The county becomes the 17th authority to benefit from the Governments Private Finance Initiative scheme.
Environment Minister Elliot Morley approved the funding towards the Shropshire Waste Partnerships 25-year scheme last week.
The project will see Shropshires kerbside collection service to cover all households in the boroughs and districts covered by the partnership.
The money will also help finance the building of waste-sorting plants, composting sites and waste-treatment facilities as the county aims towards 57% recycling in 2013.
Morley said: I congratulate Shropshire on this Government-backed scheme, which is an excellent example of co-operation between authorities.
Recycling rates have doubled since 1997 and we are on course to meet our target of 25% by 2005/6.
The Shropshire Waste Partnership comprises the county council and four district councils and manages all the waste under the control of those members.
Shropshire Waste Partnership chairman Philip Engleheart said: We are delighted that our waste project has been approved. It confirms that this is the right way forward for Shropshire.