REO invested 2.9 billion rubles in two garbage plants in the Moscow region

The Russian environmental operator signed an agreement to finance the construction of two facilities for the processing and disposal of solid municipal waste in the Moscow region - Aleksinsky quarry and KPO Neva. In July, the Supervisory Board of the REO approved the participation of PPK in financing projects in the form of the buyout of a bonded loan for a total of 2.9 billion rubles.

“The Moscow region generates the largest volume of municipal solid waste. Therefore, it is simply necessary to build large waste processing complexes here. Waste sorting complex "Aleksinsky quarry" will be able to receive 950 thousand tons of MSW per year, of which 213 thousand tons will become secondary material resources, 300 thousand tons will go for composting. KPO Neva will receive half a million tons of MSW per year, which will increase the share of waste processing by 15% (plus 500 thousand tons per year), and recycling - by 14%, or 273 thousand tons of MSW per year. Thus, the project will bring the metropolitan region closer to the indicators of the national project "Ecology", and the object itself will be able to achieve them in the first year of operation. The amount that REO will invest in two projects will amount to 2.9 billion rubles. The form of financing, just like in other investment projects that we support, will be the redemption of a bonded loan. This measure of support for us was approved by the Government in July of this year, ”said Denis Butsaev, General Director of the Russian Environmental Operator PPK.

"Aleksinsky quarry" is a complex for the processing and utilization of solid municipal waste, it will receive waste from Moscow, the Klinsky urban district and the surrounding areas. The annual volume will amount to 950 thousand tons of MSW, of which 213 thousand tons of waste (22%) will be used for secondary material resources, and 300 thousand tons (31%) for composting. Thanks to the project, the share of MSW directed to recycling in the Moscow Region will grow by 48% in 2022.

The waste sorting complex will be built in Klin near Moscow by the end of 2021. The company LLC "Kombinat" started implementing a large-scale project back in 2018. The regional government has allocated land for the facility.

To support this project, REO will redeem a bond loan in the amount of 1,300,000,000 rubles for a period of nine years at a 3% coupon rate. The total investment here will amount to 8,792,000,000 rubles. Taking into account the measures to support the REO, the level of the required gross proceeds of the company participating in the investment project will decrease, which will reduce the tariff burden on the population in the amount of 315 million rubles.

The KPO Neva complex will be built in the Solnechnogorsk urban district of the Moscow region, commissioning is scheduled for the end of 2021. The total capacity of the facility will be 500 thousand tons of MSW per year, all waste received at KPO will be processed. After that, MSW will be sent for composting - 150 thousand tons (30% of the mass of recycled waste), the line for the production of RDF fuel - 123.5 thousand tons (25%), secondary material resources - 104 thousand tons (20%). The remaining non-recyclable tailings will be sent to a modern disposal facility, also built as part of the project. Thus, in the first year of operation, KPO Neva will achieve the indicators of the national project “Ecology”, according to which less than 50% of MSW should be sent for disposal.

The total investment in this project was 7,213,000,000 rubles. The REO Supervisory Board approved the company's participation in financing the project in the form of redemption of a bonded loan in the amount of 1,607,251,000 rubles for a period of 8 years and a coupon rate of 3% per annum. The decrease in the required gross revenue, taking into account the measures to support the PPK REO, will amount to 388 million rubles, which will reduce the tariff burden on the population of the Moscow region. REO signed a bond purchase and sale agreement with KPO Neva LLC.

The main investor of the project was the Ecoline group of companies, the largest operator in the Moscow region for the collection, transportation, processing and placement of MSW.

The main goal of the Russian environmental operator is to provide financial support to investment projects in the field of MSW management. At the moment, a pool of projects has been formed for priority financing in 2021 for 6.1 billion rubles. 58 requests for support measures have already been received. For more information on what support measures are provided by REO and how to apply for them, read on our website in a special section on investment projects https://reo.ru/invest.

The public law company Russian Environmental Operator was established by Presidential Decree on January 14, 2019. The key task of the REO is to form an integrated system for the management of municipal solid waste (MSW) in Russia. According to the national project "Ecology", this is necessary in order to reduce the volume of MSW burial and thereby reduce the environmental burden on the population. The goal by 2030 is to sort 100% of the MSW volume and reduce by 50% MSW that is sent to landfills. Achieving such indicators is impossible without building a circular economy. Therefore, among the tasks of the REO also, on the one hand, the creation of a recycling system and the involvement of raw materials into circulation for the manufacture of new products and energy production, and on the other hand, the stimulation of investment activity in the field of waste management.

Source: https://reo.ru/