Marguerite in Poland’s first energy-from-waste PPP

The European Union-focused fund manager is part of a joint venture with Suez Environnement subsidiary SITA Polska which has been named preferred bidder for a landmark deal in the Polish city of Poznan.

The Marguerite Fund (Marguerite), the European Union-focused infrastructure fund manager, has been awarded preferred bidder status for a waste incineration plant in the Polish city of Poznan. Marguerite is one half of the SITA Zielona Energia consortium with SITA Polska, a subsidiary of French waste group Suez Environnement.

The deal – which is the first public-private partnership (PPP) tender in the energy-from-waste sector in Poland – will see SITA Zielona Energia design, build, finance and operate a municipal waste incineration facility, which is due to start operation in 2016. The tender process took 18 months and was organised by the City of Poznan’s local authorities.

The facility, which will have a capacity of 210,000 tons per year, is being procured in the form of an availability-based PPP contract including a 25-year operating period following construction. The plant, based in the Karolin district of Poznan, will reduce the disposal of waste in local landfills, helping to meet the EU’s Landfill Directive and Poland’s Waste Law.

The cost of the new plant is estimated to be PLN725 million (€176 million; $230 million). It is being fully financed by shareholders of SITA Zielona Energia plus a consortium of three banks: Pekao (Unicredit Group), PKO BP and Bank Gospodarstwa Krajowego. The banks are providing long-term non-recourse project finance debt.

The deal represents Marguerite’s second investment in Poland following its acquisition of a stake in two wind farms in the country in October last year. The firm has made seven investments overall from its debut fund, which reached a first close on €710 million in March 2010 and has a target of €1.5 billion.

Marguerite was established under the 2020 European Fund for Energy, Climate Change and Infrastructure with the backing of six of Europe’s leading public financial institutions (Caisse des Dépôts et Consignations, Cassa Depositi e Prestiti, European Investment Bank, Instituto de Crédito Oficial, KfW and PKO Bank Polski).