French waste management firm Veolia has bagged a contract in Mexico City to design, build and operate the first waste-to-energy facility in Latin America.
The new facility will have an annual capacity to treat 1.6 million metric tonnes of household waste. It will generate 965GWh of electricity annually that will be supplied to the Mexico City Subway Metro.
The operation and maintenance contract will have a 30 year term and will add cumulative revenue of €886m for Veolia.
Construction work on the project is expected to commence this year and be completed within three years. The facility is expected to become operational in 2020.
Veolia executive vice president of Latin America Gustavo Migues said: “We are delighted to have been selected for this truly significant project, through which we will contribute to improving the quality of life of the citizens of Mexico City and their essential services, while also helping fight climate change.
"What we are going to do in Mexico City is the demonstration that our expertise in waste management - one of Veolia's core business - has a bright future ahead of it. The needs in Mexico, and more widely in Latin America, are such that we have a huge potential for development."