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City Hall to Expand Recycling Project by $2.2Bln

Four more districts are being added to the existing one, expanding an experiment to gather and recycle garbage. Vladimir Filonov

Moscow's City Hall plans to spend 71 billion rubles ($2.2 billion), to expand its recycling initiative over the next 15 years, Vedomosti reported Wednesday.

The capital produces 5.6 million tons of rubbish each year. Authorities launched a recycling experiment in the city's South-West district last year and have announced that they will extend it to four more districts starting Jan. 1. The West, North, North-East and South-East districts will now also be included in the initiative.

The city is willing to pay up to 71 billion rubles to finance the recycling drive over the next 15 years. The bidding process for a contractor has already begun and the winner is expected to be chosen at the end of November.

The city chose a contractor for the South-West district last year, said Alexander Samsonov, deputy head of the housing and public works department. The contractor agreed to collect, sort and recycle waste from the district for 25 billion rubles paid over a 15-year period.

The contractor, MKM Logistics, was also required to create its own recycling infrastructure, including plants, specialized transport and waste dumps.

MKM Logistics was the only company to bid at the time, though a source close to City Hall told Vedomosti that another company, Ekoline, is now also interested in seeking a contract in Moscow's recycling business.

As before, City Hall plans to fund the initiative by providing a subsidy of 2.08 rubles per month for transporting waste from 1 square meter of residential space.

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