Cumbria County Council has awarded Shanks Waste Management a 25-year deal worth more than £700 million to cut the amount of waste going to landfill.
This private finance initiative (PFI) contract will see much of the countys waste sent to mechanical biological treatment (MBT) plants in Barrow and near Carlisle, where it will be turned into a fuel.
Each year Cumbrian households throw away approximately 300,000 tonnes of waste.
As part of the contract Shanks will develop and manage new waste and recycling facilities along with Cumbrias existing household waste recycling centres (HWRCs).
Shanks managing director Ian Goodfellow said: We are delighted with the award of this, our fourth PFI contract in the UK, it is a clear demonstration of our ability to deliver on our strategic plan, and such a deliverable and proven technology is, we believe, the right solution for the people of Cumbria.
Shanks business development manager Michael Dunn added: This shows our ability to close a deal amid a difficult economic climate. MBT is a straightforward low-cost investment and a low-cost solution which avoids the funding complexities of big PFI projects such as the one in Manchester.
Cumbria County Council councillor Tim Knowles said: This 25-year contract with Shanks shows a long-term commitment to providing the people of Cumbria with a modern, green and cost-effective way of dealing with their waste. It will bring huge benefits for generations to come and lead to a massive reduction in the countys carbon footprint. It will make Cumbria one of the greenest counties in Britain and will put us at the forefront of the national waste scene.
Both parties anticipate the contract to start in early 2009.