Ƶapp Council agreed at its June meeting to provide additional funding to Kintyre Recycling Ltd (KRL) and Fyne Futures.
This will enable the companies to continue to deliver kerbside recycling services in South Kintyre and Bute until their contracts come to a natural end in March 2020.
KRL will receive around £32, 662, while Fyne Futures has been allocated £37,500.
The council signed a 25-year Public Private Partnership (PPP) contract with Shanks (now Renewi) in 2001. The contract makes provision for named third sector partners to manage recyclable materials in specific areas. These partners include KRL and Fyne Futures.
Since then, there has been significant changes to the waste sector, particularly the value of recycled material, which has dropped significantly. This drop in the income anticipated by KRL and Fyne Futures, along with an increase in other operating costs, has led to both organisations stating that they are unable to meet their service obligations within the current contract rate.
The additional funding to the third sector providers will allow time for the council to look at service delivery in Kintyre and Bute beyond the end of March 2020.
Councillor Roddy McCuish, Policy Lead for Amenity Services, said: “Firstly, we would like to thank KRL and Fyne Futures for the services they have supplied to their communities, and the council, over the years.
“This is a volatile market and I am pleased to note that both organisations have other options that will enable them to diversify into other more lucrative areas. We wish them all the best with their future ventures.”