This summary covers investments by Suez Groupe of France (Suez), Luxembourg-based MargueriteWaste Serbia S.à r.l. (“Marguerite”), and UK-based I-Environment Investments Ltd - a wholly-owned subsidiary of Itochu Corporation of Japan (Itochu) - into the project enterprise Beo Čista Energija d.o.o. incorporated in the Republic of Serbia. The proposed Project includes construction and operation of a new waste management facility with electricity and heat generation components in Belgrade, Serbia with an estimated project cost of up to €339 million (the “Project”). The guarantee holders have each applied for guarantees of up to €33.9 million, €16.95 million, and €33.9 million, respectively, for their equity investments into the Project. The guarantees will have a term of up to 20 years, providing coverage against the risks of transfer restriction, expropriation, war and civil disturbance and breach of contract.
The project is a category A under MIGA’s Policy on Environmental and Social Sustainability. Click here to view the Environmental and Social Review Summary prepared by the International Finance Corporation for their investment into the Project.
The proposed Project is expected to generate the following benefits: (i) climate change, by reducing GHG emissions; (ii) environment, by closing the existing landfill, which has been reported as having hazardous environment impacts, and diverting improperly disposed waste; (iii) public sector management, by reducing the burden on the City of Belgrade for the processing of municipal waste, thereby freeing up landfill capacity, which has been reported as limited. The Project carries also the potential for having demonstration effect, as first sizeable PPP in waste-energy in the Balkans, and for displacing fossil fuel-based electricity capacity, the majority of which is now lignite-fired.