City of Pozna? authorities together with the project company, SITA Zielona Energia, and shareholders Marguerite and SITA, broke ground last week at the construction site in the district of Karolin for the first project financed energy-from-waste plant ever in Poland.

One year after signing the PPP Agreement on April 8, 2013, the start of construction works for the pathfinder PPP Waste-to-Energy project was celebrated with an official ceremony. In addition to the City's representatives, other central and local government officials, representatives of the shareholders, company management, financing institutions, the EPC Contractor and other stakeholders attended the event to celebrate one of the most important milestones in the development of the plant. Thanks to the City's and the private partner project team's hard work, the scheme has obtained all necessary permits on time. Construction works started one month ahead of the schedule contemplated upon signature of the PPP agreement.

The energy-from-waste plant with a capacity of 210,000 tons per year is being procured in the form of an availability-based Public Private Partnership (PPP) contract including a 25-year operating period following construction. SITA Zielona Energia's proposal was selected by the City of Pozna? after a nearly 2-year tendering process.

The cost of the plant is estimated at PLN 725 million. It will be fully financed under a non-recourse long term project finance structure by shareholders of SITA Zielona Energia and a consortium of 3 banks - Pekao SA (UniCredit Group), PKO BP and Bank Gospodarstwa Krajowego. SITA Zielona Energia was established by Marguerite Waste Polska, an affiliate of Marguerite Fund, and SITA Polska, part of Suez Environnement.

The plant is expected to be commissioned in 2016 and will reduce the disposal of waste in local landfills, in accordance with the EU Landfill Directive and Poland's Waste Law. The facility will be built by a consortium of companies comprising Hitachi Zosen Inova, a world leaderin energy-from-waste, and Hochtief, one of the largest construction companies in the world.