrance 0.9 0.0 0.0 0.0 0.9 0.0 0.0 0.0 0.6 0.0 0.0 0.0 0.3 0.0 0.0 0.0 0.6 0.0 0.0 0.0 doors with the installation of door closers (providing automatic door closing).

6 Repair (replacement) of utility systems inside a building in basements or attic floors, including: 6.1. pipes of the heating system inside a 1.3 0.0 0.0 0.0 0.9 0.0 0.0 0.0 0.6 0.0 0.0 0.0 0.6 0.0 0.0 0.0 0.6 0.0 0.0 0.0 building;

The Institute for Urban Economics (IUE) Center for Energy Efficiency (CENEf) Housing Initiative for Eastern Europe (IWO) Institute Byvania (The Institute of Housing)

Russian Urban Housing Energy Efficiency Programme – Model Development Analyse the current state of the housing stock

Acti- Number of floors in a building vity up to four floors inclusive; 5 to 8 floors; 9 to 12 floors; 13 to 16 floors; without reference to the No. number of storeys Description of activity Heat Elect Gas Water Heat Elect Gas Water Heat Elect Gas Water Heat Elect Gas Water Heat Elect Gas Water ener- ricit ener- ricit ener- ricit ener- ricit ener- ricit gy y gy y gy y gy y gy y

% % % % % % % % % % % % % % % % % % % % 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 6.2. in-building pipes of the hot water supply system 0.4 0.0 0.0 0.0 0.4 0.0 0.0 0.0 0.2 0.0 0.0 0.0 0.2 0.0 0.0 0.0 0.2 0.0 0.0 0.0 6.3. in-building pipes of the cold water 0.0 0.0 0.0 4.0 0.0 0.0 0.0 3.0 0.0 0.0 0.0 2.0 0.0 0.0 0.0 1.0 0.0 0.0 0.0 3.0 supply system 6.4. pipes of the sanitation (sewage) 0.0 0.0 0.0 2.0 0.0 0.0 0.0 1.5 0.0 0.0 0.0 1.0 0.0 0.0 0.0 0.5 0.0 0.0 0.0 1.0 system inside a building;

6.5. pipes of the gas-supply system 0.0 0.0 4.0 0.0 0.0 0.0 3.0 0.0 0.0 0.0 2.0 0.0 0.0 0.0 1.0 0.0 0.0 0.0 2.5 0.0 inside a building; 7 Installation of single-building heat 3.1 0.0 0.0 0.0 2.8 0.0 0.0 0.0 2.5 0.0 0.0 0.0 2.2 0.0 0.0 0.0 2.5 0.0 0.0 0.0 energy consumption meters

8 Installation of an automated 3.8 0.0 0.0 0.0 2.8 0.0 0.0 0.0 4.7 0.0 0.0 0.0 2.8 0.0 0.0 0.0 3.1 0.0 0.0 0.0 heating system control unit

9 Installation of single-building cold 0.0 0.0 0.0 7.0 0.0 0.0 0.0 6.0 0.0 0.0 0.0 5.0 0.0 0.0 0.0 4.0 0.0 0.0 0.0 6.0 water consumption meters

10 Installation of single-building hot 1.8 0.0 0.0 0.0 1.4 0.0 0.0 0.0 1.1 0.0 0.0 0.0 0.7 0.0 0.0 0.0 1.4 0.0 0.0 0.0 water consumption meters

11 Installation of single-building 0.0 0.0 10.0 0.0 0.0 0.0 9.0 0.0 0.0 0.0 8.0 0.0 0.0 0.0 7.0 0.0 0.0 0.0 8.0 0.0 natural gas consumption meters 12 Installation of single-building 0.0 3.0 0.0 0.0 0.0 4.0 0.0 0.0 0.0 4.5 0.0 0.0 0.0 0.1 0.0 0.0 0.0 4.0 0.0 0.0 multirate electronic electricity me- ters with enhanced accuracy (minimum 2.0)

The Institute for Urban Economics (IUE) 130 Center for Energy Efficiency (CENEf) Housing Initiative for Eastern Europe (IWO) Institute Byvania (The Institute of Housing)

Russian Urban Housing Energy Efficiency Programme – Model Development Analyse the current state of the housing stock

Acti- Number of floors in a building vity up to four floors inclusive; 5 to 8 floors; 9 to 12 floors; 13 to 16 floors; without reference to the No. number of storeys Description of activity Heat Elect Gas Water Heat Elect Gas Water Heat Elect Gas Water Heat Elect Gas Water Heat Elect Gas Water ener- ricit ener- ricit ener- ricit ener- ricit ener- ricit gy y gy y gy y gy y gy y

% % % % % % % % % % % % % % % % % % % % 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 13 Replacement of electric bulbs in 0.0 1.7 0.0 0.0 0.0 1.5 0.0 0.0 0.0 1.3 0.0 0.0 0.0 1.1 0.0 0.0 0.0 1.4 0.0 0.0 public spaces (stairwells, attics, basements, external lighting of entrances) by energy-saving lighting fixtures

14 Replacement of physically worn 0.0 3.0 0.0 0.0 0.0 3.0 0.0 0.0 0.0 2.0 0.0 0.0 0.0 1.0 0.0 0.0 0.0 2.0 0.0 0.0 out in-building electrical networks (wiring) and equipment of input distribution devices. 15 Repair or replacement of elevator 0.0 0.0 0.0 0.0 0.0 0.3 0.0 0.0 0.0 0.2 0.0 0.0 0.0 0.2 0.0 0.0 0.0 0.2 0.0 0.0 equipment (elevators) TOTAL 12.4 7.7 14.0 13.0 10.3 8.8 12.0 10.5 10.5 8.0 10.0 8.0 7.4 2.4 8.0 5.5 9.5 7.6 10.5 10.0

The Institute for Urban Economics (IUE) 131 Center for Energy Efficiency (CENEf) Housing Initiative for Eastern Europe (IWO) Institute Byvania (The Institute of Housing)

Table 2 Package No. 2 of measures to be implemented during capital repairs of residential buildings Acti- Number of floors in a building vity up to four floors inclusive; 5 to 8 floors; 9 to 12 floors; 13 to 16 floors; without reference to the No. number of storeys

Heat Elect Gas Water Heat Elect Gas Water Heat Elect Gas Water Heat Elect Gas Water Heat Elect Gas Water Description of activity ener- ricit ener- ricit ener- ricit ener- ricit ener- ricit gy y gy y gy y gy y gy y

% % % % % % % % % % % % % % % % % % % % 1 Repair of roofs (with insulation and 0.2 0.0 0.0 0.0 0.2 0.0 0.0 0.0 0.2 0.0 0.0 0.0 0.1 0.0 0.0 0.0 0.2 0.0 0.0 0.0 waterproofing) 2 Repair of basements (with 0.2 0.0 0.0 0.0 0.2 0.0 0.0 0.0 0.1 0.0 0.0 0.0 0.1 0.0 0.0 0.0 0.1 0.0 0.0 0.0 basement floor insulation) 3 Repair (sealing) of joints in 0.4 0.0 0.0 0.0 0.3 0.0 0.0 0.0 0.3 0.0 0.0 0.0 0.1 0.0 0.0 0.0 0.3 0.0 0.0 0.0 combination with painting of external walls;

4 Installation of state-of-the-art energy-efficient triple-glazed windows in plastic window frames 2.2 0.0 0.0 0.0 1.9 0.0 0.0 0.0 1.6 0.0 0.0 0.0 0.9 0.0 0.0 0.0 1.6 0.0 0.0 0.0 (energy-efficient triple-pane windows in PVC-frames). 5 Repair (sealing) of front-entrance 0.9 0.0 0.0 0.0 0.9 0.0 0.0 0.0 0.6 0.0 0.0 0.0 0.3 0.0 0.0 0.0 0.6 0.0 0.0 0.0 doors with the installation of door closers (providing automatic door closing). 6 Repair (replacement) of utility systems inside a building in basements or attic floors, including: 6.1. pipes of the heating system inside a 1.3 0.0 0.0 0.0 0.9 0.0 0.0 0.0 0.6 0.0 0.0 0.0 0.6 0.0 0.0 0.0 0.6 0.0 0.0 0.0 building; 6.2. in-building pipes of the hot water 0.4 0.0 0.0 0.0 0.4 0.0 0.0 0.0 0.2 0.0 0.0 0.0 0.2 0.0 0.0 0.0 0.2 0.0 0.0 0.0 supply system 6.3. in-building pipes of the cold water 0.0 0.0 0.0 4.0 0.0 0.0 0.0 3.0 0.0 0.0 0.0 2.0 0.0 0.0 0.0 1.0 0.0 0.0 0.0 3.0 supply system 6.4. pipes of the sanitation (sewage) 0.0 0.0 0.0 2.0 0.0 0.0 0.0 1.5 0.0 0.0 0.0 1.0 0.0 0.0 0.0 0.5 0.0 0.0 0.0 1.0 system inside a building;

6.5. pipes of the gas-supply system 0.0 0.0 4.0 0.0 0.0 0.0 3.0 0.0 0.0 0.0 2.0 0.0 0.0 0.0 1.0 0.0 0.0 0.0 2.5 0.0 inside a building;

The Institute for Urban Economics (IUE) Center for Energy Efficiency (CENEf) Housing Initiative for Eastern Europe (IWO) Institute Byvania (The Institute of Housing)

Russian Urban Housing Energy Efficiency Programme – Model Development Analyse the current state of the housing stock

Acti- Number of floors in a building vity up to four floors inclusive; 5 to 8 floors; 9 to 12 floors; 13 to 16 floors; without reference to the No. number of storeys

Heat Elect Gas Water Heat Elect Gas Water Heat Elect Gas Water Heat Elect Gas Water Heat Elect Gas Water Description of activity ener- ricit ener- ricit ener- ricit ener- ricit ener- ricit gy y gy y gy y gy y gy y

% % % % % % % % % % % % % % % % % % % % 7 Installation of heat-reflecting screens behind heating radiators 0.2 0.0 0.0 0.0 0.1 0.0 0.0 0.0 0.1 0.0 0.0 0.0 0.1 0.0 0.0 0.0 0.1 0.0 0.0 0.0 8 Installation of single-building heat 3.1 0.0 0.0 0.0 2.8 0.0 0.0 0.0 2.5 0.0 0.0 0.0 2.2 0.0 0.0 0.0 2.5 0.0 0.0 0.0 energy consumption meters 9 Installation of an automated single- building heat distribution and 5.3 0.0 0.0 0.0 6.0 0.0 0.0 0.0 6.9 0.0 0.0 0.0 7.9 0.0 0.0 0.0 6.3 0.0 0.0 0.0 metering station (replacement of mixing valves in a building). 10 Installation of hot water return 5.0 0.0 0.0 0.0 5.7 0.0 0.0 0.0 6.4 0.0 0.0 0.0 7.1 0.0 0.0 0.0 6.1 0.0 0.0 0.0 lines in the hot water supply systems 11 Installation of single-building cold 0.0 0.0 0.0 7.0 0.0 0.0 0.0 6.0 0.0 0.0 0.0 5.0 0.0 0.0 0.0 4.0 0.0 0.0 0.0 6.0 water consumption meters

12 Installation of single-building hot 1.8 0.0 0.0 0.0 1.4 0.0 0.0 0.0 1.1 0.0 0.0 0.0 0.7 0.0 0.0 0.0 1.4 0.0 0.0 0.0 water consumption meters

13 Installation of single-building 0.0 0.0 10.0 0.0 0.0 0.0 9.0 0.0 0.0 0.0 8.0 0.0 0.0 0.0 7.0 0.0 0.0 0.0 8.0 0.0 natural gas consumption meters

14 Installation of single-building 0.0 3.0 0.0 0.0 0.0 4.0 0.0 0.0 0.0 4.5 0.0 0.0 0.0 0.1 0.0 0.0 0.0 4.0 0.0 0.0 multirate electronic electricity meters with enhanced accuracy (minimum 2.0) 15 Replacement of electric bulbs in 0.0 1.7 0.0 0.0 0.0 1.5 0.0 0.0 0.0 1.3 0.0 0.0 0.0 1.1 0.0 0.0 0.0 1.4 0.0 0.0 public spaces (stairwells, attics, basements, external lighting of en- trances) by energy-saving lighting fixtures

The Institute for Urban Economics (IUE) 133 Center for Energy Efficiency (CENEf) Housing Initiative for Eastern Europe (IWO) Institute Byvania (The Institute of Housing)

Russian Urban Housing Energy Efficiency Programme – Model Development Analyse the current state of the housing stock

Acti- Number of floors in a building vity up to four floors inclusive; 5 to 8 floors; 9 to 12 floors; 13 to 16 floors; without reference to the No. number of storeys

Heat Elect Gas Water Heat Elect Gas Water Heat Elect Gas Water Heat Elect Gas Water Heat Elect Gas Water Description of activity ener- ricit ener- ricit ener- ricit ener- ricit ener- ricit gy y gy y gy y gy y gy y

% % % % % % % % % % % % % % % % % % % % 16 Replacement of physically worn 0.0 3.0 0.0 0.0 0.0 3.0 0.0 0.0 0.0 2.0 0.0 0.0 0.0 1.0 0.0 0.0 0.0 2.0 0.0 0.0 out in-building electrical networks (wiring) and equipment of input distribution devices.

