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International Internet Magazine. Baltic States news & analytics Thursday, 04.06.2020, 14:49

Estonian co granted waste management monopoly in Yakutsk

BC, Tallinn, 22.05.2019.Print version
Estonian construction company Ferrmix has been the sole provider of refuse collection services in the Russian city of Yakutsk since the summer of 2018, the company's ten-year contract with the city for service provision is worth 14.3 mln euros per year, according to the Postimees reports LETA/BNS.

In summer 2018, Ferrmix bought a 51% holding in the Yakutsk-based company Yakutskekoseti from the city's municipal enterprise Zhilkomservis along with a concession concluded with the city authorities for the construction of a waste disposal site and garbage processing complex.

At the end of 2018, the Yakutsk city government also granted Yakutskekoseti a ten-year monopoly for waste collection and processing. Valeri Pozdnjakov, one of the owners of Ferrmix, said that the maximum contractual amount for service provision for ten years is 143 mln euros, or 14.3 mln per year.

Pozdnjakov said that entering the garbage industry in Yakutsk was initially not Ferrmix' intention.

"Our acquaintance in Moscow offered us a holding in the project. At first, we only sought to offer one of the waste conveyors we produce, but having looked into the project, we decided to invest instead," Pozdnjakov told Postimees.

"We explored the project for two years and them decided [to buy a holding in Yakutskekoseti]. We are interested in constructing a waste disposal site and garbage processing complex and providing a long-term service," he said. 

Pozdnjakov noted that Ferrmix' area of activity in Estonia is not waste management. However, the company has extensive experience in building installations for garbage processing plants, which was the main reason why it went into waste management in Yakutsk as building a processing plant is mandatory according to the contract concluded with the city.

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