Bbabo NET

Economics & Business News

Russia - Waste plant to be built near Magadan with funds from bond issue

Russia (bbabo.net), - The first 4 billion rubles collected by the Russian Ecological Operator (REO) as a result of the placement of a bond program for 100 billion rubles on the Moscow Exchange will go to the construction of a solid municipal waste treatment and disposal facility in the Magadan Region.

The agreement on the construction of such a complex was signed by the head of the Ministry of Natural Resources Alexander Kozlov, the general director of the PPK REO Denis Butsaev and the governor of the Magadan region Sergey Nosov.

"In 2021, the government approved the issue of bonds in the amount of 100 billion rubles for PPC REO," Denis Butsaev said. "The first issue of its own bonds by PPC REO is planned for 2022. will receive funds from the issue of PPK REO bonds.

Construction work will begin at the end of this summer, Butsaev added. According to Nosov, one of the products that the complex will produce will be RDF fuel. It is planned to be used in the boiler houses of the region instead of fuel oil. Thus, the region will reduce its need for complex northern delivery and will be less dependent on hydrocarbon price fluctuations.

The commissioning of the waste treatment complex is expected at the end of 2024. The total cost of the facility is 5.7 billion rubles. The Magadan region will finance the remaining 1.7 billion rubles on its own.

A similar financing scheme for new facilities will be used in other regions, assured Alexander Kozlov, head of the Ministry of Natural Resources. According to him, due to the creation of this complex, the Magadan region will be able to meet the development goals - sorting all household waste and reducing landfill by half - set for 2030, six years ahead of schedule.

PPK REO is ready to allocate from 20 to 30 billion rubles to finance new waste management facilities, buyers of the bonds have already been found, negotiations on the terms of the loan are being finalized, Butsaev added. The pool of investors includes the largest Russian private and state-owned banks, he explained. Several more regions are ready to receive funding on such terms as the Magadan region. Their list should be approved in the near future by the government, after which they will be named, the minister said.

Russia - Waste plant to be built near Magadan with funds from bond issue