17 Repair or replacement of elevator 0.0 0.0 0.0 0.0 0.0 0.3 0.0 0.0 0.0 0.2 0.0 0.0 0.0 0.2 0.0 0.0 0.0 0.2 0.0 0.0 equipment (elevators) 18 Repair of water disposal systems 0.0 0.0 0.0 3.0 0.0 0.0 0.0 2.5 0.0 0.0 0.0 2.0 0.0 0.0 0.0 1.5 0.0 0.0 0.0 2.0 (storm water pipes) in the buildings. 19 Improvement of public spaces 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 (repair of stairwells, painting walls in public spaces, repair of garbage chutes).

20 Provision of amenities (planting of 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 greenery) in building surrounding outdoor areas TOTAL 21.0 7.7 14.0 16.0 20.8 8.8 12.0 13.0 20.6 8.0 10.0 10.0 20.4 2.4 8.0 7.0 20.0 7.6 10.5 12.0

The Institute for Urban Economics (IUE) 134 Center for Energy Efficiency (CENEf) Housing Initiative for Eastern Europe (IWO) Institute Byvania (The Institute of Housing)

Table 3 Package No. 3 of measures to be implemented during capital repairs of residential buildings Acti- Number of floors in a building vity up to four floors inclusive; 5 to 8 floors; 9 to 12 floors; 13 to 16 floors; without reference to the No. number of storeys

Description of activity Heat Elect Gas Water Heat Elect Gas Water Heat Elect Gas Water Heat Elect Gas Water Heat Elect Gas Water ener- ricit ener- ricit ener- ricit ener- ricit ener- ricit gy y gy y gy y gy y gy y

% % % % % % % % % % % % % % % % % % % % 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 1 Repair of roofs (with insulation and 0.2 0.0 0.0 0.0 0.2 0.0 0.0 0.0 0.2 0.0 0.0 0.0 0.1 0.0 0.0 0.0 0.2 0.0 0.0 0.0 waterproofing); 2 Repair of basements (with 0.2 0.0 0.0 0.0 0.2 0.0 0.0 0.0 0.1 0.0 0.0 0.0 0.1 0.0 0.0 0.0 0.1 0.0 0.0 0.0 basement floor insulation) 3 Heat insulation of external walls: 1.6 0.0 0.0 0.0 1.3 0.0 0.0 0.0 1.1 0.0 0.0 0.0 0.7 0.0 0.0 0.0 1.3 0.0 0.0 0.0

4 Installation of state-of-the-art 2.2 0.0 0.0 0.0 1.9 0.0 0.0 0.0 1.6 0.0 0.0 0.0 0.9 0.0 0.0 0.0 1.6 0.0 0.0 0.0 energy-efficient triple-glazed windows in plastic window frames (energy-efficient triple-pane windows in PVC-frames).

5 Repair (sealing) of front-entrance 0.9 0.0 0.0 0.0 0.9 0.0 0.0 0.0 0.6 0.0 0.0 0.0 0.3 0.0 0.0 0.0 0.6 0.0 0.0 0.0 doors with the installation of door closers (providing automatic door closing).

6 Complete makeover (replacement) of in-building utility services, including: 6.1. Refurbishment of pipes of in- building heating systems (pipes in the basements and/or in the attics; 2.5 0.0 0.0 0.0 1.9 0.0 0.0 0.0 1.3 0.0 0.0 0.0 1.3 0.0 0.0 0.0 1.3 0.0 0.0 0.0 replacement of riser pipes and heating radiators) 6.2. Refurbishment of pipes of in- building hot water supply systems (pipes in the basements and/or in 0.7 0.0 0.0 0.0 0.7 0.0 0.0 0.0 0.4 0.0 0.0 0.0 0.4 0.0 0.0 0.0 0.4 0.0 0.0 0.0 the attics; replacement of standpipes)

The Institute for Urban Economics (IUE) Center for Energy Efficiency (CENEf) Housing Initiative for Eastern Europe (IWO) Institute Byvania (The Institute of Housing)

Russian Urban Housing Energy Efficiency Programme – Model Development Analyse the current state of the housing stock

Acti- Number of floors in a building vity up to four floors inclusive; 5 to 8 floors; 9 to 12 floors; 13 to 16 floors; without reference to the No. number of storeys

Description of activity Heat Elect Gas Water Heat Elect Gas Water Heat Elect Gas Water Heat Elect Gas Water Heat Elect Gas Water ener- ricit ener- ricit ener- ricit ener- ricit ener- ricit gy y gy y gy y gy y gy y

% % % % % % % % % % % % % % % % % % % % 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 6.3. Refurbishment of pipes of in- building cold water supply systems (pipes in the basements and/or in 0.0 0.0 0.0 8.0 0.0 0.0 0.0 6.0 0.0 0.0 0.0 4.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 6.0 the attics; replacement of standpipes) 6.4. Refurbishment of pipes of in- building sanitation systems (pipes 0.0 0.0 0.0 4.0 0.0 0.0 0.0 3.0 0.0 0.0 0.0 2.0 0.0 0.0 0.0 1.0 0.0 0.0 0.0 2.0 in the basements and/or in the attics; replacement of standpipes) 6.5. Refurbishment of pipes of in- building gas-supply systems (pipes 0.0 0.0 8.0 0.0 0.0 0.0 6.0 0.0 0.0 0.0 4.0 0.0 0.0 0.0 2.0 0.0 0.0 0.0 5.0 0.0 in the basements and/or in the attics; replacement of riser pipes) 7 Installation of heat-reflecting 0.2 0.0 0.0 0.0 0.1 0.0 0.0 0.0 0.1 0.0 0.0 0.0 0.1 0.0 0.0 0.0 0.1 0.0 0.0 0.0 screens behind heating radiators

8 Installation of single-building heat 3.1 0.0 0.0 0.0 2.8 0.0 0.0 0.0 2.5 0.0 0.0 0.0 2.2 0.0 0.0 0.0 2.5 0.0 0.0 0.0 energy consumption meters

9 Installation of an automated single- 5.3 0.0 0.0 0.0 6.0 0.0 0.0 0.0 6.9 0.0 0.0 0.0 7.9 0.0 0.0 0.0 6.3 0.0 0.0 0.0 building heat distribution and metering station (replacement of mixing valves in a building). 10 Installation of balancing valves in 1.3 0.0 0.0 0.0 1.1 0.0 0.0 0.0 0.9 0.0 0.0 0.0 0.9 0.0 0.0 0.0 0.9 0.0 0.0 0.0 riser pipes of the heating system

11 Installation of thermostatic control 1.6 0.0 0.0 0.0 1.4 0.0 0.0 0.0 1.3 0.0 0.0 0.0 1.1 0.0 0.0 0.0 1.3 0.0 0.0 0.0 valves (temperature regulators) on heating radiators

The Institute for Urban Economics (IUE) 136 Center for Energy Efficiency (CENEf) Housing Initiative for Eastern Europe (IWO) Institute Byvania (The Institute of Housing)

Russian Urban Housing Energy Efficiency Programme – Model Development Analyse the current state of the housing stock

Acti- Number of floors in a building vity up to four floors inclusive; 5 to 8 floors; 9 to 12 floors; 13 to 16 floors; without reference to the No. number of storeys

Description of activity Heat Elect Gas Water Heat Elect Gas Water Heat Elect Gas Water Heat Elect Gas Water Heat Elect Gas Water ener- ricit ener- ricit ener- ricit ener- ricit ener- ricit gy y gy y gy y gy y gy y

% % % % % % % % % % % % % % % % % % % % 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 12 Installation of hot water return 5.0 0.0 0.0 0.0 5.7 0.0 0.0 0.0 6.4 0.0 0.0 0.0 7.1 0.0 0.0 0.0 6.1 0.0 0.0 0.0 lines in the hot water supply systems 13 Installation of single-building cold 0.0 0.0 0.0 7.0 0.0 0.0 0.0 6.0 0.0 0.0 0.0 5.0 0.0 0.0 0.0 4.0 0.0 0.0 0.0 6.0 water consumption meters

14 Installation of single-building hot 1.8 0.0 0.0 0.0 1.4 0.0 0.0 0.0 1.1 0.0 0.0 0.0 0.7 0.0 0.0 0.0 1.4 0.0 0.0 0.0 water consumption meters

15 Installation of single-building 0.0 0.0 10.0 0.0 0.0 0.0 9.0 0.0 0.0 0.0 8.0 0.0 0.0 0.0 7.0 0.0 0.0 0.0 8.0 0.0 natural gas consumption meters

16 Installation of single-building 0.0 3.0 0.0 0.0 0.0 4.0 0.0 0.0 0.0 4.5 0.0 0.0 0.0 0.1 0.0 0.0 0.0 4.0 0.0 0.0 multirate electronic electricity me- ters with enhanced accuracy (minimum 2.0) 17 Replacement of electric bulbs in 0.0 1.7 0.0 0.0 0.0 1.5 0.0 0.0 0.0 1.3 0.0 0.0 0.0 1.1 0.0 0.0 0.0 1.4 0.0 0.0 public spaces (stairwells, attics, basements, external lighting of entrances) by energy-saving lighting fixtures 18 Installation of occupancy sensors in 0.0 2.8 0.0 0.0 0.0 2.5 0.0 0.0 0.0 2.3 0.0 0.0 0.0 1.7 0.0 0.0 0.0 2.3 0.0 0.0 public spaces 19 Replacement of physically worn 0.0 3.0 0.0 0.0 0.0 3.0 0.0 0.0 0.0 2.0 0.0 0.0 0.0 1.0 0.0 0.0 0.0 2.0 0.0 0.0 out in-building electrical networks (wiring) and equipment of input distribution devices.

20 Repair or replacement of elevator 0.0 0.0 0.0 0.0 0.0 0.3 0.0 0.0 0.0 0.2 0.0 0.0 0.0 0.2 0.0 0.0 0.0 0.2 0.0 0.0 equipment (elevators)

The Institute for Urban Economics (IUE) 137 Center for Energy Efficiency (CENEf) Housing Initiative for Eastern Europe (IWO) Institute Byvania (The Institute of Housing)

Russian Urban Housing Energy Efficiency Programme – Model Development Analyse the current state of the housing stock

Acti- Number of floors in a building vity up to four floors inclusive; 5 to 8 floors; 9 to 12 floors; 13 to 16 floors; without reference to the No. number of storeys

Description of activity Heat Elect Gas Water Heat Elect Gas Water Heat Elect Gas Water Heat Elect Gas Water Heat Elect Gas Water ener- ricit ener- ricit ener- ricit ener- ricit ener- ricit gy y gy y gy y gy y gy y

% % % % % % % % % % % % % % % % % % % % 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 21 Repair of water disposal systems 0.0 0.0 0.0 3.0 0.0 0.0 0.0 2.5 0.0 0.0 0.0 2.0 0.0 0.0 0.0 1.5 0.0 0.0 0.0 2.0 (storm water pipes) in the buildings. 22 Improvement of public spaces 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% (repair of stairwells, painting walls in public spaces, repair of garbage chutes).

23 Provision of amenities (planting of 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% greenery) in building surrounding outdoor areas TOTAL 26.6 10.5 18.0 22.0 25.7 11.3 15.0 17.5 24.4 10.3 12.0 13.0 23.8 4.0% 9.0% 6.5% 24.1 9.9% 13.0 16.0 % % % % % % % % % % % % % % % %

The Institute for Urban Economics (IUE) 138 Center for Energy Efficiency (CENEf) Housing Initiative for Eastern Europe (IWO) Institute Byvania (The Institute of Housing)

Russian Urban Housing Energy Efficiency Programme – Model Development Analyse the current state of the housing stock

