Project Overview
Kramar ECO-Poligon LLC is implementing a project to build a modern municipal solid waste management complex in Bucha district, Kyiv region. The project provides for the creation of an infrastructure facility that will ensure the reception, sorting, treatment, processing and environmentally safe disposal of municipal solid waste using modern waste management technologies.
The purpose of the project is to create an integrated MSW management system for Bucha district and adjacent territories of Kyiv region, taking into account modern environmental standards and the principles of the circular economy.
The project provides for:
- construction of a municipal solid waste landfill;
- construction of a waste sorting complex;
- creation of infrastructure for the extraction and sale of secondary raw materials;
- implementation of a landfill degassing system;
- potential electricity generation from landfill gas;
- development of RDF/SRF fuel production and processing of certain types of waste.
A strategic advantage of the project is its integration into the regional waste management plan system.
Brief Market Analysis and Key Issues
The municipal waste management system in Kyiv region is undergoing structural transformation and requires a large-scale upgrade of infrastructure.
At the same time, the existing MSW management system in Kyiv region is characterized by:
- a high level of dependence on waste disposal;
- an insufficient level of sorting and recycling;
- a shortage of modern MSW treatment capacity;
- overloaded existing landfills;
- worn-out infrastructure;
- a lack of a sufficient number of modern waste management complexes.
A separate issue in the region is the condition of existing landfills. Around 97% of landfills in Kyiv region do not meet modern environmental requirements and require modernization or phased decommissioning.
Bucha district is one of the most dynamic regions of Kyiv region in terms of residential development, community growth and increasing volumes of municipal waste generation.
At the same time, the region is characterized by a significant shortage of modern MSW management infrastructure.
The region also faces a shortage of:
- modern sorting facilities;
- infrastructure for the extraction of secondary raw materials;
- landfill degassing systems;
- capacities for RDF/SRF operations;
- modern environmentally safe landfills.
An additional factor is the active reform of Ukraine’s waste management sector and the gradual transition to a European model of MSW management, which provides for the development of sorting, recycling and environmentally safe waste disposal.
Potential Clients and Supply Logistics
Bucha district generates one of the largest potential MSW flows in Kyiv region. According to the RWMP-2030 forecast model, the total potential generation of municipal waste in 12 communities of the district is estimated at around 138,500 tonnes per year. The largest generators of the flow are the Irpin, Bucha and Vyshneve territorial communities, which account for a significant share of the district’s total MSW volume. This creates a stable base for the long-term utilization of the waste management complex.
A separate important segment is commercial and industrial waste, which has higher value for sorting and recycling due to the significant share of paper, cardboard and plastic. The potential volume of this flow within Bucha district is estimated at approximately 4,100 tonnes per year. This segment creates additional potential for monetizing secondary raw materials and developing deeper processing areas.
The key channel of access to the MSW flow consists of carriers and waste management operators, which, under the current market model, act as the main counterparties for landfills and waste treatment complexes. The ongoing reform of the waste management system and the transition to a more formalized market operating model — permits, contracts and reporting — create prerequisites for the formation of long-term and more predictable relations between communities, carriers and MSW infrastructure operators.
Potential clients of the complex may include:
- territorial communities;
- MSW collection operators;
- municipal enterprises;
- commercial carriers;
- enterprises and organizations that generate municipal waste flows.
Current Project Development Status
As of now, the following has already been completed within the project:
- registration of the land plot;
- conclusion of a long-term lease agreement;
- preparation of project documentation;
- geological and geodetic surveys;
- pre-design technical calculations;
- obtaining technical conditions;
- obtaining approvals;
- obtaining a permit to start construction works;
- integration of the project into the Regional Waste Management Plan.
The next stages of project implementation are:
- attracting investment;
- passing the final stage of preparation for construction;
- construction of the landfill and engineering infrastructure;
- construction of the waste sorting complex;
- launch of the complex’s operating activities.
Information About Assets
List of assets and documentation included in the sale price:
- a legal entity in the form of an LLC, to which the land plots, project documentation and permit package are registered;
- land lease agreement for a land plot of 8.4999 ha for a term of 49 years;
- ownership right to a land plot of 1.4943 ha;
- completed MSW landfill construction project with all volumes;
- results of engineering and geological surveys;
- results of engineering and geodetic surveys;
- approval from Hostomel airfield for the construction of the MSW landfill within the protection zone;
- approval from Borodianka airfield for the construction of the MSW landfill within the protection zone;
- developed project and obtained technical conditions from Oblenergo for connecting the facility to a 10 kV high-voltage power line;
- approval from Oblavtodor and the forestry authority for the construction of a high-voltage power line;
- permanent permit to start construction works for the construction of the MSW landfill.
