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Middle East Paper Co. (MEPCO) said that its subsidiary, Waste Collection and Recycling Co. (WASCO), signed a partnership agreement with Jeddah Development & Urban Regeneration Co. to establish a limited liability, commercial company, to develop the waste management market in the city of Jeddah, and its suburbs.
The contract has a term of 25 years, the company said in a bourse statement, adding that the partners will establish and operate recyclable materials transfer centers operating under the framework of the management of recyclable municipal commercial waste in the province of Jeddah.
The contract included forming a partnership to develop a pilot project for collecting recyclable waste materials in Jeddah by establishing a 50/50 company between WASCO and Jeddah Development & Urban Regeneration Co.
The new company will build and operate centers for the management and handling of recyclable municipal waste in the governorate of Jeddah and its suburbs.
The new entity will carry out its activities through the centers, including sites granted by the municipality and/or others and regulating the waste management market in Jeddah to offer attractive investment opportunities.
The financial impact of the deal cannot be determined at present, due to the volatility of the prevailing market prices for the sale of recyclable materials, the statement added.
Jeddah Development is a closed joint-stock company fully owned by the Municipality of Jeddah. It is specialized in urban development programs and the treatment and collection of waste materials.
WASCO is the largest company specialized in waste management in Saudi Arabia. It has vast experience in waste management, as well as exclusive contractual agreements to supply a number of local industries with recyclable materials.
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