Abstract:
The case traces the actions by the city of Belgrade (Serbia) to replace a waste landfill that was an environmental disaster with both an Energy from Waste (EfW) plant, a new landfill, and a methane-driven district heating facility. The city lacked the capacity to develop and finance the facility and chose to outsource the project to a consortium of foreign private companies. The public-private partnership (PPP) was one of the first two such projects in Serbia. The case looks at the political, financial, and economic hurdles that both the city and the developers had to overcome. At the time, Serbia was striving to be accepted into the European Union, which required members states to embrace waste management strategies that emphasized recycling and reuse. The Belgrade project chose not to follow the EU standards. Was this the correct decision? Finally, the case explores the role of the International Finance Corporation in assisting the city to obtain the financing—both equity and debt.
Learning Objectives:
The case serves three major teaching goals.
- First, it traces the process of developing a PPP in an emerging economy with a record of political instability.
- Second, it assesses efforts to develop solid waste management options for a major city in eastern Europe.
- Third, it provides an opportunity to discuss the tradeoffs between focusing on a waste management strategy emphasizing recycling and reuse (EU standard) or one that focuses on disposal and incineration.
