Rentokil lands three-year contract with Colonel Gaddafi

The Libyan ruler turned to Rentokil after failing to tackle chronic rat infestations in the country's major cities that have left the population prey to pest-transmitted diseases including salmonella typherium and rat-bite fever. The contract is from the Ministry for Public Utilities.

Alan Brown, Rentokil's chief executive, said the company now had "30 expats on the ground" in Tripoli, Benghazi and Misratah organising local teams that are tackling "tens of thousands of rats".

"The terrain is very difficult," Mr Brown said. "They don't have any street maps or names on the streets. So the teams are working off Google Earth. Each technician has a 1km area and they use GPS software so they know where they have dropped their bait box." The operation is led by Richard Jones. "He's Welsh so we've nicknamed him 'Taffy Gaddafi'," said Mr Brown.

The Rentokil boss said he saw big opportunities for similar operations elsewhere in the region. "We are looking at Saudi, Egypt, the UAE and are also building a commercial business in Libya for private companies or individuals."

One of the first commercial clients is Col Gaddafi himself. "He called us in to help with his ranch, where he keeps his racehorses, where there has been a major infestation," Mr Brown said.

Rentokil's expertise includes using DNA analysis to overcome a traditional problem facing the Libyan authorities – that the rats quickly became resistant to anti-coagulants used in the traps.

The contract pre-dates the first ever meeting last week between Prime Minister Gordon Brown and Col Gaddafi, which could herald stronger commercial ties between the countries.

The expansion into the region comes as the Rentokil boss's turnaround strategy begins to make tangible progress. The problematic City Link parcel delivery business is now expected to beat earlier guidance of £20m losses this year, while Rentokil is ahead of cost-cutting targets.

Thanks to its improving cash-flow, Rentokil – which has £1.3bn of net debt – plans to retire early a £125m top-up loan due in September 2010.