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Suez Environement - a France-based provider of water and waste management services, has won a $37m (€32m) contract to design, build and operate the expansion of a major landfill site in Muscat for five years.

The firm said that the deal will see it build a new section onto the existing Sita al Basheer site for Muscat Municipality, which will increase its capacity from the current rate of 250,000 metric tons of waste per year to 400,000 tons. It will also include a biogas recovery system and a reverse osmosis plant to treat leachates in a bid to minimise its environmental impact.

Muscat is a fast-growing city of around 2m people - half of Oman's overall population of 4m.

Marie-Ange Debon, deputy CEO of Suez Environement, said: “This new contract demonstrates the Oman authorities’ confidence in developing long-term solutions for their waste treatment needs. It recognises our ability to build and operate efficient facilities to meet the dual challenge of population growth and environmental protection.”

Suez Environement also operates a landfill site at Nizwa in Oman's Dalkiliyah region which has a capacity of 150,000 tons a year. The company was spun out from French Energy giant GDF Suez six years ago, although it retains the biggest single stake in the business.