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In 2021, the construction of a waste processing plant began in Zhytomyr. Within a year, the building was completed, and then the team awaited the equipment. In 2023, the waste processing at the plant officially started.
We spoke with Yevheniy Barakh, managing partner of LLC "MS Social Project," about the plant`s operation, depth of processing, job creation, and future plans.
Can you tell us what stage you are currently at? Has the plant really been launched, and is the construction fully completed?
Indeed, this year the plant was commissioned, and the general construction work has been completed. During the period of informational silence, we focused on a tremendous amount of work—commissioning, technical setup, testing, recruitment, selection, and staff training. A huge amount of work has been done during this time. We already have some results and can compare what we initially planned with where we are now. For example, we initially planned a processing capacity of 85,000 tons per year, but today we see that the leading European equipment, unfortunately, is not adapted to Ukrainian realities or the nature of Ukrainian waste. The capacity will not exceed 40-45 thousand tons per year, which is about half of the original target. Other indicators have also shifted: the production of alternative fuel, initially planned at 30,000 tons, is now at 12,000 tons. Compost, which was planned as one of the commercial products, is not of the desired quality, so we are currently looking for alternative solutions to replace it and determine what else we can produce.
We have already decided that without additional financial investments and the reconstruction of the sorting and alternative fuel production line, we will not achieve the targets we initially set. Therefore, as the plant`s owners, we have decided to seek technical solutions and assess the costs. That work has already been done, and now we are exploring credit opportunities to purchase and install the necessary equipment. Next year, we plan to have the equipment fully operational by August-September 2024, in line with the initial targets we set.
How much did the construction cost, and how much do you plan to spend on the reconstruction?
What affected the fact that you did not achieve the target you initially aimed for?
One of the main reasons is that the equipment is not adapted to the current realities of Ukraine. The second reason is the waste management culture in our city and in Ukraine as a whole.
Can you explain the depth of waste processing and the volumes of landfill in simple terms, so that someone who is not an expert in this field can understand its impact?
It affects the quality of groundwater, the quality of drinking water, and generally impacts the overall environmental condition of our city, particularly in terms of pollution and landfill usage. If we compare the targets we aimed for, which were 80-85%, with the current level of 30-35%, there`s a clear gap. However, by finding a replacement for compost with another product and producing it, we reduce the amount of waste left unprocessed and sent to the landfill. These amounts will decrease. I see this happening in the next year, with the second phase of the project taking one to two years. We will find a solution for replacement, which will lead to a reduction in landfill volumes and a corresponding increase in processing levels. Currently, the highest quality processing level in Ukraine is about 20%, so you can imagine the impact if we reach 80%.
What is the state of the waste market in Ukraine today?
It is still developing, in the process of formation. With the introduction of the new Law "On Waste Management," the emergence of new types of services, and businesses like our plant, the market is changing. Waste management culture is evolving, with the installation of individual bins for separate collection. It`s not something that will change overnight, but it will likely take years. Nevertheless, the market is taking shape, and time will tell what it will ultimately look like.
The processing tariff. What is the current situation?
Permission to implement the processing tariff was granted back in 2018 when the investment agreement was approved at a city council session. Since then, and up until last year, decisions have been made at the city council and executive committee levels, and all legal grounds have been established for this tariff to come into effect. We planned to start applying the processing tariff from December 1, with the plant beginning full operations. However, the city council proposed changing the payment source for the tariff, meaning it would not come directly from the population but indirectly through the local budget. After receiving this information, we, as the plant’s owners, discussed internally that it might make sense to start not from January 1 and not through the city budget, as the budget is already under heavy strain due to the state of war and other pressing tasks. Therefore, we propose postponing the introduction of the tariff until after the heating season ends and to begin charging and collecting it from the end users—both the population and legal entities—in March. This proposal has been agreed upon internally. We will still discuss it with the city council, and I believe we will reach a mutual agreement. We understand that the country is currently at war, and there are certain burdens on household budgets. Therefore, it makes sense to postpone the actual introduction of the tariff until after the heating season.
Let’s talk about the specifics of operations. What kind of waste can the waste processing plant in Zhytomyr currently handle?
We are only able to process solid household waste. We cannot process other types of waste, such as construction materials, bulky waste, or animal by-products.
How many people have you managed to employ, and what working conditions have you created?
We initially planned to employ 100-120 workers. Given the wartime situation and the labor shortage in the market, we have fully staffed one shift, though we originally intended to operate with at least two shifts. Currently, about 60 workers are employed at the plant. They are provided with proper working conditions: each employee has a locker, access to restrooms, showers, a kitchen, and specialized work clothing, as well as laundry services. I believe we have met the basic conditions that an employer should provide. Salaries, all relevant contributions, taxes, and fees are being paid as promised. I would gladly hire more workers, but unfortunately, there is a shortage of skilled personnel. We need specialists.
For example, what specialists are you looking for?
We are looking for mechanics, and it took us a long time to find forklift drivers. We also had difficulty finding an electrician. Additionally, we are looking for workers on the sorting line. Interestingly, women tend to perform better than men in this role.
What salary are you offering?
For sorting line workers, the salary depends on how long they have been working—it can range from 10,000 to 12,000 UAH. This is not the limit, as once the plant is fully operational, especially with the introduction of the processing tariff, salaries will increase. We will definitely not stop at these levels and will continue to grow together.
Why did you choose Zhytomyr for building the waste processing plant?
