The federal government will invest up to $11 million in Sudbury's new biosolids plant.

Tony Clement, minister for the regional economic development agency FedNor, made the announcement Monday afternoon.

The $40 million plant will process Sudbury's sewage sludge, which is currently dumped on the tailing ponds near Lively.

The end product of wastewater treatment has been going to the ponds for the last 30 years, and for the past five years, controlling odour has been a constant problem.

Clement says this private-public partnership — or P3 — project is a cost-effective solution for the city.

"It's a fine example of our continuing commitment to infrastructure, regionally and across the country," he said. "It's a great way to promote economic activity, increase quality of life and be part of our community's infrastructure needs for the future."

The federal funding will cover 25 per cent of the project's cost, while the city will be responsible for the rest.

Tender for the project went out earlier this year. City council will vote on the selected tender within the next two months.

Mayor Marianne Matichuk says while company has been selected, she estimates it will take a year before the plant is operational.