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The Marguerite Fund and SITA sign first energy-from-waste PPP contract in Poland with the City of Poznań
Luxembourg, April 8, 2013 – Today, SITA Zielona Energia, a joint venture between Marguerite Fund and SITA Polska, signed an Agreement with the City of Poznań for the implementation of a project which covers financing, design, construction and operation of a municipal waste incineration plant. The facility is planned to start operation in 2016 and will allow the City of Poznań to implement its waste management plan.
After a nearly 2-year tendering process organized by the City of Poznań, SITA Zielona Energia’s proposal was selected to design, build, finance and operate an energy-from-waste facility with a capacity of 210,000 tons per year. The plant has been procured in the form of an availability based Public Private Partnership (PPP) contract including a 25-year operating period following construction.
Under the PPP contract, SITA Zielona Energia will deliver a modern energy-from-waste facility on a plot of land provided by the City of Poznań. The cost of the plant is estimated to be PLN 725 million. It will be fully financed by shareholders of SITA Zielona Energia and a consortium of 3 banks – Pekao SA (UniCredit Group), PKO BP and Bank Gospodarstwa Krajowego. According to the agreement, the City can replace a part of the private funding with a subsidy from the EU Cohesion Fund, which would reduce the cost of the project to the City.
The plant is expected to be commissioned in 2016 and would reduce the disposal of waste in local landfills, in accordance with the EU Landfill Directive and Poland’s Waste Law.
Marguerite Waste Polska, an affiliate of Marguerite Fund, and SITA Polska, part of SUEZ ENVIRONNEMENT, joined forces to form SITA Zielona Energia, a joint venture, to bid for the first PPP project in waste management in Poland.
SITA Zielona Energia will work with a consortium of companies comprising Hitachi Zosen Inova, a world leader in energy-from-waste, and Hochtief, one of the largest construction companies in the world, to build the facility.