The Cabinet green lit the €113.6 million project, which is expected to begin construction by the end of the year.
The project will involve the construction of new pumping stations, installation of more than 2.8km of sewer network and the decommission of under-performing pumping stations and pipework.
Speaking about the approval, Housing Minister Darragh O'Brien, said: "The upgrade to Athlone's waste water collection system is pivotal for future growth and development in the area and for the successful delivery of housing.
"It is also a hugely important step in addressing non-compliance with the EU's Urban Waste Water Treatment Directive in Athlone. Athlone town is serviced by a Waste Water Treatment Plant which was recently upgraded to accommodate Athlone's waste water needs to at least 2050. However, the associated waste water collection system, comprising foul and combined sewers, pumping stations and storm water overflows, has insufficient capacity and is hydraulically overloaded in parts, resulting in frequent out-of-sewer flooding into the River Shannon. The part of the River Shannon subject to sewer flooding is designated as a sensitive area under the 2010 Urban Waste Water Treatment (Amendment) Regulations. Athlone town is one of the locations cited in the 2019 European Court of Justice Judgement against the State for failure to comply with the Urban Waste Water Treatment Directive (UWWTD) regarding the discharge of untreated stormwater into sensitive areas.
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"The project will cater for a growing population in Athlone and will facilitate economic development and importantly, safeguard the environment."
Minister of State for Local Government and Planning, Peter Burke TD, added: "I'm delighted to welcome government approval for the Athlone Main Drainage Network Upgrade Project. This project will cater for existing and future residential and commercial development, enable long term social and economic development of the wider Westmeath and midlands area and importantly safeguard the environment."
This project is scheduled for completion by September 2025.
