Maghera-based BSG Civil Engineering will work in partnership with Belfast-based RPS to deliver key upgrades for customers in Ballykelly, Co L'Derry.
Led by NI Water, the upgrade at Ballykelly Wastewater Treatment Works will provide a new sustainable wastewater treatment approach, utilising reed beds as part of the treatment process, providing a natural, long-term sustainable and resilient solution.
This includes a 100kW solar energy system to help power the new works with solar energy, forming part of NI Water's commitment to sustainable solutions.
Sara Venning, CEO NI Water said: "As the largest user of electricity in Northern Ireland, we are committed to finding innovative sustainable solutions to water and wastewater treatment that also harness renewable energy to reduce our expenditure on power.
"Ballykelly is one of many sites across the province where we are thinking outside the box, using a natural solution to wastewater treatment, combined with using a solar energy system to help reduce our energy use and carbon footprint.
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"As the second largest landowner in Northern Ireland, our assets have the potential to be a catalyst for change across Northern Ireland's energy and transport networks as a whole.
"This new way of thinking will be explored at our Power of Water event on 3 November planned in advance of COP26."
Infrastructure Minister Nichola Mallon added: "I am pleased to see progress on this £5 million investment at Ballykelly Wastewater Treatment Works, which will deliver an upgraded treatment works for people living and working in the area.
"This scheme will improve future wastewater services for customers in the area, enhance the local environment and improve local watercourses by using an innovative integrated constructed wetland as an energy free final wastewater treatment filter process.
"Continued investment in the water and wastewater services throughout Northern Ireland is essential to improving this critical infrastructure and these important works will enrich the environment and the lives of citizens in the area as well as supporting economic growth in local development and tourism.
"Over an expected 25 year lifetime, NI Water expects the solar energy system at Ballykelly alone to save the business approximately £400,000. Trees will also be planted on this site, supporting NI Water's ambitious target to plant one million trees over the next 10 years.
"We need to urgently act to tackle the climate crisis and I commend NI Water for finding both sustainable and cost-effective solutions to reduce its operational impact. This is an example of how we all need to continue to work together across these islands to constantly seek out innovative ways of tackling the climate emergency and implement the necessary changes to address the significant challenges that lie ahead."
