The Essex County Council and Southend-on-Sea Borough Council waste disposal partnership has been awarded more than £100 million in private finance initiative credits.
The funding will help the Essex Waste Partnership to divert 185,000 tonnes of municipal waste from landfill per year by 2020.
Environment Minister Dan Norris said: Making better use of our waste and reducing our reliance on landfill is an essential part of the drive to tackle climate change. I welcome the ambitious commitment made by this partnership.
The partnership will create a real incentive for the local authorities and industry to work together to reduce waste and create jobs, as well as reducing the environmental impact of landfill.
To date, the Government has committed £2.6 billion PFI credits to 38 projects including the Essex Waste Partnership.
The Essex Waste Partnership aims to achieve a 57 per cent recycling rate by 2020 through joint working with its district and borough council partners.
The authorities will be issuing their joint contract notice to prospective bidders in the Official Journal of the European Union [EU legislation and information periodical] over the next month.