Environment protection has Romania striving to meet EU standards, but has also engendered a highly profitable business: ecological dumpsites.
The business of ecological deposits has huge potential on the Romanian market, as only eight such dumpsites are operating now, although Romania needs about fifty, according to Romanian Sanitation Association officials. Consequently, those aiming to own other people’s garbage can invest some 5-10 million euros for about 20 years in an ecological waste deposit, which can bring annual revenues of some 2-4 million dollars and very hefty profits. #leadend#
Ecological deposits bring about $20-30 million to investors every year, considering average revenues of 2-4 million dollars for each site. But the business can bring at least $150-200 million annually, at the current prices, which could however go up soon, making the business even more appealing to investors.
The Romanian market has already seen the emergence of the first private owners of ecological dumpsites: Tracon Braila, Iridex Group Bucharest and Ecologica Sistema (Italy). The big cities such as Bucharest, Constanta, Braila, Sibiu, Pitesti, Ploiesti and Piatra Neamt already have ecological dumpsites. Buzau, Brasov and Timisoara will follow soon. Most of the investments are made entirely by the private investors, a rare occurrence on the Romanian market. Investments are also secured through partnerships with the local authorities, which can attract funds from the local budgets, foreign governments or even ISPA money from the European Union.
Moreover, the market has seen strong sanitation companies such as Germany group RER Emmert Entsorgung Romania SRL, Rosal Servis or Conprest Brasov beginning to invest in the ecological dumpsites so as to become owners and build genuine “waste empires.”
Why are investors rushing into the ecological dumpsites?
“This brings sure benefits. Such an investment depends on the deposit’s capacity and the number of customers. On the average, some 5-10 million euros can be invested into an ecological dumpsite, but, in the case of a very big dumpsite, the investment can exceed 20 million euros. Tariffs per tonne of deposited waste can range from $7 to more than $12, with the prices dropping as the number of customers increases. On the other hand, the prices will go up,” Valentin Feodorov, chairman of the Romanian Sanitation Association told Ziarul Financiar. The Association counts 150 members, natural and legal persons, among which sanitation operators, equipment producers and dealers.
“Deposits are needed only in areas with more than 150,000-200,000 inhabitants. Romania needs about 50 ecological deposits, which means one such dumpsite in every county. One more deposit can then be built in the big counties, in accordance with a strategy at the Ministry of Environment,” Feodorov added.