The first step of the project was analyzing current situation in housing management and maintenance and identifying potential barriers to facilitation of PPP. Cherepovets City Administration and "Analytical Center" provided necessary information and carried out a sociological survey among the residents. The results of the survey and analysis of current situation were drawn together by experts at CENEf. This analysis showed that currently citizens of Cherepovets are organized either as Associations of Buildings Owners, or Building Cooperatives, or on an upper level - Organization of Associations of Buildings Owners. However, most of the citizens lacked any kind of self-organization and all housing management and maintenance was managed by the city. A number of professional organizations were identified that were involved in the maintenance of heat- and water supply systems of public buildings (schools) and in the maintenance of heat meters in residential buildings under the World Bank Housing Divestiture Project. These were considered to be a good basis for establishment of ESCO's. CENEf also analyzed current practices of utility payments.
During the second stage of the project, experts from CENEf proposed two possible ways of cooperation between ESCO and ACSeP. The first option was named "Maintenance and Savings". Under this option, the current system of payments would not change significantly. The main change was the introduction of ACSeP and ESCO in the system but the flow of payments was not altered. Residents would still pay all their utility and housing maintenance bills to a single, municipal company "The Billing Center" which would then redistribute these payments among service providers. ESCO would act as subcontractors to MUP's and receive their income from MUP's. ACSeP would protect their own interests and realize energy savings through an agreement with ESCO and MUP. The second option was named "Payment collection and maintenance". This option required significant change of current system of payments and contracts. Billing center would be eliminated and the ESCO's would directly contract ACSeP and collect payments. This option would be consisting with the project's goal and strategy. However, after discussions between City Administration, CENEf experts, MUP's and ESCO, the first option was adopted.
At the same time, experts of "Analytical Center" identified potential community leaders in selected buildings. The "Analytical Center" started to stimulate resident's activity in terms of water and heat savings through conversations with potential leaders and also invited private companies to participate in resident's meetings.