ANNEX 3. AN EVALUATION OF EXPENDITURES FOR CAPITAL REPAIRS UNTIL 2035

Table 1 Evaluation of the scope of capital repairs, by subjects of the Russian Federation (thousand m2) Scenario 1 («Sluggish») Scenario 2 («Improvement») Scenario 3 («European») Regions 2015 2020 2025 2030 2035 2015 2020 2025 2030 2035 2015 2020 2025 2030 2035 Russian Federation 52,459.1 55,570.3 59,082.5 63,084.3 67,660.9 75,947.2 80,319.2 85,232.4 90,804.8 96,922.5 68,900.8 105,068.2 105,106.3 118,525.3 126,634.3 Central Federal District 14,945.2 15,831.6 16,832.2 17,972.3 19,276.1 21,636.8 22,882.3 24,282.1 25,869.6 27,612.5 19,629.3 29,933.1 29,944.0 33,767.0 36,077.2 Belgorod Oblast 233.5 247.3 263.0 280.8 301.2 338.0 357.5 379.4 404.2 431.4 306.7 467.6 467.8 527.5 563.6 Bryansk Oblast 17.0 18.0 19.1 20.4 21.9 24.6 26.0 27.6 29.4 31.3 22.3 34.0 34.0 38.3 40.9 Vladimir Oblast 232.7 246.5 262.1 279.8 300.1 336.9 356.3 378.1 402.8 429.9 305.6 466.1 466.2 525.8 561.7 Voronezh Oblast 304.3 322.3 342.7 365.9 392.5 440.5 465.9 494.4 526.7 562.2 399.7 609.5 609.7 687.5 734.6 Ivanovo Oblast 1,006.1 1,065.8 1,133.2 1,209.9 1,297.7 1,456.6 1,540.5 1,634.7 1,741.6 1,858.9 1,321.5 2,015.2 2,015.9 2,273.3 2,428.8 Kaluga Oblast 969.1 1,026.6 1,091.5 1,165.4 1,250.0 1,403.0 1,483.8 1,574.6 1,677.5 1,790.5 1,272.9 1,941.0 1,941.7 2,189.6 2,339.4 Kostroma Oblast 79.8 84.6 89.9 96.0 103.0 115.6 122.2 129.7 138.2 147.5 104.8 159.9 159.9 180.4 192.7 Kursk Oblast 52.9 56.1 59.6 63.6 68.3 76.6 81.0 86.0 91.6 97.8 69.5 106.0 106.0 119.6 127.7 Lipetsk Oblast 649.5 688.0 731.5 781.1 837.7 940.3 994.5 1,055.3 1,124.3 1,200.0 853.1 1,300.9 1,301.4 1,467.5 1,567.9 Moscow Oblast 3,555.3 3,766.2 4,004.2 4,275.4 4,585.6 5,147.2 5,443.5 5,776.4 6,154.1 6,568.7 4,669.6 7,120.8 7,123.4 8,032.8 8,582.4 Oryol Oblast 190.8 202.1 214.9 229.4 246.1 276.2 292.1 310.0 330.3 352.5 250.6 382.1 382.3 431.1 460.6 Ryazan Oblast 31.7 33.6 35.7 38.2 40.9 45.9 48.6 51.6 54.9 58.6 41.7 63.6 63.6 71.7 76.6 Smolensk Oblast 47.0 49.8 53.0 56.5 60.6 68.1 72.0 76.4 81.4 86.9 61.7 94.2 94.2 106.2 113.5 Tambov Oblast 15.4 16.3 17.3 18.5 19.8 22.3 23.6 25.0 26.6 28.4 20.2 30.8 30.8 34.8 37.1 Tver Oblast 353.4 374.3 398.0 425.0 455.8 511.6 541.0 574.1 611.7 652.9 464.1 707.8 708.0 798.4 853.0 Tula Oblast 1,866.3 1,976.9 2,101.9 2,244.3 2,407.1 2,701.9 2,857.4 3,032.2 3,230.4 3,448.1 2,451.2 3,737.9 3,739.2 4,216.6 4,505.1 Yaroslavl Oblast 290.4 307.7 327.1 349.3 374.6 420.5 444.7 471.9 502.7 536.6 381.5 581.7 581.9 656.2 701.1 City of Moscow 5,049.9 5,349.4 5,687.5 6,072.7 6,513.3 7,311.0 7,731.8 8,204.8 8,741.2 9,330.1 6,632.6 10,114.2 10,117.9 11,409.7 12,190.3 North-West Federal District 4,138.0 4,383.4 4,660.4 4,976.1 5,337.1 5,990.7 6,335.5 6,723.1 7,162.6 7,645.2 5,434.9 8,287.7 8,290.7 9,349.2 9,988.9 Republic of Karelia 15.0 15.9 16.9 18.0 19.3 21.7 22.9 24.3 25.9 27.7 19.7 30.0 30.0 33.8 36.1 Republic of Komi 122.1 129.3 137.5 146.8 157.5 176.7 186.9 198.4 211.3 225.6 160.4 244.5 244.6 275.8 294.7 Arkhangelsk Oblast 119.3 126.4 134.4 143.5 153.9 172.7 182.7 193.8 206.5 220.4 156.7 238.9 239.0 269.5 288.0 Arkhangelsk Oblast ( exclusive of 103.1 109.2 116.1 124.0 133.0 149.3 157.9 167.5 178.5 190.5 135.4 206.5 206.6 233.0 248.9 the autonomous okrug/district) Nenetsky autonomous 16.2 17.1 18.2 19.5 20.9 23.4 24.8 26.3 28.0 29.9 21.3 32.4 32.4 36.6 39.1 okrug/district Vologda Oblast 898.3 951.6 1,011.7 1,080.3 1,158.6 1,300.5 1,375.4 1,459.5 1,554.9 1,659.7 1,179.9 1,799.2 1,799.8 2,029.6 2,168.5 Kaliningrad Oblast 781.7 828.1 880.4 940.1 1,008.3 1,131.8 1,196.9 1,270.1 1,353.2 1,444.3 1,026.8 1,565.7 1566.3 1,766.3 1,887.1 Leningrad Oblast 262.9 278.5 296.1 316.2 339.1 380.6 402.6 427.2 455.1 485.8 345.3 526.6 526.8 594.0 634.7 Murmansk Oblast 1,231.2 1,304.2 1,386.6 1,480.5 1,588.0 1,782.4 1,885.0 2,000.3 2,131.1 2,274.7 1,617.1 2,465.9 2,466.8 2,781.7 2,972.0 Novgorod Oblast 88.4 93.7 99.6 106.3 114.0 128.0 135.4 143.7 153.0 163.4 116.1 177.1 177.2 199.8 213.4 Pskov Oblast 123.0 130.3 138.5 147.9 158.7 178.1 188.3 199.9 212.9 227.3 161.6 246.4 246.5 277.9 296.9 The Institute for Urban Economics (IUE) 139 Center for Energy Efficiency (CENEf) Housing Initiative for Eastern Europe (IWO) Institute Byvania (The Institute of Housing)

Russian Urban Housing Energy Efficiency Programme – Model Development Analyse the current state of the housing stock Scenario 1 («Sluggish») Scenario 2 («Improvement») Scenario 3 («European») Regions 2015 2020 2025 2030 2035 2015 2020 2025 2030 2035 2015 2020 2025 2030 2035 The city of St. Petersburg 496.0 525.4 558.6 596.5 639.7 718.1 759.4 805.9 858.6 916.4 651.5 993.4 993.8 1,120.7 1,197.4 South Federal District 2,495.5 2,643.5 2,810.6 3,001.0 3,218.7 3,612.9 3,820.9 4,054.6 4,319.7 4,610.7 3,277.7 4,998.2 5,000.0 5,638.4 6,024.1 Republic of Adygeya 158.7 168.1 178.7 190.9 204.7 229.8 243.0 257.9 274.7 293.2 208.5 317.9 318.0 358.6 383.1 Republic of Kalmykia 3.7 3.9 4.2 4.4 4.8 5.4 5.7 6.0 6.4 6.8 4.9 7.4 7.4 8.4 8.9 Krasnodar Krai 110.3 116.9 124.3 132.7 142.3 159.7 168.9 179.3 191.0 203.9 144.9 221.0 221.1 249.3 266.4 Astrakhan Oblast 239.3 253.5 269.5 287.8 308.6 346.4 366.4 388.8 414.2 442.1 314.3 479.3 479.4 540.7 577.6 Volgograd Oblast 399.8 423.5 450.3 480.8 515.6 578.8 612.1 649.6 692.0 738.7 525.1 800.7 801.0 903.3 965.1 Rostov Oblast 1,348.4 1,428.4 1,518.7 1,621.5 1,739.2 1,952.2 2,064.6 2,190.8 2,334.1 2,491.3 1,771.0 2,700.7 2,701.7 3,046.6 3,255.1 North Caucasus Federal District 972.6 1,030.3 1,095.4 1,169.6 1,254.5 1,408.1 1,489.2 1,580.3 1,683.6 1,797.0 1,277.5 1,948.1 1,948.8 2,197.6 2,347.9 Republic of Dagestan 734.3 777.9 827.0 883.1 947.1 1,063.1 1,124.3 1,193.1 1,271.1 1,356.7 964.5 1,470.8 1,471.3 1,659.1 1,772.7 Republic of Ingushetia 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Republic of Kabardino-Balkaria 116.6 123.5 131.3 140.2 150.3 168.7 178.4 189.4 201.7 215.3 153.1 233.4 233.5 263.3 281.3 Republic of Karachayevo- 14.7 15.5 16.5 17.6 18.9 21.2 22.5 23.8 25.4 27.1 19.3 29.4 29.4 33.1 35.4 Cherkessia Republic of North Ossetia-Alania 38.1 40.3 42.9 45.8 49.1 55.1 58.3 61.9 65.9 70.4 50.0 76.3 76.3 86.0 91.9 Republic of Chechnya 38.2 40.4 43.0 45.9 49.2 55.2 58.4 62.0 66.0 70.5 50.1 76.4 76.5 86.2 92.1 Stavropol Krai 30.9 32.7 34.8 37.1 39.8 44.7 47.2 50.1 53.4 57.0 40.5 61.8 61.8 69.7 74.5 Volga Federal District 13,660.4 14,470.6 15,385.2 16,427.2 17,619.0 19,776.7 20,915.2 22,194.6 23,645.7 25,238.7 17,941.8 27,359.9 27,369.8 30,864.1 32,975.7 Republic of Bashkortostan 2,405.9 2,548.6 2,709.6 2,893.2 3,103.1 3,483.1 3,683.6 3,908.9 4,164.5 4,445.1 3,159.9 4,818.6 4,820.4 5,435.8 5,807.7 Republic of Marii El 106.7 113.0 120.1 128.3 137.6 154.4 163.3 173.3 184.7 197.1 140.1 213.7 213.7 241.0 257.5 Republic of Mordovia 407.5 431.7 459.0 490.1 525.6 590.0 624.0 662.1 705.4 753.0 535.3 816.2 816.5 920.8 983.8 Republic of Tatarstan 3,850.4 4,078.7 4,336.5 4,630.3 4,966.2 5,574.4 5,895.3 6,255.9 6,664.9 7,113.9 5,057.2 7,711.8 7,714.6 8,699.5 9,294.7 Republic of Udmurtia 406.6 430.7 457.9 488.9 524.4 588.6 622.5 660.5 703.7 751.1 534.0 814.3 814.6 918.6 981.4 Republic of Chuvashiya 734.4 777.9 827.1 883.1 947.2 1,063.2 1,124.4 1,193.1 1,271.1 1,356.8 964.5 1,470.8 1,471.3 1,659.2 1,772.7 Perm Krai 2,270.5 2,405.1 2,557.2 2,730.4 2,928.4 3,287.1 3,476.3 3,689.0 3,930.1 4,194.9 2,982.1 4,547.5 4,549.1 5,129.9 5,480.9 Kirov Oblast 118.2 125.2 133.1 142.1 152.4 171.1 180.9 192.0 204.6 218.3 155.2 236.7 236.8 267.0 285.3 Nizhniy Novgorod Oblast 1,504.7 1,593.9 1,694.6 1,809.4 1,940.7 2,178.4 2,303.8 2,444.7 2,604.5 2,780.0 1,976.3 3,013.6 3,014.7 3,399.6 3,632.2 Orenburg Oblast 72.3 76.6 81.4 86.9 93.2 104.6 110.7 117.4 125.1 133.5 94.9 144.8 144.8 163.3 174.5 Penza Oblast 328.4 347.9 369.9 394.9 423.6 475.5 502.8 533.6 568.5 606.8 431.3 657.8 658.0 742.0 792.8 Samara Oblast 68.1 72.2 76.7 81.9 87.9 98.6 104.3 110.7 117.9 125.9 89.5 136.5 136.5 153.9 164.5 Saratov Oblast 1,127.3 1,194.2 1,269.7 1,355.7 1,454.0 1,632.1 1,726.0 1,831.6 1,951.4 2,082.8 1,480.7 2,257.9 2,258.7 2,547.1 2,721.3 Ulyanovsk Oblast 259.5 274.9 292.3 312.1 334.8 375.7 397.4 421.7 449.3 479.5 340.9 519.8 520.0 586.4 626.5 Urals Federal District 8,055.8 8,533.6 9,072.9 9,687.5 10,390.3 11,662.7 12,334.1 13,088.6 13,944.3 14,883.8 10,580.7 16,134.7 16,140.5 18,201.2 19.446.4 Kurgan Oblast 92.1 97.6 103.7 110.7 118.8 133.3 141.0 149.6 159.4 170.1 121.0 184.4 184.5 208.1 222.3 Sverdlovskaya Oblast 3,916.6 4,148.9 4,411.1 4,709.9 5,051.6 5,670.2 5,996.6 6,363.4 6,779.5 7,236.2 5,144.1 7,844.4 7,847.2 8,849.1 9,454.5 Tyumen Oblast 1,179.6 1,249.5 1,328.5 1,418.5 1,521.4 1,707.7 1,806.0 1,916.5 2,041.8 2,179.3 1,549.2 2,362.5 2,363.3 2,665.1 2,847.4 Chelyabinsk Oblast 2,867.6 3,037.7 3,229.6 3,448.4 3,698.6 4,151.5 4,390.5 4,659.1 4,963.7 5,298.1 3,766.3 5,743.4 5,745.5 6,479.0 6,922.2 Khanty-Mansiisk autonomous 399.9 423.6 450.4 480.9 515.8 579.0 612.3 649.7 692.2 738.9 525.2 800.9 801.2 903.5 965.3 okrug/district Yamalo-Nenetsky autonomous 183.0 193.9 206.2 220.1 236.1 265.0 280.3 297.4 316.8 338.2 240.4 366.6 366.7 413.6 441.9 okrug/district Tyumen Oblast (exclusive of 596.6 632.0 671.9 717.4 769.5 863.7 913.5 969.3 1,032.7 1,102.3 783.6 1,194.9 1,195.4 1,348.0 1,440.2 The Institute for Urban Economics (IUE) 140 Center for Energy Efficiency (CENEf) Housing Initiative for Eastern Europe (IWO) Institute Byvania (The Institute of Housing)

