Belgrade’s Waste-to-Energy Project Sparks Environmental Renaissance
Vinča landfill shows the power of a public private partnership
What Igor Ješić remembers most about Vinča landfill is the smell. Ješić (35), a garbage truck driver at the Serbian Public Utility Company, Gradska čistoća, recalls how the landfill on the outskirts of Belgrade had an “unbearable smell” just four years ago. "It was really tough to drive at the time. I would arrive at the landfill, and the truck would get stuck in the mud or sink into layers of garbage. Then, we had to wait for excavators to pull us out. Everything has improved significantly then.”
The once notorious landfill, with its landslides, fires and methane emissions (much more potent than carbon dioxide from a climate perspective) is undergoing a transformation that is reviving both the landscape and the lives of the nearby residents, and Serbia’s capital city. Progress has been made on the decay, foul odor, and polluted waterways that were once synonymous with the area surrounding the landfill. The aim of leading by example is to demonstrate that innovative waste management, environmental restoration, and sustainable energy production is possible in the Western Balkan and other emerging Europe markets.
That Was Then: What the Landfill looked like in 2019
This was what Europe’s largest unmanaged dump, located just 15 kilometers from the center of Belgrade, Serbia, looked like in 2019. After absorbing more than 10 million tons of waste in four decades, the landfill was closed for remediation. Check out a documentary from then to compare to today.
Combining World-Class Waste Management and Technology to Protect the Environment
This transformation began in 2015 when the City of Belgrade sought the support of IFC’s Transaction Advisory team to design a public-private partnership (PPP) to overhaul the city’s waste management system. The Belgrade Waste-to-Energy project combined a complete overhaul of the Vinča landfill and the management of its legacy pollution with the creation of sustainable, revenue-generating, environmentally conscious waste management – and circular economy transformation of ‘waste-to-value' – infrastructure.
Funded by €260 million in financing and guarantees from the World Bank Group’s IFC and the Multilateral Investment Guarantee Agency (MIGA) and complemented by other financiers,iincluding a €20 million blended concessional loan from the Canada-IFC Blended Climate Finance Program. This partnership — managed by Beo Čista Energija d.o.o., a special-purpose vehicle formed by global utility company Veolia, the Japanese conglomerate ITOCHU, and Marguerite Fund II, a pan-European equity fund — has brought technical know-how and crucial private sector innovation and support to the Serbian waste management sector. The success of the PPP model also enabled the city to better manage budgets and timelines, paving the way for Serbia to use PPPs to upgrade public infrastructure and services in other sectors.
Slavica Mandić checks the furnace. The facility generates enough thermal energy to heat 60,000 households in the winter.
Slavica Mandić checks the furnace. The facility generates enough thermal energy to heat 60,000 households in the winter.
The integral approach at Vinča went beyond merely addressing the environmentally catastrophic and dangerous situation of the landfill. It established a means for waste recovery. Energy from waste is recovered in the newly built modern facility, while energy from the landfill gas is recovered in a cogeneration facility. Recovery of construction materials is also taking place at a construction and demolition waste recycling facility. In addition, excess waste is processed at a new, sanitary landfill that meets European Union and Serbian standards.
The waste-to-energy facility started processing waste in February 2023, with full operations expected by the end of the year. It has the capacity to convert up to 340,000 tons of waste into renewable heat and electricity. It can generate up to 30 megawatts (MW) of electricity, enough to power approximately 30,000 Belgrade households, and up to 56 MW of thermal energy, providing 60,000 households with heat in the winter— a significant contribution to Serbia’s energy grid.
Aleksandar Ćiriković processes construction demolition waste.
Aleksandar Ćiriković processes construction demolition waste.
The newly established waste recycling plant recycles about 200,000 tons of construction and demolition waste per year. This facility will convert construction and demolition waste into recycled construction materials.
Together these project components are expected to reduce Belgrade’s greenhouse gas emissions by 210,000 tons of CO2 equivalent per year.
The all-encompassing nature of the initiative has catalyzed social progress, improved working conditions, and created 120 permanent jobs and 600 jobs during construction. As the first large-scale, private sector waste management project in emerging markets worldwide, the project holds the honor of being the first waste-to-energy facility in Serbia to receive Gold Standard Carbon Credit Accreditation.
Nikola Arsovski shows how clean the treated waste water is in the left vile.
Nikola Arsovski shows how clean the treated waste water is in the left vile.
Today at the Vinča landfill, which lies less than 20 kilometers from Belgrade, one can breathe the clean air and spot nested storks in unspoiled green meadows. The turnaround is almost unrecognizable to those familiar with the area’s past. It has also made a marked difference to those who service the site. "Now, I know exactly where I'm driving the waste, the work is much easier, and there are no more unpleasant odors," says Igor Ješić.
The revitalization of Vinča and its surrounding environment did not occur overnight. It took courage and action by the public authorities to test PPPs as a new delivery model and follow through on its ambitious scope and complex implementation. Belgrade's journey stands as an example for cities worldwide grappling with delivering climate-resilient service and infrastructure challenges for their urban and suburban communities.
Published October 2023