The 25-year deal follows Veolia being nominated as preferred bidder in May 2007.
West Berkshire Council executive councillor Geoff Findlay said: This contract will meet the waste needs of West Berkshire for the next 25 years. It will provide a recycling rate of at least 49%, the diversion of 79% of household waste away from landfill and enhanced kerbside collection of recyclables in line with requests from local residents.
Veolia will be responsible for waste collection, recycling, disposal and street cleansing services. As part of the PFI deal, the company will build and operate materials recovery, waste transfer, composting and household waste recycling facilities.
Waste arisings in West Berkshire amount to 100,000 tonnes per annum and the council has been awarded almost £30m in PFI credits.
Veolia chief executive Denis Gasquet said: Our integrated approach means we can deliver both the expansion of recycling services and the waste infrastructure investment West Berkshire needs to meet its recycling and landfill diversion targets.