In fact, the buyer receives an infrastructure project prepared for implementation with a high degree of readiness to proceed to the construction stage.
Team and Personnel
Kramar ECO LLC is one of the operators in the Kyiv and Kyiv region market in the field of management of municipal, bulky and construction waste.
The team includes 150+ employees and has more than 20 years of experience in the waste management sector. Kramar ECO LLC is ready to undertake the implementation of this project, from the start of construction to commissioning and launch, having real experience in this area.
General Revenue Generation Model
The concept of Kramar ECO-Poligon LLC provides for the creation of a multi-component business model in the field of municipal waste management, combining:
- base income from the reception and disposal of MSW;
- income from sorting and sale of secondary raw materials;
- potential income from RDF/SRF;
- a prospective energy segment based on landfill gas;
- additional areas of work with certain types of waste.
This model allows the project to:
- diversify the revenue structure;
- reduce dependence on a single source of revenue;
- gradually increase the level of monetization of the waste flow;
- adapt the complex to future market changes and regulatory requirements.
Key Project Parameters
|
Indicator |
Value |
|
Planned maximum capacity of the complex |
10,000 t/month |
|
Planned maximum capacity for MSW acceptance at the landfill without preliminary sorting |
6,355 t/month |
|
Planned maximum capacity of the waste sorting complex |
4,333 t/month |
|
Maximum volume of secondary raw materials, 15% of the MSW flow sent for sorting |
650 t/month |
|
Start of operating activities |
2028 |
|
Capacity utilization from the first year of operations |
90% |
|
Tariff for MSW acceptance at the landfill |
UAH 1,000/t |
|
Tariff for MSW acceptance for sorting |
UAH 1,000/t |
|
Sale price of secondary raw materials |
UAH 11,500/t |
|
Annual tariff indexation |
10% |
|
Annual OPEX indexation |
10% |
Key Financial Indicators of the Project
|
Indicator |
Value |
|
Total CAPEX |
UAH 475,200,000 |
|
Average EBITDA |
UAH 199,734,748/year |
|
Average EBITDA Margin |
52.3% |
|
Project IRR |
22.9% |
|
Equity IRR |
22.9% |
|
Project payback period |
6 years |
|
Equity payback period |
6 years |
Investment Proposal
The sale price of the project is USD 1,500,000.
The specific transaction structure will be determined during negotiations with the potential buyer.
The subject of the transaction is the transfer to the buyer of the corporate rights of the legal entity Kramar ECO-Poligon LLC.
Investment Budget
Capital Investments
|
CAPEX Category |
Subcategory |
Amount, UAH |
% of Total CAPEX |
|
Land plot |
Land plot of 10 ha |
66,000,000 |
13.9% |
|
Design and permits |
EIA — Environmental Impact Assessment |
4,400,000 |
0.9% |
|
Design and permits |
Project adjustment + expert review |
||
|
Design and permits |
Approvals and permits |
||
|
Earthworks and landfill |
Pit formation |
171,600,000 |
36.1% |
|
Earthworks and landfill |
Formation of landfill cell with an area of 6.5 ha |
||
|
Earthworks and landfill |
Geomembrane + protection + installation |
||
|
Earthworks and landfill |
Filtration wells |
||
|
Infrastructure |
Site fencing |
52,800,000 |
11.1% |
|
Infrastructure |
Road to the landfill |
||
|
Infrastructure |
Power supply |
||
|
Infrastructure |
Weighbridge |
||
|
Infrastructure |
Administrative building |
||
|
Infrastructure |
Checkpoint |
||
|
Special machinery |
Bulldozer |
30,800,000 |
6.5% |
|
Special machinery |
Compactor |
||
|
Sorting station |
Sorting complex |
132,000,000 |
27.8% |
|
Sorting station |
Hangar |
||
|
Sorting station |
Pressing equipment |
||
|
Sorting station |
Machinery |
||
|
Reserve and contingency expenses |
Inflation risks and reserve |
17,600,000 |
3.7% |
|
Total CAPEX |
475,200,000 |
100% |
The project may be of interest to the following categories of investors:
- infrastructure investors;
- waste management market operators;
- international environmental companies;
- energy groups;
- infrastructure developers;
- strategic players in the waste management market.
