EBRD to fund new solid waste management facilities in Serbia
October 04, 2019 – The European Bank for Reconstruction and Development (EBRD) has agreed to provide €72.25m ($66m) to Beo Čista Energija, a special purpose vehicle (SPV) formed for the construction of new solid waste management facilities in Belgrade, Serbia.
The SPV was formed by Suez and Itochu and Marguerite Fund for the development of the facilities. The three companies entered into a 25-year public-private partnership (PPP) with the City of Belgrade in 2017 to develop the first large-scale environmental infrastructure PPP investment in the Western Balkans region.
EBRD, which agreed to contribute €72.25m ($66m) loan from its own account, has also arranged a syndicated loan of €35m ($32m) for the account of participants, including International Finance Corporation (IFC) and Oesterreichische Entwicklungsbank (OeEB). The international bank will also mobilise €21m ($19m) in concessional finance funded by TaiwanICDF.
The investment will be used for the construction of an energy-from-waste (EfW) facility, a facility for construction and demolition waste (CDW), the remediation, closing and aftercare of the existing landfill, as well as the construction of a new EU-compliant landfill.
The EfW facility has been designed to generate energy from waste, contributing to the reduced dependence on coal and gas by the city and will boost the share of renewable energy.
The EfW facility will have a capacity of generating power from nearly 340,000 tonnes of household waste per year, and treat nearly 210,00 tonnes of construction and demolition waste annually.
It will replace the existing landfill in Vinča, a suburb of Belgrade. The landfill is unsanitary and has reached its maximum capacity, posing major environmental and health risks, including the pollution of the nearby River Danube.
Closing of the landfill will improve solid waste management, one of the priorities of the Serbian government and the City of Belgrade.
The new landfill is expected to serve the growing population of Belgrade and create conditions for introducing modern waste management and treatment technology in the Serbian capital city.
It will allow the city to meet its biodegradable waste landfill diversion along with the CDW recovery objectives set by the EU Waste Framework Directive.