Belgrade WtE

active

 The project consists of the following components: (i)  Energy from Waste (EfW) Facility processing up to 340,000 metric tons per annum (tpa) of municipal solid waste (MSW) generating up to 29 MWe of electricity to be supplied to the grid and up to 56 MWth of heat to the local district heating company; (ii) a 3.5 MW Landfill Gas-to-Energy (LFG) Facility; (iv) a new sanitary landfill designed to dispose of up to 170,000 tpa of residual municipal waste; (iii) a Leachate Treatment Plant (LTP) for treatment of all effluents and leachate generated on site; and (iv) a Construction and Demolition Waste (CDW) Facility (crusher, sorting platform and landfill) to treat approximately 200,000 tpa of such waste. As part of the project, the company will also proceed with the closure (or remediation as defined in the PPP concession agreement and the ESIA) of the existing Vinca dump site. The project will be delivered as Design-Build-Finance-Operate-Transfer (DBFOT) scheme under a Public Private Partnership (PPP) contract awarded by the City of Belgrade (the City) to the company with a 25-year concession for operations and maintenance (O&M) of the project facilities from the date of completion of EfW and LFG facilities. Total project cost is expected to be EUR 339 million. Construction is expected to last 36 months. IFC is considering an A loan of c. EUR 70 million, a B loan of c. EUR 25 million, a parallel loan of c. EUR 35 million, and a Blended Finance loan of EUR 20 million to Beo Cista Energija d.o.o (“BCE” or the “Company”), a special purpose vehicle (SPV) incorporated in Serbia and established with the sole purpose of constructing, operating and financing the Belgrade Energy from Waste (EfW) Project (the ‘project’).  The company is owned by Suez Groupe (France) (40%), Itochu Corporation (Japan) (40%) and Marguerite Fund II (France) (20%). a pan European infrastructure fund, led by Suez and Itochu (altogether the “Sponsors”). The PPP concession agreement will provide the company with the exclusive right to treat the residual municipal waste generated by the City of Belgrade and 13 other municipalities in Belgrade Metro Region under the City’s waste management responsibility. The power produced by the project will be sold to the national electricity utility power company, Elektroprovreda Srbije, and the heat will be sold to the municipal district heating company, Beogradske Elektrane.  As part of the PPP contract, the company will fund and construct two transmission lines to connect the project to the national grid: (i) a high voltage (110 kV, 5 km) transmission line for export of the electricity; and (ii) a medium voltage (35 kV, 3.5 km) transmission line for import of the electricity. The land required to build these transmission lines will be acquired by the City and the operation responsibility will be of the Serbian National Utility Company (TSO). The company’s facility will be connected and will deliver heat to the district heating system through an 8km hot water pipeline that will be funded, permitted and constructed by the City. The water pipeline is an associated facility per IFC PS 1 definition.  Constructions Industrielles de la Mediterranée is the Engineering, Procurement and Construction (EPC) contractor for design, building, testing and commissioning of the EfW facility. Energo Projekt is EPC contractor for (i) construction of the new sanitary landfill and CDW platforms; (ii) civil, piping and electrical works of EfW facilities; and (iii) closure of the existing dumpsite. Suez O&M Company will be the Operation and Maintenance (O&M) contractor of the project and Suez will also be responsible for constructing the LTP and LFG facilities (Teknoxgroup is EPC contractor for electromechanical work of LFG facilities). The project site is located in the eastern part of the City of Belgrade, about 12 km from the city center, at the intersection of three municipalities (Grocka, Palilula and Zvezdara) and at about 1.5 km distance from the Danube River. The project site will be about 100 hectares (ha) and will consist of 60 ha for the new facilities and 40 ha of existing Vinca dumpsite (40 ha) that will be closed. The closest community settlement, Veliko Selo (with c. 1 594 population), is about 1.7 km from the project site. The existing Vinca dumpsite   is operated by Gradska cistoca Beograd, the Public Utility Company (PUC), owned by the City. Presently, The dumpsite accepts domestic waste, construction and demolition waste, healthcare waste and waste tires. PUC will continue to operate the existing dumpsite during the construction phase of the project.  he dumpsite lacks any lining system, leachate collection and treatment, and there is neither biogas collection system nor systematic waste sorting facility. Given the lack of adequate drainage and the condition of the site, risks of instability of the waste dump are significant, particularly during or after significant precipitations. A dam or retaining structure will be designed and constructed by the City as an agreed urgent measure required for the stabilization of the body of the dumpsite, ahead of handover to the company. The project will have a positive impact associated with the closure of Vinca dumpsite, which creates significant environmental and health risks and will be replaced by an engineered sanitary landfill.