RDIF attracts Renaissance Construction to environmentally friendly waste disposal project
Press release, 13.02.2019
Sochi, February 13, 2019 – The Russian Direct Investment Fund (RDIF), Russia’s sovereign wealth fund, announces that it has attracted an investment by Renaissance Construction (part of the Turkish Rönesans Holding) in the “Waste to energy” project operated by RT-Invest (part of Rostec State Corporation). The agreement was announced today on the sidelines of the Russian Investment Forum in Sochi.
The “Waste to energy” project involves the construction of four plants for the environmentally friendly thermal processing of waste into electricity in the Moscow region. The total processing capacity of the plants in the Moscow Region will amount to 2.8 million tonnes of municipal solid waste (MSW) per year, which will generate about 280 MW of electricity annually. The commissioning of the plants is planned for 2021-2022. Implementation of the project will reduce the share of MSW disposed through landfill in the Moscow region by 30%.
The finalization of the structure for the company’s share capital in the near future, taking into account the funds from RDIF and its co-investors, will allow the project to begin attracting loan financing and start its implementation.
Kirill Dmitriev, CEO of the Russian Direct Investment Fund (RDIF), noted:
“The expansion of our group of international investors will have a positive impact on the implementation of the “Waste to energy” project – particularly given Ronesans Holding’s extensive experience in alternative energy in infrastructure construction. The expertise of Renaissance Construction and other participants of project will effectively solve the problem of recycling waste and turn it into an alternative energy source.”
Avni Akvardar, Chairman of the Board of Directors of Renaissance Construction, said:
“We highly appreciate our long-term cooperation with our old partner - Russian Direct Investment Fund (RDIF) which has now achieved a new level and we are thankful to the Fund for the possibility to use our experience, know-how and expertise for realization of the innovative “Energy from Waste” environmental project in Moscow region. Professionalism and high qualification of our team, we are sure, will enable us to successfully solve the set up tasks, achieve good results and build a basis for future development of that project. Participation in this project reflects the conformity of company's goals to modern technological trends and development areas of Russian economy. It is important for us to strengthen competitiveness, open new market niches with great growth potential. Russia has been and remains a priority market for Holding Renaissance. We continue to work with our partners, increase turnover and invest in innovations and ambitious projects. ”
Andrey Shipelov, CEO of RT-Invest, said:
“The need to solve environmental problems has driven international business interest in innovative environmental projects and contributed to the growth of Russia’s waste management industry. Thanks to our partner, RDIF, Renaissance Holdings, which has extensive experience in the construction industry, is now one of the project’s investors. We appreciate the confidence of the international business community in our company and are confident that this will allow us to fully implement the “Energy from Waste” project in accordance with the highest international standards and achieve our main goal—zero waste to landfill in Russia.”
Russian Direct Investment Fund (RDIF) is Russia's sovereign wealth fund established in 2011 to make equity co-investments, primarily in Russia, alongside reputable international financial and strategic investors. RDIF acts as a catalyst for direct investment in the Russian economy. RDIF’s management company is based in Moscow. Currently, RDIF has experience of the successful joint implementation of more than 70 projects with foreign partners totaling more than 1.4 trillion rubles and covering 95% of the regions of the Russian Federation. RDIF portfolio companies employ more than 700,000 people, and generate revenues which equate to more than 5% of Russia’s GDP. RDIF established joint strategic partnerships with leading international co-investors from more than 15 countries that total more than 40 billion dollars. Further information can be found at www.rdif.ru
Established in St Petersburg, Russia in 1993, Renaissance Construction is currently a part of Rönesans Holding operating in the roles of as main contractor and investor in 23 countries around the globe. The Holding is engaged in the main fields of design and construction, real estate development, energy, industrial facilities, and healthcare. Ranked 36th in ENR’s list of the world’s largest construction companies, Rönesans Holding is also the 9th largest contracting company in Europe. With a global revenue of $4.2 billion and an asset value of $8.1 billion as of the end of 2017, the Holding aims to rank among the world’s top 10 largest construction companies in the medium term. The estimated amount of investment in Russia is 80 billion rubles. Further information can be found at www.rencons.com
The RT-Invest Group was established in 2012 with support from Rostec State Corporation to facilitate direct investments in advanced industrial technologies in Russia and abroad, including waste management, information systems, transport telematics and the production of building materials.
The company is working to create an integrated waste management system in Russia based on domestic technologies and the experience of countries leading the way in environmental performance.
For additional information contact:
Russian Direct Investment Fund
Tel: +7 495 644 34 14, ext. 2395
Mobile: +7 916 110 31 41
Andrew Leach / Maria Shiryaevskaya
Tel: +44 (0) 20 7796 4133