17/06/2021

A model partnership between the private sector and the local government

A model partnership between the private sector and the local government. One of the most technologically advanced eco power plants in Europe will be erected in Olsztyn.

A ceremony during which a coal stone was laid under the foundation of the Waste to Energy plant construction site was held in the capital city of Warmia and Mazury. The investment, which was carried out in the PPP format by the Dobra Energia dla Olsztyna company, is an exemplary model of cooperation between different entities, both public and private.

The investment includes constructing and utilising a power plant that will produce heat and electricity from alternative fuel – a calorific fraction of waste. 

The construction of one of the most modern power plants in Poland and Europe, which is to be erected in Olsztyn, will make it possible to replace the current, outdated and environmentally destructive coal-fuelled power plants with energy generated within the framework of a closed-cycle economy.

During the ceremony, Mayor Piotr Grzymowicz addressed the role of partnership in the erection of this installation, which he stressed is vital for the town residents. “The cooperation between entrepreneurs, institutions, local governments as well as all those who participate in the broadly understood investment process is exceptional. This is a huge investment, one of the largest public-private partnership in our country”.

Krzysztof Witkowski, the President of Dobra Energia dlaOlsztyna, spoke about the importance of close cooperation between the companies and institutions. “The core of the idea of creating an innovative and environmentally-friendly Installation is based, and I would like to emphasise this very strongly during today’s ceremony, on partnership. The investment would not have been possible if it were not for the cooperation under the public-private partnership with MrPresident and other city authorities and the MPEC (Municipal Heat Supply Company) in Olsztyn. It would also not have been possible if it were not for the openness of the local community to this initiative. This is very important because our partnership is envisaged for 25 years”.

Dobra Energia dla Olsztyna was chosen for this project by Meridiam Eastern Europe Investments SAS, a fund specialising in the development, financing and management of long-term public infrastructure projects, and Urbaser, an international entity providing services for local governments in the sector of waste management and processing.

– Our investment is aimed in particular at the residents of Olsztyn and the entire region of Warmia and Mazury. The new eco-power plant is being built to solve the problem of waste and out of concern for the environment and the health of the residents of this magnificent city. I believe that our long-term partnership of over 25 years, to which we have committed ourselves, will work as well as it has so far – said David Delgado Romero, partner and chief investment officer of Meridiam for Central and Eastern Europe, the asset management investment fund that made the project possible.

According to the investment objectives, the new installation will allow for recycling energy from more than 110,000 tonnesof alternative fuel per year. It will ensure the continuity of heat supply to the residents. In terms of producing good green energy, the project will benefit the city by reducing CO2 emissions associated with heat production by approximately 150,000 tonnes per year. The importance of the investment from an ecological perspective was highlighted by the Deputy Minister of Climate and Environment, Jacek Ozdoba, in a letter prepared specifically for this ceremony: “the laying of the coal stone for the investment is a milestone event on the road to the construction of the most modern plants in Poland. The Warmia and Mazury region is the cleanest area of our country, not accidentally counted among the Green Lungs of Poland. Waste management is an area of significant challenges in the field of environmental protection. In terms of the closed-circuit economy policy, waste is also a potential resource – wrote Minister Ozdoba.

This fully ecological installation, one of the most cutting-edge in Poland and Europe, has been supported by long-term funding from the Polish Development Fund (PFR) and the European Investment Bank (EIB), together with a group of Polish and international banks. As of recent, Bank Ochrony Środowiska has also joined their ranks.

– We are glad that thanks to the co-financing from BOŚ Bank, a modern eco-power plant will be built in Olsztyn, guaranteeing the highest environmental protection standards. Thanks to this investment, residents will breathe cleaner air, and communal waste will be processed and used most efficiently. – said Robert Kasprzak, Vice-President of the Management Board of Bank Ochrony Środowiska. Since the beginning of its existence, i.e., for 30 years, our bank has specialised in supporting environmental protection. We know how important the fight for our climate is. Thanks to our support, many environmentally friendly investments are being carried out, which are necessary for the local communities. – Kasprzak reminded.

The project is being implemented using an EU grant managed by the National Fund for Environmental Protection and Water Management, obtained under the Infrastructure and Environment Operational Programme. According to the plans, by mid-2023, the installation will supply ecological heat to approximately 35 per cent of the residents of the capital of the Warmia and Mazury region while at the same time tackling the problem of municipal waste management.