Russian Urban Housing Energy Efficiency Programme – Model Development Analyse the current state of the housing stock Scenario 1 («Sluggish») Scenario 2 («Improvement») Scenario 3 («European») Regions 2015 2020 2025 2030 2035 2015 2020 2025 2030 2035 2015 2020 2025 2030 2035 Khanty-Mansiisk and Yamalo- Nenetsky autonomous okrugs/districts) Siberia Federal District 5,595.8 5,927.7 6,302.4 6,729.2 7,217.4 8,101.3 8,567.7 9,091.8 9,686.2 10,338.8 7,349.7 11,207.7 11,211.7 12,643.2 13,508.1 Republic of Altai 107.6 114.0 121.2 129.4 138.8 155.8 164.8 174.9 186.3 198.9 141.4 215.6 215.7 243.2 259.8 Republic of Buryatiya 195.9 207.6 220.7 235.6 252.7 283.7 300.0 318.4 339.2 362.0 257.4 392.4 392.6 442.7 473.0 Republic of Tyva 153.6 162.7 173.0 184.7 198.1 222.4 235.2 249.6 265.9 283.8 201.8 307.7 307.8 347.1 370.8 Republic of Khakasia 22.4 23.8 25.3 27.0 28.9 32.5 34.4 36.5 38.8 41.5 29.5 44.9 45.0 50.7 54.2 Altaiский Krai 154.4 163.6 173.9 185.7 199.2 223.6 236.5 250.9 267.3 285.3 202.8 309.3 309.4 348.9 372.8 Zabaikalsky Krai 321.8 340.9 362.4 387.0 415.1 465.9 492.7 522.8 557.0 594.6 422.7 644.5 644.8 727.1 776.8 Krasnoyarsk Krai 265.8 281.6 299.4 319.7 342.9 384.8 407.0 431.9 460.1 491.1 349.1 532.4 532.6 600.6 641.7 Irkutsk Oblast 457.6 484.7 515.3 550.3 590.2 662.4 700.6 743.4 792.0 845.4 601.0 916.5 916.8 1,033.8 1,104.6 Kemerovo Oblast 1,802.0 1,908.8 2,029.5 2,166.9 2,324.1 2,608.8 2,759.0 2,927.7 3,119.1 3,329.3 2,366.7 3,609.1 3,610.4 4,071.3 4,349.9 Novosibirsk Oblast 156.7 166.0 176.5 188.4 202.1 226.9 239.9 254.6 271.2 289.5 205.8 313.8 313.9 354.0 378.2 Omsk Oblast 956.9 1,013.6 1,077.7 1,150.7 1,234.2 1,385.3 1,465.1 1,554.7 1,656.3 1,767.9 1,256.8 1,916.5 1,917.2 2,162.0 2,309.9 Тоmsk Oblast 1,001.0 1,060.4 1,127.4 1,203.8 1,291.1 1,449.2 1,532.6 1,626.4 1,732.7 1,849.5 1,314.8 2,004.9 2,005.6 2,261.7 2,416.4 Far East Federal District 3,010.6 3,189.1 3,390.7 3,620.3 3,883.0 4,358.5 4,609.4 4,891.4 5,211.2 5,562.3 3,954.1 6,029.7 6,031.9 6,802.0 7,267.4 Republic of Sakha (Yakutia) 1,210.0 1,281.8 1,362.8 1,455.1 1,560.7 1,751.8 1,852.6 1,966.0 2,094.5 2,235.6 1,589.3 2,423.5 2,424.4 2,733.9 2,920.9 Kamchatsky Krai 287.9 304.9 324.2 346.2 371.3 416.8 440.8 467.7 498.3 531.9 378.1 576.6 576.8 650.4 694.9 Primorsky Krai 659.2 698.3 742.4 792.7 850.2 954.4 1,009.3 1,071.1 1,141.1 1,218.0 865.8 1,320.3 1,320.8 1,489.4 1,591.3 Khabarovsk Krai 105.3 111.5 118.6 126.6 135.8 152.4 161.2 171.1 182.3 194.5 138.3 210.9 211.0 237.9 254.2 Amurskaya Oblast 125.9 133.4 141.8 151.4 162.4 182.3 192.8 204.6 218.0 232.6 165.4 252.2 252.3 284.5 304.0 Magadan Oblast 88.9 94.1 100.1 106.9 114.6 128.7 136.1 144.4 153.8 164.2 116.7 178.0 178.1 200.8 214.5 Sakhalin Oblast 322.0 341.1 362.7 387.3 415.4 466.2 493.1 523.2 557.4 595.0 423.0 645.0 645.2 727.6 777.4 Jewish autonomous Oblast 139.6 147.9 157.2 167.9 180.0 202.1 213.7 226.8 241.6 257.9 183.3 279.6 279.7 315.4 337.0 Chukotka autonomous 71.7 76.0 80.8 86.3 92.5 103.8 109.8 116.5 124.2 132.5 94.2 143.7 143.7 162.1 173.1 okrug/district

The Institute for Urban Economics (IUE) 141 Center for Energy Efficiency (CENEf) Housing Initiative for Eastern Europe (IWO) Institute Byvania (The Institute of Housing)

Russian Urban Housing Energy Efficiency Programme – Model Development Analyse the current state of the housing stock Table 2 Evaluation of the scope of comprehensive capital repairs, by subjects of the Russian Federation (thousand m2) Scenario 1 («Sluggish») Scenario 2 («Improvement») Scenario 3 («European») Regions 2015 2020 2025 2030 2035 2015 2020 2025 2030 2035 2015 2020 2025 2030 2035 Russian Federation 26,229.6 27,785.1 29,541.2 31,542.2 33,830.5 56,960.4 60,239.4 63,924.3 68,103.6 72,860.7 51,675.6 94,561.3 100,244.0 106,672.8 113,970.9 Central Federal District 3,535.2 3,744.9 3,981.5 4,251.2 4,559.6 7,677.1 8,119.0 8,615.6 9,178.9 9,820.1 6,964.8 12,744.9 13,510.8 14,377.3 15,360.9 Belgorod Oblast 72.5 76.8 81.7 87.2 93.6 157.5 166.6 176.8 188.3 201.5 142.9 261.5 277.2 295.0 315.2 Bryansk Oblast 8.2 8.7 9.3 9.9 10.6 17.8 18.9 20.0 21.3 22.8 16.2 29.6 31.4 33.4 35.7 Vladimir Oblast 96.0 101.7 108.1 115.4 123.8 208.4 220.4 233.9 249.2 266.6 189.1 346.0 366.8 390.3 417.0 Voronezh Oblast 510.2 540.5 574.7 613.6 658.1 1,108.0 1,171.8 1,243.5 1,324.8 1,417.3 1,005.2 1,839.5 1,950.0 2,075.1 2,217.0 Ivanovo Oblast 40.0 42.3 45.0 48.1 51.6 86.8 91.8 97.4 103.8 111.0 78.7 144.1 152.8 162.6 173.7 Kaluga Oblast 5.9 6.2 6.6 7.1 7.6 12.8 13.5 14.3 15.2 16.3 11.6 21.2 22.4 23.9 25.5 Kostroma Oblast 42.1 44.6 47.4 50.6 54.3 91.5 96.7 102.6 109.3 117.0 83.0 151.8 160.9 171.3 183.0 Kursk Oblast 76.5 81.0 86.2 92.0 98.7 166.1 175.7 186.5 198.6 212.5 150.7 275.8 292.4 311.1 332.4 Lipetsk Oblast 655.2 694.0 737.9 787.9 845.0 1,422.7 1,504.6 1,596.7 1,701.1 1,819.9 1,290.7 2,361.9 2,503.9 2,664.4 2,846.7 Moscow Oblast 126.7 134.2 142.7 152.3 163.4 275.1 291.0 308.8 328.9 351.9 249.6 456.7 484.2 515.2 550.5 Oryol Oblast 13.1 13.9 14.8 15.8 16.9 28.5 30.2 32.0 34.1 36.5 25.9 47.4 50.2 53.4 57.1 Ryazan Oblast 13.5 14.3 15.2 16.2 17.4 29.3 30.9 32.8 35.0 37.4 26.5 48.6 51.5 54.8 58.6 Smolensk Oblast 11.6 12.3 13.1 14.0 15.0 25.3 26.7 28.4 30.2 32.4 22.9 42.0 44.5 47.4 50.6 Tambov Oblast 9.8 10.4 11.1 11.8 12.7 21.3 22.6 23.9 25.5 27.3 19.4 35.4 37.5 40.0 42.7 Tver Oblast 276.7 293.1 311.7 332.8 356.9 601.0 635.6 674.4 718.5 768.7 545.2 997.7 1,057.6 1,125.5 1,202.5 Tula Oblast 122.5 129.7 137.9 147.3 157.9 265.9 281.2 298.4 318.0 340.2 241.3 441.5 468.0 498.0 532.1 Yaroslavl Oblast 42.6 45.2 48.0 51.3 55.0 92.6 97.9 103.9 110.7 118.4 84.0 153.7 162.9 173.4 185.2 City of Moscow 1,412.0 1,495.8 1,590.3 1,698.0 1,821.2 3,066.3 3,242.9 3,441.2 3,666.2 3,922.3 2,781.8 5,090.5 5,396.4 5,742.5 6,135.4 North-West Federal District 661.3 700.5 744.8 795.2 852.9 1,436.1 1,518.7 1,611.6 1,717.0 1,836.9 1,302.8 2,384.1 2,527.3 2,689.4 2,873.4 Republic of Karelia 24.1 25.5 27.2 29.0 31.1 52.4 55.4 58.8 62.6 67.0 47.5 86.9 92.2 98.1 104.8 Republic of Komi 49.1 52.0 55.3 59.0 63.3 106.6 112.7 119.6 127.4 136.3 96.7 176.9 187.5 199.6 213.2 Arkhangelsk Oblast 82.7 87.6 93.2 99.5 106.7 179.6 190.0 201.6 214.8 229.8 162.9 298.2 316.1 336.4 359.4 Arkhangelsk Oblast ( exclusive of the 60.2 63.7 67.8 72.4 77.6 130.7 138.2 146.6 156.2 167.1 118.5 216.9 230.0 244.7 261.5 autonomous okrug/district) Nenetsky autonomous okrug/district 22.5 23.9 25.4 27.1 29.1 48.9 51.8 54.9 58.5 62.6 44.4 81.2 86.1 91.7 97.9 Vologda Oblast 69.0 73.0 77.7 82.9 88.9 149.8 158.4 168.1 179.0 191.6 135.9 248.6 263.5 280.4 299.6 Kaliningrad Oblast 60.5 64.0 68.1 72.7 78.0 131.3 138.8 147.3 157.0 167.9 119.1 218.0 231.1 245.9 262.7 Leningrad Oblast 14.0 14.9 15.8 16.9 18.1 30.5 32.3 34.2 36.5 39.0 27.7 50.6 53.7 57.1 61.0 Murmansk Oblast 129.6 137.2 145.9 155.8 167.1 281.3 297.5 315.7 336.4 359.9 255.2 467.1 495.1 526.9 562.9 Novgorod Oblast 36.7 38.9 41.4 44.2 47.4 79.8 84.4 89.5 95.4 102.0 72.4 132.4 140.4 149.4 159.6 Pskov Oblast 21.6 22.9 24.3 26.0 27.8 46.9 49.6 52.6 56.0 59.9 42.5 77.8 82.5 87.8 93.8 City of St.Petersburg 174.1 184.4 196.0 209.3 224.5 378.0 399.8 424.2 452.0 483.5 342.9 627.5 665.3 707.9 756.3 South Federal District 774.3 820.2 872.0 931.1 998.7 1,681.4 1,778.2 1,887.0 2,010.4 2,150.8 1,525.4 2,791.4 2,959.1 3,148.9 3,364.3 Republic of Adygeya 21.7 23.0 24.4 26.1 28.0 47.1 49.8 52.9 56.4 60.3 42.8 78.2 83.0 88.3 94.3 Republic of Kalmykia 2.0 2.2 2.3 2.5 2.6 4.4 4.7 5.0 5.3 5.7 4.0 7.4 7.8 8.3 8.9 Krasnodar Krai 30.6 32.4 34.5 36.8 39.5 66.5 70.3 74.6 79.5 85.0 60.3 110.4 117.0 124.5 133.0 Astrakhan Oblast 200.8 212.7 226.2 241.5 259.0 436.1 461.2 489.4 521.4 557.8 395.6 724.0 767.5 816.7 872.6 Volgograd Oblast 88.1 93.3 99.2 105.9 113.6 191.3 202.3 214.7 228.7 244.7 173.5 317.5 336.6 358.2 382.7 The Institute for Urban Economics (IUE) 142 Center for Energy Efficiency (CENEf) Housing Initiative for Eastern Europe (IWO) Institute Byvania (The Institute of Housing)

