TREND.SK: The Public-Private Fund Invests Tens of Millions in Green Projects
IPM Group, a company which specialises in energy, mobility, and artificial intelligence, will co-finance green projects via Avanea Eco Fund. The company also wants to finance waste management projects, which are among the biggest challenges in the field of environment in Slovakia. With the fifth infrastructure investment, IPM Group plans to support projects worth 73 million euros, of which 22 million was won through a public tender.
Avanea Eco Fund (AEF), founded in March this year, will primarily aim on environmental projects focusing on technological innovation, new capacities in recycling, sorting, waste recovery and the overall transformation of waste management in Slovakia.
According to Simon Becica, director of AEF, IPM Group’s investment will enable Slovak companies to be at the forefront of innovations in green technologies.
AEF plans to co-finance projects in the amount of 73 million euros, of which 22 million are funds received in a public tender from the state institution Slovak Investment Holding and 51 million are to be obtained from co-investors in the private sector, the company stated in a press release. It plans to allocate the investments in the next five years to new or existing projects through equity and quasi-equity financing.
According to Adrian Vycital, Managing Partner of IPM Group, “The main goal of AEF is to support sustainable development and the circular economy through responsible investment. That is why we support projects where we can be not only a financial partner, but also a strategic partner and together bring solutions for greener tomorrows”, explains Vycital.
The report of the Institute of Environmental Policy from 2018 states that waste management is one of the biggest challenges in the field of the environment in Slovakia. The rate of municipal waste recycling in Slovakia is one of the lowest in the European Union and landfilling is still the dominant form of municipal waste management. In addition to the negative effects on human health and the environment, landfilling also has economic costs in the form of land grabbing and loss of resources,” IFP’s government analysts write in their report.
The funding of projects in the field of recycling, sorting and reuse of waste that can help to transform the sector. According to the Head of AEF, efficient waste management can not only lead to energy savings and an overall reduction in the cost of waste disposal, but also increase the quality of life in the regions. “In addition, it will enable the creation of new jobs through innovative technologies,” adds S. Becica.
Billion dollars invested
AEF is part of IPM Group, which has invested more than $ 1 billion in the infrastructure and technology projects in the past. This year, the company received the national CESAwards in the Investor of the Year category.
Their portfolio includes one of the largest LNG terminals at Dunkerque in France, hospitals in Turkey, and a solar fund in South Korea. In Slovakia, the company invested in Aeromobil—a flying car project, Matsuko—a telepresence startup in Kosice, Tachyum—a computer chip developer, and InoBat—an advanced energy storage company for e-mobility and stationary storage, among others.
In cooperation with the state
AEF’s associate and partner are also the state-owned Slovak Investment Holding (SIH), which covers capital contributions and loans to potentially promising business projects.
Slovak Investment Holding is a joint-stock company 100% owned by the Slovak Guarantee and Development Bank. It draws funds for the implementation of investments from the European Structural and Investment Funds.