The sod has been turned this week on the Killybegs 2040 – A Town Centre Regeneration Project.
The project aims to transform the urban fabric of the town through targeted renewal and environmental improvements that will contribute to a more attractive place for residents, visitors and business and be a catalyst in creating jobs, increasing revenue and activating the private sector.
The Island House will be redeveloped as part of the initiative and the existing car park at the Diamond transformed into a civic space with multi-user capacities.
Cathaoirleach of the Donegal Municipal District Councillor Niamh Kennedy says once complete, the project will greatly enhance the town centre.
The works are expected to be complete by the end of next year.