Russian Urban Housing Energy Efficiency Programme – Model Development Analyse the current state of the housing stock Scenario 1 («Sluggish») Scenario 2 («Improvement») Scenario 3 («European») Regions 2015 2020 2025 2030 2035 2015 2020 2025 2030 2035 2015 2020 2025 2030 2035 Rostov Oblast 431.0 456.6 485.4 518.3 555.9 936.0 989.9 1,050.5 1,119.1 1,197.3 849.2 1,553.9 1,647.3 1,752.9 1,872.9 North Caucasus Federal District 209.9 222.4 236.4 252.4 270.7 455.8 482.1 511.6 545.0 583.1 413.5 756.7 802.2 853.7 912.1 Republic of Dagestan 140.1 148.4 157.7 168.4 180.6 304.2 321.7 341.3 363.7 389.1 275.9 504.9 535.3 569.6 608.6 Republic of Ingushetia 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Republic of Kabardino-Balkaria 8.1 8.5 9.1 9.7 10.4 17.5 18.5 19.7 20.9 22.4 15.9 29.1 30.8 32.8 35.0 Republic of Karachayevo-Cherkessia 5.5 5.8 6.2 6.6 7.1 11.9 12.6 13.4 14.2 15.2 10.8 19.8 21.0 22.3 23.8 Republic of North Ossetia-Alania 26.4 28.0 29.8 31.8 34.1 57.4 60.7 64.4 68.6 73.4 52.1 95.3 101.0 107.5 114.9 Republic of Chechnya 14.4 15.2 16.2 17.3 18.5 31.2 33.0 35.0 37.3 39.9 28.3 51.8 54.9 58.5 62.5 Stavropol Krai 15.5 16.4 17.4 18.6 20.0 33.6 35.6 37.8 40.2 43.0 30.5 55.8 59.2 63.0 67.3 Volga Federal District 12,430.7 13,168.0 14,000.2 14,948.5 16,033.0 26,994.7 28,548.7 30,295.0 32,275.7 34,530.2 24,490.1 44,814.6 47,507.7 50,554.5 54,013.2 Republic of Bashkortostan 2,624.7 2,780.4 2,956.1 3,156.3 3,385.3 5,699.8 6,028.0 6,396.7 6,814.9 7,290.9 5,171.0 9,462.4 10,031.1 10,674.4 11,404.7 Republic of Marii El 44.7 47.3 50.3 53.7 57.6 97.0 102.6 108.9 116.0 124.1 88.0 161.0 170.7 181.7 194.1 Republic of Mordovia 414.6 439.2 467.0 498.6 534.8 900.4 952.2 1,010.4 1,076.5 1,151.7 816.8 1,494.7 1,584.5 1,686.2 1,801.5 Republic of Tatarstan 5,171.3 5,478.0 5,824.2 6,218.7 6,669.9 11,230.0 11,876.5 12,603.0 13,427.0 14,364.9 10,188.1 18,643.3 19,763.6 21,031.1 22,470.0 Republic of Udmurtia 120.7 127.8 135.9 145.1 155.6 262.0 277.1 294.1 313.3 335.2 237.7 435.0 461.1 490.7 524.3 Republic of Chuvashiya 1,188.3 1,258.8 1,338.3 1,429.0 1,532.7 2,580.5 2,729.1 2,896.0 3,085.4 3,300.9 2,341.1 4,284.0 4,541.5 4,832.7 5,163.3 Perm Krai 826.6 875.6 931.0 994.0 1,066.1 1,795.0 1,898.4 2,014.5 2,146.2 2,296.1 1,628.5 2,980.0 3,159.1 3,361.7 3,591.7 Kirov Oblast 88.6 93.9 99.8 106.5 114.3 192.4 203.5 215.9 230.0 246.1 174.5 319.4 338.6 360.3 385.0 Nizhniy Novgorod Oblast 116.2 123.1 130.9 139.7 149.9 252.3 266.9 283.2 301.7 322.8 228.9 418.9 444.1 472.6 504.9 Orenburg Oblast 90.4 95.7 101.8 108.7 116.6 196.3 207.6 220.3 234.7 251.1 178.1 325.8 345.4 367.6 392.7 Penza Oblast 84.0 89.0 94.6 101.0 108.3 182.4 192.9 204.7 218.1 233.3 165.5 302.8 321.0 341.6 365.0 Samara Oblast 66.8 70.8 75.2 80.3 86.1 145.0 153.4 162.8 173.4 185.5 131.6 240.8 255.3 271.6 290.2 Saratov Oblast 1,324.5 1,403.0 1,491.7 1,592.7 1,708.3 2,876.3 3,041.8 3,227.9 3,438.9 3,679.2 2,609.4 4,774.9 5,061.9 5,386.5 5,755.0 Ulyanovsk Oblast 269.5 285.4 303.5 324.0 347.5 585.1 618.8 656.7 699.6 748.5 530.9 971.4 1,029.8 1,095.8 1,170.8 Urals Federal District 4,512.3 4,779.9 5,082.1 5,426.3 5,819.9 9,799.0 10,363.1 10,997.1 11,716.0 12,534.4 8,889.9 16,267.6 17,245.2 18,351.2 19,606.7 Kurgan Oblast 49.3 52.2 55.5 59.2 63.5 107.0 113.1 120.0 127.9 136.8 97.0 177.6 188.3 200.3 214.0 Sverdlovskaya Oblast 2,934.3 3,108.4 3,304.8 3,528.7 3,784.7 6,372.3 6,739.1 7,151.3 7,618.9 8,151.1 5,781.0 10,578.7 11,214.5 11,933.7 12,750.1 Tyumen Oblast 444.7 471.0 500.8 534.7 573.5 965.6 1,021.2 1,083.7 1,154.5 1,235.2 876.0 1,603.1 1,699.4 1,808.4 1,932.1 Chelyabinsk Oblast 1,084.1 1,148.4 1,220.9 1,303.6 1,398.2 2,354.2 2,489.7 2,642.0 2,814.7 3,011.3 2,135.8 3,908.2 4,143.1 4,408.8 4,710.4 Khanty-Mansiisk autonomous 83.7 88.7 94.3 100.6 108.0 181.8 192.2 204.0 217.3 232.5 164.9 301.7 319.9 340.4 363.7 okrug/district Yamalo-Nenetsky autonomous 106.5 112.8 119.9 128.1 137.4 231.3 244.6 259.6 276.5 295.8 209.8 384.0 407.0 433.1 462.8 okrug/district Tyumen Oblast (exclusive of Khanty-Mansiisk and Yamalo- 254.5 269.6 286.6 306.0 328.2 552.6 584.4 620.2 660.7 706.9 501.3 917.4 972.5 1,034.9 1,105.7 Nenetsky autonomous okrugs/districts) Siberia Federal District 3,130.5 3,316.2 3,525.8 3,764.6 4,037.7 6,798.3 7,189.7 7,629.5 8,128.3 8,696.1 6,167.6 11,286.1 11,964.3 12,731.6 13,602.6 Republic of Altai 0.7 0.7 0.8 0.8 0.9 1.5 1.6 1.7 1.8 1.9 1.4 2.5 2.6 2.8 3.0 Republic of Buryatiya 76.4 80.9 86.1 91.9 98.6 165.9 175.5 186.2 198.4 212.3 150.5 275.5 292.0 310.8 332.0 Republic of Tyva 84.8 89.8 95.5 102.0 109.4 184.2 194.8 206.7 220.2 235.6 167.1 305.8 324.1 344.9 368.5 Republic of Khakasia 38.0 40.2 42.8 45.7 49.0 82.5 87.2 92.6 98.6 105.5 74.8 136.9 145.1 154.4 165.0 The Institute for Urban Economics (IUE) 143 Center for Energy Efficiency (CENEf) Housing Initiative for Eastern Europe (IWO) Institute Byvania (The Institute of Housing)

Russian Urban Housing Energy Efficiency Programme – Model Development Analyse the current state of the housing stock Scenario 1 («Sluggish») Scenario 2 («Improvement») Scenario 3 («European») Regions 2015 2020 2025 2030 2035 2015 2020 2025 2030 2035 2015 2020 2025 2030 2035 Altaiский Krai 34.8 36.9 39.2 41.9 44.9 75.6 80.0 84.9 90.4 96.7 68.6 125.6 133.1 141.6 151.3 Zabaikalsky Krai 324.7 344.0 365.7 390.5 418.8 705.1 745.7 791.3 843.1 902.0 639.7 1,170.6 1,241.0 1,320.5 1,410.9 Krasnoyarsk Krai 86.5 91.6 97.4 104.0 111.5 187.8 198.6 210.8 224.5 240.2 170.4 311.8 330.5 351.7 375.8 Irkutsk Oblast 75.1 79.6 84.6 90.3 96.9 163.1 172.5 183.0 195.0 208.6 148.0 270.8 287.0 305.4 326.3 Kemerovo Oblast 819.3 867.9 922.8 985.3 1,056.8 1,779.3 1,881.7 1,996.8 2,127.4 2,276.0 1,614.2 2,953.8 3,131.3 3,332.1 3,560.1 Novosibirsk Oblast 89.2 94.5 100.5 107.3 115.1 193.8 204.9 217.5 231.7 247.9 175.8 321.7 341.0 362.9 387.7 Omsk Oblast 1,087.4 1,151.9 1,224.7 1,307.6 1,402.5 2,361.4 2,497.4 2,650.1 2,823.4 3,020.6 2,142.3 3,920.2 4,155.8 4,422.4 4,724.9 Тоmsk Oblast 413.6 438.1 465.8 497.3 533.4 898.1 949.8 1,007.9 1,073.8 1,148.8 814.8 1,491.0 1,580.6 1,681.9 1,797.0 Far East Federal District 975.3 1,033.1 1,098.4 1,172.8 1,257.9 2,117.9 2,239.8 2,376.8 2,532.2 2,709.1 1,921.4 3,516.0 3,727.3 3,966.3 4,237.7 Republic of Sakha (Yakutia) 536.8 568.6 604.5 645.5 692.3 1,165.6 1,232.7 1,308.2 1,393.7 1,491.0 1,057.5 1,935.1 2,051.4 2,183.0 2,332.3 Kamchatsky Krai 65.9 69.8 74.2 79.2 85.0 143.1 151.3 160.6 171.1 183.0 129.8 237.5 251.8 267.9 286.3 Primorsky Krai 232.0 245.7 261.2 278.9 299.2 503.7 532.7 565.3 602.3 644.3 457.0 836.2 886.5 943.3 1,007.9 Khabarovsk Krai 36.7 38.9 41.4 44.2 47.4 79.8 84.4 89.5 95.4 102.0 72.4 132.4 140.4 149.4 159.6 Amurskaya Oblast 20.9 22.1 23.5 25.1 26.9 45.3 47.9 50.8 54.1 57.9 41.1 75.2 79.7 84.8 90.6 Magadan Oblast 17.4 18.4 19.6 20.9 22.4 37.7 39.9 42.3 45.1 48.3 34.2 62.6 66.4 70.6 75.5 Sakhalin Oblast 53.8 57.0 60.6 64.7 69.4 116.8 123.6 131.1 139.7 149.5 106.0 194.0 205.6 218.8 233.8 Jewish autonomous Oblast 4.3 4.6 4.9 5.2 5.6 9.4 9.9 10.5 11.2 12.0 8.5 15.5 16.5 17.5 18.7 Chukotka autonomous okrug/district 7.6 8.0 8.6 9.1 9.8 16.5 17.4 18.5 19.7 21.1 15.0 27.4 29.0 30.9 33.0

The Institute for Urban Economics (IUE) 144 Center for Energy Efficiency (CENEf) Housing Initiative for Eastern Europe (IWO) Institute Byvania (The Institute of Housing)

