RDIF and Urbaser announce inaugural waste management project in Russia
Moscow, December 25, 2019 – The Russian Direct Investment Fund (RDIF), Russia’s sovereign wealth fund, Sibinveststroy LLC and Urbaser, Spain’s leading municipal solid waste (MSW) management company, have agreed to jointly implement a project in the Kaliningrad Region to deliver the construction and operation of facilities for processing and placement of MSW.
Russia’s MSW management reform started on January 1, 2019. The agreement between RDIF and partners to build a waste management complex in the Kaliningrad Region is the first one in the industry since the reform has started. Up to RUB2.9 bn are to be invested in the project.
The parties plans include the construction of a waste sorting complex for the handling of municipal solid and bulky waste, an organic waste treatment plant and a landfill for the disposal of non-recycled waste. The launch of the complex with a capacity of up to 350,000 tons of MSW annually is planned for 2022. Urbaser will be responsible for engineering during construction and operate the complex following its launch. The term of the concession agreement is for 25 years.
The parties also expect National Research Center “Kurchatov Institute” to join the project as the general contractor.
The complex will serve the western part of the Kaliningrad Region – including the city of Kaliningrad and areas in the region with a total population of over 660,000 people, and over 70% of the MSW will be processed. Implementation of the project will increase the share of waste sorted and directed to processing and significantly reduce the amount of waste that cannot be disposed of and sent to landfill.
Kirill Dmitriev, CEO of the Russian Direct Investment Fund (RDIF), said:
“The agreement between RDIF and partners will support both the national project “Ecology” and the federal project “Comprehensive municipal solid waste management system”. Urbaser’s experience and expertise as one of the leading European operators for MSW management will help create a high-performance infrastructure in the Kaliningrad region. The complex will not only reduce the negative footprint, but also supply recyclables for various industries, which will bolster the project’s economy. MSW recycling is a state priority for the preservation of the environment and will remain a part of RDIF’s investment focus in the future”.
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 RUB1.5 tn and covering 95% of the regions of the Russian Federation. RDIF’s portfolio of companies employs more than 800,000 people and generates revenues which equate to over 6% of Russia’s GDP. RDIF has established joint strategic partnerships with leading international co-investors from more than 15 countries that total more than $40 bn. Further information can be found at rdif.ru
For additional information contact:
Arseniy Palagin Maria Shiryaevskaya / Andrew Leach
Russian Direct Investment Fund Hudson Sandler
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