The European Commission has approved an investment of more than €82 million from the Cohesion Fund to Poznan waste PPP project in Poland.

The total project investment is estimated at €229 million (US$242.2 million). The European Union, through the Cohesion Fund, will finance more than €82 million. The investment comes through the operational programme called "Infrastructure and Environment" and it is financed via the priority axis "Waste management and the protection of the earth".

The project 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 energy-from-waste plant with a capacity of 210,000 tons per year, is already in construction phase. The plant will enable the fifth largest city in Poland to provide its inhabitants with an environment-friendly and cost-effective waste management system. Overall, 740 000 people will benefit from this investment.

The project concerns the City of Pozna? and nine neighbouring municipalities, which together form an inter-municipal association including, the City of Pozna?, the Town and Municipality of Buk, the Municipality of Czerwonak, the Municipality of Kleszczewo, the Town and Municipality of Kostrzyn, the Town and Municipality of Murowana Goślina, the Town and Municipality of Oborniki, the Town and Municipality of Pobiedziska, the Municipality of Suchy Las, the Town and Municipality of Swarz?dz.

The project will involves the design, construction, financing and operation of the new facilities for a period of 25 years.

Commenting on the decision, Commissioner for Regional Policy Corina Creţu said

"This project is exemplary on many levels. First, it shows how fruitful can a public-private partnership be when it comes to improve the citizens' quality of life. I wish to see this kind of partnership flourish in the coming years. Then, this project demonstrates how Cohesion policy can contribute to sustainable urban development, a key pillar of our policy under the new programming period. Thanks to EU support, the city of Pozna? and its surroundings will become a healthier and safer place to live."