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Ario Law Firm facilitated the process of obtaining the concentration clearance to establish a company that will construct waste recycling plants in the Kyiv region

News, Projects

Competition Law

11 January 2024

The Antimonopoly Committee of Ukraine has granted permission to Municipal Enterprise "Brovary-Beautification", Municipal Enterprise "Fastiv BTI", Municipal Enterprise "Eco-City", and the Polish company Remko Sp.Z.o.o. to establish a joint business entity - Waste Energy Alta LLC. This entity is tasked with constructing two waste recycling plants in the Kyiv region. Ario Law Firm's team, led by Senior Partner Julian Khorunzhiy, Counsel Serhii Derkach, and Associate Mykhailo-Lev Sydorovych, has been overseeing the process from the initial steps of forming the legal entity to obtaining clearance from the Antimonopoly Committee.

The plants are slated to be erected in the territories of Borispil and Fastiv districts in the Kyiv region. The overall project cost amounts to approximately 120 million euros. Financing for the construction will be sourced from investments and international banks as part of the APENA 3 waste management pilot project, along with the fulfillment of Ukraine's National Waste Management Strategy until 2030.

It's worth noting that according to the aforementioned strategy, the Government aims to achieve a 50% processing rate for household waste by 2030, including through the introduction of additional waste sorting lines and recycling plants.

"At present, there are no waste recycling plants in the Kyiv region that are engaged in the recovery and disposal of household waste. Instead, the waste collected in the region is transported to landfills and buried there," explained Serhii Derkach, a counsel at Ario Law Firm. "The construction of two full-fledged waste recycling plants will undoubtedly bring about positive social and environmental impacts, helping to address issues such as the formation of unauthorized landfills and subsequently reducing the adverse effects on the environment and public health. Additionally, the establishment of Waste Energy Alta LLC will have a clear positive effect by attracting foreign investments into Ukraine's economy and generating new employment opportunities."

The attorney also emphasized that the chosen locations for the plant construction fully comply with the Regional Waste Management Plan of the Kyiv region until 2030.

"It is anticipated that the future waste recycling plants will accept waste from individuals, legal entities, and entities providing waste collection and transportation services," stated the lawyer. "The projected capacity of the waste recycling plant in Borispil district will be 365,000 tons per year, while in Fastiv district, it will be 105,000 tons per year."

At a meeting attended by representatives of the territorial communities of the Kyiv region, the Polish company, and lawyers from Ario Law Firm, held immediately after receiving the decision from the Antimonopoly Committee, further steps for project implementation were agreed upon. These steps include the state registration of the joint LLC, convening general meetings, project design, and construction of the plants, among other tasks.

For your reference

APENA 3 is an international technical assistance project aimed at "Strengthening the Capacity of Regional and Local Authorities to Implement and Apply EU Legislation in the Fields of Environmental Protection, Climate Change Mitigation, and Infrastructure Development."

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