The municipality of Amsterdam has decided to sell all its shares in the ailing Waste Energy Company (AEB), the municipality writes Tuesday in a press release. The proposal will be discussed in the Amsterdam city council in February.
In June the waste processing company ended up in acute financial distress, as a result of which four of the six incineration lines came to a standstill. It also struggled with overdue maintenance. The shutting down of the lines in July caused a national waste crisis and caused AEB, with the municipality as sole shareholder, a huge debt.
In the summer, the municipality of Amsterdam was already considering disposing of AEB, but ultimately chose to make the waste burner financially healthy again. The municipality spent a total of 80 million euros on the ailing waste processor. By pumping tens of millions into it, the municipality hoped later to get rid of the waste processing company for a higher price.
The Commission will further prepare the sales process in the coming months. This includes a book search and compiling information for potential buyers. The final decision on the sale of the AEB shares of the municipality is expected to be submitted to the municipal council in April or May.
"It is good that the Commission has taken this decision in principle to sell AEB and has determined the starting points", says alderman Victor Everhardt (Participations). "This brings the sale of AEB an important step further. I want to thank all employees of AEB and the board for their unbridled efforts. This makes AEB well on its way to becoming financially healthy again."