REO to Invest 4.5 Billion Rubles in a Waste Management Facility in the Magadan Region

A concession agreement has been signed in the Magadan Region for the construction of a comprehensive solid municipal waste (SMW) management facility, a key infrastructure project for the region. The project is proceeding according to the established roadmap; an application for a loan from the Russian Ecological Operator (REO) is expected shortly, with funding scheduled to commence in the second quarter of 2026.

The complex will be built by the concessionaire, Magadan Ecological Concession LLC. Its annual capacity will include:

·         Processing: 55,400 tons

·         Recycling (composting): 22,500 tons

·         Disposal (landfill): 23,000 tons

The facility is scheduled to be commissioned in December 2028.

Investment Structure
The total investment in the project is approximately 6 billion rubles.

·         Regional Contribution: The Magadan Region will provide a capital grant of 1.14 billion rubles from its own budget. A portion of these funds will be allocated as early as 2025, allowing the project to launch as quickly as possible.

·         REO Financing: The bulk of the funding—approximately 4.5 billion rubles—will be provided by REO in the form of a preferential loan.

"The Magadan Region is taking a strategically important step by forming a comprehensive waste management system. This will increase processing and recycling volumes, reduce the burden on landfills, and ensure a transition to a circular economy. The project is fully prepared for financing and complies with all state expert appraisal requirements," REO’s press service emphasized.

Design and estimate documentation for the facility has been completed, and positive conclusions from state expert reviews have been obtained.