A market opportunity for facilities management – or a privitisation disaster waiting to happen?

March 17, 2013

For those who do not live in Ukraine, one of the inherited legacies of the USSR that still continues, is that of the Zhek and its responsibilities for maintenance of common areas in otherwise now privately owned apartment blocks.

Quite simply put, whilst the last 20 years has seen a massive move to private ownership of apartments, stairways, lifts, common entrances, lighting and general maintenance of all common use areas has remained the responsibility of the Zhek in the vast majority of apartment buildings both old and new.

Needless to say that whilst paying the monthly Zhek bill, known as the “quadplata” is supposed to insure the cleanliness and functioning of all common areas in most apartments blocks around the country – and you have no choice but to pay – the actual maintenance rarely happens, and when it does it is hardly what can be called timely.

However, it appears that this responsibility is likely to cease in 2015 if the national action plan 2010 – 2014 (also known as “Prosperous Society,  Competitive Economy, Effective State”) is to become a reality.

That will theoretically open up a huge percentage of the national housing stock to facilities management companies – with an domestic occupancy well used to paying through the nose for little to no (timely) service – and in all probability, some serious profit margins.

One has to suspect that there will be a fair few people in the RADA having their closest friends and/or family opening facilities management companies in preparation for 2015 when they will suddenly be activated.

Tomorrow – something more interesting (at least for some).  Tomorrow, for the first time in a few years, the blog is going nuclear!

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