C2V+, a joint venture between CH2M and VolkerStevin, has been appointed to deliver the three-year project in Morecambe Bay.
C2V+ started on site in March, with completion scheduled for 2020.
The upgrade is required to comply with tighter regulation standards in Morecambe Bay set by the Environment Agency.
C2V+ will complete a major project at the main pumping station, known as Schola Green Wastewater Pumping Station, along with an upgrade of Morecambe Wastewater Treatment Works near the village of Middleton.
The scheme will involve the construction of two new stormwater storage tanks at Schola Green, installation of a new pumped pipeline between Schola Green and Morecambe, an upgrade of the treatment process and an increase in the existing outfall pipeline from Morecambe.
It will help increase capacity for future growth and development, reduce the number of stormwater spills from Schola Green and improve the treatment of waste at Morecambe.
A public exhibition has been held in Schola Green and a customer coordinator will be present throughout the works to deal with any enquiries and keep all residents up to date.