Russian Urban Housing Energy Efficiency Programme – Model Development Analyse the current state of the housing stock Table 3 Evaluation of selective capital repairs, by subjects of the Russian Federation (thousand m2) Scenario 1 («Sluggish») Scenario 2 («Improvement») Scenario 3 («European») Regions 2015 2020 2025 2030 2035 2015 2020 2025 2030 2035 2015 2020 2025 2030 2035 Russian Federation 26,229.6 27,785.1 29,541.2 31,542.2 33,830.5 18,986.8 20,079.8 21,308.1 22,701.2 24,061.7 17,225.2 10,506.8 4,862.3 11,852.5 12,663.4 Central Federal District 9,116.5 9,657.2 10,267.5 10,963.0 11,758.3 6,599.2 6,979.1 7,406.0 7,890.2 8,363.1 5,986.9 3,651.8 1,690.0 4,119.5 4,401.4 Belgorod Oblast 135.2 143.2 152.3 162.6 174.4 97.9 103.5 109.8 117.0 124.0 88.8 54.2 25.1 61.1 65.3 Bryansk Oblast 8.6 9.1 9.7 10.3 11.1 6.2 6.6 7.0 7.4 7.9 5.6 3.4 1.6 3.9 4.1 Vladimir Oblast 124.9 132.3 140.6 150.1 161.0 90.4 95.6 101.4 108.1 114.5 82.0 50.0 23.1 56.4 60.3 Voronezh Oblast 2.6 2.8 3.0 3.2 3.4 1.9 2.0 2.1 2.3 2.4 1.7 1.1 0.5 1.2 1.3 Ivanovo Oblast 696.4 737.7 784.4 837.5 898.2 504.1 533.1 565.8 602.7 638.9 457.3 279.0 129.1 314.7 336.2 Kaluga Oblast 684.4 725.0 770.8 823.0 882.8 495.4 523.9 556.0 592.4 627.9 449.5 274.2 126.9 309.3 330.4 Kostroma Oblast 39.0 41.3 43.9 46.9 50.3 28.2 29.9 31.7 33.7 35.8 25.6 15.6 7.2 17.6 18.8 Kursk Oblast 5.6 5.9 6.3 6.7 7.2 4.0 4.3 4.5 4.8 5.1 3.7 2.2 1.0 2.5 2.7 Lipetsk Oblast 186.8 197.9 210.4 224.7 241.0 135.2 143.0 151.8 161.7 171.4 122.7 74.8 34.6 84.4 90.2 Moscow Oblast 2,466.9 2,613.3 2,778.4 2,966.6 3,181.8 1,785.8 1,888.6 2,004.1 2,135.1 2,263.1 1,620.1 988.2 457.3 1,114.8 1,191.0 Oryol Oblast 129.7 137.4 146.1 156.0 167.3 93.9 99.3 105.4 112.3 119.0 85.2 52.0 24.1 58.6 62.6 Ryazan Oblast 16.9 17.9 19.0 20.3 21.8 12.2 12.9 13.7 14.6 15.5 11.1 6.8 3.1 7.6 8.1 Smolensk Oblast 28.5 30.1 32.1 34.2 36.7 20.6 21.8 23.1 24.6 26.1 18.7 11.4 5.3 12.9 13.7 Tambov Oblast 6.8 7.2 7.7 8.2 8.8 4.9 5.2 5.5 5.9 6.2 4.5 2.7 1.3 3.1 3.3 Tver Oblast 134.9 142.9 152.0 162.2 174.0 97.7 103.3 109.6 116.8 123.8 88.6 54.0 25.0 61.0 65.1 Tula Oblast 1,271.6 1,347.0 1,432.1 1,529.1 1,640.1 920.5 973.5 1,033.0 1,100.5 1,166.5 835.1 509.4 235.7 574.6 613.9 Yaroslavl Oblast 188.1 199.2 211.8 226.1 242.6 136.1 144.0 152.8 162.8 172.5 123.5 75.3 34.9 85.0 90.8 City of Moscow 2,989.6 3,166.9 3,367.1 3,595.1 3,856.0 2,164.1 2,288.7 2,428.7 2,587.5 2,742.5 1,963.3 1,197.6 554.2 1,350.9 1,443.4 North-West Federal District 2,656.7 2,814.3 2,992.1 3,194.8 3,426.6 1,923.1 2,033.8 2,158.2 2,299.3 2,437.1 1,744.7 1,064.2 492.5 1,200.5 1,282.6 Republic of Karelia 0.5 0.6 0.6 0.7 0.7 0.4 0.4 0.4 0.5 0.5 0.4 0.2 0.1 0.2 0.3 Republic of Komi 66.0 70.0 74.4 79.4 85.2 47.8 50.6 53.7 57.2 60.6 43.4 26.5 12.2 29.8 31.9 Arkhangelsk Oblast 50.0 53.0 56.3 60.2 64.5 36.2 38.3 40.6 43.3 45.9 32.8 20.0 9.3 22.6 24.2 Arkhangelsk Oblast ( exclusive of the 48.0 50.8 54.0 57.7 61.9 34.7 36.7 39.0 41.5 44.0 31.5 19.2 8.9 21.7 23.2 autonomous okrug/district) Nenets autonomous okrug/district 2.1 2.2 2.3 2.5 2.7 1.5 1.6 1.7 1.8 1.9 1.4 0.8 0.4 0.9 1.0 Vologda Oblast 607.9 643.9 684.6 731.0 784.1 440.0 465.4 493.8 526.1 557.7 399.2 243.5 112.7 274.7 293.5 Kaliningrad Oblast 528.8 560.2 595.6 635.9 682.1 382.8 404.8 429.6 457.7 485.1 347.3 211.8 98.0 239.0 255.3 Leningrad Oblast 180.5 191.2 203.3 217.0 232.8 130.6 138.2 146.6 156.2 165.6 118.5 72.3 33.5 81.6 87.1 Murmansk Oblast 818.5 867.1 921.9 984.3 1055.7 592.5 626.6 664.9 708.4 750.9 537.5 327.9 151.7 369.9 395.2 Novgorod Oblast 47.3 50.1 53.3 56.9 61.0 34.3 36.2 38.4 41.0 43.4 31.1 19.0 8.8 21.4 22.8 Pskov Oblast 78.2 82.8 88.0 94.0 100.8 56.6 59.8 63.5 67.7 71.7 51.3 31.3 14.5 35.3 37.7 City of St.Petersburg 278.9 295.4 314.1 335.4 359.7 201.9 213.5 226.6 241.4 255.8 183.1 111.7 51.7 126.0 134.6 South Federal District 1,445.5 1,531.2 1,628.0 1,738.2 1,864.3 1,046.3 1,106.6 1,174.2 1,251.0 1,326.0 949.2 579.0 267.9 653.2 697.9 Republic of Adygeya 103.4 109.6 116.5 124.4 133.4 74.9 79.2 84.0 89.5 94.9 67.9 41.4 19.2 46.7 49.9 Republic of Kalmykia 1.8 1.9 2.0 2.1 2.3 1.3 1.4 1.4 1.5 1.6 1.2 0.7 0.3 0.8 0.9 Krasnodar Krai 65.4 69.3 73.7 78.7 84.4 47.4 50.1 53.1 56.6 60.0 43.0 26.2 12.1 29.6 31.6 Astrakhan Oblast 85.8 90.8 96.6 103.1 110.6 62.1 65.6 69.7 74.2 78.7 56.3 34.4 15.9 38.8 41.4 Volgograd Oblast 246.6 261.2 277.7 296.5 318.0 178.5 188.8 200.3 213.4 226.2 161.9 98.8 45.7 111.4 119.0 The Institute for Urban Economics (IUE) 145 Center for Energy Efficiency (CENEf) Housing Initiative for Eastern Europe (IWO) Institute Byvania (The Institute of Housing)

Russian Urban Housing Energy Efficiency Programme – Model Development Analyse the current state of the housing stock Scenario 1 («Sluggish») Scenario 2 («Improvement») Scenario 3 («European») Regions 2015 2020 2025 2030 2035 2015 2020 2025 2030 2035 2015 2020 2025 2030 2035 Rostov Oblast 775.7 821.8 873.7 932.9 1000.5 561.5 593.9 630.2 671.4 711.6 509.4 310.7 143.8 350.5 374.5 North Caucasus Federal District 601.7 637.4 677.7 723.6 776.1 435.6 460.6 488.8 520.8 552.0 395.2 241.0 111.5 271.9 290.5 Republic of Dagestan 462.0 489.4 520.3 555.6 595.9 334.4 353.7 375.3 399.8 423.8 303.4 185.1 85.6 208.8 223.0 Republic of Ingushetia 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Republic of Kabardino-Balkaria 79.2 83.9 89.2 95.3 102.2 57.4 60.7 64.4 68.6 72.7 52.0 31.7 14.7 35.8 38.3 Republic of Karachayevo-Cherkessia 8.1 8.6 9.1 9.7 10.4 5.9 6.2 6.6 7.0 7.4 5.3 3.2 1.5 3.7 3.9 Republic of North Ossetia-Alania 16.0 16.9 18.0 19.2 20.6 11.5 12.2 13.0 13.8 14.6 10.5 6.4 3.0 7.2 7.7 Republic of Chechnya 21.0 22.3 23.7 25.3 27.1 15.2 16.1 17.1 18.2 19.3 13.8 8.4 3.9 9.5 10.2 Stavropol Krai 15.4 16.3 17.3 18.5 19.9 11.2 11.8 12.5 13.3 14.1 10.1 6.2 2.9 7.0 7.4 Volga Federal District 4,491.9 4,758.3 5,059.1 5,401.7 5,793.6 3,251.6 3,438.8 3,649.1 3,887.7 4,120.7 2,949.9 1,799.3 832.7 2,029.8 2,168.7 Republic of Bashkortostan 609.3 645.5 686.3 732.8 785.9 441.1 466.5 495.0 527.4 559.0 400.2 244.1 113.0 275.3 294.2 Republic of Marii El 57.0 60.3 64.2 68.5 73.5 41.2 43.6 46.3 49.3 52.3 37.4 22.8 10.6 25.7 27.5 Republic of Mordovia 115.7 122.6 130.4 139.2 149.3 83.8 88.6 94.0 100.2 106.2 76.0 46.4 21.5 52.3 55.9 Republic of Tatarstan 569.9 603.7 641.9 685.4 735.1 412.5 436.3 463.0 493.3 522.8 374.3 228.3 105.6 257.5 275.2 Republic of Udmurtia 237.8 251.9 267.8 285.9 306.7 172.1 182.0 193.2 205.8 218.1 156.1 95.2 44.1 107.4 114.8 Republic of Chuvashiya 24.3 25.8 27.4 29.3 31.4 17.6 18.6 19.8 21.1 22.3 16.0 9.8 4.5 11.0 11.8 Perm Krai 1,264.1 1,339.1 1,423.7 1,520.1 1,630.4 915.1 967.7 1,026.9 1,094.1 1,159.6 830.2 506.4 234.3 571.2 610.3 Kirov Oblast 46.8 49.5 52.7 56.2 60.3 33.9 35.8 38.0 40.5 42.9 30.7 18.7 8.7 21.1 22.6 Nizhniy Novgorod Oblast 1,017.9 1,078.3 1,146.4 1,224.1 1,312.9 736.8 779.3 826.9 881.0 933.8 668.5 407.8 188.7 460.0 491.4 Orenburg Oblast 13.5 14.3 15.2 16.2 17.4 9.8 10.3 11.0 11.7 12.4 8.9 5.4 2.5 6.1 6.5 Penza Oblast 197.7 209.4 222.7 237.7 255.0 143.1 151.3 160.6 171.1 181.4 129.8 79.2 36.6 89.3 95.4 Samara Oblast 20.4 21.6 23.0 24.5 26.3 14.8 15.6 16.6 17.7 18.7 13.4 8.2 3.8 9.2 9.9 Saratov Oblast 246.0 260.6 277.1 295.8 317.3 178.1 188.3 199.9 212.9 225.7 161.6 98.5 45.6 111.2 118.8 Ulyanovsk Oblast 71.5 75.7 80.5 85.9 92.2 51.7 54.7 58.0 61.8 65.5 46.9 28.6 13.2 32.3 34.5 Urals Federal District 3,825.7 4,052.5 4,308.7 4,600.5 4,934.3 2,769.3 2,928.7 3,107.8 3,311.0 3,509.5 2,512.3 1,532.5 709.2 1,728.7 1,847.0 Kurgan Oblast 44.7 47.4 50.3 53.8 57.7 32.4 34.2 36.3 38.7 41.0 29.4 17.9 8.3 20.2 21.6 Sverdlovskaya Oblast 1,550.8 1,642.8 1,746.6 1,864.9 2,000.2 1,122.6 1,187.2 1,259.8 1,342.2 1,422.6 1,018.4 621.2 287.5 700.8 748.7 Tyumen Oblast 650.4 688.9 732.5 782.1 838.8 470.8 497.9 528.3 562.9 596.6 427.1 260.5 120.6 293.9 314.0 Chelyabinsk Oblast 1,579.8 1,673.5 1,779.3 1,899.8 2,037.6 1,143.6 1,209.4 1,283.4 1,367.3 1,449.2 1,037.5 632.8 292.9 713.9 762.7 Khanty-Mansiisk autonomous 248.5 263.2 279.9 298.8 320.5 179.9 190.2 201.9 215.1 228.0 163.2 99.5 46.1 112.3 120.0 okrug/district Yamalo-Nenetsky autonomous 85.3 90.3 96.0 102.5 110.0 61.7 65.3 69.3 73.8 78.2 56.0 34.2 15.8 38.5 41.2 okrug/district Tyumen Oblast (exclusive of Khanty- Mansiisk and Yamalo-Nenetsky 316.6 335.4 356.6 380.7 408.4 229.2 242.4 257.2 274.0 290.4 207.9 126.8 58.7 143.1 152.9 autonomous okrugs/districts) Siberia Federal District 2,659.0 2,816.7 2,994.8 3,197.6 3,429.6 1,924.8 2,035.6 2,160.1 2,301.4 2,439.3 1,746.2 1,065.1 492.9 1,201.6 1,283.8 Republic of Altai 76.0 80.5 85.6 91.4 98.0 55.0 58.2 61.7 65.8 69.7 49.9 30.4 14.1 34.3 36.7 Republic of Buryatiya 107.0 113.3 120.5 128.6 138.0 77.4 81.9 86.9 92.6 98.1 70.2 42.8 19.8 48.3 51.6 Republic of Tyva 73.5 77.8 82.7 88.3 94.8 53.2 56.2 59.7 63.6 67.4 48.2 29.4 13.6 33.2 35.5 Republic of Khakasia 0.1 0.1 0.1 0.1 0.1 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Altaiский Krai 94.9 100.5 106.9 114.1 122.4 68.7 72.7 77.1 82.1 87.1 62.3 38.0 17.6 42.9 45.8 The Institute for Urban Economics (IUE) 146 Center for Energy Efficiency (CENEf) Housing Initiative for Eastern Europe (IWO) Institute Byvania (The Institute of Housing)

