Engineering group Veolia has won two contracts to upgrade water and waste water treatment plants in the Republic.

State company Irish Water plans spending €5.5 billion over seven years to improve the Republic’s water infrastructure.

As part of this, the company has awarded two contracts to Veolia to upgrade water and waste water treatment plants to allow them meet increased demand, comply with Irish and European Union law and reduce flood risk.

Veolia will begin with work on water treatment plants at Lough Forbes, Lough Kinale and Smear, Co Longford.

The company will also improve waste water and sewerage treatment plants at Fallcarragh and Raphoe, Co Donegal, and Ballinacarrow, Ballymote and Collooeny, Co Sligo.

Veolia said on Thursday that this work would benefit 73,000 people in the midlands and northwest.

Joe Higgins, director at Veolia Ireland, pledged that the company would ensure the State got value for money.