SEB banka has provided financing for the construction of the "Daibe" biowaste recycling plant in the amount of EUR 4 million

  • 2022-06-20

Waste management company ZAAO has received financing of EUR 4 million from SEB banka for the construction of the biodegradable waste processing plant "Daibe". The plant will process biodegradable waste originating from municipal waste, separately collected garden and park waste, and separately collected food waste. Compost will be produced as part of the process, and biogas will be generated as a by-product for heat and electricity production.

The works are expected to be completed by 1 November 2023. Preparations for the construction of the housing for the plant's employees have begun, and the development and coordination of the remaining construction project solutions have been completed. The start of construction of external technical communications, the site grounds and the roofing is scheduled for July.  

Gints Kukainis, the Chairman of the Board of the Municipal Waste Management Company SIA ZAAO points out: “In the development of ZAAO services, which aim to take into account the diversity of services available to customers, it is essential for ZAAO to improve the recycling phase. The implementation of the specific project is a step towards providing the population of Vidzeme with the opportunity to collect biological waste separately. The project is important in Latvia to jointly achieve the goals of the circular economy.”


Arnis Škapars, a member of the Board of SEB banka: “The bank is a financial partner for companies operating in various sectors and industries throughout Latvia and is constantly increasing the volume of corporate loans. In the first five months of this year, loans to small and medium enterprises amounted to EUR 87.2 million, representing an increase of 4.5% compared to the same period last year. The implementation of sustainable initiatives and business ideas that promote the development of a circular economy and encourage people to change their daily habits is particularly important to us. The building  of a biodegradable waste processing plant in the Vidzeme region is a step in this direction. The quality of governance at the company’s ZAAO deserves to be appreciated. This is an important aspect that makes it easier for the bank to provide financing for quite complex projects.

The total project cost is EUR 9.6 million, of which EUR 4 million are financed by SEB banka. The project is co-financed by the EU Cohesion Fund.