The deal means the company will operate the energy recovery facility, the city’s household recycling centres (HRCs) and three waste transfer stations.
The contract, which runs until 2034, is expected to see Veolia look to achieve a 70% recycling rate at the city HRCs by the end of the contract.
Veolia is to upgrade the existing HRCs at King’s Norton and Castle Bromwich, while the site at Perry Barr has opened following a refurbishment.
It will also mean the existing Tyseley ERF will have its lifespan increased by another 10 years, giving Birmingham City Council more time to find long-term solutions to its waste strategy. The ERF provides energy for the National Grid to power up to 63,000 homes a year.
Veolia has previously won contracts to manage the processing of the city’s Dry Mixed Recycling and its Green Recycling.
Councillor Majid Mahmood, cabinet member for environment at Birmingham City Council, said: “As a council and city we are determined to achieve our net zero goal for the benefit of all residents. Improved recycling and low carbon energy are key parts of our strategy so I am pleased we have agreed a contract that puts this front and centre. Increasing recycling rates to 70 percent at the HRCs is a big target but we need to be ambitious and I’m confident the people of this city will work with us to achieve this when we provide the means and support.”