The announcement that the Staleen Water Plant in Louth is to be upgraded has been welcomed by Sinn Fein.
TD Imelda Munster said it is good news after 200,000 people were left without water for six days in July.
She said: "It should have been invested in and upgraded over the years instead of waiting for a crisis of this magnitude to happen.
"The contract will include the replacement of the rising main which contributed greatly to the cause of the water shortage crisis.
"With the contract signed for the expansion and upgrade of the plant work is expected to begin before the end of this year."
(CD/LM)
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