Hogan Lovells advises IFC on pathfinder energy-from-waste PPP project in Belgrade, Serbia
London, 11 October 2019 – Hogan Lovells has advised International Finance Corporation (IFC) and its client the City of Belgrade in connection with a landmark public-private partnership (PPP) project to design, build and operate a 103 MW energy-from-waste facility in Serbia. The facility will generate electricity for the national grid and heat for Belgrade's municipal district heating company.
The project also involves cleaning up one of Europe’s largest landfills and constructing a new EU-compliant sanitary landfill, which will form part of a sustainable waste-management complex designed to reduce pollution and mitigate climate change.
It will be delivered under a long-term contract awarded to Beo Čista Energija d.o.o., a company formed by global utility company Suez S.A., the Japanese conglomerate Itochu Corporation, and Marguerite Fund II, a pan-European equity fund. €300 million of non-recourse, project finance debt is being provided by International Finance Corporation (IFC), the European Bank for Reconstruction and Development (EBRD) and the Development Bank of Austria (OeEB).
The Hogan Lovells team was led by London-based infrastructure and energy partner Scott Tindall, with support from partners Andrew Gallagher and Alex Harrison and senior associates Alex Brightman, Oliver Hamilton, Philip Hassett and Malcolm Parry.
Commenting on the transaction, partner Scott Tindall said: "This ground-breaking transaction is the first public-private partnership of its kind in Serbia and a landmark deal for the region. It is politically important for Serbia in the context of its accession to the EU and demonstrates the country's ambitions to modernize its waste treatment practices and comply with EU environmental legislation. We were delighted to be involved, representing our longstanding client, IFC, on this challenging and exciting transaction."
Karanovic & Partners supported Hogan Lovells in relation to local law issues in Serbia.