Russian Urban Housing Energy Efficiency Programme – Model Development Analyse the current state of the housing stock Scenario 1 («Sluggish») Scenario 2 («Improvement») Scenario 3 («European») Regions 2015 2020 2025 2030 2035 2015 2020 2025 2030 2035 2015 2020 2025 2030 2035 Zabaikalsky Krai 92.5 98.0 104.2 111.3 119.3 67.0 70.8 75.2 80.1 84.9 60.8 37.1 17.1 41.8 44.7 Krasnoyarsk Krai 152.3 161.3 171.5 183.1 196.4 110.2 116.6 123.7 131.8 139.7 100.0 61.0 28.2 68.8 73.5 Irkutsk Oblast 293.0 310.3 329.9 352.3 377.8 212.1 224.3 238.0 253.5 268.7 192.4 117.3 54.3 132.4 141.4 Kemerovo Oblast 935.1 990.5 1,053.1 1,124.5 1,206.0 676.9 715.8 759.6 809.3 857.8 614.1 374.6 173.3 422.5 451.4 Novosibirsk Oblast 73.8 78.2 83.1 88.7 95.2 53.4 56.5 60.0 63.9 67.7 48.5 29.6 13.7 33.3 35.6 Omsk Oblast 224.2 237.5 252.5 269.6 289.2 162.3 171.6 182.1 194.0 205.7 147.2 89.8 41.6 101.3 108.2 Тоmsk Oblast 536.8 568.6 604.6 645.5 692.4 388.6 410.9 436.1 464.6 492.4 352.5 215.0 99.5 242.6 259.2 Far East Federal District 1,726.6 1,829.0 1,944.6 2,076.3 2,226.9 1,249.8 1,321.8 1,402.6 1,494.3 1,583.9 1,133.9 691.6 320.1 780.2 833.6 Republic of Sakha (Yakutia) 633.5 671.1 713.5 761.8 817.1 458.6 485.0 514.6 548.3 581.1 416.0 253.8 117.4 286.3 305.9 Kamchatsky Krai 176.5 187.0 198.8 212.3 227.7 127.8 135.1 143.4 152.8 161.9 115.9 70.7 32.7 79.8 85.2 Primorsky Krai 370.4 392.3 417.1 445.4 477.7 268.1 283.5 300.9 320.6 339.8 243.2 148.4 68.7 167.4 178.8 Khabarovsk Krai 59.3 62.8 66.8 71.3 76.5 42.9 45.4 48.2 51.3 54.4 38.9 23.8 11.0 26.8 28.6 Amurskaya Oblast 80.5 85.3 90.7 96.9 103.9 58.3 61.7 65.4 69.7 73.9 52.9 32.3 14.9 36.4 38.9 Magadan Oblast 55.7 59.0 62.8 67.0 71.9 40.3 42.7 45.3 48.2 51.1 36.6 22.3 10.3 25.2 26.9 Sakhalin Oblast 205.8 218.0 231.8 247.5 265.4 149.0 157.5 167.2 178.1 188.8 135.1 82.4 38.1 93.0 99.4 Jewish autonomous Oblast 97.1 102.9 109.4 116.8 125.3 70.3 74.4 78.9 84.1 89.1 63.8 38.9 18.0 43.9 46.9 Chukotka autonomous okrug/district 47.7 50.5 53.7 57.3 61.5 34.5 36.5 38.7 41.3 43.7 31.3 19.1 8.8 21.5 23.0

The Institute for Urban Economics (IUE) 147 Center for Energy Efficiency (CENEf) Housing Initiative for Eastern Europe (IWO) Institute Byvania (The Institute of Housing)

Russian Urban Housing Energy Efficiency Programme – Model Development Analyse the current state of the housing stock Table 4 Evaluation of expenditures on capital repairs, by subjects of the Russian Federation, million rubles (in prices for respective years) Scenario 1 («Sluggish») Scenario 2 («Improvement») Scenario 3 («European») Regions 2015 2020 2025 2030 2035 2015 2020 2025 2030 2035 2015 2020 2025 2030 2035 Russian 139,687. 183,218. 223,098. 267,575. 322,025. 393,398. 626,542. 771,775. 924,984. 1,112,427. 349,687. 916,331. 1,190,292. 1,426,583. 1,715,672. Federation 9 0 1 5 8 9 7 7 4 9 9 1 6 0 8 Central Federal 115,982. 141,688. 225,659. 277,967. 333,147. 125,945. 330,030. 50,310.8 65,988.8 80,352.2 96,371.5 400,658.2 428,702.4 513,806.1 617,926.3 District 6 7 1 0 6 5 9 Belgorod Oblast 1,121.6 1,471.1 1,791.3 2,148.4 2,585.6 3,158.7 5,030.7 6,196.8 7,426.9 8,932.0 2,807.7 7,357.5 9,557.2 11,454.4 13,775.6 Bryansk Oblast 755.3 990.7 1,206.3 1,446.8 1,741.2 2,127.1 3,387.7 4,173.0 5,001.4 6,014.9 1,890.8 4,954.6 6,435.9 7,713.5 9,276.6 Vladimir Oblast 1,092.5 1,433.0 1,744.9 2,092.7 2,518.6 3,076.8 4,900.2 6,036.1 7,234.4 8,700.4 2,734.9 7,166.7 9,309.4 11,157.4 13,418.4 Voronezh Oblast 1,186.3 1,556.0 1,894.6 2,272.3 2,734.8 3,340.9 5,320.8 6,554.2 7,855.3 9,447.1 2,969.7 7,781.8 10,108.4 12,115.1 14,570.1 Ivanovo Oblast 841.2 1,103.4 1,343.5 1,611.4 1,939.3 2,369.1 3,773.1 4,647.7 5,570.4 6,699.2 2,105.9 5,518.3 7.168.1 8,591.1 10,332.0 Kaluga Oblast 502.2 658.7 802.1 962.0 1,157.8 1,414.4 2,252.6 2,774.8 3,325.6 3,999.6 1,257.2 3,294.5 4,279.5 5,129.0 6,168.4 Kostroma Oblast 421.9 553.4 673.8 808.2 972.6 1,188.2 1,892.4 2,331.1 2,793.8 3,360.0 1,056.2 2,767.7 3,595.1 4,308.8 5,182.0 Kursk Oblast 925.1 1,213.3 1,477.4 1,772.0 2,132.6 2,605.3 4,149.2 5,111.0 6,125.6 7,367.0 2,315.8 6,068.3 7,882.6 9,447.4 11,361.9 Lipetsk Oblast 833.0 1,092.6 1,330.4 1,595.7 1,920.4 2,346.0 3,736.3 4,602.4 5,516.1 6,633.9 2,085.3 5,464.5 7,098.2 8,507.3 10,231.3 Moscow Oblast 3,899.5 5,114.6 6,227.9 7,469.5 8,989.6 10,982.0 17,490.3 21,544.6 25,821.5 31,054.1 9,761.8 25,580.0 33,227.8 39,824.0 47,894.1 Oryol Oblast 507.4 665.5 810.3 971.9 1,169.6 1,428.9 2,275.7 2,803.2 3,359.7 4,040.5 1,270.1 3,328.3 4,323.3 5,181.6 6,231.6 Ryazan Oblast 869.7 1,140.7 1,389.0 1,665.9 2,004.9 2,449.2 3,900.8 4,805.0 5,758.8 6,925.8 2,177.1 5,704.9 7,410.6 8,881.7 10,681.5 Smolensk Oblast 649.1 851.4 1,036.7 1,243.4 1,496.4 1,828.1 2,911.5 3,586.4 4,298.3 5,169.4 1,625.0 4,258.1 5,531.2 6,629.2 7,972.6 Tambov Oblast 961.3 1,260.8 1,535.3 1,841.4 2,216.1 2,707.2 4,311.7 5,311.1 6,365.4 7,655.4 2,406.4 6,305.9 8,191.2 9,817.3 11,806.7 Tver Oblast 1,230.7 1,614.3 1,965.6 2,357.5 2,837.3 3,466.1 5,520.2 6,799.8 8,149.7 9,801.2 3,081.0 8,073.5 10,487.2 12,569.1 15,116.2 Tula Oblast 624.5 819.1 997.4 1,196.3 1,439.7 1,758.8 2,801.1 3,450.4 4,135.4 4,973.4 1,563.4 4,096.7 5,321.5 6,377.9 7,670.4 Yaroslavl Oblast 1,163.3 1,525.8 1,857.9 2,228.3 2,681.7 3,276.1 5,217.6 6,427.0 7,702.9 9,263.8 2,912.1 7,630.8 9,912.3 11,880.0 14,287.4 146,787. 180,812. 216,706. 214,679. City of Moscow 32,726.2 42,924.5 52,267.6 62,687.8 75,444.5 92,165.9 260,620.7 81,925.2 278,862.9 334,221.3 401,949.6 0 4 3 0 North-West 122,511. 146,831. 145,457. 22,173.9 29,083.9 35,414.4 42,474.7 51,118.1 62,447.8 99,456.9 176,585.9 55,509.2 188,946.1 226,454.7 272,344.5 Federal District 1 3 7 Republic of 271.4 355.9 433.4 519.8 625.6 764.3 1,217.2 1,499.3 1,797.0 2,161.1 679.3 1,780.2 2,312.4 2,771.5 3,333.1 Karelia Republic of Komi 510.5 669.6 815.4 978.0 1,177.0 1,437.8 2,289.9 2,820.7 3,380.7 4,065.8 1,278.1 3,349.1 4,350.4 5,214.0 6,270.5 Arkhangelsk 934.8 1,226.1 1,493.0 1,790.7 2,155.1 2,632.7 4,192.9 5,164.9 6,190.2 7,444.6 2,340.2 6,132.3 7,965.7 9,547.0 11,481.6 Oblast Arkhangelsk Oblast ( exclusive 648.3 850.4 1035.5 1,241.9 1,494.6 1,825.9 2,908.0 3,582.1 4,293.2 5,163.2 1,623.0 4,253.0 5,524.6 6,621.3 7,963.0 of the autonomous okrug/district) Nenets autonomous 286.5 375.8 457.5 548.8 660.4 806.8 1,284.9 1,582.8 1,897.0 2,281.4 717.2 1,879.3 2,441.1 2,925.7 3,518.6 okrug/district Vologda Oblast 1,100.0 1,442.8 1,756.9 2,107.1 2,535.9 3,098.0 4,934.0 6,077.7 7,284.2 8,760.3 2,753.8 7,216.0 9,373.5 11,234.2 13,510.8 Kaliningrad 642.3 842.5 1,025.9 1,230.4 1,480.8 1,809.0 2,881.1 3,549.0 4,253.5 5,115.5 1,608.0 4,213.7 5,473.5 6,560.1 7,889.4 Oblast Leningrad Oblast 1,542.6 2,023.2 2,463.6 2,954.8 3,556.1 4,344.2 6,918.8 8,522.6 10,214.5 12,284.4 3,861.5 10,118.9 13,144.2 15,753.5 18,945.9 The Institute for Urban Economics (IUE) 148 Center for Energy Efficiency (CENEf) Housing Initiative for Eastern Europe (IWO) Institute Byvania (The Institute of Housing)

Russian Urban Housing Energy Efficiency Programme – Model Development Analyse the current state of the housing stock Scenario 1 («Sluggish») Scenario 2 («Improvement») Scenario 3 («European») Regions 2015 2020 2025 2030 2035 2015 2020 2025 2030 2035 2015 2020 2025 2030 2035 Murmansk Oblast 1,095.6 1,437.0 1,749.7 2,098.6 2,525.6 3,085.4 4,913.9 6,053.0 7,254.6 8,724.7 2,742.6 7,186.7 9,335.4 11,188.6 13,455.9 Novgorod Oblast 463.2 607.5 739.7 887.2 1,067.7 1,304.4 2,077.4 2,558.9 3,066.9 3,688.4 1,159.4 3,038.2 3,946.6 4,730.0 5,688.6 Pskov Oblast 487.8 639.9 779.1 934.5 1,124.6 1,373.9 2,188.1 2,695.4 3,230.4 3,885.0 1,221.3 3,200.2 4,157.0 4,982.2 5,991.8 City of 100,159. 15,125.7 19,839.3 24,157.6 28,973.7 34,869.7 42,598.1 67,843.4 83,569.6 120,456.2 37,865.0 99,222.4 128,887.5 154,473.6 185,776.9 St.Petersburg 4 South Federal 6,820.6 8,946.1 10,893.3 13,065.0 15,723.7 19,208.7 30,592.5 37,683.9 45,164.7 54,317.1 17,074.4 44,742.2 58,119.0 69,656.5 83,772.0 District Republic of 210.3 275.9 335.9 402.9 484.9 592.3 943.4 1,162.1 1,392.8 1,675.0 526.5 1,379.7 1,792.2 2,148.0 2,583.3 Adygeya Republic of 33.7 44.2 53.8 64.5 77.6 94.8 151.0 186.0 222.9 268.1 84.3 220.8 286.8 343.8 413.4 Kalmykia Krasnodar Krai 2,124.8 2,787.0 3,393.6 4,070.1 4,898.4 5,984.1 9,530.5 11,739.6 14,070.1 16,921.4 5,319.2 13,938.5 18,105.8 21,700.0 26,097.4 Astrakhan Oblast 627.1 822.5 1,001.5 1,201.2 1,445.6 1,766.0 2,812.6 3,464.6 4,152.4 4,993.8 1,569.8 4,113.5 5,343.4 6,404.1 7,701.9 Volgograd Oblast 1,210.5 1,587.7 1,933.3 2,318.7 2,790.6 3,409.1 5,429.4 6,687.9 8,015.6 9,639.9 3,030.3 7,940.6 10,314.7 12,362.3 14,867.4 Rostov Oblast 2,614.2 3,428.9 4,175.2 5,007.6 6,026.7 7,362.4 11,725.7 14,443.7 17,311.0 20,818.9 6,544.4 17,149.0 22,276.2 26,698.3 32,108.6 North Caucasus 3,098.9 4,064.6 4,949.3 5,936.1 7,144.0 8,727.4 13,899.6 17,121.6 20,520.4 24,678.8 7,757.7 20,328.5 26,406.2 31,648.2 38,061.6 Federal District Republic of 876.6 1,149.7 1,400.0 1,679.1 2,020.7 2,468.6 3,931.6 4,842.9 5,804.3 6,980.6 2,194.3 5,750.0 7,469.2 8,951.9 10,766.0 Dagestan Republic of 4.3 5.6 6.8 8.2 9.8 12.0 19.1 23.5 28.2 33.9 10.7 27.9 36.3 43.5 52.3 Ingushetia Republic of Kabardino- 281.8 369.6 450.0 539.7 649.5 793.5 1,263.7 1,556.7 1,865.7 2,243.8 705.3 1,848.3 2,400.8 2,877.4 3,460.5 Balkaria Republic of Karachayevo- 132.1 173.2 210.9 253.0 304.5 372.0 592.4 729.7 874.6 1,051.8 330.6 866.4 1,125.4 1,348.8 1,622.2 Cherkessia Republic of North 196.3 257.4 313.5 376.0 452.5 552.8 880.3 1,084.4 1,299.7 1,563.0 491.3 1,287.5 1,672.4 2,004.4 2,410.6 Ossetia-Alania Republic of 35.1 46.0 56.0 67.2 80.9 98.8 157.4 193.8 232.3 279.4 87.8 230.1 298.9 358.3 430.9 Chechnya Stavropol Krai 1,572.9 2,063.1 2,512.2 3,013.0 3,626.1 4,429.8 7,055.1 8,690.5 10,415.6 12,526.3 3,937.6 10,318.2 13,403.1 16,063.8 19,319.1 Volga Federal 109,777. 135,224. 162,068. 160,552. 24,475.0 32,101.9 39,089.4 46,882.4 56,422.7 68,928.1 194,910.4 61,269.4 208,553.3 249,954.1 300,606.1 District 6 2 1 0 Republic of 4,254.6 5,580.5 6,795.1 8,149.8 9,808.3 11,982.2 19,083.3 23,506.8 28,173.3 33,882.4 10,650.8 27,909.7 36,254.0 43,451.0 52,256.1 Bashkortostan Republic of Marii 517.8 679.2 827.0 991.9 1,193.8 1,458.4 2,322.6 2,861.0 3,429.0 4,123.8 1,296.3 3,396.9 4,412.5 5,288.4 6,360.1 El Republic of 741.4 972.5 1,184.2 1,420.3 1,709.3 2,088.1 3,325.6 4,096.5 4,909.7 5,904.6 1,856.1 4,863.8 6,317.9 7,572.1 9,106.6 Mordovia Republic of 6,834.2 8,963.9 10,915.0 13,091.1 15,755.1 19,247.0 30,653.5 37,759.0 45,254.7 54,425.4 17,108.4 44,831.4 58,234.9 69,795.4 83,939.1 Tatarstan Republic of 439.1 575.9 701.3 841.1 1,012.3 1,236.6 1,969.5 2,426.0 2,907.6 3,496.9 1,099.2 2,880.4 3,741.6 4,484.4 5,393.1 The Institute for Urban Economics (IUE) 149 Center for Energy Efficiency (CENEf) Housing Initiative for Eastern Europe (IWO) Institute Byvania (The Institute of Housing)

