Deputy Prime Minister also approved the draft strategy of development of suburban passenger company “Russian ecological operator” (REO) and measures to increase investment attractiveness of the industry.

“For system build new mechanisms of waste management in the country, we should provide various tools to increase investment attractiveness of the industry. We received over 160 investment applications from 73 entities for the construction of facilities for processing and disposal of waste. At the same time on one ruble invested by the government money should account for 2.5 rubles of private investment, which will enable a shift from conventional waste disposal to modern recycling,” – said Abramchenko.

the Federal project “Integrated system of municipal solid waste management” in the period from 2020 to 2024 provides for the establishment of new facilities for the processing of municipal solid waste in the amount of 32.4 million tonnes and disposal in the amount of 20.8 million tons. To date, 68 projects can obtain support from PPK “REO”. They all entered the list of promising sites, the Federal scheme for the treatment of MSW and the regional programme entities.

Among the projects the treatment facilities with a total capacity of more than 15 million tonnes of MSW (with a share selection of useful fractions from 20 to 50%), as well as facilities for energy recovery with a total capacity of more than four million tons of municipal solid wastes.

REO jointly with the Ministry of environment has developed a number of new compensated and uncompensated measures to support the industry until 2024. As compensatory support measures it is proposed to provide joint loans to investors in the amount of not more than 60% of the cost of construction and installation works on the object, subject to the occurrence of PPK “REO” in the authorized capital of companies, and guarantees according to credit obligations of investors through the guarantee Fund, proposed as a subsidiary PPK “REO”.

the Availability of additional support measures in the form of providing guarantees according to credit obligations will create an effective tool guarantee for banks that lend to investment projects in the sphere of MSW. “Investors and credit organizations confirm the effectiveness and relevance of such measures”, – said the head of the REO Ilya Gudkov.

Grant measures are planned to provide through the Ministry of environment. Among them, the compensation credit institutions shortfall in income from the investment loans granted at a preferential rate in the amount of 2/3 of the key rate of the Central Bank of the Russian Federation and payment of 25% of capital expenditures made by the investor in the framework of the investment project.

Also discussed was the initiative to establish a zero VAT rate for investors in the construction of infrastructure facilities for processing and disposal of municipal solid wastes. For midrangeet reduction costs VAT rate for services in waste management can be reduced or spent on costs associated with the construction or modernisation of facilities for waste management.