Construction work had been due to start this summer
The project will provide clean drinking water for residents and support the recently installed pipeline.
It will also deliver essential fire-fighting capability for the industrial estate and surrounding areas.
Planning permission for the new reservoir is already in place and construction work was initially earmarked for the summer of this year.
Completed tender documents from companies interested in carrying out the project must be submitted by 12pm on 6 December.
The new reservoir is to be constructed off the A14 Ballamenagh Road adjacent to the former RAF parade ground.
Manx Utilities expects the work to take around six months.
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