European-Japanese consortium closes Serbian EfW project financing

02 October 2019 - 12:00 am UTC

A consortium of French waste operator Suez, Japan’s ITOCHU and European fund manager Marguerite have reached financial close on a PPP deal to build an energy-from -waste (EfW) plant in the Serbian capital of Belgrade.

 

Development Banks European Bank for Reconstruction and Development, the World Bank’s International Finance Corp. and Oesterreichische Entwicklungsbank will provide the project debt for the 25-year length of the PPP contract, which will see the consortium develop, finance and operate a 30 MW EfW plant capable of burning up to 500,000 tonnes of household waste per year.

 

EBRD is providing a EUR 72.25m loan to the project while arranging a syndicated loan of EUR 35m for the other participants.

 

It will also mobilise EUR 21m of concessional finance funded by TaiwanICDF.

 

IFC and Oesterreichische Entwicklungsbank will provide EUR 72.25m and EUR 35m for the project respectively.

 

Suez and Itochu were awarded the concession to deliver the plant by the City of Belgrade in September 2017 via the Beo Cista Energize SPV.

 

In November last year, European fund manager Marguerite acquired a 20% stake in the SPV, its second investment in a Central Eastern European EfW following its acquisition of shares in a plant in the Polish city of Poznan.

 

With a capex of around EUR 300m, the Belgrade EfW is the first large-scale environmental PPP infrastructure deal to close in the Western Balkans.

 

Located in the city’s Vinca region, the plant will also have a thermal heat capacity of 56 MW that will be procured by municipal heating company Beogradske Elektrane under a 25-year agreement signed in July this year.

 

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