Russian Urban Housing Energy Efficiency Programme – Model Development Analyse the current state of the housing stock Scenario 1 («Sluggish») Scenario 2 («Improvement») Scenario 3 («European») Regions 2015 2020 2025 2030 2035 2015 2020 2025 2030 2035 2015 2020 2025 2030 2035 Udmurtia Republic of 981.3 1,287.1 1,567.2 1,879.6 2,262.1 2,763.5 4,401.3 5,421.5 6,497.8 7,814.5 2,456.5 6,437.0 8,361.5 10,021.4 12,052.1 Chuvashiya Perm Krai 1,987.6 2,607.0 3,174.4 3,807.3 4,582.0 5,597.6 8,914.9 10,981.4 13,161.3 15,828.4 4,975.6 13,038.2 16,936.3 20,298.4 24,411.8 Kirov Oblast 515.1 675.6 822.7 986.7 1,187.5 1,450.7 2,310.5 2,846.0 3,411.0 4,102.3 1,289.5 3,379.1 4,389.4 5,260.8 6,326.8 Nizhniy Novgorod 2,202.8 2,889.2 3,518.1 4,219.5 5,078.2 6,203.7 9,880.2 12,170.4 14,586.5 17,542.3 5,514.4 14,450.0 18,770.2 22,496.4 27,055.1 Oblast Orenburg Oblast 1,087.7 1,426.6 1,737.2 2,083.5 2,507.5 3,063.2 4,878.6 6,009.5 7,202.5 8,662.0 2,722.9 7,135.1 9,268.4 11,108.3 13,359.3 Penza Oblast 856.0 1,122.7 1,367.1 1,639.7 1,973.3 2,410.7 3,839.3 4,729.3 5,668.1 6,816.8 2,142.8 5,615.1 7,293.9 8,741.9 10,513.3 Samara Oblast 1,649.1 2,162.9 2,633.7 3,158.8 3,801.6 4,644.2 7,396.5 9,111.0 10,919.7 13,132.5 4,128.2 10,817.5 14,051.7 16,841.2 20,254.0 Saratov Oblast 1,721.4 2,257.8 2,749.2 3,297.3 3,968.3 4,847.8 7,720.8 9,510.5 11,398.5 13,708.4 4,309.2 11,291.9 14,667.9 17,579.7 21,142.1 Ulyanovsk Oblast 686.9 900.9 1,097.0 1,315.7 1,583.5 1,934.4 3,080.9 3,795.0 4,548.4 5,470.1 1,719.5 4,505.8 5,853.0 7,014.9 8,436.4 Urals Federal 13,639.2 17,889.4 21,783.3 26,126.1 31,442.7 38,411.5 61,175.8 75,356.3 90,315.7 108,617.7 34,143.6 89,470.8 116,220.4 139,291.9 167,518.7 District Kurgan Oblast 271.0 355.5 432.9 519.2 624.8 763.3 1,215.6 1,497.4 1,794.7 2,158.4 678.5 1,777.9 2,309.4 2,767.9 3,328.8 Sverdlovskaya 3,773.3 4,949.2 6,026.4 7,227.9 8,698.7 10,626.7 16,924.5 20,847.6 24,986.1 30,049.4 9,445.9 24,752.4 32,152.7 38,535.5 46,344.6 Oblast Tyumen Oblast 7,040.8 9,234.8 11,244.9 13,486.8 16,231.3 19,828.7 31,580.0 38,900.3 46,622.5 56,070.3 17,625.5 46,186.4 59,995.0 71,904.9 86,476.1 Chelyabinsk 2,554.0 3,349.9 4,079.1 4,892.3 5,887.9 7,192.9 11,455.7 14,111.1 16,912.4 20,339.6 6,393.7 16,754.1 21,763.2 26,083.6 31,369.3 Oblast Khanty- Mansiisk 3,072.9 4,030.5 4,907.8 5,886.3 7,084.1 8,654.2 13,783.0 16,977.9 20,348.3 24,471.8 7,692.6 20,158.0 26,184.7 31,382.8 37,742.3 autonomous okrug/district Yamalo- Nenetsky 1,442.7 1,892.3 2,304.2 2,763.6 3,326.0 4,063.2 6,471.2 7,971.2 9,553.6 11,489.5 3,611.7 9,464.2 12,293.8 14,734.2 17,720.1 autonomous okrug/district Tyumen Oblast (exclusive of Khanty- Mansiisk and Yamalo- 2,525.1 3,312.0 4,032.9 4,836.9 5,821.2 7,111.3 11,325.8 13,951.1 16,720.7 20,109.0 6,321.2 16,564.2 21,516.5 25,787.9 31,013.7 Nenetsky autonomous okrugs/districts ) Siberia Federal 13,800.8 18,101.4 22,041.4 26,435.7 31,815.2 38,866.7 61,900.6 76,249.2 91,385.8 109,904.6 34,548.1 90,530.9 117,597.5 140,942.3 169,503.5 District Republic of Altai 175.3 230.0 280.0 335.9 404.2 493.8 786.5 968.8 1,161.1 1,396.4 438.9 1,150.2 1,494.1 1,790.7 2,153.6 Republic of 360.4 472.7 575.6 690.4 830.9 1,015.0 1,616.5 1,991.2 2,386.5 2,870.2 902.2 2,364.2 3,071.0 3,680.7 4,426.6 Buryatiya Republic of Tyva 84.4 110.7 134.8 161.6 194.5 237.7 378.5 466.2 558.8 672.0 211.3 553.6 719.1 861.8 1,036.5 The Institute for Urban Economics (IUE) 150 Center for Energy Efficiency (CENEf) Housing Initiative for Eastern Europe (IWO) Institute Byvania (The Institute of Housing)

Russian Urban Housing Energy Efficiency Programme – Model Development Analyse the current state of the housing stock Scenario 1 («Sluggish») Scenario 2 («Improvement») Scenario 3 («European») Regions 2015 2020 2025 2030 2035 2015 2020 2025 2030 2035 2015 2020 2025 2030 2035 Republic of 359.7 471.8 574.5 689.0 829.2 1,013.0 1,613.4 1,987.4 2,381.9 2,864.6 900.5 2,359.6 3,065.1 3,673.6 4,418.0 Khakasia Altai Krai 1,785.3 2,341.6 2,851.3 3,419.8 4,115.7 5,027.9 8,007.6 9,863.7 11,821.8 14,217.5 4,469.2 11,711.3 15,212.6 18,232.6 21,927.3 Zabaikalsky Krai 998.9 1,310.2 1,595.4 1,913.4 2,302.8 2,813.2 4,480.4 5,519.0 6,614.6 7,955.0 2,500.6 6,552.7 8,511.8 10,201.5 12,268.8 Krasnoyarsk Krai 2,498.2 3,276.7 3,989.9 4,785.3 5,759.1 7,035.5 11,205.1 13,802.4 16,542.4 19,894.6 6,253.8 16,387.6 21,287.1 25,513.0 30,683.0 Irkutsk Oblast 1,059.1 1,389.2 1,691.6 2,028.8 2,441.7 2,982.8 4,750.6 5,851.7 7,013.4 8,434.6 2,651.4 6,947.8 9,025.0 10,816.6 13,008.6 Kemerovo Oblast 2,717.7 3,564.6 4,340.5 5,205.8 6,265.1 7,653.7 12,189.6 15,015.2 17,995.9 21,642.7 6,803.3 17,827.6 23,157.6 27,754.7 33,379.1 Novosibirsk 1,891.6 2,481.0 3,021.1 3,623.3 4,360.7 5,327.2 8,484.2 10,450.9 12,525.6 15,063.8 4,735.3 12,408.4 16,118.2 19,317.9 23,232.6 Oblast Omsk Oblast 1,347.4 1,767.3 2,151.9 2,581.0 3,106.2 3,794.6 6,043.5 7,444.3 8,922.1 10,730.2 3,373.0 8,838.7 11,481.2 13,760.4 16,548.9 Тоmsk Oblast 522.8 685.7 834.9 1,001.4 1,205.1 1,472.2 2,344.7 2,888.3 3,461.6 4,163.1 1,308.7 3,429.2 4,454.5 5,338.8 6,420.6 Far East Federal 5,368.8 7,041.8 8,574.6 10,284.0 12,376.7 15,119.9 24,080.5 29,662.4 35,550.9 42,755.1 13,439.9 35,218.3 45,747.7 54,829.3 65,940.2 District Republic of Sakha 1,123.3 1,473.4 1,794.1 2,151.8 2,589.7 3,163.6 5,038.5 6,206.4 7,438.5 8,945.9 2,812.1 7,368.9 9,572.1 11,472.3 13,797.1 (Yakutia) Kamchatsky Krai 472.3 619.5 754.3 904.7 1,088.8 1,330.1 2,118.4 2,609.4 3,127.4 3,761.2 1,182.3 3,098.2 4,024.5 4,823.4 5,800.8 Primorsky Krai 1,261.5 1,654.6 2,014.7 2,416.4 2,908.1 3,552.6 5,658.1 6,969.6 8,353.2 10,045.9 3,157.9 8,275.0 10,749.1 12,882.9 15,493.6 Khabarovsk Krai 796.5 1,044.7 1,272.1 1,525.7 1,836.2 2,243.2 3,572.6 4,400.7 5,274.3 6,343.1 1,993.9 5,225.0 6,787.1 8,134.4 9,782.9 Amurskaya Oblast 497.0 651.9 793.8 952.1 1,145.9 1,399.8 2,229.4 2,746.2 3,291.3 3,958.3 1,244.3 3,260.6 4,235.4 5,076.2 6,104.8 Magadan Oblast 148.8 195.2 237.7 285.1 343.1 419.2 667.6 822.3 985.6 1,185.3 372.6 976.4 1,268.3 1,520.0 1,828.1 Sakhalin Oblast 446.0 585.0 712.4 854.4 1,028.2 1,256.1 2,000.6 2,464.3 2,953.5 3,552.0 1,116.6 2,925.9 3,800.7 4,555.1 5,478.2 Jewish autonomous 217.1 284.7 346.7 415.8 500.4 611.3 973.7 1,199.3 1,437.4 1,728.7 543.4 1,424.0 1,849.7 2,216.9 2,666.2 Oblast Chukotka autonomous 406.2 532.7 648.7 778.0 936.3 1,143.9 1,821.8 2,244.1 2,689.6 3,234.6 1,016.8 2,664.4 3,461.0 4,148.0 4,988.6 okrug/district

The Institute for Urban Economics (IUE) 151 Center for Energy Efficiency (CENEf) Housing Initiative for Eastern Europe (IWO) Institute Byvania (The Institute of Housing)

The Institute for Urban Economics (IUE) Center for Energy Efficiency (CENEf) Housing Initiative for Eastern Europe (IWO) Institute Byvania (The Institute of Housing)