Municipality of Raška - Public private partnership: Recycling yard


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Municipality of Raška - Public private partnership: Recycling yard

  1. 1. E 7575 E EE 75 75 PUBLIC PRIVATE PARTNERSHIP: MUNICIPALITY OF RAŠKA Recycling Yard E 7070 E EE 70 70 E 75 E 75 E 70 E 70 The Municipality of Raška is located in South West part of Serbia, at the foot of mountain and national park Kopaonik, on main road M22, 125 km from Corridor X (highway E75) and 280 km from Belgrade. It has a population of 24,657 and covers the area of 670 km2. The main business sectors are industry, mining, agriculture and tourism, and large underused potential is seen in recycling. E 7575 territory of Municipality of Raška there is ca. 6,500 tons of75 waste created annually. In the EE solid E 75 At the moment approximately 50% (3,250 tons) is being collected and the local public utility company plans to increase the share to 70% in the years to come. This waste is currently being entirely disposed at a local unsanitary landfill. In cooperation with private partner, the local government plans to establish the first recycling yard for processing solid waste in municipal territory, which would generate significant funds and have positive impact on the environment. Project The Recycling center represents a technological facility for receiving, sorting, pressing and baling dry packaging and primary selected waste. The treated/selected waste is temporarily stored in the Recycling yard until it is sold. The municipality plans to realize the project as public private partnership (PPP) without elements of concession. There is an obligation of establishing an entity for special purpose, the agreement is concluded for a period from 5 to 50 years. Documentation The main project was developed and the location permit provided (it will expire during 2013). The land is registered to the Municipality of Raška. Feasibility study on joint waste management with another 15 municipalities of Raška and Moravica Districts has been performed. Raška E 75 Project ID: Recycling Yard Industry Processing industry / recycling Investment form PPP without elements of concession Public partner Municipality of Raška and public utility company “Raška” Investment value RSD 16.3 million (EUR 142,200) Funding structure Municipality: RSD 1.5 million (EUR 13,200) Private partners: RSD 14.8 million (EUR 129,000) Projected financial results (000 RSD) Revenues Expenses Gross income 2014 124,906 97,814 27,091 2015 136,099 105,771 30,327 2016 148,061 110,444 37,617 Obligations The Municipality shall provide the land equipped with required infrastructure, with a location permit and entire project-technical documentation. Public utility company „Raška“ shall perform collection of waste. The private partner shall invest in facilities (assembly hall, covered boxes for storing the baled material, reception desk), equipment (separation line, biological filter, oil separator etc.), and manage the Recycling yard operations. Market Supply market: inputs for the work of Recycling yard will be ensured by the local public utility company. At the moment, it provides approximately 3,250 tons of waste a year, and the amount is expected to go up to more than 5,000 tons. Placement market: the recycled raw materials will be placed to familiar buyers that are already active in the local market, such as Pet reciklaža (Merošina), Sekopak (Belgrade), Danijel Radević (Kralјevo), Ecotec (Belgrade) etc. Tijana Pajević Stefanović Assistant Mayor for local economic development PPP in Serbia supported by Municipality Raška 2 Ibarska street, +381 36 736 224, +381 36 736 204 (fax),