PPP projects in Belarus
Construction of waste recycling plant in Bobruisk, Mogilev region
Location of the object: Babruysk, Mogilev region
Project initiator: Bobruisk city executive commitee
Gist a project
The project involves the construction of the recycling plant in Bobruisk city with provision of the equipment required for waste management; operation of the facility by the private partner and its maintenance and functional service during the term of the PPP agreement for the environmentally safe disposal of municipal waste.
Construction of the waste recycling plant with provision of the equipment required for waste management
|Operation of the facility by the private partner and its maintenance and functional service during the term of the PPP agreement|
Estimated PPP model
“Design-Construction-Funding-Operation”. After the construction, the private partner is entitled to manage and maintain the facility during the term of the agreement, after which it is handed over to the public partner.
Preliminary capital expenditure is 26.66 mln. USD. The financial model, sources of financing and return of investment will be determined at the stage of preparing the justification of value for money (best price / performance ratio and quality) within the framework of the feasibility study of the project.
Advantages of PPP for the state
- Attracting private resources for the project realization in terms of the lack of budget financing - volume of the capital expenditure does not allow to realize project with the use of the budget resources
- Long-term implementation of the project - part of the risks is in the area of private partner's responsibility during the term of the agreement
- Socio-economic feasibility of the project - improvement of the ecological situation in Bobruisk and the region, creation of new work places, reduction of dependence on exported energy, reduction of costs for maintenance and operation of the solid municipal waste landfill
Advantages of PPP for business
- Stable and long-term return on invested capital.
- Enhancement of the company's image.
- Building good credit history and growth of the credit rating