The project envisages the construction of a waste water treatment plant, the construction and renovation of 2.0 kilometres (km) of sewerage network and 0.3 km of water supply network and 1 km of water collectors, the municipality said in a statement.
The project, financed under the EU-funded operational program Environment, will be implemented by local construction company Dolphin Project Ekotehnika.
Construction works are scheduled to be completed in 36 months.
The municipality of Elhovo is located in southwestern Bulgaria.
(1 euro = 1.95583 Bulgarian levs)