Hyderabad-based Ramky Group and Saudi Arabian firm AA Turki Group have launched a joint venture (JV) to set up an integrated environmental facility in Saudi Arabia. Details regarding investment in the project, however, have not been disclosed.

The 1,700 crore Ramky Group, which has interests in diverse fields such as construction, waste management, real estate, finance, infrastructure, consultancy and investment, would construct a waste management plant that would comprise various recycling, processing and disposal facilities.

Waste management has been a chronic problem in the oil-rich Middle East kingdom. According to one estimate, Saudi Arabia produces 16 million tonnes of garbage per year, with each Saudi national producing an average of 10.4 kilograms of waste per day.

Increasing population and the booming construction sector have forced the Saudi government to invest heavily in the waste management segment. Its 2008 budget allocation for the segment included a whopping 17 billion Saudi riyals for water drainage and waste management and 28.5 million Saudi riyals for sanitation services and desalination plants.

Given the size of the potential market, both the partners expect to generate $50 million as revenue through the project on an annual basis. The JV would be one of the region’s first private initiatives to create integrated environmental infrastructure projects, Ramky claims.

The company has been an active player in the waste management segment in India. It has established 14 industrial waste management facilities, 16 hospital waste management facilities and several municipal solid waste management facilities. It is also operating these facilities. The company also has operations in West Asia and Singapore.