The Kirk Michael sewage treatment works are set to be redeveloped after the site was deemed to be past its design life.
The existing plant dates back to the 1960s.
It will now be replaced by two integral rotating biological contractor plants which will treat the sewage to the standards set out by the environmental protection unit of the Department of Environment, Food and Agriculture.
The new plants utilise a low energy, low maintenance process and the treated effluent will be discharged via the existing sea outfall.
The project will now be tendered to local contractors with construction to commence later this year with all works expected to be completed by next summer.
Designs are now progressing for similar plants in other locations around the Island.
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