January 15, 2013 / 11:40 AM / 5 years ago

Suez signs $1 billion Polish waste burning contract

PARIS (Reuters) - French water and waste group Suez Environnement (SEVI.PA) has signed an 850 million-euro contract in Poland for a waste incineration plant, the company said on Tuesday.

Suez said in a statement the city of Poznan had awarded the contract to a joint venture between Suez Environnement's Polish unit Sita Polska and the Marguerite fund, an energy and infrastructure fund backed by European state banks.

The venture will build an incinerator in Poznan and run it for 25 years. Suez said the 180 million-euro construction cost would be funded by project finance, not with shareholders funds, adding that the site would generate an estimated revenue of 850 million euros over its lifetime.

The plant will have a capacity of 210,000 tonnes per year. Sita Polska has been selling waste management systems to Polish municipalities and companies since 1992. Last year, its 2600 employees handled more than 960,000 tonnes of waste.

French newspaper Les Echos said steam generated by the incinerator will feed into the city's heating system, which is operated by Dalkia, a unit of French water and waste group Veolia (VIE.PA), which competes with Suez in France and abroad.

Suez Environnement, which is 35.7 percent owned by French utility giant GDF Suez GSZ.PA, last year had turnover of 14.8 billion euros.

Reporting by Christian Plumb and Geert De Clercq; Editing by Greg Mahlich

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