The Polish Government has received three bids to develop the new heat and power plant in Olsztyn under the Public-Private Partnership (PPP) scheme, however, only two companies have met the necessary requirements of the tender with the offer of about PLN 3.5 billion to PLN 5 billion (US$1.31 billion).

MPEC has estimated that the waste-to-energy project would require an estimated PLN 1.9 billion (US$498.99 million) investment of which about PLN 500 million (US$131.36 million) will be used for the physical construction of the facility. MPEC has recently secured EUR54 million (US$60.8 million) grant from the European Commission in support for the project. 

The private partner will manage and operate the project for 25-year concession term with Miejskie Przedsiębiorstwo Energetyki Cieplnej Sp. z o.o. (“MPEC”), a municipally owned company. MPEC will take responsibility for supplying fuel for energy production and heat collection, which will later go to Olsztyn residents. After 25 years, the entire plant will be transferred to MPEC.

The evaluation committee will now evaluate the two offers for the project considering the non-price criteria, such as the construction period of the installation or the limit of liability for the loss of the EU subsidy.