June 2015

Western Macedonia Waste Management Project

On June 10th 2015, E.P.A.DY.M. S.A. (Private Party), having as shareholders HELECTOR S.A. and AKTOR Concessions S.A., proceeded with the signing of the Partnership Agreement and of the relevant Finance Contracts with regard to the project "Design, Financing, Construction, Maintenance, and Operation of Infrastructures for the Integrated Solid Waste Management System (ISWMS) of the Region of West Macedonia, through a Public - Private Partnership (PPP)" (hereinafter referred to as the "Project"). The Awarding Authority of the Project is DIADYMA S.A., while the initial investment amounts to approx. 48 million Euros.  

Along with the signing of the above Partnership Agreement, HELECTOR S.A. proceeded to the execution of the following agreements with E.P.A.DY.M. S.A.:

  1. Design & Construction Agreement, which provides for the completion of the required infrastructures within 24 months.
  2. Operation & Maintenance Agreement with a duration of 25 years (equal to the duration of the Partnership Agreement).  

The Project refers to the financing, insurance, construction, and operation of the following infrastructures:

  • Solid Waste Treatment Plant (SWTP), with capacity of 120,000 tons per year.
  • Residual Landfill
  • 10 Waste Transfer Stations (WTS), 9 of which are existing / operating and 1 (Kozani WTS) which is going to be constructed (new infrastructure) within the context of the Project.  
  • Centre for the Environmental Awareness - Education with the purpose of informing the public about the operation of the Integrated Solid Waste Management System and raising their awareness on issues of waste management and sustainable development.  

The Project is considered as a landmark at European level, being compliant with the strictest specifications of the European Environmental Law, while it is the first integrated solid waste management project in Greece.

The Project entails the technological application of the aerobic treatment of the organic fraction of the waste, which shall be undertaken by the internationally reputable German company Herhof GmbH, 100% affiliate of HELECTOR S.A.

Within the SWTP, state – of – the – art method for the mechanical sorting of MSW shall be applied through the installation of optical, magnetic, eddy current and ballistic separators, with the purpose of maximizing the recovery and the purity of recyclable materials.  It needs to be noted that as regards the optical separation, respective separators of the leading company, TOMRA Sorting GmbH, shall be installed.

The implementation of the Project achieves a very high rate of recovery of recyclables (35% w/w over the quantity of recyclable materials entering the SWTP), along with a very high rate of diversion of Biodegradable wastes - BW (80% w/w in wet base), thus maximizing the environmental outcome.

The Project is expected to enhance the development prospects for the Region of Western Macedonia, since in the ISWMS Units more than 200 employees are expected to be employed during construction, while more than 150 permanent employment positions are expected for a period of 25 years (during Service Availability Period).

It must be noted that the financing needs of the Project are covered as follows:

  • Through the European Investment Bank, by approx. € 13 million.  
  • Through the Urban Development Fund (Jessica) for Western Macedonia, handled by the Investment Bank of Greece, with approx. € 13 million, contributing to the absorption of EU funds that would have not been used otherwise.
  • Through the National Bank of Greece, which cover the financing need of the construction VAT of the Project (€ 5.6 million).
  • AKTOR Concessions S.A. and HELECTOR S.A. through own funds (equity), amounting to € 17 million.