An important pre-condition in the PPP project was the creation of ownership and trust among the residents, as this was seen as the key to a successful project. That is why most of the developments of CENEf, such as the charter of ACSeP and the proposed agreement with ESCO was introduced to residents through various channels of information, from ESCO and especially from "Analytical Center" which was viewed by many residents as an independent, trustworthy institutions.
Residents are still to realize the full potential and benefits of a partnership with the public and private sector. They do not yet see how this partnership will impact on their daily life and how it will reduce their utility expenditure and improve the quality of service. One could say that the ongoing reform makes people somewhat careful in participating in new initiatives.
Identification of ACSeP leaders in each building is also another precondition for successful project implementation. Organizations such as ACSeP need a leader that will be generally accepted and trusted by local community population. Residents however see this designation as an opportunity for corruption of the head of ACSeP.
An important pre-condition is the willingness of the City Administration to implement major changes to existing system of housing management and payments collection. The adopted "Maintenance and Savings" option however does not provide enough incentives for either ESCO's or ACSeP's to engage in a meaningful relationship. ESCO's find it inefficient to provide energy services to residents when they are not collecting payments and are working through a contract with MUP's. In other words, under this system ESCO's have contractual obligations to MUP's, which in turn has no strict contractual obligations to residents and residents pay to the Billing Center, which has no strict contractual obligations to transfer these funds to MUP, as they fall both under the City Administration. The contracts and cash flows are disconnected. In this situation it is difficult to ensure appropriate returns as existing system lacks clear contractual relationships and obligations on the part of the Billing Center, residents and MUP's. Thus, risks of non-payments or payment delays from any of the agents are high for ESCO's. The second option "Payment collection and maintenance" would be more appropriate as it would connect contracts and cash flows. However, the City Administration has not agreed yet to the implementation of this option, which would transfer the flow of cash from the Billing Center to the ESCO's.
So, an important pre-condition, allocation of risks and responsibilities and having clear contracts between different partners is not yet implemented.