The Environment Minister approved the funding of Northumberlands hugely ambitious private finance initiative (PFI).
The sixth largest county in England currently recycles just 10% of its municipal waste, arisings of which are growing at 5% per year.
It is expected to spend its windfall on building around seven facilities to help with the massive leap in waste management that the 28-year contract requires.
Morley said: This represents the first PFI approval in the area, and the ambitious targets should set a benchmark for surrounding authorities.
I salute projects like this, which really make the task of waste minimisation and recycling that much easier for us all. This is a large project that depends on householders participating in, and in many cases converting to, recycling.