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Waste recycling plants, planned for construction in the Kyiv region, will meet European standards. Ario Law Firm has provided comprehensive legal support for the project

Projects, News

Corporate and M&A practice

01 March 2024

After aiding three municipal enterprises and a foreign investor in securing approval from the Antimonopoly Committee of Ukraine (AMCU) to establish a joint venture, tasked with constructing two waste recycling plants in the Kyiv region, Ario Law Firm oversaw the registration of the legal entity - Waste Energy Alta LLC . The establishment and official registration of the joint venture mark the final phase, clearing the path for the onset of plant construction. At every juncture of the project, legal guidance and consultation have been furnished by the Ario Law Firm team, including Senior Partner Julian Khorunzhiy, Counsel Serhii Derkach, and Associate Mykhailo-Lev Sydorovych.

"The project involves the construction of two new waste recycling plants, aimed at tackling waste management issues for three communities: Borispil, Fastiv, and Brovary, as well as the Left Bank of Kyiv region. This encompasses a population of at least 1.5 million residents who will benefit from waste disposal services," as noted by the Ministry of Environmental Protection and Natural Resources.

It was also disclosed that collectively, the plants will process 470,000 tons of waste annually. Their distinctiveness lies in the simultaneous use of several processing technologies: advanced sorting to extract valuable resources such as metal scrap, glass, and plastic; processing of organic waste (food waste) with subsequent production of biomethane, and more.

The price tag for this project stands at 135 million euros.

"As previously mentioned, the construction will be financed through funds raised from investors and international banks as part of the APENA 3 waste management pilot project, and to fulfill the objectives outlined in the National Waste Management Strategy for Ukraine until 2030," explained Serhiy Derkach, advisor at Ario LawFirm. "Currently, all preparatory legal procedures have been finalized. From start to finish, our team has devised and implemented a corporate management structure for the company that ensures a balance between the interests of municipal enterprise founders and foreign investors. Additionally, it provides mechanisms to resolve deadlock situations (if they arise) based on corporate agreements and irrevocable powers of attorney for corporate rights."

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