Construction of two new landfill cells, capable of storing 114,428 garbage trucks' worth of waste, will be delivered by Daracon Group at the Awaba Waste Management Facility (AWMF) this year.
Lake Macquarie City Council appointed Daracon to lead Stage Two of the AWMF expansion following a competitive tender process.
Council Manager Waste Services Derek Poulton said the project was essential, with existing cells expected to reach capacity by March 2027.
"This facility manages the waste disposal needs of 220,000 residents and some 83,000 households across Lake Macquarie," he said.
"It also strengthens environmental performance through improved leachate and stormwater controls."
AWMF landfilled more than 64,000 tonnes of waste in the past financial year, which is about 288kg per person - the rough equivalent of a grizzly bear each.
More than 100,000 tonnes of domestic waste were collected across green, yellow and red bins and Council's bulky waste service, with 55,000 tonnes recycled.
Lake Macquarie Mayor Adam Shultz said the works were critical for continuity of waste services across the city.
"This expansion is about planning ahead and investing in sustainable growth, so the Awaba Waste Management Facility can continue to support our community well into the future," he said.
"These works set us up for longevity and will provide more than a decade of additional waste capacity for Lake Macquarie."
Daracon Group Divisional Manager Hunter Civil Michael Rummery said the company was keen to help ensure AWMF could continue operating as normal.
"We're excited to collaborate with the team at Lake Macquarie City Council again on this expansion, especially after the successful delivery of stage one in 2020," he said.
"Our team brings extensive experience in complex civil works, and we're ready to deliver an expansion that we know will make a real difference for local communities right across the LGA.
"Our priority is to deliver these new cells efficiently so the facility can continue operating without interruption."
The project has been designed to ensure existing cells one and two are only filled to total capacity after the two new cells are constructed.
The two new cells will extend the facility's life by a minimum of 11 years.
The $11.35 million upgrade is fully funded by Council using loans from TCorp, a NSW Treasury entity specialising in public sector funding.
Stage two works will also include an upgrade of the on-site leachate pond.
Construction is expected to begin in early 2026 and be completed by early 2027.
