Barhale has been awarded a multi-million pound contract by Severn Trent Water.
The civil engineering company will deliver three tunnelling projects and one pipeline project on the Elan Valley Aqueduct in Birmingham.
The works will be delivered through a joint venture with North Midland Construction, BNM Alliance.
The award follows the recent signing of the AMP6 Infrastructure Contract Extension.
The project will require the purchase of a new Earth Pressure Balanced tunnel boring machine (TBM) supplied by Herrenknecht.
It will deal with rock strengths up to 190mpa and 10bar of external water pressure.
The project is due to start in October.
Liv Garfield, CEO of Severn Trent Water, said: "This is a fantastic achievement for our One Supply Chain and demonstrates how they can deliver with pace for the benefit of our customers and our company."
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