The Creeslough Community Regeneration Project has been allocated €12.1 million under the Rural Regeneration and Development Fund.
The allocation is part of a €164 million funding package that has been announced for 30 landmark regeneration projects across the country by the Minister for Rural and Community Development, Heather Humphreys.
The centre piece of the Creeslough plan is a new community centre which will include extensive sporting facilities.
Minister Charlie McConalogue welcomed the news, saying Donegal County Council will co-fund the project adding an additional 10%, bringing the total to over €13 million:
