The EBRD invests EUR 10 million in construction project for a new waste treatment plant

24.08.2015

The European Bank for Reconstruction and Development (EBRD) is acquiring a minority stake in Eco Baltia, a leading provider of waste treatment in Latvia and the Baltic states. The EBRD’s investment of EUR 10 million will be used to finance the construction of a mechanical biological treatment plant for household waste.

The plant will be the first of its kind in the region and will focus on extracting recyclable materials from household waste. In Latvia, nearly 90% of all municipal waste is landfilled, and the new plant will play an important role in creating a strong approach to waste management in line with recent European legislation.

Eco Baltia was set up in 2002. It is the largest waste management operator in the Baltic region, and it has a strong growth potential due to a stable macroeconomic environment and growing awareness of environmental concerns.

Matt Hyyrynen, EBRD Head of Office for the Baltics, comments, “We are very proud to sign this investment because we believe in Eco Baltia and the company’s activities and strategic direction. By becoming a shareholder, the EBRD aims to make a strong company even stronger to benefit the environment and the economy. Companies are increasingly realising the vast potential of recycling, and to recycle, they need waste management operators like Eco Baltia.”

The EBRD has invested in Latvia since the country gained independence in 1991. To date, the EBRD has invested over EUR 620 million in 75 projects throughout all sectors of the economy. In recent years, the EBRD has focused on supporting small and medium-sized enterprises by investing in promising innovative enterprises through the direct acquisition of equity or via funds.

SORAINEN performed legal due diligence for the project, prepared transaction documentation and assisted EBRD during negotiations. Eva Berlaus, partner, and Renāte Purvinska, senior associate, worked on the project. 

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