The PPP contract

The Partnership Agreement for the implementation of the project “Design, Financing, Construction, Maintenance and Operation of Infrastructure of the Integrated Waste Management System (IWMS) of the Region of Western Macedonia with PPP”, was signed on 10/06/2015 between DIADYMA SA and EPADYM SA (Private Partnership Agency-PPA).

History


2006

Specialized Consultant

With funding from the Ministerial branch of the "THESEUS" Program, a Specialized Advisor is hired to support DIADYMA in PPP issues
2007

Implementation request

In March, an application is submitted to include the implementation of the project in the provisions of Law 3389/2005 "On PPP"
2007

Project integration

On 2nd August, by decision of the Interministerial PPP Committee, the project is included in the List of Approved Projects
2009

Auction preparation

In March, a Financial-Technical-Legal Advisor was hired by the Special Secretariat for Public-Private Partnerships (SSPPP) to support DIADYMA during the project auction
2011

Project auction

At the beginning of the year, the 1st Phase of the competition is auctioned, which ends in June of the same year with the selection of six (6) Candidate Contractors who qualify for the 2nd Phase.
2012

Submission of binding offers

The 2nd Phase of the competition starts in May and on 28-12-12 three (3) binding offers are submitted
2013

Temporary PPA

In December, following a decision of the Council of State, the Association of Companies "AKTOR CONCESSIONS-ELECTOR" is declared a temporary PPA
2014

Final PPA

In December, after the issuance of the Decision for the Approval of Environmental Conditions and the finalization of the drafts of the Partnership Agreement as well as the financing agreements, the Association of Companies “AKTOR CONCESSIONS-ELECTOR” is declared the final PPA and tender details are sent for pre-contractual review of legality by the Court of Auditors
2015

Decision of the Court of Auditors

In February 2015, the 5th Level of the Court of Auditors with its 28/2015 Act, decides that “the signing of the Partnership Agreement is not hindered”
2015

Signing of the Partnership Agreement

The Partnership Agreement is signed on June 10
2017

Commencement of Commercial Operation

The "Commercial Operation" of the MBT begins on June 10.

Object


The object of the Partnership Agreement is the design, financing, and construction of:

a) the Mechanical and Biological Treatment plant (MBT) with a capacity of 120,000 tons / year,
b) the Landfill (Waste Landfill) capable of accepting the waste of the MBT for 30 years and
c) the new Local Waste Management Unit (LWMU) of Kozani
as well as the operation and maintenance of all the infrastructure of the IWMS of Western Macedonia for 25 years.

It is a Mechanical - Biological Treatment Unit (MBT) which includes: mechanical sorting of mixed waste into recyclable and biowaste, followed by mechanical treatment and separation of recyclable materials in streams with wide use of optical, gravitational and ballistic separators while the organic is separated processing and composting in closed boxes.

The MBT was conducted in such a way that it is flexible:

(a) in the incoming quantities of waste
(b) in the composition of incoming waste (depending on the diversion from separation at source) and
c) in the type of incoming waste, as it can accept a pre-selected organic fraction.

Financing


The project is implemented in accordance with the provisions of Law 3389/2005 on Public-Private Partnerships (PPPs), and was the first reciprocal project implemented in Greece through this process.

The financing of the infrastructure projects came from the leverage of resources from:

· The European Investment Bank (EUR 13 million),

· The Jessica financial instrument (EUR 13 million) - an amount that will be returned to Western Macedonia for reinvestment,

· The National Bank of Greece (EUR 6 million),

· Equity of 17 million euros of the Private Partnership Agency EPADYM SA.

The Commercial Operation of MBT started on 10/6/2017 - exactly two years after the signing of the PA and without a single day delay - and enabled DIADYMA SA to ensure the treatment of all waste generated in Western Macedonia.

With the operation of the MBT, Western Macedonia became the first region to achieve the goal of Directive 1999/31/EC of the EU Council, for the treatment of the biodegradable fraction of waste and even exceeded the target as the unit achieves treatment >80% against of the target 65%.

The MBT in numbers


There are three main performance goals of MBT and PA.

· Diversion of Biodegradable Waste (BW) from Landfill at a rate of > 80%
· Landfill diversion at a rate of <35.96%
· Recovery of Recyclable Materials (RM) of Conventional Waste at a rate of > 35%

Targets 2017 2018 2019 2020 2021
BW diversion > 80% 86,40% 86,32% 85,29% 88,09% 85,70%
Landfill diversion < 35,96% 32,77% 33,87% 35,56% 34,25% 35,50%
Recovery RM > 35% 35,92% 38,44% 41,44% 41,80% 37,58%

Awards


The PA was the first reciprocal project implemented in this way at country level and is therefore included as a "Good Practice" on the European Commission's Invest EU website (https://europa.eu/investeu/projects/west-macedonia-waste-management_el) while it has won awards and distinctions both in Greece and abroad.

In 2013, after a three-month evaluation, it was awarded the "Waste of the Year Agreement", under the "Annual Funding Award" program by the prestigious financial magazine World Finance.

In 2017 MBT won the WINNER distinction in the "Waste Partnership" category of the "Waste & Recycling Awards 2017", for the "Successful implementation and operation of the Mechanical and Biological Treatment plant with a Public-Private Partnership Agreement"

In 2019 MBT won the award "Biodegradable Fraction Processing", in the category Municipal Solid Waste within the Greek Green Awards 2019 of the Verde.tec Forum.