The money, which will help fund the organics processing component of the Dunmore Resource Recovery Redevelopment project, was announced by parliamentary secretary for the Illawarra and South Coast Gareth Ward on Tuesday.

 The project included relocating the  transfer station and building an organics processing plant capable of processing food and garden waste, Mr Ward said. 

The project’s development application was lodged in December and is now being assessed by the Joint Regional Planning Panel. 

Construction  was  expected to begin mid-year, Mr Ward said.

When in place, Shellharbour residents will get weekly collections of a ‘‘green bin’’.

Shellharbour Mayor Marianne Saliba, who joined Mr Ward for the announcement, said the  redevelopment  would cost about $14.5million.

“Council successfully obtained $2.05million in grant funding from the Environment Protection Authority under the Waste Less, Recycle More Program to assist with funding the transfer station component of the project,” Ms Saliba said.

The organics processing component, which is expected to cost $6.4million, has been included in the council’s 2015-16 budget.