MMB will help construct the reservoir, which will help secure water supplies for 50,000 customers in South Tyneside.
Construction on the project is expected to start in spring 2023 and complete in 2025.
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Northumbrian Water's Richard Johnston and Paul Featherstone are the project managers for the scheme. Richard Johnston, said: "This is a huge investment project for us which will play a vital role in ensuring a reliable supply of drinking water for our customers long into the future, and we’re pleased to have MMB on board.
"We'll be working closely with them and we’re confident that they will help us to deliver this project to a high standard whilst minimising any disruption to the local area.
"As populations continue to grow, the reservoir will further support the wider South Tyneside area with a more reliable and resilient water supply for many years to come and we’re looking forward to working with MMB to deliver it."
