Contracts will be signed today on the €5 million sewerage scheme for the Glenties and Dungloe areas.
Work on the scheme is expected to begin in February next.
MEP Pat the Cope Gallagher has welcomed the signing of the contract.
These schemes will provide new wastewater treatment plants, pumping stations and sewers in Dungloe and Glenties to replace the present overloaded and obsolete infrastructure.
The new works will facilitate existing and future residential and commercial development in the Dungloe and Glenties areas.
In addition, the state of the art wastewater treatment plant, which will treat the wastewater in each location to the highest standards, will ensure that the local environment is enhanced and the good quality of the Dungloe and Owenea rivers is protected and improved.
Pat the Cope said he is confident that work on both schemes will commence by February 2014.