Waste to Energy Contract for SITA & JV Partner in Poland

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Waste to Energy Contract for SITA & JV Partner in Poland

Waste to Energy Contract for SITA & JV Partner in PolandThe City of Poznań, Poland has declared SITA Zielona Energia - a joint venture between environmental investment fund, Marguerite Fund and waste management company SITA Polska - as preferred bidder in the first and largest Public Private Partnership (PPP) tender in  Poland's waste to energy sector.

Under the project, SITA Zielona Energia – a subsidiary of SUEZ Environnement (Paris: SEV, Brussels: SEVB) - will design, build, finance, and operate a 210,000 tonne per year municipal waste incineration plant.

According to Marguerite, local authorities selected SITA Zielona Energia following an 18 month tendering process organised by the City of Poznań and will procure the facility in the form of an availability based Public Private Partnership (PPP) contract, including a 25-year operating period following construction.

The facility is planned to start operation in 2016 and allow the City of Poznań to implement its waste management plan.

Marguerite explained that under the PPP contract, SITA Zielona Energia will deliver a modern waste to energy facility located on a site provided by the City of Poznań in the neighbouring Karolin district.

The cost of the plant is estimated to be PLN 725 million ($233 million) which will be fully financed by shareholders of SITA Zielona Energia and a consortium of three banks - Pekao SA (UniCredit Group), PKO BP and Bank Gospodarstwa Krajowego which will provide long term non-recourse project finance debt.

The plant is expected to be commissioned in 2016 and will reduce the area's reliance on local landfills in accordance with the EU Landfill Directive and Poland's Waste Law.



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