French waste management firm Suez has renewed its service contract for the Covaldem11 area in Aude, which is expected to generate €459m for the company.

The long-term contract has been won under the Public Service Delegation concession and will extend over a 19 year period, starting from 1 January 2016.

Under the terms of the renewed deal, the utility will be responsible for the complete waste management services in the region, starting from containerisation through to collection, sorting, management of collection centres and final processing.

The deal allows the local authority to bestow responsibility on a single operator which is expected to ensure organisation, consistency and quality of the service.

Suez has also set up a new company to look over its operations and manage the contract, which will comprise local authority and civil representatives.

The firm intends to increase organic materials and energy recovery from wastes by reducing its disposal.

It has set a target to achieve global recovery rate of 75%, starting from 2020.

Suez France Recycling & Recovery CEO Philippe Maillard said: "The strategy we proposed is ambitious and evolutionary. It enables the local authority to participate in the energy transition, which requires new operational methods with a collaborative, circular economy.

"Furthermore, the new, more modern governance of the contract will enable us to drawn benefits from collective intelligence by pooling the contributions of all stakeholders while affirming the role of the Syndicate in the decision-making process."

The contract also includes provision for setting up two new production centres, Salvaza Environment complex and Alzonne Environmental centre at two major sites in the country, construction for which are expected to start from 2017.

The first one will house a collection centre, a transfer dock, another unit based on new waste collection concept called Recydrive and a ‘recycling-resource’ store.

The Alzonne Environmental centre, on the other hand, will feature a garden waste composting platform and a Materials Recovery Unit which will facilitate secondary raw materials recovery from waste to be refined and reused.

By the end of last month, Suez has also renewed contract with Syvedac to operate the latter’s waste-to-energy unit in Colombelles near Caen for around €120m.