Work will begin on the project in May 2022 and will continue until Spring 2023.
Farrans GlanAgua Construction is delivering the scheme on behalf of NI Water, with the first phase involving pipelaying in the Strabane Old Road area, moving on to the Trench Road, Irish street, Bann Drive, Dennet Gardens and Sheskin Gardens then through to the Dungiven Road.
Speaking about the new scheme, Infrastructure Minister Nichola Mallon said: "This major scheme is welcome news for people in the Waterside area of Derry who will benefit directly from increased resilience and security of the water supply for many years to come, particularly during winter periods and other emergency situations.
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"This significant investment will make a real difference to the lives of people living, visiting and working in parts of the North West. This highlights the high returns that can be gained when we invest in our water and wastewater services and demonstrates the importance of continued investment in this critical infrastructure."
Gary McFadden, NI Water Senior Project Manager added: "Water is a vital part of our infrastructure and impacts on our daily lives. We are delighted to announce this major water improvement scheme for the Waterside area and beyond, which will greatly improve the robustness and resilience of the water supply infrastructure.
"This investment will be particularly important during the winter months and other unplanned events, to ensure maximum security of supply for our customers in the local area. This major investment will provide people with an improved, more reliable service.
"NI Water and our contractor Farrans GlanAgua Construction would like to thank the public in advance for their patience and cooperation as we commence this essential water improvement scheme. Signage will be in place and we will do everything possible to keep disruption to a minimum during construction."
