A contractor has been appointed to carry out design works on the Virginia Wastewater Treatment Plant.
Irish Water confirmed the move after carrying out a feasibility study that found operational issues with the existing plant.
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It’s planned the upgrades will be done as part of the 2020 to 2024 investment plan.
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It comes after concern was raised that delays in the works would slow the growth of the town.
Independent Councillor Shane P O’Reilly says it's welcome news.